Millennium Sustainable Ventures Corp. (MILC)·Q4 2018 Earnings Summary

Executive Summary

• Q4 2018 filing was an Item 2.02 8‑K that furnished SMC Global Securities Limited’s unaudited financial statements for the nine months ended December 31, 2018; the document explicitly states these are not MILC’s financial statements and provides no registrant-level P&L, EPS, or guidance .
• No registrant earnings press release or call transcript were present in filings; the 8‑K content is limited to attaching SMC financials as an exhibit with no additional commentary or outlook .
• Post-quarter, MILC accelerated monetization of its SMC stake via its Right to Sell, generating cash proceeds of ~$0.29M on Jan 24 (200k shares at ~$1.44), ~$0.29M on Feb 25 (200k at ~$1.44), and ~$1.34M on Mar 29 (900k at ~$1.486), reducing its SMC holdings to 10.205M shares by Mar 29, 2019 .
• Prior quarters similarly furnished SMC financials (3 months ended June 30, 2018, and 6 months ended September 30, 2018), reinforcing that investor analysis hinges on SMC performance and MILC’s monetization activity rather than MILC stand‑alone operating results .

What Went Well and What Went Wrong

• What Went Well

  • Liquidity actions: MILC utilized its Right to Sell to convert portions of its SMC position to cash at ~$1.44–$1.486 per share, raising ~$1.91M across three transactions in 1Q19 and derisking the balance sheet exposure to SMC .
  • Visibility to underlying asset: The 8‑K furnished SMC’s unaudited financial statements for the nine months ended Dec 31, 2018, giving investors transparency into the key asset driving MILC’s value .
  • Ongoing reporting cadence: Prior 8‑Ks furnished SMC’s interim statements for 3 months ended June 30, 2018 and 6 months ended Sept 30, 2018, supporting trend monitoring of SMC through 2018 .

• What Went Wrong

  • No registrant-level financials or KPIs: The Q4 2018 8‑K provided no MILC revenue/EPS/margin figures and explicitly clarified the attached financials are not those of the registrant, limiting direct performance assessment .
  • No guidance: The filing included no outlook for the registrant (or SMC) and no forward‑looking metrics, constraining expectations setting into 2019 .
  • Counterparty risk: The Right to Sell disclosure reiterates “there can be no assurance the ‘promoter group’ will comply” with obligations—an ongoing risk to MILC’s monetization pathway .

Financial Results

Note: The Q4 2018 Item 2.02 8‑K furnishes SMC Global Securities Limited’s unaudited financials for the nine months ended Dec 31, 2018 and states these are not MILC’s financial statements; no registrant-level P&L/EPS/margins were provided . Prior 8‑Ks furnished SMC financials for the three months ended Jun 30, 2018 and the six months ended Sep 30, 2018 .

KPIs and Subsequent Events: SMC Share Monetization (post-quarter)

Segment breakdown: Not applicable; the filing does not provide registrant segment financials .

Guidance Changes

Earnings Call Themes & Trends

Note: No qualitative management discussion or outlook was included in the Item 2.02 filing; prior quarter 8‑Ks likewise furnished SMC exhibits without registrant commentary .

Management Commentary

• “The unaudited consolidated financial statements of SMC Global Securities Limited (‘SMC’) for the nine months ended December 31, 2018…are attached… The SMC Financial Statements are not financial statements of the Registrant. The Registrant’s relevant asset is its ownership of a minority equity interest in SMC.”
• “MILC…has entered into a Right to Sell Agreement…pursuant to which MILC will have a right to sell 100,000 shares of SMC back to the ‘promoter group’… There can be no assurance the ‘promoter group’ will comply with their obligations related to the Right to Sell Agreement.”
• Monetization updates: “On January 24, 2019 MIAC completed the sale of 200,000 shares of SMCG for net proceeds of approximately $287,600…” ; “On February 25, 2019 MILC completed the sale of 200,000 shares…for net proceeds of approximately $288,442…” ; “On March 29, 2019 MILC completed the sale of 900,000 shares…for net proceeds of approximately $1,337,338…” .

Q&A Highlights

• Not applicable; the Q4 2018 Item 2.02 filing did not include prepared remarks or a Q&A section and no registrant earnings call transcript was included among filings for the period .

Estimates Context

• Wall Street consensus (S&P Global) for MILC’s Q4 2018 revenue/EPS was unavailable for this ticker during the period; as such, no estimate comparisons can be provided.
• The Q4 2018 filing did not furnish registrant-level metrics, further limiting comparability to consensus .

Key Takeaways for Investors

• MILC’s Q4 2018 disclosure is structurally different from typical issuers: it furnishes SMC’s interim financials and offers no registrant P&L, EPS, margins, or guidance, so analysis hinges on changes in the SMC stake and monetization cadence .
• The Right to Sell mechanism is being actively used post‑quarter, delivering ~$1.9M in cash proceeds at ~$1.44–$1.486 per share and reducing SMC exposure—an important liquidity and risk‑management lever .
• Counterparty performance matters: the Right to Sell carries an explicit “no assurance” clause on promoter group compliance, representing execution risk for future monetizations .
• With no registrant guidance or KPIs provided, near‑term trading likely keys off additional SMC sale updates and any valuation read‑through from SMC’s corporate actions (e.g., listing plans referenced historically in the Right to Sell) .
• For trend work, investors should reference the furnished SMC interim financials (3M ended Jun 30, 2018; 6M ended Sep 30, 2018; 9M ended Dec 31, 2018) and monitor subsequent 8‑Ks for additional exhibits and sale activity .
• Absent consensus estimates and registrant-level results, position sizing should reflect the binary nature of counterparty execution and the timing/price realization under the Right to Sell program .

Notes:

• No registrant earnings call transcript or earnings press release beyond the Item 2.02 exhibit was present in filings for the period; the 8‑K provides only SMC financial statements and standard exhibit listings .