Earnings call transcript: iFabric Corp sees revenue growth in Q2 2025

iFabric Corp reported its second-quarter earnings for 2025, revealing a 5% increase in revenue year-over-year to $8 million. Despite this growth, the company’s earnings per share (EPS) fell short of expectations, recording a loss of $0.01. The stock, however, experienced a significant surge, rising by 18.28% to $1.30. According to InvestingPro data, the company is trading at a high earnings multiple, with the stock currently at $7.21, near its 52-week high of $8.67. This price movement reflects investor optimism about future growth prospects and strategic initiatives.

Key Takeaways

• Revenue increased by 5% year-over-year to $8 million.
• EPS was a loss of $0.01, missing market expectations.
• Stock price surged by 18.28% following the earnings announcement.
• Strategic partnerships with Lululemon and Under Armour highlighted.
• Two significant announcements are expected later in 2025.

Company Performance

iFabric Corp demonstrated a positive revenue trajectory in the second quarter of 2025, with a 5% increase from the previous year. The company attributed this growth to strategic partnerships and a focus on expanding into new market segments. InvestingPro analysis shows the company maintains a FAIR financial health score and operates with a moderate level of debt. Despite the revenue increase, the company’s EPS fell short of expectations, posting a loss of $0.01, which reflects challenges in managing costs and margins. Notably, InvestingPro data indicates the company remains profitable over the last twelve months.

Financial Highlights

• Revenue: $8 million, up 5% year-over-year.
• EPS: Loss of $0.01.
• Gross margins were impacted by contributions to advertising support.
• Cash reserves decreased by $3.4 million due to increased inventory deposits.

Earnings vs. Forecast

The actual EPS of a $0.01 loss missed market expectations, which had anticipated a breakeven point or slight profit. This shortfall highlights the company’s struggles in managing operational costs despite revenue growth.

Market Reaction

Following the earnings release, iFabric Corp’s stock surged by 18.28%, closing at $1.30. This significant increase suggests that investors are encouraged by the company’s strategic direction and potential for future growth, particularly in new market segments such as healthcare and scrubs.

Outlook & Guidance

Looking forward, iFabric Corp is projecting potential revenues of $30-35 million, with an emphasis on maintaining double-digit growth. The company is preparing to launch new product segments in the fall of 2025 and spring of 2026 and is targeting EBITDA margins of 10-15%. Two significant announcements are anticipated later in 2025, which could further influence the company’s growth trajectory. For deeper insights into iFabric’s valuation and growth potential, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and detailed financial metrics in the Pro Research Report, helping investors make more informed decisions about this emerging growth story.

Executive Commentary

CEO Hilton Caron expressed optimism about the future, stating, "We’ve grown as a business. Our whole business model has seriously taken on a new complexion." He also hinted at upcoming developments, saying, "The best is yet to come. There will be two more significant announcements in ’twenty five."

Risks and Challenges

• Managing gross margins amid increased advertising expenses.
• Dependence on strategic partnerships for growth.
• Potential market saturation in existing segments.
• Economic pressures affecting consumer spending.
• Execution risks related to new product launches.

Q&A

During the earnings call, analysts inquired about the company’s EPA kill claim process, which is ongoing. iFabric confirmed the completion of clinical trials, providing empirical evidence for its healthcare market entry. The company also noted that Protex maintains effectiveness for approximately 50 washes and that there is no immediate need for external capital, although creative financing options are being explored.

Full transcript - iFabric Corp (IFA) Q2 2025:

Moderator: Afternoon, everyone. Thanks for joining us. Sorry about the slight delay. We’re having some technical issues with Zoom. So, if there’s any complications with the webinar, please reach out and I can make sure that we get an edited copy up real quick.

With that out of the way, thanks for joining us today. We have an exciting update with iFabric, who just put out some very, very important news today. So, the format of the session will be we will talk about the recent Q2 results, plus we’ll talk about the exciting news today. I don’t believe we’re going to work off a presentation, but this session will contain forward looking statements. You can find out more about those on the company’s website.

