Q4 2026 Calmer Co International Ltd Earnings Call

August 7, 2026

Speaker #1: First time with the webinar. Again, welcome to our Q4 FY26 webinar. My name is Zane Yoshida, founder and CEO of the Karma Co. And Matthew Cowell, our Chief Commercial Officer, is also joining me to cover a range of topics today.

Zane Yoshida: For the first time with the webinar. Again, welcome to our Q4 FY2026 webinar. My name is Zane Yoshida, Founder and CEO of The Calmer Co. Matthew Cowell, our Chief Commercial Officer, is also joining me to cover a range of topics today. If we can, Matt, let's move to the second slide. We will be talking about a range of topics, starting with the strategic pillars in the business, which we speak to consistently. Regional sourcing, manufacturing, and innovation, followed by direct-to-consumer including Amazon, a scalable, profitable retail followed by wholesale. I'll go through some of the quarterly highlights, discuss revenue performance, hand over to Matt at that stage for him to update on the revenue for the quarter, where that's come from, where the shift has been. Cash costs and funding, and regulatory and outlook for FY2027. Let's move to the next slide.

Speaker #1: If we can, Matt, let's move to the second slide. We will be talking about a range of topics. Starting with the strategic pillars in the business, which we speak to consistently: our regional sourcing, manufacturing, and innovation, followed by direct-to-consumer including Amazon, scalable, profitable retail, followed by wholesale.

Speaker #1: I'll go through some of the quarterly highlights, discuss revenue performance, hand over to Matt at that stage for him to update on the revenue for the quarter, where that's come from, where the shift has been, followed by cash costs and funding, and regulatory and outlook for FY27.

Zane Yoshida: I'll go through some of the quarterly highlights, discuss revenue performance, hand over to Matt at that stage for him to update on the revenue for the quarter, where that's come from, where the shift has been. Cash costs and funding, and regulatory and outlook for FY2027. Let's move to the next slide. Thank you, Matt. Apologies again for the technical issues earlier on. I guess from a strategic pillar perspective, the objective for The Calmer Co. is to continue to expand its sourcing capability outside of Fiji. We've been very comfortable building a pipeline of supply with direct relationships that we have had with farmers across Fiji.

Speaker #1: Let's move to the next slide. Thank you, Matt. Apologies again for the technical issues earlier on. So I guess from a strategic pillar perspective, the objective for the Karma Co.

Zane Yoshida: Thank you, Matt. Apologies again for the technical issues earlier on. I guess from a strategic pillar perspective, the objective for The Calmer Co. is to continue to expand its sourcing capability outside of Fiji. We've been very comfortable building a pipeline of supply with direct relationships that we have had with farmers across Fiji. We have established relationships out of Vanuatu, as well as Papua New Guinea. We are also talking to exporters out of Samoa and looking to finalize something there. Solomon Islands has been a bit of a challenge in that we don't have the commercials volume for exports in a meaningful way out of the Solomons just yet. Really focused on beyond Fiji supply chain, strengthening sourcing out of Vanuatu and Papua New Guinea.

Speaker #1: is to continue to expand its sourcing capability outside of Fiji. We've been very comfortable building a pipeline of supply with direct relationships that we've had with farmers across Fiji.

Speaker #1: We have established relationships out of Vanuatu as well as Papua New Guinea. We are also talking to exporters out of Samoa and looking to finalize something there.

Zane Yoshida: We have established relationships out of Vanuatu, as well as Papua New Guinea. We are also talking to exporters out of Samoa and looking to finalize something there. Solomon Islands has been a bit of a challenge in that we don't have the commercials volume for exports in a meaningful way out of the Solomons just yet. Really focused on beyond Fiji supply chain, strengthening sourcing out of Vanuatu and Papua New Guinea.

Speaker #1: Solomon Islands has been a bit of a challenge in that we don't have the commercials volume or exports in a meaningful way out of the Solomons just yet.

Speaker #1: So really focused on beyond Fiji supply chain, strengthening sourcing out of Vanuatu and Papua New Guinea. And I'm happy to say that just yesterday we have announced a comprehensive supply agreement around strengthening this strategic pillar, particularly with P&G and Vanuatu Source Noble Carbon Varieties.

Zane Yoshida: I'm happy to say that just yesterday, we have announced a comprehensive supply agreement around strengthening this strategic pillar, particularly with PNG and Vanuatu sourced noble kava varieties. The other thing is testing capability and strengthening quality assurance. One of the focuses for the business and a key value proposition and differentiator really is traceability and transparency. Given the fact that we are sending our trucks out to remote locations and bringing kava back to the factory, filling in the associated forms right through to completion of lot numbers, which form batch numbers, and being able to trace that right back to individual farmer or a region or province, is a big advantage for us with our ongoing quality control. In addition to that, we'll touch on testing.

Speaker #1: The other thing is testing capability and strengthening quality assurance. One of the focuses for the business, and a key value proposition, and differentiator really is traceability and transparency.

Speaker #1: And given the fact that we are sending our trucks out to remote locations and bringing carbon back to the factory, filling in the associated forms right through to completion of lot numbers, which form batch numbers, and being able to trace that right back to individual farmer or region or province.

Zane Yoshida: Given the fact that we are sending our trucks out to remote locations and bringing kava back to the factory, filling in the associated forms right through to completion of lot numbers, which form batch numbers, and being able to trace that right back to individual farmer or a region or province, is a big advantage for us with our ongoing quality control. In addition to that, we'll touch on testing.

Speaker #1: It is a big advantage for us with our ongoing quality control. In addition to that, we'll touch on testing. And at the moment, for example, when we look to test carbon, we use something called high-performance liquid chromatography, or gas chromatography and mass spectrometry.

Zane Yoshida: At the moment, for example, when we look to test kava, we use something called high-performance liquid chromatography or gas chromatography-mass spectrometry. These tools are very valuable when you analyze kava from a scientific lens. You typically look at the total kavalactone concentration in your raw material, but you also look at something called chemotype profiles. In addition to chemotype profiles, you look at other kavalactones, such as flavokavains. Given some of the concerns historically in Western markets, flavokavain tracking is an essential part of our quality control with the raw materials that we process and put into finished products or sell in our wholesale channel, either as a water extract or as a CO2 extract format. We are happy to announce that we are moving forward with the commissioning of our GCMS equipment.

Speaker #1: Now, these tools are very valuable when you analyze carbon from a scientific lens. You typically look at the total carbon lactone concentration in your raw material, but you also look at something called chemotype profiles.

Speaker #1: And in addition to chemotype profiles, you look at other carbon lactones such as flavocarvanes. And given some of the concerns historically in Western markets, flavocarvane tracking is an essential part of our quality control with a raw materials that we process and put into finished products, or sell as in our wholesale channel, either as a water extract or.

Zane Yoshida: Given some of the concerns historically in Western markets, flavokavain tracking is an essential part of our quality control with the raw materials that we process and put into finished products or sell in our wholesale channel, either as a water extract or as a CO2 extract format. We are happy to announce that we are moving forward with the commissioning of our GCMS equipment.

Speaker #1: As a CO2 extract format. So we are happy to announce that we are moving forward with the commissioning of our GC-MS equipment. And the competitive advantage for us in that regard is currently when exporters are looking to test carbon in Fiji right now, it's either done out of the University of the South Pacific or it's done at Douglas Pharmaceuticals.

Zane Yoshida: The competitive advantage for us in that regard is currently when exporters are looking to test kava in Fiji right now, it is either done out of the University of the South Pacific or it is done at Douglas Pharmaceuticals. These are the only two accredited labs that are testing kava. The frustration, I guess, from a lot of exporters is the timelines to receive these results. They typically are between 5 to 7 weeks turnaround from submission of samples, but also cost for each individual sample is FJD 750, up to FJD 950 as well. The advantage that we have with the commissioning of our GCMS equipment is, we work with a lab in the United States, based out of Utah. We feed in the sample preparation of raw material.

Speaker #1: These are the only two accredited labs that are testing carbon. The frustration, I guess, from a lot of exporters is the timelines to receive these results.

Speaker #1: And they typically are between five to seven weeks turnaround from submission of samples. But also, cost for each individual sample is $750 Fiji dollars up to $950 as well.

Speaker #1: So the advantage that we have with the commissioning of our GC-MS equipment is we work with a lab in the United States, based out of Utah.

Zane Yoshida: The advantage that we have with the commissioning of our GCMS equipment is, we work with a lab in the United States, based out of Utah. We feed in the sample preparation of raw material. The subsequent analysis and interpretation of results is done at an accredited laboratory in Utah, turnaround time is typically 24 to 48 hours. This is a huge advantage for a company like us, particularly as we move beyond Fiji, to ensure that the quality and the integrity of the material is compliant and is usable with our finished products.

Speaker #1: We feed in the sample preparation of raw material. The subsequent analysis and interpretation of results is done at an accredited laboratory in Utah. And turnaround times typically 24 to 48 hours.

Zane Yoshida: The subsequent analysis and interpretation of results is done at an accredited laboratory in Utah, turnaround time is typically 24 to 48 hours. This is a huge advantage for a company like us, particularly as we move beyond Fiji, to ensure that the quality and the integrity of the material is compliant and is usable with our finished products. With the supply agreement that we have just announced as well, to expand into PNG as well as Vanuatu noble kava materials. We also have an agreement to ensure that the materials that this company is bringing into the country is quality assured, with our testing through GC-MS as well. It is a win-win situation. Much condensed lead times for analysis and interpretation of results, particularly as we look to develop formulas for consistency with potency and chemotype formats for different strategic pillars that I will touch on in the business.

Speaker #1: So this is a huge advantage for a company like us, particularly as we move beyond Fiji, to ensure that the quality and the integrity of the material is compliant and is usable with our finished products.

Speaker #1: With the supply agreement that we've just announced as well, to expand into P&G as well as Vanuatu, Noble Carbon Materials, we also have an agreement to ensure that the materials that this company is bringing into the country is quality assured with our testing through GC-MS as well.

Zane Yoshida: With the supply agreement that we have just announced as well, to expand into PNG as well as Vanuatu noble kava materials. We also have an agreement to ensure that the materials that this company is bringing into the country is quality assured, with our testing through GC-MS as well. It is a win-win situation. Much condensed lead times for analysis and interpretation of results, particularly as we look to develop formulas for consistency with potency and chemotype formats for different strategic pillars that I will touch on in the business.

Speaker #1: So it's a win-win situation much condensed lead times for analysis and interpretation of results, particularly as we look to develop formulas for consistency with potency and chemotype formats for different strategic pillars that I'll touch on in the business.

Speaker #1: So the second one is direct-to-consumer which includes Amazon USA. And looking backwards from the 30th of June for the quarter, we were still maintaining direct-to-consumer via a Salesforce platform.

Zane Yoshida: The second one is direct to consumer, which includes Amazon USA. Looking backwards from 30 June for the quarter, we were still maintaining direct to consumer via a Salesforce platform. We have made the decision to move back to a Shopify platform and using our internal team to manage this part of the business versus using external resource or agency to manage direct to consumer. Amazon, for us is still a big part of our revenue generation on a quarter-to-quarter basis, and that part of our business is still managed by Andy Berger, who, for those of you that are not aware of Andy, spent 20 years in Amazon prior to joining other e-commerce companies and has supported our growth with Amazon USA over the last 12 months or so. E-commerce is up, generating 30% of revenue for the quarter.

Speaker #1: We've made the decision to move back to a Shopee-fire platform and using our internal team to manage this part of the business versus using external resource or agency to manage direct-to-consumer.

Speaker #1: Amazon for us is still a big part of our revenue generation on a quarter-to-quarter basis. And that part of our business is still managed by Andy Berger, who for those of you that aren't aware of Andy, spent 20 years in Amazon prior to joining other e-commerce companies.

