Splash Beverage Group Inc (SBEV) 2024 Q3 法說會逐字稿

Greetings. Welcome to the Splash Beverage Group third quarter conference call. (Operator Instructions) Please note, this conference is being recorded. I would now like to turn the conference over to your host, Robert Nistico, CEO of Splash Beverage Group. You may begin.

問候。歡迎參加 Splash Beverage Group 第三季電話會議。（操作員指示）請注意，本次會議正在錄音。現在，我想將會議交給主持人、Splash Beverage Group 執行長 Robert Nistico。你可以開始了。

Good afternoon, everyone. This is Robert Nistico, CEO of Splash Beverage Group. I also have Julius Ivancsits, our CFO; and Bill Meissner, our President and Chief Marketing Officer. We appreciate everyone taking the time this morning for joining us on our quarterly earnings call for the period ending September 30, 2024. Before we get started, I want to reiterate why I started Splash and the investment thesis behind the business.

大家下午好。我是 Splash Beverage Group 的執行長 Robert Nistico。我還有我們的財務長 Julius Ivancsits；以及我們的總裁兼首席行銷長 Bill Meissner。我們感謝大家今天早上抽出時間參加我們截至 2024 年 9 月 30 日的季度財報電話會議。在我們開始之前，我想重申我創辦 Splash 的原因以及該業務背後的投資論點。

Splash Beverage Group is focused on identifying, acquiring and building early-stage or undervalued beverage brands with strong growth potential in both the US and International markets. Additionally, the company operates its division Qplash, which markets well-known beverage brands to both business-to-business and business-to-consumer customers, leveraging e-commerce direct for direct delivery.

Splash Beverage Group 專注於在美國和國際市場上尋找、收購和打造具有強勁成長潛力的早期或被低估的飲料品牌。此外，該公司還經營其部門 Qplash，該部門向 B2B 和 B2C 客戶銷售知名飲料品牌，利用電子商務直接進行直接交付。

The company has had its challenges but the value proposition of creating this organization is solid, and we have built a foundation to generate attractive returns for all our shareholders. Let me pivot now to topics that will be covered during the call.

公司面臨著挑戰​​，但創建這個組織的價值主張是堅實的，我們已經建立了為所有股東創造可觀回報的基礎。現在讓我轉到通話中將要討論的話題。

On our agenda today: we will talk about Q3 2024 results; distribution and brand strategy; capital structure and financing update; mergers and acquisition update; and of course, a Q&A session where we look forward and hope that we have a lot of good hard questions. Now let's begin with tailwinds and headwinds since the last update.

今天的議程包括：我們將討論 2024 年第三季的業績；分銷和品牌策略；資本結構和融資更新；併購更新；當然還有一個問答環節，我們期待並希望能夠提出很多好的難題。現在讓我們從上次更新以來的順風和逆風開始。

With regard to tailwinds, we've expanded our distribution network in numerous territories. The restart of -- we're in the process of the restart of Qplash, Splash's online resale business, which began at the end of August. Q3 2024 Splash gross margins at 30%, up from 23% in Q2 2024 and 11% in Q1 2024.

就順風而言，我們已經在眾多地區擴大了分銷網絡。我們正在重啟 Qplash，即 Splash 的線上轉售業務，該業務於 8 月底開始。2024 年第三季 Splash 毛利率為 30%，高於 2024 年第二季的 23% 和 2024 年第一季的 11%。

Strategic sourcing programs is starting to have an impact, which is great. Lower SG&A spending for the period, down $500,000 from Q2 '24. Capital raise of approximately $8 million since August of 2024, approval of our Board of Directors, auditors and issued shares of stock, supported by our shareholders.

戰略採購計劃開始產生影響，這很好。本期間銷售、一般及行政費用 (SG&A) 支出較低，較 24 年第二季減少 50 萬美元。自 2024 年 8 月以來籌集約 800 萬美元的資本，獲得董事會、審計師的批准並發行股票，並得到股東的支持。

Headwinds, liquidity, ongoing challenges for well over a year since 2023, that's really been our main issue. ABG TapouT lawsuit, we've been getting questions on this. Since we decided to not continue with TapouT, we're in a little bit of a legal struggle with these guys, but we believe it will come through this in a very positive fashion. Timing of funding inflows, delays in liquidity impacting inventory and sales. It's difficult on liquidity when you're -- can't control the timing of the inflow of cash. I'll now turn it over to our CFO, Julius, and we will provide an update on financial performance in the quarter.

