Barfresh Food Group Inc (BRFH) 2024 Q3 法說會逐字稿

Good afternoon, everyone. And thank you for participating on today's third quarter, 2024 corporate update. Call for Bar Fresh Food Group. Joining us today is Bar Fresh Food Group's founder and CEO Ricardo Della Costa and Bar Fresh Food Group. CFO Lisa Roger, following prepared remarks, we will open the call for your questions. The discussion today will include forward-looking statements except for historical information, herein matters set forth on this call are forward-looking within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements about the company's commercial progress, success of its strategic relationships and the projections of future financial performance. These forward-looking statements are identified by the use of words such as grow, expand anticipate intend estimate believe expect plan should potential forecast project continue, could may predict and will and variations of such words and similar expressions are intended to identify such forward-looking statements. All statements other than the statements of historical fact that address activities, events or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience expected future developments and other factors that the company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect. Actual results may vary materially from those indicated or anticipated by such forward-looking statements accordingly. Investors are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date they are made. The contents of this call should be considered in conjunction with the company's recent filings with the securities and exchange commission including its annual report on form 10 K and the quarterly reports on form 10 K and current reports on form eight K including any warnings, risk factors and cautionary statements contained therein.

大家下午好。感謝您參與今天的 2024 年第三季公司更新。致電 Bar Fresh Food Group。今天與我們一起參加的是 Bar Fresh Food Group 的創始人兼執行長 Ricardo Della Costa 和 Bar Fresh Food Group。財務長麗莎羅傑 (Lisa Roger)，在準備好發言之後，我們將開始回答您的問題。今天的討論將包括除歷史資訊以外的前瞻性陳述，本電話會議上討論的事項均為 1995 年私人證券訴訟改革法安全港條款所定義的前瞻性事項，包括有關公司商業進展、戰略關係的成功以及未來財務業績預測的陳述。這些前瞻性陳述透過使用諸如增長、擴大、預期、打算、估計、相信、期望、計劃、潛在預測項目、持續、可能、預測和將等詞語以及此類詞語的變體和類似表達來識別此類前瞻性陳述。除歷史事實陳述之外的所有涉及公司認為或預計將來會發生或可能發生的活動、事件或發展的陳述均為前瞻性陳述。這些陳述是基於經驗、預期未來發展和公司認為在當前情況下適當的其他因素而做出的某些假設。此類聲明受多種假設、風險和不確定性的影響，其中許多超出了公司的控制範圍。這些風險或不確定性中的一個或多個是否會出現，或基本假設是否被證明是錯誤的。實際結果可能與此類前瞻性陳述所示或預期的結果有重大差異。提醒投資人不要過度依賴這些前瞻性陳述，因為這些陳述僅代表其作出之日的觀點。本次電話會議的內容應與本公司最近向美國證券交易委員會提交的文件一併考慮，其中包括公司 10K 表格年度報告、10K 表格季度報告以及 8K 表格當前報告（包括其中包含的任何警告、風險因素和警示聲明）。

Furthermore, the company expressly declaims disclaims any current intention to update publicly, any forward-looking statements after this call, whether as a result of new information, future events changes in assumptions or otherwise.

此外，本公司明確聲明，目前沒有打算在本次電話會議後公開更新任何前瞻性聲明，無論是由於新資訊、未來事件、假設的變更或其他原因。

In order to aid in the understanding of the company's business performance, the company is also presenting certain non GAAP measures including adjusted gross profit, EBDA adjusted IDA which are reconciled in tables in the business update release to the most comparable GAAP measures and certain calculations based on the results including gross margin and adjusted gross margin.

為了幫助了解公司的經營業績，本公司還列出了某些非 GAAP 指標，包括調整後的毛利、EBDA 調整後的 IDA，這些指標在業務更新新聞稿中的表格中與最具可比性的 GAAP 指標和基於結果的某些計算（包括毛利率和調整後的毛利率）進行了調整。

The reconciling items are non operational or non cash costs including stock compensation and other non-recurring costs such as those associated with the product withdrawal, the related dispute and certain manufacturing relocation cost. Management believes that the adjusted gross profit and adjusted EBITA provide useful information to the investor because they are directed directly reflective of the performance of the company.

調節項目為非營業性或非現金成本，包括股票補償和其他非經常性成本，例如與產品召回、相關爭議和某些製造搬遷成本相關的成本。管理層認為，調整後的毛利和調整後的 EBITA 為投資者提供了有用的信息，因為它們直接反映了公司的表現。

Now, I will turn the call over to the CEO of Barfresh Food Group. Mr Ricardo Della Costa. Please go ahead, sir.

現在，我將把電話轉給 Barfresh Food Group 的執行長。里卡多·德拉科斯塔先生。先生，請繼續。

Good afternoon everyone and thank you for joining us for our third quarter, 2024 earnings call.

大家下午好，感謝您參加我們的 2024 年第三季財報電話會議。

I'm thrilled to announce that we achieved record quarterly revenue of over 3.6 million for the third quarter representing a 40% increase over the same period last year.

