Q1 2024 22nd Century Group Inc Earnings Call
We opened for questions following the managements prepared remarks.
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Speaker Change: It is now my pleasure to turn the floor over to Matt Kreps Investor Relations for 20, <unk> century group. Please begin.
Matt Kreps: Hello, and welcome to twenty-second century's first quarter results conference call. Joining me today are Larry Firestone, CEO and Dan Auto CFO.
Speaker Change: Earlier today, we issued a press release announcing our results for the first quarter 2020 for the release and 10-Q are available on the investors section of our website at <unk> II century Dot Com, we'll start today's call with prepared remarks from Larry and Dan before moving into a Q&A session with our analysts if you have questions about our business not <unk>.
Speaker Change: Dress on this call you're welcome to email Investor relations using the contact information provided in today's press release.
Speaker Change: Before we begin if you reminders for today's call.
Speaker Change: Some of the statements made today are forward looking forward looking statements are subject to risks uncertainties and other factors that may cause actual results to differ materially from those contemplated by these statements additional information regarding these factors can be found in our annual quarterly and other reports filed with the SEC.
Speaker Change: Also during today's call, we may discuss non-GAAP financial measures, including adjusted EBITDA, which we define as earnings before interest taxes, depreciation and amortization as adjusted for certain noncash and nonoperating expenses for more details on these measures. Please refer to our release issued earlier today.
Speaker Change: And with that I'll now turn the call over to Larry.
Larry Firestone: Good morning, and thank you for joining 20, <unk> century's first quarter 2024 results conference call.
When I spoke to you for the first time as CEO of this company last quarter I told you. The 20 <unk> century had a brand new focus.
To become a self sustaining and cash flowing business.
Speaker Change: But our priority was what is good for the company comes first.
Speaker Change: We are dedicated to making this company live with the new skin is a profitable cash positive NASDAQ listed company.
Speaker Change: With a strong foothold in the tobacco space.
Speaker Change: <unk> nicotine harm reduction.
Speaker Change: I meant that as a sincere commitment and I want to say at the outset.
Speaker Change: Just as much today.
Speaker Change: Last quarter I told you about some of the steps we have taken right away to turn this company in the direction of profitability.
Speaker Change: I'm eager to tell you about how those steps are starting to pay off and how we are continuing to turn the ship in the right direction.
Speaker Change: At the same time I want to be straightforward and remind everyone. The turnarounds don't happen overnight.
Speaker Change: And there is a lot of work yet to be done.
Speaker Change: An example of results.
Speaker Change: Cash used in the first quarter of 2024 fell to just $2 5 million as opposed to last year's quarterly cash burn rate of approximately $15 million.
Speaker Change: The number of financings, we head to our range over the past year to support that kind of spending tells the story.
Speaker Change: We will continue to consume cash over the balance of the year, but please know.
Speaker Change: We're pulling hard on all levers to continue to drop our burn along the way.
Speaker Change: To breakeven and then cash positive in.
Speaker Change: In 2025.
Speaker Change: Before I get into more specifics, let me just say one thing about those financings raising capital in these markets remains difficult.
Speaker Change: We are thankful for the investors that have supported our company during this turnaround process.
Speaker Change: It is important to note that they are not just buying and selling stock.
Speaker Change: But are providing critical incremental capital that sustains us through this turnaround.
Speaker Change: In April those investors raised an additional $4 million.
Speaker Change: To help us keep moving forward to success.
Speaker Change: Every dollar counts.
Speaker Change: We are stretching those dollars as far as we can.
Speaker Change: And evaluate every decision by answering the question how are you going to pay for it.
Speaker Change: This is in light of our goal to achieve cash positive results.
Speaker Change: Getting back to operations I couldnt be more proud of how quickly our team has moved to drive to the goal of breakeven by making significant changes in our business that put us on a path forward.
Speaker Change: To accomplishing our goal.
Speaker Change: We have increased prices on our discontinued unprofitable product lines.
Speaker Change: Significantly reduced our operating expenses in all corners of the company and our cash utilization rate.
Speaker Change: Is down to a fraction of what the company had been spending before I joined.
