Q
CIM: Is your business just Cannabis and Hemp related, or do you have revenues derived from other agriculture? What % of your business is Cannabis, Hemp and other agriculture?
A
CIM: Estimated revenues In Year 1, Year 2, and Year 3 are $15M, $40M, and $100M respectively. Do you feel your revenue estimates are aggressive, moderate or conservative and why?
Q
OS: We believe they are realistic. We have been approved by the second largest agriculture applicator in the United States for inclusion in their organic protocol. Orders from this single customer could be worth $15 million/yr.
A
CIM: How do you plan on maintaining and increasing EBITDA margins of 40% - 57%?
OS: Agriculture sales have accounted for approximately 65% of revenues to date, with about 35% canna/hemp. We are currently working to secure two very large agriculture orders. However, with the quick-moving nature of the cannabis market, the percentages could shift dramatically.
Q
A
OS: We are constantly working on driving down cost of goods and optimizing distribution. Our operation is extremely lean. By avoiding the costs of establishing a retail brand and retail channels, we can run a direct-to-grower operation with very little overhead. Additionally, we will benefit from economies of scale as our sales grow.
Q
CIM: What does your capital structure look like currently? Any debt?
A
OS: We are funded by private equity, sales and revenues. The company has no debt.
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