Zane Yoshida: Amazon, for us is still a big part of our revenue generation on a quarter-to-quarter basis, and that part of our business is still managed by Andy Berger, who, for those of you that are not aware of Andy, spent 20 years in Amazon prior to joining other e-commerce companies and has supported our growth with Amazon USA over the last 12 months or so. E-commerce is up, generating 30% of revenue for the quarter.

Speaker #1: And has supported our growth with Amazon USA over the last 12 months or so. So e-commerce is up, generating 30% of revenue for the quarter.

Speaker #1: Amazon USA was 457K of that, whilst maintaining or not maintaining, but showing a saving with marketing spend associated with direct-to-consumer, particularly down 31% quarter and quarter.

Zane Yoshida: Amazon USA was 457,000 of that whilst maintaining, or not maintaining, but showing a saving with marketing spend associated with direct consumer, particularly down 31% quarter on quarter. The other strategic pillar we speak to is profitable, scalable retail. Of course, we have relationships in Australia with both Coles and Woolworths. We are still maintaining the number 1 and number 3 position in Coles supermarkets Australia-wide with our unflavored kava formats such as this. We sell a 150g as well as a 50g pack in Coles Australia-wide. Similarly with Woolworths, we sell a 50g pack across Woolworths supermarkets Australia-wide. We have put out an announcement around the expansion of that product range with Coles particularly, and Matt will speak to that in the upcoming slides.

Speaker #1: The other strategic pillar we speak to is profitable, scalable retail. And of course, we have relationships in Australia with both coals and Woolworths. We are still maintaining the number one and number three position in coal supermarkets Australia-wide, with our unflavored carbon formats such as this.

Zane Yoshida: We are still maintaining the number 1 and number 3 position in Coles supermarkets Australia-wide with our unflavored kava formats such as this. We sell a 150g as well as a 50g pack in Coles Australia-wide. Similarly with Woolworths, we sell a 50g pack across Woolworths supermarkets Australia-wide. We have put out an announcement around the expansion of that product range with Coles particularly, and Matt will speak to that in the upcoming slides.

Speaker #1: We sell a 150 gram as well as a 50 gram pack in coals Australia-wide. Similarly, with Woolworths, we sell a 50 gram pack across Woolworths supermarkets Australia-wide.

Speaker #1: We have put out an announcement around the expansion of that product range with coals, particularly, and matte will speak to that in the upcoming slides.

Speaker #1: But the excitement for us is this. We have been able to, over the last four years since the carbon commercial pilot trial was announced, move to number one and number three position, respectively, for the stress and vitamin category across all coal supermarkets.

Zane Yoshida: The excitement for us is this: We have been able to, over the last 4 years since the kava commercial pilot trial was announced, move to number 1 and number 3 position respectively for the stress and vitamin category across all Coles supermarkets. Now, we know that kava certainly works. We know that kava has a long history in Western markets as a prescription medicine for solving for anxiety alongside pharmaceutical medicines such as XANAX, Valium, and Prozac. Certainly if you consider the correlation between stress, anxiety, and sleep, that continues to be a key driver with the Australian consumers who are warming to kava and who are repeatedly using kava to aid with these ailments, but also helping with a better night's sleep. The other key driver for us, like we've communicated previously, is Gen Zers.

Speaker #1: Now, we know that carbon certainly works. We know that carbon has a long history in Western markets as a prescription medicine for solving, for anxiety, alongside pharmaceutical medicines such as Xanax, Valium, and Prozac.

Speaker #1: So certainly, if you consider the correlation between stress, anxiety, and sleep, that continues to be a key driver with the Australian consumers who are warming to carbon and who are repeatedly using carbon to aid with these ailments but also helping with a better night's sleep.

Zane Yoshida: Certainly if you consider the correlation between stress, anxiety, and sleep, that continues to be a key driver with the Australian consumers who are warming to kava and who are repeatedly using kava to aid with these ailments, but also helping with a better night's sleep. The other key driver for us, like we've communicated previously, is Gen Zers.

Speaker #1: The other key driver for us, like we've communicated previously, is Gen Zs. Gen Zs are interesting demographic. Whereby 30% of them estimated not to consume alcohol anymore.

Zane Yoshida: Gen Z is an interesting demographic, whereby 30% of them are estimated not to consume alcohol anymore and are looking to safer, healthier alternatives to alcohol. Still niche, of course, but increasing adoption by Gen Zers with kava products and kava ingredients as well. The exciting piece, of course, is the fact that we will be first to market in Australia via a TGA pathway, regulated as a complementary medicine. I'll show you a brief demo of what these look like. They certainly taste fantastic. It is a pineapple coconut flavor, and given the convenience of sachet or stick pack formats, we are really excited to see how the product's gonna perform. We're looking at launching in Coles supermarkets in Q2 FY27.

Speaker #1: And are looking to safer, healthier alternatives to alcohol. So certainly, in that sense, we've seen increase for demand for carbon. We still niche, of course.

Speaker #1: But increasing adoption by Gen Zs with carbon products and carbon ingredients as well. The exciting piece, of course, is the fact that we will be first to market in Australia via a TGA pathway regulated as a complementary medicine.

Speaker #1: And I'll show you a brief demo of what these look like. They certainly taste fantastic. It is a pineapple, coconut flavor. And given the convenience of sachet or stick pack formats, we are really excited to see how the product is going to perform.

Zane Yoshida: They certainly taste fantastic. It is a pineapple coconut flavor, and given the convenience of sachet or stick pack formats, we are really excited to see how the product's gonna perform. We're looking at launching in Coles supermarkets in Q2 FY27. I believe having consumed traditional kavas and now tasted this with the R&D process, these should do really well, Matt. The retail revenue was up 24% quarter-on-quarter. It's our largest channel for Q4 FY26.

Speaker #1: We're looking at launching in coal supermarkets in Q2, FY 27. But I believe having consumed traditional carbs and now tasted this with the R&D process, these should do really well with matte.

Zane Yoshida: I believe having consumed traditional kavas and now tasted this with the R&D process, these should do really well, Matt. The retail revenue was up 24% quarter-on-quarter. It's our largest channel for Q4 FY26. Of course, we are buoyed by the new FZZR formats that we're looking to launch in Q2 FY27. The fourth strategic pillar is our wholesale bulk ingredients channel. We continue to make very strong progress with existing relationships that we have with Network Nutrition, IMCD, with water extract formats that we've been selling through this channel for some years now. Also with the expansion into higher potency formats. We have standardized 30% kavalactone formats. Historically, we've only had a 10% potency as well as an 8.5% potency.

Speaker #1: So the retail revenue was up 24% quarter on quarter. It's our largest channel for Q4, FY 26. And of course, we are buoyed by the new fizzer formats that we're looking to launch in Q2, FY 27.

Zane Yoshida: Of course, we are buoyed by the new FZZR formats that we're looking to launch in Q2 FY27. The fourth strategic pillar is our wholesale bulk ingredients channel. We continue to make very strong progress with existing relationships that we have with Network Nutrition, IMCD, with water extract formats that we've been selling through this channel for some years now. Also with the expansion into higher potency formats. We have standardized 30% kavalactone formats. Historically, we've only had a 10% potency as well as an 8.5% potency.

Speaker #1: The fourth strategic pillar is our wholesale bulk ingredients channel. And we continue to make very strong progress with existing relationships that we have with network nutrition.

Speaker #1: IMCD with water extract formats that we've been selling through this channel for some years now. But also, with the expansion into higher potency formats, we have standardized 30% carbon lactone formats.

Speaker #1: Historically, we've only had a 10% potency as well as an 8.5% potency. This now expands to a 65% carbon lactone paste as well as a 30% carbon lactone powder.

Zane Yoshida: This now expands to a 65% kavalactone paste, as well as a 30% kavalactone powder that we are selling through direct relationships as well as proposing to sell through distribution relationships that we're working on right now in the company. Again, Matt will touch on that and the progress thereof with the upcoming slides. Wholesale for the quarter, we reached AUD 305,000 worth of wholesale revenue for the quarter, which contributed 18% towards total group revenue, and 76% of that was generated from the US. Let's move to the next slide, please, Matt. The key highlights for the quarter, whilst we may have been down marginally with the wholesale channel, particularly given the lumpiness of sales, whilst we continue to build this pipeline of relationships for our extract formats we concluded the quarter at AUD 1.72 million revenue.

Speaker #1: That we are selling through direct relationships as well as proposing to sell through distribution relationships that we're working on right now in the company.

Speaker #1: And again, matte will touch on that and the progress thereof with the upcoming slides. So wholesale for the quarter we reached 305,000 dollars' worth of wholesale revenue for the quarter.

Speaker #1: Which contributed 18% towards total group revenue. And 76% of that was generated from the USA. Let's move to the next slide, please, Matt.

Zane Yoshida: Let's move to the next slide, please, Matt. The key highlights for the quarter, whilst we may have been down marginally with the wholesale channel, particularly given the lumpiness of sales, whilst we continue to build this pipeline of relationships for our extract formats we concluded the quarter at AUD 1.72 million revenue.

Speaker #2: So the key highlights for the quarter whilst we may have been down marginally with the wholesale channel, particularly given the lumpiness of sales whilst we continue to build this pipeline of relationships for our extract formats.

Speaker #2: We concluded the quarter at 1.72 million revenue. Retail growth was up 24%. And. Australia revenue quarter on quarter was again up 22%. Cash receipts increased by 15%.

Zane Yoshida: Retail growth was up 24%, Australia revenue quarter on quarter was again up 22%. Cash receipts increased by 15%. If you consider where this rebalances the quarter, in Q3 FY 2026, we reported the bulk of our revenue was generated in the United States. I think that was circa 56%, and the largest contributor to that was wholesale for the period, or evenly balanced across all our revenue-generating pillars at circa 33% from retail, 33% from direct consumer, including Amazon, and circa 33% from wholesale. We still remain very encouraged by the positive momentum with our wholesale channel. More recently, over the last couple of weeks, we've been able to formalize a heads of agreement with Kaiming Agro Processing out of Fiji. Some background there, Kaiming has operated in manufacturing in the ginger industry for the last 40 years now in Fiji.

Speaker #2: And if you consider where this rebalances the quarter, in Q3, FY 26, we reported the bulk of our revenue was generated in the United States.

Speaker #2: I think that was circa 56%. And the largest contributor to that was wholesale for the period or evenly balanced across all our revenue-generating pillars.

Speaker #2: At circa 33% from retail, 33% from direct consumer, including Amazon. And circa 33% from wholesale. So we still remain very encouraged by the positive momentum with our wholesale channel.

Zane Yoshida: We still remain very encouraged by the positive momentum with our wholesale channel. More recently, over the last couple of weeks, we've been able to formalize a heads of agreement with Kaiming Agro Processing out of Fiji. Some background there, Kaiming has operated in manufacturing in the ginger industry for the last 40 years now in Fiji.

Speaker #2: More recently, over the last couple of weeks, we've been able to formalize a heads of agreement with Kaiming Agro Processing out of Fiji and some background there.

Speaker #2: Kaiming has operated in manufacturing in the ginger industry for the last 40 years now in Fiji. He is certainly the largest processor and exporter of ginger and turmeric formats.

Zane Yoshida: He is certainly the largest processor and exporter of ginger and turmeric formats. With the heads of agreement, what that means is, beyond kava extracts, Kaiming Agro Processing is looking to invest in supercritical CO2 equipment manufacturing with a brand-new facility outside of Nausori in Fiji. He's looking to move into ginger and turmeric extract formats using CO2 extraction as well. The relationship is very complementary in the sense that we've been able to move from R&D through to commercialization with our CO2 extract kava format, particularly. We have a take or pay contract that we announced with a functional beverage company earlier this year to the tune of AUD 2 million revenue over the 24-month period.

