Greenlane Holdings Inc (GNLN) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to today's conference call to discuss Greenlane Holdings' second quarter financial results. A press release detailing the financial results for the quarter ended June 30, 2023, was distributed today and is available on the Investor Relations section of the Greenlane website at investor.gnln.com.

下午好，歡迎參加今天的電話會議，討論 Greenlane Holdings 第二季財務表現。今天發布了一份新聞稿，詳細介紹了截至 2023 年 6 月 30 日的季度財務業績，可在 Greenlane 網站 investor.gnln.com 的投資者關係部分查閱。

As a reminder, today's conference is being recorded. A replay of this call as well as a copy of the supplemental earnings slides will be archived on the company's IR website at investor.gnln.com.

提醒一下，今天的會議正在錄製中。本次電話會議的重播以及補充收益投影片的副本將存檔在該公司的 IR 網站 investor.gnln.com 上。

On the call today are Craig Snyder, Chief Executive Officer; and Lana Reeve, Chief Financial and Legal Officer.

今天參加電話會議的有執行長 Craig Snyder；以及首席財務和法律官拉娜·里夫 (Lana Reeve)。

Before we begin, Greenlane would like to remind listeners that today's prepared remarks may contain forward-looking statements and the management may make additional forward-looking statements in response to the questions received. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties and other factors discussed in today's press release.

在我們開始之前，Greenlane 想提醒聽眾，今天的準備好的評論可能包含前瞻性陳述，管理層可能會針對收到的問題做出額外的前瞻性陳述。這些聲明並不保證未來的表現，因此，不應過度依賴它們。這些聲明是基於公司管理層目前的預期，涉及固有風險和不確定性以及今天的新聞稿中討論的其他因素。

This call also contains time-sensitive information that speaks only as of the date of this live broadcast, August 14, 2023. Factors that could cause Greenlane's results to differ materially are set forth in today's press release and in Greenlane's quarterly report on Form 10-Q filed with the SEC. Any forward-looking statements made today on this call are based on assumptions as of today, and Greenlane assumes no obligation to update these statements as a result of new information or future events.

本次電話會議也包含僅截至本次直播之日（2023 年 8 月 14 日）的時間敏感資訊。可能導致 Greenlane 業績出現重大差異的因素已在今天的新聞稿和 Greenlane 向美國證券交易委員會提交的 10-Q 表季度報告中列出。今天在本次電話會議上做出的任何前瞻性陳述均基於今天的假設，Greenlane 不承擔因新資訊或未來事件而更新這些陳述的義務。

During today's call, Greenlane management may discuss non-GAAP financial measures, including adjusted SG&A and adjusted EBITDA. Greenlane has included a reconciliation of these non-GAAP measures in today's press release, which is available in the Investor Relations section of the company's website at investor.gnln.com.

在今天的電話會議上，Greenlane 管理層可能會討論非 GAAP 財務指標，包括調整後的 SG&A 和調整後的 EBITDA。 Greenlane 在今天的新聞稿中對這些非 GAAP 指標進行了調節，您可以在公司網站 investor.gnln.com 的投資者關係部分找到新聞稿。

I would now like to turn the call over to Mr. Craig Snyder, Chief Executive Officer of Greenlane. Please go ahead, Craig.

現在我想將電話轉給 Greenlane 執行長 Craig Snyder 先生。請繼續，克雷格。

Hello, everyone, and thank you for attending our second quarter 2023 earnings call. During Q2, we made strides at each of the key segments to our business, including our focus on profitability and advancing our house of brands with new and innovative products. Quarterly revenue declined from Q1 to Q2 2023 by $4.3 million. The quarter-over-quarter decrease was primarily driven by a $1.8 million decrease in the consumer goods segment and a decrease in the industrial segment of $2.5 million overall.

大家好，感謝您參加我們的 2023 年第二季財報電話會議。在第二季度，我們在每個關鍵業務領域都取得了長足進步，包括專注於獲利能力以及透過新的創新產品來推進我們的品牌建設。 2023 年第二季季度營收較第一季下降 430 萬美元。環比下降主要是由於消費品部門減少 180 萬美元以及工業部門整體減少 250 萬美元。

The decline can be attributed to 3 factors: The expected seasonality change from Q1 to Q2 where the business has historically had a more modest quarter than Q1; a shift in parts of our business model from gross to net recognition and the restructuring of our packaging group, consistent with our partnership with A&A Global Marijuana Packaging.

