Planet 13 Hldgs Inc Nev

Ladies and gentlemen, thank you for standing by. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the Planet 13 Holdings fourth quarter and full year 2025 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. And I would now like to turn the conference over to Mark Kindersma, Head of Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone, and thanks for joining us today. Plan 13 Holdings' fourth quarter and full year 2025 financial results were released today. The press release, the company's annual report, Form 10-K, including the MD&A and financial statements are available on Edgar, Cedar Plus, as well as on our website, plan13.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 can affect the results are detailed in the company's public filings that are made available with the United States Securities and Exchange Commission and on CEDAR+. 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 reconciliation to the most directly comparable GAAP measures, please refer to today's press release posted on our website. Plan 13's financial statements present 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 Groesbeck, Co-Chairman and Co-CEO, and Steve McClain, Interim CFO. I will now pass the call over to Larry Scheffler, Co-CEO, Planet 13 Holdings.

Larry? Good afternoon, and thanks for joining us. Q4 was a better quarter, where the work we've been doing began to show up in the results. We're not yet where we ultimately want to be, but this was a meaningful step in the right direction. I'll walk through our operational performance. Steve will take you through the financials, and Bob will cover the strategic picture. In Q4, the Superstore, including Dave's, generated $9.2 million, essentially flat from Q3. The Las Vegas environment continues to be a genuine headwind. Visitor volume was down 6.3% year over year, and the average visitor spending downtown fell 15.6% over the same period. as a destination experience built around the tourists, we feel both of these pressures. I'd also note that the F1 race in November displaced approximately four days of normal retail traffic at the Superstore, and yet revenue still came in essentially flat with Q3. That tells you something about the underlying run rate of that business. Stripping out the F1 disruption, Q4 was actually a modestly better quarter than the headline suggests. Visitor volume on a sequential basis was flat, so the macro environment isn't deteriorating further. But we're not yet seeing the recovery that moved the needle at the Superstore. Our neighborhood store network delivered $14 million in revenue, with Florida representing $10.3 million of that total. I should note that the Florida results did include a one-time benefit from a loyalty accrual adjustment, Excluding that item and setting aside California, which we have now exited, we saw approximately 8% sequential growth over the remaining neighborhood stores in Florida, Illinois, and Nevada. We called Q3 the trough last quarter, and Q4 delivered the stabilization we expected. The foundation heading into 2026 is stronger. Combined, our superstore and neighborhood network generated $23.2 million in total retail revenue compared to $21.3 million in Q3, a sequential improvement that reflects the stabilization we've been working towards. Wholesale revenue was $2 million compared to $2.1 million in Q3, though that decline was entirely attributable to winding down California operations. Nevada wholesale was up 38% sequentially, which reflects the hotel's team restructuring we executed in Q2. It's encouraging to see the operational steps we took last year beginning to show up in the numbers. Stabilization in the neighborhood network, wholesale momentum in Nevada, and a cleaner portfolio heading into 2026. The Nevada tourist environment remains a headwind, but we're positioned to benefit as year-over-year comparisons become more favorable. We've done the restructuring work. The 2026 focus is converting those actions into positive cash flow. With that, I turn it over to Steve to walk you through the financials.

