Announcement PDF Annual Report 2022/23 thecalmerco.com Annual Report 2022/23 DIRECTORS James Dack (Non-Executive Chairman) – appointed 29 September 2022 Zane Yoshida (Non-Executive Director) Company Secretary SHARE REGISTRY Jay Stephenson Automic Share Registry Level 2, 267 St Georges Terrace, Perth WA 6000 1300 288 664 (Local) +61 2 9698 5414 (International) REGISTERED OFFICE Suite 9, 330 Churchill Avenue, Subiaco WA 6008 – appointed 20 December 2018 Anothony Noble (Managing Director) – appointed 20 December 2021 James Tonkin (Non-Executive Director) – appointed on 30 January 2023 Griffon Emose (Non-Executive Director) 2 – appointed on 30 January 2023 CONTACT INFORMATION Tel: +61 8 6489 1600 AUDITORS Hall Chadwick Qld Level 4, 240 Queen Street Brisbane QLD 4000 GPO Box 389 Brisbane QLD 4001 BANKER National Australia Bank Level 1 / 1238 Hay Street, West Perth WA 6005 PRINCIPAL PLACE OF BUSINESS 96 Victoria Street, West End QLD 4104 POSTAL ADDRESS 96 Victoria Street, West End QLD 4101 Annual Report 2022/23 Table of contents Letter from Chairman & CEO 4 1) Company overview 8 2) Director’s Report 16 3) Financial Information 42 4) Independent Auditors Report 86 5) Corporate Governance Statement 92 6) Additional Information for Public Listed Companies 105 3 Annual Report 2022/23 Message from the chairman Mr James Dack OAM Chairman 4 I believe that kava and CBD can become the leading natural health remedies to calm nerves and support mind and muscle relaxation. Annual Report 2022/23 Dear shareholders, I was first made aware of Fiji Kava as the naming sponsor of the Kaiviti Silktails RLFC, with whom I am actively engaged and am the #1 ticket holder. I saw that the company has a simple value proposition in endeavouring to provide a suite of high-quality products underpinned by a network of Fijian farmers for whom we can make a big difference with reliable demand for kava at fair prices. Since taking on the Chairmanship of the company, we have been joined by Griffon Emose and Jim Tonkin on the board as non-executive directors. Jim has brought a wealth of experience and a deep network in the USA market, that now represents most of our sales. Griffon has a long relationship with the business and his financial and Fijian institutional experience has been invaluable to supporting this new and very effective Board of Directors. In recent years, the regulations for our products in Australia and across various global markets including the USA, New Zealand, and more recently, South East Asia have become more favourable. These regulatory changes pertain particularly to kava and CBD based products and we anticipate this trend to persist globally. These favourable shifts have provided our company with structural tailwinds. I believe that kava and CBD can become the leading natural health remedies to calm nerves and support mind and muscle relaxation. They boast both safety and broad consumer appeal. Calmer Co is well positioned in both categories with premium-quality offerings and a track record in cultivating demand for new functional health products. We have needed to make some hard decisions to stay in business this year and to refocus on what is most commercially viable. We can now begin to see the green shoots of those decisions emerging in the second half of the financial year and in particular in the most recent quarter. Mr James Dack OAM Chairman 5 Annual Report 2022/23 Message from the CEO Dear shareholders, FY2023 marked a pivotal period of evolution for our company. Under the new banner of The Calmer Co International, we initiated a comprehensive transformation strategy. This involved a strategic shift towards higher-margin distribution channels for our products, supported by an increasingly cost effective supply chain. This strategy is evident through our recent distribution partnerships with industry leaders such as CJ Patel, Roolife Group, Naturally Elevated, Coles and the continued development of our online sales channels, in particular Amazon. com USA where we are seeing remarkable results for our instant kava range. The new strategy is a work in progress, but it has begun to yield good results. Our half year sales grew by an impressive 34% in comparison to the preceding half-year, concurrently elevating our gross profit margin to an impressive 46% during the latter half of FY23. Our supply chain has also been fortified during the year. We have now established 12 farm offtake agreements, strengthening the foundation of our production and we have relocated our processing hub to Navua in Viti Levu, demonstrating our commitment to cost-effective production. Our corporate rebranding to The Calmer Co. reflects our broadening ambitions and the diversification of our product portfolio. Fiji Kava®, continues to exhibit strong performance, particularly in US ecommerce channels and our USA division has now traded profitably for the past 4 months with an average daily sales turnover