Good morning, and welcome to the S&W Seed Company fourth quarter and fiscal year 2021 financial results conference call. All participants will be in listen only mode. If you need any assistance please signal the conference specialist by star key followed by zero. As todays presentation there will be an oppotunity to ask a questions.To ask a question you may please press star then one on your telephone keypad. To reply a question press star then two.please know this call is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead. Okay. Thank you very much. Thank you all for joining us today to discuss the financial results for S&W Seed Company for the fourth quarter fiscal year 2021, which ended June 30th, 2021. With us on the call representing the company today are Mr. Mark Wong, President and Chief Executive Officer, and Matthew Szot, Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question and answer session. Before we begin with prepared remarks, please note that statements made by the management team of S&W Seed Company during the course of this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies, and are generally preceded by words such as may, future, plan or planned, will or should, expected, anticipates, draft, eventually or projected. Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including the risk that actual results may differ materially from those projected in the forward-looking statements, as a result of various factors and other risks identified in the company's 10-K for the fiscal year ended June 30th, 2020, and other filings made by the company with Securities and Exchange Commission. With that said, let me turn the call over to Mark Wong, Chief Executive Officer for S&W Seed Company. Mark, please proceed. Thank you very much, Robert, welcome everyone to the call today. I would just like to start out by saying it's hard to believe after 18 months that COVID could still have such a difficult, stressful effect on all of our businesses. We see that continuing, frankly, through the full fiscal 2022 year. That would be, the summer would be June of 2022 calendar year. We continue to have logistics issues that we're managing. We continue to, as other companies have had, employment shortages and difficulty hiring, and also, we've had to increase wages. Again, we are assuming for our 2022 fiscal year that COVID will unfortunately be a problem that all businesses worldwide are dealing with. The remarks that Matt and I are going to make today, please remember that they're all made in the background of COVID continuing to put stress on our business. With that being said, though, logistics are reasonably under control. We've reorganized the company to have teams that look at the orders, the big orders, especially going to the Middle East and South America and Asia. We coordinate those teams from the plant all the way through the paperwork needed to get these shipments to the customers and through booking the ships and dealing with any problems that happen because as you all know, lots of ship schedules don't hold and are changed at the last minute, and it forces us to change our shipping instructions to our customers. The net-net though is very good news. So far, we have not had a delay. We've had delays, no question about that, but we have not had a delay that forces us with a shipment to miss our customer's planting date. Remember that we're in an agricultural business. There's, in the Northern and Southern Hemisphere for each of our key crops, dates which the farmers like to plant the seed. So far, although the seeds may have been delayed, it has not missed the planting date that the customer wanted to put that seed in the ground. In the end, that of course is a very important fact. We basically continue to get the sales, but it might be delayed from one fiscal year to the other or one quarter to the next. Even with these pressures though, I'm pleased to report that margins are improving. They are higher than last year. We are continuing to believe that we will be able to recognize higher margins for the full fiscal year of 2022. We put price increases on most of our products, and we believe that the proprietary products that we sell will be able to hold those price increases and given a market of high commodity prices that farmers are able to afford those price increases and still see higher value in terms of returns per acre on the seeds that we sell them for their planting crops. In addition, Double Team, our grass herbicide product that's in its really full first year of initiation. Last year we did sell some seed, and we were sold out. This year we have a reasonable amount of seed to sell, and we have seen very favorable results in the field. What I mean by that is when you look at a grain sorghum field that has been sprayed with our Double Team product over the top of the sorghum, two things you'll notice. Number one, the weeds are under control. There basically are no grass weeds in the field. The sorghum looks excellent. There's not browning on the leaves. There's not any dead plants, for sure. We're very, very