Matt Crisp: It does include the ADM acres. So, when we report on proprietary acreage growth, and we say that approximately 50% year-over-year growth to ’23, we’re including acres that we’ve contracted that have moved volume to ADM. And you’re also accurate. I mean, the difference between the acres that we contract with ADM and the acres that we contract for our own closed-loop, is really who’s carrying the contract and therefore the working capital after the harvest.
Adam Samuelson: Got it. Okay. And then longer-term, where you talked about maybe pushing out some of the revenue contribution of that ADM partnership kind of beyond 2025, can you just elaborate, Matt, on just how – what’s evolving with that relationship and the go-to-market for the various products you’re collaborating on?
Matt Crisp: Oh, for sure. So, the intent isn’t to speak only about what’s beyond 2025, but just that as we’ve revisited our long-range plan and our budget for this year, what we’ve considered is that the revenue recognition and the value share could decline somewhat. And so, we’ve taken a more conservative view. And that’s another reason why when we look at the 2025 expectations for a slightly lower proprietary revenue profile, that we’re anticipating that, that we’re looking at, how do we adjust the ADM revenue recognition to reflect the current market environment and take, again, a bit more of a conservative view over the course of the partnership? So, I hope that answers your question.
Adam Samuelson: No, that’s helpful. And then Dean, just one more clarifying question. The guidance for $27 million to $29 million of interest expense in 2023, that does not reflect any benefits from the refinancing that you’re kind of – you have a signed term sheet for. Is that correct?
Dean Freeman: Yes. No, and in fact, what we’ve built in is prepayment penalties and sort of in the extinguishment of that debt. So, that’s – you’ll actually see as we called out in my script, an increase in the interest charge. However, as we move forward in €˜23, embedded in that number is some of the benefit, if you will.
Adam Samuelson: Oh, okay. All right. Got it. All right. That’s very helpful. That’s all I have. I’ll pass on. Thank you.
Operator: Thank you. . And our next question is from the line of Ben Klieve of Lake Street Capital Markets. Ben, please go ahead. Your line is open.
Ben Klieve: All right. Thanks for taking my questions. Just one for me, kind of following up on your – Matt, your comments on ADM that you just made. Can you help us kind of understand today versus when this agreement was first announced six, seven months ago, how much of the kind of changing expectations are due to kind of changes in the market or the supply chain that have arisen over the last six months versus changes in the revenue recognition, kind of an accounting treatment, kind of perspective versus challenges in getting acreage up and running with farmers. Is it- it seems like there’s a lot of things going on here with this agreement, and I’m just trying to understand kind of what the primary driver is of kind of resetting expectations, if there is a primary driver.
Matt Crisp: Sure. So, the primary driver for the changes is, as you indicated, more market-related. So, the same kind of margin compression that I described for the product portfolio, affects the expectation for future value share derived from the ADM partnership. And so, the way that this agreement is structured allows both of us to participate in the incremental unit economics that we realize with one another. And therefore, as you see the margin compression due to near-term or next two to three years, as we’re anticipating it to be more pressures in the market, premiums with growers being the number one factor that’s affecting that, what we do is over time, we just alter the pace at which we’re recognizing the revenue. And so, Dean can comment on this.
I’m not – I shouldn’t, but the revenue recognition approach has not changed. The way that it’s calculated has not changed. It’s just that as we learn more information, we want to take a more conservative view as we think about the remainder of the period in which we’ll recognize that revenue.