Thank you, Larry. The operational stabilization that you described is showing up in the financial results, and I'll walk you through the details. In Q4, Plan 13 generated $25.2 million in total revenue compared to $23.3 million in Q3, sequential growth of approximately 8%. That improvement came during a seasonally soft period, which we view as a meaningful indicator that the operational work across our footprint is beginning to translate into the financial results. I do want to flag one item for modeling purposes. We completed the California divestiture in early Q1, which removes approximately $2.5 to $3 million in quarterly revenue from the run rate going forward. Gross profit in Q4 was $11.2 million, representing a gross margin of 44.6%. That compares to a reported 21.3% in Q3, which was heavily impacted by a $3.5 million inventory reserve related to an excess of aged flour and concentrates in Florida. Q4 brings us back to where we expect this business to operate. We still see room to improve from here. The BHO Lab approval in Florida will expand our product mix and strengthen pricing power. The California exit removes a market that was running well below our corporate margin profile. and the restructuring of our Nevada cultivation footprint removes costs that were a persistent drag on profitability. Bob will speak to the Nevada actions in more detail, but collectively, these are meaningful tailwinds that will increasingly show up in our numbers through 2026. And we expect gross margin to reflect that improvement in a material way. Sales and marketing expense declined 5% sequentially to $1.1 million, reflecting our continued focus on optimizing spend against profitability. G&A was essentially flat quarter over quarter at $12 million, with reductions in the period offset by higher audit and legal fees. We expect G&A to decline as the California overhead is eliminated, and we continue to find efficiencies across the organization. Adjusted EBITDA improved significantly in Q4, narrowing from a $4.1 million loss in Q3 to a $0.3 million loss, a $3.8 million sequential improvement. That result reflects the combination of revenue stabilization across our core markets and gross margin recovery. We're not satisfied with the loss, but the trajectory is clear and the path to positive adjusted EBITDA from here is well within reach. Turning to the balance sheet, We ended Q4 with $15.6 million in cash and restricted cash. The BHO lab was our last major capital project. With construction complete, we do not anticipate meaningful CapEx in 2026. The California exit is a meaningful step in the right direction here. It removes a market that was consuming cash without a path to profitability, and its impact will be reflected starting in Q1. Combined with the revenue stabilization and margin recovery we've discussed, we expect our cash position to improve meaningfully throughout 2026. In summary, Q4 revenue improved sequentially, margins recovered to normalized levels, and adjusted EBITDA moved materially in the right direction. The balance sheet actions and structural changes we've taken position us to continue that improvement through 2026. With that, I'll hand it to Bob.

Thank you, Steve, and good afternoon, everyone. 2025 was a year of deliberate repositioning, exiting markets that were consuming capital without a credible path to profitability, strengthening our Florida foundation, and bringing the cost structure in line with the realities of today's cannabis markets. The results aren't yet where we want them, but the decisions we made last year were the right ones, and their impact is beginning to show up in the numbers as Steve just walked through. The most significant structural step we took was exiting California, as mentioned, a market that had become a persistent drag on both margins and cash flow. We completed that transaction in the first half of February. While the exit creates a revenue headwind of roughly $2.5 to $3 million per quarter, as Steve mentioned, That is more than offset by the margin and cash flow relief of removing an operation that didn't have a path to profitability in the current regulatory and competitive environment we encountered in California. Florida is where we are putting our resources. And the capital that is being consumed by California is now being redeployed into a market where we have scale, infrastructure, and a clear path to improving returns. On the BHO lab, we've done everything on our end. The facility is complete. The infrastructure is fully in place, and the application is pending with Florida regulators. Now, this is entirely in their hands, and we remain hopeful for an approval by the end of Q1. When that approval comes, it closes a product gap that has put us at a disadvantage relative to competitors in the market for quite some time. It's been a long time coming, and we are ready to move the moment we get the green light. We also opened two new dispensaries in Q4, Pace near Pensacola and the land on the I-4 corridor between Orlando and Daytona. We also made important structural changes to our Nevada cultivation footprint. Beatty was closed in January 2025. It was a high cost, low output facility that was no longer defensible or viable in this pricing environment. Wagon Trail was closed at the end of December 2025. and represented the more significant cost reduction of the two. Both facilities are now dark. Importantly, we are still producing our full range of flour at Bell Drive with meaningful capacity available if needed, there being no reliance on third-party bulk flour. The consolidation of Bell Drive has also allowed us to meaningfully reduce that facility's cost structure. Taken together, these actions remove a persistent drag on Nevada profitability and position us to operate more efficiently as that market recovers. Those are the operational moves, the ones within our control. But for the first time in several years, the external environment is also beginning to shift in our favor. On March 18, the Clark County Commission passed significant new regulations targeting hemp retailers operating outside established compliance frameworks. cracking down on the sale of intoxicating hemp products and deceptive consumer practices. This is something Planet 13 has actively advocated for. For the past several years, we've watched unlicensed hemp operations proliferate across the strip, undermining both consumer safety and the competitive integrity of the licensed market. For years, that unlicensed proliferation, combined with the tourist headwinds in 2025, as Larry discussed, created real pressure on our Nevada revenues. These regulations are a meaningful step toward restoring the supply and demand balance this market desperately needs. The other significant regulatory development is the executive order from President Trump directing support for rescheduling cannabis. If rescheduling is completed, 280E, which has been one of the most punishing structural burdens on licensed cannabis operators, is automatically removed. We don't have a firm timeline, but for the first time, we have a federal attitude that is actively moving in the right direction. That has real implications for our balance sheet, tax decision, our cost structure, and earnings per share. It is the most consequential potential development the industry has seen today. After several years of navigating an increasingly difficult operating environment, tourist headwinds, illicit competition, and a federal framework that penalized license operators, we are finally seeing the regulatory landscape move in our favor. Clark County and rescheduling are both meaningful tailwinds. And on top of that, the California exit and Nevada cultivation restructuring remove an internal drag that we chose to eliminate. We are not waiting on any of them. The work we are focused on every day is what we can control. Growing our Florida footprint, improving product quality, and continue to drive efficiency through cost structure. The goal for 2026 is straightforward. Reach positive cash flow, demonstrate the earnings power of this portfolio, and deliver on the commitment we've made to our shareholders. Looking ahead, Q2 will be the first clean quarter that reflects our repositioned portfolio. No California drag, improving Florida productivity, and a cost structure that is being beginning to reflect the work of the past year. We expect that to be visible in the results moving forward. With that, I'll open it up for questions from covering analysts. Thank you.

