Cizzle Brands Corp

Good afternoon, everyone. Thank you for taking the time to join us. I have myself, obviously, John Salenza, CEO of Sizzle Brands, and with me, my colleague, Stephen Shearhart, CFO, Setti Coscarella, our head of corporate development, and Ronan Levy, our head of strategy. We're going to walk you through our Q2. I'm going to pass it over to Stephen to lead off. Stephen will be going over the financial highlights, and I'll be providing some commentary, and we're going to open up to questions at the end. So thank you again for joining us this afternoon. Stephen, I'll turn it over to you.

Thanks, John. Good afternoon, everyone, and thank you for joining us today. For those of you who don't know me, my name is Stephen Sherhart, and I'm the Chief Financial Officer of Sizzle Brands Corporation. And today, I'm pleased to walk you through our financial results for the second quarter ended January 31st, 2025. As you may be aware, this quarter marks our first full quarter as a public company following our successful listing on the SIBO Canada Stock Exchange in late December. And we're excited to share that we've already made meaningful progress against both our financial and operational dimensions. To begin, for the first three months ended January 31st, we generated revenue of 2.86 million, bringing our total revenue for the six months year to date to 5.65 million. This reflects solid traction on both our quench hydration and spoken nutrition brands. Furthermore, our gross profit came in on the quarter at $1.64 million, with gross margins at 57%, a true testament to our pricing strategy, product formulations, and disciplined cost of goods management. For the six months year to date, our gross margins now stand at 60%. Moving on to operating expenses, which for the quarter were $4.53 million, and in line with our budgets. These expenses reflect continued investment in our marketing and strategic initiatives to build brand awareness and scale up our business, as well as our commercial development and our legal fees associated with the RTO. Marketing spend was $976,000 for the quarter, which was down from Q1 and aligned with our plan following the launch of Quench and Spoken. We've reported an adjusted EBITDA loss of $1.78 million for the quarter, which is a 20% improvement over our Q1. This improvement was driven by a reduced marketing expense and our disciplined cost management. This indicates that we're moving in the right direction operationally. With respect to our balance sheet, we ended the quarter at 2.63 million in cash, which was up from the 1.52 million that we reported on July 31st year end, reflecting the successful completion of our GoPublic financing and efficient capital deployment. Our networking capital position as of January 31st is 5.97 million, and this gives us a solid base so that we can execute our second half of the year. Looking ahead, we are in a strong position to implement our strategy based on our early sales momentum, our very solid capital position, and continuing to improve our operating leverage. We remain committed to managing our cash flows and assessing the various financing options available, while focusing on driving revenue growth, expanding our distribution footprint, and enhancing our operational efficiency. With these efforts, we are confident that we can achieve remarkable success and continue to build long-lasting value. With that, I'll hand it back to John, who will give some final remarks, and then we can open the floor for some questions. Awesome. Thank you, Stephen.

