Outdoor Holding Company (POWW) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the AMMO, Inc. full fiscal year 2023 earnings conference call. (Operator Instructions) Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes.

女士們，先生們，謝謝你們的支持。下午好，歡迎來到 AMMO, Inc. 2023 財年完整財年電話會議。 （操作員說明）本次電話會議的參與者請注意，本次電話會議的音頻將通過互聯網進行現場直播，並且還會被錄製以供播放。

I would now like to turn the call over to Matt Blazei of CoreIR, the company's investor relations firm. Please go ahead, sir.

我現在想把電話轉給公司投資者關係公司 CoreIR 的 Matt Blazei。請繼續，先生。

Good afternoon, and thank you for participating in today's conference call. Joining me from AMMO's leadership team are Fred Wagenhals, Chairman and Chief Executive Officer; Jared Smith, President and Chief Operating Officer; and Rob Wiley, Chief Financial Officer.

下午好，感謝您參加今天的電話會議。和我一起來自 AMMO 領導團隊的是董事長兼首席執行官 Fred Wagenhals；賈里德·史密斯，總裁兼首席運營官；和首席財務官 Rob Wiley。

During this call, management will be making forward-looking statements, including statements that address AMMO's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in AMMO's most recently filed periodic reports on Form 10-K and Form 10-Q, the Form 8-K filed with the SEC today, and the company's press release that accompanies this call, particularly the cautionary statements in it.

在此次電話會議中，管理層將發表前瞻性聲明，包括闡述 AMMO 對未來業績或運營結果的預期的聲明。前瞻性陳述涉及可能導致實際結果與這些陳述存在重大差異的風險和其他因素。有關這些風險的更多信息，請參閱 AMMO 最近提交的 10-K 表格和 10-Q 表格定期報告、今天向美國證券交易委員會提交的 8-K 表格以及隨附的公司新聞稿中描述的風險因素這一呼籲，尤其是其中的警示性陳述。

Today's conference call includes non-GAAP financial measures that AMMO believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure and its net loss, its most directly comparable GAAP financial measure, please see the reconciliation table located in the company's earnings press release.

今天的電話會議包括 AMMO 認為可用於評估其業績的非 GAAP 財務指標。您不應孤立地考慮此附加信息或將其作為根據 GAAP 編制的結果的替代。有關此非 GAAP 財務指標與其淨虧損（其最直接可比的 GAAP 財務指標）的對賬，請參閱公司收益新聞稿中的對賬表。

The content of this call contains time-sensitive information that is accurate only as of today, June 14, 2023. Except as required by law, AMMO disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Fred Wagenhals, Chairman and CEO of AMMO, Inc.

本次電話會議的內容包含時效性信息，截至今天，即 2023 年 6 月 14 日，這些信息都是準確的。除法律要求外，AMMO 不承擔任何公開更新或修改任何信息以反映本次電話會議後發生的事件或情況的義務.現在我很高興將電話轉給 AMMO, Inc. 董事長兼首席執行官 Fred Wagenhals。

Thank you and good afternoon. I appreciate everyone joining us for our fourth-quarter and fiscal 2023 earnings call. I would like to start this call by acknowledging all the hard work of our employees and the patience of our investors as we continue to navigate through a very challenging environment over the past year.

謝謝，下午好。我感謝大家加入我們的第四季度和 2023 財年財報電話會議。我想通過承認我們員工的所有辛勤工作和我們投資者的耐心來開始這個電話會議，因為我們在過去一年中繼續度過一個非常具有挑戰性的環境。

While it's been a challenging period for all of us, and the market in general, I firmly believe we have laid the foundation for the next great growth cycle for our company. I'm going to take a few minutes to highlight a few of these initiatives and then hand the call over to Jared to discuss these in more detail.

雖然這對我們所有人和整個市場來說都是一個充滿挑戰的時期，但我堅信我們已經為公司下一個偉大的增長周期奠定了基礎。我將花幾分鐘時間強調其中的一些舉措，然後將電話轉給 Jared 以更詳細地討論這些舉措。

During the past few quarters of global and US economy downturn, which has impacted our market as well, we have been hard at work transitioning our customer base toward longer-term strategic clients, while also positioning the company as long-term supplier of pistol and brass casings to OEM and international markets. As the ammunition market normalizes, we will also continue our penetration into higher-margin niche markets with our proprietary technology.

在過去幾個季度全球和美國經濟低迷也影響了我們的市場，我們一直在努力將我們的客戶群轉變為長期戰略客戶，同時也將公司定位為手槍和手槍的長期供應商。向 OEM 和國際市場供應黃銅外殼。隨著彈藥市場的正常化，我們還將繼續利用我們的專有技術滲透到利潤率更高的利基市場。

The expansion of our international market and continue to press forward on our exciting government work. This pivot in strategic was designed to substantially improve the profitability of our pistol, rifle, and brass sales, while also reducing our working capital needed and improving the balance sheet. We are confident with these changes, along with the significantly greater capacity at our state-of-the-art manufacturing Wisconsin facility, we will put us in an excellent position to rapidly improve profitability as we execute in the coming quarters.

拓展我們的國際市場，繼續推進我們令人興奮的政府工作。這一戰略重點旨在大幅提高我們手槍、步槍和銅管銷售的盈利能力，同時減少我們所需的營運資金並改善資產負債表。我們對這些變化充滿信心，加上我們最先進的威斯康星州製造工廠的產能顯著提高，我們將使我們處於有利地位，以便在未來幾個季度執行時迅速提高盈利能力。

Moving now to GunBroker.com. While brick-and-mortar retailers have suffered from the significant decrease in revenue and foot traffic, our GunBroker.com revenue and profitability has remained steady throughout the past fiscal year. We believe this has been a function of improving customer acquisition tools significantly, upgrading our targeting, marketing, and better overall customer experience, which the team has spent a lot of time and effort in enhancing in every material way.

現在轉到 GunBroker.com。雖然實體零售商的收入和客流量大幅下降，但我們的 GunBroker.com 收入和盈利能力在過去一個財政年度保持穩定。我們認為，這是顯著改進客戶獲取工具、升級我們的定位、營銷和更好的整體客戶體驗的一個功能，團隊花費了大量時間和精力在每一個物質方面進行改進。

As I have discussed on previous calls, we have undertaken a number of initiatives over the past year to enhance the GunBroker.com platform, including carting and credit cards processing capability, which we're preparing to roll out as we continue the necessary and critical beta testing. Meanwhile, the massive layoff seen in the technology industry has allowed us to expand our development capabilities as we have leveraged the increased availability of skilled workers to add a number of highly strategic hires.

