Ladies and gentlemen, thank you for standing by, and welcome to the Mace Security International Second Quarter 2023 Earnings Call. Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. Please be advised that today's conference is being recorded. I would like to now hand the conference over to your first speaker, Mr. Remigijus Belzinskas. Please go ahead, sir. Thank you, Shelly. Good afternoon. Joining me on the call today is Sanjay Singh, the Chairman and Chief Executive Officer of Mace. Please visit corp.mace.com under Newsroom, where you can find additional materials, including the Q2 2023 financial statements, the OTC quarterly report for the second quarter ended June 30th, 2023, as well as our Q2 2023 financial overview presentation. Before proceeding, I would like to point out that certain statements and information in this conference call constitute forward-looking statements and are based on management's expectations and information currently in the possession of management. When used during our conference call, the words or phrases such as will likely result, are expected to, will continue, is anticipated, estimated, projected, and intended to, or similar expressions, are intended to identify forward-looking statements. Such statements are subject, subject to certain risks, known and unknown, and uncertainties, including, but not limited to, economic conditions, limit of capital resources, and disruptions in domestic and international supply chains. Such factors could materially adversely affect Mace's financial performance. It could cause Mace's actual results for the future periods to differ materially from any opinions or statements expressed during this call. I will now turn the call over to Sanjay for some comments about the quarter. Thank you, Rem. Good afternoon. The second quarter was very challenging. Net sales declined by approximately $200,000 or 11.5% when compared with Q2 2022. The majority of the decrease came from one customer. This has been the case for the last 18 months. Orders from Dollar General and direct-to-consumer and international customers nullified some of the overall decrease, netting to a 11.5% decrease. The inventory levels of this one customer stated before were about $1.2 million, most of last year. That dropped to $675,000 at the end of Q1, and it's now at roughly $400,000. We saw a slight uptick in orders from this customer in Q2. We announced the completion of our restructuring that was initiated in Q1 2022. This involved cost reductions, revenue expansion in specific segments that are relatively less impacted by inflation, improvement in operating efficiencies to nullify cost increases, and a targeted working capital reduction. Those actions resulted in an adjusted EBITDA and helped reduce losses in Q2 2023 by $267,000 when compared with Q1 2023. The adjusted EBITDA loss was a negative $283,000 for the quarter ended June 30th, 2023, compared with a loss of $550,000 in the quarter ended March 31st, 2023. We lowered SG&A costs in Q2 2023 by 11% when compared to the same period in the prior year. From a preceding quarter perspective, Mace achieved growth of 5% in its e-commerce platform sales, 317% in sales to international channel customers, and 270% in sales to business-to-business customers versus Q1 2023. We encountered technology issues on our e-commerce platform that had an impact on sales on mace.com and caused it to be lower than that in Q1 2023. However, sales on Amazon Seller Central grew by 44% in Q2 2023 compared with Q1 2023. We shipped Dollar General's back-to-school order in Q2 2023. We expect incremental revenues from the addition of Dollar General, new product expansions at three other existing retailers. Separately, we expect additional revenues effective September 1st, 2023, from our fee-based training new line of business. From a cost perspective, monthly cost reduction opportunities of $150,000 were identified and actions were taken. From a financing perspective, we are in due diligence with two commercial finance companies to arrange a $2 million to $2.5 million line of credit facility. This is our top priority. We closed our extension of our Fifth Third line of credit in July. Also in July, we closed a $590,000 non-brokered private placement of unsecured convertible notes with board members and shareholders. Our critical areas of focus are operate to a positive EBITDA level, secure funding, identify and execute on new sales and product opportunity, increase gross profits through cost productivity, reduce SG&A costs that are not revenue generating, and lastly, use excess inventory to reduce cash inventory purchases. I will now turn the call over to Rem to comment on the second quarter 2023 financial results. Thanks, Sanjay. Our second quarter 2023 net sales were $1.8 million, a 12% decrease from $2 million in our second quarter sales of 2022. Retail sales decreased 24%, international sales increased 88%, business-to-business sales increased 41%, and our e-commerce platform