So I'm just going to look over to the question panel quickly here because there's one comment about sound. Can someone just write into the chat, everyone can hear us? Because I don't want to go forward if people can't hear us. I believe that was a comment by Morley. Nicole, all good with the sound before we keep going? Yes, sound is working. Perfect. Larry, thank you. Perfect. All right. So when it comes to this quarter in our industry, and I know a bunch of other industries, it's an interesting one because there's really only one month of selling. So November being that month for the most part, early December, many retailers like to close their years with very thin inventory amounts. And in January, no one's really shopping in the category. The fact that we were able to grow this quarter over last with basically only one month of selling available to us was definitely a testament to the brand and our sales team for sure. One of the greatest signs of our brand so far has been the velocity and the retailers that we brought on. It's not that we're just going and getting pipe fill orders and reaching out to our previous relationships to carry the product. We're being very selective about the retailers that we're bringing on and the velocity has been staggering. Many of you know my background in the sports drink industry. I could tell you for a new brand in the space, if you're seeing velocity between 20 to 24 units, you're doing a pretty good job. We're seeing velocities in the 50s when it comes to quench. And the more retailers we add, it actually keeps growing as opposed to cannibalizing. So very excited about the last quarter. Still on pace for 15 million plus net sales for the whole fiscal year. So Definitely exciting times for us as we continue to add retail distribution and increase velocities at the same time. A deal I want to touch on that's been very important to our growth is that with Van Hoop Coffee Services. So just to give you a quick background, Van Hoop Coffee Services is owned by Dr. Pepper. The deal that we did is something that you'd see for a company maybe 9, 10 years in the business. So what this does is this gives us a DSD solution, direct store delivery solution, across the country. So, yes, we're in the game of marketing and selling drinks, selling nutritional products, but one of our greatest expenses is outbound shipping. I like to make the joke that we're actually in the outbound shipping business. So with this Van Hoop partnership, what it is, is it allows us to ship tons of product to their hubs across the country, and then from there, they take it to stores. So one of the biggest issues in the ready-to-drink game, I'll touch on the ready-to-drink side of our business, and why you hear that Coke dominates and Pepsi dominates because they have those trucks that go to stores, is is minimum quantity orders. So for us to send the retailer out two to three cases of clench makes no sense. We lose money on that. If we're doing it alone from our warehouse, the cost of shipping follows across the country. With VanHoo, they have these warehouses across the country. If someone orders five cases, 10 cases, small order like that, we're able to get it to them. We're able to replenish it and never be out of stock on shelf. So not only are they servicing our accounts, having a positive impact on the markets when it comes from a shipping and logistics standpoint, but they have 30,000 accounts of their own that we're slowly getting into as well. And what I love about these accounts is it's not general retail accounts. It's not your Sobeys types of accounts. They're food service types of accounts across the country where people work, where people eat, where people sleep, where people sweat. And what's that doing is not only is it revenue for us, but it's driving trial in key places across the country. And people are finding out about the product. They love the taste of the product. And then from there, they're going into our retailers to sell their products. So no different than if any of you are at your office right now, whatever the snacks that are there, you get used to those ones, you like those and you end up buying them in your home. That's what's happening with Munch and his relationship. So it was a monumental move for our company. And I just really wanted to highlight it here because again, it's something that you'd see nine to 10 years out in a business. And the fact that we have this and the ability to grow and the ability to use them as an advisor, and we're doing certain things in the US as well. is huge, right? I like to take people back to, you know, a lot of people know the Body Armor story, right? Body Armor had Dr. Pepper as a distribution partner, and then they sold the Coke for $4 billion, as an example of what this type of distribution partner can do when they're partnered with the right brand. So I wanted to touch on that. And I'll get to the, I see the questions popping up, Chris, later, we're going to get to those in a bit. So from a retailer standpoint, we're very Ontario-centric to start, where the majority of the the money in this industry comes from, but now we're starting to expand coast to coast, right? So if you've been following along, you've been seeing the announcements, Metro, London Drugs