Good afternoon, everybody. Thank you very much for joining us here today. My name is Kingsley Ward, and I am the Chairman and CEO of Simply Better Brands, and it is my pleasure to welcome you all to our second quarter update. Our first piece of business here is traditional disclaimers, which I need to bring your attention to, and we'll have that on file. Our first item of business is around our significant addition of some experience and leadership to our board. We've achieved some great milestones over the last five months, and I'm really, really too pleased to report that we've brought Erica, our wonderful entrepreneur, founder of TRUBAR, onto our board to help guide the company going forward. Another fantastic addition to our board is a gentleman by the name of St. John Walshe, who comes from the Omnicom world, a $15 billion advertising group. He was running the $3 billion group, BBDO, inside of Omnicom for many years. Through a relationship here, Richard Kellam, on our board, he was invited on, and he's been just a fabulous addition to the team. The other high-level news I'd like to report is that, I decided to take on a full-time role here and permanent CEO of Simply Better Brands, and I'll continue to try to support the company and guide it going forward. It's been a busy, busy five months, and I am pleased to report, though, that we've basically restructured. All our restructuring activities have been completed, and we're monitoring and simply managing some of the final details of these significant pieces of the puzzle. Through the last five months, we've closed, as you see on the slide here, we've closed 10 of 17 divisions. That has left us with a core portfolio of really three brand groups. We'll talk about that in a minute. We've reduced our overhead significantly, and we've realigned all our effort to support our hero brand, TRUBAR. Next slide. You see here the TRUBAR, seven different products that we offer, and that's expanding as we speak. We have this incredible business that Erica has built over the last five years or so, and really, she's done an incredible job considering the fact that she really had no resources under prior leadership. Until we really came in and restructured things, it was a very, very difficult build, but yet she was able to achieve the spectacular milestone of almost $25 million in revenue last year and got us on a clear guide path to $45 million-$50 million this year. So we'll continue to work with Erica on TRUBAR. We've got our smaller lines, the NextGen Beauty line, No BS, and our plant-based wellness lines that we'll continue to incubate while we also are out looking for our next TRUBAR. Other significant achievements have been made over the last five months with regards to enhancing our financial position. I'm gonna ask Brian Meadows, our CFO, to walk you through some of the highlights of our success to date. Thank you, King. So the first slide, we're looking at the second quarter against the prior year. Revenue came in at CAD 7 million, which was down from last year. Now, the reason for the decrease was in our non-core brands, as we talked about earlier, TRUBAR being our flagship. It was ahead 0.3 million quarter-over-quarter, and our CBD brand was down 1.7 million. Reason for that is we were looking for profitable growth going forward with that business, and we found the affiliate marketing that we were doing was causing losses, so we've refocused the business. That's the big reason for the revenue drop. Margin, though, a good news story there, $3.3 million against $1.8 prior year, 47%, an increase to 26 percentage points, and that's led again by the TruBar business, getting our COGS down. Looking at the net loss, so the key message there, $7.1 million, but most of that is all related to fair value charges on our warrants and derivative liabilities. That was about $6.5 of the $7.1 million for the loss. You look at adjusted EBITDA, positive quarter again, second one this year, $0.3 million, and a $0.7 million dollar improvement. So again, significant improvement year-over-year, year-over-year margins with investments in growth. Next slide, please. Looking at the six-month results, came in at $21 million against $20.3. Again, the big growth for TRUBAR, CAD 3.1 million or 19%, and the other brands, mainly the CBD brands, as we talked about earlier, refocusing that business for profitability, that business declining CAD 2.4 million. Margins for the six months came in at 35%, four percentage point improvement over same time last year. Again, the net loss is CAD 7.3 million, driven by the revaluation of our warrants primarily. And on a six-month basis, we've achieved Adjusted EBITDA of CAD 1 million against 0.1 million last year, a 0.9 million dollar improvement. Next slide, please. Couple other highlights we'd like to talk about financially. Private placements. We had a very successful offering in May of this year, brought in CAD 4 million. On top of that, you know, with the success of the business, we're seeing more and more warrants being exercised, and so far, we've seen CAD 1.5 million come in this year. This is really right up till the filings. Additionally, we've had a lot of success improving our debt facilities. We just finalized with a Tier 1 Canadian bank a total of $10 million. These facilities materially reduced the cost of borrowing from 15 percentage points to around 9% per year. And then, this is all secure to support TRUBAR's growth. Lastly, subsequent to the quarter, the company secured CAD 3 million in promissory notes with, two of our board members and an associated shareholder, which again, those proceeds were used to help us complete the, facility with the Tier One bank, as well as provide additional funds for TRUBAR's growth. And with that, I'd like to turn over, the call to Erica Groussman, the CEO of TruBrands, as well as a board member, to talk about our crown jewel. Erica? Thank you, Brian. Welcome, everyone. I just wanna talk about our wins just for Q1 and Q2. We've had an amazing growth pattern. We're very excited about everything that's happening. As you can see, we have just been going in an amazing amount of doors, and anyone who tries the bar just falls in love and is very happy and can't wait to share it. We've gone in more doors than we expected, and as you can see, we... Like Erewhon, just recently, we launched. They are this