我很高興地宣布，我們第三季的季度營收創下了 360 萬美元的紀錄，比去年同期成長了 40%。

What makes this achievement even more exciting is that it serves as a robust baseline for our future growth, especially considering our new pop and go offering wasn't a part of our third quarter offering or revenue.

這項成就更加令人興奮的是，它為我們未來的成長奠定了堅實的基礎，特別是考慮到我們的新即食產品不是我們第三季度的產品或收入的一部分。

Our recent investments and strategic initiatives have positioned us exceptionally well for continued growth and profitability. Let me highlight some key developments.

我們最近的投資和策略性舉措為我們持續成長和獲利做好了充分準備。讓我強調一些關鍵進展。

Our recent three new manufacturing partnerships, some of which have commenced and others still in the process of being commissioned, dramatically increase our production capacity, allowing us to meet growing demand and onboard new customers efficiently.

我們最近建立了三個新的製造合作夥伴關係，其中一些已經開始，其他仍在調試過程中，這極大地提高了我們的生產能力，使我們能夠滿足不斷增長的需求並有效地吸引新客戶。

We will now have the ability to produce over 120 million units annually across our product offering a 400% increase compared to last year.

我們現在每年可生產超過 1.2 億件產品，比去年成長 400%。

We have already begun ramping up operations with our new manufacturing partners and expect additional bottle capacity to come online in the fourth quarter. Our sales reach has experienced a transformative expansion with our broker network now covering an impressive 95% of the country.

我們已經開始與新的製造合作夥伴一起擴大運營，預計第四季度將有額外的瓶裝產能投入使用。我們的銷售範圍經歷了變革性的擴張，我們的經紀人網絡現已覆蓋全國 95% 的地區。

This extensive coverage is achieved through strategic partnerships with local brokerage firms across the United States. Effectively putting hundreds of sales professionals on the ground, actively promoting our products.

這種廣泛的覆蓋範圍是透過與美國各地當地經紀公司建立策略合作夥伴關係來實現的。有效地將數百名銷售專業人員派到實地，積極推廣我們的產品。

The power of this approach lies in leveraging regional expertise and established local relationships which has proven to be exceptionally impactful in the education channel.

這種方法的力量在於利用區域專業知識和已建立的本地關係，這已被證明在教育管道中具有極大的影響力。

Complementing this external network is our dedicated internal sales force led by our experienced Vice President of sales. This in house team works in coordination with our national sales broker network, ensuring a cohesive and comprehensive sales strategy. It's important to point out that we are just beginning our expansion opportunity in the education channel with approximately only 4.5% penetration currently in the schools in the US.

與此外部網路相輔相成的是我們經驗豐富的銷售副總裁領導的專門內部銷售團隊。這個內部團隊與我們的全國銷售經紀人網絡協調工作，確保制定有凝聚力和全面的銷售策略。值得指出的是，我們在教育管道的擴張機會才剛開始，目前在美國學校的滲透率僅約 4.5％。

During the fourth quarter, we commence selling our 100% juice, freeze pops, pop and go to the education channel. This new product as with our other product in the education channel is compliant with USDA reimbursable meal programs and smart snack guidelines.

在第四季度，我們開始銷售我們的 100% 果汁、冰棒、汽水並進入教育管道。與我們在教育管道中的其他產品一樣，這款新產品符合美國農業部可報銷膳食計劃和智慧零食指南。

The initial response from students and administrators has been extremely positive. Pop and go complements our existing school offerings and strategically target lunch menus in schools which can be up to five times the volume of our current breakfast menu offerings.

學生和管理人員的初步反應非常正面。Pop and go 是我們現有學校食物的補充，策略性地瞄準學校的午餐菜單，其數量可能是我們目前早餐菜單數量的五倍。

Looking ahead we see a clear path for pop and go to expand into other food service and retail channels further broadening our market reach. The infrastructure we put in place is not just about this year's results, it's about building a company primed for sustained long term growth. We're excited to capitalize on our momentum with the launch of pop and go and further accelerate our growth trajectory.

展望未來，我們看到了一條清晰的道路，即外送將擴展到其他食品服務和零售通路，從而進一步拓寬我們的市場範圍。我們建立的基礎設施不僅關乎今年的業績，還關乎打造一家為長期持續成長做好準備的公司。我們很高興能夠利用 pop and go 推出帶來的良好勢頭，進一步加快我們的成長軌跡。

The company is in the strongest position it's ever been having strategically aligned our on trend product offerings, amplified production capacity and comprehensive sales network under the stewardship of our experienced management team, I'll now turn the call over to our co Lisa Roger Lisa.