Speaker Change: We intend to show even more progress in the second quarter as we work to grow our revenues profitably and continue to push on operating expenses and our drive to breakeven in Q1 of 2025.
It is our goal to achieve cash positive results.
Speaker Change: We booked some new profitable CMO business, which we announced in April and those orders are beginning to ramp in the second quarter.
Getting back to operations I couldnt be more proud of how quickly our team has moved to drive to the goal of breakeven by making significant changes in our business.
Speaker Change: Not only have we focused on the P&L, but we have strengthened our balance sheet through debt reductions using stock as a currency.
Put us on a path forward to.
Speaker Change: Let me unpack some of the key pieces.
To accomplishing our goal.
We have increased prices on our discontinued unprofitable product lines.
Speaker Change: Our transformation efforts and a little more detail.
Speaker Change: On the revenue side.
Significantly reduced our operating expenses in all corners of the company and our cash utilization rate is down to a fraction of what the company had been spending before I joined.
Speaker Change: We declined slightly quarter over quarter, which was expected as we work through the product mix adjust pricing and in some cases turn off certain lines and the CMO business that had a negative gross margins.
We intend to show even more progress in the second quarter as we work to grow our revenues profitably and continue to push on operating expenses and our drive to breakeven in Q1 of 2025.
Speaker Change: Some of this may drag through Q2 and into Q3 as we have contractual agreements with.
Speaker Change: Obligate us while the product has transitioned out of our shop, and then to a new supplier.
We booked some new profitable CMO business, which we announced in April and those orders are beginning to ramp in the second quarter.
Speaker Change: We expect gross margin improvement as we execute the rest of the year.
During April we announced a new CMO customer that will boost our CMO volumes by up to 20% once fully implemented but just as important we'll work to profitably offset the decline in the unprofitable filtered cigar business as we offload those that are unprofitable or new contracts.
Not only have we focused on the P&L, but we have strengthened our balance sheet through debt reductions using stock as a currency.
Let me unpack some of the key pieces of our transformation efforts and a little more detail.
On the revenue side.
We declined slightly quarter over quarter, which was expected as we work through the product mix adjust pricing and in some cases turn off certain lines and the CMO business that had a negative gross margins.
Speaker Change: Began to ramp up in the second quarter.
Speaker Change: We also announced a new distribution agreement, adding cigarillo products to our pinnacle brand.
Speaker Change: These will be sold through a top five C store chain with more than 7500 stores across 26 states.
Some of this may drag through Q2 and into Q3 as we have contractual agreements with.
That obligate us while the product has transitioned out of our shop and into a new supplier.
This is an incremental addition to the shelves and one of the highest tobacco sales volume per square foot C stores, where pinnacle's promoted as their store brands to save customers money.
We expect gross margin improvement as we execute the rest of the year.
During April we announced a new CMO customer that will boost our CMO volumes by up to 20% once fully implemented but just as important we'll work to profitably offset the decline in the unprofitable filtered cigar business as we offload those that are unprofitable or new contracts.
Speaker Change: This has also begun in Q2 and will add to our topline and gross margin.
Speaker Change: Dan will get into the details on gross margin and Opex in his section, but I want to be clear.
Dan Auto: We fully adopted a lean cost mantra across the company.
Dan Auto: All of this tallies up to a substantial savings in 2024 and beyond.
Began to ramp up in the second quarter.
We also announced a new distribution agreement, adding cigarillo products to our pinnacle brand.
Speaker Change: I've said before that our trademark brand BLM, which stands for very low nicotine cigarettes is decaf coffee and skim is the milk.
These will be sold through a top five C store chain with more than 700 stores across 26 states.
Speaker Change: If anyone has told you you need to cut back we have the tool.
This is an incremental addition to the shelves and one of the highest tobacco sales volume per square foot C stores, where pinnacle's promoted as their store brands to save customers money.
Speaker Change: The name stands for something very important.
And it's up to us to make account.
Speaker Change: We are retooling, our real and branding and we will rollout our new branding in the second half of the year.
This has also begun in Q2 and will add to our top line and gross margin.
Speaker Change: We're driving to make real and more visible in the store.
