Long
EDNT our low-float Nasdaq alert with massive upside potential

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Edison Nation , Inc. ( EDNT )
Alert Price: $2.46
Float: 2.93M
Investor Presentation
Investor Video
Website | Recent News
========================
Members,
We are kicking off the month of September with a low-float Nasdaq listed alert that has already delivered some solid gains for us, and whose chart is currently screaming breakout.
Please turn your attention to Edison Nation , Inc. ( EDNT ).
We brought EDNT to your attention back on August 19th when it was trading at $2.04.
Since then, EDNT has easily outperformed the S&P 500 with returns of up to +52%!
Shares of EDNT are currently up over +20% from our August 19th alert price with plenty of room to the upside.
Shares of EDNT hit a high of $2.92 today, delivering intraday gains of over +30%, while trading on higher than average volume .
It appears to be only a matter of time before we see a close above $3.00!
Here's why...
EDNT appears to have established solid support, and is trending bullish with higher highs and higher lows.
EDNT recently reported blockbuster earnings numbers which have us bullish in this 2nd half of 2019.
Revenue and Gross Profit for the Second Quarter of 2019 Increased 36.0% and 61.8%, respectively
More Bullish Catalysts for EDNT
A low float of just 2.9Mn shares.
Revenue and Gross Profit for the Second Quarter of 2019 Increased 36.0% and 61.8%, respectively; Driven by Successful Product Launches and Efficiencies Across Platform
Planning to launch its mobile app version of the Idea Submission Platform during the first quarter of 2020.
Announced they are expanding on their inventor platform by adding two new features “Edison’s Design Challenge” and Entrepreneur Partnership.
Announced that Apothecary Products, a global leader in consumer wellness , has licensed the Ezy Dose Medi-Spout, a pill assisting bottle cap that utilizes patented technology to ease the swallowing of medication and vitamins.
Launched a new product line exclusively for its theme park and entertainment customers, which include Disney Parks and Resorts, as well as Universal Studios, among others.
Launched the "911 Help Now" pendant in March of 2019, in conjunction with a strategic sales and marketing association with Stealth Technologies, which had $800K in initial purchase orders from Audio America, a leading consumer electronics distributor.
Expanded sale of Goodie Gusher party product line into North America's retailers, growing its presence to approximately 640 retail store locations across the United States and Canada.
Introduced two new products in the toy and infant-sleep category: Lullaplayer and My Buddy Bernie. Lullaplayer is a children's MP3 player designed to look and feel like a classic portable record player. My Buddy Bernie is a voice activated, interactive playmate for kids that requires no set-up and works right out of the box.
Successfully entered the eyewear market in January 2019 with Smarter Specs, the first patented glasses with concave lenses, enabling consumers to wear the glasses higher up on the nose bridge, allowing them to look over the glasses without having to tilt their head down, easing neck strain.
Announced that Edison Nation is relaunching the Emmy award-fetching TV show, "Everyday Edisons." Everyday Edisons is an inspirational reality TV series produced under license by Edison Nation , which chronicles the stories of first-time inventors as they launch their unique products into the marketplace in conjunction with the Edison Nation product development platform.
Partnering with several Fortune 500 companies such as, Walmart, Target, Rite-Aid, Disney, Home Depot , and Amazon.
About Edison Nation , Inc.
Edison Nation , Inc. ( EDNT ), an inventor ecosystem driving IP , media and innovative consumer products. Edison offers innovation sourcing, design, sales, fulfillment and shipping services. Edison Nation's model is to source innovative ideas for internal launch or license to brand partners. Throughout 2019 and beyond, Edison Nation looks to establish prominence in the media space through its television show “Everyday Edisons” and additional properties such as Edison Academy. For more information, please visit edisonnation.com.
What does Edison Nation Do?
Since inception, Edison Nation has invested ~$11M to create a propriety open innovation platform, allowing inventors to safely and securely submit their ideas to be evaluated for various commercialization paths from licensing to, most recently, crowd funding.
Typical crowd funding product development cycle:
Edison Nation’s team of product designers and engineers then produce a ready for production prototype, and produce media in-house to launch a crowd funding campaign.
If a campaign is successful they will market the product in the “aftermarket” on sites such as Amazon & Jet
Products are generally manufactured in China with factories (we have 10+ year relationships, generally shipping within 4-6 weeks from order)
EDNT See Major Increase In Revenue and Gross Profit
Revenue and Gross Profit for the Second Quarter of 2019 Increased 36.0% and 61.8%, respectively; Driven by Successful Product Launches and Efficiencies Across Platform
"During the first half of 2019, EDNT achieved significant revenue growth of 49.7%, to $11.7 million, for the six months ended June 30, 2019, driven by the continued success of our IP and the scale of our consumer brands ,” said Chris Ferguson, Chief Executive Officer of Edison Nation . "The company continues to aggressively source innovative ideas via our proprietary Edison Nation Innovation Platform, which selects the ‘best-of-the-best' inventions utilizing proprietary algorithms, and brings them to market quickly. EDNT .’s intellectual property, media, and consumer product launch engine will continue to drive growth in 2019 and beyond. Simultaneously, we are leveraging our combined platform to achieve significant operational and cost efficiencies”.
