The Real Good Food Company, Inc. (NASDAQ:RGF) Q3 2023 Earnings Call Transcript

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Jeff Van Sinderen: Okay. And then, you mentioned the Fish launch. I think you said December or you’re starting to ship in December and then that will start to actually hit shelves in January. Is that correct?

Jerry Law: Yes. That’s correct. The same is true on our sauce meats platform. So — and the store counts are significant. They’re in the range of 1,700 to 1,900 stores nationally. And having a national footprint for that allows our social media folks to really lean in on the platforms as well. And we’ll see how that the shape up next year once they’re on shelf.

Jeff Van Sinderen: And if the — just a follow-up on that, if the sell-throughs are pretty good in the fish for example, when would the next sort of reset date? Would that be a June reset for that, do you think? Or how should we think about that?

Bryan Freeman: I would be thinking back half of next year, is when those resets would occur.

Jeff Van Sinderen: Okay. Fair enough. I’ll take the rest offline. Thanks for taking my questions.

Bryan Freeman: Thank you, Jeff.

Operator: Thank you. We have reached the end of our question-and-answer session. And with that, thank you for participating. You may now disconnect.

Bryan Freeman: Before we disconnect, I wanted to make a few comments on recent debt deal that we have put in place. I wanted to just call attention to it and make a few comments. First of all, our overall strategy over the last several months has been really to strengthen our balance sheet. And we’ve done that in a couple of ways. One was the recent equity rates. And two, putting in some debt instruments that do two things: one, reduce our cash interest cost; and two, increased liquidity. And so what we’re pleased to announce is that our long-term partner, PMC Financial Services has really been with us since the beginning – has made the decision to move forward with a new $45 million debt piece that has the potential, we see it as essentially reducing our cash interest cost of as much as $6 million annually, and it will also increase our liquidity by as much as $15 million.

So we think that, that’s a really positive development, and we look forward to completing that deal in the upcoming days, not weeks, and we’ll get more into it when we pull that together. I view that as a very positive development for the business and look forward to reporting our fourth quarter results next year, and I hope everyone has a great Thanksgiving. So with that, have a great day, and thanks for taking time today. Thanks.

Operator: Thank you. This concludes today’s teleconference. You may now disconnect your lines at this time. Thank you for your participation.

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