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Deborah Honig: [indiscernible] The Q2 numbers, which were fantastic, carrying on with a record year. So here to tell you more about that, is Hylton Karon, CEO; Hilton Price, CFO; Giancarlo Beevis, COO. Before we get started, just so we're clear on the format, the gentlemen are going to provide a very brief overview of the quarter. And I think we have a lot of Q&A, so we'll just jump right into Q&A fairly quickly. I don't believe that we will be working off a presentation, but this session will contain forward-looking statements. If you'd like to know more about those, you can find them on the presentation posted on the website, which has been updated if you want to check that out. And like I said, there will be significant Q&A section. So feel free to enter your questions the box at the bottom. With that out of the way, I'll hand the mic over to one of the Hiltons. Looks like its Hilton Price.
Hilton Price: Good morning, everyone, and welcome. As I normally do, I'll start the webinar by saying that we put out a very comprehensive press release on the Q2 and 6-month numbers and results. And the release as well as the financial statements, management discussion and analysis can be viewed on our website at www.ifabriccorp.com. So I'm going to deal with what I consider the main or salient features of the results. I'll start with revenues, Q2 revenues came in at $9.6 million, compared to $5.8 million in 2025, which was an increase of $3.8 million or 65%. There's one item I'd like to discuss here. That is we provided $650,000 in advertising support to customers and as required by IFRS, this is deducted from revenues. So in fact, our true amount invoiced to customers was around $10.3 million. But look, I don't agree with this requirement. I think it's stupid, but it is what it is. So revenues were reduced by $650,000. The rule is that if the customer gets to determine how the dollars are spent, it's a deduction from revenue. With regard to the 6-months revenues, those came in at a record $37.1 million compared to $12.9 million in 2025, which is an increase of $24.2 million or 188%, an absolute record. I'd like to take a few moments to discuss the seasonal nature of our business. And in this regard, we have 2 kinds of programs, seasonal programs, and this would include products like swimwear, footwear. These are set programs and currently a range in size from around $3 million to $8 million. They sell through fairly quickly around 2 to 3 months. And these programs will normally ship in Q1 and Q4. And that's the reason why those are our biggest quarters historically. That may change in time as we get programs through the middle part of the year. But at this point, those programs generally go out in Q1 and Q4. And the second category of revenue is from replenishment. These are programs that run throughout the year those kind of products would be scrubs, underwear and the bulk of our intimate apparel. So in the current quarter, we mainly focused on replenishment. I don't believe we did any set programs. So if you look at the 65% increase growth year-on-year, that's a good indication of strong momentum in my mind. Gross margins, on the face of it margins dropped from 37% last year to 30% in the current quarter. And here, again, the $650,000 that we provided in advertising is deducted from margins because it's deducted from revenue, it flows down to margins. So the full 7% drop in margins is attributable to that $650,000 deduction for advertising. Going forward, we're going to take -- we've taken the decision actually to provide less direct support to customers in favor of doing the advertising campaigns or the marketing ourselves in-house. We've hired specialists to do that. In our experience, retailers don't always spend the marketing dollars efficiently. And I think actually, we could do a better job and also make for far more consistent margins, which I think tends to confuse investors. Selling and administration expenses increased by $800,000 in the quarter compared to 2025. Most of the increase is variable costs such as royalties and commissions as a result of the increased revenues, although we did do a lot more traveling in the quarter, and we have increased our staff complement year-over-year. So that is part of the increase, but the bulk of the increase is variable costs. EBITDA that came in at $715,000. Let me just one other thing before EBITDA. In the quarter, I'm pleased to report that we recognized $925,000 as sundry income in respect of the recovery of tariffs from tarrifs. This is net of our processing costs. The amount has been fully processed by U.S customs. And to date, we've already received $710,000 in cash. We've got $250,000 still to be received, which I believe will be received in the next quarter. EBITDA came in at $715,000, a turnaround of about $1 million from 2025. I was projecting breakeven. So the tariff recovery, obviously, did provide us with some earnings. I'll take it all gifts graciously received. EBITDA for the 6 months is $5.8 million compared to zero in 2025, and that's an absolute record for the company. Anything else there, no. I think that's it for the profit and loss account for the income statement. In terms of our balance sheet, our balance sheet has been beefed up by a very successful capital raise that we closed in June. We received with bank net proceeds of around $21 million. And we finished the quarter with $25 million in cash after paying off our credit line and our working capital stood at around $45.1 million together with available credit lines of about $14 million or $15 million between trade credits and our regular bank line. I've calculated that we can push revenues well north of $100 million without the need for additional capital or debt. I think that's all I really have to say. I'm happy to answer any questions.
