This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk02: ladies and gentlemen thank you for standing by my name is michelle and i will be your conference operator today at this time i would like to welcome everyone to the schwa's second quarter conference call all lines have been placed on mute to prevent any background noise at this time i would like to turn the conference over to joanne jobin please go ahead thank you operator greetings and welcome to the 2022
spk05: second quarter conference call and webcast for Schwoz. We are being hosted by Justin Dye, Chairman and Chief Executive Officer, and Nancy Huber, Chief Financial Officer. Following their presentation, management will take questions submitted via the web link found on Schwoz's investor relations website and in the earnings press release. I would also like to remind you that management's prepared remarks and answers to your submitted questions may contain forward-looking statements which are subject to risks and uncertainties. Examples of forward-looking statements include, among others, statements regarding federal and state legislation and regulation and Schwoz's future results of operations and financial positions. business strategy and plans, and objectives for future operations. Such forward-looking statements may be preceded by the words plan, will, may, continue, anticipate, become, build, develop, expect, believe, poised, project, approximate, could, potential, or similar expressions as they relate to Schwantz. Investors are cautioned that all forward-looking statements involve risks and uncertainties that may cause actual events, results, performance, or achievements to differ from those anticipated by Schwoz at this time. Additional information concerning factors that could cause events, results, performance, or achievements to differ materially is available in Schwoz's earnings release made available before this call and available on Schwoz's Investor Relations website and in Schwoz's Form 10-K for the year ended December 31st, 2021. In addition, other information is more fully described in Schwoz's public filing with the U.S. Security and Exchange Commission, which can be viewed at www.sec.gov, on www.cdar.com, or on the company's Investor Relations website. Also, Schwoz may discuss non-GAAP financial measures during today's call. A reconciliation of the differences between the non-GAAP financial measure discussed during the call with the most directly comparable GAAP measure can be found in Schwoz's earnings press release made available before this call and available on Schwoz's investor relations website. I would now like to turn the call over to CEO and Chairman Justin Dye.
spk01: Thank you, Joe. Hello and thank you for joining us this afternoon. I will provide a business update and our CFO, Nancy Huber, will review our quarterly financial results in detail before I conclude our presentation with some final thoughts. We will then be happy to take your questions. For the second quarter of 2022, Schwoz continued to outperform the market despite a challenging environment in Colorado. Our team has continued to nurture a vision of becoming the most admired key into this company by making a difference in our communities and providing trusted products, brands, and experiences that improve the human condition. Our growth plans remain on track and despite challenges for the entire industry, we maintain our conviction in our long-term plan of building a regional powerhouse, developing scale with a customer first approach, curating a distinguished house of brands that are driven by passion for innovation, craftsmanship, efficiency, and teamwork, and leveraging data analytics and technology to drive decisions. As we continue to navigate the lingering effects of the pandemic and now broader economic inflation, as well as a challenging environment in the Colorado market, our team members delivered a record quarter in terms of revenue growth, and adjusted EBITDA growth. And for that, I'm very proud. I would like to thank all of our team members for their commitment to our customers, hard work, enthusiasm, and their commitment to driving operational efficiencies. Since December of 2021, Schwoz has added 15 cannabis dispensaries to its retail network, 10 in New Mexico and five in Colorado, as well as five cultivation facilities. including four in new mexico and one in colorado one manufacturing asset in new mexico our accomplishments since december 2021 include on june 1st we announced the closing of the announced the acquisition of all assets of urban health and wellness which included an adult use urban dispensary located in Denver's Vibert Highlands neighborhood and 7,200 square foot of indoor cultivation capabilities. On March the 23rd, the company's common stock commenced trading under the symbol SHWZ on the NEO exchange, a tier one Canadian stock exchange based in Toronto, Canada. On February the 16th, we announced the acquisition of the assets of Brow2 LLC, a Denver-based cultivation asset which includes a 37,000 square foot building for indoor cultivation and equipment. In February, we also acquired the Emerald Fields brand. We own and operate our two retail cannabis dispensaries located in Manitou Springs in Glendale, Colorado. We officially became a regional MSO when we acquired the New Mexico operating assets of Reynolds Greenleaf and Associates, LLC, and the Equity of Elemental Kitchen and Laboratories, LLC. And we also strengthened our New Mexico management team. This transaction included 10 Greenleaf licensed medical cannabis dispensaries, the R. Greenleaf brand, four cultivation facilities, three operating, one in development, and one manufacturing location. In late January, we