Mace Security International (MACE) 16 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Remigijus Belzinskas	executive
Sanjay Singh	executive
Andrew Shapiro	analyst

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Mace Security International Third Quarter 2023 Earnings Call. Currently, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. {Operator Instruction] I would like to hand the conference over to your first speaker, Mr. Remigijus Belzinskas. sir. ahead, go Please

Remigijus Belzinskas

and Maggie, good you, afternoon. Thank

financial materials, on Chairman as as and me corp.mace.com the Newsroom, find OTC XXXX the statements for our XXXX Mace. ended call the Singh, under September additional can you third Sanjay quarterly is where the Chief and well presentation. overview visit QX financial today Please Joining including the Executive quarter report of Officer XXXX, XX, QX

actual future differ from during some comments periods opinions quarter. could for conference intended result, known uncertainties, and intended statements. projected, Such expectations It factors resources, third adversely and materially our statements during to as and are and possession the domestic point currently the expressed out chains. cause will this call used to, or proceeding, and constitute supply to this such in When to Such or subject to statements now Before statements anticipated, I would Sanjay phrases may certain for will are capital expressions similar conference I identify results like to estimated, invasive during any financial international to call. affect likely unknown, are forward-looking that disruptions based turn and are the information of not certain Mace's including, words limited will could economic limit and forward-looking call, risks, over in conditions, or to, expected performance. the but call statements management. on of management's about continue, is information materially the

Sanjay Singh

afternoon, Good everyone. Rem. you, Thank

The third challenging. very, quarter was very

that base 'XX across decrease is have slightly trend scaled purchases. were that in not significant and the of were from driven $X quarter of sales when by the the received feedback of of for XX% channels. back decrease back-to-school and for compared of year-over-year also in sales the XX customer, XX.X% The reflect business. the X customers from retail quarter that in were QX. QX. our sales of is sales XXXX. the did compared we third QX Most to XX% some significant sales, mostly that Net Sales QX overall than the consumers $X.X loss revenues by continue approximately when base quarter. Sales on higher result versus offset the or by customers of Net QX increased decreased business XXXX decreases one declined remaining million e-commerce which million, company's While with and one $XXX,XXX of accounted decrease. third QX the order the The sales which the partially our from of XXXX platform, a decrease impact lower

organic drive last the and We accelerated to to business, focus business, in the quarters, customers needs our started of both light with have slowness provide we new The civilians. campus partnership couple in safety this X. year legal health to law date, new transportation security, earlier care that as like and large Shield department program training. from of products services. U.S. would and on was our new both Over online of we X,XXX launched And inquiries facilities employees, received nonlethal as November in-person officially to inquiries college of their from from well Head and cities and train

for move will our higher retailers. priced design the on with of a that pepper point for service. be demand our campaigns spray FX to running also healthy price spray a see to to new pepper defense be would working partners. We're mobile the that We're $XX $XX in type marketing expect range. We suited

product co-branded school to hospitality college segment. and working on will the are cater another we Additionally, that and

XXXX, new completely I EBITDA co-branded was will is on the over of the EBITDA the for final by quarter to the Rem as convert in X% the XXXX period quarter to year. in drop $XXX,XXX have in results. nonlethal the income reductions the we call when adjusted October EBITDA asset-based We segment Back in space. compared to inventory adjusted On quarter ended drive XX, in well XXXX a September launching $X September X-year costs same XXXX, of identified prior as sales, million that commercial lender; credit XX, loss third the to compared a new breakeven which lowered for we're given product, to now will we with to cost closed ended QX SG&A to line stages of $XXX,XXX financials. further the a in drastic Lastly, to the XX, comment be a The the excess in turn cash. financial XXXX.