正如我在之前的電話會議上所討論的那樣，我們在過去一年中採取了多項舉措來增強 GunBroker.com 平台，包括購物車和信用卡處理能力，我們正準備在繼續開展必要和關鍵的工作時推出這些舉措測試版。與此同時，技術行業的大規模裁員使我們能夠擴大我們的開發能力，因為我們利用技術工人的可用性增加來增加一些具有高度戰略意義的僱員。

I remain confident that we are only in the early stages of what we believe will be a long runway of revenue, growth, and increasing profitability. We started the company in 2016 with the vision and mission to innovate and capture a meaningful share of the ammunition market, picking our spots for acquisitions, staying focused on always improving manufacturing operations, all while working to bring our customers the product they desire.

我仍然相信，我們只處於我們認為收入、增長和盈利能力增加的漫長跑道的早期階段。我們於 2016 年創立了這家公司，其願景和使命是創新並在彈藥市場佔據有意義的份額，選擇我們的收購點，始終專注於改善製造運營，同時努力為我們的客戶提供他們想要的產品。

We have grown by leaps and bounds in these short seven-plus years, and I am proud of the future going forward, but there is much work left to be done. And we now have the team assembled to meet these challenges.

在這短短的七年多時間裡，我們取得了突飛猛進的發展，我為未來的發展感到自豪，但還有很多工作要做。我們現在組建了團隊來應對這些挑戰。

At this time, I would like to turn the call over to Jared Smith, AMMO's President and COO. He will discuss these initiatives in more detail, review the current state of operations and what we believe the future has in store for AMMO, its team, and our shareholders.

此時，我想將電話轉給 AMMO 總裁兼首席運營官 Jared Smith。他將更詳細地討論這些舉措，審查當前的運營狀況以及我們認為未來對 AMMO、其團隊和我們的股東的影響。

Thank you, Fred. Good afternoon, everyone. This is my second time addressing you on an earnings call as President and COO. And in these last five months, I have seen transformative change here at AMMO. I join Fred in thanking our employees for making these changes possible. Their dedication and wealth of knowledge continue to make great things happen and make calls like today all the more enjoyable knowing the great work we have accomplished.

謝謝你，弗雷德。大家下午好。這是我第二次以總裁兼首席運營官的身份在財報電話會議上向您致辭。在過去的五個月裡，我在 AMMO 看到了翻天覆地的變化。我和弗雷德一起感謝我們的員工使這些改變成為可能。他們的奉獻精神和豐富的知識繼續讓偉大的事情發生，並且像今天這樣打電話，讓我們更加愉快地了解我們已經完成的偉大工作。

Before I dig into the business, our team and shareholders must take a look at our balance sheet. We ended our fiscal year with $39.1 million in cash, had a limited debt, and generated $35.5 million in cash from operations over the past 12 months. We are well-prepared for this downturn, and with the company repositioning its operations, we are ready to meet this new market head-on.

在我深入研究業務之前，我們的團隊和股東必須看一下我們的資產負債表。我們以 3910 萬美元的現金結束了本財政年度，債務有限，並在過去 12 個月的運營中產生了 3550 萬美元的現金。我們為這次低迷做好了充分準備，隨著公司重新定位其業務，我們已準備好迎接這個新市場。

While sales and margins are down from 2022, we have retooled our factories and changed our go-to-market approach for both the ammunition and GunBroker.com divisions. 2023 and the first half of 2024 will be a challenging year for this industry. Markets normalized, shelves are restocked, and our customers are once again looking for value as they tighten their belts. To thrive in this environment, we must create opportunities in the marketplace that build long-term relationships and communicate the value and strength of our platform and products.

雖然銷售額和利潤率比 2022 年有所下降，但我們對工廠進行了重組，並改變了彈藥和 GunBroker.com 部門的上市方式。 2023年和2024年上半年對這個行業來說將是充滿挑戰的一年。市場正常化，貨架重新進貨，我們的客戶在勒緊腰帶時再次尋找價值。為了在這種環境中蓬勃發展，我們必須在市場上創造機會，以建立長期關係並傳達我們平台和產品的價值和優勢。

I first want to focus on execution concerning the major process changes we have implemented, which may seem simple in nature, but provide a major lift for a young and emerging company. These process improvements are essential in a tightening market and are a requirement for repeatable margin growth during the continuing headwinds this sector faces. We've spent late nights and countless weekends developing these processes, programs, and new products to take this market head-on.

我首先想重點介紹一下我們已經實施的主要流程變更的執行情況，這些變更本質上可能看起來很簡單，但卻為一家年輕的新興公司提供了巨大的提升。這些流程改進對於緊縮的市場至關重要，並且是在該行業面臨持續逆風的情況下實現可重複的利潤增長的必要條件。我們度過了深夜和無數個週末來開發這些流程、程序和新產品，以直接佔領這個市場。

Operationally, we have developed our sales and operating model, enhanced our sales and market forecast, tightened our purchasing plans, shortened feedback loops, and continue with cost-out initiatives that will keep us lean and competitive in the quarters ahead. We have also aligned the execution of those plans with project management principles that will allow us to continue to monitor our execution and delivery on these key principles. Finally, we continue to add talent to our team and grow our people, and in turn, our performance.

在運營方面，我們已經開發了我們的銷售和運營模式，增強了我們的銷售和市場預測，收緊了我們的採購計劃，縮短了反饋循環，並繼續實施成本削減計劃，這將使我們在未來幾個季度保持精益和競爭力。我們還將這些計劃的執行與項目管理原則保持一致，這將使我們能夠繼續監控我們對這些關鍵原則的執行和交付。最後，我們繼續為我們的團隊增加人才並發展我們的員工，進而提高我們的績效。

I'm going to talk a minute about GunBroker.com. GunBroker.com is about managing and establishing trust. The buyer trusting the experience of buying a new or used firearm online without first handling it, trusting the experience that a firearm will be shipped to the FFL undamaged and in a timely manner, and following all the necessary state and federal regulations. The seller must trust that the funds settle accurately and in a timely manner, and they must trust that the transferring FFL will handle the firearm transfer experience professionally for their customer.