optimistic that the product really does perform well in the field. The last step, of course, is now that we're in harvest in the Western corn belt of the U.S., so that would be the Mississippi River west to the Rocky Mountains. We're seeing farmers harvest their fields, and we're starting to get back information on yields. In the end, the crop can look very good, the herbicide performance can be very good, and the weeds are nonexistent, but the farmer must get a good yield. We're in the process of verifying that with real data from the farmers that purchased and planted our seed in the spring of 2021 calendar year. We're very, very optimistic about Double Team and very optimistic that the product, once final data is in, will have performed well in the field and that sales for this fiscal year, 2022, will be excellent. The last thing I wanted to talk a little bit about was stevia. As you all know, we announced the deal with Ingredion, the largest stevia seller in North America and the world. Right now, most of the production of stevia leaf comes from China. In China, the leaf is an annual crop. They plant in the spring, and the crop is grown for one year and then harvested by hand. That leaf is taken to an extraction plant and then a purification plant to get the final stevia product that is sold in the market. The markets are growing pretty fast. It's a $1.3 billion worldwide market, $600 million-$800 million in the U.S. The U.S. is the biggest worldwide market. We and Ingredion have been working on a program to produce the stevia leaf in the United States. Our breeding program is in the southeast of the United States, where the conditions of where the plant's growing are very similar to where the plant was originally discovered in South America, in Paraguay. Very humid, hot summers, which stevia plants like. Our system of production, based on our proprietary germplasm, is a little bit different, and our commercial agreements are a little bit different. I just wanted to make sure that I gave enough details so people would understand that. We basically harvest stevia for three years. Stevia is, by its nature, a perennial crop. China does not take full advantage of it being a perennial, but we leave it in the ground for three years. Our farmer customers have developed a machine that strips the stevia leaves off of the stevia plant and does not destroy the plant. It doesn't rip the plant out of the ground, so the plant can produce stevia leaf again in the next year. There's obviously some advantages on a cost basis. You only have to plant every three years. The farmer also has a cover crop that is on his acre of production for three years. Hopefully someday there'll be the ability to get some carbon credits for that part of the stevia production process. Right now, the big goal is that we have convinced ourselves and Ingredion that we can produce stevia leaf in the U.S. at a competitive cost per pound that competes with China. That's a big "if" that the industry was always asking, what would be the cost of stevia leaf if there wasn't a hand harvest, if it was a mechanical harvest? Who would develop the technology to mechanically harvest the stevia and also produce it at a competitive cost? We have done that. That is the basis of our agreement with Ingredion. On the commercial side, though, what everyone on the call should understand is we buy the leaf from our farmers, and we have a back-to-back supply agreement to sell that leaf to Ingredion. We're not really a seed company. We've sort of taken one step up the vertical ladder towards the customer, and we now are the leaf seller to Ingredion, who processes that leaf, extracts the steviol glycosides, and then refines that and sells that to their customers in the beverage and food industries. It's a model that we call a closed-loop model, where basically we don't really sell our seed, we sort of rent it to our farmers who sell back the stevia leaf under contract to us, and they have to sell us all the leaf. They don't have the ability to sell to a third party. We maintain control of our genetics, and we give the farmer a profitable product to produce at a worldwide competitive cost. We're very excited about that agreement, and there'll be more news as we continue to develop the markets in the U.S. The end result will be that the stevia will be produced in the U.S. at a competitive cost to China, and that, as we've all learned with COVID, the supply chains will be shortened. Ingredion will gain a source of production, in addition to China, based in the U.S., and that U.S. production will supply the biggest stevia market in the world, which is the United States market. We're very excited about the agreement, and as I said, there'll be more announcements as we continue to make progress with Ingredion. That will be a big piece of our business going forward, these closed-loop contracts where we're buying the raw material and then selling it to the refiner or user. We like that model. It makes for a bigger addressable market for us. It's not just the seed market, but in the case of stevia, it's