So you heard through our guidance, that we’ve minimized the sales targets for that region to what we feel is achievable for 2024. As an example, we talked about obviously the logistic constraints, but the geopolitical environment in Sudan has not subsided, to what we initially thought when we had this call one quarter ago. So, we’ve adjusted our guidance to include zero sales in the Sudan region, as an example. We continue to monitor it. And to your point, if there is an opportunity for upside and/or getting product into the country for demand, then we will absolutely capitalize on it. But at this moment in time, for 2024, we pared back the expectation in Sudan to zero and pared back a bit from Saudi Arabia as well. So, I think all in, when you look at cost containment, outlining processes, and optimizing the supply chain effort into these areas of the country, it’s a high focus for that Australia team, as they not only monitor sales growth, but also the cost of doing business in those countries.
Nelson Obus: Great. So this reduction in LCM is very welcome, from 6.4% to 2.8%. We’ve had some really nasty surprises towards the end of prior fiscal years with inventory write-down. Do you think 2.8% is kind of the cost of doing business? Or do you think that can be reduced further?
Vanessa Baughman: Yes….
Nelson Obus: We’re not the same businesses we were before. I mean, we….?
Vanessa Baughman: Yes. Yes, it’s a great question. And Mark and I experienced 8% of sales is sort of what is the industry norm when you think about row crop. I think we can be better than that. There’s been a lot of work done in that life – cycle management space, just even starting in fiscal – early fiscal year 2023 in the crop planning cycle. And that continues to be refined as we plan for our crop plan for 2024 sales. So, I think we can be better than 8%. We are working towards, a better metric as we lead into crop planning for 2025. But 2.9 seems well within the norm, and manageable for the size of our sales and our crop plans for this year.
Nelson Obus: I realize sorghum customers can return. Let’s hope they like what they get the first time.
Vanessa Baughman: Yes.
Nelson Obus: My last comment, which is probably the most important one. Shareholders have really not been served well by this share dilution that’s taken place over the last five years. The shares doubled. Without that doubling of the shares, we probably wouldn’t be here now. We’d be in somebody else’s hands. But listening to what you had to say, what I found very encouraging, that the $6 million that will flow from Shell into the company should be enough to keep us cash flow breakeven in fiscal ’24. And as we look to ’25, we may even get to being cash flow positive. So, I’m assuming that we may not see any more dilution, and that that would be an important goal of the current management. Is my thinking correct?
Mark Herrmann: Yes. Thanks for the question, Nelson. And I don’t know if we’d be prepared to talk to it right now, and it’s probably heavily future-looking. But I do believe from what Vanessa and I have rolled out of looking at cash neutral this next year. I do believe in the continued growth of the DT, and prussic acid-free platforms that are already launched as of this year as we look to the future. And I do think our leadership in technology, and sorghum with the full pipeline, along with the second generation of post-planting grass control, I do believe there’s a very positive future for continued growth. And the results of those will likely lead in, to your point, heavy decisions on the go-forward as well.
Nelson Obus: Well, you’re right not to be pinned down, but I’ve talked to a number of shareholders, and that really has been a sticking point, the extraordinary increase in share count. And I just want you to be aware of that. Thank you. Good call.
Mark Herrmann: Absolutely. Thank you.
Operator: Seeing no further questions in the queue. I would now like to hand the call back to management for closing remarks.
Mark Herrmann: Well, thank you very much, MJ, as the operator of the call and helping us initiate this. I also want to thank the entire group for joining, and receiving the information that has been put together as far as S&W’s results last year, and how we see moving forward. I look forward to our ongoing discussions, and appreciate you all joining the call. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.
