Cls Holdings Usa Inc

Good afternoon and welcome to CLS Holdings USA in third quarter 2022 conference call. My name is Tawanda and I'll be your conference call operator today. At this time, all participants will be in a listen-only mode. Before we begin today's call, I'd like to remind everyone that this conference call is being recorded as well as broadcast live via a webcast. Additionally, today's call will be available via webcast replay later today and accessible by visiting the Investor Relations section of the CLS Holdings website at www.clsholdings.com. Now I'd like to turn the call over to Jamie Dickinson with CLS Holdings USA, Inc. You may begin.

Thank you. Good afternoon. And thanks, everyone, for joining CLS Holdings' third quarter 2022 conference calls. Our earnings presentation and prepared remarks include references to non-GAAP measures, such as EBIT. We use these non-GAAP measures to provide greater transparency and a more meaningfully efficient comparison to prior year's results. Our non-GAAP and reconciliation from the GAAP measures to the non-GAAP measures are available in our earnings release. Statements in this conference call that are not historical facts are forward-looking statements. Words such as anticipate, estimate, expect, predict, project, and other similar words or phrases, such as goals, are intended to identify forward-looking statements. Examples of forward-looking statements include but are not limited to our estimates of future market position, market share, revenue, number of units sold, gross margin, profitability, number of transactions at our dispensary, and average order size, the timing of the first harvest for our tribal venture, and the commencement of manufacturing operations for our pre-roll joint venture, the number of products expected to be produced each month, and how long it will take the pre-roll joint venture to achieve expected monthly sales. the acceptance of our joint venture products by customers, whether other companies will enter into license agreements to have our pre-roll joint venture produce pre-rolls for them, and whether our New Mexico venture and other licensing opportunities will lead to expansion in other states. Examples of risks that could impact our forward-looking statements include, but are not limited to, the impact of the COVID-19 virus on our business, the results of our initiatives to retain our employees and strengthen our relationships with our customers and community during the pandemic, the effect of our initiatives to expand market share and achieve growth during and following the pandemic, the risk of unanticipated future events, and the effectiveness of our business practices during the pandemic. Forward-looking statements made during this conference call speak only as of today's date, and CLS Holdings specifically disclaims any obligation to update or revise any forward-looking statements to reflect new information, future events, or circumstances, or otherwise. The matters discussed on this call and in our presentation that are forward-looking statements are based on current management expectations involving risks and uncertainties that may result in these expectations not being realized. Actual events, outcomes, and results may differ materially from what is expressed or forecasted and from goals that we desire to achieve due to numerous risks and uncertainties, including but not limited to the risks and uncertainties described in this conference call. Our presentation filed with the SEC today and other filings made by the company with the SEC from time to time. Now, I would like to turn the call over to CLS Holdings Chairman, Jeffrey Binder.

Thank you. Good afternoon. My name is Jeff Binder and I am the chairman of CLS Holdings USA Inc. I would like to thank you for all participating in our call today and I look forward to our team sharing some of the accomplishments since we purchased the company three plus years ago. We operate in what is arguably the most competitive cannabis environment in the US. To witness the extraordinary growth and high level of execution that has been achieved gives me great pleasure. We have consistently grown revenue, dramatically narrowed our losses and maintained our margins. With our two new wholly owned operating divisions online, we're poised to grow revenues dramatically and achieve profitability this year. Given all the extraordinary events that have affected our country, the way our team stepped up to serve our customers gives me great pride. What a great accomplishment for cannabis to be deemed an essential industry. The team in Nevada has shown exceptional dedication to the company and more importantly, has dedicated themselves to providing outstanding customer service and awesome products to the roughly 850 plus people a day that visit our dispensary. Our CityTrees division has shown incredible resiliency by meeting the demands of all cannabis consumers with the production of the finest tinctures, vapes, and concentrates in the industry. You will hear today about the financial accomplishments which include narrowing our losses by approximately 95% and achieving a compound annual growth rate of 35% for the period January 1st, 2019 through December 31st, 2021. We will continue to operate this business respectfully and thoughtfully, keeping in mind that it is indeed a privilege, not a right to be able to operate in this rapidly growing industry. I would also like to point out that part of our DNA of our company and incredibly important to me is to give back and serve the community that we operate in. Not only have we donated $20,000 to various charities this year, we have participated in numerous events to help those in need along with those who have suffered under today's antiquated and outdated cannabis rules and regulations. Additionally, we continue to grow our program with the Ann Arbor Day Foundation by planting trees with the purchase of certain City Trees products. I hope that the legacy we leave behind provides for a healthier environment and a much more civil place for all of us. I look forward to more of these calls and I can assure you that we will try our best to represent our financial partners, shareholders, and our awesome customers that visit our dispensary and utilize our City Tree products available in over 70% of all the dispensaries in Nevada. The future for CLS is high. At this time, I would like to turn the call over to Charlene Soko, Executive Vice President of Finance for CLS USA, Inc.