Local Bounti Corp (LOCL) 2025 Q1 法說會逐字稿

Good morning and welcome to Local Bounti's first quarter 2025 earnings conference call.

早安，歡迎參加 Local Bounti 2025 年第一季財報電話會議。

(Operator Instructions)

（操作員指示）

At this time, I'd like to turn the call over to Jeff Sonneck, investor relations at ICR. Please go ahead.

現在，我想將電話轉給 ICR 投資者關係部門的 Jeff Sonneck。請繼續。

Thank you and good morning. Today's presentation will be hosted by local bounties executive Chairman Craig Hurlbert and President, Chief Executive Officer and Chief Financial Officer Kathleen Valiasek. The comments made during today's call contain forward-looking statements within the meaning of the safe harbour provisions of the Private Securities Litigation Reform Act of 1,995.

謝謝，早安。今天的演講將由當地賞金執行主席 Craig Hurlbert 和總裁、執行長兼財務長 Kathleen Valiasek 主持。今天電話會議上發表的評論包含 1995 年《私人證券訴訟改革法》安全港條款所定義的前瞻性陳述。

All statements other than statements of historical facts are considered forward-looking statements. These statements are based on management's current expectations and beliefs, as well as a number of assumptions concerning future events.

除歷史事實陳述之外的所有陳述均被視為前瞻性陳述。這些聲明是基於管理層當前的期望和信念，以及有關未來事件的一系列假設。

Such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking statements. Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC. We'll also refer to certain non-GAAP financial measures today.

此類前瞻性陳述受已知和未知的風險和不確定性的影響，可能導致實際結果與前瞻性陳述中討論的結果有重大差異。該公司在向美國證券交易委員會提交的文件中明確並討論了其中一些風險和不確定性。今天我們也將參考某些非公認會計準則財務指標。

Please refer to the press release, which can be found on our investor relations website, investors.localbounti.com for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures.

請參閱我們的投資者關係網站 investors.localbounti.com 上的新聞稿，以了解非 GAAP 財務指標與最直接可比較的 GAAP 指標的對帳情況。

And with that, I'd now like to turn the call over to Craig. Craig, please go ahead.

現在，我想將電話轉給克雷格。克雷格，請繼續。

Thank you, Jeff, and good morning, everyone. I want to start by taking a moment to express my sincere gratitude.

謝謝你，傑夫，大家早安。首先，我想表達我最誠摯的謝意。

Local Bounti team. The dedication and commitment I've witnessed across the company has been truly remarkable as we navigate this important phase of our company's journey. We have assembled an exceptional group of people who continue to drive our mission forward with passion and focus.

當地的 Bounti 團隊。在我們公司發展歷程的這一重要階段，我親眼目睹了整個公司所展現的奉獻和承諾，這真是令人驚嘆。我們聚集了一群傑出的人才，他們將繼續以熱情和專注推動我們的使命向前發展。

I'm pleased to see the continued validation from our customers whose increasing desire for CEA products reinforces the market opportunity ahead of us.

我很高興看到客戶不斷認可我們，他們對 CEA 產品日益增長的需求增強了我們面臨的市場機會。

The foundation we've built over these past years has positioned local bounty to achieve positive adjusted EBITDA in the near term, and I'm confident that under Cathy's leadership, we'll continue to execute on our strategic vision. Create meaningful value for all stakeholders. With that, I'll now turn it over to Kathy.

我們過去幾年建立的基礎已使本地賞金能夠在短期內實現正調整後的 EBITDA，我相信在 Cathy 的領導下，我們將繼續執行我們的策略願景。為所有利害關係人創造有意義的價值。現在，我將把發言權交給凱西 (Kathy)。

Thank you, Craig, and good morning, everyone. First, I completely echo Craig's sentiment and want to acknowledge the incredible dedication and focus of our entire organization. As Craig alluded, our team has fully embraced our mission to reach positive adjusted EBITDA in the third quarter of this year.

謝謝你，克雷格，大家早安。首先，我完全同意克雷格的觀點，並想承認我們整個組織的令人難以置信的奉獻精神和專注力。正如克雷格所暗示的，我們的團隊已完全接受了我們的使命，即在今年第三季實現正調整後的 EBITDA。

From operations to sales to finance, everyone is aligned around this critical goal, and I couldn't be prouder of the collective effort.

