On top of that, we’re really cutting significant amount of expenses. Like I know we’ve been working on all year. It’s just taking — it takes a long time to close warehouses, negotiate all the stuff out, like, consolidating into Tampa here was a big — it’s going to be a really strategic move for us. And as we close, and I don’t want to kind of lay out each thing we’re closing, I don’t want to employ whatever employees and everything to worry because we’re going to do it strategically. But as we consolidate the other side of the business, the other warehouses into either small or strategic ones in those locations or into a single location, we’ve still got another $1.5 million to $2 million. So I think combined with that, we definitely — I definitely believe the margins coming back — are going to come up to that range we want to be in that [5% to 8% range].
Not sure how quickly we get to the top end of that range, but I’m pretty confident we’ll get to the bottom end of that range pretty quickly.
Aaron Grey: Okay. Great to hear you plan to return to that margin expansion there. In terms of some of the top line initiatives, right? So the Disney one looks off to a good start looking at some of the Frozen reviews online and implied product sales that you mentioned are also plant online. You talked about some other product lines being launched. Can you speak to the timing of those additional product launches coming and how — when you might expect them?
Allan Marshall: No. In 2024, I mean, these are — take a long time — yes, I mean it’s a long process to go through. Like it was actually — like I never thought we could make it for nevermind, Christmas — nevermind Thanksgiving, to have it done, from design to approvals to manufacture in store in such a short time is pretty amazing. So the Tytan team, really everyone, surpassing the expectations there. We are a design and development of a lot of other ones, but there’s not a huge issue, because if you think about like even the large retailers as we try to expand the channel on those products in the big box, if it’s possible, they’re placing orders now for second half, third quarter next year or so. I mean ideally, we would be able to launch a couple here in the first half of the year.
That’s the goal. I think it’s doable, but I don’t have an exact time on each one yet. We really wanted to see how this launch did and how much pull the partnership with Disney had and it was better than expected.
Aaron Grey: Okay. Great. And yes, it looks like it’s off to a good start there. I want to ask a holistic balance sheet question here, right? So you had the cash balance of $417,000 as of 9/30. You mentioned you changed up turns on the debt that was due in October. I think you paid down $2 million and you’ll pay down the remainder in the next 12 months. You have a $6 million credit facility available, and it also sounds like you’re building up some inventory for these launches that you’re going to have for Frozen, Tytan Tiles and potentially the other ones in 2024. So can you just provide us with your comfort with the credit facility to meet the needs — working capital needs and otherwise just balance sheet position?
Allan Marshall: We’re comfortable with all of it at this point. We’ll work through any problems that come up. We have resources. Also, we’re — with new interest rates in previous quarters at 0%, 1%, 2%, we are more comfortable leaving the cash in the bank and not paying down the line, with interest rates now on the line somewhere over 8%, like we move cash and we get it in to pay down that line as quickly as possible. So every day of interest, we don’t have to pay as another day. So you may see that line go to 0 and cash go to 0, and then you may see cash go up to $2 million or $3 million, and then we pay it back down. So we’re really going to try to minimize that. But as far as the overall debt of the company, I’ve said this all along, I feel very comfortable.
Our sellers, they’re seller notes. There is no — if people take a good look at the note, they’ll see that there is — if for some reason we need to extend it, it’s already in there, the interest rate does go up, but there’s no material, which is no crazy default or anything that’s going to happen. So I feel comfortable the company is going to be able to work its way through this, and even at some point, restructure into a little longer-term debt that gives us more time to pay it and leave more cash available to grow the business. And that without having to raise equity for sure.
