FiEE Inc (FIEE) 2022 Q4 法說會逐字稿

Good morning, everyone, and welcome to the Minim Reports Fourth Quarter and Full Year 2022 Financial Results Conference Call. (Operator Instructions) Please also note, today's event is being recorded. At this time, I'd like to turn the conference call over to James Carbonara, Investor Relations. Please go ahead.

大家早上好，歡迎參加 Minim Reports 第四季度和 2022 年全年財務業績電話會議。 （操作員說明）另請注意，今天的活動正在錄製中。此時，我想將電話會議轉交給投資者關係部的 James Carbonara。請繼續。

Thank you. And once again, welcome to Minim's Q4 and Full Year 2022 Earnings Call. With me on the call are Mehul Patel, Chief Executive Officer; and Dustin Tacker, Chief Financial Officer. As a reminder, all materials for today's live presentation are available on the company's Investor Relations website at ir.minim.com. Before we begin, I want to remind everyone that today's conference call may contain forward-looking statements. Forward-looking statements include statements regarding the future, including expected revenue, operating margins, expenses and future business outlook. Actual results or trends could materially differ from those contemplated by these forward-looking statements. For a discussion of such risks and uncertainties, which could cause actual results to differ from those expressed or implied in the forward-looking statements.

謝謝。再次歡迎來到 Minim 的第四季度和 2022 年全年收益電話會議。與我通話的是首席執行官 Mehul Patel；和首席財務官 Dustin Tacker。提醒一下，今天現場演示的所有材料都可以在公司的投資者關係網站 ir.minim.com 上找到。在我們開始之前，我想提醒大家，今天的電話會議可能包含前瞻性陳述。前瞻性陳述包括關於未來的陳述，包括預期收入、營業利潤率、費用和未來業務展望。實際結果或趨勢可能與這些前瞻性陳述所預期的結果或趨勢存在重大差異。對於此類風險和不確定性的討論，可能導致實際結果與前瞻性陳述中明示或暗示的結果不同。

Please see risk factors detailed in the company's annual report on Form 10-K contained in subsequent filed reports on Form 10-Q as well as in other reports that the company files from time to time with the Securities and Exchange Commission. Please note, too, that today's call may include the use of non-GAAP numbers that management utilizes to analyze the company's performance. A reconciliation of such non-GAAP numbers to the most comparable GAAP measures is available in our most recent press release, as well as in periodic filings with the SEC. Now I would like to turn the call over to Mehul Patel, CEO of Minim. Mehul please proceed.

請參閱公司 10-K 表格年度報告中詳述的風險因素，該報告包含在隨後提交的 10-Q 表格報告中，以及公司不時向美國證券交易委員會提交的其他報告中。另請注意，今天的電話會議可能會使用管理層用來分析公司業績的非 GAAP 數據。我們最近的新聞稿以及定期向美國證券交易委員會提交的文件中提供了此類非 GAAP 數據與最具可比性的 GAAP 措施的對賬。現在我想把電話轉給 Minim 的首席執行官 Mehul Patel。 Mehul 請繼續。

Thanks, James. Good morning, and welcome to Minim's Q4 and Full Year 2022 Conference Call. At midyear, we initiated a number of steps to advance our competitive position improve working capital management and better align our business with realities of consumer markets. As a result, we exited 2022 with more robust e-commerce distribution channel and all intelligent product portfolio and improved balance sheet. Revenue for the year was $50.6 million, a decline of 9%. It is challenging economic condition persists and traditional retailers continue to work through high inventory that they are stockpiled to combat supply chain risk. Fourth quarter revenue up about 1.4% year-over-year, down 23.2% sequentially to $10.6 million.

謝謝，詹姆斯。早上好，歡迎來到 Minim 的第四季度和 2022 年全年電話會議。年中，我們採取了一系列措施來提升我們的競爭地位，改善營運資本管理，並更好地使我們的業務與消費市場的現實保持一致。因此，我們在 2022 年結束時擁有更強大的電子商務分銷渠道和所有智能產品組合，並改善了資產負債表。全年收入為 5060 萬美元，下降 9%。具有挑戰性的經濟狀況持續存在，傳統零售商繼續通過大量庫存來應對供應鏈風險。第四季度收入同比增長約 1.4%，環比下降 23.2% 至 1060 萬美元。

Subsequent to year-end, we initiated additional cost reduction actions that we expect will generate annual cost savings of approximately 20%, split evenly between cost of goods sold and operating expenses.

