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spk01: And welcome to today's Planet 13, third quarter 2023 conference call. At this time, all participants have been placed on a listen-only mode and we will be conducting a question and answer session with the covering analyst after the presentation. It is now my pleasure to turn the floor over to your host, Mark Kundersma, Head of Investor Relations. Mark, the floor is yours.
spk04: Thank you. Good afternoon, everyone, and thanks for joining us today. Planet 13 holding third quarter 2023 financial results were released today. The press release, the company's quarterly report 10Q, including the MDNA and financial statements are available on the SEC website, EDGAR, and CDAR, as well as on our website, planet13holdings.com. Before I pass the call over to management, we'd like to remind listeners that portions of today's discussion include forward-looking statements. The forward-looking statements in this conference call are made as of the date of this call. There can be no assurances that such information will prove to be accurate, but that management's expectations or estimates of future developments, circumstances, or results will materialize. Risk factors that could affect results are detailed in the company's public filings that are made available with the United States Securities and Exchange Commission and on CDAR. We encourage listeners to read those statements in conjunction with today's call. As a result of those risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events. In addition, we will refer to both GAAP and non-GAAP financial measures. For information regarding our non-GAAP financial measures and reconciliation to the most directly comparable GAAP measures, please refer to today's press release posted on our website, Plan 13. Financial segments are presented in US dollars, and the results discussed during this call are in US dollars, unless otherwise indicated. On the call today, we have Larry Shepard, co-chairman, co-CEO, Bob Grossbeck, co-chairman, co-CEO, and Dennis Logan, CFO. I will now pass the call over to Larry Shepard, co-chairman, co-CEO of Plan 13.
spk02: Larry Shepard. Thank you. Good afternoon, everyone, and thank you for participating in our third quarter call. We've made significant progress against our long-term goals this quarter while continuing to hold our own during the challenging competitive environment in our core market in Nevada. In Q3 in Nevada, we generated 13.9 million in revenue from the Superstore, 1.9 million from the curbside and delivery, and 2.2 million from our medicine neighborhood dispensary. In total, we generated $18 million in Nevada retail sales, and based on the available data, are maintaining our market share at 9% of the total statewide sales. This retail performance in Nevada compares to 18.9 million in Q2 and 17.9 million in Q1. The slight decrease in sales this quarter was due to the standard volatility in the state's tourism event calendar coupled with lower cannabis prices. In addition to the 18 million in retail sales, we generated 2.2 million from wholesale and other revenue in Nevada, compared to 2.4 million the previous quarter. The slight decline in the quarter was driven by two factors. We directed more of our product towards our own shelves, leading to a 500 basis point increase in our own brand share of shelf space since the start of the year. This came at the expense of the wholesale sales, but will enable us to improve the margins at our retail store. The other factor was lower orders during the quarter due to the timing of orders for our gummy line and beverage line, both of which will have new formulations launching in the coming weeks. Overall, we are pleased with the performance of our wholesale and brands this year. We've had year over year wholesale growth of 34% year to date through Q3, driven by increased yield at our cultivation facility, increased brand recognition by consumers, and fresh new flavors and strains. During the third quarter, according to BDSA, we had the number one chocolate brand in Dreamland, a top four candy brand in HaHaGummy, and a top 10 vape concentrate and flower brands. All of these brands have maintained consistently strong market share throughout the year, and we're excited about expanding their reach into Florida. In total, Nevada combined retail and wholesale was 20.2 million in Q3 2023, compared to a 21.3 in Q2 of 2023. Overall, these results aligned with traditional seasonality and current Nevada-wide market trends. Looking ahead in Nevada, we expect continued fluctuations quarter to quarter as microfactors like the seasonality of tourist traffic and large event schedules impact revenue at the superstore. For example, the inaugural Las Vegas Grand Prix F1 race is scheduled for November 16th through the 18th. Furthermore, macroeconomic trends like cannabis pricing and the health of the consumer will also impact overall Nevada-wide sales. We'll continue to judge our success based on maintaining retail market share between 8% and 12% of total Nevada sales, and our brands continuing to rank among the top selling by product category. Bob will discuss it later, but we are also focused on driving more non-cannabis revenue from the superstore, maximizing the revenue we generate from the superstore footprint. Turning to California, in Q3, we generated 4.6 million revenue compared to 4.5 million in Q2, 2023. This breaks down into 1.9 million of retail, 2.7 million from wholesale, compared to 2 million from retail, and 2.5 from wholesale in Q2 of 2023. We've been slowly taking more of a California wholesale, fully in-house instead of using third-party distributors. This allows us more flexibility with promotions and pricing to drive additional sales. We also have better control over our receivables and cash conversion. We're pleased with the early results from this conversion, and we've been able to accomplish it smoothly without material additional staffing or SG&A requirements. With that, I'll pass it over to Dennis to discuss our financials.
