Transcript

00:00:01 - [AMITY_SENDAMA]
Do we know, like, what how this transaction is actually happening?

00:00:05 - [ROBERT_HATFIELD]
Like

00:00:06 - [AMITY_SENDAMA]
so yesterday, when I asked the question about accounts receivable and thinking that we would be like, company seats is doing business on October 31. Mhmm. Are we not, like, merging that?

00:00:22 - [SCOTT_WARNER]
We are merging entities. So that's where I'm getting kinda confused is the workflow doesn't make sense right now, and I can't figure out who's driving which pieces.

00:00:37 - [AMITY_SENDAMA]
I'm guessing you need clarification because, I mean, did you know I mean, I thought Patrick and Casey both looked at me like I was crazy when I assumed that the accounts receivable. We would like, I I thought we're closing the company. The balance the transfers of, like, we merged this into us effective that date. Mhmm. Then we own accounts receivable collection. Like, there should be no more transactions. There should be a closing balance sheet. That closing balance sheet would then be looked at by CLA or whatever. And I'm like, am I missing something? Because I literally thought they looked at me like I was a crazy person. And I was like, okay. Like, maybe there's a different discussion here.

00:01:18 - [SCOTT_WARNER]
No. It's funny because Shawn and I were both like, what is going on? Because we both thought like, our whole plan has been that kinda like what you just said is at some point, that's a box that never, you know, we just Yeah. Hold and then everything goes into SIP here or whatever.

00:01:33 - [AMITY_SENDAMA]
Collecting AR for sixty days. And I'm like, who? Why? And I called Mike after. I like, my like, what do you think's happening to the AR? Like, am I missing something? Like

00:01:43 - [SCOTT_WARNER]
No. Shawn actually he was, like, kinda he so we had the same conversation. Are we nuts? Like because we were like, we don't understand why we would wanna keep two systems running that long. And then So yeah. Casey seemed to have a a very different view, and I was kinda

00:02:02 - [AMITY_SENDAMA]
Right. And that's why I'm like, what am I missing? And, like and I just I don't I don't know. Like, I guess I'm just confused. Like, what what is the transaction? Like, how are we actually and I don't think we know exactly how from, like, a legal entity standpoint. But, like

00:02:16 - [SCOTT_WARNER]
Process is the same.

00:02:17 - [AMITY_SENDAMA]
Process should be the same. Right? Like, closing balance sheet, activities are done, transferring over as of I mean, October 31 is the date. Right? Like, it's not 1231 that it's coming to us. Like, it's not like the business is stopping on. I mean, it wouldn't matter because their exclusive balance sheet

00:02:36 - [SCOTT_WARNER]
date is Yeah. I'm saying it doesn't really didn't

00:02:37 - [AMITY_SENDAMA]
really matter.

00:02:38 - [SCOTT_WARNER]
Think I think, technically, the date will probably be 1231 just for that's normally when we do it. No?

00:02:45 - [AMITY_SENDAMA]
Well, I guess I don't

00:02:46 - [SCOTT_WARNER]
because we we gotta transfer the tax losses and all that, so that'll have to be done.

00:02:50 - [MICHAEL_CARLSON]
Yeah. I was gonna say, if we don't do that, they are essentially separate for this.

00:02:53 - [AMITY_SENDAMA]
No. Yeah. For the year. So but if everything happens within the year, then all of that data comes over. We are then you know, the audited entity becomes, you know, Festool or holding, you know, holdings, whatever. And then from a tax standpoint and all of that, it just will flow through.

00:03:14 - [SCOTT_WARNER]
Correct. It should be R and D at that point.

00:03:17 - [AMITY_SENDAMA]
Records. And so I don't know. I just yeah. So the the whole point of the conversation is, like, how long do we need this contract? And, like, what are our, like, what are our obligations gonna be within NetSuite? And so I don't believe that there should be any accounts receivable collection. So they were kinda saying, oh, we're gonna be collecting accounts receivable for, like, sixty days. And then, you know, we've gotta do the audits. We gotta do the taxes. We gotta do all this stuff. Mhmm. And I'm like, I don't

00:03:46 - [SCOTT_WARNER]
What? I I was really stuck on the sixty days thing. I didn't understand what would be coming in for them.

00:03:51 - [AMITY_SENDAMA]
They're collecting the cash, they think. And then there's thirty day payment terms, but then, you know, they don't think they're gonna collect it all in thirty days. So then that's why they said sixty days to collect the cash.

00:04:02 - [MICHAEL_CARLSON]
So if they stop selling 10.31, they're gonna still be collecting up and through 1231, which is fine fine. But I think we are doing the collecting

00:04:11 - [SCOTT_WARNER]
that we would do. Yeah. It it becomes our problem at that point.