exceeding $3000/day. We will expand on this success and launch into the Kava Bar market in the USA this coming year. Danodan® has begun to rebuild from a slow 2022 and an increasingly challenging market for cannabis products in the USA, and is tapping into new retail channels in Washington state, Hawaii, and their home market of Oregon. The introduction of a range of innovative topical products further underscores its strategic evolution. Taki Mai®, in the capable hands of the CJ Patel Group, has found a natural and prosperous niche in the Fiji Islands, the broader Pacific region, and most recently, in New Zealand. This expansion is grounded in solid trade-based strategies with a highly experienced partner. The revitalisation of our partnership with Leilo® also ushers in exciting new prospect. We have already initiated 6 sales to resorts and higher margin tourism channels in Fiji, with the intention to replicate this distribution model in Annual Report 2022/23 multiple new markets and to manufacture locally where possible to increase profitability and reduce complexity and costs associated with beverage logistics. Despite the past challenges we have faced in the Chinese market, our collaboration with RooLife presents a paradigm shift for China. RooLife boasts a proven track record in driving sales for nutraceuticals, health foods, and functional beverages in China, building our belief in the potential of this vast sales territory; Initially, through ecommerce and with ambitions for launching into general trade. Our supply chain has been comprehensively redesigned for both efficiency and growth. Our manufacturing operations have been strategically relocated to Navua on Fiji’s primary island, Viti Levu. This new processing facility enables us to access a skilled workforce and scale production up to 5 times from our current levels with minimal additional capital expenditure. Our geographic proximity to Kai Ming Agro Processing also plays a pivotal role in our operations, enabling seamless collaboration and co-manufacturing of novel product lines alongside an experienced manufacturing partner. Our executive leadership team and the Board of Directors, now possess a diverse and comprehensive skill set to drive our global expansion efforts and foster enhanced relationships with government and investors. James Dack joined the Board in October, amid our turnaround and has lent his steady hand to keeping the team laser-focussed on the drive towards positive cashflow and profitability. James was awarded the Order of Australia Medal this year and the passion and leadership he has shown in services for youth shines through in his engagement with our team and with our Fijian collaborators. Our CFO, Pravinesh Lala who joined us in May 2022 has been an indispensable part of the senior leadership team, leading the implementation our new ERP system and Cin7 which has allowed us to take a data driven approach to cost reduction, implement rationalisation of the product range and to ensure all new projects show profit at the SKU level. These projects have underpinned our recent trading improvements and cost savings and hard decisions this year will flow through to the results over the full year FY24. Finally, the genesis and heart of our business lies with Zane Yoshida. Zane’s relentless dedication has been instrumental in elevating our prominence not only within the Fiji Islands but also in global spheres. His efforts are unceasing and his passion for natural health remedies is unwavering. It is my pleasure each day to work with a true gentleman. On behalf of the Board of Directors I am pleased to present to you the Annual Report for the year ended 30 June 2023. Dr Anthony Noble CEO 7 1 Company Overview Annual Report 2022/23 Our Business Model Evolution From a nucleus farm with 1 brand and 1 product to a growing international FMCG business with 4 brands and 6 product lines selling into 5 global markets. 2013 2020 South Pacific Elixirs Pte. Ltd established In Fiji Fiji Kava capsules ranged with Coles TakiMai RTD shots launched in Fiji and the USA (SoCal) WFM. Supply of kava ingredients to Blackmores brand Bioceuticals 2015 2021 TakiMai capsules listed on Australian Register for Therapeutic Goods (ARTG) Business exceeds >$1m Revenue 2018 Listed on ASX Dec 2018 Selling capsules in Australia and drinking kava and capsules in Fiji Raw materials sourced from Lomaiviti Province in Fiji 2019 Fiji Kava launches on Amazon USA Partners with Oborne Health for distribution in to health food stores Launches capsules in NZ with Green Cross Health First powdered drinking kava sales in Australia Network Nutrition Ingredients distributor announced 2022 Completion of Danodan Hempworks acquisition Network Nutrition (IMCD) distribution deal for kavaton Supply chain expanded to 8 collection hubs Processing facility relocated to Navua near Suva Coles ranges Fiji Kava powder nationally BSP Life invest FJ$2m via Convertible