Financial Results for the Three Months Ended June 30, 2019
For the three months ended June 30, 2019, revenue increased 36.0% to $5.97 million, compared to $4.39 million in the same period in 2018. The increase in revenue was primarily attributed to successful product launches and scaling of EDNT .’s acquired brands throughout 2018.
Gross profit increased 61.8% to $2.04 million in the second quarter of 2019, compared to $1.26 million in the second quarter of 2018. Gross profit margin was 34.2% in the second quarter of 2019, compared to 28.8%, in the same period in 2018. The increase is primarily a result of a favorable product mix of goods sold to customers.
Company Summary
• NASDAQ listed intellectual property and fully integrated consumer products company with three cored divisions:
Innovation – Unique Idea Submission Platform & Development of Intellectual Property
Build and Launch – Product and Package Development
Selling Division - Sale of branded products and custom products & packaging solutions
• March Q1 2019 Gross Revenue of $5.7mn
• Market Cap - $23.5mn based on approximately (6. 4mn shares outstanding as of June 3rd, 2019)
EDNT's Growth Strategy
Idea Submission & Selection Growth:
• The Return of the Emmy & Telly Award-Winning Show “Everyday Edisons”
• Mobile app version of Idea Submission Platform to debut Summer 2019
• Optimization of Idea/Product Selection using Big Data
Product Sales Growth:
• 6 Product Launches per quarter
• Sales growth via Omni-Channel approach
• Growth in DTC sales via Ecommerce Sales and Platform
Acquisition Opportunities:
• Purchase of 1-3 brands per year
Margin Expansion:
• Achieve integration efficiencies post merger and brand acquisitions
• Economies of scale through increased product launches
Revenue from Idea Submission Platform:
Licensing fees: match an innovator’s intellectual property with category leaders (i.e. Black+Decker, Bed Bath & Beyond , etc.)
Innovator can earn up to 50% of licensing fee
Product principals: provide innovators direct access to all of EDNT .’s resources to create & sell new products
Innovators may receive a licensing fee or a percentage of profits
Acquisition driven revenue:
We acquire quality micro-brands that are accretive and take them to the next level
October 2018 - Acquisition of “Cloud b, Inc” a leading children’s sleep products company (cloudb.com)
$6.0mn 2018 Revenue, Gross margin of 45% (proforma and unaudited)
Develop custom products and packaging solutions for well known partners:
Disney, Marvel, Madison Square Garden & Universal Studios
Key Paths to Product Revenue:
Direct-to-Consumer platforms - Amazon, Walmart.com, Kickstarter etc.
Brick and Mortar
B2B distribution
Recent Developments For EDNT
Edison Nation Revenues Rise 49% During the First Six Months of 2019
Inventors, say hello to your new best friend, Edison Nation ( EDNT ). After combining forces with Xspand Products Lab in 2018, Edison Nation has grown into one of the most trusted marketplaces for inventors around the world by creating a platform where inventors can confidentially share ideas and shift the burdensome development and monetization processes to the Edison Nation team. And, that’s good news for inventors, who will be able to seize upon opportunities that can create financial value from recognizing market potentials.
From the investor side, Edison Nation is trading below its most recent highs despite posting a 36% increase in revenue and a more than 61% rise in gross profit. During the first half of 2019, Edison Nation achieved significant revenue growth of 49.7%, to $11.7 million, driven by the continued success of its IP and the scale of its consumer brands. The Edison Nation continues to aggressively source innovative ideas via its proprietary Edison Nation Innovation Platform, which selects the ‘best-of-the-best’ inventions utilizing proprietary algorithms, and brings them to market quickly. Edison Nation’s intellectual property, media, and consumer product launch engine will continue to drive growth in 2019 and beyond.
Inventors and innovators also have reasons to laud the value of Edison Nation , especially those that want to avoid the struggles faced when trying to bring a new product to market on their own. Further, the Edison Nation team also helps many inventors to realize that beyond their gift for concept development, they may ultimately find it difficult to maneuver the complicated landscape of turning prototypes into a market penetrating product. But, the good news is that Edison Nation has a plan for them.
Inventors Let Edison Nation Take The Burden
Since 2008, inventors have recognized that Edison Nation can bring layers of value to their projects. And, while some understand the process, new Edison Nation community members are embracing the learning curve that teaches them exactly how Edison Nation can leverage their more than 100 years of combined experience to bring value to their ideas. Further, Edison Nation believes that every great idea deserves a chance. Today, Edison Nation offers inventors the opportunity to unlock new opportunities by providing an abundance of resources that can take an idea and turn it into a successful and profitable product. Examples of these resources include:
Innovative online platform/Entrepreneur Partnership
“Everyday Edisons” Emmy and Telly award-winning PBS channel show
Edison Academy
Edison’s Design Challenge
For existing products, Edison Nation provides resources and value by strengthening patent protection, developing new distribution channels, and leveraging its market stature through established agreements with many of the world’s top brands, companies, and manufacturers.