spk05: Thank you, Larry. Before I begin, I'd just like to remind everyone that all numbers on today's call are stated in US dollars, unless specifically stated otherwise. In Q3, 2023, we generated 24.8 million in revenue compared to 25.8 million in revenue in Q2 of 2023. This .9% decline sequentially is in line with traditional seasonality or seasonal fluctuations. Looking ahead, we expect minimal top-line growth from our legacy assets in Q4 as price compression continues to offset the efficiency gains and market share gains we are making. We expect growth to be driven by our Illinois dispensary starting as it starts to contribute sales in December 2023. And assuming we close on the acquisition of VitaCAN, LLC Q1 of 2024, our new Florida business will drive incremental sales throughout 2024. In Q3, 2023, gross margin took a small step back to 44.7%, down from 46% in Q2 of 2023. This decrease was driven by a slight decline in wholesale gross margins, primarily in California, where pricing pressure offset the positive impact of bringing distribution in-house. Compared to Q3 of 2022, gross margin is up by almost 350 basis points, driven primarily by a decrease in product discounting as a percentage of gross revenue, partially offset by an increase in revenue coming from our lower margin wholesale business. We continue to target 50% gross margins at the retail store level and expect to see gross margin improvement in 2024 once we close the VitaCAN acquisition and generate a higher percentage of revenue from retail and notably the fully vertically integrated Florida operations. Sales and marketing expense for the quarter has been consistent all year at 1.3 million per quarter. We believe this demonstrates our ability to maintain a good balance of effective marketing spend where we can efficiently drive more sales and customer throughput with a positive return on investment. There will be a slight increase in Q4 as we open our Illinois dispensary next month and work towards getting that dispensary fully ramped up over the next few quarters. The company spent 11.3 million on G&A, consistent with the 11.3 million spend on G&A in Q2 of 2023. Of the 11.3 million, approximately 900,000 was related to the VitaCAN M&A transaction and the finalization of our conversion to a Nevada corporation. We are also carrying additional costs associated with the pre-revenue operations in our Florida and Illinois businesses. During the quarter, we took a 39.6 million impairment charge against our Florida license. This was part of our US domestication process where the company had to fair value all of our assets for the final exit tax return we filed with the CRA. And we engaged a third party independent consultant to perform a formal evaluation of the company's assets for tax purposes. And as a result of that evaluation work, we determined that the carrying value of the Florida license should be written down. As of September 30, 2023, the company had a cash balance of 36.7 million and no debt. We utilized 1.9 million investing cash flow during the quarter as we finalized the build out of our Illinois dispensary and continued with high priority upgrades at the superstore, like the consumption lounge and other build outs at the superstore. Through the end of the year, we expect to spend approximately 1.5 million to complete the build out of the upgrades in Las Vegas. And looking ahead to 2024, our cash needs are minor for our existing operations. And as part of the Vitacan transaction, which we expect to close in Q1 of 2024, we will pay 4 million in cash on closing and take back a promissory note or take on a promissory note for 5 million that will be due 12 to 16 months post closing. We are confident that these cash outlays will often be offset by the cash obtained from the sale of our existing Florida license, which is a required regulatory condition in closing the Vitacan acquisition. We also have an additional property in Florida that can be potentially sold and added to these assets, there are significant cash benefits to the Vitacan acquisition as it replaces most of our capex needs in Florida that would have had to be incurred to build out a comparative 26 store retail network and supporting cultivation and production facilities. We expect total capex in 2024 to be minor for existing operations, with our spending being limited to minor upgrades. We are working with the Vitacan management on a plan to continue to grow the retail store network in Florida supported by enhancements to Vitacan's cultivation and production facilities, adding indoor cultivation and enhanced extraction and production capabilities. Initial estimates for the Florida capex span between three and 10 million over a 12 to 18 month time horizon. And with that, I'll turn the call back over to Bob to discuss the significant progress we've made this quarter on our growth initiatives and corporate strategy.