下降可以歸因於 3 個因素：預期從第一季度到第二季度的季節性變化，而從歷史上看，該業務第二季度的表現比第一季度更為溫和；我們的部分業務模式從總額確認轉向淨額確認，並重組了我們的包裝集團，這與我們與 A&A Global Marijuana Packaging 的合作關係一致。

As our agreement intensifies in the industrial space with significant revenue being recognized on a net basis versus gross, we do expect revenues to moderate and margins to increase related to that activity, which will accelerate in Q3.

隨著我們在工業領域的協議不斷加強，大量收入以淨額而非總額確認，我們確實預計收入將會放緩，利潤率將會提高，而這一增長將在第三季度加速。

In a return to our roots, we feel very encouraged by our new products and partnerships in the e-cigarette nicotine space and expect those advances to have substantial impact on the business in the coming months. The business continues to attract new partners in the MSO space based on our continued execution, and we remain bullish by the expansion of many MSOs purchasing in our consumer segment.

回歸本源，我們對電子煙尼古丁領域的新產品和合作夥伴關係感到非常鼓舞，並預計這些進步將在未來幾個月對業務產生重大影響。基於我們持續的執行，該業務繼續吸引 MSO 領域的新合作夥伴，並且我們對許多 MSO 在我們的消費者領域的採購擴張保持樂觀。

We have reduced our total operating expenses from $15 million in Q1 to $14.1 million in Q2, respectively, a reduction of $900,000. We expect these reductions to accelerate in Q3, showing us substantial reductions as we have aggressively attacked expenses related to facilities, professional fees and technology.

我們已將總營運費用從第一季的 1,500 萬美元減少到第二季的 1,410 萬美元，減少了 90 萬美元。我們預計這些削減將在第三季加速，並顯示出大幅削減，因為我們積極削減了與設施、專業費用和技術相關的費用。

We have completed consolidation of eight of our facilities, including our former third-party logistics partner, Verst. The facility's line item alone is anticipated to save the company more than $4 million annually, and we believe, through our own management, give customers a better experience with Greenlane. We have similar initiatives being executed in technology and professional services, and we expect to continue to realize those savings over the next 2 quarters.

我們已經完成了八個設施的整合，包括我們以前的第三方物流合作夥伴 Verst。預計僅此設施的專案每年就能為公司節省超過 400 萬美元，我們相信，透過我們自己的管理，可以讓客戶在 Greenlane 獲得更好的體驗。我們在技術和專業服務領域也實施了類似的舉措，我們預計在接下來的兩個季度繼續實現這些節約。

Labor-related expenses decreased from $5.4 million to $5.2 million quarter-over-quarter. For the 6 months ended June 30, labor-related expenses decreased a significant $8.4 million from $18.9 million in 2022 to $10.5 million in 2023. Labor is another area where the business has become more efficient, and we expect continued reductions in both headcount and overall cost of labor.

勞動力相關費用較上季從 540 萬美元減少至 520 萬美元。截至 6 月 30 日的 6 個月內，與勞動力相關的費用大幅減少了 840 萬美元，從 2022 年的 1,890 萬美元減少到 2023 年的 1,050 萬美元。勞動力是業務效率提高的另一個領域，我們預期員工人數和整體勞動力成本都將繼續減少。

In Q2, we had charges related to severance of 2 former senior executives, which clouded the gains we have made in overall cost of labor. These 2 agreements represented more than 12% of the overall labor number in Q2 and are onetime in nature. We expect overall cost of labor to continue to reduce aggressively and are focused on labor structure that brings the business to profitability.

在第二季度，我們產生了與解僱兩名前高階主管相關的費用，這給我們在整體勞動成本方面取得的收益蒙上了陰影。這2份協議佔第二季整體勞動力數量的12%以上，且屬於一次性協議。我們預計整體勞動成本將繼續大幅下降，並專注於為企業帶來獲利的勞動力結構。

Overall, G&A decreased from $7.7 million in Q1 to $7 million in Q2. For the 6 months ended June 30, G&A decreased 34% or $7.5 million from $22.3 million in 2022 to $14.8 million in 2023. As leadership as previously stated, our goal is to bring costs in line with the gross profit to create a profitable, durable business. Expense adjustments in our portfolio are often lagging indicator as we continue to make active and aggressive changes to the company's expense profile. This quarter, we had meaningful consolidation costs from the multiple facility closures. These costs were onetime in nature, and we expect overall expenses to continue to reduce as we manage them aggressively.