very high-end grocery store in Southern California, or GNC, which is nationwide. We're in over 1,000 doors. Sheetz, which is a C-store, we did over 700 stores. So just gaining these distribution points is amazing for growth and just, you know, noticing the bar. So it's all very exciting. If you wanna go to the next slide. Here, we're talking about how we got into over... We're gonna be in over 12,000 stores, and we have more coming. Everyone that we present to just is super excited about the bar. Once they try it, they're even more excited, and with these vibrant colors, they know that they're gonna do well on the shelves. Happening, we just went into Whole Foods. We're right now at about 63% of all Whole Foods markets, which is so exciting, walking into the store and seeing it. We will be at about 90% of all the Whole Foods stores by the end of the month and doing really well there. GNC, we launched just a couple of weeks ago, and then some other grocery stores and C stores that we're gonna be going into, coming up here very soon, and we're just thrilled with all the momentum. It's becoming such a craze and just thrilled about it. If you wanna go to the next slide. So here, I'm just... Like, I know I keep saying excited, but we're just thrilled at what has changed. We've got leadership here that's backing us up and giving us the funds. We have. We're well-capitalized now, so we have this plan in motion that we can actually execute on, and we are. And as you can see, we're going in all these doors, we're having amazing growth, and it's just all very exciting. We are committed to executing the plan of $40 million-$45 million, or $45 million-$50 million, excuse me, in revenue for 2024. 2024. You know, we know that that's gonna happen. So we're just very excited, and thank you everyone for joining and for your support, and hopefully, you go pick up a TruBar in your neighborhood store. Thanks, Erica. I'm going to appreciate those remarks, and I'm gonna turn over the floor here to anybody that would like to ask any questions of the team here. I'll try and direct traffic as far as the answers, but we'll open the floor here to any questions, and we have some teammates here monitoring the boards, if there's any ones that come in via text. We have a question in from Trevor. Trevor, you can unmute your mic. Hi, Trevor. Are you with us there, sir? Hey, Kingsley, Erica, Brian, and thanks for taking my question. I have a couple, if that's okay. Absolutely. I'll just start off by asking about, the market reaction today. Despite the outstanding improvements shown over the quarter and over the first half of the year, I can only deduce that some retail investors might be disappointed with the lack of sales growth when compared with Q3 2023. Should we expect the previous announced store additions to be reflected in sales over the second half of the year in order to meet that guidance that was just reiterated by yourself, Erica? Yeah, you know, I'll speak to it. So, you know, we've got amazing partners, and, you know, sometimes things just fall a little bit differently. So, you know, we are very excited about everything that's happening with the brand. Like, we have extreme growth, and we know that our plan is to have the $45 million-$50 million, and we see no issues with that. So, in a nice way of saying, it just happened to be where the quarter fell. So there is nothing to be worried about or- Erica, maybe I'll add some color to that. Yeah. All right? Of course. So folks, in the first, in the first quarter, we referred to the fact that this is not linear, sorta, you know, quarter-by-quarter growth that we're gonna experience. Due to significant activities in some of the retailers, mainly Costco, with some very, very significant in-store promotional activities, significant chunks of revenue move into, from quarter to quarter, and this is what's happened, and, and we see the, the second quarter here, not, not giving everybody the indication that we're on a clear run rate to that 45-50. We've tried our best here to get this message out that we are very, very, committed to our numbers, and we see, we see Q3 and Q4 ramping in a way that we need it, we need it to ramp in order to achieve the guidance. In regards to the stock, I think it's important to note a couple of items. Number one, we have a significant number of warrants that were associated with past activity prior to us really taking control of this business in the first quarter. And, you know, when the stock had performed the way it did, that's drawn attention to these warrants, the people that hold these warrants, and, you know, they're selling the stock and cashing in their warrant. So yep, we have, you know, CAD 1.5 million, as Brian said, of capital into the business, but this is at CAD 0.25, CAD 0.45, CAD 0.50 levels, and obviously, you know, they're selling into the share, the stock that was, you know, priced 80+ at one point, 90+ at one point. So we've got that, plus we've got some legacy shareholders that are not long-term shareholders, that are also in our market, and, you know, we've got some selling pressure. I want everyone on the call to know that we are extremely committed to working through this current selling and getting us back on track to the levels that we were trading at there for a few months. I hope that answers your question, Trevor. That does. Thanks for the very detailed and excellent response. Can I, can I ask a few questions about Costco now? Noting in your MD&A, it stated that the first stage of the rollout was taking place in four of the Costco regions. Do you... Erica, do you have any similar metrics to, to the one you provided for Whole Foods, of the percentage at which you'll be national with Costco? So we actually should be in every single Costco store right now. If not, it should be in the next two weeks or so. But we pretty much are in every single store. They have them in their depot, if that answers your question, whether it's the old flavor or the new flavor, there should be in. Okay, and based on the early indications with the new multi-pack, are you exceeding Costco's $1,000 per store, per week hurdle? They are very happy with the results and, we're doing very well. Awesome, and are you- It's a hot flavor profile. Awesome. Are you still selling two SKUs in any of the regions? There might be in some of the areas, 2 SKUs, but