Out West, McEwen, Inns Market, and even in the US with United Supermarkets. Now, when I say we're being picky about our distribution, that's not just us talking. We have a plan when it comes to where our grassroots are located, what our online sales are saying, What our PR reports are saying, those are our insights on where we want to get retailers because we know we can get that velocity. So it's very much a shotgun approach, not just trying to set up one big bomb, so to speak, and get as many pipe fills as possible. A lot of our revenues you're seeing is from reoccurring orders. So that's the key sign for any brand in this industry and something that I'm very pleased with when it comes to our brand. A cool side of the business, and it is a revenue driver, but not a major revenue driver, I think it'll end up being $2 to $3 million on the fiscal year, is the adoption of professional teams. And it's across the board, whether it's in the NHL, the NBA, Major League Baseball, the NFL, PGA Tour, NCAA colleges. So as a quick background, sorry, I just got distracted by the vodka question on the side of the screen from Josh. These teams can get anything they want for free. They have major sponsors. Body has the NHL deal. Gatorade has a lot of the major league benches. Obviously, Gatorade has the NFL deal, so on and so forth. They're choosing to purchase sizzle grants products, whether it's quench or spoken or supplement line. They're paying a premium for these products as opposed to the stuff we're getting to because the athletes are saying to them, I perform better for these products. They taste better. This is what I want to have. So, yes, it's good revenue. You know, cool story for me to share with everyone. What happens is that top-down effect, right? So then these athletes go back to their training facilities in the summer, and everybody else at that training facility sees that the top person in that facility is using their products. And the trainer starts telling the masses about those products and all the other people. So it's really much a top-down, triple-down effect. And I can share with people on this call, whether it's the Yankees, the Dodgers, I was just going through some of the orders this morning, they're all very much supporting the brand. So it's good to see that adoption at the higher level, And the effect of that, it's not so much about the revenue, but it's a trickle-down effect. And because we're still in early stages of our business, we'll start to see those effects over the summers, over the summers for years to come, but in particular in the hockey world once the season's done and all these athletes are back in their training facilities. From an innovation standpoint, we launched Spoken, our supplement brand. So Sizzle Brands was, again, a house of brands approach. Our experience tells us, you know, you don't want to confuse the consumers. So Quench and Spoken live under the same umbrella. They're sold into by the same salespeople. by the same salespeople. Some of it are in the same retailers, but very much two different brands that have two different purposes for the product. So we're able to launch our spoken brand, our portfolio brands on that side. Early signs show that the Sleep Builder product, the Greens product, and our Amino product are the winners. The Sleep product in particular is getting unbelievable traction. And I definitely think it'll be the lead across that brand. So again, forecasting about $3 million Canadian On the year for that product, we're on pace to hit target. Excited to see it launch and see the purchase orders coming through. It's very much a US focus right now, the high quality training facilities across the US. We have a goal of about 300 by the end of the year, handpicking these retailers at these points of sweat, and we're at about 100 right now. So definitely some early traction for that brand. Some other success highlights from the innovation standpoint for the quarter, Coach Chippy. If you're familiar with Coach Chippy, then you know what I'm talking about. If you're not, Coach Chippy is a hockey influencer, a social media sensation. So we did a Chippy branded product. Actually, I don't have one in front of me right now. I can share this with you. I've launched custom Carmen David SKUs on the sports drink side. I've done custom Patrick Mahomes SKUs on the sports drink side. I have never seen velocity like I've seen with Coach Chippy. Over the last couple of weeks, the data that we received is we're selling more Coach Chippy in Canada than Gatorade is selling their Blue Gatorade, which is one of their lead SKUs. Their lead SKU, actually, from a flavor standpoint. So we're going to continue to use our assets to innovate. This LTO is in and out with different flavors, different athletes are ambassadors on the product. It's working great for us, and Chippy was the first one through the tracks with unbelievable success. We're actually going to be coming out with more flavors under his brand as well, or under our brand with his likeness. Those are the highlights for the quarter. I see a ton of questions coming in on the right side. I'm going to turn it over to Nicole to moderate that and we can go from there. Excited to keep the conversation going and answer any and all questions.

