Nevada
(State or other jurisdiction of incorporation)
|
000-52161
(Commission File
Number)
|
264204714
(IRS Employer Identification No.)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
ITEM 9.01
|
FINANCIAL STATEMENTS AND EXHIBITS.
|
Exhibit No.
|
Description
|
Press Release, dated February 26, 2015
|
Jammin Java Corp.
|
|||
Date: February 26, 2015
|
By:
|
/s/ Anh Tran
|
|
Anh Tran
|
|||
President
|
|||
Exhibit No.
|
Description
|
Press Release, dated February 26, 2015
|
|
·
|
Projected record revenue of $10 million, an increase of 65.7% compared to the prior year with a $17-20 million forecast for revenue for the following fiscal year (F16);
|
|
·
|
Record Gross profit increase of ~236% from a year ago;
|
|
·
|
Global expansion;
|
|
·
|
Launch of ecommerce site and subscription model;
|
|
·
|
$1.5 million in short term capital credit extensions; and
|
|
·
|
Donated ~$83,000 to Waterwise Coffee (www.waterwisecoffee.com) to clean up the rivers in Ethiopia, which equals $0.01 from each RealCup sold during the last fiscal year.
|
|
·
|
Strong Revenue Growth - Our revenue growth accelerated in fiscal 2015 compared to fiscal 2014. Total revenue for the year ending January 31, 2015 is anticipated to be approximately $10 million (compared to $6.0 million for the year ended January 31, 2014), an increase of approximately $4 million or 66.7% from the prior year. What traditionally is our weakest quarter (Q4), saw a significant increase in revenue. We anticipate revenue for the quarter ended January 31, 2015 of approximately $3 million (compared to $1.5 million for the quarter ended January 31, 2014), an increase of approximately $1.5 million or 100% from the prior quarter.
|
|
·
|
Increased Gross Profit - Cost of sales for the year ended January 31, 2015 is anticipated to be approximately $7.0 million alongside discounts and allowances of $0.7 million, which is anticipated to give the company a gross profit of approximately $2.4 million compared to a gross profit of $0.7 million from a year ago, an increase in gross profit of approximately 236% from a year ago.
|
|
·
|
Narrowing Losses – The objective for the company is to continue narrowing its losses and get to positive EBITDA before the end of the year. We anticipate reporting a net loss of approximately $9.3 million for the year ended January 31, 2015 (compared to a net loss of $6.7 million for the year ended January 31, 2014), provided that the losses for our recent quarters are narrowing. We anticipate net losses of approximately $1.4 million for the quarter ended January 31, 2015 (compared to a net loss of $4.1 million for the quarter ended January 31, 2014).
|
|
·
|
Operating Efficiency – Operationally, we delivered the most efficient quarter to date. Our quarter-over-quarter revenue growth (projected as a 100% increase) has significantly outpaced our operating expenses, which shrank compared to the fourth quarter from a year ago. We’ve built a business on having strong gross margins and very little capital expenditures. We also currently believe that we can scale our operations up to $40 million in revenue without materially increasing our staffing needs.
|
|
·
|
Run Rate - Cash on hand as of January 31, 2015 was approximately $445,000. The company also had assets of approximately $2.4 million and liabilities of approximately $2.8 million.
|
|
·
|
Investments/ Loans - Recently, Mother Parkers Tea & Coffee Inc., the company’s largest supplier, has verbally agreed to extend the company’s payment terms from 30 days to 120 days, thus putting about $1.5M in free cash flow back into the company in the near term at no additional costs. Though this is a short-term measure, we believe that this will allow the company to extend its run rate to over 12 months given its current operating needs.
|
|
·
|
Growth Capital - Every growth company, like ours, needs additional capital to expand, but we want to raise capital with the least shareholder dilution as possible. The investment litmus test for most beverage companies is that it generates a dollar for every dollar it has raised. Last year the company raised $2.5 million and the year before that it raised ~$5 million (the company actually converted debt into equity, thus producing ~$5 million in free cash during 2014). We anticipate that we have generated ~$10 million in revenue this year and about $16 million over the last 2 years, which we believe shows a favorable return on the investments when comparing revenue to funding raised. The key in the coming year is to continue executing our plan and exciting the overall market to raise shareholder value.
|
|
·
|
Our revenue expectations for fiscal 2016 still are ~$17-20 million, of which we believe most of the growth will be in the back half of the year. We expect Q1 and Q2 revenues to come in around $3.5 million for the first quarter and second quarter of fiscal 2016, but expect to see those numbers increase significantly in the third and fourth quarters of fiscal 2016 as we continue to grow our accounts and launch our previously announced EcoCup campaign (recyclable compatible cartridges, for use in most models of Keurig®'s K-Cup brewing system) in the second half of the year.
|
|
·
|
We expect gross profit margins to stay between 25-30%.
|
|
·
|
We anticipate losses narrowing even further in the first quarter of fiscal 2016 and our goal is to show positive EBITDA by end of year.
|
|
·
|
Senior management will continue to take most of their compensation via equity conserving available cash for operations.
|
|
·
|
Domestic grocery sales – Our objective is to build deeper relationships and improve turn rates within our existing customers while continuing to expand into key accounts. We have some new accounts, which we are excited about and which should be launching in early Summer. We ended the year in approximately 7,500 stores with an average of 5.2 products per store in the United States.
|
|
·
|
eCommerce subscription model – https://shop.marleycoffee.com/subscriptions/ recently launched and is starting to gain traction. We have been testing multiple initiatives to keep our site “sticky” for consumers.
|
|
·
|
International - The International Coffee Organization recently reported that it expects global coffee demand to rise 25% by 2021. We believe that we are in a strong position to capitalize on that growth and our goal is to continue finding top-tier operators like the ones we have in Korea, Chile and the United Kingdom.
|
|
o
|
Mother Parkers Tea & Coffee Inc. has helped launched Marley Coffee in Canada into approximately 2,000 stores with an average of 5 items per store as well. They have also added Marley Coffee to their foodservice portfolio, positioning it as their premium offering in this channel.
|
|
o
|
Our UK partners will be launching a biodegradable Nespresso compatible this Spring which should help push their grocery and away from home business.
|
|
o
|
South Korea - This remains the most exciting new market for the company. We have several initiatives that have launched or are launching this year. Being successful here has the potential to echo throughout Asia and we believe our success in South Korea will be a springboard to getting meaningful distribution elsewhere in the region, especially China.
|
|
·
|
EcoCup launch – EcoCup's success is built on the critical premise that it doesn’t require consumers to change their behavior. They continue to purchase and use the product as in the past but with a more sustainable end-of-life option. This remains the biggest launch for the company in fiscal 2016 and we expect to start shipping product in August.
|
AKJ)8DF3:X##T-0#3K8$$1+Q7#C,@G4Q?MZ#45H_FC2GB$ MH7B