我要談談 GunBroker.com。 GunBroker.com 旨在管理和建立信任。買家信任在沒有先處理的情況下在線購買新槍支或二手槍支的體驗，相信槍支將完好無損地及時運送到 FFL，並遵守所有必要的州和聯邦法規。賣家必須相信資金準確及時地結算，他們必須相信轉讓的 FFL 會專業地為他們的客戶處理槍支轉讓體驗。

For non-firearm purchases, trust must exist that the product being delivered is in the same condition as noted in the listing by the seller, and that the buyer will process quick payment upon bidding or buying the selected item. It is that trust that we are building upon today, a trust that our community does not give or take lightly, and our developers and managers recognize that we must get it right.

對於非槍支購買，必須相信所交付的產品與賣方在清單中註明的狀況相同，並且買方將在出價或購買所選項目時處理快速付款。我們今天建立的正是這種信任，我們的社區不會掉以輕心地給予或接受這種信任，我們的開發人員和管理人員認識到我們必須正確對待它。

As we've discussed in the past with the onboarding of credit card processing and carting, this platform will change, streamline, and expedite processes within the systems. And we must do everything in our power to ensure that we keep the trust of this community. To ensure that we continue to bring value, we must provide new tools and advancements that empower buyers and sellers with a deeper level of engagement within the community.

正如我們過去討論的信用卡處理和購物的加入，該平台將改變、簡化和加快系統內的流程。我們必須竭盡全力確保我們保持這個社區的信任。為確保我們繼續帶來價值，我們必須提供新的工具和進步，使買賣雙方能夠更深入地參與社區。

The first major advancement was from a universal to a unique approach in our marketing campaigns. We shifted to an in-house team that generates campaigns around GunBroker.com's individualized, quantified, and internally generated data. This resonates with our customer base and enables us to hit unprecedented metrics as buyers discover new sellers on the platform around these personalized and self-selected genres.

第一個重大進步是在我們的營銷活動中從通用到獨特的方法。我們轉向了一個內部團隊，該團隊圍繞 GunBroker.com 的個性化、量化和內部生成的數據生成活動。這引起了我們客戶群的共鳴，並使我們能夠達到前所未有的指標，因為買家圍繞這些個性化和自選類型在平台上發現了新賣家。

We are aware of no other competitor in our space that possesses and deploys this data in this method. This has resulted in 126 targeted unique customer personas that are curated and used in banner and email campaigns that direct traffic back to those curated items by our sellers. This campaign also generates 1.5 million emails daily to an active and engaged audience segmented from an overall list of 3.5 million opt-in subscribers.

據我們所知，在我們的領域中沒有其他競爭對手以這種方式擁有和部署這些數據。這導致了 126 個有針對性的獨特客戶角色，這些角色被策劃並用於橫幅和電子郵件活動，將流量引導回我們的賣家策劃的項目。該活動還每天生成 150 萬封電子郵件，發送給從 350 萬選擇加入訂閱者的總體列表中細分出來的活躍和參與的受眾。

The second major advancement was from a reactive to a proactive approach in customer service, seller engagement, and industry relationships. By restructuring customer service and adding product specialists, we have unified our outreach to both the seller and buyer community, leading to better navigation within the platform. We have accelerated customer response time and significantly increased our satisfaction ratings.

第二個重大進步是在客戶服務、賣家參與和行業關係方面從被動轉變為主動。通過重組客戶服務並增加產品專家，我們統一了對賣家和買家社區的外聯，從而在平台內實現更好的導航。我們加快了客戶響應時間並顯著提高了我們的滿意度。

The third major advancement of our marketplace was enabling buy-now links for manufacturer sites and manufacturer stores within GunBroker.com, which are fulfilled by our sellers' inventories. We've also recognized and helped draw out one of the core strengths of the marketplace, which is sellers can exceed normal industry margins on rare, highly sought-after, and collectible goods through the auction process.

我們市場的第三個主要進步是在 GunBroker.com 內為製造商網站和製造商商店啟用了“立即購買”鏈接，這​​些鏈接由我們賣家的庫存實現。我們還認識到並幫助挖掘了市場的核心優勢之一，即賣家可以通過拍賣過程在稀有、搶手和收藏品上超過正常行業利潤率。

This has become clear to our seller community and has become a source of much talk and something we will continue to educate our user base on through a new podcast launching in July. This podcast will be filled with conversations around fun facts, demystifying consumer selling and buying, and historical relevance of the products that can be found on GunBroker.com.

這對我們的賣家社區來說已經很清楚了，並成為了很多話題的來源，我們將通過 7 月推出的新播客繼續教育我們的用戶群。這個播客將充滿關於有趣事實的對話，揭開消費者買賣的神秘面紗，以及可以在 GunBroker.com 上找到的產品的歷史相關性。

We're also very excited to announce the newest member of our management team, industry veteran, Allen Forkner, as Vice President of Public Relations and Brand Management. In this role, Allen will help bring awareness and attention to GunBroker.com and the ever-growing number of programs and services it offers sellers, buyers, and the outdoor industry. As a whole, the entire GunBroker.com team feels that they're just really hitting the stride, where the past two years focused on the strategic planning and development of what is now being deployed, bringing a whole new breadth of services and opportunities to the platform and its users.

我們也非常高興地宣布我們管理團隊的最新成員、行業資深人士 Allen Forkner 擔任公共關係和品牌管理副總裁。在此職位上，Allen 將幫助提高人們對 GunBroker.com 的認識和關注，以及它為賣家、買家和戶外行業提供的越來越多的項目和服務。總的來說，整個 GunBroker.com 團隊都覺得他們真的邁出了一大步，過去兩年的重點是戰略規劃和正在部署的內容的開發，為他們帶來了全新的服務和機會平台及其用戶。

I'd now like to transition to AMMO, Inc. and the ammunition division. Despite the current recessionary and inflationary macroeconomic effect, the ammunition division still benefits from geopolitical events and conflicts that you read in the news today. Demand for our brass lines is growing and the word is getting out there that AMMO, Inc. is open for business and has significant capacity for its growing customer base. We are securing new foreign and domestic contracts for rifle and pistol brass, just as we anticipated, and our international clientele will contractual supplies that will carry them through the next election cycle versus being cut off when the domestic market rebounds here in the US.

