Kostas Dafoulas: Yes, I can start on that and you can add to it. Nicole, thanks for the question. One of the things we mentioned earlier, Nicole, is less reliance on contract growers, and that’s going to continue to manifest itself this year and beyond with the onlining of our Heartland facility. So that’s going to reduce our kind of raw costs of the materials and supplies and seeds, et cetera, that we purchase for the business. And less reliance on those contractor growers gives us much more control over our cost structure and profitability, essentially. So as we continue to kind of online and drive more products through our internal facilities rather than rely on those contract growers, we should expect that margin to continue to grow somewhat.
Furthermore, to what Jim was saying, we’re looking to add to our product mix and drive products that are higher margin through the business more shelf stable, so we’re less reliant on the seasonality and sort of potential product issues with plants in general. And I think those two things, as they continue to kind of manifest themselves through our financial results, will continue to drive gross profit. Jim, feel free to add to that.
Jim Kras: No, I thought that was — I mean that sums it up. It’s a combination of factors, but it’s widening the base and the assortment of products so that we have not only — what we’re great at, which is the produce and floral business, but also bring in these higher margin, more shelf stable products. And you see that with pulp, you see that with the vitamins, and I think you’ll see a nice mix which will dramatically impact the margins as we move forward, as we widen the base and deepen our relationships with more items that have better margin.
Unidentified Analyst: Thank you both. That makes sense, and thanks for the additional color on that. And so to touch on pulp for a minute. With the new entry into this new product category, are you exploring any other product categories that you would be looking to enter?
Jim Kras: Yes, once again, I mean, sticking with the zero waste inspired theme and our brand promise of doing more with less, we are looking at products that fit that kind of brand persona. And with that, we’re going to be introducing new products this year that are within this condiment category that we’re looking to lead and drive with the relationships that we have. I mean, being known as a purveyor of fresh and being so prominent in so many of these big box retailers in their produce section gives us permission to develop products that sort of link to what we’re known for. And you’re going to see that type of product introduction and innovation that we’re known for as a company. Kind of go from being fresh into more bottled, more self-stable, more good for you, and more sustainable type of product.
So yes, would be the answer. And that is underway. And I think you’ll see some of the exciting stuff over the next quarter as we get ramped up on that part of the business.
Unidentified Analyst: Thanks, Jim. I’m looking forward to that. And my last question is, can you provide any additional color on how the sales of pulp are going?
Jim Kras: I obviously can’t get into specifics, but what I can tell you is, and this is in our press release as well as the script — that I mentioned in the script. We continue to drive penetration with retailers coming on board. KeHE is a notable one just in the last 30 to 60 days with access to 31,000 doors. We’re continuing to drive that relationship. And we continue to see a very positive response to the product line. And so, I think we’re bullish on how we think this product line is going to do and where it’s going to go.
Unidentified Analyst: Well, great. Thank you for answering all my questions and congratulations again on the results.
Jim Kras: Thank you very much.
Operator: Thank you. As we have no further questions on the line at this time, I will hand it back to management for any closing remarks.
Jim Kras: Thank you again for joining us today. I continue to be optimistic about our business’ future, thanks to our growing retail network, diverse product line, and strict expense control. We believe these elements are key to our continued success and are paving the way for sustained revenue growth. Our focus on financial discipline and operational efficiency is crucial to our strategy as we aim to become cash flow positive. We look forward to providing updates on our progress in the coming months. Thank you.
Operator: Thank you. This does conclude today’s conference call. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation.
