urban-gro, Inc. (NASDAQ:UGRO) Q1 2024 Earnings Call Transcript

Brad Nattrass: So overall in Germany is slow and steady, right? If they’re just coming into themselves, they made that announcement a couple of months ago with social licenses to start. So there’s no requirement for the design and or build a significant sized facilities. Overall in Europe for us, the demand is — remains weak. We talked on the last call about rightsizing the organization in Europe, aligning the expense structure with the size of the opportunity right now. That all being said, we believe we’ve right-sized that there’s definitely business. It could be had in Europe. We want to be a part of the European cannabis and also in the future vertical farming market, it’s going to grow a lot from a cannabis standpoint, a lot of the CEOs of multistate operators who are expanding into the European market have significant forecasts for where that market’s going to grow over the next decade.

So we know we want to be there. That being said, in Q1, there was no additional new contract signed in Europe. However, we did have a nice services contracts signed in Q2 so far. So, we expect to continue signing contracts, but we don’t expect any robust material improvement in the business throughout the remainder of the year.

Eric Beder: Okay. All right. Thank you, and congrats.

Brad Nattrass: Thank you. Appreciate it.

Operator: Thank you. There were no other questions at this time. And that does conclude today’s conference. You may disconnect your lines at this time. Have a wonderful day. Thank you for your participation.