Ubiquitech Software Corp

OTC:UBQU

Okay, everyone, I would like to thank you all for coming on to this conference call for Ubiquitech Software Corp. My name is Joe and I am one of the Joe, I am one of the IR guys for midamir.com. Before we begin, I will need to read a brief disclaimer and forward-looking statement disclosure as well. Forward-looking statement is set for historical information contained herein. The statements in this conference call are forward-looking and made pursuant to Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this conference call include statements regarding marketing and distribution plans, development activities and anticipated operating results. Factors which could cause actual results to differ materially from these forward-looking statements including such factors as the Company's ability to accomplish its business initiatives, significant fluctuations in marketing expenses and ability to achieve and expand significant levels of revenues, or recognize net income, from the sale of its products and services, as well as the introduction of competing products, or management's ability to attract and maintain qualified personnel necessary for the development and commercialization of its planned products, and other information that may be detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Now, I would like to hand it over to Mr. Jim Ballas to go over the recent developments of the company as well as hold a question-and-answer segment following his presentation. So, Jim, the floor is yours.

Well, thank you, Joe. Very happy to be here and very happy to be able to communicate with our shareholders and potential shareholders and we are very pleased to release our financial results for the fourth quarter and year ending November 30, 2016. Now, I would like to highlight a few items and then we will move to the question-and-answer field as he mentioned.

Now revenue for the year grew to $3,493,113 and the company had net income of $334,350 and those are records for the company, not bad.

Now for the fourth quarter, the company had revenues of – $1,225,015. Now this is an increase of 35% from our previous quarter, the third quarter. The company was able to reduce its debt during the quarter with a portion of that paid through cash flow from operations and the company successfully added approximately 10,000 new customers during the year and in addition the company finished the year with a comfortable cash flow and with a strong inventory position as well, so we’re very pleased with our growth.

And I am ready for any questions that you have.

All right, well, thank you, Jim. So, you’re good for the question-and-answers. We had a few of the tech team and a lot were similar, but we will go over the ones that were most recently asked and I think that’s a lot more interesting…

Sure, make that by either way…

Okay, all right.

Go ahead.

Let’s start with the first one. What does the current debt structure of your company looks like?

Okay, good question. Great, great question. The company made money privately during 2013 and 2014. This was to launch and build out the HempLifeToday vision, the vision of HempLifeToday. There’s also some legacy debt in the previous subsidiary of the company and the company is now in a solid working capital position and has the infrastructure in place, so we can handle the demands of the projected growth for 2017 and we believe that no additional debt is needed at this point. So we’re really looking good on that.

Now, I would like to stress that in the most recent quarter, the company pay down some debt with cash flow some of our operations and we have to believe that this point of action will continue. The company will continue to balance the use of cash between growing the company and paying down debt.

That’s excellent, okay. Second question we had was with regard to the share structure, can you further elaborate on this for those that are on the call?

Yes, I certainly can. Well, we firmly believe that our company is in its infancy at the leading edge of a significant growth curve. On a relative basis to our peers in the industry, our share count, overall market capitalization and market trading volume are all on the low end of the spectrum, now I will not mention any names, but if the investors do their homework and compare our revenue and our earnings to other companies in the industry, we’ll hope at least people will feel l comfortable with our plan of action and our plan of execution, because we've done a wonderful job.

All right, thank you. So now we’re going to move on to probably one of the more frequently asked question that many have been asking us and I’m sure maybe they have sent to you guys as well. Can you also expand a little on your name change?

Yes, I should tell them. The name change that I – also about five times a day. Yes, as mentioned in many previous press releases, we have done studies and we’ve consulted and we’ve determined that Endo BioSciences Inc. would be the most appropriate name for our Company moving forward. Now as we believe our name in standard terms is an [indiscernible].

The new name has been reserved with the State of Colorado, and we are progressing through all additional items to complete all of the State of Colorado’s filings. And shortly, we will have a complete [indiscernible] package and then we will be waiting for their final approval. Now we are very committed to this process. I can’t make this any clearer to the shareholders.

We are completely committed to our name change. We understand the importance of the name change for our future within the Company, within the shareholders and we are going to get this done.

But it is also extremely important that all of the information that we present is fairly well, is complete, accurate and in prefect order. That makes several things done and we don’t want that to happen. So we will continue to keep investors informed of the progress that we are working on this every day and it is probably one of the most important things that I handle every day is necessary that name change goes through and goes through as quickly as possible.

And what can you say about any potential uplift?

I will be very brief. We are in a stronger financial position this year and we will begin to explore the possibilities of uplifting to a higher tier marker just as soon as we can.

Okay. So I think you definitely briefed on the main questions, a few that we had, just you may want to start where with regard to operations. What can you talk about as far as any new products with the company?

Yes, we have mentioned in a press release last week that we are revealing our product line for 2017 and we are currently working on that. They are adding first of all to our tinctures and our concentrated oil. We are adding a lot more plant terpenes than we have before, up to 200% more. Lab results as well as test subjects as well research in the industry is showing that adding more of these plant materials along with the CBD components gives a more entourage effect overall health and benefit. I know I feel the difference with our new products and many of our staff does. And we believe our customers are going to just love the new product line.