我現在想轉到 AMMO, Inc. 和彈藥部門。儘管當前存在衰退和通脹的宏觀經濟影響，彈藥部門仍然受益於您今天在新聞中看到的地緣政治事件和衝突。對我們的黃銅生產線的需求正在增長，並且有消息稱 AMMO, Inc. 已開門營業，並為其不斷增長的客戶群提供強大的產能。正如我們預期的那樣，我們正在爭取新的國內外步槍和手槍黃銅合同，我們的國際客戶將簽訂供應合同，使他們能夠度過下一個選舉週期，而不是在美國國內市場反彈時被切斷。

To make these opportunities a reality, we had to go back to the drawing board and clear out our cabinets, purge our old inventories, and lean out our profit feed. We've reduced our working capital requirements and continue to work through slow-moving inventory that clutters the mines and the factory floor. Our continuous improvement projects will create an even leaner operating model in the months ahead as we process even material after the consolidation of our two facilities last fall.

為了讓這些機會成為現實，我們不得不回到繪圖板，清理我們的櫥櫃，清除我們的舊庫存，並精益我們的利潤來源。我們已經降低了對營運資金的要求，並繼續解決使礦山和工廠車間雜亂無章的滯銷庫存。我們的持續改進項目將在未來幾個月內創建一個更精簡的運營模式，因為我們在去年秋天合併了兩個設施後處理了更多的材料。

Our sales teams are also busy implementing strategic account management, which focuses our energy and resources on the highest-performing dealer, retail, and distributor customers in this space. We must continue to tune ourselves and marketing organizations to listen and understand the requirement of our dealers and retailers and effectively communicate our core strengths and strategic offerings.

我們的銷售團隊還忙於實施戰略客戶管理，將我們的精力和資源集中在該領域表現最好的經銷商、零售和分銷商客戶身上。我們必須繼續調整自己和營銷組織，以傾聽和了解我們的經銷商和零售商的需求，並有效地傳達我們的核心優勢和戰略產品。

At the same time, we must create the conversation with our consumers who are getting lost in the aisles and options to choose from in the ammunition category. We will do this by rebranding and repackaging the AMMO, Inc. signature lines to stand out on the shelf. This will communicate the strength of our best-in-class brass we manufacture and the highest quality of components we source from other premium US. manufacturers. We are superior and take great pride in being a US manufacturer based in Manitowoc, Wisconsin.

與此同時，我們必須與迷失在過道和彈藥類別選項中的消費者進行對話。為此，我們將對 AMMO, Inc. 標誌性產品線進行品牌重塑和重新包裝，使其在貨架上脫穎而出。這將傳達我們製造的一流黃銅的強度以及我們從其他優質美國採購的最高質量的部件。製造商。作為一家位於威斯康星州馬尼托沃克的美國製造商，我們是卓越的，並為此感到自豪。

As we transition our future product offering, we'll continue to move our products into stable niche markets with loyal customers. Over the last six months, our ammo division has transitioned away from topline revenue and focused on margin creation in conjunction with contractual growth with our premium OEM partners. Sales margins improved, volumes stabilized, and strict inventory reduction plans have been put into place.

隨著我們過渡我們未來的產品供應，我們將繼續將我們的產品轉移到擁有忠實客戶的穩定利基市場。在過去的六個月裡，我們的彈藥部門已經從收入收入轉變為專注於創造利潤以及與我們的優質 OEM 合作夥伴的合同增長。銷售利潤率提高，銷量穩定，嚴格的庫存削減計劃已經到位。

We are filling in the factory that came on last fall and continue to see machine efficiencies increase while we find new demand for this capacity. We will continue to build out ourselves and marketing teams to move the needle in a profitable and sustainable manner.

我們正在填補去年秋天開工的工廠，並繼續看到機器效率的提高，同時我們發現了對該產能的新需求。我們將繼續建立自己和營銷團隊，以盈利和可持續的方式推動發展。

Domestic markets will not keep our factories full. Military needs are sporadic and timing is unpredictable. International business will not save us, even with the current conflicts raging beyond our borders. We must take a balanced and multidisciplinary approach and strategically place our business with clients that are monitoring and measuring their business with the same care and diligence with which we measure ours.

國內市場不會讓我們的工廠滿負荷運轉。軍事需求是零星的，時間是不可預測的。國際商業不會拯救我們，即使當前的衝突在我們的邊界之外肆虐。我們必須採取平衡和多學科的方法，並將我們的業務戰略性地定位於以我們衡量我們的業務時同樣的謹慎和勤勉來監控和衡量他們業務的客戶。

Strategic account management is based on the principle that we will find sales with credible clients with a similar focus on the bottom line and ability to market their brand with the same effectiveness that we will market ours. Sales have come rather easily in the past three years with COVID, and the US ammunition industrial base has grown.

戰略客戶管理基於這樣的原則，即我們將尋找可靠的客戶進行銷售，這些客戶對底線的關注點相似，並且能夠以與我們營銷我們的品牌相同的有效性來營銷他們的品牌。在過去的三年裡，隨著 COVID 的出現，銷售變得相當容易，美國的彈藥工業基地也在擴大。

We will now have to prepare our sales strategies to compete with this excess capacity and lean our operations, creating efficiencies to compete with manufacturers that have been in this business for over 100 years. We will automate what we can, but automation takes time. Our strategy is differentiation and caliber selection, grow our people, cut costs, and manage our relationships both domestically, internationally, militarily, all while hoping for a little luck along the way.

我們現在必須準備我們的銷售策略，以應對這種過剩產能並精簡我們的運營，創造效率以與從事該業務 100 多年的製造商競爭。我們將盡可能自動化，但自動化需要時間。我們的戰略是差異化和人才選擇，培養我們的員工，削減成本，管理我們在國內、國際和軍事上的關係，同時希望一路上能有一點運氣。

We abide by the wise words of Thomas Jefferson. I'm a great believer in luck, and I find the harder I work, the more I have of it. The entire ammo team thinks the exact same way.

我們遵守托馬斯杰斐遜的睿智言論。我非常相信運氣，而且我發現我工作越努力，運氣就越多。整個彈藥團隊的想法完全相同。

Our industry has grown its inherent capacity beyond pure consumption. Bigger factors like political cycles, regulation, international and domestic turbulence drive this market to unprecedented levels. These factors must be managed and weighed. As the sale management team leans into the market, we will take all these factors into consideration as we build shareholder value through steady and predictable growth.

我們行業的內在能力已經超越了單純的消費。政治週期、監管、國際和國內動盪等更大的因素將這個市場推向前所未有的水平。必須管理和權衡這些因素。隨著銷售管理團隊向市場傾斜，我們將考慮所有這些因素，通過穩定和可預測的增長來建立股東價值。

I'd now like to turn the call over to Rob Wiley to discuss the quarter.