Dan will get into the details on gross margin and Opex in his section, but I want to be clear.
And the FDA data that we used to secure our MLR T. P authorization makes clear that our <unk> cigarettes can be a critical tool in the fight to reduce the harm from nicotine from smoking.
We fully adopted a lean cost mantra across the company.
All of this tallies up to a substantial savings in 2024 and beyond.
vonn: And smokers, who have used the product successfully credit vonn with playing an important part and breaking the cycle of nicotine addiction, and helping them smoke less.
I've said before that our trademark brand <unk>, which stands for very low nicotine is the cigarettes is decaf as the coffee and skim Mr milk.
Speaker Change: When we launched our new branding, we want <unk> to be the tip of the sphere and the creation of an entire harm reduction category.
If anyone has told you you need to cut back we have the tool.
The name stands for something very important.
Speaker Change: Entered around reduced nicotine products.
And it's up to us to make account.
Speaker Change: We're also looking for other brands that we produce to adopting carry a BLM SKU and their product lines as well.
We are retooling, our <unk> branding and we will rollout our new branding in the second half of the year.
Speaker Change: If successful this will give smokers, who want to pursue changes in their nicotine consumption more very low nicotine choices and make the category more visible.
We're driving to make BLM more visible in the store.
Speaker Change: And the FDA data that we used to secure our MLR T. P authorization makes clear that our <unk> cigarettes can be a critical tool in the fight to reduce the harm from nicotine from smoking.
Speaker Change: The good news is that.
Speaker Change: But we have the distribution in stores to accomplish this goal in place we just need to continue our pursuit of consumer awareness and consumer acquisition.
Speaker Change: And smokers, who have used the product successfully credit vonn with playing an important part and breaking the cycle of nicotine addiction, and helping them smoke less.
To that end, we're focused on two aspects first.
Speaker Change: We're rebuilding the marketing and education around V O N using resources that I've used before and similar efforts.
Speaker Change: When we launched our new branding, we want <unk> to be the tip of the sphere and the creation of an entire harm reduction category.
Speaker Change: As well as our branding efforts and second we're moving ahead on additional streams of reduced nicotine content tobacco to support additional blends as we go forward, which will allow us to offer customers a chance to more closely match a reduced nicotine alternative to their existing preferred brands.
Speaker Change: Entered around reduced nicotine products.
Speaker Change: We're also looking for other brands that we produce to adopting carry a BLM SKU and their product lines as well.
Speaker Change: If successful this will give smokers, who want to pursue changes in their nicotine consumption more very low nicotine choices and make the category more visible.
Speaker Change: By engaging our audiences and potentially offering a variety of deal and skus adjacent to their existing cigarette of choice.
Speaker Change: The good news is that.
Speaker Change: We have the distribution and storage to accomplish this goal in place we just need to continue our pursuit of consumer awareness and consumer acquisition.
Speaker Change: And offering additional brand choices.
Speaker Change: We want to make it easy for smokers to recognize the concept of <unk> as a choice and switch to a reduced nicotine content product.
Speaker Change: To that end, we're focused on two aspects first.
Speaker Change: We're rebuilding the marketing and education around V. L N using resources that I've used before and similar efforts.
Speaker Change: And commit to their harm reduction journey I.
Speaker Change: I also want to reinforce this simple message to our shareholders government actions to push harm reduction products to the forefront could potentially help us.
Speaker Change: As well as our branding efforts and second we're moving ahead on additional strains of reduced nicotine content tobacco to support additional blends as we go forward, which will allow us to offer customers a chance to more closely match a reduced nicotine alternative to their existing preferred brands.
Speaker Change: We simply cannot and will not rely on government action as a part of our business plan.
Speaker Change: We must run the business within our span of control and are planning our business accordingly.
Speaker Change: We want to make smokers aware of our very low nicotine products.
Speaker Change: By engaging our audiences and potentially offering a variety of deal and skus adjacent to their existing cigarette of choice.
Speaker Change: And have them make the choice real time to reduce their nicotine harm.
Speaker Change: This is a powerful tool in our toolkit and the market.
Speaker Change: And offering additional brand choices.