總體而言，G&A 費用從第一季的 770 萬美元下降至第二季的 700 萬美元。截至 6 月 30 日的 6 個月內，G&A 費用從 2022 年的 2,230 萬美元下降 34% 或 750 萬美元至 2023 年的 1,480 萬美元。正如領導層之前所述，我們的目標是使成本與毛利保持一致，以創造一個盈利且持久的業務。由於我們不斷對公司的費用狀況進行積極和積極的改變，我們投資組合中的費用調整往往是落後指標。本季度，我們因關閉多家工廠而產生了重大的整合成本。這些成本本質上是一次性的，我們預計，隨著我們積極管理這些成本，整體費用將繼續減少。

Gross margins improved slightly from 23% in Q1 to 23.3% in Q2 2023. We are pleased that margins are slightly improved quarter-over-quarter as we initiate our new asset-light programs, which will provide net revenue recognition and should improve overall margin performance. Of note, for the 6 months ended June 30, margins improved significantly from 16.3% in 2022 to 23.2% in 2023.

毛利率從第一季的 23% 略微提高至 2023 年第二季的 23.3%。我們很高興看到利潤率環比略有提高，因為我們啟動了新的輕資產計劃，這將提供淨收入確認，並應能提高整體利潤率表現。值得注意的是，截至 6 月 30 日的 6 個月，利潤率從 2022 年的 16.3% 大幅提高至 2023 年的 23.2%。

Let's move to innovation next. This quarter, we launched 5 new products from our house brands. In addition to the Eyce ORAFLEX line with the rig, a new line of Groove Glass, the Groove Micro Rigs and a limited edition Spoon Pipe. From DaVinci, we brought a new colorway to market in the MIQRO-C line, along with the Artiq, the newest premium portable vaporizer, offering DaVinci's clean technology in the convenience of a 510 oil compatible vaporizers. The Artiq has garnered a lot of popularity and critical acclaim in a short period of time.

接下來讓我們討論創新。本季度，我們推出了 5 款自有品牌新產品。除了帶有鑽孔機的 Eyce ORAFLEX 系列外，還有新系列的 Groove Glass、Groove Micro Rigs 和限量版 Spoon Pipe。我們在 DaVinci 的 MIQRO-C 系列中推出了一種新配色，同時也推出了最新的高級便攜式蒸發器 Artiq，在 510 油兼容蒸發器的便利性中提供了 DaVinci 的清潔技術。 Artiq 在短時間內獲得了極高的人氣和好評。

We also announced our expansion of products to include disposable nicotine offerings. This is part of our strategic vision as a leader in the market to diversify our product portfolio. With the total addressable U.S. market exceeding $6 billion annually and expect it to grow at a compound annual rate exceeding 11%, disposable nicotine products have a significant impact on our customer revenues. We identified industry-leading partners, manufacturers and brands to capitalize on our expansion into the nicotine industry, including Fume, Death Row Vapes, Packspod and Tyson 2.0.

我們也宣布擴大產品範圍，包括一次性尼古丁產品。這是我們作為市場領導者實現產品組合多樣化的策略願景的一部分。美國可尋址市場總額每年超過 60 億美元，預計年複合成長率將超過 11%，一次性尼古丁產品對我們客戶的收入有重大影響。我們確定了業界領先的合作夥伴、製造商和品牌，以利用我們向尼古丁產業的擴張，包括 Fume、Death Row Vapes、Packspod 和 Tyson 2.0。

And finally, in strategic direction in order to make the business more scalable, leverageable and durable, we recently announced the payoff of our previously existing facility with Whitehawk Capital. The business was able to pay off this $15 million facility prior to the first anniversary date, and we believe by doing so, allows us much more authority over our future.

最後，在策略方向上，為了使業務更具可擴展性、可利用性和持久性，我們最近宣布了與 Whitehawk Capital 合作的現有設施的回報。公司能夠在第一個週年紀念日之前償還這筆 1500 萬美元的貸款，我們相信這樣做可以讓我們對自己的未來有更多的掌控權。

I'll now turn it over to Lana to run through our financial results in further detail.

現在我將把時間交給拉娜來更詳細地介紹我們的財務結果。

Thanks, Craig, and hello, everyone. Thank you for joining us on the call today. As a reminder, the results I will be reviewing for you today can be found in our earnings release that is available on EDGAR and the Investor Relations section of our website at investor.gnln.com.