Hey, everyone. Thanks for joining us. John, thank you for a great overview. We're going to go down the list. We'll try to get to as many as we can. If we don't get to any, you can always email the company as well, and we'll try to get back to you at a later date. So just keep the questions coming into the chat function here. So first question here from Chris, any tariff cost issues?

No tariff cost issues to date, Chris. We have manufacturing on both sides of the border for our SKU, so we don't see that being an issue.

Okay. From Joseph, can you please expand on plans for future advertising markets?

Without giving too much away, Joseph, because I understand there could be some competitors on this call as well. We're very disciplined in our plans. We have aspirational assets like Nathan McKinnon, where we lay our foundational grassroots down. The Northeast in the U.S., synonymous with hockey. We're having a great amount of success there. Minnesota is a high traction state for us. So that northeastern corridor in the U.S. is outside of Canada as a focus for us right now.

Okay. You had kind of alluded to this one earlier, but Josh has a question about exploring getting into the alcohol market or the liquor market. Do you have any plans for that? What are you thinking about that segment?

No plans for the alcohol market, but yes, Josh, quench and vodka, they taste well together.

Jason asked a question here. Where do you see yourself in three years?

Right here in this boardroom doing these calls. No, Jason, for sure. Three years from now, we see approximately $100 million in net sales, gross margins in excess of 55%, inclusive of outbound shipping, 40%. Based on the velocity and how we're gaining retailers, we have no reason to believe why we won't be there. That's been the goal since the beginning, and we've clicked every milestone along the way. Obviously, the markets will determine what that's worth, but That's where we'll be three years from now.

Okay. Gordon, I'm going to paraphrase yours a little bit here, because we talked about tariffs a little bit, but the current pro-Canadian sentiment, what effects are you seeing on the brand?

The current pro-Canadian sentiment?

Yeah.

Oh, because of the tariffs. I mean, yes, people know that Quench is a Canadian brand synonymous with hockey. We're good in... I wouldn't say we're getting any additional traction because we're Canadian. I think people are buying the product because they love the brand. And in saying that, it's not having a negative effect for us on the US. I mean, yes, I'm Canadian. Our office is in Toronto, but we view Clench as a global brand. So I don't think we're getting any extra interest because it's Canadian founded. We very much view ourselves as a global brand.

We have a question about the stock movement. You know, we've seen a ton of news coming from you guys. It looks like it's every few days we have a new release. Can you comment on stock movement? What's going on with what your expectations and what's happened so far?

Yeah, we're happy with the stock. I mean, you know, our first round of investment was done at 20 cents. Stock got up 63 cents. I think a couple of people's money that pass and people are going to sell. You know, today it's still at a double 40 cents for a new company. We like our volumes. We're happy with the SIBO for sure, to say the least. So I'm very happy with the stock today. Obviously, some exciting things ahead. But anytime you can double or triple people's money out of the gate, I think you've done a good job. And obviously, we're in it for the long haul here. So we have a lot of investors that are in it for the long haul, to say the least. So I'm very happy with the performance of our stock right now as are our investors. Awesome.

A question here from True. Do you have any future expansions planned for your supplement line?

I just got back from a trip in San Francisco, Drew. Early feedback from the supplement line, a ton of traction out in California on it. There's some things that we're going to tweak and bundle. This sleep builder is a bit of a phenomenon for us right now, so products that we can create to complement that, but also SKU rationalization from the early sales. At the end of the day, 13 SKUs is a lot for a new line. We knew that. We knew that we could sell through that, but then from that data, we're going to rationalize that line and innovate as per our data and what our consumers are saying. So some exciting things that come from that line for sure.

Okay. This is our last question here that I have so far, unless you guys want to talk about anything else afterwards. We have a question here about your finances showing that you have just over, sorry, under 3 million in cash, but are burning about 1 million per month. Can you talk about your plans, you know, to spend your money on the next 60 to 90 days without massive dilution?

Yeah, no problem for sure. So the company has no debt. We don't even have a working line of credit. I've got four term sheets on my desk that work with our inventory and our accounts receivable. We're obviously going to select one with the lowest interest rate. I'm very happy to have four proposals in front of us. So we're working through that right now. So there will not be a cash issue here in the coming months. to say the least. And then we also have other options in front of us. We also have our warrants that kick in at 60 cents that brings in potentially $60 million cash into the company. So we're in a very healthy position, also sitting on $3 million of inventory, a cost value. So very healthy position right now with lots of cash leavers. And that's why we're not in a rush, just taking our options and seeing what's best for us and trying to pay as low as interest as possible.