And there will be a Q and A session, so please feel free to enter any questions in the Q and A box at the bottom. With that all out of the way, I’d like to introduce Hilton Caron, CEO Giancarlo Beavis, COO and Hilton Price, CFO of iFabric. Thanks for joining me, gentlemen. So maybe to kick things off, Hilton and Hilton, do you want to talk a little bit about the Q2 results?

Hilton Price, CFO, iFabric: Certainly. Should I do it, Please. Okay. As normal, I’ll try and be brief because I’m sure everyone wants to discuss the exciting news. I’ll just remind everybody that we did put out a comprehensive press release, very detailed on the Q2 numbers.

You can find that on our website as well as SEDAR, together

Hilton Caron, CEO, iFabric: with our MD

Hilton Price, CFO, iFabric: and A, which fully discusses all the numbers. So if you want more information, please feel free to do that. And so I’m going to focus on what I think are the salient items in the financials or the Q2 financials. I’ll start off with revenues. Now on the face of it, our revenues were flat at point 8,000,000 In reality, they were actually around 5% up on the previous year, and let me explain that.

We deducted an amount of $350,000 from revenues in respect of brand advertising, which we provided or brand advertising support that we provided to Costco, I believe, John Krollo Costco.

Hilton Caron, CEO, iFabric: Yes, correct.

Hilton Price, CFO, iFabric: I think the advantages of this are going to be seen later in the year. I think that we’re going to this is mainly in respect of our Roots brand. And we’re going to push, especially for the Canadian market, the Canadian nature of our products. So, will resonate and the advertising dollars will be well spent. Now, the reason why the $350,000 was deducted from revenues is that there’s an IFRS or International Reporting Standards standard that says that if you provide such support and you aren’t able to influence how the merchandise is or the products for merchandise in store or how the advertising dollars are spent, you’re obligated to deduct the amount from revenue.

So normally, that would be a below the line item, but because of the nature of this item, that’s an exception. It’s not treated as an expense. It’s treated as a deduction from revenue. So actually, in reality, we this is a record quarter by very small margins, so we haven’t been trumpeting it, but it is a record second quarter for us. Now historically, Q1 and Q2 are weakest quarters.

And we’re looking at some programs hopefully that we’d be able to lock in that will affect our Q1 and Q2 revenues so that we can give those or these a little push. We’d like to actually see these revenues trend higher, and I think we do have some opportunities to do that. The next item is gross margins. Here again, there was an apparent 5% drop in margins. Factually, this again is the deduction of $350,000 from gross margin calculation, which is the same as for revenues.

So the full impact or the drop in gross margins of 5% is attributable to the advertising contribution. Take that out and we would have had a similar situation. Expenses. We had a small drop in expenses from $2,400,000 last year to $2,300,000 this year. And in this regard, we adjusted a couple of provisions where I thought we had over provided for some expenses, such as regulatory costs and some professional fees and some discounts.

Not a big difference, but there was a slight decrease. Loss in exchange. Unfortunately, we lost money in exchange during the quarter, dollars 150 ks, which didn’t impact our numbers. With The U. S.

Exchange being all over the place, very difficult. We do take exchange contracts to try and mitigate the effect of exchange, but it’s not always easy to get it right when you’ve got such large fluctuations. Thank you, Mr. Trump. Earnings for the quarter were essentially flat.

We don’t historically make a lot of money, plus or minus, in Q1 and Q2. That’s all going to happen in the second half of the year. So that’s something to look forward to. Cash. Our cash decreased by $3,400,000 in the quarter, and that’s attributable to a big increase in our deposits against forward purchases of inventory.