00:04:13 - [AMITY_SENDAMA]
Collect money in our system. Like, there's no use for the system other than supporting the closing balance sheet and then, like, you know, audit procedures. And then, like, when we're filing our taxes, are we gonna need information? If we bring everything over, we don't aren't gonna need information from Yeah.

00:04:38 - [MICHAEL_CARLSON]
So if and that's where if we bring it away the way I think we need to do it, we wouldn't need NetSuite because we'd have a point in time. This is everything. We'd have the underlying subledger detail accounts balances. And, essentially, for us, we would do basically a consolidation. Could have it off the books running total for Shaper receivables. Every time we collect, we just track

00:05:02 - [SCOTT_WARNER]
or whatever. Yeah.

00:05:03 - [MICHAEL_CARLSON]
And then we do a consolidation before we submit. So we have kind of like a merge, or we can create within SAP, like, a Shapr ending. We just do, a load or, like, a, like, a twelve thirty one post to take that total and bring it into SAP so that it maps within TTS. But if there's no more transactions, we don't need NetSuite

00:05:25 - [SCOTT_WARNER]
after they I don't think we did, but they were saying they want I mean, Casey still thinks a year. And I'm like

00:05:31 - [AMITY_SENDAMA]
Well, yeah. I mean, he he was kind of, like, dying on the nine month hell. You know? Like, he's like, but then I don't really why why are we splitting hairs over 45,000 or something? And I'm like, well, I knew this is more like a 150,000, and, you know, we only need it for about half that time. So I still think to me, it's a big dollar amount, like, for a business that's not very profitable. Not profitable. Yeah. Yeah. Not not very not profitable at all.

00:05:56 - [MICHAEL_CARLSON]
The only thing that I can think of being a reason to keep it is if our online platforms are all synced to it. So, like, if if we don't have a game plan for what to do with the ecommerce and if it's all integrated and set up and we don't have that set up in SAP, then I think there's an argument to keep it because we we literally would lose all of that functionality. But then I think we need to decide, like, are we keeping ecommerce? Are we not? And if we were bringing it into SAP, that's a huge undertaking as well.

00:06:27 - [SCOTT_WARNER]
Well, I think that's the real open question right now is how are we gonna sell these products on November 1 because that's still something that gets danced around quite a bit. The news out of HQ isn't great. They're basically not sure they can get there in time. So But

00:06:46 - [AMITY_SENDAMA]
is there any realm where we would still be utilizing a NetSuite?

00:06:54 - [MICHAEL_CARLSON]
What if those are all integrated into NetSuite? Yeah.

00:06:58 - [SCOTT_WARNER]
Then all those

00:06:58 - [MICHAEL_CARLSON]
sales have to they're they're

00:07:00 - [AMITY_SENDAMA]
But

00:07:01 - [SCOTT_WARNER]
I think they're all in Shopify, though. So we could can that I How about Shopify? Aside been out of it for so long, how do you guys reconcile?

00:07:10 - [MICHAEL_CARLSON]
We do, like, a manual, reconciliation every month and we post it. So, like, that's where, like, if those come over, if NetSuite goes away because what it sounded like was it it's automatically integrated. All the revenue and transactions flow through into NetSuite. So don't have anyone posting those. If all 10 of those come into SAP, that would become a huge manual undertaking for our team to get those. Like, Shopify itself doesn't change. Yeah. It's more so how do we transact or account for the transactions on a day to day or month to month basis if that link into NetSuite's broken.

00:07:46 - [SCOTT_WARNER]
So you think so I've not dug into it. So as you understand it, their Shopify is connected to their NetSuite.

00:07:53 - [MICHAEL_CARLSON]
That's my thought. Shawn said, yeah. And that's why it's like they they want to keep it because it's all set up. And the same will be for their SaaS.

00:08:04 - [SCOTT_WARNER]
They have subscriptions or whatever.

00:08:05 - [MICHAEL_CARLSON]
Yep. It's a manual entry, but

00:08:08 - [SCOTT_WARNER]
it's

00:08:08 - [MICHAEL_CARLSON]
the underlying communication is still set up. So that's where, from an IT perspective, I think that's gonna be probably a big project to make sure that we have all the integrations between those set up. But other than that, like, I don't know what it what would flow through NetSuite other than those two things. And if it's just those two things, I'd say don't even keep NetSuite because a 150 k for no transactions to my mind is I'd rather take that 90 k and get a head count and have them do manual postings. Yeah. Personally, but

00:08:49 - [AMITY_SENDAMA]
So but, I mean, the to this question of e com like, this is something that keeps coming up is how are we but I guess I thought that the going assumption was that we don't know, but we will not be using NetSuite.