謝謝，克雷格，大家好。感謝您今天參加我們的電話會議。提醒一下，我今天將為您審查的結果可以在我們的收益報告中找到，該報告可在 EDGAR 和我們網站 investor.gnln.com 的投資者關係部分找到。

For the second quarter of 2023, total net sales were $19.6 million compared to approximately $24 million for the 3 months ended March 31, 2023, representing a decrease of $4.3 million or 18.1%. The quarter-over-quarter decrease was primarily driven by a decrease in the consumer goods segment of $1.8 million or 23% decrease, and a decrease in the industrial segment of $2.5 million or a 16% decrease. This compares to the company's reported $39.9 million in total net sales for the second quarter of 2022, representing a decrease of $20.3 million or 51% decrease year-over-year.

2023 年第二季度，總淨銷售額為 1,960 萬美元，而截至 2023 年 3 月 31 日的三個月約為 2,400 萬美元，減少 430 萬美元，降幅為 18.1%。環比下降主要由於消費品部門減少 180 萬美元（降幅 23%），工業部門減少 250 萬美元（降幅 16%）。相比之下，該公司報告的 2022 年第二季總淨銷售額為 3,990 萬美元，年減 2,030 萬美元，降幅達 51%。

Year-to-date, total net sales were $43.6 million compared to $86.5 million, representing a decrease of $42.9 million or 49.6%. The decrease is related to the management initiatives and change in revenue strategies mentioned previously. For the second quarter of 2023, gross profit was $4.6 million compared to $5.5 million for the prior quarter, representing a decrease of $900,000 or 17%. Gross margin was relatively flat, increasing by 0.3% to 23.3% for Q2 2023 compared to a gross margin of 23% for the prior quarter.

年初至今，總淨銷售額為 4,360 萬美元，而去年同期為 8,650 萬美元，減少了 4,290 萬美元，降幅為 49.6%。這一下降與前面提到的管理措施和收入策略的變化有關。 2023 年第二季毛利為 460 萬美元，而上一季為 550 萬美元，減少 90 萬美元，降幅為 17%。毛利率相對持平，2023 年第二季毛利率為 23%，較上一季的 23% 成長 0.3% 至 23.3%。

The company reported gross profit of $4.6 million and gross margin of 23.3% for Q2 2023 compared to $8.1 million and a gross margin of 20.3% for Q2 2022. The increase is related to Q2 2022 inventory write-offs of damaged and obsolete inventory of $2.1 million compared to no write-offs in Q2 2023.

該公司公佈，2023 年第二季毛利為 460 萬美元，毛利率為 23.3%，而 2022 年第二季毛利為 810 萬美元，毛利率為 20.3%。這一增長是由於 2022 年第二季度損壞和過時庫存的註銷金額為 210 萬美元，而 2023 年第二季度沒有註銷。

Year-to-date, gross profit was $10.1 million and gross margin of 23.2% compared to $14.1 million and 16.3% for the 6 months ended June 30, 2022. The 6.9% increase in gross margin is related to year-to-date 2022 inventory write-offs of damaged and obsolete inventory of $7.2 million compared to only $0.6 million for year-to-date 2023.

年初至今，毛利為 1,010 萬美元，毛利率為 23.2%，而截至 2022 年 6 月 30 日的 6 個月毛利為 1,410 萬美元，毛利率為 16.3%。毛利率成長 6.9% 與 2022 年年初至今的損壞和過時庫存註銷 720 萬美元有關，而 2023 年年初至今僅為 60 萬美元。

Total operating expenses decreased $900,000 for Q2 2023 to $14.1 million compared to $15 million for the prior quarter. The decrease is a result of cost reduction throughout the quarter, which were related to our ongoing corporate initiatives to reduce operating spend as a percentage of revenue. Total operating expenses decreased by approximately $7.7 million or 35.2% to $14.1 million for the 3 months ended June 30, 2023, compared to $21.8 million for the same period in 2022.