And I’d like to explain that in more detail in a few seconds. So the deposit position at the moment actually is the highest level in company history, around about $5,000,000 We’ve never been at that level before. Now the deposit balance is definitely one that’s worth discussing further. We normally provide deposits of around 25% of an order at the time of placing the order. So what $5,000,000 in deposits tells you is that around $20,000,000 in inventories inbound to the warehouse.

And if you extrapolate that to selling value, that would translate to, I would say, around $35,000,000 So that tells you that sales of $35,000,000 are coming. And normally, that would happen in the next three quarters. And when we do plan our purchasing and make our deposits, the actual execution of the sale can happen within the next three quarters. That’s our normal time line. Invariably, Q4 will be the biggest quarter.

That’s seasonally the biggest, but obviously, that’s when retailers sell the most products. So I look forward to a large fourth quarter as we had last year. So in essence, once you look at our deposits balance, you don’t need management to tell you or give you guidance. If you look at that number, that will tell you all you really need to know about what’s coming in the short term in terms of revenue growth. So it’s a figure that you should keep your eye on.

It’s just $5,000,000 at the end of the quarter, and I believe it’s continued. Obviously, will reverse at some point when we get the inventory and apply the deposits, but it is a sign of big thing.

Moderator: Question. Should investors look at EBITDA margins over the next twelve month period?

Hilton Price, CFO, iFabric: Evidence has been quite consistent. I would say that if we’re in the 10% to 15% range, hopefully, it’s about 15%. Expenses are not totally predictable. We’ve got regulatory costs and things like that and advertising like this contribution we made that are not always consistent. Our EBITDA is not a mature thing.

But at the same time, when we get incremental growth, EBITDA I mean, our expenses don’t grow at the same rate. They’re not variable. So our target would be around 15%.

Moderator: Okay. Great. I’m just looking through. Does anyone have any additional questions about the quarter and then we’ll move on to today’s release. Hilton, were there any of those that you answered that you wanted

Hilton Caron, CEO, iFabric: to Yes, just going hand this over actually, I think the person who can give the best answer to this. It’s kind of a question that we get quite often, and I think that the market is kind of confused. So Giancarlo, if you don’t mind. The question is, and I knew from our release that we were going to get this again today, Protex two is currently registered with the United States Environmental Protection Agency, EPA, and is freely available for use throughout The United States. Does this mean it’s already approved?

Approved and why the question is, well, then if it’s approved, why don’t we have our kill claim? So if you can just break that up in in short, please. Yeah.

Giancarlo Beavis, COO, iFabric: Sure. So the US EPA has two different versions of approvalregistration as they would deem it. The first is public health claim, which would be the kill claim that we’ve been discussing over the past few years and what we’re working towards. There’s also a non public health claim, which allows us to use Protex two in a various amount in a various range of different products as we are, but cannot make any overt public health claims. So we can’t claim that it kills 99.9% of bacteria.

It’s more of an odor control claim, things that we use with Blue Lemon, things that we use with Under Armour and our other customers. That is what’s available currently in the market and what EPA is registered for. What we’re working towards is that advanced kill claim that nobody has as of this time that will allow us to make any kind of garment that will be able to claim that kills greater than 99.9% of x, y, and zed bacteria. We actually do already have one a portion of that kill claim granted, which is for non

Hilton Price, CFO, iFabric: this

Giancarlo Beavis, COO, iFabric: take it on apparel items and garments and things of that nature. I hope that answers that question.

Moderator: Yes, thank you. There was another question. The Trump administration is making major changes and eliminations at the EPA. Do you see anything that would prevent you from getting your tail claim?

Giancarlo Beavis, COO, iFabric: No, we’re not seeing any of that. If anything, we’re hoping it makes it easier. Our application has obviously is very well known to the EPA. There’s very little remaining on what needs to be submitted for it to be approved. So we’re hopeful that we’re on that list of things that just need a rubber stamp once we’ve provided all the details that they require, which we’re doing right now in the form of the leaching study.