在我們經驗豐富的管理團隊的領導下，公司處於有史以來最強大的地位，策略性地調整了我們流行的產品供應、擴大了的生產能力和全面的銷售網絡，現在我將電話轉給我們的同事麗莎·羅傑·麗莎。

Thank you Ricardo revenue for the third quarter of 2024 increased 40% to 3.6 million compared to 2.6 million in the third quarter of 2023 revenue in 2024 benefited from improvements in twist and go bottled smoothie sales from inventory built ahead of our seasonally high third quarter and improvements in smoothie carton and bulk sales. Gross margin for the third quarter of 2024 was comparable to the prior year period at 35% excluding production relocation costs adjusted gross margin for the third quarter of 2024 was 38%. The year over year increase in adjusted gross margin is due to favorable product mix pricing actions and a slight improvement in the cost of supply chain components. Selling marketing and distribution expense for the third quarter of 2024 increased to 990,000 compared to 697,000 in the third quarter of 2023. The increase is a result of investments in higher personnel costs, travel and broker commissions due to expansion of the company's broker network as well as freight costs due to the increase in revenue. G&A expenses for the third quarter of 2024 were 705,000 compared to 577,000 in the same period last year, the increase in G&A was primarily driven by the non recurrence of recognizing employee retention tax credit benefits in 2023. Our net loss for the third quarter of 2024 was 513,000 compared to a net loss of 476,000 in the third quarter of 2023.

謝謝 Ricardo 2024 年第三季的收入從 2023 年第三季的 260 萬美元增長 40% 至 360 萬美元，2024 年的收入受益於我們在季節性高點第三季度之前建立的庫存導致的扭轉和瓶裝冰沙銷售的改善以及冰沙紙盒和散裝銷售的改善。2024 年第三季的毛利率與去年同期相當，為 35%，不包括生產搬遷成本，2024 年第三季的調整後毛利率為 38%。調整後毛利率年增率是由於有利的產品組合定價措施和供應鏈組件成本的略微改善。2024 年第三季的銷售、行銷和分銷費用較 2023 年第三季的 697,000 增加至 990,000。成長的原因是由於公司經紀網路擴張導致的人員成本、差旅和經紀佣金的增加以及收入增加導致的運費投資。2024 年第三季的 G&A 費用為 705,000，而去年同期為 577,000，G&A 費用的增加主要是由於 2023 年未再次確認員工保留稅收抵免福利。我們 2024 年第三季的淨虧損為 513,000，而 2023 年第三季的淨虧損為 476,000。

The year over year increase is a result of increased head count and the non recurrence of tax benefits recognized in 2023 partially offset by the contribution margin from increased sales. For the third quarter of 2024. Our adjusted even though was approximately a loss of 124,000 compared to a loss of 89,000 in the prior year period.

年比增長是由於員工人數增加和 2023 年確認的稅收優惠不再重複，但銷售額增加帶來的貢獻利潤部分抵消了這一增長。預計 2024 年第三季。儘管如此，我們的調整後虧損仍約為 124,000，而去年同期的虧損為 89,000。

Now moving on to our balance sheet as of September 30th 2024 we had approximately 2.1 million in cash in accounts receivable and approximately 770,000 of inventory on our balance sheet. In the first half of the year, we deployed a significant amount of cash to build up inventory in preparation for our seasonally high Q3. The inventory build allowed us to generate a 40% year over year increase in revenue for the third quarter of 2024.

現在轉到我們的資產負債表，截至 2024 年 9 月 30 日，我們的應收帳款現金約為 210 萬美元，資產負債表上的庫存約為 77 萬美元。今年上半年，我們投入了大量現金來增加庫存，為季節性高峰的第三季做準備。庫存增加使我們 2024 年第三季的營收年增了 40%。

We expect expanded bottle smoothie capacity to come online in the fourth quarter. Additionally, we have taken other measures to reduce our liquidity requirements including compensating our directors and employees with equity to reduce cash compensation requirements and obtaining non recourse litigation finance and secured receivables financing.

我們預計擴大的瓶裝冰沙產能將於第四季上線。此外，我們還採取了其他措施來減少我們的流動性需求，包括向我們的董事和員工提供股權以減少現金補償要求，並獲得無追索權訴訟融資和有擔保的應收帳款融資。

Now, I will turn the call back to Ricardo for closing remarks.

現在，我將邀請里卡多致結束語。

Thank you Lisa.

謝謝你，麗莎。

In closing, I want to share both our near term and long term outlook. For fiscal year 2024 we continue to expect record annual revenue and year over year adjusted gross margin improvement. This growth is driven by three key factors. First, the expansion of our product portfolio highlighted by our innovative pop and go offering which will begin generating revenue in the fourth quarter. Second, our significantly enhanced production capacity and third our broad and sales network which is accelerating new customer acquisitions.

最後，我想分享我們的近期和長期展望。對於 2024 財年，我們繼續預期年收入將創紀錄，且調整後的毛利率將年增。這一成長由三個關鍵因素推動。首先，我們產品組合的擴展以我們的創新即點即用產品為亮點，該產品將於第四季度開始產生收入。第二，我們的生產能力顯著增強；第三，我們的銷售網絡廣泛，正在加速新客戶的獲取。

These strategic initiatives not only set the stage for a strong finish to 2024 but also provide robust momentum as we enter 2025. Beyond our 2024 outlook, we have laid the groundwork for sustained future growth. A key part of this effort has been the establishment of our new co manufacturing locations. While this represents a significant investment of internal resources and has resulted in incremental contract acquisition and trial costs that have impacted our third quarter results it is crucial for our long term growth beyond manufacturing, we've been diligently working on enhancing all aspects of our business. Our operations have also been bolstered by the newly integrated P and transport management system. This integrated infrastructure positioned us to scale our business efficiently and effectively. With these building blocks now in place, we're set to aggressively shift our focus and resources from increasing manufacturing capacity and operational improvements to sales growth.

