Q1 2025 Byrna Technologies Inc Earnings Call - Q&A
Melissa: Good morning, and welcome to Brenner's fiscal first quarter, 2025 earnings conference call. My name is Melissa, and I will be your operating for today's call. Joining us for today's presentation are the company CEO , Bryan Ganz, and CFO , Laurilee Kearnes. Following their remarks, we will open the call to questions.
Speaker Change: Earlier today, Byrna released, Results First, Fiscal First Quarter, ended February 28, 2025. A copy of the press release is available on the company's website.
Speaker Change: Before turning the call over to Bryan Ganz, Byrna Tech, Byrna Technologies Chief Executive Officer, I'll read the Safe Harbor Statement.
Speaker Change: Some discussions held today include forward-looking statements, actual results could differ materially from statements made today. Please refer to Burnus most recent 10K and 10Q filings for a more complete description of risk factors that could affect these projections and assumptions.
Speaker Change: The company assumes no obligation to update forward with your statements as a result of new information, future events or otherwise.
Speaker Change: As this call will include references to non-GAAP results, please see the press release in the investor section of our website, ir.burner.com, for further information regarding forward looking statements and reconciliation of non-GAAP results to gap results.
Speaker Change: Now, I'd like to turn the call over to Burner CEO , Bryan Ganz. Please go ahead, sir.
Speaker Change: Thank you, Melissa, and thank you everyone for joining us today. This morning, we filed our 10Q with the SEC, an issued a press release providing our financial results and business highlights for the fiscal first quarter and in February 28th, 2025.
Speaker Change: I'll start today by trying to call over to our CFO , Laurie Kearnes, who will review our financial results for the period. Following her remarks, I'll discuss the operational highlights.
Speaker Change: that drove our 57% year-over-year revenue growth and continued gap and non-GAAP EBITDA profitability for the quarter. I'll then offer insights into our strategy moving forward before we open the call to questions from our covering research analyst, Laurilee.
Lauri Kearnes: Thank you, Bryan, and good morning, everyone. Let's review our financial results for the first fiscal quarter ended February 28, 2025.
Lauri Kearnes: Net revenue for the Q1 2025 was 26.2 million, a 57 percent increase from the 16.7 million reported in the first fiscal quarter of 2024.
Lauri Kearnes: This $9.5 million increase is primarily due to continuing sales momentum, channel expansion and broader brand adoption.
Lauri Kearnes: In Q1, direct to consumer revenues increased by 6.7 million through Byrna.com and Amazon.com.
Lauri Kearnes: Compared to the prior year period, while both channels have grown, we are starting to see our Amazon.com sales grow at a faster rate than our Verna.com sales.
Lauri Kearnes: Additionally, sales to dealers increased 1.9 million, or 78 percent. With the largest increase coming in the category of chain stores, which increased $700,000, this was primarily driven by sales to baths pro shops.
Lauri Kearnes: Gross Profit for Q1 2025 was 15.9 million, or 61% of net revenue, compared to 9.6 million or 58% of net revenue for Q1 2024.
Lauri Kearnes: We continue to see the gross margin improvement due to our efforts in the middle of 2024 focused on designing for manufacturability, as well as increased production volumes.
Lauri Kearnes: Operating expenses for Q1 2025 were 14.2 million compared to 9.8 million for Q1 2024.
Lauri Kearnes: The increase in operating expenses was driven by increased variable selling expenses, discretionary marketing spend and higher payroll costs.
Lauri Kearnes: Higher payroll costs included an increase in employee benefits and the company 401k match of $300,000. This was due to a combination of increased employees, increased healthcare costs, and the company implementing a 401k safe harbor matching program.
Lauri Kearnes: Net income for Q1 2025 was $1.7 million, compared to $17,000 for Q1 2024.
Lauri Kearnes: This increase was driven by an overall increase in product sales.
Lauri Kearnes: Due to the release of our valuation allowance in Q4 2024, the company will transition into full taxpayer status in 2025, and we expect our effective tax rate to be approximately 23% for the year.
Lauri Kearnes: Adjusted Ibadah, a non-GAAP metric for Q1 2025, totaled $2.8 million compared to $1.2 million for Q1 2024.
