Good afternoon, everyone, and thank you for participating in today's conference call to discuss Clarus Corporation's financial results for the first quarter ended March 31, 2025. Joining us today are Clarus Corporation's Executive Chairman, Warren Kanders, CFO, Mike Yates, President of Black Diamond Equipment, Neil Fiske, and the company's external director of Relations, Matt Berkowitz. Following the remarks, we'll open the call for your questions. Before we go further, I would like to turn the call over to Mr. Berkowitz, as he reads the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Matt, please go ahead. Thank you.

Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements, and we will be making these statements under the safe harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today. These forward-looking statements are subject to potential risks and uncertainties that could cause the actual results of operations or financial condition of Clarus Corporation to differ materially from those expressed or implied by the forward-looking statements. More information on potential factors that could affect the company's operating and financial results is included from time to time in the company's public reports filed with the SEC. I'd like to remind everyone this call will be available for replay starting at 7 PM Eastern Time tonight. A webcast replay will also be available via the link provided in today's press release as well as on the company's website at claruscorp.com. Now I'd like to turn the call over to Clarus' Executive Chairman, Warren Kanders. Good afternoon. And thank you for joining Clarus' earnings call to review our results.

For the first quarter of 2025. I am joined today by our Chief Financial Officer, Mike Yates, who will cover our overall performance, and our adventure segment, as well as Neil Fiske, who will discuss our outdoor segment. During the first quarter, we remained focused on executing against our strategic roadmap and positioning Clarus for profitable growth over the long term. Despite an increasingly challenging consumer backdrop across the global consumer market, Q1 net sales of $60.4 million were above expectations. Our teams have continued to take important steps thus far in 2025 to further strengthen the core and outdoor and invest to scale adventure. Momentum in the outdoor has been driven by our success prioritizing Black Diamond's best and most profitable styles. Overall, Q1 financial results were in line with our plan, which reflected our expectations of softer market conditions compared to the prior year period. We continue to benefit from product simplification and SKU rationalization initiatives, providing our customers with clear product differentiation and segmentation. The Black Diamond organization is healthier than ever, and the hard work of the prior two years to simplify the business and rightsize our inventory has better positioned us to weather turbulent periods. A key bright spot has been the strong feedback we have heard from our partners regarding our revamped apparel line. Supported by a new approach to apparel and enhanced creative direction, we see opportunities to continue to capitalize on Black Diamond's well-defined brand equity. At Adventure, we experienced significant revenue as compared to the prior year period, in large part due to discrete shipments that were either delayed or we elected to forego in 2025. Mike will provide specifics, but we continue to see revenue from one OEM customer get pushed out while they restart production. I am pleased to…

Thanks, Warren. Turning to Slide six, I will review the outdoor segment's Q1 performance and our expectations for the remainder of 2025. Overall, Q1 results exceeded our plan and expectations for the quarter from a top-line perspective, while adjusted EBITDA was in line with our goal. And I'm pleased with the continued progress on our strategic initiatives. Absent tariffs, we would be affirming our 2025 top-line expectations that we shared during our call in early March. But, of course, a lot has changed since then. That's the wild card in all of this. Like every company, we are confronting tremendous uncertainty and the adverse impacts of the new administration's tariff and trade policies. Thankfully, the hard work we've done to simplify, focus, and restructure the business over the last two years puts us in a better position to absorb the shock and come out the other side even stronger. I'll come back to the tariff topic shortly. For the quarter, revenue came in at $44.3 million.

Compared to the prior year, sales were down 5.7%, $2.7 million, due to two factors we had expected. First, the planned decline in our ski business from the exit of bindings and the pullback in snow safety, both of which were part of our simplification and product rationalization process. And second, the shift of IGD revenue to more optimal delivery timing in Q4 of 2024. It's important to note that we made the decision to push out more discontinued merchandise in Q1 as a defensive move against macroeconomic uncertainty and potentially weakened consumer sentiment. By region and channel, North America wholesale was down 7.3%, the biggest driver of which was a 38% decline in the ski category in the region. North America digital D2C was down 7% but delivered more gross profit dollars and channel contribution margin than in the prior year period. Europe wholesale was down a more modest 2.7% while Europe digital D2C was up 10.7%. International distributor markets were down 21.4% due to the more optimal timing shift of deliveries into Q4 of last year. We expect to get some pickup in Q2 with a corresponding decrease in Q3 from the new delivery cadence as we deliver more of the fall assortment a month earlier this year than in the past. Gross margin for the quarter was down 80 basis points to the prior year due to the higher mix and quantity of discontinued merchandise, plus a couple of cost variances which we don't expect to continue in Q2. Operating expenses, excluding restructuring charges, were down 7.3%, reflecting the benefits of our simplified and more focused business and the efforts to rightsize our cost structure over the past few years. Inventories ended the quarter in great shape, down 3.5% to the prior year period at $60.6 million…