自 2023 年以來，逆風、流動性和持續一年多的挑戰一直是我們面臨的主要問題。ABG TapouT 訴訟，我們一直在關注此事。因為我們決定不再與TapouT合作，所以我們與這些人之間發生了一些法律糾紛，但我們相信我們會以非常積極的方式解決這個問題。資金流入的時間、流動性延遲影響庫存和銷售。當你無法控制現金流入的時間時，流動性就會變得很困難。現在我將把麥克風交給我們的財務長朱利葉斯 (Julius)，我們將提供本季財務表現的最新情況。

Thank you, Robert. As Robert previously alluded to, the headwind on liquidity and timing of inflows impacted our Q3 performance. Q3 '24 net sales were $381,000, down slightly from Q2 '24, just a little over $1 million. Sales declines were driven by limited inventory due to the liquidity challenges that we mentioned previously. It is important to note the business did restart its resale business, Qplash in August and continues to ramp up.

謝謝你，羅伯特。正如羅伯特之前提到的，流動性和資金流入時機的不利因素影響了我們第三季的表現。24 年第三季淨銷售額為 381,000 美元，較 24 年第二季略有下降，略高於 100 萬美元。銷售額下降是由於我們之前提到的流動性挑戰導致庫存有限。值得注意的是，該公司確實在 8 月重啟了其轉售業務 Qplash，並且繼續擴大業務。

This is key for our liquidity given it has short cash conversion cycles and high gross margins. Q3 gross margins increased $244,000 from Q2 to $981,000 in Q3. The margin improvement was driven by lower wine cost at Copa di Vino and Qplash business, which had gross margins of 59%. Compared to Q1 '24, gross margin percentages have almost tripled from 11% to 30%. Q3 OpEx was down $1 million from the prior quarter, driven by expense controls, elimination of the TapouT license fee and lower share-based compensation.

由於現金轉換週期短且毛利率高，這對我們的流動性至關重要。第三季毛利率較第二季增加 244,000 美元，達到 981,000 美元。利潤率的提高是由於 Copa di Vino 和 Qplash 業務的葡萄酒成本降低，毛利率達到 59%。與 24 年第一季相比，毛利率幾乎增加了兩倍，從 11% 增加到 30%。第三季營運支出較上一季下降 100 萬美元，原因是費用控制、取消 TapouT 授權費以及股權激勵減少。

EBITDA for the period was a loss of $1.7 million for the period versus a loss of $2.2 million in Q2 '24, driven by higher gross margins and lower SG&A spending. The $1.7 million loss in the period is a $2 million improvement compared to Q3 '23. Net loss for Q3 was $4.6 million. This is a $700,000 improvement from prior quarter and $1 million lower than Q3 '23. Liquidity and working capital, as previously noted, was tight for the period, but Splash did end up with a cash balance of $457,000 in the bank compared to a very nominal month at the end of Q2 '24.

本期間的 EBITDA 虧損 170 萬美元，而 2024 年第二季的虧損為 220 萬美元，這主要是由於毛利率上升和銷售、一般及行政費用 (SG&A) 支出下降。該期間的 170 萬美元損失與 23 年第三季相比改善了 200 萬美元。第三季淨虧損為 460 萬美元。這比上一季增加了 70 萬美元，比 23 年第三季減少了 100 萬美元。如前所述，該期間的流動性和營運資金緊張，但與 2024 年第二季末的正常水平相比，Splash 的銀行現金餘額最終達到 457,000 美元。

Collections were solid for the period. Inventory was flat compared to the prior quarter as well. I would like to turn this over to Bill Meissner, our President and CMO, to discuss commercial trends in the business, including distribution wins and brand strategy.

該時期的收藏品很豐厚。與上一季相比，庫存也持平。我想把這個主題交給我們的總裁兼首席行銷長比爾·邁斯納 (Bill Meissner)，討論業務中的商業趨勢，包括分銷勝利和品牌策略。

Thank you, Julius. While the revenue was slightly down from Q2 2024, we continue to lay the foundation for growth in 2025 and beyond. Despite significant shipping challenges driven by liquidity, backlog orders plus shipped orders for Q3 were up 3.3% versus Q3 a year ago on Copa and 12.2% on Pulpoloco. Actual shipped orders were up on Pulpoloco 7.5% versus Q3 a year ago.

謝謝你，朱利葉斯。雖然營收較 2024 年第二季略有下降，但我們將繼續為 2025 年及以後的成長奠定基礎。儘管流動性給航運帶來了巨大的挑戰，但 Copa 航運第三季度的積壓訂單和已發貨訂單較去年同期增長了 3.3%，Pulpoloco 航運第三季度的積壓訂單和已發貨訂單較去年同期增長了 12.2%。Pulpoloco 的實際出貨訂單比去年同期第三季成長了 7.5%。

In past shareholder communications, we have emphasized the importance of distribution for success in our category and continue to expand our distribution network. Copa di Vino and Pulpoloco had key Pacific Northwest distribution expansion, giving the brands full state coverage in the state of Washington with both King Beverage and Olympic Eagle, two AB wholesalers there. We expanded our Northeast distribution coverage in Massachusetts with Atlas Distributing, and we expanded our Southwest distribution coverage in the important state of Texas.