年底之後，我們啟動了額外的成本削減行動，我們預計每年將節省大約 20% 的成本，平均分配在銷售成本和運營費用之間。

Through a series of actions that includes workforce reduction as well as reduction in professional services and other spend categories, we're better aligned to size and scale of our business with the realities of current market and economic environment. Importantly, we expect this will also accelerate our path to achieve a sustainable profitability on adjusted EBITDA basis. Across the market, we continue to see consumer preference on online purchasing. We're maintaining our market-leading position at Amazon with 40% market share in networking category. At the same time, we significantly expanded our e-commerce channel in 2022 with addition of homedepot.com, officedepot.com, [HSN and UX] to name a few. Through the addition of these channels, we are reaching a wider audience and scaling our current product offering with a large customer base.

通過一系列行動，包括裁員以及減少專業服務和其他支出類別，我們可以根據當前市場和經濟環境的現實，更好地調整我們業務的規模和規模。重要的是，我們預計這也將加快我們在調整後的 EBITDA 基礎上實現可持續盈利的道路。在整個市場上，我們繼續看到消費者對在線購買的偏好。我們以 40% 的網絡類別市場份額保持在亞馬遜的市場領先地位。與此同時，我們在 2022 年顯著擴展了電子商務渠道，增加了 homedepot.com、officedepot.com、[HSN 和 UX] 等。通過增加這些渠道，我們正在接觸更廣泛的受眾，並擴大我們現有的產品範圍，擴大客戶群。

(inaudible) is our commitment to software enabled intelligent mobile products. We are on schedule to complete the buy down of our ISP business later this year as we shift our attention and resources to premium subscription services. The ISP business, which currently provides customers unlimited free of charge support for purchases has been a drag on our margins and cash flow. With the launch of Support Plus, our premium support subscription service we will establish a new revenue stream, which we believe will have an incremental positive impact to our gross margin beginning near the end of Q3 and we head into Q4. Support Plus will be available to app users beginning in June. The subscription service offers a greatly enhanced end-to-end customer support experience. For our annual fee, user will have access to 24/7 tech support priority queuing and call back to Quest. Importantly, there are virtually no incremental cost to services as investment in the technology is sunk, and we are shifting resources internally from our ISP business to support this new offering.

（聽不清）是我們對軟件支持的智能移動產品的承諾。隨著我們將注意力和資源轉移到高級訂閱服務，我們將按計劃在今年晚些時候完成對 ISP 業務的收購。 ISP 業務目前為客戶提供無限制的免費購買支持，這拖累了我們的利潤和現金流。隨著我們的高級支持訂閱服務 Support Plus 的推出，我們將建立一個新的收入來源，我們相信這將對我們的毛利率產生積極的影響，從第三季度末開始，我們將進入第四季度。 Support Plus 將從 6 月開始提供給應用程序用戶。訂閱服務提供了大大增強的端到端客戶支持體驗。對於我們的年費，用戶將可以使用 24/7 技術支持優先排隊和回電 Quest。重要的是，隨著技術投資的減少，服務幾乎沒有增加成本，而且我們正在從 ISP 業務內部轉移資源以支持這一新產品。

Beyond this initial launch, our technology roadmap includes additional features for rollout in the second half of 2023. Specifically, we plan to add network diagnostics and management, threat protection and parental controls. These features address the top pain points for consumers and create a highly attractive bundle of solutions that gives consumers peace of mind and more control around their [household]. We remain vigilant in our efforts to strengthen our balance sheet. Since the end of second quarter, we have reduced our inventory by 26% to $25.4 million and reduced accounts payable by 75% to $2.8 million at the end of Q4. We have achieved a maintenance level of account payable and AP turnover that is more adequately aligned with the size of our business. As expected, the actions we have taken to improve working capital efficiency resulted in lower cash balance at the end of the year compared to prior quarter end.