Our

exposure would drop proportionally. Our primary goal in all of this is to protect supply, fill orders, and possibly gain share as the market shakes out. The silver lining here is a very real possibility that we come through this in an even stronger competitive position. The fundamentals of our strategy are more important than ever. And I'm confident that we are well-positioned to take on the challenges ahead and grateful for the tremendous effort by our teams to adapt quickly to such an uncertain, rapidly changing environment. With that, let me turn it back to Mike.

Thank you, Neil, and good afternoon, everyone. On today's call, I'll provide some brief comments on the Adventure segment and then we'll conclude with a detailed summary of our Q1 financial results followed by the Q&A session. I'm on Slide seven. Our Q1 Adventure results continue to be affected by near-term pressure on the business. As we have discussed previously, we have made significant investments that we are committed to maintaining to realize the long-term potential that we believe is achievable with our existing adventure brands. We are excited to have added the Rocky Mounts business to our portfolio, which is an ideal complement to Rhino Rack. The brand is fully integrated, and the product line performed well in Q1. Additionally, after a broad corporate realignment last year within Adventure, the new leadership appointment Warren referenced of Trip Wyckoff is a step forward to take the business to the next level. Among his twenty years of industry experience, including time at Thule here in the US, where he grew the brand significantly in the peak periods and was primarily responsible for bringing the market global initiatives and building one-on-one customer relationships. Regarding tariffs, and the effect on the Adventure business, I would note that while nearly all of the Adventure products are sourced from Australia and China, based on full-year 2024 revenue, over 80% of Adventure's revenue is outside the United States. So the tariffs have a limited impact on a relative basis. Nevertheless, we have been evaluating new strategies for our China-sourced products given that our US business is exposed. We are proactively working with our suppliers and are confident in our ability to move significant manufacturing out of China by 2026. I'd like to spend a minute diving into key customer mix shifts that Warren outlined. Within the…

First quarter selling, general and administrative expenses were $26.6 million compared to $28.2 million, or down 6% versus the same year-ago quarter. The decrease was primarily due to lower retail expenses because of our decision to close unprofitable retail stores at Outdoor, as well as lower wage expense, lower marketing costs, and a successful implementation of other expense reduction initiatives to manage costs across both segments. Adjusted EBITDA in the first quarter was a loss of $800,000 or an adjusted EBITDA margin of negative 1.3%. The first quarter 2025 consolidated adjusted EBITDA of $800,000 negative was short of our guide breakeven. Our adjusted EBITDA is adjusted for amortization expense, disposal of internally developed software, restructuring charges, transaction costs, stock compensation expenses, and inventory fair value of purchase accounting. Additionally, beginning the first quarter of 2024, we adjusted legal costs associated with the Section 16 litigation and the consumer product Safety Commission, DOJ matter, known as the CPSC and DOJ matter. These legal costs were $625,000 in the first quarter of 2025. First quarter adjusted EBITDA by segment was a negative $200,000 at Adventure, and $1.7 million positive at Outdoor. Adjusted corporate costs were at $2.3 million in the first quarter of 2025. Next, let me shift to liquidity. At March 31, 2025, cash and cash equivalents were $41.3 million compared to $45.4 million at December 31, 2024. Total debt on March 31, 2025, was $1.9 million. This debt is related to an obligation associated with the Rocky Mounts acquisition, which is payable in December of 2025. We have no other third-party debt outstanding. Free cash flow, defined as net cash provided by operating activities less capital expenditures for the first quarter of 2025, was a use of $3.3 million compared to a use of $18.3 million in the prior year…