Thank you. And we'll now begin the question and answer session. If you dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you're called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, it is star 1 to join the queue. And our first question comes from the line of Kenric Teide with Canaccord Genuity. Your line is open.

Thank you, and good evening. If I could lead off on a PHO-related question, it seems to be something of a moving target for reasons largely beyond your control, or at least certainly in quarter beyond your control. What gives you the confidence or perhaps the hope that you will have this resolved by the end of this quarter? And if it's not, how material is that to your outlook? It certainly reads as if there have been some other pretty material improvements in Florida you know, outside of the potential BHO list. So any additional color or context there would be really valuable.

Thank you. Yeah, I'll address the first part, and good afternoon. And, Steve, I'll let you address the financial side of it. From an operational standpoint, again, it's been a very frustrating endeavor. You know, we've discovered over the last six months that secure and timely approvals out of the OMMU in Florida is has been difficult at best. And I can't really comment on why that is the case. We're not the only operator in that predicament. But we have literally submitted every single document required for approval. We've met every requirement of the OMMU. And we've gone through a series of RAIs back and forth. In every instance, we've provided timely responses. So I think we're there. And I think it's just a function now of staff getting into the application and giving us final approval. And we're eternally optimistic that we're, you know, we've had multiple delays and, you know, so we're realistic in that regard. But, Steve, I'll let you address the financial impact of that.

Sure. And, you know, in addition to the BHO products, you know, we've also had a you know, a big focus on the flower quality, the higher THC strains. We've brought in some new strains that in particular grow well in greenhouse and our type of environment. We've had some third-party consultants go through that facility and optimize certain things. All of it is working in our favor. and helping bring the quality of that flower up. And, you know, we're learning a lot in the process. And, you know, all that stuff is going to, is bearing fruit as we go forward. And we're seeing a lot of that. And there's also a lot of other products that we're looking at with various licensing partnerships with some of our other partners that will start to come online this year. So there's a lot of new products that are kind of going to help contribute to that. Overall, Florida, even now, it's cash flow positive. It's contributing. I think, you know, the worst is behind us, if you will. I think the third quarter is really probably the low watermark there, and it's been the first quarter is looking a lot better, and we expect that's what we're going to continue. As far as, like, The actual revenue expected on DHO, it's hard to know at this point. So I'm hesitant to even throw numbers around. But, you know, it can only help having the additional products and in addition to the ones that I mentioned as well. Hopefully that answers.

Appreciate the call. Thanks, Steve. That does. Maybe just if I close the loop on my Florida questions. In terms of that Florida cultivation journey, I mean, you've highlighted improvements in yield, strain, strain availability, THC content, you know, all positives. Where do you think you are on that journey today and how much, you know, where do you think you're going? How far down the road are you? How far down the road have you come? How much more runway do you think you have until you sit back and look at Florida as being, you know, fully dialed? sorry, Florida cultivation being fully dialed, apologies.