spk03: I thank you, Dennis, and good afternoon, everyone. As indicated earlier, we've taken major steps this quarter to advance our growth initiatives and become a major player in Florida. On August 28th, we announced a purchase agreement for Vitacan, the ninth largest Florida dispensary network. This acquisition accomplishes multiple strategic goals and is a good fit within our company. It accelerates our timeline to reach a scaled position in the market and significantly reduces the near term cash requirements. Their medical focus brands complement our own more experience focused brands and their experience management team with talent at every level from store managers to cultivation to production are key assets. Together, our combined footprint will be almost 30 medical dispensaries with cultivation and production capable, supporting up to 70 dispensaries. It would have taken us years and tens of millions of dollars in capex to reach a scale independently. We've explored acquiring Vitacan and have done diligence multiple times over the years and have been very impressed by the way they've made improvements both to the quality of their cultivation with both yields and potencies increasing dramatically. They've also made significant progress to improve the cost structure of their operations. Those improvements in their core operations, the synergies we saw between our respective operations and the time and cost savings helping our own footprint and the attractive price point are why we're so excited about this deal. Our main focus once we've completed the acquisition is to continue the trend of improving cultivation by bringing some of our best strains and brands from Nevada and California. We also intend to add additional indoor cultivation for more premium flower. The goal for 2024 is to leverage improvements in cultivation and our award winning brands to improve productivity per store, drive continued growth, increase cash flow, and prepare our market position in anticipation of eventual adult use legalization. We expect this acquisition to close in early Q1 of 2024 and it will be a significant contributor to our results next year. It wasn't just Florida, however, where we made progress over the quarter. We are on track as Dennis indicated to open our first dispensary in Illinois in December. And once we open and once it's fully utilized, we believe that location will have the potential to be the second highest generating dispensary in our network. Last week on November 1st, which was a five year anniversary of the opening of the Superstore in Las Vegas, we released renderings and more detailed plans for our consumption lounge dazed at the Las Vegas Superstore. It contains 3,000 square feet of food, entertainment, and consumption space, and will be a perfect place to watch the game, try products, and simply enjoy a night out. Similar to the rest of the Superstore, it has eclectic art, experiential components, and will be a one of a kind experience. Between dazed, cannibition, and our completed grand hallway expansion, which has room for additional entertainment and events, we are significantly improving the utilization of the Superstore. Driving additional traffic, helping up new, non-cannabis revenue streams, which are beneficial under the current 280E restrictions. We expect the lounge, cannibition, and the grand hallway to be ready to host guests on November 4, April 20, 2024. Looking back at the goals we set this year to drive long-term growth, they were to maintain our competitive position in core operations, increase scale, and improve profitability and cash flow. We have bolstered our scale and cash flow potential with a clear line of sight to long-term growth with the ByteCAN acquisition, launching our footprint years ahead of our previous expectations, and at a fraction of the cost. The synergistic combination of business and expanded reach of our premier brands will drive profitability and sales. Along with these expansions of our footprint, the core operations have continued to grow and develop with our own brands maintaining their high rankings, build out of the Superstore, progressing smoothly. Overall, we are well underway to meeting or exceeding these goals and have a strong balance sheet to continue to execute on our plans in 2024. We believe 2024 will be a fantastic year for growth at Planet 13. And with that, again, I want to thank everybody for participating in that call, and I'd now ask the operator to open up questions for covering animals. Thank you.
spk01: Absolutely, thank you. At this time, we will be conducting a question and answer session with the covering analyst. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, that's star one. If you have a question or a comment, the first question comes from Doug Cooper with Beacon Securities. Please proceed.
spk06: Hey, good evening, guys. Just a couple from me. I just want to confirm, I guess, the CapEx, Dennis. So you have 36 million in cash at the end of the quarter, right? Let's just start with Nevada. You said you spent, I think, 1.5, one, no, you, you need to spend 1.5 to complete Nevada. Is that what you said?
spk05: Yeah, if I go back to that, yes, I think we spent 1.5 and we have to spend an additional 1.5, 1.8. I can't remember exactly. But yeah, Doug, it's basically the build out of the lounge and we've completed the gray shell for the third party Cannabition Museum opening and extending the grand hallway is in progress. You'll see it when you come down, obviously, if you're coming down for MJBiz. And if not, we'll send you video photos of it. But yeah, and that's really all we need on the Nevada operations. Illinois largely taken care of as it opens. I think we're planning first week of December to get that open. So we've got a little bit more there to spend in Q4, but not much majority of that has already been spent. I think we'll be five million all in for that open. And so that includes the acquisition, purchase of the building and then the build out. Okay.