sales increased 20% compared with the same period in 2022. Gross profit for the first quarter 2023 decreased $269,000, or 34%, from our second quarter 2022 results. Our margin rate in the second quarter 2023 was 30%, down 10 points from margin rate of 40% for the same quarter of 2022. Margins decreased in the second quarter 2023 over the second quarter of 2022 due to decreased sales volume, unfavorable channel sales mix, higher freight and component costs due to inflation, and lower plant efficiencies, the effects of which was partially offset by lower manufacturing overhead. SG&A expense for the first quarter 2023 decreased by $128,000 to $1.1 million, or 60% of net sales. The decrease in SG&A expenses is attributable primarily to a $51,000 reduction in salaries and related benefits, $60,000 decrease in advertising expense, and a decrease of $25,000 in legal and professional expenses. Our lower sales volume and higher manufacturing costs resulted in a net loss for the quarter of $629,000, which was down from a net loss of $452,000 in the second quarter of 2022. Second quarter adjusted EBITDA was a loss of $283,000, down $167,000 from an adjusted EBITDA loss of $116,000 in the second quarter of 2022. The decline in the bottom line is primarily attributable to lower revenues. Our borrowing stayed constant during the second quarter of 2023 at $1.5 million. Cash decreased to $377,000 at June 30th, 2023, compared with cash of $431,000 at March 31st, 2023. As mentioned previously, with the supply chain delays experienced in 2021 and early 2022, we had inventory orders that were in progress and could not be halted without a financial cost or implications on future inventory order fulfillment. As such, we currently have a lot of our cash tied up in convertible and saleable inventory. Inventory decreased by $158,000 compared to December 31st, 2022, as the company focuses on reducing its inventory levels. I'll now turn the call back to Sanjay for some additional comments before we take questions. Thank you, Rem. We are targeting $3.8 million of new business in the second half of 2023 and three new product and service offerings in the back half of this year. Revenues from those opportunities will be key to our financial results for 2023. We're going to be laser-like focused on the goals I described earlier. A quick reminder, we will not address or respond to any questions pertaining to our ongoing strategic alternative project. The company has retained financial and legal advisors to assist with this process. At this time, I will stop and open the lines for questions. I would ask each caller to limit themselves to one question with one follow-up, to allow everyone a chance to participate. If we have additional time, we'll try to get you back into the queue. Shelly, please open the line for questions. Perfect. Again, if anyone would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure that your mute function is turned off to allow your signal to reach our equipment. A voice prompt on the phone line will indicate that your line is open, so just state your name before posing your question. Again, it is star one to ask a question. Our first question is coming from Andrew Shapiro. Your line is open. Hi. I have several questions. I'll ask two areas real quick, and then get back out and let others in the queue, and I'll rejoin. Regarding your working capital line of credit with the Fifth Third that's expiring at the end of December, have you paid it down? I know it's fully drawn as of the end of the June quarter. With additional sales and shipments out, have you paid it down at, at all, or what is the latest status of your prospective lenders' due diligence and the timing of a commitment letter in closing with one or more of these new lenders to understand if you're going to get the refinancing done basically in another 10 days or so, by September 1st, or you're going to pay the Fifth Third line down to $1.25 million? We are targeting to pay the loan down by September 30th, 2023, or sooner. We're right in the middle of, you know, a field exam and an inventory appraisal, so we're just three, four weeks away from coming to a close in that process, at, at a minimum. That, the target date is to pay down the loan by September 30th to Fifth Third. Right. Fifth Third has, I, I believe you have a, requirement or you're going to get hit with another $50,000 fee to bring that, loan down by September 1st, which is in another 10 days, or you have to pay... Do you not have to take that loan, limit down to, $1.25 million by September 1st, or is that September 30th? That's September 30th. Okay. All right. Second area of questioning here, I want to understand here regarding, Dollar General, which was given as the, one of the excuses for, sizable maintenance of the inventory. I, I know that you built up the inventory ahead of time, but on the last quarterly call in May, you expected DG shipments in June and July for back-to-school promotions. We're now here near the end