從營運到銷售到財務，每個人都圍繞著這個關鍵目標，我為大家的努力感到無比自豪。

To that end, our first quarter progress, including all of our commercial and operational initiatives, are converging toward a significant revenue lift in the second half of 2025, and our achievement of this positive adjusted EBITDA milestone we are positioned to reach in quarter three.

為此，我們第一季的進展，包括我們所有的商業和營運舉措，都朝著 2025 年下半年大幅提升收入的方向發展，並且我們將在第三季度實現這一正調整後 EBITDA 里程碑。

Importantly, the disciplined approach we've taken from product diversification to operational efficiencies to cost management is creating a strong foundation that will support our long-term growth and profitability as we scale our business to meet growing retail demand for our products.

重要的是，我們從產品多樣化到營運效率再到成本管理所採取的嚴謹方法正在奠定堅實的基礎，這將支持我們在擴大業務以滿足日益增長的產品零售需求時的長期增長和盈利能力。

Starting with our operational progress, the product mix recalibration work at our Texas facility continues to advance as planned. We are in the final stages of completing this work and expect to begin for full commercial production in this section starting this month.

從我們的營運進度開始，我們德州工廠的產品結構重新調整工作繼續按計劃推進。我們正處於完成這項工作的最後階段，預計從本月開始該部分全面投入商業生產。

As we discussed previously, the purpose-built automated harvesting equipment will be installed early in the third quarter, replacing the temporary harvester we will use this quarter. The new harvester is expected to drive significant operational efficiencies and marginal improvement. I'm particularly excited to share that our yields in our Georgia facility have increased by 20% in the first quarter compared to our fourth quarter rates.

正如我們之前所討論的，專門製造的自動收割設備將在第三季初安裝，以取代我們本季使用的臨時收割機。預計新型收割機將顯著提高營運效率並帶來邊際改善。我特別高興地告訴大家，我們喬治亞州工廠的收益率在第一季與第四季相比成長了 20%。

This improvement is largely attributable to the refinement of our growing system with the stack phase which has outperformed our internal expectations. Our next step is to implement this program in our Texas and Washington facilities where we expect. Achieve similar yield increases.

這種改進很大程度上歸功於我們不斷發展的系統的改進，其堆疊階段已經超出了我們的內部預期。我們的下一步是在我們預期的德克薩斯州和華盛頓州的工廠實施該計劃。實現類似的產量成長。

These yield improvements over our existing performance create an excellent opportunity for a sales team to engage prospective retail partners who are looking for CEA suppliers that can deliver consistent performance, something that truly differentiates us at a time when retailers are increasingly taking interest in CEA products.

這些收益在我們現有業績基礎上的提升為銷售團隊創造了絕佳的機會，可以吸引那些正在尋找能夠提供穩定業績的 CEA 供應商的潛在零售合作夥伴，在零售商對 CEA 產品越來越感興趣的情況下，這真正使我們脫穎而出。

Regarding our plans to enter the Midwest with a new facility, I'm pleased to report significant advancement in our strategy there. We are actively engaged in promising discussions with multinational and national retailers to include the Midwest region in their sourcing plans. While we're very far along in this process, it's still too early to announce anything definitive.

關於我們透過新工廠進入中西部地區的計劃，我很高興地報告我們在那裡的策略取得了重大進展。我們正積極與跨國和國內零售商進行有前景的討論，將中西部地區納入他們的採購計劃。儘管我們已經在這個過程中取得了很大進展，但現在宣布任何最終消息還為時過早。

These developing relationships represent important validation of our expansion strategy and our ability to serve retail partners across multiple regions.

這些不斷發展的關係是對我們的擴張策略以及我們為多個地區的零售合作夥伴提供服務的能力的重要驗證。

Turning now to our commercial progress, building on the incredible momentum from last year in quarter one 2025, we expanded our Texas grown arugula offering with Brookshires in approximately 80 stores and began distributing organic living butter lettuce from California to HEB.

