S&W Seed Co (SANW) 2023 Q2 法說會逐字稿

Good day, and welcome to the S&W Seed Company's Second Quarter 2023 Financial Results Conference Call. (Operator Instructions) I would now like to turn the conference over to Robert Blum from Lytham Partners. Robert, please go ahead.

美好的一天，歡迎來到 S&W Seed Company 2023 年第二季度財務業績電話會議。 （操作員說明）我現在想將會議轉交給 Lytham Partners 的 Robert Blum。羅伯特，請繼續。

All right. Thank you so much, and thank you all for joining us today to discuss S&W Seed Company's Second Quarter Fiscal Year 2023 Financial Results for the quarter ended December 31, 2022. With us on the call representing the company today are Mark Wong, President and Chief Executive Officer; and Betsy Horton, Chief Financial Officer. At the conclusion of today's prepared remarks, we'll open the call for a question-and-answer session. Before we begin with the prepared remarks, please note that statements made by the management team of S&W Seed Company during the course of this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

好的。非常感謝，也感謝大家今天加入我們，討論 S&W Seed Company 截至 2022 年 12 月 31 日止季度的 2023 財年第二季度財務業績。今天代表公司參加電話會議的有總裁兼首席執行官 Mark Wong主管人員;首席財務官 Betsy Horton。在今天準備好的發言結束時，我們將開啟問答環節。在我們開始準備好的評論之前，請注意，S&W Seed Company 管理團隊在本次電話會議期間發表的聲明可能包含經修訂的 1933 年證券法第 27A 節和第經修訂的 1934 年證券交易法第 21E 條，此類前瞻性陳述是根據 1995 年私人證券訴訟改革法的安全港條款作出的。

Forward-looking statements describe future expectations, plans, results or strategies and are generally preceded by words such as may, future, plan or planned, will or should, expected, anticipates, draft, eventually or projected. Such forward-looking statements on this call include, but are not limited to, our guidance on revenue and adjusted EBITDA for the fiscal year ending June 30, 2023, the expected timing of initial grain production by the JV, the anticipated impact of the JV on our business and future prospects, including our positioning to be the foremost of sustainable low carbon energy solutions as well as our financial outlook going forward, the ability of Shell's cash contributions to the JV to fund the JV's operations for a few years. Our focus during the second half of fiscal 2023 on the JV and our 4 key centers of value and our plans for the advancement of our business strategy.

前瞻性陳述描述了未來的預期、計劃、結果或戰略，通常以可能、未來、計劃或計劃、將或應該、預期、預期、草案、最終或預計等詞語開頭。本次電話會議的此類前瞻性陳述包括但不限於我們對截至 2023 年 6 月 30 日的財政年度的收入和調整後 EBITDA 的指導、合資企業初始糧食生產的預期時間、合資企業的預期影響關於我們的業務和未來前景，包括我們定位為可持續低碳能源解決方案的首要者以及我們未來的財務前景，殼牌對合資企業的現金捐助為合資企業幾年的運營提供資金的能力。我們在 2023 財年下半年的重點是合資企業和我們的 4 個關鍵價值中心，以及我們推進業務戰略的計劃。

Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors and other risks identified in the company's 10-K for the fiscal year ending June 30, 2022, and other filings subsequently made by the company with the Securities and Exchange Commission. In addition, to supplement S&W's financial results reported in accordance with U.S. generally accepted accounting principles, or GAAP, S&W will be discussing adjusted EBITDA on this call. This non-GAAP financial measure is not meant to be considered in isolation or as a substitute for the comparable GAAP measure should be read in conjunction with S&W's consolidated financial statements prepared in accordance with GAAP, has no standardized meaning prescribed by GAAP and is not prepared under any comprehensive set of accounting rules or principles.

請聽眾注意，此類陳述存在多種風險和不確定性，可能導致未來情況、事件或結果與前瞻性陳述中預測的結果存在重大差異，包括實際結果可能與前瞻性陳述中預測的結果存在重大差異的風險由於公司截至 2022 年 6 月 30 日的財政年度的 10-K 中確定的各種因素和其他風險以及公司隨後向美國證券交易委員會提交的其他文件而做出的前瞻性陳述。此外，為了補充 S&W 根據美國公認會計原則或 GAAP 報告的財務業績，S&W 將在本次電話會議上討論調整後的 EBITDA 。這種非 GAAP 財務措施不應孤立地考慮或作為可比的 GAAP 措施的替代品，應與 S&W 根據 GAAP 編制的合併財務報表一起閱讀，沒有 GAAP 規定的標準化含義，也沒有編制根據任何一套全面的會計規則或原則。

A description of adjusted EBITDA and a reconciliation of historical adjusted EBITDA to net loss is included at the end of S&W's earnings release issued earlier today, which has been posted on the Investor Relations page of S&W's website. S&W has not reconciled its guidance for adjusted EBITDA for fiscal 2023 to net loss because the reconciling line items that impact net loss are uncertain or out of its control and cannot be reasonably predicted. The actual amount of these items during fiscal 2023 will have a significant impact on net income or loss.

調整後 EBITDA 的描述以及歷史調整後 EBITDA 與淨虧損的對賬包含在今天早些時候發布的 S&W 收益報告的末尾，該報告已發佈在 S&W 網站的投資者關係頁面上。 S&W 尚未將其對 2023 財年調整後 EBITDA 的指導與淨虧損進行核對，因為影響淨虧損的核對項目不確定或不受其控制，無法合理預測。這些項目在 2023 財年的實際金額將對淨收入或虧損產生重大影響。

Accordingly, a reconciliation of this non-GAAP measure is not available without unreasonable efforts. An audio recording and webcast replay for today's conference call will also be available online on the company's Investor Relations page. With that said, let me turn the call over to Mark Wong, Chief Executive Officer for S&W Seed Company. Mark, please proceed.

因此，如果不付出不合理的努力，就無法對這一非 GAAP 措施進行調節。今天的電話會議的錄音和網絡廣播重播也將在公司的投資者關係頁面上在線提供。話雖如此，讓我把電話轉給 S&W Seed Company 的首席執行官 Mark Wong。馬克，請繼續。

Thank you, Robert, and good morning to all of you. This is really an exciting call for us on a number of topics. We continue to meet our 2023 goals on Double Team sales, margin improvement and cost savings. We had another strong quarter of operational execution with growth in revenue and significant improvements in our gross profit margins, which were up 820 basis points, a $1.6 million decrease in our operating expenses, which all translated into a $1.9 million improvement in our adjusted EBITDA. Betsy, of course, will go through all of these numbers. One important item to remember is that Q2 is seasonally our lightest sales quarter of the year. But for this level of improvement on a low revenue quarter shows the leverage we are building through our operations, research, production and sales and marketing are all hitting their targets this year. Now I would like to spend some time talking about the joint ventures we have closed this quarter.

謝謝你，羅伯特，祝大家早上好。對於我們來說，這確實是一個關於許多主題的激動人心的呼籲。我們將繼續實現 2023 年在雙人團隊銷售、利潤率提高和成本節約方面的目標。我們又迎來了一個強勁的運營執行季度，收入增長，毛利率顯著提高，上升了 820 個基點，運營費用減少了 160 萬美元，所有這些都轉化為我們調整後的 EBITDA 增加了 190 萬美元。當然，Betsy 會檢查所有這些數字。要記住的一個重要事項是，第二季度是我們一年中銷售最淡的季度。但對於低收入季度的這種改善水平表明，我們通過運營、研究、生產、銷售和營銷建立的槓桿作用都在今年實現了目標。現在我想花點時間談談我們本季度關閉的合資企業。

We finalized the joint venture with Trigall Genetics to develop end market high-performing wheat varieties for the Australian market, leveraging S&W's existing commercial breeding and footprint with Florimond Desprez wheat termplasm base and Bioceres Crop Solutions HB4 gene for drought tolerance. This is an exciting opportunity for all parties, and we look forward to benefiting from the group's collective capabilities going forward. But the most exciting new partnership announced last week is our worldwide joint venture with Shell for the purpose of developing novel plant genetics, increasing oil seed cover crop acres and managing the crushing of these new acres for biofuels, green diesel and jet fuel production.

我們完成了與 Trigall Genetics 的合資企業，利用 S&W 現有的商業育種和 Florimond Desprez 小麥種質基礎和 Bioceres Crop Solutions HB4 耐旱基因，為澳大利亞市場開發終端市場高性能小麥品種。這對各方來說都是一個激動人心的機會，我們期待著從集團的集體能力中受益。但上周宣布的最令人興奮的新合作夥伴關係是我們與殼牌的全球合資企業，目的是開發新的植物遺傳學，增加油料種子覆蓋作物的面積，並管理這些新面積的壓榨，用於生物燃料、綠色柴油和噴氣燃料的生產。

Importantly, we are partnering with a world leader in Shell that allows us to leverage our seed production, processing and advanced genetics capabilities to be at the forefront of evolution taking place to produce sustainable, low-carbon energy fuels from novel crop species like Camelina. I have talked at a high level for more than a year now about the formation of a partnership with Big Oil, where S&W would be a significant player in this market. And last week's announcement certainly validates the value that S&W brings to the development of more environmentally friendly green transportation fuels.