of August. School started in some states. Were more of the shipments to DG booked in June, or were they booked in July? Can you provide any sell-through information or insight on if and when you expect restocking the orders from DG? The Dollar General back-to-school shipped in Q2, so before June thirtieth. Those inventories are out in stores. What we are seeing is, we have data that shows that our products are selling well in the stores that are carrying our products. Our products have not made it to all the 10,000 stores, mostly because of store personnel turnover or store personnel shortage. Okay. Can we expect to see further reduction of inventory levels then in the present Q3 if you've shipped most of this DG out in June rather than July? We're going to see reductions in Dollar General inventory, you know, recurring orders, and as the products are made available in stores. We have data that shows that our products have not made it to all the stores. We can't predict the timing, but we are working very closely with the Dollar General team to, to get this back on track. We do expect to see reductions in inventory once that recurring, you know, weekly EDI orders start coming through. Okay. I have other questions. I'll back out, but please let me back in later here. Our next question is coming from Ken Sail with Sail Capital Management. Your line is open. Thanks. Hey, Rem. Hi, Sanjay. Thanks for having this call, really appreciate that. Question about the gross profit margins. We lost 10 points of gross profit margins, and we're almost two months now into Q3. Are you starting to see some of those 10 points returning? The, the reason for the, the 10-point drop were two reasons. Our efficiencies on the plant floor were impacted adversely because of consumption of inventory, and production levels being lower than normal. It was a fixed overhead leverage issue. Mm-hmm. The second was, one of our channels had, lower margins. You know, it, when your sales shrink, those things rise, rise up, and the, the impact is seen even more. Now, the good news is, we're in the middle of Q3, we're not seeing those trends, to that level of extent of, you know, a 10% drop. Great, that's good to hear. One other question, and I will back out to give somebody else a chance. Are you having any sourcing and/or delivery issues of pepper spray manufacturing components? Things like, in some of the past calls, we were talking about things that were kind of delayed or having trouble getting them delivered in time. We are seeing, the same issues. They're not as critical as they were, say, about a year ago. The new thing that we are seeing is, you know, vendors provide dates, and then they're off by three weeks sometimes. For the domestic ones, it's usually related to personnel, and for the international ones, it's just production delays, production runs. There's a variety of reasons that have been given to us. Okay, great. I'll back out. Thanks. Thank you. Our next question is coming from Howard Rosenkrantz with Value Advisory. Your line is open. Hi, guys. I was just going to ask you about the gross margin, so that was addressed. The Dollar General, what is the price point at Dollar General? These are the your other price points at other retailers? It's a smaller spray, so it's $6.99. Okay. Are you giving up a lot of margin on that? I guess you're giving up a lot of gross margin dollars. The annual volumes are projected to be about a bit north of 1.2 million. We're nowhere close to those volumes at the moment because of the reason I stated earlier. Our products are not in all of the 10,000 stores, let alone the 18,000 stores that they have. Our targeted margins are normal retail level margins. Our costs ran a little bit higher, we are working on reducing those costs. Okay. You mentioned that I, I tuned in just a few minutes late. You mentioned there were two other things or, or three things that you guys are doing to get things better. I, I'm sorry, could you just repeat those three? Yes. We are targeting, you know, improving our cost of goods sold. Okay. -our procurement costs as, yeah, as well as our labor- Right. -efficiencies. Yeah. Right. Also using of inventory rather than using cash to buy inventories. We're looking at, you know, using some of our excess inventory. Okay. Okay. I think this is the first time you've provided guidance, and I appreciate that. So, so thank you for that. I'll, I'll back out. Thank you. You're welcome. Our next question is coming from Andrew Shapiro with Lawndale Capital Management. Your line is open. Hi. Thank you. A few more questions here. You gave some insight here about a large customer who had $1.2 million of inventory last year. They dropped their inventory down to $675,000 in Q1. They didn't do as much customer business with you further because they dropped that inventory from you down to $400,000, you said, but it was an uptick in orders here in Q2. Do, do you feel that this is just an inventory level adjustment, or are they