SUGARMADE, INC. (OTCMKTS:SGMD) Files An 8-K Other Events
Item 8.01
Gross sales estimates for the total Budcars operation for the three-month period ending June 30, 2020, are approximately $1,009,000, which includes approximately $252,000 during the month of April 2020, $317,000 during the month of May 2020, and approximately $440,000 for the month of June 2020. The Company believes growth in gross sales is a result of the implementation of BudCars’ long planned strategy to expand operations, increase the number of product lines and to enhance overall customer service levels. The gross margin is approximately 50% of gross sales. However, due to the increased manpower, advertising and marketing expenses, the Company has not yet generated net profit from the BudCars operation. The Company estimates for net sales for the BudCars operation for the three-month period ending June 30, 2020, was approximately $953,000, which includes approximately $235,000 during the month of April 2020, $301,000 during the month of May 2020, and approximately $417,000 for the month of June 2020.
The above estimates may be subject to change upon accounting adjustments. These estimates may not be reliable. Further, the Company may not be able to accurately forecast our growth rate predicated upon these estimates. A significant portion of the Company’s and BudCars’ expenses is fixed, and we may not be able to adjust our spending quickly enough if our sales are less than expected.
Our revenue growth may not be sustainable, and our percentage growth rates may decrease. Our revenue and operating profit growth depends on the continued growth of demand for the cannabis products and services offered by BudCars and our other business operations. In addition, BudCars and our business are affected by general economic and business conditions. Our sales and operating results fluctuate for many reasons, including BudCars and our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers’ demands, our ability to offer products and services on favorable terms, manage inventory, and fulfill customer orders, the introduction of competitive services, websites, products, and price decreases and risks described elsewhere in our filing of reports.
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About SUGARMADE, INC. (OTCMKTS:SGMD)
Sugarmade, Inc. is engaged in the supply of products to the quick service restaurant sub-sector of the restaurant industry. The Company is a distributor of paper products derived from non-wood sources. As of June 30, 2015, the Company’s operating unit, CarryOutSupplies.com, which is a producer and wholesaler of custom printed and generic takeout supplies served more than 3,000 quick service restaurants. It conducts its operations in an industry segment, including paper and paper-based products, such as paper cups, cup lids, food containers and others. Its products also include double poly paper cups for cold beverage, yogurt cups, ice cream cups, soup containers and plastic spoons. It is a manufacturer and distributor of tree free copy and printer paper products, made from sugarcane waste (bagasse) and bamboo for home and office environments under the Sugarmade brand name. It has also acquired a minority stake in various patents and products for seasoning and spices for food items.