Speaker #2: With the heads of agreement, what that means is beyond carbon extracts, Kaiming Agro Processing is looking to invest in supercritical CO2 equipment manufacturing with a brand new facility outside of Nauvoo and Fiji.

Speaker #2: And he's looking to move into ginger and turmeric extract formats using CO2 extraction as well. So the relationship is very complementary in the sense that we've been able to move from R&D through to commercialization with our CO2 extract carbon format, particularly.

Zane Yoshida: The relationship is very complementary in the sense that we've been able to move from R&D through to commercialization with our CO2 extract kava format, particularly. We have a take or pay contract that we announced with a functional beverage company earlier this year to the tune of AUD 2 million revenue over the 24-month period.

Speaker #2: We have a take or pay contract that we announced with the functional beverage company earlier this year to the tune of 2 million Australian dollars revenue over the 24-month period.

Speaker #2: And to complement that, I guess, given the existing relationships that we have with the likes of IMCD, who already sell ginger, turmeric extract formats we see the plug and fit very well here in that sense.

Zane Yoshida: To complement that, I guess, given the existing relationships that we have with the likes of IMCD, who already sell ginger, turmeric extract formats, we see the plug and fit very well here in that sense. Not only that, we're looking to simplify operations out of Fiji. Given the success with what Calvin's been doing to support other companies in the US with ginger production, we're looking to have Calvin manage the production of Fiji Kava, Taki Mai, and Authentic Kava branded products that we currently produce out of Fiji. We will still maintain control over supply chain, though, we continue to strengthen supply of raw materials as it relates to kava, to ensure that we have the volumes, the sustainable volumes, and the quality going into that facility for conversion into finished goods.

Speaker #2: Not only that, but we're looking to simplify operations out of Fiji. And given the success with what Calvin's been doing to support other companies in the USA with ginger production, we're looking to have Calvin manage the production of Fiji carbon, Takima and authentic carbon branded products that we currently produce out of Fiji.

Speaker #2: We will still maintain control over supply chain, though. And we continue to strengthen supply of raw materials as it relates to carbon. To ensure that we have the volumes, the sustainable volumes and the quality going into that facility for conversion into finished goods.

Zane Yoshida: We will still maintain control over supply chain, though, we continue to strengthen supply of raw materials as it relates to kava, to ensure that we have the volumes, the sustainable volumes, and the quality going into that facility for conversion into finished goods. I think we are very strongly positioned in that sense to really accelerate the wholesale interest around the table and move to realize very strong, meaningful revenue in the upcoming quarters. Thank you, Matt. We'll move to the next slide.

Speaker #2: So I think we are very strongly positioned in that sense to really accelerate the wholesale interest around the table. And move to realize very strong meaningful revenue in the upcoming quarters.

Zane Yoshida: I think we are very strongly positioned in that sense to really accelerate the wholesale interest around the table and move to realize very strong, meaningful revenue in the upcoming quarters. Thank you, Matt. We'll move to the next slide.

Speaker #2: Thank you, Matt. We'll move to the next slide.

Speaker #1: Thank you.

Matthew Cowell: Thank you.

Matthew Kowal: Thank you.

Speaker #2: And.

Zane Yoshida: And how-

Speaker #1: Yeah, thank you. So look, I think looking at what's happened in the last quarter and sort of extending on what Zayn just mentioned, it's been a really strong quarter for retail in Australia.

Matthew Cowell: I'll take over here. Look, I think looking at what's happened in the last quarter and sort of extending on what Zane just mentioned, it's been a really strong quarter for retail in Australia. That sort of come off some working around category events, a price increase, but just generally also an actual growth and interest in the whole category, which has sort of really given us a great base, which I'll talk about later on in terms of what that means both in Australia with future growth and future opportunity in that retail broader market, but also in terms of how we consider that overseas. After a quite strong Q3, a sort of an elevated Q3 in the wholesale space. Wholesale interest has really continued to grow in that pipeline we keep building.

Matthew Kowal: I'll take over here. Look, I think looking at what's happened in the last quarter and sort of extending on what Zane just mentioned, it's been a really strong quarter for retail in Australia. That sort of come off some working around category events, a price increase, but just generally also an actual growth and interest in the whole category, which has sort of really given us a great base, which I'll talk about later on in terms of what that means both in Australia with future growth and future opportunity in that retail broader market, but also in terms of how we consider that overseas.

Speaker #1: That's sort of come off some working around category events. A pricing increase but just generally also an actual growth in interest in the whole category.

Speaker #1: Which has sort of really given us a great base, which I'll talk about later on in terms of what that means both in Australia with future growth and fewer opportunity in that retail broader market.

Speaker #1: But also in terms of how we consider that for overseas. After quite a strong Q3, there's sort of an elevated Q3 in the wholesale space.

Matthew Kowal: After a quite strong Q3, a sort of an elevated Q3 in the wholesale space. Wholesale interest has really continued to grow in that pipeline we keep building. The timing of orders is what you sort of see and reflected of those numbers in that gap, of a sort of smaller customer base in terms of that cyclical timing of those large bulk orders. While when you look at sort of that third channel when we talk about online, again, a real cornerstone for us is Australia.

Speaker #1: Wholesale interest has really continued to grow in that pipeline we keep building. But the timing of orders was what you sort of see and reflected of those numbers in that gap.

Matthew Cowell: The timing of orders is what you sort of see and reflected of those numbers in that gap, of a sort of smaller customer base in terms of that cyclical timing of those large bulk orders. While when you look at sort of that third channel when we talk about online, again, a real cornerstone for us is Australia. Sorry, is Amazon US and Australia, contributing near half a million. Just off the evidence of what we've seen in this past quarter with improvements in logistics and opportunities in that market, we're expecting to be able to have another strong focus for our growth across the three channels. Moving on to how things look across the different markets. As we've sort of said, we've been a fantastic quarter here in Australia and really driven by that retail growth.

Speaker #1: Of a sort of smaller customer base in terms of that cyclical timing of those large bulk orders. While when you look at sort of that third channel when we talk about online, again, a real cornerstone for us is Australia sorry, is Amazon US and Australia.

Matthew Kowal: Sorry, is Amazon US and Australia, contributing near half a million. Just off the evidence of what we've seen in this past quarter with improvements in logistics and opportunities in that market, we're expecting to be able to have another strong focus for our growth across the three channels. Moving on to how things look across the different markets. As we've sort of said, we've been a fantastic quarter here in Australia and really driven by that retail growth.

Speaker #1: Contributing near half a million. And just off some evidence of what we've seen in this past quarter with improvements in logistics and opportunities in that market, we're expecting to be able to have another strong focus for our growth across the three channels.

Speaker #1: Moving on to how things look across the different markets. As we've sort of said, we've been a fantastic quarter here in Australia. And really driven by that retail growth.

Speaker #1: What it's done, again, is reflected what that means to the region, but also overall business. 45% of sales coming from retail for the whole business.

Matthew Cowell: What it's done, again, is reflected what that means to the region, but also overall business, 45% of sales coming from retail for the whole business. Also then how we take that blueprint, how we take that learning, not only to keep growing Australia, but where do we put it into application overseas. Which brings me to the United States. Still very much the key growth market that we see. When you take into the fact that it's contributed a strong 41% to total revenue, and that's based on e-commerce and what is quite an early-stage wholesale business, and customer base that we've built. Given the blueprint that I just spoke about with Fiji Kava in Australia, we've taken those first steps into US retail developments. We've aligned with an experienced retail broker who's specifically got experience with some Kava and Kava brands.

Matthew Kowal: What it's done, again, is reflected what that means to the region, but also overall business, 45% of sales coming from retail for the whole business. Also then how we take that blueprint, how we take that learning, not only to keep growing Australia, but where do we put it into application overseas. Which brings me to the United States. Still very much the key growth market that we see.

Speaker #1: But also then how we take that blueprint, how we take that learning not only to keep growing Australia, but where do we put it into application?

Speaker #1: Overseas. Which brings me to the United States. Still very much the key growth market that we see. When you take into the fact that it's contributed a strong 45 41% to total revenue.

Matthew Kowal: When you take into the fact that it's contributed a strong 41% to total revenue, and that's based on e-commerce and what is quite an early-stage wholesale business, and customer base that we've built. Given the blueprint that I just spoke about with Fiji Kava in Australia, we've taken those first steps into US retail developments. We've aligned with an experienced retail broker who's specifically got experience with some Kava and Kava brands.

Speaker #1: And that's based on e-commerce, and what is quite an early stage wholesale business, and customer base that we've built. Given the blueprint that I just spoke about with Fiji carbon in Australia, we've taken those first steps into US retail developments.

Speaker #1: We've aligned with an experienced retail broker who's specifically got experience with some carbon and carbon brands. And we'll be looking to sort of put that into full action coming the next financial year or this current one FY27.

Matthew Cowell: We'll be looking to sort of put that into full action coming the next financial year or this current one, FY27. While Fiji and Pacific still very much remains important to us from a visibility point of view and that storytelling and that authenticity to our brands, and obviously where we're based from a factory point of view and I think reflecting on what Zane said, what we come out of this financial year with is three distinct channels now. If you look at the revenue across the last two quarters, we've seen significant revenue in each of these channels. Now we've got a strength across each that's going to allow us then to work into FY27 with each of these, with their own opportunities with significant growth. When you look at the three, retail, again, led strongly by Australia.

Matthew Kowal: We'll be looking to sort of put that into full action coming the next financial year or this current one, FY27. While Fiji and Pacific still very much remains important to us from a visibility point of view and that storytelling and that authenticity to our brands, and obviously where we're based from a factory point of view and I think reflecting on what Zane said, what we come out of this financial year with is three distinct channels now.

Speaker #1: While Fiji and Pacific still very much remains important to us from a visibility point of view and that storytelling and that authenticity to our brands.

Speaker #1: And obviously where we're based from a factory point of view and. I think reflecting on what Zayn said, what we come out of this financial year with is three distinct channels now.

Speaker #1: And you can look at the revenue across the last two quarters. We've seen significant revenue in each of these channels. So now we've got a strength across each that's going to allow us then to work into FY27 with each of these with its own opportunities with significant growth.

Matthew Kowal: If you look at the revenue across the last two quarters, we've seen significant revenue in each of these channels. Now we've got a strength across each that's going to allow us then to work into FY27 with each of these, with their own opportunities with significant growth. When you look at the three, retail, again, led strongly by Australia.

Speaker #1: When you look at the three retail, again, led strongly by Australia. Looking at that broader market access now when we talk about the fizzes or basically the effervescent micro tablets.

Matthew Cowell: Looking at that broader market access now when we talk about the FZZR or the basically the effervescent micro tablets, as well as understanding how the category in itself is growing from powders through to the flavored version, and how that will cycle back into creating its own sort of funnel and growth. Then how we replicate that. When you consider in this quarter, we've got the successful calls for the effervescent tablets called FZZR, along with agreeing to brokerage partners both in New Zealand and the US. It really sets a strong platform for where retail goes forward. Online, again, remains a really significant channel for us, both in engagement, but as in volume and growth, particularly while the other two are kind of growing and looking to mature.

Matthew Kowal: Looking at that broader market access now when we talk about the FZZR or the basically the effervescent micro tablets, as well as understanding how the category in itself is growing from powders through to the flavored version, and how that will cycle back into creating its own sort of funnel and growth.

Speaker #1: As well as understanding how the category in itself is growing from powders through to the flavored version. And how that'll cycle back into creating its own sort of funnel and growth.

Speaker #1: And then how we replicate that. So when you're considering this quarter, we've already signed up for we've got the success through Coles for the effervescent tablets called fizzes.

Matthew Kowal: Then how we replicate that. When you consider in this quarter, we've got the successful calls for the effervescent tablets called FZZR, along with agreeing to brokerage partners both in New Zealand and the US. It really sets a strong platform for where retail goes forward. Online, again, remains a really significant channel for us, both in engagement, but as in volume and growth, particularly while the other two are kind of growing and looking to mature.