Yeah, well, I mean, as far as our investment goes, I don't think there's anything more to do as far as investing money into the facility or anything like that. I think it's pretty dialed now, though, you know, it's tweaks. And as we go through and we discover which strains work better than others, you know, we go heavier in those areas, we bring in newer strains that we try and So this is going to be an ongoing evolution. You know, it's never really going to end. We'll always continue to look at processes and things that will improve it. But I think we're pretty satisfied with what's coming out of there now. And I don't know that there's a ton left to do there.

Appreciate the call. I'll get back in queue.

Thank you. Yes.

And our next question comes from the line of Pablo Zuanek with Zuanek and Associates. The line is open.

Thank you, and good afternoon, everyone. I mean, obviously, congratulations on the growth in Florida. I think you said $10.3 million in sales. That's about 35% sequential growth in the fourth quarter. So that's just a great number. And as you just explained, there's more upside into 2026. So I'm going to start with a bit of a follow-up to your prior question. But, you know, how quickly do you think you can start expanding SKUs, especially on the extract side of things with the WHO facility? How quickly can you start bringing in new brands or licensing other brands into the market? I'm just trying to understand how quickly you can move the needle there. Let's start with that.

Thank you. So, hey, Pablo. It's Bob. Good afternoon. Great question. Again, I'm not at liberty at this point to identify the parties we're negotiating with or where we are in the process on bringing additional products into the pipeline. But we've made significant progress. We've got a number of approvals pending with the OMMU now on different product varieties and SKUs. And, again, the bottleneck is just getting approvals out of the agency. And, you know, we're excited. We know that we'll have some exciting additional launches here at next quarter. And we're continuing to build on those relationships. I wish I could be more precise than that right now. But it is actually it's tracking well, we've had very positive reception from the partners we're working with. And they're, you know, excited to be in Florida, and we're excited to be partners with them. So all I can say is stay tuned. And again, we should have some announcements out to the market here shortly.

Thank you. And then in terms of store count, what can we assume for 2026 in terms of net growth of stores in Florida? You opened two in the fourth quarter. I think there's been some shutdowns or relocations. If you can just talk about the footprint in Florida for 2026 plans.

Yeah, Steve, I'll let you address that on the CapEx side.

Yeah. And I am excited about it. We are adding two additional stores that, you know, we're already under contract. One in Sarasota that is, it's already, it's in the middle of the sort of the TI construction phase. And we expect that to be online in a matter of, you know, a couple of weeks to several weeks, not months. And then the second one, is in St. Pete, and then beyond that, we're kind of in a, you know, kind of a wait and see on how that goes and how that lands, and then we'll go from there.

Okay, thank you. And then just one last one on Florida. Do you have any views in terms of where we are with the ballot process? I mean, we all read the same headlines. They've been somewhat negative recently. Any comments you want to make there? Maybe there's reason to be more constructive in terms of the way things play out in November. But what do you think about that?

Well, look, obviously, the headlines have been less than positive. You know, I think, unfortunately, I believe Truly's initiated litigation, one of the larger MSOs have, or the, you know, the Valid Initiative Organization, I'm not real optimistic in light of the decisions we've received thus far from the courts. It doesn't seem like I think there's a viable path. I think there's a lot of significant issues on whether the votes were correctly tossed out or not counted, rather, and these third-party noise with out-of-state canvassers. I wouldn't think the courts would give much attention to that, but unfortunately they have, and the Supreme Court is is really moved lockstep with, you know, with the governor's directives. And that's unfortunate. So there's not much time left here. So if something's going to happen, it's going to happen very shortly. We're going to miss the window to get ballot, you know, get the questioning printed on a ballot. So I wish I had more positive news. I'm just, I'm not excited where we are. Look, I still remain convinced that Florida will transition to an adult market. It may not be you know, this upcoming election, though, unfortunately. But we're going to continue to scale and to operate and get better every day and compete in the market we're in. Yeah.

