Plus Products Inc

you for standing by and welcome to Plus Products' third quarter earnings conference call. At this time, all participants are on a listen-only mode. After the presentation, there will be a question and answer session. To participate on that portion of the call, simply press star 1 on your telephone. If you require any further assistance, please press star and 0. I will now hand the conference over to your speaker today, Mr. Cole Stewart, Investor Relations Manager. Please go ahead, sir.

Thank you, Operator. Good afternoon and welcome to the PLUS Products third quarter 2020 financial results conference call. A replay of this call will be archived on the PLUS Investor Relations website at plusproductsinc.com. Before we begin, please let me remind you that during the course of this conference call, PLUS's management may make forward-looking statements. These forward-looking statements are based on current expectations and are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. For more information on the company's risks and uncertainties related to these forward-looking statements, please consult the company's MD&A and other regulatory filings available at CDAR.com. Any forward-looking statements should be considered in light of these factors. Please also note any outlook we present today is as of today, and management does not undertake any obligation to revise any forward-looking statements in the future. Any references to market share or market growth from third parties during the prepared remarks have been cited in our news release disseminated this afternoon. In addition to the financial information presented in this call, please review the company's third quarter 2020 financial statement and associated notes filed on the company's CDER profile at www.cder.com. With me today on the call are Mr. Jake Highmark, co-founder and chief executive officer, and Nathan Pearson, chief financial officer. With that, I'd like to hand the call over to Jake.

Thank you, Colt. First off, we hope that everyone is staying safe during these holidays. Our highest priority at PLUS continues to be protecting the health and safety of our employees, our customers, and our partners. For detailed information on the steps we have taken in response to COVID-19, please visit plusproductsinc.com slash coronavirus. Now onto our highlights for the third quarter. At the outset of this year, we detailed our goal to set PLOS on a clear path towards profitability. We knew that in 2020, in this cannabis industry, companies would be defined by their ability to effectively transition from growth at all cost strategies to ones that allowed companies to capture sustainable growth while leaning on a foundation of solid fundamentals. We believe we have made that transition at PLOS. During the quarter, our gross margins reached 40%. more than tripling over the same period last year, further demonstrating our operational improvements. We consumed less than half a million dollars in cash and achieved our first EBITDA-positive month adjusted for stock-based compensation in September. While we still have work to do to reach consistent, robust profitability, we believe the progress we have made this year has been substantial. The company is on course to consume roughly half as much cash in all of 2020 as it did in the third quarter of 2019 alone. Commercially, we took significant steps in expanding our product portfolio in both size and purpose with two new product launches in the quarter. We delivered the most concentrated cannabis gummy in the California market to consumers with our High Cubes product line, a launch that was followed shortly by the introduction of our first line of sleep-focused THC products. A majority of consumers looking for cannabis-centric sleep aids are still unsatisfied, a finding made clear by the success of Plus Sleep, which sold into over 200 accounts during the first two months following its launch. While sales in the third quarter were not as robust as the first half of the year, we believe the short-term slowdown in growth, mostly attributable to a wholesale price increase on our core product line, will be well worth the improved unit economics and long-term sustainability of the Plus brand on shelves. Despite an increase in competition across California and within the gummies category specifically, Plus continues to demonstrate its ability to dominate key markets, claiming a leading 25% of the gummies category in the Bay Area alone this year, according to Tree's market data. With an increasingly expansive product portfolio aimed at reaching consumers across all cannabis use cases, Plus is ramping investment in its California sales organization, in order to expand account penetration and market share across the state. We believe these efforts will be amplified by the continued growth of the California cannabis market. According to Arcview's State of Illegal Markets, the adult use market in California is expected to grow by more than $3 billion over the next four years. With a projected market size of $7.2 billion in 2024, California is expected to be larger than the next four largest projected U.S. markets combined. Those markets are Colorado, Florida, New York, and Michigan. While we remain exceptionally bullish on our California prospects, we will continue to deploy resources into the businesses we have built in the Nevada adult use and national hemp CBD markets. In Nevada, despite manufacturing complications during the initial wave of COVID-19 restrictions, PLUS achieved over $1.5 million in retail sales during its first year on shelves, while maintaining a spot as a top five brand in a market with over 50 competitors. Turning our attention towards 2021, PLUS will look for opportunities to expand our footprint beyond California, Nevada, and hemp CBD. We will continue to prioritize depth over breadth in building market presence, but the acceleration of cannabis markets across the U.S. cannot be ignored. With expected profitability on the horizon, over $12.5 million in cash on hand, and one of the leading edibles brand in the industry's largest legal market. We believe Plus is poised for continued growth over both the short and long term. With that, I'll now pass the call over to Nate to go over our financial results in greater detail. Nate, please go ahead.