Financial Data and Key Metrics Changes - The company reported revenues of $86 million for Q3 2025, or $84 million excluding EUAs related to the EU Emission Trading System, with a fleet average TCE of $70,900 per day [3] - Net income for the quarter was $16.8 million, translating to an EPS of $0.31, while adjusted net income was $23.5 million, or adjusted EPS of $0.43 [3][12] - The company achieved an all-time high cash balance of $479 million after refinancing FLEX Resolute and FLEX Constellation, with no debt maturity prior to 2029 [4][12] Business Line Data and Key Metrics Changes - FLEX Constellation is fully booked for Q4 2025 and Q1 2026, starting a 15-year time charter [4] - The company has a minimum firm backlog of 53 years, which could grow to 80 years if all options are declared [5][6] - Operating expenses for the quarter were $18.8 million, or approximately $15,700 per day, aligning with the full-year guidance of $15,500 [9][10] Market Data and Key Metrics Changes - Global LNG trading volumes increased by 3% year-on-year, reaching 350 million tons from January to October 2025, with the US leading the growth [15] - LNG exports from the US surged to 87 million tons, a 22% increase year-on-year, while European imports grew by 26% [15][16] - The spot market for LNG has shown signs of improvement, with current rates for modern two-stroke vessels around $70,000 per day [14] Company Strategy and Development Direction - The company is committed to maintaining a shareholder-friendly dividend policy, with a declared dividend of $0.75 per share, marking the 17th consecutive dividend [4][7] - The company aims to leverage its solid contract backlog and financial flexibility to navigate the current LNG shipping market [13] - The outlook for LNG shipping remains positive, with expectations of increased LNG volumes and a strong contract pipeline [20][22] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in the spot market, driven by record LNG volumes and strong demand from regions like Egypt [14][15] - The company is optimistic about the next few years, anticipating more term market opportunities and a high wave of scrapping in the LNG fleet [25] - The management highlighted the importance of maintaining a solid balance sheet and available liquidity to ensure commercial flexibility [26] Other Important Information - The company has distributed nearly $730 million to shareholders since Q4 2021 [4] - The average cost of drydocking was $5.6 million, with all scheduled drydockings completed safely and efficiently [8] - The company has seen a significant reduction in interest expenses, down $10 million compared to the previous year, due to improved financing terms [10][11] Q&A Session Summary Question: What is the likelihood of the FLEX Aurora option being declared? - Management expressed optimism regarding the FLEX Aurora option, noting the current momentum in the spot market may influence decisions [23][24] Question: What are the opportunities in the term market? - Management indicated that FLEX Artemis is covered throughout 2025 and expects more term requirements for prompt deliveries and beyond [24][25] Question: How is the company managing its cash balance? - The company emphasized a strict capital discipline, prioritizing returns to shareholders while maintaining liquidity for market opportunities [26] Question: What is the status of the delisting from the Oslo Stock Exchange? - Management confirmed the delisting occurred on September 16, 2025, and encouraged remaining shareholders to transfer their shares to the New York Stock Exchange [27]

Financial Data and Key Metrics Changes - In Q3 2025, Innoviz generated revenues of $15.3 million, with year-to-date revenues reaching $42.4 million, approximately 2.3 times higher than the same period in 2024 [6][30] - Cash burn for the quarter was $14 million, expected to decline sequentially in line with guidance for decreasing year-over-year burn [7][30] - The company ended Q3 with approximately $74.4 million in cash, cash equivalents, short-term deposits, and marketable securities, with no long-term debt [30][31] - Gross margins for Q3 were approximately 15%, with year-to-date margins around 26% [32] Business Line Data and Key Metrics Changes - The company reported significant progress in its LiDAR production, shipping more units in Q3 compared to Q2, aligning with plans to ramp up production [7][30] - The Innoviz Smart platform is gaining traction in non-automotive applications, with several engagements announced and the first perimeter security installation completed [21][22] Market Data and Key Metrics Changes - The LiDAR market is consolidating, with a declining number of relevant automotive LiDAR players, indicating a "winner takes more" scenario [8][30] - The company is experiencing increased demand for its LiDAR solutions across various end markets, including autonomous driving and perimeter security [8][21] Company Strategy and Development Direction - Innoviz aims to be the world's premier large-scale supplier of best-in-class LiDAR solutions for autonomous driving and beyond, with a focus on expanding its technology across diverse segments [8][35] - The company is set to unveil the Innoviz 3, which will offer a 60% smaller form factor and improved performance, targeting both automotive and non-automotive applications [27][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year targets and highlighted the importance of recent