這些策略舉措不僅為2024年的強勁收官奠定了基礎，也為我們邁入2025年提供了強勁動力。除了 2024 年的展望之外，我們還為未來的持續成長奠定了基礎。此項努力的關鍵部分是建立我們新的共同生產基礎。雖然這代表著對內部資源的大量投資，並導致合約收購和試驗成本的增加，從而影響了我們的第三季業績，但這對我們在製造業以外的長期成長至關重要，我們一直在努力加強業務的各個方面。新整合的 P 和運輸管理系統也增強了我們的業務運作。這種綜合基礎設施使我們能夠有效率、有效地擴展業務。有了這些基礎，我們將積極轉移重點和資源，從提高生產能力和營運改善轉向銷售成長。

Our track record shows we can significantly increase sales and our expanded capacity gives us even more room to grow. We've been diligently rebuilding all aspects of our business and are in a great position to capitalize on these investments. The future is bright and we're more prepared than ever to drive our sales to new heights and seize the opportunities ahead these initiatives coupled with our strength and position in the market and the positive momentum we're seeing in 2024 gives us confidence in our ability to deliver substantial growth and value for our shareholders in both the near term and the long term. And with that, I would like to open the line for questions, operator.

我們的業績記錄表明，我們可以大幅提高銷售額，而擴大的產能為我們提供了更大的成長空間。我們一直在努力重建業務的各個方面，並處於有利地位以利用這些投資。未來是光明的，我們比以往任何時候都更有準備將我們的銷售推向新的高度，並抓住未來的機遇，這些舉措加上我們在市場上的實力和地位以及我們在 2024 年看到的積極勢頭，讓我們有信心我們有能力在短期和長期為股東帶來大幅增長和價值。現在，我想開始回答大家的提問，接線生。

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment please, while we pull for questions. Our first question comes from Anthony Vendetti with Maxim Group, please proceed with your question.

謝謝。我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號 1。確認音將表示您的線路已進入問答佇列。如果您想將您的問題從使用揚聲器裝置的參與者的佇列中刪除，您可以按星號鍵二，可能需要在按星號鍵之前拿起聽筒。請稍等片刻，我們正在回答問題。我們的第一個問題來自 Maxim Group 的 Anthony Vendetti，請繼續您的問題。

Thanks, Ricardo Lisa. How are you?

謝謝，里卡多·麗莎。你好嗎？

Good. How are you?

好的。你好嗎？

Good. Thanks. I was just wondering if you could talk a little bit about the new pop pop and go freeze pops. Just the initial traction, what the pipeline looks like. And then any other commentary you want to provide around that, that would be helpful. Thanks.

好的。謝謝。我只是想知道您是否可以談談新的pop pop和go freeze pops。這只是最初的牽引力，管道是什麼樣子的。然後，如果您想提供任何其他評論，這都會有所幫助。謝謝。

Yeah, sure. So we actually we've just shipped our first orders for Pop and Go. So they'll be registering some revenue commencing in Q4. Like we mentioned, the interest

是的，當然。因此我們實際上剛剛發出了第一批 Pop and Go 訂單。因此他們將從第四季開始記錄一些收入。正如我們所提到的那樣，利息

Has been exceptionally high.

一直異常高。

We've had a lot of people express interest in the in new pop and go just from the samples that have been sent out. We've already got opening orders. We've got new distributors that are getting code set up all over the country, probably the most exciting part of the new pop and go offering and we do talk about it a little bit but understand the detail of the difference between the breakfast menu, volume of servings and the lunch opportunity in the same education channel is very significant. So

僅從已發出的樣本來看，就有很多人表達了對新流行音樂的興趣。我們已經收到了開業訂單。我們有新的經銷商，他們在全國各地設定程式碼，這可能是新的即食產品中最令人興奮的部分，我們確實談論了這一點，但了解早餐菜單、份量和午餐機會在同一個教育管道中的差異的細節是非常重要的。所以

You, you

你，你

Just have a much bigger audience and the volume of lunch serves if we get on the menu at lunch, versus for breakfast is potentially up to five times the amount of volume of what we're doing for the say the twist and go on the breakfast menu. So that is a very, very significant opportunity for us as we look to go to the same customers that we're already serving with the twist and go. And in addition to having products on their breakfast menu, we now also have products on their lunch menu as well as brand new customers and having an alternative option for them for the for the lunch menu. So we're very excited about it.

如果我們在午餐菜單上提供這種菜餚，那麼我們的受眾就會更大，與早餐菜單相比，午餐菜單的菜餚數量可能會達到早餐菜單的五倍。所以這對我們來說是一個非常非常重要的機會，因為我們希望透過這種轉變來服務我們已經服務過的客戶。除了早餐菜單上的產品外，我們現在還在午餐菜單上提供產品，並為全新客戶提供午餐菜單的替代方案。因此我們對此感到非常興奮。

Very, very excited about it.

我對此感到非常非常興奮。

Okay, so, so, that's great. So the co manufacturer that you signed up recently, are they, are they doing both the, the twist and go and the pop and go or is it mostly the pop and go for the new co manufacturer and then on the pop and go or a similar margins to the twist and go better? Maybe just give us an idea about that.

