AMMO, Inc. (NASDAQ:POWW) Q2 2024 Earnings Call Transcript

Mark Smith: The last piece here maybe for me, and I can jump back and if any other, is as we think about the profitability that was impacted by kind of clearing out, we’ll call it, aged or not as current of inventory. I don’t know if you can quantify anything else there around how big of an impact that had in the quarter. And then, also do you feel like you got through that process during the quarter, or is there still some remaining loaded ammo that may go out at lower margin or maybe even loss as we roll into Q3?

Jared Smith: No. At this point going forward, we’ve cleared out our old inventory. Part of our push to get that older inventory out is that our overheads are calculated on goods sold. So because we had such a hit on our overhead from not running the rifle presses, we pushed really hard at margins that we didn’t even want to take, but the bleeding should be over now and we’re off to a better footing.

Mark Smith: Maybe, Jared, I don’t know if you still got me, but you said taking price up. Was that kind of post quarter end?

Jared Smith: I mean, what we’re seeing, yes. That’s post quarter end. We’re seeing demand in 2024 that allows us at least a little bit of breathing room. You’re not seeing as much price margin compression as you’ve seen in the past.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jared Smith for any closing remarks.

Jared Smith: I just want to thank everybody for participating on today’s call and your interest in AMMO, Inc. We look forward to sharing ongoing progress when we report our fiscal third quarter 2024 results early next year. I appreciate the investors sticking with us, and just want to wish you all a good day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.