Senestech Inc (SNES) 2023 Q4 法說會逐字稿

Good afternoon and welcome to the SenesTech Reports Fourth Quarter and Fiscal Year 2023 financial results conference call.

下午好，歡迎參加 SenesTech 報告第四季和 2023 財年財務業績電話會議。

All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question, please press star then one on your telephone keypad. To withdraw from the question queue, please press star one to Please note this event is being recorded. I would now like to turn the call over to Robert Blum with Lytham Partners. Please go ahead.

所有參與者將處於僅聽模式。如果您需要協助，請按星號鍵和零向會議專家發出訊號。今天的演講結束後，將有機會提問，請按下電話鍵盤上的星號然後再按一個。若要退出問題佇列，請按星號 1 請注意正在記錄此事件。我現在想將電話轉給 Lytham Partners 的 Robert Blum。請繼續。

All right. Thank you very much, Anthony, and good afternoon, everyone. Thank you for joining us.

好的。非常感謝你，安東尼，大家午安。感謝您加入我們。

Today, as Anthony mentioned to discuss Nastech's 2023 financial results for the period ended December 31 2023. With us on the call today are Jim Ferland, the Company's Chief Executive Officer and Tom Chesterman, so Nastech's Chief Financial Officer. At the conclusion of today's prepared remarks, we'll open the call for a question and answer session.

今天，正如安東尼所提到的那樣，討論了 Nastech 截至 2023 年 12 月 31 日止期間的 2023 年財務業績。今天參加電話會議的有公司執行長 Jim Ferland 和 Nastech 財務長 Tom Chesterman。在今天準備好的演講結束後，我們將開始問答環節。

Before I begin, with prepared remarks, we submit for the record the following statements. Statements made by the management team of MasTec 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. 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 the Company's filings with the Securities Exchange Commission. All forward-looking statements contained during this conference call speak only as of the date on 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.

在開始之前，我們透過準備好的發言，提交以下聲明供記錄。MasTec 管理團隊在本次電話會議期間發表的聲明可能包含第 27A 條含義內的前瞻性聲明。經修訂的 1933 年證券法和第 21E 條。經修訂的 1934 年《證券交易法》的規定，此類前瞻性陳述是根據 1995 年《私人證券訴訟改革法》的安全港條款做出的。前瞻性陳述描述了未來的期望、計劃、結果或策略，通常前面有諸如未來計劃或計劃將或應該、預期、預期、草案、最終或預測等詞語。請聽眾注意，此類陳述受到多種風險和不確定性的影響，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有重大差異，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。本次電話會議期間包含的所有前瞻性陳述僅代表截至發布之日的情況，並且基於管理層截至該日期的假設和估計。本公司不承擔公開更新任何前瞻性陳述的義務，無論是由於收到新資訊、未來事件的發生或其他原因。

With that said, let me turn the call over to Jim Ferland, Chief Executive Officer. So MasTec.

話雖如此，讓我將電話轉給執行長吉姆費蘭 (Jim Ferland)。所以馬斯泰克。

Joel, please proceed.

喬爾，請繼續。

Good afternoon, everyone. Thank you all for joining us today for our year end conference call. During 2023, we executed several key initiatives that will be the foundation to drive growth for us. And as tech into the future, most notable was the development of EVOLVE, our all new South Bay fertility control product that was launched at the end of 2023. As a reminder, Evolve has similar efficacy to ContraPest. However, Evolve has three distinct benefits and uses a one-year shelf life that allows for extensive distribution opportunities comes in a solid form that is more familiar to technicians and consumers and easier to deploy, and it's offered it at a competitive price to traditional rodenticides. This has dramatically increased our reach in terms of markets and geographies. It is evident from the initial response that evolved is what retailers and distributors have been looking for from Sinopec. One major proof point is our recent approval as a vendor for a leading network of hardware stores network comprising over 45,000 locations. Just the first few weeks after evolves introductions, they have become the first of many major retailers that will carry our products to target the do-it-yourselfer and broader consumer market. We expect more to come on board in the months to come to penetrate the market retail market quickly. We are in final negotiations with the manufacturers rep firm that specializes in retail relationships to represent us with these major national and regional retailers in hardware and home supply, industrial supply and agricultural supply.