好的，太好了。那麼，您最近簽約的合作製造商，他們是否同時進行扭動和彈出式生產，還是對於新的合作製造商來說，他們主要進行彈出式生產，然後再進行彈出式生產，或者與扭動和彈出式生產相似的利潤率更好？也許只是給我們一個關於這方面的想法。

Sure. So, that manufacturer does not make our twist and go product, but they do some other products for us. So it's different, however, from a margin profile perspective, it's probably at the same, probably a little bit better margin profile than the twist and go.

當然。因此，該製造商不生產我們的扭轉式產品，但他們為我們生產一些其他產品。因此，從利潤率概況的角度來看，它是不同的，它的利潤率可能與扭曲和前進的利潤率相同，甚至可能略好一些。

Yeah, for like our single serve product and, and some of our bulk products as well. So the expansion is, you know, every product line.

是的，例如我們的單份產品和一些散裝產品。所以擴張的是每條產品線。

Yes. So we've really done a lot of work on, you know, we've done a lot of work over the last '12 months on, on the manufacturing front, you know, to really give us the coverage that we need from a manufacturing footprint nationally and building in some extra redundancy within our system to cover multiple products. So, you know with that, we believe we're also going to get some additional product cost savings as we kind of roll out and commission new manufacturing locations and we can just get more volume and, and better pricing and, you know, just better efficiencies across the network.

是的。因此，您知道，我們在過去 12 個月內在製造方面做了很多工作，真正為我們提供所需的全國製造覆蓋範圍，並在我們的系統內建立一些額外的冗餘以覆蓋多種產品。因此，我們相信，隨著我們推出和委託新的製造工廠，我們還將獲得一些額外的產品成本節約，我們可以獲得更多的產量和更好的定價，以及整個網路的更高效率。

Okay. And then separately at, at this time, how many school accounts are you active in right now?

好的。然後分別說一下，目前您現在活躍的學校帳戶有幾個？

I mean, that's a great question. You know, we've got new ones being added almost, almost daily. You know, we did announce about three months ago, the addition of about 3,000 new locations, some of some or a lot have been onboarded and others are still to be onboarded as we get through the back, back half of the year you know, we, we feel as though we're at about a 4.5% penetration, which is about 6,000 schoolish right. Give or take once we get into the beginning of the New year, we'll have a better handle on, on that number and we'll be able to share any more detail.

我的意思是，這是一個很好的問題。你知道，我們幾乎每天都會添加新的內容。你知道，我們確實在大約三個月前宣布增加大約 3,000 個新地點，其中一些或很多地點已經入職，其他地點仍有待入職，因為我們已經度過了上半年，我們感覺我們的滲透率約為 4.5％，大約有 6,000 所學校。或多或少，一旦我們進入新的一年的開始，我們就會對這個數字有更好的掌握，並且能夠分享更多的細節。

So, 6,000, about 4.5% penetration are their schools that are just not good candidates for this, or you know, when you look at the this the spectrum of schools across the United States, you know, are half the schools good candidates or 75% of them good candidate. How do you look at the entire a school account for?

因此，6,000 所學校中，約有 4.5% 的滲透率是那些不適合這方面的學校，或者，當您查看美國各地學校的情況時，您會發現，有一半的學校適合這方面的要求，或者其中 75% 的學校適合這方面的要求。您怎麼看待整個學校的帳目？

Yes. So, that's a good question and it's probably worth some further explanation because that 4.5% and that penetration that we've been talking about is only for the twist and go, right? I mean, up until this week, we hadn't even shipped any pop and go. So pop and go is like just complete white canvas and 100% of the market is open to us, you know, still from penetration perspective so, you know, as you look at the twist and go product, they're all great candidates for us all the schools are it, it really just, you got to remember that we've also been capacity constrained up until now. So, you know, now that we're now that we're getting the capacity unlocked and the manufacturing brought up we expect to increase, you know the volume significantly and thus the penetration and at the same time, you know, we're looking to go and penetrate the same market and the same

是的。所以，這是一個好問題，可能值得進一步解釋，因為我們一直在談論的 4.5% 和滲透率只是為了扭轉局面，對嗎？我的意思是，直到本週，我們甚至還沒有運送任何易走產品。因此，pop and go 就像是完全白色的畫布，100％ 的市場對我們開放，您知道，仍然從滲透的角度來看，所以，當您查看 twist and go 產品時，它們都是我們很好的候選者，所有學校都是這樣，真的，您必須記住，到目前為止，我們的產能也受到限制。所以，你知道，現在我們已經釋放了產能，提高了製造能力，我們預期產量會大幅增加，滲透率也會提高，同時，你知道，我們也在尋求滲透到同一個市場。

Customers with pop and go, which

攜帶即食食品的顧客

Is, you know, we're at 0% right now.

您知道，我們現在是 0%。

Okay. Okay, great. That's, that's, that's helpful. Thanks very much. I appreciate it, I'll hop back in the queue.