Thank you. And then just one very last one. I mean, you've been very clear about what's happening in Nevada, and obviously about the sequential improvements, stabilization, you called it. Can you talk about any changes you've been doing more recently to the store, to the superstore itself, whether in terms of new services, assortment. I mean, we've heard before about the museum and the lounge and all of that, but have there been any new tweaks or initiatives to boost traffic to the superstore?

Well, yeah, look, so we are fortunate to announce and we have announced we have the cannabis what was originally a canister museum space completely under control. So that's back in our portfolio. We've been actively negotiating with several users about that space that would create an entertainment option for the complex. Again, I can't announce anything just yet, but we're very pleased with the discussions we've had, and we see that as a fantastic additive to the complex. You know, and again, with days, we've seen, you know, meaningful uptick there in traffic and revenue as we continue to promote the venue, get very high remarks from customers that have experienced the facility. So we're going to continue to do that. And then we've recently brought some enhancements into the facility itself, you know, just, you know, artistic photo ops. You know, we brought some of our materials up from the California location that we closed. in Santa Ana, and just create photo moments for customers, get them more engaged with the facility so they can share their experience with customers. And we've seen, you know, a real nice uptick there. And then also, you know, we do have the restaurant open again. We're using a third party contractor providing that service, but it's created, you know, we brought that amenity back, which has been very helpful and very well received by the customers. They like the opportunity to have not only food, but alcohol and cannabis under one roof. So we're going to continue to push that, market that, and we see good things. Yeah, that's great. Thank you. That's all. Thanks, Pablo.

And our next question comes from the line of Brenna Cunnington with ATB Cormark Capital Markets. Your line is open.

Hey, y'all. This is Brenna on the corner, and thanks for taking our questions. Just continuing on with Nevada and the Superstore specifically, if I remember correctly, last quarter was a record quarter for Days. Could we just get a little bit more color on how Days did this past quarter and any exciting things going on there?

Thanks, Brenna. Steve, I'm going to turn to you to address – you've got that on your computer there.

I don't have it up on my screen. Sure. Sure. Yeah, it's actually been really exciting to see that facility kind of blossom over the last, and I'll call it like six months now at this point, but it continues to exceed our plans. It's been a lot of fun for some of our partners and a lot of, you know, the customers to go in there for different events. And, you know, we've been having some fun with it and, you know, I don't know what more to really say is other than, you know, it's really nice to see that, um, that facility do well and be successful. And, um, I would say it's, uh, we're looking at about 25% plus, um, revenue increase versus, uh, versus last year at the facility. And I see that continuing for the foreseeable.

Amazing. Good to hear. So, like, in Nevada in general, like, it's good to hear that the wholesale momentum is starting to come back. But it was mentioned earlier in the call that you're not seeing the recovery in the state that would be needed to really move the needle at the service store. So, theoretically speaking, what would it take for Las Vegas to really come back?

Oh, boy. Brenna, that's a tough question. Obviously, at the macro level, we need gas prices to go down. We need room rates to become more affordable. And Las Vegas just to get more in line with what customers are willing to pay. There's a perception out in the universe that Vegas has become too expensive. And I think there's some merit to that in many respects. So I see some of the larger hotels now are putting together very, very significant discount packages to drive traffic. We believe that the short-term spike in gas will be short-term, rather, the spike in gas, which will benefit our continuing California traffic. But, you know, look, Vegas, the city, went through a very significant downturn last year, and as the economy continues to prove at a macro level, we see Vegas coming back in a very significant way. We've been through this many times over the years. We've seen ups and downs here in the tourist sector, and it's going to come back and it'll be as robust as ever. We've got several mega resorts, one mega resort on construction, so significant additions elsewhere, lots of traffic. We've got Major League Baseball coming soon. You know, the only professional sports franchise we're missing is the NBA, and my guess is something will be inked this year for the next franchise. So it's an exciting time, and we're just getting positioned to take advantage of that. Now, in light of the tourist drop, what we've done is repositioned to really go back and focus on the local customers here, and we've made meaningful inroads there. And unfortunately, you know, historically we were – You know, about 80% of our customer base through the Superstore was non-Nevadan. And, you know, that's had a pretty significant impact on revenue and traffic. But now we've gone back to the locals and really kind of pushed this venue as well as an opportunity for them. And, you know, we're seeing results of a pretty aggressive marketing campaign to get them to this facility as well. So, excited.