在過去的股東溝通中，我們強調了分銷對於我們產品類別成功的重要性，並將繼續擴大我們的分銷網絡。Copa di Vino 和 Pulpoloco 在太平洋西北地區實現了關鍵的分銷擴張，透過 King Beverage 和 Olympic Eagle（兩家 AB 批發商）使這些品牌在華盛頓州實現了全州覆蓋。我們透過 Atlas Distributing 擴大了我們在馬薩諸塞州的東北分銷覆蓋範圍，並擴大了我們在重要州德克薩斯州的西南分銷覆蓋範圍。

Our new distributor partner there, Reed Beverage gives Splash now full coverage in all of West Texas, including Amarillo, Lubbock and El Paso for all the brands. On the retail win front, Circle K has authorized Copa di Vino for all franchise stores. The 4 SKUs that were authorized are Red Blend, Cabernet, Sauvignon Blanc and Chardonnay.

我們在那裡的新分銷合作夥伴 Reed Beverage 為 Splash 的所有品牌提供了整個西德克薩斯州（包括阿馬裡洛、拉伯克和埃爾帕索）的全面覆蓋。在零售方面，Circle K 已授權所有特許經營店銷售 Copa di Vino。獲得授權的 4 個 SKU 分別是紅葡萄酒混釀、赤霞珠、長相思和霞多麗。

Circle K is one of the leading C-store chains and there are more than 800 franchise locations in the US. The Pennsylvania Liquor Control Board through our broker breakthrough beverage has authorized our exciting new tequila brand, Chispo. Our team has been relentless even with the challenges. As liquidity normalizes, these achievements will set a higher floor for sustainable success moving forward. I will now turn it back over to Robert, who will provide an update on our capital structure.

Circle K 是領先的便利商店連鎖店之一，在美國擁有 800 多家特許經營店。賓州酒類管理委員會透過我們的經紀人突破性飲料授權了我們令人興奮的新龍舌蘭酒品牌 Chispo。即使面臨挑戰，我們的團隊也始終堅持不懈。隨著流動性正常化，這些成就將為未來可持續的成功奠定更高的基礎。現在我將把麥克風交還給羅伯特，他將提供有關我們資本結構的最新資訊。

Thank you for the update, Bill. I want to publicly thank Bill and the commercial team for its dedication over the last year in a tough liquidity environment. Before I provide an update on the capital raise over the last quarter or so, I also want to thank our legacy investors who continue to support the vision of Splash Beverage. The confidence in the business and the leadership team is very much appreciated. Okay.

謝謝你的更新，比爾。我要公開感謝比爾和商業團隊在過去一年艱難的流動性環境中所做的奉獻。在我介紹上個季度左右的融資情況之前，我還要感謝我們繼續支持 Splash Beverage 願景的傳統投資者。我們非常感謝大家對企業和領導團隊的信任。好的。

Now on to the capital structure. On October 16, of this year, 2024, we did release a press release with completion of the first tranche of the capital raise for our strategic acquisition. Since August of 2024 of this year, the company has secured commitments of roughly $8 million of fundraising to expand its markets and presence and support working capital.

現在討論資本結構。今年（2024 年）10 月 16 日，我們確實發布了一份新聞稿，宣布我們策略性收購的第一筆融資已經完成。自今年 2024 年 8 月以來，該公司已獲得約 800 萬美元的融資承諾，用於擴大其市場和影響力並支持營運資金。

The capital raise was achieved through private placement of convertible notes along with equity in the pending acquisition. The capital will provide Splash Beverage Group essential working capital for its legacy business while enabling it to pursue or I should say, us to pursue complementary acquisition anticipated to enhance the company's product offerings and operational efficiencies.

此次融資是透過私募可轉換票據以及待收購的股權實現的。這筆資金將為 Splash Beverage Group 的傳統業務提供必要的營運資金，同時使其能夠進行（或者我應該說，我們進行）互補性收購，以增強公司的產品供應和營運效率。

This is very important. We continue to actively recruit investors to ensure we have the necessary liquidity to support our growth. While the response from family office and individuals has been fantastic, timing of receipt of funds has been a challenge. To complete our retail level fundraising, we're actively working with two additional institutions to raise significant amounts of capital with targets between $7 million and $12 million.