好的。好的，太好了。這，這，這很有幫助。非常感謝。我很感激，我會重新回到隊列中。

As a reminder. If you would like to ask a question, please press star one on your telephone keypad.

提醒一下。如果您想提問，請按電話鍵盤上的星號 1。

Our next question comes from Ancor Sagar. Please proceed with your question.

下一個問題來自 Ancor Sagar。請繼續回答您的問題。

Hey, good afternoon, Ricardo and Lisa. Thank you for taking my questions.

嘿，下午好，里卡多和麗莎。感謝您回答我的問題。

Congratulations on the, you know, higher top line number. I think I want to commend you for the job you have done. I mean, I think it's fair to say you have, you know, persevered against all all odds.

恭喜您獲得更高的營收數字。我想我要對你所做的工作表示讚揚。我的意思是，我認為可以公平地說，你已經克服了一切困難，堅持了下來。

Yeah, we definitely have been and go, we're really just scratching the surface still. Yes, it's probably been our first kind of significant jump in a while, but that's really only because we've had both arms tied behind our back, right? And we've really been short on supply. So, you know, with the inventory build that we did at the beginning of this year and now with the extra capacity that's coming online we really expect a lot more of these types of jumps to occur.

是的，我們確實已經去過並且已經走了，但我們實際上只是觸及了表面。是的，這可能是我們這段時間以來第一次實現重大飛躍，但這真的只是因為我們的雙臂被綁在身後，對嗎？我們的供應確實短缺。所以，你知道，隨著我們在今年年初的庫存增加，以及現在上線的額外產能，我們確實預計會出現更多此類增長。

Absolutely. No. Great job by you and your team. I think it's as a shareholder. It's, it's just been amazing to see that what you have accomplished in the last couple of years and that too without, you know, not much of dilution. So that's great. I want to ask a couple of questions. It's the first one is a multi part question in regarding the, the, the new product. It seems to me like now you're, you're an innovation company with, with, you know, putting new products in, into the, into the lunch area as well for the schools. And how did the, the company came about this, this, this product? I mean, was it based on the customer feedback, you know, on the free spots or is it just that you wanted to basically go after the lunch side of the, the school as well? And, and, you know, in terms of the, the signing of the schools and getting on this product on the lunch menu, you know, how do you go about doing that? do you have to wait for the school bids or you know that you have customer, the 6,000 customers or so for Trustco, you can potentially reach out to the, you know, the right personnel and just you know, be able to get this on a lunch menu without the bidding process.

絕對地。不。你和你的團隊做得很好。我認為是作為股東。看到你們在過去幾年裡取得的成就真是太神奇了，而且沒有太多的稀釋。這太棒了。我想問幾個問題。第一個問題涉及新產品，由多個部分組成。在我看來，現在你們是一家創新公司，將新產品引進學校的午餐區。那麼公司是如何推出這款產品的呢？我的意思是，這是基於顧客對免費停車位的回饋嗎，還是你只是想去學校的午餐區？而且，您知道，就學校簽約並將該產品列入午餐菜單而言，您知道，您如何做？您是否必須等待學校投標，或者您是否知道您有客戶，Trustco 大約有 6,000 名客戶，您是否可以聯繫到合適的人員，並且無需經過投標過程就可以將其列入午餐菜單。

Okay. So, I'll take the questions from the top we create the products by a combination of understanding where the bigger part of the opportunities are Yes, you're right. The lunch menu is definitely a much higher volume opportunity and we recognize that, but we also listen to what our customers were asking for. So it was in conjunction with talking to our customers, but then it was also in conjunction with understanding what we already have access to our supply chain, what our supply chain, you know, what kind of great products can we deliver to these customers? Utilizing the ingredients that we're already using as well, right? Because we're using a lot of the same ingredients, we're using the same supply chain and talking and by talking to our customers and recognizing then the the significance of the opportunity then on the lunch menu. So it's a multi faceted approach to introducing a new product and understanding the market and we believe that personally, I believe that the new pop and go product, I believe it's going to surpass our twist and go product just by sheer volume opportunity out there in the marketplace for this product category and based on the initial reception and acceptance that we've had from the initial customers that we've been talking to. So, you know, time will tell, but just from the initial feedback and the volumes that are being proposed to us from our customers. You know, I'll give you an example, we did have a customer that, you know, was forecasting about 40,000 units a month for the, for the twist and go product and you know, they intend to add the pop and goes in the spring and you know, they're going to do about 200,000 a month of the pop and goes, you know, started in spring per month. So, you know, we are already seeing the significance of the contrast in volume opportunity between the twist and go product and the pop and go product, which is why we're so bullish and excited about it. So that, that I believe that's going to play out over time as we get out to the customers in terms of approaching customers now and our existing customers, It's a total mix back. The answer is yes, absolutely we're going to be going to our direct customers that we're already servicing that we're already on menus to, in some instances, they will have flexibility to add them to their menus they may choose just to add, add it to their cafeteria menus at the moment and a la carte where they can buy it and then maybe when their bid season opens up, they'll, you know, they'll re bid it and then it will get added to the bids. Some won't be able to add it until the bid season rolls around. Sometimes that happens twice a year, sometimes they do special bids. It really is a mixed bag around the country for all different types of schools.

