As May 15th fell on a Sunday, the filing is permitted today. The upload will be done tonight, on time.
Such filings contain a Management Discussion and Analysis. This forms an important part of understanding the financial statements. I encourage serious investors to understand the narrative of these filings for context. http://www.otcmarkets.com/stock/WNBD/financials
This Quarter’s filings will show that the growing interest in Winning Colours 1000+ will not be evident with the March 31st cut off date because of a deferral of a major order between quarters from the company’s Canadian distributor – to be filled with new 1000+ labelled product for its retail banners as soon as it is manufactured. Accordingly, what on the surface appears to be a reduction in sales between Q1’s of 2010 and 2011 is primarily attributable to that distributor being shipped less Winning Colours than usual in those 12 weeks, i.e. Q1 2011, pending delivery of the 1000+ version that is going into production, with the result that the majority of their inventory float will the new version. This is far more beneficial to Winning Brands, as this customer normally takes a 6 month supply. This action will acelerate the integration of 1000+ into store shelves.
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There is no fundamental difference between American and Canadian consumers, and we have evidence that the U.S. consumers who have been using Winning Colours 1000+ are just as enthusiastic about it. Therefore, merely by gaining U.S. retail banners that are equivalent to stores that already carry the product in Canada, it should be possible for Winning Brands to achieve a ten-fold increase in sales based on nothing more complicated than the ten-fold greater population in the USA.
Under those circumstances, for which suitable conditions are steadily emerging, Winning Brands should expect to achieve $5 million in sales as its new foundation, without any increase in the proportion of the population that knows about the product in Canada – which is still relatively low. At $5 Million in annual sales, Winning Brands would be more than self-sufficient, inherently profitable and in a very good position generally to realize our destiny. As word in America spreads about our lead product AND that product(s) can be found easily in the most popular stores, the most difficult stage of a brand’s formative years will be behind us.
