Senestech Inc (SNES) 2022 Q4 法說會逐字稿

Good afternoon and welcome to the SenesTech, Inc. Fourth Quarter and Fiscal Year 2022 Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

下午好，歡迎來到 SenesTech, Inc. 第四季度和 2022 財年財務業績電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.

我現在想將會議轉交給 Robert Blum 和 Lytham Partners。請繼續。

Thank you very much, Gary, and thank you all for joining us today to discuss SenesTech's fourth quarter and fiscal year 2022 financial results for the period ended December 31, 2022. With us on the call today are Joel Fruendt, the company's Chief Executive Officer; and Tom Chesterman, the company's Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question-and-answer session.

非常感謝 Gary，也感謝大家今天加入我們討論 SenesTech 截至 2022 年 12 月 31 日的第四季度和 2022 財年財務業績。今天與我們通話的是公司首席執行官 Joel Fruendt ;和公司首席財務官 Tom Chesterman。在今天準備好的發言結束時，我們將開啟問答環節。

Before we begin with prepared remarks, we submit for the record the following statement. Statements made by the management team of SenesTech 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.

在我們開始準備好的評論之前，我們提交以下聲明以供記錄。 SenesTech 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 條和經修訂的 1934 年證券交易法第 21E 條含義內的前瞻性陳述，以及此類前瞻性陳述是根據 1995 年《私人證券訴訟改革法案》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. 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 our filings with the Securities and Exchange Commission.

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。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我們向美國證券交易委員會提交的文件中確定的各種因素和其他風險而做出的前瞻性陳述。

All forward-looking statements contained during this conference call speak only as of the date in which they were made and are based on management's assumptions and estimates as of such date. The company does not undertake any obligation to publicly update any forward-looking statements whether as the result of the receipt of new information, the occurrence of future events or otherwise.

本次電話會議中包含的所有前瞻性陳述僅在發表之日發表，並且基於管理層截至該日期的假設和估計。公司不承擔任何義務公開更新任何前瞻性陳述，無論是由於收到新信息、未來事件的發生還是其他原因。

With that said, let me turn the call over to Joe Fruendt, Chief Executive Officer, SenesTech. Joel, please proceed.

話雖如此，讓我把電話轉給 SenesTech 的首席執行官 Joe Fruendt。喬爾，請繼續。

Good afternoon, everyone. Thank you all for joining us today. While I was briefly introduced on the third quarter conference call, I am excited and honored to get a chance to speak with you all today for really the first time. Following my appointment as CEO just about 4 months ago now, I have taken quick and decisive steps to build off the considerable progress the company made during 2022, highlighted by breaking $1 million in product sales, up 77% from the year ago period, as ContraPest was deployed in a number of key market verticals and the product line extension launch of the unique and innovative Elevate Bait System. We need to build off this momentum to take ContraPest to the next level. So how do we do that?

大家下午好。感謝大家今天加入我們。雖然我在第三季度電話會議上被簡要介紹，但我很高興也很榮幸今天有機會真正第一次與大家交談。在大約 4 個月前被任命為首席執行官後，我採取了快速而果斷的步驟，以鞏固公司在 2022 年取得的長足進步，突出表現是產品銷售額突破 100 萬美元，比去年同期增長 77%，因為ContraPest 部署在多個主要垂直市場，並推出獨特創新的 Elevate Bait System 產品線擴展。我們需要藉助這種勢頭，將 ContraPest 提升到一個新的水平。那我們該怎麼做呢？

First, my experience is anchored with extensive executive leadership in the vector and pest management industries, where I gained expertise in the development and manufacturing of EPA-registered chemical control products, commercialization and sale of those products and leading large sales and service organizations. Developing and commercializing ContraPest is a natural extension of that experience.

首先，我的經驗是在病媒和害蟲管理行業擔任廣泛的行政領導，在那裡我獲得了在 EPA 註冊的化學控制產品的開發和製造、這些產品的商業化和銷售以及領導大型銷售和服務組織方面的專業知識。 ContraPest 的開發和商業化是這種體驗的自然延伸。

Further, I have always had a passion and commitment to sustainable, effective solutions to vector and pest control challenges. Clearly, ContraPest fits right in with that passion. It was one of the key drivers that attracted me to SenesTech as we look to provide an exciting, sustainable solution for management of animal pests in a stand-alone or Integrated Pest Management program. As I said at the beginning, tremendous progress was made last year, but we need to accelerate and steepen the adoption curve.