2023 年第二季總營運費用減少 90 萬美元至 1,410 萬美元，而上一季為 1,500 萬美元。這一下降是由於整個季度的成本削減，這與我們持續的企業措施有關，即降低營運支出佔收入的百分比。截至 2023 年 6 月 30 日的 3 個月，總營運費用為 1,410 萬美元，較 2022 年同期的 2,180 萬美元減少約 770 萬美元（即 35.2%）。

The decrease is related to a greater than 50% reduction in workforce and a major restructuring effort by the company to rightsize the business and focus on profitability. Year-to-date, total operating expenses decreased by approximately $16.7 million or 36.3% to $29.3 million, comparing favorably to the $46 million in the first 6 months ending June 30, 2022.

此次下降是由於公司裁員 50% 以上以及進行重大重組以調整業務規模並注重盈利能力所致。年初至今，總營運費用減少約 1,670 萬美元（即 36.3%）至 2,930 萬美元，與截至 2022 年 6 月 30 日的前 6 個月的 4,600 萬美元相比有所改善。

Net loss for Q2 2023 was $10.5 million compared to a loss of $10.2 million for the prior quarter. Net loss attributable to Greenlane Holdings, Inc. was $10.5 million or $6.56 per share, basic and diluted, compared to a loss of $10.2 million or $6.40 per share, basic and diluted, for the prior quarter. This compares to the company's reported net loss of $14.5 million and a net loss attributable to Greenlane Holdings, Inc. of $12.1 million or $22.70 per basic and diluted share for the second quarter of 2022.

2023 年第二季淨虧損為 1,050 萬美元，而上一季淨虧損為 1,020 萬美元。歸屬於 Greenlane Holdings, Inc. 的淨虧損為 1,050 萬美元，即每股 6.56 美元（基本虧損和稀釋虧損），而上一季的淨虧損為 1,020 萬美元，即每股 6.40 美元（基本虧損和稀釋虧損）。相比之下，該公司報告的 2022 年第二季淨虧損為 1,450 萬美元，歸屬於 Greenlane Holdings, Inc. 的淨虧損為 1,210 萬美元，即每股基本虧損和稀釋虧損均為 22.70 美元。

Year-to-date, net loss for the 6 months ended June 30, 2023, was $20.8 million compared to a loss of $33.2 million for the 6 months ended June 30, 2022. Net loss attributable to Greenlane Holdings, Inc. was $20.7 million or $12.96 per share, basic and diluted, compared to a loss of $27.5 million or $55.70 per share, basic and diluted, for the 6 months ended June 30, 2022. Adjusted EBITDA loss for Q2 2023 was $5.9 million compared to a loss of $6.8 million for the prior quarter.

年初至今，截至 2023 年 6 月 30 日的 6 個月淨虧損為 2,080 萬美元，而截至 2022 年 6 月 30 日的 6 個月虧損為 3,320 萬美元。歸屬於 Greenlane Holdings, Inc. 的淨虧損為 2,070 萬美元，即基本和稀釋後每股虧損 12.96 美元，而截至 2022 年 6 月 30 日的 6 個月淨虧損為 2,750 萬美元，即基本和稀釋後每股虧損 55.70 美元。 2023 年第二季調整後 EBITDA 虧損為 590 萬美元，上季虧損為 680 萬美元。

On the balance sheet, we ended the second quarter with $4.7 million in total cash and working capital of $14.2 million compared to $5.9 million in total cash and working capital of $25.7 million as of March 31, 2023. The company continues to reduce the working capital cycle focused on operating more efficiently with lower inventory levels. We ended the quarter with $29.8 million in net inventories versus $37 million as of March 31, 2023. The company continues to focus on improving cash flow from operations and managing existing debt.

在資產負債表上，我們在第二季末的總現金為 470 萬美元，營運資本為 1,420 萬美元，而截至 2023 年 3 月 31 日的總現金為 590 萬美元，營運資本為 2,570 萬美元。公司繼續縮短營運資本週期，專注於在降低庫存水準的情況下提高營運效率。本季末，我們的淨庫存為 2,980 萬美元，而截至 2023 年 3 月 31 日為 3,700 萬美元。公司繼續專注於改善經營現金流和管理現有債務。

With that, I'll now turn it back over to Craig.

說完這些，我現在將發言權交還給 Craig。

Despite revenue decline quarter-over-quarter, we continue to show positive steps toward profitability. The company's strategic initiatives, focused on innovation and effective cost management strategies continue to improve and position it for future growth. We continue to make progress on our road map for profitability.

儘管收入環比下降，但我們仍在朝著盈利的方向邁出積極的步伐。該公司的策略性舉措專注於創新和有效的成本管理策略，不斷改進並為未來的成長做好準備。我們在獲利路線圖上繼續取得進展。

Thank you for your time today, and we look forward to your questions. I will now turn it back over to the operator to begin Q&A.

