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: Aaron Grey - Alliance Global Partners - Analyst
: Hi, good evening, and I thank you very much for the questions here. So first question for me. Nice to see the growth sequentially in the sales coming
slightly above the guidance. But in terms of the gross margin, a couple of puts and takes there, so I certainly can understand in terms of the NETi,
some one-offs in terms of some lower margins there.
But you also seem to imply on the brand side, maybe a decision to turn back, focus a little bit more towards growth. You made some comments
on VitaMedica and some other branded investments as well versus some near-term profitability.
So maybe just give like a holistic view of in terms of how you're looking at growth versus profitability now, both in terms of the distribution side
on the NETi, Cygnet businesses, and also then on the brand side, in terms of investing for growth versus trying to achieve the near-term profitability.
Thank you.
Question: Aaron Grey - Alliance Global Partners - Analyst
: Thanks, Allan. I appreciate that detail there. So then -- and looking at that, so you previously had some implied guidance in your presentation deck
in terms of profitability. I know you reiterated your calendar sales guide today of $100 million.
So is it fair to say now that we know it's going to be more so of that -- more so investment in some of those brands? And maybe in the near term,
it might not have as much as the EBITDA margins that you had previously been anticipating then over the near term?
Question: Aaron Grey - Alliance Global Partners - Analyst
: Okay, great to hear you are trying to return to that margin expansion there. In terms of some of the top-line initiatives, right, so the Disney one
looks off to a good start, just looking at some of the Frozen reviews online, and implied product sales that you mentioned are also planned online.
Can you talk about some other product lines being launched? Can you speak to the timing of those additional product launches coming and how
-- when we might expect them?
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NOVEMBER 20, 2023 / 9:30PM, UPXI.OQ - Q1 2024 Upexi Inc Earnings Call
Question: Aaron Grey - Alliance Global Partners - Analyst
: Okay, great. Yeah. Yeah. Thanks for the color. Yeah, looks like it's off to a good start there. I want to ask a holistic balance sheet question here. So
you had a cash balance about $417 million as of 9/30. You mentioned you changed up terms on the debt that was due end of October. I think you
paid down two and you'll pay down the remainder in the next 12 months.
You have a $6 million credit facility available. And it also sounds like you're building up some inventory for these launches that you are going to
have for Frozen, Tytan Tiles, and potentially the other ones in 2024. So can you just provide us with your comfort with the credit facility to meet
the needs -- working capital needs, and otherwise, just balance sheet position? Thank you.
Question: Aaron Grey - Alliance Global Partners - Analyst
: Okay. Great. Great to hear that. Last question from me. Just update on Bloomios assets. Any updates on the operations there, plans to be able to
consolidated it, or anything you can provide on that? Thanks.
Question: Aaron Grey - Alliance Global Partners - Analyst
: Okay, great. Thanks very much for the answers. I will jump back into the queue.
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