Applied UV Inc (AUVI) 2023 Q2 法說會逐字稿

Good day. I would like to welcome everyone to the Q2 2023 Applied UV earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, John McNamara, Investor Relations for TraDigital IR. Thank you. You may begin.

再會。我歡迎大家參加 2023 年第二季 Applied UV 收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，TraDigital IR 投資者關係部的約翰·麥克納馬拉 (John McNamara)。謝謝。你可以開始了。

Thank you. Good morning, everyone. And once again, welcome to Applied UV's Q2 2023 earnings call. With me on the call this morning today are Max Munn, Founder, CEO, President, and Director; and Mike Riccio, Chief Financial Officer. As a reminder, all materials for today's presentation are available on the company's Investor Relations website at applieduvinc.com.

謝謝。大家，早安。再次歡迎參加 Applied UV 2023 年第二季財報電話會議。今天早上與我一起參加電話會議的有創辦人、執行長、總裁兼董事 Max Munn；和財務長邁克·里奇奧(Mike Riccio)。謹此提醒，今天示範的所有資料均可在公司投資者關係網站 Applieduvinc.com 上取得。

Before we begin, as usual, please take a moment to read the forward-looking statements in our earnings press release. During today's call, we will make certain predictive statements that reflect our current views about future performance and financial results. We base these statements on certain assumptions and expectations on the future events that are subject to risks and uncertainties.

在我們開始之前，像往常一樣，請花點時間閱讀我們的收益新聞稿中的前瞻性陳述。在今天的電話會議中，我們將做出某些預測性陳述，以反映我們目前對未來業績和財務表現的看法。我們的這些陳述是基於對未來事件的某些假設和預期，這些假設和預期存在風險和不確定性。

In our most recent Form 10-K, you'll find some of the most important risk factors that could cause actual results to differ from our predictions. With that, I'll turn the call over to Max Munn. Go ahead, Max.

在我們最新的 10-K 表中，您會發現一些最重要的風險因素，這些因素可能導致實際結果與我們的預測不同。說完，我會把電話轉給馬克斯·穆恩。繼續吧，麥克斯。

Thanks, John. Good morning, everyone, and thanks for joining us today. In addition to reviewing the highlights from the second quarter of 2023, we'll spend some time discussing our strategic road map, the progress we are achieving across multiple business lines, and the outlook for the second half.

謝謝，約翰。大家早安，感謝您今天加入我們。除了回顧 2023 年第二季的亮點之外，我們還將花一些時間討論我們的策略路線圖、我們在多個業務線的進展以及下半年的前景。

I'm pleased to report another strong execution quarter for our business, posting second quarter revenue of $10.8 million, up 83.6% from the comparable period of 2020. Our hospitality segment grew 23.5%, and our disinfection and healthy building technologies segment grew 227.6%. We continue to benefit from strong underlying trends in our healthy building technologies segment and from our hospitality sector.

我很高興地報告我們的業務又一個強勁的季度執行力，第二季度收入為1,080 萬美元，比2020 年同期增長83.6%。我們的酒店業務部門增長了23.5%，消毒和健康建築技術部門增長了227.6% 。我們繼續受益於健康建築技術領域和酒店業的強勁潛在趨勢。

Moving on to our backlog. We're pleased to report a record backlog of approximately $20 million as of today, an increase of 279% year over year. Increase in our hospitality segment is particularly noteworthy, representing over 59% of our total current backlog. It's a testament to the remarkable work of our employees and an indication of the momentum in our business as we look to the remainder of 2023 and into 2024.

繼續我們的積壓工作。我們很高興地報告，截至今天，積壓訂單已達到創紀錄的約 2000 萬美元，年增 279%。我們飯店業務的成長尤其值得注意，占我們目前積壓總量的 59% 以上。這證明了我們員工的出色工作，也顯示了我們展望 2023 年剩餘時間和 2024 年的業務動能。

Beneath the topline results, we're very focused on our path to profitability and positive cash flow from operations by improving our gross margins, optimizing our operations, and carefully managing our expenses while making the necessary investments to ensure we deliver on our commitments to our customers and shareholders. We are focused today on three key factors to get us where we need to be next year: scale, gross margin expansion, and the management of operating expenses.