重要的是，我們正在與殼牌的世界領導者合作，這使我們能夠利用我們的種子生產、加工和先進的遺傳學能力，站在進化的最前沿，從亞麻薺等新型作物物種中生產可持續的低碳能源燃料。一年多來，我一直在高層談論與 Big Oil 建立合作夥伴關係，S&W 將成為這個市場的重要參與者。上週的公告無疑證實了 S&W 為開發更環保的綠色運輸燃料帶來的價值。

The name of the new venture is Vision Bioenergy Oilseeds LLC, or we calling it for short, VBO. So let's dive into this opportunity in a little bit more detail. As I said a moment ago, this is a worldwide joint venture focused on developing novel plant genetics, starting with Camelina and moving to other oils who see cover crops in the future. S&W will contribute our expertise in seed genetics research, technology, production and processing to VBO. Including our seed processing research facilities in Nampa, Idaho, S&W will also contribute its Camelina germplasm and key personnel in research and production have agreed to move from S&W to VBO.

新企業的名稱是 Vision Bioenergy Oilseeds LLC，或者我們簡稱為 VBO。因此，讓我們更詳細地探討這個機會。正如我剛才所說，這是一家專注於開發新型植物遺傳學的全球合資企業，從亞麻薺開始，然後轉向未來會種植覆蓋作物的其他油料。 S&W 將把我們在種子遺傳學研究、技術、生產和加工方面的專業知識貢獻給 VBO。包括我們在愛達荷州南帕的種子加工研究設施在內，S&W 也將貢獻其亞麻薺種質資源，研究和生產方面的關鍵人員已同意從 S&W 轉移到 VBO。

Don Panter, EVP of S&W's Americas unit will become the new CEO of Vision BioEnergy oilseed LLC. With this joint venture, S&W received $13 million, $7 million upfront plus another $6 million on the 1-year anniversary of the signing of this deal, and we'll have the remaining position of our mortgage on the Nampa facility paid off, amounting to approximately $7 million. Altogether a $20 million payment. Now for those not familiar, Camelina is regarded as a scalable and commercially viable oilseed crop with the potential to be a sustainable feedstock source for the energy transition to greener transportation fuels.

S&W 美洲部門執行副總裁 Don Panter 將成為 Vision BioEnergy oilseed LLC 的新任首席執行官。通過這家合資企業，S&W 收到了 1300 萬美元、700 萬美元的預付款以及在該交易簽署 1 週年時的另外 600 萬美元，我們將還清南帕設施的剩餘抵押貸款頭寸，總計大約 700 萬美元。總共支付了 2000 萬美元。現在對於那些不熟悉的人來說，亞麻薺被認為是一種可擴展且具有商業可行性的油料作物，有可能成為能源向更綠色運輸燃料過渡的可持續原料來源。

Camelina is recognized as a low greenhouse gas cover crop around the world. Cover crops are planted between the main crop growing seasons with the aim of not influencing the price or availability of crops grown for food and feed. Using effective controls in management, Camelina has the potential to provide sustainable feedstocks and create social and environmental co-benefits by diversifying farmers' income streams and reducing soil erosion.

亞麻薺被認為是世界範圍內的低溫室氣體覆蓋作物。覆蓋作物在主要作物生長季節之間種植，目的是不影響糧食和飼料作物的價格或供應。通過有效的管理控制，亞麻薺有潛力提供可持續的原料，並通過使農民的收入來源多樣化和減少土壤侵蝕來創造社會和環境的協同效益。

Biofuels such as those made from Camelina oil can be an effective way to help decarbonize customers in hard to update rate sectors where energy density in fuels is key, including the aviation, marine and heavy-duty road transportation sectors. The basic model is as follows: VBO will use its plant-breeding expertise in molecular biology to improve Camelina seed. VBO starts off by growing Camelina, same as we do for our other seed crops and cleaning it in the Nampa plant. We are currently in the second crop year of VBO Camelina seed production. The seed has sold to farmers who grow large acres of Camelina grain. Next, VBO will buy every bushel of Camelina grain from the farmers, the grain will then be collected in a central grain storage elevator and sent for crushing.

生物燃料，例如由亞麻薺油製成的生物燃料，可以有效地幫助難以更新費率的行業客戶脫碳，在這些行業中，燃料的能量密度是關鍵，包括航空、海運和重型公路運輸行業。基本模式如下：VBO 將利用其在分子生物學方面的植物育種專業知識來改良亞麻薺種子。 VBO 從種植亞麻薺開始，就像我們種植其他種子作物一樣，並在 Nampa 工廠對其進行清潔。我們目前正處於 VBO 亞麻薺種子生產的第二個作物年。種子已賣給種植大英畝亞麻薺穀物的農民。接下來，VBO 將從農民手中收購每一蒲式耳的亞麻薺穀物，然後這些穀物將被收集到中央穀物儲存電梯中並送去粉碎。

VBO will contract with industry partners to crush the Camelina grade and separate it into its oil and meal fractions. The oil will be transported and converted into biofuels by Shell North American facilities. The Camelina meal byproducts will be sold for animal feed. In terms of VBO ownership, Shell will initially own 66% of the JV with S&W owning 34%. Upon the achievement of certain specific milestones, we are eligible to receive up to an additional 10% interest in the JV. In addition, S&W will have the option to purchase a 6% membership interest from Shell anytime up to the fifth anniversary of the signing of this agreement. This could eventually put us at a 50-50 ownership percentage in VBO.

VBO 將與行業合作夥伴簽訂合同，壓榨 Camelina 等級並將其分離成油和粗粉部分。這些石油將由殼牌北美工廠運輸並轉化為生物燃料。亞麻薺粉副產品將作為動物飼料出售。在 VBO 所有權方面，殼牌最初將擁有合資公司 66% 的股份，S&W 擁有 34%。在實現某些特定里程碑後，我們有資格獲得合資企業最多 10% 的額外權益。此外，S&W 可以選擇在本協議簽署五週年之前的任何時候從殼牌購買 6% 的會員權益。這最終可能使我們在 IBO 中擁有 50-50 的所有權百分比。

Selling S&W would be equal partners. In addition to the $13 million in cash payments that Shell is making to S&W, plus the $7 million payoff of the Napa Mortgage. Shell is also contributing an additional $25 million in funding through the operations of VBO. One additional point is important to make is that under a production agreement, VBO will continue to utilize the NAPA facilities to process our Alfalfa seed. In fact, we believe that the costs associated with processing our seed will actually decrease under this arrangement since the facility has largely been underutilized and the overhead costs were creating a drag on our cost of goods in alfalfa. So the big question, of course, is what does this look like in the future?

出售 S&W 將是平等的合作夥伴。除了殼牌向 S&W 支付的 1300 萬美元現金外，還有 Napa 抵押貸款的 700 萬美元收益。殼牌還通過 IBO 的運營提供額外的 2500 萬美元資金。需要說明的另一點是，根據一項生產協議，VBO 將繼續利用 NAPA 設施來加工我們的紫花苜蓿種子。事實上，我們認為，在這種安排下，與加工我們的種子相關的成本實際上會降低，因為該設施基本上沒有得到充分利用，而且間接費用正在拖累我們的苜蓿商品成本。所以，最大的問題當然是，這在未來會是什麼樣子？

We expect VBO to carry out initial grain production in late calendar 2023, which is the middle of our fiscal year 2024. The numbers still will be nominal to start, but we are expecting a ramp up quickly. The expectations we have are that VBO will be cash flow positive after the first few years. And that shell funding of the $25 million to VBO will cover our expenses during that period. I though will not provide any ongoing guidance right now, but we'll be talking about that, the VBO future projections in the coming quarters and years. As we have talked about over the past year or so, we are all about creating centers of value. This announcement now creates a new, high-value opportunity for S&W with an agreement that was a long time in coming.

我們預計 VBO 將在 2023 年末進行初始糧食生產，這是我們 2024 財年的中期。開始時的數字仍然是名義上的，但我們預計會迅速增加。我們的期望是，在頭幾年後，IBO 的現金流量將為正。向 IBO 提供的 2500 萬美元空殼資金將支付我們在此期間的開支。雖然我現在不會提供任何持續的指導，但我們將討論 VBO 在未來幾個季度和幾年的未來預測。正如我們在過去一年左右談到的那樣，我們都在創造價值中心。現在，該公告通過一項期待已久的協議為 S&W 創造了一個新的、高價值的機會。

I just couldn't be more pleased to be working with the team at Shell on this exciting opportunity going forward. Now let me cover some of the other key centers of value. Double team, obviously, in the short run is a huge impact on our team's Sorghum operations. As I said before, we believe Double Team has the potential to revolutionize the sorghum market in the same way other weed control technologies have enhanced yields for crops such as corn, soybeans and cotton. During the quarter, we recognized revenue of $1 million on Double team. Remember, the fulfillment season normally starts in about February. So for us to ship $1 million in December ending quarter really highlights the demand for the product and the fact that farmers want to get their hands on it early in order to confirm their supplies. As I have stated in the past, one of the big hindering factors we have is the availability of seed.

我非常高興能與殼牌的團隊合作，抓住這個激動人心的機會。現在讓我談談其他一些關鍵的價值中心。包夾，顯然，短期內對我們隊的高粱作戰影響巨大。正如我之前所說，我們相信 Double Team 有潛力徹底改變高粱市場，就像其他雜草控制技術提高玉米、大豆和棉花等作物的產量一樣。本季度，我們確認 Double Team 的收入為 100 萬美元。請記住，履行季節通常在二月左右開始。因此，我們在 12 月末季度出貨 100 萬美元確實突出了對產品的需求，以及農民希望儘早拿到產品以確認供應的事實。正如我過去所說，我們面臨的一大阻礙因素是種子的可用性。

This past season, we maximized our seed production to ensure we have adequate supply for the projected demand of double-team sorghum. Following a successful harvest of high-quality double-team seed, our finished seed supply is more than enough to hit our $12 million revenue target. These expected sales translate to over 750,000 acres of Double Team to be planted by farmers in 2023. We talked about this some last quarter. But in addition to selling Double Team in the S&W Sorghum Partners brand, we currently have private label partners that are willing to sell Double Team also. At the moment, we have an agreement with 7 different label partners. It is our expectation that nearly 1/3 of the $12 million we expect to sell in fiscal 2023 will come from private label customers. The ability to leverage private label partners and utilize their expertise in distribution systems in other key geographies should be beneficial to us.

