Scott Fortune: That’s perfect. I appreciate Lawrence for the color. I will — thanks for all the answers to the questions.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Thierry Wuilloud of Water Tower Research.
Thierry Wuilloud: Hey. Good afternoon, Lawrence, good afternoon, Kevin. Thanks for taking the call. Scott has covered a lot of ground. But you mentioned with the business services, you mentioned home goods and electronics, and does that mean you have a second client or a second relationship there already? You’ve announced one so far.
Lawrence Tan: Yes. We are already selling like computer monitors with our partners, online as of today as we’re speaking.
Kevin Vassily: Okay. So, we haven’t announced the name as of yet. So, when we get to a position where we’re comfortable and they’re comfortable we’ll do that. But as of this point we haven’t announced who they are yet.
Thierry Wuilloud: Okay. Well, it’s great to see a second partnership there. Any comments on the pipeline in terms of where do you expect to end at the end of the first quarter in terms of how many partners you might be working with?
Lawrence Tan: The members of a partnership will not be many, even going forward will not be many. But we are partnering with companies who are at $1 billion revenue scale. So, while the number of partners are limited, the sales are probably not going to be limited. So, the key here is, like, how much revenue we’ll get and what we’ll be through that partnership? Are we going to be the top 3 or the best sellers in that category? I think that’s more like of my goals.
Thierry Wuilloud: Great. That’s helpful. Maybe one more question. You mentioned in the prepared remarks and I think on the press release that you are well-positioned to execute on your profitability objectives in fiscal 2024. Any commentary as to what those profitability objectives are? I’m not sure how details you want to give us, but maybe some rough numbers at the gross margin level and maybe whether you think you will be positive at the net income level?
Kevin Vassily: Yes. I’ll take that one. So we don’t give guidance for guidance, partly given the nature of the business, partly given the fact that we’re still a pretty small company. What we’ve said in different forums is that now that we are back to a more normalized environment, we believe that we can — or we should be able to achieve the kind of profitability profile that we had prior to the big inventory build that we have. So, we were clearly EBITDA positive. We were clearly net income positive. We had gross margins in the 42% to 45% range. And that was — the fluctuation there was largely a function of the large product category and some of the multiple channels that we sell through. And that kind of multi-variant mix can create some changes quarter-to-quarter.
But that would be an achievable profile to get to at some point during the fiscal kind of 2024 year. That does not include contribution from the services business. And we think that that is likely a reasonably accretive business for us going forward. So, we don’t want to give a timetable. But, we are pretty comfortable that we are back. We are looking into a next kind of period of time for us where given the normalized supply chain that our prior levels of gross margin and EBITDA and net income margin should be achievable. So hopefully that’s helpful.
Thierry Wuilloud: Yes. That’s very helpful. Thank you very much. Maybe one last question. In terms of the business services, can you give us a sense as to that will show up as a — how are you compensated for that service that you provide? How you are going to be — is it going to be at the revenue level and you will buy and sell the product, or are you just going to get a net margin? How should we think of that?
Lawrence Tan: At this moment, different — since these partners are pretty sizable ones, I won’t expect every single one to follow the same exact like templates. But so far the ones that we set up have — is running in the term where we cut purchase order to the partners. So, it will be like a buy-sell relationship at the very basic. So, it’s not a commission model, not for…
Thierry Wuilloud: And there won’t really be like inventory risk or anything of that nature for you?
Lawrence Tan: What we set up so far is that we help providing services on logistics and warehousing while the inventory ownership doesn’t transfer, unless we have a sales from our like subsequential channels. So there will — the risk of inventory really end of the day falls on the partners, and not us.
Thierry Wuilloud: Okay, great. Hey, thanks to take my questions and looking forward to a good 2024.
Lawrence Tan: Thank you.
Operator: Thank you. I would now like to turn the conference back to Kevin Vassily for closing remarks. Sir?
Kevin Vassily: Yes. Thank you, operator. Thanks everyone for joining for our fiscal Q4 and year-end earnings call. We look forward to speaking with you again next quarter. Have a good day.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.