Robert Barry: I would say that we achieved the revenue numbers we’re looking for, for this year. We’re talking about low single digits. I think above that as we can get more revenue to cover our fixed costs. I would say that the margins – EBITDA margin would improve going forward with more revenue. We look at our expense structure, for example, when Rick and I arrived in October, we had almost 500 employees. As of right now, we have just slightly under 300. So we are looking at our expenses and trying to control those, and at the same time, increased revenue will allow us to cover the fixed costs that we have. So I would hope that this time next year we’re having a call, we’ll be looking at an EBITDA margin in the range that you’re talking about in the mid-teens.
John Bunka: Yes, And Bob’s talking about the expense structure, but – and I said at the onset, the primary challenge we have been working through has been our acquisition costs through our digital spend. And that process has considerable upside. Our external advice has been that we should see significant improvements anywhere from 25% to 40% improvements in our Google spend and in our overall digital spend. Those are where the gains will occur because obviously, the cost of acquiring a customer is meaningful, and that produces the revenue that we can leverage that Bob’s talking about. We have seen both in the industry and we’ve experienced a significant decline in the efficiency of our acquisition cost. That’s been a concern I’ve talked to now for – 8, 9 months now that you can see that that spend has not been as productive as it was in years past.
And that’s the primary driver of revenue. So even though you’re going to look at the marginal cost of the spend, it’s really the productivity, the debt yields that this gain will be made. So the spend we’re making is going to be an important step in getting there.
Unidentified Analyst: Very good. Since the Goedeker acquisition of Appliances Connection, I guess, was completed sometime June and July of 2021, is that where the restatements all went back to or did it go back even past that?
Robert Barry: It was back to – started in the June of ‘21, the year-end audit ‘21. Those statements had to be restated and that started with the acquisition and then continued into the Q1 of 2022. That 10-Q had to be restated.
Unidentified Analyst: Okay. So at the time, the auditors and the investment bank, I guess, ThinkEquity it was, I’m not really sure the name. Is there any impropriety in what was done at the time that current management has noticed or recognized?
Robert Barry: I really can’t get into that. We saw things in the financial statements that we felt we needed to correct, and we did that this year. When we had to do the 2, we had to reaudit ‘21, and of course, audit ‘22. But whether improprieties or not, I can’t get into that. So we just…
John Bunka: Well, there were 2 most – and it’s stocking. I mean, the 2 most meaningful adjustments that were made to the fiscal ‘21 period, one was a matter of the process and the other was a matter of hindsight visibility. The first what I’d call process was the method of revenue recognition and accounting from it was we took great scrutiny on and applied the changes that we have made in ‘22 back as far as we were able to and then they audited. So the change in ‘21 really was to have conformity of the process for revenue recognition, which we employ, which I said on the last call is the standard we should have. And that’s on shipment. We recognize revenue on delivery. So if we’re producing goods, we’re taking – we’re charging credit cards and we’re producing revenue on shipment of goods and that’s the standard.
