Outdoor Holding Company (POWW) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the AMMO, Inc. fiscal first quarter 2025 earnings call.

女士們先生們，謝謝你們的支持。下午好，歡迎參加 AMMO, Inc. 2025 財年第一季財報電話會議。

(Operator Instructions)

（操作員說明）

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.

本次電話會議的參與者請注意，本次電話會議的音訊正在透過網路進行現場直播，並且也被錄製用於回放。

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

我現在想將電話轉給該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 Anil's leadership team are Jared Smith, Chief Executive Officer, Rob Reilly, Chief Financial Officer, and Paul Kasowski, Chief Compliance and Transformation Officer.

下午好，感謝您參加今天的電話會議。與我一起加入 Anil 領導團隊的還有執行長 Jared Smith、財務長 Rob Reilly 和首席合規與轉型長 Paul Kasowski。

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 these statements.

在本次電話會議中，管理層將做出前瞻性聲明，包括涉及 AMMO 對未來業績或運營業績預期的聲明。前瞻性陳述涉及風險和其他因素，可能導致實際結果與這些陳述有重大差異。

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. Today's conference call includes non-GAAP financial measures that Amit believes can be useful in evaluating its performance.

有關這些風險的更多信息，請參閱 AMMO 最近提交的表格 10-K 和表格 10-Q 定期報告、今天向 SEC 提交的表格 8-K 以及隨附的公司新聞稿中描述的風險因素呼籲，特別是其中的警告性聲明。今天的電話會議包括非公認會計準則財務指標，阿米特認為這些指標有助於評估其表現。

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 to net loss, its most directly comparable GAAP financial measure. Please see the reconciliation table located in the company's earnings press release. The content of this call contains time-sensitive information that is accurate only as of today August 8, 2024.

您不應孤立地考慮此附加信息，也不應將其視為根據 GAAP 準備的結果的替代品。將此非公認會計原則財務指標與淨虧損進行調節，這是其最直接可比較的公認會計原則財務指標。請參閱公司收益新聞稿中的調節表。本次通話的內容包含時效性訊息，僅截至 2024 年 8 月 8 日為止準確。

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 AMMO Chief Executive Officer, Jared Smith.

除法律要求外，AMMO 不承擔任何公開更新或修改任何資訊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 執行長賈里德史密斯 (Jared Smith)。

Good afternoon, everyone. Thanks for joining us for our first quarter fiscal 2025 earnings call.

大家下午好。感謝您參加我們的 2025 財年第一季財報電話會議。

First, I want to take this opportunity to thank all of our employees for their commitment to this company, the mission, and for their contributions to the massive transformation underway in our business. It takes true grit and perseverance to implement changes at this scale and at this level of quality, we have some extraordinary teams leading the way, and I'm proud to be a part of this ongoing effort.

首先，我想藉此機會感謝我們所有的員工對公司、使命的承諾，以及對我們業務正在進行的大規模轉型的貢獻。實施這種規模和品質水準的變革需要真正的勇氣和毅力，我們有一些非凡的團隊在引領潮流，我很自豪能夠成為這項持續努力的一部分。

And our first quarter of fiscal 2025. We continue to make progress on the primary core initiatives for each of our business units. Transforming our ammunition plant to higher-margin rifle and pistol production and transforming our marketplace to an innovative e-commerce leader.

還有我們 2025 財年第一季。我們繼續在每個業務部門的主要核心舉措上取得進展。將我們的彈藥廠轉變為利潤率更高的步槍和手槍生產，並將我們的市場轉變為創新的電子商務領導者。

Despite the immense challenges of operating in this ever-changing regulated market, we continue to make progress on these initiatives. We remain focused on building long-term shareholder value and strategically positioning this company for sustainable success.

儘管在這個不斷變化的監管市場中營運面臨著巨大的挑戰，但我們在這些舉措上繼續取得進展。我們仍專注於建立長期股東價值，並對公司進行策略性定位，以實現永續成功。

Despite the ongoing turbulence in our industry, we are confident that the company's recalibration is the shortest path to long-term stability and reliability. As has been reported, market-wide ammunition and firearm sales have been down across all segments of the commercial market throughout the summer months. While this is in line with historic seasonality in the industry, we've been slowly pulling production back from non-attractive product segments due to low margins and propellant supply.