00:09:01 - [SCOTT_WARNER]
Well, that's what Shawn and I say is that we won't be

00:09:03 - [AMITY_SENDAMA]
using NetSuite. Matt has said too? Like, we're not operating in NetSuite?

00:09:08 - [SCOTT_WARNER]
Yeah. But Matt makes decisions

00:09:10 - [AMITY_SENDAMA]
He doesn't.

00:09:10 - [SCOTT_WARNER]
On a flip. So I I always be careful.

00:09:12 - [AMITY_SENDAMA]
What it means. Yeah.

00:09:14 - [ROBERT_HATFIELD]
He doesn't

00:09:15 - [AMITY_SENDAMA]
have the implications. But

00:09:17 - [SCOTT_WARNER]
But Shawn and I have basically said, if Shaper's not an entity anymore, we don't wanna use their their ERP system anymore. You know, we'd we'd need to come up with ways. So we've been trying to find ways to bring those things into our systems as quick as we can. The subscriptions is the weird one. We don't really have experience with that yet. But

00:09:35 - [AMITY_SENDAMA]
But so I guess how who do we align this with at HQ? Because this this matters because HQ is also using the system. So if we are saying we're gonna cut the contract off, but there's no plan for ecommerce but can't HQ already do ecommerce?

00:09:52 - [SCOTT_WARNER]
Like HQ can. Yes.

00:09:53 - [AMITY_SENDAMA]
So they don't need it. It's us.

00:09:55 - [SCOTT_WARNER]
Right. And I have a document. Let me find it real quick.

00:10:01 - [AMITY_SENDAMA]
Did you reach out to Jessica? That was just on the the IT side.

00:10:06 - [SCOTT_WARNER]
Correct.

00:10:07 - [AMITY_SENDAMA]
Is it Sasha Leibold? Who is in part of this from an HQ standpoint to say, are you okay if we don't have NetSuite access after?

00:10:18 - [SCOTT_WARNER]
So I've not talked to Sasha. What is he what's his current role?

00:10:24 - [AMITY_SENDAMA]
He's a go to market guy. I think he's the one, like, kind of in charge of all this from a no. I mean, not from a systems standpoint, but from a strategy.

00:10:40 - [SCOTT_WARNER]
Give me a second. I gotta find the Adaptex folder report.

00:10:46 - [AMITY_SENDAMA]
Super annoying.

00:10:47 - [SCOTT_WARNER]
I did test this project.

00:10:51 - [MICHAEL_CARLSON]
How much flows through I guess, like, how much is gonna flow through NetSuite in the two month period between when the their renewal period ends and the

00:11:01 - [AMITY_SENDAMA]
the I mean, hopefully a lot because they're trying sell all the inventory. So, I mean, they're not open to not having NetSuite at all. I mean, I'm I'm okay with that. Like, I I think we're we're debating six months or just let them go of the year is kind

00:11:16 - [MICHAEL_CARLSON]
of what we're But it gets like

00:11:18 - [AMITY_SENDAMA]
okay. Yeah. I mean and I'm okay with that. I don't think I mean, I think this project's gonna be a nightmare enough that we don't wanna complicate our lives even more to not have the system after at the October. But

00:11:32 - [SCOTT_WARNER]
We have it assigned to Sasha. Casey and I do. Can we turn that on?

00:11:38 - [AMITY_SENDAMA]
Do we need it? I guess this is where I I don't I mean, I don't wanna make this decision and then somebody come back and be like, wait. What are you talking about?

00:11:47 - [MICHAEL_CARLSON]
I guess what's the legal implications if we just say the company is closed? Like will it come after us?

00:11:54 - [SCOTT_WARNER]
Or is it You can be held liable for the whole contract. It's actually Shawn and I have been we have a meeting today at 1230 with them.

00:12:01 - [MICHAEL_CARLSON]
The company doesn't exist.

00:12:02 - [AMITY_SENDAMA]
Okay. Yeah. We, like, have the agreement. I actually thought the same thing. I was like, well, I feel like I mean, how can they hold us to this contract? But they can. So you guys have a meeting with them today?

00:12:12 - [SCOTT_WARNER]
Yeah.

00:12:12 - [AMITY_SENDAMA]
Oh, already. Yeah. So are we gonna just at least start the the six month discussion even if we're not as

00:12:18 - [SCOTT_WARNER]
low as we can. And get

00:12:20 - [AMITY_SENDAMA]
them to sounds like they're trying to close this by the end of the quarter. And so that's why they're giving us all this pressure.