Edison Nation And Xspand Products Lab Combine For 100 Years Of Market Experience
The strategic combination of Xspand Products Lab and Edison Nation was transacted in 2018. At that time, Xspand was already a proven, full-service product development, manufacturing, and distribution company that engaged with clients to provide all-in-one solutions to bring ideas to market.
The newly combined Edison Nation team brings its expertise to an online marketplace designed to bring innovators and innovation-hungry companies together. Like Xspand, Edison Nation functions as an “innovation engine,” using its Live Product Search tool that enables an interactive product listing between industry and the inventor to help expedite the review and development process. The process is not overly complicated for inventor members, either. In general, ideas are analyzed and reviewed by the team at Edison Nation , with the best ideas and designs getting forwarded to industry partners for further review. Community generated ideas that are not selected will still become part of Edison Nation’s IP portfolio, adding extra value to the company’s asset base. And, to motivate community contributions, inventors are potentially compensated and incentivized to contribute to the Edison Nation platform, knowing that their chances for marketing success can get significantly heightened through the association.
Moreover, the Edison Nation platform is in growth mode. In fact, since its inception, Edison Nation has received more than 100,000 idea submissions and has generated product sales above $250 million at retail through the development and management of over 300 campaigns in their marketplace for clients. The client list is top-tier and includes some of the world’s largest manufacturers and retailers, including Amazon, Bed Bath and Beyond, Walmart, Rite Aid , Proctor&Gamble, and more.
Currently, the Edison Nation platform has a community of more than 200,000 innovators that confidentially submit ideas via the company’s online platform. From this community, Edison Nation reviews and selects the most suitable projects for development, determined by the intellectual property value as well as by the practicality of the idea. From this vast community, Edison Nation generates revenue of between $25 - $100 per submission that is used to cover program fees and cost related to review. Edison Nation also makes its open innovation platform available to its members, which enables inventors from around the world to submit ideas for potential consumer products.
The robust platform is attracting attention. And, this year, in particular, has been strong for the company, marked by significant operational highlights.
Notable 2019 Operational Highlights
Launched exclusive new products for its theme park and entertainment customers, including Disney Parks and Resorts and Universal Studios including; Avatar Light Up Wood Sprite and Star Wars Baton and Shield Set for Disney Parks and Resorts; A Monsters Inc. interactive flashlight for Tokyo Disney; and a Jimmy Fallon microphone for Universal Resorts.
Licensed Ezy Dose Medi-Spout pill assist cap to Apothecary Products, a global leader in consumer wellness products. It is the second product licensed by Apothecary Products from Edison Nation’s innovator community in what is an enhanced effort to license Edison community ideas to established brand partners.
Edison’s Innovation Platform sources product ideas from an organically grown community of 200,000+. Coming First Quarter of 2020, a mobile application will serve to facilitate further platform engagement.
Return of Emmy award-winning TV show, “Everyday Edisons” with a February 11, 2020 premier - Thomas Edison’s birthday - on a leading SVOD. This show is an inspirational reality TV series produced under license by Edison Nation , which chronicles the stories of first-time inventors as they launch their unique products into the marketplace in conjunction with the Edison Nation Online Innovation Platform. “Everyday Edisons” is produced by six-time Emmy Award-winning producer Michael Cable.
Developed the Edison Academy, inventor centric master classes, teaching the fundamentals of product development and inventing. The Academy serves as a resource to provide ongoing value to the organically grown Edison community of 200,000+, while captivating prospective inventors previously disengaged from Edison Nation . This initiative creates revenue opportunities in the form of recurring monthly and annual subscription fees.
Expanded their Online Innovation Platform with the “Edison’s Design Challenge” that will encourage members of the innovation community to contribute to the design and innovation of products already in Edison Nation’s product launch pipeline.
Expanded the Edison Online Innovation Platform with its Entrepreneur Partnership. The Entrepreneur Partnership is an opportunity for brands to further leverage Edison Nation’s inventor community and proprietary range of services to launch new products or scale additional product line.
A Strategy For Growth Is Set To Deliver Results
More than just products and idea cultivation, Edison Nation has a detailed growth strategy to deliver intended results. The company recently announced the return of its Emmy and Telly award-winning show “Everyday Edisons,” a show that features inventors that are trying to launch inventions into the marketplace. The company is also planning to launch its mobile app version of the Idea Submission Platform during the first quarter of 2020.
To develop product sales opportunities, Edison Nation is focused on launching at least six products per quarter. To complement the product launches, the company is also in the market to purchase up to three new brands per year, will integrate efficiencies for post-merger and brand acquisitions, and is already building out the economy of scale models from its increased attention to product launches.