So we’re hopeful that as soon as that data is given, we already know what the results are going to be because the product doesn’t leach. So it will land right in their safety standards, and it should just be a matter of passing through.

Hilton Price, CFO, iFabric: John Connor, can you clarify now like with the clinical trial, we can still fully sell our products into the healthcare system and we can rely on the trial to make the claims, which is a big benefit.

Giancarlo Beavis, COO, iFabric: Yes. And what I would say is the clinical trial is the empirical evidence, what we’ve been looking for. So the EPA is just an advertising thing. It will allow us to put that sticker on that scrub hanging at the store. What the clinical trial does is give health care systems, hospitals, anyone buying groups who are buying, even nurses, that we can sell the story to at retail.

Here’s empirical evidence that by wearing this, you can actually reduce your chance of getting an infection, reduce the chance of spreading infection, control infection rates within a health care setting. So it’s the real life proof that we’ve been trying to achieve. The reason we’re doing the EPA at the same time is because we want that double edged sword to be able to really show the market not only do we have real life evidence, but here’s the advertising that you can show all over town to be able to sell these products in different channels.

Moderator: How did you capitalize on the peer review received? Like, is your marketing process changing? Or, like, what’s the process going forward?

Giancarlo Beavis, COO, iFabric: Yeah. We’ve obviously been priming the pump with some of our customers in certain areas, which you’ll see coming up. Unfortunately, we couldn’t do too much priming because with a peer reviewed journal, we don’t know when it’s going to be published. We’re kind of at their mercy. So we have been priming the pump with a handful of our customers.

And then we also have our own lines that we’ve been working on in anticipation of this clinical trial that we’ll see in market in fall of this year and with expansion in spring of next year that will take full utilization of the paper that we just published.

Moderator: Then will the EPA kill claim allow us to move to a royalty model for that product?

Giancarlo Beavis, COO, iFabric: I don’t think that that’s the hinge. I think we could move to that model if we so chose at this time. We just haven’t so chose at this time. I think that as you see what we launched and some releases that will come out towards the end of this year and into the beginning of next year, we’ve already maneuvered ourselves in different avenue to generate revenue from the use of Protex and from the use of what we’ve just proven out in the clinical trial.

Moderator: I think that’s all the questions that I have on the release. Oh, there’s one oh, no, there’s one more. How many times can a scrub be washed before the protection starts to weaken or lessen?

Giancarlo Beavis, COO, iFabric: That depends on the scrub, depends on the fabric, depends on the brands. Generally, 50 washes is what we what the general market touts when we use it with other manufacturers. We’ve proven Protex can last past 100 industrial strength washes, not necessarily what we’d like. Listen, at the end of the day, we still want people to buy more scrubs, so we don’t want it to last. Could we make it last for 200?

We don’t want that too. We want them to go out and buy new scrubs. We don’t want it to last for one hundred years. But yes, it doesn’t leach out, so it can’t come out in the wash. And our general rule of thumb for a retail product is about 50 washes.

That’s not to say that at wash 51, it’s zero efficacy. In actual fact, it probably still remains efficacious, plus 75 without any drop, and you’ll see gradual dropping from there. And when we say gradual dropping, 05%, 1%, things of that nature, it doesn’t just fall off a cliff.

Hilton Caron, CEO, iFabric: Okay. I saw two questions, Deborah, that I’m going to just try and answer together because it kind of is asking about what do tariffs are tariffs going to be a permanent reduction of margin? Or is it something that’s on a temporary? And then the other question is, what percentage of our sales in The U. S.

To Canadian sales? And how is it going to affect 2026 and beyond? So the fact of the matter is, is there’s no company that’s going to take any tariff on a full time permanent reduction of margin, and certainly, we are going to be no different. So I think that while margins are there might be some minor impact between our suppliers’ participation, between our participating in some way, but we’ve really had some very nice conversations with retailers and they fully understand retail prices is going to be the lion’s share of absorbing any it’s the consumer that’s going to pay these tariffs at the end of the day. So there’s certainly not going to be any permanent impact on margin in the long term for our business or for anybody for that matter.