除了首次發布之外，我們的技術路線圖還包括將於 2023 年下半年推出的其他功能。具體來說，我們計劃添加網絡診斷和管理、威脅防護和家長控制。這些功能解決了消費者的主要痛點，並創建了極具吸引力的解決方案組合，讓消費者安心並更好地控制他們的[家庭]。我們對加強資產負債表的努力保持警惕。自第二季度末以來，我們已將存貨減少 26% 至 2540 萬美元，並將應付賬款減少 75% 至第四季度末的 280 萬美元。我們的應付賬款和應付賬款周轉率維持在與我們業務規模更相符的水平。正如預期的那樣，我們為提高營運資本效率而採取的行動導致年末現金餘額低於上一季度末。

More importantly, though, our working capital ratio improved from 2 at the end of Q2 to 2.1 at the end of Q4. We expect a further reduction in inventory to low $20 million as we exit Q1 and head into Q2 of 2023. Earlier this month, we signed a nonbinding term sheet for a 3-year $12 million asset-backed credit facility with a new lender. The new credit facility is subject to execution of final definitive documents. We have agreed on business terms and legal terms are working through the final steps to be completed. The new agreement will replace our existing credit facility with Silicon Valley Bank. More importantly, though, this new agreement provides us additional borrowing capacity on a global basis at more favorable terms and reduces the overall financing risk. We expect to execute a final agreement. It's with great confidence that I'll tell you our balance sheet is in a much improved position than it was 6 months ago.

不過，更重要的是，我們的營運資金比率從第二季度末的 2 提高到第四季度末的 2.1。我們預計隨著我們退出第一季度並進入 2023 年第二季度，庫存將進一步減少至 2000 萬美元。本月早些時候，我們與一家新貸方簽署了一份為期 3 年的 1200 萬美元資產支持信貸額度的非約束性條款清單。新的信貸安排取決於最終確定文件的執行。我們已經就商業條款和法律條款達成一致，正在通過最後的步驟完成。新協議將取代我們與硅谷銀行現有的信貸額度。不過，更重要的是，這項新協議以更優惠的條件在全球範圍內為我們提供了額外的借貸能力，並降低了整體融資風險。我們期望執行最終協議。我可以非常自信地告訴您，我們的資產負債表比 6 個月前有了很大改善。

Looking ahead to 2023, we remain focused on prudent allocation of capital executing on our product road map to create a new revenue stream and further expanding our distribution channel, particularly e-commerce channel. I will now turn Dustin for a review of our financial results. Dustin?

展望 2023 年，我們將繼續專注於在我們的產品路線圖上執行審慎的資本分配，以創造新的收入來源，並進一步擴大我們的分銷渠道，尤其是電子商務渠道。我現在請 Dustin 審查我們的財務業績。達斯汀？

Thank you, Mehul. A firmly reminder that the financials I will cover are depicted in the earnings presentation that has been posted on our Investor Relations site at ir.minim.com. Our net revenue for the fourth quarter totaled $10.6 million, which is down 23.2% over the prior quarter, and deferred revenue increased to $1.4 million from $1.3 million in the prior quarter. Our fourth quarter net sales were impacted by consumer demand and brick-and-mortar retailers adjusting their on-hand inventory. For the quarter, our gross margin was 19.9% down from 22.3% in the prior quarter. Excluding an inventory reserve charge of $1.2 million, our gross margin continues to approach 30% despite negative impact from inflation and component cost increases. Our net loss was $4.5 million for Q4 2022 or negative $0.10 per basic and diluted share. This compares with a net loss of $4.1 million or negative $0.09 per basic and diluted share in the third quarter of 2022.