announced the acquisition of the assets of Drift, which consists of two cannabis dispensaries located in Boulder, Colorado. We continue to develop our decentralized operating system that fosters local management oversight, agility, efficiency, and responsiveness to our customers and local communities. Most importantly, we continue to build out our house of retail brands, adding them on fields, in our green leaf dispensaries and expanding the purple bees date brand in both Colorado and New Mexico. Last quarter, we also announced a license agreement with Low Farms to manufacture and distribute Low Smokes, a premium line of pre-rolled joints, to dispensaries statewide in both Colorado and New Mexico. We expect to begin sales to commence in Q4 of this year, 2022. We continue the construction of our Colorado distribution center as part of our retail wholesale playbook expansion, which is expected to be operational in Q4 2022. On April the 1st, 2022, Schwarz commenced selling both recreational and medical cannabis in New Mexico. We can report that New Mexico sales have increased 30% over prior years, quarter two, for the same store sales. We are pleased with these results and continue to see sales growth month over month. We have plans to open additional stores throughout the state this year and next, adding coverage to areas where we currently do not have dispensaries. Our revenue for Q2 totaled $44.3 million compared to $30.7 million in the same quarter 2021, representing an increase of 44%. We generated net income for the second quarter of $33.8 million compared to net income of $4.4 million for the comparable quarter in 2021. The company's adjusted EBITDA for the quarter was adjusted EBITDA for Q2 2022 was $15 million, representing 33.9% of revenue. We're also pleased to report that despite industry pressures, Retail sales were $38.1 million up 77% compared to the same period last year. Colorado two-year stacked IDs for Q2 2022 compared to Q3 2021 and 2021 sales were 1.8% and one-year IDs were down 0.7% compared to Q2 2022 to Q2 2021. The basket size for Q2 was 59.98, or down 4.1% compared to Q2 2021. Recorded customer visits for Q2 2022 totaled 444,771, down 8.9% compared to Q2 2021. New Mexico two-year stacked IDs for Q2 2022 compared to Q2 2021. of 2021 and quarter two of 2020 for same-store sales were up 41%, and one-year identicals were also up 30.4% when comparing quarter two 2022 to quarter two 2021. Average basket size for quarter two was $54.56, down 12.7% compared to quarter two 2021. Recorded customer visits for quarter two 2022 totaled 209,591, up 49.4% compared to quarter two 2021. While basket for both Colorado and New Mexico were down quarter over quarter, distributed really attributed to macro events in previous year's stimulus spending and inflation, we're pleased to report that we once again outpaced the state of Colorado for the quarter by 11%. I think this is a remarkable achievement when you consider the challenges faced by the industry at this time. As stated in our reported last quarter, we believe that we will continue to cycle COVID-19 retail numbers for the first half of this year, and we'll anticipate growth in Colorado market to continue to be challenging the rest of the year due to increased cultivation capacity in the state. which has resulted in oversupply of wholesale cannabis biomass. However, we are benefiting from the recreational market in New Mexico, which assisted in offsetting that slower growth. The quarter generated approximately 86% of our revenue from retail. We expect the contribution from the retail segment to continue to grow as we add to our dispensary count and see additional growth in recreational sales in New Mexico. Through the implementation of our operating playbook, we continue to effectively contribute to growth and efficiency at our manufacturing and retail locations. In retail, we continue to review our product categories, aligning product assortment across our dispensaries, and working with our vendors to promote products and work with our vendors to recognize savings as we move to a DC model in Colorado. We have re-bannered the drift and the smoking gun stores to Emerald Fields and Starbucks and completed remodels in the drift dispensaries. We expect the smoking gun location remodel now re-bannered at Starbucks will be completed this quarter. All three dispensaries are experiencing increased revenue and traffic that we attribute to these activities. As for the federal and state government laws regarding cannabis legislation, we can now report once again that there has been no significant movement or changes on the federal acts basis. We believe we're positioned to take advantage of any positive movement in federal legislation. And on a positive front, more states continue to legalize both medical and adult use cannabis. As always, we'll stay close to federal and state changes that would impact our industry, and we believe we're poised to succeed in that as things change. We will continue to evaluate additional opportunities across the cannabis industry in the areas of cultivation, manufacturing, and dispensaries in both our home states and others. Our current criteria for potential acquisitions includes Revenue growth or growth potential that exceeds the applicable state's averages. EBITDA profitability with synergy opportunities. Attractive acquisition prices that are accretive to our shareholders. Provides high quality branded products in attractive retail locations. Any announcements regarding expansion intentions will be made once we've reached definitive agreements with prospective partners. And now I'd like to turn the discussion over to Nancy Huber to continue our financial review. Nancy.
