Question · Q3 2022
Mark Bokeh of Bokeh Capital asked about the sustainability of the recent 47% reduction in SG&A expenses. He also sought confirmation on the reduction of trade payables post-quarter end and questioned whether the company would consider a stock buyback, given its low valuation relative to its net asset value and improved operational performance.
Answer
CEO James Manning affirmed that the significant reduction in SG&A is sustainable, largely due to cost savings of approximately $100,000 per week following the Georgia facility sale. He also confirmed that trade payables were further reduced after the quarter ended. In response to the stock buyback question, Manning stated that the Board is actively considering all capital allocation strategies, including a buyback, to address the stock's discount to its net asset value.