Q2 2024 Xcel Brands Inc Earnings Call
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Operator: Michael Kupinski, Walter Schenker, James Haran, Seth Burroughs, Aaron Warwick, Paul [inaudible] Thank you for standing by. I'd like to welcome everyone to the XELB's Q2 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.
Speaker Change: Thank you for standing by. I'd like to welcome everyone to the XELB's Q2 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.
Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star and the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Paul Kuntz. Please go ahead.
Speaker Change: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star and the number 1 on your telephone keypad.
Speaker Change: If you would like to withdraw your question, press star 1 again. Thank you. I would now like to try to call over to Paul Kuntz.
Paul Kuntz: Good afternoon, everyone, and thank you for joining us. Welcome to the Xcel Brands second quarter 2024 earnings call. We greatly appreciate your participation and interest. With us on the call today are Chairman and Chief Executive Officer Robert DeLoren, Chief Financial Officer Jim Haran, and EVP of Business Development and Treasury Seth Burroughs. By now, everyone should have had access to the earnings release for the quarter ended June 30th, 2024, which went out last evening.
Paul Kuntz: Please go ahead.
Paul Kuntz: And in addition, the company is filing with the Securities and Exchange Commission its quarterly report on Form 10 due today. The release and the quarterly report will be available on the company's website at www.xcelbrands.com. This call is being webcast, and a replay will be available on the company's investor relations website. Before we begin, please keep in mind that this call will contain forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from certain expectations discussed here today. These risk factors are explained in detail in the company's most recent annual report filed with the SEC.
Speaker Change: Good afternoon everyone and thank you for joining us. Welcome to the Xcel Brands second quarter of 2024 earnings call. We greatly appreciate your participation and interest. With us on the call today are Chairman and Chief Executive Officer Robert DeLoren, Chief Financial Officer Jim Haran, and EVP of Business Development and Treasury Seth Burroughs.
Speaker Change: Right now, everyone should have had access to the earnings release for the quarter ended June 30th, 2024, which went out last evening. And in addition, the company is filing with the Securities and Exchange Commission its quarterly report on Form 10 due today. The release and the quarterly report will be available on the company's website at www.excelbrands.com.
Speaker Change: This call is being webcast and a replay will be available on the company's investor relations website.
Paul Kuntz: Excel does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The dynamic nature of the current macroeconomic environment means that what is sent on this call could change materially at any time. Finally, please note that on today's call, management will refer to certain non-GAAP financial measures, including non-GAAP net income, non-GAAP diluted EPS, and adjusted EBITDA. Our management uses these non-GAAP metrics as measures of operating performance to assist in comparing performance from period to period on a consistent basis and to identify business trends related to the company's results of operations.
Speaker Change: Before we begin, please keep in mind that this call will contain forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from certain expectations discussed here today.
Speaker Change: These risk factors are explained in detail in the company's most recent annual report filed with the SEC. Xcel does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Speaker Change: The dynamic nature of the current macroeconomic environment means that what is sent on this call could change materially at any time.
Paul Kuntz: Our management believes these financial performance measurements are also useful because these measures adjust for certain costs and other events that management believes are not representative of our core business operating results, and thus they provide supplemental information to assist investors in evaluating the company's financial results. These non-GAAP measures should not be considered in isolation or as alternatives to net income, earnings per share, or other measures of financial performance calculated and presented in accordance with GAAP.
Speaker Change: Finally, please note that on today's call, management will refer to certain non-GAAP financial measures, including non-GAAP net income, non-GAAP diluted EPS, and adjusted EBITDA.
Speaker Change: Our management uses these non-GAAP metrics as measures of operating performance to assist in comparing performance from period to period on a consistent basis and to identify business trends relating to the company's results of operations.
Speaker Change: Our management believes these financial performance measurements are also useful because these measures adjust for certain costs and other events that management believes are not representative of our core business operating results and thus they provide supplemental information to assist investors in evaluating the company's financial results.
Speaker Change: These non-GAAP measures should not be considered in isolation or as alternatives to net income, earnings per share, or other measures.
Paul Kuntz: You may refer to the attachment to the company's earnings release or to Part 1, Item 2 of the Form 10-Q for reconciliation of non-GAAP measures. Now, I am pleased to introduce Robert DeLorean, Chairman and Chief Executive Officer. Bob, please go ahead.
Robert DeLorean: of financial performance calculated and presented in accordance with Gap. You may refer to the attachment to the company's earnings release or department one, item two of the form 10 to your correct affiliation of non-Gap measures. And now, I am pleased to introduce Robert DeLorean, chairman and chief executive officer. Bob, please go ahead.
Robert DeLoren: Thank you, Paul. Good morning, everyone, and thank you for joining us today. I'd like to start today's call with a brief update on our performance for the second quarter and our outlook for the remainder of the year. After that, our CFO, Jim Haran, will discuss our financial results in more detail. Before I cover the second quarter highlights, I would like to cover the sale and divestiture of the Lori Goldstein brand. For a variety of reasons, it was determined that it would be in the best interest of the company to sell the brand back to its namesake and allow us to focus on our growing brands and potential new opportunities. In doing so, we recognized a net gain of $3.8 million and reduced liabilities by $6 million.
Robert DeLorean: Thank you Paul. Good morning everyone and thank you for joining us today. I'd like to start today's call with a brief update on our performance for the second quarter and our outlook for the remainder of the year. After that our CFO Jim Haran will discuss our financial results in more detail.
Robert DeLorean: Before I cover the second quarter highlights, I would like to cover the sale and divestiture of the Lori Goldstein brand for a variety of reasons.
Robert DeLorean: It was determined that it would be in the best interest of the company to sell the brand back to its namesake.
Robert DeLorean: and allow us to focus on our growing brands and potential new opportunities. In doing so, we recognize a net gain of $3.8 million and reduced liabilities by $6 million. Turning to the second quarter...
Robert DeLoren: Turning to the second quarter, we made continued progress on executing our Project Fundamentals plan to transition fully to a core working capital licensing business, growing our top-line licensing revenues while also improving our bottom-line results for the quarter and going forward. Our net licensing revenues grew 16% year-over-year and 29% for the first quarter. While looking at our bottom line, our non-GAAP earnings for the quarter improved by approximately 85% from last year, and our adjusted EBITDA approach broke even during the second quarter.
Robert DeLorean: We made continued progress on executing our project fundamentals plan to transition fully to a core working capital licensing business.