agreements with major OEMs for Level 4 autonomous trucks [6][28] - The competitive landscape for automotive LiDAR solutions is becoming increasingly limited, with fewer companies able to meet OEM performance requirements [8][43] - The company expects to see a twofold increase in revenues year-over-year for 2025 to 2026, driven by the ramp-up of production and new engagements [28][29] Other Important Information - The company achieved key automotive standard certification for LiDAR testing, allowing it to avoid costly external testing [7] - Innoviz's time of flight technology is positioned as the preferred solution for automotive LiDAR, with ongoing interest from customers previously committed to FMCW technology [25][26] Q&A Session Summary Question: Update on L3 development program for consumer vehicles - Management indicated that discussions are ongoing with the top five OEMs, with several items delivered and awaiting further stages of the process [37][38] Question: Changes in the competitive landscape - Management noted that the competitive offers are limited due to geopolitical consequences and other companies being unable to meet needs and timelines [41][43] Question: Incremental investments in sensor fusion - Management explained that the approach differs between automotive and non-automotive applications, with various software components provided for integration [47][48] Question: Cost reduction trajectory for next-generation products - Management expects continued cost reductions through technology advancements and industrialization, making LiDAR more accessible [54][56] Question: Insights into L3 and L4 discussions with automakers - Management highlighted a sense of urgency among OEMs to differentiate and accelerate Level 3 and Level 4 deployments, with ongoing discussions about urban applications [61][62] Question: Details on L4 Commercial OEM win - Management stated that further details will be shared in the coming weeks, with multiple sensors expected per vehicle [72][73]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $2.2 million, a 6% decrease from Q3 2024, primarily due to one-time prior year Seastar Medical Quellimune sales and a decrease in international revenues [9] - On a proforma basis, revenue grew approximately 7% year-over-year after excluding the Seastar Medical revenue and the decrease in international revenue [9] - Gross margin for the quarter was 65.2%, down from 70% in Q3 2024, primarily due to underabsorption of fixed overhead from lower production volumes earlier in the year [10] - Operating loss for the quarter was $2.7 million compared to an operating loss of $1.5 million in Q3 2024 [11] - Net income attributable to common shareholders was $469,000 or $0.56 per share, compared to $2.4 million or $73.23 per share in the prior year quarter [11] Business Line Data and Key Metrics Changes - Heart failure and critical care customer categories saw revenue increases of 41% and 15% year-over-year, respectively, while pediatrics declined by 7% [10] - There was a 15% year-over-year increase in consumables utilization, which partially offset the revenue decline [9] - All customer categories experienced year-over-year growth in circuit sales, with heart failure and critical care benefiting from stronger console demand [10] Market Data and Key Metrics Changes - The company is focusing on three growth areas: critical care, pediatrics, and hospital-based outpatient heart failure therapy, which are expected to define a new standard for precision fluid management [13] - The introduction of new products, such as the 24-hour Aquadex circuit and dual-lumen extended length catheter, is aimed at expanding access and compatibility across care environments [6] Company Strategy and Development Direction - The company is transitioning manufacturing to KDI Precision Manufacturing and exiting European operations to sharpen focus on the U.S. market [7] - The strategy emphasizes clinical value, scalability, and growth in precision fluid management across the cardiorenal continuum [8] - The company aims to build a sustainable growth model centered on technology, evidence, and access to improve patient outcomes [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made in Q3, highlighting the growing adoption of Aquadex therapy and its impact on fluid management in hospitals [5] - The company anticipates realizing incremental cost efficiency from the manufacturing transition beginning next year, which should support margin expansion [10] Other Important Information - The company ended the quarter with $3.1 million in cash and cash equivalents and remained debt-free [12] - A net equity raise of $1.9 million in Q3, combined with a $4 million raise in June, provides flexibility for continued execution of the U.S. revenue growth strategy [12] - Recognition was given to Rob Scott for his contributions as Chief Financial Officer during his tenure [13] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions from participants during the Q&A session [15]