getting out of certain SKUs from you, and are you losing share with this customer? Based on the data that we have seen, this is, this is happening for all, all the players in our industry in terms of a reduction of inventory. We don't have, you know, obviously have insight on what our competitor inventory levels were sitting in Amazon warehouses, but we can clearly see that the SKUs that Amazon is sitting on inventory of, those are the ones that we are not seeing replacement purchase orders for because they have too much of it. The ones that they don't have inventory for, they're placing those orders. That, that answers sort of that question. In terms of are we losing market share, we reduced our ad spend on Amazon Vendor Central, because all we were doing is spending money on ads for our items, to be consumed out of inventory. We tried different tactics for a few months. It did not move the needle with or without those ads. Now, that could have resulted in some sales, but it's very hard to prove that, that it did. Okay. regarding your supply chain issues, which it's still a little bit surprising since others are overcoming these.... supply issues. you had talked about the desire to onshore more of the company's supplier and logistics. Can you describe any success that you are achieving in onshoring more of the company's supplier and logistics? Yes. We've identified the SKUs we want to onshore. We're sitting on a lot of inventory. We have to get through that existing inventory first without adding new. We're working on it. We, we work on it every quarter, and we are going SKU by SKU and identifying alternative options. In terms of a ready full fire, that is, that will happen once our inventories, existing inventories are consumed. Okay. You did have, and said that you had some sales shortfalls in the past few quarters regarding certain products that hadn't arrived from Asian vendors, one of those being stun guns. Did your first batch of shipments that you said were going to arrive in May, did they indeed arrive and ship to address backlog, and have the backlog issues fully resolved? Or there are still more sales backlog that you could satisfy if you'd get the product? In terms of backlog, we reduced it by more than 50%. We did get those stun guns, and then we got, you know, more orders of those stun guns. Unfortunately, it's a four-week lead time, a four-month lead time. When demand starts increasing, that's the issue we face there. We've tried various algorithms to address it. The backlog is down, the guns arrived. We actually have more guns going out this month, actually, by the end of this month. If it's a four-month lead time, we've talked on past quarters about... You've, you mentioned, this as an, you know, excuse for, you know, sales shortfalls, is that this is an impulse purchase, yet we're dealing with four-month lead times. This is also a purchase that can be spurred by a spike up of social unrest issues, which obviously come unplanned and have, a, you know, a spike up type of motivational, thing. If that were to occur, how does Mace, and how do you address and satisfy something like this? Are these sales that just get lost to customers, not customers, competitors who have a stronger balance sheet and can maintain such inventory? We have a domestic vendor that we have partnered with to satisfy short lead time demands. Then we also have increased our economic order quantity of the inventory that we carry on some of these types of products. Well, that's what... Isn't that what got us into some of these cash flow issues already? Is that we've ordered a lot, a bunch, a lot of stuff in bulk before and inventory did, and we need to work this inventory down to deal with and address your financing issues. I mean, it's kind of a catch-22. Which way are you guys leaning in terms of addressing this? Well, it's, I mean, the, the excess inventory we are carrying is, is, is across the board because of increased, increased lead times that occurred during 2020 and 2021. Most of the inventory that we are discussing right now, that is excesses, was purchased in those two time periods. What I was describing was the, the items that have a longer lead time that are candidates for things, social unrest and things like that. For very specific items, we have increased our, our optimum inventory, and it is reviewed every single month. We, we have too much, we look at demands, we, we go back 6 months, we go back 90 days. All right. Can you explain your table on slide 10 of this quarter's presentation, which sets forth your second half and full year, second half 2023 and full year 2024 sales targets and pipeline? What do these definitions mean? Can you kind of explain a little bit more about that slide and what you are, I guess one is kind of targeting and one is kind of projecting, albeit it is a forward-looking statement. The new business target column shows items that we have made significant progress on, and in our evaluation, those look like strong