在過去的這個季節，我們最大限度地提高了種子產量，以確保我們有足夠的供應來滿足雙隊高粱的預計需求。在成功收穫優質雙隊種子後，我們的成品種子供應足以達到我們 1200 萬美元的收入目標。這些預期的銷售額轉化為 2023 年農民將種植超過 750,000 英畝的 Double Team。我們在上個季度討論過這個問題。但除了在 S&W Sorghum Partners 品牌中銷售 Double Team 之外，我們目前還有願意出售 Double Team 的自有品牌合作夥伴。目前，我們與 7 個不同的標籤合作夥伴達成協議。我們預計，我們預計在 2023 財年銷售的 1200 萬美元中，近 1/3 將來自自有品牌客戶。利用自有品牌合作夥伴並利用他們在其他主要地區的分銷系統方面的專業知識的能力應該對我們有利。

We are also beginning to formulate our double-team strategy for South America, Asia and Africa. In addition, we are piloting Double Team sorghum, forage sorghum this spring, similar to our Double team grain sorghum pilot in 2021. We have the potential to sell about 1,000 acres of forage sorghum with Double Team this spring. To remind everyone, the reason we are so excited about Double Team is the significantly enhanced margin profile of the product. Based on our outlook for $12 million of Double Team sales in fiscal 2023, we expect about 50% or $6 million to drop to the EBITDA line, the majority of which will occur in the second half of this year. Transitioning now to international and U.S. forage.

我們也開始製定我們在南美、亞洲和非洲的包夾戰略。此外，我們將在今年春天試行雙隊高粱、飼用高粱，類似於我們 2021 年的雙隊糧食高粱試點。我們有潛力在今年春季通過雙隊銷售約 1,000 英畝的飼用高粱。提醒大家，我們對 Double Team 如此興奮的原因是該產品的利潤率顯著提高。根據我們對 2023 財年 1200 萬美元 Double Team 銷售額的展望，我們預計 EBITDA 線將下降約 50% 或 600 萬美元，其中大部分將發生在今年下半年。現在過渡到國際和美國草料。

As I mentioned at the beginning, this is seasonally our lightest quarter of the year. So while it is a bit hard to extrapolate certain data points to what the year might be. Let me just make a couple of comments on the international and domestic forage operations that I think are relevant to how we see the back half of the year possibly shaping up. First, we are seeing an increase in demand in MENA in Alfalfa but also increasing pricing. This increase in alfalfa pricing, coupled with the tighter control, cost controls and inventory management we put in place are resulting in a nice improvement in our margins.

正如我在開頭提到的，這是我們一年中最輕的季度。因此，雖然很難將某些數據點推斷到可能是哪一年。讓我就國際和國內草料業務發表一些評論，我認為這些評論與我們如何看待今年下半年可能形成的情況有關。首先，我們看到中東和北非地區對苜蓿的需求增加，但價格也在上漲。苜蓿價格的上漲，加上我們實施的更嚴格的控制、成本控制和庫存管理，使我們的利潤率有了很大的提高。

Additionally, the international shipping challenges we encountered as recently as a few months ago are starting to ease, which we hope will assist in our ability to quickly turn around, see crops and get them out to the door to prior to the end of June, but there still may be risks in the supply chain, and we remain cautious here. I mentioned this last quarter, but it bears repeating. The devastating flooding across Eastern Australia has severely impacted that areas of cropping land and mixed farming enterprises. This has led to a slow start in our Australian domestic business.

此外，我們最近在幾個月前遇到的國際航運挑戰開始緩解，我們希望這將有助於我們迅速扭轉局面，看到農作物並在 6 月底之前將它們運到門口，但供應鏈仍可能存在風險，我們在此保持謹慎。我在上個季度提到了這一點，但值得重複。澳大利亞東部的毀滅性洪水嚴重影響了該地區的耕地和混合農業企業。這導致我們的澳大利亞國內業務起步緩慢。

Also, once the water recedes, we believe there will be opportunities for sustainable remediation required, including replanting of crops and pastures. So on the heels of a very strong quarter, we feel the trends within our forage business remain good, both internationally and domestically. I'll let Betsy expand a bit more on the numbers. As we talked about during our year-end call in September and our Q1 call in November, for fiscal year 2023, we are focused on commercial execution as we begin to leverage all of the work that has been done over the past 5 years.

此外，一旦洪水退去，我們相信將有機會進行所需的可持續補救，包括重新種植農作物和牧場。因此，在一個非常強勁的季度之後，我們認為我們的草料業務在國際和國內的趨勢仍然良好。我會讓 Betsy 在數字上進一步擴展。正如我們在 9 月的年終電話會議和 11 月的第一季度電話會議中談到的那樣，對於 2023 財年，我們將專注於商業執行，因為我們開始利用過去 5 年完成的所有工作。

Simply put, it's about driving towards and beyond profitability in the near term. We remain intensely focused on 4 key centers of value we have outlined previously, including our sorghum technology operations led by Double Team, a next-generation non-GMO hybrid, herbicide-tolerant sorghum solution, our international forage operations, which primarily operate out of Australia and provide products around the world, our U.S. forage operations; and lastly, our specialty crops, which now include our JV with Shell for Camelina biofuel applications as well as VBO we are reiterating our guidance for the year.

簡而言之，它是關於在短期內推動並超越盈利能力。我們仍然專注於我們之前概述的 4 個關鍵價值中心，包括我們由 Double Team 領導的高粱技術業務，一種下一代非轉基因雜交、耐除草劑的高粱解決方案，我們的國際草料業務，主要在澳大利亞和世界各地提供產品，我們在美國的草料業務；最後，我們的特種作物，現在包括我們與殼牌的合資企業，用於 Camelina 生物燃料應用以及 VBO，我們重申了今年的指導方針。

As a reminder, on the high end of guidance, we are expecting $92 million in sales and a negative adjusted EBITDA of $2 million. On the low end, it is $80 million in sales and a negative $7 million in adjusted EBITDA. Betty will once again expand on this momentarily and walk you through the bridges. With the progress made during the first half of the year, we see a path to achieving something closer to the high end of guidance. And with it, having a company that will soon be self-sustainable from a cash flow standpoint. Let me now turn it over to Betsy who will walk you through the numbers in more detail, and we'd be happy to answer questions at the end of her presentation. Betsy, please?

提醒一下，在指導的高端，我們預計銷售額為 9200 萬美元，調整後的 EBITDA 為負 200 萬美元。在低端，銷售額為 8000 萬美元，調整後的 EBITDA 為負 700 萬美元。 Betty 將再次對此進行擴展，並帶您走過橋樑。隨著上半年取得的進展，我們看到了實現更接近指導高端的途徑。有了它，擁有一家從現金流的角度來看很快就能自我維持的公司。現在讓我把它交給 Betsy，她會更詳細地向您介紹這些數字，我們很樂意在她的演講結束時回答問題。貝琪，好嗎？

Thanks, Mark, and thanks to everyone joining us on the call this morning. Let's start on the revenue line. Revenue was $12.9 million for the quarter, an increase of 2.4% compared to $12.6 million in the prior year's second quarter. The increase is primarily attributed to a $1 million increase in North American sorghum sales associated with the company's Double Team next-generation non-GMO herbicide-tolerant sorghum solution as well as an increase of $1.9 million in Alfalfa sales to the MENA region. This was offset by a decrease in sales of sorghum (inaudible) of $1.4 million a $0.7 million decrease in alfalfa sales to the Americas and a $0.7 million decrease in service revenue. Mark hit on the revenue guidance. But to reiterate what we discussed last quarter, our fiscal year '23 revenue guidance is currently in the range of $80 million to $92 million.

謝謝馬克，也感謝今天早上加入我們電話會議的所有人。讓我們從收入線開始。本季度收入為 1290 萬美元，與去年第二季度的 1260 萬美元相比增長 2.4%。這一增長主要歸因於與該公司的 Double Team 下一代非轉基因耐除草劑高粱解決方案相關的北美高粱銷售額增加 100 萬美元，以及中東和北非地區的紫花苜蓿銷售額增加 190 萬美元。這被高粱（聽不清）銷售額減少 140 萬美元、對美洲的紫花苜蓿銷售額減少 70 萬美元以及服務收入減少 70 萬美元所抵消。馬克找到了收入指引。但重申一下我們上個季度討論的內容，我們的 23 財年收入指引目前在 8000 萬至 9200 萬美元之間。

As we look to bridge from $71 million in fiscal 2022 to $80 million to $92 million in 2023, we are making the following growth assumptions. On the low end of the guidance, we are simply taking into account $9 million in incremental revenue growth attributable to Double Team and flat revenue in the rest of our operations. At the higher end of the guidance, in addition to the $9 million of Double Team growth, we are assuming approximately $9 million in growth from international forage operations with about half coming from pricing improvements and half coming from volume. And then about $3 million in assumed growth from our traditional non-DT related sorghum operations. Now turning to margins. Gross margins were 21.3% in the second quarter of fiscal 2023 compared to 13.1% in the prior year's second quarter.