在營收績效的背後，我們非常注重透過提高毛利率、優化營運、謹慎管理開支，同時進行必要的投資來確保我們兌現對營運的承諾，從而實現盈利和實現正現金流。客戶和股東。今天，我們專注於三個關鍵因素，以實現明年的目標：規模、毛利率擴張和營運費用管理。

We believe growth in both of the operating segments that we're in, we'll play a leading role in transitioning to a positive and profitable cash flow company. As such, scaling any business is challenging, but growth is critical, and we've begun to establish our brands and build a business that we believe is well positioned in the enormous markets we operate in today.

我們相信，我們所處的兩個營運部門的成長將在向積極且獲利的現金流公司轉型的過程中發揮主導作用。因此，擴展任何業務都是具有挑戰性的，但成長至關重要，我們已經開始建立我們的品牌並建立我們相信在我們當今運營的巨大市場中處於有利地位的業務。

Let's start by reviewing our hospitality segment, specifically MunnWorks, a manufacturer of mirrors and furnishings, specifically for the hospitality and multifamily industries. Our hospitality division is experiencing unprecedented growth with leading hotel brand and property developers underscoring the success of our strategic expansion in manufacturing capacity and our ability to meet the evolving needs of the hospitality and leisure industry.

讓我們先回顧一下我們的酒店部門，特別是 MunnWorks，一家鏡子和家具製造商，專門為酒店和多戶家庭行業提供服務。我們的酒店部門正在與領先的酒店品牌和房地產開發商一起經歷前所未有的增長，這突顯了我們在製造能力方面戰略擴張的成功以及我們滿足酒店和休閒行業不斷變化的需求的能力。

The combination of hospitality case goods with electrified and lighted mirrors has proven to be a winning formula leading to increased revenue for customer. This integration of product lines has allowed Applied UV to offer comprehensive solutions to its hospitality clients, enhancing customer satisfaction and driving revenue growth. This segment has continued its pre-pandemic growth fueled by the post-pandemic travel surge, combined with increasing demand from the industry to source products manufactured in the US.

事實證明，接待箱商品與電動照明鏡子的結合是增加客戶收入的成功秘訣。產品線的整合使 Applied UV 能夠為其酒店客戶提供全面的解決方案，提高客戶滿意度並推動收入成長。在大流行後旅行激增的推動下，加上該行業對美國製造的產品的需求不斷增加，該細分市場繼續保持大流行前的成長。

There are a number of factors driving this trend, which we believe is largely driven by hospitality buyers seeking to avoid the stiff tariffs and duties on products now manufactured in China and to reduce the significant risk of supply chain disruption, allowing our furnishings to arrive faster with less quality risk. Although furnishings constitute on average only 15% of the cost of building a hotel, you can't open a hotel without the furniture.

推動這一趨勢的因素有很多，我們認為這主要是由酒店買家推動的，他們尋求避免對目前在中國製造的產品徵收嚴格的關稅和關稅，並降低供應鏈中斷的重大風險，從而使我們的家具更快到達品質風險較小。儘管家具平均只佔建造飯店成本的15%，但沒有家具就無法開設飯店。

A good example of the success we experienced in this segment was our announcement recently of having received over $2 million in cash deposits on a significant $4 million order from hotel and multifamily developers for interior furnishings. These new orders contributed to our growth in backlog which, as I've said currently is approximately $20 million. Before I turn the call over to Brian Stern, President of PURO Lighting to discuss our intelligent buildings technologies segment, I'll close by reiterating our expectation of total revenues for this calendar year of approximately $45 million.

我們在這一領域取得成功的一個很好的例子是，我們最近宣布從酒店和多戶住宅開發商的室內家具訂單中收到了超過 200 萬美元的現金定金，訂單金額為 400 萬美元。這些新訂單促進了我們積壓訂單的成長，正如我所說，目前積壓訂單約為 2000 萬美元。在我將電話轉給 PURO Lighting 總裁 Brian Stern 討論我們的智慧建築技術領域之前，我將重申我們對本日曆年總收入約 4500 萬美元的預期。

We've had a solid start to the first half of the year, acquiring two new businesses, and we anticipate further positive developments as we fully integrate PURO's technology into our Airocide platform. A broad range of FDA-cleared premium air purification products, software solutions, and IoT capabilities puts us in the enviable position of being able to deliver best-in-class solutions that meet the evolving needs of our customers.