Overall, we are actively implementing solutions to

offset the cost impact of tariffs, specifically working with our vendors and negotiating concessions. We have taken price actions where we believe the higher costs are permanent, and we continue to evaluate other countries of origin strategies to source our products. We're taking a long-term view such that these businesses can emerge in an even stronger competitive position once the end from these trade policies subsides. Before turning the call over to the Q&A, I'd like to provide an update on outstanding Section 16 securities litigation matters that the company is pursuing. We continue to proceed in our lawsuit against App Trading LLC and Mr. Harish A. Padilla. In March of this year, the court opined in favor of the defendants, granting summary judgment for the defendants. We are appealing this ruling to the appellate court. We also filed a lawsuit against Caption and its related entities and control persons. Those defendants filed a motion to dismiss on June 27, 2024. We filed opposition papers in July 25 of 2024, and reply papers were filed in August 2024. In March of this year, the court denied the defendant's motion to dismiss and instructed the parties to proceed with the discovery process. On November 7, 2024, the company was notified by the CPSC that they referred the unresolved matter with Black Diamond to the Department of Justice. In January of 2025, the DOJ served the company and Black Diamond grand jury subpoenas requesting various category documents related to Black Diamond's avalanche beacons. As of May 8, 2025, we continue to cooperate with the request from the DOJ. Additionally, on March 13, 2025, the company received a letter from the CPSC requesting various categories of documents and information in connection with a new investigation into whether Black Diamond sold products that were subject to a recall. The company is cooperating with this investigation. Taking a step back, looking at both Adventure and Outdoor, we see Clarus today as well-positioned to drive sustainable profitable growth despite the uncertain macro climate currently caused by the uncertainty from US trade policy. Supported by talented teams globally and a strong balance sheet, we look forward to more incremental progress advancing our turnaround in 2025 and delivering significant long-term value for Clarus shareholders. At this point, operator, we are ready to take questions.

Thank you. At this time, we will conduct the question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please stand by. Our first question comes from Peter McGoldrick from Stifel. Your line is open.

Hi, thanks for taking my question. Hey, how are you doing? Neil, you mentioned Black Diamond guidance would have been reaffirmed if not for macro uncertainty. So I'm curious if the level of tariff impact from China is causing any cancellations in the products you bring into the United States?

No cancellations as of this point. And it's a great question, Peter. Let me sort of describe our thinking and approach on this. So I think our first principle here is to contain the impact of the China impacts and make the duration as short as possible. So all efforts into accelerating our planned transition out of China. We think that will be a six to nine-month period to complete that. Number one. Number two, given that it's a relatively short duration, in the scheme of things, our approach is to maintain our supply even if we have to take a short-term hit on margin in order to keep our market share, keep our products on the pegs that they occupy and not go backwards. So you'll see us protect deliveries of, in particular, our headlamps, a couple models of climbing helmets. That's really sort of the extent of what's exposed here. As well as a couple models of our climb shoes. But we'll continue to bring those in. We've positioned our inventory quite well ahead of the tariffs so we can ride that for a little bit. As Mike mentioned, having reshaped our inventory to get 74% of it in our best styles puts us in a better position from the start to fulfill orders. So at this point, we don't see an impact on deliveries to our customers. And we haven't seen any fallout yet in the fall and winter order books from our pricing actions. Although, it's clearly very early still given that we took those price actions earlier in May, just a little more than a week ago. So I think we're gonna have to wait and see on the price impacts, but net-net, in terms of supply, no interruption that we foresee at this point in time. We'll continue to protect our market share, deliver our products. And the margin hit associated with that is about $3.5 to $4 million. And, again, the way we look at it is we'll take that $3.5 to $4 million hit this year in order to protect our market share. And then by the second quarter of next year, we should be out of China, where those impacts are coming from. And if we can accelerate that migration into Q3 of this year, that $4 million could drop to three or possibly $2 million of impact. We'll just have to see how fast we can move. Does that answer your question?

It definitely does. And, yeah, I was curious on you provided the clarification that so February 19, 2026, is the targeted date of the six to nine months for which you would be out of China the BD goods, and then you could accelerate that? And the swing factor there is $1 to $2 million of profit. Correct?

In '25. Correct. Five. Okay. And then I guess I'm curious on the promotionality of the two segments. There's an unfavorable merch margin mix in each. So can you size the headwinds to gross margin in each segment and the visibility to progression given current end market demand? Does that dissipate given the current market dynamics absent the tariff impacts that flow through?