spk06: And then the consumption lounge, that's incorporated in the 1.5 still to spend or that's on top of the consumption lounge?
spk05: Yeah, that's incorporated into that additional spend requirement. Okay, okay.
spk06: And then Florida, obviously taken care of, you got to spend 4 million cash upon closing to the shareholders, I guess. And then TapEx, you said three to 10 million on top of that?
spk05: I look at the 4 million we have to spend and the note we're taking on should largely be washed out with the sale of our existing license. Additional cash will come in from that license sale as well as the sale of, we've got a 23 acre parcel of land that's in a fantastic spot where we've got some interest in that already as part of that license sale process. And then we've got another other assets on a building that we haven't erected yet, probably worth a couple million that we can sell. So I look at selling the license and taking care of VitaCAM, we'll end up with net cash out of that. And then the CapEx on the balance of the Florida, assuming VitaCAM closes, it's going to depend on how fast we roll out additional stores. The capacity of the VitaCAM production and cultivation facility will probably spend two to three million to put the indoor, grow in, enhance their greenhouse. We do have a plan, we are working with them on that. And then that will allow us to greatly expand the product offering in their existing 26 store network. They have capacity to double the number of stores using that existing grow. So there's not a lot of additional investment we need in the grow itself, it's just how many stores are we going to roll out, how fast, what location does Florida go adult use in 24 on the vote and then we build a super store or does it stay medical? We won't know the answer to that, whether it's on the ballot or not, probably until I think I was reading today, sometime in January, February. So that's all going to impact what the CapEx looks like in Florida in 24. So we're estimating kind of three to 10, but net net, net net we should come out.
spk06: After all said, Amisha, if you start 36, you get some cash in from the sale of the license and maybe some buildings. After the body can closes and after Illinois is open, you should still be north of 30 million. Or it should be, right? Yeah, we should. Okay, the write down of the Florida license by 39.6 million, you paid 50, correct?
spk05: I would pay 55, Doug, all in September of 21. You know, we raised the proceeds for that 55, we raised it at 730 Canadian back in February of 21, you know, way into Florida, obviously market is very different now than it was then.
spk04: Had
spk05: to do that formal valuation as part of our domestication to Nevada and looking at where we think that license will trade coupled with evaluation report we had and what we filed with the CRA, you know, that led to us having to take that impairment charge. So we'll finalize that number depending on what we end up, what we end up selling the
spk06: license for. I guess I'm just trying to get at, do you think the value of that license that you're assuming to be for sale is around 15 or 16 million dollars?
spk05: Yeah, probably in that ballpark, right? If you back out the fixed assets that we have down there, it's in that range for sure.
spk06: Yeah, well, I just took the 55 million minus 39.6, just as a quick, if that's what the... Yeah,
spk04: no, I see it, yeah, for sure,
spk06: yeah. Okay, any hurdles still to get over for the closing of the VitaCan or is it sort of just regulatory stuff right now?
spk05: Well, it's regulatory and the big hurdle is, you know, finding a buyer for our license that will pass the OMMU, you know, process, right? So it's a bit of both, I mean, that's the biggest one. We have obviously made the applications in Nevada, vetting the shareholders we're taking on, getting regulatory approvals in the states that we need to, but the gating item will be the sale of that cannabis license.
spk06: Just moving on to pricing, Bob, Larry, you mentioned that there's some weakness in pricing in Nevada. To what extent in terms of percentage or, you know, where do you see pricing going there? Maybe you could segue that to Illinois and pricing there. And just your thoughts in Florida, I know one of the MSOs came out today during their call and said Florida remains the most profitable state in the country, I guess. So just maybe your thoughts on how you see the market progressing in Florida in terms of pricing and profitability metrics.
spk03: Well, Doug, hey, it's Bob.
spk04: Obviously,
spk03: we're excited about Florida, about what it represents. I mean, we're still, of course, dealing in a medical market. You've got, what, 950,000 carpools statewide. It creates some opportunities. Being a forced integrated market, you don't have the level of competition that you have in Nevada, for instance, you know, with multiple players in different segments. Again, we're comfortable, you know, where we are, where we're gonna go in when we close the transaction that will be price competitive, we'll be, you know, priced at similar to what Bytecan is doing now. We think we can get some pricing increasing with our new strains that we're moving into the market and some of our product lines. And so we're excited about that. But going back to your earlier question in Nevada, Nevada's a challenging market. I mean, as we indicated on the call, it's gonna continue to be a challenging market and it's gonna continue to be challenging. There's just a lot more competition in the market. They've, you know, they've continued to issue licenses for new stores. It's created a lot of compression. We've been able to hold our own. We're gonna continue to do that. One thing that it is going to do, we believe, is create opportunities for us, you know, to expand our footprint here in the state. We see a lot of receivers now, or a lot of operators now, rather, that are pushing toward that receiver. That situation, and we see some upside there. And so that creates opportunity. It allows us to get our products into our stores and not be reliant upon third-party producers. So again, it's gonna be tight and we're gonna just continue to put our head down and push through it, and we'll come out the other side stronger. Okay.