現在談談我們的商業進展，基於去年 2025 年第一季的驚人勢頭，我們與 Brookshires 在約 80 家門市擴大了我們在德克薩斯州種植的芝麻菜供應，並開始從加利福尼亞州向 HEB 分銷有機活奶油生菜。

We also started shipping Living Basil to an existing large retail customer across 60 stores and secured distribution with several other wholesalers for our basil products.

我們也開始向現有的 60 家商店的大型零售客戶運送 Living Basil，並與其他幾家批發商確保我們的羅勒產品的分銷。

Notably, our relationship with Walmart continues to strengthen. In addition to the 191 stores, we are already serving with premium baby varieties as of quarter four, we secured an additional commitment to serve 13 Walmart distribution centers with our conventional living butter lettuce.

值得注意的是，我們與沃爾瑪的關係不斷加強。除了 191 家門市外，截至第四季度，我們已經開始提供優質幼苗品種，我們還獲得了額外承諾，為 13 家沃爾瑪配送中心提供傳統的活奶油生菜。

With those shipments having commenced just a couple weeks ago from both our California and Texas facilities, we've also evolved our grab and go salad kit offerings to better serve retail partners and consumer trends.

隨著這些貨物幾週前從我們的加州和德克薩斯州的工廠開始發貨，我們也改進了即取即走的沙拉套裝產品，以更好地服務零售合作夥伴和消費者趨勢。

This includes the launch of new salad kits in quarter one 2025 with additional Flavors expected to be introduced in quarter three, as well as the creation of a new product line that meets the needs of today's value-oriented consumer.

其中包括在 2025 年第一季推出新的沙拉套裝，預計在第三季推出更多口味，以及創建滿足當今注重價值的消費者需求的新產品線。

We're particularly excited about our upcoming exclusive launch of a new larger approximately 12-ounce family size Caesar salad kit with a large multinational retailer in the Pacific Northwest, beginning in the third quarter.

我們特別高興的是，我們將於第三季與太平洋西北地區的一家大型跨國零售商合作，獨家推出一款新的約 12 盎司的家庭裝凱撒沙拉套裝。

We also continue to expand our relationship with the leading meal subscription business that is now seeking additional skills from us. These commercial wins demonstrate the strong pull we're seeing from our customers and their increasing desire to purchase more CEA products, validating our mission and reinforcing the long-term market opportunity ahead of us. Turning briefly to our first quarter results.

我們也將繼續擴大與領先的餐飲訂購業務的關係，目前正向我們尋求更多技能。這些商業勝利表明了我們從客戶那裡看到的強大吸引力以及他們購買更多 CEA 產品的日益增長的願望，這驗證了我們的使命並加強了我們面臨的長期市場機會。簡要回顧我們的第一季業績。

Our first quarter sales were $11.6 million in line with our expectations and representing a 38% increase compared to the first quarter of 2024 and a 15% sequential increase compared to the fourth quarter of 2024.

我們第一季的銷售額為 1,160 萬美元，符合我們的預期，與 2024 年第一季相比成長 38%，與 2024 年第四季相比環比成長 15%。

This growth was driven by increased production and sales from our Georgia, Washington, and Texas facilities, partially offset by the ongoing product mix for calibration work at our Texas facility, which has temporarily decreased capacity.

這一增長得益於我們佐治亞州、華盛頓州和德克薩斯州工廠的產量和銷售的增長，但部分抵消了我們德克薩斯州工廠正在進行的校準工作的產品組合，該工廠的產能暫時下降。

Our adjusted growth margin for the first quarter improved approximately 500 basis points versus the prior year and approximately 400 basis points versus the fourth quarter 2024. This improvement is particularly encouraging as it demonstrates that our product mix recalibration work and operational efficiency initiatives are yielding tangible results.

我們第一季的調整後成長利潤率比上年提高了約 500 個基點，比 2024 年第四季提高了約 400 個基點。這項改善尤其令人鼓舞，因為它顯示我們的產品結構重新調整工作和營運效率措施正在產生實際的成果。

We continue to expect that over time, our adjusted gross margin will increase as a percentage of sales as a result of the continued scaling of the business and ongoing efforts to optimize costs.