the leaf market. We have other addressable markets that we're looking at where we think a closed-loop system will also increase our business and our ability to earn profits. That's my update for the call today. Again, COVID is going to be with us for the full 2022 year is our assumption. Even with those stressful winds on our business, margins look good. Product performance with Double Team looks good in the field. Stevia contract has finally been announced. We've been working on it for many, many years now, and we're very excited about where stevia is going to be taking S&W in terms of new opportunities. With that, I'll turn the call over to Matt, who's got some details on the financials, and then I'll come back and just follow up with some concluding remarks. Thanks again. Thanks to everyone joining us on the call this morning. Starting with revenues. Core revenue, which excludes revenue to Pioneer, was $69.8 million for the year, an increase of 17% compared to $59.9 million in the prior year. Keep in mind that we also delivered core revenue growth of 59% during fiscal 2020. Our financial performance in fiscal 2021 was negatively impacted by the logistical challenges that were experienced widespread across the industry as a whole. Limited availability of overseas containers and ongoing congestion at the ports has delayed shipments and complicated our ability to precisely forecast the timing of shipments in any particular quarter. We are certainly working hard to overcome these dynamics. As Mark mentioned, we had $5 million of sales orders that were expected to ship in Q4 of fiscal 2021 that shifted into Q1 of fiscal 2022. As of today, all $5 million of these delayed orders have been successfully shipped in Q1. Total revenue, which includes revenue to Pioneer, was $84 million for fiscal 2021, compared to $79.6 million in the prior year. As we look to fiscal 2022, we expect core revenue and total revenue to be within a range of $80 million-$85 million. This estimate represents core revenue growth of approximately 15%-20% year-over-year. I just want to stress that we want to be conservative on our revenue guidance given the ongoing logistical issues that are widespread across the globe. I also want to clarify that core revenue and total revenue will be the same number in fiscal 2022, but we will still reference core revenue as long as we are comparing against 2021 numbers. Lastly, the anticipated revenue growth in fiscal 2022 is coming primarily from our two key home markets, the U.S. and Australia, as well as we're projecting growth in MENA as well. Now turning to margins. Adjusted gross margins, which excludes the impact of inventory write-downs for 18% in 2021, compared to adjusted gross margins of 21.7% in 2020. The decrease in gross margins for 2021 was compressed by gross margins in the Australia market due to sales mix as we sold a higher concentration of lower-margin forage cereal products. Additionally, as we've talked about over the last several quarters, we experienced numerous logistical challenges due to the limited availability of trucks, congestion at the ports, and overall rising costs for shipping and transportation Clearly, this is a fluid situation, but at this point, we do expect these logistical challenges to persist throughout 2022, and although we are working really hard to mitigate the impact to our business. Now, as we mentioned in our pre-release announcement in August, we are expecting gross margins in 2022 to show solid improvement over 2021. This improvement is expected to come primarily from the various initiatives we put in place, including the implementation of price increases on many of our products to address the overall rising costs. We're also modifying the terms and conditions of sales contracts to address the volatile and increasing costs of freight and transportation, and we're focusing on other various operational efficiencies. I also want to point out that our Q1 results, which are just wrapping up now, will reflect meaningful improvements in gross margin versus 2021, and this is further validation of the various initiatives we are putting in place. Now, turning quickly to operating expenses. Our GAAP operating expenses for 2021 were $33.9 million, compared to $33.7 million in 2020. I do want to highlight that we recorded a non-recurring gain of approximately $1.9 million on the sale of certain property and equipment as we sold certain assets in California to consolidate production facilities, increase operational efficiencies, and position us for longer term cost savings. If we exclude the non-recurring gain, operating expenses increased $2.1 million from the prior year. This was driven by incremental investments in R&D of $1.2 million, a $500,000 increase in SG&A due to the annualization of our Pasture Genetics acquisition, and the remainder of the increase was non-cash depreciation and amortization expense. We are clearly focused on holding operating expenses and growing the revenue and margin line to demonstrate the operating leverage of our business. As we move into fiscal 2022, I'd like to