The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jeff Van Sinderen - B. Riley Securities - Analyst
: Good morning, everyone. Just wanted to touch on the backlog for Q2. And I'm just wondering what you anticipate for revenues for Q2, maybe a
range there? And then gross margin, any impact to gross margin from some of the production difficulties maybe just a sense of where gross margin
might wind up for Q2? And then also any change to your prior annual guidance?
Question: Jeff Van Sinderen - B. Riley Securities - Analyst
: Yeah, that helps. Just a couple of follow-ups to that. Just as you were talking about the LE, is that open to the general public now? Or is that the
orders that you have are most of those law enforcement?
Question: Jeff Van Sinderen - B. Riley Securities - Analyst
: Okay. So that's pretty interesting because it just -- I mean, it speaks to a more powerful launcher getting demand that's really a lot bigger than what
you expected initially.
Question: Jeff Van Sinderen - B. Riley Securities - Analyst
: Okay. And then just one more follow-up on the production. What needs to happen to get the production levels running where you've targeted
them at this point?
Question: Jeff Van Sinderen - B. Riley Securities - Analyst
: Okay. So, just to clarify one point. When you guys reported Q4 at that point in time, it looks like you were going to have the orders out the door by
the end of the quarter as planned. And then the last couple of weeks of the quarter, things just got tough with the production levels and with the
component availability to your specs. Is that an availability -- (multiple speakers)
Question: Jeff Van Sinderen - B. Riley Securities - Analyst
: Okay. And you went into production, can you just refresh my memory on when you went into production?
Question: Jeff Van Sinderen - B. Riley Securities - Analyst
: Okay. Got it. All right. Thanks for taking my questions.
Question: Jim McIlree - Dawson James - Analyst
: Thank you. Good morning. What are the capital requirements for the rest of the year for both the investment in the JV as well as just normal capital
spending?
Question: Jim McIlree - Dawson James - Analyst
: That's great. Thank you. And then secondly, on the JV, do you have a right or an obligation to buy out your partner after a certain period of time
or after hitting a revenue level, anything like that?
Question: Jim McIlree - Dawson James - Analyst
: And the price that, that transaction to take place is third-party valuation or it's a fixed dollar amount now or a fixed value (multiple speakers) --?
Question: Jim McIlree - Dawson James - Analyst
: Got it. Great. Thanks. That's it for me.
Question: Ryan Rackley - Raymond James - Analyst
: Hi guys, thanks for the time. So, it sounds like, I think you said that you're shipping the 12-guage round to consumers. And I think you said previously
that you were going to fulfill the dealer demand before you started shipping to consumers. I just want to make sure that this basically means that
you guys are meeting all of dealer demand at this point. Or is there a change of strategy there?
Question: Ryan Rackley - Raymond James - Analyst
: Okay. Great. And are most of these dealers are they shipping to all of their -- are they stocking all of their locations? Or are they just trying out a
couple locations? Is there a way to think about the broader trends?
Question: Ryan Rackley - Raymond James - Analyst
: Great. That makes sense. And shifting over to the LE. I just wanted the waitlist, the 5,000 units on the wait list, and is there a way to think about the
conversion on that? Are these people that just signed up for an e-mail notification or how strong is that interest? Or should we think of that as like
a backlog?
Question: Ryan Rackley - Raymond James - Analyst
: Great. Well, thanks guys. I appreciate the time.
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