Notes 9 Annual Report 2022/23 Corporate Snapshot FY2023 Result Highlights $1.78m ($4.2m) Revenue FY23 Operating loss before adjustments ASX Overview CCO.ASX .005 ASX Ticker Code Share Price Aug23 881m $4.40m Shares on Issue Aug23 Market Capitalisations Trading Highlights 10 $2,500/day $2.76m Year end daily e-commerce Sales USA Annualised sales based on Q4 sales revenue $690k 46% 38% Gross operating margin HY Jun 23. Represents a 17% improvement on HY Dec22 Reduction in Net Cash Used by Operating Activities YoY Annual Report 2022/23 Performance Highlights $2.76 Annualised Sales based on Q4 Sales continue to improve driven by ecommerce sales in the USA. FY2023 Q4 sales of $690k show strong sales growth. US ecommerce Growth Fiji Kava is now the number 1 instant kava brand selling on Amazon.com. Daily turnover was $2,500 at year end and at the end of August 2023 it exceeded $3,000/day. CJ Patel Distribution Deal Targeting AUD11m over initial 3 year term with one of the Pacific regions most recognised distribution partners across a territory including 17 countries.. First sales orders valued at FJD $300k (AUD $210k) received. Rooflife ecommerce Targeting AUD15m over a 5 year term. Roolife has a track record of online success in China. First sales orders of AUD $150k received. Leilo Global Partnership The Calmer Co signed a deal to distribute Leilo ready to drink beverages in a number of global markets. Distribution will start with tourism and resort channels in Fiji. Coles Sales of 50g bags of powdered drinking kava grew strongly in 2023. 11 Annual Report 2022/23 Q4 Sales Growth Quarterly Revenues & Net Cash Outflows Used in Operations Commentary • 79% increase in sales revenue in Q4 (vs Q3, 2023) largely due to strong sales growth in ecommerce sales in the USA. • Fiji Kava is now the number 1 instant kava brand sold on Amazon.com. Daily sale $2,500 by year end 2023. • Daily sales exceeded $3,000/day on Amazon.com at the end of August. • Initial orders from CJ Patel ($210k) and Roolife ($150k) have been received and included in Q4 results. • Cost optimisation program saw net cash outflows used in operations fall to a low of $561k in Q4, which was a 20% reduction on the previous quarter. • The new processing hub in Navua can continue to scale manufacturing volumes up to 5X with little further capital expenditure. 12 Annual Report 2022/23 FijiKava is now the #1 instant kava brand sold on Amazon.com 13 Annual Report 2022/23 Brand Analysis The Calmer Co is a house of brands, growing and refining natural products in the low cost region of Fiji and exporting these products to a global market. Brand Snapshot PRODUCTS: Drinking kava, teas, capsules USP: High quality kava brand with blue chip retail partners Markets: USA, Australia, NZ, Fiji URL: fijikava.com FijiKava continues to exhibit strong performance, particularly within the dynamic landscape of US ecommerce channels, where sales have surged by 79% in Q4 compared to the previous quarter. Fiji Kava is now the number 1 instant kava brand sold on Amazon.com and turns over $3,000 daily at the end of August. Brand Snapshot PRODUCTS: Hemp & CBD oils USP: Best organic full spectrum organic CBD and water soluble organic hemp flower infusions Markets: USA URL: danodan.com Danodan has begun to rebuild from a slow 2022 and is tapping into new retail channels in Washington state, Hawaii, and their home market of Oregon. The introduction of a range of innovative topical products further underscores its strategic evolution. The liberalisation of CBD in Fiji is a big opportunity 14 for this division. Annual Report 2022/23 Brand Snapshot PRODUCTS: Drinking kava & flavoured shots USP: Traditional Fijian heritage brand from high quality kava cultivars with leading Fijian chains Markets: Fiji, Pacific Islands URL: takimai.com Taki Mai is a heritage brand and the expression is synonomous with kava in Fiji. The brand in the capable hands of the CJ Patel Group, has found a natural and prosperous niche in the Fiji Islands, the broader Pacific region, and most recently, in New Zealand. Our latest product release Taki Mai Low Key, a drinking kava and a flavoured ready to drink kava shot is now on shelves. With the expanisve distribution of CJ Patel, Taki Mai will be our flagship brand in the Pacific region. Brand Snapshot PRODUCTS: Ready to drink kava beverages USP: Great flavours, brand recognition, and strong youth market and tourism market adoption Markets: Fiji, Pacific Islands URL: leilo.com We have signed a terms sheet to become a global distribution partner with Leilo. Sales into resorts and higher margin tourism channels in Fiji have already commenced. It is our intention to replicate this distribution model in multiple new markets. 15 2 Director’s Report Annual Report 2022/23 Director’s Report The Directors present their report together with the summary of the financial information of The Calmer Co. International Limited and its Controlled Entities (the Group or Calmer Co.) for the financial year ended 30 June 2023 and the auditor’s report thereon. 