Growing Profits 30% in the First 1.5 Years

You know, you've got supplier concentration. A lot of your, your product is for a single supplier. Talk to us about that, please.

Yeah, absolutely. So we, we actually have product from a lot of suppliers, but they are, we are what's. What's known as an authorized distributor for multiple different divisions of Hutchinson. And that means they have given us the right to sell their products.

And that actually grants us a lot of different things. So there are times where we can work directly with the government and show them like, hey, we actually have a letter on the company letterhead that we are an authorized distributor, so you're not going through a bunch of resellers. So there are a lot of benefits there.

But to the point, yes, they are our largest supply partner today. We work with different divisions and something that I don't think I did a great job of expressing, as we talked about evaluated the deal was the decision maker risk. And so we work with multiple different divisions, many of whom they don't really ever talk to one another.

And so roughly there are about three different divisions and they represent about a third of cells today. And 10% is roughly from other people.

Okay, so wait, three different divisions of Hutchinson is top line, Top kind of is 90%, but it's really three divisions of each. 30 to 35%. Under that, they're about right. Yeah, yeah. Okay. Plus 10% non Hutchinson.

Correct. And so you use the point there. Decision maker risk, I think, or gatekeeper risk. And so this is the more nuanced way to think about concentration risk that it's not, not just the, the, the main name company that you're selling into, but how many decision decisions really are involved.

And so it sounds like if, you know, if you've got these decision, you've got these divisions within Hutchinson that you supply, that you sell for, they're your suppliers and they're not even talking to each other. And so one could sever business ties with you and the other two would carry merrily along. It's, you know, while ostensibly 90% concentration, it's really not.

It's really. You just have three different customers. And so how many decisions have to be made for you to win or lose business, I think is the better way of looking at this.

Yeah. And said differently, we actually have unique distribution agreements with each of the divisions and there are different people that sign off of them and all of those things. And so we've been working with all of these divisions for over 20 years each. And so oftentimes they don't even.

There are times where they actually come to us to buy parts for their other divisions because they know we'll have them on the shelf. And so that's something that I didn't Fully grasp as I was evaluating the deal. But certainly that's something that is, people are looking at, at opportunities.