In addition to the planned product launches, Edison Nation can leverage its cloud-based platform to expertly navigate Big Data and make efficient use of Google and Amazon advertising services to target new products to the right market. Further, Edison Nation and Xspand have the combined experience through their years of industry presence to benefit from a robust platform that differentiates their service from the competition.
Edison Nation Leads The Pack In A Hot Inventors Market
For those keeping track, the new products market has been growing. Everything from new watch designs to expensive exercise equipment all have one thing in common...they need a plan to achieve success. And, that places Edison Nation in the perfect position to take advantage of a dynamic market that is embracing change.
The Edison Nation team brings a win-win proposition where a product and business development relationship can deliver enormous value to both the inventor and to Edison Nation . And, as noted above, Edison Nation makes it simple by enabling its “Live Product Search” to provide an interactive product listing between industry and the inventor. This, in turn, can expedite the review and development processes.
At the end of the day, Edison Nation has the right tools to locate, capitalize upon, and quickly optimize real-world opportunities, which may become the difference between product success and failure. Edison Nation also has the resources and the expertise to patent, develop, and market innovative and market-changing products, which may position Edison Nation , and its growing community of members, to benefit from the rewards that expertise can bring.
View source version on accesswire.com:
accesswire.com/557579/Edison...
Market Outlook
Consumer Buying Habits are Shifting
The “retail apocalypse” is continuing as consumer purchasing habits trend towards online purchases.
The e-commerce market is expected to grow at a 13% CAGR to $682B by 2020.
Consumers are increasingly innovation driven with a need for instant gratification, as consumer desire for next-generation products surpasses the need for brand recognition.
The trend towards crowd funding (i.e. Kickstarter)is disrupting the legacy product development cycle through pre-ordering of products – financing product development while reducing sales risk.
Shifting consumer trends driving the growth of market places (i.e. Amazon) and crowd funding sites provide unique tailwinds for EDNT's growth.
Technical Analysis:
As most of you know, we love low-float picks like this one because of their potential for huge single-session gains.
EDNT is looking extremely attractive at our alert price of $2.46.
EDNT appears to have established solid support, and is trending bullish with higher highs and higher lows.
Traders who start their positions at out alert price could see themselves in the perfect low-risk/high-reward scenario.
EDNT is trading well below its 52-week high of $7.83.
A run-up back to that 52-week high would show traders gains of up to +218%!
The Bottom Line
We believe that EDNT has the potential to be one of the biggest gainers on the Nasdaq tomorrow.
Revenues and Gross Profit are both up significantly in the first 6-months of 2019.
This ticker is extremely volatile, and recently witnessed a single session gain of over +51%.
EDNT's chart is trending bullish , and it appears to be only a matter of time before we see a close above $3.00!
As such, we are urging all members to act fast, start their research, and make sure to add EDNT . to the top of their watch list!
(*Remember to use a Stop-Loss Order or basic Limit Order to protect your gains, as well as limit possible losses.)
Best Regards,
DISCLAIMER
This newsletter is a paid advertisement, not a recommendation nor an offer to buy or sell securities. This newsletter is owned, operated and edited by both MJ Capital, LLC and PennyStockLocks, LLC. Any wording found in this e-mail or disclaimer referencing to “I” or “we” or “our” refers to MJ Capital, LLC and PennyStockLocks, LLC. Our business model is to be financially compensated to market and promote small public companies. By reading our newsletter and our website you agree to the terms of our disclaimer, which are subject to change at any time. We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and are therefore are unqualified to give investment recommendations. Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions, and is for entertainment purposes only. At most, this communication should serve only as a starting point to do your own research and consult with a licensed professional regarding the companies profiled and discussed. Conduct your own research. Companies with low price per share are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service you agree not to hold our site, its editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters or on our website.
We do not advise any reader take any specific action. Losses can be larger than expected if the company experiences any problems with liquidity or wide spreads. Our website and newsletter are for entertainment purposes only. Never invest purely based on our alerts. Gains mentioned in our newsletter and on our website may be based on end-of-day or intraday data. This publication and their owners and affiliates may hold positions in the securities mentioned in our alerts, which we may sell at any time without notice to our subscribers, which may have a negative impact on share prices. If we own any shares we will list the information relevant to the stock and number of shares here. MJ Capital does NOT own any shares of the companies mentioned herewith, nor intends to buy any in the future.
MJ Capital’s business model is to receive financial compensation to promote public companies. We have been compensated fifteen thousand dollars by World Wide Holdings dba Invictus Resources LLC. to conduct investor relations advertising and marketing for EDNT . We have been previously compensated twenty five thousand dollars by World Wide Holdings dba Invictus Resources LLC. to conduct investor relations advertising and marketing for EDNT -which have expired. Any compensation is a major conflict of interest in our ability to be unbiased. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the hiring third party or parties. The third party, profiled company, or their affiliates likely wish to liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Any non-compensated alerts are purely for the purpose of expanding our database for the benefit of our future financially compensated investor relations efforts. Frequently companies profiled in our alerts may experience a large increase in volume and share price during the course of investor relations marketing, which may end as soon as the investor relations marketing ceases. The investor relations marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur. Our emails may contain forward looking statements, which are not guaranteed to materialize due to a variety of factors.