And I’m of the belief that we haven’t heard the end tariff reductions, not increases. Keeping in mind, we don’t manufacture anything in Canada. So our duties and duties spoken of as from Canada to The US are not pertinent to our business. All our manufacturing is done overseas. And to the second part, which is what percent of our business is really done in Canada, where we’re talking about quite a substantial increase in business in Canada.

Well, as I’ve always stated, our business is forward looking. And as Hilton Price has stated, our deposits are four to five times what they’ve ever been in the history of the company, which translates into four to five times revenue compared to this time last year. I think that we’ve got opportunities on both sides. So I think for us to put a hard number is really irresponsible. I just see really lovely growth in ’26 beyond ’25.

’25 is certainly going to be another record year, and I can’t wait for ’26 to be done because all the programs and whatever is being spoken about that we’re working on right now, between new product and increase in size of programs, both in The US and Canada. I don’t think it’s really important what our revenue number we’re going to take tariffs into account in all these costings going forward. I just think that, you know, as you see what full year ’25 is going to be, and we will bring up guidance again for ’26, but there’s no reason to believe that and and especially in light of the news that we got today, remember all the pretty impressive from my point of view growth that this company has been on the last couple of years, certainly double digit, was without EPA, without clinical trials, without a journal. So the boost in revenue and growth of this company has been done based on what we’ve had today. Today’s news is just icing on the cake, for us to speed up entry into medical markets and other areas of business that we haven’t supplied into before.

So I can only say that we’re excited and have never been in a better position from a corporate revenue and growth potential point of view. Know people hear us say it every year, but we’ve delivered it every year. So to go in three, four years from 10,000,000 to $30,000,000 it’s not going to take us four, five years to go from 30,000,000 to 60,000,000 I think our growth trajectory in the double digits has been year after year, and you’re talking double digits every year of bigger numbers. And there’s no reason why the future won’t be able to maintain that kind of trajectory. So we’re pretty excited about what we’ve built and where this company as a group is going.

Moderator: So today’s announcement, does it open up access to new customers?

Giancarlo Beavis, COO, iFabric: Yes, absolutely. It opens up to hospital groups. Opens up to a whole host of different uniform suppliers, all types of different markets that we worked in today.

Moderator: Do you have any scrubs customers beyond charismatic brands?

Giancarlo Beavis, COO, iFabric: Up until this point, we don’t, but just stay tuned as we come into the end of this year and into next year. We have made the announcement, we’ll be able to talk about it. But up until this point, we’ve been working on an exclusive arrangement with Charismatic Brands. That came to an end at the beginning of this year. So as we go forward into the rest of this year and into 2026, there are some things that are on the fire that we’ll announce once appropriate.

Moderator: With today’s release, will the company now be mainly focused on getting into the scrubs market?

Giancarlo Beavis, COO, iFabric: I wouldn’t say mainly focused, but it is obviously a big focus of us. Again, things to be coming to be announced in the rest of the year and into 2026. But yes, obviously, our renewed focus is there. But we have so many other things that are on tap right now that we’re getting into new product segments that are launching this fall that we have not been into and that are planning to expand into next year with an additional new segment that’s coming on towards the end of next year as well. So it will be one of many.

Moderator: Can you tell us anything about that additional segment?

Giancarlo Beavis, COO, iFabric: I don’t think so until we release it, no, unfortunately.

Hilton Caron, CEO, iFabric: I don’t think our brand partners, Deborah, really appreciate us putting the cart before the horse. I think every statement that we have made that we’ve stated we have delivered on. And I think we as Giancarlo said, in ’twenty five, there will be probably two more nice statements of what we actually what those new categories are. Those are categories we’ve never delivered into before, but I don’t think that our customers would appreciate us trading off their name or what they’ve worked for the last year or eighteen months of development for us to be telling the market in advance what we’re going to be delivering. I’m just going to make two statements.