1. Directors Mr James Dack Non-executive Chairman appointed 20 September 2022 Mr Zane Yoshida Executive Director appointed 20 December 2018 Mr Nicholas Simms Non-executive Director appointed 10 September 2019, resigned 28 Nov 2022 Mr Andrew Kelly Non-executive Chairman appointed 20 December 2018, resigned 15 March 2023 Mr Anthony Noble Managing Director appointed 20 December 2021 Mr James Tonkin Non-executive Director appointed 30 January 2023 Mr Griffon Emose Non-executive Director appointed 30 January 2023 For additional information of Directors including details of the qualifications of Directors please refer to paragraph 11 of this Directors’ Report. 17 Annual Report 2022/23 2. Information on other officers Company Secretary Mr Jay Stephenson held the position of Company Secretary for the financial year ended 30 June 2023. Please refer to paragraph 11. 3. Meetings of Directors During the financial year ending 30 June 2023, 13 meetings of Directors (including committees of Directors) were held. Attendances by each Director during the year are stated in the following table. COMMITTEE MEETINGS DIRECTORS’ MEETINGS Number Number eligible to Attended attend Dr Andrew Kelly 11 11 Zane Yoshida 13 13 Nicholas Simms 6 5 Dr Anthony Noble 13 13 James Dack 5 5 James Tonkin 4 4 Griffon Emose 4 4 DUE DILIGENCE COMMITTEE Number Number eligible to Attended attend REMUNERATION COMMITTEE Number Number eligible to Attended attend AUDIT COMMITTEE Number eligible to attend Number Attended At the date of this report, the Remuneration Committee, Audit Committee and Nomination Committee comprise the full Board of Directors. The Directors believe the Company is not currently of a size nor are its affairs of such complexity as to warrant the establishment of these separate committees. Accordingly, all matters capable of delegation to such committees are considered by the full Board of Directors. 4. Nature of Operations and Principal Activity The Calmer Co. International Limited (formerly Fiji Kava Limited), (The Calmer Co or The Company) is a health and wellness company with operations in Australia, Fiji, and the USA, which produces nutraceuticals and functional beverage products to reduce anxiety, promote relaxation, improve sleep, and support sports recovery and performance. The company works with farmers to source high quality kava and hemp that is processed into active extracts for B2B sales or into finished products across a house of brands. Our Taki Mai® and Fiji Kava® brands are focussed on expanding the distribution of kava throughout global markets to provide a natural alternative to alcohol and to small molecule sleep and anti-anxiety prescription medicines. 18 DIRECTOR’S REPORT Annual Report 2022/23 Noble kava extracts are backed by a significant body of peer reviewed clinical research into the safe and effective use of kava products, and thousands of years of traditional use in the Pacific Islands. Our Danodan® brand offers a unique patented range of USDA certified organic tinctures, and soon topicals, sold throughout the USA and online for relaxation, sleep and recovery. The Company’s products are Therapeutic Goods Administration (TGA), Food Standards Australia and New Zealand (FSANZ) and Food and Drug Administration (USA) compliant and are sold online and through retailers in Australia, Fiji, New Zealand, across the Pacific and in the United States. The Company is taking steps towards expansion into key Asian markets, including China. 19 Annual Report 2022/23 5. Review of Operations The Company has focussed on investing in building a supply chain that can support expansion into key markets; The Pacific, USA and Asia. We have sought and delivered high quality and well-aligned distribution partnerships for our ingredients, for our Fiji Kava® brand and for our Taki Mai® brand. With innovative new products in the pipeline, the operational milestones achieved in FY23 have set the stage for profitable growth in future years and removed key high-cost impediments to growth and achieving profitability. Modernisation of Supply chain The company has undertaken a comprehensive modernisation of our kava supply chain model which now spans across geographic regions and encompasses both community based and commercial farming operations. This allowed us to terminate the lease agreement by our wholly owned Fijian subsidiary South Pacific Elixirs Pte Ltd (SPE) for the Cawatara Estate and to close the manufacturing site in Levuka. Fijian kava processing operations are now in Viti Levu, the main island of Fiji and the company formalised a long-term partnership with KaiMing Agricultural Processing (KAP) as part of the move to new premises and expanded operational footprint in the 40,000ft2 Navua site. The Company has signed a Memorandum of Understanding (MOU) with KAP, which defines collaboration