今年上半年我們取得了良好的開局，收購了兩項新業務，隨著我們將 PURO 的技術完全整合到我們的 Airocide 平台中，我們預計會取得進一步的積極發展。一系列經 FDA 批准的優質空氣清淨產品、軟體解決方案和物聯網功能使我們處於令人羨慕的地位，能夠提供一流的解決方案，滿足客戶不斷變化的需求。

We have recently realized cost and operational and sales synergies from the acquisitions of PURO and LED Supply and have identified additional synergies to be implemented. And we will continue to evaluate course as we drive toward being cash flow positive. Let me add that in line with our commitment to efficiency and profitability, we've been aggressive with cost reduction activities, including the reduction of the number of employees by over 10% and the payroll expense reduction was even greater, allowing us to significantly improve our operating margins and position Applied UV for trajectory toward cash flow positive results.

我們最近透過收購 PURO 和 LED Supply 實現了成本、營運和銷售協同效應，並確定了需要實施的其他協同效應。當我們努力實現正現金流時，我們將繼續評估路線。我要補充的是，根據我們對效率和盈利能力的承諾，我們一直在積極開展成本削減活動，包括員工數量減少了 10% 以上，工資費用削減幅度更大，使我們能夠顯著改善我們的營業利潤率和定位應用紫外線以實現現金流積極結果的軌跡。

I would like to note that our financials for Q4 2022, six months ago, and Q1 of 2023 incorporated one-time costs that are essential for all of us to understand. These were primarily related to the rapid drop-off of COVID related sales as the pandemic quickly receded. This resulted in significant and required write-downs of certain non-cash acquisition costs as well as onetime cost to pivot from our COVID-related business concentration, all of which is now behind us.

我想指出的是，六個月前的 2022 年第四季和 2023 年第一季的財務數據包含了我們所有人都必須理解的一次性成本。這主要與隨著疫情迅速消退而與新冠病毒相關的銷售額迅速下降有關。這導致我們對某些非現金收購成本以及從新冠相關業務集中轉移的一次性成本進行了大量必要的減記，所有這些現在都已成為過去。

Despite these transient expenses, we remain confident in our strategic direction, and we firmly believe that these proactive measures will enhance our market standing and will drive sustainable growth in the near term. So now I'll ask Brian Stern, President of PURO to jump on.

儘管有這些短暫的開支，我們對我們的策略方向仍然充滿信心，我們堅信這些積極措施將提高我們的市場地位，並在短期內推動永續成長。現在我請 PURO 總裁 Brian Stern 加入。

Thank you, Max, and good morning, everyone. I'm going to spend some time discussing the intelligent building technologies segment of our business, which designs, manufactures, and distributes disinfection, food preservation, and lighting systems for use in food storage, healthcare, hospitality, education, multifamily, and public spaces as well as cannabis correctional facilities, commercial, municipal, and residential markets.

謝謝你，麥克斯，大家早安。我將花一些時間討論我們業務的智慧建築技術部分，該部分設計、製造和分銷用於食品儲存、醫療保健、酒店、教育、多家庭和公共場所的消毒、食品保存和照明系統以及大麻懲戒設施、商業、市政和住宅市場。

Our intelligent building technologies segment reported revenue of $5.7 million for the quarter, largely attributed to the acquisition of PURO and LED Supply. The global air purification market is expected to double to $30 billion by 2030. Several factors are driving this growth and include increasing media attention on the importance of air quality, growing consumer awareness of health implications from poor air quality, and the rising level of pollution, airborne diseases, and natural catastrophes.