spk06: Thanks, Justin. I'd like now to review our financial results for the second quarter of 2022. As Justin mentioned earlier, SWAS reported revenues of $44.3 million, an increase of 44% compared to $30.7 million in the second quarter ended June 30th, 2021. The revenue for the quarter included retail sales of $38.1 million, wholesale sales of $6.1 million, and other operating revenue of $44,000. As a reminder, we added Emerald Fields, Drift, Brow 2, and New Mexico in late January and mid-February this year, as well as the recent Urban Wellness asset purchase, which closed in June. In addition, New Mexico added recreational sales in Q2 of this year. Much of our revenue growth this quarter over prior years due to these acquisitions and the change in regulation in New Mexico. Wholesale revenues decreased due to an oversupply of wholesale cannabis in Colorado, driving down pricing and overall decreases in the Colorado market. Total cost of goods and services for the quarter totaled $19.1 million, compared to cost of goods and services of $15.8 million for the same quarter in 2021, representing an increase of $3.3 million, or 21%. The increase in cost of goods is driven by the increase in revenue, however, not at the same rate. In the quarter, the company experienced a reduction in cost driven by vertical integration and third-party price negotiations. Growth profit increased to $25.2 million for the quarter compared to $14.9 million during the same period in 2021. Growth profit margin increased as a percentage of revenue from 48.5% to 56.8%. And net of purchase accounting, the growth margin increased to 57.4%. This positive result, net of purchase accounting, continues to reflect our consolidated purchasing approach, the implementation of our retail playbook, and the vertical product sales in New Mexico. Operating expenses for the quarter totaled $16.1 million compared to operating expense of $10.5 million during the same quarter in 2021, representing an increase of $5.6 million, or 54%. This increase is mainly due to increased selling, general and administrative expenses, professional service fees, salaries, benefits, and related employment costs driven by growth from the acquisitions. Other income for the quarter totaled $29.2 million compared to $0.2 million for the comparable quarter in 2021. Representing an increase in income of $29 million, or 18,435%. The increase in other income is due to the revaluation of the derivative liability related to investor notes offset by higher interest payments. The company generated net income for the quarter of $33.8 million compared to net income of $44 million in the same quarter of 2021. Basic earnings per share were $0.65 for the quarter, versus $0.10 for the prior year's quarter, and diluted earnings per share were $0.24 for Q2 of 2022 versus $0.08 for the prior year. Adjusted EBITDA for the quarter was $15 million, representing 33.9% of revenue, compared to $10 million and 32.6% of revenue for the same period last year. This is derived from operating income and adjusting one-time expenses, merger and acquisition and capital raising costs, non-cash related compensation costs, and depreciation and amortization. See the financial table for adjusted EBITDA in our press release for the details. For the six months, the company used cash for operations of $8 million compared to generating cash of $1.4 million for the same period in 2021. Schwoz currently has cash and cash equivalents of $33.9 million at the end of the second quarter, and we expect to generate positive cash flow net of acquisition costs for the year. Turning now to the outlook for 2022, our Q4 2022 run rate projected revenue guidance was revised to reflect the current industry challenges. Guidance for a fourth quarter annualized run rate including transactions that are announced but not closed, is now projected to be approximately $175 to $200 million. And the projected fourth quarter adjusted EBITDA annualized run rate is projected to be from $60 to $72 million. Our Q4 results are usually affected by seasonality, with Q4 being one of our lower revenue quarters, and our guidance reflects that. Despite the industry pressures, we remain optimistic that 2022 will continue to be another pivotal year as we integrate and synergize our recent acquisitions and continue our expansion and M&A plans. Thank you for your time today, and now I'm going to turn it back to Justin, who will open the call to questions and answers.
spk03: Okay, so I'm going to open up the Q&A as I'm going to be moderating.
spk05: The first question is, and I'm going to swing this over to Justin, and I hope he's still on the line. Sounds like he had disappeared there. How many acquisitions since the new year or the acquisitions closed? Justin, are you there?
spk01: I am here, Joe. Sorry, I had everybody on mute. My apologies.
spk05: No worries.