Our business three, four years ago was probably three, four containers a year. We’ve got products where this year one order is going to be 40 containers. So we’ve grown as a business. Our whole business model has seriously taken on a new complexion. And I want to take this opportunity to congratulate on Carlo and his team.

We said we were going to do this journal. We said we were going to get these reports, and we’ve done it. And these are not things that we can really make a lot of press releases about until we’ve got it signed, sealed and delivered. And I know people have asked us repeatedly about EPA, and my standard answer is we’ve never to date had one single rejection from EPA. So it is prudent for people to believe, it’s for us to believe, we believe that we still have a chance of getting this one final test.

It’s not easy. It’s not quick. We’ve got European laboratories working on it. We’ve expended a lot of resources and time to put this thing to bed. But I think the impressive growth that this company continues to be able to provide without having those things speaks to what we’ve been able to achieve to date and what kind of a future we’re on regardless of what has happened to date.

So I’m excited. I think this whole business, that’s the culture here, we’re taking on more and more development staff because there’s just not enough hands on deck for the growth that we’re enjoying. And the best is yet to come. There will be two more significant announcements in ’twenty five, but as Giancarlo says, when they’re on the shelf and we’re ready to announce it, we will let people know what we delivered in ’25.

Moderator: Awesome. Are you guys good to take a couple more audience questions? Sure. Okay. So one of them was, what’s your current market share in the health market?

I’m not sure that you’re able to answer that, but do you have any idea?

Hilton Price, CFO, iFabric: Minuscule.

Hilton Caron, CEO, iFabric: It’s you know, I I hate to use the word billions, but the medical market, the scrub market alone, just scrubs alone in North America is probably a $1,000,000,000 market. We just you know, we’re just putting our toe into that market can be worth multiple millions day one with with with serious growth growth opportunities there. So, yeah, that that’s a great, you know, it’s a great forward looking area of business for us.

Moderator: Then with this study, are there medical key community leaders being engaged, utilized to educate the medical market through CME’s medical conference poster sessions or presentations?

Giancarlo Beavis, COO, iFabric: Yes. So we’re just getting started on that portion of it. We obviously do have conferences planned for ’26, but without having a hard date, kind of really impossible for us to start planning anything until we had it in hand. But yes, we do have skeleton outline of what we want to do for 2026, and we do have a partner from a retail side of life that will be joining us on those conferences that, again, as we get into announcements, we’ll be able to talk about.

Hilton Price, CFO, iFabric: I see a question. Has

Hilton Caron, CEO, iFabric: the journal been published or was just a press release? No. It’s we had to wait for the journal to do the publication before we had the opportunity to make the

Hilton Price, CFO, iFabric: There’s link in the press release to the actual article.

Hilton Caron, CEO, iFabric: Correct. Correct. So it’s published.

Moderator: And then would it be worth exploring partnerships to accelerate market penetration in revenues?

Hilton Price, CFO, iFabric: Yes. I mean, I think

Giancarlo Beavis, COO, iFabric: we do that all the time. We have a good mix of our business where we do it ourselves and where we have strategic partners. So I think that that’s kind of already what we do. And do we have some additional stakeholders in key industries that we’re not in? Absolutely.

And we’re exploring those as we go forward.

Hilton Caron, CEO, iFabric: I’d like to just add something. I I think that one is going to see in the future where we’ve come up with our own in house brands. And where in the past, we use licensing a lot and will continue to use licensing in in in many strategic ways. I think we’ve been really successful in 25 in retailers starting to use our own brands, which means that we’re not paying royalty on every product in every instance to use a to use a royalty where we’ve now started to really promote our own brands. So I think from a bottom line perspective, from a competitiveness perspective into 26 and beyond, by using our own in house brands and getting these brands well known, I think, is great value for the company going forward where we’re going to own brands that are going to be recognized in the marketplace.

