That’s from the G&A side of this – in the marketing just one comment before I pass it back to Raj. You do see a significant drop there quarter-over-quarter, and that’s with the – it’s mainly driven by the e-commerce business. But again, it’s because we are taking the approach of consolidating how we do the marketing in all the different platforms. Is it going to be continue going down? I don’t believe so, but that’s mainly the optimization of the spent in that – in the e-commerce side of business, in the marketing question.
Raj Grover: Thank you, Sergio. And Andrew, I’ll answer the second part of the question. So yes, we’re excited that advertising and marketing spend has relatively gone down a little bit, but this is very much in line with what’s happening in our e-commerce business. We have two sides to the story. Luckily for us, 88% of our business, which is Canadian bricks-and-mortar, continues to march ahead, all guns blazing. But our e-commerce sales, which is ancillary cannabis businesses of CBD and consumption accessories, they’re definitely feeling those inflationary pressures. During these inflationary times, consumers are still prioritizing cannabis over pipes and bongs and CBD products that they can replace with turmeric and other nice supplements.
So as our e-commerce sales have slowed down, we’ve also meaningfully slowed down our advertising spend, which I believe was down by over a $1 million quarter-over-quarter. And we are being very, very carefully watching this number because again, our entire focus is making sure our business is operationally sound. If one side of the business is slowing down, we want to make sure our expenses are slowing down accordingly. And that is why you are seeing that big marketing and advertising drop. Now, as e-commerce picks up going forward, you may start seeing increases in advertising and marketing spend.
Andrew Partheniou: Thanks for that color. And just switching gears here and looking at your balance sheet. I think I see here $17 million in short-term loans and $6 million in short-term convertibles on the balance sheet. Could you talk about when those mature and how do you plan to address those maturities?
Sergio Patino: Yes. So let’s talk about the $17.6 million interest-bearing loans. That’s the term loans [with ConnectFirst]. The maturity of the two tranches, the maturity of both tranches are longer, but they’re [not current]. The maturity is two, three years, I believe, I’m sorry, I forgot. Five years, the maturity in five years. However, due to the loans are on demand, so they can call it at any given time because of the war. That’s the reason why we need to put it in current liabilities. But they don’t have any intention to call it. That’s why we don’t have any, so we put in current liability just because of the structure of the contract, but the ConnectFirst doesn’t have any intention to collect it at the moment. The second part of the question was related to the current portion, the convertible debenture. This is debt with private investors, and we are currently negotiating the terms and conditions of the contract.
Andrew Partheniou: Do you know when we should expect any kind of resolution to the convertibles so we can watch out for that?
Raj Grover: Andrew, we would have to look this up. I don’t think it’s – anything is a burning and pressing urgent issue on our balance sheet – related to our balance sheet. But we would have to look up the exact timeline on the convertibles and Sergio can get back to you.
Andrew Partheniou: Thanks for that. I’ll get back in the queue.
Operator: Thank you. The next question goes to Matt Bottomley of Canaccord. Matt, please go ahead. Your line is open.