謝謝你，梅胡爾。強烈提醒我，我將介紹的財務數據已在我們的投資者關係網站 ir.minim.com 上發布的收益報告中描述。我們第四季度的淨收入總計 1060 萬美元，比上一季度下降 23.2%，遞延收入從上一季度的 130 萬美元增加到 140 萬美元。我們第四季度的淨銷售額受到消費者需求和實體零售商調整現有庫存的影響。本季度，我們的毛利率為 19.9%，低於上一季度的 22.3%。不包括 120 萬美元的庫存儲備費用，儘管受到通貨膨脹和組件成本增加的負面影響，我們的毛利率繼續接近 30%。我們在 2022 年第四季度的淨虧損為 450 萬美元，即基本股和稀釋後每股虧損 0.10 美元。相比之下，2022 年第三季度的淨虧損為 410 萬美元，或每股基本股和攤薄股負 0.09 美元。

For the quarter, our adjusted EBITDA was negative $3.9 million compared to adjusted EBITDA of negative $3.2 million in the prior quarter. Now for a look at the balance sheet. At the end of the quarter, we had cash and cash equivalents of $1 million, a decrease of $0.9 million compared to the prior quarter. The decrease in cash on a quarter-over-quarter basis was largely driven by paying down $5.3 million in accounts payable and accrued expenses. Inventories decreased to $25.4 million at the close of the quarter compared to $30.3 million at the end of the third quarter. We are focused on returning to 3 to 4 turns a year on our inventory as we monitor our production and inventory levels very closely. We ended the quarter with outstanding debt of $5.8 million, which comprises of $4.8 million from the company's $10 million line of credit and a $1 million bridge loan. This compares with $5.8 million in outstanding debt as of September 30, 2022. As of December 31, 2022, we had $38,000 in availability on the credit line.

本季度，我們調整後的 EBITDA 為負 390 萬美元，而上一季度調整後的 EBITDA 為負 320 萬美元。現在看看資產負債表。本季度末，我們擁有現金和現金等價物 100 萬美元，比上一季度減少 90 萬美元。現金環比減少主要是由於支付了 530 萬美元的應付賬款和應計費用。與第三季度末的 3030 萬美元相比，本季度末庫存下降至 2540 萬美元。由於我們非常密切地監控我們的生產和庫存水平，因此我們專注於每年將庫存恢復到 3 到 4 周轉。本季度末，我們的未償債務為 580 萬美元，其中包括來自公司 1000 萬美元信貸額度的 480 萬美元和一筆 100 萬美元的過橋貸款。相比之下，截至 2022 年 9 月 30 日，未償債務為 580 萬美元。截至 2022 年 12 月 31 日，我們的可用信貸額度為 38,000 美元。

Lastly, on March 28, 2023, our shareholders approved the Board to move forward with a reverse stock split. The ratio will be anywhere from 10:1 to 25:1 the reverse stock split is primarily intended to increase the market price per share of the company's common stock to regain compliance with the continued listing requirements of the NASDAQ Capital Market. That concludes my financial remarks. With that, operator, I would like to open the lines for questions.

最後，在 2023 年 3 月 28 日，我們的股東批准董事會推進反向股票分割。該比例將從 10:1 到 25:1 不等。反向股票拆分的主要目的是提高公司普通股的每股市場價格，以重新符合納斯達克資本市場的持續上市要求。我的財務評論到此結束。有了這個，接線員，我想打開問題熱線。

(Operator Instructions) Our first question today comes from Tim Savageaux from Northland Capital Markets.

（操作員說明）我們今天的第一個問題來自 Northland Capital Markets 的 Tim Savageaux。

A couple of questions. You mentioned some cost reduction efforts in a path toward profitability. I wonder if you could give us a sort of timeline and maybe a revenue level where you feel like that could be achieved and whether that could be achieved in calendar '23 here? And then maybe somewhat related to that, as you look at the year ahead, do you -- how do you feel about the growth prospects of the company in '23 overall? And where would you say we were in terms of this inventory correction on the brick-and-mortar side?

幾個問題。您提到了在實現盈利的道路上進行的一些成本削減工作。我想知道您是否可以給我們一個時間表，也許可以給我們一個您認為可以實現的收入水平，以及是否可以在日曆 '23 中實現？然後可能與此有關，當你展望未來的一年時，你對公司在 23 年的整體增長前景有何看法？你會說我們在實體方面的庫存調整方面處於什麼位置？

This is Mehul. Thanks for the question. And let me get into I think the first question was around [workforce] reduction. So the workforce reductions have already been implemented. They are executed and closed as of end of this quarter. So we anticipate the savings effective April 1 and go forward, including all the restructuring cost has all been booked at this point into the Q1 numbers. So going forward, that should result into future savings that we mentioned around roughly 20% annualized. So that's one aspect so that's already been done.