Speaker #1: Along with agreeing to brokerage partners both in New Zealand and the US. It really sets a strong platform for where retail goes forward. Online, again, remains a really significant channel for us.

Speaker #1: Both in engagement, but it is in volume and growth, particularly while the other two are kind of growing and looking to mature. What we're really focused on this quarter is driving those efficiencies and effectiveness.

Matthew Cowell: What we're really focused on this quarter, is driving those efficiencies and effectiveness, and that's underpinned that drop in overall spend while trying to maintain the revenue and also the look to move back to Shopify in early Q1 FY27 as they are being identified where we're going to get just better efficiencies and better effectiveness and conversions with our customers. Lastly, on the three channels, we're looking at wholesale. All very excited about what we've already created here, the amount of engagement that we're getting in market, and building on those pipelines. There's a lot of focus in terms of building those what are long conversations, but long life partnerships.

Matthew Kowal: What we're really focused on this quarter, is driving those efficiencies and effectiveness, and that's underpinned that drop in overall spend while trying to maintain the revenue and also the look to move back to Shopify in early Q1 FY27 as they are being identified where we're going to get just better efficiencies and better effectiveness and conversions with our customers. Lastly, on the three channels, we're looking at wholesale. All very excited about what we've already created here, the amount of engagement that we're getting in market, and building on those pipelines.

Speaker #1: And that's underpinned that drop in overall spend while trying to maintain the revenue. And also the look to move back to Shopify in early Q1.

Speaker #1: FY27, as they are being identified where we're going to get just better efficiencies and better effectiveness and conversions with our customers. Lastly, on the three channels, we're looking at wholesale.

Speaker #1: All very excited about what we've already created here. But the amount of engagement that we're getting in market and building on those pipelines there's a lot of focus in terms of building those what are long conversations but long life partnerships.

Matthew Kowal: There's a lot of focus in terms of building those what are long conversations, but long life partnerships. We've seen the revenue this quarter, significant but down, and a lot of that really is just straight reflected by the cyclical kind of orders that come with customers, which really just sort of means our focus is bringing in a broader range of customers and expanding that small but ongoing base. Spending a bit of time here on the retail.

Speaker #1: We've seen the revenue this quarter significant but down. And a lot of that really is just straight reflected by the cyclical kind of orders that come with customers which really just sort of means our focus is bringing in a broader range of customers and expanding that small but ongoing base.

Matthew Cowell: We've seen the revenue this quarter, significant but down, and a lot of that really is just straight reflected by the cyclical kind of orders that come with customers, which really just sort of means our focus is bringing in a broader range of customers and expanding that small but ongoing base. Spending a bit of time here on the retail. I guess what we see in Australia with that jump recently, based on the fact it's just starting to get all those things in place that we want, that mainstream adoption. First of all, on the powders that we have in place, but also the agreement of the ranging of the effervescent tablets, creating not only an opportunity to sell the main powder product, but creating almost a funnel for people to come in and experience the benefits of kava.

Speaker #1: Spending a bit of time here on the retail. And I guess what we see in Australia with that jump recently, based on the fact of just starting to get all those things in place that we want that mainstream adoption first of all on the powders that we have in place, but also the agreement of the ranging of the effervescent tablets.

Matthew Kowal: I guess what we see in Australia with that jump recently, based on the fact it's just starting to get all those things in place that we want, that mainstream adoption. First of all, on the powders that we have in place, but also the agreement of the ranging of the effervescent tablets, creating not only an opportunity to sell the main powder product, but creating almost a funnel for people to come in and experience the benefits of kava.

Speaker #1: Creating not only an opportunity to sell the main powder product, but creating almost a funnel for people to come in and experience the benefits of carbon and then as we see in a lot of our product purchase both online and in retail, they will generally then move into buying the bigger bulk of powders.

Matthew Cowell: As we see in a lot of our product purchase, both online and in retail, they will generally then move into buying the bigger bulk powders. It's actually expanding the funnel opportunity we have in retail and really allowing retail to do what a key job for us is, and that is that ability for people to trial. That awareness and trial. Along with just constant improvements with our powder supplier and really nailing down on finding the right price. It's been reflected over the last 12 months where we've had 2 price rises in retail, yet continue to be a leader in that stress category as people see value in what kava delivers to what their needs are.

Matthew Kowal: As we see in a lot of our product purchase, both online and in retail, they will generally then move into buying the bigger bulk powders. It's actually expanding the funnel opportunity we have in retail and really allowing retail to do what a key job for us is, and that is that ability for people to trial. That awareness and trial. Along with just constant improvements with our powder supplier and really nailing down on finding the right price. It's been reflected over the last 12 months where we've had 2 price rises in retail, yet continue to be a leader in that stress category as people see value in what kava delivers to what their needs are.

Speaker #1: So it's actually expanding the funnel opportunity we have in retail. And really allowing retail to do what a key job for us is and that is that abilities for people to trial that awareness and trial.

Speaker #1: Along with just constant improvements with our supplier and really nailing down on finding the right price and it's been reflected over the last 12 months where we've had two price rises in retail yet continue to be.

Speaker #1: A leader in that stress category as people see value in what carbon delivers to what their needs are. The key part here in what we're seeing in the US and why we're excited with this blueprint, but also spending some considered time and how we roll it out, is the US is starting to see significant brands move into that space.

Matthew Cowell: The key part here in what we're seeing in the US and why we're excited with this blueprint, but also spending some considered time in how we roll it out is, the US is starting to see significant brands move into that space. We talk about Leilo, Kavahana, and another range of four or five others that have already got penetration into retail. There is a familiarity with kava, and now there's an opportunity for us to take our learnings from AU and execute it in those bigger markets over in the US. The last part was just understanding here, before I pass on to Zane, is the opportunity that comes with wholesale. As I said, from a very early on channel for us, and also very early on products. Our kava extracts are already carving out a significant part in our revenue.

Matthew Kowal: The key part here in what we're seeing in the US and why we're excited with this blueprint, but also spending some considered time in how we roll it out is, the US is starting to see significant brands move into that space. We talk about Leilo, Kavahana, and another range of four or five others that have already got penetration into retail. There is a familiarity with kava, and now there's an opportunity for us to take our learnings from AU and execute it in those bigger markets over in the US.

Speaker #1: We talk about the Laylos, the Carbon Havens, and another range of four or five others that have already got penetration into retail. So there is a familiarity with carbon and now there's an opportunity for us to take our learnings from AU and execute it in those bigger markets over in the US.

Speaker #1: The last part was just understanding here before I pass on to Zayn is the opportunity that comes with wholesale and as I said from a very early on channel for us.

Matthew Kowal: The last part was just understanding here, before I pass on to Zane, is the opportunity that comes with wholesale. As I said, from a very early on channel for us, and also very early on products. Our kava extracts are already carving out a significant part in our revenue. This will only continue to grow and as will the value of their margin that they bring into the business.

Speaker #1: And also very early on product our carbon extracts are already carving out a significant part in our revenue. This will only continue to grow and as will the value of their margin that they bring into the business.

Matthew Cowell: This will only continue to grow and as will the value of their margin that they bring into the business. Our key alignments with businesses like Kaiming and our other processors allow us to expand that range and provide a range that the market is ever-growing and ever-wanting. We're seeing both US, and broader interest in extracts products, where kava is seen as a product that is on growth, while other areas such as CBD and THC are seeing challenges in terms of how they're addressed and regulated, particularly in the US. Zane, I'll pass back over to you.

Speaker #1: Our key alignments with businesses like Kaiming and our other processes allow us to expand that range and provide a range that the market is ever growing and ever wanting.

Matthew Kowal: Our key alignments with businesses like Kaiming and our other processors allow us to expand that range and provide a range that the market is ever-growing and ever-wanting. We're seeing both US, and broader interest in extracts products, where kava is seen as a product that is on growth, while other areas such as CBD and THC are seeing challenges in terms of how they're addressed and regulated, particularly in the US. Zane, I'll pass back over to you.

Speaker #1: We're seeing both US and broader interest in extracts products where carbon is seen as a product that is on growth while other areas such in CBD and THC are seeing challenges in terms of how they're addressed and regulated, particularly in the US.

Speaker #1: Zayn, I'll pass back over to you.

Speaker #2: Thank you, Matt. Yeah, it's exciting. And let's touch on the US opportunity and I guess what we're seeing as the key drivers for adoption of carbon versus THC, CBD in the Q&A part of the webinar, Matt.

Zane Yoshida: Thank you, Matt. Yeah, it's exciting. Let's touch on the US opportunity and I guess what we're seeing as the key drivers for adoption of kava versus THC, CBD, in the Q&A part of the webinar, Matt.

Speaker #2: I think it's really important. So improving cash performance and disciplined spend, cash on hand was 633K for the end of June. 1.88 million up 15% quarter and quarter with our cash receipts.

Matthew Cowell: Absolutely.

Matthew Kowal: Absolutely.

Zane Yoshida: I think it's really important.

Matthew Cowell: Yeah.

Matthew Kowal: Yeah.

Zane Yoshida: Economically, improving cash performance and disciplined spend. Cash on hand was AUD 633,000 for the end of June. AUD 1.88 million, up 15% quarter-on-quarter with our cash receipts. Inventory maintained stable at AUD 1.5 million, which include prepaid inventory. Net operating cash flow was down 9% for the quarter. Again, I touched on in the starting slide, the advertising marketing spend across the business was down circa 31% quarter-on-quarter. Staff costs remained stable for the quarter. We did report a decrease in staff costs of 5% last quarter and additional 4% in the previous quarter as well. Of course, with the proposed arrangements out of Fiji, we should see additional savings in the coming months in relation to this as well. Thank you, Matt.

Speaker #2: Inventory maintained stable at 1.5 million, which include prepaid inventory. Net operating cash flow was down 9% for the quarter. Again, I touched on in the starting slide the advertising marketing spend across the business was down circa 30%, 31% quarter on quarter.

Zane Yoshida: Again, I touched on in the starting slide, the advertising marketing spend across the business was down circa 31% quarter-on-quarter. Staff costs remained stable for the quarter. We did report a decrease in staff costs of 5% last quarter and additional 4% in the previous quarter as well. Of course, with the proposed arrangements out of Fiji, we should see additional savings in the coming months in relation to this as well. Thank you, Matt.

Speaker #2: Staff quarter costs remained stable for the quarter. We did report a decrease in staff costs of 5% last quarter and an additional 4% in the previous quarter as well.

Speaker #2: And of course, with the proposed arrangements out of Fiji, we should see additional savings in the coming months in relation to this as well.

Speaker #2: Thank you, Matt.

Speaker #1: The other one is really input cost recovery. And I can touch on this with Matt and what that meant in terms of decision making at retail coming into January we saw given the reliance on Fiji source material predominantly given that we were selling Fiji carbon branded products across retail in Australia.

Zane Yoshida: The other one is really input cost recovery, I can touch on this with Matt and what that meant in terms of decision-making at retail. Coming into January, we saw, given the reliance on Fiji-sourced material, predominantly given that we were selling Fiji Kava branded products across retail in Australia, any increase in raw material prices out of Fiji. Of course, given the conversations that we need to have with retail partners such as Coles and Woolworths, the process for price review goes to a committee. They require a lot of supporting information, both from Fiji government and suppliers, to arrive on an agreement to increase prices with the ask that we have or come to a middle ground with that negotiation as well. That process typically takes five months or so.

Speaker #1: Any increase in raw material prices out of Fiji? And of course, given the conversations that we need to have with retail partners such as Coles and Woolworths, the process for price review goes to a committee they require a lot of supporting information both from Fiji government and suppliers to arrive on a agreement to increase prices with the ask that we have or come to a middle ground with that negotiation as well.