spk01: I wanted to thank everybody for their continued support and interest in Schwoz. It's a great, you know, it is a great industry and we're having a little bit of challenges in our home market of Colorado, but the team is executing very, very well and we continue to grow market share and execute at a we're very bullish on Colorado and we're bullish on New Mexico and continue to grow, um, versus our plan. So, uh, with that, we, uh, we are number one in Colorado. And as we continue to, you know, continue to acquire things since December of 2021, Schwoz has acquired or announced the planned acquisition of 16 cannabis dispensaries, as well as five cultivation facilities. and one manufacturing asset in Colorado and New Mexico. In the first quarter alone, we closed 14 dispensaries and one in the second quarter. We continue to have a good pipeline. However, as you can see, by the past year, reviewing and announcing closing acquisitions takes time. In our case, they all closed literally within the same quarter. We continue to look forward to expanding both in Colorado and in New Mexico. And as I said, our pipeline is very healthy and our investors should continue to expect us to announce acquisitions and grow organically with new stores, new products as well. I'll turn it back to you, Joe.
spk05: Thank you, Justin. Okay, next question. And I can hear you smiling from here, Justin. How do you keep outpacing the state results in Colorado? That's six quarters in a row now, quite impressive considering the state is down once again.
spk01: You know, we actually outpace the state by 11% this quarter, and that's really our dashboard to see are we growing versus the backdrop of our market. And proud to say the team did a nice job this quarter. We're going to continue to focus on that. You know, we're executing a proven strategy of going deep, staying focused, acquiring very good businesses that are accretive, and we're very diligent on getting the right synergies and launching products. And that strategy works, and it has worked over the last couple of years since we've been working with Schwoz. You know, the team's applying good old-fashioned execution, and doing what they say they're going to do, and proud of that, both on the manufacturing front, wholesale front, and also on the retail front. And we'll continue to work on our playbook. We see a lot of upside and a lot of efficiencies that are available to us to make the business stronger and better, and we're looking forward to the rest of the year here. So I'll turn it back to you, Joe.
spk05: Thank you, Justin. Nirav, here's one for you. Wholesale numbers continue to go down. Can you comment on this market?
spk00: Thanks, Joanne. Yes, in Colorado, I think you're referring to Colorado. In Colorado, the wholesale market is distressed this year, primarily due to oversupply in cultivation last year, which resulted in and oversupply of distillate. Obviously, that has driven the market down in terms of pricing, and we are feeling the effects of that on the wholesale side. However, it has helped us on the retail side with margins. So we believe that over a period of time here, this will settle down and the pricing will stabilize over the course of the next 12 to 18 months here. And we believe it will be back to a new normal. It may not be as high as it was before, but it will definitely be higher than what it is today. Clearly what we are doing is focused on reducing our operating costs and the manufacturing and cultivation to ensure that we have the best quality products at the lowest price possible so that we can ride through this market here. Back to you, Joanne.
spk05: Thank you, Nirup. Obviously, we've got a lot of questions on guidance this quarter as we revised our guidance downward. Nancy, do you have any additional color on that question?
spk06: Yeah, thanks, Joanne. So, we did restate our guidance down to $175 to $200 million in revenue. We have seen the Colorado market be more challenging than we had originally anticipated for this period of time, so we adjusted for that. New Mexico is a little bit slower than we anticipated in the start, although as was said, we've continued to see those numbers increase month over month, so we believe we'll hit our eventual target, but whether we're there by Q4 or not, I think it'll take maybe a little bit longer. We are planning to open a number of stores down in New Mexico as well, and those probably just won't be up to the run rate we had anticipated in Q4. So that's part of what's adjusting our guidance downward.
spk05: Thank you, Nancy. And while I've got you here, let's talk about cash flow. It tends to be a big topic. Do you have enough cash, and are you generating cash?
spk06: Yes, so we expect to generate cash flow net of acquisitions this year. The first half has been negative, but we anticipate the second half will outpace that and therefore will be positive for the year. We're focused, as everybody is, on making sure that we're right-sized in our SG&A area. And so we've been very judicious in investing in those areas as well as in capital, taking a good look at our capital um, strategy spending for the rest of the year. And we've cut back a little bit on that, but not significantly. Um, just enough, um, you know, in areas where we felt the return wouldn't be felt quite as quickly. So, um, you know, we've, we've made some adjustments there. Um, but the balance sheet is strong and we have ample liquidity. Um, and as I said, we'll drive positive cash flows net of acquisition for the year.
spk05: Excellent. Thank you, Nancy. And I'm going to swing it back over to Justin. Justin, perhaps you can speak to inflation and how that is impacting sales or is expected to impact sales for the remainder of the year.
