NEW YORK–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/Drones?src=hash” target=”_blank”gt;#Droneslt;/agt;–Bantek, Inc. (OTCPINK:DRUS):
I would like to share with you some of the noteworthy events of this
past year. At times we struggled, but we overcame obstacles and grew the
business. Here are some of our accomplishments:
We experienced many significant events this year. First and foremost, we
restructured our senior secured debt with TCA Global Credit Master Fund,
LP ultimately taking out us of default, extending our repayment term and
lowering our interest rate. We truly value our relationship with TCA
Global Credit Master Fund, LP, and we ultimately strive to be their
greatest success story.
We hired an experienced CFO – Jeff L. Garon. We look to Jeff to help us
get to our ultimate destination: NASDAQ or NYSE.
We settled multiple distracting and annoying lawsuits. It’s imperative
that our focus remains targeted on building our business. One
significant settled lawsuit stemmed from our previous desire to
manufacture and sell drone products internationally. We see significant
business here in the United States. There is no need to pursue expensive
and often fruitless international business.
We significantly reduced our corporate debt and expenses. As a young
public company, we made some costly contractual mistakes. This resulted
in our being overcharged for certain services and in some toxic business
relationships. We have made the necessary corrections and are now
functioning efficiently and at reduced costs while complying with all
mandated SEC regulations.
Over the past year, we changed our strategic direction from a drone
manufacturer to a drone reseller. This significantly reduced our
overhead by approximately $500,000 a year. We also changed our customer
focus from international to national thus greatly reducing travel and
sales acquisitions expenses.
At Drone USA, we developed a sophisticated ecommerce website coupled
with an aggressive digital media promotion with the intent of generating
nationwide drone sales at low acquisition costs. In addition, we
established relationships with various law enforcement agencies in the
tri-state area. We see this market just starting to take off. We are
training police departments to safely implement drone programs in their
organizations. Police are just beginning to see how drones can make them
more efficient. Our projected Drone USA sales goals:
$500,000 in revenue 2019, $750,000 in revenue 2020, 1,200,000 revenue
in 2021, 2,500,000 in revenue 2022. Average profit margin 25%.
Howco Distributing Co.
At Howco, we implemented s profit sharing plan. At Bantek, we have
simple philosophy: the longer we keep our employees, the longer we will
keep our customers and longer we keep our customers the more profitable
they become. The Howco employees embraced the plan wholeheartedly.
Our projected sales goals for Howco are:
We intent to boost Howco sales via re-structuring, implementation of
incentives and increasing our profit percentage. Results expected –
Additional revenue of $2,400,000 in 2019, $4,000,000 in 2020,
$5,000,000 in 2021, $7,500,000 in 2022, $9,000,000 in 2023. In
addition, expectation is to raise blended profit margin to an average
of 7.5% across the board.
We started growing our environmental division by reselling Thermaxx
Jackets and services to hospitals, universities and manufacturers in New
Jersey and Eastern Pennsylvania. As we develop relationships with
university and hospital managers, we will undoubtedly see other
opportunities to sell them additional goods and services. These are the
project Thermaxx profits:
We expect to net $250,000 in 2019, $500,000 in 2020, $1,000,000 in
2021, $1,650,000 in 2022, $2,000,000 in 2023.
Certain statements in this press release may be considered
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements may include projections of matters that affect revenue,
operating expenses or net earnings; projections of growth; and
assumptions relating to the foregoing. Such forward-looking statements
are generally qualified by terms such as: “plans, “anticipates,”
“expects,” “believes” or similar words. Forward-looking statements are
inherently subject to risks and uncertainties, some of which cannot be
predicted or qualified. Future events and actual results could differ
materially from those set forth in, contemplated by, or underlying the
forward-looking information. These factors are discussed in greater
detail in our Form 10 filed with the U.S. Securities and Exchange
Thank you all for your support.
Chief Executive Officer