Zane Yoshida: Of course, given the conversations that we need to have with retail partners such as Coles and Woolworths, the process for price review goes to a committee. They require a lot of supporting information, both from Fiji government and suppliers, to arrive on an agreement to increase prices with the ask that we have or come to a middle ground with that negotiation as well. That process typically takes five months or so.

Speaker #1: That process typically takes five months or so. So we were in fact able to agree with both Coles and Woolworths to ensure we were able to increase prices at retail midway through May.

Zane Yoshida: We were in fact able to agree with both Coles and Woolworths to ensure we were able to increase prices at retail midway through May, and subsequently also increase prices across the direct-to-consumer channels for price parity in that regard. The recovery was really tied to retail. We now have price increases from mid-May right across our channels to support stronger margins through direct consumer as well as retail. Of course, we've been able to secure additional regional supply as I communicated earlier. Thank you, Matt. I guess I always like to speak to the importance of the regulatory framework that we are working within, particularly here in Australia and the United States as our two key markets. In Australia currently, we have two pathways to be able to sell kava.

Speaker #1: And subsequently also increase prices across the direct-to-consumer channels for price parity in that regard. So the recovery was really tied to retail. We now have price increases from mid-May right across our channels.

Speaker #1: To support stronger margins through direct-to-consumer as well as retail. And of course, we've been able to secure additional regional supply as our communicated earlier.

Zane Yoshida: Of course, we've been able to secure additional regional supply as I communicated earlier. Thank you, Matt. I guess I always like to speak to the importance of the regulatory framework that we are working within, particularly here in Australia and the United States as our two key markets. In Australia currently, we have two pathways to be able to sell kava.

Speaker #1: Thank you, Matt. So I guess I always like to speak to the importance of the regulatory framework that we are working within particularly here in Australia and the United States as our two key markets.

Speaker #1: In Australia currently, we have two pathways to be able to sell carbon. The first pathway is through the commercial pilot trial that has been ongoing since December 2021 whereby we are able to bring in carbon we process in Fiji it clears the border and is subsequently regulated through food standards Australia New Zealand standard 2.6.3 as a food.

Zane Yoshida: The first pathway is through the commercial pilot trial that has been ongoing since December 2021, whereby we are able to bring in kava we process in Fiji. It clears the border and is subsequently regulated through Food Standards Australia New Zealand Standard 2.6.3 as a food. The challenge with the food standard regulation is we are only able to sell traditional formats that we sell through Coles and Woolworths, like communicated again earlier, have done extremely well, and are now number one and number three respectively for the whole of Australia in the stress category. The challenge with kava, as most of you will know, is it is a very earthy, unique taste. Certainly, I have no issues with the taste of kava because I've been drinking it for close to 40 years.

Speaker #1: The challenge with the food standard regulation is we are only able to sell traditional formats that we sell through Coles and Woolworths. Like communicated again earlier, have done extremely well and are now number one and number three respectively for the whole of Australia and express category.

Speaker #1: The challenge with carbon as most of you will know is it is a very earthy unique taste. Certainly I have no issues with the taste of carbon because I've been drinking it for close to 40 years.

Zane Yoshida: The challenge with kava, as most of you will know, is it is a very earthy, unique taste. Certainly, I have no issues with the taste of kava because I've been drinking it for close to 40 years. For target consumers here in Australia, in the United States and beyond, it is a very challenging taste. The second pathway to bring kava into Australia is as a complementary medicine, which simply means that it is regulated not by Food Standards Australia New Zealand, but it's regulated by the Therapeutic Goods Administration.

Speaker #1: But for target consumers here in Australia and the United States and beyond, it is a very challenging taste. So the second pathway to bring carbon to Australia is as a complementary medicine.

Zane Yoshida: For target consumers here in Australia, in the United States and beyond, it is a very challenging taste. The second pathway to bring kava into Australia is as a complementary medicine, which simply means that it is regulated not by Food Standards Australia New Zealand, but it's regulated by the Therapeutic Goods Administration. The difference being that we need to— Well, let me talk about the format. You can only sell tablet and capsule formats as well as teabags as a complementary medicine, but it needs to be a standardized dose of the active constituents in kava, which are your kavalactones. The recommended daily dose by the TGA and the FDA, around 240 milligrams of the active constituents on a daily basis.

Speaker #1: Which simply means that it is regulated not by food standards Australia New Zealand, but it's regulated by the therapeutic goods administration. And the difference being that we need to well, let me talk about the format.

Zane Yoshida: The difference being that we need to— Well, let me talk about the format. You can only sell tablet and capsule formats as well as teabags as a complementary medicine, but it needs to be a standardized dose of the active constituents in kava, which are your kavalactones. The recommended daily dose by the TGA and the FDA, around 240 milligrams of the active constituents on a daily basis.

Speaker #1: So you can only sell tablet and capsule formats as well as tea bags as a complementary medicine. But it needs to be a standardized dose of the active constituents in carbon which are your carbon lactose.

Speaker #1: And the recommended daily dose by the TGA and the FDA around 240 milligrams of the active constituents on a daily basis. And this is really supported by clinical trial evidence that was done here in Australia with the University of Melbourne, University of Queensland, University of Western Sydney around the safety and efficacy of water extracts for targeting generalized anxiety disorders for instance.

Zane Yoshida: This is really supported by clinical trial evidence that was done here in Australia with the University of Melbourne, University of Queensland, Western Sydney University, around the safety and efficacy of water extracts for targeting generalized anxiety disorders, for instance. Given the success with these clinical trials, they arrived at the recommended daily dose levels. The way we've been able to bring FZZRs into the market is via the second pathway, which I discussed, as a complementary medicine. The FZZRs are in fact micro tablets. If you're familiar with Berocca, for instance, as a format on the shelves of Coles or Chemist Warehouse, it is using the same concept that those Berocca tablets are in fact complementary medicines with TGA oversight. It would have a standardized dose of vitamin C or whatever else that Berocca put into that formula.

Speaker #1: And given the success with these clinical trials, they arrived at the recommended daily dose levels so the way we've been able to bring fizzes into the market is via the second pathway which I discussed as a complementary medicine.

Zane Yoshida: The way we've been able to bring FZZRs into the market is via the second pathway, which I discussed, as a complementary medicine. The FZZRs are in fact micro tablets. If you're familiar with Berocca, for instance, as a format on the shelves of Coles or Chemist Warehouse, it is using the same concept that those Berocca tablets are in fact complementary medicines with TGA oversight. It would have a standardized dose of vitamin C or whatever else that Berocca put into that formula.

Speaker #1: So the fizzes are in fact micro tablets if you're familiar with Baraka for instance as a format on the shelves of Coles or Chemist Warehouse.

Speaker #1: It is using the same concept that those Baraka tablets are in fact complementary medicines with TGA oversight. So it would have a standardized dose of vitamin C or whatever else that Baraka put into that formula.

Speaker #1: And with the fizzes, we have standardized dose per stick pack or per sachet equivalent to half the recommended daily dose with the TGA. However, I will do a little demonstration during our Q&A on what these look like.

Zane Yoshida: With the FZZR, we have standardized dose per stick pack or per sachet, equivalent to half the recommended daily dose with the TGA. However, I will do a little demonstration during our Q&A on what these look like from a dissolvability perspective. I won't be able to share with all of you the taste, but I can certainly assure you that based on the feedback received thus far, it is fantastic. The importance with Australia is given Australia is part of Pacific Islands Forum Secretariat. Pacific Islands Forum Secretariat, known as PIFS, is based out of Suva in Fiji, but it represents all regional governments in the South Pacific. It also has participation by Australia and New Zealand, alongside all Pacific Island countries. In 2024 in Tonga, the Pacific heads of government committed to a regional kava development strategy.

Speaker #1: From a dissolvability perspective, I won't be able to share with all of you the taste, but I can certainly assure you that based on the feedback received thus far, it is a fantastic.

Speaker #1: The importance with Australia is given Australia is part of Pacific Island Farm Secretariat. Pacific Island Farm Secretariat known as PIFS is based out of Suva and Fiji, but it represents all regional governments in the South Pacific.

Zane Yoshida: The importance with Australia is given Australia is part of Pacific Islands Forum Secretariat. Pacific Islands Forum Secretariat, known as PIFS, is based out of Suva in Fiji, but it represents all regional governments in the South Pacific. It also has participation by Australia and New Zealand, alongside all Pacific Island countries. In 2024 in Tonga, the Pacific heads of government committed to a regional kava development strategy.

Speaker #1: It also has participation by Australia and New Zealand alongside all Pacific Island countries. So in 2024 in Tonga, the Pacific heads of government committed to a regional carbon development strategy.

Speaker #1: And what that means is the growing the processing and subsequent export of noble carbon grown right across the Pacific Island countries will be harmonized.

Zane Yoshida: What that means is the growing, the processing, and subsequent export of noble kava grown right across the Pacific Island countries will be harmonized. We are working towards one common standard for noble kava right across the Pacific at the moment. The progress with that is good in the sense that recognizing the commitment by the Pacific heads of government to regionalize and standardize kava through the Department of Foreign Affairs and Trade, and Standards Australia. They have now supported the establishment of a technical committee to develop standards for kava when mixed with water, as well as some consideration for expansion beyond that to extract formats. We are part of the technical committee, and we had our first inaugural meeting in Sydney in April this year. It is very important in the sense that we need to have a quality framework.

Speaker #1: So we are working towards one common standard for noble carbon right across the Pacific at the moment. So the progress with that is good in the sense that recognizing the commitment by the Pacific heads of government to regionalize and standardize carbon through the Department of Foreign Affairs and Trade and standards Australia they have now supported the establishment of a technical committee to develop standards for carbon when mixed with water as well as some consideration for expansion beyond that to extract formats.

Zane Yoshida: They have now supported the establishment of a technical committee to develop standards for kava when mixed with water, as well as some consideration for expansion beyond that to extract formats. We are part of the technical committee, and we had our first inaugural meeting in Sydney in April this year. It is very important in the sense that we need to have a quality framework.

Speaker #1: We are part of the technical committee and we had our first inaugural meeting in Sydney in April this year. So it's very important in the sense that we need to have a quality framework.

Speaker #1: We need to have standards which again is recognized through potential expansion with existing regional quality standards such as Codex Alimentarius that has been in place now since 2017.

Zane Yoshida: We need to have standards, which again, is recognized through potential expansion with existing regional quality standards such as Codex Alimentarius, that has been in place now since 2017. Codex Alimentarius is the World Health Organization and the Food and Agriculture Organization with an overarching umbrella to ensure that we work within a certain framework of recognizing what's noble kava, what's not noble kava, and some of the quality parameters that exporters need to consider as it relates to foreign matter, as it relates to moisture content, ash content, so on and so forth. It is very good that the Australian government's now getting behind this in that sense, to ensure that we are working towards standards recognizing the commitment by Pacific heads of government. In the United States, kava, when mixed with water, is recognized as a food.

Speaker #1: And Codex Alimentarius is the World Health Organization and the Food and Agricultural Organization. With an overarching umbrella to ensure that we work within a certain framework of recognizing what's noble carbon, what's not noble carbon, and some of the quality parameters that exporters need to consider as it relates to foreign matter as it relates to moisture content ash content so on and so forth.

Speaker #1: So it's very good that the Australian governments now are getting behind this in that sense. To ensure that we are working towards a standards recognizing the commitment by Pacific heads of government.

Zane Yoshida: It is very good that the Australian government's now getting behind this in that sense, to ensure that we are working towards standards recognizing the commitment by Pacific heads of government. In the United States, kava, when mixed with water, is recognized as a food. We've seen the state of Hawaii in November 2024 also move to recognize kava when mixed with water under GRAS, which is generally recognized as safe, which is the first state to do this in the United States.

Speaker #1: In the United States, carbon when mixed with water is recognized as a food. We've seen the state of Hawaii in November 2024 also move to recognize carbon when mixed with water under grass which is generally recognized as safe, which is the first state to do this in the United States.