Financial Data and Key Metrics Changes - Total net revenues for Q1 fiscal 2026 increased by 2.8% to $15 million, compared to $14.6 million in the prior year period, driven by a 9.4% increase in subscription and support revenues [15][5] - Gross profit for Q1 fiscal 2026 was $5.9 million, or 39.4% of net revenues, down from $6.6 million, or 45% of net revenues in Q1 fiscal 2025 [16] - GAAP net loss attributable to the company for the quarter totaled $2.4 million, or $0.20 per diluted share, compared to a GAAP net income of $71,000, or $0.006 per diluted share in the prior year period [17] Business Line Data and Key Metrics Changes - Subscription, SaaS, and cloud support revenues increased by 9.4% to $9 million, compared to $8.2 million in the prior year period [15] - Total services revenue decreased to $6 million from $6.4 million in the prior year period [15] Market Data and Key Metrics Changes - The company achieved significant milestones in the Asia-Pacific region, including a strategic cooperation agreement in China focused on integrated financial services for the automotive industry [8] - The company maintained a sizable market share in the Chinese auto finance market and became a partner of choice for Chinese OEMs and asset finance companies looking to expand abroad [9] Company Strategy and Development Direction - The company is focused on expanding its global footprint through its AI-powered Transcend platform, aiming to simplify and optimize every stage of the asset, retail, and commercial lifecycle [20] - Ongoing investments in artificial intelligence, including the launch of CheckAI, reflect the company's commitment to intelligent automation and asset finance [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment due to macroeconomic headwinds, including credit tightening and rising auto loan delinquencies, but emphasized that the business fundamentals remain solid [10][13] - The company is targeting full-year revenue guidance of 5-7%, supported by a growing pipeline and investments made in its go-to-market and AI-enabled platform [13] Other Important Information - The company experienced a 36% increase in selling and marketing costs due to strategic investments in expanding its global sales organization [11] - The cash position as of September 30, 2025, was $22.7 million, providing ample liquidity to support ongoing growth initiatives [19] Q&A Session Summary - There were no questions from participants during the Q&A session, indicating a lack of immediate inquiries regarding the company's performance or outlook [23][28]

Financial Data and Key Metrics Changes - The company reported revenue of $10.5 million in Q3 2025, down from $14.4 million in the same period last year, with gross profit decreasing to $4.8 million from $6.6 million in 2024 [5][6] - Adjusted EBITDA for the third quarter was $0.8 million compared to $2.3 million last year [7] - The annual recurring run rate (ARR) was $12.3 million, down from $18.1 million at the end of Q3 2024 [6] Business Line Data and Key Metrics Changes - The acquisition of Cineplex Digital Media (CDM) is expected to significantly enhance the company's scale and growth trajectory, with CDM generating approximately CAD 56 million in revenue in 2024 and projected to achieve 25% year-over-year growth in 2025 [7][8] - The consolidated gross margin for Q3 was 45%, consistent with the previous year's 46% [6] Market Data and Key Metrics Changes - CDM operates in over 6,000 locations with approximately 30,000 endpoints, serving major brands such as Scotiabank and Tim Hortons, and is expected to generate over CAD 32 million in advertising sales revenue this year [8][9] - The company anticipates total revenue to exceed $100 million in 2026, with adjusted EBITDA margins in the high teens [11] Company Strategy and Development Direction - The acquisition of CDM is viewed as a transformational move that will double the size of the company and enhance its competitive position in North America [4][7] - The company plans to reorganize its sales force and go-to-market strategy to improve customer acquisition velocity and grow recurring revenue [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pipeline of opportunities and the potential for significant engagements that will reward shareholders [6][12] - The company expects to realize at least $10 million in annualized synergies from the CDM acquisition by the end of 2026, reflecting operational efficiencies and margin enhancements [11][12] Other Important Information - The company financed the CDM acquisition through a combination of debt and preferred equity, resulting in a total debt of $39.9 million as of November 7, 2025 [18] - The board was expanded from four to seven members, adding three new directors to support the next phase of expansion [12] Q&A Session Summary Question: Feedback from customers and partners post-CDM acquisition - Management reported positive feedback from customers, acknowledging the increased scale and capabilities resulting from the acquisition [21] Question: Go-to-market strategy in Canada - The strategy involves leveraging existing CDM customers and targeting Canadian QSRs that have not yet gone digital [22] Question: Retail media opportunity with CDM - The acquisition enhances the company's credibility and capabilities in the retail media market, with expectations of increased traction [23] Question: State lottery pipeline and RFPs - Management indicated a robust opportunity in the lottery sector, with a significant contract already in place and more RFPs expected [25] Question: Growth in stadium business - The stadium vertical is expected to grow significantly, with projections of a 30-40% increase in 2026 [26] Question: Role of the new Chief Revenue Officer - The new Chief Revenue Officer is expected to enhance customer acquisition and conversion rates, addressing previous challenges in this area [30] Question: Content creation team impact - The expanded content creation team is expected to drive growth in the content business, with a target of reaching $10 million in revenue over the next 24 months [32]