Yes. Peter, it's Mike. Go you wanna cover Black Diamond? Go ahead, Neil.

I can if you want. So go ahead. I think, Peter, maybe to give you a sense of that the percent of discontinued merchandise in Q1 this year versus last year. This year, it was 7.5% of our mix. Last year was 5.8. So you can see both in absolute dollars and as a percentage of the total, it was higher. And this was very much part of our strategy given the uncertainty of the year. To pull a more graduated program across the year forward into the first quarter. And make sure that we're not trying to move discontinued merchandise in a weaker consumer environment. So very much a timing play on our part. And then as Mike mentioned, and, by the way, that would account for all of the year-over-year decline in gross margin rate at Black Diamond, so 80, 90 basis point impact from that. And then relative to our expectations, there were some timing impacts of things that will either reverse over the course of the year and or were contained to the first quarter. So margin was a little lower than our expectation. But mostly because of actions we took. And on the DM front and some issues that we think are either timing-related or contained in the first quarter. So we feel pretty good about still our margin progression for the rest of the year and feel really good coming out of the first quarter that our inventories are clean. In the best quality products, and that should allow margins to continue to lift over the course of the year.

So I'll handle the adventure. Yes. Adventure's gross margins were negatively impacted by mix as well. In the prepared remarks, Peter, I mentioned promotional sales efforts in the North American market. We have some inventory that we're trying to move, and be aggressive. And that was a drain on, you know, realized gross margin there. It's also combined with brand mix over in Australia. We talked about lower volume. At the Rhino Rack and Maxtrax business. The volume at Maxtrax was down over a million dollars year over year, and their gross margin is accretive to the segment's average. So when they were down, that mix also brought their margin down, correspondingly. Going forward, you know, we expect that to recover. Right? We don't we expect those margins to, you know, to rebound back to more traditional experience that we've seen at Adventure through the prior quarters.

I appreciate that. And then one on PEEPS. As that business goes away after the third quarter, could you give us sort of a run rate of annualized contribution to revenue, gross margin, and EBITDA?

Yeah. So yeah, in the first quarter, which is a you know, the business is lumpy due to the nature of the product. Right? I mean, it's Avalanche Snow Beacon. The first quarter, I think I in the prepared remarks, mentioned a $1.8 million of revenue. EBITDA was around breakeven. So by divesting this, I think it automatically becomes, you know, gross margin and EBITDA margin accretive. In the second quarter, revenue historically has been, a very small you know, a third of the first quarter's amount. So I wouldn't expect that to be a big number at all here in the second quarter. And then at some point in the third quarter, the transaction will close. Annually, PEEPS does about $5 million of revenue.

Very helpful. Last one for me. There's some strong numbers from international outdoor apparel for fall winter. What is the size of that business thinking of what that could mean for the back half?

Well, think I'll let Neil comment, but we're seeing strong demand in on the new apparel line. I think in the prepared remarks, we mentioned that US is up 50% and international is up 30%. On the preseason orders. You know, that's a direct result of a lot of work that the teams put in to update and, you know, put a little more edge into the apparel, but that's a positive. A significant positive, from my perspective as we look forward for the BD business. And Neil and Jack One No. One point of clarity. So looking at the fall winter order book is kinda what we are referencing so that those orders start to deliver in July through December. So in that order book, The US was up 50%. So that's not the international part. And then Europe was up in that order book 30%. So we took our two biggest regions in reference there, The US up 50, Europe up thirty. IGD is also up. We didn't give that specific number don't have it in front of me, but it's a smaller part of the overall apparel mix.

So

hope that helps. And apparel overall in the mix

is

is trending towards about 25% of the total. Thank you very much.

Thank you. Our next question comes from Mark Smith from Lake Street. Your line is open.

Hi, guys. Sorry if I missed this earlier, but

can you quantify or speak to it all how much the sales in outdoor of this discontinued inventory how much that boosted sales during the quarter?

We sold in the first quarter $2.7 million of discontinued merchandise at Outdoor. $2.7 million. Now that's not an entire boost. Right? We always sell DM. So the total was 2.7. And like I mentioned, I mentioned that a vast majority of that was the remaining PFAS inventory. But go ahead. Neil, what would you add to I was gonna say

year over year, the quantum on that is about $600,000 more than per year.

