Looking at FUNN from a different angle. This is

Looking at FUNN from a different angle.

This is a start up company, a growth stock. One would never expect all the pieces of the company to be fully mature. The idea in general is to have faith in the company's vision. Then you do due diligence, and follow operational milestones towards that vision + how well the fundamentals of the company are going.

Now 95%+ part of the time, the pink stocks are in research and development mode. The talk about future revenues that may of may not come. The only source of income it generally selling shares and toxic debt.

Folks also need to understand how research is done, First is the 'Big R' or deep research, ie. prove a fundamental principle i.e. 'Does it work?' and then it moves towards big 'D' where the job is to scale that fundamental principle to a scale-able work flow. i.e 'Can we repeat it at scale with acceptable reliability?' Then the process get transferred in to a full production line. (Unless the company is very mature, usually the initial production starts out in a very manual pilot (1/2 Dev 1/2 ops) line before design 2.0 of more automated operations takes place.

Then, there is the building, qualifying, verification / validation + staffing / training of resources.

Understanding where the company is actually at in this process is extremely valuable input to understanding how far revenues are from stated company objectives.

Now think of every aspect and department of a company. From Admin to Marketing to MFG to QA to Logistics, IT, HR and so on and on and on. Think of every single dept as a Big 'R' and Big 'D' moving to scale in their own respective ways. e.g. HR, well most small companies have a book keeper / accountant or executive assistant that handles HR as well because its easy. Then maybe they get a consultant and recruiter. Then suddenly they need full time help to handle just benefits and insurance, and another to drive strategy. Soon a department of 12 with a VP of HR.

But they ALL start at the bottom. They have limited resources, so is it very important to scale properly else you will end up in a poor fiscal situation. Where do they invest first? Choices get made, and as an investor you do what due diligence you can to see the markers towards the greater vision and goal.

But EVERY dept and aspect will have holes, need growing over time, not exist maybe even for a while. This is why it is incredibly easy to be critical on pink stocks, of course there are holes, its a start up. BUT what is the impact, where is the company headed as an aggregate of all the functions?

Roger took over Amfil with a reverse merger. He set about going through all the aspects and subsidiaries, divested one (the mining ops) and set about a strategy that lead to the partnership with GRO3 and the full acquisition of Snakes and Lagers.

Amfil, wasn't set up at ALL for merger accounting systems. There was no 'Corp accounting' IK had theirs and Snakes had theirs, and GRO3 had its own deal. So the corp accounting was still in the 'R' phase.

Now Snakes was a company that was already in production for BGC and the big 'D' / pilot for fulfillment and logistics. But its own internal accounting was in the 'D' phase, they had some but not super scalable. However, the companys success quickly outpaced the capacity of books.

Inject the Audit. It became clear in the initial audit that entire corp level systems needed to be built. They got through everything obviously, BUT while they were figuring this all out. Snakes is even more successful. The sheer amount of new SKUs, location business, ordering, warehouse, staffing, retailers, etc. So now they figured it out but in arrears on getting them in place. So, they upscaled the accounting department to handle FY19, while the older accounting and CFO squad work through the FY18 WHILE putting in new processes. As they have a whole new accounting team for FY19 and beyond, this is why im not concerned about repeating the annual cycle.

THIS IS A HIGH CLASS PROBLEM TO HAVE. Business is good and so successful, other areas of the company are lagging. How many companies would KILL to have production be PULLING the rest of the company along?

How many pinks you see putting out forecasts of revenues and they get every Q and Annual on time, but man they just keep getting uglier?

So this is why I am incredibly confident in the company. Our corp level challenges are temporary. They will get through the audit, we will uplist and life moves on as the corp level matures and expands. But the locations, skus, self production capability, bigger and bigger orders are life lasting. There will ALWAYS be challenges along the way. Just understand are they high class problems or low class problems and what does the forest look like.

While Amfil had been around for sometime. This COMPANY we have now, it is really only 3 years old. They are doing an AMAZING job at growing WITHOUT mass dilution or Toxic financing. The CEO freaking mortgaged his house to buy Morning. He risked his ass FOR the shareholders. You know how easy he could have doled out 100 Million shares instead with some shitty convertible? And for doing that WE HAVE an entire capability, that is going to be a HUGE revenue stream for Amfil.

Same thoughts on honoring the KS backers, it hurts to put out that much money now. Of course it does, but Roger knows this is the right thing to do. This is not immediate gratification, this is going towards a vision of growth and scale.

Maybe you do or dont believe in the fundamentally strategy that Roger has chosen. There are certainly other ways and tactics. However, I personally appreciate the ability to be confident in my investment in FUNN. Because, above all these, we are not getting screwed in any way, shape or form. He is rewarding long term shareholders. That doesn't fit with many pink market strategies, but I love being in a high risk (by default ALL pinks are considered high risk) high reward situation where I am this comfortable in my investment.