Remigijus Belzinskas

Sanjay. you, Thank

the Our sales $X.X third our XXXX. XX% sales quarter or of XXXX in third Business-to-business increased XXXX period in sales quarter Gross were with sales and a $X.X million, decrease third $XXX,XXX our XX%, the decreased results. platform same XX.X%. decreased for XXXX from sales net increased from sales International quarter approximately e-commerce third our XX%. compared XX% decreased million retail profit quarter XX% The XXXX.

in decreased plant same rate due quarter to the in the of volume, channel a quarter increase quarter in third related XX% expense, XXXX third of quarter by X in partially decreased for The from of a or higher in due margin sales salaries the margin to rate to efficiencies. XX% XXXX to sales. lower sales. due offset e-commerce unfavorable $XX,XXX to by attributable down of $XX,XXX component Our sales for third mix, XXXX. XXXX inflation expenses million platform quarter $XX,XXX the third and XX%, was points higher over e-commerce $X the SG&A and Margins advertising $XX,XXX expenses benefits costs in is costs platform fulfillment SG&A approximately decrease of decrease net XXXX a reduction

loss of and of sales $XXX,XXX net higher our a of in in quarter was loss lower costs the down the resulted quarter third However, volume manufacturing from net which $XXX,XXX, XXXX. for

of to lower was in revenues. $XXX,XXX, quarter $XXX,XXX adjusted line EBITDA The Third EBITDA from attributable primarily decline an bottom of income the third $XXX,XXX loss down in is the XXXX. of quarter adjusted a

stayed constant Our the during compared 'XX million. XXXX. XX, XXXX, $XXX,XXX line due XXXX, Cash a of cash December XX, offering to credit $X.X increased of primarily third quarter of to convertible XX, at of July with on $XX,XXX on the September closing borrowing on $XXX,XXX debt

be As that order in inventory we've a on could mentioned experienced supply without fulfillment. progress cost we implications XXXX, halted and previously, were future chain delays or had with the inventory XXXX not orders financial early in

readily into before December increased nominally finished third of $XXX,XXX up our balance As third goods XXXX XXXX. at we quarter such, we for quarter some compared during end XXXX. tied continue the in with questions. the and I'll Inventory compared salable XX, cash of Inventory the to have the to lot turn of inventory. a convertible the decreased now during second take to the quarter the additional XXXX company converting due of to Sanjay call comments of marketable components back by

Sanjay Singh

are Thank results, disappointing. you can see, you, The extremely Rem. as

However, on the new opportunities focusing and we our next in of are are business efforts million quarters. targeting new few $XX.X business

A in corp.mace.com. be to laser-like focused opportunities have on in expressed find our a quick strong carrying The financial details, initiatives. key new reminder. interest on you results. our on will these these website our deck can from of retailers products. revenues Two going be For to our this those investor very additional We're

chance to with I our stop pertaining would any the to questions. each to strategic have We company ask legal question caller follow-up or assist time, the limit additional And the everyone participate. advisers will if questions we open back address one into not to retained for for try time, to will questions. has alternatives At get open process. with we'll allow line please The themselves lines Maggie, financial and a respond to one this ongoing queue. and project. to to this I you

Operator

from [technical [Operator Instruction]. Thank difficulty]. first We'll our take you. question

Andrew Shapiro

think time cash know straight but about Why compensation that the stopped taking table? of you Don't light it's of put revenue the quarter a year-over-year while salary taken now Board ago, months, XXth I not quarter, wondering in the cut? XXth to hasn't a what was straight is declines. I on management has

Sanjay Singh

taken management has Andrew, salary a cut.

Andrew Shapiro

mean, The that I see that, out. guess should said as we reduction and Yet in buildup drop for levels moved you the August, never increased. inventory slightly don't inventory be but we disclosed. continued get occurred. call in appreciate been I quarter's the I further dollar it's didn't would has last to see general instead

to from prior the expect expand color you due can XX% to on obviously, support can levels and dropping sequential up. being inventory inventory of the to quarter So, some see investors slightly going levels what's present that you inventory a to, And sales for reduction in your representation? days QX? Can the provide on number skyrocket

Sanjay Singh

Yes.