00:12:25 - [SCOTT_WARNER]
Well, that's how high pressure sales is worth.

00:12:27 - [AMITY_SENDAMA]
Yeah. But, I mean, they have until the August. I feel like we're negotiating this plenty early enough. So

00:12:35 - [SCOTT_WARNER]
Yeah. It's frustrating

00:12:36 - [ROBERT_HATFIELD]
to me.

00:12:36 - [AMITY_SENDAMA]
And I mean, maybe just tell them, like, hey. Like, there's a lot of internal stakeholders here. Like I mean, you could play it also that yeah. I mean, that we are willing to not renew at all and just find a solution in the funds. I mean

00:12:53 - [SCOTT_WARNER]
Shawn and I talked about it is we're gonna kinda play a game here and just hope we don't get too far ahead of ourselves. Hopefully, they don't. You know?

00:13:00 - [AMITY_SENDAMA]
I'm like, okay. That's fine.

00:13:02 - [SCOTT_WARNER]
Guys Peace out. Hang up. Oh, shit. So this is the file that I created to kinda capture everything and you can see, like, over half of it's in red. But so this is something Casey and I put on here because we need to know, you know, what's going on. So, obviously, we're gonna sell product to our existing dealers, but what does ecommerce look like? And we just no one will give us an answer as far as what the plan is. I need to probably hear from Robert about brand equity and what his plan is there because selling online is not something we've done. And if we just need to understand the implications behind that.

00:13:49 - [AMITY_SENDAMA]
I think I had notes somewhere in my hand right now.

00:13:54 - [MICHAEL_CARLSON]
We would just continue their current ecommerce platform and product portfolio, though? Or would we expand it to other Festool?

00:14:04 - [SCOTT_WARNER]
We can't expand it to other other Festool unless we change something with Branded Recrender Equity. So

00:14:09 - [MICHAEL_CARLSON]
But then, I guess, that's where you need

00:14:13 - [SCOTT_WARNER]
to confirm with Robert because, technically, all the Shaper product would fall under brand equity. It should. And that's I that's what I haven't heard is what's the plan there because

00:14:24 - [AMITY_SENDAMA]
For what?

00:14:25 - [SCOTT_WARNER]
For brand equity and and what happens? Are we gonna sell sell I always wanna say origins shapers online, or we're gonna not do it? Most of their sales are online. So already. Well, I know, but brand equity hasn't been addressed for that, and we have to. So what do we have to address?

00:14:48 - [AMITY_SENDAMA]
Like, what part of it?

00:14:50 - [SCOTT_WARNER]
So in the past, the reason we haven't sold online is because then we're competing with our dealers, and that's caused an issue where they say we're stealing sales from them and then What

00:15:00 - [AMITY_SENDAMA]
What is it? We're not selling for a lower price.

00:15:02 - [SCOTT_WARNER]
It doesn't per se, but it's gonna cause a ruckus with the dealers. I just need Robert to understand it and know what he's dealing with.

00:15:08 - [AMITY_SENDAMA]
This is not a real brand equity issue because we can control

00:15:11 - [SCOTT_WARNER]
As long as we control pricing across the board. Yes.

00:15:14 - [AMITY_SENDAMA]
We would. I mean, it was Amazon that we had the issue with. Right. Right. Okay. So, I mean, there is clear, yes, we are doing ecommerce. But the thought is that it shifts from being, like, what, like, sixty forty to, like, 20 of our business.

00:15:31 - [SCOTT_WARNER]
And we need to make sure that it's only Shapers that are well, actually, I'm gonna leave that all to Robert. I don't care as long as he addresses it. So, yeah, direction is to continue ecommerce customer ordering rather than shut it down. Obviously, we need that. Yeah.

00:15:48 - [AMITY_SENDAMA]
But we just don't

00:15:49 - [ROBERT_HATFIELD]
know how.

00:15:49 - [SCOTT_WARNER]
We don't know how yet. So

00:15:51 - [AMITY_SENDAMA]
But who would make the call, like, of to confirm that we won't be selling through NetSuite? Is that is that Robert?

00:16:06 - [SCOTT_WARNER]
I think it's gonna be Robert, Shawn, somebody from HQ, which might be Stefan there there. I don't know who it will be. So Angela and I had her one on one this morning, and they're now saying that they don't think they can launch any more ecommerce stuff in North America because we got rid of Matt and Ron John. And those were the two guys who were supporting ecommerce. This is new as of this morning. So they're saying we have to bring on an SAP resource because they don't have capacity to do it. And I'm like, we'll discuss this later. So but that can't be true for this project. So

00:16:46 - [AMITY_SENDAMA]
Is Robert available? Do we wanna ask Robert what his view is on whether we're gonna solve your med speed?

