Millennium Sustainable Ventures Corp. (MILC)·Q2 2019 Earnings Summary

Executive Summary

• MILC’s Q2 2019 filing is an 8-K (Item 2.02) that furnishes SMC Global Securities Limited’s financial statements for the twelve months ended March 31, 2019; importantly, these statements are not MILC’s financials, as MILC’s principal asset is a minority equity stake in SMC .
• The company executed Right to Sell transactions, monetizing part of its SMC stake: on July 12, 2019, MILC sold 200,000 SMC shares for net proceeds of ~$299,057 ($1.495/share), reducing risk and providing liquidity .
• Subsequent filing shows further stake reduction: on December 10, 2019, MILC sold 300,000 SMC shares for ~$317,500 ($1.058/share), indicating a lower implied per-share price vs July and taking MILC’s holding down to 9,104,690 shares .
• No registrant-level revenue/EPS/margins or formal guidance were disclosed; earnings call transcripts and press releases were not found for Q2 2019, limiting estimate comparisons and typical earnings analysis .

What Went Well and What Went Wrong

What Went Well

• Liquidity generation via Right to Sell: MILC monetized 200,000 SMC shares for ~$299,057 at ~$1.495/share (July), evidencing an avenue to unlock value from its principal asset .
• Continued transparency on key asset: MILC furnished SMC’s audited/unaudited financial materials as exhibits (including an Independent Auditor’s Report) to maintain investor visibility into the underlying asset’s performance .
• Structural clarity for investors: Management reiterated that the SMC financials furnished are not MILC’s financials, helping set appropriate expectations on reported metrics and analysis scope .

What Went Wrong

• Limited financial disclosure at the registrant level: No MILC revenue/EPS/margins were provided, constraining comparison vs estimates and prior quarters typical in earnings recaps .
• Implied valuation pressure: The December sale price of ~$1.058 per SMC share was materially below the July price of ~$1.495/share, suggesting a lower implied valuation in H2 2019 for the stake .
• Visibility gaps: No earnings call transcript or Q2-specific press releases were found, limiting insights on operating drivers, guidance, and management tone .

Financial Results

Registrant-Level Results Summary

The Q2 2019 8-K furnishes SMC’s financials but clarifies they are not financial statements of MILC; registrant-level revenue, EPS, and margins were not disclosed .

SMC Stake Transactions (Liquidity Events)

Segment Breakdown and KPIs

No registrant operating segments or KPIs were disclosed; MILC primarily reports updates on its SMC minority stake and furnishes SMC’s financial statements .

Guidance Changes

No formal guidance (revenue, margins, OpEx, OI&E, tax rate, segment-specific) was provided in Q2 2019 filings. The 8-K focuses on furnishing SMC financials and describing Right to Sell transactions .

Earnings Call Themes & Trends

No earnings call transcript was filed for Q2 2019; the filings contain SMC financial exhibits and stock sale details, without thematic commentary typical of earnings calls .

Management Commentary

• “The unaudited consolidated financial statements of SMC Global Securities Limited (‘SMC’) for the twelve months ended March 31, 2019… are attached hereto as Exhibit 99.1. The SMC Financial Statements are not financial statements of the Registrant.”
• Right to Sell mechanics and execution: “MILC has entered into a Right to Sell Agreement… MILC completed the sale of 200,000 shares of SMC for net proceeds of approximately $299,057 which translates to approximately $1.495 per SMC share… After giving effect to the sales described herein, MILC holds 10,004,690 shares of SMC Global (‘SMC’).”
• Subsequent update: “MILC completed the sale of 300,000 shares of SMC for net proceeds of approximately $317,500 which translates to approximately $1.058 per SMC share… After giving effect to the sales described herein, MILC holds 9,104,690 shares of SMC Global (‘SMC’).”

Q&A Highlights

No Q&A was available as no earnings call transcript was filed for Q2 2019; the 8-K provides exhibits and transaction details without a call component .

Estimates Context

• Wall Street consensus (S&P Global) for MILC was unavailable; registrant-level revenue/EPS were not reported in the 8-K, and the furnished SMC statements are not MILC’s financials .
• As a result, direct comparisons vs consensus estimates cannot be made for Q2 2019 .

Prior Period Filing Context (for trend framing)

Key Takeaways for Investors

• MILC’s value narrative centers on its minority stake in SMC; filings furnish SMC’s financials but do not provide MILC’s revenue/EPS, constraining traditional earnings analysis .
• The Right to Sell mechanism provided near-term liquidity, with meaningful stake sales in July and December 2019; however, the lower per-share price in December vs July implies valuation pressure across H2 2019 .
• With no registrant guidance, no press releases, and no call transcript, investors should focus on transactional updates, stake size changes, and any future SMC listing progress to gauge value realization .
• Monitoring the promoter group’s compliance with Right to Sell obligations remains a risk factor explicitly noted by management .
• Near-term trading implications revolve around liquidity events (stake sales) and the implied per-share pricing trend of SMC; medium-term thesis hinges on SMC performance and potential listing outcomes to crystallize value .