San Diego, CA -- October 12, 2017 -- InvestorsHub NewsWire --
Generation NEXT Franchise Brands (OTCQB: VEND), whose Reis & Irvy's frozen
yogurt robot franchise launched in April of 2016, completed the
First Quarter of fiscal 2018, with bookings aggregating
approximately $5.5 million, adding to its existing deferred revenue
of approximately $25.0 million.
Other highlights and updates from fiscal 2017 and the first
quarter of fiscal 2018 are as follows:
- Reis & Irvy's total franchise network aggregates 186
franchises;
The company has raised proceeds totaling $4.4 million in the form
of an equity offering;
We repaid $622,500 in debt principal during the first quarter of
Fiscal 2018;
The company completed September 2017 with $1.8 million in available
cash;
Receivables increased by over $10.5 million from $2.4 million to
$12.9 million during fiscal 2017;
Our deferred revenue increased from $8.1 million to $25.0 million
representing an increase of $17 million during fiscal 2017;
We acquired all the intellectual property in the form of four
separate utility and design patents from Robofusion Inc. We now own
all IP related to the robot. This increased our fixed assets by
$2.4 million in fiscal 2017;
We spent $1.6 million on research and development expenses during
fiscal 2017, thus rebuilding our next generation frozen yogurt
robot;
During fiscal 2017, we used $340,000 in cash from operations,
compared to using $556,000 in fiscal 2016. Furthermore, in fiscal
2017, we increased total cash by $1.1 million compared to
generating $200,000 in fiscal 2016;
We selected Flex, Ltd. as our exclusive contract manufacturer and
now have a production schedule that allows for approximately 1,000
units to be manufactured for installation by June 30, 2018. With
approximately $24 billion in annual revenue and 200,000
professionals across 30 countries, Flex, Ltd. provides innovative
design, engineering, manufacturing, real-time supply chain insight
and logistics services to companies of all sizes in various
industries and end-markets;
Our prototype frozen yogurt vending robot developed by Lancer
Corporation underwent and has now completed the Intertek - UL and
NSF design review phase which means all that is left is the final
testing; the final testing will take place over the next few weeks,
with Intertek testing to verify the robotic arm meets their safety
standards and that our procedures meet all health and food safety
regulations. Note: We have independently verified that it does meet
their standards and we are confident UL will achieve the same
results in their testing;
We have developed a "burn-in-test" that will ensure all frozen
yogurt vending robots are performance tested prior to shipment;
This process verifies that the robot is communicating with each
sub-system during normal operations and that our control system and
components/sensors are functional;
Our frozen yogurt vending robots have been through rigorous
performance testing and have performed extremely well in various
humidity and ambient temperature routines including over a million
cycles of the robotic arm without fail; in addition to the robotic
arm and soft-serve machine testing, we have been validating
software communication and integration on the entire unit to ensure
all sub-systems are communicating and are functional;
We engaged Pitney Bowes as our national service network partner to
deliver, install and provide on-site training for our robots;
backed by a team of over 16,000 dedicated professionals, Pitney
Bowes has more than 1.5 million clients in approximately 100
countries around the world that rely on products, solutions and
services from Pitney Bowes;
On August 9th, we announced an $875,000 Licensing Agreement within
the Nation of Oman. This is the second international license
agreement signed, the other being for the exclusive rights to
Israel, which was licensed for $3,637,500 over a five-year
period;
Our first robots will be delivered in November 2017;
We are excited to announce that our first franchise training begins
November 6, 2017 at the Generation Next Corporate Office in San
Diego, CA. Each franchisee will spend 2 days learning about their
robots and franchise business. Franchisees that attend this
inaugural training will be also the first to receive their robots.
Representatives from our partners Flex Ltd, Pitney Bowes and
Spaceman will be in attendance at this training.
"As we prepare our business for continued growth, we have
officially solidified our infrastructure by finalizing key
relationships with our manufacturing and logistics partners, Flex
Ltd and Pitney Bowes. These strategic alliances combined with the
sales and marketing platform we have proven, will allow us to
deliver all products with the scale we require, the most highly
regarded service network not just nationally but internationally,
support for our customers and professionalism on all levels," said
Nick Yates, Chairman and Founder. "Additionally, we will continue
our expansion plans next month, which will see the official launch
of both the Generation Next Vending Robots program, as well as our
corporate-owned operations program, allowing for two new and very
promising revenue streams to take affect well before the end of
fiscal 2018."
For more information on the revolutionary Froyo Robots or to
learn more about how you can own your own Reis & Irvy's Froyo
Robot franchise, visit the Reis & Irvy's website at
reisandirvys.com. To learn more about Generation NEXT Franchise
Brands or their family of brands, including Reis & Irvy's,
Fresh Healthy Vending or 19 Degrees, please visit www.gennextbrands.com or call toll free
888-902-7558.
This information is not
intended as an offer to sell, or the solicitation of an offer to
buy, a franchise. It is for information purposes only. No Reis
& Irvy's franchises will be sold to any resident of any state
until the offering has been exempted from the requirements of, or
duly registered in and declared effective by, such state and the
required FDD (if any) has been delivered to the prospective
franchisee before the sale in compliance with applicable law.
Currently, the following states in the United States regulate the
offer and sale of franchises: California, Hawaii, Illinois,
Indiana, Maryland, Michigan, Minnesota, New York, North Dakota,
Oregon, Rhode Island, South Dakota, Virginia, Washington, and
Wisconsin. If you reside in one of these states, or even if you
reside elsewhere, you may have certain rights under applicable
franchise laws or regulations.
Generation NEXT Franchise Brands
Generation NEXT Franchise Brands, based in San Diego,
California, is a publicly traded company on the OTC Markets trading
under the symbol: VEND. Generation NEXT Franchise Brands is parent
company to Fresh Healthy Vending LLC, the market's leading
healthy-choice vending machine franchise, Reis and Irvy's, Inc.,
the world's first robotic frozen yogurt vending robot, 19 Degrees,
a corporate-focused frozen yogurt robot brand and Generation NEXT
Vending Robots, our newly established owner/operator model. The
Company has sold over 600 franchises throughout the United States,
Canada, Puerto Rico and the Bahamas, and continually looks to
partner with like-minded entrepreneurs who share its vision.
Cautionary note on
forward-looking statements
This press release contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include, among others, statements concerning our future
financial performance, including statements regarding our
manufacturer's ability to maintain the production schedule for our
Froyo Robots and our ability to timely launch delivery of our Froyo
Robots. The Company bases these forward-looking statements on its
current expectations, estimates and projections about future events
and the industry in which it operates using information currently
available to it. Actual results could differ materially from those
discussed in, or implied by, these forward-looking statements.
Forward-looking statements are identified by words such as
"believe," "anticipate," "propose," "expect," "intend," "plan,"
"will," "may," "estimates," variations of such words and other
similar expressions. In addition, any statements that refer to
expectations, projections or other characterizations of future
events or circumstances are forward-looking
statements. Factors that could cause actual results to differ
from those implied by the forward-looking statements contained in
this press release are set forth in our fillings with the
Securities and Exchange Commission (SEC), including our most recent
Annual Report on Form 10-K for the year ended June 30, 2017, and
our Current Reports on Form 8-K. Be advised that developments
subsequent to this press release are likely to cause these
statements to become outdated and the Company is under no
obligation (and expressly disclaims any such obligation) to update
or revise any forward-looking statements whether as a result of new
information, future events, or otherwise.