大家下午好。感謝大家今天參加我們的年終電話會議。2023 年，我們執行了多項關鍵舉措，這些舉措將成為推動我們成長的基礎。作為面向未來的科技，最引人注目的是 EVOLVE 的開發，這是我們於 2023 年底推出的全新南灣生育控制產品。提醒一下，Evolve 與 ContraPest 具有相似的功效。然而，Evolve 具有三個獨特的優點，並具有一年的保質期，可以提供廣泛的分銷機會，並且以技術人員和消費者更熟悉且更易於部署的固體形式提供，並且其價格比傳統滅鼠劑更具競爭力。這大大增加了我們在市場和地理方面的影響力。從最初的反應可以明顯看出，零售商和經銷商一直在尋求中石化的回應。一個主要的證據是我們最近被批准成為領先的五金店網路供應商，該網路由 45,000 多個地點組成。就在推出後的最初幾週，他們已成為許多主要零售商中第一家將我們的產品推向DIY者和更廣泛的消費市場的零售商。我們預計未來幾個月會有更多人加入，以快速滲透市場零售市場。我們正在與專門從事零售關係的製造商代表公司進行最終談判，以代表我們與這些主要的國家和地區零售商在硬體和家居供應、工業供應和農業供應方面的合作。

Another major advancement has been the agreement with a global leader in irrigation solutions for sustainable open field agriculture, pulp and field agriculture presents unique challenges to rodent and pest control. Poisons can be broadcast trapping is expensive and have limited efficacy evolve. South Bay with its minimum risk at reasonable cost and its proven efficacy provides a new tool for this widespread market. Our partner has selected one of their preferred customers for the initial deployment of dairy and almond producer in California. Their stated goal is to ultimately expand their offering of evolve to their customers across the globe as they learn more about a vast potential. Agriculture is a huge underserved market. We have another potential customer in sugarcane production. They have over $10 million in annual losses to rat activity, destroying sections of their fields and choose not to use poisons in their field. They will start working with the ball broadcasting and throughout their fields, reducing the population significantly and thus cutting down those economic losses.

另一項重大進展是與永續露天農業灌溉解決方案的全球領導者達成協議，紙漿和田間農業對囓齒動物和害蟲控制提出了獨特的挑戰。毒藥可以廣播誘捕，價格昂貴，進化效果有限。南灣以其最小的風險、合理的成本和經過驗證的功效，為這個廣泛的市場提供了一個新的工具。我們的合作夥伴選擇了他們的首選客戶之一，用於在加州初步部署乳製品和杏仁生產商。他們既定的目標是，隨著客戶更了解其巨大潛力，最終將其產品擴展至全球各地的客戶。農業是一個服務不足的龐大市場。我們還有另一個甘蔗生產的潛在客戶。他們每年因老鼠活動造成的損失超過 1000 萬美元，老鼠破壞了他們的部分田地，並選擇不在他們的田地裡使用毒藥。他們將開始在整個田地進行球類廣播，大幅減少人口，從而減少經濟損失。

Also in the agricultural space. We entered into an agreement with Poppy enterprises, a distributor and pest management firm focused on the grain management market, serving the upper Midwest grain storage operations have unique challenges when it comes to road and pest control. Again, poisons are highly regulated and are tricky to use without contamination and traps alone are expensive and time-consuming to maintain nonpartisan evolve. South Bay provides new tools for this widespread market in combination with some traps list, Fabrice and effective non-employees, an IPM program and other key proof point on how REVOLVE expands our market opportunity is the rapid number of new international distributors we have brought on board over the past few months for geographies outside the US, including Hong Kong, Macau, UAE, Singapore, Australia, New Zealand, and the Netherlands. Importantly, these agreements typically include initial orders and annual minimums for geographic exclusivity, protect our first pallet shipments have just arrived in Hong Kong and Singapore.

