Leef Brands Inc

Good day and thank you for standing by. Welcome to the Leaf Brand's full year and fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we'll open up for questions. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's call is being recorded. I would now like to hand it over to our first speaker, Jesse Redman, Chief Strategy and Investment Relations Officer. Please go ahead.

Good afternoon, everyone, and thank you for joining us. Welcome to Leaf Brand's fourth quarter and full year 2025 earnings call. Joining me today are Micah Anderson, our Chief Executive Officer, and Kevin Wilson, our Chief Financial Officer. Please note that today's discussion will include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from what we discussed today. For a full discussion of these risks, please refer to our filings on SIDAR Plus and on our website. Our financial results and press release for the quarter are available at leafbrands.com in the investor relations section. Today's call will begin with remarks from Micah, who will discuss the key operational highlights from the quarter and the continued progress at Salisbury Canyon Ranch. Kevin will then walk through the financial results in more detail. After that, Micah will return to discuss what lies ahead and why we're so excited about LEAF's future. With that, I'll turn the call over to Micah.

Thanks, Jesse. And good afternoon, everyone. I want to start by thanking everyone for taking the time to tune in and learn more about the Leaf Brands business. 2025 was a pivotal year for our business. Today I'm going to highlight a couple of the company's wins from 2025, as well as talk about what the future looks like for our company. We had our first successful year cultivating close to 65 acres in Santa Barbara County. We grew close to 2 million plants, which has led to largely improved economics within our core extraction business. We grew revenue by 22% year over year and doubled our gross margins in the last two quarters of the year. Today, we will get into the details that drove this improvement. It's also worth noting we were successful in converting close to $12 million worth of debentures in an effort to strengthen our balance sheets. As many of you know, our core business centers around an extraction facility we've been running since 2018. Leaf has scrapped and fought our way to becoming one of the largest concentrate providers, and I'm proud to say that we power many of the largest brands in the industry. To give you guys a sense of how large the extraction business is, we process over 200 acres worth of raw cannabis material a year through our extraction facility, which then gets turned into different types of concentrated products. We don't sell flour. We don't co-pack for other brands. We are very focused on providing medical grade, formulated, concentrated ingredients to the largest players in the space. So we grew 65 acres in 25. but still purchase many more acres worth of product from other farms, which obviously doesn't give us the full economic impact we will see once the farm is complete. This is why our main focus in 2026 will be to complete the build out at our cultivation facility and bring even more of the supply chain needs in-house in 26 and into 27. The market rate in California for the type of material we purchase for extraction is between $20 and $50 per pound. We cultivate the same material ourselves for $8 or less. So with the recent financing event of up to $8 million led by Mindset Capital, our intent is to really stay focused in California by finishing the farm. This is where LEAF can find the largest return on investment over the next couple of years. Kevin will get into the numbers in a minute, but before I hand it over to him, I want to run through a few fun facts and things to think about as it relates to our business. Once fully built, we can produce around 1 million pounds on the current license footprint in Santa Barbara. I believe that there's an opportunity for us to increase our license footprint on the farm over the coming years, leading to more pounds produced. If we were to turn all one million pounds into distillate, which is our lowest value concentrate skew, and sell it at today's fair market value, it would equate to close to 39 million in revenue. Vape sales recently overtook flower sales in California, and we see this trend happening all over the industry. Hemp beverage and vape sales over the past few years are clear consumer demand indicators. Clean, high-quality oil is crucial to building a real brand in this category. We are currently cultivating pounds for $8, but I do believe that we will get this number down over time through innovation and discovered efficiencies. The material we cultivated in 2025 was completely pesticide free. This is important and will matter more in the coming years under rescheduling and the more medical landscape we believe is coming. For this reason, I believe LEAF is building the supply chain of the future. This will make LEAF a potential global market provider when international export is allowed. You have all heard the rumors of the federal government rescheduling cannabis. In past years, I've been bearish on this happening, but from what I've gathered more recently, I do believe that this will happen this year. The administration has dropped many hints around the medical aspects of the plant, and I do believe that we are going to see stricter, more medical-like guidelines over time, which is why we are building LEAF the way we are. Beverages, soft gels, Edibles, topicals, and even vapes are the products of the future, and this is where LEAF is laser-focused. To my point, we are also watching the Medicare CBD pilot program that is launching this spring. The federal government is looking at covering CBD products for seniors, which is a validation of the medical direction this industry is headed. LEAF's pesticide-free supply chain is built for exactly that kind of regulated market. I'm going to pass it over to Kevin to run through the financial performance, and then I'll jump back in to highlight a few things investors should follow over 2026.