Zane Yoshida: We've seen the state of Hawaii in November 2024 also move to recognize kava when mixed with water under GRAS, which is generally recognized as safe, which is the first state to do this in the United States. I was in the US in May this year with our Chairman, James Tonkin, at the Natural Products Association Fly-In Day with meetings in Washington. We had the opportunity to also present to the FDA during that time on the progress with the quality frameworks that have been put in place right across the South Pacific, and what The Calmer Co. is doing to support that initiative, but also lead that initiative in certain aspects.

Speaker #1: I was in the US in May this year with our chairman James Tonkin at the Natural Products Association fly in day with meetings in Washington.

Zane Yoshida: I was in the US in May this year with our Chairman, James Tonkin, at the Natural Products Association Fly-In Day with meetings in Washington. We had the opportunity to also present to the FDA during that time on the progress with the quality frameworks that have been put in place right across the South Pacific, and what The Calmer Co. is doing to support that initiative, but also lead that initiative in certain aspects.

Speaker #1: And we had the opportunity to also present to the FDA during that time on the progress with the quality frameworks that have been put in place right across the South Pacific and what the carbon code is doing to support that initiative but also lead that initiative in certain aspects.

Speaker #1: So again, the whole vertical integration the whole supply chain, the quality control associated with that is very important given the ongoing work to bring carbon back to the forefront and recognition not just in the Pacific, not just in the USA, Canada, or New Zealand, but internationally.

Zane Yoshida: Again, the whole vertical integration, the whole supply chain, the quality control associated with that is very important given the ongoing work to bring kava back to the forefront and recognition, not just in the Pacific, not just in the USA, Canada, or New Zealand, but internationally. The other regulation for kava in the United States, or category I should say, is as a dietary supplement. When you mix kava with flavors, when you mix kava with other ingredients, it then is regulated as a dietary supplement in the USA. Certainly, there's more modernization work that the FDA are considering, particularly with the ongoing work that we're doing in Australia and the Pacific with the harmonization of kava, the standards that we're looking to put in place. The FDA are part of the quad member countries with Codex Alimentarius, which include Australia, New Zealand, Canada, and the US.

Speaker #1: The other regulation for carbon in the United States or category I should say is as a dietary supplement. So when you mix carbon with flavors, when you mix carbon with other ingredients, it then is regulated as a dietary supplement in the USA.

Speaker #1: Certainly there's more modernization work that the FDA are considering. Particularly with the ongoing work that we're doing in Australia and the Pacific with the harmonization of carbon, the standards that we're looking to put in place.

Zane Yoshida: Certainly, there's more modernization work that the FDA are considering, particularly with the ongoing work that we're doing in Australia and the Pacific with the harmonization of kava, the standards that we're looking to put in place. The FDA are part of the quad member countries with Codex Alimentarius, which include Australia, New Zealand, Canada, and the US.

Speaker #1: The FDA are part of the quad member countries with Codex Alimentarius. Which include Australia, New Zealand, Canada, and the US. So they certainly have oversight and participation in that regard.

Zane Yoshida: They certainly have oversight and participation in that regard with the ongoing work that we continue to do there. It's very important, like I've communicated previously, the importance of building a strong foundation for scale. Given the controversy historically with kava, particularly out of Germany, given the successes and adoption as a prescription medicine in Germany over so many years, and the subsequent ban that led to the kava market collapsing in the South Pacific going back to 2002, and kava being tarnished because of that. The ongoing work to lobby governments based on a strong quality framework that we put in place now, and continue to put in place across the Pacific, is rebuilding confidence on kava's safety and efficacy, and ensuring that we have traceability as well of that ingredient going into finished products and subsequent brands and onto shelves across various channels.

Speaker #1: With the ongoing work that we continue to do there. And it's very important like I've communicated previously, the importance of building a strong foundation for scale given the controversy historically with carbon particularly out of Germany given the successes and adoption as a prescription medicine in Germany over so many years and the subsequent ban that led to the carbon market collapsing in the South Pacific going back to 2002.

Speaker #1: And carbon being tarnished because of that. The ongoing work to lobby governments based on a strong quality framework that we put in place now and continue to put in place across the Pacific is rebuilding confidence on carbon's safety and efficacy.

Zane Yoshida: The ongoing work to lobby governments based on a strong quality framework that we put in place now, and continue to put in place across the Pacific, is rebuilding confidence on kava's safety and efficacy, and ensuring that we have traceability as well of that ingredient going into finished products and subsequent brands and onto shelves across various channels.

Speaker #1: And ensuring that we have traceability as well of that ingredient going into finished products and subsequent brands and onto shelves across various channels. The international work I've touched on Codex and that framework as the overarching umbrella from a regulatory perspective certainly from a TIFS Pacific Island Farm Secretariat perspective they continue to work on two things.

Zane Yoshida: The international work, I've touched on Codex and that framework as the overarching umbrella from a regulatory perspective. Certainly from a PIFS, Pacific Islands Forum Secretariat perspective, they continue to work on two things. One is market access for kava, reentering and reopening borders in Europe and the United Kingdom. They also continue to work on what's called geographical indication to ensure that kava is recognized as something unique to the South Pacific, given its history, its cultural importance to Pacific Island countries as well. Given the resurgence of interest and demand in areas in which we operate in the United States particularly, it's important to have that recognition as kava or Piper methysticum, as it's known as being unique to the South Pacific and protecting that. Similar to what champagne is. Champagne has provenance unique to Champagne in France. Similar thing that we're doing.

Speaker #1: One is a market access for carbon reentering and reopening borders in Europe and the United Kingdom. But they also continue to work on what's called geographical indication to ensure that carbon is recognized as something unique to the South Pacific given its history, its cultural importance to Pacific Island countries as well.

Zane Yoshida: They also continue to work on what's called geographical indication to ensure that kava is recognized as something unique to the South Pacific, given its history, its cultural importance to Pacific Island countries as well. Given the resurgence of interest and demand in areas in which we operate in the United States particularly, it's important to have that recognition as kava or Piper methysticum, as it's known as being unique to the South Pacific and protecting that. Similar to what champagne is. Champagne has provenance unique to Champagne in France.

Speaker #1: And given the resurgence of interest and demand in areas in which we operate in the United States particularly it's important to have that recognition as carbon or piper metisticum as it's known as being unique to the South Pacific and protecting that.

Speaker #1: So similar to what champagne is. Champagne has provenance unique to champagne. In France. So similar thing that we're doing. And of course a more enabling regulatory environment across Australia, the US, and internationally.

Zane Yoshida: Similar thing that we're doing. Of course, a more enabling regulatory environment across Australia, the US, and internationally opens up our distribution opportunities, right? I know for a fact with Europe, for instance, the Pacific Islands Forum Secretariat and the working group behind market access have now been able to submit something called a novel food application for the EU government's consideration on reentry of kava into the European Union.

Zane Yoshida: Of course, a more enabling regulatory environment across Australia, the US, and internationally opens up our distribution opportunities, right? I know for a fact with Europe, for instance, the Pacific Islands Forum Secretariat and the working group behind market access have now been able to submit something called a novel food application for the EU government's consideration on reentry of kava into the European Union. Next slide. Thank you, Matt. The key focuses for us really is continuing to build on the building blocks around supply, manufacturing excellence, innovation capability that I spoke at length about in strategic pillar one. That really supports the quality, the consistency of our kava going into all our channels where we generate revenue for The Calmer Co.

Speaker #1: Opens up our distribution opportunities. So I know for a fact with Europe for instance the Pacific Island Forum Secretariat and the working group behind market access have now been able to submit something called a novel food application for the EU government's consideration on reentry of carbon into the European Union.

Speaker #1: Next slide. Thank you, Matt. So the key focuses for us really is continuing to build on the building blocks around supply manufacturing excellence, innovation capability, that I spoke at length about in strategic pillar one.

Zane Yoshida: Next slide. Thank you, Matt. The key focuses for us really is continuing to build on the building blocks around supply, manufacturing excellence, innovation capability that I spoke at length about in strategic pillar one. That really supports the quality, the consistency of our kava going into all our channels where we generate revenue for The Calmer Co.

Speaker #1: Because that really supports the quality the consistency of our carbon going into all our channels. Where we generate revenue for the carbon code. So I spoke to direct consumer including Amazon and our move back to a Shopify as a platform and rebuilding the direct consumer channel internally at the carbon code.

Zane Yoshida: I spoke to direct consumer, including Amazon, and our move back to Shopify as a platform and rebuilding the direct-to-consumer channel internally at The Calmer Co. Amazon continues to be very strong contribution to that revenue-generating engine. The other one, of course, is retail. Matt touched on the plans to expand given the success we've had here with Coles in Australia, as well as Woolworths here in Australia to the natural products channel potentially out of the US. Given the uptake of kava there, we'd be silly not to have a look at that. We've had brands that Matt mentioned, such as Leilo, for instance. Now the number one selling canned beverage format in the non-alcoholic category in Sprouts Farmers Market US-wide, for example. Just yesterday, I saw on BevNET, who review beverages globally.

Speaker #1: Amazon continues to be very strong contribution to that revenue generating engine. The other one of course is retail Matt touched on the plans to expand given the success we've had here with Coles in Australia as well as Woolworths here in Australia to the natural products channel potentially out of the USA.

Speaker #1: And given the uptake of carbon there would be silly not to have a look at that. We've had brands that Matt mentioned such as Laylo for instance now the number one selling canned beverage format in the non-alcoholic category in sprout supermarkets US wide for example.

Zane Yoshida: We've had brands that Matt mentioned, such as Leilo, for instance. Now the number one selling canned beverage format in the non-alcoholic category in Sprouts Farmers Market US-wide, for example. Just yesterday, I saw on BevNET, who review beverages globally. There's another brand called Kavahol, who have a liquor-style format in a 750 mL bottle that have been awarded for the second year running as the number one alcohol alternative in that category.

Speaker #1: Just yesterday I saw on BevNet who review beverages globally there's another brand called Carver Hall who have a liquor style format in a 750 mil bottle that have been awarded for the second year running as the number one alcohol alternative in that category.

Zane Yoshida: There's another brand called Kavahol, who have a liquor-style format in a 750 mL bottle that have been awarded for the second year running as the number one alcohol alternative in that category. We see a lot of strong momentum. We believe that there is still room to move in the Australian market. We are buoyed by the introduction of flavored kava fizzer formats shortly to complement the traditional drinking formats that we have there. With the price increases in Q4 FY2026 right across our pillars, that certainly helps with the acceleration towards cash flow breakeven for CCO. Lot of work, but a lot more ongoing work for CCO as we take next steps with a lot of the change in strategic direction.

Speaker #1: So we see a lot of strong momentum we believe that there is still room to move in the Australian market. We avoid by the introduction of flavored carbon fizzer formats shortly to complement the traditional drinking formats that we have there.

Zane Yoshida: We see a lot of strong momentum. We believe that there is still room to move in the Australian market. We are buoyed by the introduction of flavored kava fizzer formats shortly to complement the traditional drinking formats that we have there. With the price increases in Q4 FY2026 right across our pillars, that certainly helps with the acceleration towards cash flow breakeven for CCO. Lot of work, but a lot more ongoing work for CCO as we take next steps with a lot of the change in strategic direction.

Speaker #1: And with a price increases in Q4 FY 26 right across our pillars that certainly helps with the acceleration towards cash flow break even for CCO.

Speaker #1: A lot of work but a lot more ongoing work for CCO as we take next steps with a lot of the change in strategic direction but again building revenue and managing risk along supply chain but also where we generate revenue from in this business right across all the three pillars that I've spoken to.