此外，我一直對可持續、有效的病媒和害蟲控制挑戰的解決方案充滿熱情和承諾。顯然，ContraPest 正好符合這種熱情。這是吸引我加入 SenesTech 的關鍵驅動因素之一，因為我們希望在獨立或綜合害蟲管理計劃中為動物害蟲管理提供令人興奮、可持續的解決方案。正如我在開頭所說的那樣，去年取得了巨大進步，但我們需要加快採用曲線並使採用曲線變陡。

The first initiative we have undergone has been the redeployment and refocusing of the company's direct sales efforts to enhance our customer acquisition capabilities while also putting reps closer to the customers to benefit from the surge in acceptance of ContraPest during the past year. We have named a Chief Revenue Officer as a key step in that process.

我們採取的第一項舉措是重新部署和重新調整公司的直銷工作重點，以增強我們的客戶獲取能力，同時讓銷售代表更接近客戶，以便從去年對 ContraPest 的接受度激增中獲益。我們已任命首席營收官作為該過程中的關鍵步驟。

We have expanded our field sales organization to 7 reps, each deployed by geography with leadership in both the Eastern and Western half of the U.S. Last year's revenue was largely driven by growth within existing customers, which speaks to having an effective product that delivers value.

我們已將我們的現場銷售組織擴大到 7 個代表，每個代表在美國東半部和西半部按地域部署並具有領導地位。去年的收入主要是由現有客戶的增長推動的，這說明擁有能夠提供價值的有效產品。

Going forward, we are placing a strong regional focus on new customer acquisition through an expanded commercial team and new depths of vertical industry knowledge, get in front of decision-makers, tightening the sales cycle and ultimately driving revenue. We are also enhancing the customer experience by increasing product options, awareness and education. Product options are extremely important. That's why we introduced the Elevate system last year: to provide an option specifically targeted at roof rats.

展望未來，我們將通過擴大的商業團隊和新的垂直行業知識深度，將區域重點放在新客戶獲取上，走在決策者面前，收緊銷售週期並最終推動收入增長。我們還通過增加產品選擇、意識和教育來提升客戶體驗。產品選擇非常重要。這就是我們去年推出 Elevate 系統的原因：提供專門針對屋頂老鼠的選項。

That's also why we have introduced different bait tank sizes so that a customer can choose the size that is most appropriate to their unique needs, whether it is starting a program, addressing a large infestation or maintenance. We are also exploring delivery systems that work in different bait stations. We offer 2 bait station formats now, but others are well into the development stage.

這也是為什麼我們推出了不同尺寸的誘餌罐，以便客戶可以選擇最適合其獨特需求的尺寸，無論是啟動程序、解決大型蟲害還是維護。我們還在探索適用於不同誘餌站的遞送系統。我們現在提供 2 種誘餌站格式，但其他格式已進入開發階段。

Choices that fit your needs is the marketing tagline. And in the coming weeks, we will be announcing new choices for all customers. We are making improvements to our website as well, including the addition of chatbots on websites to accelerate customer education and acquisition and have launched a dedicated website for professional pest managers.

適合您需求的選擇是營銷標語。在接下來的幾週內，我們將為所有客戶宣布新的選擇。我們也在改進我們的網站，包括在網站上添加聊天機器人以加速客戶教育和獲取，並為專業害蟲管理人員推出了專門的網站。

We'll also be launching a 12-month prepaid subscription for e-commerce customers in order to make it as convenient and cost-effective as we can for customers who seek better value. The early results are promising on all of these initiatives. For instance, in December 2022, we announced the city of Los Angeles had ordered and have now deployed ContraPest broadly at the Los Angeles Zoo as part of their IPM program with a deployment plan that is expected to exceed 250 bait stations. Overall, 22 zoos, including 2 of the top 10 zoos in the United States, are now using ContraPest. We expect another 2 of the top 10 to close this quarter. Besides being a target market in their own right, zoos and sanctuaries are the ultimate influencers in all things animals. So this continues to be a focus segment for us.