We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our email newsletters and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company’s website and press releases, but is not researched or verified in any way whatsoever to ensure the publicly available information is correct. Furthermore, MJ Capital often employs independent contractor writers who may make errors when researching information and preparing these communications regarding profiled companies. Independent writers’ works are double-checked and verified before publication, but it is certainly possible for errors or omissions to take place during editing of independent contractor writer’s communications regarding the profiled company(s). You should assume all information in all of our communications is incorrect until you personally verify the information, and again are encouraged to never invest based on the information contained in our written communications. The information in our disclaimers is subject to change at any time without notice.
Edison Nation , Inc. ( EDNT )
Alert Price: $2.46
Float: 2.93M
Investor Presentation
Investor Video
Website | Recent News
========================
Members,
We are kicking off the month of September with a low-float Nasdaq listed alert that has already delivered some solid gains for us, and whose chart is currently screaming breakout.
Please turn your attention to Edison Nation , Inc. ( EDNT ).
We brought EDNT to your attention back on August 19th when it was trading at $2.04.
Since then, EDNT has easily outperformed the S&P 500 with returns of up to +52%!
Shares of EDNT are currently up over +20% from our August 19th alert price with plenty of room to the upside.
Shares of EDNT hit a high of $2.92 today, delivering intraday gains of over +30%, while trading on higher than average volume .
It appears to be only a matter of time before we see a close above $3.00!
Here's why...
EDNT appears to have established solid support, and is trending bullish with higher highs and higher lows.
EDNT recently reported blockbuster earnings numbers which have us bullish in this 2nd half of 2019.
Revenue and Gross Profit for the Second Quarter of 2019 Increased 36.0% and 61.8%, respectively
More Bullish Catalysts for EDNT
A low float of just 2.9Mn shares.
Revenue and Gross Profit for the Second Quarter of 2019 Increased 36.0% and 61.8%, respectively; Driven by Successful Product Launches and Efficiencies Across Platform
Planning to launch its mobile app version of the Idea Submission Platform during the first quarter of 2020.
Announced they are expanding on their inventor platform by adding two new features “Edison’s Design Challenge” and Entrepreneur Partnership.
Announced that Apothecary Products, a global leader in consumer wellness , has licensed the Ezy Dose Medi-Spout, a pill assisting bottle cap that utilizes patented technology to ease the swallowing of medication and vitamins.
Launched a new product line exclusively for its theme park and entertainment customers, which include Disney Parks and Resorts, as well as Universal Studios, among others.
Launched the "911 Help Now" pendant in March of 2019, in conjunction with a strategic sales and marketing association with Stealth Technologies, which had $800K in initial purchase orders from Audio America, a leading consumer electronics distributor.
Expanded sale of Goodie Gusher party product line into North America's retailers, growing its presence to approximately 640 retail store locations across the United States and Canada.
Introduced two new products in the toy and infant-sleep category: Lullaplayer and My Buddy Bernie. Lullaplayer is a children's MP3 player designed to look and feel like a classic portable record player. My Buddy Bernie is a voice activated, interactive playmate for kids that requires no set-up and works right out of the box.
Successfully entered the eyewear market in January 2019 with Smarter Specs, the first patented glasses with concave lenses, enabling consumers to wear the glasses higher up on the nose bridge, allowing them to look over the glasses without having to tilt their head down, easing neck strain.
Announced that Edison Nation is relaunching the Emmy award-fetching TV show, "Everyday Edisons." Everyday Edisons is an inspirational reality TV series produced under license by Edison Nation , which chronicles the stories of first-time inventors as they launch their unique products into the marketplace in conjunction with the Edison Nation product development platform.
Partnering with several Fortune 500 companies such as, Walmart, Target, Rite-Aid, Disney, Home Depot , and Amazon.
About Edison Nation , Inc.
Edison Nation , Inc. ( EDNT ), an inventor ecosystem driving IP , media and innovative consumer products. Edison offers innovation sourcing, design, sales, fulfillment and shipping services. Edison Nation's model is to source innovative ideas for internal launch or license to brand partners. Throughout 2019 and beyond, Edison Nation looks to establish prominence in the media space through its television show “Everyday Edisons” and additional properties such as Edison Academy. For more information, please visit edisonnation.com.
What does Edison Nation Do?
Since inception, Edison Nation has invested ~$11M to create a propriety open innovation platform, allowing inventors to safely and securely submit their ideas to be evaluated for various commercialization paths from licensing to, most recently, crowd funding.