Lauri Kearnes: Cash, Cash Equivalence, and Marketable Securities at February 28th, 2025, totalled 19.3 million compared to 25.7 million at November 30th, 2024.
Lauri Kearnes: The decreased reflex planned increases in inventory, ahead of the compact haque launcher release, and normal seasonal working capital movements.
Lauri Kearnes: Inventory at February 28, 2025, total 23.2 million, compared to 20 million, and November 30, 2024.
Lauri Kearnes: The company has no current or long term debt. I'll now turn it back to Bryan.
Thanks, Laurilee
Lauri Kearnes: As our results demonstrate, the sales momentum from fiscal 2024 continued into the first quarter of fiscal 2025 as we successfully grew revenue by 50% year over year to 26.2 million despite the first quarter being our traditionally slowest quarter.
Lauri Kearnes: In 2023 and 2022 by comparison, Q1 sales were 47% and 29% below Q4 sales respectively.
Lauri Kearnes: As expected, sales soften post-holiday due to consumer fatigue, a general Trump slump for firearms post-election, and waning consumer confidence.
Lauri Kearnes: That said, February , Daily DTC sales were better than January , Daily DTC sales, and March, Daily DTC sales were better than February , Daily DTC sales.
Lauri Kearnes: This was despite the general market softness and the fact that some of our customers appeared to be waiting for the release of our much anticipated compact launcher.
Lauri Kearnes: On a related note, when speaking to investors recently at the Roth Conference, several investors told me that they are using one of any one of a number of different apps to track burn his credit card sales. I would just urge people using these apps to also be tracking our sales on Amazon.
Lauri Kearnes: as an increasing portion of our DTC sales are taking place on Amazon, where we are not paid by credit card. In Q1 of 2024, Amazon sales represented 19.3% of Bernice Total US DTC sales.
Lauri Kearnes: By Q-1 2025, Amazon Sales represented 26.9% of Burners Total US DTC sales and last month, Amazon Sales climbed to 32.6% of Burners Total DTC sales.
Lauri Kearnes: There are a number of reasons for Amazon's strong relative performance. However, the most important reason is that we are now treating Amazon as its own business center with a dedicated Amazon sales manager focusing exclusively on our Amazon business.
Lauri Kearnes: With more than 50% of all online sales in the U.S. taking place on Amazon, we expect to see our Amazon sales continue to grow as a percentage of our total sales, as Burns Brand Awareness and the normalization of the non-lethal product category continues to grow.
Lauri Kearnes: Moreover, we're about to introduce Byr with Prime on our website.
Lauri Kearnes: This will allow Amazon members to buy our products using their Amazon Prime account when checking out on the Burner website.
Lauri Kearnes: This enables us to take advantage of Amazon's lower shipping rates and avoid credit card fees without paying Amazon's hefty selling fee.
Lauri Kearnes: Initially, buy with prime will be limited to select ammo and accessory at SKUs. However, if successful, we will roll it out much more broadly. We are able to recoup the very low 3% fee through the lower freight costs and the elimination of credit card fees.
Lauri Kearnes: I am somewhat agnostic as to whether we sell through Amazon or Burnett.com as our net margins are not really very different between the two channels. Since we sell a slightly different bundle on Amazon, growth profit margins on Amazon are 2.6% higher than Burnett.com's growth profit margins.
Lauri Kearnes: We also eliminated the credit card fees, Shopify fees, and we saved substantially on outbound freight when we sell on Amazon, in addition our advertising costs are much lower.
Lauri Kearnes: Last year, our row-as on ads driving customers to burnit.com was 4.5x
Lauri Kearnes: Well, our row-as are returned on advertising spend on Amazon advertising with 18.5X, resulting an overall DTC row-as of 5.4X for the company. As a result, on a net basis, our margins are not substantially lower on Amazon.
Lauri Kearnes: On the last earnings call, I announced that we had just signed a letter of intent with Sportsman's warehouse to roll out a Burna store within a store pilot program at 10 Sportsman's warehouse locations across the United States.
I am very pleased to announce
Lauri Kearnes: that sportsmen has agreed to expand this pilot program to 13 store within the store locations.