感謝您今天的時間，我們期待您的提問。現在我將把話題交還給操作員開始問答。

(Operator Instructions) The first question comes from Aaron Grey with Alliance Global Partners.

（操作員指示）第一個問題來自 Alliance Global Partners 的 Aaron Grey。

So first question for me. Obviously, you guys have done a lot of things in terms of changing the business around, working towards profitability with more of an asset-light model. Just if you could help kind of paint a picture how that path to profitability might look?

所以我的第一個問題是。顯然，你們在改變業務方面做了很多事情，致力於透過輕資產模式來實現盈利。您能否幫我描繪一下獲利之路是什麼樣的？

It looks like you're going to start having some of the improved gross margins with some of the asset-light things you guys have now in place. You also have the nicotine sales coming in. So if you could talk about how that margin base is going to be? And just whether or not we should be looking for meaningful sales growth to be needed for you to reach that profitability? Or if the gross margin improvement with asset-light model in tandem with the cost cuts will be enough to get you there?

看起來，透過你們現在實施的一些輕資產舉措，你們的毛利率將會有所提高。您還獲得了尼古丁銷售額。能談談利潤基數是多少嗎？我們是否應該尋求有意義的銷售成長來獲利？或者輕資產模式帶來的毛利率提高與成本削減是否足以幫助您實現這一目標？

Aaron, thank you for the question. I think it's a combination of 2 things. One, on the expense side, I think you will see the key cuts accelerate as I think we've made a lot of the adjustments we need to make, but some of those adjustments are bound by either contractual elements or leases. And you'll see those things decrease significantly Q3 and Q4.

亞倫，謝謝你的提問。我認為這是兩件事的結合。首先，在費用方面，我認為你會看到關鍵的削減加速，因為我認為我們已經做出了很多需要做的調整，但其中一些調整受到合約要素或租約的約束。你會發現這些數字在第三季和第四季大幅下降。

And as we mentioned, both as a function of headcount and cost of labor and as also a function of SG&A as there's a lot of elements inside the G&A that just won't be there in Q3 and Q4 that we have today. So we feel good about the -- not only the progress we've made year-to-date, but what we feel like will be the accelerated progress through the remainder of the year.

正如我們所提到的，這既是員工人數和勞動力成本的函數，也是銷售、一般和行政費用的函數，因為銷售、一般和行政費用中有很多元素在我們今天的第三季度和第四季度中不會出現。因此，我們對此感到滿意——不僅因為我們今年迄今所取得的進展，而且我們預計今年剩餘時間的進展還會加快。

On the sales side, there were 2 components to your question. The first was on the asset-light strategy, Q3 is really the first full quarter we'll have the strategy in place, where we were having a lot of pressure on what I'll call cash flow timing before our major manufacturing partner, CCELL, now we'll work with in a way that we think is going to be very beneficial to the business, and we work very closely with them. And we'll recognize those revenues on a net basis.

從銷售方面來說，您的問題包含兩個部分。第一個是關於輕資產策略，第三季度實際上是我們實施該策略的第一個完整季度，在我們的主要製造合作夥伴 CCELL 之前，我們在現金流時間方面面臨著很大的壓力，現在我們將以一種我們認為對業務非常有利的方式與他們合作，我們與他們密切合作。我們將以淨額為基礎確認這些收入。

So I think that's where you see -- you may see some of the revenues moderate, but you will also see the margins increase in those areas. With nicotine and e-cigarettes, we're seeing very, very high demand as we've seen the mix inside what I'll call the Smoke Shop/Vape Shop segment, changed quite a bit to where you used to see a very, very broad assortment of products in that group. And now I think you see a heavy mix of nicotine in that group.

所以我認為這就是你所看到的——你可能會看到一些收入減少，但你也會看到這些領域的利潤率增加。對於尼古丁和電子煙，我們看到了非常非常高的需求，因為我們已經看到我稱之為煙草店/電子煙店的部分內部產品組合發生了很大變化，以前你會看到該類別中的產品種類非常非常廣泛。現在我想你會看到該組中混合了大量尼古丁。

We are hoping to benefit from that, expect to benefit from that on the back half of Q3 in a pretty aggressive way. So it's got a series of forces pushing on expenses, we feel very good about and we're on our path to where we want to be. We feel good about the progress we've made on our asset-light strategy with CCELL and the progress that's shown.