on the manufacture and production of drinking kava products as well as ginger, turmeric and kava juices, and in developing a framework to consolidate key business activities over time. KAP is a family-owned business that has been in operation since 2005, with its factory located on the bank of the 20 DIRECTOR’S REPORT Navua River near Fiji’s capital city, Suva. KAP employs over 100 people predominantly from the surrounding areas and prides itself on providing a modern employee focussed work environment. As part of the Company’s strategy to modernise a vertically integrated supply chain, we have entered an agreement for a commercial farming and collection hub with Fiji’s most successful agricultural program, the Tutu Rural Training Centre. Established by the Society of Mary on Taveuni in 1969, the Tutu Rural Training Centre traces its origins to a Sydney monastery that ran a Marist Brothers training course for Pacific islanders and aims to equip young men and women with the skills required to excel as self-employed farmers and craftspeople in Cakaudrove, Fiji, and is seen as the most successful training program in Fiji, if not the Pacific. The farming and collection hub is based on Taveuni Island in Cakaudrove Province. The Company has identified key locations for establishing further regional collection hubs, including Koro Island, Kadavu and Vanu Levu. The collaboration with Tutu is a tripartite project, Annual Report 2022/23 which forms part of a broader partnership with to expand its supply chain across Fiji and provide iTaukei Trust Fund Board (TTFB). iTaukei Trust traceability and transparency of its products to its Fund Board is an institution established under the customers. The Company is working with Traceable iTaukei Trust Fund Act, for the purposes of fostering Solutions in Fiji to complete the Supply Chain the advancement of the iTaukei (native Fijians) and Digitisation project in FY24. Rotumans by promoting initiatives that will better their standard of living and enhance appropriate cultural traditions and values. This collaboration Expansion of Network Nutrition Partnership strengthens the Company’s position in the Fijian The Company expanded our Strategic Partnership community and underpins a commitment to s with Network Nutrition, part of Dutch multinational upport Fijian farmers. IMCD, which was appointed as the exclusive sales agent for B2B sales of our proprietary water extract The establishment of these collections hubs, results in streamlined logistics for the transportation and processing of Noble Fijian Kava, thereby improving efficiency and reducing costs through economies of scale. The Company has now continued to increase its commercial farming network to include 12 key commercial farm supply agreements across Fiji. These now include commercial farming relationships in most provinces that grow kava in Fiji, which include Lomaiviti, Cakaudrove, Bua, Serua, Namosi, Kadavu, Ra and Naitasiri. In addition to this, the Company also continues to support supply relationships with subsistence farmers across the country and is currently working with the United Nations Capital Development Fund (UNCDF) and TTFB to establish rural collection and training centres in Nabouwalu, Bua and Koro island in the Lomaiviti group. The digitisation of the Calmer Co’s supply chain is an important differentiator as the Company continues of Noble Kava for the US ingredient market from October 2021. Our proprietary water extract of Noble Fijian kava is marketed under the brand KavatonTM by Network Nutrition. Strong sales performance in the USA saw all available KavatonTM Extract made available by Fiji Kava purchased over Q2 and Q3 of FY22 and saw the onboarding of major multinational nutraceutical clients. The exclusive marketing territories for KavatonTM extract were expanded this year to now include Canada, Australia, New Zealand and the ASEAN regions. The companies have continued to work together over the year on a number of R&D projects which have progressed significantly under IMCD’s stewardship, and several beverage specific new projects have been outlined for the coming years, that will support the local manufacturing of The Calmer Co and Leilo drinks in key markets in the future. A new Fine Particle grade water extract and bulk Drinking Kava were added to the distribution contract in FY23 based on customer demand. 