00:16:52 - [SCOTT_WARNER]
Let's see. Is he on vacation, or is anybody new? So

00:16:58 - [MICHAEL_CARLSON]
why would it be sold through NetSuite? Is that just how it's

00:17:01 - [AMITY_SENDAMA]
Well, like, current the current website? Like, if we can't get our own website up, it would be, like, ecommerce. Like, we I guess that's what we're saying. Right? We would still utilize their website, and then it would

00:17:11 - [MICHAEL_CARLSON]
all synced.

00:17:13 - [AMITY_SENDAMA]
Yeah.

00:17:13 - [MICHAEL_CARLSON]
Suite. Okay. Yeah.

00:17:14 - [AMITY_SENDAMA]
I mean, I don't what I understood is that we are not doing that. But to your point, I don't think we have a solution. We I know we don't have a solution of, like, how we're going to sell it ourselves. So I don't wanna get ahead of ourselves and say we're for sure not using existing platform, and then we shut everything down, and then we can't sell. So I guess it would want some people to agree that we don't intend to use Mhmm. NetSuite. And to your point, it is is not an issue with HQ because they have the ability to already stand up their own e commerce department.

00:17:52 - [SCOTT_WARNER]
HQ, we don't in North America, they get packed.

00:17:55 - [AMITY_SENDAMA]
Okay. So we don't need to confirm anything with them about NetSuite?

00:17:59 - [SCOTT_WARNER]
No. They offer all their tools online already. So

00:18:05 - [AMITY_SENDAMA]
I did talk with Alex from CLA yesterday just to ask her, like, how would you foresee this, like, going and similar. I mean, she's expecting that they have a closing balance sheet as of 1031, that they're gonna do the audit procedures. They could do them, you know, in as part of their interim testing, most likely. She didn't really see the need for the system, but, you know, after February, I'm going to be, like, safest. You know, you could she said, like, do that if you want, but I don't think that's really necessary. But I could be comfortable if we needed to do seven months, but, I mean, I just I don't think we need it past

00:18:51 - [SCOTT_WARNER]
It's it's an incredibly expensive endeavor to keep it for the whole time. So

00:18:54 - [AMITY_SENDAMA]
And, I mean, to get the data out of it so that's the other thing we gotta do. We've got we've got to download all the data.

00:18:59 - [SCOTT_WARNER]
They charge a fee for we found out.

00:19:02 - [AMITY_SENDAMA]
They do. So did you guys get that he's in that agreement? Patrick did?

00:19:05 - [SCOTT_WARNER]
Yeah. He sent it to Shawn and Shawn I think I got it too. Shawn was reviewing it for me. Charge a fee to export your own data. Yeah. How much? We don't know yet. That's part of what the meeting is today. So

00:19:16 - [MICHAEL_CARLSON]
how do they get reports? Because I feel

00:19:18 - [SCOTT_WARNER]
like So you can run your own data experts, but or so, normally, as part of a termination agreement, you can get that Oh,

00:19:25 - [MICHAEL_CARLSON]
you get an archive.

00:19:26 - [SCOTT_WARNER]
We'll hand you your archive. And they said, sure, for a fee. And then we're like, okay. Great.

00:19:30 - [AMITY_SENDAMA]
And it doesn't say what the fee is? That's crazy. See, if they negotiate the fee on the when you're terminating the agreement, that's a

00:19:39 - [SCOTT_WARNER]
He has eight minutes. You want me to bring him in, Robert?

00:19:41 - [AMITY_SENDAMA]
Let's just like, I mean, I just want a, like, quick view on his thought on this.

00:19:58 - [SCOTT_WARNER]
Mean, this

00:19:58 - [AMITY_SENDAMA]
doesn't have anything to do with ecommerce, though. Right?

00:20:01 - [SCOTT_WARNER]
I don't know. I don't think my oh, it says headset. Hold on.

00:20:06 - [AMITY_SENDAMA]
Do you need a speaker?

00:20:07 - [SCOTT_WARNER]
We'll just do this. Alright. Can you hear me now?

00:20:11 - [ROBERT_HATFIELD]
Yep.

00:20:12 - [SCOTT_WARNER]
Okay. Sorry. Alright. Yeah. Mike and Amity in here too. So we're just we're talking about so NetSuite's due for renewal this year. It's gonna be a 150 k. We don't wanna pay that. So we're trying to figure out how long do we need to negotiate a renewal for. So we started talking about the sales process and whether or not the back end of NetSuite's necessary to maintain ecommerce availability. How much have you been involved, or what do you know about the sales plan for the Shapr products?