Financial Data and Key Metrics Changes - Second quarter net sales were $23.7 million, down from $24.5 million in the same quarter of fiscal year 2025, primarily due to a $1.6 million decline in bedding and diaper bag sales, partially offset by an $800,000 increase in sales of bibs, toys, and disposable products [5][6] - Gross profit was $6.6 million, reflecting a margin of 27.7%, compared to 28.4% in the prior year, mainly due to increased tariff costs on products imported from China [5][6] - GAAP net income for the second quarter was $1.2 million, or $0.11 per diluted share, up from $0.08 in the year-ago quarter, driven by reduced marketing and administrative expenses [6][8] Business Line Data and Key Metrics Changes - Sales of bedding and diaper bags decreased significantly, attributed to a reduction in the number of items included in a major retailer's program [5] - Increased sales in bibs, toys, and disposable products were noted across various distribution channels, contributing positively to overall sales [5][13] Market Data and Key Metrics Changes - The company is experiencing challenges due to the ongoing tariff landscape, particularly on goods sourced from China, which is affecting costs and margins [3][4] - The company is encouraged by recent trade talks between the U.S. and China, which may provide opportunities for growth [3] Company Strategy and Development Direction - The company is consolidating some internal operations to reduce payroll expenses and eliminate redundant costs, which is expected to enhance operational efficiency [4][29] - The management is focused on renewing licensing agreements and is optimistic about future product launches [4] - The company is adapting its strategies to offset the impact of tariffs and is positioning itself to capitalize on growth opportunities as market conditions evolve [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macro challenges, particularly the elevated tariff environment, but expressed confidence in the company's ability to navigate these issues and achieve slight increases in net income [9] - The company is actively seeking new sources for diaper bags to mitigate tariff impacts and is optimistic about the potential for international sales growth, particularly in Europe [42][49] Other Important Information - Cash and cash equivalents totaled $810,000, up from $521,000 at the end of fiscal 2025, while inventory remained stable at $32.6 million [7][8] - The company declared a $0.08 per share cash quarterly dividend, continuing its tradition of returning value to shareholders [8] Q&A Session Summary Question: Increase in sales of bibs, toys, and disposable products - Management noted that the increase was across various product lines and retailers, indicating broad-based growth [13] Question: Commentary on inventory levels - Management expressed comfort with current inventory levels, despite shifts in retailer program resets [14][15] Question: Feedback on the Manhattan Toy website - Positive feedback was received regarding the website's design and user experience [17][18] Question: Sales performance at Legoland - Sales at Legoland were reported as good, although the park opened later than planned [19][20] Question: Advertising budget and results - Management indicated that while sales growth was slower than expected, investing in advertising is crucial for driving future sales [21][22] Question: Diaper bag business outlook - Management acknowledged struggles due to tariffs but emphasized ongoing efforts to find new production sources [42][43] Question: International sales performance - International sales, particularly in Europe, were highlighted as a bright spot, with new distributor agreements being signed [49][52]

Financial Data and Key Metrics Changes - Lifeway Foods reported record net sales of $57.1 million for Q3 2025, representing a 24% year-over-year increase and approximately 29% on a comparable basis after adjustments [2][3] - Year-to-date net sales reached $157.1 million, marking a 123% increase compared to the same nine-month period in 2019 [3] - Gross profit margin improved to 28.7%, up 300 basis points from the previous year [5] - Net income increased to $3.5 million, or $0.23 per share, compared to $3 million, or $0.20 per basic and $0.19 per diluted share last year [6] Business Line Data and Key Metrics Changes - The growth was primarily volume-led, driven by high demand for Lifeway kefir and high-protein Lifeway Farmer Cheese [3] - The company has seen consistent growth across its core products, with product velocities accelerating significantly [5][12] Market Data and Key Metrics Changes - Lifeway Foods was recognized on TIME America's Growth Leader 2026 list, ranking 33rd out of 101 companies and 2nd in the food and beverage sector, highlighting its strong growth and market performance [4] - The company is capitalizing on consumer trends towards protein-rich, probiotic functional foods and the increasing awareness of gut health [4][9] Company Strategy and Development Direction - Lifeway is investing heavily in marketing and manufacturing capabilities to support growth and meet increasing demand [5][9] - The company is modernizing its Waukesha facility to double