Speaker Change: But the government is not going to force customers to use our products.
Speaker Change: We want to make it easy for smokers to recognize the concept of <unk> as a choice and switch to a reduced nicotine content product.
Speaker Change: But even without government action.
Speaker Change: I believe that our U S government and the FDA want the U S population of smokers to realize the harmful and addictive nature of cigarettes and take the initiative to stop smoking on their own and solve the problem.
Speaker Change: And commit to their harm reduction journey.
Speaker Change: I also want to reinforce this simple message to our shareholders government actions to push harm reduction products to the forefront could potentially help us we simply cannot and will not rely on government action as a part of our business plan.
Speaker Change: The overarching cost in lives and healthcare and infrastructure related to smoking.
Speaker Change: Is huge.
Speaker Change: We must run the business within our span of control and are planning our business accordingly.
Speaker Change: Our bar for economic success with Vlan remains low with 5100 retail outlets.
Speaker Change: We want to make smokers aware of our very low nicotine products.
Speaker Change: That currently carry V L N.
Speaker Change: And have them make the choice real time to reduce their nicotine harm.
Speaker Change: We just need each of them to sell nine packs per week to completely carry the entire company's overhead costs.
Speaker Change: This is a powerful tool in our toolkit and the market but.
Speaker Change: That is essentially one carton per week per store.
Speaker Change: But the government is not going to force customers to use our products.
Speaker Change: Some of the change the carrier <unk> and share our interests already and are developing separate in store categories focused on harm reduction products for smokers.
But even without government action.
I believe that our U S government and the FDA want the U S population of smokers to realize the harmful and addictive nature of cigarettes and take the initiative to stop smoking on their own and solve the problem.
Speaker Change: This commitment by retailers would be a major step forward.
Speaker Change: <unk> brand awareness.
Speaker Change: As we continue working on our branding and product awareness initiatives, while we strengthened our financial capability and move towards profitability, we will increase our spending efforts with strategic retail partners getting the message to smokers.
The overarching cost in lives and healthcare and infrastructure related to smoking is huge.
Speaker Change: Our bar for economic success with V. L. N remains low with 5100 retail outlets.
Speaker Change: We are looking to further increase our store distribution with relevant retailers and continue to build our support with the medical and scientific community that understands the importance of <unk> brand to public health.
Speaker Change: That currently carry BLM.
Speaker Change: We just need each.
Speaker Change: Of them to sell nine packs per week to completely carry the entire company's overhead costs.
That is essentially one carton per week per store.
Speaker Change: As far as our CMO business goes.
Speaker Change: Some of the change the carrier <unk> and share our interests already and are developing separate in store categories focused on harm reduction products for smokers.
Speaker Change: Which is currently the bulk of our revenues, we see an opportunity to expand our reach and provide a valuable service to the industry and grow organically.
Speaker Change: This commitment by retailers would be a major step forward.
Speaker Change: Contract manufacturing is prevalent in many other industries and our team in North Carolina is equipped to take the fixed cost of direct labor and overhead.
Speaker Change: <unk> brand awareness.
Speaker Change: As we continue working on our branding and product awareness initiatives, while we strengthened our financial capability and move towards profitability, we will increase our spending efforts with strategic retail partners and getting the message to smokers.
Speaker Change: At our customer sites.
And turn it into a variable cost for our CMO customers.
Speaker Change: This relieves them of the fixed nature of the overhead behind the direct labor and overhead.
Speaker Change: We are looking to further increase our store distribution with relevant retailers and continue to build our support with the medical and scientific community that understands the importance of <unk> brand to public health.
Speaker Change: And it's a much simpler model for them as they can focus on marketing and selling.
Speaker Change: We will continue to work our strategies in this area to develop a wider network of customers with the goal of full utilization of our factories capacity.
Speaker Change: As far as our CMO business goes.
Speaker Change: I will now turn the call over to Dan to review the financial results for Q1 as well as some excellent news, we released about our balance sheet Dan.
Speaker Change: Which is currently the bulk of our revenues, we see an opportunity to expand our reach and provide a valuable service to the industry and grow organically.