spk06: Any, use the word for this, but any hope in sight for California? I mean, is there any silver linings in the horizon that could see the market improving there? Ooh,
spk03: boy. That's a tough one. You know, California is an even bigger challenge, particularly in the Orange County area, in the retail side. The cultivation business is doing quite well, as you see. The numbers are ticking up quarter over quarter. We're excited about that. We've got a really good facility. We've got great products coming out of it. It's just in the Santa Ana area, or greater Orange County, we're seeing more and more storefronts being licensed. For instance, Costa Mesa, and now it looks like Huntington Beach coming into the market. In addition to the 30-plus stores in Santa Ana now, again, we're pushing through it. We're doing the best we can. But you know, nothing's changed, Doug, from my perspective since we opened the doors. Our biggest challenge down there is the illicit market. And until the state of California gets serious about reining that in, all licensed operators are gonna continue to struggle for a bit. And it's out of control. And they're so brazen, and the delivery services that are not regulated, selling illicit products, and it seems as though the regulators continually just turn a blind eye. So a lot of talk out of Sacramento, very little action. Dennis,
spk06: is California break even, or close to break even? What would the cash flow like at a California?
spk05: Yeah, I mean, obviously we're trying to get it to break even on the retail side. The wholesale piece of it, as Bob mentioned, makes money. You know, again, every time a new dispensary opens, we see an impact on our revenue. So it's been a challenge to get it to break even, but it's close.
spk06: Okay, and final one, just Bob or Larry on the consumption lounge. So the revenue model, you're not charging, you're hoping that these guys obviously buy product in the store and go next door or across the hallway to go consume, and then the revenue is gonna be coming from food and beverage, predominantly? Well,
spk03: hopefully, Doug, the revenue comes predominantly from buying product, THC products. But yeah, we'll have an ancillary opportunity for customers, plenty of food opportunities, plenty of drink opportunities outside alcohol. But we think that we aren't, initially our model isn't to charge an admission fee, but it certainly is structured and set up to allow customers to experience equipment on a rental basis to use those products once they buy them. So, and we've got gaming opportunities in there that'll be for charge. So we haven't even opened the facility now, we're probably twice a week get inbounds from different groups that want to rent the entire venue for a night or two. So we think there's a lot of upside there. But again, this is new for all of us, we haven't done that. What we are very confident in is that just having this type of operation on site is gonna drive additional traffic, particularly to the extent that we're gonna build this out.
spk02: Yeah. And again, just to add, we've got plenty of capacity in our restaurant, we think there's gonna be a huge plus to help out with Trace on filling up that capacity, serving food over there also at the consumption
spk06: lunch. Yeah, okay, thanks Larry. And then Illinois plans to open in December and that's pretty straightforward there. So any particular comments in Illinois, we should be cognizant of?
spk03: No, we're just really excited to see it come together. It's, I just can't, we think it's gonna be a fantastic store for the entire region up there. It's different, it's something they've been clamoring for and we're just, we can't wait to open the door.
spk06: Okay, perfect. Okay guys, thanks very much.
spk05: Thanks
spk01: Doug. Once again, if there are any remaining questions or comments, please indicate so by pressing star one. Up next we have Pablo Zlonic with Zlonic and Associates. Please proceed.
spk00: Yeah, thank you. Just a quick follow up on the last question in terms of housekeeping. You said opening the lounge and all those facilities by April 20th next year. Is there anything in terms of permits still pending or is it just about the normal timeline in terms of build out? I'm just trying to understand what's, if you're in full control of the timeline or there's still something pending?
spk03: No, Pablo, this is Bob. Good to talk to you. We're excited, yeah, we're very comfortable we'll meet that timeline or beat it. That's just, that's kind of an outside target date for us. There are obviously operational challenges with building facilities now given lead times for equipment, particularly large ticket items like HVA systems, but we're comfortable we're gonna meet that. We've got everything in place. We've got a lot of bodies in the facility every day and the construction folks tell us that they're moving at a pace that they represented to us when we went into the contracts and they assure us they're gonna get it open by then.