我現在想把電話轉給 Rob Wiley 來討論這個季度。

Thank you, Jared. Welcome, everyone. Let me now review our fourth-quarter and fiscal year 2023 financials in more detail. We are pleased with the progress we have made to date as we continue with the transition period, but headwinds are still active in the market today along with the rest of the industry. We remain excited about the new direction of our two segments as we are nearing the end of our first quarter of our 2024 fiscal year.

謝謝你，賈里德。歡迎大家。現在讓我更詳細地回顧一下我們第四季度和 2023 財年的財務狀況。我們對我們在過渡期中取得的進展感到滿意，但今天市場上的逆風仍然活躍，與其他行業一樣。隨著我們接近 2024 財年第一季度末，我們對兩個部門的新方向仍然感到興奮。

As is observed by the peers within our space, we continue to see margin compression on our ammunition segment. The US commercial ammunition market continues to slow from the inflationary impact in global recessionary drivers being felt across most industries.

正如我們所在領域的同行所觀察到的那樣，我們繼續看到彈藥部門的利潤率受到壓縮。由於大多數行業都感受到全球經濟衰退驅動因素的通脹影響，美國商業彈藥市場繼續放緩。

However, our plans to recoup cash tied up in our inventory and accounts receivable have gone according to plan as we ended the year with cash generated from operations of approximately $35.5 million. We were able to reduce our total inventories by $12.8 million in our fourth fiscal quarter as we shifted our direction to a leaner operating model focusing on increased brass sails which afford us higher margins. Additionally, we continue to push forward with improvements to GunBroker.com and expect the payment suite and cart platform to launch in our 2024 fiscal year which would drive growth and profitability to the site.

然而，我們收回存貨和應收賬款中佔用的現金的計劃已按計劃進行，因為我們在年底從運營中產生的現金約為 3550 萬美元。在第四財季，我們將總庫存減少了 1280 萬美元，因為我們將方向轉變為更精簡的運營模式，重點是增加黃銅帆，從而為我們提供更高的利潤率。此外，我們繼續推進對 GunBroker.com 的改進，並預計支付套件和購物車平台將在我們的 2024 財年推出，這將推動該網站的增長和盈利能力。

We ended our fourth quarter with total revenues of approximately $43.7 million in comparison to approximately $70.1 million in the prior-year quarter. This was a decrease of 37.7% from the prior-year quarter.

我們在第四季度末的總收入約為 4370 萬美元，而去年同期約為 7010 萬美元。這比去年同期下降了 37.7%。

For the fiscal year, total revenues were $191.4 million decreasing 20.3% from the prior year. Decrease in revenue was mainly attributable to our ammunition segment and the inflationary impacts that are currently affecting the market. These market conditions also impacted the revenue of our marketplace segment affecting a 7% decrease from the prior-year quarter and a 2% decrease from the prior year in total.

本財年總收入為 1.914 億美元，比上年下降 20.3%。收入減少主要是由於我們的彈藥部門和目前影響市場的通貨膨脹影響。這些市場條件也影響了我們市場部門的收入，比去年同期下降了 7%，比去年同期下降了 2%。

However, operating performance of our marketplace, GunBroker.com, still remains strong. And although our topline revenues wavered, our margins are still comparable to historical performance.

然而，我們的市場 GunBroker.com 的經營業績仍然強勁。儘管我們的收入出現波動，但我們的利潤率仍與歷史業績相當。

Our cost of revenue is approximately $31.8 million for the quarter compared to $49 million in the comparable prior-year quarter. And for the full fiscal year was $136 million compared to $151.5 million in the prior year. This decrease was related to reduced sales volumes and increased commodity and overhead costs. Accordingly, this resulted in a gross margin of $11.9 million compared to $21.1 million in the prior-year quarter, $55.4 million for the year compared to $88.8 million in the prior fiscal year.

本季度我們的收入成本約為 3180 萬美元，而去年同期為 4900 萬美元。整個財政年度為 1.36 億美元，上年為 1.515 億美元。這一減少與銷量減少以及商品和管理費用增加有關。因此，這導致毛利率為 1190 萬美元，而去年同期為 2110 萬美元，全年毛利率為 5540 萬美元，而上一財年為 8880 萬美元。

As our sales volume fell in the reported period, we are navigating a difficult climate as macro trends appear to be impacting our performance. But our transition to more profitable sales activity is currently in effect for our first fiscal quarter of our 2024 fiscal year by shifting our focus to more sales of our premium brass and large caliber ammunition rounds.

由於我們的銷量在報告期內下降，我們正在艱難的環境中航行，因為宏觀趨勢似乎正在影響我們的業績。但是，通過將重點轉移到更多優質黃銅彈藥和大口徑彈藥的銷售上，我們目前正在 2024 財年的第一個財季向利潤更高的銷售活動過渡。

Our balance sheet remains strong with our total current liabilities decreasing by 29% since our prior year end and our total current assets virtually unchanged. But our cash position increased $15.8 million since the prior fiscal year, 68%.

我們的資產負債表依然強勁，我們的流動負債總額自上年末以來減少了 29%，我們的流動資產總額幾乎沒有變化。但我們的現金頭寸比上一財年增加了 1580 萬美元，增加了 68%。

For the quarter, we recorded adjusted EBITDA of approximately $3.8 million compared to prior-year quarter adjusted EBITDA of $10.7 million. For our fiscal year, our adjusted EBITDA was $26.4 million compared to $60.8 million in the prior fiscal year.

本季度，我們記錄的調整後 EBITDA 約為 380 萬美元，而去年同期調整後的 EBITDA 為 1070 萬美元。在我們的財政年度，我們調整後的 EBITDA 為 2640 萬美元，而上一財政年度為 6080 萬美元。

This resulted in a loss per share of $0.03 for the quarter or adjusted net income per share of $0.03 in comparison to a net income per share of $0.00 in the prior-year quarter or adjusted net income per share of $0.07. And for our fiscal year, a loss per share of $0.07 or adjusted net income per share of $0.16 in comparison to net income per share on $0.27 adjusted net income per share of $0.46 in the prior year.