我們希望從中受益，並期望在第三季後半段以相當積極的方式從中受益。因此，有一系列的力量在推動開支，我們對此感覺很好，並且我們正在朝著我們想要的方向前進。我們對與 CCELL 合作實施輕資產策略所取得的進展以及所展現出的進步感到滿意。

We did see some overall weakness, I think, largely driven by seasonality, Q1 to Q2, but we also are launching new products this quarter, and we expect nicotine to give us a nice lift here in the second half of Q3 as well.

我認為，我們確實看到了一些整體疲軟，主要是由於第一季到第二季的季節性因素所致，但我們本季也將推出新產品，我們預計尼古丁也會在第三季下半年給我們帶來不錯的提振。

So there's a number of forces working in different directions. But again, the main goal for us is to get on a clear path to profitability, where our gross profit numbers are starting to match up with our overall SG&A.

因此，有許多力量在朝著不同的方向發揮作用。但同樣，我們的主要目標是走上一條清晰的盈利之路，使我們的毛利數字開始與我們的整體銷售、一般和行政費用相匹配。

That was helpful. And the second question for me, just turning to the traditional business with some of the MSO operators. Have you done this transition and rightly kind of shifted away from some of the packaging as well? How has the initiative to kind of get more of your products within dispensaries, be MSOs or some of the broader, more mom-and-pop dispensaries out there as well? How has that faired? Is that still an initiative that's frontline to you guys or has the asset-light model kind of shifted you away from that for the near term?

這很有幫助。對我來說，第二個問題是與一些 MSO 營運商開展傳統業務。您是否已經完成這一轉變並且正確地放棄了一些包裝？您如何主動將更多的產品推向藥房，無論是 MSO 還是一些更廣泛的夫妻藥房？情況怎麼樣？對你們來說，這是否仍然是一項前沿舉措，還是輕資產模式在短期內會讓你們放棄這項舉措？

No. I mean I think it's accelerated. I think we've seen a couple of things from the MSO segment. One is they're -- cannabis has become, in many places, a mainstream product for mainstream people. And with the dispensaries, they are turning to more, what I'll call, are retail-centric analytics. Those analytics would look like revenue per square foot, attachment rate and average order size.

不，我的意思是我認為它正在加速。我認為我們已經從 MSO 領域看到了一些事情。一是──大麻在許多地方已經成為主流人群的主流產品。對於藥房來說，他們正在轉向更多的，我稱之為以零售為中心的分析。這些分析包括每平方英尺的收入、附著率和平均訂單規模。

And as you know, that their main commodity, cannabis, has been decreasing in price. So I think the merchandising of the dispensary is becoming a more and more important part or an important component of what they do. We are having deeper and deeper conversations for how that looks, and we are one of the few players in the space that can bring the full array of products, whether it's for their processing facility or for their dispensary to bear. So those conversations have aggressively improved, and we expect them to continue to improve Q3 and Q4.

正如你們所知，他們的主要商品大麻的價格一直在下降。因此我認為藥局的商品銷售正在成為他們業務中越來越重要的一部分或重要組成部分。我們正在就其未來發展進行越來越深入的討論，我們是該領域少數能夠提供全系列產品的公司之一，無論是為他們的加工廠還是藥房提供產品。因此，這些對話已經得到了積極改善，我們預計它們將在第三季和第四季繼續改善。

(Operator Instructions) We have no further questions in queue. We have reached the end of the question-and-answer session. I will now turn the call over to Craig Snyder for closing remarks.

（操作員指示）我們沒有其他問題。問答環節已結束。現在我將把電話交給克雷格·斯奈德 (Craig Snyder) 來做結束語。

Thank you all for the call today -- thank you all for making time for the call today. We appreciate everyone's interest. And again, we are excited and are working towards creating a profitable business, and we feel like we've taken meaningful steps in the first 2 quarters of the year to do so.

感謝大家今天的來電－感謝大家今天抽空接聽電話。我們感謝大家的關注。再次強調，我們非常興奮，並正在努力創造一個盈利的業務，我們覺得我們在今年前兩個季度已經為此邁出了有意義的步伐。

Thank you for your time today, and have a good evening.

感謝您今天抽出時間，祝您晚上愉快。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，大家可以斷開連線了。感謝您的參與。