好的。因此，我將從最開始的問題開始，我們透過了解大部分機會所在來創造產品，是的，你是對的。午餐菜單無疑具有更大的銷售機會，我們認識到了這一點，但我們也會傾聽顧客的要求。因此，這是與我們的客戶交談相結合的，但同時也要了解我們已經可以訪問我們的供應鏈，我們的供應鏈是什麼樣的，我們可以為這些客戶提供什麼樣的優質產品？利用我們已經在使用的成分，對嗎？因為我們使用許多相同的原料，我們使用相同的供應鏈，並透過與客戶交談認識到午餐菜單上機會的重要性。因此，這是一種推出新產品和了解市場的多方面方法，我們相信，就我個人而言，我相信新的即取即用產品將超越我們的旋轉式即用產品，僅僅是憑藉該產品類別在市場上的大量機會，並且基於我們從與我們交談過的初始客戶那裡獲得的初步反響和接受程度。所以，你知道，時間會證明一切，但只是從最初的回饋和客戶向我們提出的數量來看。我來舉個例子，我們確實有一位客戶，他預測旋轉式包裝產品每月的銷量約為 40,000 台，他們打算在春季增加彈出式包裝產品，從春季開始，他們每月的彈出式包裝產品銷量約為 200,000 台。所以，您知道，我們已經看到了扭轉式產品和彈出式產品在銷售機會方面的對比意義，這就是我們如此看好和興奮的原因。所以，我相信，隨著我們逐漸接觸客戶，從現在的客戶到現有客戶，這一切都會逐漸顯現出來，這是一個全面的整合。答案是肯定的，絕對會，我們會向我們已經在服務的直接客戶，我們已經在菜單上提供這些菜品，在某些情況下，他們可以靈活地將其添加到他們的菜單中，他們可以選擇只是將其添加到他們目前的自助餐廳菜單中，也可以在點菜菜單中購買，然後也許當他們的投標季節開始競標時，他們會重新競標，然後它會被競標。有些要等到競標季節到來時才能添加它。有時這種情況每年發生兩次，有時他們會進行特別競標。全國各地不同類型的學校的情況確實良莠不齊。

Got it, and that's great. And in terms of the, is it fair to say from the twist and go side that you're somewhat still supply constrained? I think you mentioned in the prepared remarks about another contract manufacturer coming up in Q4 and that should allow you to basically go after and supply the twist and go product even to you know, larger school districts.

明白了，太好了。就此而言，從扭轉和繼續的角度來看，是否可以說你們仍然受到供應限制？我記得您在準備好的評論中提到了第四季度即將出現的另一家合約製造商，這應該可以讓您基本上追逐並供應扭轉產品，甚至供應給更大的學區。

Yeah.

是的。

That's not mince words, it's we're not somewhat constrained. We have been, you know, we've been completely restrained. And that's really been a very significant factor to what had a cap on, on our ability to generate the revenue. So, we have the facilities being commissioned now as we speak literally, and we expect that volume to start to turn on in Q4 and further improve at the beginning of next year as well. So, as we see that volume capacity opening up, we will definitely be approaching those larger accounts and being more broadly and aggressively going out there and selling the twist and go product nationwide.

這並不是拐彎抹角的話，而是我們並沒有受到任何限制。你知道，我們一直受到完全的克制。這確實是限制我們創造收入能力的一個非常重要的因素。所以，正如我們所說，我們現在已經開始投入使用這些設施，我們預計產量將在第四季開始增加，並在明年年初進一步提高。因此，隨著我們看到產能的不斷提升，我們肯定會接觸那些更大的客戶，更廣泛、更積極地走出去，在全國範圍內銷售扭曲型產品。

That's great. I mean, I see it actually went on social media, you know, customers; you know, school administrators; you know, students; love your product, and some are just waiting for like when it's going to show up again on the menu. So, I can attest to that.

那太棒了。我的意思是，我看到它實際上出現在社交媒體上，你知道，顧客；你知道，學校管理者；你知道，學生們；喜歡你們的產品，有些人只是在等待它再次出現在菜單上。所以，我可以證明這一點。

Well, we probably get an email every other day from a parent, a teacher, a grandparent, letting us know that their child or their grandchild has had the product, and they love it and they want to know where else they can get it from so, they can get it at home. So, we definitely get great feedback on the product and we look forward to getting it out to more students.

好吧，我們可能每隔一天就會收到來自父母、老師、祖父母的電子郵件，告訴我們他們的孩子或孫子已經擁有該產品，並且他們非常喜歡它，並且他們想知道他們還可以從哪裡買到它，這樣他們就可以在家裡買到它。因此，我們確實收到了有關該產品的很好的回饋，我們期待將它推廣給更多的學生。

Got it, and I think you had one item regarding the manufacturing relocation. Is it just you know, something you're doing with the contract manufacturing right now a move or is it still the, the remainder of that, you know, the legal dispute you had a couple of years ago?