There's initiatives. of our drove to up go reduction So, that one of inventory is slightly. couple factors a inventory

label the produced private out them that large fourth of One third in the order quarter. actually was shipped quarter. was a It in

think first quarter I shipped order. a week it in of the the pretty large is fourth

Second, forecast. that on not based General incoming the with inventory are buildup the forecast, line initial Dollar in of our orders

not is Dollar working that buyers of yet. team XX% at happen. do with the stores our So, products our have the General And make to

as So, well. General Dollar buildup there's of orders a

based super a production us caused it because our dynamic. third dropped, And forecasting is historical issue of is the The another not on demand lot the demand. for is as

have to XX are cases, lead from coming be some lead Just so X you based our in components demand. historical to plan on ahead the given China, times, times can weeks, for in

Andrew Shapiro

Okay. I out. many have to come me. back other back I'll Please questions.

Operator

[Audio our next Gap]. We from will question take

Andrew Shapiro

at to revenue has but ask partially mishaps one sizable in expansion was our middle retailers, sequential and a you quarterly Well, on guys repeatedly been here a provide few channel Last it increase total with and retail said highlight we all expanding big Okay. and to year, sales reconcile in at call that days. and place, days and in up? e-commerce, at of you You least again, taken a XX product with the for trip got But QX, of you substantial XX were it's I'm expansion accountability the four going there's more a revenues sufficient shortfalls clearly here. SKU sell-through period But such visibility flat the two to retailers. it's cited delays drop seem finally consumer can that retailer. that in these down in materialize, for now time early to

if orders been when restocking And have experience? POS the and sell-through provide you now you on supposedly shipped? the expect new can SKU So

Sanjay Singh

back-to-school orders the had SKUs. terms general, versus you for in are of the we we been General product for the QX would that not but order repeat pretty So a in if have back sizable back-to-school expansion, seeing in QX up, Dollar quarter-over-quarter, did out order, our In QX. QX

accounted for We're of the decrease. one retailers, of back new lost In we about the them of mentioned our the million That decrease. XX% I with get year-over-year, terms of $X out of to them. $XXX,XXX the products. one was It trying

The I second and last paring orders of big end one the quarters. been back peaked at They've we've for particular mean they was this decreases the about been quarter customer, 'XX. third inventory of $XXX,XXX, seeing few the Total retailers our some since ACE then. were down DICK's retailers, were with. other to retailers total. With we down in like business and with regards do and folks those other that other of

our base some had were We too going to orders complaining were customers quarter. of larger way also they that and they place much who replenishment not business this inventory saw

retail in dramatic replenishment business a change in the we terms base orders. and between saw business, of So sentiment

Andrew Shapiro

or said and had is all or Dollar you you've QX I ramp-up X,XXX said the stores. with order be When that And you and of in now, have months X,XXX one, in clarify that, the new that. expect ago, you -- you was you of to have three margins? you XX,XXX back-to-school number XX% your to expect just a General, more go XX% plan you're initially to more nowhere think is the XX,XXX Please XX,XXX expected. near the had do the or and only So go. in X,XXX You which okay? sizable

Sanjay Singh

XX% yes, X,XXX stores, more to go.

Andrew Shapiro

X So you're of your XX. initial in

the X,XXX? that got do back-to-school restocking initial stores placed How provide And to you did general remaining is stocking into and can you experience sell-through when the early get experience from in you in. order Okay. that your going? expect the you And

Sanjay Singh

stores in in that The we the inventory is what sitting; we orders found forecast nowhere the to Dollar they not Dollar a General It's to from our are managers secondly, are close forecast, the that from General. Then visits Cleveland sitting the sometimes one. restocking out number have received found we it's is This from store even what in because area, store. boxes understaffed. was

being or many third types received The with being there is in and been that other of reorganized not are hit that are compliance issues. with we that materials feedback many, have stores hazardous

even right a the had at there's team. top. a General change leadership They So, the there better Dollar with focus general

feedback very the receiving So buyer. our from with that's are work that the reps who closely we

