JACKSON, WY / ACCESSWIRE / January 4, 2024 / (OTC PINK:LTNC), Labor Smart, Inc.and its wholly owned subsidiary, Next Gen Beverages LLC, is pleased to provide the following business update to shareholders.
2023 In Review:
- January 2023: First action taken to regain Shareholder trust, including proof of payment to an SEC attorney.
- February 2023: "NXT LVL" Hydrogen Water restocked, and new attorneys hired to resolve lawsuits. Relationships with Manny Pacquiao and large private investors were mended.
- March 2023: Mike Holley lawsuit settled and PFL re-engaged, restoring important relationships.
- April 2023: Tom Zarro assumed the role of interim CEO, replaced Toby on the Board of Directors, and settled a copyright infringement issue with "Next Level Fitness Water".
- May 2023: The LOCK'D IN brand was established.
- June 2023: Completion of the 2021 audit with release of auditor's letter, completion of a new website, announcement of a new product lineup, partnership with the Figeroa family, and the first-ever health and wellness Twitter Space.
- July 2023: Launch of the LOCK'D IN mobile app and Nootropics Performance Drinks. Signed marketing agreement with Manny Pacquaio Ventures. Establishment of new entity, Next Gen Beverages, as wholly owned subsidiary of Labor Smart, Inc.
- August 2023: Bevnet reported that the new Interim CEO, Tom Zarro, is set to "pick up the pieces". New product, Nootropic K-Cup Coffee, ships to customers and receives high praise.
- September 2023: Kidz water and Pineapple Nootropics signature series announced.
- October 2023: The first LTNC shareholder meeting, since inception of company, was held to vote on the Company's proposed Board of Directors. All members were elected unanimously.
- October-November 2023: Marketing efforts ramp-up, with inaugural promotional post on social media from World Boxing Champion and Lock'd In board member, Manny Pacquaio.
In addition, we are pleased to provide the following business updates:
Marketing and Sales
Marketing efforts in the fourth quarter of 2023 failed to produce material returns and the learnings were used as a springboard for a reset that commenced in December. As part of our "reset" initiative, additional ad spend was allocated to major social media platforms and SEO optimization was implemented. Enhanced Email marketing and website conversation rate optimization are in progress. In the second half of 2023, we are pleased to report that first-time customers made up over 25% of orders, and we aim to drive this measure higher over the coming months. While limited resources may continue to hinder the speed of implementation, we are committed to balanced and sustainable growth and are confident that our marketing partner, supported by our in-house talent, will deliver on expectations.
Work is underway on a gamer community portal at lockdin.com, allowing us to fully engage with an important community of performance-driven customers.
The Company also recognizes the importance of the in-store sales channel. As part of this pursuit, we are now registered with the 1WorldSync commerce platform. This sales platform exposes our products to a wide range of retailers, which helps sales reps deliver the company message in real-time and communicate with buyers quickly and efficiently. This includes a focus on grocery, C-stores, natural product markets and specialty retailers.
After setting a solid foundation for the company in 2023 with world class branding and novel science-driven functional beverages we are now set to expand the business. This includes a continued focus on direct-to-consumer sales, and a renewed push on retail sales through new company sales representatives, brand ambassadors and sales platforms. Several exciting new products and formulations are in development which allow the company to service the needs and requests of our valued customers with cutting edge beverage innovations. At the same time, we continuously evaluate the sales performance of our product lines and flavors, making changes as required in the interest of efficiency. Our goal is to deliver products that are best-in-class, distinct from the competition and superior in both taste and performance. We have achieved this to date with the Hydrogen Rich Water, Alkaline Water, Nootropic Infused Coffee and Nootropic Drinks, and look to expand the brand offering with additional products to complement and enhance an active, healthy lifestyle.
To help execute our sales ambitions, we are pleased to announce the following additions to our Sales team:
- Patrick Otton, Sales Representative, West/ US/National
- Trevor Nixon, Sales Representative, Northwest US/National
PFL
The Company and the PFL maintain an amicable relationship, despite a balance in arrears owed to the PFL since 2021 by Takeover industries. The Company has submitted a proposal for repayment and is awaiting a response. It is the Company's intention to remain involved with the PFL, albeit to a lesser degree commensurate with our status as a startup, committed to spending responsibly to maximize shareholder return.
Operations & Customer Service
The Company is currently exploring several manufacturing and logistics changes to improve product margins, which is critical for profitability and reinvesting into marketing for sustainable growth. This is being done to accommodate future growth and does not diminish our current vendor partners. All relationships remain strong.
Amazon FBA (Fulfilled by Amazon) is also under review; however, we also recognize its negative impact on margins due to high fees. A pilot project will run in 2024 to evaluate Amazon FBA, its effects on sales and margins, and whether it is a net benefit to transition. Nevertheless, all of our products will be listed on Amazon by end of January, 2024.
Additionally, we are pleased to announce the appointment of Chuck Hardee as Director of Customer Relations. Mr. Hardee is a successful business owner in the retail space, and passionate about delivering exceptional customer service.
Legal Update
Discussions have commenced regarding a potential settlement in the Arizona case against Mr. Tucker. We are committed to diligently working towards a resolution, and if necessary, we will continue to litigate until completion.
