Alpine 4 Holdings, Inc. (ALPP) CEO, Kent Wilson, Addresses Current Market Conditions and Declining Share Price - Seite 2

Growth in the Right Places

At Alpine 4, we believe in nurturing the potential of our subsidiaries, and this philosophy extends to the decisions we make regarding the allocation of our financial resources, where historically, that has been to acquire new subsidiaries. However, for the foreseeable future, our capital disbursement strategy will be allocated towards newer and higher profit margin growth initiatives within our existing subsidiaries. Products sales, and research and development with our drones, solid-state batteries, new product lines at RCA Commercial, and leading-edge electronics manufacturing will be our primary focus. This targeted approach ensures that our resources are allocated where they can make the most significant impact. As we reinvest into our subsidiaries and these higher profit margin products, it is our belief our share price will reflect these accomplishments over time.

Operational Excellence

In overseeing a diverse portfolio of subsidiaries, we understand that the key to success lies in our ability to foster a culture of innovation, efficiency, and collaboration across all levels. We are committed to continually enhancing our operational processes, streamlining workflows, and optimizing resource allocation. In the past, we have had higher-than-average fixed expenses. This was primarily driven by three major factors: First, our acquisitions strategy over the past decade added millions of dollars in new fees from brokers, auditors, consultants, and other acquisition-related expenses. Second, our continuous investment back into our subsidiaries to enable them to grow beyond their historical performance takes years of training, advisement, talent acquisition, and other costly items that hit as an expense on our P&L Statement. Finally, the building of infrastructure at Alpine 4, with new executives, auditors, financial advisors, and software such as NetSuite, has taken years to build. With that said, we are focused on cost efficiency and exploration in growth with the products we believe will have a positive impact on our share price. As we move beyond the five acquisitions completed in 2021, the switching of our auditors in 2022, and the integration of NetSuite within Alpine 4 and our subsidiaries in 2024, we anticipate that our fixed expenses will begin to drop as a percentage of revenue and subsequently, will reflect in the share price.