provide guidance for operating expenses. We project full year 2022 operating expenses as follows. SG&A to be approximately $25.5 million, which includes non-cash stock-based compensation of approximately $2 million. Research and development to be approximately $8 million. Depreciation and amortization to be approximately $6 million. As you can see, we're dedicated to the leverage of the business model in fiscal 2022. Moving to EBITDA, we had negative EBITDA of $13.1 million for the current year, compared to negative EBITDA of $9.7 million in the prior year. 2021 was impacted by a timing shift of product revenues to the 2022 due to the supply chain issues we mentioned and overruns on costs associated with the logistical challenges we've been facing. As we leverage our infrastructure and deliver core revenue growth, our goal continues to be driving towards positive EBITDA contribution over the coming periods. Given the impact to revenues and gross margins, primarily from the logistical challenges in 2021, we did fall short of our adjusted EBITDA and cash flow targets for 2021. As a result, we worked with our lenders and entered into various amendments and waivers with them to address the non-compliance with the covenants at June 30th, and also, more importantly, provide us with further flexibility in the coming periods. We are also in the process of renewing our facility with our bank in Australia and pleased to report that we expect to expand the size of our credit facility there and extend the maturity date to September of 2023. We are certainly grateful that our banking partners in both the U.S. and Australia have worked with us and have been flexible as we navigate through these COVID-related logistical challenges. This is clearly going to continue to be an area of focus for us in the coming periods. With that, I'll turn the call back over to Mark. Thanks, Matt. Just reminding everybody one or two key points. We're very excited about our stevia agreement with Ingredion. That's number one. Number two, the story we're seeing for 2022 is improved gross profit margin over what we saw in 2021. That's because we put in price increases that we think are fair to the farmer, we're doing cost control on our cost of goods. In addition, of course, the success of Double Team, this first big selling season, plus the next few years in the future, is adding to our gross profit margin as a percent because the trades are very profitable and add to our gross profit dollars. We're looking for a good year in 2022, even with COVID sort of casting difficult operating conditions on our business and other businesses around the world. We appreciate everyone joining the call today. Thank you very much, and everybody have a good day. Bye now. We will now begin the question and anser sesion.to ask a question please press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the key. To apply the question please press star then two. At this time,we will pause momentarily to a assemble our roster. The first question comes from Sarkis Sherbetchyan from B. Riley Securities. You may go ahead. Hi, good morning. Thank you for taking my question here. I just wanted to start off with the annual guidance, right? If I look at the core $80 million-$85 million revenue guidance range, that includes $5 million that slipped from the prior fiscal year into this year. The real kind of sales number that you're expecting is between $75 million and $80 million. Maybe if you can break down how that guidance range for the top line relates to your prior to the pre-announcement guidance range of $78 million-$81 million for core sales. I have a follow-up. Yeah. Sarkis, that is correct, what you state, but I think it's important for everyone to remember that on the other end of the fiscal year for 2022, that would be the fourth quarter, we are basically, not projecting those sales that flops over from 2021 into 2022. We are not projecting those sales to be in 2022. We are projecting those sales to be in 2023. Okay. The amount of seed that we feel, especially in alfalfa, that we can ship at the end of the 2022 fiscal year, we're being very conservative, and we're saying that those sales are going to be in the 2023 fiscal year. That's why the 2022 number is a bit lower than, I think some people expected. There's a couple reasons for that,one is obviously, COVID, and the difficulty we're having with shipping schedules, that's mainly containerized shipments to the Middle East. Most of that, the seed that we are not counting in 2022, that we moved to 2023 is in fact alfalfa, non-dormant alfalfa. The other reason is, we've been pulling non-dormant alfalfa inventories down. We basically, on the non-dormant side, we still have dormant alfalfa inventories, but on the non-dormant side, we don't have any inventory left, and we're going to be shipping out of new crop production, mainly from Australia, right? Remember, as Matt said, we had some gains on sale of assets, and that was one of our plants in California. We're shipping our alfalfa out of our Nampa, Idaho plant. Excuse me, our Boise, Idaho