TORONTO, ON--(NewMediaWire - Jul 31, 2017) - Amfil Technologies Inc. (OTC PINK: AMFE) is pleased to provide our shareholders with an in-depth summary of our FYE 2017 and provide guidance on Fiscal Year 2018 including an update on Q1 2018 progress thus far.
Amfil Technologies Inc. posted revenues of $6,630,973 for our FYE 2017 up 2376% from Fiscal Year 2016 which posted $279,045 in total revenue. The company saw a gross profit of $3,678,780 and a net income of $248,679. The company as at year end of June 30th 2017 had $267,257 in cash, $4,691,097 in inventory and $6,599,844 in total assets.
Snakes & Lagers Inc. / Snakes & Lattes Inc. Acquisition & Impact on the Financial Statements
Subsequent to the announced L.O.I. on April 4th 2016, the company closed the acquisition and announced the definitive agreement on September 28th 2016.
This subsidiary has had a tremendous impact on the financial statements since Fiscal Q2 2017. While the net income of $248,679 may not appear significant, the sales of $6,630,973 allowed the company to execute its expansion plan for each subsidiary and continue to run at a profit. Snakes & Lattes Inc. has been operating with an increased staffing cost since Q4 due to the training of staff members for the new location. All of the new managers and some new staff members have been hired and have been training in the existing locations for the past few weeks, working towards the approximately 70 additional employees which will be required to staff the 3rd and largest location opening first week of September, dubbed 'Midtown'. Staff totals for the Snakes & Lagers Inc. / Snakes & Lattes Inc. subsidiary are now at 126 members. These costs, as well as costs for professional fees and construction, have been injected into the location to ensure that the opening of 'Midtown' proceeds as planned and immediately begins generating revenue. In addition, the subsidiary has been adding strength to the distribution and fulfillment division in preparation for further expansion into Fiscal 2018, with large revenue increases projected as a result.
Further Breakdown of the Snakes & Lattes Inc. Subsidiary
Storefront Locations, 'College' & 'Annex' (Fiscal Year 2017)
The popularity and patronage of the bustling Snakes & Lattes Inc. storefront locations continues to surge at a tremendous rate. Fiscal 2017 was one of the busiest years on record for the downtown locations, with waiting lists and line ups of customers interested in enjoying the venues and total customer numbers up approximately 20% across the board in comparison to their year prior.
- This division includes retail distribution, cover charges, food and drink.
Snakes & Lattes 'College' contributed $2,753,264.52 CAD in revenue by itself.
Snakes & Lattes Inc. ('Annex' and Distribution combined) contributed $5,059,639.65 CAD in additional revenue over and above 'College.'
Distribution Arm, Fulfillment and Online Sales (Fiscal Year 2017)
The thriving high-volume distribution business grew at an impressive rate during fiscal 2017, and has positioned itself for further growth by upgrading infrastructure and developing new partnerships and customer accounts. Key points from Fiscal 2017 include:
- Warehouse space increased from 3500 to 8000 sq. ft. to accommodate the rapidly increasing distribution volumes.
Increased warehouse staff and new managerial positions filled.
Snakes & Lattes Inc. was awarded multiple exclusive distributorships during fiscal 2017 for a number of the most popular game titles in the world. The Canadian and International distributorships fueled the growth of the distribution arm exponentially.
Secured multiple new accounts with major retailers to supply their board game inventory.
Received largest single order to date valued at approximately $1.25 Million.
Storefront Locations, Midtown Opening (Q1 to Date & Guidance)
- Grand opening of 'Midtown' will be announced shortly and is scheduled for the first week of September due to minor design alterations and additions.
Commenced the intake of additional staff in Q4 2017 and Q1 2018 to prepare for the opening of 'Midtown'. These new employees have been training at the existing Snakes & Lattes retail locations with experienced team members to ensure we are fully prepared for 'Midtown' opening day. Our staffing costs will reduce once 'Midtown' is opened and further revenue generation can begin from the third location.
'Midtown' will be the flagship location where the expectations and standards are set for future locations and/or potential future franchise holders building requirements.
Management projects $3-$4M in additional revenue by year end once 'Midtown' is operational.
Currently exploring real estate in Vancouver for the opening of retail location #4.
Management working through the strategy for mass expansion into the USA, and the requirements to commence leasing franchises, which are both targeted for Fiscal 2018.