農業領域也是如此。我們與 Poppy Enterprises 簽訂了一項協議，Poppy enterprise 是一家專注於糧食管理市場的經銷商和害蟲防治公司，為中西部上游糧食儲存業務提供服務，在道路和害蟲防治方面面臨著獨特的挑戰。同樣，毒藥受到嚴格監管，在沒有污染的情況下使用起來很棘手，而單獨使用陷阱來維持無黨派進化既昂貴又耗時。南灣為這個廣泛的市場提供了新的工具，結合一些陷阱清單、Fabrice 和有效的非員工、IPM 計劃和其他關鍵證明點，證明REVOLVE 如何擴大我們的市場機會，即我們帶來的新國際分銷商數量迅速增加過去幾個月，我們在美國以外的地區推出了董事會，包括香港、澳門、阿聯酋、新加坡、澳洲、紐西蘭和荷蘭。重要的是，這些協議通常包括初始訂單和年度最低地理排他性，以保護我們剛抵達香港和新加坡的第一批托盤貨物。

That question I know, a lot of investors have been asking us what will all of this mean for sales and reducing our burn rate. What I can report is that in 2024 as of mid-February, total revenues for Synetics that's grown more than 80% compared to the same period in 2023. This is being driven by orders for evolve, which represented more than 50% of year to date 2024 total revenue and includes international revenue for the first time in the Company's history is increasingly clear that evolve is a game changing product person aspect that will be a key driver of our sales growth in 2024.

我知道這個問題，很多投資者一直在問我們這對銷售和降低燒錢率意味著什麼。我可以報告的是，截至 2024 年 2 月中旬，Synetics 的總收入與 2023 年同期相比增長了 80% 以上。這是由evolve 的訂單推動的，該訂單佔2024 年迄今為止總收入的50% 以上，並且在公司歷史上首次包括國際收入，這一點越來越清楚，evolve 是一個改變遊戲規則的產品人員方面，這將是2024 年銷售額成長的關鍵驅動力。

Transitioning the conversation have been we have laid out a few key imperatives to drive growth. One was to offer the customers more choices, which you Bob clearly does not wish to sell better. In some cases, this means improve the infrastructure we have in other instances, it means bringing in as experts in areas where we need additional skills, manufacturers' rep agency. I mentioned as an example, in another example, we are exploring ways to increase our e-commerce capabilities and reach for that. And we are in discussions to expand our e-commerce offerings with an industry leading online distributor of pest control products in the agreement expected soon.

我們已經提出了一些推動成長的關鍵要求。一是為顧客提供更多選擇，而你鮑伯顯然不希望賣得更好。在某些情況下，這意味著改善我們擁有的基礎設施，在其他情況下，這意味著在我們需要額外技能的領域中引入專家、製造商代表機構。我舉了一個例子，在另一個例子中，我們正在探索提高我們的電子商務能力並實現這一目標的方法。我們正在與業界領先的害蟲防治產品線上經銷商討論擴大我們的電子商務產品的事宜，預計很快就會達成協議。

We want to be proactive in addressing this channel and believe that partnering with a dedicated online retailer will be an efficient way to boost revenue going forward due to the early success of evolve for Red fertility control is becoming clear that there is a need to develop a product for fertility control mice. We see this as a substantial opportunity that is equal in market size to the RET market. Our product development team has been hard at work and is currently enhancing the form factor and dosing of the unique sulfate contraceptive for mice and have indicated that a product should be ready to market by mid 2024. We brought evolved for routes to market in less than a year now to follow that up with a unique miles product required a major shift in strategy, a sense of urgency and improved utilization of resources. We have been up to the challenge. Again, I look forward to sharing more with you on our upcoming calls.