我們繼續預計，隨著時間的推移，由於業務的持續擴大和持續努力優化成本，我們的調整後毛利率佔銷售額的百分比將會增加。

Net loss for the quarter was $37.7 million compared to a net loss of $24.1 million in the prior year period, which largely reflects higher interest expense. Our adjusted EBITDA loss for the quarter was $8.8 million compared to $6.9 million in the prior year period, and importantly, representing an improvement of $50 million from our fourth quarter 2024 loss of $9.3 million.

本季淨虧損為 3,770 萬美元，而去年同期淨虧損為 2,410 萬美元，這主要反映了更高的利息支出。本季我們的調整後 EBITDA 虧損為 880 萬美元，而去年同期為 690 萬美元，重要的是，與 2024 年第四季的 930 萬美元虧損相比，改善了 5,000 萬美元。

We remain on track to achieve our third quarter target to reach positive adjusted EBITDA, driven by the full realization of our ongoing cost reductions alongside our anticipated revenue lift that we expect to be more fully visible in the third quarter of 2025.

我們仍有望實現第三季的目標，即實現正調整後的 EBITDA，這得益於我們全面實現持續的成本削減以及預期的收入成長，我們預計營收成長將在 2025 年第三季更加明顯。

To emphasize the cost reduction point, we took out approximately $3 million of annualized GNA expenses in the first quarter, and during the second quarter to date period, we've actioned another $4 million of annualized expenses across both GNA. And cost of goods sold.

為了強調成本削減點，我們在第一季度削減了約 300 萬美元的年度 GNA 費用，而在第二季度至今期間，我們又在兩個 GNA 中削減了另外 400 萬美元的年度費用。以及銷售成本。

These initiatives are a direct result of our operational focus, which is resulting in significantly improved consistency across all facets of our growing operations and allowing us to drive those efficiencies through our income statement.

這些措施是我們營運重點的直接結果，這顯著提高了我們不斷成長的業務各個方面的一致性，並使我們能夠透過損益表來提高效率。

Turning to our balance sheet, we ended the quarter with a significantly strengthened financial position with cash and cash equivalents and restricted cash of $28.4 million.

回顧我們的資產負債表，本季末我們的財務狀況顯著增強，現金、現金等價物和受限現金為 2,840 萬美元。

That said, I do want to provide some clarity on how our debt restructuring appears on our financial statements. While we eliminated approximately $197 million of debt to our March restructuring. Accounting rules require us to maintain the original carrying value of the pre-restructuring debt amount on our balance sheet, with the reduction being recorded as a debt premium that is amortized over the new loan term.

話雖如此，我確實想澄清一下我們的債務重組是如何體現在我們的財務報表上的。同時，我們透過 3 月的重組消除了約 1.97 億美元的債務。會計規則要求我們在資產負債表上保留重組前債務金額的原始帳面價值，並將減少的金額記錄為在新貸款期間內攤銷的債務溢價。

You'll see this as a new line item on our first quarter balance sheet. This means that our reported debt balance won't immediately show the reduction, but the economic benefit remains unchanged and will be reflected through lower interest expense over time. This accounting treatment is standard for transactions of this nature and does not impact the fundamental improvement of our capital structure.

您會在我們的第一季資產負債表上看到一個新的項目。這意味著我們報告的債務餘額不會立即顯示減少，但經濟效益保持不變，並將透過隨著時間的推移降低利息支出來反映。這種會計處理對於此類交易來說是標準的，不會影響我們資本結構的根本改善。

Now for some comments on our outlook for the second quarter, we expect revenue in the range of $12 to $12.5 million, which reflects the partial impact from our Texas facility transition, which is expected to be complete in the third quarter.

現在就我們對第二季的展望發表一些評論，我們預計營收將在 1,200 萬至 1,250 萬美元之間，這反映了我們德州工廠轉型的部分影響，預計將在第三季完成。

Looking at the cadence for the balance of the year, we expect to see a material lift in the second half of 2025, resulting from a convergence of activity, including the aforementioned full quarter contribution from our Texas facility transition and the additional capacity from our Georgia yield improvement.

從今年餘下的節奏來看，我們預計 2025 年下半年將出現實質性提升，這是由一系列活動的融合造成的，包括前面提到的來自德克薩斯州工廠轉型的整個季度的貢獻，以及來自佐治亞州產量提高的額外產能。

Additionally, new product introductions and expansions with existing customers are anticipated to also support our expectations for sequential growth in the second half of the year.