Lauri Kearnes: and more importantly, to add an additional 41 stores where they will carry Berna's point of sale display and will convert existing archery ranges into Berna shooting lanes where potential customers can try shooting the Berna.
Lauri Kearnes: bringing the total number of sportsmen's locations where customers can experience the
Lauri Kearnes: A few weeks ago, we celebrated the successful launch of the first Bernace store within a store at Sportsman's warehouse flagship store in Saratoga Springs, Utah near its corporate headquarters.
Speaker Change: The remaining 12 store within the store locations in our pilot program are scheduled to open by May 1st at which time Sportsman CEO Paul Stone and I plan to officially announce
Speaker Change: The kickoff of this revolutionary business partnership where sportsmen combined experiential selling with the fastest growing segment in the personal self-defense space, Burnin' on lethal launchers.
Speaker Change: Each of these 13 installations will feature a dedicated area where customers can try shooting the launchers for themselves.
Speaker Change: As we say at Byrna, shooting is believing. As most of you know, based on the experience of our own retail stores and our premier dealers, when a potential customer has an opportunity to shoot the Byrna, conversion rates go up dramatically Hopefully.
Speaker Change: Measured by sales as percentage of groups walking into the stores, the conversion rates are even higher. This compares to a conversion rate of slightly over 1% for people visiting our website.
Speaker Change: To support this initiative, we are jointly funding the build out with Berna covering half of the approximately $15,000 cost per installation and to ensure a strong launch.
Speaker Change: We're placing a Berna-trained representative at each store with this store location during the rollout period. Similar to Apple's genius bar concept, these experts will ensure both sportsman staff and customers receive comprehensive product information and support.
Speaker Change: The revenue potential is significant with this partnership. To put this in perspective, just one launchersale per day per store could generate approximately $200,000 in annual revenue at each participating sportsman's warehouse location.
Speaker Change: If they can achieve fine-watcher sales per day per store, revenue could exceed $1 million per store, similar to our Las Vegas location.
Speaker Change: Sportsman's operates 146 stores nationwide. If their initial performance metrics are anywhere near what we are seeing with our own company-owned stores, sportsman's plans to continue expanding these store-based store installations throughout their network.
Speaker Change: In parallel, Q1 saw the successful launch of three new Berna retail stores.
Thank you.
These stores were opened in Scottsdale, Arizona.
Speaker Change: Franklin, Tennessee, just outside Nashville and Salem, New Hampshire. I'm proud to report that the final retail store, which is co-located with our brand new ammo factory in Fort Wayne, Indiana, has its grand opening schedules for later today.
Speaker Change: These company-owned retail locations complement both our sportsman's partnership and our premier dealer program by allowing us to use our retail stores as a testbed to determine not only the look and feel of a store offering the burn experience, but also to develop the best strategies for bringing folks in the door and closing the sale.
Speaker Change: We see significant long-term potential in burner branded stores, both for regions that are not well served by retail partners, and to act as flagship locations where we can gather Democrat data.
Test New Products
run training programs
Speaker Change: host celebrity appearances and engaging community outreach. Early results for these new stores have been encouraging.
Speaker Change: For their first full month of operations, average daily sales at the new locations range from slightly more than $1,000 a day to more than $1,700 a day. This is well above what we saw in Las Vegas in the first few months of operation in 2023.
Speaker Change: The 800-pound gorilla in the room, I think for everyone, is how the recently imposed terrorist will affect Burna.
Speaker Change: I am happy to report that Byrna was well ahead of the curve and as a result we are better situated than 95% plus of all American companies when it comes to terrorists.
Speaker Change: Specifically four years ago, when Byrna was plagued with supply chain interruptions, I announced Byrna's all truck strategy. This required our supply chain to have at least two sources for every launcher component, with at least one of those sources being in the United States.
Speaker Change: Two years ago, in the wake of Russia's invasion of Ukraine, I started to worry about the risk to our China supply chain of tensions were to flare up over Taiwan.
Speaker Change: At that time, I instructed our supply chain to get Byrna completely out of China by 2025 so that we had no reliance on Chinese suppliers when it came to components for our flagship bird epistles [inaudible]
Speaker Change: As a result of these initiatives, we are no longer producing any of our critical components in China, and we have domestic suppliers for virtually every single component.