我們希望積極主動地解決這個通路問題，並相信與專門的線上零售商合作將是增加未來收入的有效方式，因為紅色生育控制進化的早期成功已經變得越來越明顯，有必要開發一個用於生育控制小鼠的產品。我們認為這是一個與 RET 市場規模相當的重大機會。我們的產品開發團隊一直在努力工作，目前正在改進獨特的小鼠硫酸鹽避孕藥的外形和劑量，並表示該產品應在 2024 年中期準備上市。我們在不到一年的時間內將改進的路線推向市場，隨後推出獨特的里程產品，這需要戰略上的重大轉變、緊迫感和提高資源利用率。我們一直在迎接挑戰。我再次期待在即將召開的電話會議中與您分享更多資訊。

Looking back at 2023, where we have made some great progress in several areas, which I believe set the stage for future growth, namely our product development process and the launch of evolve. We also made significant improvements to many of the processes and procedures to drive efficiency across the organization to give you more detail on that and on the financials, let me turn the call over to Tom.

回顧2023年，我們在幾個領域取得了一些巨大的進步，我相信這為未來的成長奠定了基礎，即我們的產品開發流程和evolve的推出。我們還對許多流程和程序進行了重大改進，以提高整個組織的效率，為您提供有關此方面和財務狀況的更多詳細信息，讓我將電話轉給湯姆。

Tom?

湯姆？

Thank you, Joe. As a reminder to our investors, the press release is available on our website in the Investor Relations section, as will be a recording of this presentation. Further, we have just filed our 10-K, so I'm just going to touch on some of the high points right now. Revenue during the year was $1.2 million, an increase of 17% compared to the $1 million in 2022 for the quarter, revenue was $295,000 compared to $297,000 in the year-ago fourth quarter. During the quarter, we saw a pullback in our e-commerce sales. To some extent this was caused by customer distraction with the of all soft launch limited to key customers. As Joel mentioned, this needs to be an area of focus, and we can use the expertise of an industry-leading online distributor of pest control products to and outsource our e-commerce capabilities.

謝謝你，喬。謹提醒投資者，該新聞稿以及本次簡報的錄音可在我們網站的投資者關係部分取得。此外，我們剛剛提交了 10-K，所以我現在只想談談一些要點。全年營收為 120 萬美元，較 2022 年該季度的 100 萬美元增長 17%，營收為 295,000 美元，而去年第四季為 297,000 美元。本季度，我們的電子商務銷售額有所回落。在某種程度上，這是由於所有軟啟動僅限於關鍵客戶而導致客戶分心。正如喬爾所提到的，這需要成為一個重點領域，我們可以利用業界領先的害蟲防治產品線上經銷商的專業知識來外包我們的電子商務能力。

Gross profit during 2023 was approximately $539,000 or 45% of total revenue compared to approximately $464,000 or 45% of total revenue last year. For the fourth quarter gross profit was $129,000 or 44% of total revenue compared to $116,000 or 39% of total revenue in the year ago, fourth quarter, the gross profit margin and excluded the impact from new product introductions and what was 100 -- was 49%. That's an increase of 10 points over the year.

2023 年的毛利約為 539,000 美元，佔總收入的 45%，而去年約為 464,000 美元，佔總收入的 45%。第四季的毛利為 129,000 美元，佔總營收的 44%，而去年同期為 116,000 美元，佔總營收的 39%。比去年增加了10個百分點。

One important note I want to put out there is that due to the success of eVOLV, we have had to expand our manufacturing capabilities as a point of reference, we were initially manufacturing about GBP200 per day of evolve.

我想指出的一個重要說明是，由於 eVOLV 的成功，我們必須擴大我們的製造能力作為參考，我們最初每天的產量約為 200 英鎊。

Today.

今天。

We are at about GBP1,000 per day and plan to double again in the coming months to meet demand. And that's with a single shift to this point evolve is offered in six and 12 down pails. However, we are launching a new GBP3 pouch for the consumer market, which we plan to begin shipping in March to account for the initial source of raw materials and finished goods. We have expanded our warehouse space in Phoenix this may result in a dip in margins in the near term, but we would expect to ramp as capacity becomes more optimized ultimately where whereas contract has brings in gross margin of about 50% evolve has the potential to earn 60% one more. Operating expenses for the year were $8.2 million, a decrease of nearly $2 million compared to the $10 million in 2022. We made numerous changes in our operating structure, bringing OpEx for the year down from $10 million in 2022 and this resulted in a $1.6 million improvement for the year in our adjusted EBITDA, the Company remains committed to driving operational efficiencies with the goal of removing another million dollars out of annual operating expenses.