這導致本季度每股虧損 0.03 美元或調整後每股淨收益 0.03 美元，而去年同期每股淨收益為 0.00 美元或調整後每股淨收益為 0.07 美元。在我們的財政年度，每股虧損 0.07 美元或調整後每股淨收入 0.16 美元，而上一年每股淨收入為 0.27 美元，調整後每股淨收入為 0.46 美元。

Looking forward to our next fiscal year, we expect the new direction of our company to increase profitability through increased sales of our brass casings and of performance rifle ammunitions that will increase the gross margins of our ammunition segment. Additionally, the launch of our payment processing suite, carting ability, and analytic offerings are anticipated to position our GunBroker.com marketplace will allow for increases in gross merchandise volume and as a result, increasing revenue and profitability.

展望下一財年，我們預計公司的新方向是通過增加黃銅彈殼和高性能步槍彈藥的銷量來提高盈利能力，這將提高我們彈藥部門的毛利率。此外，我們的支付處理套件、購物能力和分析產品的推出預計將使我們的 GunBroker.com 市場定位，從而增加商品總量，從而增加收入和盈利能力。

Our common stock repurchase plan is underway with approximately 1 million shares repurchased in total under the plan thus far. Current plan is in effect until February 2024 with approximately $28 million in funds remaining under the plan.

我們的普通股回購計劃正在進行中，到目前為止，該計劃共回購了約 100 萬股。當前計劃有效期至 2024 年 2 月，該計劃下仍有約 2800 萬美元的資金。

That concludes our opening remarks. I will now turn the call over to the operator for questions.

我們的開場白到此結束。我現在將把電話轉給接線員詢問問題。

(Operator Instructions) Matt Koranda, Roth MKM.

（操作員說明）Matt Koranda，Roth MKM。

Hey, guys. This is Mike Zabran on for Matt. I guess just starting with the annual manufacturing side, the press release says the transition to more profitable sales activity is currently in effect. Just want to clarify here, does this mean we're fully switched over to the target production mix? If not, how far are we in that process? What does the rest of the transition entail, and when can we expect that production transition to be completed?

大家好。這是 Mike Zabran 的 Matt。我想從年度製造方面開始，新聞稿稱目前正在向利潤更高的銷售活動過渡。只是想在這裡澄清一下，這是否意味著我們已經完全切換到目標生產組合？如果沒有，我們在這個過程中走了多遠？其餘的過渡需要什麼，我們什麼時候可以預期生產過渡完成？

This is Jared Smith. I'll take that question. In terms of the product mix, we fully transitioned. We still have capacity to bring on. We will be bringing on more and more capacity as we find additional sales, but in terms of product mix sales today, we're confident in the directions that we've stated. I couldn't be happier with the team and the progress that we're seeing, long-term contractual volumes that secure factories like ours. Hope that answers your question.

這是賈里德·史密斯。我會回答這個問題。在產品組合方面，我們全面轉型。我們仍然有能力發揮作用。隨著我們發現額外的銷售，我們將帶來越來越多的產能，但就今天的產品組合銷售而言，我們對我們所說的方向充滿信心。我對團隊和我們所看到的進步感到非常高興，長期合同數量確保了像我們這樣的工廠的安全。希望這能回答你的問題。

Great. Yes, that's helpful. I guess switching over to GunBroker, maybe just start by speaking to some of the customer purchasing behavior, any observations and listing trends on GunBroker, and kind of how we expect those trends to pan out for the rest of the year.

偉大的。是的，這很有幫助。我想切換到 GunBroker，也許只是從談論一些客戶購買行為、GunBroker 上的任何觀察和列表趨勢開始，以及我們對這些趨勢在今年餘下時間的預期如何發展。

One of the interesting things that has happened post-COVID is that while we've seen decreased traffic on the website, we're actually seeing increased profitability, and that's because during COVID, there's this new base of sellers and buyers on the community that it's recognized, and we're seeing higher ticket items for sale on the platform. We're seeing better use of the listing options, and the overall percentage of sales has actually increased since the start of the year.

COVID 後發生的一件有趣的事情是，雖然我們看到網站流量減少，但實際上我們看到盈利能力增加，這是因為在 COVID 期間，社區中出現了新的買賣雙方基礎它得到了認可，我們在平台上看到了更高價的商品。我們看到上市選項得到了更好的使用，而且自今年年初以來，總銷售額百分比實際上有所增加。

That's helpful. Last one for me. The recent take rate increases in GunBroker, are they in preparation for the expected improvements, or can we expect the take rate to climb further alongside those improvements when they're actually enacted?

這很有幫助。最後一個給我。 GunBroker 最近的收費率上升，它們是在為預期的改進做準備，還是我們可以預期在這些改進實際實施時收費率會隨著這些改進而進一步攀升？

Hey, this is Rob Wiley. The recent increase in our take rate is actually related to the increase in our average ticket size, which also relates to the ancillary listing options that come from those higher ticket items for sale. We have not increased our take rate related to any of the upcoming activity, and that would just be upside, not take place.

嘿，我是羅伯·威利。最近我們採用率的增加實際上與我們平均票價大小的增加有關，這也與來自那些更高票價的待售項目的輔助上市選項有關。我們沒有提高與任何即將進行的活動相關的接受率，這只是上行，不會發生。

I don't think we'll see a multi-tiered take rate until end of this calendar year, but really into 2024. Right now, the goal is to continue to communicate, bring buyers and sellers on the platform, show and demonstrate the strength of the platform for getting a higher value for your firearms and increase the user community and awareness within these specific genres that drive the overall community and benefits to the user base.

我不認為我們會在本日曆年年底之前看到多層次的採​​用率，但真正到 2024 年。現在，我們的目標是繼續溝通，將買家和賣家帶到平台上，展示和展示平台的力量可以讓你的槍支獲得更高的價值，並增加用戶社區和這些特定類型的意識，從而推動整個社區並為用戶群帶來好處。

(inaudible)

（聽不清）

With credit card and carting coming on in '23, '24, we've got nowhere to go but up.

隨著 23 年、24 年信用卡和卡丁車的出現，我們別無選擇，只能向上發展。

That makes sense. Is there a target take rate that we plan to end the year with? Given the higher take rate, but considering the ammo down cycle that we're in, what type of growth are we expecting for GMB?

這就說得通了。是否有我們計劃在年底達到的目標採用率？鑑於更高的採用率，但考慮到我們所處的彈藥下降週期，我們期望 GMB 的增長類型是什麼？

We do have a high target take rate in mind. I think we envision ourselves eventually being towards the higher single-digit end of the spectrum, but we wouldn't want to increase our take rate without providing value to our users. As we continue to add services to the site, that would be when it would be appropriate for us to increase our take rate. Then, obviously, the GMB from there is dependent on market activity, so it really -- it's hard for us to come out with a number on that one.