Robert DeLorean: Growing our top line licensing revenues while also improving our bottom line results.
Robert DeLorean: for the quarter and going forward. Our net licensing revenues grew 16% year over a year and 29% to the first quarter while looking at our bottom line, our non-gap earnings for the quarter improved by approximately 85% from last year, and our adjusted EBITDA approach break even during the second quarter.
Robert DeLoren: As we continue to gain traction and accelerate growth in future quarters, we expect our licensing revenues to continue to grow and our bottom-line operating results to continue to improve. Based on all of our progress with Project Fundamentals, our strategic plan to get back to what made us successful in our core business over the years and the organic growth in our brands, we expect to grow strongly going forward. The C. Wonder brand is performing well on HSN, with second quarter sales exceeding HSN's plan by 6%.
Robert DeLorean: As we continue to gain traction and accelerate growth in future quarters, we expect our licensing revenues to continue to grow and our bottom-line operating results to continue to improve. Based on all of our progress with Project Fundamentals,
Robert DeLorean: Our strategic plan to get
Robert DeLorean: Back to what made us successful in our core business over the years and the organic growth in our brand. We expect to grow strongly going forward.
Robert DeLoren: The second half of 2024 is planned to be up from the first half with expectations of achieving an excess of a 60% year-over-year growth rate. We expect to see retail sales volumes continue to grow strongly beyond 2024 on HSN and at other retailers. We are on track to launch additional new categories of footwear and handbags in the spring of 2025. Our new brand, Tower Hill by Christie Brinkley, launched on HSN during the second quarter, exceeding its plan by 40%.
Speaker Change: The C-1-brand is performing well on HSN with second quarter sales exceeding HSN's plan by 6%. The second half of 2024 is planned up from the first half with expectations of achieving an excess of a 60% Euro-beyear growth rate.
Speaker Change: We expect to see retail sales volumes continue to grow strongly beyond 2024 on HSN and at other retailers.
Speaker Change: We are on track to launch additional new categories of footwear and handbags in spring of 2025. Our new brand, Tower Hill by Christie Brinkley, launched on HSN during the second quarter, exceeding plan by 40%. Additional airtime has been scheduled for the remainder of the year with significant growth planned for 2025.
Robert DeLoren: Additional airtime has been scheduled for the remainder of the year with significant growth planned for 2025. Additionally, the brand will introduce additional categories of products outside of HSN starting in the spring of 2025. In addition, we have received strong interest from potential licensing partners for the brand across multiple categories, including footwear, bags, beauty, and skin care. One last note on HSN; we expect to announce the launch of another celebrity designer brand on HSN before the end of this year and another food and kitchen products brand in Q1 of 2025. Looking at our Judith Rooker business, second quarter royalties increased from the first quarter by 45%.
Speaker Change: Separately, the brand will introduce additional categories of products outside of HSN starting in spring of 2025. In addition, we have received strong interest from potential licensing partners for the brand across multiple categories, including footwear, bags, beauty, and skin care.
Speaker Change: One last note on HSN, we expect to announce...
Speaker Change: The launch of another celebrity designer brand on HSN before the end of this year, and another food and kitchen products brand in Q1 of 2025.
Speaker Change: Looking at our Judith Rooker business, second quarter royalties increased from first quarter by 45%. This is the result of greater product assortments.
Robert DeLoren: This is the result of greater product assortments. We look forward to seeing strong sales momentum carry forward throughout 2024 and 2025. As previously discussed, G3 launched Halston Apparel this fall.
Speaker Change: We look forward to seeing strong sales momentum carry forward throughout 2024 and 2025.
Speaker Change: As previously discussed, G3 launched a wholesome apparel this fall in addition to expect to begin chipping footwear and bags later this year for spring 2025.
Robert DeLoren: In addition, they expect to begin shipping footwear and bags later this year for spring 2025. We expect revenues from this license to begin to pick up later this year and grow strongly in 2025 and beyond. As previously mentioned, Orme Soft launched its video and social commerce marketplace during the second quarter.
Speaker Change: We expect revenues from this license to begin to pick up later this year and grow strongly in 2025 and beyond.
Speaker Change: As previously mentioned, ORMI soft-launched its video and social commerce marketplace during the second quarter. For Accel, ORMI represents a natural extension of our expertise in video commerce over television.
Robert DeLoren: For Xcel, Orme represents a natural extension of our expertise in video commerce over television. The Orme team is doing a great job building awareness for the app and onboarding premier brands. They are pleased with the results to date. We believe this marketplace has the potential to transform video and social commerce in the U.S., and it will achieve its goal to democratize the influencer and creator economy. We are very excited by the potential of ORMI. Now, I'd like to turn the call over to Jim to discuss our financial results. Thanks Bob and good morning everyone.
Speaker Change: The Army team is doing a great job building awareness for the app and onboarding premier brand. They are pleased with the results today. We believe this marketplace has the potential to transform video and social commerce in the US and it will achieve its goal to democratize the influencer and create a economy.
Speaker Change: We are very excited by the potential of ORMI. And now, I'd like to turn the call over to Jim to discuss our financial results. Jim?
Jim Haran: I will now briefly discuss our final results for the quarter and six months ended June 30, 2024. Total revenue for the second quarter of 2024 was $30 million, representing a decrease of approximately $3.8 million from the second quarter of 2023. This decline is driven by the decrease in net cruxials to effectively zero due to an exit from both those cells, operating businesses as part of our project from the mental. The only past sales during the current quarter were approximately $100,000 related to the final sale of some residual jewelry inventory, which has now been fully liquidated.
Speaker Change: Craig Brelsford, and Good Morning everyone.
Jim Haran: I will now briefly discuss our final results for the quarter and six months ended June 30, 2024.
Craig Brelsford: Total revenue for the second quarter of 2022 was $39,000,000, representing a decrease of approximately $3.8 million from the second quarter of 2023.
Speaker Change: This is why it was driven by the decrease in net profit sales to effectively zero due to that exit from both wholesale operating businesses as part of our project from the Mentor's Plan that began in 2020.
Speaker Change: The only past sales during the current quarter were approximately $100,000 related to the final sale of some residual jewelry inventory, which have now been fully liquidated.