我們的收費約為每天 1,000 英鎊，並計劃在未來幾個月內再次翻倍以滿足需求。到此為止，單次轉變可提供 6 個和 12 個下桶。不過，我們正在針對消費市場推出一款新的 GBP3 袋子，我們計劃在 3 月開始出貨，以解決原材料和成品的初始來源問題。我們已經擴大了鳳凰城的倉庫空間，這可能會導致短期內利潤率下降，但我們預計，隨著容量最終變得更加優化，合約將帶來約 50% 的毛利率，但有可能演變為多賺60%。全年營運費用為 820 萬美元，與 2022 年的 1,000 萬美元相比減少了近 200 萬美元。我們對營運結構進行了多項調整，使本年度的營運支出從 2022 年的 1000 萬美元下降，這導致本年度調整後的 EBITDA 提高了 160 萬美元，公司仍然致力於提高營運效率，目標是消除另一個萬美元的年度營運費用。

Net loss during 2023 was $7.7 million compared to a net loss of $9.7 million in 2022, an improvement of $2 million. Adjusted EBITDA loss, which is a non-GAAP measure of operating performance for 2023 was $6.9 million compared to $8.5 million in 2022, an improvement of one $1.5 million. As I mentioned, quarterly adjusted EBITDA loss was the smallest in company history as we strive to achieve our goal of achieving positive operating cash flow as soon as possible in the coming quarters.

2023 年的淨虧損為 770 萬美元，與 2022 年的淨虧損 970 萬美元相比，減少了 200 萬美元。調整後 EBITDA 損失（以非公認會計原則衡量 2023 年營運績效）為 690 萬美元，與 2022 年的 850 萬美元相比，增加了 150 萬美元。正如我所提到的，季度調整後 EBITDA 損失是公司歷史上最小的，因為我們努力實現在未來幾季盡快實現正營運現金流的目標。

Cash at the end of December 2023 was $5.4 million. We improved the balance sheet through a $5 million public offering of common stock and warrants in November of 2023, of which we saw $1 million of in warrants exercised so far, we are optimistic that as we continue to execute our business plan that the remaining warrants will be a source of cash over the coming quarters with that, operator, let me now turn it over for any questions.

截至 2023 年 12 月末，現金為 540 萬美元。我們於2023 年11 月透過公開發行500 萬美元的普通股和認股權證改善了資產負債表，其中迄今為止已行使了100 萬美元的認股權證，我們樂觀地認為，隨著我們繼續執行我們的業務計劃，剩餘的認股權證將得到行使。

Anthony, we will now begin the question and answer session. To ask question. You may press star then one on your telephone keypad. If using a speakerphone, please pick up your handset before pressing the keys. To withdraw from the question queue, please press star then two. At this time, we'll pause momentarily. To assemble our roster.

安東尼，我們現在開始問答環節。來提問。您可以按下電話鍵盤上的星號，然後按一個。若使用免持電話，請在按鍵前拿起聽筒。若要退出問題佇列，請按星號然後按兩顆。這時候，我們就暫停一下。組裝我們的名單。

Our first question comes from Amit Dayal with H.C. Wainwright. You may now go ahead.

我們的第一個問題來自 Amit Dayal 和 H.C.溫賴特。現在你可以繼續了。

Thank you, guys.

感謝你們。

Congratulations on all the progress you've made this year on with respect to, you know, sort of growth expectations for 2024. I know you've commented 80% year-over-year growth so far in 2024 compared to 2023 could this potentially accelerate with the consumer offering on just any color on how we should think about in a modeling for 2024 with all these distribution agreements now in place and move on this new, I guess the consumer market, we will also allow coming into play for you.