Okay. You mentioned inventory. Steve just slid in with a question here. Inventory jumped 126%. Can you explain what portion is aging and how much you expect to be written down or discounted?

Nothing will be written down or discounted. Our products have between two and three years shelf life. The jump in inventory is because of the demand that we know that's coming, some stuff that we haven't announced yet. So Steve just kind of let the cat out of the bank, lighting this guy's stocking up. But yeah, No, so great shelf life on the inventory. Everything's flying out the door at full value. So no concerns on that end. Being a new brand, the last thing you want to do is not being able to supply. So we're taking a higher inventory approach just based on the way that we're growing. So right now we're carrying about six to seven months on hand. We want to get that down to about four, but the way the retail is growing, we've got to be cognizant of that and not have any empty shelves. But great question.

Okay. He just followed up actually. Are you producing based on forecasted demand or sell through data?

We are producing on demand and sell through data. So that's what we're doing. The other part of that question, I mean, I'm not going to answer that.

Not to worry there. It looks like we're out of questions here in the chat function. I can give people another second to come in if they have any. John, any last thoughts? Steve, you as well.

Barry has a good question here. Is your 60 percent gross margin only direct hogs or does it include shipping and warehousing as well? It does not include outbound shipping, Barry. So over including outbound shipping or over 40 percent, that's the gold standard in the industry. So you can run your business inclusive of outbound shipping, but margins over 40%. You're in a great place. Great question.

Awesome. Any final thoughts from you guys?

Just, just the one thing about the cash burn. And I know we mentioned a million, so I just wanted to correct that a cash burn is closer to 600,000, um, which, which does give us a little bit of runway with the 2.6 million. John just touched on our working capital position, which is very strong. And we do plan to use that working capital, probably working down our inventory to help manage that cash flow burn with our current position. So I just wanted to call that out. I'm happy to keep going on these questions, Nicole.

Okay. Yeah, it looks like they keep coming in. So keep them coming, guys.

Yeah, just fire them all up. Let's not miss anyone. I want to answer every single one of these.

Joseph, can you speak to the European market?

Can we speak to the European market? Yeah, for sure. We're getting great traction in pro sports. And from there, there's a bunch of facilities in Europe that are calling to have the product. And usually our steps are pro sports facilities, and then you get into retail. So getting a ton of traction in Europe, and particularly in the hockey and soccer leagues, a little bit of basketball as well. And that's leading to a decent training facility business out there. And once you get that, soon the retailers will be calling. So that's kind of how we go about things.

Okay. What about getting product to the Western part of Canada? Any issues there?

No issues. Zero.

Okay. Will your margin decrease with DSD distribution model?

No, it actually was accretive to our model. If we were shipping this stuff out everywhere on our own, we would have far less margin. The fact that we have this DSD solution is accretive to our margin.

Okay. Um, one question here, just noting that some of, um, the locations are out of stock or really low, maybe, maybe speak to your distribution and repeat orders to, to help speak about that one.

Yeah. So we're, I think that's a testament to our self group. Um, we have a great relationship with sorcerer sports, the sales guys in the room behind me here are talking to those guys every day. So I'll bring that up with the team, Josh. Um, first I'm hearing of it, but again, with that Dr. Pepper Van Hoop relationship, we're able to replenish that very quickly. So after this call, walk into the next room and see what's going on with that. There was a couple more on topic. Someone was talking about shares or something like that to keep more cash. Let's see here.

Oh, Gordon, sorry, Mr. is there. Trading shares in lieu of services. Can you say that?

Yeah, so options. So a bunch of our athletes wanted options in the business instead of cash because they believe in the upside. Nathan McKinnon would be an example of that. I referenced him because his jersey is behind me. So yeah, we gave out options for employees, for athletes, for certain folks who believe in the upside of the business and would prefer the upside as opposed to the catch. So that was done in the form of options.