Deborah Honig: Great. Hilton I had a bunch of questions come in, in advance. So I'll start with those. We'll be audience inputs any questions that they may have. So deposits paid to suppliers fell from $1.87 million in December to $884,000 at June, down 53%. In April, you said deposits were $5 million to $8 million and that when deposits go down, you have a problem, what's the number today? And what does it commit you to for Q4?
Hilton Price: Today, the deposits have grown to $5 million. So that's indicative of the fact that all the programs that we expecting for the later part of the year are starting to materialize and crystallize. I think the deposits figure will grow a bit more. And that normally we put down 25%. So if you times at number about 4 that shows what's already in the books with more to come.
Giancarlo Beevis: Yes. Also just to add to that, as we've negotiated some better terms with our suppliers. So our deposit numbers are a little bit lower on the front end. So that's why you're seeing a little bit of a lower number on deposits.
Deborah Honig: Got it. And your 2025 segment note shows 49% gross margin in intimate apparels and 27.5% in intelligent fabrics with IFTNA at 81% of revenue, that arithmetic gives 32% blended, which is what you reported. You guided to the high 30s, what were the 2 segment gross margins in the first half? And what gets IFTNA above 27.5%?
Hilton Price: Well, I did mention that $650,000, which is all IFTNA so that did impact IFTNA's margins. Our target for blended is 35%. So intimate apparel tends to be a bit higher, around about 49%, 50%. IFTNA generally around 30% because of we're dealing with major retailers. We do work off higher volume, lower margin. And it depends on the product mix, what the ultimate margin for the quarter be, we do a higher proportion of intimates you should see better margins. We do have a proportion of intelligent fabrics, the margins will drop.
Deborah Honig: Okay. And then talking about the marketing support to retailers. I think this is the first stated use of proceeds for the money that you raised. Should investors view this as a recurring cost of winning shelf space, what percentage of gross sales should we model for it going forward? And maybe you can just give a little bit more color on what that program is.
Hilton Price: Yes, it will be recurring, but I think we're going to try and cut back on it and push back against retailers because they just asked for a number and quite frankly, we no longer just accept those kind of numbers from retailers, we'll fight back. I think we can do a better job. So yes, we still will provide some advertising directly to retailers but our long-term strategy is to do the campaigns ourselves.
Giancarlo Beevis: Yes. And in fact, we've kind of already approved that strategy out with target on the scrub program that we did. There was a big ask for some advertising dollars there that we pushed back and took on ourselves and has really been doing well for us and for the program, and they're quite happy with it. So I think we'll be successful in doing that with further programs with them as well as the other retailers.
Deborah Honig: Okay. And then in July, you signed an agreement with GemstopSQ Inc to formulate, manufacture and commercialize active antimicrobial hard surface coating technology. Are you required to pay anything into this initiative either a capital investment, marketing or advertising support?
Hilton Price: Yes, we're going to put all the development costs. We're going to pay for all testing, development they will not charge us any fees. Obviously, all the work they do is their end of the contract, but we'll pay for all the direct costs.
Deborah Honig: Got it. And do you have any idea what the scope of that would be?
Hilton Price: Well, it just depends how successful you are. The more we have to trial and error, the more expensive it will be. Obviously, if we get it right straight away or in the short term, we'll obviously have a much lower cost.
Giancarlo Beevis: And as we've done some preliminary work, we do have a decent base to start working off of. So we're hopeful that will be too much trial in here.
