Jon Darmstadter stated "retaining BDO Seidman is a major step in enabling Children's Beverage to become a fully reporting public entity by year-end and to bring us closer to our ultimate goal: a listing on the NASDAQ exchange."
"SUCH RISKS INCLUDE THE TIMING OF IMPLEMENTATION AND THE SCOPE AND SUCCESS OF THE PROGRAM DESCRIBED HERE".
I remain bothered by past press releases. Yet, such press releases correlate to historical articles regarding what eventually became TCBG. IMO, this is the first press release of a much more mature Company.
Initial Samples were mailed to investors sometime back after the Conference Call. There was also the Chicagoland press release. As posts via SI indicate in regards to those investors who "did" recieve samples, there were problems!
This is what I think:
Although the problems encountered are believed to have been minor, these problems were big enough to derail product shipments and placement in Chicago. By the time the kinks were worked out in regards to production (ie: fixing the problems encountered in the original batch of packages like those mailed to investors) - priorities changed. BrainForest and subsequent mailing of samples to investors took a back seat to higher priority items like ramping up production to fill the Wal-Mart and Winn-Dixie orders. Delays were most likely enountered and on many fronts. Delays to correct packaging problems. Delays in outsourcing production materials. Delays in production set up on behalf of both Cliffstar and Sweet Ripe. There is more to production besides installing the Volpak Machines.
These delays encountered are just that - delays. The Company was overly optimistic but to their credit, I'm of the opinion that the packaging problems encountered is what threw the time tables off.
I view the legal disclaimers, re-iteration of goals first mentioned in the conference call, and the actual announcement of an Auditor to be positive events.
On the assumption that July 31 concluded the fiscal year as mentioned in the Conferece Call, audited financials can come as early as the end of November. October 31, on the assumption that the fiscal year ended July 31, makes up and entails the end of the first quarter. Although I'm not an accountant, it is my impression that revenues can be booked once the products are shipped. As such, we can potentially arrive at audited financials and actual revenues for the period ending October 31. Delays in reporting are expected, however, I believe year end reporting for the quarter ended October 31 is very much in reach. Overtime, quarterly reporting will revert to norms of a few weeksor so after the quarter ends.
In closing, I doubt very much that TCBG would have moved forward with the Auditor had production problems persisted. I'm of the opinion that production is now gearing up and the announcement of an auditor, for me at least, instills confidence that things are now starting to move forward.
In another matter, I would like to see the article in Packaging Digest. I have not registered to obtain a copy. I will, however, phone a few libraries in town to see if they carry the magazine. If so, I will get busy about obtaining a copy of the article for posting. Meanwhile, and if someone gets a hold of the article, please post.
KSully |