plant, Boise, Nampa, it's right between them. We are not expecting that the new crop that comes off in Australia in sort of April, May, is going to be able to be cleaned on time and prepared on time in terms of coatings and blending and bagging to make with these additional shipping problems, because again, we're assuming COVID for the full 2022 year, that we will not be able to ship those shipments that for the last three or four years were in sort of the current fiscal year, that those will be pushed back one fiscal year into 2023. In fact, that's why the number's a little bit lower, I think, than most people are expecting from us. Got it. I guess, is there any type of product line that maybe is underperforming relative to your prior expectations? I think in the pre-announcement you mentioned a few potential delays on certifications for some products, et cetera. Care to kind of delineate that? As a kind of a follow-on or add-on to that, what are you expecting Double Team sorghum adds or contributes to fiscal 2022 sales? Can you maybe provide some numbers to the statements of it being essentially robust? Sure. The Double Team sales, we are still, as I said in the pre-record, we're still waiting for final yield data on each crop, on the crops that the key farmers that we chose to buy our seed this year. Since we were sold out, we were very judicious on making sure good farmers who, what we call bell cow farmers, they're the ones that other farmers look to in their particular region, that those good farmers or best farmers had access to the seed, purchased the seed from us, so that they could get a real feel for the performance of the product. It's hard right now to give you too much guidance. I think in maybe the second quarter we'll know more, although in the U.S., we don't really start our sales booking season till December. That will be a tight sort of forecast. By the third quarter, we should really have a pretty strong view of what the Double Team sales are going to be for fiscal year 2022. I don't mean to kick the can down the road, the farmers, they're sort of show-me kind of guys, and you got to have yield on top of how good the crop looks in the field in terms of no weeds and no damage to the sorghum. You still got to have yield, until we get that data in, which is coming in now through sort of October, it's hard to sort of forecast it. Sorry about that. Your first question again, Sarkis? Aside from the Double Team sorghum, I was wondering if there are any other crop lines which are potentially underperforming? Oh, yeah, you said registrations. Tend to be a little bit lighter. Yeah. The registrations are a problem, as we've said before, because Saudi has sort of changed the rules and what used to take, was kind of a desktop operation, or a submission where you gathered data from other customers' experience and then submitted them to the Saudis or from our own R&D plots. It's a bit more complicated process now. That's moving ahead. This is all in the spirit of trying to create a much more proprietary product line, especially in alfalfa. That is a goal because margins, we believe, in alfalfa are too thin, and we need to have more proprietary stickiness with the customer so that we can hold prices in all markets, and that our average gross profit margins will go up. That's really, I said in my comments, and I think Matt also echoed the comments. Gross profit margins look, in the first quarter, pretty good, and we're still the price increases that we put through and announced to our customer base won't really start hitting for another quarter or two. Remember, those price increases are on new orders that are the bulk of the 2022 fiscal year. The old orders that we're still shipping out of 2021 bookings, those are at reduced prices. Margins in the first quarter have rebounded. That's a good thing. They will even get better as we go through the rest of 2022 because we've got price increases coming in both the U.S. and Australian markets. As Matt said, those are the two places that we expect, in addition to the Middle East, to have the most positive sales gains. I hope that answered your question. Okay. I'm going to hop back into the queue to allow others to ask questions. Go ahead. Thanks. Our next question comes from Ben Klieve from Lake Street Capital Markets. You may go ahead. All right. Thanks for taking my questions. First one, regarding kind of the near-term outlook and the logistical headwinds that you're facing. Can you help us understand the degree to which these logistical issues are impacting your ability to ramp inventory across your big products coming out of R&D? The clones out of stevia, herbicide-tolerant sorghum, and HQ alfalfa. Are those plans on track, or are logistical issues impacting that? Great question, Ben. One thing that's nice about our business is while the seed is in development and testing, so that process that you described where we're sorting through the genetic variation in a crop, we do that with standard breeding techniques, but also, we use molecular techniques to look at the DNA inside the breeding lines. All