Andrew Shapiro

And impact and or feedback POS videos what product by sales is you right. different All uploaded accepted were And the And ago? And get where then months which presented there any three product Aspire, Okay. Walmart have at new buyers? improvement that? new for that? of additionally, was walmart.com to from the your in their offerings status was you or and

Sanjay Singh

have quarter. provided since all the unchanged images. We status last remains The the

of buyer, year. still a the hopefully be are buyer we We've there but sitting We of for been meeting with the year. the change, the are buyer, asked a the going end in hands has before of end the before the and to

Andrew Shapiro

come back me. Okay. questions. please I'll to I have but out, back more

Operator

questions right from of Andrew will our next Instruction] {Operator the We there in other As Shapiro. queue. no question are take now,

Andrew Shapiro

you ask are the were no are this it's to I'll before out the few else credit. here correct? backing it a guarantees call. secured there new working personal like all anything line out wanted in on others needed new many look that Okay. that doesn't speaking assets of to secure more capital loan, X-year of On again, company. Is by this there I confirm the just or

Sanjay Singh

correct. That's

Andrew Shapiro

Okay. present? Or And under a as you is available? you least September credit Do the I the $X.X million think under at line mentioned the the line. than is balances, less at available? it and $X full $X borrowed at working total what capital given XX, What million of have $XXX,XXX the same had some time, is company And you the million? that number thus, borrowed your

Sanjay Singh

availability is funds. total The have then And raised X.X. we board

Andrew Shapiro

Right.

buying your a right So Is on credit that a $X working limit. million now, term, on capital you're line balances based well, the it's right? X-year at

Sanjay Singh

can sorry, I'm please repeat that? you

Andrew Shapiro

It's your capital working on a balances. $X it's based million line, but

to $X.X the your trying availability balances, confirm on $XXX,XXX what somewhere do So than million. borrowed, you have you I'm $X million capital based have is available or is while working less

Sanjay Singh

less The moment. at the availability than is $X million

Andrew Shapiro

what you're now? Okay. what's available Is the drawn right at availability? on fully And it X.X%, is

Remigijus Belzinskas

dayâ€¦ to day is availability Our

Andrew Shapiro

it So $XXX,XXX, me give kind of some Is point $XXX,XXX? whatever.

Remigijus Belzinskas

So in point at approximately any million. time, $X.X

Andrew Shapiro

I what's that's what's well? strong. available is understand But that as

Remigijus Belzinskas

be It a would be more. a It number little similar. that would could be

Andrew Shapiro

Okay.

basically. room there's So, not much

Remigijus Belzinskas

correct. That's

Andrew Shapiro

borrowable it. There's real you and make more not sales much room have until to thus receivables added

Sanjay Singh

That is correct.

Andrew Shapiro

What were Okay. that quarter, want individuals during get to options and grant were of what performance-based? XXX,XXX I All in participated right. That's the at. the that occurred options granted reported this recently management

Remigijus Belzinskas

to We're andâ€¦ being list a of the asked participants provide

Andrew Shapiro

Let's just regular equity, get cash. don't I but be paid more that's paid general, actual They okay? get stock. think Directors

the time new this? of over with Where where the management person senior bulk or got options, and Is $XXX,XXX. we just it So the going getting XXX,XXX are options one just vesting performance vesting?

Remigijus Belzinskas

of Are the referring the members? vest recipients and Board years five $XXX,XXX the were to you're options over that

Andrew Shapiro

just It's Board compensation. the

Remigijus Belzinskas

That's correct.

Andrew Shapiro

Okay.

few questions have I XX, Slide about map, a that. road product Your

the So targeted for a Can you've what It's that reported, revenue QX. Project just $XXX,XXX K, DTC or say year ended which is was? K one now quarter market. was has a the Project due you in

Sanjay Singh

value These our Yes. are kits.

a So are at look three packs ten we're our packs. these and five offering inventory, taking in and packs, we

Andrew Shapiro

more perimeter info Okay. you unit $XXX product? a on SG defense this the the year big DTC price. $X X a Is Project provide target for revenue a this unit, has market, Can million for this vehicle quarter unit?

