Unidentified Analyst: That’s what’s happening after the call.
David Knight: Great. Thanks, Oleg.
Operator: And the next question comes from the line of Steve Cantor [ph], a Private Investor. Please proceed with your question.
Unidentified Analyst: David, thank you for taking calls from us. It’s a welcome change from the past and may have the elaborate dialogue with the company and her team. So thank you very much.
David Knight: Thanks Steve.
Unidentified Analyst: I wanted to better understand the — the Food Services division and make sure, I’m thinking about this correctly. In the Alcohol industry have on-prem and off-prem, two different sales channels being moving our retail stores and then the bars and restaurants. In the craft soda business, do you see the benefit for the essentially the hand selling of the product, may put more personalized engagement with the consumer to where it assist with the pull-through going into grocery stores and what which is very competitive and very difficult sales channel?
David Knight : Yes. Look we’re super excited about foodservice, especially now that we’re producing broader formats and variety, specifically for foodservice. The-12 ounce glass bottle offering and it’s been somewhat a stumbling block for foodservice as their preferences really cans and food — fountain, slush, et cetera. So we’ve now got a comprehensive range of products across all flavors that suit foodservice. And what we’ve built with Dot Foods and Green Nature has really opened up and will open up Jones in numerous accounts that I’ve never really considered Jones either because of a format of a lack of a delivery system. So Dot has 4,000 customers in the U.S. and they’re distributors and retailers and food operators. So now they can order through Dot as little as just one case of Jones, where previously they had to step up and buy a pallet load.
So we’re going to see a significant explosion in foodservice. Victor, who is our GM, has got such deep experience and great relationships. So he’s the right guy. And now that we’ve armed him with the right product range and the best go to market strategy and infrastructure that supports that, we’re expecting significant growth there. So we’re excited about that. So as I said, we go to the Pizza Expo next week, I’m sure we’ll secure increasing excitement and orders at the show that will be delivered through Dot. And just by way of example, Green Nature took OLIPOP and Liquid Death from 0 to over $20 million in revenue through foodservice. So we know that we have the right foodservice broker. They’ve got 18 sales folks that are around the country that all they do is speak to foodservice operators.
So that’s restaurants, colleges hospitals wherever cafeterias and canteens. And so we’re going to see significant growth through that channel. And then again Dot Foods is having their exposure here in Denver in April. And so Jones will be there again to secure new business at that Expo. So foodservice, you’re going to see a lot of buzz and activity about Jones Soda taste amazing and a frozen slush or off the fountain as well as now being available through cans. So exciting stuff. So, hopefully, Steve that answered your question.
Unidentified Analyst: It does. Thanks. And I appreciate my kind of follow on related to foodservices and the sales process of it. The fact that they’ve got their own salespeople is really helpful, because it goes back to, I guess, Daniel’s question around the additional SG&A relative to the sales. So partner with the right folks that have their won sales team, and that’s super helpful. I’ve got a few more questions if that’s okay.
David Knight : Yes. Sure. Go ahead.
Unidentified Analyst: In your 10-K and 10-Q, you referenced that there’s I think 27 million warrants that are set to expire. I want to say mid-March with a $0.65 conversion price. Will those be expiring and going away and removing that overhang? Or do you know if they’ll be converting those at the $0.65?
David Knight : I’m going to hand it over to Joe. Joe, do you want to answer that?
Joe Culp: Yes, yes, good question. At this point, no plans for any changes, but we’ll certainly let you know if anything changes there. And we know that’s just coming up in a couple of weeks, but no plans to do anything with those.
Unidentified Analyst: Okay. So they — but they expire. I was trying to count the days and figure it out, but it is in March of this year that they expire this month?
Joe Culp: Correct.
Unidentified Analyst: Okay, great. Thank you. And then my last question and I’m really happy to hear the number one corporate objective is shareholder value. As we think about how that shareholder value is created through the different verticals that you’ve now introduced, the broadening of the product base, growing top line revenue, paying real close attention to both gross and net margin, watching that growth in EBITDA, even though it may be negative quarter to quarter, but selling it all moving in the right direction as you guys build out and invest back into the business. Share price is obviously another indicator of growing shareholder value and not one of the challenges or two of the challenges that we face as a company, being on the current exchange that we’re on presents a liquidity challenge for current shareholders.
And it also kind of inhibits the broader investor support as there’s a lot of brokerage firms that are not permitted to buy for their clients. Any penny stocks or anything on an over the counter as you think forward growing shareholder value with all these other channels are very important. But how do you think about uplifting the stock or reversing the share price and maybe tying it with something like rights offering to get capital in the Company and allow current shareholders to maintain their percentage or increase ownership through that rights offering kind of going forward, like your thoughts around that.
David Knight: Yeah. Look, it’s something that is I’m wondering, we call it big rocks. One of the things that I’m I focused on every day and the share structure, the boards that were on opportunities add to uplift is certainly one of my top priorities. So, I’m privileged to have some great Board members, so we’ve set up a small team of myself and several of our Board teams to really go through what are the opportunities, what’s the best way to raise capital? What’s the best way to make our shares more available, certainly being a penny stock is not where we want to be. And yes, you’ll hear more on that this year, but I assure you, it’s on my kind of top three objectives for the first half.
Unidentified Analyst: Well, that’s great to hear the shareholder for a very long time. And I wasn’t sure what I was going to do and then saw the transition begin to happen and thought I’d just stick it and watch for a little while and you guys have quarter over quarter and year over year executing and doing what you’ve indicated publicly, what you are going to be doing and executing on the plan, so thanks for that and good luck for the rest of ’24. We’re watching closely.
David Knight: Yes, Steve. Look, I mean we have a large group of really loyal shareholders, right. And one of the things I noticed when I came into the Company was gosh, people are still hanging in and still supporting and we need to get growth behind the company. We need to prove to you and do what we say and say what we do, right? Trust and execution is key in any company. But beverages, it’s paramount. And so I’m glad that we’re now in this cycle of hey we’re looking at opportunities where we’re identifying great verticals and we’re going hard at it, right? I think we’ve delivered more innovation at Jones Soda in the last six months than we probably ever had before. So we’re hard at it, right and I would encourage you guys to hang in.
We are excited of the plans that we have and that’s going to reflect in shareholder value. So, thank you for your patience and commitment and I’m looking forward to delivering Q1 and giving you insight into lower during Q2. And just as that that momentum builds, I think we’re going to have a very exciting year.
Unidentified Analyst: Great. Thank you, very much.
David Knight: Thanks, Steve.
Operator: And at this time, this concludes our question and answer session. I would now like to turn the call back over to Mr. Knight for any closing remarks.
David Knight: Yes. Thanks. Thanks a lot John. I’ll be brief. I think I’ve said exactly what I needed to say. I appreciate the support that we’re getting across the company from our Board, from our shareholders. Thank you everyone for taking the time to listen today and we look forward to coming back with you and reporting on our first quarter results in May. And I’m enjoying some of the calls I’m getting from our shareholders, right? They’re calling me up and asking questions and supporting what we’re doing and noticing a difference. So, that transition from a soda company to a total beverage plays is really key to our success and getting into new formats, new verticals, new sub-brands is going to be priority one for us as we drive both Jones Soda and Mary Jones. So, thanks everyone. Have a great day. I appreciate you all.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