當我們希望從 2022 財年的 7100 萬美元過渡到 2023 年的 8000 萬至 9200 萬美元時，我們正在做出以下增長假設。在指導的低端，我們只是考慮了 Double Team 帶來的 900 萬美元增量收入增長和我們其他業務的持平收入。在指導的較高端，除了 900 萬美元的雙人團隊增長外，我們假設國際草料業務的增長約為 900 萬美元，其中約一半來自定價改進，一半來自銷量。然後我們傳統的非 DT 相關高粱業務的假設增長約為 300 萬美元。現在轉向利潤率。 2023 財年第二季度的毛利率為 21.3%，而去年第二季度為 13.1%。

The key driver to the 820 basis point improvement in gross margin was the increased sales of the company's higher-margin double-team sorghum solution, improved alfalfa margins in the MENA regions due to improved market pricing and the minimization of inventory write-downs. Now we'll transition to operating expenses. Our GAAP operating expenses for Q2 of 2023 were $9 million compared to $10.6 million in the prior year second quarter, a decrease of $1.6 million. A little over half of the expense reduction came from SG&A with the remainder coming from reductions in R&D spend. For OpEx for the remainder of the year, we are still on track for our $5 million in OpEx savings. One thing to keep in mind is that with the creation of both of our JVs, Trigall Australia for wheat and VBO for biofuels, we will be playing an administrative role for both new ventures, handling things such as finance and accounting, HR and IT under a service level agreement.

毛利率提高 820 個基點的關鍵驅動因素是公司利潤較高的雙組高粱解決方案的銷量增加、中東和北非地區由於市場定價改善和庫存減記最小化而提高的苜蓿利潤率。現在我們將過渡到運營費用。我們 2023 年第二季度的 GAAP 運營費用為 900 萬美元，而去年第二季度為 1060 萬美元，減少了 160 萬美元。略多於一半的費用減少來自 SG&A，其餘部分來自研發支出的減少。對於今年剩餘時間的運營支出，我們仍有望實現 500 萬美元的運營支出節省。要記住的一件事是，隨著我們兩家合資企業的創建，Trigall Australia 生產小麥和 VBO 生產生物燃料，我們將在兩個新企業中扮演行政角色，處理財務和會計、人力資源和 IT 等事務服務水平協議。

Therefore, we will have some expenses that we will incur within our operating expense line, but then we will be reimbursed by the joint ventures. And this service income will show up in the other income line. So when we think about the way that this will flow through the income statement next quarter, we will talk about making some adjustments to account for these nuances to confirm that we are meeting our stated goals. For the year, we believe operating expenses, including stock-based comp of about $2 million will be maintained at our previous guidance of about $27 million, once you add back the adjustment for the reimbursement that will likely flow through as other income.

因此，我們將在我們的運營費用線內產生一些費用，但隨後我們將由合資企業報銷。而這項服務收入將出現在另一條收入線中。因此，當我們考慮下個季度損益表的流動方式時，我們將討論進行一些調整以解決這些細微差別，以確認我們正在實現我們既定的目標。今年，我們認為運營費用，包括約 200 萬美元的股票補償，將維持在我們之前的約 2700 萬美元的指導水平，一旦您加回可能作為其他收入流出的報銷調整。

To be clear, this adjustment will come into play in Q3, but wanted to give you a heads up. Now back to EBITDA. At the adjusted EBITDA line, we had a negative adjusted EBITDA of $4.6 million for the second quarter compared to a negative adjusted EBITDA of $6.6 million in the prior year second quarter, an improvement of $1.9 million. This $1.9 million improvement layers on to the $2.4 million improvement to adjusted EBITDA that we saw in the first quarter of this fiscal year. Before I share our outlook for EBITDA for the remainder of the year, let me talk more about the joint venture with Shell, Vision BioEnergy Oilseeds, or VBO. As Mark mentioned, S&W will receive $13 million, $7 million of which was received upfront plus another $6 million which we will receive in 1 year.

需要明確的是，此調整將在第三季度發揮作用，但想提醒您一下。現在回到 EBITDA。在調整後的 EBITDA 線上，我們第二季度的負調整 EBITDA 為 460 萬美元，而去年第二季度的負調整 EBITDA 為 660 萬美元，改善了 190 萬美元。這 190 萬美元的改善與我們在本財年第一季度看到的調整後 EBITDA 的 240 萬美元改善相疊加。在我分享我們對今年剩餘時間的 EBITDA 展望之前，讓我更多地談談與殼牌、Vision BioEnergy Oilseeds 或 VBO 的合資企業。正如 Mark 提到的，S&W 將收到 1300 萬美元，其中 700 萬美元是預先收到的，另外還有 600 萬美元我們將在 1 年內收到。

And Shell also paid off the remaining portion of our mortgage on the Nampa facility of about $7 million. We filed a pro forma balance sheet effective September 30, 2022, in the 8-K that was issued in connection with the agreement. And while we are now discussing the quarter ending December, the general guidelines remain the same. As you may have seen in the pro forma adjustments, there was, of course, the $7 million increase to cash plus the present value of the accounts receivable for the $6 million cash payment Shell will make to us in 1 year. There is a $5.5 million reduction to our property plans and equipment from the transfer of the Nampa facility and a corresponding $7 million in reduction in the long-term debt, which was paid off on the facility.

殼牌還還清了我們在南帕設施的剩餘抵押貸款，約為 700 萬美元。我們在與該協議相關的 8-K 中提交了自 2022 年 9 月 30 日起生效的備考資產負債表。雖然我們現在討論的是截至 12 月的季度，但總體指導方針保持不變。正如您可能已經在備考調整中看到的那樣，當然，現金增加了 700 萬美元，加上殼牌將在 1 年內支付給我們的 600 萬美元現金的應收賬款的現值。南帕設施的轉讓使我們的財產計劃和設備減少了 550 萬美元，相應的長期債務減少了 700 萬美元，這些債務已在該設施上得到償還。

There was also a $22.8 million increase to other assets, which was the calculated fair market value of the company's retention of our 34% ownership in VBO. In terms of the impact to S&W's financial reports on an ongoing basis, Shell has funded the operations of VBO with a $13 million payment at close and will infuse an additional $12 million on the 1-year anniversary in 2024. Because we are a minority owner in the JV, all income and loss will flow through after operating income and will classify as an equity investment. The JV is, of course, expected to lose money in the first year. However, we expect this will be a noncash impact to S&W since the JV has been adequately funded. As Mark stated, the expectations we have are that the JV will be cash positive after the first few years.

其他資產也增加了 2280 萬美元，這是計算出的公司保留我們在 IBO 34% 所有權的公平市場價值。就對 S&W 財務報告的持續影響而言，殼牌已在收盤時支付了 1300 萬美元，為 VBO 的運營提供資金，並將在 2024 年成立一周年時再注入 1200 萬美元。因為我們是少數股東在合資企業中，所有收入和損失都將在營業收入之後流轉，並將分類為股權投資。當然，合資企業預計會在第一年虧損。然而，我們預計這將對 S&W 產生非現金影響，因為合資企業已獲得充足的資金。正如 Mark 所說，我們的期望是合資企業在頭幾年後將實現正現金。

At that time, any profit will likewise flow through its equity in net earnings of affiliates. Any distributions of cash from the JV to S&W will be at the option of the JV's Board of Directors. There's a lot to discuss here. Details are in our various SEC filings and if you have any additional questions, please let me know. Now let's turn back to our EBITDA guidance. Similar to what I did last quarter, let me bridge out how we look to achieve our adjusted EBITDA guidance in fiscal 2023. Let's start with the high end of our assumptions, which is a $2 million adjusted EBITDA loss for the year.

屆時，任何利潤同樣會通過其在關聯公司淨利潤中的權益流出。從合資企業向 S&W 的任何現金分配將由合資企業董事會選擇。這裡有很多東西要討論。詳細信息在我們提交給美國證券交易委員會的各種文件中，如果您有任何其他問題，請告訴我。現在讓我們回到我們的 EBITDA 指南。與我上個季度所做的類似，讓我概述一下我們如何在 2023 財年實現調整後的 EBITDA 指導。讓我們從我們假設的高端開始，即今年 200 萬美元的調整後 EBITDA 虧損。

Starting at a negative adjusted EBITDA of $24 million for fiscal year '22, we assumed the following for fiscal '23, a $5 million improvement to our lower cost or market or LCM charges, $7 million in incremental gross profit due to DT and traditional sorghum revenue growth. The $5 million improvement in international forage gross profit due to both the higher end of our expected growth as well as overall improvements in our production costs and a $5 million improvement from our cuts to our operating expenses. All of that gets us to an expected $2 million adjusted EBITDA loss for fiscal year '23. For the low end of our adjusted EBITDA guidance, I'll remind you what we did for the low end of our revenue guidance. We simply took into account incremental revenue growth attributable to Double Team and assumed flat revenue in the rest of our operations.

從 22 財年 2400 萬美元的負調整 EBITDA 開始，我們假設 23 財年的情況如下：我們的成本或市場或 LCM 費用減少 500 萬美元，由於 DT 和傳統高粱而增加 700 萬美元的毛利潤收入增長。國際草料毛利潤增加 500 萬美元，這歸因於我們預期增長的較高端以及我們生產成本的整體改善，以及我們削減運營費用帶來的 500 萬美元改善。所有這些使我們在 23 財年預計調整後 EBITDA 損失為 200 萬美元。對於我們調整後的 EBITDA 指導的低端，我會提醒您我們為收入指導的低端做了什麼。我們只考慮了 Double Team 帶來的增量收入增長，並假設我們其餘業務的收入持平。

On the low end of our range for adjusted EBITDA, we did the same and assumed only growth in BT, which would be a $6 million adjusted EBITDA loss. We made some additional assumptions. $2 million of the international forage benefit would be captured due to increase in margins. And between our lower of cost or market charges and OpEx combined, we have $9 million of benefit versus 2022. This would end with an adjusted EBITDA loss of about $7 million. You will notice that this bridge does not include S&W's share of VBO loss for fiscal '23. As we've noted, we anticipate the venture to incur losses in the first few years and that 34% of that will flow to our income statement through an equity investment line.