spk01: You know, I think as, you know, when we think about the U.S. consumer and we think about our consumers in Colorado and New Mexico, we see a little bit of price pressure at retail. We've invested in flower pricing recently. Lowered that. We've had some hotter promotions and certainly being competitive with the market. But I would tell you, we still really believe cannabis is recession resilient. That means that you won't see a little bit of trading down, but I think it's a very safe sector for us to be in. People are focused on the category. It's important to them in good times and bad times. And I think we're going to be fine. I think labor is still very strong, so it's sort of a mixed environment. But what we're seeing is, certainly on the oversupply side in Colorado from growers, we've been able to work through that and really use that to our advantage on the retail side. And we've been able to drive more productivity, meaning drive more efficient fees and more costs out faster than, you know, we've seen any issues there on the cog side. We haven't seen any inflationary pressure whatsoever. So, anyways, I would say, you know, the industry's well-positioned. I think the team did a nice job of continuing to work on SG&A and efficiencies and driving lean processes and taking costs out of the business. And I think we'll be set up for – I think we're going to have a very good second half of the year. And, you know, the good news is we don't. We've got a very good balance sheet, and we really don't need to tap capital markets, either equity or debt, for some time so we can wait out and kind of see how the environment evolves over time, particularly capital markets.
spk03: Excellent.
spk01: Thank you, Justin.
spk03: Thank you.
spk05: Nirup, I'm going to swing this one over to you. Now that you are fully vertical with grow operations, can you discuss how you expect this to impact your sales and products going forward?
spk00: Yeah, in Colorado, again, we secured cultivation farms this year, and we are starting to infuse some of the products, some of the flour from our grows into our own store. Our strategy is pretty simple. Grow the best flower and have a portion of our assortment through internal means. In addition to that, we will be developing products both in flower and on the CPG side over the course of time, again, to diversify our product portfolio. and take it to both our retail and wholesale markets in Colorado. In New Mexico, we're already fully vertically integrated. The acquisition we made was fully integrated, and pretty much all our products in our stores in New Mexico come from our own manufacturing and growth facilities.
spk05: Thank you, Nirup. All right, Nancy? Here's a question for you. The improvements that you've seen in product margins and revenues continues to be impressive. Do you think you can continue this trend?
spk06: We are very focused on driving product margins. You know, revenues in the short term are going to be challenging as growth is not as exciting in this area as we wanted it to be. and you're seeing some pressure on that. But in terms of product margins, we're really focused on the verticalization in Colorado and helping push that margin through our chain, as well as working with our supply side vendors to reduce costs as well. And so we anticipate that we will have margin available to us. Now, whether we actually take that to the bottom line or we use that to drive growth through pricing, So we'll depend on the situation, but we believe we'll be driving improved costing in the system that will allow us to be flexible in the market because of that.
spk05: Thank you, Nancy. And now we've got a question regarding, I would say, inflationary pressures and also the COVID aftermath. has there been any challenges with hiring staff? Have you had to increase wages to be competitive? And if so, how will that impact operating results? Irv, why don't you take that one?
spk00: Yeah, so hiring in this environment is always a challenge, but we have been lucky so far. We have had good retention, and we have not had to significantly revise our pay structure in either retail and or grow operations. But, you know, as we look at the market and make sure that we are in line with market, we may make some adjustments in the future, but we have had a good labor workforce. We are over 725 people in the company at this point in time, and we – We are very focused on ensuring that they have a productive work environment and are happy working here at Schwarz.
spk05: Thank you, Nirup. And I know you've answered this question before, Nancy, in a roundabout way with your other answers, but this question always comes up. What sort of opportunities are you seeing in regards to refinancing your current debt?
spk06: Yeah, so we're constantly talking to people. In fact, my treasurer just walked in today and said she thought there's another group out there that we should be talking to. So we're constantly talking to groups about opportunities to refinance. As everyone's aware, the interest rates are going up. So finding anything that will make sense for us in the short term may not be possible, but we're always looking for opportunities. As Justin inferred, none of our debt is coming up for payment in any rush. We have two to three years on all of our debt. Like I said, we're constantly shopping, and if the opportunity arises, we will take advantage of it.
spk05: Excellent. Thank you, Nancy. We have someone that's got some questions in regards to products. In particular, Lowell Farms and the relationship that we have and what product lines we intend to carry. They have a new product line called Lowell 35s, but that requires a special machine. For example, how would they allow their partners to use that machine or would they fear that we would take advantage and lose the IP or at least the competitive advantage? When can we expect more acquisitions? and how many by the end of the year? So it's a two-part question.