這非常重要。我們將繼續積極招募投資者，以確保我們擁有支持成長所需的流動性。儘管家族辦公室和個人的反應非常好，但收到資金的時間卻是一個挑戰。為了完成我們的零售層面的籌款，我們正在積極與另外兩家機構合作，籌集大量資金，目標金額在 700 萬美元至 1200 萬美元之間。

We do need to keep the names of those parties confidential currently. However, we do have funding engagement -- we are formally engaged, excuse me, with two institutions look to make significant investments into Splash Beverage. We are in the middle of the due diligence process with both organizations and look forward to having signed documents for financing before the holidays with one of the two providers, if not both, who best aligns for our long-term vision and creates capital structure to generate the appropriate returns on our investor base.

目前我們確實需要對這些當事人的姓名保密。然而，我們確實有資金投入——對不起，我們已與兩家機構正式合作，希望對 Splash Beverage 進行大量投資。我們正與兩家機構進行盡職調查，並期待在假期前與兩家供應商中的一家（如果不是兩家的話）簽署融資文件，該供應商最符合我們的長期願景，並能創建資本結構，為我們的投資者群體帶來適當的回報。

Once we complete the raise from both our retail and institutional investors, will allow us to move forward with a definitive agreement with the energy drink company, which fits fantastically into our portfolio. We anticipate this deal closing in early January. However, with the pending holiday season and the necessary financial audit, it could be slightly longer. However, both organizations are highly committed to transacting the deal.

一旦我們完成從散戶和機構投資者的融資，我們將能夠與這家能量飲料公司達成最終協議，該公司非常適合我們的投資組合。我們預計這筆交易將於一月初完成。然而，由於假期即將來臨以及必要的財務審計，這段時間可能會稍長一些。然而，兩個組織都高度致力於完成這筆交易。

Let me turn it back over to Julius with an update on Project White Hot Splash's strategic plan before we continue to discuss mergers and acquisitions.

在我們繼續討論併購之前，讓我先將話題轉回給朱利葉斯，讓他介紹一下白熱飛濺計劃的戰略計劃的最新情況。

Thank you, Robert. Just to recap, Project White Hot serves as Splash's guiding principles for our strategic decision-making. And the project has five strategic pillars: one, sustainable and profitable growth; two, operational excellence; three, e-commerce; four, bolt-on acquisitions; five, capital structure. Project White Hot is expected to move the company to positive cash flow from operations and positive EBITDA on a run rate basis by Q3 '25, excluding any M&A. Since we last talked, we've been successful on several fronts, even with the headwinds of limited liquidity and the results can be seen in our Q3 earnings with our uptick in gross margins.

謝謝你，羅伯特。總而言之，Project White Hot 是 Splash 策略決策的指導原則。此專案有五大策略支柱：一、可持續獲利成長；二、卓越營運；三、電子商務；四、附加收購；五、資本結構。預計到 2025 年第三季度，「白熱計畫」將使公司的營運現金流和 EBITDA 正成長（不包括任何併購）。自上次談話以來，儘管面臨流動性有限的不利因素，我們仍在多個方面取得了成功，從我們第三季的收益中可以看出我們的毛利率有所上升。

So looking at the pillars and just the recent successes for sustainable and profitable growth, we've expanded our distribution network, as Bill has previously discussed. E-commerce, Qplash, we restarted our resale business in August after very limited activity since January '24. On the operational excellence side, we've had success in strategic wine sourcing. We're hitting milestones to executing our plan for a third-party logistics provider out of Texas. And we've also identified alternative suppliers for key raw materials either at a lower cost or to have dual sourcing options.

因此，正如比爾之前所討論的那樣，從支柱和最近實現可持續盈利增長的成功來看，我們擴大了分銷網絡。電子商務 Qplash，自 24 年 1 月以來活動非常有限，我們於 8 月重啟了轉售業務。在卓越營運方面，我們在策略葡萄酒採購方面取得了成功。我們在執行德州第三方物流供應商計畫方面取得了里程碑式的進展。我們也以較低的成本或雙重採購選擇找到了關鍵原料的替代供應商。

From a bolt-on acquisition standpoint, we do have the LOI that we alluded for on the energy drink company and continue to move forward with Western Son. And we continue to work our M&A pipeline and have some discussion with a very early stage on the ready-to-drink spirits company as well. From a capital structure perspective, we have commitments for $8 million -- roughly $8 million in capital, and we continue to work with the institutions to lower our cost of capital and provide working capital for our existing business and acquisition-related financing.

從附加收購的角度來看，我們確實有關於能量飲料公司的意向書，並將繼續與 Western Son 合作。我們將繼續推動併購事宜，並與處於早期階段的即飲烈酒公司進行一些討論。從資本結構角度來看，我們已承諾投入 800 萬美元——大約 800 萬美元的資本，並且我們將繼續與各機構合作，以降低我們的資本成本，並為我們現有的業務和收購相關融資提供營運資金。

This concludes the strategic initiative update. I will turn it over to Robert for an update on mergers and acquisitions.