儘管我們的行業持續動盪，但我們相信公司的重新調整是實現長期穩定性和可靠性的最短路徑。據報道，整個夏季，商業市場所有領域的彈藥和槍支銷售量均出現下降。雖然這符合該行業的歷史季節性，但由於利潤率低和推進劑供應不足，我們一直在緩慢地從非有吸引力的產品領域撤回生產。

We will continue to focus on strategic product categories that more heavily contribute to the bottom line. We have been building ammunition inventories to accelerate sales this fall for the launch of our new premium rifle hunting segments. And we started delivering on our 12.7 by 108 cases under our contractual obligations to zero delta.

我們將繼續關注對利潤貢獻更大的策略產品類別。我們一直在建立彈藥庫存，以加速今年秋季推出的新高級步槍狩獵細分市場的銷售。我們開始根據零增量合約義務交付 12.7 x 108 個案例。

AMMO is at a pivotal point as we start the second quarter of our 2025 fiscal year. We have been delivering and releasing code over the last month on GunBroker that are starting to take noticeable effect changes that will positively affect both our 8 million-plus registered users and our monthly 13 million unique visitors to the site.

隨著 2025 財年第二季的開始，AMMO 正處於一個關鍵時刻。上個月我們一直在 GunBroker 上交付和發布代碼，這些代碼開始產生顯著的影響變化，這將對我們超過 800 萬的註冊用戶和該網站每月 1300 萬的獨立訪客產生積極影響。

We launched our cart just four months ago in this last month began cross-selling accessories for the firearms purchased through the cart. We will continue to cultivate the algorithms and analytics over the coming months and fine tune the recommended offerings across all categories. As our environment accelerates its learning.

我們在四個月前推出了我們的購物車，在最後一個月開始交叉銷售透過購物車購買的槍支配件。我們將在未來幾個月繼續開發演算法和分析，並微調所有類別的推薦產品。隨著我們的環境加速其學習。

This will be an ongoing development now that we pivoted away from the historic single seller single item framework to a platform with the capability for buyers to buy from multiple sellers and one transaction and includes suggestive placement of products at checkout.

這將是一個持續的發展，因為我們從歷史上單一賣家的單品框架轉向了一個平台，該平台能夠讓買家在一次交易中從多個賣家處購買，並包括在結帳時暗示性地放置產品。

We are building out a solution that will create strong revenues for our shareholders in an e-commerce industry with high barriers to entry and low market consolidation. This is an e-commerce industry and a marketplace that is still in its infancy. While we've been around for 25 years, our transformation in fiscal year 2025 is game changing and will result in an evolution to the face of GunBroker and for our shareholders.

我們正在建立一個解決方案，將為我們的股東在進入壁壘高、市場整合度低的電子商務產業創造強勁收入。這是一個電子商務產業和一個仍處於起步階段的市場。雖然我們已經存在了 25 年，但我們在 2025 財年的轉型將改變遊戲規則，並將導致 GunBroker 和我們股東的面貌發生變化。

As we communicated last quarter, GunBroker has been committed to growing its service offerings and increasing our take rate on the GMV we do through the site. In Q1, we increased our take rate by roughly 40 basis points, 6.2% versus 5.8% over last year. This was accomplished through category fee changes on non-firearm sales increases in advertising revenue, enhanced listing option fees and the launch of collectors Elite.

正如我們上季度所傳達的那樣，GunBroker 一直致力於擴大其服務範圍，並提高我們透過網站獲得的 GMV 的使用率。第一季度，我們的採用率比去年的 5.8% 提高了約 40 個基點，即 6.2%。這是透過非槍支銷售類別費用的變化、廣告收入的增加、提高上市選擇費以及推出收藏精英來實現的。

We see this take rate further increasing in the quarters ahead as we push ahead with our gear fire financing solution and an anticipated increase in non-firearm accessory sales as we monetize the algorithms and tune our cross-selling capabilities.