Deborah Honig: Okay. I see a number of questions about scrubs, so maybe thematically, we'll move into scrubs first. So if anyone has questions related to that, please add them now, so we can at least keep some sort of structure to the call. So what is the status of Walmart USA adding more stores in 2026 and 2027.
Giancarlo Beevis: Yes, kind of same as where we were. As soon as there's space available for us, we'll add into additional stores. They have a lot of inventory from the incumbent that they're trying to move through. But all signs are still, as we've mentioned previously, that we would look to be a good part of their business in the scrubs by fall of '27.
Hilton Price: I jump in here, Giancarlo. Giancarlo. Am I correct in saying that our bigger goal is to get more shelf space?
Giancarlo Beevis: Our bigger goal is to get more shelf space, potentially introduce new brands that are owned by us as well and to increase SKU count as well as add doors. It's a combination of all of it.
Deborah Honig: And then are you planning on launching scrubs globally in 2027?
Giancarlo Beevis: I think we're obviously looking to continue our international growth. We've seen that we've gone into Marks & Spencer's with our Protex that we announced last year. We just announced this week the expansion of our swimwear program from North America into 5 European countries. So yes, it is on the radar, but I think what we'll do is we'll do it through our current retail partners. Costco sales globally. Walmart sells almost globally. So we'll continue to work through those partners as we grow international.
Deborah Honig: And then will you consider a premium pricing for scrubs on future brands once it gets traction in the market or once EPA approval is received?
Giancarlo Beevis: Potentially. I mean, all of that's on the table. But right now, the strategy we took to be a more available price point seems to be working. If 60% of people in the U.S. buy their scrubs at Walmart, that's where we want to be.
Deborah Honig: And what's the current time frame for replenishment orders for the scrubs retailers? Is it every 3 months? If so, are scrubs being held in inventory for these retailers?
Giancarlo Beevis: The scrubs is a 52-week a year replenishment program. So we ship scrubs every single week. And yes, we hold for Walmart anywhere between 12 and 16 weeks of stock in our warehouses.
Deborah Honig: And my understanding is that Walmart is still working through some legacy scrubs product? Do you have any update on that?
Giancarlo Beevis: Just trying to get rid of it. The previous supplier had a huge amount of inventory in there that they are clearing out at their pace, given their markdown strategy and what they have available to do what they need to do to get through it. But outside of that, I don't.
Deborah Honig: And are you expecting to be the only scrub spread at Walmart?
Giancarlo Beevis: I can't answer that. I don't know. I love to be.
Hylton Karon: I'm just going to jump in. Even if we're not the only there's a high likelihood that we're going to supply more than one brand in the future. So there are plans to expand our opportunity there. So it might appear to look like 2 different suppliers, but it could very well both be us.
Hilton Price: But we'll be the only one with a clinically proven antibacterial. So I think that's where the benefit is for us.
Deborah Honig: And I think I just have one last question on scrubs, which is like where are you at in the process for getting into a hospital network to purchase scrubs. And yes, maybe you could provide an update there?
Giancarlo Beevis: Yes we're still working with the Memorial Care Group, which is where we did the clinical trial. It's a cyclical thing. They have contracts that we have to wait until they expire. So we are going through the process, but we're still beginning stages of that. Once we get in there, I think it will open up quite a few opportunities elsewhere. But in the last 6 months, we've been focused on executing the retail strategy that we decided was the lower hanging fruit.
Deborah Honig: Got it. And then how does the international growth playbook differ from North America? You touched on it a little bit when relating to scrubs, but I think this is more of a generic question for all brands.
Giancarlo Beevis: I mean our focus is North America because we're so entrenched in it, and we have the opportunity on our doorstep within the United States. And we're -- those specific retailers in the U.S. are actually coming to us with programs. So we'll deal with that first because it's on our table currently. But internationally, we'd like to grow. Obviously, there's ASDA in the U.K., which is the Walmart of the U.K. We've had some discussions with Walmart Mexico. So it's there, it's ready to go. I think scrubs are a universal item everywhere needs them. So that will obviously be one that's a key for us, but same with a lot of our other product categories that we'll get into going forward probably into the later half of 2027.