我們的智慧建築技術部門報告本季營收為 570 萬美元，主要歸功於收購 PURO 和 LED Supply。到2030 年，全球空氣清淨市場預計將翻一番，達到300 億美元。推動這一增長的因素有很多，包括媒體對空氣品質重要性的日益關注、消費者對不良空氣品質對健康影響的認識不斷增強以及污染程度不斷上升、空氣傳播疾病和自然災害。

We firmly believe we are on the precipice of an indoor air quality revolution as poorer quality more frequently impacts the lives of the overall population, whether as a result of industrial air pollution, the burning of coal or wildfires. Additionally, our air sterilization technologies address the monumental problem of food preservation through the oxidation of ethylene while also destroying viruses and pathogens.

我們堅信，我們正處於室內空氣品質革命的邊緣，因為無論是工業空氣污染、煤炭燃燒或野火，較差的品質更頻繁地影響全體人口的生活。此外，我們的空氣滅菌技術透過乙烯氧化解決了食品保存的重大問題，同時也消滅了病毒和病原體。

We've seen efforts from organizations such as the [TGC and ASHRAE] to further improve public health by establishing formal recommendations and standards for indoor air quality or IAQ. We agree with these organizations as our understanding of the detrimental health effects associated with core IAQ grows, and we believe this is a significant step towards safeguarding the well-being of the public and at the same time where AUVI will continue to address those needs with their proprietary technology.

我們看到 [TGC 和 ASHRAE] 等組織透過制定室內空氣品質或 IAQ 的正式建議和標準來進一步改善公共衛生。我們同意這些組織的觀點，因為我們對與核心 IAQ 相關的有害健康影響的了解不斷加深，我們相信這是維護公眾福祉的重要一步，同時 AUVI 將繼續滿足這些需求他們的專有技術。

We have accelerated our product offering, and we are now in a position to showcase our full range of products and services that enhance safety across various sectors, including food preservation, hospitality, consumer education, and healthcare. Through our commitment to research and innovation, we've developed innovative technologies and rigorous quality standards to ensure that customers can rely on our products for exceptional protection.

我們加快了產品供應速度，現在能夠展示我們全系列的產品和服務，這些產品和服務可提高食品保鮮、飯店、消費者教育和醫療保健等各個領域的安全性。透過我們對研究和創新的承諾，我們開發了創新技術和嚴格的品質標準，以確保客戶可以信賴我們的產品提供卓越的保護。

We have an FDA cleared through the medical-grade air sanitization technologies that utilize patented and proprietary technology to continuously sanitize the air and destroyed 99.9% of airborne viruses, bacteria, allergens, and fungi. We're also advancing our IoT sensor and IAQ monitoring and device control technologies to accelerate our opportunities to generate recurring revenue. We believe our broad range of trusted and FDA-cleared products will further solidify our position as a leading force in the industry.

我們擁有透過 FDA 批准的醫療級空氣消毒技術，利用專利和專有技術持續消毒空氣，消滅空氣中 99.9% 的病毒、細菌、過敏原和真菌。我們也正在推動我們的物聯網感測器、室內空氣品質監測和設備控制技術，以加速我們創造經常性收入的機會。我們相信，我們廣泛的值得信賴且經 FDA 批准的產品將進一步鞏固我們作為行業領先力量的地位。

Let's focus on one particular market segments where we are aiming to expand our market share over the next several years. Both industry and academic reports have recently addressed the impact of food spoilage on the world economy, totaling over $400 billion a year in spoiled fruits and vegetables. This equates to roughly 31% of product in the supply chain. Because we are leaders in photo-catalytic oxidation, we will continue to leverage our position in post-harvest food security. Our Airocide line has already proven effective with global companies such as Del Monte, Dole, and Whole Foods in significantly reducing spoilage, improving yields, and protecting high-value foods.

