Matt Koranda: Okay, got it. And then maybe just could you just clarify how you guys think about market share whether that be with OEMs or whether that be with retailers. Just curious how to think about €“ you guys have talked about retailers have lower purchase volumes, have you lost any customers over the last couple of quarters or are they just essentially downsizing volume across the board? How do you think about market share and what you’re defending there currently and over the next couple of quarters?
Jared Smith: They’ve downsized across the board. They’ve also realized that they are not profitable in these positions around commodity products. Our position on the U.S. market is less than 1% total market share for the ammunition we manufacture. There is this total market share for the ammunition we manufacturer. There is this massive space out there and the trend line is for premium rifle, which is really what this factory was built around. The facility in Wisconsin is a rifle case manufacturer with the ability to produce pistol cases. And we match that brass capacity with loading capacity, but the beauty of our story going forward is that we don’t have to produce the full capacity in AMMO. Our goal is to support our industrial partners, the large OEM manufacturers out there.
The goal is for us to find the niche products by following the trend lines that we see within GunBroker to be able to orient our production facility around those opportunities. What are those opportunities? It’s rimmed cartridges like . It’s collision across capacities that we’re seeing trend very, very heavy right now due to impacts from the European theater. We are able to follow those because we don’t have dedicated lines to 9 and . We have completely flexible lines dedicated to a range of calibers from 9 to . It’s our ability to meet that new demand because we don’t produce , I don’t have to turn on 9 millimeter or turn off 9 millimeter projectile machines that make up a third of our factory. When we can’t sell AMMO at high margins, we’ll sell brass at high margins.
Matt Koranda : Got it. Super clear. And then just maybe if you could just finally stitch that together for us either Jared or Rob. Just in the way we should be thinking about the path forward for gross margins, especially for the manufacturing business, it looks like GunBroker is relatively rocksteady on the margin front. So, really curious about the core manufacturing business. How do we think about getting back to call it that mid-to-high 20% gross margin?
Jared Smith: Every time we sell a piece of brass, we make anywhere between 20% and 40% margin and even more on the €“ as you go up in caliber, the higher the margin it is. So, .338 Norma Magnum, which we have capacity for, .338 Lapua, .50 BMG, those are 50% to 60% margin plays. So, we don’t have to load. We can sell brass. And when we see opportunities to load, we’ll fill those niche opportunities through our existing shelves. The goal is that in the next 180 days, we will completely turn this ship over to focus on profitability, to focus on throughputs based around profitability. I go into next week with the team here and we are putting down our new budget and our forecast, and I’ll have a lot more to say on this in the following weeks, but we’re €“ because I’ve only sat in this seat for 39 days, there’s still a lot of work to be done.