我們還將為電子商務客戶推出 12 個月的預付費訂閱，以便為尋求更高價值的客戶提供盡可能方便且具有成本效益的服務。所有這些舉措的早期結果都是有希望的。例如，在 2022 年 12 月，我們宣布洛杉磯市已下令在洛杉磯動物園廣泛部署 ContraPest，作為其 IPM 計劃的一部分，部署計劃預計將超過 250 個誘餌站。總體而言，包括美國前 10 大動物園中的 2 家在內的 22 家動物園現在正在使用 ContraPest。我們預計前 10 名中的另外 2 名將在本季度結束。除了本身就是目標市場之外，動物園和保護區是所有動物事物的最終影響者。因此，這仍然是我們的重點領域。

We are also achieving initial success having secured major contracts with government agencies, most recently with the county of Santa Clara. After initial deployment, the county of Santa Clara announced that it intended to expand deployment broadly throughout the county, most recently to Los Gatos. I want to provide a little more detail here.

我們還取得了初步成功，獲得了與政府機構的主要合同，最近與聖克拉拉縣簽訂了合同。初步部署後，聖克拉拉縣宣布打算在全縣范圍內廣泛部署，最近一次部署到洛斯加托斯。我想在這裡提供更多細節。

In this instance, Santa Clara County started a deployment and included their own intensive monitoring program to assure efficacy, sustainability and safety. After their review, they concluded that ContraPest was appropriate for deployment countywide, and they are recommending it to their peers.

在這種情況下，聖克拉拉縣開始部署並包括他們自己的密集監測計劃，以確保有效性、可持續性和安全性。在他們審查之後，他們得出結論認為 ContraPest 適合在全縣范圍內部署，並且他們正在向他們的同行推薦它。

Overall, California continues to lead geographically with nearly 1/3 of all product sales occurring in the state driven by tailwinds from the recently implemented Ecosystems Protection Act of 2021, which bans the use of commonly used second-generation anticoagulant poisons under many circumstances.

總體而言，加利福尼亞州繼續在地理上處於領先地位，近 1/3 的產品銷售額發生在該州，這得益於最近實施的 2021 年生態系統保護法案，該法案禁止在許多情況下使用常用的第二代抗凝毒劑。

As mentioned briefly, the recent launch of the Elevate system is expected to drive growth in key market verticals, including with agricultural customers to better meet their needs of addressing roof rats that reside above ground, especially in the rafters of barns, granaries and storage and manufacturing facilities.

如前所述，最近推出的 Elevate 系統預計將推動主要垂直市場的增長，包括農業客戶更好地滿足他們解決居住在地面上的屋頂老鼠的需求，特別是在穀倉、糧倉和倉庫的椽子和製造設施。

Similar to the third quarter, sales during the fourth quarter in poultry facilities continue to be hindered by the outbreak of the avian influenza or bird flu, which has impacted poultry operators across the United States. As this subsides, we believe this will provide us with a tremendous addressable market opportunity.

與第三季度類似，第四季度家禽設施的銷售繼續受到禽流感或禽流感爆發的阻礙，這影響了美國各地的家禽經營者。隨著這種情況的消退，我們相信這將為我們提供巨大的可尋址市場機會。

Another important development recently, in February 2023, New York State Department of Environmental Conservation approved ContraPest for general use, removing restricted-use pesticide from the label of ContraPest. This expands the market for ContraPest dramatically in New York as it no longer requires application by specialty licensed pest control companies and eliminates restrictive handling and paperwork. New York now becomes the 49th state to remove the RUP label from ContraPest and joins Washington, D.C. and major U.S. territories using ContraPest under the general-use label, validating years of effective and incidence-free experience.

最近的另一個重要發展是，2023 年 2 月，紐約州環境保護部批准了 ContraPest 的一般用途，從 ContraPest 的標籤中刪除了限制使用的農藥。這極大地擴大了 ContraPest 在紐約的市場，因為它不再需要專業許可的害蟲防治公司申請，並消除了限制性處理和文書工作。紐約現在成為第 49 個從 ContraPest 中刪除 RUP 標籤的州，並加入華盛頓特區和美國主要領土的行列，在通用標籤下使用 ContraPest，驗證了多年有效和無事故的經驗。

New York State is still evaluating tools for use in their overhaul of rat control strategies under the newly named rat czar position. We are part of that evaluation and are confident that New York City will look to population control as a major part of their new IPM plan.