of that stuff is actually under our control, right? It's small volumes, so there's never a truckload quantity until much later down the process when we're actually selling seed to our seed production growers. Those things are not really very affected by COVID. The fact that we have a product that when you plant it grows into the product you're going to sell, we don't have any real issues with people supplying parts or chips or anything that we need, like automobiles, to keep our production line going. We're in charge of our own production line, and we have the product that grows into the product that we're going to sell to a farmer. That's actually not a problem during COVID, the question you asked. The problem is later when we have large amounts of seed, and I should know how many containers per year that we sell, but it's hundreds. It's at that point that we're sort of at the mercy of changing shipping schedules and stuff like that and port closures and re-infections of different populations around the world. Two of the ports in Australia are semi-closed right now. It's later on in the sales process, as we bulk up to larger amounts of seed. That's when there is a problem. At the beginning, when we're in control of the seed and making decisions about breeding and development, that's pretty much not affected by COVID. Got it. Okay, that's helpful. I think you already answered this question, but I'm going to re-ask. I'm going to ask anyways. When you look at the kind of geographical and product challenges that you're facing, which everybody's facing, I totally get it. Is it fair to say that the biggest challenges you're facing here are on the international side and specifically within alfalfa, that maybe the domestic business, particularly sorghum, is not facing as big of a challenge? I think that's fair. I'd say it a little bit differently. The international shipments, especially to the Middle East, that are coming out of mainly Australia and some out of the U.S. are the major problem. Trucking in the U.S. is a bit of a problem. It's not like normal. We opened, in 2021, a couple more warehouse sales depots so that we could move product back towards the Mississippi River, basically, and have that available for farmers. That's one place where we had some additional expenses that we didn't budget for in 2021. It's a trucking issue, right? It's not a container unloading issue. Those pictures that people see of the ships in L.A. or San Diego waiting to come into port, and the crane operators running at half capacity because crane operators are sick or went to other jobs. That problem obviously doesn't exist if you're working with trucking. We do have some U.S. product that comes from overseas, and that product is coming by ship, and so that can be delayed. In general, yes, you're correct. It's mostly the container-based international shipping. In Australia, there's trucking issues also, and we're moving distribution of our products, both the production of them and the distribution of them, storage of them, back to the eastern part of Australia, which are where the markets are. It's kind of the same philosophy that we've taken in the U.S., is in the U.S., we want to be close as we can to the western corn belt in terms of plants and office operations and sales operations. We're following the same thing in Australia. We're moving a bit from the Adelaide area back east in Australia, because Adelaide's really been the traditional alfalfa production area, and we're moving back on a production basis. We've leased a new plant back in the eastern part of Australia, and we think that that's going to allow us to be able to control our costs and cut our delivery times to Australian customers. Got it. That's all helpful context. I'll ask one more big picture question for the longer term, then I'll get back in queue. All these challenges that you're facing, I get it. I think everybody gets it. Everybody's facing it. Curious the degree to which you see these issues unfolding here in the context of your fiscal The kind of longer-term outlook that you laid out into fiscal 2024 and beyond, that you laid out last, I guess, December when you provided the tech update. Is that kind of trajectory still in line through 2024, or do these headwinds that you're facing cause you to revisit that at all? No, we think that trajectory is still in line. Obviously, it was a high growth, high profitability trajectory, but we still think those numbers are achievable both on a sales and margin basis. As I said, Double Team is performing super well, so that's a plus. The stevia deal with Ingredion, at the time that we did those forecasts, we obviously were already talking to Ingredion. Now we have a much better feel for what the sales growth might be in our leaf sales, because remember, we're selling leaf, not seed in that case, because it's a closed-loop deal. We're thinking that certainly by the end of that timeframe, that stevia will have a significant financial effect on the performance of S&W. That does it for me. Best of luck, and based on all these logistical issues, I'll