Jim Haran: Possibly offsetting the year-over-year decrease in net product sales was an increase of approximately 0.4 million, or approximately 16 percent, in net licensing revenue, mainly attributable to the combination of the Halston Master License with G3 Apparel, significantly increased revenues generated by the C. Wunder business on HSN, and the launch of Tower Hill by Christie Brinkley in May 2024. On a year-to-date basis, revenue for the current six months decreased by approximately 7.7 million to 5.1 million, again driven by net product sales to effectively zero following the discontinuance of our wholesale operations.
Speaker Change: Possibly offsetting the year-over-year decrease in net product sales was an increase of approximately 0.4 million, or approximately 16 percent, in net licensing revenue, mainly attributable to the combination of the Halston Master License with G3 Apparel.
Speaker Change: Specifically, increased record was generated by the C-1 division on HSN and the launch of power alerted by Christine Brinkley in May 2020.
Speaker Change: On a year-to-date basis, we're ever due to the current six months decreased by approximately 7.7 million to 5.1 million. Again, driven by net product sales to affect the zero following the contingents of our host operations.
Jim Haran: The decrease in net product sales was partially offset by an increase of.4 million or 8% in net licensing revenue due to the combination of new licensing agreements and brand launches previously mentioned. Our direct operating costs and expenses were $3.1 million for the current quarter, down by 2.1 million or 40% from 5.2 million in the prior quarter.
Speaker Change: The decreases that process is possible upset by an increase of 0.4 million or 8% in that license you're having due to the combination of new licensing agreements and brand launches previously mentioned.
Speaker Change: Our direct operating costs and expenses were $3.1 million for the current quarter, down by $2.1 million, or 40% from $5.2 million in the prior quarter.
Jim Haran: On a year-to-date basis, direct operating costs and expenses decreased from $12.1 million for the prior year quarter to $7.1 million for the current quarter, representing a decline of approximately $5 million, or 22%. These deep reasons for both the quarterly and year-to-date comparisons are attributable to the ticked continuance of host-up visits and the prior year, which included reductions in staffing levels, as well as related reductions in other With the project's fundamental mission substantially completed, going forward, we expect our average direct operating costs to be approximately $2.5 million per quarter.
Speaker Change: On a year-to-date basis, the direct operating costs and expenses decreased from $12.1 million for the prior year quarter to $7.1 million for the current quarter, representing a decline of approximately $5 million, or 22 percent.
Speaker Change: These decreases for both the quarterly and year-to-date comparative periods were attributable to the discontinuance of wholesale business in the prior year, which included reductions in staffing levels as well as related reductions in other overhead costs.
Speaker Change: With the project on the Mental Initiative's substantial completed, going forward with the expect our average direct operating costs to be approximately 2.5 million per quarter.
Jim Haran: Aside from direct operating costs and expenses, our operating results for 2024 notably included a $3.8 million gain on the divestiture of the Lori Goldstein brand, as well as asset impairment charges of $1.2 million and $3.5 million for the current quarter and current six months, respectively. We sold the Louis Goldstein brand on June 30, 2024, in exchange for approximately $6.1 million of non-cash proceeds, including relief from certain R&L payments and release of contingent obligations under contractual agreements with the buyer, and recognized a gain on the sale of $3.8 million, and lowered our balance sheet liabilities by $6 million. The aforementioned impairment charges, recognized in the first and second quarters of this year, were all related to the exit from and sublease of our prior office space.
Speaker Change: A science and direct athlete course experiences the operating results in 2012, notably included a 3.8 million dollar gain on the best show of the lowly gold scene brand as well as asset and payment charges of 1.2 million and 2.5 million for the current quarter and currently 6 months respectively.
Speaker Change: We saw some of what we've also been going on June 3, 2012 and exchange for approximately 6.1 billion abnormal cash proceeds.
Speaker Change: including relief from certain earner payments.
Speaker Change: and release of contingent obligations under contractual agreements with the Barrett and recognising that getting on the cell frequently annoying and going out down to my voice for six million dollars.
Speaker Change: The aforementioned Perry Charles was recognized in the first, except for one of his years, but all we needed to be as is from, and some of his other prior work space.
Jim Haran: Overall, we have net income per second quarter of $2.24, across $0.2 million or $1 cents per share compared with a net loss of $3.5 million or minus $0.18 cents per share in the current year quarter. On a non-GAAP basis, we have a net loss for the current quarter of $0.3 million, or minus $0.01 per share, which represents an 85% improvement from the non-GAAP net loss of $2.1 million, or minus $0.10 per share, in the second quarter of 2023.
Speaker Change: Overall, we had net income for the second quarter of 2024 of approximately $0.2 million or $0.01 per share compared with a net loss of $3.5 million or minus $0.18 per share in the prior quarter.
Speaker Change: On a non-GAAP basis, we have a net loss for the current quarter of $0.3 million or $0.01 per share, which represents an 85% improvement from the non-GAAP net loss of $2.1 million or $0.10 per share in the second quarter of 2023.
Jim Haran: Finally, Adjusted EBITDA was negative $40,000 or approaching break-even for the current quarter, representing a year-over-year improvement of approximately $1.3 million or over 95% from the negative $1.3 million of Adjusted EBITDA in the prior year quarter. With new cross-structural employees and projected revenue growth, Now that we have right-sized that core structure, our non-gap measurement should continue to improve in future periods as licensing revenues are On an end-of-day basis, we had a net loss exclusion on petroleum interest for the current six months of approximately 6.1 million dollars, but minus 28 cents per share compared with a net loss of $1.1 million, but minus 46 cents per share in the previous months.
Craig Brelsford: Boy, Craig
Craig Brelsford: But just even though it was negative $20,000 or approaching great leaders to the turn of glory, representing a year over a year improvement of approximately $1.3 million for over 95% from the negative $1.3 million of the just even though in the prior quarter.
Craig Brelsford: With a new course of virtual exploration and project and projected revenue growth, management and dissipation seems to be puzzle, or even us, and as I said earlier.
Speaker Change: Now that we have right-sized our core structure, our non-gap measurement should continue to improve in future periods as licensing revenues are projected to grow.
Speaker Change: On the other day, we had a debt loss excluding non-controllant interest for the current six months of the process of the 6.1 million dollars for minus 28 cents per share compared to the debt loss of 9.1 million dollars for minus 40 cents per share.
Jim Haran: On a non-GAAP basis, we had a net loss for the current six months of $2.1 million, or minus 10 cents per share, which represents an approximately 60% improvement from the non-GAAP net loss of $5.6 million, or minus 28 cents per share, in the prior year's six months.
Speaker Change: in the four years and six months.