spk01: Why don't you handle the Lowell Farms component, then I'll talk a little bit about the acquisition side.
spk00: That sounds good, Justin. So we have an agreement with Lowell Farms to be the exclusive distributor of a few of their SKUs in the Colorado and New Mexico market. We have in this first round, the SKUs that we are launching are essentially they're pre-rolls. We have the singles, which is a one-gram pre-roll. We have the low quicks, which is, again, a three-and-a-half-gram minis or dog walkers, as we call them, which is a 10-pack. And then we also have another three-and-a-half-gram SKU called Lowell which is a one-gram pre-roll. And so those do not require any special equipment from a customer standpoint, but Lowell has provided us with all their SOPs in terms of how to produce, and they've been very, very cooperative, and we are happy and excited to be working with them and launching their products here in Colorado and New Mexico shortly, so beginning fourth quarter here. Justin, back to you.
spk01: Yeah, thank you. You know, we're really continuing to operate and execute against our strategy, and we're going to continue to look for product opportunities where we can partner with great brands like Lowell Farms. We're going to continue to look at dispensary locations to continue to build out the state. And just to remind everyone, we have You know, we have 23 stores in Colorado and there's more than 600, uh, adult use, uh, canvas dispensaries in the state. So we have a lot of room for growth and we're going to continue to do what we have been doing and finding really good locations and, uh, using our playbook to brand them and bring our products and bring in great assortment and service to do that. And we're doing the same thing in New Mexico. We have a handful of stores that we will be talking about and making public as we open some new stores down in New Mexico this year, as well as we're looking at acquisitions. So we're going to stay focused on these two areas and continue to deepen our product capabilities, deepen our dispensaries, and being able to serve the market in the We're going to continue to do that, and then we'll look at if there's other regional opportunities down the road that make sense with our strategy and make sense from a geographic focus standpoint. We'll look at other states down the road. But right now, we're going to continue to do what we're doing in Colorado and New Mexico, and there's plenty of growth in those two areas for us to continue to grow the company. So that's the game plan.
spk05: Thank you, Justin. And as we're hitting the quarter of an hour mark, we're going to start wrapping things up. We do have one more question. This is a question that comes up on every conference call that we do. And that is, what is the plan for the company in three to five years? Where do you expect to be? Could a buyout be in the works, Jonathan?
spk01: You know, we don't, we really don't talk about, you know, speculation and around deals and uh things like that but what i would say this as you know for our team members for our management team for our board and for our investors you know we have we have a very attractive company we're going to continue to make it better and stronger and continue to get closer and closer to our wholesale customers and continue to get closer to our retail customers And we think that creates tremendous value. And we think brands are built at retail locations. And we think retail locations are incredibly important in building brands and driving stickiness to customers and really building a great company. So we're going to continue to focus on that. I think in the next three to five years, you can certainly see us being a regional operator and continuing to acquire and grow organically and do that in the markets that we serve i think we certainly are welcoming a safe banking move at the federal level basis we think that would give us a lot more freedom and frankly takes cash out of the stores which is uh very dangerous uh for our associates so we think that's that's a good move and then you know we may be able to list in the new york stock exchange or the NASDAQ down the road, and that would give us more presence and more liquidity and more visibility. Certainly, we could continue to acquire things and stay on the platforms or stay on the stock exchanges we're in today. You know, I know this. If we continue to build a good company that's focused on customers, that has a great management team, and we create great opportunities for our team members, and taking care of customers. All of that just continues to work together. And we're going to create something really valuable. And how we monetize that, how that gets, you know, whether we merge with someone or buy someone or take it up listing to one of those other exchanges, we don't know. But we're open to exploring that. But we're going to continue to focus on what's been successful for us and I expect us to have a really good rest of the year, and we'll continue to do that until we get some federal help. And when that happens, we'll be ready to take advantage of it.
spk04: Joe, do we have anything else? Excellent.
spk05: Thank you very much, Justin. I was going to ask you if you had a few final remarks before we ended the call today, but I think you pretty much said it all in that last question. You said it very well, as a matter of fact. So with that, I would like to thank everyone for joining us today. And if you have further questions, please feel free to submit directly to me. at info at schwoz.com. This now ends the conference call for Schwoz.
spk03: Good day, everyone. Ladies and gentlemen, thank you very much for your participation. We ask that you please disconnect your lines.
Disclaimer