Eric Wintemute: Yes. I mean, going into the year, we did see growers stepping up for what they anticipated. One, be a strong commodity price, two, corn rootworm pressure seems to be increasing year-over-year. But the bulk of what I’m addressing is these are orders that didn’t get filled in fourth quarter. And we — our team went out to everybody as we had this Aztec issue and said, okay, here’s the amount of Aztec. We feel comfortable, we may get to everything that you need for Aztec. But for now, let’s place kind of supply chain. This is what H1 kind of allocated out would get for Aztec and then some additional orders for Counter, Force and SmartChoice that would make sure that they’re going to be able to meet customer demand.
So we’ll — as we go through the next 1.5 months, we’ll get a much better picture of what percent of the original Aztec will be met with Aztec and if we do all of it, great, but we produce more of the other corn soil insecticides to make sure that every grower out there gets corn soil insecticide in order to treat this field.
Chris Kapsch: Eric, what are the chances or the risk that because of this issue, you will have lost some opportunity or acres with an alternative to soil corn insecticides.
Eric Wintemute: I mean the alternatives are really us, right? I mean Syngenta has force and bag, but going through the SmartBox system and SIMPAS, obviously, that is our business. And so I don’t think — I mean I think growers will use the product they intended to use and so I don’t think they’re going to not use product. I think it’s more a function of what of our corn soil insecticides they will use.
Chris Kapsch: Got it. And last one, the — since you weren’t manufacturer, synthesizing or compounding this product, I guess, in the fourth quarter, — just curious if you — what — if you could quantify the impact to the absorption variances and gross margins? And does that carry through into ’23 at all? Or is it isolated in ’20 — in fourth quarter ’22. Thank you.
Eric Wintemute: Yes. So fourth quarter, there was the other half of the Aztec molecule that we were not able to make. But there’s another section that does get made, and we’ve — we continue to make that at the Axis facility in Q4. So though the second half of the molecule that then gets combined with the first piece, we didn’t make which is true. So absorption wasn’t as high. But again, we’re doing that in Q1 and into the beginning of Q2. So overall, we’re not seeing any major impact.
Chris Kapsch: Thank you.
Eric Wintemute: Thank you, Chris.
Operator: Thank you. We’ve reached end of our question-and-answer session. I’d like to turn the floor back over for any further or closing comments.
Eric Wintemute: Okay. Well, thank you, everybody, for getting on the call this morning. We’re looking forward to this ’23 year and we’ll be giving kind of the normal guidance that we do for the year at the next call, which I think we’re currently scheduled for March 13. So I look forward to updating you at that point and have a great day.
Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.