隨著我們推進裝備消防融資解決方案，我們預計這一比率在未來幾季將進一步增加，並且隨著我們將演算法貨幣化並調整交叉銷售能力，非槍枝配件銷售預計將增加。

Turning to the ammunition division, we are now laser focused on increasing rifle production at the plant and are strategically pulling back on all range training 9 millimeter and low to negative markup margin pistol production as rifle capacity increases.

談到彈藥部門，我們現在專注於增加工廠的步槍產量，並隨著步槍產能的增加，策略性地減少所有訓練9毫米手槍和低至負利潤手槍的生產。

We will continue to shift our production away from high volumes and top line revenue, and we'll continue to focus on streamlining our operations and creating bottom line profitability. This will negatively affect the top line revenue but will create higher margins and higher profitability. The transition from pistol rifle ammunition and their components is hard.

我們將繼續將生產從高產量和高收入轉向，我們將繼續專注於簡化我們的營運和創造底線獲利能力。這將對營收產生負面影響，但會創造更高的利潤率和更高的獲利能力。從手槍步槍彈藥及其組件的過渡是困難的。

The quantities, processes and teamwork or required must be fine-tuned, and it has required us to cultivate talent and the resources to handle the transformation to manufacture this much anticipated rifle capacity while we struggle with overhead absorption due to the lower capacity yields and the new factory. We continue to see opportunities for cost-out initiatives. In conjunction with our manufacturing consulting partner.

數量、流程和團隊合作或所需的數量必須進行微調，這要求我們培養人才和資源來處理轉型，以製造如此備受期待的步槍產能，同時由於產能產量較低和生產成本較低，我們正在努力吸收管理費用。我們繼續看到成本削減計劃的機會。與我們的製造諮詢合作夥伴合作。

We will be working to eliminate inefficiencies in the coming months through continuous improvement initiatives to reduce our labor, scrap and quality issues. This extensive operations review will proceed for the next 20 weeks, focusing on improving financial results by removing critical constraints through continuous improvement initiatives and enhancing our engineering processes.

我們將在未來幾個月內努力透過持續改善措施來消除低效率，以減少勞動力、廢品和品質問題。這項廣泛的營運審查將在接下來的 20 週內進行，重點是透過持續改善措施消除關鍵限制並增強我們的工程流程，從而改善財務表現。

We are excited to see the transformation underway and couldn't be more excited as we come into our second and third quarter.

我們很高興看到變革正在進行，當我們進入第二和第三季時，我們感到無比興奮。

Before I turn it over to our next speaker, I want to remind everyone of the progress we've made since our last earnings call. Just this last month, we delivered 211,000 pieces of 12.7 by 1.840 delta.

在將其交給下一位發言人之前，我想提醒大家自上次財報電話會議以來我們所取得的進展。就在上個月，我們交付了 211,000 件 12.7 x 1.840 delta 的產品。

We were cleared to start production on our 6.5 Creemore IVAC. and BMMPR. rounds, and we increased our take rate from 5.8% to 6.2% in less than a year. We've enabled cross-selling of accessories with firearms inside the marketplace cart in the last 30 days.

我們獲準開始生產 6.5 Creemore IVAC。和 BMMPR。不到一年的時間，我們的接受率從 5.8% 提高到 6.2%。在過去 30 天內，我們已在市場購物車內實現了槍支配件的交叉銷售。

And this last quarter, we signed a financing agreement for with gear fire with an anticipated Q2 rollout and lastly, we executed share repurchases in excess of $1 million this last quarter. One of the biggest initiatives we are now undertaking is streamlining of all corporate and divisional processes in January we brought on Paul, because Askey is our Chief Compliance and Transformation Officer to start identifying opportunities for savings throughout the company and making the changes necessary for improving returns.

上個季度，我們與 gear fire 簽署了一項融資協議，預計第二季推出，最後，我們在上個季度執行了超過 100 萬美元的股票回購。我們現在採取的最大舉措之一是簡化所有公司和部門流程，我們在一月份聘請了Paul，因為Askey 是我們的首席合規和轉型官，他將開始在整個公司尋找節省成本的機會，並做出必要的改變以提高回報。

Paul has 21 years of experience in manufacturing in the consumer product goods space and has a firm handle on our opportunities for cost savings and process efficiencies.

