Endexx systems will change the industry by allowing vendors to expand their distribution footprint without the need to build more stores: Todd Davis
Strong recommendations for consumption of nutraceuticals from plant origin have become progressively popular to improve health, and to prevent and treat diseases.
Endexx Corporation focuses on plant-based nutraceuticals and emerging technologies. It operates through two divisions, CBD Unlimited and M3Hub: Autospense™.
The CBD Unlimited division focuses on the research, formulation, and distribution of medicinal grade, certified industrial hemp extracts for the nutraceutical industry. It has developed and deployed various human and pet supplements that include capsules, essential oil tinctures, isolates, vape formulas, energy shots, oral sprays, topical mists, balms and gel rub, teas and coffees, pet treats, and cosmeceuticals. This division primarily sells Phyto-Bites, a cannabidiol (CBD) – infused soft chews for dogs formulated to promote health and support the reduction of separation anxiety, pain, and inflammation.
The M3Hub: Autospense™ division offers Autospense™, an industrial grade, high-tech, highly secure automated dispensing and inventory control system designed and developed to service the needs of pharmacies, retailers and medical marijuana dispensaries and customized to meet regulatory compliance requirements in various legal states where high risk-high shrink products are sold. Autospense™ increases productivity and reduces costs for retailers, while enhancing service quality by reducing transaction time for customers.
Endexx Corporation was incorporated in 2005 and is based in Cave Creek, Arizona.
Todd Davis, Endexx Corporation CEO, spoke exclusively to The Silicon Review. Below is an excerpt.
What is the current market scenario? And what is your company’s position in the market?
Both the legal cannabis industry and the retail pharmacy require the same protection of assets and accountability. By our analysis, there is a market need for over 100 thousand systems in the cannabis market and growing. For the pharmacy industry there is need for 100-500 thousand units. Each unit generates 2500-2800/month of service income for Endexx. They also generate 5000-50000 sales per month for the Retailer.
We identified the challenges in a two-year beta test in California in a Santa Ana dispensary. We found that over 50 percent of returning clients chose to use Autospense™ to purchase product because of the convenience and time savings. And over 50 percent of those sales were before and after business hours. The challenge is that automated vending of cannabis is illegal in every state and under US federal law.
Briefly explain your products and services.
Endexx has combined all systems into Autospense™. The system now controls shrink and theft at the retail level. It also provides an automated tool that can facilitate the sale of regulated products (i.e pseudoephedrine). The system can allow repeat prescriptions to be picked up help expedite the process for the customer to get in and out with no lines and no specific pick up time.
We tested the system in a very harsh environment (Marijuana dispensaries) which created the perfect solution for pharmacies. Pharmacies nationwide, especially big-box retailers have experienced significant surges in the theft. There is between 4.5-11 percent theft in every store in America. In big cities, the average theft or shrink rate is between 7-11 percent. By reducing that shrink by 2 percent per 1000 stores, big-box retailers can recover $ 20million back to the profits. Prevention is the best solution; Endexx provides that solution.
What kind of responses have you received from your consumers over the years? How have they motivated you to shape your offerings/grow the company?
We are pleased that Autospense™ has been performing exceptionally well and we will continue to surprise our consumers. They yearn for Autospense™ because it is intuitive; takes one to three minutes to buy a product, and can be used before and after work for real convenience. Stores need it too because they can secure their high theft items, get paid, and keep customers satisfied with loyalty for a quality experience.
What are the factors that make your company stand out from the competition?
Endexx systems will change the industry by allowing vendors to expand their distribution footprint without the need to build more stores. The units can be placed in pharmacies, hospitals, outpatient facilities, in front of the store or in specific departments. The machine becomes the reliable employee. Never sick, never late, and can work 24/7 without a break.
Do you have any new products ready to be/getting ready to be rolled out into the market?
The newly updated Autospense™ is prepared for nationwide deployment. In addition, a couple of key pilot programs are ready to initiate.
Where do you see your company a couple of years from now?
We look to deploy 1000-2000 machines in the next two years and from third to the fifth year, we will be targeting 30-50 thousand international and domestic units.
Todd Davis: A Brief Background
Todd Davis is the Chief Executive Officer of Endexx Corporation. His specialties range from biotech, pharmacy tech, nutraceuticals, energy to agriculture.
Mr. Davis earned a bachelor’s degree in management from Northern Arizona University in 1989.