get back in queue. Thank you, Ben Klieve. Again, if you have a question, please press star then one. Our next question comes from Gerry Sweeney. You may go ahead. Hey, good morning, Mark and Matt. Thanks for taking my call. Morning. Morning, Gerry. Mark, we've talked a little bit about the strategy in Double Team sorghum, and part of that is licensing it to other larger players and distributors because of, obviously, their access to the market. How is that strategy playing out right now, or is that still sort of linked to waiting to see how the yields come back on this harvest for the Double Team sorghum? It's a little too early to give you anything definitive, but an excellent question. We're following, as I've said before, kind of the Monsanto strategy that carried them to super high profits in the 2000s. We basically put these genes in our own seeds and sell those to farmers because they're so profitable and it drives proprietariness of our product line and share shift to us. It differentiates us certainly from the sorghum companies that are of our size. Also, we license those traits to other companies, and the two target companies are Bayer and Corteva, who have respectively the DEKALB and Pioneer brands. They're probably, between them, 45% of the grain sorghum sales market, which is our main target for Double Team. They're significant, and that's why your question is an excellent one and so on point. We're waiting for yield data. We're obviously speaking to both of those companies. We know them well. They know us well. They want to see also what the farmer's experience is, and yield data is kind of the last hurdle to move through in terms of having people really understand that your trait gives protection, and that the farmer has significant positive results. Of course, as we see more years of results in the field and we get more acres of Double Team in the market, we'll begin to understand the benefits of the trait. We will have discussions about what is fair pricing and all of those kind of things for the farmer. We've been conservative on estimating what the benefits to the farmer are, we're hoping that as we learn more, we'll find out that the product actually performs better than what our forecasts and estimates internally show. Got it. Switching gears to the Ingredion agreement. Yeah. What are the steps from, say, the agreement today to harvesting some leaves? Sure. A little bit of background on the industry is probably appropriate. The leaf production basically that supplies most of the world market is done in China and other countries in Asia, but mainly China, for cost reasons. Ingredion purchased a company one year, 1.5 years ago. The company is called PureCircle, and they basically were in the leaf production and extraction business. The only large extraction plant for taking stevia out of leaf is in China. The only purification plant for then taking that material and processing it into the white powders that are sold to the food industry is, I think it's in Singapore or Malaysia. Those are historical issues. Right now, if you built new plants, you'd build them next to each other for logistics and cost reasons. That's what's going to happen in the future. Right now, the only big extraction plant is in China. It's hard to believe that given the sort of billion-dollar market size plus worldwide that that's the case, but that is in fact the case. Our agreement is basically, we grow under this very unique three-year system that uses our proprietary germplasm and establishes a cost that's competitive with China. The only way to get real production information in terms of yields of final amounts of stevia is by taking your leaf to China and having the leaf go through that production plant, because there is no other production plant anywhere in the world. That's what the first step of our agreement with Ingredion is. It's to basically take our unique germplasm that's been produced with this clever three-year production system and see what the real yields are. We expect that the yields are going to be as we have predicted, because we have good science, and we know how to analyze stevia leaves. We break down our production and yields into about 15 different rebaudiosides or steviol glycosides, and we follow each of them in all of our breeding lines. We have every expectation that out of the plant you're going to see the kind of yields that we're projecting from our breeding materials. It's like everything else. You're not going to commit the $250 million-$350 million to build a new extraction and purification plant side by side. Those would be built in the U.S., so that's where the new plants would be built, until you get this verifying data of our research production data. It's scale up, right? It's what ag always goes through. There are these scale-up steps, and this is the next one, and that's what this deal with Ingredion will get us through. Then we're in discussions about where a plant would be built and how big it will be and all of those kind of things. That's in the future. Yes, we're partners with a unique production in