恭喜你們今年在 2024 年的成長預期方面取得的所有進展。我知道您已經評論過，與2023 年相比，2024 年迄今同比增長了80%，隨著向消費者提供任何顏色的產品，這種增長是否可能會加速，我們現在應該如何考慮在2024 年的建模中考慮所有這些分銷協議就位並繼續前進這個新的消費市場，我想我們也將允許為您發揮作用。

Yes, great question, and I can expand on that. This is Joe on the one of the one of the key things with our product is that we have to get the state on registration state approvals. Right now. We have 30 states that we can sell. And in the United States, we expect to have all 50 sometime in the second quarter, hopefully by the end of the second quarter for sure. So we started out that and we're not able to sell everywhere. So that's one factor. Certainly, the consumer market and the retail space is a huge opportunity. That market is estimated at $250 million to $300 million for rodenticide products. And so just being able to step into that marketplace is very significant in itself. So you can see that with those two things lining up and with our international expansion, getting six exclusive distributors in the span of really 60 days here, it leads us to believe there are a lot of others that will follow behind over the next six months. So you combine all those three things together. And yes, there's a major upside with the fact that we now have a product that can be going through distribution on a significant level. And so we have distributors that we're working with domestically and certainly those internationally. So we have the product we have we know its efficacy and we have a lot of expertise that's out there now with the product. So we're really excited about the upside potential.

是的，很好的問題，我可以對此進行擴展。這是喬的說法，我們產品的關鍵之一是我們必須獲得州政府的註冊批准。現在。我們有 30 個州可以出售。在美國，我們預計將在第二季某個時候擁有全部 50 台，希望能在第二季末完成。所以我們開始這樣做，但我們無法在所有地方銷售。這是一個因素。當然，消費市場和零售空間是一個巨大的機會。滅鼠劑產品的市場估計為 2.5 億至 3 億美元。因此，能夠進入這個市場本​​身就非常重要。因此，您可以看到，隨著這兩件事的配合，以及我們的國際擴張，在60 天內獲得了6 家獨家經銷商，這讓我們相信在接下來的六個月裡還有很多其他經銷商會跟進。所以你把這三件事結合在一起。是的，我們現在擁有可以大規模分銷的產品，這是一個重大的優點。因此，我們有與國內經銷商合作的經銷商，當然還有國際經銷商。因此，我們擁有我們所擁有的產品，我們知道它的功效，我們現在擁有該產品的大量專業知識。因此，我們對它的上升潛力感到非常興奮。

Thank you for that, Joe. On some on the margins front, Tom commented about expecting a little bit of a dip in the near term as you sort of on, you know, expand your presence in the market, but by the end of the fourth quarter, do you expect to be higher than on 2023 or similar levels?

謝謝你，喬。在一些利潤方面，湯姆評論說，預計短期內會出現一些下滑，因為你知道，擴大你在市場上的影響力，但到第四季度末，你預計會下降嗎？嗎？

Well, we certainly expect it to be higher as Tom had mentioned that the margins for evolve, our are probably 1,000 basis points higher than than what they are for contract past the and we can if we can ramp it and get it up there and some of the startup costs we've had big a bad by the fourth quarter. We expect to see on margins that are closer to 60% than to the [50%].

好吧，我們當然預計它會更高，正如湯姆提到的那樣，我們的進化利潤率可能比過去的合約高出1,000 個基點，如果我們能夠提高它並達到一定水平，我們就可以做到這一點到第四季度，我們的啟動成本已經大幅下降。我們預計利潤率將接近 60%[50%]。

Understood. Just one last one from me, guys. On your comments about the e-commerce side of the distribution. Did I hear this correctly that you are so outsourcing it to your distributor, if you could just clarify, you know how you are setting up the e-commerce effort going forward?

明白了。夥計們，我只是最後一張。關於您對分銷的電子商務方面的評論。我沒聽錯的話，您將其外包給您的經銷商，如果您能澄清一下，您知道您將如何進行電子商務工作嗎？

Yes. So basically, what we're doing is we're outsourcing some of the the and the assistance that we need to really make it expand using some of their resources that they have that we just don't have in house right now. So they approached us with a <unk> a proposal and how we could do the e-commerce better. And we think that we can double our e-commerce business, but we got to have the right resources behind it. And we think that they can provide the right resources so that we can we can grow the business on the e-commerce side as well.

