Joanne Jobin: Thank you. All right. We are almost at the top of the hour. We’re going to be wrapping it up very soon. One more question. This is for Nirup or Forrest. Can you comment further on the impairment of goodwill and the impact on your P&L?
Nirup Krishnamurthy: Okay, Joanne, I’ll take that and Forrest, you can chime in if needed, as we looked at all our operations, one of the decisions we made was to I guess focus more on our core business and less on the non-core businesses, which is basically the consulting business, our success nutrients business, and our Big Tomato business, which is essentially is a supply kind of system for cultivation. And as part of that we decided to take write downs on our goodwill, on our balance sheet to really focus going forward on our core businesses. So that essentially is the main reason for the impairments you’ll see in our results. So it did not have a material impact on our P&L or EBITDA was just fine. I think it is more of a net income exercise and a balance sheet adjustment.
Joanne Jobin: Forrest, do you have anything to add?
Forrest Hoffmaster: No, I think it was just that when you look at the retail segment of overall operations, I think retail sales were at about 89% in total. And so this was just the opportunity to look at where we were with some of the other areas of the business that needed to be looked at a little harder. And so we’re turning all the attention to the retail cultivation manufacturing side of the business. And I think Big Tomato and Success Nutrients is just reflective of what’s happening in the overall cultivation market. It’s our non-cannabis wholesale area. And so yes, just as Nirup said, it took the area to look at that right off the practice and move ahead with a clear balance sheet that reflects our future operations.
Joanne Jobin: Thank you, Forrest. And I’m just going to quickly take a few online questions here, and before we wrap it up. We’re getting a lot of questions about the Colorado cannabis market and the pressure it’s been under and perhaps the gentleman can give some color on your current view of the cannabis market in Colorado and where it’s going?
Nirup Krishnamurthy: Okay, I’ll take that. In a Colorado market, as I mentioned in the prepared remarks is seeing pricing pressure both on the wholesale side, which obviously has affected retail pricing in other competitors. So we’ve had to match that. And you will see that a bulk of our year-over-year shortfall in revenue last year was due to pricing and not due to volume. So, we are selling our sell through rates have been very strong in terms of units sold. And so it is primarily come down to oversupply of flower in the market. And so what we are seeing recently though is that a bunch of cultivation farms are starting to shut down. The number of licenses has come down 9% in the last few months. And where we expect the €“ sort of the market to bounce back in a period of time, but I just think it’s going to take some time for the market to come back as the inventory kind of flushes out through the system.
And I think it’s going to take most of this year to flush that out. But I do believe long-term Colorado is going to €“ is a pretty healthy market. We got high volumes and once we go through this cycle and we get out of this over supply, I think the market’s going to come back steady and strong over the next several years. So that’s the way we look at it. And having said that I also believe we are seeing the market rates, on flowers starting to steady out a little bit. These are rates published by the state and while I see pressure continuing this year I see long-term the market coming back.
Joanne Jobin: Thank you. All right. So that’s about all the questions we have for today, or we have time to answer today. We are at the top of the hour. Justin, do you have any final remarks before we do end the call?
Justin Dye: Yes, I do. I would thank all of our customers, and shareholders, our team members. Now this tough business requires retailing in the cannabis industry taking care of the customer patients is top of mind today in Colorado team members. And I’m really proud of the team. We think we had a great year last year in really tough conditions in Colorado, New Mexico is really the system there is being built as we go. And our team has done a good job at navigating that and really making sure we stay compliant and really advancing safety and compliance for the entire industry in both of our states, which is very, very important for the industry. And we’ll remain optimistic for future regulation and perhaps some federal help.
But in the meantime, we’re in great shape to continue to thrive until we get that. And I just appreciate everybody hanging in there. It’s a tough time from a capital market standpoint and shareholders appreciate our team, retain with us, and I think there’ll be good times ahead of us. So thank you and thanks Jo for facilitating, and we’ll look forward to talking with all of you soon. Thanks a lot.
Joanne Jobin: Thank you, Justin, and thank you, Nirup and Forrest. I would like to remind everyone that this webcast is available on the Schwazze website. And once again, thank you everyone for joining us this afternoon for the Schwazze quarterly webcast.