spk00: Right, and I know it's hard to estimate this, but you said in the past that I think 4% of juries go to a superstore, right? I've been trying to think whether, is a 4% number good or bad? I have no idea what percent of juries partake, right? But I'm thinking a 4% is still very low, right? So you still, everybody hears about the sphere, right? I'm just wondering how high that 4% number could go and it's probably hard to estimate, but is a 4% the number that you've been happy with or you still are offsite to that number?
spk03: Well, again, this is Bob and Dennis and Larry can jump in, but I'm never happy with the number. I'd like it to be 10%. We're gonna continually work to grow traffic. I think the combination of having consumption on site now coupled with the museum is going to be a big traffic generator for us. This is truly a destination resort now. We've got several other least opportunities that we're negotiating now. So this is gonna be an amazing opportunity for the cannabis consumer to come in and spend 15 minutes on a purchase or spend four or five hours here. And it's so unique, it's so different. And this next phase of construction allows us to really make this a true cannabis entertainment complex. So we hope to grow those numbers. Certainly, we wanna get everybody that's a connoisseur, a user or just cannabis curious to come to the facility and enjoy it.
spk00: Yeah, I'm just- And then
spk05: Pablo, Dennis, I'll add to that. Just on the percentages, depends on your percentage of tourists. If you use the 55 million estimated tourists, we're more like 2% of the tourists actually come to the superstore given that we've had a million to a million and a half customers in any given year. So if we can get to 4% of the 55 million, that would be fantastic too. We double the number of customers. So it really depends on what source you're using as a tourist number. So we're happy to go into more detail on the estimates and where we get them from.
spk00: Sure, and on the same subject, I know that there's been a big jump in the number of stores in Nevada in general, but in terms of the stores that would be one to three miles within the superstore, is there a lot new competition in terms of stores near the superstore in terms of options for tourists or that hasn't changed so much?
spk03: Well, we do have one large store that opened up recently this year actually, Thrive, which is just to the north of us on Sammy Davis Junior Drive. But I don't see anything coming in now in the near term that doesn't run afoul of the distance separations from the Las Vegas Strip.
spk04: So there
spk03: are additional licenses that will come into the market, but I don't see anything or I haven't seen any applications recently that put it right down here on the Strip, adjacent to the Strip.
spk00: And thank you. And then one last one. So it's the same subject, but I guess flipping the equation, right? So I think you've said in terms of the sales of a superstore, 80% tourists, out of towners, and then 20% locals. How has your ability to attract locals changed over time up to this point? And I'm not talking about the lounge and the museum, I suppose that would also help cater to locals, but making more of a destination for locals. But has the attractiveness of a superstore with locals changed much or not really? Because you added delivery, you did add some services that would make me think that things would have improved with locals, but some color there, thanks.
spk05: I
spk03: don't think that that ratio is gonna change much. And again, historically, pre-COVID, through COVID, and now post-COVID, those numbers have consistently tracked in that 80, 85% non-Nevadans using this facility in the dispensary. And this is a tourist-built facility, it's gonna continue to drive tourist customers. Now we do see a fair amount of local coming through our drive-through facility on site here that are locals, and they're typically working on the strip, and they come by here, go through the drive-through as they're heading home into the suburbs.
spk00: And I want to add one last one, if you can answer, but you talked about stores that are in receivership, that you would be looking at that as a way to expand in Nevada. If you begin to add stores in Nevada, I suppose you would call everything under the Planet 13 banner, right? Or would you rather have the medicine? Because I don't know how much equity medicine has in terms of adding more stores in Nevada, thanks.
spk03: Yeah, that's a good question. We anticipate, as we expand the footprint, if we do rather, there'll probably be Planet 13 branded stores. That seems to be kind of the direction we're going as a company now. All of our Florida stores are going to be and all of our super stores, for instance, will be branded as Planet 13 in a rollout. The only one that is not Planet 13 is Medicine, which is our original store. And we've had some internal discussions about converting that over at some point as well.
spk02: And this is Larry, we probably also will call it Planet 13 neighborhood stores for the smaller versions versus the super store. There is a little distinction when they get on our website and understand what they're getting to when they come to Las Vegas.
spk00: Right, or maybe satellite 13, but anyway. No, that's good, thank you.
spk01: Okay, we have reached the end of the question and answer session. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.
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