Speaker Change: Last year, when it looked like Donald Trump had a chance of winning the 2024 election, we took this a step further.
Speaker Change: It was widely telegraphed to the market that the Trump administration would institute significant tariffs if elected.
Speaker Change: At the time, only 11% of the components that go into a Bernalaunch or a U.S. source. The balance came from vendors scattered across the globe, including Malaysia, Thailand, Taiwan, Indonesia, South Africa, Germany, and Italy, among others.
Speaker Change: So last year, I instructed our supply chain team to move virtually all of our supply chain to the US
Speaker Change: By the time President Trump was elected, our U.S. content had gone up to 32 to 34%. As of last week, when the first tariffs were implemented, our U.S. content was 87 to 92%.
Speaker Change: Now, in fairness, moving our supply chain to the U.S. has not been without cost. There was a reason we relied on foreign sources for most of our components in the first place. Moving the manufacturer components.
Speaker Change: Towers on the remaining small amount of foreign source components at another 2% of the cost of launcher.
Speaker Change: Meaning that we are looking at total cost increases around 16%.
from the middle of 2023.
Speaker Change: Had we done nothing, however, our bill of materials would be up 29% and significantly more if we were still manufacturing in China.
Speaker Change: At a 65% gross profit margin, this 16% cost increase, if it holds, would translate into a loss of approximately 5 margin points.
Speaker Change: The good news is that we were not sitting on our hands with regard to front running the terrace.
Speaker Change: Once President Trump was elected, we ramped up component purchases and production well beyond our current requirements in anticipation of the widely telegraphed tariffs.
Speaker Change: Today we have enough SD launchers and components in inventory to last us approximately ten months.
and enough LE launchers and components.
Speaker Change: in Inventory to last us more than one year. As a result, we do not expect to see any material marching hit from the tariffs for at least one year if the tariffs are even still in place by that.
Speaker Change: In addition, the new Compact Launcher, which is due to be released shortly, has an MSRP $170 more than the Berna ST and $70 more than the Berna L.A.
Speaker Change: Its cost, however, is somewhere between our two existing launchers. As a result, the margin on the Bernacee L should be 7 to 8 percentage points higher than the margin on our current launchers.
Speaker Change: On top of this, by moving our supply chains and domestic suppliers closer to the factory there are enormous soft cost benefits that we should realize.
Speaker Change: Every month, our reported gross profit margin is 2 to 300 basis points lower than our product gross profit margin, meaning that we are incurring 2 to 3% in unfavorable manufacturing
Speaker Change: Most of these variances result from out-of-spec components that either must be quarantined and returned or reworked if there is insufficient time to shift them all the way back to Asia to be reworked. There is a very real cost to this.
Speaker Change: What is worse because we cannot inspect 100% of the more than 100,000 parts that pass through the quality control inspection point every single day. Out-of-spec parts can sometimes do slip through our quality control processes, making their way to the production line.
Speaker Change: When this occurs, we end up with failures that are only caught at the end of the production line when product is tested.
Speaker Change: This drives down our first pass yield and pushes up our labor variance and these launchers that need to be torn down and rebuilt.
Speaker Change: By working with higher quality, domestic Tier 1 suppliers operating closer to home, we can exert greater control over their quality procedures, performing more frequent factory audits, and working with them to ensure the parts are tested before the ever-arrived
Speaker Change: Well, this seems like a small thing. These soft-cost rob us of two to three margin points every month which we expect to save with the transition to US sourced components.
Speaker Change: Additionally, by on-choring supply, we can reduce our inventory and transit.
Speaker Change: which adds millions of dollars to our inventory costs. By working with US suppliers we should see a dramatic reduction in inventory and transit and a corresponding increase in cash resulting in additional interest income.
Ammo production.
Speaker Change: In a significant milestone for our Made in America strategy last month we initiated production of our payload rounds at our new ammunition manufacturing facility in Fort Wayne, Indiana. Strategically located, just miles from our Launcher Production Center, this facility has an annual capacity of 8 million rounds.
Speaker Change: We did this in the nick of time. Up until now, all our payload ammo was produced in South Africa.