Paul 在消費品領域擁有 21 年的製造經驗，並牢牢把握我們節省成本和提高流程效率的機會。

I will now turn it over to Paul, who is asking our Chief Compliance and Transformation Officer.

我現在將其轉交給保羅，他正在詢問我們的首席合規與轉型官。

Thanks, Jarden. This is an exciting time at AMMO. We're executing on a strategy that will enable long-term profitable growth for the ammunition division by focusing on rifle breasts production while positioning GunBroker as the most versatile online site for outdoor enthusiasts through increased functionality and diversified product offerings.

謝謝，賈登。這是 AMMO 激動人心的時刻。我們正在執行一項策略，透過專注於步槍胸的生產，同時透過增加功能和多樣化的產品供應，將 GunBroker 定位為戶外愛好者最通用的線上網站，從而實現彈藥部門的長期盈利增長。

Since joining the company, we've identified up to $15 billion in cost cutting and working capital opportunities in an effort to simplify our business model, improve visibility to costs, and enable us to actively manage operating margins. We believe these opportunities can be realized over the next 18 to 24 months. Importantly, we now have the organizational alignment and the talent to execute these initiatives this type of change takes time as we institutionalize a cultural mindset that emphasizes profitable growth.

自加入公司以來，我們已經確定了高達 150 億美元的成本削減和營運資金機會，以簡化我們的業務模式，提高成本可見性，並使我們能夠積極管理營運利潤。我們相信這些機會可以在未來 18 至 24 個月內實現。重要的是，我們現在擁有執行這些措施的組織協調和人才，這種類型的變革需要時間，因為我們將強調獲利成長的文化思維制度化。

I will now turn it over to Rob Wiley, our CFO, to discuss our Q1 financial performance in further detail.

我現在將把它交給我們的財務長 Rob Wiley，進一步詳細討論我們第一季的財務表現。

Thank you, Paul. Welcome, everyone. Let me now review the financials for the first quarter of fiscal year 2025 in more detail. We ended the first quarter of our 2025 fiscal year with total revenues of approximately $31 million in comparison to $34.3 million in the prior year quarter. Our ammunition segment made up $18.7 million of total revenues and our marketplace segment generated the remaining $12.3 million revenues.

謝謝你，保羅。歡迎大家。現在讓我更詳細地回顧一下 2025 財年第一季的財務狀況。截至 2025 財年第一季，我們的總營收約為 3,100 萬美元，而上一季的總營收為 3,430 萬美元。我們的彈藥部門佔總收入 1,870 萬美元，我們的市場部門產生了剩餘的 1,230 萬美元收入。

The decrease in revenue was primarily related to a decrease in activity across both our reporting segments, which we believed decreased as a result of the current macroeconomic environment impacting our industry as well as others. Cost of revenues was approximately $21.2 million for the quarter compared to $20.2 million in the comparable prior year quarter.

收入減少主要與我們兩個報告部門的活動減少有關，我們認為，由於當前宏觀經濟環境影響我們的行業以及其他行業，活動減少。本季的收入成本約為 2,120 萬美元，而去年同期的收入成本為 2,020 萬美元。

Cost of revenues for our marketplace segment was $1.8 million and our ammunition segment cost of revenues were $19.4 million. This resulted in a total gross margin for the quarter, $9.8 million or 31.6% compared to $14 million or 40.9% in the prior year period. Our Marketplace segment gross margin was $10.5 million or 85.6%.

我們的市場部門的收入成本為 180 萬美元，彈藥部門的收入成本為 1,940 萬美元。本季總毛利率為 980 萬美元，或 31.6%，去年同期為 1,400 萬美元，或 40.9%。我們的市場部門毛利率為 1,050 萬美元，即 85.6%。

The gross margin of our ammunition segment was negative $0.7 million or negative 4%. The increase in cost of goods sold and decreasing gross profit margin was related to the shift in our sales mix and production inefficiencies in our ammunition segment and comparison to the prior year period. Although our margins decreased from the prior year period.