Great. Barry, what are your plans to differentiate from companies like BioSteel, which obviously are still in the market? Obviously, spoken brand is one strategy, but is there any other differentiation?

We're very much focused on who we are as a brand. We bring a best-in-class product to market. That's how we differentiate ourselves from everyone. Clench is the best sports drink ever made. A credit to Andy O'Brien, Sidney Crosby, Nathan McKinnon's longtime performance coach. He met with 110 different people, dieticians, doctors within the professions. He traveled through pro teams in Europe on the soccer side, all the teams in North America getting feedback on the creation of this product. So we feel as though we're pretty keen marketers with good sales experience. But when it comes to how we differentiate ourselves, it's that we do have the best product on the market. And that's true in the repeat sales and the trial at the end of the day. So yeah. When you can have a product that's this good for people, the taste of the way that ours does, I think that's our biggest difference maker at the end of the day.

Okay. You need to promote more in Eastern Canada. There's hardly any sales that they've seen. Can you speak a little bit about your distribution across Canada?

Yeah. So our distribution across the country is growing. We have some big marketing events that will be kicked off this summer in the East in particular. I can't say what they are, but it's probably the biggest marketing splash we can make is actually going to happen in the East Coast in Canada this summer. So we're also doing a coach, our influencers and our athletes. just trying to read this carefully, we'll all be a part of that. I just can't speak to what it is yet, but Eastern Canada will definitely be a focus of ours for sure. It sets the roots of the company at the end of the day. Andy's from PEI, Nate's from Halifax. So it's very important to us to say the least.

Okay, Chris, your net loss widened to just over 6 million in six months. What revenue scale do you expect to be cashflow positive?

Yeah, so we expect to be cashflow, we expect to be EBITDA positive by year three of the business, Chris. At the end of the day, that's what we raise the money for, to go fast. You know, CPG is not an inexpensive place, to say the least. So by getting the brand out there, that's why we're able to get the retail commitments that we are and the velocity. So, you know, again, year three, EBITDA positive. You know, I think the turning point on that from a net revenue standpoint, Steve, correct me if I'm wrong, but it's about $48 to $52 million in net sales. Is that right?

Yeah.

No, no, I know we're projected higher than that, but it won't become cash flow positive.

so um i i guess i'll just answer the question based on the data that you just talked about so our net loss was 6.13 million but our ebitda loss was only 4 million so the delta between that 4 million and that 6 million does include a lot of non-cash expenses for example the rto expense alone which was shares was 500 000 and then we also have the employee compensation that you see on there that's about a million dollars year to date so uh ebitda is a loss of four million dollars When you look at what our current gross profit is for the first half, which was around three, we could get to $12 million in our net sales, which would bring us to a break-even EBITDA. Now, we are in growth phase right now, and we will continue to invest to find opportunities that drive that long-term value. So we do have a plan to get to cash flow positive, to get to EBITDA positive. But right now, our plan is to continue to grow the business in a sustainable way.

Perfect. Jason says, don't forget about Newfoundland.

You have my word on out east. I can't tell you what yet, but you're going to love it.

So I'm going to keep an eye on guys. Okay. You mentioned three-year profitable. Do you plan on sustaining 50% revenues in marketing and 100% revenues in SG&A?

No, no, no. Obviously those will come down. come down over time. I mean, these are early days here.

So those will definitely come down. I think the best way to kind of answer that particular question is when you look at when we scale year over year, the variable costs scale alongside with revenue, but a lot of the fixed costs end up staying the same. So when you look at things like SG&A, a lot of the staff and human capital that we put in place is otherwise there to help support revenue into year two and year three. there's very little that we would need to continuously add as we scale the revenue. So as the revenue starts to grow, those percentages come way, way down because it's not increasing in the same fashion. There we go.

Hopefully that answers your question, Barry.

We might answer Chris's question on screen there as well.

Yep. You issued nearly 20 million shares in six months, increasing the share count by 11%. How much more dilution is coming?

