Craig Hurlbert : Kathy, why don’t you just start on that one?
Kathleen Valiasek : It’s 2023 was a difficult year out of the California facilities. What I’m happy to say is, I mean, interestingly enough, we did have significant rains out here in California again in Q1, but we actually performed incredibly well. And from a revenue perspective, the company, we’re on budget actually for California. I’m not going to comment today on the gross margin for Q1 because I don’t have it off the top of my head, but we are on budget in terms of top line revenue out of California, and the facilities are just performing, frankly better than they have since we acquired Pete’s, which is fantastic, and I’ll thank the team out there. We have increased our operational performance out there, our operational excellence, our operational team has just done a great job and we’re very, very pleased with where we’re sitting in Q1 of 2024.
Ben Klieve : Next question, if this was in the press release, I’m not seeing it, but CapEx in 2023, wondering again, comment on what that number was in ‘23 and then help us understand the degree to which excuse me, if you can quantify the amount of CapEx left on the Georgia, Washington, Texas facilities that’s going to bleed into 2024.
Kathleen Valiasek : Yes, sure. I mean the CapEx on the balance sheet is 313, it looks like. Georgia facility is as a 12.31 had very little left in spend. We did have some finishing things that we’re working on in Q1 that are exterior to the facility. And then in terms of spend left on Texas and Washington likewise, although we are growing in the facilities and shipping in Q2, we still have some construction costs that we’re occurring this quarter.
Ben Klieve : Last one for me, and I’ll get back in line. With these three new facilities coming online in Georgia, Texas and Washington, I’m wondering if you can comment on how much of the production you expect to come out of these facilities this year is already committed with your existing customer base as opposed to your sales force now having to go out and find a home for that production once it becomes available.
Craig Hurlbert : Yes. Hey, Ben, that’s a good question. We don’t have a percentage number. We haven’t shared that number yet. What I will tell you is this industry is very transactional as we look at it today. I think that’s beginning to change over time. What’s happening is, and I’ll give you a good example, in Texas now that the facility has got plants in the facility living and growing, we’ve been able to bring customers there. We just closed a rather large account based on a site visit from the executive team. They wanted to see it before they really were willing to commit to buying product from us. There’s a little bit of that involved in this space still as a transactional based kind of industry? But with some of our relationships, we’re moving more contractually based customers and because of our great unit economics, there’s a lot of potential there.
So I don’t have a percentage for you on that. I will tell you that, we have a high degree of confidence when we do come out with our revenue forecast for the year, which I believe were Kathy can talk to that, we will have a high degree of confidence, we’re going to hit it, because there are customers there for product. We know who they are, and we’re in the process of knocking down the rest of that. The team is losing sleep on that as we speak, don’t have a percentage primarily because it’s a transactional based industry, but we’re moving in that direction.
Kathleen Valiasek : And I would just quickly add to it, Ben, obviously we haven’t named the sites, but we are expanding on our existing sites, which is obviously just a great level of confidence that the existing facilities are sold out.
Craig Hurlbert : One thing Ben, I know he is back in queue. I’d like to just comment broadly for all the listeners. The progress we made in 2023 is astounding and is a testament to our team and our stakeholders that are involved. You know who you are all the way from the board, right down the entire organization. The progress we made is absolutely amazing. We’re extremely excited. And I can tell you the whole team is more focused than we’ve ever been on making Local Bounti, the preeminent CEA business. And, every day I’ve been doing this a long time. Every day I come to work, I’m more and more motivated to be around the people that comprise and really make up Local Bounti. It’s an absolute honor to be able to lead them. And I just want to say a heartfelt thank you from both Kathy and I to everybody on the team for all of your hard work in 2023.