00:20:43 - [ROBERT_HATFIELD]
So it's sounds like this is an a general and open topic of are we selling direct online? And I think everybody wants to say yes, but when I ask the question of how it is, we don't know.

00:20:58 - [AMITY_SENDAMA]
That's that's That's exactly

00:21:00 - [SCOTT_WARNER]
We just got there together. Yeah.

00:21:01 - [AMITY_SENDAMA]
So I know I know that's exactly the I mean, you know, I I think it's at least Matt has said, you know, for sure, we're selling online, but, yeah, we don't know how it's happening. Do you see a world where we would continue to sell on the

00:21:15 - [SCOTT_WARNER]
current

00:21:16 - [AMITY_SENDAMA]
website, like, with the back end of NetSuite to keep this up and running? Like, is it are we at a risk if we terminate this contract at the February? Because I I guess the running assumption that we talked about is that we will not be utilizing the system at all. But if we don't have a solution for ecommerce and we're, you know, we're kinda kinda, like, trying to really push this, like, us to get this agreement signed by the March. So we're kind of we're just, you know, trying to figure out. We don't wanna put ourselves in a bad situation, but also this agreement like, we don't really think that we need it.

00:21:58 - [ROBERT_HATFIELD]
I mean so I'm working on this sales plan for Shaper, and I'm going I'm looking at SKU by SKU. And the reality is is I don't some of these a lot of these SKUs, I don't see why a dealer would would stock or sell some of these SKUs. Like, asking a dealer to carry 25 different bits for the for the unit, it probably isn't doesn't make sense when the run rates are roughly 250 to 300 per SKU per year.

00:22:45 - [AMITY_SENDAMA]
Right. So those would, like, be purely, like, Ecolumn SKUs?

00:22:51 - [ROBERT_HATFIELD]
Correct. So for me, if we don't have a solution, then my natural reaction would be to tell the tell our ecommerce dealers that, hey. We need to go full we need you to go full in on this, and we we would drop ship these. That that's where my head goes because I don't think we will have a ecommerce solution. Even the NetSuite solution is would still be requiring somebody to take the order from NetSuite and put it into SAP.

00:23:34 - [AMITY_SENDAMA]
Right.

00:23:35 - [SCOTT_WARNER]
Yeah. Or, you know, we manually import shop their Shopify site or something, but even that's I mean, no matter what, we're talking manual.

00:23:42 - [AMITY_SENDAMA]
Mhmm. So we still wouldn't use the back end of NetSuite.

00:23:45 - [SCOTT_WARNER]
We would I don't see a reason why we ever would.

00:23:48 - [AMITY_SENDAMA]
Would do it somehow. Even if we are using their website, we would

00:23:52 - [SCOTT_WARNER]
do It's just a Shopify back end. Their website is. So we would just Yeah.

00:23:56 - [MICHAEL_CARLSON]
That's why Nathan right now is manually inputting the orders into SAP in order to get shipments out. So you'd have to send you or someone would have to basically do the same thing for

00:24:07 - [AMITY_SENDAMA]
for all But is there even again, in that scenario, there wouldn't be any situation where we would still want need to use NetSuite. That still wouldn't make sense. It would just complicate with another system.

00:24:15 - [SCOTT_WARNER]
That's what I think.

00:24:16 - [AMITY_SENDAMA]
Yeah. Okay.

00:24:18 - [ROBERT_HATFIELD]
I I would that's where my head goes is to use the Shopify use the Shopify site and figure out how to even if we don't integrate it, I mean, I can have Nathan hand key that.

00:24:37 - [MICHAEL_CARLSON]
Do you know how much time he's spending currently on our current Shopify environment?

00:24:43 - [ROBERT_HATFIELD]
He has it down to a science. So two minutes per order if the customer data is in there. If the customer data isn't in there and he hasn't created it, maybe it's three to four minutes.

00:24:57 - [MICHAEL_CARLSON]
Okay.

00:25:01 - [ROBERT_HATFIELD]
So I've I've got some questions into Philip right now about the the SKU list and asking him to give me a breakdown of what is sold through the dealer network, what is sold direct, what is sold to ecom to to help because I'm one of the things I'm looking at on the excuse is going, okay. Some of them have to be ecom only because it just like, they sell a scraper. I can't it's 25. I can't expect a dealer to stock that scraper.

00:25:33 - [AMITY_SENDAMA]
Yeah. 100. Yeah.

