Financial Data and Key Metrics Changes - For Q1 2025, the company achieved a 52.4% year-over-year revenue increase, reaching approximately $28.7 million, up from $18.8 million in Q1 2024 [5][12] - Gross profit rose 51.1% to $8.5 million, representing 29.6% of sales, compared to $5.6 million or 29.8% of sales in Q1 2024 [6][13] - The net loss for Q1 2025 was approximately $400,000, an improvement from a loss of $500,000 in Q1 2024 [17] Business Line Data and Key Metrics Changes - The core Strand segment saw an 11.2% organic revenue growth, with sales increasing to approximately $20.9 million for Q1 2025 from $18.8 million in Q1 2024 [12][13] - The SLS segment, which includes the former Gander Group business, generated approximately $7.8 million in sales for Q1 2025, up from zero in Q1 2024 due to the acquisition [12][13] - Gross profit for the Strand segment increased to approximately $6.8 million, while the SLS segment's gross profit was approximately $1.7 million for Q1 2025 [14][15] Market Data and Key Metrics Changes - The company is expanding its global manufacturing footprint to mitigate tariff uncertainties, including partnerships in Vietnam, Cambodia, Taiwan, India, and Bangladesh [10][42] - The company reported a proactive approach to global trade dynamics, particularly in navigating the evolving tariff landscape [9][20] Company Strategy and Development Direction - The company aims to accelerate organic growth, expand margins, and drive sustained profitability in 2025 [10][20] - The integration of Gander Group assets is expected to enhance customer services and create new revenue channels [9][11] - The successful launch of the NetSuite ERP system is seen as a game changer for operational efficiency and scalability [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained growth and operational excellence despite challenges in the market [11][20] - The company is focused on maintaining financial flexibility while executing its growth strategy [18][19] Other Important Information - The company ended Q1 2025 with approximately $12.2 million in cash and no long-term debt, reflecting a strong liquidity position [18] - Operating expenses increased 43.6% to approximately $9 million, but as a percentage of sales, they decreased to 31.4% [16][17] Q&A Session Summary Question: Will accounting and compliance costs decrease in 2025? - Management indicated that significant expenses related to the re-audit process incurred in 2024 should decrease in 2025, with Q1 2025 costs around $800,000 [22][24] Question: Are there plans to restart a share buyback? - Management confirmed plans to restart a share buyback program, with approximately $6 million available for purchase [26] Question: Can you explain the drop in cash related to the rewards program? - Management explained that the drop in cash was due to the issuance of $5 million in prepaid debit cards for the rewards program, which fluctuates based on program execution [27][28] Question: Will the company report ongoing versus one-time expenses? - Management confirmed plans to report adjusted EBITDA that separates ongoing public expenses from one-time costs related to audits and ERP implementation [34][35] Question: Is the increase in inventory related to tariffs? - Management clarified that the increase in inventory is a natural business cadence, with most inventory purchased on behalf of customers, not speculative [36][37]