The... That was just a capital raise that we did leading into the RTO. We raised in two tranches. We raised about $16M at $0.20 and we raised another $4M at $0.30. After that, we don't really have any particular plan to go over and raise any additional capital. From a dilution standpoint, I don't really see that on the horizon. Like John had mentioned, if we need some additional capital, a lot of it just comes from working capital financing. So those are the avenues that we're chasing down now. And really, when it comes to that working capital financing, it's just a function of building up that inventory base so that we can support these larger orders as they're coming through. As John said, we never want to be in a position where somebody comes and wants to place an order and we have to go and put it into production first.

Okay. Yep. Cal has a question here. I know it's very early, but have you had any institutional interest shown as of yet?

Yes. Yes, we have. I can't speak to what, but yes, we have. And those conversations continue. Great question. Thank you for asking.

A reminder from Josh, he had to go, but he says, remember vodka quench.

I won't forget it, Josh.

Okay, Jordan, sorry, Gordon, as other companies in the market are moving away from endorsed athletes and naming rights, why are you moving towards them? Do you find it moves the needle?

I'm not really worried about what those other companies are doing. We have our strategy, our way of going to market. Those brands that you mentioned there are very different than Quench or Spoken, if that's what we're talking about. I mean, Liquid IV has already been sold. They had a very different approach. So while they're not doing naming rights or endorsed athletes, they're spending money on all kinds of things. I remember Liquid IV spending money in music festivals and different things like that. So, yeah, everyone has their own strategy. Ours is one that pertains to sport and the aspiration of that and the performance side. It very much works for us and it's purely success. So again, very much focused on our game plan. And at the end of the day, Gatorade's been the market leader in this space forever. And this strategy seems to work for them. And in my previous brand, I had a lot of success with that approach. We started that company in 2009, sold it for, in 2019, that company was starting with $50,000 and we sold it for a valuation of 80 million. I'm very comfortable with this. It's true to who we are. We have the authentic buy-in from the athletes, which those brands that you've mentioned do not. Um, and they're willing to work for us a fraction of a fair market value because they believe in the upside of the business. So it'd be crazy not to take them up on that, but great question because it's a fair one because those other brands don't do that, but they're very different than us.

Yeah, for sure. It makes for a very good story. So, um, true asks, how about interest from strategics?

Yes, yes, yes. Again, I wish I could say more, but definitely some interest from strategics. At the end of the day, we're making a lot of noise and the phone's ringing. So just have to take all these opportunities for what they are and do what's best for us.

Okay. Max, is there any opportunity to be had in the therapeutic use case of electrolyte drinks like Pedialyte in addition to the more athletic recreational use cases?

Yeah, great question, Max. So I just actually got back from a trip exactly, but exactly on this topic. So you walk into your local doctor and there's a big difference between medical doctors and nutritionists. Right. And a lot of the. You know, previously school medical doctors, they're really taking courses on nutritionist or any of that, so you walk into your local hospital, your local doctor's office, they're recommending a Gatorade or Pedialyte, which is very counterintuitive to what the nutritionists are trying to do these days. So part of what I was working on was working with the medical community in particular, some significant folks down in the U.S. and some from Canada. And, you know, how do we start to change that messaging? And not only is that beneficial for Quench and Sizzle Brands, it's beneficial for people in general. I mean, what's being recommended is not what's best for people. Loads of sugar, artificial dyes, flavors. So how do we connect that medical, nutritional industry is something that we're working on right now. And there's definitely, to your question, Max, a lot of money to be made there. And that has nothing to do with you know, endorsements or naming rights that has to do with the efficacy of our product, but along with an eco-friendly package.

Okay. Larry, I'm going to rephrase your question a little bit, just so John can say what he is allowed to say, but expanding product lines, you know, do you have a projection for 2025, any new products for people to look out for? And if you can talk about what they are specifically, that was a great time.