Typical crowd funding product development cycle:
Edison Nation’s team of product designers and engineers then produce a ready for production prototype, and produce media in-house to launch a crowd funding campaign.
If a campaign is successful they will market the product in the “aftermarket” on sites such as Amazon & Jet
Products are generally manufactured in China with factories (we have 10+ year relationships, generally shipping within 4-6 weeks from order)
EDNT See Major Increase In Revenue and Gross Profit
Revenue and Gross Profit for the Second Quarter of 2019 Increased 36.0% and 61.8%, respectively; Driven by Successful Product Launches and Efficiencies Across Platform
"During the first half of 2019, EDNT achieved significant revenue growth of 49.7%, to $11.7 million, for the six months ended June 30, 2019, driven by the continued success of our IP and the scale of our consumer brands ,” said Chris Ferguson, Chief Executive Officer of Edison Nation . "The company continues to aggressively source innovative ideas via our proprietary Edison Nation Innovation Platform, which selects the ‘best-of-the-best' inventions utilizing proprietary algorithms, and brings them to market quickly. EDNT .’s intellectual property, media, and consumer product launch engine will continue to drive growth in 2019 and beyond. Simultaneously, we are leveraging our combined platform to achieve significant operational and cost efficiencies”.
Financial Results for the Three Months Ended June 30, 2019
For the three months ended June 30, 2019, revenue increased 36.0% to $5.97 million, compared to $4.39 million in the same period in 2018. The increase in revenue was primarily attributed to successful product launches and scaling of EDNT .’s acquired brands throughout 2018.
Gross profit increased 61.8% to $2.04 million in the second quarter of 2019, compared to $1.26 million in the second quarter of 2018. Gross profit margin was 34.2% in the second quarter of 2019, compared to 28.8%, in the same period in 2018. The increase is primarily a result of a favorable product mix of goods sold to customers.
Company Summary
• NASDAQ listed intellectual property and fully integrated consumer products company with three cored divisions:
Innovation – Unique Idea Submission Platform & Development of Intellectual Property
Build and Launch – Product and Package Development
Selling Division - Sale of branded products and custom products & packaging solutions
• March Q1 2019 Gross Revenue of $5.7mn
• Market Cap - $23.5mn based on approximately (6. 4mn shares outstanding as of June 3rd, 2019)
EDNT's Growth Strategy
Idea Submission & Selection Growth:
• The Return of the Emmy & Telly Award-Winning Show “Everyday Edisons”
• Mobile app version of Idea Submission Platform to debut Summer 2019
• Optimization of Idea/Product Selection using Big Data
Product Sales Growth:
• 6 Product Launches per quarter
• Sales growth via Omni-Channel approach
• Growth in DTC sales via Ecommerce Sales and Platform
Acquisition Opportunities:
• Purchase of 1-3 brands per year
Margin Expansion:
• Achieve integration efficiencies post merger and brand acquisitions
• Economies of scale through increased product launches
Revenue from Idea Submission Platform:
Licensing fees: match an innovator’s intellectual property with category leaders (i.e. Black+Decker, Bed Bath & Beyond , etc.)
Innovator can earn up to 50% of licensing fee
Product principals: provide innovators direct access to all of EDNT .’s resources to create & sell new products
Innovators may receive a licensing fee or a percentage of profits
Acquisition driven revenue:
We acquire quality micro-brands that are accretive and take them to the next level
October 2018 - Acquisition of “Cloud b, Inc” a leading children’s sleep products company (cloudb.com)
$6.0mn 2018 Revenue, Gross margin of 45% (proforma and unaudited)
Develop custom products and packaging solutions for well known partners:
Disney, Marvel, Madison Square Garden & Universal Studios
Key Paths to Product Revenue:
Direct-to-Consumer platforms - Amazon, Walmart.com, Kickstarter etc.
Brick and Mortar
B2B distribution
Recent Developments For EDNT
Edison Nation Revenues Rise 49% During the First Six Months of 2019
Inventors, say hello to your new best friend, Edison Nation ( EDNT ). After combining forces with Xspand Products Lab in 2018, Edison Nation has grown into one of the most trusted marketplaces for inventors around the world by creating a platform where inventors can confidentially share ideas and shift the burdensome development and monetization processes to the Edison Nation team. And, that’s good news for inventors, who will be able to seize upon opportunities that can create financial value from recognizing market potentials.
From the investor side, Edison Nation is trading below its most recent highs despite posting a 36% increase in revenue and a more than 61% rise in gross profit. During the first half of 2019, Edison Nation achieved significant revenue growth of 49.7%, to $11.7 million, driven by the continued success of its IP and the scale of its consumer brands. The Edison Nation continues to aggressively source innovative ideas via its proprietary Edison Nation Innovation Platform, which selects the ‘best-of-the-best’ inventions utilizing proprietary algorithms, and brings them to market quickly. Edison Nation’s intellectual property, media, and consumer product launch engine will continue to drive growth in 2019 and beyond.
