Naz Rahman: Understood. So obviously, you have a lot of initiatives ongoing and very meeting near-term initiatives. But I also — I also want to talk a little bit about your pipeline. Could you provide a potential update on the progress and development of the 510(k) devices you’re working on?
Adam Levy: Sure, sure. So the main thing that we had for the 510(k) devices that pushed them off was our inability to at scale and at an effective manufacturing cost to produce them with the dies and pumps that we currently have. We have tested the new prototype dive. They worked very, very well, and we’re now going ahead and ordering those guys to come in. And so we’re probably going to be ready to manufacture product in the next 60 to 90 days, and then we will submit it for testing and start moving those products forward again. Fortunately, for us, despite that delay, we’ve had so much to work on that that’s only 1 project out of several. But we do think it’s an important project, and we are going to pick it back up as soon as we can manufacture it effectively.
Operator: [Operator Instructions] Our next question comes from Chris Michalski [ph]
Unidentified Analyst: Congratulations on very good results.
Adam Levy: Thank you, Chris.
Unidentified Analyst: So during the LD Micro conference, you said that you wouldn’t need any additional cash to reach profitability next year given this quarter’s cash yields? Are you — do you still confirm this statement?
Adam Levy: Yes. So we are not going to need any cash to reach profitability. But I’ve also always said that if an opportunity presented itself or there was something accretive that we could purchase that we would, at that point, do a financing tied directly to that. So as of right now, our cash loss was well below $500,000, and we still have $3.3 million. Fortunately, when you’re ramping with some of these bigger companies that we now have, you’re not dealing with payment terms like when you go into retail. So I think we’re going to be okay right now. We’re projecting profitability before we run out of cash with a pretty good cushion. But if there is something that we need to do, and it means that, that’s going to allow us to scale and not have a hiccup in the way we scale at that point, we will think about adding some cash. But as of right now, unless there’s a really good reason that we’re going to announce at the same time, we don’t need any cash.
Unidentified Analyst: Okay. This is very good to hear. So congratulations on great growth in SilverSeal — and if I heard you correctly, SilverSeal had very good sequential growth as well as annual. And was there any part of your business that struck sequentially because sequentially, your revenue did not grow that much.
Adam Levy: Sequentially, revenues did not grow that much, but SilverSeal grew. We always have a couple of products that you get rid of that didn’t work out. So when you’re launching a new product, especially when we test our products on Amazon, which is our model, those products will have a very high advertising rate compared to the profitability. So they’re really not profitable as you start acquiring various customers. And then what we do is we watch the overall advertising drop if the product is popular because you get reorders, you get subscribed and saves. And then you have to get to a certain threshold, which is probably around 25% to 30% tacos and our heroes are much lower than that, but then the products seem to be scaling.
We every — all the time, not every product we put out works, we’re dropping products that don’t meet that criteria. So yes, there’s a few products that we drop. That’s part of the weeding and calling process. But the real growth in SilverSeal is no longer going to come from sequential growth on Amazon because that’s a limited market. The next step for us is going to be retail and foreign markets, and that’s what’s coming in the near future.
Unidentified Analyst: Okay. And the retail as you said it’s going to be sometime next year.
Adam Levy: Yes. I think it’s reasonable to think mid-summer, around that time. It’s just the process that retailers go through. All of our meetings have gone extremely well. There’s a lot of interest on several products, not just Silver Seal because we have probably 3 to 4 hero products now that we think would be viable at retail. And as I get a clearer picture, we’ll give you updates on the next quarterly call as to exactly when we think we’ll have products in the marketplace.