Sanjay Singh

don't that. of to I'll I'd agreement a have it it we're leave yet, just that It's it, finalized but like just since leave in throes No. the at different. final at to we have

Andrew Shapiro

QX having something Okay. on for still you're here? But that it's target

Sanjay Singh

targeting a closing quarter. this Yes. agreement the of We're

Andrew Shapiro

Yes.

it this X $XXX,XXX seeing provide to you the market. it quarter, when product? this Okay. year revenue, Then a I'll forward more on Project info for S target is happens. for and look educational Can this

Sanjay Singh

cannot. I

that closed not either. have We yet agreement

Andrew Shapiro

expected Is this it for quarter? still

Sanjay Singh

It is and looking we're towards.

Andrew Shapiro

product to one, fresh, Presumably, do I'm projection do I are QX going your slide last them, you them, right. is in to all being some all in which in excuses. future you going the being overseas to one still is X. are All country but boat more but this when on and revenues color start the of not of and timing give or supply of a components all on not timing accurate can generated this, would want do the are a Project all or of here presenting mid-November, I'm subject to chain do particular,

Sanjay Singh

I yet. cannot offer any since it further details agreement we not have do an on

Andrew Shapiro

you're agreements User Okay. holdingâ€¦

Sanjay Singh

the retailers first meaning first product quarter. of very We the selling to the release in product online are the specific offering a and in quarter, it targeting

Andrew Shapiro

Okay.

for have dependence so overseas does of And this supply? lot not a

Sanjay Singh

on defendants overseas does have supply. It

Andrew Shapiro

And happy one issue. remind a chain, but shipments. working So problem capital interest capital revenue which of right? line get is frankly, That limitations what's not of down closer does. it, finding resolving you costly success costly rate that that thing working have really our company's transit shortfall product time your and sourcing cheap, transit on of X-year logistics? line of to be the get time that long we on product, in credit at supply the achieved inventory of the and the that gain paid the U.S. capital that And on converted onshoring it's supplier status down to of and stockpiling credit, that supply to touching long I'm it, And get inventory because got more preferably issues any When level duration to alternative on to you better it's

Sanjay Singh

existing tooling. this in new And tooling of to of a the depending supplier our upfront require amount time significant A would find and costs, invested were supplier, ABL. domestic resources status securing on

our do flow increase at moment the to insure look think before can I that on at need that. the but So moving we're do our we first it cash constrained is we list, is to here thing

Andrew Shapiro

capital to may a there's to order undertake the So, line. shorten investment in have supply

Sanjay Singh

Yes.

Andrew Shapiro

Okay.

better Just wanting that. to understand

customer in sequential most described or retail segment. of quarterly the your Slide #X You revenue for a single current $XXX,XXX that the in accounted decline

I made what's why Can with provide former we going in introductory And think customer and should again you this comments purchasing on we when you on your to this customer? to levels? expand script. return should expect or

Sanjay Singh

went long care seeking different did like they introduction. pocket, not this from option, hero that. innovation customer us. didn't They pocket more a with our the formerly They had time. were and the for for We've They a

first their of received So, that in think be customer. targeted candidate is having the for feedback, we pretty that this 'XX, would one release quarter for the that being a good

Andrew Shapiro

you given they Have feedback this product yet? on new

Sanjay Singh

have that's They feedback, been but given not talked rep buyer, sales have provided and what that has on. to we No. who I'm basing from feedback our the

Andrew Shapiro

So rep is same good this sales Pocket a the was the AutoZone? thought for Hero that idea

Sanjay Singh

No, the a expected. they than area liked it very it; placed buyer in different we

decline. the initially So, the then different to sell-through They moved area was sell-through good. it a and

the mean, That's less product. the placed. that I not buyers So how got

Andrew Shapiro

Yes.

in me back case and out Okay. want just questions. before that's Either I in. out let unless I the more. whether I'll don't to me or you queue. more there's I I can have some a go go dominate the tell no few one got