我們確實有一個很高的目標採用率。我認為我們設想自己最終會達到更高的個位數，但我們不想在不為用戶提供價值的情況下提高我們的採用率。隨著我們繼續向站點添加服務，那將是我們提高采用率的合適時機。然後，很明顯，那裡的 GMB 取決於市場活動，所以它真的 - 我們很難得出那個數字。

Our increases in take rate are really related to the carting capabilities and bringing in a larger assortment of items that have higher margins. Right now, our goal is to keep the volume on the platform, keep the sellers happy. I don't see us adjusting our take rate to the firearms in the '23 calendar year.

我們採用率的提高實際上與推車能力有關，並帶來了具有更高利潤的更多種類的物品。現在，我們的目標是保持平台上的銷量，讓賣家滿意。我沒有看到我們在 23 日曆年調整我們對槍支的採用率。

What's happening, and Rob alluded to it earlier, is that through listing fees, inventory is sitting a little bit longer. Things are cycling over. People are seeing that the value of the listing options and different abilities to enhance your product on the website, those are really what's driving our increased take rate over the last three to six months.

正在發生的事情，羅布早些時候提到過，是通過上市費用，庫存會稍微長一點。事情正在循環。人們看到列表選項的價值和在網站上增強您的產品的不同能力，這些確實是推動我們在過去三到六個月內提高采用率的原因。

It makes sense. That's all from me, guys. Thanks.

這說得通。伙計們，這都是我的。謝謝。

Thank you for your time, sir.

謝謝你的時間，先生。

Mark Smith, Lake Street Capital Markets.

馬克史密斯，湖街資本市場。

Hi, guys. First question, just kind of big picture, and it's a little bit of follow-up, but just as you guys get pretty good insight into the consumer and consumer trends, and you spoke to some of that here that's just on the quarter, any update as we look at Q1, any updates in consumer behavior that you can speak to, whether it's broadly from your GunBroker data or even within ammunition?

嗨，大家好。第一個問題，只是一個大局，它是一些後續行動，但就像你們對消費者和消費者趨勢有了很好的洞察力一樣，你們在這裡談到了一些關於這個季度的問題，任何在我們查看第一季度時更新，您可以談談消費者行為的任何更新，無論是廣泛來自您的 GunBroker 數據還是彈藥？

Mark, Jared Smith here. Within the ammunition sector, we're certainly seeing a decrease in demand. We're seeing price erosion on commodity products as we're seeing more imports into the US market. I will tell you from ammo side is because we've moved away from those sectors, and we're not trying to compete on 9mm and .223. Our strategy is really about product differentiation, increased caliber growth, and servicing the OEM market. We think we're well positioned to go into the remainder of the year.

馬克，這裡是賈里德·史密斯。在彈藥行業，我們肯定會看到需求下降。隨著我們看到更多的進口商品進入美國市場，我們看到大宗商品價格下跌。我會從彈藥方面告訴你，因為我們已經遠離了這些領域，我們並沒有試圖在 9 毫米和 .223 上競爭。我們的戰略實際上是關於產品差異化、提高口徑增長和服務 OEM 市場。我們認為我們已準備好進入今年剩餘時間。

From a GunBroker side, the overall mix volume is pretty stable from what we've seen, but our consumers are looking for better value, and they're shopping harder, and we think GunBroker is one of the places that they're coming to shop and do comparison pricing. While we may see a lower value or gross monetary value in 2022, we're seeing strong activity in the sectors that we want, which is higher gun value sales. There's still a very, very loyal base out there that goes to GunBroker to find the unique firearm that they're looking for.

從 GunBroker 方面來看，整體混合量與我們所見相當穩定，但我們的消費者正在尋找更好的價值，而且他們更願意購物，我們認為 GunBroker 是他們要來的地方之一購物並比較價格。雖然我們可能會在 2022 年看到較低的價值或總貨幣價值，但我們看到我們想要的行業的強勁活動，即更高的槍支價值銷售。仍然有一個非常非常忠誠的基地去 GunBroker 尋找他們正在尋找的獨特槍支。

And as we add carting and credit card processing and increase our search capabilities, enhance our community engagement with podcast and better tools and kind of dissecting the genres of firearms and services and products that we have on our site, we really think that's where the consumer is going. I hope that answers your question, sir.

隨著我們添加購物車和信用卡處理並增加我們的搜索功能，通過播客和更好的工具增強我們的社區參與度，並在某種程度上剖析我們網站上的槍支和服務和產品的類型，我們真的認為這是消費者的地方正在去。我希望這能回答你的問題，先生。

Yeah, no, that's helpful. As we think about, and you've answered this question just a minute ago, but I want to just dig deeper on it, kind of a shift in manufacturing. Can you just update us on the two sides, because it seems like you're pretty far into it. First, a shift to manufacturing more profitable calibers and rounds, a shift away from .223, 9mm, kind of where that's at.

是的，不，這很有幫助。正如我們所考慮的那樣，您剛剛在一分鐘前回答了這個問題，但我想更深入地研究它，一種製造業的轉變。你能不能給我們介紹一下這兩個方面的情況，因為你似乎已經深入了解了。首先，轉向製造更有利可圖的口徑和彈藥，從 .223、9 毫米等方向轉變。

And then also, Jared, I think you talked previously about kind of a shift back to supplying more of kind of your OEM peers with brass casings. Can you give an update on kind of where that is as well?

然後，賈里德，我想你之前談到過向更多的 OEM 同行供應黃銅外殼的轉變。您能否也提供有關它在哪裡的最新信息？

Absolutely. I'm going to take the second part of that question first. We are and have shifted, and I'd like to take credit for it, but we have a phenomenal team in Minnesota, Wisconsin. They produce, and really the core talent there is around brass rifle manufacturing. I think they do it as well, if not better than anybody else.

絕對地。我將首先回答該問題的第二部分。我們已經並且已經發生了變化，我想為此歸功於我們，但我們在威斯康星州明尼蘇達州擁有一支非凡的團隊。他們生產，真正的核心人才是黃銅步槍製造。我認為他們也這樣做，如果不是比其他人更好的話。

And our mix of products is where we want it today, and it's really just growing the capacities in that medium and large rifle caliber base. Our 50 cal line is coming on, and there's still more and more demand than I ever would have guessed for things like 12.7x108, 50 cal, and these kind of larger premium rifle calibers.