讓我們專注於一個特定的細分市場，我們的目標是在未來幾年擴大我們的市場份額。產業和學術報告最近都討論了食品腐敗對世界經濟的影響，每年腐敗的水果和蔬菜造成的損失總計超過 4000 億美元。這相當於供應鏈中約 31% 的產品。由於我們是光催化氧化領域的領導者，因此我們將繼續利用我們在收穫後糧食安全方面的地位。我們的 Airocide 系列已被 Del Monte、Dole 和 Whole Foods 等跨國公司證明在顯著減少腐敗、提高產量和保護高價值食品方面有效。

The recently established ethylene oxide abatement requirements by the EPA have created an opportunity for significant growth utilizing our Airocide technology, which has the capability to effectively remove ethylene oxide. This opens up an entirely new industry application for our proprietary Airocide technology. Industries that use or produce ethylene oxide, such as sterilization processes in healthcare, pharmaceuticals, and agriculture can now benefit from our innovative ethylene oxide destruction technology. This not only broadens our reach, but also positions us as a solutions provider for industries facing new stringent environmental regulations.

EPA 最近制定的環氧乙烷減量要求為我們的 Airocide 技術的顯著增長創造了機會，該技術能夠有效去除環氧乙烷。這為我們專有的 Airocide 技術開啟了全新的產業應用。使用或生產環氧乙烷的產業，例如醫療保健、製藥和農業中的滅菌過程，現在可以從我們創新的環氧乙烷銷毀技術中受益。這不僅擴大了我們的業務範圍，而且使我們成為面臨新的嚴格環境法規的行業的解決方案提供者。

With the help and partnership with Canon Virginia, a unit of Canon Japan, we will be introducing a photocatalytic oxidation based air purification system that removes ethylene gas. We expect that these systems will be incorporated into shipping containers, long-haul refrigerated trucks, and distribution centers, thereby significantly increasing the shelf life of produce. We will be launching this new generation of our Airocide line October of this year.

在與佳能日本子公司佳能維吉尼亞公司的幫助和合作下，我們將推出基於光催化氧化的空氣淨化系統，可去除乙烯氣體。我們預計這些系統將被納入貨櫃、長途冷藏車和配送中心，從而顯著延長產品的保質期。我們將於今年 10 月推出新一代 Airocide 系列。

Our primary focus will be centered on food security and storage applications and post-harvest facilities. These technologies can be used along the entire supply chain from horticultural applications to processing to distribution and logistics, improving the yield on high-value things candidates in one. With our global distribution, which now includes 90 dealers and distributors in 52 countries, including Southeast Asia with manufacturers reps and US-based sales reps along with numerous strategic partnerships firmly in place, we've created a competitive advantage with the relationships with Canon, Acuity Brands, Johnson Controls, Ushio, Siemens and Grainger to name just a few.

我們的主要重點將集中在糧食安全和儲存應用以及收穫後設施。這些技術可用於從園藝應用到加工、分銷和物流的整個供應鏈，從而提高高價值產品的產量。我們的全球分銷網絡目前包括52 個國家/地區的90 個經銷商和分銷商，其中包括東南亞的製造商代表和美國銷售代表，以及眾多牢固的戰略合作夥伴關係，我們透過與佳能的關係創造了競爭優勢， Acuity Brands、Johnson Controls、Ushio、Siemens 和 Grainger 等僅舉幾例。

Our transfer of manufacturing to Canon Virginia, a wholly owned subsidiary of Canon USA is progressing on schedule. We believe this will yield a significant reduction in our fixed G&A expense into a variable G&A expense and believe this partnership will translate into production and logistics cost savings by removing manufacturing execution risk and allowing the company more effectively to scale and focus solely on marketing and sales.

我們將製造轉移到佳能美國公司的全資子公司佳能弗吉尼亞州的工作正在按計劃進行。我們相信，這將使我們的固定管理費用大幅減少為可變管理費用，並相信這種合作夥伴關係將透過消除製造執行風險並允許公司更有效地擴大規模並專注於行銷和銷售，從而轉化為生產和物流成本節約。

There are a few notable achievements subsequent to the end of Q2 that I believe illustrate our success and support our strategy for continued growth across all our business lines. PURO and its partner Academy Energy Group were selected as finalists for the GSA's Green Proving Ground program. Together, we plan to demonstrate the benefits of using next-generation LEDs and far-UVC light to disinfect air without the need to increase ventilation. The GPG program will evaluate technologies that support healthier buildings while reducing energy use and improving IAQ.