在我們調整後的 EBITDA 範圍的低端，我們做了同樣的事情並假設 BT 僅增長，這將是 600 萬美元的調整後 EBITDA 損失。我們做了一些額外的假設。由於利潤增加，將獲得 200 萬美元的國際草料收益。在我們較低的成本或市場費用和運營支出之間，與 2022 年相比，我們有 900 萬美元的收益。這將導致調整後的 EBITDA 損失約為 700 萬美元。你會注意到，這座橋不包括 S&W 在 23 財年的 IBO 損失份額。正如我們所指出的，我們預計該合資企業將在頭幾年發生虧損，其中 34% 將通過股權投資線流入我們的損益表。

However, given that the venture is adequately funded for these investment years before becoming cash flow generating, it is a noncash impact to S&W, and we plan to exclude it from adjusted EBITDA. Please note that for the Trigall-Australia JV, we are not going to exclude it from adjusted EBITDA because we do anticipate capital calls, albeit minor amount. Now I realize this is a bit complicated, but wanted to share these factors ahead of the second half of our year.

然而，鑑於該風險投資在產生現金流之前的這些投資年內有足夠的資金，這對 S&W 是一種非現金影響，我們計劃將其排除在調整後的 EBITDA 之外。請注意，對於 Trigall-Australia JV，我們不會將其排除在調整後的 EBITDA 之外，因為我們確實預計需要資本，儘管數額很小。現在我意識到這有點複雜，但我想在下半年之前分享這些因素。

Next let's talk about our bank agreement. In December, CIBC extended the maturity of our $21 million credit facility on March 23, 2023. MSP, our largest shareholder, continuing to show their support for S&W by extending the maturity of the $12 million standby letter of credit to back our CIBC facility. We continue to actively pursue long-term refinancing with a replacement lender and appreciate the partnership from CIBC to allow us the extra time post our VVO transaction to close a new deal prior to this extended maturity. So definitely a great first half of fiscal year 2023. There remains a lot of work ahead of us, but we are extremely pleased with the progress and pathway we believe it provides us going forward. With that, I will turn the call back over to Mark.

接下來說說我們的銀行協議。 12 月，CIBC 於 2023 年 3 月 23 日延長了我們 2100 萬美元信貸額度的到期日。我們的最大股東 MSP 繼續通過延長 1200 萬美元備用信用證的到期日來支持我們的 CIBC 貸款，以表示對 S&W 的支持。我們繼續積極尋求與替代貸款人的長期再融資，並感謝 CIBC 的合作夥伴關係，讓我們有更多時間在 VVO 交易後完成新交易，以便在延長期限之前完成新交易。因此，2023 財年上半年絕對是一個偉大的財政年度。我們還有很多工作要做，但我們對我們認為它為我們提供前進的進展和途徑感到非常高興。有了這個，我會把電話轉回給馬克。

Thank you, Betsy. A few closing remarks. We feel really great about the progress made so far this year, and we're especially excited about the new biofuel JV with Shell. Many people in our company have worked very hard to make all of this come true for us. With 2 consecutive quarters highlighting significant improvements in our operating results and now the execution of the critical JVs. I feel we are really beginning to benefit from the groundwork that has been laid over the last few years. As always, we thank you for your continued support of S&W and look forward to your questions in the call. And now I'll turn it over to operator, and we'll collect your questions.

謝謝你，貝琪。一些結束語。我們對今年迄今取得的進展感到非常高興，我們對與殼牌的新生物燃料合資企業感到特別興奮。我們公司的許多人都非常努力地為我們實現這一切。連續兩個季度突出了我們經營業績的顯著改善，現在關鍵合資企業的執行。我覺得我們真的開始從過去幾年奠定的基礎中受益。一如既往，我們感謝您對 S&W 的持續支持，並期待您在電話中提出問題。現在我會把它交給接線員，我們會收集你的問題。

(Operator Instructions) We have a first question coming from Ben Klieve from Lake Street Capital. Ben, please go ahead.

（操作員說明）我們有第一個問題來自 Lake Street Capital 的 Ben Klieve。本，請繼續。

First, a couple of questions on the Shell JV and I guess, first of all, congratulations on getting the finish line here. First question is, given the complexity of this agreement, coupled with the fact that you also signed the JV with Trigall, were there any kind of elevated costs in the second quarter or maybe the first half of the year run like legal expenses or anything of that nature that arose as you guys are getting to the finish line?

首先，關於 Shell JV 的幾個問題，我想，首先，祝賀你在這裡完成了終點線。第一個問題是，鑑於該協議的複雜性，再加上您還與 Trigall 簽署了合資企業，第二季度或今年上半年是否有任何增加的成本，例如法律費用或任何其他費用？當你們到達終點線時出現的那種性質？

Betsy I'll let you answer that.

貝琪，我會讓你回答這個問題。

Yes. Yes. Thanks, Ben, for the question. Yes, we did have some onetime transaction costs for doing both transactions across the line. You'll see that in our Q that we have it as the onetime the $157,000 for Q2, you will see an amount in Q3 as well, probably a similar amount more related to the Shell JV come through. But we are excluding the adjusted EBITDA given that they're a onetime charge.

是的。是的。謝謝，本，提出這個問題。是的，我們確實有一些一次性交易成本，用於跨線進行這兩項交易。您會在我們的 Q 中看到，我們曾經將它作為第二季度的 157,000 美元，您也會在第三季度看到一個金額，可能與 Shell JV 相關的金額相似。但我們將調整後的 EBITDA 排除在外，因為它們是一次性費用。

Okay. Got it. I'm sorry, if that was outlined in the press release, I apologize, I missed that. Okay. Very helpful. And then a question, Mark, you referred to the kind of global implications of the Shell JV and starting with Camelina, but moving into other oil. That's a vast universe. Can you provide a bit of context around kind of crops you're looking at, if the extent to which S&W has been working with these crops already, any kind of help on that would be great.

好的。知道了。對不起，如果新聞稿中概述了這一點，我深表歉意，我錯過了。好的。很有幫助。然後是一個問題，馬克，你提到了殼牌合資企業的全球影響，從 Camelina 開始，但轉向其他石油。那是浩瀚的宇宙。你能提供一些關於你正在研究的作物的背景嗎，如果 S&W 已經在多大程度上與這些作物合作，那麼任何形式的幫助都會很好。

Yes. I mean I think it's really important to have kind of a measured view of these markets. These markets are just gigantic. You could grow a 100 million acres of these oil seeds that are cover crops in the U.S. and you wouldn't have enough to supply the U.S. diesel market. So you're talking about the acres that are now planted more than the acres planted in corn. They are huge markets. It says something about how our society requires energy to support their standard of living. And we are trying to, with Shell, basically focus in on what we both do well, right? And what we do well is we apply science and we improve seeds. And then we produce the seeds and we clean them and then we sell them to farmers to increase acres.

是的。我的意思是我認為對這些市場有一種審慎的看法真的很重要。這些市場是巨大的。你可以種植 1 億英畝的這些油籽，這些油籽在美國是覆蓋作物，但你沒有足夠的油來供應美國柴油市場。所以你說的是現在種植的面積比玉米種植面積多。他們是巨大的市場。它說明了我們的社會如何需要能源來支持他們的生活水平。我們正努力與殼牌一起，基本上專注於我們都擅長的事情，對吧？我們擅長的是應用科學和改良種子。然後我們生產種子並清洗它們，然後將它們賣給農民以增加種植面積。

What Shell does well is they refine liquid fuels and then they distribute and sell these fuels to their customer base. And so it's really a joint venture, and this is why we're so excited about it, where both companies are doing what's down the sweet spot of their experience. And that's why we're so excited about this. To answer your question specifically, we're concerned about the U.S., but we're also focused on the opportunity in the sense that, as Betsy said, we'll probably have losses at VBO for the first couple of years as we ramp up.

殼牌擅長的是提煉液體燃料，然後將這些燃料分銷和銷售給他們的客戶群。所以這真的是一家合資企業，這就是我們對此如此興奮的原因，兩家公司都在做他們經驗的最佳點。這就是我們對此如此興奮的原因。具體回答你的問題，我們擔心美國，但我們也關注這個機會，正如 Betsy 所說，隨著我們的發展，我們可能會在頭幾年在 VBO 出現虧損.

But we've also been in seed production with Shell for 2 years now. We grew a crop last year, which we'll be planting in grain to get the production that Betsy mentioned this year, and we have a current seed crop in the ground, which will allow a big expansion for next year. So this whole time, we've been talking about our potential joint venture and obviously, we couldn't name names until the deal was done. But we -- that doesn't mean we weren't focused on it and that we weren't laying the groundwork because time is so important in agriculture and that Shell was not working with us even before the agreement was signed. So we're really focused on Camelina in the U.S.

但我們也已經與殼牌合作生產種子 2 年了。我們去年種植了一種作物，我們將種植穀物以獲得 Betsy 提到的今年的產量，我們目前在地裡種植種子作物，這將允許明年大幅擴張。所以一直以來，我們一直在談論我們潛在的合資企業，顯然，在交易完成之前我們不能透露姓名。但是我們 - 這並不意味著我們沒有專注於它並且我們沒有奠定基礎，因為時間在農業中非常重要，而且殼牌甚至在協議簽署之前就沒有與我們合作。所以我們真的很關注美國的 Camelina

Other oilseeds that people have talked about or Coronado, which is a cousin to Camelina. -- and a few others. Right now, soybeans are being used a lot for oils for diesel production, but we're not probably going to get into the soybean business. We like these cover crops that are planted after food crops because they give us a second -- they give the farmer and us a second source of oil production and they don't affect the price of food. In 2024, so the geographic implication of your question, we will start looking at Camelina in Australia. So Shell has a conversion plant for biodiesel, green diesel in Asia, in Singapore and wants us to supply VBO to supply oil to that plant next, and we'll be working on other facilities and other geographic regions over the next decade that Shell also has other production facilities.