我們的產品組合正是我們今天想要的，它實際上只是在增加中型和大型步槍口徑基地的能力。我們的 50 cal 產品線即將推出，對於 12.7x108、50 cal 和這些更大的高級步槍口徑之類的需求仍然比我想像的要多。

And I know I was taking the second question first, and I forgot the first question, so can you repeat the question?

我知道我先回答了第二個問題，而我忘記了第一個問題，所以你能重複這個問題嗎？

Yeah, just the shift in manufacturing kind of away from 9mm and .223 and into more specialty rifle rounds.

是的，只是製造方式從 9 毫米和 .223 子彈轉向更多的特種步槍子彈。

Yeah, it was really just that simple. You walk over to the machine, and you turn it off, and you divert your purchasing plans and your sales and operating models to where we're seeing and continue to see margin at .38, .357, .44, .45 Long Colt, straight-wall calibers, and the mix of products that the larger manufacturers have fully dedicated lines, dedicated to 9mm, dedicated to the loading, dedicated to the bullet production, dedicated to the assembly, dedicated to the drawing. We just don't have that in our factory and allows us to shift and pivot quickly.

是的，真的就是這麼簡單。您走到機器前，將其關閉，然後將您的採購計劃以及銷售和運營模式轉移到我們所看到的地方，並繼續看到 0.38、0.357、0.44、0.45 Long Colt 的利潤率，直壁口徑，以及較大製造商擁有完全專用線的產品組合，專用於9mm，專用於裝載，專用於子彈生產，專用於組裝，專用於繪圖。我們只是在我們的工廠中沒有這樣的東西，並且允許我們快速轉移和轉動。

One last question. Can you just talk about commodities, labor, other inflationary pressures, maybe even an update since the quarter ended as we're well into Q1 now on what you're seeing on the inflationary pressure side?

最後一個問題。你能談談商品、勞動力、其他通脹壓力，甚至可能是自本季度結束以來的最新情況，因為我們現在已經進入第一季度，你在通脹壓力方面看到了什麼？

Yeah, absolutely. What we saw at the end of 2022 really was a continued and steadied increase in raw materials, copper and zinc were going up, our labor inputs were going up. I think as the recession has set in, those are actually turning around, and we've seen copper prices back off.

是的，絕對。我們在 2022 年底看到的確實是原材料的持續穩定增長，銅和鋅在上漲，我們的勞動力投入也在上漲。我認為隨著經濟衰退的到來，這些實際上正在好轉，我們已經看到銅價回落。

So we actually have a good guy there in terms of our inputs. Primers are still in high demand, but there's additional primer capacity coming on both internationally and domestically, and just the lack of demand has created a little bit of slack in the primer supply.

因此，就我們的投入而言，我們實際上有一個好人。底漆的需求量仍然很大，但國際和國內都有額外的底漆產能，只是需求不足導致底漆供應有點鬆懈。

From a commodity standpoint, you're always going to have your imports flooding in because they've got to sell through those factories from a state of military readiness. But fortunately, we don't have to play there, and we don't have to compete there.

從大宗商品的角度來看，你的進口商品總是會大量湧入，因為它們必須通過那些處於軍事準備狀態的工廠進行銷售。但幸運的是，我們不必在那裡比賽，也不必在那裡比賽。

Perfect. Thank you, guys.

完美的。感謝你們。

Edward Reilly, EF Hutton.

愛德華賴利，EF 赫頓。

Hey, guys. Just wondering if you'd maybe give us some color on the cadence of gross margins in the ammunition segment throughout the next fiscal year, just given the strategy to maybe continue selling slower, moving inventory in the near term. When do you anticipate getting through that inventory, and what might gross margins look like within that segment when it's finally moved?

大家好。只是想知道你是否可以給我們一些關於整個下一財年彈藥部門毛利率節奏的顏色，只是考慮到可能在短期內繼續銷售緩慢、移動庫存的戰略。您預計什麼時候可以通過該庫存，當它最終移動時，該細分市場的毛利率會是什麼樣子？

We're working through that inventory now, Ed. What we're seeing is that we've improved margins by 10% to 15% in pistol. Going into the end of calendar year '22 into '23, we were damn near breaking even on most of our rifle ammunition. A lot of that was imported and resold, but it was still heavily commodity mixed.

埃德，我們現在正在處理那個清單。我們所看到的是，我們將手槍的利潤率提高了 10% 到 15%。進入 22 年年底到 23 年，我們的大部分步槍彈藥都快要收支平衡了。其中很多是進口和轉售的，但仍然是嚴重的商品混合。

We turned those machines off, and we've seen a 10% to 15%, in some months, 17% increase in margins based upon the mix that we're putting out that month. We have grown our margin business by six-fold -- I mean our brass business by six-fold since January, where we're seeing 30% margins.

我們關閉了這些機器，根據我們當月推出的組合，在某些月份裡我們看到了 10% 到 15% 的利潤率增長了 17%。我們的保證金業務增長了六倍——我的意思是我們的黃銅業務自一月份以來增長了六倍，我們的利潤率為 30%。

Okay, great. Thank you for that.

好的，太好了。謝謝你。

Absolutely. We're excited where we're going. I got to tell you what, looking back at where the company's come from in its quick, short seven years, and '22 with a proxy contest and legal fees, we are off to the races in this '24 fiscal year.

絕對地。我們對我們要去的地方感到興奮。我必須告訴你什麼，回顧一下公司在短短七年和 22 年的代理權競爭和法律費用中的發展歷程，我們將在這個 24 財年參加比賽。

Appreciate it.

欣賞它。

This concludes our question-and-answer session. I would now like to turn the call back to Fred Wagenhals for any closing remarks.

我們的問答環節到此結束。我現在想將電話轉回給 Fred Wagenhals 以聽取任何結束語。

Thank you, shareholders and supporters of the company. I appreciate your support. I've watched Jared put together a phenomenal team over the past five months, and I have the privilege of setting into meetings and seeing where we're going in the next year, and I think you're going to see some very exciting things out of this company. Thanks again for everything.

感謝各位股東和公司的支持者。我感謝您的支持。在過去的五個月裡，我看到 Jared 組建了一支非凡的團隊，我有幸參加會議並了解我們明年的發展方向，我認為你會看到一些非常令人興奮的事情離開這家公司。再次感謝一切。

Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。