Dan Auto: Thank you Larry Good morning, everyone and thank you again for joining our discussion today.
Speaker Change: Contract manufacturing is prevalent in many other industries and our team in North Carolina is equipped to take the fixed cost of direct labor and overhead.
Dan Auto: I'll provide further details on our fourth quarter financial results.
Dan Auto: As a reminder, all financial results in our earnings release are presented on a continuing operations basis, which excludes our hemp cannabis business.
Speaker Change: At our customers' sites.
Speaker Change: And turn it into a variable cost for our CMO customers.
Speaker Change: This relieves them of the fixed nature of the overhead behind that direct labor and overhead.
Dan Auto: Net sales were $6 5 million declining slightly from $7 4 million in the fourth quarter of 2023 due to lower volume.
Speaker Change: And it's a much simpler model for them as they can focus on marketing and selling.
Speaker Change: This is reflective of lower unit sales as a result of our ongoing reallocation and production resources at the company's nasco facilities away from lower and in some cases negative margin filtered cigars.
Speaker Change: We will continue to work our strategies in this area to develop a wider network of customers with the goal of full utilization of our factories capacity.
Speaker Change: I will now turn the call over to Dan to review the financial results for Q1 as well as some excellent news, we released about our balance sheet and.
Speaker Change: Higher margin D L N and conventional cigarette products.
Speaker Change: As Larry outlined we have certain price increases and added new volume in the second quarter of 2024, which are yielding strong results in the month of May.
Dan: Thank you Larry Good morning, everyone and thank you again for joining our discussion today.
Speaker Change: Gross profit for the first quarter was a loss of $1 1 million, which included one time charges related to inventory write offs of approximately 400000, and an excise tax assessment related to prior periods of 200000.
Dan: I'll provide further details on our fourth quarter financial results.
Dan: As a reminder, all financial results in our earnings release are presented on a continuing operations basis, which excludes our hemp cannabis business.
Dan: Net sales were $6 5 million declining slightly from $7 4 million in the fourth quarter of 2023 due to lower volume.
Speaker Change: Accordingly, our monthly margin loss was approximately 200000, which is a result of the initiatives Larry and I have outlined that began in the second quarter.
Dan: This is reflective of lower unit sales as a result of our ongoing reallocation and production resources at the Companys nasco facilities away from lower and in some cases negative margin filtered cigars.
Speaker Change: See these losses begin to reverse and gradually gained momentum throughout the remainder of 2024.
Speaker Change: Total operating expenses were $3 3 million down from $10 4 million in the comparative prior year period and sequentially down from $6 4 million in the fourth quarter of 2023.
Dan: Higher margin DLR and conventional cigarette products.
Speaker Change: As Larry outlined we have certain price increases and added new volume in the second quarter of 2024, which are yielding strong results in the month of May.
Speaker Change: As a result of our rapid cost reduction initiatives and lean operating focus we have substantially decreased the cash needs of our business.
Cash used in operations during the first quarter of 2024 declined significantly to $2 3 million as compared to the prior comparative period of $17 5 million in fourth quarter 2023, $4 8 million.
Speaker Change: Gross profit for the first quarter was a loss of $1 1 million, which included one time charges related to inventory write offs of approximately 400000, and an excise tax assessment related to prior periods of 200000.
Speaker Change: Net loss for the first quarter declined to $5 6 million and adjusted EBITDA loss decreased significantly to $3 5 million.
Speaker Change: Accordingly, our monthly margin loss was approximately 200000, which is a result of the initiatives Larry and I have outlined that began in the second quarter.
Speaker Change: A full reconciliation table of GAAP to non-GAAP measures is included in our earnings release.
Speaker Change: See these losses begin to reverse and gradually gained momentum throughout the remainder of 2024.
Our first quarter 2020 core financial results provide an initial view of the significant transformation, primarily impacting the P&L to reduce costs that the company has undertaken since the fourth quarter of 2023.
Speaker Change: Total operating expenses were $3 3 million down from $10 $4 million kind of comparative prior year period and sequentially down from $6 4 million in the fourth quarter of 2023.
