Paul Carter: Okay. Because it just, I mean the timing of it was right sort of pretty closely aligned to the decision to sell the healthy headquarters. And I was wondering if that had anything to do with it.
Dan O’Keefe: Yeah, no, he had no discrepancies or disagreements with management. That was just a coincidence. He did not disagree with our decision to sell the building.
Paul Carter: Okay. Great.
Dan O’Keefe: He agreed. It was a unanimous vote on the consent to list the building for sale. So he agreed to that before he resigned from the Board. And I will say further that as Craig mentioned, his age is not necessarily in NASDAQ guidelines for an ideal Board of Director and his replacement in the Audit Committee Chair, Brad Stoots, is a financial expert, has a long history in public accounting and is a partner in public accounting. And so we’re very happy with the replacement for the Audit Committee and the addition of the new board member last year.
Paul Carter: Okay. So I know you’re not on side with NASDAQ right now. You need to add another independent director. Where are you in the process of that?
Craig White: Yeah, good question. We have until our next Annual Shareholders Meeting, which is in July. I’ve got some candidates that I’m going to start interviewing in the next couple of weeks. Very solid candidates from the MLM industry. So we’re very — feel very positive about our possibilities there.
Paul Carter: Okay. And then just sort of last question, really big picture. But I mean, obviously, you’re a publicly traded company, public company costs are extremely high, I would think, relative to kind of the size of your company. Have you thought of any either sort of no longer being public or doing a going dark transaction to just kind of reduce costs? Because I sort of wonder from an investor point of view like doing a going dark transaction probably wouldn’t hurt you at this point and conversely being a large shareholder in the company doing like a take private transaction or something might be palatable. Is that something you guys have considered?
Dan O’Keefe: All right. Not anything that we’ve discussed with the Board or made any kind of management recommendations in that direction. There’s always what the future holds is what the future holds, right? But from a management recommendation or from an outside approach. We’ve not been approached by anybody nor have we made any recommendations to our Board to go private?
Paul Carter: Okay. All right. Well, that’s it for me. I’ll pass the floor over to others. So thank you very much.
Dan O’Keefe: Thank you, Paul.
Craig White: Thanks, Paul. Good to have you back, by the way. Thanks.
Operator: Your next question comes from Philip Smith, Private Investor. Your line is already open.
Philip Smith: Thank you. Craig, I just had a quick question regarding the status of the contractually required purchases from Usborne book.
Craig White: Good question. We have not met the contractual agreement, but they have not — they have not given us any indication that they’re going to take any action. They understand where we are, what the environment holds, many, many, many publishers in this space are kind of facing the same thing. So they’re not pressing right now for that. So I don’t anticipate that’s going to be a concern in the short-term future.
Philip Smith: Okay. So Nicola isn’t pushing back and making any demand at this point?
Craig White: Not at this point. She’s, yeah, she understands the environment.
Philip Smith: Okay. Thank you very much.
Craig White: Thank you, Phil.
Operator: Your next question comes from Daniel Balchin, Private Investor. Your line is already open.
Daniel Balchin: Hi Craig.
Craig White: Hello.
Daniel Balchin: Hi. I’ve just got a short question. Do you have — does the Board have some sort of valuation in mind for how much the business is worth just in terms of how they look at — how you guys look at it, how you value the company, how you value the different parts of it, like SmartLab Toys, Learning Wrap-Ups, that sort of stuff. Do you have like a sort of figure that the Board thinks is a fair value for the company at the moment?
Dan O’Keefe: Well, there’s lots of ways to look at that. Certainly, the management team doesn’t feel that the trading value is reflective of what our real value is. We have a book value of $5 a share. So I mean — and we have no goodwill on our books. And so I think that we’re trying to get back to that level first. I mean the book value is all in inventory and buildings. And the buildings are — the carrying value of the buildings don’t reflect the actual value because we’re carrying the building less than $20 million, and we’re looking at selling it for $40 million.
Daniel Balchin: Yes. And is the — is there sort of like a net present value that you’ve got on that inventory? Because obviously there’s $57.9 million on the books. But after all of those sort of costs and everything, do you have like a sort of net present value of what that inventory is sort of worth in today’s money?
Dan O’Keefe: Well, we believe it’s worth the carrying value for sure because otherwise, we’d have to write it down. So I mean our carrying value of our books are typically about 25% of the retail value that we sell them for.
Daniel Balchin: Right.
Dan O’Keefe: So we believe the inventory is definitely worth the carrying value of $57 million.