我們的彈藥部門的毛利率為負 70 萬美元，即負 4%。銷售成本的增加和毛利率的下降與我們的銷售組合的變化和彈藥部門的生產效率低下以及與去年同期相比有關。儘管我們的利潤率較去年同期有所下降。

The robust margins on GunBroker continue to hold strong. And while the margins in our ammunition segment remain down as the plant ramp is still underway, we are beginning to see increased production throughput and expect that we will see increased product marginality in future periods, if we are able to continue with this trend.

GunBroker 的強勁利潤率持續保持強勁。雖然我們的彈藥部門的利潤率仍然下降，因為工廠產能仍在增加，但我們開始看到生產量的增加，並預計，如果我們能夠繼續這一趨勢，我們將在未來一段時間內看到產品邊際性的增加。

There was approximately $ 6.3 million of non-recurring expenses in the quarter related to legal and professional fees, which we have included as an add-back to adjusted EBITDA $6.3 million. Nonrecurring expenses also included $3.2 million expenses related to the contingency stemming from litigation GunBroker was involved with prior to our acquisition. We expect to recover 2.9 million shares of common stock as a result of the settlement, which will be canceled and returned to our authorized, but unissued share pool.

本季約有 630 萬美元的非經常性費用與法律和專業費用相關，我們已將其計入調整後 EBITDA 630 萬美元的附加費用中。非經常性費用還包括與我們收購先前 GunBroker 涉及的訴訟所產生的意外事件相關的 320 萬美元費用。我們預計，和解後將收回 290 萬股普通股，這些普通股將被註銷並返回我們授權但未發行的股票池中。

For the quarter, we recorded adjusted EBITDA of approximately $2 million compared to the prior year quarter adjusted EBITDA of $6.5 million. This resulted in a loss per share of $0.07 for the quarter. Our adjusted net income per share of $0.01 in comparison to a loss per share of $0.02 in the prior year quarter, our adjusted net income per share of $0.04.

本季調整後 EBITDA 約 200 萬美元，而去年同期調整後 EBITDA 為 650 萬美元。這導致本季每股虧損 0.07 美元。我們調整後的每股淨利潤為 0.01 美元，而去年同期每股虧損為 0.02 美元，調整後的每股淨利潤為 0.04 美元。

Looking forward, we are continuing to focus on streamlining our manufacturing processes, which have improved product throughput and marginality for GunBroker efforts to offer a flexible financing option to customers is well underway as well as our cross selling solution which provides our users with the ability to view and purchase compatible items when going through the checkout process, we expect these enhancements will drive sales growth through better functionality and enhanced purchasing power of buyers.

展望未來，我們將繼續專注於簡化我們的製造流程，這提高了 GunBroker 為客戶提供靈活融資選擇的產品吞吐量和邊際性，而我們的交叉銷售解決方案使我們的用戶能夠在結帳過程中查看和購買相容的商品，我們預計這些增強功能將透過更好的功能和增強的買家購買力來推動銷售成長。

Our financial position remains strong given our net working capital position as we have reported $134 million and current assets, including $50.8 million of cash and cash equivalents, along with $42.3 million of current liabilities. We believe this strong position will continue to stimulate our transformation efforts. We repurchased approximately 580,000 shares of our common stock under our purchase plan in the reported quarter, bringing us to just over 1.9 million total shares repurchased under the plan since December of 2020.

鑑於我們的淨營運資本狀況，我們的財務狀況仍然強勁，因為我們報告了 1.34 億美元和流動資產，包括 5,080 萬美元的現金和現金等價物，以及 4,230 萬美元的流動負債。我們相信這一強勢地位將繼續刺激我們的轉型努力。在報告的季度中，我們根據購買計劃回購了約 580,000 股普通股，使我們自 2020 年 12 月以來根據該計劃回購的股票總數略高於 190 萬股。

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

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。謝謝。

(Operator Instructions)

（操作員說明）

Matt Koranda, Roth Capital Partners.