此外，預計新產品的推出和現有客戶的擴張也將支持我們對下半年連續成長的預期。

I'd also like to briefly comment on our EBI progression from quarter four to quarter one and highlight how we expect to improve on this in quarter two. In quarter one, we experienced temporary cost increases that we expect will be eliminated in quarter two.

我還想簡要評論我們從第四季度到第一季的 EBI 進展情況，並強調我們預計在第二季將如何改善這一情況。在第一季度，我們的成本出現了暫時性的增加，預計在第二季度這些成本將消失。

These included higher utilities associated with weather anomalies and higher GNA expenses, which were impacted by the combination of a higher mix of product donations associated with the better than anticipated yield improvements in Georgia, lower capitalization of labor now that the construction projects have been completed, and lastly, higher severance associated with our cost optimization work.

這些因素包括與天氣異常有關的公用事業費用增加以及 GNA 費用增加，這些費用受到佐治亞州產量提高好於預期導致的產品捐贈組合增加、建設項目完成後勞動力資本化降低以及與我們的成本優化工作相關的遣散費增加等因素的影響。

These collectively impacted our EBITDA by approximately 900,000 in the first quarter and are not expected to reoccur in the second quarter. These dynamics combined with our second quarter to date cost actions are providing us some tailwind toward our goal of achieving positive adjusted EBITDA in the third quarter of 2025. In conclusion, we're energized by the progress we're making across all areas of our business.

這些因素合計對我們第一季的 EBITDA 造成了約 90 萬的影響，預計第二季不會再次發生。這些動態與我們第二季迄今的成本行動相結合，為我們實現 2025 年第三季實現正調整後 EBITDA 的目標提供了一些順風。總而言之，我們為業務各領域所取得的進展感到振奮。

Our entire organization is aligned behind our mission to reach positive adjusted in the third quarter, and I couldn't be prouder of the collective effort of our team. With that please open the call for Q&A.

我們整個組織都一致致力於在第三季實現正成長，我為我們團隊的集體努力感到無比自豪。請開始問答環節。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Our first question comes from the line of Kristen Owen with Oppenheimer and Company. Please proceed.

我們的第一個問題來自奧本海默公司的克里斯汀歐文。請繼續。

Hi, good morning, and thank you for taking the question. Congratulations on the nice progress made in the first quarter here. Kathy, you touched on this in some of your final, prepared comments here, but I want to double click on sort of what's driving that material list, coming into the back half of the year. You noted Texas transition, the Georgia yield improvements, some new products.

大家好，早安，謝謝您回答這個問題。恭喜我們在第一季取得了良好的進展。凱西，你在最後的準備好的評論中提到了這一點，但我想再詳細談談是什麼推動了下半年的材料清單。您注意到德克薩斯州的轉型、喬治亞州的產量提高以及一些新產品。

I want to double click on that towards the yield improvement. I think you said 20% over fourth quarter. Just help us understand, what, what's changing in the production process, how you're achieving that yield, and then on the commercial side, sort of the velocity of sales and your ability to sort of sell out that incremental yield as you're thinking about that at the back half of the year.

我想雙擊它來提高產量。我認為您說的是第四季度增長 20%。只是幫助我們了解生產過程中發生了什麼變化，您是如何實現這一收益的，然後在商業方面，了解銷售速度以及您在下半年考慮銷售增量收益的能力。

Yeah, great series of questions, Kristen, and good morning to you.

是的，克里斯汀，這一系列問題很棒，早安。

Thank you. So yeah, the 20% yield increase in Georgia is an R&D program that was developed last year. We were able to finally put it in place in Georgia, and it was, it actually exceeded our expectations in terms of yield increases, which is fantastic, right?

謝謝。是的，喬治亞州 20% 的產量成長是去年開發的研發計畫。我們最終在喬治亞州實施了這項技術，而且，就產量增加而言，它實際上超出了我們的預期，這太棒了，對吧？

So, as we said in my, as I said in my comments, we will also be implementing that program in Texas and Washington in quarter three, so we expect to see that similar level of bump and yield in both of those facilities. If you think about it, so out of Georgia, when the yield increases that much, your production increases, right?