策略舉措更新到此結束。我將把這個問題交給羅伯特，讓他介紹併購的最新情況。

Thank you, Julius. I appreciate the update. I think the key message here, folks is we're not sitting around waiting for liquidity. We're doing everything we can to fine-tune the organization and prepare us for -- when the final funding does hit here in the very near future. Thank you for the update.

謝謝你，朱利葉斯。我很感謝你的更新。我認為這裡的關鍵訊息是，我們不會坐等流動性。我們正在盡一切努力來完善組織，並為不久的將來最終資金到位做好準備。感謝您的更新。

Before I provide an update on Western Son and other M&A, I'd like to provide some insight on recent transactions in the energy drink space over the last four weeks. It's pretty darn exciting. KDP, Keurig Dr. Pepper, some of you may know, they announced their purchase of -- acquisition of the energy drink maker, GHOST for more than $1 billion and Molson Coors has taken a majority stake in Zoa, which I think was The Rock's start-up. Both announcements really confirm belief in the better-for-you energy drink space, which outperforms the broader energy drink category, while both are still growing.

在我提供有關 Western Son 和其他併購的最新消息之前，我想先對過去四周能量飲料領域的近期交易提供一些見解。這真是太令人興奮了。KDP、Keurig Dr. Pepper，你們中的一些人可能知道，他們宣布以超過 10 億美元的價格收購了能量飲料製造商 GHOST，而 Molson Coors 則收購了 Zoa 的多數股權，我認為 Zoa 是巨石強森的新創公司。這兩項聲明確實證實了人們對更有益的能量飲料領域的信心，該領域表現優於更廣泛的能量飲料類別，而且兩者都仍在增長。

This gets us extremely excited about our pending acquisition in this market segment. Our pending acquisition, and we are under a Letter of Intent, but we can't disclose the name at this time. It's the right product with great partners at a fair valuation, which will allow us to capture our fair share or I like to say, our unfair share of the energy drink segment, with highly attractive margins and a competitive overhead structure. This dovetails nicely with Qplash, our resale business and will provide growth north of 30% via our distribution network. Apologies for the excitement in my voice. As you can tell, we're very excited about this opportunity.

這讓我們對即將在該市場領域進行的收購感到非常興奮。我們正在進行收購，並且我們已簽署意向書，但目前我們不能透露名稱。它是一款合適的產品，擁有優秀的合作夥伴，估值合理，這將使我們能夠獲得公平的份額，或者說，我們在能量飲料領域的不公平份額，同時具有極具吸引力的利潤率和具有競爭力的管理費用結構。這與我們的轉售業務 Qplash 完美契合，並將透過我們的分銷網絡實現 30% 以上的成長。抱歉，我的聲音有些激動。正如您所知，我們對這個機會感到非常興奮。

The gating item is to move to definitive agreements, is to finish securing the financing for the transaction, and we secured a good slug through retail investors and the institutions will help us take us over the top. As everyone is aware, we publicly announced a Letter of Intent with Western Son. Western Son is an amazing vodka, was recently ranked as the number one tasting vodka by Newsweek Magazine. We're working on raising funds with 50% of the cost circled, and we'll do provide periodic updates to their ownership group.

關鍵事項是達成最終協議，完成交易融資，我們透過散戶獲得了良好的支持，機構將幫助我們邁向頂峰。眾所周知，我們已公開宣布與 Western Son 簽署了意向書。Western Son 是一款令人驚嘆的伏特加酒，最近被《新聞周刊》評為最佳口味伏特加酒。我們正在努力籌集資金，其中 50% 的成本已圈出，我們將定期向其所有權集團提供最新資訊。

Thank you, everyone, for your attention. In summary, our issues have been 100% related to liquidity. We're in the process of solving that, as you've heard, very quickly. We're quite excited about it. We'll now open up the call to questions.

謝謝大家的關注。總而言之，我們的問題 100% 與流動性有關。正如您所聽到的，我們正在迅速解決這個問題。我們對此感到非常興奮。我們現在開始提問。

Stand by as questions are coming in as we speak. Okay. All right. Looks like the bulk of our questions are regarding liquidity and acquisitions. So I'm going to make a couple of general statements before I answer specific questions, and I'll also have Julius and Bill help us here.