Operator

operator. is There the This in the queue. questions other no are

Andrew Shapiro

will more ask to I list. to right. my here All get a few

the When e-commerce making when What's the little been about site? and new mace.com. And our Let's the sales? talk start response will product on far? some a bit you Gap] offer beyond so of did you [Audio where

Sanjay Singh

we site product, website ago. couple on the to reflect of a probably updated when So that. And that's our was product the months

in carrying have as interested regional well. it Cleveland area in retailer And, We to is very offered other it. a retailers the

And for offering then store our the on We on we are order. purchase are it waiting Amazon. also

Andrew Shapiro

couldn't it. went Okay. and I find through I today

in how this that. So But I as on on offered the your now the expectations versus punched it's prompts well. store Amazon your And wrong product inventory have proceeded in and being find sales maybe plans? to

Sanjay Singh

of but that's pretty amount slow, mace.com. on don't products. sessions We with been new It's typical a get online, significant

few significant but technical details just amount we weeks. the So, of a the of of last that on do we store. sales sales And in expect was amount of a didn't mace.com, on expect Amazon our all significant completed

and will the it take campaigns some in for time move. the for to to product So, kick

Andrew Shapiro

or I morning, any the literally know potential point website, mean for it when Are I entree it your also as supply didn't it. offering saw if on some the see to your had spray to canine Well, using I you verticals you of get a what didn't it when muzzle and right. today, retailers as there? do were it in you Amazon, All going your into plans pet yet getting this well as search hook this I or on but

Sanjay Singh

both. Yes Yes. to

Andrew Shapiro

Okay. a days to huge with your company Are agreement et far? Bodegas, coming catalog? status orders. cetera, so pays pass-through catalog stations, last orders in of public the call, this arrangement Surge here, On through? yet network any what's XX your had and corner distribution generate stores, you it's now gas Are the of later

Sanjay Singh

products just So a happened they ago. their our that did devices update to but show of weeks couple

from And they delayed issue I that our feedback ran a it's is implementation, resolve. been team a so, and into being received resolved, to trying sales that but now it's offered. technology been they've But pretty

Andrew Shapiro

have And Okay. seen orders yet? any you

Sanjay Singh

We any orders. seen haven't

Andrew Shapiro

going guys whatever I choose until pull-through dependent case motion, mean other any, demand we to and the which to marketing to double things you do. digital we're the generate able I through if are be on

area U.S. Legal is to Heat training it. market some other initiative. I our where to move you let's So, And have try seen LawShield that

middle On QX, QX. the revenues the on provide has and ramping forecast timing will the the were updated color model be call, work? last of the Can business and We to your how yet? that in margins for you current up occurred in ramp-up you

Sanjay Singh

the that And provides And their Heat U.S. training and platform So offers their leads organized issue the had classes. courses leads. online an produce were with is our until U.S. add to we November Legal Heat processor, online payment is and workflow producers that's way not LawShield seamless. LawShield in-person they is X. able Legal

an if have organized. had And training online are those Heat So Shield we have classes over we to turned on Legal that it's being versus Law lead over depending or single to every classroom. U.S.

where start we we some revenues, but reporting are So that's seeing some moment. should the at of

Andrew Shapiro

Okay.

So revenue you? could high pass comes it sounds it like and margin it when be through to

Sanjay Singh

XX% high EBITDA. would yes, about It be margin,

Andrew Shapiro

Okay.

FX. co-branding Another partner,

On meaningful permitter the and sales summarized defense in delays initial way the you Do X feel the and or into goal. need last goals products expected delivering from the the be the are XX now market to Have all been achievable the year QX. QX, you making a scaled had still for you months revenues first call, they selling you and current vehicle back? product

Sanjay Singh

product the bit -- we there is think a is We can achieve those targets, to quite work do. but of

are calls having weekly we So, with our actually partners.

our We and had sales online, have like would to of where to but of plenty nowhere seen online, items be. it we've units sold we close

now are larger buys. We targeting

And about folks groups, and talked interest retailer a an automotive to also going that their product. So had will trucking different is like retailer, to back another to be gauge that. we product, this we this in