人們談論的其他油籽或 Coronado，它是 Camelina 的表親。 ——還有其他一些。現在，大豆被大量用於生產柴油的油，但我們可能不會涉足大豆業務。我們喜歡這些在糧食作物之後種植的覆蓋作物，因為它們給了我們第二個——它們給了農民和我們第二個石油生產來源，而且它們不會影響糧食價格。在 2024 年，你的問題的地理意義，我們將開始關注澳大利亞的 Camelina。所以殼牌在亞洲的新加坡有一個生物柴油、綠色柴油的轉化廠，希望我們接下來向 VBO 供應石油給那個工廠，我們將在未來十年內在其他設施和其他地理區域開展工作，殼牌也有其他生產設施。

So we're now focused on really improving Camelina and geographically expanding our production out of the U.S. to other worldwide markets. We'll start breeding programs on other seeds, but we haven't done more than collect germplasm and do the normal things that a seed company does on the other crops. But it's a big opportunity, and we're sort of so thankful that we have this joint venture with Shell, and we're all excited about what that means in the future.

因此，我們現在專注於真正改進 Camelina，並將我們的生產從美國擴展到全球其他市場。我們將開始其他種子的育種計劃，但我們所做的只是收集種質資源和做種子公司對其他作物所做的正常工作。但這是一個巨大的機會，我們非常感謝我們與殼牌公司建立了合資企業，我們都對這對未來意味著什麼感到興奮。

Got you. No, it certainly is exciting. Those helpful context. One more question for me and then I'll get back in line. The $1 million of double-team revenue that was realized in the second quarter. I mean, certainly, that appears to be more sooner than you would have expected. is there anything to read into that, were there farmers distributors that were just so eager to get this in hand that they bought this earlier than was expected? Or was this kind of a random occurrence? I mean what really what drove the premature realization of that initial piece of revenue for this year?

明白了不，這當然令人興奮。那些有用的上下文。再問我一個問題，然後我會回到隊列中。第二季度實現的 100 萬美元包夾收入。我的意思是，當然，這似乎比你預期的要早。有什麼值得解讀的嗎，是否有農民經銷商非常渴望拿到這個，以至於他們比預期更早購買了這個？還是這種隨機事件？我的意思是，究竟是什麼推動了今年初始收入的過早實現？

Yes. The market is very, very excited about Double team. And they saw it last year in small amounts. And our philosophy, if we haven't talked about it is we basically go to farmers and we say, show us the acre that's your weediest and buy double team for that. And if we can solve your grass weed problem on that weedy acre, then maybe you should consider planning Double Team on the rest of your farm. And so the small number of farmers we had last year, were very impressed with the performance of the product. In herbicide resistance, as I've seen over the decades since I've been doing this, once a pharma converts to one herbicide, he usually only wants that one herbicide his own farm.

是的。市場對雙人組非常非常興奮。他們去年看到了少量。我們的理念，如果我們沒有談論它，我們基本上是去農民那裡，我們說，告訴我們你最雜草的那英畝土地，然後為此買雙人隊。如果我們能解決你在那片雜草叢生的土地上的雜草問題，那麼也許你應該考慮在你農場的其他地方計劃雙人組。因此，我們去年的少數農民對該產品的性能印象深刻。在除草劑抗性方面，正如我幾十年來所看到的那樣，一旦一家製藥公司轉而使用一種除草劑，他通常只希望自己的農場使用這種除草劑。

So we won't keep a couple of different kind of herbicides because he's concerned that maybe someone who works for him, might spray the wrong herbicide. So he converts everything to one herbicide. And hopefully, that's what we're going to start seeing in the next couple of years. So this current year that we're in, where we're estimating our 750,000 acres. It's more than acres. We want to get out with a lot of farmers because we want next year to also be another big year. And it's really just people excited about the product and willing to -- if you're a distributor, take it and put it in your flat storage, so farmers can come and get it if they need it. And then if you're a farmer, it's sort of lining up your supply because everyone, as we said before, knows that we're still short on seed for this year, and so they're trying to make sure they have a supply.

所以我們不會保留幾種不同種類的除草劑，因為他擔心為他工作的人可能會噴錯除草劑。所以他把所有的東西都變成了一種除草劑。希望這就是我們將在未來幾年開始看到的。因此，我們所在的今年，我們估計有 750,000 英畝的土地。它超過英畝。我們想和很多農民一起出去，因為我們希望明年也是另一個豐收年。這真的只是人們對產品感到興奮並且願意——如果你是經銷商，把它放在你的平面倉庫裡，這樣農民就可以在需要的時候來拿。然後，如果您是農民，這有點像是在排隊供應，因為正如我們之前所說，每個人都知道我們今年的種子仍然短缺，因此他們正在努力確保他們有供應.

Got it. Got it. Very good. A great start to the year on that then. All right. Well, that's plenty more to talk about. That's probably a good place to leave it.

知道了。知道了。非常好。那是今年的一個良好開端。好的。好吧，還有很多要談的。那可能是離開它的好地方。

(Operator Instructions) our next question is coming from Gerry Sweeney from Roth Capital. Gerry, please go ahead

（操作員說明）我們的下一個問題來自 Roth Capital 的 Gerry Sweeney。格里，請繼續

Just one more question or 2 on the Shell JV. Is there any type of exclusivity in terms of regions or crop type or anything with Shell, anything that we should be aware of?

關於 Shell JV 的問題只有一個或兩個。在地區或作物類型或殼牌的任何方面是否有任何類型的排他性，我們應該注意什麼？

VBO actually has the right to sell Camelina grains to other companies, other international oil companies if it sees an opportunity there. So it's sort of the reverse of exclusivity. But it's our belief that these markets are so vast and shell is such a huge footprint in the diesel market that will be producing for Shell for the next decade, and there won't be any extra grain left over to sell to anybody else.

如果 IBO 看到機會，它實際上有權將亞麻薺穀物出售給其他公司和其他國際石油公司。所以這是排他性的反面。但我們相信，這些市場如此廣闊，殼牌在未來十年將為殼牌生產的柴油市場佔有如此巨大的足跡，而且不會有任何多餘的穀物可以賣給其他人。

So practically, it's an all shell deal and we're more than pleased with that because as I said before, we basically develop seeds and then sell grain to farmers and now we're going to accumulate that grain and buy it back from the farmers and then get it crushed and then sell the oil to Shell. And Shell has just this vast network of conversion plants the diesel and jet fuel. And so we'll be hard-pressed the VBO will be hard pressed to supply that demand that Shell is creating.

所以實際上，這是一筆空殼交易，我們對此非常滿意，因為正如我之前所說，我們基本上是培育種子，然後將糧食賣給農民，現在我們要積累糧食，然後從農民手中買回來然後把它壓碎，然後把油賣給殼牌。殼牌擁有這個龐大的柴油和噴氣燃料轉化工廠網絡。因此，我們將難以滿足 IBO 將難以滿足殼牌正在創造的需求。

Got it. Switching gears to DT sorghum. In the past, we've talked about, I think, a number of acres planted on sorghum planted in the United States. Could you go over where that is? And we also talked about the economics of corn versus sorghum and how that also plays into some of those acres and what (inaudible)

知道了。切換到 DT 高粱。過去，我認為，我們曾討論過在美國種植高粱的英畝數。你能過去看看那是什麼地方嗎？我們還討論了玉米與高粱的經濟性以及它如何影響其中的一些土地以及什麼（聽不清）

Right. Sure. So I think last year, USDA said we had around in these round numbers, 6 million acres of grain sorghum. There are additional also acres of forage sorghum. And we mentioned that DT will also, we believe, provide a big financial improvement for farmers in Forage-Sorghum. So we think that's our next DT market in the U.S. is to introduce the gene into forge sorghum lines. But the big forage the big grain sorghum states are the dryer states. So sorghum requires about 25% less water than corn to make a crop. So the states like Kansas, Nebraska, Texas Eastern Colorado. Those are the big sorghum states. Sorghum is used for both animal feed and ethanol feedstock in those states. I think the USDA is projecting that acres are going to go up maybe to $7 million this year in sorghum just because of water issues.

正確的。當然。所以我想去年，美國農業部說我們有大約 600 萬英畝的高粱穀物。還有額外的畝高粱。我們提到，我們相信，DT 還將為牧草高粱的農民帶來巨大的財務改善。所以我們認為我們在美國的下一個 DT 市場是將該基因引入鍛造高粱品系。但是大糧高粱州的大牧草是乾燥州。所以高粱需要比玉米少 25% 的水來種植作物。所以像堪薩斯州、內布拉斯加州、得克薩斯州東科羅拉多州這樣的州。那些是高粱大州。在這些州，高粱被用作動物飼料和乙醇原料。我認為美國農業部預計今年高粱的種植面積可能會因為水資源問題而增加到 700 萬美元。

And so we think that bids well for our sorghum product line. To your question of how does sorghum compete with corn, I think we're just starting to learn that and the pharma community is starting to learn that. They just didn't have an option before to control grass weeds. And so they planted corn because at least they can control grass weeds in corn. But now we're giving them an option for sorghum. So we're just tickling sort of that demand and farmer thinking piece on corn versus sorghum, and we think sorghum is going to win. But it also depends on the price of corn relative to sorghum and that depends on the Chinese market and lots of other things.