manufacturing capacity and enhance operational efficiencies by the end of 2026 [8][9] - Lifeway is expanding its product offerings, including the launch of Muscle Mace, a ready-to-drink functional beverage, and probiotic smoothies with collagen [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum, with expectations for the strongest annual sales in company history in 2025 [12] - The company reiterated its target to achieve between $45 and $50 million in adjusted EBITDA by fiscal year 2027 [12][13] - Lifeway is well-positioned to capitalize on the rapid growth in functional dairy and consumer health trends [13] Other Important Information - Lifeway has invested over $9 million in its facility expansion project, with a total estimated investment of approximately $45 million [9] - The company is actively engaging with consumers through initiatives like the Gut Health Glow Up Tour and partnerships with brands like Joe & The Juice and Erewhon [10][11] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $48.5 million, a year-over-year decrease of 6.4% [11] - GAAP net income was $0.9 million, or 8 cents per diluted share, compared to $1.9 million, or 16 cents per diluted share in the prior year [15] - Non-GAAP net income was $3.5 million, or 29 cents per diluted share, compared to $2.8 million, or 23 cents per diluted share in the prior year [15] - Gross profit for Q3 was $13.5 million, a decrease of 8.9% year-over-year [12] - SG&A as a percentage of revenue was 26.1%, a decrease of 280 basis points compared to the previous year [13] Business Line Data and Key Metrics Changes - IT Staffing Services segment revenue was $40.6 million, down 4.4% year-over-year, with record gross margins of 24.8% and average bill rates at $86.60 [8][11] - Data and Analytics Services segment revenue was $7.9 million, a decline of 15.8% year-over-year, with new bookings at $6.1 million compared to $11.1 million in the prior year [9][11] Market Data and Key Metrics Changes - Client activity continues to trend below prior year levels, consistent with broader market conditions [9] - The demand environment remains cautious due to macroeconomic and geopolitical uncertainties [5] Company Strategy and Development Direction - The company launched the EDGE program, focusing on efficiency, growth, and expansion to optimize operations and drive higher revenue quality [6][12] - The strategy aims to position the company as a trusted partner for enterprises transitioning to AI-first organizations [5][7] - The company is focused on attracting top leadership talent to support its growth agenda [7] Management's Comments on Operating Environment and Future Outlook - Management noted that while the current demand environment is measured, they are focused on long-term growth and operational efficiency [8] - The company expects to realize short-term benefits from the EDGE program while reinvesting gains to strengthen competitive positioning [14] Other Important Information - The company had $32.7 million in cash balances and no bank debt as of September 30, 2025 [16] - Approximately 192,000 shares were repurchased at an average price of $7.68, with 214,000 shares remaining available for repurchase [16] Q&A Session Summary Question: Will the buyback program increase? - The company plans to continue buyback efforts in Q4 and may consider entering another Rule 10b5-1 plan [19] Question: Will the number of consultants increase or decrease? - The number of billable consultants decreased to 933 as of October, down from 980 in June [22][23] Question: Can you explain the EDGE program further? - The EDGE program focuses on driving higher quality revenue, process simplification, and disciplined spend management [24] Question: What are the expected costs related to the finance and accounting transition? - The company expects costs to remain within the previously communicated range and to be largely completed by Q4 [40] Question: What are the drivers for bill rate growth? - The average bill rate increased to $86.60, driven by a focus on high-value accounts and complex work [42] Question: What are the key areas of focus for AI-driven efforts? - Key focus areas include data modernization, data consolidation, and AI transformation, particularly in health sciences [44][46]

Financial Data and Key Metrics Changes - The annual meeting was adjourned due to the lack of a quorum, indicating potential issues with shareholder engagement or voting participation [2][3]. Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting as it was primarily focused on procedural matters [1][4]. Market Data and Key Metrics Changes - There were no updates on market data or key metrics provided in the meeting [1][4]. Company Strategy and Development Direction and Industry Competition - The company is actively seeking to obtain a quorum for the annual meeting, which reflects its commitment to shareholder engagement and governance [3]. Management's Comments on Operating Environment and Future Outlook - Management did not provide comments on the operating environment or future outlook during this meeting due to its adjournment [1][4]. Other Important Information - The meeting is rescheduled to November 25, 2025, and will be held virtually, indicating a shift towards digital engagement with shareholders [3]. Q&A Session All Questions and Answers - There were no questions or answers during this meeting as it was adjourned before any discussions could take place [2][4].