Inventors and innovators also have reasons to laud the value of Edison Nation , especially those that want to avoid the struggles faced when trying to bring a new product to market on their own. Further, the Edison Nation team also helps many inventors to realize that beyond their gift for concept development, they may ultimately find it difficult to maneuver the complicated landscape of turning prototypes into a market penetrating product. But, the good news is that Edison Nation has a plan for them.
Inventors Let Edison Nation Take The Burden
Since 2008, inventors have recognized that Edison Nation can bring layers of value to their projects. And, while some understand the process, new Edison Nation community members are embracing the learning curve that teaches them exactly how Edison Nation can leverage their more than 100 years of combined experience to bring value to their ideas. Further, Edison Nation believes that every great idea deserves a chance. Today, Edison Nation offers inventors the opportunity to unlock new opportunities by providing an abundance of resources that can take an idea and turn it into a successful and profitable product. Examples of these resources include:
Innovative online platform/Entrepreneur Partnership
“Everyday Edisons” Emmy and Telly award-winning PBS channel show
Edison Academy
Edison’s Design Challenge
For existing products, Edison Nation provides resources and value by strengthening patent protection, developing new distribution channels, and leveraging its market stature through established agreements with many of the world’s top brands, companies, and manufacturers.
Edison Nation And Xspand Products Lab Combine For 100 Years Of Market Experience
The strategic combination of Xspand Products Lab and Edison Nation was transacted in 2018. At that time, Xspand was already a proven, full-service product development, manufacturing, and distribution company that engaged with clients to provide all-in-one solutions to bring ideas to market.
The newly combined Edison Nation team brings its expertise to an online marketplace designed to bring innovators and innovation-hungry companies together. Like Xspand, Edison Nation functions as an “innovation engine,” using its Live Product Search tool that enables an interactive product listing between industry and the inventor to help expedite the review and development process. The process is not overly complicated for inventor members, either. In general, ideas are analyzed and reviewed by the team at Edison Nation , with the best ideas and designs getting forwarded to industry partners for further review. Community generated ideas that are not selected will still become part of Edison Nation’s IP portfolio, adding extra value to the company’s asset base. And, to motivate community contributions, inventors are potentially compensated and incentivized to contribute to the Edison Nation platform, knowing that their chances for marketing success can get significantly heightened through the association.
Moreover, the Edison Nation platform is in growth mode. In fact, since its inception, Edison Nation has received more than 100,000 idea submissions and has generated product sales above $250 million at retail through the development and management of over 300 campaigns in their marketplace for clients. The client list is top-tier and includes some of the world’s largest manufacturers and retailers, including Amazon, Bed Bath and Beyond, Walmart, Rite Aid , Proctor&Gamble, and more.
Currently, the Edison Nation platform has a community of more than 200,000 innovators that confidentially submit ideas via the company’s online platform. From this community, Edison Nation reviews and selects the most suitable projects for development, determined by the intellectual property value as well as by the practicality of the idea. From this vast community, Edison Nation generates revenue of between $25 - $100 per submission that is used to cover program fees and cost related to review. Edison Nation also makes its open innovation platform available to its members, which enables inventors from around the world to submit ideas for potential consumer products.
The robust platform is attracting attention. And, this year, in particular, has been strong for the company, marked by significant operational highlights.
Notable 2019 Operational Highlights
Launched exclusive new products for its theme park and entertainment customers, including Disney Parks and Resorts and Universal Studios including; Avatar Light Up Wood Sprite and Star Wars Baton and Shield Set for Disney Parks and Resorts; A Monsters Inc. interactive flashlight for Tokyo Disney; and a Jimmy Fallon microphone for Universal Resorts.
Licensed Ezy Dose Medi-Spout pill assist cap to Apothecary Products, a global leader in consumer wellness products. It is the second product licensed by Apothecary Products from Edison Nation’s innovator community in what is an enhanced effort to license Edison community ideas to established brand partners.
Edison’s Innovation Platform sources product ideas from an organically grown community of 200,000+. Coming First Quarter of 2020, a mobile application will serve to facilitate further platform engagement.
Return of Emmy award-winning TV show, “Everyday Edisons” with a February 11, 2020 premier - Thomas Edison’s birthday - on a leading SVOD. This show is an inspirational reality TV series produced under license by Edison Nation , which chronicles the stories of first-time inventors as they launch their unique products into the marketplace in conjunction with the Edison Nation Online Innovation Platform. “Everyday Edisons” is produced by six-time Emmy Award-winning producer Michael Cable.
Developed the Edison Academy, inventor centric master classes, teaching the fundamentals of product development and inventing. The Academy serves as a resource to provide ongoing value to the organically grown Edison community of 200,000+, while captivating prospective inventors previously disengaged from Edison Nation . This initiative creates revenue opportunities in the form of recurring monthly and annual subscription fees.