And I think that’s an important point to bring forward.

Moderator: Another audience question. Would a clothing line for the immunocompromised make sense? Is that something you thought about or looked at?

Hilton Caron, CEO, iFabric: I’ve actually had, conversations with certain people. The the problem that we have as a business is we are really geared towards volume. And while these things really are a great story and and and it’s you know, we like to to do good with what we I mean, I think a great part of our company is that our products are all about enhancing quality of life. If we found a brand that was really focused on that market and could bring us sufficient volume to make it worthwhile, it’s something that would not be difficult for us to do. It’s all a matter of scale and economy of scale.

But do we have something that clearly would work for them? The answer is yes. Unfortunately, in some cases, I know a couple of years ago, there was something in Africa with Ebola, and everybody got all over us. And it was all of that needing a 100 beds. It means a 100 sets of linen.

We’re not we’re not for the hundreds. We need we need hundreds of thousands to millions of units for us to be interested in. You know, we we are a volume house. So while while it sounds like great ideas, we unfortunately have economics that come into play.

Giancarlo Beavis, COO, iFabric: of the benefit of some of our partnerships too is that Protex is available to the mass. If you go to some of those brands that we’ve talked about in the past, the Lulu’s and the Under Armour’s and those guys, I mean, if you’re immunocompromised, the Protex there just because they’re not advertising it as an antibacterial, They’re advertising it for antiodor. The product is still there, and it still works as it should. So having those strategic partnerships, obviously, make it available to the masses and make it available to those niche markets, just maybe not directly from us.

Hilton Caron, CEO, iFabric: And there’s another question. Is there any capital required to support the growth beyond current lines of credit? Is there any EDC financing available at a low cost? We certainly work with EDC already. They know us.

We’ve got a long standing relationship with EDC. EDC comes with some pros and cons of financing through them, but we certainly are very familiar with them and have a great relationship and history with them. And they, in our last couple of meetings, are more than available based on the past of working with us in the future. However, I think we should note that currently, we’re not using $01 of our current financing and we’re growing quite nicely. That doesn’t mean that in the next few months with the kind of growth we have that we won’t be dipping into our financing lines as the business grows.

Is there any immediate need for external capital? The answer is no. I think we could pretty much get to the 50,000,060 million dollars on what we have right now. However, that number seems to be coming at us quicker and quicker. And we’ll monitor the situation.

There are some other creative financing ideas that have come our way out of Europe, and we’ll explore all opportunities as needed, but it is not an immediate concern for us. We have more than enough to finance and run the business with what we have on our plate and still get some nice growth opportunities. So, yeah, it’s just something that we do monitor all the time is our cash flow and our credits. But right now, we’re in a great position. So I really don’t think that that’s anything that the next twelve, eighteen months is going to unless something so monumental comes out of the woodwork that sees us double our business from where we are right now.

And we’ll bring it on. It will be a nice problem to have, but we do monitor it all the time, obviously.

Moderator: One last question there, which is for Hilton Price, I guess. Should investors expect 10 to 15% EBITDA margin range in Q3 and Q4?

Hilton Price, CFO, iFabric: I believe so. I think that if we see north of 30,000,000 in revenues, we should see 30,000,000 to at least 30,000,000 that’s 10% and hopefully $4,500,000 in EBITDA.

Moderator: Okay, great. That’s all I have for audience questions. Thank you so much for joining me today and for answering the questions. Thanks to the audience for your participation, and congratulations on a really solid first half of the year. And it sounds like you’ve set yourself up for some really good growth in the back half.

So congrats and yes, look forward to those exciting releases.

Hilton Caron, CEO, iFabric: Thanks, everyone.

Hilton Price, CFO, iFabric: Thank you

Giancarlo Beavis, COO, iFabric: very much.

Hilton Caron, CEO, iFabric: Thank you. Take care.

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