馬特·科蘭達，羅斯資本合夥人。

Good afternoon. This is Joseph on for Matt. We just wanted to know how should we expect casings revenues to ramp up from here. Can we assume to get back to growth in 2Q and beyond? And also regarding your comments on gross margins for the AMMO segment, can we also expect a positive inflection in the second quarter and beyond?

午安.這是約瑟夫替馬特。我們只是想知道腸衣收入將如何從現在開始增加。我們能否假設第二季及以後恢復成長？另外，關於您對 AMMO 部門毛利率的評論，我們是否也可以預期第二季及以後會出現正面的變化？

Joseph, great question. So last quarter, we shipped an additional million in our centerfire rifle brass casings business. And yes, we expect steady progress with rifle case production in the quarters ahead.

約瑟夫，好問題。因此，上個季度，我們的中心火力步槍黃銅彈匣業務的出貨量增加了 100 萬美元。是的，我們預計未來幾季步槍彈匣的生產將穩步進展。

And if I could get just one more in there, anything you have observed in the recent months about firearms in the shooting sports consumer. Did you see any uptick in demand in July? And what about the recent weeks with the president election becoming more competitive? Is there any trends in AOV or financing attach rate.

如果我能再補充一點的話，請介紹一下您最近幾個月在射擊運動消費者中觀察到的有關槍支的情況。您看到 7 月的需求上升嗎？最近幾週，隨著總統選舉的競爭變得更加激烈，情況又如何呢？AOV 或融資附加率是否有任何趨勢？

So what we saw in mix was a decline in Q1, our Q4 into Q1, but we've seen a slight uptick in mix for July, and we anticipate that to hold through the election period. Once again, I'm not a fortune teller when it comes to the election into next. But yes, what we're seeing today, the trend in July looks healthy compared to.

因此，我們看到的混合情況是第一季的下降，第四季度進入第一季度，但我們看到 7 月的混合情況略有上升，我們預計這種情況將持續到整個選舉期間。再說一遍，在下一屆選舉中，我不是算命先生。但是，是的，我們今天看到的，與 7 月的趨勢相比，看起來很健康。

Yes, Q1 and Q4.

是的，Q1 和 Q4。

Thank you for answering my questions. I'll go back in queue.

感謝您回答我的問題。我會回去排隊。

Mark Smith, Lake Street.

馬克史密斯，湖街。

I guess I wanted to start on on GunBroker and kind of the sales declines there at Jared. And this is maybe a big picture question. How much of this is maybe a function of channel inventory and supply is mom-and-pops and other gun stores can have everything in stock that they need and want and if so, how in the future do compete more in kind of steady markets with brick-and-mortar

我想我想從 GunBroker 開始，而 Jared 的銷售額有所下降。這可能是一個大問題。其中有多少可能是渠道庫存和供應的函數，夫妻店和其他槍支商店可以擁有他們需要和想要的所有庫存，如果是這樣，未來如何在穩定的市場中進行更多競爭實體的

Effort question there? Yes, there's definitely a steady inventory that we saw through the summer months with Nix Checks being GunBroker really has to compete in that premium space. We will continue to control the ability to shop and price we own the used market.

有努力的問題嗎？是的，我們在整個夏季都看到了穩定的庫存，Nix Checks 確實必須在這個高端領域進行競爭。我們將繼續控制我們擁有的二手市場的購物能力和定價能力。

We are seeing an increase in firearms in the used market. So there are bright spots within our market segments and our ability to go after and be able to really leverage cross-selling in the months ahead.

我們看到二手市場上的槍支數量增加。因此，我們的細分市場中有一些亮點，而且我們有能力在未來幾個月內追求並真正利用交叉銷售。

But you're right that there is a there's a tendency is wallet share shrinks due to a reduction in consumer discretionary spending that impacts the business.