請稍候，因為我們說話的時候會不斷有疑問。好的。好的。看起來我們的大部分問題都與流動性和收購有關。因此，在回答具體問題之前，我將做一些一般性陳述，我也會讓朱利葉斯和比爾來幫助我們。

Regarding liquidity, again, I mentioned two or three times a minute ago, our issues have been 100% about liquidity. One of the questions here is concern over missing time lines on acquisitions and raising funding. Fair question. I think I said this to someone earlier today, there is no one more impatient than I am than anyone on the planet than I am. But with liquidity challenges, it affects all types of time lines.

關於流動性，我剛才提到兩三次，我們的問題 100% 與流動性有關。這裡的一個問題是擔心錯過收購和籌集資金的時間表。公平的問題。我想我今天早些時候對某人說過這句話，這個星球上沒有人比我更沒有耐心。但流動性挑戰會影響所有類型的時間軸。

And I mentioned a minute ago, what's super important to us is that we don't sit on our hands high in the corner. We -- as Julius described, we spent a lot of time working on margins. We're working on different production options, et cetera, et cetera, to make sure we're positioned beautifully to close out the liquidity. We are extremely close. We mentioned we have two additional, what I like to call backups, but will ultimately long-term partners with us.

我剛才提到過，對我們來說非常重要的一點是，我們不要坐在角落。正如朱利葉斯所描述的，我們花了很多時間在利潤上。我們正在研究不同的生產方案等等，以確保我們能夠很好地解決流動性問題。我們非常親密。我們提到我們還有兩個額外的合作夥伴，我喜歡稱之為後備合作夥伴，但最終會成為我們的長期合作夥伴。

One that we especially like is a private equity group that can help us with future acquisitions and deal flow. We're very excited to be working with that team and fabulously -- just really -- just a fabulous group of people out of the Upper Midwest that we're very excited to work with. I'll stop there because at this point, we elected not to release names. So liquidity has been it. Regarding our current raise, yeah, it's -- we brought on X dollars.

我們特別喜歡的是一家私募股權集團，它可以幫助我們進行未來的收購和交易流程。我們非常高興能與這個團隊合作，非常高興能與來自中西部上游的一群出色的人合作。我就講到這裡，因為目前我們選擇不公佈姓名。流動性就是這樣。關於我們目前的加薪，是的，我們增加了 X 美元。

You've seen that in the 8-Ks and I think we brought on another $1 million and change since then. So we're getting very close on that. And we do have signed documents for the balance. Somebody wrote here just recently, they thought it was $12 million. It's never been $12 million. It was $8 million to $10 million. And we have, as I mentioned earlier and Julius mentioned, we have commitments up to $8 million.

你已經看到了 8-K 中的這一點，我認為從那時起我們又帶來了 100 萬美元的變化。所以我們很快就能實現這個目標了。我們確實已經簽署了餘額文件。最近有人在這裡寫道，他們認為這個數字是 1200 萬美元。從來都不是 1200 萬美元。金額為 800 萬至 1000 萬美元。正如我和朱利葉斯之前提到的，我們已承諾高達 800 萬美元。

So we're just shy of that, but we do have signed documents and expect that to happen here literally any time. With the holidays, it tends to slow things down, but we'll keep you posted via 8-Ks and press releases. Everything is moving forward.

所以我們離那一步還很遠，但我們確實已經簽署了文件，並希望那隨時都能發生。隨著假期的到來，事情往往會放慢下來，但我們會透過 8-K 和新聞稿向您通報最新情況。一切都在向前發展。

Yeah. So a question on Pulpoloco, our Sangria that we've imported in the paper can technology. Sorry, I'm reading the question. Okay. Yeah. So same thing. It's just been a function of liquidity. I said this publicly many times. Nothing -- absolutely nothing has changed there. It's a fabulous brand.

是的。所以我有一個關於 Pulpoloco 的問題，這是我們採用紙罐技術引進的桑格利亞酒。抱歉，我正在讀問題。好的。是的。所以同樣的事情。這只是流動性的功能。我多次公開說過這一點。什麼都沒有——那裡什麼都沒有改變。這是一個很棒的品牌。

We're scanning now and seven-eleven is slowly load those accounts across the country. The key factor for completing this is, again, liquidity. We still have to convey approximately (inaudible) number, but it's a small percentage of capital raise to complete that transaction. Nothing's changed. It's just taken time because of liquidity.

我們現在正在掃描，Seven-Eleven 正在慢慢加載全國各地的帳戶。完成這目標的關鍵因素再次是流動性。我們仍然需要傳達大約（聽不清楚）的數字，但這只是完成交易所需的一小部分資金。一切都沒有改變。只是由於流動性，這需要時間。

Bill, there's a question on Western Son. I know we've made some progress there, you'd like to answer? Western Son, where are we on that transaction? And where will -- when do you anticipate closing on that brand? Bill Meissner, go ahead.