這是梅爾。謝謝你的問題。讓我談談我認為第一個問題是關於[勞動力]減少。因此，裁員已經實施。截至本季度末，它們已執行並關閉。因此，我們預計節省的資金將從 4 月 1 日起生效，並繼續向前推進，包括所有重組成本此時都已計入第一季度的數字。因此，展望未來，這應該會導致我們提到的未來年化節省大約 20%。所以這是一方面，所以已經完成了。

The second question I think you had was around the growth of the company and where do we see it? So we do have, as I mentioned on the call, first and foremost is the execution of our software strategy that we continue to deliver, we are on path to deliver our first release of Support Plus in Q2, late Q2 and then the other solutions on top, which will help us through the bundle going into '24, all those will be incremental revenue streams that we don't have today. It also allows us to review on our hardware margins and improve our hardware margins along the line as well.

我想你的第二個問題是關於公司的發展，我們在哪裡看到它？因此，正如我在電話會議上提到的，我們確實有，首先也是最重要的是我們繼續交付的軟件戰略的執行，我們正準備在第二季度、第二季度末交付我們的第一個 Support Plus 版本，然後是其他解決方案最重要的是，這將幫助我們完成進入 24 世紀的捆綁銷售，所有這些都將成為我們今天所沒有的增量收入流。它還使我們能夠審查我們的硬件利潤率，並同時提高我們的硬件利潤率。

In terms of growth of the company, we have a full year of our e-comm channels, may it be Walmart, may it be Shopify, may it be Motorola our direct sales to consumer that we have. All those we executed towards second half of the year last year, we have a full year of growth. Last year, we also had our brick-and-mortar where they took their inventory down from anywhere from 15 weeks on hand down to 4 weeks on hand, I think we're past all that, and we're starting to build them back up. We're now -- I don't think we'll ever be at 15 again, but we'll be closer to 4 to 6 to 7 weeks, and we'll continue to manage that. I think that's where some of the other growth and the places that we have won that I mentioned on the call also will help with the incremental volume that we didn't have last year.

就公司的增長而言，我們有一整年的電子商務渠道，可能是沃爾瑪，可能是 Shopify，可能是摩托羅拉，我們直接面向消費者銷售。去年下半年我們執行的所有這些，我們都有全年的增長。去年，我們也有我們的實體店，他們將庫存從 15 週減少到 4 週，我認為我們已經過去了，我們開始重建它們向上。我們現在——我不認為我們會再次達到 15 週，但我們將接近 4 到 6 到 7 週，我們將繼續管理它。我認為這就是我在電話會議上提到的其他一些增長和我們贏得的地方也將有助於增加我們去年沒有的數量。

And we still have a few other accounts to close this year that we feel highly confident that we'll be able to get them done here in the near future as well. So those are all the places where I believe they will help us grow with where we are from this year to next year. I should say, last year to this year. Sorry.

今年我們還有其他一些賬戶要關閉，我們非常有信心在不久的將來也能在這裡完成它們。所以這些都是我相信它們將幫助我們從今年到明年的地方成長的地方。應該說，去年到今年。對不起。

Got it. Well, with that in mind, following up, given where we are from a time perspective. Any commentary on how Q1 has shaped up?

知道了。好吧，考慮到這一點，從時間的角度考慮我們所處的位置。關於 Q1 如何形成的任何評論？

That's the new one to take that. But overall, I think Q1 is anticipated to be where we initially had forecasted internally with our Board. We're still waiting for, of course, the month of March to close, and we'll see how we land. But as of right now, not seeing any major surprises that we weren't anticipating.

這是新來的人。但總的來說，我認為第一季度預計將達到我們最初與董事會內部預測的水平。當然，我們仍在等待 3 月份結束，我們將拭目以待。但截至目前，沒有看到任何我們沒有預料到的重大驚喜。

Right, exactly. At the same time, too, our cost level was still -- historical cost level was still embedded in Q1, as Mehul mentioned. So as we exit through Q1 we'll see that improvement by Q1 will probably be more reflective of what we've seen in the past.