Yeah. Not a bad 2.7.

It's, like, seven and a half percent versus

yeah.

Yeah. Okay. And and

can probably do the math. And, Neil, you just spoke to

kind of the impact. I think you said 80 to 90 basis point impact on, gross profit margin from from these sales.

Correct. Okay.

Perfect. One thing we haven't haven't talked about much, but I just wanted to ask about was kind of the the strategy around, Black Diamond stores. Where are we at? Today, and, you know, any future movements maybe we should look at on, on storefront.

Sure, Mike. Do wanna take at see it?

Yeah. Go ahead. Take talk about the new Seattle store.

So first,

let me just say kind of our philosophy on what the role of our company-owned stores are. Or is, which is basically to have a limited number of stores that can be the full expression of the brand and give us learning labs of real-time information of what's working, what we can build on, what we need to edit. And so it's primarily an ex getting the full expression of the brand out there, getting the learning that we can then translate into sales strategies for our wholesale channel. They're not intended to be a substantial part of our revenue or driver of our revenue. I would say that our store base now is relatively flat and will continue to be in the eight, nine, 10 store sort of range. For the foreseeable future. That said, within that kind of defined footprint of company-owned retail, we have opened up a flagship store in Seattle to, as I said, be the full expression of the brand number one. A learning lab for us, number two. But also in that region, it's part of our strategy really to broaden the Black Diamond brand from really technical climb into broader mountaineering. And, of course, the Pacific Northwest is sort of the home of mountaineering in the United States. And so we wanted to have a flagship store in that region that could really give us some learning associated with building out Black Diamond as a mountaineering brand. And as part of that, we have a very interesting partnership with Ranir Mountaineering, which is I think, the largest Guide Service In The United States based of course, in on Mount Rainier, but they have 70 guides all over the world. From Denali I guess, McKinley now to Aconcoglo and Cotopaxi and the big peaks around the world. So those 70 guides are now all in Black Diamond gear head to toe. And so that's also part of why we wanted to have company-owned store in the Pacific Northwest to really be able to build on that partnership. The other one, by the way, that I would highlight, which is in a similar vein, are our store in Jackson Hole Wyoming is not only a retail store, but it's also a platform for our partnership with the Jackson Hole Mountain Guides. And if you were able to visit the store in Jackson, it looks great, but there's now a corner of that store where the Jackson Hole Mountain Guides actually post up and they sell trips and they do gear checks and they interact with their customers and ours. And it's been a really productive partnership so far, and we're seeing a nice lift to our retail business from it. But it's very much intended to be a community-based store with a tight partnership with one of the leading CAD companies in that region.

Okay.

Great.

Thank you.

Thank you. Our next question comes from Anna Glasgow from B. Riley Securities. Your line is open. Hey, good afternoon. Thanks for taking my question.

First, I'd like to touch on the adventure in the US in light of the commentary around that off-price retailer. Can you update us on what distribution looks like here? And as you navigate the migration of the supply from China, should we expect distribution gains this year or is that kind of on hold in light of the tariff environment? Thanks.

Sure, Anna. This is Mike. Last year, we under Trip's leadership, we made a decision not to pursue that discount channel that we had pushed some revenue through last year for the adventure product, the Rhino Rack product. So that did anniversary this year. Right? That's the year-over-year change. As we think about this going forward, whether it's bike racks or roof racks, right, we're leaning into specialty distribution channels. Right? Whether that's frac stores that are focused for automobiles and SUVs, or bicycle shops that are focused on bike racks. Right? We're leaning more into those types of channels than, I'll say, mass retailers. Especially mass discount retailers. And that's where I mentioned, you know, with the bike racks, we've expanded, you know, with the addition of Rocky Mounts as a product line within our portfolio here in the US. We expanded our doors from 300 doors, you know, a year ago to 800 doors. Right, because of the adding, you know, the success and the desire to have the Rocky Mounts product brings. Right? That they are so well-established product that gets us into that many more bike shops compared to what we had done historically. Got it. Thank you. And then turning to Black Diamond,

Neil, can you share some perspective on the price increases you've taken up far and how that compares to key competitors? Is there a sense that most have already taken price? Or are you earlier on that timeline? Thanks.