Speaker Change: Starting last week, a 10% across the board tariff went into effect, and the proposed reciprocal tariff on South Africa is an additional 30%.
Speaker Change: Fortunately, over the last several months, we created up and shipped out all three ammo manufacturing machines that were running in South Africa to our new facility in Fort Wayne.
Speaker Change: One of these machines is already operational, along with a new, highly automated machine we had built for us in Germany.
Speaker Change: The other two machines are scheduled to come online this quarter. We also placed orders for four more specialized dosing and welding machines in preparation for the projected surge in ammunition demand following our CL Launcher release.
Speaker Change: The CL's proprietary 61 caliber round will be exclusively available from Byrna for the foreseeable future, creating a valuable ecosystem around our flagship product.
I have some very exciting news.
Speaker Change: On March 19th, we went into serial production of the highly anticipated and much coveted compact launcher.
This is the most revolutionary non-lethal watcher ever made.
Speaker Change: modeled after a micro-compact handgun similar in size to a SIG P365 or Glock 43X.
Speaker Change: The launcher is 38% smaller and 36% lighter than the Berna SD, which is currently the smallest launcher on the market, yet it is just as powerful as measured in force per square inch as our most powerful launcher, the Berna Elite.
Speaker Change: It is also 27% narrower than our current pistol launchers making it ideal for concealed carry. And there's one more thing. The smaller size makes it much easier for women for anyone with smaller hands to operate.
Speaker Change: From the back of the grip to the middle of the trigger, the new CL is only two and a half inches compared with three and a quarter inches for the SD and LE launchers.
Speaker Change: As a result, we believe that this new, smaller, and more powerful launcher will open up to critical women's market for Burda. I have to tell you, getting this much stopping power into such a small piece of real estate is an engineering marvel.
Speaker Change: As of last night, we had 10,924 compact launchers in stock. We're already in production today, so I'm sure we're well over 11,000 launchers. We are producing at the rate of 1,000 launchers today, six days a week.
Speaker Change: Our goal is to have more than 25,000 compact launchers in stock when we officially release it for sale. We'll be getting on the phone with all of our dealers right after this call to start taking initial orders.
Speaker Change: Sample Launchers will be going out to our key partners and celebrity endorsers one week from today. At the same time, we'll be sending sample launchers and ammunition to our Burnett stores, premier dealers and the sportsmen's locations with Burnett shooting ranges.
Speaker Change: This will allow people to try the launcher and place a pre-order prior to the actual release date.
Speaker Change: The Burna website will be updated for the CO Launcher that same day.
Speaker Change: Our plan is to start shipping to dealers on April 21 through 24. We will start taking DTC orders on April 24. However, nothing will be released to the public from either Berna or its dealers until the official release date of May 1.
Speaker Change: Well, we do not know what the split will be between our various product offerings once the C.O. is released. We have ample burner SD and LE launchers in stock, and our plan is to produce only C.O. launchers for the foreseeable future until we can fulfill all the initial orders and build up adequate inventory.
Speaker Change: Once we know what the split is between the three models, our Fort Wayne factory has the flexibility to shift between CL, SD, and LE models based on real-time demands.
Speaker Change: We are extremely excited about the launch of the CL. We've been planning this for a number of years. The single biggest complaint that we've gotten has always been the size of our launcher and we think customers will be amazed with the new CL launcher.
Speaker Change: Okay, tax rates. As Laurilee mentioned, with the rollout of the CL Launcher and the new Sports and Warehouse partnership, we anticipate continued success throughout the year.
Speaker Change: However, we strategically position the company to offset this impact through continued gross margin expansion, disciplined operating expense management, and an increasingly favorable product mix now driven by our Compact Launcher rollout.
Speaker Change: In conclusion, we are well positioned to build on our performance in the first quarter. Our balance sheet remains strong and with the upcoming release of the CO Launcher, we expect to ramp very quickly.
with momentum across our channels, scalable partnerships in place.
Speaker Change: and a highly anticipated new product with a release date only weeks away, we remain confident in our ability to continue executing through 2025 and beyond. So that concludes my prepared remarks. Melissa, I'll turn it back to you.