Speaker Change: On a non-GAAP basis, we had a net loss for the current six months of $2.1 million, or minus 10 cents per share, which represents an approximately 60% improvement from the non-GAAP net loss of $5.6 million.
Speaker Change: will minus twenty-eight cents per share in a prior year's month.
Jim Haran: Adjusted EBITDA on a year-to-date basis was negative $1.6 million, representing a year-over-year improvement of approximately 50 percent from the negative $3.3 million of adjusted EBITDA in the prior year comparable period. Once again, I would like to take this opportunity to remind everyone that non-GAAP minimum income, non-GAAP diluted EPS, and adjusted EBITDA are non-GAAP undefined terms. Our early press release on Form 10-Q presented reconciliations of these items with the most directly comparable gap measures.
Speaker Change: Adjusted EBITDA on a year-to-date basis was negative $1.6 million, representing a year-over-year improvement of approximately 50% from the negative $3.3 million of adjusted EBITDA in the prior year in parallel period.
Speaker Change: Once again, I would like to take this opportunity to remind everyone, the non-gapterism, non-gapterlooms EPS and adjusts EPS on non-gapterlooms terms.
Speaker Change: We're in the press release and we'll tend to present the reconciliation we've done with the most directly comparable gap measures.
Jim Haran: Now, turning to our balance sheet and liquidity, as of June 30, 2024, the company had total cash and cash equivalents of approximately $1.7 million, of which $0.7 million was restricted. Our net working capital, excluding the current portion of lease obligations and deferred revenue, was approximately $1.1 million, which we believe is adequate and appropriate under our current licensing plus working capital light business model. Since executing our project fundamental plan, our cash usage has decreased significantly and is projected to continue to improve with the launch of Paulson, our G3, this fall and continued growth in our other brands. And with that, I'd like to turn the call back over to Bob. Bob?
Speaker Change: Now, turning to our balance sheet and liquidity, as of June 30, 2024, the company had total cash and cash equivalents of approximately $1.7 million, of which $0.7 million was restricted.
Speaker Change: Our next important factor, excluding the current portion of lease obligations and the further evidence was approximately 1.1 million, which we believe is adequate and appropriate under a current licensed and plus, working with capital like this model.
Speaker Change: Since executing our Project Fundamentals plan, our cash usage has decreased significantly and is projected to continue to improve with the launch of Qualsum, a G3, this fall, and continued growth in our other brands.
Speaker Change: and with that I'd like to turn the cool back on to the bottom, Bob.
Robert DeLoren: Thank you, Jim. This concludes our prepared remarks. Operator.
Bob: Thank you, Jim. This concludes our prepared remarks. Operator.
Operator: Thank you. As a reminder, if you'd like to ask a question, press star and the number 1 on your telephone keypad. We will begin the question and answer session. And your first question comes from the line of Michael Kupinski from Noble Capital. The line's open. Thank you so much. Good morning.
Operator: Thank you.
Speaker Change: As a reminder, if you'd like to ask a question, press star and the number 1 on your telephone keypad.
Speaker Change: We will begin the question and answer session.
Speaker Change: And your first question comes from the line of Michael Kapinski from Noble Capital.
Michael Kupinski: Congratulations on achieving expectations and delivering on your transformation. A couple of things. Yeah, it's a good job.
Speaker Change: The line's open.
Michael Kapinski: Thank you so much. Good morning. Congratulations on new achieving expectations and delivering on your transformation.
Michael Kupinski: A couple of things. Can you give me a sense of how well the Christy Brinkley brand of Power Hill is performing heading into Q3? And in Q3, are you anticipating that there will be some licensing revenue from Halston? And I just have a couple of other additional questions.
Speaker Change: A couple of things.
Michael Kapinski: Yeah, it's a good job. A couple of things. Can you give me a sense of how well the Christy Brinkley brand power Hills performing heading into Q3?
Speaker Change: In Q3, are you anticipating that there will be some licensing revenue from Paul's den and I just have a couple of other additional questions.
Robert DeLoren: Sure. Tower Hill exceeded its plan on the launch, Michael, by 40%. And we had contractual minimums there. The actual forecast for the year is twice the amount.
Speaker Change: Sure, Tower Hill exceeded plan on the launch by 44% and we had contractual minimums there. The actual floor task for the year is twice the minimums.
Robert DeLoren: And we anticipate going into 25, we'll double the business from where we are this year. We're having great traction with Christie outside of HSN as well. There are a lot of significant retailers, very interested in what we're doing with Christie and Christie's Potential, not only in apparel but in home and other categories. We're excited. Thank you, prospects. And then, in terms of licensing revenue from Halston, are you anticipating, you know, licensing revenue in the third quarter from Halston or G3?
Speaker Change: and we anticipate going into 25, we'll double the business firm.
Speaker Change: where we are this year. We're having great traction with Christie outside of HSN as well. There are a lot of significant retailers very interested in what we're doing with Christie and Christie's potential, not only in apparel but in home and other categories. So we're excited about the prospects with Christie.
Speaker Change: And then in terms of licensing revenue from Halston, are you anticipating, you know, licensing revenue in the third quarter from Halston, or G3?
Robert DeLoren: Well, just as a reminder, there are minimum guaranteed royalties under that license. So we expect, depending upon whether or not they ship shoes and bags this year, if they should, to get in for spring. There's a potential for... I'm just coming up over those men [inaudible] and that we expect, as G3 Luke Spowler, an increasing world from all activities with G3, including all the third-party licenses, are currently in place for the... And Bob, can you kind of give us a sense of what products are being rolled out on the Halston brand or in the timeline that you're anticipating at this point? So it's a parallel across multiple categories and classifications, which is typical of what B3 does. That's what we would expect would happen.
Speaker Change: Well, just as a reminder, there are minimum guaranteed royalties under that license. So we expect, depending on...
Speaker Change: Whether or not they ship shoes and bags this year, they should get in for sparring. There's a potential of just coming up over those minimums and that we expect.
Speaker Change: You know, as G3 moves forward, the increase in the world is from all activities with G3, including all the third party licenses that are currently in place for the brand.
Speaker Change: And Bob, can you give us a sense of what products are being rolled out on the Holston brand or in the timeline that you're anticipating at this point?