因此，正如我們在我的評論中所說的那樣，我們還將在第三季度在德克薩斯州和華盛頓州實施該計劃，因此我們預計這兩個工廠的產量和收益率都會有類似的增長。如果你仔細想想，那麼在喬治亞州以外，當產量增加那麼多時，產量也會增加，對嗎？

And so, it takes a little bit of time for our sales team to place the product, right, which is normal. So And then in terms of the ramp in the back half, right, it's several things going on with all of our customers, right?

因此，我們的銷售團隊需要一點時間來放置產品，這是正常的。那麼，就後半部分的坡道而言，對吧，我們的所有客戶都在發生幾件事，對吧？

We, talked about all of the Walmart projects, the grab and go salads, the increased revenue that we will anticipate out of Montana. Several things are impacting the uptick, including, also as we discussed, the yields.

我們討論了沃爾瑪的所有項目、外帶沙拉以及我們預期蒙大拿州的收入成長。有多種因素影響著這一上漲，包括我們所討論的收益率。

So hopefully that's helpful.

希望這會有所幫助。

That's great. The follow up question that I have is a little bit more modelling oriented just given some of the nuance around the restructuring that you announced last quarter, you mentioned the balance sheet implications. I'm trying to think about the.

那太棒了。我的後續問題更多是面向模型，考慮到您上個季度宣布的重組的一些細微差別，您提到了資產負債表的影響。我正在努力思考。

The income statement implications in particular how to think about the interest expense that you're reporting what if that is cash versus non-cash and how that will change with this restructuring just a little bit of nuance on the model that would be helpful.

損益表的影響，特別是如何考慮您報告的利息費用，如果是現金還是非現金，以及隨著重組將如何變化，只需對模型進行一點點細微的調整就會有所幫助。

Thank you. Yeah.

謝謝。是的。

Yeah for sure so you know GAAP accounting, right? You would have anticipated that we would be able to recognize the full gain of the debt write off of $197 million. But we're actually having to take it over 10 years, which actually in effect is fantastic because every quarter it will reduce our interest expense on the face of our P&L, right?

是的，您了解 GAAP 會計，對嗎？您可能已經預料到我們能夠確認 1.97 億美元債務註銷的全部收益。但實際上我們必須將其延續 10 年，這實際上效果很好，因為每個季度它都會減少我們損益表上的利息支出，對嗎？

So, the accrual every quarter is the debt balance times the interest rate, which again we, as we disclosed, it's, 50% of what it used to be. And then the amortization of the premium will reduce the interest expense on the face of the P&L. So, in effect, every quarter, the interest expense as it appears on the P&L will be less than $5 million.

因此，每季的應計金額是債務餘額乘以利率，正如我們所揭露的，它是過去的 50%。然後，溢價的攤銷將減少損益表上的利息支出。因此，實際上，每季損益表上顯示的利息支出將少於 500 萬美元。

And then also keep in mind, yeah, let me just add one more comment there. Keep in mind that the restructure with Cargo allows for, two full years of no cash interest or am amortization payments. So, but obviously right there there's still the accrual.

然後還要記住，是的，讓我再添加一條評論。請記住，與 Cargo 的重組允許整整兩年不支付現金利息或攤銷費用。所以，但顯然那裡仍然存在應計。

Perfect thank you I'll pass it on.

非常感謝，我會傳達的。

Okay, thanks Kristen.

好的，謝謝克里斯汀。

Thank you. Our next question comes from the line of Ben Klieve with Lake Street Capital Markets. Please proceed with your question.

謝謝。我們的下一個問題來自 Lake Street Capital Markets 的 Ben Klieve。請繼續您的問題。

Alright, thanks for taking my questions. I want to circle back to this 20% yield enhancement. I'd like to kind of better understand I think cat in your prepared remarks you said that this was, a project, explicitly around the stack phase of the Georgia facility.