So we’re adding those to our essential oils, our tincture, our concentrate we have, our new mixable powder, we were at a soluble – water soluble last year. Now we have a mixable powder. More people wanted to use our mixable powder for smoothies, and for shakes and on food. So we developed a product that’s much better and more potent for those uses.

We also have a new Gelcap, it’s our best ever, 25 milligrams, at the end the same infusion system that we announced last year, our NanoTech Infusion system that adds the additional terpenes and steroids to the products. So we’re very excited about our new Gelcap. And then we have a new weight product, our CannazALL is popular. We have a new product coming out, we’re going to be calling out CannazALL honey and it’s going to be a bit of a surprise that it’s going to fantastic and we’ll be unveiling that in the next couple of weeks, as well.

And we’ve got some of our online possible gummy, gummy CBD gummy there as we’ve got a new vapor product in the canister. So that’s more of a way it drew but has different flavors. We’ve got new flavorings for our tinctures that we expand on with. So there is going to be a lot of new products, a lot of our solid product line, there’s no need to go over board on the different products, we like to see the numbers eight to twelve total products, we think that covers every single CBD lid and we just want to make sure that we’re [indiscernible] to have the highest quality products. But there’ll be some growth announcement.

Of course, and that’s sounds really something that we can always look forward to seeing…

Active agents [ph].

The other question I had that I’ll ask was what kind of guidance can you give regarding the customer base and how you see it firming up by year-end considering just this last quarter’s result.

Yes great question. As we stated in the opening we added approximately 10,000 new customers in 2016. With bulk of that rolls coming in the last couple of quarters in the last fourth quarter, exponentially. What we’ve done Joe is turn exquisitely along ourselves and had a foot tank on the Internet where when people search they can find CannazALL and templates for that [ph]. So as awareness of CBD products raises we see a spike in sales. This is the way we design the company, this is why we keep ad cost so low.

Why would we spend a lot of money on that we think, when the media is spending millions, creating awareness of this product. Every show, every documentary that’s done, every news announcement gets us a spike in sale. When we started off, it was estimated that 1% to 2% of the people of the United States were aware of CBD by about mid 2015 going into 2016 it was estimated to be about 5%.

No one has known a current study but many people believe we are approaching 8% to 10% awareness of CBD among the public, the general public. That’s why we are seeing our sales go up. We are tied into that awareness when this hits critical mass then 15%, 20%, 25% of the American population is aware of CBD products, our sales – the sky is the limit of what our sales can be. And that is what we have positioned our company to take advantage of that organic natural growth. Nothing we can do is strong than that.

All right, all right, so I think…

What I’m saying that we believe that we can have – let me just kind of go on. We believe that minimally we can add 100 new customers per day minimum. That would be about 36,000 this year. And with our referral programs Joe that could double.

Our average order runs about $155, but more importantly no less than 25% of our customers continue to be customers week after week, month after month, we maintain an amazing customer base. So when we take that and we look at the estimate of growth from the media feeding up again deals happen to this potentially multi-billion industry, the way that we are our growth this year and next year, we believe is going to just continue to sky rocket.

As far as the industry itself, one last thing I wanted to touch on, what’s you opinion on the CBD market as a whole and what are your expectations on that market side?

Great question, again simply put. Let’s look at CBD. CBD is potentially the most important breakthrough in natural healing of the last 100 years. So that’s pretty important. We believe the industry is in its infancy it’s not even out of the cradle yet but we have created a footprint in this industry that we will get the attention as this awareness grows. So what did we do, we have a product portfolio we believe that it is positioned to be the highest quality USA grown, CBD order products at the most competitive prices. With the best customer support and faster shipping we can possibly do it. If anybody has a problem with our company because our growths are so great, we have sometimes get a little logjams just dealing with our growth, but we add people and we do what’s necessary to keep our company growing.

So I think and many people in the industry think we're dealing with a multibillion dollar industry and also with CBD for health, for beauty supplies, skin particle, USIV, beauty usage, rejuvenation of the skin. There are companies out there like – I can’t mention them, but they are looking at CBD to be on a worldwide sale. So this is an incredible, unbelievable industry in this infantry and we are so proud of what we've achieved to be at the heart of that industry over the last three years.

So, if any final closing remarks – and by the way, if there is any other questions that you want to ask, please intimate them to IR contact on the PR or the investor email address as well. Thank you. But before we close are there any final remarks that you like to stretch through, Jim Ballas?

Yes, I do. And I really would appreciate this opportunity to speak to the shareholders. I just want to say one more thing to our shareholders and that is it has been very difficult for me to temper my excitement on this call because I see what's happening in this industry with our customers and with our growth and the sky is the limit of what we can achieve. It's very difficult for me to just control my enthusiasm. So I wanted to say thank you to our shareholders. Have a great night. We are not going to disappoint you.

All right. Well, thanks for taking the time everyone in the call. Thank you as well for taking your time. This concludes our conference call with Ubiquitech Software Corp and Jim Ballas. Jim, thank you very much. And everyone else, thank you. Have a good day.

Thank you, Joe.