Bob: So, it's apparel across multiple categories and classifications, which is typical of what G3 does, that's what we would expect would happen, and then they went to market with
Robert DeLoren: And then they went to market with handbags and shoes during August, and we don't know the results yet have that market plan for them. We'll get that later in the quarter. Those are the core drivers of licensing, and then there are multiple categories with third-party licensing, including the Halston premium, that is distributed in the best position to retail and we think will be able to draw us closer. We wish you every success.
Speaker Change: and their handbags and shoes during August. And we don't know the results of how that market went for them. We'll get that later in the quarter.
Speaker Change: Those are the core drivers of licensing and then there are multiple categories with third party licensees, including the Halston Premium line.
Speaker Change: that is distributed in best position to retailers that we think will be able to draft off of G3's success.
Robert DeLoren: And at this point, you know, since we're halfway through the quarter, can you give us a sense of whether or not you believe that you will see year-over-year increases in licensing revenue in the third quarter? Yes, we're on a steady ramp-up with all the brands, have entered into all of the licenses with these significant players like G3, Jewelry TV, and Premier Brands with one jeans wear group and launched new brands on HSN. We're just getting started with these businesses, and they're all off to a great start.
Speaker Change: and this point, you know, since we're halfway in the quarter, can you give this a sense of whether or not you believe that you will see a year over year increases in licensing revenue in the third quarter?
Speaker Change: Thank you. Bye.
Speaker Change: Yes, we're on a steady ramp up with all the brands.
Speaker Change: We entered into all the licenses with these
Speaker Change: Significant players like G-3 and G-3 TV and Premier of France with one James Werker and launch the new brands on HSN and we're just getting started with these businesses and they're all off to a great start.
Robert DeLoren: And then on the designer that you plan to announce in the fourth quarter, can you kind of give us a sense of whether that will be on HSN or will it be other retail partners and things like that, if you can give us a sense of that? And then I assume that there will be some costs associated with launching that brand. If you can kind of give us a sense of what you're anticipating,
Speaker Change: And then on the...
Speaker Change: Designer that you've planned to announce in the fourth quarter to be kind of give us a sense of, well, that be on HSN, or we'll, whether we could be other retail partners and things like that, if you can give us a sense of that, and then I assume that there will be some cost associated with launching that brand if you can kind of give us a sense of what you're anticipating at this point.
Robert DeLoren: So that brand will launch initially on HSN, and there was a... a very high startup cost on that one because of the way we've structured the deal. But that said... We've already, you know, product has been ordered, all the product development is done, that's one, and whatever costs we had have already been expensed. We do believe that the brand that we plan to launch for kitchen and food products in Q1 has tremendous potential both on HSN and outside of HSN. The celebrity chef that we are doing this with has close to 5 million TikTok followers. She has tremendous followers.
Speaker Change: So that brand will launch.
Speaker Change: Josh Arne just and initially and there was him.
Speaker Change: I'm very much start-up cost on that one because of the way we structure the deal and that's it.
Speaker Change: We've already, you know, product has been ordered, all the product development is done, that's launching, and whatever cost we had has already been expensed. We do believe that the brand that we plan to launch for
Speaker Change: kitchen and food products.
Speaker Change: in Q1 has tremendous potential both on HSN and outside of HSN.
Speaker Change: That celebrity chef that we are doing this with has close to 5 million TikTok followers. She has a tremendous following.
Robert DeLoren: Gotcha. That sounds very exciting. Can you give us a sense of what the Isaac Mizrahi brand is doing at this point and what your expectations are for that brand going forward? So I think it is on plan for what was forecasted for the year. You know, that said, it's down from last year. And part of that relates to a reduction of zero in Isaac's remote shows.
Speaker Change: Gotcha, that sounds very exciting. Can you give us a sense of what the Isaac Mizrahi brand is doing at this point? What your expectations are for that brand going forward?
Speaker Change: So I think is on plan for what was forecasted for the year, that said it's down from what's your part of that relates to...
Speaker Change: or reduction or
Robert DeLoren: QVC coming out of COVID changed its position on remote shows and has mandated that all talent return to studio. We are working on bringing in another backup guest for Isaac to make up for that actual in-studio time that we've lost because of the elimination of remote shows. Gotcha. That's all I have.
Speaker Change: to zero in Isaac's remote shows. QVC, coming out of COVID, changed its position on remote shows and has mandated that...
Speaker Change: that all talent return to studio. So, we are working on bringing in another backup guest for Isaac to make up for that.
Speaker Change: Actual Institute of Time, though we've lost because of the elimination of remote shows.
Michael Kupinski: Thank you and congratulations on your turnaround year. Thank you, Michael. Thank you. Our next question comes from the line of Anthony Lebiedzinski from Sudoti. The line's open. Good morning.
God Chef: God Chef, that's all I have, thank you and congratulations on your turnaround here.
God Chef: Thank you.
Speaker Change: Our next question comes from the line of Anthony LeBredzinski, from Sudote
Anthony Lebiedzinski: Yeah, good morning. Thank you for taking the questions and, yeah, nice to see the improved performance. So, now that you have divested Lori Goldstein, you know, how should we think about the overall state of the brand portfolio? Are you happy with where those brands are? I think you talked about all of them except for Langeberger, but I guess, you know, in terms of just looking out, which brands are you most excited about, Bob, as far as growth opportunities go forward?
Speaker Change: Good morning. Good morning. Thank you for taking a quick. Good morning. Thank you for taking the questions and yeah, nice to see you improve the performance. So, so not a you divested Laurie Goldstein.
Anthony LeBredzinski: How should we think about the brand portfolio? Are you happy with where those brands are? I think you talked about all of them except for Lange Berger.
Bob: In terms of just looking out, which brands are you most excited about, Bob, as far as growth opportunities going forward?
Anthony Lebiedzinski: So I think Sea Wonder has tremendous growth potential, as does Christy Brinkley, and we are focused there. We think Isaac is a good opportunity, assuming that we can get the right backup guest to help with some of the time we've lost to the remote shows.
Speaker Change: So, I think C. Wander has tremendous growth potential as Chris Deepen, frankly.
Speaker Change: and we'll focus there. We think Isaac is a good opportunity assuming that we can get right back up guests.
Speaker Change: and to help with some of the time we've lost to the remote shows.
Robert DeLoren: Langeberger is doing well; it is now an e-commerce only business. We have onboarded it onto Ormi, and we are now re-engaging with all of the former Langeberger sellers. So we... We're excited about the potential of Langeberger.