但你說得對，由於影響業務的消費者可自由支配支出的減少，錢包份額有縮小的趨勢。

But at the end of the day, we own the premium side, we own the used market and with us now turning over and turning on the ability to cross-sell within the car, we see tremendous potential going forward again,

但歸根結底，我們擁有高端市場，我們擁有二手市場，隨著我們現在轉變並開啟汽車內交叉銷售的能力，我們再次看到了巨大的潛力，

And that was kind of my next question, just where are we at as far as cross-selling there are we still just kind of first inning here as far as kind of being able to directly market and show customers when they put a certain firearm and their cards on optic or new grips or whatever it may be for. That is where we are in that process.And are you seeing any early signs of success

這是我的下一個問題，就交叉銷售而言，我們目前處於什麼階段，就能夠在客戶放置某種槍支時直接向他們進行營銷和展示而言，我們仍然只是第一局他們的牌在光學或新的握把或任何可能的用途。這就是我們所處的過程。

functionality just came on in the last 25 as our algorithms get better as we categorize and prioritize what we're positioning in front of the customer. It's part of the answer to that. The take rate is that we're going to be able to and be able to promote products and be able to promote items where we have greater margins and from a competitive ability to grow the business, it's really about getting out in front of those consumers that are shopping these premium items and doing a better job of accessorizing those farms before they check.

隨著我們對在客戶面前的定位進行分類和優先排序，我們的演算法變得更好，功能在過去 25 年才出現。這是答案的一部分。接受率是，我們將能夠並且能夠推廣產品，並且能夠推廣我們有更大利潤的產品，並且從發展業務的競爭能力來看，這實際上是為了在這些消費者面前走出來他們正在購買這些優質物品，並在檢查之前更好地裝飾這些農場。

Okay. And then I think last for me, just shifting over to the AMMO side of the business any additional updates on kind of plant operations? I know you know, with Paul coming on, it sounds like there's a lot of places to kind of come in and pick up nickels and dimes.

好的。然後我想最後對我來說，只是轉移到 AMMO 業務方面，有關工廠運營類型的任何其他更新嗎？我知道你知道，隨著保羅的上場，聽起來好像有很多地方可以進來並撿起五分錢和一毛錢。

But just curious, are there any big headaches that are out there that are kind of remaining from the last couple of quarters and the equipment that's not running things that need replaced. Maybe talk about kind of the big things that are remaining that are kind of hurting operations within the plant and manage

但只是好奇，是否有任何令人頭痛的問題是過去幾季遺留下來的，以及沒有運作的設備需要更換。也許談談剩下的一些大事情，這些事情會損害工廠內的運作和管理

well, well, we just took delivery of an annealing oven that has been an issue for over a year year and a half.

好吧，好吧，我們剛剛收到了一台退火爐，這個問題已經存在了一年半了。

It will be starting up in late August. And that's one hurdle that's been in it. There are certainly issues as we bring on more capacity that will run into.

將於八月下旬啟動。這就是其中的一個障礙。當我們增加更多產能時，肯定會遇到一些問題。

But we've had a massive uptick and 50 count production, a line item that we've not been able to lean into in the past. We have firm deliveries scheduled out for the next year end, medium action two is growing its capability.

但我們的產量大幅增加，產量達到 50 件，這是我們過去無法利用的產品線。我們已確定在明年年底交付，第二個中期行動正在增強其能力。

We've had some mechanical issues with another press. But at the end of the day, more and more rifle production comes on and we are making steady progress, and you will continue to see steady progress in Q2 and Q3.

我們的另一台印刷機遇到了一些機械問題。但歸根結底，越來越多的步槍生產開始出現，我們正在穩步取得進展，您將在第二季和第三季繼續看到穩定進展。

Great. Thank you.

偉大的。謝謝。

And with no remaining questions, we will conclude our question-and-answer session. I'd like to turn the conference back over to Jared Smith for any closing remarks.

沒有剩下的問題了，我們的問答環節就結束了。我想將會議轉回賈里德·史密斯（Jared Smith）做總結發言。

I want to thank you for participating on today's call and for your interest in AMMO, Inc. We look forward to sharing our ongoing progress when we report our fiscal second quarter 2025 results in November. Thanks, and have a great day.

我要感謝您參加今天的電話會議以及對 AMMO, Inc. 的興趣。謝謝，祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。