Brett Reiss: John, I haven’t had a chance to read the 8-K on the agreement between us and East West. When I read it, what are the key clauses in that contract that I should focus on? What’s important for us in this type of arrangement and putting yourself in the shoes of East West, what was important for them?
John Suzuki: Yes. Let me just step back a little bit. First, this is not a new relationship. We’ve been working with East West for over two years and we’ve had progressive scope increase with them over that period. In fact, the first time I met with their CEO was a year last May and during the supply chain crisis and I was soliciting their help, which they were very nice and accommodating. So, we’ve had a long-term relationship with East West and a successful one in terms of overall performance. And we’ve been taking advantage of their global reach. They have, I believe, 12 manufacturing facilities across the world. The other comment I would make is, when you take a step like this, it’s a major step, because now we’re dependent on East West for making our revenues for a company.
And we don’t take that lightly and picking the right partner is critical. One of the criteria that we used or looked at was picking a partner that was a good fit in terms of size in comparison to BK. And so, when I say that, I mean, there are a lot larger contract manufacturers out there. But if you look at the size of East West, and you look at the size of BK, we’re in their top 10 of their customer base. And so, that was an important factor for me as I wanted to make sure that when we did have problems in the supply chain, and of course, it happens, that they pay attention to us and that we’re just not a small customer on their list, but that we are a significant customer on their list. And so, those are some of the criteria that we looked at when we started down the path with East West.
Now, you can get into a lot of the other details, which are in the contract, right. There are delivery requirements and quality of requirements. but at the end of the day, I think the important thing for this relationship to be successful is, for one, BK, we should never forget that these are our products. They just happen to be manufactured in a different facility, right. So, we own this product. That’s one of the reasons why I kept all the machinery and the production lines in our factory, so that when we make any changes on our product, we can run it through our own facility first before we introduced it into East West and into production. And that does two things, right? One, we get confidence that the change actually works. We understand the impacts on it before we start to introduce it into production.
And the second is, is the time to introduce it into production is very short. So, your disruption in production is very short. We did not enjoy that under our previous arrangements. It was always a battle between getting validation of new products and production. So, I think it’s more than what you can see in the contract specifically. I think the contract is a pretty standard contract that you would see between a contract manufacturer and a company. I think we covered all our bases in terms of ensuring deliveries and quality. And again, I think it’s more about the partner we chose and why we chose East West in the first place.
Brett Reiss: Great. Thank you for the answer. That’s all from me.
John Suzuki: Thank you.
Operator: Thank you. Your next question is coming from Orin Hirschman from AIGH Investment Partners. Your line is live.
Orin Hirschman: Hi. Congratulations on the progress overall, especially gross margin. Can you tell us you mentioned another customer and I assume there’s a lot of tests going on the SaaS offering. Can you kind of bring us up to date? Are there multiple customers that are alive? Have they added any additional clients, so that you could see how this scales for them? Give us whatever you can tell us at this point and are there a lot of tests going on currently?