明白了，我認為您有一項關於製造業遷移的內容。您知道，這只是您現在在合約製造方面採取的舉措，還是仍然是您幾年前遇到的法律糾紛的遺留問題？

No, that was more of a repositioning we actually one of our co packers was sold off and the new owners didn't do any contract manufacturing. So, we had to relocate the equipment as, as a result of that. So that's really our single serve product. So, we will be again focusing more on once that new lines up and running, which is actually being done as we speak as well, we'll be targeting that single serve business going into next year again.

不，這更像是一次重新定位，實際上我們的一個聯合包裝商被賣掉了，新東家沒有進行任何合約製造。因此，我們不得不重新安置設備。這實際上是我們的單一服務產品。因此，我們將再次更加關注新生產線的投入運行，實際上我們也在這樣做，明年我們將再次瞄準單一服務業務。

Yeah. So that was the business where we have significant opportunities with QSRS before COVID. So, that's really a very significant new opportunity to relaunch that.

是的。因此，在 COVID 之前，我們在這項業務上與 QSRS 有重大機會。所以，這確實是一個重新啟動這個過程的非常重要的新機會。

And for those that have been following for a while, we had you know multiple, you know, national Qsrs where we've got multiple products approved by them and we're ready to roll out actually. So, we'll be picking up those conversations going into next year and we've already started planting those seeds.

對於那些已經關注我們一段時間的人來說，我們已經有了多個國家 QSRS，我們的多個產品已經獲得他們的批准，並且我們已準備好推出。因此，我們將在明年繼續這些對話，並且我們已經開始播下這些種子。

But that's great. And just one other one more you know, if I think, you know, now I see somewhat, the business is also cash constrained. I think your goal is to probably get the sales growth and even, you know, be able to get the cash flow break, even generate cash and I, is there a revenue number that you can share where the company gets the cash flow break even? And, any sort of you know, comments you can provide on the timeline on when you get there.

但這太棒了。另外，我想說的是，現在我發現，企業也受到了現金限制。我認為您的目標可能是實現銷售成長，甚至實現現金流突破，甚至產生現金，您能分享一個公司實現現金流收支平衡的收入數字嗎？而且，當您到達那裡時，您可以在時間表上提供任何您知道的評論。

Yeah, well, you know, we were very close to even out adjusted even outbreak even this quarter, you know, a very cost. So, you know, kind of think about our contribution margin on sales. We probably only need another, I don't know, half a million to be adjusted even outbreak even. So, you know, we're very close. We expect to be there for Q4. You know, and you talked about being cash constrained, somewhat true. But I mean, we, we also have the receivable facility and if you look at our balance sheet 23, we had, oh, I would say 1.7 million in AR we'd only borrowed 100,000 on it so we could have borrowed like another million two if we really needed it we just, you know, don't want to borrow unnecessarily.

是的，你知道，即使本季我們非常接近調整後疫情時期的成本。所以，您知道，思考一下我們的銷售貢獻利潤率。我們可能只需要另外，我不知道，五十萬來調整甚至爆發。所以，你知道，我們非常親密。我們預計第四季將會實現這一目標。您知道，您談到現金限制，這在某種程度上是正確的。但我的意思是，我們也有應收帳款工具，如果你看看我們的資產負債表 23，我們有，哦，我想說應收帳款有 170 萬美元，我們只藉了 10 萬美元，所以如果我們真的需要的話，我們可以再藉 200 萬，我們只是，你知道，我們不想不必要地借錢。

Yes. So we don't, we feel like we have access to and we have cash available to meet our plan. So, you know, we feel like we're in a really good spot right now.

是的。所以我們覺得我們有能力並且有現金來實現我們的計劃。所以，你知道，我們感覺我們現在處於一個非常好的位置。

Great. No, that's for sure. I think you guys have done an amazing, amazing work here on managing that. Just one last one. You know, this, regarding the litigation, I don't know if you can comment on this I mean, it has taken a while, I think you have done the right taken the right sort of decisions to, get the recourse financing in place and I think you're just trying to make sure that you get the, you know, right amount here and can you share at least, you know, the initial amount that you're going after in this litigation dispute?

偉大的。不，這是肯定的。我認為你們在管理這一問題上做出了非常出色的工作。只剩最後一個了。您知道，關於訴訟，我不知道您是否可以對此發表評論，我的意思是，這已經花了一段時間，我認為您已經做出了正確的決定，獲得了追索權融資，我認為您只是想確保您得到了正確的金額，您能否至少分享一下您在這場訴訟糾紛中追求的初始金額？

Yeah, we're really taking a position that we're really not talking about it. You know, the filing is we filed a claim for a minimum of 20 million for the breach of contract and that's public and that's really where we're leaving it at this stage.

是的，我們確實採取了這樣的立場：我們確實沒有談論這個。您知道，我們因違約而提出至少 2000 萬美元的索賠，而且這是公開的，這就是我們現階段所做的事情。

Got it, got it. Okay. That's great. Thank you for taking my questions. I appreciate it. Great work.

知道了，知道了。好的。那太棒了。感謝您回答我的問題。我很感激。幹得好。

All right. Thank you.

好的。謝謝。

As a reminder. If you would like to ask a question, please press star one on your telephone keypad.

提醒一下。如果您想提問，請按電話鍵盤上的星號 1。

We have reached the end of our question and answer session. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

我們的問答環節已經結束。今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與。