因此，我們認為這對我們的高粱產品線很有利。關於高粱如何與玉米競爭的問題，我認為我們才剛剛開始了解這一點，製藥界也開始了解這一點。他們只是之前沒有選擇來控制雜草。所以他們種玉米是因為至少他們可以控制玉米中的禾本科雜草。但現在我們給了他們高粱的選擇。所以我們只是在挑剔玉米和高粱的需求和農民的想法，我們認為高粱會贏。但這也取決於玉米相對於高粱的價格，這取決於中國市場和許多其他因素。

So but in general, the water problem is a benefit to sorghum and we think that we're going to start seeing that in near future here as water issues and the production states are tougher and tougher in the U.S.

所以但總的來說，水問題對高粱有利，我們認為我們將在不久的將來開始看到這一點，因為水問題和美國的生產狀態越來越艱難。

Got it. And then on the forage side, I believe your forage product helps with digestibility. And just curious if sort of the next steps, sort of the road map. Is it similar to the DT sorghum, the herbicide resistant version right? You have the growth fee to get more bring it out to the market...

知道了。然後在草料方面，我相信你們的草料產品有助於消化。只是好奇接下來的步驟，路線圖。它類似於 DT 高粱，抗除草劑版本嗎？你有增長費用來獲得更多將它推向市場......

Yes. So when I sit on Monsanto's Board we were at the point in time at Monsanto, where we were developing these trade stacks. And trade stacks are incredibly valuable. The farmer gets to access these new technologies that basically, they all making money in one way or the other, right? And so with DT, it is grass control with the new digestibility genes that we're looking at. And one in particular, it's to be able to feed the forage crop to his cattle in the U.S., it would be mainly cattle in Australia, where we're also looking at it. It's cattle and sheep. But the cows don't get sick. And there's no (inaudible) to make the cows sick. We find in our trials that we have a real problem with other animals, rabbits and other things because (inaudible), I guess, must taste so good that they just come and eat it.

是的。因此，當我坐在孟山都的董事會時，我們正處於孟山都的時間點，我們正在那裡開發這些貿易堆棧。貿易堆棧非常有價值。農民可以使用這些新技術，基本上，他們都以一種或另一種方式賺錢，對嗎？因此，對於 DT，我們正在研究的是具有新消化率基因的草地控制。特別是，它能夠將草料作物餵給他在美國的牛，這主要是澳大利亞的牛，我們也在關注它。是牛和羊。但是奶牛不會生病。而且沒有（聽不清）讓奶牛生病。我們在試驗中發現，我們對其他動物、兔子和其他東西有一個真正的問題，因為（聽不清），我猜，一定味道很好，他們才會來吃。

So we're going to have to figure out how to keep these wild animals out of our seed fields because we did have some places where the animals basically ate our crops because it takes is so good. So and they didn't get sick. So it's a fascinating opportunity to put a basically digestibility gene on top of our herbicide gene. There'll be the 2 genes will be stacked in some markets, the 2 genes will be separate in other markets. It depends on whether there's a grass problem or not. And we've been through this before at other companies. So it's not new to us the thinking that we have to do. But it's a great opportunity, and we're super excited that this new digestibility gene will sort of be where the next year, it will sort of be where DT was 2 or 3 years ago. So it's very exciting times in the near term for sorghum for us.

所以我們必須弄清楚如何讓這些野生動物遠離我們的種子田，因為我們確實有一些地方動物基本上吃掉了我們的莊稼，因為它需要非常好。所以他們沒有生病。所以這是一個很好的機會，可以將一個基本的消化率基因置於我們的除草劑基因之上。 2 個基因將在某些市場堆疊，2 個基因將在其他市場分開。這取決於是否有草的問題。我們之前在其他公司也經歷過這種情況。所以我們必須做的想法對我們來說並不新鮮。但這是一個很好的機會，我們非常興奮這個新的消化率基因將在明年出現，就像 2 或 3 年前的 DT 一樣。因此，對於我們來說，短期內高粱是非常激動人心的時刻。

On the Herbicide, you alluded or mentioned at least, I should say, not alluded to, but going international. How do you do that? I mean, I don't want to get the cart before the horse. It sounds like sales are pretty good in the U.S., but what should we be thinking? Or what's the market opportunity? How do you attack that market if you go internationally?

關於除草劑，你至少提到或提到，我應該說，不是提到，而是走向國際。你是怎樣做的？我的意思是，我不想本末倒置。聽上去美國銷量不錯，但我們應該怎麼想呢？或者市場機會是什麼？如果你走向國際，你將如何進軍該市場？

Yes. I mean I want to remind people on the call that there are long development times in ag, and it took us 5 years of investment to bring Double Team to the place where it is making significant contributions to our EBITDA and those giant losses that we incurred now are getting smaller and smaller, and we expect profitability here, hopefully, next year and cash sustainability also. And that's obviously really important in this market where funding is difficult to raise.

是的。我的意思是我想提醒電話中的人們，ag 的開發時間很長，我們花了 5 年的投資才將 Double Team 帶到了它為我們的 EBITDA 和我們招致的那些巨大虧損做出重大貢獻的地方現在越來越小，我們希望明年能在這裡盈利，現金也能持續。在這個難以籌集資金的市場中，這顯然非常重要。

So we're trying to focus on the near-term opportunities and what is going to really make us money and control our costs as we do that and control our inventory obsolescence and stuff like that, as you might imagine, though we have a very strong position in Australia. We're probably in the top 3 C companies in Australia. We actually have more Australian sales if you count the sales to the Middle East, which we manage out of Australia than we have in the U.S. but our U.S. margins with double team are a bit higher.

因此，我們正努力關注近期的機會，以及真正讓我們賺錢並控制我們的成本的方法，並控制我們的庫存過時和類似的東西，正如你想像的那樣，儘管我們有一個非常在澳大利亞的強勢地位。我們可能是澳大利亞頂級 3 C 公司。如果算上對中東的銷售額，我們實際上在澳大利亞的銷售額要多一些，我們在澳大利亞以外的地區管理的銷售額比在美國的銷售額要多，但我們在美國雙人團隊的利潤率要高一些。

So we're putting trial amounts of double-team hybrids into the Australian market. We think that it's going to take some work to make sure that they perform well in Australia. There'll be some selection needed. So it's not going to be as quickly as a new gene like (inaudible) free that we're introducing in the U.S. where we understand the germ plasm really well. We're just going through that process in Australia. So the bad thing is it takes a little bit of time. The good thing is the markets once they respect your trade, you can look forward to a long, long harvest of the value.

因此，我們正在將試用數量的雙隊混合動力車投放到澳大利亞市場。我們認為需要做一些工作才能確保他們在澳大利亞表現良好。需要一些選擇。所以它不會像我們在美國引入的（聽不清）免費的新基因那樣快，我們非常了解種質。我們剛剛在澳大利亞經歷這個過程。所以不好的是它需要一點時間。好消息是，一旦市場尊重您的交易，您就可以期待長期的價值收穫。

I mean, Monsanto harvested their trade stacks for more than 20 years before the competitors had a stack to put into the market. So we think that the STACK trade business is a real improvement over just a single gene trait like double Team.

我的意思是，在競爭對手有堆棧投入市場之前，孟山都已經收穫了 20 多年的貿易堆棧。所以我們認為 STACK 貿易業務是對單基因特徵（如雙重團隊）的真正改進。

Got it. One last question. We talked about licensing (inaudible) double team and like everything else, it's a little bit of a process. I was curious if you could give us an update on if that's still part of the strategy.

知道了。最後一個問題。我們談到了許可（聽不清）雙重團隊，就像其他一切一樣，這是一個過程。我很好奇您是否可以向我們提供最新信息，說明這是否仍然是該戰略的一部分。

Yes. So we're still definitely a strategy. It was the Monsanto strategy to both include the traits in your own bags of seed plus license the traits to your competitors because the profit margins are so big on these traits that there's enough margin to basically allow your competitors to make a profit and the farmer obviously, to make money on the acres that he buys and still have margin left for the originator of the gene. Again, I'll state, it's very, very unusual for a small company like S&W to originate gene. The fact that we have double team and then we have another gene coming in grain sorghum and we're looking at forage sorghums and a worldwide strategy.

是的。所以我們仍然絕對是一種策略。孟山都的策略是將這些性狀包含在您自己的種子袋中，並將這些性狀許可給您的競爭對手，因為這些性狀的利潤率如此之高，以至於有足夠的利潤基本上可以讓您的競爭對手獲利，而農民顯然，在他購買的英畝土地上賺錢，並且仍然為基因的發起者留下利潤。再一次，我要聲明，像 S&W 這樣的小公司發起基因是非常、非常不尋常的。事實上，我們有雙重團隊，然後我們有另一個基因進入穀物高粱，我們正在研究飼料高粱和全球戰略。

All of that is something that big companies doing that small companies. But we've been doing this a long time, the management staff at S&W, and we're comfortable with what you need to do technically to sort of get performance in the farmers field and then get regulatory approval and then increasing the amount of seed. These are all things that give you protection against other people trying to come up with similar genes and like I said, the industry is basically this is such a difficult process that the industry basically licenses the genes from the gene leader rather than tries to develop their own.

所有這些都是大公司在做小公司的事情。但我們已經這樣做了很長時間，S&W 的管理人員，我們對你需要做的技術上的事情感到滿意，以便在農民領域獲得績效，然後獲得監管批准，然後增加種子的數量.這些都是讓你免受其他人試圖提出類似基因的保護，就像我說的，這個行業基本上是一個如此困難的過程，以至於該行業基本上從基因領導者那裡獲得基因許可，而不是試圖開發他們的基因自己的。

That's been the model for the last 25 years. And we think that that's going to continue. And we think that right now, we're in discussions with a couple of our competitors. And hopefully, in the next year or 2, we'll have some announcements there on people who believe that the Double Team is something that they should license and put in their own product lines.