So projection for 2025, From a revenue standpoint, it would be in this fiscal year. Is that what you're asking me?

No, new product lines. Any new SKUs for people to look out for?

New SKUs would just be different flavors or different partnerships with our ambassadors and athletes. And we bring those SKUs to life. Quenchy and anything on the snack side will not be coming out in this fiscal year.

Okay. Okay. Another question here from Chris, you're highlighting top line growth, but losses are accelerating. Why shouldn't investors believe this is a grow at all costs model heading for the same clip as a previous company?

Yeah, we don't have to wait. People keep making references to bottle still. So I'm going to repeat, I sold that company in 2019. What happened after that? In fact, that was not in control of that business. I was there for some of it, but I'm not going to open up that Pandora's box today. I think people I don't exactly know what happened there. So this is Sizzle Brands, this is Clench, this is Spoken that we're talking about. We're highlighting top line growth because that's how our losses will come down at the end of the day. We're taking a very aggressive approach here and we're having great success with it. So as those revenues continue to grow and those costs continue to come down, you'll see a quicker path to profitability there. So again, not worried about our cash situation at all. This is by design. That's why we went out and raised all the money that we did. And this venture wasn't started for $50,000. So very confident in our plan. And it's definitely not going to cost. It's very, very strategic. Chris, I'll get a little candid with you here. If I wanted to show you $30 million in net revenue this year, I would. I could call up all my friends and all the retailers and get this thing everywhere. But then you're not going to have to sell through because the brand's not ready for that yet. So we're being very selective about our retailers, picking our areas with a very much shotgun approach. We're having that groundswell with the grassroots and the facility business. Then we get it onto the retail shelves. We're getting unbelievable velocities. So we're not going to be one of those brands that shows you big numbers and it never sold through and the next year the numbers come down. We're growing very, very strategically here.

And just to kind of build off that too with the comment on the net loss accelerating, our net loss accelerated because in Q2 we had around $800,000 of our RTO expense. So that does include the $500,000 in shares that were issued for the RTO. well as around 400 000 of legal fees that are that are one time if you back out those one timers our ebitda is actually improving at 20 and you will continue to see that ebitda improve quarter over quarter um so um you know that that you can you'll be able to see that we are improving our uh bottom line uh at the same time as we're improving our top line yeah and i'll answer barry's question here obviously maybe he plays for another team or something but uh barry to answer your question here about

investors in BioSteel. So I'm going to repeat. I co-founded BioSteel in 2009. I sold BioSteel in 2019. All my investors made substantial amounts of money. To say the very least, and they're all very happy to the point where almost all of them have invested in sizzle brands from the athletes, the manufacturers to the high net worth people. So I don't know if Barry has a bone to pick or not, but I'm happy to continue to answer questions and speak to the truth on that.

Okay, it looks like the questions are slowly kind of ending here. We can leave it open for another couple of minutes if people have more questions. John, Chris, Seti, I know you're in the room there. Are there any other thoughts that you want to share with people while we have them also on the live?

No, just we really appreciate everyone joining us. It's early days for us, so to have these questions and this type of traction, we really appreciate it and we just want to continue to be judged by our results. A lot of exciting things coming on here and for us, it hits our mandate as human beings. We're bringing better for you products to people and we're driving revenues doing so as well. Exciting times for us. I appreciate everybody's interest. Reach out at any time. We're growing this village daily and it's all of you in that support that really makes this thing work. So thank you so much.

Thank you both for being so candid today. Thank you everyone for having your questions in the chat box there. I don't think we mentioned it earlier, but if you have more questions, info at sizzlebrands.com is where you can reach the team. I'm sure they'll be happy to address them there. My name is Nicole. We were on with John from Sizzle Brands talking about our financials this last quarter. think we're all done for today. So unless there's any last thoughts, we can wrap up.

Awesome. Thank you so much, Nicole. Appreciate it. Thank you.

Awesome. Thanks, everyone. See you later.