Andrew Shapiro

Okay.

personnel and is one Your the labor transition except temporary labor, line press on items step recurring you back have this, And basis. transition personnel release, you have about out. you always of and temporary you talk a

how and that pulled expense? So temporary is out? be transitional really it And should SG&A

Sanjay Singh

transitional Well, one aiming it in for a because expense wants big to And role Rem controller so been are has the to is fulfill we open while. the our retire.

looking been have we to role. fill actively So, that

Andrew Shapiro

SG&A need demand cost is Okay. an But in and of arguably, controller company. function the ongoing the

position paying the It Rem anything what be you to there's would may staff only versus it transitional the otherwise fullâ€¦ you wouldn't if would be that's amount, the or for. I be temporary, So, premium guess,

Sanjay Singh

in had also strategic that alternative some we've Well, related correct. as is well. there That are type expenses

Andrew Shapiro

personnel. part As and that Is temporary right? of transitional

Sanjay Singh

the Rem, strategic which alternative costs? that line on is with

Andrew Shapiro

break maybe I'll out separatelyâ€¦ that

Remigijus Belzinskas

That's correct. broken There are lines out.

Andrew Shapiro

transparency of actual style really the not and a here. the Anyway, amount of point it's question, more is

pretax to to this it's But and XXX% create sizable and can carry doing are tax What valuable streams to amount Mace asset. shield loss this year. expired monetizing income. income have future Your losses Unfortunately, even brand monetize million royalty the margin forward our tax still after $XX use new more or you last from at a NOLs, name? need of NOL to going

Sanjay Singh

Andrew, sorry, that? repeat please I'm can you

Andrew Shapiro

got We $XX big tax NOL still. a million

your doing pretax and that activity, a We is use doing manufacturing, asset. of my have lot the monetize Mace-branded here NOL. income need this tax of through big lot our We things A the and focus going questions do. factory, and we revenues, selling to time

brand can XXX% able and Mace pretax otherwise or you stream name in royalty we doing aren't term? create licensing what in So, our margin to areas that by in be out anytime and that up going are come build the near to sectors to the could well-known compete

Sanjay Singh

Okay. Thank you.

licensing I've talked the initiatives new that the all like Heat, So the licensing â€“ new they're investor new described, that our all the the all deals in I've co-branding deals all the Legal FX, product are deals they co-branding about name. deck, offerings,

Andrew Shapiro

when XXX% we're sell not on collected a You mean dollar perimeter Like a margin revenue getting the you vehicle defense system. real royalties.

in brand we name licensed the the name. For example, on long-term why That's brand takedown can't tactical Mace very the law other enforcement to someone market name in area. unfortunately, very, some license use or is Mace brand the a you use

Mace. You don't use

Mace royalties. the products new margin buyer used area once just catch services. the line industry. there's brand product alarms protection ways share on another was in, That it. in that the be sitting areas of the home we Mace there's of not it the Mace with horizon licensed. that revenue where business of nothing or Mace, other be than production bear happens It a But the in, these not in interest collecting there it, we're bunch it they're license a had and of that presumably, sounds was brand name, other Mace like co-branding it's they're we other kill and XXX% type or selling our the rate-base the was security name and that in may and whatever, Mace we no Now brand stream, where that costs could items brand of the with of whether but operation, and owner business on royalty, have

Sanjay Singh

vehicle That products. We do don't with cost have the We not actually. business defense pro correct. any is not

deal Some of up. co-branding the coming

Andrew Shapiro

of questions obviously and more hit And have and we'll those disappointing not obviously, products That's quarter. great. excuses. executing some sold. we any don't trough have and I just and on need, a other start Well, those, maybe these be a to marketed point, you'll for then frankly need we at things

Operator

All questions the any in have not right. We do queue. further

Sanjay Singh

We end Maggie. Thanks, right. can then. the call All

Operator

today's for your call. participation. Thank you concludes This

You now may disconnect.

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