00:25:36 - [ROBERT_HATFIELD]
But they sell 881 of them a year.

00:25:39 - [AMITY_SENDAMA]
Right. But a dealer, I gotta you know, again, at a dealer level, like, that's still yeah. Okay. So in there's no reason that you're aware of that you would need NetSuite to be functional after February 2027. Is that a fair statement?

00:25:59 - [ROBERT_HATFIELD]
That would be fair. K.

00:26:02 - [AMITY_SENDAMA]
Perfect. Thank you.

00:26:03 - [SCOTT_WARNER]
That helps us.

00:26:06 - [AMITY_SENDAMA]
Thanks, man.

00:26:07 - [ROBERT_HATFIELD]
I mean, it it may require us to do do some more manual stuff in the Shopify account. And I'll just warn everyone here. I'm getting the feeling from marketing that they wanna exit Shopify the Shopify Plus account we have, and I told them, hey, guys. This isn't your decision because recon does 3,000,000 on Shopify Plus.

00:26:30 - [AMITY_SENDAMA]
What what do you mean they want to exit?

00:26:33 - [ROBERT_HATFIELD]
It has to do with the fan shop and the other sites they run. And I think it is simply because it gets rebuilt into marketing, so they see it as an expense on the marketing budget.

00:26:48 - [SCOTT_WARNER]
Yeah. She's planning to move Recon into the new platform based on a meeting I had with her today.

00:26:57 - [ROBERT_HATFIELD]
They they knew it think that, but they also have no plan on how it's going to work.

00:27:02 - [SCOTT_WARNER]
Yeah. And HQ pushed back and said they don't have the capacity. So

00:27:06 - [ROBERT_HATFIELD]
Yeah. And I'm I'm not we can't lose a 3,000,000 revenue source on trial and error.

00:27:12 - [AMITY_SENDAMA]
Yeah. Yep. Okay. Lovely. Thank you.

00:27:17 - [SCOTT_WARNER]
Alright. Enjoy your next meeting.

00:27:18 - [ROBERT_HATFIELD]
Perfect. Amity, that's a preview of our call this afternoon, just so you know.

00:27:23 - [AMITY_SENDAMA]
Okay. I'm looking forward to this.

00:27:25 - [ROBERT_HATFIELD]
Everything. Cool. Back on the list.

00:27:27 - [SCOTT_WARNER]
We'll see. Thank you. I

00:27:28 - [AMITY_SENDAMA]
I don't know. I mean, I don't yeah. I I think that so, Mike, you are you would be comfortable if we didn't have the system as of, like, pretty quickly. Right? But for sure, as of February, from any of our financial issues, you don't see the need to continue to have the system.

00:27:50 - [MICHAEL_CARLSON]
Yeah. No.

00:27:50 - [SCOTT_WARNER]
I don't.

00:27:51 - [MICHAEL_CARLSON]
I mean, I just I I I don't know what would be flowing through there because they're not doing anything. Yeah. So the only benefit would be, like, if we kept the the account like, if if we have to have six months, then we could apply the cash to those accounts and customers and have kind of a separate that way, we get, like, an export of their trial balance, and it could help us reconcile each month for, like, our closing entry instead of doing it outside of SAP. That might be helpful. Okay. But

00:28:20 - [AMITY_SENDAMA]
But, I mean, I think at a minimum, we would have it through the February. Like that's

00:28:24 - [MICHAEL_CARLSON]
Yeah.

00:28:24 - [SCOTT_WARNER]
Yeah. I can't because it's August.

00:28:26 - [MICHAEL_CARLSON]
So Yeah.

00:28:27 - [AMITY_SENDAMA]
Oh, that's probably not. Okay. So I guess, like, why don't you guys have your conversation, see how it goes? Then are you having to do an NDA or anything, or you just gonna trust this guy?

00:28:39 - [SCOTT_WARNER]
I mean, I can I I was debating on whether it's worth it because I mean, it'd be really bad form of him to go tell anybody anyways, but I guess I don't know? What do you think should safer than sorry?

00:28:54 - [AMITY_SENDAMA]
I mean, if you looked at this guy out, you know, it's, like, No. Let's see.

00:29:09 - [SCOTT_WARNER]
I'm a closed Outlook. One second.

00:29:10 - [AMITY_SENDAMA]
So Just ask him on the call to, like you know, he

00:29:13 - [MICHAEL_CARLSON]
was Well,

00:29:14 - [SCOTT_WARNER]
I I plan to tell him, like, this needs to stay between the people on this call. I mean, I I can't I don't think he'd make a LinkedIn post saying, japer's shutting down or you know, I I can't think of who he'd tell that would hurt. It is Kevin Brill.