Distribution Arm, Fulfillment and Online Sales (Q1 to Date & Guidance)
- In Fiscal 2017, the Distribution Sales Team identified a starting 2000 potential accounts as new immediate targets for distribution sales. The sales team has now reached a total of 500 accounts of the targeted 2000 with multiple new orders to be shipped in August and most of these new accounts being opened in the month of July being fiscal Q1 2018.
The Sales Team has accelerated their efforts to close the remaining 1500 of these initially targeted accounts, which has become a smoother process as the brand increases in visibility and more exclusive distributorships are obtained.
Exclusive distributorships are expected to substantially increase the fulfilment business even further into Fiscal 2018. Management is currently working through the required logistics and planning to expand distribution further internationally.
We have received orders of approx. $1,500,000 in distribution and fulfillment sales in July already, being our fiscal Q1. Given the increase in the distribution and fulfillment division in the first weeks of Q1, management expects an extremely high growth revenue based Q1 financial statement with exponential year over year growth, delivering exceptional value to our shareholders.
This division just received an order for two shipping containers of product, approx. 32,000 units of games the company holds the exclusive distribution rights to in Canada. This single order was received from Amazon and is valued at over $650,000 CAD. This order is over and above recently announced orders. This shipment will be fulfilled in August to both their Ontario and B.C. warehouses.
This division will play a large part in our efforts and expectations of the company at least doubling revenues over the next twelve months.
GRO3 Subsidiary (Fiscal 2017)
The GRO3 subsidiary made massive strides towards full market expansion throughout Fiscal 2017, finishing off the year with a commitment to outfit a portion of an up and coming new marijuana cultivation facility with EcoPrO3 GRO3 as well as RotoGro units. This monumental step for the GRO3 sales team has resulted in a massive influx of industry interest, and will propel the GRO3 technology as it continues to penetrate the industry into Fiscal 2018.
- Upgraded technology and launched the EcoPrO3 Antimicrobial System.
EcoPrO3 product line passed product review by accredited USDA Certifying agent PCO.
EcoPrO3 technology obtained patent pending status.
Ramped up sales, marketing and advertising.
Entered into initial Agreement with Roto-Gro Worldwide to market and integrate EcoPrO3 with the Roto-Gro Hydroponic systems.
New local office and technical workshop opened in Ontario.
Began and continue discussions with a California Corporation to outfit a new marijuana cultivation facility on a 10 acre property in Northern California, along with other cultivators, processors and industry partners.
Received commitment to purchase 5 EcoPrO3 GRO3 units and 100 Roto-Gro hydroponic systems. Estimated value of this purchase order is $1.15 Million USD.
GRO3 Subsidiary (Q1 to date & Guidance)
- Subsidiary has been rebranded to GRO3 with new website which we expect to launch in August.
Increased sales, marketing and advertising campaign to launch.
Will be featured in a number of industry related publications over the coming months.
Organizing manufacturing and order fulfillment logistics for customer requirements, including the parties involved in the outfitting of the new Ontario Cultivation Facility.
Working to finalize agreements to supply a number of facilities with GRO3 EcoPrO3 Antimicrobial Systems and Roto-Gro Hydroponic Systems, including the grow facility in Northern California.
The GRO3 Sales Team has received increased interest over the past month through word of mouth from industry connections. These leads are constantly being explored, with additional meetings organized and free consultations from our technical teams to ascertain the most effective solution for the individual client's needs. As a result, we anticipate a steady increase in EcoPrO3 and Roto-Gro sales moving forward into Fiscal 2018.
Interloc-Kings Inc. Subsidiary
- Spinoff & Dividend details coming to sync with audit completion and up-listing.
Amfil Technologies Inc. Capital Structure
- Issued 29,088,235 shares in Q4 for a combination of cash, services and reduction of debt, bringing the Outstanding Common Share Count to 473,895,499.
Reduced total outstanding common share count from 664,493,098 to 473,895,499 in fiscal 2017.
Received a little over $600,000 USD cash committed at a fixed market price of .09 per share which was the closing market price at the day of the transaction to increase the speed of expansion and distribution.
Allowed for the reduction of overhanging debt.
Allowed for the payment of some services without burning expansion cash.
The company intends to keep the share count below 500M throughout Fiscal 2018.
The company will reduce the authorized share count down from 900M in order to better reflect the cap we would like to have on the outstanding going forward.
Fiscal 2017 has been by far, the largest grossing, and most growth driven fiscal year in company history. During this year, the company has made substantial investments into the future revenues, including the funding of the new Snakes & Lattes 'Midtown' location plus the additional staffing requirements, the investments into the distribution arm of the subsidiary and the funding of the GRO3 subsidiary's expansion of operations. These investments in the future have positioned the company for an even larger grossing Fiscal 2018, continuing the company's pattern of quarter over quarter, and year over year revenue growth.