Speaker Change: Thank you. The company will now be taking questions from cell side analysts.
Speaker Change: If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone wanted to get your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: Our first question comes from the line of Jeff van Sinderen with B. Riley Securities. Please just be with your question.
Jeff VanCinderen: Good morning everyone and thank you for going through so much in your prepared comments.
Jeff VanCinderen: Just to clarify, I wanted to circle back on the Q2 early sales trend data. I think you mentioned that March grew sequentially from February .
Speaker Change: I'm wondering if there's anything new in the first week of April , and then I guess as you look at the role as data, can you give us any more color on how you're planning to manage and adapt that spend in the near term.
particularly around the new CL Launcher.
Jeff, thank you very much for the question.
Speaker Change: Our row-as is always lower in the beginning of the year. We hit our 5x row-as because Q4 has such a strong row-as. So our overall row-as for the first quarter is in the mid-3s.
Speaker Change: This is not unusual. We would expect it to be there given that this is always our weakest quarter.
Speaker Change: As we think most of the demand is going to be driven from our existing customer base through our email and website. By that point, when we want to start going after new customers for the CL, we'll be ramping our advertising spend back up, but that will be sort of as we get into the very, very profitable Q4 time periods.
Okay, great. And then, I'll be-
Speaker Change: It seems like a fair number of moving parts there, but maybe you could just touch on how the rollout will go. I know you mentioned various components there, whether it's through sportsmen's or your website, but can you just run us through kind of the sequence of events in rollout of the new CR?
Speaker Change: Okay, so it was important to us to have 25 to 30,000 units on the shelf.
before we released the CL.
Speaker Change: We'll be in groups. We'll be talking to all the premier dealers as a group and we will start taking their orders today. We have allocated 10,000 of the 30,000 launchers to our dealers.
Speaker Change: Those launchers will start going out the door at the Berna factory on April 21. By the 24th we should have shipped all dealer orders so that they have time to get them and stock them before the May 1st release date.
On!
Speaker Change: April 15, we will be sending out overnight a box of two launchers, an orange one and a black one, to all of our celebrity endorsers.
the actual release date.
Speaker Change: So there should be 50-something stores where people can try the burner if they would like.
Speaker Change: We will start actually taking orders online. We'll accept pre-orders starting April 17th. We'll be accepting orders online starting April 24th.
Speaker Change: and then May 1, we will start shipping the burners. This would give us time to ship all 30,000 burners during the month of May if necessary.
Speaker Change: You know, you're right, it's a very difficult question. If you're asking me, my personal opinion is yes, that was the low point of the year. I think...
Speaker Change: Like you, everybody wants to see how this CL Watcher does. Every indication that we have is that this is going to be an enormous home run. It is the reason that we didn't release it whenever...
Speaker Change: Currently, 11,000 launchers in stock. It's the reason we're holding off, because we don't want to have a bad customer experience where we ship the first batch out and then there's no launchers for anybody else. So we anticipate that
Speaker Change: that this will be a sequential growth year where every quarter will be bigger than the next.
Thanks a lot. Thank you for taking my questions.
Thank you, Jeff.
Speaker Change: Thank you. Our next question comes from line of Matt Koranda with Roth Capital Partners. Please proceed with your question.
Speaker Change: Hi, it's Joseph on for Matt today. Just going back into your sportsman shopping shops.
Speaker Change: Could you remind us how many there's currently up and running, and what are the learnings that you guys have for this, these types of stores versus your own branded stores, additionally, for the potential of the 30 store expansion by August ? What do you need to see from these first stores to expand to those additional 30?
Hi Joseph Lauri, thanks for the question.
Speaker Change: going to be operational those first 13 by the first of May. So they'll start rolling on over the next few weeks to have those operational. Additionally, we said there was the 41 additional stores that will just have our point of cell display, but we'll have a shooting experience as well.
Speaker Change: So I think what we need to see is we just need to see that there's momentum, we need to see that there's interest.