possibilities of resulting in additional sales. The new business pipeline is exactly what it is. It's, it's a pipeline. So for example, in the second half of 2023, the pipeline is about $3,000,050.... out of which $844,000 has been accounted for, that we are, have a strong possibility of securing that business. While the new business pipeline is being worked to increase the hit rate out of that pipeline. In the same way, the new business target for 2024, between all the different channels, are roughly $7 million. These have been worked on. As, as you can see, the retail segment is the one that is the, the majority of that number. These ones have been worked on in 2023, and we have had meetings with these folks. We are much further along. That column represents a greater than 75% probability of landing it. The last column, 2024, represents opportunities that we have been working on, but they represent a smaller chance of landing in 2024 because we're not that further along. There are probably about 50 odd retailers that we are talking about here. Okay. I have more questions. I'll back out again, but please come back to me. Our next question is coming from Ken Sail with Sail Capital Management. Your line's open. Yeah, just one more question, Sanjay. You talked about three new products later on in the year. Could you maybe give us a flavor of what those are going to look like? Yeah. The, the very first one is, it's a Dog Leash with an Air Horn. Okay? This is the one that we've, I think, talked about in prior quarters. It took forever for us to get the product in the States. That is the first one. The second one is on September first, we're going to launch our training program. That's our partnership with U.S. LawShield. They, they, they had some technology issues that they've been working through for the last few months while we've tested it. The, the curriculum works, and we're going to go live September first, and this could be a significant opportunity for both companies. The, the third one, it's, it's, it consists of, you know, existing products that are being re-branded. Then the ones that you see, there's another one called Project SG. I can't really discuss it because we, we have not solidified our agreement. These are all co-branding deals, but this is aimed for the direct-to-consumer as well as the base business, not retailers. Okay. Intriguing. Thank you, Sanjay. I'll back out. Thank you. Next question coming from Andrew Shapiro with Lawndale Capital Management. Your line is open. Great. When you referred to Project SG and all that, that's what on slide 12, right? Right. Okay. slide, slide 12 has got all those new things. Are these products part of your forecasting in slide 10, or are they entirely or partially in addition to slide 10's target and pipeline incremental revenues? They are, they are included in- Okay. in slide 10. Some of the expansion... In other words, just to summarize, some of the expansion in revenues will come from these new products and services. All right. When you have the U.S. LawShield, it wasn't clear to me, because you kind of referred to that there had been EDI or other issues in the past on this. Is U.S. LawShield separate and incremental to your co-branding Legal Heat? In other words, your co-branded training thing with Legal Heat, this is just one customer or one product line you're rolling out, or is U.S. LawShield a new name for Legal Heat? U.S. LawShield owned Legal Heat. They sold Legal Heat, a few months ago to another training company, based out of Florida. With the sale came those conditions and obligations, and the partnership with MACE. We are working with U.S. LawShield and Legal Heat to offer this training. In a sense, you have two partnerships, one with a new, with a new buyer. Is that right? The way the partnership was done was we just have one. I mean, from a contractual perspective, it's, it's with U.S. LawShield, but we are working with their team, their marketing team. The entire technology is owned by U.S. LawShield. The access to instructors, you know, will come from Legal Heat and their parent entity. Okay, who's- Way bigger. Right. Legal Heat just got way bigger. Now, they didn't enter into this agreement with you initially. They had to assume the agreement when they bought Legal Heat from U.S. LawShield. Right. Is the arrangement ex-exclusive? Is your relationships with the new owner or buyer of Legal Heat, Legal Heat on, on, good or improving terms? You know, are we subject to that eventually kind of going by the wayside? It's exclusive. Our, our agreement was with Legal Heat. Legal Heat was owned by U.S. LawShield. Our agreement now is with U.S. LawShield directly. Okay. So when you referred last quarter that you expected initial revenues as early as late Q2, this new offering on September 1st, is that oft-delayed initial offering? Or was there any revenues in Q2? No, there weren't any revenues. That's all that testing was done in the last 90 days, the technology issues. Okay, so