在新任命的老鼠沙皇職位下，紐約州仍在評估用於徹底改革老鼠控制策略的工具。我們是該評估的一部分，並且相信紐約市會將人口控制視為其新 IPM 計劃的主要部分。

And just this week, we confirmed the various news reports that SenesTech has been working with the Danish company, TriptoBIO, on the development of biosynthetic triptolide, one of the active ingredients in ContraPest. The reality is we have been working with TriptoBIO for quite some time on biosynthetic triptolide and have a letter of intent in place for its development, and we'll be working collaboratively to have it approved by the EPA.

就在本週，我們證實了各種新聞報導，即 SenesTech 一直在與丹麥公司 TriptoBIO 合作開發生物合成雷公藤內酯，這是 ContraPest 中的一種活性成分。事實上，我們已經與 TriptoBIO 就生物合成雷公藤內酯進行了相當長的一段時間的合作，並為其開發製定了意向書，我們將共同努力使其獲得 EPA 的批准。

Recent press in Europe about their advances has highlighted the efficacy and sustainability of ContraPest as well as some of the benefits of a biosynthetic source of triptolide. From our perspective, biosynthetic triptolide brings 2 very distinct advantages to ContraPest. One, biosynthetic production is typically more consistent in its quality and availability and paired with botanically derived triptolide from China, our current source. Two, biosynthetic production is typically much less expensive than botanical purification, allowing us to lower the price of ContraPest and greatly expand our market domestically and internationally. We look forward to this continued partnership, and we'll keep you apprised of our advancements.

歐洲最近關於他們進展的媒體強調了 ContraPest 的功效和可持續性，以及雷公藤內酯生物合成來源的一些好處。從我們的角度來看，生物合成雷公藤內酯為 ContraPest 帶來了兩個非常明顯的優勢。第一，生物合成生產通常在質量和可用性方面更加一致，並且與我們目前的來源中國的植物來源的雷公藤內酯搭配使用。第二，生物合成生產通常比植物提純成本低得多，這使我們能夠降低 ContraPest 的價格並極大地擴展我們的國內外市場。我們期待這種持續的合作夥伴關係，我們會讓您了解我們的進步。

With that overview, let me turn it over to Tom to review the financials. Tom?

有了這個概述，讓我把它交給湯姆來審查財務狀況。湯姆？

Thank you, Joel. Let me add my welcome and excitement to have you join the team here at SenesTech. A reminder to our investors, the press release is available on our website in the Investor Relations section. Further, we expect to file our 10-K shortly, so I'll just touch on some of the high points right now.

謝謝你，喬爾。讓我對您加入 SenesTech 的團隊表示歡迎和興奮。提醒我們的投資者，新聞稿可在我們網站的投資者關係部分獲取。此外，我們希望很快提交我們的 10-K，所以我現在只談一些要點。

Revenue during 2022 was $1 million compared to $600,000 in 2021. Product sales, which exclude grant revenue, were up 77%. During the fourth quarter, 2022 revenue was approximately $297,000 compared to approximately $193,000 in the year ago period, an increase of 54%. Again, product sales, which exclude grant revenue, were up 76%. And please note that the year ago period had approximately $24,000 in grant revenue.

2022 年的收入為 100 萬美元，而 2021 年為 60 萬美元。不包括贈款收入的產品銷售額增長了 77%。第四季度，2022 年收入約為 297,000 美元，而去年同期約為 193,000 美元，增長 54%。同樣，不包括贈款收入的產品銷售額增長了 76%。請注意，去年同期的贈款收入約為 24,000 美元。

That first $1 million is a milestone for any start-up, and it is particularly gratifying. The growth rate has been excellent as well, but we see the current trajectory as the minimum performance and are acting to accelerate our growth to 2x, 3x or even more.

首筆 100 萬美元對任何一家初創企業來說都是一個里程碑，尤其令人欣慰。增長率也很出色，但我們將當前的軌跡視為最低績效，並正在採取行動將我們的增長加速到 2 倍、3 倍甚至更多。

Sales growth during the year and the fourth quarter led by strong performance in the company's e-commerce platform, which made up approximately 46% of 2022 product sales as well as continued traction within zoos, animal sanctuaries and pest management professionals, which both increased more than 100% during the fourth quarter.

