Michael Petusky: Okay. Sure. So, if you look at — you guys have a slide, which I appreciate sort of the revenue by market sector for the quarter. When you sort of think about what that’s going to look like over the next one year, over the next three years, how will that shift? I’m assuming maybe a bigger percentage is healthcare, but I was just wondering if you could sort of talk.
Scott Greenberg: Well, I think the percentages will switch slightly, but it’ll be on an increasing revenue base, which means that unit’s growing. So, I would say overall that Trust Codes brings us in to a lot of things, like baby formulas and those type of products. We’re also looking the way to expand our pharmaceutical. So, I would say while we have other industries, the food and beverage and the healthcare should go up as percentages, but there’s such a big percentage now that they’ll be slightly bigger on a much larger, hopefully much larger revenue to great skiing.
Michael Petusky: Okay. And then — just shifting to the actual Q4 result, was there any unusual items, either positive or negative, that would’ve impacted PeriShip margins or revenue in the quarter? Like, was there anything unusual as I think about how to model next year?
Scott Greenberg: Well, the one thing that does happen is in the high revenue quarter. We have what’s called premium and proactive. And the premium business does not have pass throughs. The proactive does. And basically in the fourth quarter, a lot of the revenue is shipped for Christmas. And the higher percentage is proactive. So, it’s just due to the mix of product line in Q4, not due to any change in our gross margin of our deliverables.
Michael Petusky: Okay. But that will repeat at least in next year’s Q4?
Scott Greenberg: That that would probably repeat. But all I’m saying is that’s the only thing that changed the margin. There was nothing unusual in it other than the mix of business offset by obviously the high margin business that was in the VerifyMe in Q4 as well, which raised the overall margin. But there’s nothing unusual or no one-time adjustments or adjustments that impacted the business in Q4 other than normal product mix.
Michael Petusky: Okay. Is there — and last question I promise is, is there likely to be a positive adjusted EBITDA quarter beyond next year’s fourth quarter? Are you guys likely to find a quarter in there to show positive adjusted EBITDA?
Scott Greenberg: Well, the answer is that if you look at Q3 and Q2, and Q3 and Q2 and you adjust it for growth, they were close to being positive as well, right? I mean, they were negative $300,000, I believe, one quarter. So, to go from negative $300,000 to a positive quarter is obviously not out of a question is actually probably — it’s not out of a question at all.
Michael Petusky: Okay. All right. Thank you so much. I appreciate it.
Scott Greenberg: All right. Thank you.
Operator: Our next question will come from Daniel Orla , a private investor. Please go ahead.
Scott Greenberg: Yes, Daniel. Just so you know we’re limiting to two questions. I’m trying to — so try to get you two best questions, but go ahead.
Unidentified Analyst: Okay. Sir, what you are guiding to on operating margin?
Scott Greenberg: We didn’t guide operating margin. What we did is we guided overall adjusted EBITDA for the year. And basically as a positive. We did say that we expected our gross margin to be the same or better than the prior year. So, we expect our overall gross margin to increase. We expect our operating profit to obviously be adjusted EBITDA positive, but as a dollar the value for operating margin. We did not get guidance on that.
Unidentified Analyst: Okay. What cost reductions can you see effectuating, given the brand — the new branding that you’re proposing? You’re obviously changing the business model. Changing the business mix. Is the current Salesforce at VerifyMe, which I recall being not particularly candidly, not having produced much in the last several years, is that a source of rededicating capital so that we can look for higher expected growth given the new brand proposition in the marketing?
Scott Greenberg: Well, if you look at it, a few things happen. One is, we now have the management team on Trust Codes in the mix and they have a sales and marketing person. The thing to realize, and I tried saying this before, that we believe each brand is still important. That being said, then we have the overall strategy of the three brands. What we are doing is we’re — because we’re now on a higher revenue base, we’re using some of that incremental profit to do things. As Curt and Keith discussed, improving the product. So, a lot of what we’ve done is improving the product. And as far as sales and marketing, we’re spending a lot more time at trade shows, reintroducing the product. We were just at a seafood show as well. And we are relying on our distributors across the world.
One of our three salespeople are also helping out with Trust Codes at the VerifyMe division as helping out with Trust Codes. So, we reallocated time to get them involved with other projects. But overall, we’re not reducing the sales expense going into 2023. We think sales and marketing on our increased revenue basis and employed it — employment aspect of being successful next year.
Unidentified Analyst: Okay. So, just as a half question then, as a correlated to that, is HP a self-sufficient Salesforce and with that relationship develop, do you think more aggressively over the course of the year? I mean, how do you see HP unfolding on legacy — as a legacy opportunity?
Scott Greenberg: Well, hey, Keith, you want to take that one?