germplasm with the biggest stevia seller, and there will be production in the U.S. The only question is how long and how big will that production be. Got it. I appreciate it. That's it for me. Thanks. Yeah. Thanks, Gerry. Our next question comes from Jonathon Fite of KMF Investments. You may go ahead. Hey, good morning. Good morning, Mark. Good morning, Matt. Thanks for your time today. Appreciate the updates. Yes. Sure, Jonathan. I have a couple follow-up questions. It's good to hear the discussions with both the U.S. and Australian banks are going well. Given your prognosis for some degree of cash burn over the next couple of quarters as you guys kind of get to EBITDA breakeven, and just looking at the June balance sheet with a couple million dollars on hand, just wondering about the progression of accounts receivable collection, inventory conversion, and where cash stands today, and how you're looking at cash management over the next couple quarters. Yeah, sure. Great question. When a company has EBITDA losses like S&W has. It's always a fair question, and it's one that investors should ask. We obviously understand that the balance sheet is what powers the income statement, and that's kind of what entrepreneurs do understand, that maybe when you're in a bigger company and you can just call treasury to come up with more funds, you don't understand that. In a small company, you do understand that. We've been pretty good at creating opportunities, whether they be through sales of assets or new deals that generate cash that is non-dilutive, so we don't sell shares to the other party to generate that cash. Obviously we are working on some of those things. If we can't raise enough cash through those means, we expect more towards the end of the year that potentially there'll be small sales of equity to make sure that we do have enough working capital to continue the operations of the company. Okay. We'll look forward to those updates. I appreciate that. Sure thing. City. Thank you. Our next question is a follow-up from Sarkis Sherbetchyan, but from B. Riley Securities. You may go ahead. Hey, thank you for taking the follow-up. Just a real quick one. I think we talked about gross margin, the prepared remarks in the Q&A session. I suppose qualitatively, it's gonna be good. Can you frame a number around that? It sounds like Q1 is gonna benefit from the $5 million incremental that slipped in from the prior quarter. I guess, either for the annual period or the cadence of margins, can you guys just kind of frame a number to those? Yeah. Matt, maybe you want to try to answer Sarkis's. Sure Question, please. Yeah. Sarkis, as Mark mentioned, we certainly are seeing a nice improvement in Q1 gross margins. As a reminder to all, Q1 is primarily a non-dormant alfalfa quarter, which historically has carried thinner margins. We're really encouraged. The results are still fine, or not, but preliminary, and we have shipments coming down right to the line here over the next couple of days. Margins in Q1 will probably be up eight percentage points year-over-year for Q1, which is obviously a nice improvement and we're really encouraged by that. Mark talked about we're still sort of in the early innings of the various initiatives that we're putting in place to expand gross margins in 2022 and future periods. As we look out for the full year, I think it's mid-20s, 25% range of gross margins, which again, is probably close to eight percentage point improvement year-over-year is what we're expecting. We're excited about the launch of Double Team, and as we move more and more products to a proprietary nature, that certainly is providing the runway to expand margins and get to those gross margin targets that we talked about in our three and five and 10-year plans. Okay, that's all from me. Thank you. This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Thanks very much. I want to just thank everyone for being on the call today. The messages I'd just like to leave everybody with is that 2022 is also gonna be another good year in terms of growth, but a better year in terms of margins, as Matt's laid out. Potentially 8% improvement in actual margins, gross profit margins for the 2022 year over 2021. Double Team is looking really good and as we gather more yield information, we'll be updating investors on our view of how those sales and margins are looking. Again, stevia, to remember, it's a bigger addressable market for us. It's moving up towards the customer and supplying a raw material to people who then, like Ingredion, make it into a product that they sell to consumers and to manufacturers. We're excited about all those changes. It's been hard earned over the four years that I've been here. Team's really done a great job. Yes, we had a little hiccup in 2021. I think COVID has sort of kicked us, and we've learned how to manage the business a little bit better, as we should when the business is under stress. We're looking forward to a good 2022. Thanks again, everybody, and thanks for being on the call. Bye-bye. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.