Speaker Change: They opened the first store and, you know, had sales the first day of that first store opening. So I think we're off to a good start there. We expect these to continue to roll out. You know, they've got the foot traffic that our stores, you know, we struggle to get the foot traffic into begin with as we open our stores and they've already got that foot traffic. So it's really getting the interest and we believe having someone in the store who is that Bernadena who understands they can get people interested. They can have the conversations [inaudible]
Speaker Change: You know, encourage them into the shooting experience lane, and that will help drive the cells.
Lauri Kearnes: Just to reiterate, Laurilee brought up a very, very good point here.
Lauri Kearnes: Around 80% based on groups, but even on individuals between 50 and 70%
Speaker Change: Sportsmen have hundreds of people visiting each of its stores every day.
Speaker Change: When they hear the bang, bang, bang of these rounds being fired and draws their attention to it, if we can get people into that range, we know we will convert them.
Speaker Change: That I'm certain of. So, we're extremely excited about this as are the folks from sportsmen's and I think this is the reason that we've
Speaker Change: That we want to put a burden of genius in every store because we think that there's going to be a lot of interest from the sportsman's customers
Speaker Change: Thank you. And then just for an additional question, just talking about your point of sale displays, how is that going to differ in terms of the shooting lines? Is it will it be the same layout for what you have in your shopping shops, or will there be any significant differences there?
Speaker Change: which we can assemble right in the middle of the store. These pods have glass along the side so people can see the shooter. They can hear what's going on. There's a counter and slap walls and a whole, you know, a true store within a store.
with the point of sale displays.
This is going to be a kiosk that has, you know, approximately
$8,000 with Berta Product on it.
There's not going to be anybody devoted to...
Speaker Change: selling burner and if somebody is interested and they ask they'll be shown the archery range and they'll be able to try the burner.
So it will provide an opportunity.
for a shooting experience.
My guess is...
Speaker Change: That these 41, they're going to have the point of sale display. If we continue to roll out, they will probably be the next 41 to be converted into stores within a store.
Speaker Change: Alright, thank you, Bryan. We'll go ahead and take the rest off line and congrats on another good quarter.
Thank you.
Speaker Change: Thank you. Our next question comes from the line of Jon Hickman with Len Bergthalman. Please proceed with your question.
Speaker Change: Hey, Bryan, most of my questions were just answered. I had questions about the difference between the story then the story, and then just the kiosk.
Speaker Change: But I would, maybe I missed this earlier, but what's the MSRP going to be on the new CL versus the current products?
Speaker Change: Sure, hi, Jon at Flurry. The new CL, the base price will be $549.99. The LE is currently at $479.99, and the LE is at $379.
Okay.
Speaker Change: and then the ammo is the same, is there the same margin on the ammo, is it any different?
But it really doesn't cost dramatically different.
Speaker Change: Because it's much less expensive than high-quality Burna ammo for the 68 caliber.
Speaker Change: For 61, at least for the foreseeable future, there is nobody else that makes a 61 caliber round. We will capture 100% of the ammo probably for the rest of this year and maybe well into next year.
and the new launcher comes in orange and black or...
Speaker Change: It comes in orange and black currently, pink will be released later this year, and we intend to bring out other colors. The other thing with this launcher is it can be serricoded unlike art.
Speaker Change: Earlier Launchers, which means we can make virtually any color. We can do camouflage launchers. There's a huge amount of things that we can do. In fact, there's a whole array of very, very exciting accessories that we are not bringing out with the initial.
launch of the CL.
Speaker Change: But, we'll be rolling out so that we can go back to people that have made initial purchases with an opportunity for them to add red dots and special holsters and special grips for the launchers, so it is a launcher that can be much more easily customizable than our current launchers.
Speaker Change: Okay, and then one last question. The CO2 cartridge, is that...
Steve Graf
Speaker Change: Same 8 grams, so that's CO2 that we use for the SD. We'll also work for the CL. Okay, thank you, and a nice quarter. Appreciate all the commentary.
Thank you, Jon. Thanks, Jon.
Speaker Change: Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Ganz for any final comments.
Ganz: Thank you Melissa, and thank you everyone. We really appreciate your continued interest in the company and your continued support. I look forward to catching up with many of you after this call.
Ganz: Thank you. This concludes today's call for Berna's Physical Fourth Quarter and Full Year 2024 Conference call. You may now disconnect your lines. Thank you for your participation.