Hilton Price: And it wasn't our peer review done by a U.K. medical journal?
Giancarlo Beevis: Yes, correct.
Hilton Price: Okay. So that may resonate there as well.
Giancarlo Beevis: Yes.
Deborah Honig: And is there any metrics you can give us as to how to measure royalties and commissions in selling costs? Do most of the commissions related to new product introductions or -- sorry, do most of the commissions relate to new product introductions to all sales generally. In other words, should we expect selling costs to correlate directly to revenue growth? Its a long run, it's the top question in the box. If you guys need to read it.
Hilton Price: The answer is yes, it will correlate. And no, we don't take commissions on all our sales. I don't believe we pay any commissions on intimate apparel. It's very specific intelligent fabric programs like for Walmart, where a representative or a consultant open the door and they get continual revenue stream from us. There might be others like it in the future. But it's not every product that we sell that generates commissions. And not every product generates royalties. Obviously, our own product -- our own brands are royalty free.
Deborah Honig: Okay. And then is management exploring structural melt extrusion or inherent physical fiber innovations for long-term product development or is this strategic focus remaining strictly on proprietary chemical treatments applied to existing yarns and fabrics?
Giancarlo Beevis: Yes. We've done both in the past. We do have some fiber technologies that we're looking at as a long-term R&D project, but we've found topical a much more integratable way of using our technologies in the market. But yes, there are some developments on the horizon for us in that realm as well.
Deborah Honig: And can you comment on sell-through as you have visibility?
Giancarlo Beevis: Yes. I mean our scrub programs have been doing well. All of our new intimate apparel launches have been doing incredibly well, leakproof continues to thrive giving exact sell-throughs. I don't think we would be appreciated by our retailers. But everything is -- we don't have anything that's not selling through, let's put it that way.
Deborah Honig: And can you provide any guidance or any updates on how Nudish is doing?
Giancarlo Beevis: It's taken off quite well. It's doing well at Target. It's doing well at Coles. And in fact, we're expanding that brand out to not only being the solution for on bra accessory products. We'll be looking to launch more performance-type underwear and bras coming in the future as well as some sleepwear and some loungewear that will also bear the Nudish brand. And then we have some other opportunities that we're looking at to use that brand as well.
Deborah Honig: And for Costco Roots footwear, can you provide an update on how that program is going?
Giancarlo Beevis: The first one has gone through, and we're busy finalizing one for the following year. So that's where we're at right now.
Deborah Honig: And Root's swimwear, is that still a program that's...
Giancarlo Beevis: Continuing into next year. Yes.
Deborah Honig: How would you compare the sizes of those 2 programs? Obviously, footwear is larger.
Giancarlo Beevis: Yes, we generally don't give breakdowns on what our product mix is and how that leads to revenue, but they're both substantial programs and both doing very well and look to be in for the foreseeable future.
Deborah Honig: And could you provide an update on the commercial rollout and initial retailer feedback regarding the partnership with the LA collective to bring functional bedding to the North American market?
Giancarlo Beevis: Yes, that's something we're working on now. We expect it to be somewhere in the market in 2027. The acceptance has been obviously very good. The physical properties of the betting itself are incredible as well as the technology that we're going to add to it. So the initial feedback has been great. We're fitting into retailer calendars to make sure we get a launch in the not-so-distant future.
Deborah Honig: Okay. I think that covers everything on specific programs. We saw a step in G&A expenses over Q1. What is the baseline expectation in Q3 and Q4?
Hilton Price: Baseline?
Deborah Honig: G&A expenses.
Hilton Price: Our goal remains to make 15% net after G&A. So I'd rather look at it that way. We don't -- G&A relative to -- I mean, we're not a big company. So G&A is actually very, very manageable. I don't see massive growth in our core G&A, there's any growth that's going to be in variable costs related to revenue. We will add people. We will be adding people, but we'll also be using AI. So maybe we'll get some kind of benefit there.
Deborah Honig: Yes. Next webinars, just chatbots right, guys?
Hilton Price: I have been replaced by AI. [indiscernible]
Deborah Honig: You mean both Hilton. How should we think about selling expenses on a quarterly basis going forward given the rollout of multiple new products? Will the share as a percent share of gross revenue change materially?