Speaker Change: Younger Berger is doing well. It is now an e-commerce only business. We have onboarded kit onto for me and we are now re-engaging with all of the former Younger Berger sellers. So, we are excited about the potential Younger Berger. We also think they are licensing on the way Younger Berger is. We are continuing to look for...
Robert DeLoren: We also think there are licensing opportunities for us with Langeberger, and we are continuing to look for new brands and new opportunities across our portfolio that we think can grow core business and add value. The kinds of brands that we're seeking today for the portfolio that will do well in traditional distribution, linear TV distribution, as well as distribution through streaming platforms, including, of course. Gotcha. Okay. And then actually, as far as ORMI, can you guys maybe just touch base as far as the number of downloads for the app, and are you actually seeing sales coming through that? Maybe if you could just give us some more details about what you've seen so far with ORMI.
Speaker Change: New brands, new opportunities across our portfolio that we think can grow core business and add
Speaker Change: The kinds of brands that we're seeking today for the portfolio that will do well in traditional distribution, linear TV distribution, as well as distribution through streaming platforms and including, of course, Orme.
Speaker Change: And then actually as far as Army, can you guys maybe just touch basis for what's been, you know, the number of downloads for the app and are you actually seeing, you know, sales coming through that, maybe if you could just give us some more details about what you've seen so far with Army.
Anthony Lebiedzinski: Sure, as you know, we are a 30% owner of ORMI. I can give you what the ORMI team has reported to us. First, the thing that I think we all need to know about ORMI and what it's doing is... There has been very dramatic activity in this new market with the recent announcement of the Alliance and Amazon. This is a production of the Center for Autonomous Vehicles, in partnership with the Center for Autonomous Vehicles, Inc. The implications of social commerce have become very, very far-reaching with this alliance. There are only three marketplaces for children's video and social commerce, and those are TikTok, B.
Speaker Change: Sure, as you know, we are 30% owner of ORMI. I can give you what the ORMI team has reported to us.
Speaker Change: First, the thing that I think we all need to know about warming and what it's doing is
Speaker Change: There has been very dramatic activity in this new market with the recent announcement of the alliance.
Speaker Change: Between TikTok and Amazon
Speaker Change: The implications of social commerce have become very, very far-reaching with this alliance.
Speaker Change: There are only three
Speaker Change: marketplaces for short-form video and social commerce.
Speaker Change: and those are TikTok, Flip and Ormi today. And the difference in Ormi and perhaps TikTok and Flip is Ormi is focused on better brands with higher average order values than both of those platforms. So that's the...
Robert DeLoren: Day, and the difference. [inaudible] Orme and, perhaps, TikTok and Flip. Orme is focused on better brands with higher average order values than both of those platforms. So that's the..., the segment of the market that we're focused on. Orme began implementing its apt distribution strategies on July 23rd. In less than three weeks, the team generated 20,000 downloads, and we've been very selective on the platform about the times of the brands that are going to be present on the only platform. So, very, very high standards for selection.
Speaker Change: and the second of the market that we're focused on.
Speaker Change: or me began implementing its app distribution strategies on July 23rd in less than three weeks that team generated 20,000 downloads.
Anthony Lebiedzinski: There are 13 major brands on the site today, and they are continuing to ramp up the platform, both from the user perspective and onboarding brands. Got you. Okay. Thanks for that color.
Speaker Change: and we've been very selective on the platform about the kinds of brands.
Speaker Change: that are going to be present on the OMRI platform. So, very, very high standards on selection value. There are 13 major brands.
Speaker Change: on the site to date and if they are continuing to ramp up the platform both from the user perspective and onboarding brands.
Anthony Lebiedzinski: That's definitely very helpful, and then just thinking about the profitability going forward here. So, obviously, you're happy with the brand's trajectory. Both Sea Wonder and Christie Brinkley and Halston should be coming out in the fall as well.
Speaker Change: Got you, okay, thanks for that color that's definitely very helpful, and then just thinking about the...
Speaker Change: Profitability going forward here. So you obviously, you know, you're happy with the brand's trajectory you know both see wonder and Christie Brinkley and Halston should be coming up in the fall as well. So and you've right sized the cost structure there. So
Anthony Lebiedzinski: And you've right-sized the cost structure there. So, do you think you could be consistently earnings positive here going forward every quarter? Or is that just earnings or EBITDA?
Speaker Change: So you think you could be consistently, you know, earnings positive here going forward every quarter? And is that just, you know, earnings or just EBITDA? If you could just kind of maybe help us out with that.
Robert DeLoren: If you could just kind of maybe help us out with that, I think for the rest of the year, the worst case will be break-even, the best case will be EBITDA positive, heading into 25 with all brands, including Halston, ramping up. That's how we do it.
Speaker Change: I think for the rest of the year, worst case will be break even, best case will be either deposited, heading into 25 with
Speaker Change: All brands, including Halston, ramping up. That's how we see the balance of the year. We just don't have enough visibility into exactly what the Halston brand will do for the balance of the year.
Robert DeLoren: We just don't have enough visibility into exactly what the Halston brand will do for the balance of the year. Gotcha, okay. So in terms of, you know, just to follow up as far as Halston, so the timing of that, I know it's out of your hands, but as far as, what's the latest that you think you'll start to see revenue coming from the Holston brand? Well, there is revenue coming from it now. There are contractual minimums.
Speaker Change: Gotcha, okay. So in terms of, just to follow up as far as Halston, so is the timing of that,
Speaker Change: I know it's out of your hands but as far as what's the latest that you think you'll start to see I guess
Speaker Change: revenue coming from that Holston brand.
Speaker Change: Well, there is revenue coming from it now. There are contractual minimums. Right, right, okay. We expect the ramp to really begin next year. It's a little...
Anthony Lebiedzinski: Right, right. Okay. We expect the ramp to really begin next year. It's a little..., delayed in terms of what we had initially anticipated.
Speaker Change: Delayed, in terms of what we haven't initially anticipated, but we think that...
Robert DeLoren: But, on the right track, and we'll move forward nicely going into next year. Gotcha, but you have some other well-performing brands that seem like they're offsetting some of that delay. Is that fair to say?
Speaker Change: It's on the right track and we'll move forward nicely going into the next year.
Speaker Change: Gotcha, but you have some other well-performing brands that are seem like they're all setting some of that delay. Is that fair to say? Yeah, everything is up.
Anthony Lebiedzinski: Yes, exactly. Everything is up and running nicely, particularly all the things we're doing on the internet. Gotcha. All right. Well, thank you very much and best of luck.