Zane Yoshida: Again, building revenue and managing risk along supply chain, but also where we generate revenue from in this business right across all the three pillars that I've spoken to. In Q3 FY2026, you can see how wholesale has grown from a very small number in FY2025, for example, to now a meaningful contribution ongoing from a quarter-to-quarter perspective. It may have dropped off to 16% contribution or 18% contribution for the quarter. Again, as we continue to layer the cake, so to speak, with building wholesale customers that Matt continues to work on, we should see wholesale come to the forefront and overtake retail and direct consumer, including Amazon.

Speaker #1: So in Q3 FY 26 you could see how wholesale has grown from a very small number in FY 25 for example to now a meaningful contribution ongoing from a quarter to quarter perspective.

Speaker #1: It may have dropped off to 16% contribution or 18% contribution for the quarter but again as we continue to layer the cake so to speak with building wholesale customers that Matt continues to work on we should see wholesale come to the forefront and overtake retail and direct consumer including Amazon and given the net contribution margin we're seeing through wholesale the fact that we don't have any direct selling advertising costs again that remains a key focus for CCO particularly with some of the decisions we've been making around the partnership out of Fiji and contract manufacturing partners that we have in Australia as well as India continuing to build strength and capability to support wholesale expansion in the coming months.

Zane Yoshida: Again, as we continue to layer the cake, so to speak, with building wholesale customers that Matt continues to work on, we should see wholesale come to the forefront and overtake retail and direct consumer, including Amazon. Given the net contribution margins we're seeing through wholesale, the fact that we don't have any direct selling advertising costs, again, that remains a key focus for CCO, particularly with some of the decisions we've been making around the partnership out of Fiji and contract manufacturing partners that we have in Australia as well as India.

Zane Yoshida: Given the net contribution margins we're seeing through wholesale, the fact that we don't have any direct selling advertising costs, again, that remains a key focus for CCO, particularly with some of the decisions we've been making around the partnership out of Fiji and contract manufacturing partners that we have in Australia as well as India. Continuing to build strength and capability to support wholesale expansion in the coming months. Thank you, Matt. Like I touched on, it's really ensuring that we have a strong, diversified base, right? We need to have strong foundations for scale, and I think we've been able to demonstrate that with the progress in wholesale, but also contributing to the quality framework and foundations that we're putting in place, not just in Fiji but right across the Pacific.

Zane Yoshida: Continuing to build strength and capability to support wholesale expansion in the coming months. Thank you, Matt. Like I touched on, it's really ensuring that we have a strong, diversified base, right? We need to have strong foundations for scale, and I think we've been able to demonstrate that with the progress in wholesale, but also contributing to the quality framework and foundations that we're putting in place, not just in Fiji but right across the Pacific.

Speaker #1: Thank you, Matt. So like I touched on it's really ensuring that we have a strong diversified base. We need to have strong foundations for scale and I think we've been able to demonstrate that with the progress in wholesale but also contributing to the quality framework and foundations that we're putting in place not just in Fiji but right across the Pacific.

Speaker #1: That's important to ensure that the carbon being exported out of the Pacific is the highest quality and ensuring that we have the traceability and transparency with that to support what we see as very strong demand certainly from a CAGR compound annual growth rate perspective it's estimated that carbon is growing at 14 to 16% per annum right through till 2033 and that number now has shifted from what we've reported previously at 5.6 billion in 2033 to now around 7 billion dollars and it is exciting but we need to ensure that we have a sustainable platform to draw from to support increasing demand across the business.

Zane Yoshida: That's important to ensure that the kava being exported out of the Pacific is the highest quality and ensuring that we have the traceability and transparency with that to support what we see as very strong demand. Certainly from a CAGR, compound annual growth rate perspective, it's estimated that kava is growing at 14% to 16% per annum right through till 2033. That number now has shifted from what we've reported previously at AUD 5.6 billion in 2033 to now around AUD 7 billion. It is exciting, but we need to ensure that we have a sustainable platform to draw from to support increasing demand across the business. I touched on the fact that retail contribution for this quarter was very strong. It would have been even stronger if we had increased prices at retail earlier in the quarter.

Zane Yoshida: That number now has shifted from what we've reported previously at AUD 5.6 billion in 2033 to now around AUD 7 billion. It is exciting, but we need to ensure that we have a sustainable platform to draw from to support increasing demand across the business. I touched on the fact that retail contribution for this quarter was very strong. It would have been even stronger if we had increased prices at retail earlier in the quarter.

Speaker #1: I touched on the fact that the retail contribution for this quarter is very strong. It would have been even stronger if we had increased prices at retail earlier in the quarter but certainly excited to see what's in store for Q1 FY 27 that's for sure, Matt.

Zane Yoshida: Certainly excited to see what's in store for Q1 FY 2027, that's for sure, Matt. The cash management, the customer receipts had increased for the quarter as well. Most importantly, we've been able to achieve these numbers cutting marketing advertising costs by 31% for the quarter. Yeah. Thank you, Matt. Let's move to Q&A. I think we don't have too many questions today. You might want to just check quickly, but I think let's talk to where the market is at, Matt.

Speaker #1: The cash management the customer receipts had increased for the quarter as well but most importantly we've been able to achieve these numbers cutting marketing advertising costs by 31% for the quarter.

Speaker #1: So yeah. Thank you, Matt. Let's move to Q&A. And I think we don't have too many questions today. You might want to just check quickly but I think let's talk to where the market is at Matt from a what's driving growth for carbon demand what we're seeing and then let's talk about the next steps in Australia with fizzes for example and I'll do I said I'll do a little demo so is what the fizzes will look like?

Zane Yoshida: I think we don't have too many questions today. You might want to just check quickly, but I think let's talk to where the market is at, Matt. Let's talk about what's driving growth for kava demand, what we're seeing. Then let's talk about the next steps in Australia with FZZR, for example, right? I said I'd do a little demo. Here's what the FZZR will look like.

Zane Yoshida: Let's talk about what's driving growth for kava demand, what we're seeing. Then let's talk about the next steps in Australia with FZZR, for example, right? I said I'd do a little demo.

Zane Yoshida: Here's what the FZZR will look like.

Speaker #2: There are a couple in your mouth straight in as well because it's a nice unique format.

Matthew Cowell: There are a couple in your mouth straight in as well because it's a nice unique format.

Matthew Kowal: There are a couple in your mouth straight in as well because it's a nice unique format.

Speaker #1: Of course. So you can chew these are what they look like little micro tablets. And you chew them. Nice little thing. But also this.

Zane Yoshida: Of course.

Matthew Cowell: with the-

Matthew Kowal: with the-

Zane Yoshida: You can chew. These are what they look like, little micro tablets. You chew them. Nice little zing. Also this. They dissolve and voila.

Zane Yoshida: You can chew. These are what they look like, little micro tablets. You chew them. Nice little zing. Also this. They dissolve and voila. You have flavored kava beverage format that we will have available in the Australian market. That's a very exciting development for CCO.

Speaker #1: So they dissolve. And a lot. Voila. You have flavored carbon beverage format that we will have available in the Australian market. So that's a very exciting development for CCO.

Zane Yoshida: You have flavored kava beverage format that we will have available in the Australian market. That's a very exciting development for CCO.

Speaker #1: Working in concert with Ryan Gorman and IMCD of course with this project. So the USA Matt we're now appointed V-Driven as our broker to expand retail presence out of the USA I guess what I'm seeing based on discussions that we continue to have with interest around the table is the farm bills for instance where they've been able to develop a very strong category with CBD and THC formats and a lot of brands have jumped onto that bandwagon and done really well.

Matthew Cowell: That's good.

Matthew Kowal: That's good.

Zane Yoshida: Working in concert with Ryan Gorman and IMCD, of course, with this project. The USA, Matt. We've now appointed Vdriven as our broker to expand retail presence out of the USA. I guess what I'm seeing, based on discussions that we continue to have with interests around the table, is the Farm Bill, for instance, where they've been able to develop a very strong category with CBD and THC formats, and a lot of brands have jumped onto that bandwagon and done really well. However, the constraint that's up ahead for a lot of these brands are this: the Farm Bill is likely to be reviewed unfavorably come November, and that's driving a lot of these companies to consider alternative ingredients. What else can you put in a beverage where when you drink it, you feel it, and you feel it almost immediately? That is kava.

Speaker #1: However the constraint that's up ahead for a lot of these brands are this the farm bill is likely to be a reviewed unfavorably come November and that's driving a lot of these companies to consider alternative ingredients.

Zane Yoshida: However, the constraint that's up ahead for a lot of these brands are this: the Farm Bill is likely to be reviewed unfavorably come November, and that's driving a lot of these companies to consider alternative ingredients. What else can you put in a beverage where when you drink it, you feel it, and you feel it almost immediately? That is kava.

Speaker #1: And what else can you put in a beverage when you drink it you feel it and you feel it almost immediately. That is carbon.

Speaker #1: You drink it you feel it. So we're seeing a lot of formulators a lot of companies now looking at carbon as in advance of this farm bill review for input into these beverage formats.

Zane Yoshida: You drink it, you feel it. We're seeing a lot of formulators, a lot of companies now looking at kava as in advance of this Farm Bill review, for input into these beverage formats. Existing brands that have meaningful market share in the United States in a non-alc category, now knocking on the door, considering how they can reformulate with kava as the key ingredient. That for me is exciting. In addition to what we spoke about with Gen Zers, in addition to what we've spoken about, given the therapeutic benefits that we know about with kava and what's driving that growth for CCO. What else are you seeing there, Matt, alongside all of these things?

Speaker #1: Existing brands that have meaningful market share in the United States in a non-alc category now knocking on the door considering how they can reformulate with carbon as the key ingredient.

Speaker #1: So that for me is exciting. In addition to what we spoke about with Gen Zs in addition to what we've spoken about given the therapeutic benefits that we know about with carbon and what's driving that growth for CCO.

Zane Yoshida: That for me is exciting. In addition to what we spoke about with Gen Zers, in addition to what we've spoken about, given the therapeutic benefits that we know about with kava and what's driving that growth for CCO. What else are you seeing there, Matt, alongside all of these things?

Speaker #1: So what else are you seeing there Matt alongside all of these things?

Speaker #2: Absolutely. I think I just have one getting forced by some regulatory changes and even you can throw the appropriate pressures coming in around as well.

Matthew Cowell: No, absolutely. I think just one getting forced by some regulatory changes and even you can throw the obviously appropriate pressures coming.

Matthew Kowal: No, absolutely. I think just one getting forced by some regulatory changes and even you can throw the obviously appropriate pressures coming.

Zane Yoshida: Moolah

Matthew Cowell: in around comp as well. You've got multiple layers of the market. Literally the retailers are looking for something to fill in a gap where they've had success with CBD or THC products. You've got brands looking to bring new alternatives in or straight swaps, then you've actually got the manufacturers, the extractors. They're going, Well, we need another ingredient. We've got this whole setup that's been built on farms and processing CBD, that is now potentially either going to come to a very not full grinding halt, but a massively restricted market or a completely repatented way they take to market on what that means for a CBD drink. Everyone suddenly go, What's the alternative that can fit that? I think kava is in a great place to fit into that.

Matthew Kowal: in around comp as well. You've got multiple layers of the market. Literally the retailers are looking for something to fill in a gap where they've had success with CBD or THC products. You've got brands looking to bring new alternatives in or straight swaps, then you've actually got the manufacturers, the extractors.

Speaker #2: So you've got multiple layers of the market literally the retailers looking for something to fill in a gap where they've had success with CBD or THC products.

Speaker #2: You've got brands looking to bring new alternatives in or straight swaps and then you've actually got the manufacturers the extractors they're going well we need another ingredient so we've got this whole setup that's been built on farms and processing CBD that is now potentially either going to come to a very full grinding halt but a massively restricted market or a completely re-patented way they take to market on what that means for CBD drinks.