比爾，有一個關於 Western Son 的問題。我知道我們在那裡取得了一些進展，你願意回答嗎？Western Son，我們這筆交易進行到哪一步了？您預計何時會完成該品牌的開發？比爾·邁斯納，請說。

From an operating perspective, both teams are ready to go from a due diligence perspective, everything has been completed. At this point, we're trying to finalize the raise. We've made great progress on -- we're dividing it between a debt and equity raise. And on the equity raise, we've made excellent progress and are essentially there. You have to marry both elements at the same time.

從營運角度來看，雙方團隊都已準備就緒；從盡職調查角度來看，一切都已完成。目前，我們正在努力完成加薪。我們已經取得了很大進展——我們正在將其分為債務融資和股權融資。在股權融資方面，我們已經取得了顯著進展，基本上已經實現。您必須同時將這兩個元素結合。

So we're circling back on the debt front and trying to get that completed. It will go fast once that's done. But this is -- at this point, with holidays, it is correct to assume that it could leak into Q1. And I think presuming that we make good progress by year-end, the Western Son team will continue to work with us on an extension. But that is just me speculating, but I believe they would.

因此，我們重新回到債務問題並試圖完成這項任務。一旦完成，一切就會進展得很快。但目前來看，由於有假期，可以正確地假設它可能會蔓延到第一季。我認為，假設我們在年底前取得良好進展，Western Son 團隊將繼續與我們合作進行延期。但這只是我的猜測，但我相信他們會的。

Okay. Thanks, Bill. And just to make sure that's clear, it's a blend of equity and debt, and it's a chicken and the egg situation. The debt folks don't want to commit until the equity folks have committed and vice versa. But it looks like we're basically there now on the debt side. This is really important news. So now the -- excuse me, on the equity side, now the debt folks are starting to dig in again. But Bill is right. I think we've got some challenges with the holidays, of course, slowing things down.

好的。謝謝，比爾。為了確保這一點清楚，它是股權和債務的混合，是先有雞還是先有蛋的問題。債務投資者只有在股權投資者做出承諾後才會做出承諾，反之亦然。但看起來我們現在在債務方面基本上已經達到了這個水準。這確實是個重要的消息。所以現在——對不起，在股權方面，現在債務人又開始深入研究了。但比爾是對的。我認為假期給我們帶來了一些挑戰，當然，這會減慢我們的進度。

The unnamed acquisition for the energy drink space, will it happen this year? Unlikely, still could. Our target has always been December 15 because we'd like to capture that revenue and put it on our annual report. But at the end of the day, that's a nice to have, not a need to have. But again, we remain completely engaged and under Letter of Intent with those folks, once we close out the rest of the capital raise, and that triggers the audits and then we move forward.

能量飲料領域的未透露名稱的收購會在今年發生嗎？不太可能，但仍然有可能。我們的目標一直是 12 月 15 日，因為我們希望獲得這筆收入並將其納入我們的年度報告中。但歸根結底，這只是一件好事，而不是必須的。但是，一旦我們完成剩餘的融資，我們就會再次與這些人保持完全接觸，並按照意向書進行，這將觸發審計，然後我們將繼續前進。

And remember, we don't have to be fully audited. The SEC allows 71 days to produce consolidated financials. So we'll close as quickly as we can. It's a fantastic acquisition for us, a significant amount of top line and gross revenue. The top line number is about $30 million. It really, really is transformative for the company. We're quite excited about it. And if you pay attention to the energy drink space, you'll understand that the ballpark we're playing in there. It's a pretty cool stuff.

請記住，我們不必接受全面審計。美國證券交易委員會允許 71 天內提供合併財務報表。所以我們會盡快結束。對我們來說，這是一次非常棒的收購，為我們帶來了可觀的營業收入和總收入。最高金額約 3000 萬美元。這對公司來說確實是個改變。我們對此感到非常興奮。如果你關注能量飲料領域，你就會明白我們在那裡玩的是什麼。這是一件非常酷的事情。

How much -- so no -- one more question on liquidity. Yeah. So typically, how much money has been raised since our last press release? I believe it's right around $1 million, Julius. Do you have that number handy?

多少——所以沒有——還有一個關於流動性的問題。是的。那麼，自從我們上次發布新聞稿以來，通常籌集了多少錢？我相信大約是 100 萬美元，朱利葉斯。您有這個號碼嗎？

I don't have the exact date since the PR, but we're kind of like a little bit over $8 million on commitments from various stakeholders.

我不知道公關之後的具體日期，但我們從各利益相關者那裡獲得的承諾金額約為 800 多萬美元。

Okay. Great. Thank you. We had a question about the note in default that was on our -- or in technical default, I should say, that was on our Q report. When will that be paid back? Those are -- hang on, keep reading this. Sorry, everybody. It's just hard to read the screen. Yeah. When will that be paid back? Okay.