Financial Data and Key Metrics Changes - Revenue for Q2 2026 increased by 4.3% to $42 million compared to $40.2 million in Q2 2025, driven by higher shipment volumes to U.S. customers [12] - Gross profit was $6.3 million, down from $7.1 million in the same quarter last year, with gross profit margin declining to 15.0% from 17.5% [12] - Operating expenses decreased to $5.2 million from $5.9 million in the same quarter last year, primarily due to better control of export costs [13] - Net income was $479,000 or $0.04 per diluted share, compared to $665,000 or $0.05 per diluted share in the same quarter last year [14] - Cash and restricted cash totaled $13.7 million, with net working capital of $35.2 million as of September 30, 2025 [14] Business Line Data and Key Metrics Changes - The company successfully completed the expansion of manufacturing facilities, increasing production capacity by approximately 15% to support growing demand [6] - The initial phase of a major collaboration order of over three million pairs of girls' shorts was shipped, with the second phase scheduled for completion by the end of November [9] Market Data and Key Metrics Changes - Apparel exports from Jordan to the U.S. remain favorable with a current effective tariff rate of 15%, compared to rates of 20% to over 60% from other sourcing countries [5] - Jordan's free trade agreements with key markets, including the E.U., U.K., and Canada, enhance its attractiveness as a manufacturing hub [5] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and product mix to enhance year-round production stability and reduce seasonality impacts [6] - A long-term expansion plan is being initiated, which includes evaluating potential acquisitions and developing land to meet evolving market demand [6] - The goal is to gradually improve gross margins to approximately 20% through increased production automation and economies of scale [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates a slightly lower average gross margin in the near term due to new customer acquisitions and product mix shifts [7] - The company expects revenue for Q3 2026 to increase by 19% to 21% over the same quarter last year, with gross margin expected to be approximately 13% to 15% [15][16] Other Important Information - The board of directors approved a regular quarterly dividend of $0.05 per share, payable on November 26, 2025 [15] - The company is closely monitoring regional geopolitical uncertainties and evolving tariff regulations as it advances its growth strategy [7] Q&A Session Summary Question: Revenue guidance for the third quarter breakdown - The company does not break down revenue guidance by capacity increase versus demand increase, but overall capacity has increased by about 10% to 15% [18] Question: Path to achieving 20% gross margin - Achieving a 20% gross margin will take a few years, with improvements expected through expansion, increasing volume, and economies of scale [20][21] Question: Context on inventory increase - Inventory is up 30% year-over-year due to taking on a large volume customer and procuring more raw materials for production during traditionally slower seasons [28][29] Question: Expansion plans and customer details - Expansion is driven by increasing orders from both existing and new customers, including major brands like North Face and New Balance [33][35] Question: Shift in customer orders post-tariff changes - Customers are shifting orders from countries like China and India to Jordan due to lower tariff rates, with significant growth in shipping to Europe as well [37][41] Question: Q4 outlook compared to previous years - Q4 is expected to be better than previous years, with capacity fully booked through February and a more stable demand outlook [43]