沒錯，沒錯。同時，正如 Mehul 提到的那樣，我們的成本水平仍然存在——歷史成本水平仍然嵌入在第一季度。因此，當我們退出第一季度時，我們將看到第一季度的改善可能更能反映我們過去所看到的情況。

(Operator Instructions)

（操作員說明）

And our next question comes from [Donald Rosenfeld].

我們的下一個問題來自 [Donald Rosenfeld]。

My question is, at what point do you see the company become making a profit -- coming through with the profit? What's the time period that you anticipate that possibility could happen.

我的問題是，您認為公司在什麼時候開始盈利——實現盈利？您預計這種可能性發生的時間段是什麼時候？

Yes. Donald. Thanks for the question. And based on everything that we have done for what we were pushing for this year, we knew we had to do something around the reduction in staff, so aligned with our portfolio and our line. We've also done everything in terms of product portfolio and the new revenue streams, which allow us to get higher gross margins and remove some of the sum costs that we were had with realigning our portfolio. But we're doing everything in terms of trying to get there before end of the year, but that's again something that was our goal as always to improve our profitability going down the path, but we're taking every measure in the meantime to execute our road to get there.

是的。唐納德。謝謝你的問題。基於我們為今年推動的目標所做的一切，我們知道我們必須圍繞裁員做些事情，以便與我們的產品組合和產品線保持一致。我們還在產品組合和新的收入來源方面做了一切，這使我們能夠獲得更高的毛利率，並消除了我們在重新調整產品組合時產生的一些總成本。但我們正在盡一切努力在年底前實現目標，但這又是我們的目標，一如既往地提高我們的盈利能力，但同時我們正在採取一切措施來執行我們到達那裡的道路。

What do you -- where do you see that happening? When do you see that happening?

你怎麼看——你在哪裡看到這種情況發生？你什麼時候看到這種情況發生？

So our goal is still in the second half of the year right now to get there by second half of the year.

所以我們的目標現在仍然是下半年，到今年下半年達到目標。

(Operator Instructions) Our next question comes from [Charlie Lucero from GTM].

（操作員說明）我們的下一個問題來自 [來自 GTM 的 Charlie Lucero]。

Excellent job on obviously selling some of your inventory and getting it down. I just have 2 questions, and hopefully, you can just put some color on it. The first question is the inventory that's left. Is it still marketable? -- meaning I know technology change is fast, and I know that you guys have a decent amount of inventory left -- do you guys see any of that being obsolete? Or is it basically still marketable and sellable at current market prices? And the next question I have, obviously, would be the contract with Motorola. I know that you guys have a contract in front of you with them and I know what closes for numerous years, there is a large amount of money that's kicked back to them for a part of the revenue that you guys sell. Is that still in place? Or are you guys in a position where you can renegotiate that going forward?

很明顯賣掉你的一些存貨並把它降下來，做得很好。我只有 2 個問題，希望您可以在上面添加一些顏色。第一個問題是剩餘的庫存。還能上市嗎？ -- 意思是我知道技術變化很快，而且我知道你們還有相當數量的存貨 -- 你們看到其中的任何東西已經過時了嗎？還是以現在的市場價格，基本上還是有銷路、有銷路的？顯然，我的下一個問題是與摩托羅拉的合同。我知道你們面前有一份與他們的合同，我知道多年來關閉的是什麼，你們出售的部分收入有大量資金回饋給他們。那還在嗎？或者你們是否處於可以重新談判的位置？

[Charlie], thanks for the questions. And I'll let Dustin kind of chime in initially and then I can jump back in as well.

[查理]，感謝您的提問。一開始我會讓 Dustin 插話，然後我也可以跳回去。

Yes. So just address the Motorola agreement. So that is a fixed contract until 2025. If there's opportunity to negotiate earlier, I'm sure we will take advantage of it. And then obviously, it's beneficial to us at this time as we are selling underneath the Motorola branded name. So we do have a lot of -- and there's a lot of benefits through the Motorola arrangement. They have -- when it comes to manufacturing and product the contract manufacturers that we rely on have to go through a very stringent quality tests to ensure the products that are released out into market, meet certain standards, don't have any material issues in the long run. So that's an arrangement or a relationship that's been beneficial to us as a company.