是的。所以基本上，我們正​​在做的就是外包一些我們需要的資源和幫助，以利用他們擁有的我們目前沒有的一些資源來真正使其擴展。因此，他們透過提案與我們聯繫，以及我們如何更好地做電子商務。我們認為我們可以將電子商務業務翻一番，但我們必須擁有合適的資源。我們認為他們可以提供合適的資源，以便我們也可以發展電子商務方面的業務。

But this doesn't mean timing exclusively to this entity, right. I mean, the suggestion service provider fee raise more than yesterday, others sort of.

但這並不意味著只對這個實體進行計時，對吧。我的意思是，建議服務提供者的費用比昨天上漲更多，其他的。

Yeah.

是的。

Exclusivity. Okay. Understood.

排他性。好的。明白了。

Absolutely right.

絕對正確。

Thank you. That's all I mean, I appreciate it. Thanks so much.

謝謝。這就是我的意思，我很感激。非常感謝。

Thank you.

謝謝。

Again, if you have a question, please press star than one.

再次強調，如果您有疑問，請按星號。

Anthony.

安東尼.

This is Robert Bloom here. I've got a few questions. While we wait to see if there are additional people that are interested in queuing up here that I'd like to make sure get addressed on.

我是羅伯特·布魯姆。我有幾個問題。當我們等待看看是否還有其他人有興趣在這裡排隊時，我想確保得到解決。

First question here. A bit of flow of distribution agreements coming in, several of which have had annual minimums. But can we get some clarity on the size of these orders? Are the required minimums in sort of the tens of thousands of dollars hundreds of thousands, any sort of average contract size or minimums that you could provide would be greatly appreciated.

第一個問題在這裡。一些分銷協議的流量不斷增加，其中一些協議規定了年度最低限額。但我們能否清楚了解這些訂單的規模？所需的最低金額是否為數萬美元或數十萬美元，您可以提供任何類型的平均合約規模或最低金額，我們將不勝感激。

Yes. So each of those agreements that we have there we represent in different territories, different potentials on, but typically for us to get involved in an exclusive arrangements is we want the they have a local source of product available sooner rather than later. And so our initial orders require a one pilot minimum order, which is about $10,000 roughly. And then we have annual minimums that we set up as well and those started $100,000. So really what we're doing is we're wanting to put distributors in place that we feel really strong about the product and about the market and are willing to bring the product in. So we're looking to do that in a number of different situations and really help them grow over time.

是的。因此，我們在那裡達成的每項協議都代表不同的地區，具有不同的潛力，但通常我們參與獨家安排是希望他們儘早擁有本地產品來源。因此，我們的初始訂單需要一名飛行員的最低訂單，約為 10,000 美元。然後我們還設定了年度最低限額，起價為 100,000 美元。因此，我們實際上正在做的是，我們希望讓經銷商就位，讓我們對產品和市場有很強的信心，並願意將產品引入。因此，我們希望在許多不同的情況下做到這一點，並真正幫助他們隨著時間的推移而不斷成長。

All right. Perfect. Next question here. It seems that several of these new contracts are contingent on regulatory approval. Has some Nasdaq experienced any hurdles getting evolve approved in any countries? If so, what is the plan to overcome those hurdles.

好的。完美的。下一個問題在這裡。其中一些新合約似乎取決於監管部門的批准。某些納斯達克在任何國家獲得進化批准時是否遇到任何障礙？如果是這樣，克服這些障礙的計劃是什麼？

But not really no. I think the initial distribution that we've signed up of the distributors themselves are very familiar with the regulatory process in their countries and are confident that they can move that that forward. So the key is being able to partner with distributors who know how to navigate the regulation and dumb. They take the lead. We work with them on getting the approvals. And if there are a few countries out there that we've just put on the back burner because they have some really some onerous regulatory processes. And initially we targeted the markets that we feel very comfortable getting the product approved and subsequently being used.