Yeah. We're definitely earlier on the timeline. Our philosophy on this was hit it head-on, be super transparent with our consumers and with our trade partners. So we went out with communication towards the April, letting our trade partners and our consumers know we would be taking price up. On May 5. So we gave them some time to adjust. And so I think we were among the first in the outdoor industry to go out with a very explicit position. We tied that back to the tariffs that we believe will stick. Obviously, there's a whole bunch of uncertainty around that, but we think the 10% universal tariff will stick and likely to the steel and aluminum 25% will stick. And so we took prices up accordingly. And to essentially offset that 10% universal tariff and 25% aluminum we couldn't offset, of course, was 45% on China. And that was the exposure. Right? I talked about earlier. But the first tranche of the 10% and the 25% on steel and aluminum we have covered in our price increases. And we're just now starting to see

various companies

take a position. Some are still

let's

give it a little bit more time, see where the discussions on reciprocal tariffs come out. Some are starting to break with their own price increases. I would

think

it's gonna play out over the next two to three months still. But we should start to see more and more companies taking price. Some might decide to hold for a little bit, but the outdoor industry in total has not really passed on a lot of the inflationary pressures that have existed in the industry over the years. And so I don't think there's a lot of room to hold and take the margins hit. I think people are gonna have to follow the tariffs up.

Great. Thanks, Neil.

Bye bye.

You're welcome. Thank you.

Our next question comes from Joseph Gonzalez from Roth Capital Partners. Your line is open.

Just wanted to see if you guys could talk a little bit further on tariffs. I know you guys already spoken a lot towards the pricing.

Mitigation. But, anyway, we're thinking about mitigation efforts around vendor negotiation. At all just to not offset completely, but kind of take a little bit from say, a continued 145 tariff throughout the year.

If

if that continues to play out. Yeah. Hey, Joseph. Mike it's Mike here. We've looked and we continue to look at all different ways to mitigate and countermeasure the tariff situation. We've talked a lot about pricing. Yes. We've been engaged with our vendors. For concessions. We've also looked at changing country of origin and moving, you know, outside of, to other lower-cost areas or that may have a lower tariff like Neil discussed, like, getting out of China. Right? So we're looking at all different types of mitigating efforts. Right? So those you know, some of those vendor concessions you are asking about we'd actually had that was one of the first things we had done back in March and in February. And, Neil Neil, you can confirm that. Right? We were we were we were pursuing those, right, as as we steer the tariffs. The wildcard in this was on April 2, the degree of tariffs that and the percentages that were introduced. That, and as Neil's discussed in great detail. Right, we think the 1025% stuff is is permanent. The 10% is kind of permanent. At least that's the way we're moving forward with that. Hence, we've done this pricing action to cover that. The other other hopefully, are negotiations. Hopefully, those all subside. And therefore, in the short term, we're going to absorb the impact of that into our into our gross margin. But, we are considering all different types of countermeasures. And we've been pursuing them as as I've mentioned. Got it. I appreciate the color there. And then just switching gears, I wanna talk about any capital allocation plans given the divestiture know, with the 8,000,000 around the Euro cash infusion. Do you to your current cash balance around 41,000,000. That puts us at

probably close to 50. Anything that you guys can just talk about if you're looking at buying another segment or potential other possible capital allocations channels that you're looking at? Yeah. I think for Lauren, you wanna address

yeah. I'm gonna address that. Thanks, Mike. Yeah. I think, you know, it's gonna take a lift. We're we're waiting a regulatory approval

in Austria, so that's gonna take a little bit of time. But, you know, we need to understand better, you know, what the you know, kind of what the the tariff and business impacts you know, possibly could be. And so, you know, at this point, I think we're just gonna, you know, hold on our cash hold on to our cash. Let's invest it. You know, in, in, treasuries and, you know, see where it goes. But but I will certainly update you, you know, the next time we report.

Got it. I appreciate that. Thank you for taking my questions.

Thank you. You bet. This concludes the question and answer session. I would now like to turn it back to Mike Yates for closing remarks.

Okay. Thank you very much. Wanna thank everyone for attending the call this afternoon. And most importantly, your continued support and interest in Clarus. We look forward to updating you on our results again next quarter. Again, thank you very much.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.