是的。所以只需解決摩托羅拉協議。所以這是一份到 2025 年的固定合同。如果有機會提前談判，我相信我們會利用它。然後很明顯，這對我們有利，因為我們在摩托羅拉品牌下銷售。所以我們確實有很多 - 通過摩托羅拉的安排有很多好處。他們有——在製造和產品方面，我們依賴的合同製造商必須經過非常嚴格的質量測試，以確保投放市場的產品符合特定標準，沒有任何實質性問題從長遠來看。所以這是一種對我們公司有利的安排或關係。

Yes. And I'll add on top of that. stand your other question was around anything about inventory being obsolete. For most of our inventory that we still have is good inventory. And there's no end of life in near-term for anything from DOCSIS portfolio that we do have on hand. Everything is still valid in terms of the saleable inventory for not only this year but years to come, even after WiFi 7 and DOCSIS 4.0, which is I want to say DOCSIS 4.0 is at least 2 to 3 years away at this point. So there is plenty of time for us to continue to sell. I believe most of our inventory that we do have on hand, which is long inventory, we'll be able to rid of it at the end of this year based on our current forecast that we have. So we feel confident that we should be able to continue to drive that inventory down to required number that we want before end of this year. But again, I'm not worried about any absolute inventory in those numbers.

是的。我還要補充一點。你的另一個問題是關於庫存過時的任何問題。對於我們仍然擁有的大部分庫存來說，都是好的庫存。我們手頭上的 DOCSIS 產品組合中的任何東西在短期內都不會過時。不僅在今年而且在未來幾年，就可售庫存而言，一切仍然有效，即使在 WiFi 7 和 DOCSIS 4.0 之後，我想說 DOCSIS 4.0 在這一點上至少還有 2 到 3 年的時間。所以我們有足夠的時間繼續銷售。我相信我們手頭的大部分庫存都是長期庫存，根據我們目前的預測，我們將能夠在今年年底擺脫它。因此，我們相信我們應該能夠在今年年底之前繼續將庫存降低到我們想要的數量。但同樣，我並不擔心這些數字中的任何絕對庫存。

Great. And the final question would be, obviously, you guys are still negotiating a new loan structure. Do you feel that loan structure will take you guys through getting into even cash flow positive as far as getting a new capital raise, meaning do you need more capital going forward? Or is that on loan going to help you get through that mess?

偉大的。最後一個問題顯然是，你們仍在談判新的貸款結構。你覺得貸款結構會讓你們在獲得新的融資方面獲得甚至為正的現金流，這意味著你們需要更多的資金嗎？還是貸款會幫助您度過難關？

Dustin, do you want to answer that?

達斯汀，你想回答這個問題嗎？

Yes. So there's no consideration for capital raise at this point in time. Obviously, the focus of this business as we write the balance sheet and we write the P&L. The focus, obviously, and the retention of all of it is to get to cash flow positive. We do intend to get there. We expect to get there this year. And so obviously, we've worked on our AP, we worked on our inventory, and we're working on our cash now. So it's all come into that one direction as we try write our financial statements.

是的。所以目前還沒有考慮融資。顯然，在我們編寫資產負債表和編寫損益表時，這項業務的重點。顯然，重點和所有這些的保留是為了獲得正現金流。我們確實打算到達那裡。我們希望今年能到達那裡。很明顯，我們已經在我們的 AP 上工作，我們在我們的庫存上工作，我們現在正在研究我們的現金。因此，當我們嘗試編寫財務報表時，一切都朝著一個方向發展。

Great. Excellent job, gentlemen. Keep up the good work. Hopefully, it all pays off for everybody.

偉大的。幹得好，先生們。保持良好的工作。希望這一切對每個人都有回報。

Thank you.

謝謝。

Thank you.

謝謝。

And ladies and gentlemen, with that, we will conclude today's question-and-answer session as well as today's conference call. We thank you for joining today's presentation. You may now disconnect your lines.

女士們，先生們，我們將結束今天的問答環節和今天的電話會議。我們感謝您參加今天的演講。您現在可以斷開線路。

Thank you.

謝謝。