00:29:33 - [AMITY_SENDAMA]
Kevin, b r I l l? Yeah. Elvira, NSE, El Dorado, California. It doesn't have plus connections. Been there for four years. Was it just manager for ADP For a year. I don't know. I mean, if it's not weird, I mean, I have a feeling like if if, like, Karen found out we were having conversation, she might kill us.

00:30:12 - [SCOTT_WARNER]
Yeah. I'll align with him then real quick because it's at 1230. So I'll just say I'll just email him privately.

00:30:19 - [AMITY_SENDAMA]
Talk. I mean, you could even start the call or, you know, I don't know. Just say we send it I don't know. Just say, hey. We can chat about the beginning of the call and I don't know how everyone

00:30:27 - [SCOTT_WARNER]
can know. Yeah. I'll just email him. He's West Coast, so I'll just

00:30:31 - [AMITY_SENDAMA]
But then it goes that he may need to have a conversation internally. Right? Yeah. So don't know how that works.

00:30:37 - [SCOTT_WARNER]
So that's I mean, at some point, you just have to trust the companies to do what's best. Yeah. But maybe

00:30:43 - [AMITY_SENDAMA]
I'll make them feel like it's

00:30:44 - [SCOTT_WARNER]
here. I'm trying to figure out what the best way to go is,

00:30:48 - [ROBERT_HATFIELD]
but alright.

00:30:49 - [SCOTT_WARNER]
I don't know.

00:30:50 - [AMITY_SENDAMA]
I mean, you you decide.

00:30:51 - [SCOTT_WARNER]
Yeah. Well, I mean, there's probably confidentiality clauses in our existing agreement, so I probably can just lean on that.

00:30:57 - [AMITY_SENDAMA]
So get that. Yeah. Just make sure there's confidentiality there. Sure there is.

00:31:01 - [MICHAEL_CARLSON]
Okay. Yeah.

00:31:04 - [AMITY_SENDAMA]
Will do. Maybe just confirm that there's Yeah. Okay. Okay. And then once you have that call, we'll talk. And then I think at some point, I we do need to circle back with Casey, and I'll probably pull you into that too so we can all

00:31:15 - [SCOTT_WARNER]
Yeah. It'd be nice to have us all in the room because Right. He's gonna fight it. He he has to But

00:31:21 - [MICHAEL_CARLSON]
Who's doing the valuation?

00:31:23 - [AMITY_SENDAMA]
I think it's not been discussed at all.

00:31:27 - [SCOTT_WARNER]
Evaluation of Schaffer? Mhmm. It was discussed that Germany's tax person would

00:31:33 - [AMITY_SENDAMA]
Oh, was it?

00:31:33 - [SCOTT_WARNER]
Start doing that.

00:31:34 - [AMITY_SENDAMA]
Oh, okay.

00:31:35 - [SCOTT_WARNER]
I can't think of her name, though. Laura Laura something. So,

00:31:39 - [MICHAEL_CARLSON]
like, I don't I don't know if COA needs to do any audit then. They would just wanna audit the evaluation. So if it's if it's an internal evaluation, I'd probably not have them do any audit testing on Shapr and then just have them test the valuation that our team's doing. It'll probably be less of a testing exercise.

00:32:00 - [SCOTT_WARNER]
That wouldn't cause issues with your audit at all? No. Okay.

00:32:04 - [MICHAEL_CARLSON]
Yeah. I mean, it's just a different lens that they they would look at it. They may have to get evaluation expert in, so it might be, like, a specialty. But it depends on how CLA tests it or, like, what approach they come with. Okay. If if Alex didn't mention it, then that's probably

00:32:24 - [AMITY_SENDAMA]
She just mentioned closing the I think it was the balance sheet.

00:32:27 - [SCOTT_WARNER]
Didn't you say I think I gotta go back and look at something like the end of this week or something was when that was due.

00:32:33 - [MICHAEL_CARLSON]
I get the call with them on Thursday, tomorrow, my

00:32:36 - [SCOTT_WARNER]
The her initial plan on the valuation plan or something like that? Okay. I didn't feel it. Right.

00:32:42 - [AMITY_SENDAMA]
Part of the

00:32:43 - [SCOTT_WARNER]
Which one we talked about the illegal entity. Yeah. Because David asked the same question because that's kinda key. But we know it's not a burped entity, so Mhmm. We don't need it for that. But okay. Hey, guys. I'll let you know.

00:32:57 - [MICHAEL_CARLSON]
Yeah.