September first is the initial rollout of what you were going to be rolling out with Legal Heat, and when we see and ask you about this in the future, we should be asking about U.S. LawShield, not really asking you about Legal Heat? That is correct. Okay. Just trying to understand the product line and the, and the, offering. Regarding your another co-branding you've announced and introduced, on the last call, you said, you had 21 orders for your vehicle or perimeter defense system, co-branded with F3, with a component in backlog that would get resolved and shipped in the recent Q2. Did this happen? About what level of sales from this new product line was part of your Q2 revenues? What has been the feedback and indications of success on those systems that you have now delivered? The products that were being sourced and assembled, we did have those supply chain issues, and then we also had a testing issue for one of the components. All those have been corrected. We are in production. We now have to mobilize, you know, the appropriate levels of sales in Q3. Sales in Q2 were minimal. Okay. They, but they, you are selling them now in Q3. We're almost done with Q3. You are selling some product, and are they ramping up? It's ramping up. It's been slow. The directive is to ramp it up significantly. What's the initial feedback from those who have, purchased some? Very positive feedback. Okay. You announced a distribution agreement with a public company, SurgePays, and its huge network of corner stores, bodegas, and gas stations to focus on that sector of the market that you had not previously had penetration in. You said on your last call in May, that you expected to see initial orders here in Q2, or I should say, in the Q2 that's been completed. Can you discuss your experience so far with implementing this new distribution channel and if indeed you received and fulfilled orders? We did not receive orders. So far, you know, we, we missed our commitment on this one. The feedback that we are getting is that because there are, SurgePays is a partner of ours, is they have our products loaded in their system. They have to do the full rollout, but it's, in terms of purchase orders, we haven't seen any. It's been zero. Now, are they obliged to do any marketing of your products for you? Are you planning, and do you feel there's a return to be had, from marketing spend, to create demand pull of this product in their market or not? Yes. Well, the marketing is done by them. They know their customers well. You know, they're acting as, or the distributor of our products, essentially. So the marketing is on their end. We haven't spent a cent on marketing from our side. Now, the idea was to first get enough data, point-of-sale data, to understand who the buyers are and then figure out other ways to accelerate it. We're, we're not there right now. Okay. And you're not really on hooks of these stores yet then, since you've made no sales in, you know, in the other catalog? Yes, it's. We are not on their hooks. That's correct. Okay. On the Q4 earnings call in early May, you said your program with NAPA was on hold until they overcame certain concerns of retailing pepper spray to prevent underage purchasing and other issues, given the fact that they have a decentralized, almost franchisor-like system. Here we are in August. Do you have any new learnings? If you consider NAPA still on hold or a gone opportunity. It, it's still on hold. Okay. What additional focus and opportunity, if any, do you see for Mace in the private label fill business that Mace previously had de-emphasized but had picked up last quarter, which might have just been in bear spray fill? We have a, we have a couple of sizable opportunities, and, and that's one of the items that, you know, is listed in that column on page 10. We're actually working on one that is sizable. There are many, many private label opportunities that we are seeing, and, and, they're soliciting Mace. These are these old customers that you had, you know, separated from that are coming back? These are brand new. Brand new. Okay. Your slide presentation had your e-commerce platform sales up 20% from prior year, but you also mentioned in your script that mace.com had technical problems. What technical problems did you encounter, and have they all been overcome? Yes. There were two technical problems. Shopify is, is the platform we use. They, they had a site-wide update, and it, it, it basically was not allowing certain products to be purchased on site, on the site. We had to work through that. That was one. Another time, there were people's credit cards that were not getting processed, so they couldn't place orders. It, it. All this sort of came up in the middle of the quarter and, and yes, those have all been resolved now. Okay. I have more questions. I'll back out into the queue. Please come back to me if we got time. Again, if anyone would like to ask a question, it'll be star one on your telephone keypad. Question coming from