Thus far into Q1 of Fiscal 2018, we are already hitting revenue figures that exceed the revenues of entire quarters of Fiscal 2017. Our management team is very pleased to say the least with the results thus far and the trajectory that the company remains on into Fiscal 2018. As we look into Fiscal 2018 with eager anticipation and excitement, we would like to once again thank our loyal shareholders for their support throughout this overwhelmingly successful year. We will continue to work diligently to increase shareholder value throughout Fiscal 2018.
For more information regarding the company please visit www.amfiltech.com and follow us on twitter for further updates from the company @AmfilTech
Amfil Technologies, Inc. is the parent company to three wholly owned subsidiaries.
1). Snakes & Lagers Inc. holds the trade name and is the owner of Snakes & Lattes Inc. which currently operates a 6,000 sq. ft. and a 7,500 sq. ft. tabletop gaming bar and cafe located in Toronto, Ontario that brought in over $7M CAD in revenue last year. It is in the process of opening a third location at 10,000 sq. ft., the largest to date. Snakes & Lagers Inc. is also the procurement officer of all existing and future Snakes & Lattes Inc. franchises and has the exclusive rights to sell franchise locations globally. Snakes & Lattes Inc. was the first board game bar and cafe in North America, is believed to be the largest in the world and have the largest circulating public library of board games in North America for customers to choose from. Snakes & Lattes Inc. currently has a 90 member staff and recently acquired the exclusive distribution rights throughout Canada for some of the most popular board games in the world such as Cards Against Humanity and Exploding Kittens. BlogTO.com recently named Snakes & Lattes Inc. the best late night cafe in Toronto and has also been named the best fulfillment house in Canada by Jamey Stegmaier, the most influential blogger within the board game fulfillment sphere. For more information on Snakes & Lattes Inc. feel free to visit the website at www.snakesandlattes.com
2). The EcoPr03 GRO3 Antimicrobial System was jointly developed between Amfil Tech and A.C.T.S. Inc. which recently rebranded its technology under Advanced Ozone Integration as an extension of the existing ozone technology being utilized in the food and beverage industry and integrated by A.C.T.S. into companies such as Pepsi, Nestle, Sysco, Sun Pacific and many others. The system is a triple-function sanitization unit capable of naturally eliminating 99.9% of water and airborne pathogens and the typically problematic pests that wreak havoc for cultivators (like aphids, whiteflies and spider mites), as well as bacteria, fungus, microbes and mold on surfaces, all without chemicals. The unit can also constantly regulate a given facility's water supply, oxygenating the water and maintaining a consistent PPM infusion of ozone that prevents the formation of algae, bacteria or mold (allowing for comprehensive water recycling), simultaneously removing the need to use pesticides and/or dangerous, often carcinogenic products to treat production problems, as is common throughout the industry today. This environmentally-friendly solution also eliminates odors, while slightly reducing the air temperature, lowering energy consumption by the HEPA filtration and HVAC systems and could potentially allow for a facilities process to be labeled certified organic in the U.S.A. when the crop is no longer considered illegal on the federal level, otherwise "Clean Green" or "Certified Kind" in the meantime. The EcoPr03 GRO3 Antimicrobial System recently passed product review by a registered USDA certifying agent for use in California as well as Pennsylvania and surrounding states. More information on this product line can be found on the www.grozone.biz website or on twitter @GRO3Systems
3). Interloc-Kings Inc. is a hardscape construction company servicing the Greater Toronto Area. This subsidiary is an authorized Unilock installer, Unilock being, North America's premier manufacturer of concrete interlocking paving stones and segmental wall products. Interloc-Kings Inc. has an A+ Rating with the Better Business Bureau (BBB) and a 10/10 rating on homestars.com. Specializing in stone and wood installations between $5,000 and $150,000 per project, Interloc-Kings Inc. has quickly become a top, high quality installation company of outdoor living areas in the GTA. More information on this subsidiary can be found at the website www.interloc-kings.com
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results, new features or services, or management strategies) and other factors discussed from time to time in the Company's OTC Market or Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "confident", "intend," "plan" and other similar expressions. Our actual results, such as the Company's ability to finance, complete and consolidate acquisition of IP, assets and operating companies, could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company such as a result of various factors, including future economic, competitive, regulatory, and market conditions. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.