Speaker Change: and moving nicely, particularly all the things we're doing on HSF.
Anthony Lebiedzinski: Thank you, Anthony. Thank you. Our next question comes from the line of Aaron Warwick from Breakout Investors. The line's open.
Speaker Change: Gotcha. All right, well thank you very much and best of luck.
Speaker Change: Thank you, Anthony.
Speaker Change: Thank you. Our next question comes from the line of Aaron Warwick from Breakout Investors.
Aaron Warwick: Hey guys, thanks for taking the call. Congratulations on getting the business on the right track. I just had a question on the compensation agreements for yourself, Bob, and Seth that were recently modified, where you're getting 40% of your base compensation in stock instead of cash. I just wanted to know some of the reasoning behind that.
Speaker Change: The line's open
Aaron Warwick: Hey guys, thanks for taking the call. Congratulations getting the business on the right track. I just had a question on the compensation agreements for yourself Bob and set that we're recently modified.
Speaker Change: Where you're getting 40% of your base compensation and stock, instead of cash, just wanted to know, you know, some of the reasoning behind that is, is it more to do with preserving cash or thinking that your share price is quite undervalued, given a prospects going forward if you could comment on that.
Robert DeLoren: Is it more to do with preserving cash or thinking that your share price is quite undervalued given the prospects going forward? If you could comment on that. First and foremost, we think the share price is undervalued, both from the perspective of the relative value of our brand, saying that the value of the Brands for... Carter MarketCat, it would come. Also, assuming that we stay on track with the growth in our royalty revenues, we are trading well below what we believe our potential earnings are going forward.
Speaker Change: I have a first and foremost we think the share price is under value, both from the perspective of relative value of our brand.
Speaker Change: We think that the value of the brands far exceeds the current market cap of the company.
Speaker Change: Also, if assuming that we stay on track with the growth and our royalty revenues
Speaker Change: and we are trading well below what we believe our potential earnings are going forward into next year.
Robert DeLoren: And then lastly, it is prudent. Seth and I are in a position where we can do something like this. And to the extent that we can preserve cash, we think that's a smart thing to do, just given the state of world affairs.
Speaker Change: and then lastly, it is, I think, for me.
South: It was South and I are in a position where we can do something like this and to the extent that we can preserve the cash we think that's a smart thing to do. Just given the state of the world affairs.
Aaron Warwick: Great, okay, thank you. One final thing, I guess, is Ormi. What's the current expectation? You mentioned the soft launch, and there's something about July 23rd where they really started to roll it out a little bit more.
South: Mm-hmm.
Ormi: Thank you. One final thing I guess is Ormi, what's the current expectation? You mentioned the soft launch and they're...
Robert DeLoren: And what's kind of the plan for, timeline for the full commercialization, and when they're really gonna try to promote it to the masses? So ORMI is going to do its own capital raise. The technology is fully funded and built and launched, and they are proving all of their business metrics, and I would expect that... and they are funded. And they will then really drive the business to its expectations, full expectations, and potential. Any sort of estimate on when they would plan to do that race? Their plan is to try to do it before you.
Speaker Change: Something about July 23rd, where we really started to roll it out a little bit more. What's the plan for timeline for the full commercialization and when they're really going to try to promote it to the masses?
Speaker Change: So, Laura is going to do its own capital race, the technology is fully funded and built and launched and they are proving all of their business metrics.
Speaker Change: and will do their own race, and I would expect that when they are funded, they will then really drive the business to its expectations, its full potential.
Speaker Change: Any sort of estimate on when they would plan to do that race?
Speaker Change: Their plan is to try to do it before year end.
Aaron Warwick: Okay, good. Thank you. Appreciate your time, guys. Thank you. Thank you. Our next question comes from the line of Howard Brous from Wellington Shields.
Speaker Change: Okay, good. Thank you. Appreciate your time, guys.
Speaker Change: Thank you. Our next question comes from the line of Howard Bruce from Wellington Shields.
Howard Brous: The line's open. Thank you. Bob, congratulations on the turn. I can anticipate it and thank you and thank everyone else who's responsible for it. I have a couple of questions. I want to pin you down, if it's at all possible.
Speaker Change: The line is open.
Howard Bruce: Thank you Bob Congratulations on the turn
Howard Bruce: I can anticipate it, and thank you, and thank everyone else who's responsible for it. I have a couple of questions.
Howard Brous: You've got a couple of research reports that have recommended the company. I'd like you to comment on how comfortable you are with the numbers for next year. I'm not asking you to tell me that within a penny or two, but are you comfortable with those numbers?
Howard Bruce: I want to pin you down if it's at all possible. You've got a couple of research reports that have recommended the company. I'd like you to comment on how comfortable you are on the numbers for next year.
Speaker Change: I'm not asking you to tell me that you know within a penny or two, but are you comfortable with those numbers? That's the first question
Robert DeLoren: That's the first question. So, Howard, you know, assuming... Everything continues to grow the way it has been growing across all of our businesses, and G3 really begins the ramp that we believe is reasonable, just given where they are. We're comfortable with those numbers, and certainly I don't think today's..., stock price accurately reflects the potential of the company going forward because I bluntly haven't found many companies that are selling at three times free cash flow or two times EBITDA. And that's basically what you're trading at. So I am... I'm telling you that you've got to be pretty comfortable with those numbers.
Speaker Change: So, Howard, you know, assuming...
Howard Bruce: Everything continues to grow the way it has been growing across all of our businesses and G3 really.
Howard Bruce: begins the ramp that we believe is reasonable, just given where they are. We're comfortable with those numbers, and certainly, I don't think...
Howard Bruce: Today's stock price.
Speaker Change: accurately reflects the potential of the company going into next year.
Speaker Change: [inaudible]
Speaker Change: because I've bluntly haven't found many companies selling at three times free cash, low or two times even da, and that's basically what you're trading at, so I am saying that you've got to be pretty comfortable with those numbers.
Howard Brous: What other major brands are you going to launch on Army? So Orny has a robust pipeline. There's a strong business development team there. Of course, as you know, I have.
Speaker Change: What other major brands are you going to launch on Army?
Speaker Change: So, Army has a robust pipeline, there's a strong business development team there, of course, as you know what I have.
Robert DeLoren: I have a tremendous amount of relationships in the branded space, both with retail brands and with wholesale, and I am helping the company to make some of those contacts that they're going to stay on the same type of ramp up. 13 new, mid-sized companies are on the platform now within 60 days. I think they're going to continue at that pace.