但也不是真的沒有。我認為我們簽署的最初分銷協議的分銷商本身非常熟悉其所在國家的監管流程，並且有信心他們能夠推動這一進程。因此，關鍵是能夠與知道如何駕馭法規和愚蠢的分銷商合作。他們帶頭。我們與他們合作以獲得批准。如果有一些國家我們只是暫時擱置，因為他們有一些非常繁瑣的監管程序。最初，我們的目標市場是我們非常樂意讓產品獲得批准並隨後使用的市場。

Alright, great. on Next question we have here does Sinopec have the manufacturing capacity today to fill these orders?

好吧，太棒了。關於我們這裡的下一個問題，目前中石化是否有生產能力來滿足這些訂單？

If now, what does the manufacturing time line over the next few quarters Look like?

如果現在的話，未來幾季的生產時間線是什麼樣的？

Not much to go, I'm.

沒什麼好走的，我。

Sure. Yes, yes, we have the capacity. We were confident that the demand would be there for evolve and would grow quickly. So we design our processes to be very easily scalable. So we don't have we don't have any worries there.

當然。是的，是的，我們有這個能力。我們相信需求將會不斷發展並且會快速成長。因此，我們將流程設計得非常容易擴展。所以我們沒有任何擔憂。

Okay.

好的。

Great.

偉大的。

On two more questions here. Us domestic raised a few million dollars through warrants recently and sort of as you hope to enter this rapid growth phase this year? And next, does the company plan to raise capital by continuing to issue stock warrants? Or will there start adding debt to the balance sheet.

這裡還有兩個問題。美國國內最近透過認股權證籌集了數百萬美元，您希望今年進入這個快速成長階段嗎？接下來，公司是否計劃透過繼續發行認股權證來籌集資金？或是否會開始在資產負債表上增加債務。

Yeah. Maybe I'll take that one to maybe a bit early for cash flow-based debt, but we're already using asset based financing for our production equipment requirements. In addition to financing, we recently did have $5 million for the short term warrants, which have to be exercised in about a year or they expire. We have found that the short term warrants are an excellent source of cash without having to do other deals.

是的。對於基於現金流的債務，我可能會有點早，但我們已經在使用基於資產的融資來滿足我們的生產設備需求。除了融資之外，我們最近還有 500 萬美元的短期認股權證，這些認股權證必須在大約一年內行使，否則就會到期。我們發現，短期認股權證是一種極佳的現金來源，而無需進行其他交易。

Okay, great. And final question here. Has any competition with evolve involving the active ingredients into the markets? Anything you can discuss on that topic?

好的，太好了。最後一個問題。市場上是否存在涉及活性成分的競爭？關於這個主題你有什麼可以討論的嗎？

No, we haven't seen anything. Any companies any other products enter the market, um, we have a patent pending on evolve. Contrapest is issued patents around it. So we don't believe that there will be a competition in the near term for sure.

不，我們什麼也沒看到。任何公司任何其他產品進入市場，嗯，我們正在申請進化專利。Contrapest 已獲得相關專利。因此，我們認為短期內絕對不會出現競爭。

All right, fantastic. That's all the questions we have here on this side on Anthony Operator, I'll turn it back over to you.

好吧，太棒了。這就是我們這邊關於安東尼接線員的所有問題，我會把它轉回給你。

This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議轉交管理層發表閉幕詞。

Sure. Thank you. Our goal for 2024 is really all about sales execution while remaining innovative through the introduction of new and innovative products to the market, such as the mouse product. We've talked about my excitement is as high as it has been since I joined the company, I believe we have the right mix of product offerings and team member enthusiasm to fully attack the large and growing road control market market that is desperately in need of innovation and fertility control is that innovation. And so Nasdaq is clearly leading the way. So we thank you for all your continued support.

當然。謝謝。我們 2024 年的目標實際上是銷售執行，同時透過向市場推出新的創新產品（例如滑鼠產品）來保持創新。我們談到，自從我加入公司以來，我的興奮程度一直很高，我相信我們擁有正確的產品組合和團隊成員的熱情，可以充分進攻急需的龐大且不斷增長的道路控制市場創新和生育控制的關鍵在於創新。因此，納斯達克顯然處於領先地位。因此，我們感謝您一直以來的支持。

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。您現在可以斷開連線。