Hilton Price: I don't believe so. At larger revenues, the decrease will be fairly nominal, yes.
Deborah Honig: Yes. And can you talk about the investment in new product launches broken down by CapEx, if any, in the hard service chemicals and marketing campaigns to roll out and target internationally, et cetera?
Giancarlo Beevis: The investment in new product launches, I mean, we do -- specifically I'll go into the target scrubs like we -- as Hilton had mentioned, we took on the advertising there. I wasn't a massive investment, but we use it wisely, and I think probably better than would have been handled in-house, for example, if we would have done it through Target. They would have put it in their marketing machine and would have been marketing to the person looking for bananas at Target who's not necessarily looking for scrubs by handling it ourselves, we're able to focus it and really dive into the customer trying to let them know that now Target carry scrubs and how great those scrubs are. So while I can't really give you the dollar figure of what we invested, it was substantially less than what they wanted and substantially more effective than what we believe theirs would have been. When we started the scrubs at Walmart, we paid for some signage in every store where all of our scrubs went and intimate apparel, we paid for some sidekicks that go in about 1,100 Walmart stores. But again, that's real estate now we own. So it's ours for the next however long, it's not going anywhere because we paid for it. So I can't put a number on it, but there is small investments on major programs that we launch. I mean for hard surface chemicals, it was a nominal fee that we started with. And as Hilton mentioned, we'll pay for all the direct cost testing, things of that nature. That's pretty much it. I think that's as best we can answer that.
Deborah Honig: And then on the Target or launch, the press release mentioned 400 stores. How should we think about the rollout across those locations? Is there an incumbent like a Walmart?
Giancarlo Beevis: No, so we are the only -- Target didn't sell scrubs before this launch. We were the only ones they put it out to all the major scrub companies in North America to be the supply they chose us, predicated primarily on the clinically validated study in technology that are on the scrubs, they saw the value. So those 400 stores would have launched almost all at the same time. They should have been at the same time, but over about 4 to 5 weeks span, most of the stores get them set and that just happened a couple of months ago. So that -- those stores should be fully set by now. We know it's doing well. We know it's continuing through next year. So now it's really just to expand, I guess, same as Walmart expand SKU count, expand store count and continue to grow it.
Deborah Honig: How do they pick those 400 locations just out of curiosity? Are there certain markets that they think they'll do well in? Are there certain locations that they just used to test any new products?
Giancarlo Beevis: Typically, you get told by a retailer. With this particular program, they asked for some of our guidance as to where we would see the best value. So we put them near major medical systems, major medical schools, things of that nature. Not all of them went there because it depends on store space planning for Target. But yes, we were able to help them strategically pick some certain locations out of those 400 that we thought would benefit from having the scrubs and would possibly have more people walking into a Target looking for scrubs.
Deborah Honig: Got it. And have you thought about a B2C program for scrubs in the U.S. direct-to-consumer.
Giancarlo Beevis: Currently, no, but we'll see in the future.
Deborah Honig: And there are a lot of moving parts in the near term. Do you have an update on long-term strategy for growth beyond 2026, '27?
Giancarlo Beevis: Hilton, do you want to take that or do you want me to?
Hilton Price: Go first.
Giancarlo Beevis: Okay. Sorry. I was -- I got distracted on that one. I mean, the long-term growth strategy. Again, is there a lot of organic growth. We want to continue to grow in the retailers we are. We have so much ample opportunity. Scrubs at Walmart we're 8 SKUs and 1,400 stores, it could be 12 SKUs and 4,800 stores. So that's our focus in the near term. And it might take more than near team to fully execute all of that and get into all those stores and fully penetrate. Obviously, the same thing at Target, scrubs is a major focus with us in all aspects internationally growing. I mean having the versus brand regardless of what category it is expand into 5 new countries is very important for us. We want to make that a prevalent brand that other retailers want to bring in and put in store. We think that the launch in Europe in store will lead to North American in-store placement, hopefully, as soon as spring of next year. So that's kind of where we are through '26 and at least through '27. Also the new product categories that we haven't announced as of yet that are not necessarily apparel still textile-based but more hard -- I want to call them hard surface but hard product. That's a big focus on us to diversify the different categories that we're in through '26 and '27. Some cool new things launching that once we can say we will say. I think that's pretty much it for '26, '27. We're already believe it or not starting to look at '28. So that's where we are.