在第二季末之後出現了一些值得注意的成就，我相信這些成就說明了我們的成功，並支持我們所有業務線持續成長的策略。 PURO 及其合作夥伴 Academy Energy Group 被選為 GSA 綠色試驗場計劃的決賽入圍者。我們計劃共同展示使用下一代 LED 和遠紫外線光來消毒空氣而無需增加通風的好處。 GPG 計劃將評估支持健康建築、同時減少能源使用和改善 IAQ 的技術。

In early August, we announced that our Sterilumen subsidiary received its first purchase order for disinfecting mirrors. This order is from renowned Mount Sinai Hospital in New York and represents the successful culmination of three years of research, investment, and intellectual property development by Applied UV.

八月初，我們宣布我們的 Sterilumen 子公司收到了第一份消毒鏡採購訂單。該訂單來自紐約著名的西奈山醫院，代表了 Applied UV 三年研究、投資和智慧財產權開發的成功成果。

These groundbreaking disinfecting mirrors have been rigorously tested and shown to be effective against Candida auris, a rapidly spreading fungal pathogen, a crucial achievement in light of increasing global concerns over resistant pathogens. Sinks and drains are one of the most dangerous areas where infection, bacteria, mold, and pathogens accumulate. Manual, standard cleaning methods are ineffective as a disinfectant.

這些開創性的消毒鏡經過嚴格測試，證明可以有效對抗耳念珠菌（一種快速傳播的真菌病原體），鑑於全球對抗藥性病原體日益關注，這是一項至關重要的成就。水槽和排水溝是感染、細菌、黴菌和病原體積聚的最危險區域之一。手動、標準清潔方法作為消毒劑是無效的。

Additionally, our laboratory validated Lumicide patented UVC technology is the only solution that continuously and thoroughly eliminates bacteria in and around hygiene sinks in hospitals, healthcare, and heavily trafficked public areas. This is a significant milestone for our healthy building technologies division, and we hope to be able to share more in the coming quarters. I will turn the call over to Mike Riccio for a further review of our financial results. Mike?

此外，經過我們實驗室驗證的 Lumicide 專利 UVC 技術是唯一能夠持續徹底消除醫院、醫療保健和人流密集的公共區域衛生水槽內和周圍細菌的解決方案。這是我們健康建築技術部門的一個重要里程碑，我們希望能夠在未來幾季分享更多。我會將電話轉給 Mike Riccio，以進一步審查我們的財務表現。麥克風？

Thanks, Brian. Net sales of $10.8 million represented an increase of $4.9 million or 83.6% for Q2 2023 as compared to net sales of $5.9 million for Q2 2022. This increase was primarily attributable to the disinfection healthy building technologies segment, primarily due to the acquisition of PURO Lighting and LED Supply Co. on January 26, 2023, which added approximately $4.0 million in revenue to AUVI. Additionally, the hospitality segment increased $0.9 million as that market continues to steadily improve.

謝謝，布萊恩。 2023 年第二季的淨銷售額為1,080 萬美元，與2022 年第二季的淨銷售額590 萬美元相比，增加了490 萬美元，即83.6%。這一增長主要歸因於消毒健康建築技術部門，而這主要是由於收購了PURO Lighting 2023 年 1 月 26 日，該公司收購了 LED Supply Co.，這為 AUVI 增加了約 400 萬美元的收入。此外，隨著市場持續穩定改善，酒店業成長了 90 萬美元。

Gross profit increased $1.1 million from $1.3 million or 22.1% versus sales for Q2 2022 to $2.4 million or 22.2% versus sales for Q2 2023. The increase in percent from 22.1% to 22.2% was driven primarily by the improved margins in the hospitality segment as compared to the same period last year. And by the increase in sales mix of the higher margin, disinfection/healthy building technologies segment. For Q2 2023, the disinfection/healthy building technologies segment accounted for 52.5% of total sales as compared to 29.4% in the prior year quarter.