Expanded their Online Innovation Platform with the “Edison’s Design Challenge” that will encourage members of the innovation community to contribute to the design and innovation of products already in Edison Nation’s product launch pipeline.
Expanded the Edison Online Innovation Platform with its Entrepreneur Partnership. The Entrepreneur Partnership is an opportunity for brands to further leverage Edison Nation’s inventor community and proprietary range of services to launch new products or scale additional product line.
A Strategy For Growth Is Set To Deliver Results
More than just products and idea cultivation, Edison Nation has a detailed growth strategy to deliver intended results. The company recently announced the return of its Emmy and Telly award-winning show “Everyday Edisons,” a show that features inventors that are trying to launch inventions into the marketplace. The company is also planning to launch its mobile app version of the Idea Submission Platform during the first quarter of 2020.
To develop product sales opportunities, Edison Nation is focused on launching at least six products per quarter. To complement the product launches, the company is also in the market to purchase up to three new brands per year, will integrate efficiencies for post-merger and brand acquisitions, and is already building out the economy of scale models from its increased attention to product launches.
In addition to the planned product launches, Edison Nation can leverage its cloud-based platform to expertly navigate Big Data and make efficient use of Google and Amazon advertising services to target new products to the right market. Further, Edison Nation and Xspand have the combined experience through their years of industry presence to benefit from a robust platform that differentiates their service from the competition.
Edison Nation Leads The Pack In A Hot Inventors Market
For those keeping track, the new products market has been growing. Everything from new watch designs to expensive exercise equipment all have one thing in common...they need a plan to achieve success. And, that places Edison Nation in the perfect position to take advantage of a dynamic market that is embracing change.
The Edison Nation team brings a win-win proposition where a product and business development relationship can deliver enormous value to both the inventor and to Edison Nation . And, as noted above, Edison Nation makes it simple by enabling its “Live Product Search” to provide an interactive product listing between industry and the inventor. This, in turn, can expedite the review and development processes.
At the end of the day, Edison Nation has the right tools to locate, capitalize upon, and quickly optimize real-world opportunities, which may become the difference between product success and failure. Edison Nation also has the resources and the expertise to patent, develop, and market innovative and market-changing products, which may position Edison Nation , and its growing community of members, to benefit from the rewards that expertise can bring.
View source version on accesswire.com:
accesswire.com/557579/Edison...
Market Outlook
Consumer Buying Habits are Shifting
The “retail apocalypse” is continuing as consumer purchasing habits trend towards online purchases.
The e-commerce market is expected to grow at a 13% CAGR to $682B by 2020.
Consumers are increasingly innovation driven with a need for instant gratification, as consumer desire for next-generation products surpasses the need for brand recognition.
The trend towards crowd funding (i.e. Kickstarter)is disrupting the legacy product development cycle through pre-ordering of products – financing product development while reducing sales risk.
Shifting consumer trends driving the growth of market places (i.e. Amazon) and crowd funding sites provide unique tailwinds for EDNT's growth.
Technical Analysis:
As most of you know, we love low-float picks like this one because of their potential for huge single-session gains.
EDNT is looking extremely attractive at our alert price of $2.46.
EDNT appears to have established solid support, and is trending bullish with higher highs and higher lows.
Traders who start their positions at out alert price could see themselves in the perfect low-risk/high-reward scenario.
EDNT is trading well below its 52-week high of $7.83.
A run-up back to that 52-week high would show traders gains of up to +218%!
The Bottom Line
We believe that EDNT has the potential to be one of the biggest gainers on the Nasdaq tomorrow.
Revenues and Gross Profit are both up significantly in the first 6-months of 2019.
This ticker is extremely volatile, and recently witnessed a single session gain of over +51%.
EDNT's chart is trending bullish , and it appears to be only a matter of time before we see a close above $3.00!
As such, we are urging all members to act fast, start their research, and make sure to add EDNT . to the top of their watch list!
(*Remember to use a Stop-Loss Order or basic Limit Order to protect your gains, as well as limit possible losses.)
Best Regards,
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MJ Capital’s business model is to receive financial compensation to promote public companies. We have been compensated fifteen thousand dollars by World Wide Holdings dba Invictus Resources LLC. to conduct investor relations advertising and marketing for EDNT . We have been previously compensated twenty five thousand dollars by World Wide Holdings dba Invictus Resources LLC. to conduct investor relations advertising and marketing for EDNT -which have expired. Any compensation is a major conflict of interest in our ability to be unbiased. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the hiring third party or parties. The third party, profiled company, or their affiliates likely wish to liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Any non-compensated alerts are purely for the purpose of expanding our database for the benefit of our future financially compensated investor relations efforts. Frequently companies profiled in our alerts may experience a large increase in volume and share price during the course of investor relations marketing, which may end as soon as the investor relations marketing ceases. The investor relations marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur. Our emails may contain forward looking statements, which are not guaranteed to materialize due to a variety of factors.
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