Deborah Honig: I think If not on this call and previous ones, Hilton, you've mentioned a long-term EBITDA target of 15% to 20%. When do you think that sort of comes into play for investors? Is that '28, '29?
Hilton Price: Almost looking good for this year. So we'll see it plays out.
Deborah Honig: And at what point would you start to think about a possible dividend.
Hilton Price: As soon as we need more money. No, I think we're cognizant of that. One of the problems is when we're using credit lines that becomes difficult. If we maintain a cash situation, it could be sooner than you think possibly within the next 2 years. We would like to get a dividend on the table. It might start small, but we would like to start with something.
Deborah Honig: Yes, makes sense. I think also like you're considered high growth, so keeping cash for growth right now is probably what investors for the most part, would want you to do.
Hilton Price: Yes. I think we're better off spending our money to develop IP because IP will create the best long-term value. Certainly, it will create a lot more interest in our company. I'm not saying we'll get bought out. But we'll have a lot more big company eyes on us. And for those big billion-dollar companies, $500 million, $1 billion is just a rounding difference.
Deborah Honig: What's the probability of securing sales agreements with Costco USA? I'm assuming that's specifically for scrubs.
Hilton Price: I don't know how it relates to scrubs, but we're working on it. We signed a new license with the brand, as we noted a couple -- I think it was about a month ago that we've gone strategically for entree into Costco U.S. and Sam's Club in the U.S. So I mean I can shake my crystal ball and see what it says, but I would -- a high probability is my guess, but we're working on that currently.
Deborah Honig: And I think you've already talked about R&D pipeline. And Nudish I think you can't really relay any information on that on.
Hilton Price: Can I jump and say, Deborah we got a lot of other technologies, some of which we haven't actually brought to the forefront to create businesses out of. So there's plenty within our current portfolio that when we start devoting some time and attention to them, they will represent growth points within the company.
Giancarlo Beevis: It seems to be that the product pipeline seems to be a recurring theme here. So like just a quick future state talking about it. I mean we're working on a combination of Protex with One of our other technologies called Dreamskin in a wound care environment where Dreamskin is specifically developed to help your skin heal faster. So when we combine the 2 products together, obviously, Protex keeps the infection away while Dreamskin is going to help your wound hill in a faster state. That is something we're working on, on a wound care type of product. And just to give a little bit of care going forward, those are some of the markets that we're working on and some of the products we're working on for probably late '27, early '28.
Deborah Honig: Would something like that require another clinical trial or is the one that you've conducted sort of cover you off?
Giancarlo Beevis: Wouldn't require a clinical trial requires some regulatory work. But last year, we announced I believe it was last year, it could have been 2 years that we registered as a medical device for some of our products. These types of products would fall under that registration and was part of why we started the medical device registration early.
Deborah Honig: Do you require any other studies in hospital studies, things like that?
Giancarlo Beevis: We don't require, but I saw the question there. Are we going to do any more? We may. I think that we will look to do something on other soft surfaces within a hospital, potentially ward curtains, potentially bedsheets, things of that nature. We do have hospital groups that are in the U.S. that are interested, Memorial Care being one, another one that's probably the third largest health care system in the U.S. who has expressed interest in doing some kind of study with us. The end of the question there is to prove that the scrubs reduce infection rates as opposed to loads on the scrubs, it's all part and parcel. If you reduce the amount of bacterial living in an environment, it can directly link and there's theoretical proof that we can show that it doesn't produce infection rates. I don't know that doing another scrub study would really help. But we would like to show it across multiple different soft surface items.
Deborah Honig: And just like in terms of your strategy, your market is so huge, like the end market for what you could possibly do. Is your strategy going to stay more specifically in your lane of textiles, fabrics, apparel, shoes and then do you like licensing agreements for other sort of subsectors or other industries?