毛利從2022 年第二季的130 萬美元增加了110 萬美元，與2023 年第二季的銷售額相比增加了22.1% 至240 萬美元，與2023 年第二季的銷售額相比增加了22.2%。百分比從22.1% 增加到22.2% 主要是由於酒店業務利潤率的提高，與去年同期相比。利潤率較高的消毒/健康建築技術領域的銷售組合增加。 2023 年第二季度，消毒/健康建築技術領域佔總銷售額的 52.5%，去年同期為 29.4%。

Our SG&A expenses for Q2 2023 were $4.9 million as compared to $4.0 million for Q2 2022. This increase of $0.9 million was driven primarily by the expansion of the disinfection/healthy building technologies segment with the acquisitions of PURO Lighting and LED Supply Co. These acquisitions accounted for approximately $1.7 million of the increase but were offset by reduction of other SG&A expenses of approximately $0.7 million and also by a reduction in our corporate expenses.

我們2023 年第二季的銷售、一般行政費用為490 萬美元，而2022 年第二季為400 萬美元。這一增長主要是由於收購了PURO Lighting 和LED Supply Co，消毒/健康建築技術部門的擴張所致。這些收購增加額中約 170 萬美元，但被其他 SG&A 費用減少約 70 萬美元以及我們公司費用的減少所抵消。

The company recorded an operating loss of $2.7 million for Q2 2023 compared to an operating loss of $2.8 million for Q2 2022. The decrease of $0.1 million in the operating loss was primarily due to the improved profitability of the hospitality segment and a reduction in corporate expenses, offset by an increase in the loss of the disinfection of the building technologies segments as the company incurred higher SG&A costs as I explained previously.

該公司 2023 年第二季的營運虧損為 270 萬美元，而 2022 年第二季的營運虧損為 280 萬美元。營運虧損減少 10 萬美元主要是由於飯店業務盈利能力的提高和公司費用的減少，被建築技術部門消毒損失的增加所抵消，因為公司產生了更高的SG&A 成本，正如我之前解釋的那樣。

The company is accelerating its efforts to realize cost synergies from these acquisitions, especially PURO Lighting and LED Supply Co., which will improve the overall cost structure of AUVI. On a percentage basis, the operating loss improved to 24.8% in Q2 2023 as compared to 47.6% for Q2 2022. The company incurred interest expense of $0.5 million due to the borrowings of Streeterville Capital and Pinnacle Bank, primarily to help fund the acquisitions of PURO Lighting and LED Supply Co. and also to fund additional working capital requirements. The company recorded a net loss of $3.0 million for Q2 2023 compared to a net loss of $2.9 million for the prior year quarter.

公司正在加快努力透過這些收購實現成本協同效應，特別是PURO Lighting和LED Supply Co，這將改善AUVI的整體成本結構。以百分比計算，2023 年第二季的營運虧損改善至24.8%，而2022 年第二季為47.6%。由於向Streeterville Capital 和Pinnacle Bank 借款，該公司產生了50 萬美元的利息支出，主要用於為收購PURO Lighting and LED Supply Co. 也為額外的營運資金需求提供資金。該公司 2023 年第二季的淨虧損為 300 萬美元，而去年同期的淨虧損為 290 萬美元。

The increase of $0.1 million in the net loss was mainly due to the $0.6 million increase in SG&A costs incurred as a result of the acquisitions of PURO Lighting and LED Supply Co. But these are offset by the improved profitability of $0.5 million in the hospitality segment. Total cash and the cash equivalents as of June 30, 2023, were $3.3 million compared to $2.7 million as of June 30, 2022. Thank you for your (technical difficulty) attention. Jenny, you can open up the call to questions now.

淨虧損增加 10 萬美元，主要是由於收購 PURO Lighting 和 LED Supply Co 導致 SG&A 成本增加 60 萬美元。但這被酒店業務部門盈利能力提高 50 萬美元所抵消。截至 2023 年 6 月 30 日，現金及現金等價物總額為 330 萬美元，而截至 2022 年 6 月 30 日，現金及現金等價物總額為 270 萬美元。感謝您（技術難度）的關注。珍妮，您現在可以開始提問。

Thank you very much at this time, we are opening our floor for questions. If you would like to ask a question --

非常感謝您，我們現在開始提問。如果你想問一個問題——