Matthew Kowal: They're going, Well, we need another ingredient. We've got this whole setup that's been built on farms and processing CBD, that is now potentially either going to come to a very not full grinding halt, but a massively restricted market or a completely repatented way they take to market on what that means for a CBD drink. Everyone suddenly go, What's the alternative that can fit that? I think kava is in a great place to fit into that.

Speaker #2: So everyone suddenly go what's the alternative that can fit that and I think carbon is in a great place to fit into that. All those situations.

Zane Yoshida: Unique.

Matthew Cowell: Good.

Matthew Kowal: Good.

Zane Yoshida: Yeah.

Matthew Cowell: For all those situations. It just happens to be when kava's already naturally on the up as well.

Matthew Kowal: For all those situations. It just happens to be when kava's already naturally on the up as well.

Speaker #2: And it just happens to be when carbon is already naturally on an up as well. You see I guess the market leaders the first to market the lay lows the carbon havens the carbon holes you talk of the mellows products that have identified carbon and how it can be used.

Zane Yoshida: Right.

Matthew Cowell: You see, I guess the market leaders, the first-to-markets, the Leilo, the Kavahana, the Kava Holes you talk of, the Melo products that have identified kava and how it can be used. Probably the biggest thing you're seeing in market, I think, is the move into the non-alc or the calming drink, ready-to-drinks, whether it's in live format spirits or small RTDs, but also now the edibles. Again, that space where CBD's played a really strong part. Gummies, everyone's looking at different types of gummies to bring out into that space as well. The stick packs, a little bit like what we're doing with micro tablets here in Australia, but over in the US where they're not restricted by the tablet format, there's a lot of powder-based pieces.

Matthew Kowal: You see, I guess the market leaders, the first-to-markets, the Leilo, the Kavahana, the Kava Holes you talk of, the Melo products that have identified kava and how it can be used. Probably the biggest thing you're seeing in market, I think, is the move into the non-alc or the calming drink, ready-to-drinks, whether it's in live format spirits or small RTDs, but also now the edibles.

Speaker #2: And probably the biggest thing you're seeing in market I think is the move into the non-alc or the calming drink ready to drinks whether it's in large format spirits or small RTDs but also now the edibles again that space where CBD has played a really strong part.

Matthew Kowal: Again, that space where CBD's played a really strong part. Gummies, everyone's looking at different types of gummies to bring out into that space as well. The stick packs, a little bit like what we're doing with micro tablets here in Australia, but over in the US where they're not restricted by the tablet format, there's a lot of powder-based pieces.

Speaker #2: So gummies everyone's looking at different types of gummies to bring out into that space as well. And the stick packs a little bit like what we're doing with the micro tablets here in Australia but over in the US where they're not restricted by the tablet format.

Speaker #2: There's a lot of powder-based spaces. So on the back of the culture of carrying a water bottle where you're having in the morning evening all those kind of things we even saw I think recently on the retail trip was really interesting that most retailers had a stick pack area on the way out of store.

Matthew Cowell: On the back of the culture of carrying a water bottle, whether you're having it in the morning, evening, all those kind of things. We even saw, I think recently on the retail trip, it was really interesting that most retailers had a stick pack area on the way out of store. That obviously, where they take it out of the box and they're putting it into where you'd normally get your chewing gum and those kind of elements, and people going impulse buy and out the door, whether it's from vitamins, hydration to functionals, where kava's now sitting. And the way we've set the business up, we want to be able to cherry-pick out of all of that. We want to take the advantage of the retail side, but do it the right way, smart way.

Matthew Kowal: On the back of the culture of carrying a water bottle, whether you're having it in the morning, evening, all those kind of things. We even saw, I think recently on the retail trip, it was really interesting that most retailers had a stick pack area on the way out of store. That obviously, where they take it out of the box and they're putting it into where you'd normally get your chewing gum and those kind of elements, and people going impulse buy and out the door, whether it's from vitamins, hydration to functionals, where kava's now sitting.

Speaker #2: So that obviously where they take it out of the box and they're putting it into where you'd normally get your chewing gum and those kind of elements and people going impulse buying out the door whether it's from vitamins hydration to functionals where carbon is now fitting.

Speaker #2: So and the way we've set the business up we want to be able to cherry pick out of all of that. We want to take the advantage of the retail side but do it the right way smart way.

Matthew Kowal: And the way we've set the business up, we want to be able to cherry-pick out of all of that. We want to take the advantage of the retail side, but do it the right way, smart way. We want to make sure that we're supplying all the people we can through wholesale. That overall growth that you naturally see in categories and markets that start to mature in retail, everything grows.

Speaker #2: We want to make sure that we're supplying all the people we can through wholesale and then the overall growth that you naturally see in categories and markets that start to mature in retail everything grows because there's a broader understanding of it.

Matthew Cowell: We want to make sure that we're supplying all the people we can through wholesale. That overall growth that you naturally see in categories and markets that start to mature in retail, everything grows. Because there's a broader understanding of it, there's a broader engagement with it. Look, really hard work to get to this place now to set us up for the year to come, to have those three channels now. We're now in a position where we've got to lean hard and sort of take the opportunity that's there in a market that is growing across multiple places.

Matthew Kowal: Because there's a broader understanding of it, there's a broader engagement with it. Look, really hard work to get to this place now to set us up for the year to come, to have those three channels now. We're now in a position where we've got to lean hard and sort of take the opportunity that's there in a market that is growing across multiple places.

Speaker #2: There's a broader engagement with it. So look really hard work to get to this place now to set us up for the year to come to have those three channels now but we're now in a position where we're going to lean hard and sort of take the opportunity that's there in a market that is growing across multiple places.

Speaker #1: Yeah indeed. And there's still constraints with where you can sell THC and CBD products. You can't sell them on Amazon for example Matt. And you can sell carbon right.

Zane Yoshida: Yeah, indeed. There's still constraints with where you can sell THC and CBD products. You can't sell them on Amazon, for example, Matt, right?

Matthew Cowell: No.

Matthew Kowal: No.

Zane Yoshida: You can sell kava, right? Therein lies a huge opportunity, with the world's largest e-commerce platform.

Speaker #1: So therein lies a huge opportunity with the world's largest commerce e-commerce platform ready to take advantage of without expansion in those next steps.

Matthew Cowell: Absolutely

Matthew Kowal: Absolutely

Zane Yoshida: ready to take advantage of with that expansion and those next steps. Yeah.

Speaker #2: Yeah exactly. And I think similar in a different way in Australia obviously with what we're doing with the fizzes and the micro tablets and with the TGA and the flavored process we've had to work within the framework.

Matthew Cowell: No, exactly. I think similar, in a different way in Australia, obviously with what we're doing with the FZZR and the micro tablets and with the TGA and the flavored process, we've had to work within the frameworks that are there. What that does, again, opens up a broader opportunity to people that might be hesitant to take the step into that 50grams of kava root powder with a very distinct taste. They go, Here's a good way just to step in, trial that, get an understanding how it fits for them, and then as we've seen time and time again, people who engage in trial kava, there's a large percentage that come back because it is a truly functional ingredient. You-

Matthew Kowal: No, exactly. I think similar, in a different way in Australia, obviously with what we're doing with the FZZR and the micro tablets and with the TGA and the flavored process, we've had to work within the frameworks that are there. What that does, again, opens up a broader opportunity to people that might be hesitant to take the step into that 50grams of kava root powder with a very distinct taste.

Speaker #2: So there but what that does again opens up a broader opportunity to people that might be hesitant to take the step into that 50 grams of carbonate powder with a very distinct taste.

Speaker #2: They go here's a good way just to step in trial that get an understanding how it fits for them and then as we've seen time and time again people who engage in trial carbon there's a large percentage that come back because it is a truly functional ingredient.

Matthew Kowal: They go, Here's a good way just to step in, trial that, get an understanding how it fits for them, and then as we've seen time and time again, people who engage in trial kava, there's a large percentage that come back because it is a truly functional ingredient. You-

Speaker #2: You have it you feel it.

Zane Yoshida: Yeah

Matthew Cowell: you have it, you feel it.

Matthew Kowal: you have it, you feel it.

Speaker #1: Yeah that's right. That's right. You never feel the capsule or tablet of vitamin C that you take every morning right.

Zane Yoshida: Yeah. That's right. You never feel the capsule or tablet of vitamin C that you take every morning, right?

Speaker #2: Absolutely. I feel religiously taken away.

Matthew Cowell: Absolutely.

Matthew Kowal: Absolutely.

Zane Yoshida: Yeah.

Matthew Cowell: Still religiously checking in with people.

Matthew Kowal: Still religiously checking in with people.

Speaker #1: I'm just being mindful of time and we have reached the hour already. Maybe I've spoken too much Matt but is there anything else we'd like to cover today for investors shareholders benefit please?

Zane Yoshida: I'm just being mindful of time, and we have reached the hour already. Maybe I've spoken too much, Matt, but is there anything else we'd like to cover today for investors, shareholders' benefit, please?

Speaker #2: Yeah. Probably I'll just reinforce I think what's come out in a couple of the announcements we're really conscious of building the business on both ends ensuring that supply is there and then I think just communicating where we are on each of those stages in the channels which hopefully we've gone through clearly with everyone today.

Matthew Cowell: Well, probably I'll just reinforce, I think what's come out in a couple of the announcements. We're really conscious of building the business on both ends, ensuring that supply

Matthew Kowal: Well, probably I'll just reinforce, I think what's come out in a couple of the announcements. We're really conscious of building the business on both ends, ensuring that supply

Zane Yoshida: Of course.

Matthew Cowell: Customer excellence is there. I think just communicating where we are on each of those stages in the channels, which hopefully we've gone through clearly with everyone today. Feel free to send those questions in even after this, and we'll respond. We've got an opportunity, and have already started what is a really exciting journey in wholesale. We've only got more to bring to that. Speaking to the market, we know we've got strengths that others don't. We've got a great setup in retail in Australia that's exciting to expand further. As I said, our online business, which has been strong. We only have more excitement coming, I think, with some key changes with Shopify and then bringing that handling back in-house to really be quite aggressive with how we take that to market.

Matthew Kowal: Customer excellence is there. I think just communicating where we are on each of those stages in the channels, which hopefully we've gone through clearly with everyone today. Feel free to send those questions in even after this, and we'll respond. We've got an opportunity, and have already started what is a really exciting journey in wholesale.

Speaker #2: And feel free to send those questions in even after this and we respond but we've got an opportunity and I've already started what is a really exciting journey in wholesale and we've only got more to bring to that.

Matthew Kowal: We've only got more to bring to that. Speaking to the market, we know we've got strengths that others don't. We've got a great setup in retail in Australia that's exciting to expand further. As I said, our online business, which has been strong. We only have more excitement coming, I think, with some key changes with Shopify and then bringing that handling back in-house to really be quite aggressive with how we take that to market.

Speaker #2: And speaking to the market we know we've got strengths that others don't. We've got a great setup in retail in Australia that's exciting to expand further and then as I said our online business which has been strong we only have more excitement coming I think with some key changes with Shopify and bringing that handling back in-house to really be quite aggressive with how we take that to market.

Speaker #1: Yeah. Okay. I think we've covered the lumpiness of wholesale and what that meant for the quarter given Q3 of why 26 results but we're looking to of course normalize that and build on the wholesale channel with our next step.

Zane Yoshida: Yeah. Okay. I think we've covered the lumpiness of wholesale and what that meant for the quarter, given Q3 FY2026 results. We're looking to, of course, normalize that and build on the wholesale channel with our next step. Watch this space, as they say. Thank you, Matt. That concludes our Q4 FY2026 webinar. Thank you for all participants.

Speaker #1: So watch this space as they say. Thank you Matt. That concludes our Q4 FY 26 webinar. Thank you for all participants.

Speaker #2: Thank you.

Matthew Cowell: Thank you.

Matthew Kowal: Thank you.

Speaker #1: Bye.

Zane Yoshida: Bye.

Matthew Cowell: Bye.