QUESTION:
- Are we still in talks with Sam’s Club to do their roadshow?
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ANSWER:
Yes. In order to proceed through the sequence of events, especially for increasingly specific business discussions, the company has to be approved by the Walmart USA “system”, because Sam’s Club is a division. The most recent step was to satisfy that organization that we have an acceptable Dun & Bradstreet supplier risk score. Our rating was: 3. This is considered a good score because 79% of businesses have a higher anticipated risk of failure within the next 12 months.
At this stage, various operational possibilities are being considered, however there is no guarantee whatsoever that this will materialize. We are merely advancing through the process of consideration on our own merits as a product, and a company, so far. No expectation of specific outcomes would be appropriate at this stage.
For shareholders not familiar with the supplier evaluation risk score, Dun & Bradstreet describes it this way:
The D&B Supplier Evaluation Risk Rating (SER) predicts the likelihood that a business will seek legal relief from creditors or cease operations without paying creditors in full, over next 12 months. The SER is a harmonized version of the D&B Global Failure Risk Score, generated locally by each country, into a single, normalized 1-9 rating where 1 represents low risk and 9 represents high risk. Although a score of 1 represents low risk, because the SER Score is based on a statistical model, there is still a small probability that a supplier with such a score will cease business operations in the next 12 months. However, the likelihood of such an event happening to this supplier is much lower compared to that happening to a supplier with a score of 9.