年內和第四季度的銷售額增長得益於公司電子商務平台的強勁表現，該平台約佔 2022 年產品銷售額的 46%，以及動物園、動物保護區和害蟲管理專業人士的持續牽引力，這兩項增長均超過第四季度超過 100%。

The sales into agriculture was significantly slowed by the avian bird flu as much of our initial efforts in this sector were focused on poultry. While still waiting for the poultry market to recover, we have now also moved many of our resources to grain and protein production. We have seen that begin to bear fruit in this quarter, and we expect it to continue.

禽流感導致農業銷售大幅放緩，因為我們最初在該領域的大部分努力都集中在家禽上。在等待家禽市場復甦的同時，我們現在也將許多資源轉移到穀物和蛋白質生產上。我們已經看到這在本季度開始取得成果，我們預計它會繼續下去。

Gross profit during 2022 was approximately $464,000 or 46% of total revenue compared to 42% of total revenue in 2021. Net loss during 2022 was $9.7 million compared with a net loss of $8.3 million for 2021. Adjusted EBITDA loss, which is a non-GAAP measure of operating performance for 2022, was $8.5 million compared to $7.8 million in 2021. Again, looking at the fourth quarter, adjusted EBITDA loss was $1.6 million compared to $2.2 million in Q4 of 2021. And finally, cash at the end of December 2022, and was approximately $4.8 million.

2022 年的毛利潤約為 464,000 美元，佔總收入的 46%，而 2021 年佔總收入的 42%。2022 年的淨虧損為 970 萬美元，而 2021 年的淨虧損為 830 萬美元。調整後的 EBITDA 虧損是非衡量 2022 年經營業績的 GAAP 指標為 850 萬美元，而 2021 年為 780 萬美元。再次回顧第四季度，調整後的 EBITDA 虧損為 160 萬美元，而 2021 年第四季度為 220 萬美元。最後，12 月底的現金2022 年，約為 480 萬美元。

Now we do expect to be accessing the capital markets in 2023. To do so, we have a shelf registration on file to allow opportunistic financing. We also have $5 million in warrants that will expire if not exercised this year. These tools, along with revenue growth and careful expense management, should be sufficient for us to execute our plans this year and beyond.

現在我們確實希望在 2023 年進入資本市場。為此，我們進行了貨架註冊以允許機會融資。我們還有 500 萬美元的認股權證，如果今年不行使，這些認股權證將到期。這些工具，連同收入增長和謹慎的費用管理，應該足以讓我們執行今年及以後的計劃。

With that, let me turn it back over to you, Joel, for any closing remarks, and then we'll take your questions. Joel?

有了這個，讓我把它轉回給你，喬爾，請你做任何結束語，然後我們會回答你的問題。喬爾？

Thanks, Tom. Let me just say that every day, there is more validation of ContraPest as effective, sustainable and easy to use. Academic studies, field studies and customer feedback all agree: successful pest management requires population control, and ContraPest works to control pest populations, making PM more effective. We have taken swift actions to align the commercialization side of our efforts to significantly expand adoption and look forward to the future with tremendous optimism.

謝謝，湯姆。我只想說，每天都有更多人證實 ContraPest 有效、可持續且易於使用。學術研究、實地研究和客戶反饋都同意：成功的害蟲管理需要數量控制，而 ContraPest 致力於控制害蟲數量，使 PM 更加有效。我們已迅速採取行動，調整我們努力的商業化方面，以顯著擴大採用率，並以極大的樂觀態度展望未來。

With that, let me turn it back over to the operator for any questions.

有了這個，讓我把它轉回給操作員以解決任何問題。

(Operator Instructions) Our first question is from Avi Fisher with Long Cast Advisors.

（操作員說明）我們的第一個問題來自 Avi Fisher 和 Long Cast Advisors。

With the general-use label in New York state, how is that going to change the way you're marketing, notably in New York City? And I ask because I could envision all these co-ops ringing Central Park being amenable to and open to and wanting to use this product because it's safe for the birds in Central Park, et cetera. I wonder if you have any sense of targeting them.

