Planet 13 Hldgs Inc Nev

Greetings and welcome to today's Planet 13 first quarter 2024 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 call over to your host for today, Mark Kundersma, Head of Investor Relations. Mark, the floor is yours.

Thank you. Good afternoon, everyone, and thanks for joining us today. Planet 13 Holdings first quarter 2024 financial results were released today. The press release, the company's quarterly report 10Q, including the MD&A and financial statements are available on the SEC's website, EDGAR, and CDAR Plus, 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 or that management's expectations or estimates of future developments, circumstances, or results will materialize. Risk factors that could affect results are detailed with the company's public filings that are made available to the United States Securities and Exchange Commission and on CDR+. We encourage listeners to read those statements in conjunction with today's call. As a result of these 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 reconciliations to the most directly comparable GAAP measures, please refer to today's press release posted on our website. My 13 financial statements are presented in U.S. dollars, and the results discussed during this call are in U.S. dollars unless otherwise indicated. On the call today, we have Larry Scheffler, co-chairman and co-CEO, Bob Grosbeck, co-chairman and co-CEO, and Dennis Logan, CFO. I will now pass the call over to Larry Scheffler. Larry LaForge, yours.

Good afternoon, everyone, and thanks for participating in our first quarter call. This is an incredibly exciting call that comes at the critical junction for multiple important milestones for Planet 13 and our industry. Within the next few weeks, we've opened Day's Consumption Lounge, a truly unique cannabis entertainment venue. We're on the verge of closing the acquisition of Vitacan, adding 26 stores, in one of the most exciting potential adult-use states in our portfolio. And on the federal level, we're getting closer to federal reform. The biggest and most likely of possible reforms is rescheduling that could bring cannabis from a Schedule I controlled substance to a Schedule III. This would remove the unfair impact of 280E and allow us to be taxed the same way as every other US company. This change would be transformational have an impact on our net income, operating cash flow, balance sheet, and cost of capital. To give an idea, last year we paid over $10 million more in taxes under 280 regulations than we would have normally. That money could have been reinvested in our business to further growth and profitability initiatives. The changes that are coming over the next few quarters and years will fundamentally change Planet 13's growth trajectory, profitability, and valuation. Turning to our performance in the first quarter, we are shifting how we talk about our operations going forward to reflect the upcoming acquisition of Vitacan and our growth plans. The three categories are in the Las Vegas Superstore and its attractions, our neighborhood store network, which includes Illinois, Nevada, California, and soon to be Florida, and wholesale and lifestyle. In Q1 2024, the SuperShore generated $13.6 million. This is roughly on par with the percent of state revenue we generated last year during the seasonably slower tourist period. As we move past the seasonably slow part of the year, And with the opening of our lounge, we will continue to see incremental gains from the Superstore. Revenue from our neighborhood store network grew 20% from Q1 2023 to $5.1 million. This is driven by the opening of our Illinois dispensary in late Q4 in the combined strong performance and the Nevada neighborhood store. Bob will talk about it more, but this will be the biggest area of growth with the upcoming addition of Vitacams. Based on the last publicly available data provided by the CAN, which is their nine months ended September 30, 2023, they averaged $8 million per quarter. That undersells where they are today. Over the last year, they have seen a 60% increase in the volume of flour sales that are sold per Florida state data. Excuse me. We'll continue to build on this momentum with additional stores, our brands, cultivation, and product improvement. Between the Superstore and our neighborhood network, we generated total retail revenue of $18.7 million, 1% sequential decline. On the wholesale side, we generated $4.2 million, a 2% sequential increase. This is driven by continued strength to our neighborhood wholesale position and our sought-after branded products. According to BDSA, we had the fifth most branded sales of any company in Nevada during the Q1 and the second highest selling edible portfolio. This continued success is a testament to the brand equity we built with consumers. With that, I'll pass it over to Dennis to discuss our financials.