Speaker Change: A tremendous amount of relationships in the branded space, both with retail brands and with hotel brands.
Speaker Change: Mid-sized companies are on the platform now within 60 days. I think they're going to continue at that pace
Howard Brous: Initially, Orme is not seeking to be like Flip or TikTok, where there are lots of small vendors. This is really targeting the aspirational luxury marketplace, then some of the brands that you see on some of the other platforms. So I think you'll see continued onboarding of better brands and continued growth in the number of downloads and users online. Could you comment on the names today, or is that something that you can't comment on?
Orme: Initially, Orme is not seeking to be like Flip or TikTok, where there are lots of small vendors. This is really targeting more the aspirational luxury marketplace than some of the brands that you see on some of the other platforms.
Orme: So I think you'll see continued onboarding a better ground and continued growth in the number of downloads and users on-ormy.
Speaker Change: Did you comment on the names today or is that something you can't comment on? The largest brand to date that's been onboarded is Anklein.
Speaker Change: and that was a great endorsement of Wormy for the platform. And then there are others on the platform, not quite as large, but are positioned nicely in the marketplace, like DL1961 and some others.
Robert DeLoren: They've made great progress onboarding some beauty brands, some home brands, and activewear brands. So, I'm very pleased with what the ORNI team is doing, and we'll continue to help them in every way we can. You have purchased, several months ago, 132,000 shares at 98 cents. 146,000 and changed its 65 cents, and you're over the next year you're taking about a half a million dollars, excuse me, more than that you're purchasing, Assuming the stock is $0.70, about another 500,000 shares.
Speaker Change: Similar friends, they've made great progress in onboarding some beauty brands and some home brands and active wear brands. So I'm very pleased with what the only team is doing, and we'll continue to help them in every way we can.
Speaker Change: You have purchased, several months ago, 132,000 shares at 98 cents.
Speaker Change: 146,000 and change at 65 cents
Speaker Change: and you're over the next year you're taking about a half a million dollars excuse me more than that you're purchasing
Speaker Change #100: Some of the scientists have recently sensed about another 500,000 shares.
Howard Brous: And that's a lot of stuff. Can you comment? Um, other than, um... I'm making these investments because I believe in what we're doing and a lot more. I say, Howard. 800, nearly a million shares of stock.
Speaker Change #100: and that's
Speaker Change #101: a lot of stuff. Can you comment?
Speaker Change #102: One more, you know, can I say how it's 800 to nearly a million shares of stock in total.
Howard Brous: That's all I have. Thank you. Thank you. Our next question comes back from the line of Michael Kupinski of Noble Capital. The line's open.
Speaker Change #102: [inaudible]
Paul Kuntz: In the end, Andrew Berger, Paul Kuntz, Paul Kuntz, Paul Kuntz, Paul Kuntz, Paul Kuntz, Paul Kuntz,
Paul Kuntz: That's all I have. Thank you.
Speaker Change #103: Thank you. Our next question comes back from the line of Michael Kapinski of Noble Capital, the Lion's Open Church.
Michael Kupinski: Thank you. Just one quick follow-up, Bob, on the Christy Brinkley brand. You indicated that you're looking at other distribution channels outside of HSN, and I was wondering if you could talk a little bit about the products that you're thinking about in terms of those, the products that you might offer outside of HSN, and then the distribution. Are we looking at major big-box retail stores, or are you talking more about digital distribution platforms? I was just wondering if you could kind of add a little bit more color there.
Michael Kapinski: Thank you. Just one quick follow-up on the Christy Brinkley brain, you indicated that you're looking at other distribution channels outside of each other and it was wondering if you can talk a little bit about it.
Speaker Change #104: It's a product that you're thinking about in terms of those, the products that you might offer outside of HSN. And then the distribution, are we looking at major big box retail stores or are you talking more digital distribution platforms? So I was just wondering if you can kind of add a little bit more color there.
Robert DeLoren: So categories would be apparel, Seth Burroughs for fashion accessories, home, pet, and beauty. We have all of those categories under the brand, and the focus has been on major big box retail. And when would you expect to announce something like that? I mean, because that would be a fairly big announcement, I would think. I would say that just given timelines on product development, you know, we... We'd like to do something for Spring of 25 where we're working at... in Blythe Street to try to get. [inaudible] Market was a retailer by that date. For whatever reason, we can't make it; then it would push too far.
Speaker Change #105: So categories would be a parallel.
Speaker Change #106: Accessories, of course fashion accessories, home, pet, and beauty. We have all of those categories under the brand and the focus has been on major big box.
Reed Talfish: Reed Talfish.
Speaker Change #108: And when would you expect to announce something like that, I mean, because that would be up there to pick an announcement I would think.
Speaker Change #109: I would say that, just given timelines on product development, you know, we...
Speaker Change #109: We'd like to do something for spring of 25, where we're...
Speaker Change #110: Working at...
Speaker Change #110: Blightspeed to try to get
Speaker Change #110: to market with a retailer by that date, but if
Speaker Change #110: For whatever reason we can't make it, then it would push to fall.
Speaker Change #111: Gotcha. Okay, good luck with that. It sounds great.
Speaker Change #112: Call her up, thank you.
Speaker Change #112: Thank you.
Speaker Change #113: Seeing as there are no more questions in the queue, that concludes our question and answer session. I will now turn the call back over to the Accel Grants team for closing remarks.
Speaker Change #114: Thank you, ladies and gentlemen. Thank you for your time this morning. We greatly appreciate your continued interest and support in Accel Brands. As always, stay fit, eat well, and be healthy.
Speaker Change #114: Good morning.
Speaker Change #115: Ladies and gentlemen, that includes today's calm. Thank you all for joining. You may now disconnect.
Michael Kupinski: Gotcha. Okay. Good luck with that. That sounds great. Paul, I have.
Operator: Seeing as there are no more questions in the queue, that concludes our question and answer session. I will now turn the call back over to the Xcel Brands team for closing remarks. Thank you, ladies and gentlemen. Thank you for your time this morning. We greatly appreciate your continued interest and support in Xcel Brands. As always, stay fit, eat well, and be healthy.
Howard Brous: No, the largest brand to date that's been onboarded is Ankheim, and that was a great endorsement of Warming for the platform, and then there are others on the platform, not quite as large, but are positioned nicely in the marketplace, and D.L. 1916.