這一直是過去 25 年的模式。我們認為這將繼續下去。我們認為現在，我們正在與我們的幾個競爭對手進行討論。希望在接下來的一兩年內，我們會發布一些關於那些認為雙重團隊是他們應該獲得許可並放入他們自己的產品線的人的公告。

Our next question comes from Brett Reiss from Janney Montgomery Scott. Brett, please go ahead.

我們的下一個問題來自 Janney Montgomery Scott 的 Brett Reiss。布雷特，請繼續。

In doing my due diligence on the seed opportunity with biofuels. I run into this caster bean, is that something you're looking at? Or have you just decided that the Camelina is just the better go to seed to the opportunity with the biofuels?

在對生物燃料的種子機會進行盡職調查時。我遇到了這個蓖麻子，你在看這個嗎？或者您剛剛決定 Camelina 是更好的種子，可以利用生物燃料的機會？

Yes. Camelina is our first choice right now for a lots of different reasons. So again, we look for areas to produce Camelina that we can do it as a second crop, right, as our fathers told us, they're not making any more farmmakers. So we need to my belief is we need to farm every acre twice basically, once a year for food crop and once a year for an oil crop.

是的。 Camelina 是我們現在的首選，原因有很多。因此，我們再次尋找可以生產亞麻薺的地區，我們可以將其作為第二季作物，對，正如我們的父親告訴我們的那樣，他們不再培養更多的農民。因此，我認為我們需要基本上每英畝土地耕種兩次，一年一次用於糧食作物，一年一次用於油料作物。

And those areas up in Idaho, as an example, Montana, the eastern part of Oregon and Washington that are pretty dry. Those areas are pretty key opportunities for Camelina. We could obviously look at we will look at other crops, but it's a little too early to say whether caster bean is going to fit into what we think is a product line that has broad appeal and but yet concentrates on the geographic areas where we have strength, where we have relationships with farmers, that's always important.

例如，愛達荷州、蒙大拿州、俄勒岡州東部和華盛頓州的那些地區非常乾燥。這些領域對 Camelina 來說是非常重要的機會。我們顯然可以看看我們會看看其他作物，但現在說蓖麻子是否適合我們認為具有廣泛吸引力但集中在我們擁有的地理區域的產品線還為時過早力量，在我們與農民建立關係的地方，這始終很重要。

We have to have a reputation, hopefully, a good reputation with farmers. So when we are trying to get them to try a new crop that they are willing to do that. And so we have to be a little bit careful how wide we spread our net geographically because we do want to concentrate on the areas that grow best for Camelina to start with, and we'll be looking at potentially caster bean others in the future. But it's a little too early for us to sort of talk too much about what other oilseed crops might be in our portfolio.

我們必須有聲譽，希望在農民中享有良好聲譽。因此，當我們試圖讓他們嘗試一種新作物時，他們願意這樣做。因此，我們必須小心一點，我們在地理上撒網的範圍有多廣，因為我們確實想集中精力在最適合亞麻薺生長的地區，我們將在未來尋找其他潛在的蓖麻豆。但現在談論我們投資組合中可能包含哪些其他油籽作物還為時過早。

Okay. With the infusion of capital, to S&W with the Shell venture, will that really improve your negotiating cloud that I assume is ongoing with CIBC...

好的。隨著資本的注入，S&W 與殼牌合資企業，這是否真的會改善你的談判雲，我認為正在與 CIBC 進行......

I'll let Betsy answer that question, Betsy?

我會讓貝琪回答這個問題，貝琪？

Yes. No, thanks for the question, Brett. It certainly improves our situation overall, right? It takes out the mortgage that we had on the Nampa facility and allows us to take a facility that was underutilized for just using for alfalfa and to get the processing services that we need from VBO at a more market rate. So it improves cash flow and improve our debt situation as well by taking out that mortgage.

是的。不，謝謝你的問題，布雷特。它肯定會改善我們的整體狀況，對吧？它取消了我們在 Nampa 設施上的抵押貸款，並允許我們使用一個未充分利用的設施，僅用於苜蓿，並以更高的市場價格從 VBO 獲得我們需要的加工服務。因此，它通過抵押貸款改善了現金流並改善了我們的債務狀況。

In addition, the cash that's coming in that has come in and will come in, in 1 year also improved our situation from a banking standpoint. So with all of that, continuing to discuss with lenders and make sure that we get a good refinance in place ahead of the CIBC maturity that's coming up here this spring.

此外，從銀行業的角度來看，1 年內流入和將會流入的現金也改善了我們的狀況。因此，儘管如此，繼續與貸方討論並確保我們在今年春天即將到來的 CIBC 到期之前獲得良好的再融資。

Great. And one last one. Just a brief update on the Stevia initiative.

偉大的。還有最後一個。只是對甜葉菊倡議的簡要更新。

Yes, we're still talking to Ingredion about the Stevia opportunity. There are real opportunities there and the situation with China politically seems to get begetting no better with balloons and other things flowing over North America and the Air Force being forced to shoot them down. You just can't afford to have your full supply of Stevia leaf being grown in China. And that's the situation that Ingredion finds themselves in. So but these things take a while. I mean our agreement with Shell, we negotiated over a year to accomplish that. And that's why I gave my thanks in the call at the end of my statement to all of our S&W people who helped us get there.

是的，我們仍在與 Ingredion 討論甜葉菊的機會。那裡有真正的機會，中國的政治局勢似乎沒有好轉，氣球和其他東西在北美上空流動，空軍被迫擊落它們。您無法承受在中國種植全部甜葉菊葉的成本。這就是 Ingredion 發現自己所處的情況。所以這些事情需要一段時間。我的意思是我們與殼牌達成的協議，我們經過一年多的談判來實現這一目標。這就是為什麼我在聲明末尾的電話中感謝所有幫助我們實現目標的 S&W 人員。

We had over 50 meetings with Shell. And because it was a complicated deal because it involved a worldwide relationship with Shell, not just the North American relationship they had to make sure that we were the right partner and we had to make sure that they were the right partner in the sense that, obviously, as I stated, we're both doing what we -- what are in kind of the sweet spot of our execution, right? We're a seed company that then sells to farmers. And they're basically a liquid fuels company that refines themselves to their customer base. And this isn't about companies trying to do something where they have maybe not much experience.

我們與殼牌舉行了 50 多次會議。因為這是一項複雜的交易，因為它涉及與殼牌的全球關係，而不僅僅是北美關係，他們必須確保我們是合適的合作夥伴，我們必須確保他們是合適的合作夥伴，從某種意義上說，顯然，正如我所說，我們都在做我們 - 什麼是我們執行的最佳點，對吧？我們是一家種子公司，然後賣給農民。他們基本上是一家液體燃料公司，可以根據客戶群改進自己。這與公司試圖在他們可能沒有太多經驗的地方做某事無關。

This is both of the companies in the sweet spot of what they've been doing for decades. And so we're just more than pleased that Shell came about. And we take those lessons as we talk to Ingredion about stevia. So I have nothing new to announce on Stevia, to your question. But we're still working on that. We still think it's a great opportunity. We've been breeding that crop for 12 years, and we think there's a lot of value there, and we'll continue to work with Ingrideon (inaudible) to remember who is the market leader in the U.S.. U.S market is about $600 million to $800 million in stevia sales finished product sales.

這是兩家公司幾十年來一直在做的事情的最佳結合點。因此，我們對殼牌的出現感到非常高興。當我們與 Ingredion 談論甜葉菊時，我們吸取了這些教訓。因此，對於您的問題，我沒有關於甜葉菊的新消息要宣布。但我們仍在努力。我們仍然認為這是一個很好的機會。我們已經培育這種作物 12 年了，我們認為那裡有很多價值，我們將繼續與 Ingrideon（聽不清）合作，記住誰是美國市場的領導者。美國市場約為 6 億美元甜葉菊成品銷售額達到 8 億美元。

And we think it's a big market and we think Ingredion is the right partner. We just haven't come to an understanding of what each of the company's contribution is going to be yet.

我們認為這是一個很大的市場，我們認為 Ingredion 是合適的合作夥伴。我們只是還沒有了解每家公司的貢獻將是什麼。

And this concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks. Thank you.

我們的問答環節到此結束。我想將會議轉回管理層聽取任何閉幕詞。謝謝。

So thanks, everyone, for being on the call. It's one of those calls that hopefully we'll all look back and it's a point in history that is changemaker for S&W Seeds. We remain focused on the near term on our traits in sorghum, on DT this year and the new traits coming. And we're focused on cost control and building sales and making sure that we can get the profitability as quickly as possible.

所以，謝謝大家的來電。這是希望我們都能回顧的那些電話之一，它是歷史上的一個點，它是 S&W Seeds 的變革者。我們仍然關注近期的高粱性狀、今年的 DT 和即將推出的新性狀。我們專注於成本控制和建立銷售，並確保我們能夠盡快獲得盈利。

In addition, though, the Shell thing is just a huge opportunity. The markets are gigantic, and you'll be hearing more about that opportunity from us over the next earnings calls as we work with Shell and define the details of our plan in in real time. So thanks again, everyone, for being on the call, and we look forward to speaking with you in the next couple of quarters. Thanks again...

此外，殼牌的事情只是一個巨大的機會。市場是巨大的，在我們與殼牌合作並實時定義我們計劃的細節時，您將在下一次財報電話會議上從我們那裡聽到更多關於這個機會的信息。再次感謝大家的來電，我們期待在接下來的幾個季度與您交談。再次感謝...

(Operator Instructions)

（操作員說明）