Mike Hourigan starts June 22 and the 90-day new-customer recovery clock begins that day. New-customer ROAS replaces blended MER as the primary KPI. Key shifts: branded search capped, Amazon returned to $7–8K/month floor (highest-ROAS channel), retargeting capped at 15% of Meta. Canopy offboarding completes June 22 — creative library, ad account ownership, and pixel configurations must transfer before then. The Meta–Amazon halo (0.72 correlation between Meta spend and Amazon organic revenue) means true Meta ROAS is 15–20% higher than reported — factor this into any spend-cut decisions. Health messaging (ingredient comparison, formulation transparency) is the sharpest underused differentiator in creative.

Price increase ($20/$22/$24 ladder) deferred until post-diffuser launch AND post-aluminum bottle transition. The plan does not rely on spray price increase revenue in 2026 or H1 2027. When triggered: $16 → $20 on three hero scents, 90-day elasticity test before broad rollout, aluminum quotes from three vendors. Decision gate: aluminum if landed COGS delta < $2; premium PET refresh if > $2.50.

Mid-August 2026 target. Production nearly complete; refill machinery has arrived and setup is in progress. Air freight decision pending (lithium-ion battery shipping constraint). Two pre-launch items that must resolve before launch: (1) refill pricing — the subscription model's unit economics (attach rate, churn, LTV) all depend on it; (2) hardware lock-in confirmation — if generic essential oils work in the nebulizer, the 7% churn assumption and the entire subscription compounding model need revision. Subscription portal platform decision (Loop vs. Recharge) still open.

Flows audit kicked off April 30; revisiting June with a mini-brief approach — Dan reviews plan, generates 1–2 email briefs, hands to Katelyn. The biggest conversion cliff is post-purchase 1st-to-reorder: 25.5K recipients produced only $2K in 90 days (RPR $0.08). Target: $0.50+ RPR within 90 days. Risk gate: if 1st-to-reorder conversion doesn’t move with timing/offer changes by week 6, declare structural and revise the $1.80M target down.

Each G&A commitment through 2026 must clear: “Can we do this without adding to the $1.04M baseline?” Brian/Mary labor savings (~$200K combined) are the buffer for relaunch investment, not new overhead. Run rate through May annualizes to ~$798K — on track, but the discipline has to hold through the diffuser investment cycle.

COGS is the largest controllable cost bucket and the one most directly tied to margin improvement. Three levers: (1) cube/box size optimization attacking the $502K shipping line directly — even 5% saves ~$25K/year; (2) BOM completion push to 95% by end of Q3 — prerequisite for knowing true product-level margins; (3) raw materials ($698K, 20.6% of revenue) — negotiate supplier terms as diffuser adds volume leverage. Diffuser filling equipment evaluated under COGS discipline, not G&A.

Current: inventory-integrity refactor — Phase 0 (reconciliation invariant) shipped, Phase 1 (central inventory service) building, F-014 production-drift decision open. Dan took ownership May 2026. Three priorities: inventory integrity (event sourcing, FIFO enforcement, cycle count accuracy); labor model capture (task-time studies with Drew, cost rollup on BOMs — current blocker for Move 5A BOM push); BOM data integrity and cost visibility (reconcile Datahub product data with MRP BOM data, target full cost rollup).