The Company anticipates that the Deppoleto lawsuit is nearing its conclusion, with the settlement document currently in its final drafting stages. All major points have been agreed upon in good faith. While the matter is not concluded and obstacles may still arise, we are optimistic.
Audit update
The 2022 Audit is ongoing. We acknowledge that this has been a lengthy process, initially anticipated to have concluded several months ago. However, the audit's objective is precision, which necessitates a thorough review, including requests for additional information, supporting documents for all entries, and third-party confirmations for every payable and receivable. We have submitted all requested materials and maintain regular contact with the auditors. We appreciate your patience and understanding during this process.
Trading update
As previously discussed, and promised at our first Annual Shareholder Meeting, Labor Smart has applied for OTCIQ access. Our application, officially known as the Disclosure and Service Application, is currently under review. This process included background checks for directors, which have been completed.
We are also prepared to upload financials upon approval of the application. To facilitate this, the company ceased product shipping for the year 2023 on December 27th, allowing our accounting team to focus on preparing our non-audited 2023 numbers for upload and submission. We anticipate completing these internal tasks by January 15th.
Previously, LTNC's application for OTC access was denied due to a control change during the application process and perceived promotion related to price action and activity surrounding the ticker LTNC. To avoid a repetition of these issues, we have taken several steps. We completed new board elections and updated OTC markets and the State of Wyoming Security of State prior to application, addressing all control changes. The company is currently in a non-posting status until our application is fully reviewed and, we hope, approved. This addresses any perceived promotional activity.
If approved, we will upload our audited numbers for 2021 and 2022, as well as our unaudited 2023 numbers, an attorney letter, and await the final decision from OTC markets. We have had several conversations with OTC to fully understand the process and allow us the best chance of success. This is the first time the application, background checks, and fees have been paid to OTC Markets since the Takeover/Labor Smart union took place. The Company extends a sincere thank you to the current team of employees and volunteers for their tremendous efforts in preparing LTNC for the application process while also driving the business forward.
We will immediately update shareholders on the status of our application and the decision once made. We anticipate having answers by the end of January.
Share Structure
On December 1, 2023, the Board of Directors voted to increase the Company's authorized shares. The increase is aligned with the Company's stated goals of settling lawsuits, delivering profits, and achieving tradability on the OTC market. We believe it is prudent to have the ability to "strike" if the opportunity presents itself to achieve the stated goals.
We intend to guard our existing share structure with the same vigilance as we do overhead, inventory, cash flow, intellectual property, and all other Shareholder assets.
Future Outlook
LTNC is poised for an exciting year in 2024, with a robust product line, a proven supply chain, a dedicated sales team, and promising discussions underway with some of the country's largest distributors.
Our strategic expansion into micro-marketing in specific geographic regions is designed to maximize the impact of our ambassadors. We are also developing several new products that will not only cater to our gaming community but also complement our existing product line. We anticipate rolling out these products by the end of H1 2024, subject to time and financial resources.
A beginning search is underway to secure a new CEO for this exciting new start-up company. An official posting will be coming very soon for a candidate that meets our requirements. If the perfect candidate cannot be found, Tom Zarro will assume the role of CEO.
Our team, comprising over 20 highly skilled employees and volunteers, is committed to our mission of developing all-natural hydration and energy products and becoming a publicly traded company. This count includes only our internal team members who work tirelessly every day towards our bright future.
We are planning our annual shareholder meeting for October of this year again in Las Vegas Nevada. This event provides an opportunity for shareholders to come together, share their thoughts on how we can improve as a company, and receive comprehensive updates during live Q&A sessions with the board and others team members.
At LTNC, transparency is our guiding principle. We believe in sharing news with our stakeholders, whether it's positive or challenging, because we value truth above all. We've found that the best way to engage is in person or live, which is why we host our meetings and live spaces events.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the U.S. federal securities laws, which statements may include information regarding the plans, intentions, expectations, future financial performance, or future operating performance of Labor Smart, Inc. ("Labor Smart" or the "Company"). Forward-looking statements are based on the expectations, estimates, or projections of the Company's management as of the date of this press release. Although Labor Smart's management believes these expectations, estimates, or projections to be reasonable as of the date of this presentation, forward-looking statements are inherently subject to significant business risks, economic and competitive uncertainties, or other contingencies, which could cause the Company's actual results or performance to differ materially from what may be expressed or implied in the forward-looking statements. Important factors that could cause Labor Smart's actual results or performance to differ materially from the forward-looking statements include those set forth in the "Risk Factors" sections in the Company's filings with the Securities and Exchange Commission, which are available for viewing on the SEC's EDGAR website. These forward-looking statements speak only as of the date of this press release and, except as required by law, Labor Smart specifically disclaims any obligation to update these forward-looking statements, even if new information becomes available in the future.
Media Contact
Tom Zarro, Interim CEO, and BOD member
Mailing address
P.O. Box 2922
Jackson, WY 83001-2922
customerservice@lockdin.com
844-562-5246
www.lockdin.com
SOURCE: Labor Smart, Inc.
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