好的，感謝您回答我的問題。我想回到這個 20% 的收益率提升。我想更好地理解，我認為您在準備好的演講中說過，這是一個明確圍繞喬治亞州設施堆疊階段的項目。

And so, I'm wondering is this a situation where you have 20% more plants coming out of the stack phase, just from a pure, kind of per square foot perspective, are they coming, are the same number of plants coming off 20% faster? Are you kind of changing the varieties to maybe faster growing, options? What exactly is the driving force behind that?

所以，我想知道，在這種情況下，從純粹的每平方英尺的角度來看，從堆疊階段出來的植物數量是否會增加 20%，它們的數量是否相同，但速度是否會加快 20%？您是否會將品種改變為可能生長較快的品種？這背後的驅動力究竟是什麼？

Yeah, sure, great question, and good morning, Ben. Yeah, so it's really within the stack phase. It's very simply light optimization, okay, and it's something we nicknamed it Thor. Our R&D scientists who are amazing developed the program, actually early last year.

是的，當然，問得好，早安，本。是的，所以它確實處於堆疊階段。這只是非常簡單的輕量級優化，好吧，我們給它起了個綽號叫 Thor。我們的研發科學家非常出色，他們實際上是在去年年初開發了這個程式。

What it does is it just, it increases the output out of the stack phase and basically, even all the way through then the process through the greenhouse, we're literally seeing 20% increase in pack down every single week.

它的作用只是增加堆疊階段的產量，基本上，甚至在整個通過溫室的過程，我們每週都能看到包裝量增加 20%。

It's actually pretty amazing, but it's basically within the stack, it's light optimization. And what it does is it increases the output of number of plants, sorry, poundage of plants out of the coming out of the stack face.

這實際上非常令人驚奇，但它基本上是在堆疊內進行的，它是輕量級優化。它的作用是增加植物的產量，對不起，是增加從堆疊表面出來的植物的重量。

Got it. So, four is light optimization on the same number of plants that makes those plants grow 20% faster.

知道了。因此，第四項是對相同數量的植物進行光照優化，使這些植物的生長速度提高 20%。

Correct.

正確的。

Got it okay, very impressive, so then.

明白了，好的，非常令人印象深刻，就這樣。

Yeah, sounds like it. My other question, then before I'll get back into you is, you talked, it seems like it was a bit more, kind of conviction regarding the future of the Midwest, facility, and I'm wondering if you can talk about.

是的，聽起來是這樣。在回覆您之前，我的另一個問題是，您剛才說了，似乎對中西部設施的未來抱有更多信心，我想知道您是否可以談談。

How you're thinking about financing that facility, are you looking at kind of project specific financing, the external parties, leaning back into the existing credit facilities that you have a mix of those two or something else?

您如何考慮為該設施融資，您是否正在考慮特定項目的融資，外部各方，依靠現有的信貸安排，將兩者結合起來，還是其他什麼？

So, we're, as any company, right, you're always trying to bring new capital providers in the capital stack, so we are talking to sort of very project specific financing, but you know I think we'll probably be bringing new, obviously non-dilutive partners into the capital stack.

因此，就像任何公司一樣，我們總是試圖在資本堆疊中引入新的資本提供者，因此我們正在談論非常具體的專案融資，但你知道我認為我們可能會將新的、顯然是非稀釋性的合作夥伴引入資本堆疊。

Okay.

好的。

Very good that's helpful well I appreciate you taking my questions best of luck here and what should be a, pretty interesting next few months for you guys. I'll get back in you.

非常好，這很有幫助，非常感謝你回答我的問題，祝你們好運，接下來的幾個月對你們來說應該會很有趣。我會回到你身邊。

Thanks.

謝謝。

Thank you, ladies and gentlemen. I'm showing no other questions at this time. I'll turn the floor back to for any final comments.

謝謝各位，女士們、先生們。我目前沒有其他問題。我將把發言權轉回給大家，以便大家發表最後的評論。

I just would like to thank everybody for joining us today and we look forward to updating you on our progress as we further scale and grow local bani’s business in the coming quarters.

我只想感謝大家今天的加入我們，我們期待在未來幾季進一步擴大和發展本地 bani 業務，並向大家通報我們的進展。

Thank you very much.

非常感謝。

Thank you. This concludes today's conference call. You may disconnect your lines at this time.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。

Thank you for your participation.

感謝您的參與。