Giancarlo Beevis: We'll see. We'll take on where we think we can do it well, and we can do it better. And if there are other items, specifically maybe the wound care is an opportunity where we license it to a Medline or Cardinal health or something like that. That is an opportunity. But where we think we can do the best job, we'll keep it in-house.
Deborah Honig: And would you license some of your core technologies to new markets like Asia or LatAm or globally, scrubs is huge, right? But that is something you potentially look at? One last question, I think. And if anyone has any additional ones, feel free to jam them in there, and we'll try and cover them off. So I appreciate the commentary on revenue seasonality. Given Q4 I'm not sure that this is true, but they say given Q4 is expected to be the highest revenue quarter. I think that's generally seasonally maybe not for 2026. But can you discuss how Q3 is tracking so far? I don't think you can really provide guidance, but maybe you could talk a little bit about what you're seeing for the second half of the year?
Hilton Price: I would anticipate Q3 being mainly replenishment oriented. We may get some of these set programs start late in the quarter. Giancarlo can speak to that. Sometimes the timing doesn't always line up year-on-year. So it just depends at the end of the day. As a rule Q1 and Q4 will be our biggest quarters.
Giancarlo Beevis: Yes. I think that Q3 will be an improvement over last year. I think we could squeeze maybe one program in, again, really depends on timing and when we actually ship the goods. But if it doesn't go in Q3, it will just add to the bigger number in Q4. So we like to look at the business as an annual business, not a quarter-to-quarter. So that's how -- that's what our goals are is to make sure that the year-over-year numbers are where we expect them to be.
Hylton Karon: I'm going to jump. I think it's important for the investors when they're looking at our quarters to compare quarter this year to quarter last year. Don't look at Q2 and Q1 and say, well, you did so much in Q1? How does it relate to Q2. It's more important for us because the seasonality to look at quarter this year to quarter last year, that's a better way of looking at the performance of the company, and we've exceeded every number from year to year. And to Giancarlo's point, I really think that when you put the 12 months together, that's where you're really going to see quite impressive growth.
Deborah Honig: So investors should look on a trailing 12-month basis if they want to be looking at revenue.
Hilton Price: Makes most sense.
Deborah Honig: And just for clarity, I think you've been very consistent all year since you reported Q1 that Q1 was an anomalous quarter. And while you don't provide formal guidance, investors should sort of look at a 20% growth quarter-over-quarter for the rest of the year. Is that still consistent with your messaging?
Hilton Price: Look at the annual and then let's look at the percentage growth, and it will be impressive. I think get out of this quarter-to-quarter thing. It's an annual business.
Deborah Honig: All right. Well, looks good annually. So what are you guys most excited about for the company? Which categories, which regions, which geographies like -- just yes, what makes you the most excited right now?
Giancarlo Beevis: I think obviously, scrubs is an easy one. I think that that's one of them for sure. We're very excited about the opportunity with the hard surface. We're super excited about bedding, the question about the line collective was pertinent. There's a lot of interest around it. They've done a heck of a job on their end advertising and getting it out in their markets, and we think we can really capitalize on that here. And then I think the new categories that we haven't announced yet once we announced the market will be really excited about probably things I never thought we'd be in, but we've found a niche, and we believe it will resonate. So at least for me, that's the exciting part.
Deborah Honig: Great. Well, I don't see any other questions. If anyone has any additional questions, feel free to reach out. I'll get those answered. If anyone wants a one-on-one call, we can arrange that as well. Thanks to the audience for your participation and your questions, and thank you to the management team for your time, and congratulations on a great year so far. I mean beyond the growth that you're showing you really changed the capitalization of the company. You've brought in some phenomenal shareholders as supporters. I think it's been a transformative year for iFabric in a number of different ways. So you should be really proud.
Hilton Price: Our aim is not to disappoint anyone.
Deborah Honig: Definitely don't disappoint me, Hilton. I'm watching.
Hilton Price: Okay. We are going to try our best to disappoint no one.
Deborah Honig: Okay. Thank you. Have a good afternoon.