You know, maybe it's Larry Scheffler. I'll just add in that – Even though the tourism is down, I agree with everything Bob just said, but you got to realize we only touch 2% of the tourists coming to Vegas right now. So we have a lot of upside for us. What we've done, we've made major changes in our marketing department, in our social media outreach, stuff we've never done before. We had a little bit of, for about two years, had a fairly weak marketing and social media department. We've made major changes on people heading it and support groups working underneath the new director. We're very happy with that. And I think all of you guys will see major changes and increases for Planet 13 upcoming this year.

Okay, that's great, Keller. Thanks for that. And then just our final question is just looking at the margins, it's good to see that there's been a bounce back this quarter. So looking ahead and for modeling purposes, how should we be thinking about the gross margin and EBITDA margins in 2026, and what kind of cadence or margin build might we see throughout the year?

I'll take that. Sure. And, look, the heavy lifting is kind of complete as far as – reorganizing these cultivation facilities pulling pulling California out. You know, especially in the last quarter, and the trend that we were seeing there was was very negative. You know, in California, we saw a combined $1.7 million EBITDA loss. And so that was the that was trending toward $2 million a quarter. And we've removed that from So really excited to see what that does. You know, internally modeling this out and between that and what we've done in Nevada, we're expecting to see margins north of 50% starting in the first quarter. So really exciting versus, you know, where we've been in the last few quarters and having to battle through some of those challenges. From an EBITDA standpoint, you know, it's a little more challenging, but we are expecting a positive EBITDA full year. I'm showing a small loss in the first quarter as we've, you know, we've had basically half of a quarter of California still in those results. But beyond that, every quarter looks positive. You know, that's all I can really give you at this point.

Amazing. Thanks so much. I'll go back to the queue.

And our next question comes from the line of Ken Rittagi with Canaccord Genuity. Your line is open.

Thank you for taking the follow-up. Just a quick one on the hemp ban. It reads as if it's more material for you with your vagus concentration than for Nevada more generally. just given the prevalence or sheer number of, let's call them hemp stores operating in Vegas or on the strip, is that a fair characterization? And is there any way you could sort of handicap just how material that headwind has been and any potential sort of lift to the, you know, from that band looking through 26?

Okay, so this is Larry Scheffler. Bob and I have been working on getting rid of these intoxicating hemp stores on the Strip. As you know, licensed cannabis stores in the state of Nevada cannot be in the gaming corridor. About a mile either side of the Strip cannot deliver to the hotels. After two years worth of work with the Clark County commissioners that control Clark County and the Las Vegas Strip, last Tuesday, they finally passed an ordinance outlawing the hemp stores on the Strip. They cannot sell any THC intoxicating flour, gummy squares, or anything. In 120 days, that takes effect from last Tuesday. I spoke at the meeting, and we were in 2021, the state of Nevada did a billion dollars in sales for licensed cannabis dispensaries. Last year, we did $700 million. That $300 million is attributable to being stolen from us by the hemp stores on the Strip and in other areas in Clark County and Las Vegas. We have already paid a tremendous amount of taxes, three or four or five other taxes that the hemp stores do not have to, do not fall on, do not have to pay. It would be hundreds of thousands of dollars. So that is lost revenue to the state, the taxpayers of the state of Nevada. The Clark County Commissioner saw that, saw the dangers of mold and insecticides that is being sold on a strip with no testing whatsoever other than the 0.3 testing to make sure it's hemp and in the right amount of THC when it's first harvested. They saw through all of it. They did a lot of work on this, a lot of studies. They back to six to zero in the boat. And again, the hemp store selling these intoxicating hemp products on the strip will be done in 120 days. That's going to be a huge boom to us. We're predicting a million to $2 million per month. We've lost to the hemp stores on the strip because 81% of our customers are tourists. So that is another part that we anticipate a huge boom.

increase in revenue for us uh starting in 2026 a second half thank you so much it's a lot bigger tell and then i think perhaps many appreciate it uh really appreciate the color and with no further questions that concludes our question and answer session as well as today's call we thank you for your participation and you may now disconnect