好的。偉大的。謝謝。我們對我們的 Q 報告中的違約票據有疑問——或者應該說是技術違約票據。那什麼時候能還清？這些是——等一下，繼續閱讀。抱歉各位。螢幕上的內容很難看清楚。是的。那什麼時候能還清？好的。

So our intention is to pay that back as we raise additional equity in the organization with the current capital raises. There'll be plenty of cash to do that. We'll see how that goes in the next week or so. All right. There's another couple of questions coming in, waiting for them to load.

因此，我們的目的是透過目前的資本籌集來增加組織的額外股權，從而償還這些債務。我們會有足夠的現金來做這件事。我們將在下週左右觀察情況如何。好的。還有另外幾個問題正在等待加載。

I'll just speak for a second while that's happening. And look, I understand everybody's impatient, like I said, as I am, this has been a difficult year for us, micros and small caps have just -- that had a heck of a challenge just raising money and of course, share price doesn't help with that. I got to tell you, we appreciate our shareholders so much and hanging in there while we're fixing the liquidity challenge. I can't thank you guys enough for hanging in there with us.

趁著這一切發生，我只想講一兩句話。我知道大家都不耐煩，就像我說的，今年對我們來說是艱難的一年，微型和小型股在籌集資金方面面臨著巨大的挑戰，當然，股價也對此沒有幫助。我必須告訴你們，我們非常感謝我們的股東，感謝他們在我們解決流動性挑戰的過程中所做的努力。我非常感謝你們一直陪伴著我們。

And it's another Western Son question. Yeah. So Western Son, basically, thank you for the information on the timing. What are the terms? Okay. Yeah, we can't disclose the terms just yet exactly what they are, but it is a blend of debt, debt and equity, as Bill Meissner mentioned.

這是另一個有關 Western Son 的問題。是的。因此，Western Son，基本上，感謝您提供有關時間的資訊。條款是什麼？好的。是的，我們現在還不能透露具體條款，但正如比爾·邁斯納所提到的，它是債務、債務和股權的混合。

Next question, why won't you release the name of the energy drink target? There's different types of confidentiality. There is inside information, public information, but there's also corporate confidentiality as well. Remember, we're -- the model for Splash is a Shared Service model. So the idea being we find a target that's proven itself.

下一個問題，為什麼你們不公佈能量飲料目標的名稱？保密有不同的類型。其中有內部資訊、公開訊息，但也有公司機密。請記住，我們——Splash 的模型是共享服務模型。所以我們的想法是找到一個已經證實過的目標。

We acquire that target and pull that into our organization, and that is done through the reduction of headcount. So we're being sensitive to those people, and we want to be careful to not bring that name out at this point. That's the main reason for that. Julius, Bill, are you seeing any questions I missed?

我們實現了這個目標並將其納入我們的組織，這是透過裁員來實現的。因此，我們對這些人很敏感，我們希望謹慎，此時不要提及他們的名字。這就是主要原因。朱利葉斯、比爾，你們發現我遺漏了什麼問題嗎？

No.

不。

No.

不。

All right. With that, I want to thank everybody for joining us. This concludes our quarterly conference call for Q3 results. We appreciate, as I mentioned a minute ago, everyone's long-term support. Our legacy investors have been absolutely fantastic.

好的。最後，我要感謝大家的參與。我們的第三季業績電話會議到此結束。正如我剛才提到的，我們感謝大家長期以來的支持。我們的遺留投資者確實非常出色。

We remain extremely, extremely excited about the future. We believe we've just about powered the difficult liquidity issue for the past year. Thanks. I want to thank everybody for your support, long-term support, hang in there. We are so close.

我們對未來仍然感到無比興奮。我們相信，過去一年我們已經基本解決了困難的流動性問題。謝謝。我要感謝大家的支持，長期的支持，堅持下去。我們如此親密。

And don't forget, I'm one of the largest shareholders (inaudible) Splash myself. So I am personally excited about the future. And we just want to wish everybody a fantastic Thanksgiving and happy holidays. We appreciate your support one last time, and I wish you all a great week. Thank you very much. This concludes our Q3 quarterly report conference call.

別忘了，我自己也是 Splash 最大的股東之一（聽不清楚）。所以我個人對未來感到興奮。我們只想祝福大家感恩節快樂、節日快樂。我們最後一次感謝您的支持，並祝福大家有個愉快的一週。非常感謝。我們的第三季報告電話會議到此結束。

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

今天的會議到此結束，大家可以斷開連線了。感謝您的參與。