As a result of our rapid cost reduction initiatives and lean operating focus we have substantially decreased the cash needs of our business.
Not only are we focused on the P&L to reach profitability. We also continue on the path of restoring strength to the balance sheet.
Speaker Change: We have implemented numerous cash preservation initiatives and maintain our lean cost structure and overhead mantra.
Speaker Change: Cash used in operations during the first quarter of 2024 declined significantly to $2 3 million as compared to the prior comparative period of $17 5 million in fourth quarter 2023, $4 8 million.
Speaker Change: We also have a goal of quickly restoring normal balance sheet kpis for simple metrics, including positive working capital minimum standard current ratio and reversing shareholders' deficit to positive equity.
Speaker Change: Net loss for the first quarter declined to $5 6 million and adjusted EBITDA loss decreased significantly to $3 5 million.
Speaker Change: Subsequent to quarter end in April and May we have completed transactions benefitting each of our balance sheet goals, including.
Speaker Change: A full reconciliation table of GAAP to non-GAAP measures is included in our earnings release.
Our first quarter 2024 financial results provide an initial view of the significant transformation, primarily impacting the P&L to reduce costs that the company has undertaken since the fourth quarter of 2023.
Speaker Change: First we completed a registered direct offering of gross cash proceeds of $4 2 million.
Speaker Change: Which provides the company with extended cash runway moving us another step closer to being funded until we are profitable and generating cash positive operations.
Speaker Change: Not only are we focused on the P&L to reach profitability. We also continue on the path of restoring strength to the balance sheet.
Second we completed multiple debt and other liability exchanges for equity transactions, resulting in a total decrease of liabilities and increase in shareholders equity of approximately $8 million.
Speaker Change: We have implemented numerous cash preservation initiatives and maintain our lean cost structure and overhead mantra.
Speaker Change: We also have a goal of quickly restoring normal balance sheet kpis for simple metrics, including positive working capital minimum standard current ratio and reversing shareholders' deficit to positive equity.
Speaker Change: Significant components of this included approximately $2 7 million reduction.
Speaker Change: And the J G B senior secured credit facility and approximately $5 2 million reduction of the subordinated debt.
Speaker Change: As we continue to chip away at repayment of our outstanding debt obligations, we continued to sequentially lower cash interest payments and interest expense.
Speaker Change: Subsequent to quarter end in April and May we have completed transactions benefitting each of our balance sheet goals, including.
Speaker Change: First we completed a registered direct offering of gross cash proceeds of $4 2 million.
Speaker Change: We now also have in place a mechanism for consistent and repeatable debt to equity exchanges and have deferred the need for any minimum monthly cash amortization payments until August 2024.
Speaker Change: Which provides the company with extended cash runway moving us another step closer to being funded until we are profitable and generating cash positive operations.
Speaker Change: Collectively the progress made to date in the second quarter is remarkable.
Second we completed multiple debt and other liability exchanges for equity transactions, resulting in a total decrease of liabilities and increase in shareholders equity of approximately $8 million.
Speaker Change: The path to reaching our balance sheet goals by the end of 2024.
Speaker Change: Finally, we continued pursuit of our lawsuit against Dorchester insurance company based on their failure to pay any amounts toward our claim of $9 million in actual damages for business interruption insurance.
Speaker Change: Significant components of this included approximately $2 7 million reduction.
Speaker Change: And the J G B senior secured credit facility and approximately $5 2 million reduction of the subordinated debt.
Speaker Change: With the latest hearing having occurred in federal court in Oregon in April 2024.
Speaker Change: With that we'll now open the call for questions from our analysts.
Speaker Change: As we continue to chip away at repayment of our outstanding debt obligations, we continued to sequentially lower cash interest payments and interest expense.
Speaker Change: Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the number one on your Touchtone phone.
Speaker Change: We now also have in place a mechanism for consistent and repeatable debt to equity exchanges and have deferred the need for any minimum monthly cash amortization payments until August 2024.
Speaker Change: You'll hear a prompt that your hand hasn't been raised.
Speaker Change #100: Should you wish to decline from the polling process. Please press star followed by the number too.
Collectively the progress made to date in the second quarter is remarkable.