使用紐約州的通用標籤，這將如何改變您的營銷方式，尤其是在紐約市？我問是因為我可以想像所有這些環繞中央公園的合作社都願意接受並願意使用這個產品，因為它對中央公園的鳥類等是安全的。我想知道你是否有針對他們的意識。

Absolutely. We believe that the general use, as it has in other areas of the country, is really going to open the market up to us simply because now we don't have to rely on those that have the certifications and the credentials for restricted use. So we have a marketing campaign that is specifically directed at not only in New York City but the whole state of New York because there's a lot of things in the agriculture business that we've been not been able to tap into there. So that campaign has kicked off, and we're already seeing some really good feedback from it.

絕對地。我們相信，像在該國其他地區一樣，普遍使用確實會為我們打開市場，因為現在我們不必依賴那些擁有限制使用認證和證書的公司。因此，我們開展了一項營銷活動，不僅針對紐約市，而且針對整個紐約州，因為農業業務中有很多我們無法涉足的領域。所以該活動已經開始，我們已經從中看到了一些非常好的反饋。

So within New York, you're focusing, at this point, primarily on the ag space, not so much changing on the residential city space?

所以在紐約，在這一點上，你主要關注農業空間，而不是住宅城市空間的變化？

Oh, no. No, no. We're focusing on New York City and the residential and the HOAs. And I was just mentioning that in addition, people forget that there's ag business in New York that we haven't been able to do. And of course, agriculture is one of our biggest markets out there. But yes, we're going full force forward with New York City and giving them everything that they need in order to make a decision on using our product.

不好了。不，不。我們專注於紐約市以及住宅和 HOA。我只是提到，此外，人們忘記了紐約有我們無法做到的農業業務。當然，農業是我們最大的市場之一。但是，是的，我們正在與紐約市全力推進，並為他們提供他們需要的一切，以便他們決定使用我們的產品。

And what about this evaluation with the New York City rat czar? Any -- do you have any expectation on the timing of when you'll hear from them?

紐約市老鼠沙皇的評價如何？任何 - 您對何時收到他們的消息有任何期望嗎？

Nothing that we really can report on. We do know that they were inquiring about it in other areas of the country where ContraPest has been used for a longer period of time. So we are waiting to hear something from them on how to move forward.

沒有什麼是我們真正可以報告的。我們確實知道，他們正在該國其他使用 ContraPest 時間較長的地區詢問。因此，我們正在等待聽到他們關於如何前進的消息。

I think -- personally, I think there's a lot of flex and opportunity in marketing directly to co-ops that ring the park. They are the homes of many power brokers in the city, and I think you'll find an audience there.

我認為 - 就個人而言，我認為直接向環繞公園的合作社進行營銷有很多靈活性和機會。他們是城里許多權力掮客的家，我想你會在那裡找到聽眾。

And just finally, on TriptoBIO, it sounded like in your commentary this is not a 2023 event. But I just want to confirm, is this -- how soon can you start sourcing from them? And how much flexibility does it give you on price?

最後，在 TriptoBIO 上，在你的評論中聽起來這不是 2023 年的事件。但我只想確認，這是——你多久可以開始從他們那裡採購？它在價格上給你多大的靈活性？

There's a lot of legwork to do with the EPA registration. But we look at it as a '24 product. And we're confident that we're going to be able to lower our cost of goods by using it.

EPA 註冊需要大量的跑腿工作。但我們將其視為 24 小時產品。我們相信我們將能夠通過使用它來降低我們的商品成本。

Can you sort of estimate how much or too soon to say?

你能估計多少還是太早了？

It's just soon to say right now. There's a number of things that are in play, but it will be substantial. We wouldn't want to do this if it were just a small percentage.

只是現在說的還早。有很多事情正在發揮作用，但這將是實質性的。如果只是一小部分，我們不想這樣做。

(Operator Instructions) Showing no further questions, this concludes the question-and-answer session. I would like to turn the conference back over to Joel Fruendt for any closing remarks.

（操作員說明）沒有進一步的問題，問答環節到此結束。我想將會議轉回給 Joel Fruendt 作閉幕詞。

Thank you all for being here today and for -- that's all I have right now. Tom, anything from you?

感謝大家今天來到這裡——這就是我現在所擁有的。湯姆，你有什麼事嗎？

No, nothing for me. Thank you all very much. We'll talk to you next quarter.

不，對我來說沒什麼。非常感謝大家。我們將在下個季度與您交談。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。