21 Annual Report 2022/23 CJ Patel Distribution Partnership The Calmer Co.’s wholly owned Fijian subsidiary, South Pacific Elixirs Pte Ltd entered into an exclusive agreement with CJ Patel (Pacific) Pte Ltd (CJ Patel) as its authorised distributor in seventeen countries. The agreement set out targets minimum sales of A$11 million for over the initial three-year term of the agreement to maintain exclusivity. This represented an important step forward for professionalisation of the Company’s kava marketing to the local Fiji market. This partnership complements the existing dominant position held by our FijiKava® brand in the tourist and resort channels through partnerships with Jacks of Fiji, Tappoo’s and Motibhai. As the largest FMCG distribution company in the South Pacific, CJ Patel is ideally suited to deliver comprehensive distribution, sales and marketing support to the Taki Mai brand and is now the exclusive and authorised distributor for the Taki Mai® range of products across seventeen countries. The CJ Patel Group is a diverse group of organisations across a variety of industries, all with the common goal of delivering world-class products and services. With their head office in Fiji, CJ Patel controls the operations of over 20 different companies across 10 countries, using a variety of business ownership models from joint ventures to wholly owned subsidiaries. They are an adaptable group, capable of changing models to best suit the needs of the business sector, industry regulations and environment in which they are operating. international brands in Fiji, and most of the Pacific. The Company has its main warehouse in Wailekutu, Lami and sub-warehouses in Lautoka and Labasa ensuring comprehensive National Coverage. CJ Patel distributes its products to modern trade as well as utilising its extensive distribution network of retailers around Fiji. CJ Patel distributes renowned brands such as Sanitarium, Weet Bix, Panadol, Glaxo Smith Kline and household names such as Nescafe, Milo and Colgate throughout Fiji and around the South Pacific. Taki Mai® is the brand in our portfolio with the most history and was the original brand brought to market in Fiji and in the USA by Zane Yoshida and the SPE team in 2015. The products including drinking kava and dietary shots had great uptake both in the USA and in Fiji, including into Wholefoods Market. The Taki Mai® instant kava products in Fiji have been continuously sold since 2015, and the range has recently been expanded to include a Traditional Grind and a new Low Key® product. RooLife China Distribution Partnership RooLife was appointed as exclusive distributor of the Fiji Kava® range of capsules and drinking kava products in China in an important step back into the Asia market for the Company. The contract also extended to future new products including dietary shots and new RTD products that are developed for the China market though eCommerce. Initially, RooLife’s wholly owned subsidiary Choose Digital has taken over management of the Fiji Kava® product CJ Patel has the distribution rights for world renowned 22 DIRECTOR’S REPORT range online via www.fijikava.com in Australia as part Annual Report 2022/23 of preparation to enter the Chinese market to ensure services for its clients. RooLife provides personalised, price and positioning allignement. real-time, targeted marketing. With a key focus on driving sales in Australia and China the Company’s The size of the opportunity is reflected in the performance rights granted to RooLife which vest on Sales of $1m & $2m AUD by 30 June 2026, $5m & $10m AUD by 30 June 2027 and $15m AUD by 30 June 2028. Indeed, the execution on a China market entry strategy, supported by the appropriate restoration of global price architecture for the Fiji Kava® product range is a critical step to realising the potential of online e-Commerce marketplaces assist businesses to sell directly to Chinese consumers and accept payment via the WeChat and Alipay mobile payments platforms. RooLife’s key positioning is about knowing and remaining connected with Chinese consumers, allowing brands to effectively sell products to Chinese Consumers based on their profiles and purchasing behaviours. the Fiji Kava® brand globally. This approach will also ensure we have full alignment in marketing and positioning of our products in Australia and China to ensure success through cross-border eCommerce. RooLife has extensive experience in functional beverage sales and marketing in the China market, most recently achieving a retail trade launch for Australian brand Remedy Kombucha, after growing online sales since 2020. Targeting the sports medicine market in China will be central to the strategy, with RooLife to co-market the Fiji Kava powdered drinking kava range alongside their VORA protein range in the lucrative online sports nutrition channel in China. The size of the opportunity compared to the local markets is immense with sports nutrition in China valued at over $300m USD and dominated by eCommerce which accounts for more than 80% of sales. Global Distribution Partnership with Leilo Inc. The Calmer Co. has entered into an agreement with Leilo Inc. for the rights to manufacture, market and distribute Leilo branded beverages in several international markets. In China & India, The Company has the rights to manufacture, distribute and market Leilo beverages. Across the Asia Pacific the Company will distribute and market Leilo beverages in the resort and tourist channels