Financial Data and Key Metrics Changes - The company reported net revenue of $8.1 million for Q2 2025, a 1% increase from $8 million in the same quarter last year [12] - Gross margin improved to 76.7% from 69.5% year-over-year, primarily driven by license revenue [12] - Net income surged to $1.47 million, a 125% increase compared to $655,000 in the prior year [13] - Earnings per share rose to $0.17 per diluted share, an 86% increase from $0.09 per diluted share in the previous year [14] - EBITDA for the quarter was $3.8 million, up 136% from $1.61 million in Q2 2024 [14] Business Line Data and Key Metrics Changes - The company generated $1.4 million in license fee revenue during the quarter, contributing to overall revenue growth [12] - The functional beverage business is gaining momentum, with significant distribution wins, including national item authorization from Core Mark [8][9] - The RTD (Ready-to-Drink) business saw a notable increase in sales on Amazon, reaching $148,000 in the quarter, up from $41,000 in the previous quarter [20][24] Market Data and Key Metrics Changes - The company expanded its international presence with licensing agreements in Turkey and the UAE, expecting revenue generation from these markets by year-end [6] - A new wholly owned subsidiary in Mexico is set to ship products to Costco and Walmart Mexico by late Q3 or early Q4 2025 [7] Company Strategy and Development Direction - The company is focused on international expansion and strategic partnerships to enter high-potential markets without establishing a direct footprint [6] - A new leadership team has been assembled to drive the beverage strategy and growth, indicating a commitment to scaling operations effectively [8] - The company completed a $20 million debt refinancing, improving financial flexibility and aligning capital structure with long-term growth strategies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational discipline and execution, marking the tenth consecutive quarter of profitability [5] - The leadership team anticipates accelerating momentum in the second half of the year, driven by strong retail partnerships and product distribution [10] Other Important Information - The company reported a working capital surplus of $12.4 million as of June 30, 2025, compared to a deficit of $1.12 million at the end of 2024 [15] - Cash and cash equivalents increased to $1.5 million from $687,900 at the end of 2024, reflecting improved liquidity [14] Q&A Session Summary Question: Revenue from RTD products - Management indicated that most revenue from RTD products is still to come, but Amazon sales improved significantly to $148,000 this quarter [20][24] Question: Retailers carrying RTD products - Management confirmed multiple retailers in Canada are currently carrying the product, but a detailed list was not provided [22] Question: Licensing revenue structure - Licensing revenue is expected to grow slowly, with management discussing ongoing talks with other groups in different countries [26] Question: Unusual expenses in the quarter - Management noted higher professional fees and legal expenses due to public company costs, but these are expected to persist [28] Question: Revenue from Mexico operations - Revenue from the new subsidiary in Mexico will be recognized as revenue, as the company will have its own sales teams there [30] Question: Flat tummy revenue - Management reported that flat tummy revenue remains steady with no new updates [31]