just until the cookie dough and donut have sold through. Okay, great. I'm seeing the word international appear more and more in your press releases. Do you have any updates that you can provide on that front? Any progress from the last webinar with respect to inbound calls from certain key customers? We can't announce anything yet, but we are in good conversations. Okay, great. And my, my last question will be with respect to Amazon sales. We've noticed that there's a couple new SKUs being offered in the form of both an 8 and a 14-pack for the cookie dough flavor. Could you discuss the rationale behind the sizes, and if you have plans to do the same for other flavors and/or additional innovations we can expect in the near future? Maybe a multi-flavor. Yes. Yes, we're just trying to get different price points, right, to allow customers entry point, as well as customers who know they love a flavor. We're also going to be rolling this out for other flavors and, you know, multi-packs. We're just trying to create more real estate upon Amazon. Thank you very much. And my, my last question will just be, you showed the pipeline for the first half of the year. How does the pipeline look for the second half of the year, and what can investors expect over the next few months? I'm not sure. Even better. I don't know if I can say that, but even better. Yeah, I think maybe let me take a shot at answering that, Erica. So Trevor, look, bottom line here is, those distribution points that, those doors that I referred to, in one of Erica's slides, are moving with pace, some ahead of their original plans. And this is why we are very, very confident and excited about what Q3 and Q4 are gonna look like in terms of, you know, financial profile. Does that help? That does. Excellent. Thank you very much for answering my questions, and I'll leave it at that. No problem at all. Appreciate your interest in the company here. We're still open for questions here, folks. We've got some additional time. If anybody would like to ask an additional question, please go ahead. Anything here? I think there's a question from a dial-in, last digits 5507. If you- That might be Noel. Yeah. If you wanna hit star six to unmute your mic. Hi, folks. It's, Noel Atkinson from Clarus Securities. Can you hear me? Yeah, perfect. Okay, great. So thanks so much for taking our questions this afternoon. It's nice to see sort of like a diversifying base of revenue here in the TRUBAR as you just go into the second half of the year. To that end, management has talked on prior calls about some pretty major wins. So, you know, Walmart, CVS, some other folks. So, are you still looking to get those rolled out into those stores in the second half of this year? Yeah. No, absolutely. Appreciate your interest here. And we've mentioned those names in interviews, but until we've delivered product to the stores and we're on site, we're not in a position to actually formally announce the names. But all activities as presented in the distribution expansion slides are well underway, and we are very comfortable that they will light up in Q3 and Q4. Okay. So we've also seen, following on up one of the prior questions, talking about Amazon. So we've seen one of your SKUs, at least one of your SKUs, getting into the top 20 in this category in the U.S. market. We're seeing decent volume to good volume on pretty much every of your major box SKU. So can you talk about what you're doing to support the Amazon growth here? Erica, could you please take that question? Yes, of course. We are, you know, we're internally working on Amazon, and we're doing some ads, you know, just to make it, you know, show up better. And obviously, like, we just spoke about the different pack sizes. So we're, you know, we're just gaining more real estate and more momentum on Amazon as well as creating more monthly subscriptions. Yeah, and I'd like to add... I just wanna add a little color to that comment, Noel. Is this what is so incredible about what Erica has done: literally, you know, we're on a run rate here to $50 million of revenue. And up until the last couple of months, really, there's been basically no oxygen in the room for TRUBAR, both by way of capital to support inventory build and getting product into stores, and second, marketing. So all the results today are exceptional, considering literally there's been no capital really deployed. We are now deploying smaller amounts of capital, but, you know, as we develop here and put more dollars on the bottom line, we're gonna shift more capital into the marketing function. We've also got some world-class folks around the table that are helping us with new activity planned for the fall here, both with social media and e-commerce. Okay, great. And then my last question would just be a sort of a follow-on to that. You know, you're ramping pretty strongly on the revenue side for TRUBAR. Can you talk a little bit about sort of the infrastructure that you're adding and, you know, staffing to be able to support that and support the ongoing growth of those accounts? 100%. Great question, and absolutely. You know, again, you know, Erica had a team of 5 people, really, that were, you know, managing the business up until the last few months. And we are, we've actually, we're in the process of onboarding several new hires with deep sector experience. We also have a consultant to onboard to help us flesh out the needs from a software systems for not one, but several, to run the business and basically be in a position for the company to really keep going beyond the 50.50 million points. So, 100% it's recognized that, you know, we needed to beef up the operations side of the equation, and we are absolutely doing that. In addition to, there's a number of resources that we are getting loaned to us from my firm, VRG Capital, and all these various individuals are all contributing just to supporting Erica in this incredible drive out on the front end. Okay. That's it for me. Thanks so much. Thank you, sir. Appreciate your interest in the business. Thank you. Any further questions here? Not that I can see. Okay, folks. I think that's a wrap then for today. Again, appreciate all your support, and we will look forward to chatting here in the near future. Have a wonderful evening. Bye now. Thank you. Bye. Thank you.
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