William Gregozeski: Okay. And then you guys have really, over the last year, reduced receivables and inventory quite a bit. And even after that $4 million, you still have $10 million on the balance sheet. Is there any plans for that, or is it really just to cover you guys, to wait and see how the market turns?
Dan O’Brien: Yes. That’s — there is an interesting thing. I look at that and say, hey, do I have a $10 million. Can I write a $10 million check, and Bill, the answer is no, we can’t write a $10 million check. Accounts receivable, cash-like items go into that cash position. Inventory is part of it. We’ve invested in additional inventory when we can find it at lower prices. But as you say, our inventory is down, our accounts receivable are down. The accounting definition of cash is up. But my opinion is we need to right our ship before we try anything new. And as I said to the previous question, we’ve got some work to do.
William Gregozeski: Okay. And last question. Why were your options that you got last year canceled? b Well, that’s a personal tax situation that was the options were going to cost me more money than in taxes and then they were worth to me. So I asked to have them canceled.
William Gregozeski: Okay. And then will we get — will you guys take a reverse on the expense you’ve taken on that so far in the fourth quarter?
Dan O’Brien: In theory, yes. With options, I’m always surprised that there seems to be an accounting program here that the auditors use where you pay when you issue them and you pay you when you cancel them. I’m receiving information that this may not be true this time because they hadn’t invested. But either way, it will be one of those noncash numbers that we strip out to show our operating performance.
William Gregozeski: Okay. Alright, thanks, Dan.
Dan O’Brien: Thank you, Bill.
Operator: The next question comes from Raymond Howe with CFP. Please go ahead.
Raymond Howe: Good morning. How are you there?
Dan O’Brien: Doing well, Raymond. How are you.
Raymond Howe: I’m good and thanks. A little follow-up on the question the previous caller asked about company D. Because it looks like that was the majority of the sales decline in both year-to-date and third quarter. Can you reiterate what you said about the company D’s problems?
Dan O’Brien: Yes. Company D had one or many. I mean, obviously, they don’t share all their data with me. One or many customers buying agricultural inputs, and they were unsuccessful in resigning those customers year-over-year, and it’s resulted in a — you’ve seen a huge shortfall, $4 million across the nine months. Company D is attempting to recover those sales, but there’s no guarantees there. Company D is in very good general shape. We just happen to be every year, every company has some wins and losses, we happen to be collateral damage to one of their losses.
Raymond Howe: Got you. Is that something that accelerated in the third quarter, it looks like?
Dan O’Brien: Absolutely.
Raymond Howe: Company D.
Dan O’Brien: Yes. It wasn’t predictable either. Right up until we didn’t get the orders, everybody was trying to give them.
Raymond Howe: Got it. Okay. Are the build-out costs already been incurred for ENP’s new space, or is that CapEx that’s still to come?
Dan O’Brien: It’s largely done. There may be somewhere between $50,000 and $200,000 still to go.
Raymond Howe: And when will they actually take that space?
Dan O’Brien: They’ve already moved in. Their rent starts being paid to the LLC on January 1st.
Raymond Howe: Okay, great. And I take it that was a relatively smooth transition.
Dan O’Brien: It was smooth at senior management. I can tell you that there were a whole pile of problems that needed to be solved and were solved by our production team, and I got to give them a call out for a really good job.
Raymond Howe: Okay, that’s all I got. Thank you.
Dan O’Brien: Thank you, Raymond.
Operator: The next question comes from [Cory Pritchard] (ph). Please go ahead.
Unidentified Analyst: Hi, my name is Cory Pritchard. I’m a retail investor. I have two questions for you today. My first question is regarding new products, could you speak to the development of new products that you have planned for this upcoming year and maybe going into 2025?
Dan O’Brien: Thanks for joining us, Cory. The new products that we’re planning are all in the food industry. They are all subject to NDA with their perspective customers. So I can’t tell you we’re going to make X, Y, Z. But all of them are intended to either be included in finished food goods or included in finished nutrition goods, either for human consumption or pet consumption. The nutrition products and the food products, we don’t make the final goods. We make ingredients and sell them on to the group who does make the finished goods, puts their label on it and sells it into the retail or industrial world.