Andrew Shapiro with Lawndale Capital Management. Your line is open. Okay, I may take this over the goal line here. You cited on the Q1 call that there were new product expansions at two other existing retailer accounts, customers, to provide incremental revenues. In this Q2 slide deck, you refer to expanded SKUs now at three existing retailers. Just want to confirm, I'm assuming, but perhaps, you know, maybe better news is it's not. Are the three existing retailers to expand SKUs inclusive of last quarter's two retailers? It, it is, and, as of today, it's now four. Okay, that's good. At the end of Q2. Yeah. Q3. Okay. Did any of these new SKUs ship in Q2, or are they shipping now in the present quarter? Some shipped in Q2, and some will ship in Q3 and onwards. Okay. Did you -- do you have, and can you provide some, sell-through POS experience, and if and when do you expect restocking orders? These orders are placed on a, typically on a weekly basis. That's the frequency with most of the retailers. You should have some decent sell-through POS experience because you're getting restocking orders. Yes. Yes, all the extensions are selling through fairly well. It takes time for retailers to, for, you know, for the sell-through to sort of materialize, because it takes a little bit of time. Typically, it's 90, you know, 90 days is a, is a good time period. Mm-hmm. Now, you mentioned on the last call, and hopefully it starts addressing some of the sales falloff that occurred, especially since you were in two departments and got scaled back to one with the turnover in buyers. Did the new product videos for walmart.com that you said were to roll out soon after last quarter's call get rolled out? Was there any impact or improvement in their POS sales results from that? Additionally, have you presented your different product offerings to their buyers, and what was the feedback or status from the new presentations? Are you, are you, are you digging back into that client and expanding your relationship or no, no luck? I can't comment on the latter, Andrew, but I can tell you that the product videos were all made and rolled out to, to the buyer at Walmart. It's pending a decision from them when those will be uploaded to their website. It takes, it takes some time. That's what we're finding out. Okay. Yeah, certainly does. Q2 sales internationally were up, in, from the prior year. To what extent was this a one or more bulk multi-period shipment versus ongoing recurring quarterly levels? Yeah. These Some of these are new customers, some of these are existing older customers. You know, this is mostly a result of, of the unrest that you're seeing in specific countries, whether it's, you know, Europe or South America. That's, that's what's driving it. Okay. On the Q1 call, you and I discussed the possibility of rolling out a training and certification program for the educational market vertical. Has that initiative moved forward in the past three months since our call? No, it has not. On, on the Q1 call regarding one of the additional co-branding opportunities we discussed, you said that to move forward development of the new out-of-home personal safety product being sourced from China, you had to get the delayed components in the building. Did they ever arrive? What's the status of the development of this new product, or is that the Dog Leash with Air Horn? That's the Dog Leash. Okay, so it's here. Good. What amount of success do you feel Mace has had in addressing other new vertical markets, such as hospitality, real estate agents, security guard markets, healthcare, institutional, et cetera? We've had a fair amount of success, in the hospitals and hotel sector. Okay. That's all I have today. Thanks. Is this the same presentation, the slides that you'll be doing on the annual meeting tomorrow? Yes. Okay. Good to know. Thank you. Thank you. There are no additional questions at this time, so I'll turn the conference back to you for any additional or closing remarks. Oh, sorry, one more just dropped in. Okay, question's coming from Rey Reyes at Abby Investments. Your line is open. Hi, Sanjay. It's Ray. Sorry, I was on the call really late, but did you give any update with respect to the credit line, where we are with that? I did. We are. We had a field exam last week, and we're waiting on some additional diligence questions, and the inventory appraisal is about to, that process is about to start as well. Okay. Do you, do you have any, any, any sense as to when, you know, we might close the deal? Yes. Yes. We are, we're targeting September 30th. Okay. To pay off the third line. Yes. Okay. All right. Thank you. Bye. You're welcome. There are no additional questions at this time, so I'll turn the conference over to you for additional or closing remarks. Okay. Well, thank you very much for jumping on this earnings call, and look forward to connecting tomorrow as well. Bye-bye. This concludes today's call. Thank you for your participation. You may now disconnect.