Speaker Change #101: If you are using a speaker phone please lift the handset before pressing any keys.
Speaker Change: The path to reaching our balance sheet goals by the end of 2024.
Speaker Change: Finally, we continued pursuit of our lawsuit against Dorchester insurance company based on their failure to pay any amounts toward our claim of $90 million in actual damages for business interruption insurance.
Speaker Change #102: Again for questions. If you have any questions for the call. Please press star one on your telephone keypad.
Speaker Change #103: We have no questions at this time.
Speaker Change: With the latest hearing having occurred in federal court in Oregon in April 2024.
Speaker Change #104: We are.
Speaker Change #105: We're just now preparing the roster for the Q&A.
Speaker Change: With that we'll now open the call for questions from our analysts.
Yeah.
Speaker Change: Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the number one on your Touchtone phone.
Speaker Change #106: Hey, operator, if no further questions I can go ahead and close.
Speaker Change #106: Yes, since we have no further questions at this time I would now turn the call back to Larry Firestone for closing remarks.
Speaker Change: You will hear any prompted that youre, having has been raised should you wish to decline from the polling process. Please press star followed by the number two.
Larry Firestone: Thank you I would like to thank everyone for joining our call today in closing I will emphasize that even though we're only five months into this turnaround at 20 <unk> century, we have moved very quickly and put our company on track to becoming profitable for the first time in the company's history.
Speaker Change: If you are using a speaker phone please lift the handset before pressing entities.
Speaker Change: Again for questions. If you have any questions for the call. Please press star one on your telephone keypad.
Speaker Change #107: We have refocused operations slash costs reduce our cash usage and strengthen their balance sheet.
Speaker Change: We have no questions at this time.
Speaker Change #108: We know what to do to become profitable in the first quarter of 2025 and now it's time to execute.
Speaker Change: We were just preparing the roster for the Q&A.
Okay.
We will keep our lean operating mantra going forward.
And are now looking to add growth in the business to a recipe to meet our targets.
Hey, operator, if no further questions I can go ahead and close.
This will come as we expand the business on the CMO side, and the rebranding and growth in distribution for V O N.
Speaker Change: Yes, since we have no further questions at this time I would now turn the call back to Larry Firestone for closing remarks.
This is a long road, but we're well on our way.
Thank you I would like to thank everyone for joining our call today in closing I will emphasize that even though we're only five months into this turnaround.
Speaker Change #109: We look forward to updating you again as new developments occur and in August and.
Speaker Change #110: Our second quarter 2024 conference call.
Speaker Change: 20th century, we have moved very quickly and put our company on track to becoming profitable for the first time in the company's history.
Speaker Change #111: Lastly, I would like to thank our investors for continuing to support us with critical capital.
Speaker Change: We have refocused operations slash costs reduce our cash usage and strengthen their balance sheet.
Speaker Change #112: And our lenders who are participating in our debt reductions and most importantly, our employees who are committed.
Speaker Change: We know what to do to become profitable in the first quarter of 2025 and now it's time to execute.
Speaker Change #113: To the mission of driving 22nd century forward. These conclude our remarks.
Speaker Change: We will keep our lean operating mantra going forward.
Speaker Change #113: Okay.
Speaker Change #114: Ladies and gentlemen. This concludes today's conference call. Thank you very much for your participation you may now begin.
Speaker Change: And are now looking to add growth in the business to a recipe to meet our targets.
Speaker Change: This will come as we expand the business on the CMO side, and the rebranding and growth in distribution for V O N.
Speaker Change: This is a long road, but we're well on our way.
Speaker Change: We look forward to updating you again as new developments occur and in August.
Speaker Change: And our second quarter 2024 conference call.
Speaker Change: Lastly, I would like to thank our investors for continuing to support us with critical capital.
Speaker Change: And our lenders who are participating in our debt reductions and most importantly, our employees who are committed.
To the mission of driving 22nd century forward. These conclude our remarks.
Speaker Change: Okay.
Speaker Change: Ladies and gentlemen. This concludes today's conference call. Thank you very much for your participation you may now disconnect.
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Speaker Change: Yeah.
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