Dick Akright: Understand, Brian, completely on the question and what we have insight into and haven’t said anything on goes to kind of our sales funnel, which we don’t talk about. But there are a lot of projects in the sales funnel getting ready to, in our mind, come to fruition, that would be announced when those are signed. Clearly, a substantial amount of the revenue that we’re talking about for the fourth quarter is going to be from a construction perspective. So as those larger projects get signed, there’s a lot of work that can be done on those projects upfront. So completely understand from the question that you asked and that you might not necessarily see it in the backlog that we’re reporting as of the end of September. But with our insight into the funnel, we’re highly confident that, that revenue is going to be there.
Brad Nattrass: And Brian, I’ll add to the back of it. In the third quarter, we retired 27% of our beginning backlog. And so now looking at entering the fourth quarter with $84 million, if we’re able to maintain that proportion of what we recognize in the quarter, it shows the other side of what Dick was talking about in terms of the confidence level of where we’re starting and then you add with Fix discussing on what we’re anticipating to top it off in order to hit the $30 million market.
Brian Wright: Great. And then are there any other things that are part of that are just details like Ohio approval for adult use, things of that nature like that you could point to as well?
Dick Akright: For Ohio, fantastic, right? For the industry, another state legalized by the time they get the regulations in place, you’re probably looking at third quarter of ’24. So for us, it would be great. We were talking to clients ahead of time. They would start, hopefully, to move forward in more serious discussions with us. But I touched on it a little bit earlier. For us, we don’t need the entire industry to turn around, like, of course, we’re fully supportive in pulling for rescheduling and safe banking, et cetera, to pass. But for us, we have a lot of clients in these states that just have regulatory delays. And they are funded. All they need is a license and the funding will be released, and they move forward to the construction side.
So very optimistic, the states like New Jersey is rapidly opening up now. Hopefully, New York won’t be too far behind. And when they do open up and they award the licenses for us, we can’t guess because it could take a week or it could take three months. But as soon as they open up, and we sign those contracts, we’ll definitely want to get them out and announce them for sure. But we don’t have to wait for an overall industry turnaround to successfully generate significant revenues and profits.
Brian Wright: Great. That sounds great. I think that’ll – I think that’s it for me. Great. Thank you very much.
Dick Akright: Appreciate it. See you next week.
Operator: Thank you. The next question is coming from Anthony Vendetti of Maxim Group. Please go ahead.
Thomas McGovern: Hi, guys. This is Thomas McGovern on for Anthony. Thanks for taking my question. So to start just kind of pigging back on what you guys were just discussing. You just mentioned that New Jersey is starting to open up in the cannabis sector, and you’re seeing some positive signs in New York. I’m just wondering now that we have a little bit more visibility off of last quarter, do you guys see any potential inflection points in the cannabis market as a whole? I know you just said that you don’t need a full industry turnaround to start recognizing some revenue there. But just maybe if you could provide your industry insight and just how the market is starting to shape up. I’d appreciate that.
Brad Nattrass: Sure. Thanks a lot. Thanks for the question. Inflection point, of course, the main one will be rescheduling. And as I sit on the Board of the National Cannabis Roundtable, and this is probably something that would take place in Q2 of next year. We remain very optimistic the industry needs something significant like rescheduling for sure. In terms of, at a state level for us, it could be awarding new licenses in existing states like Florida, for example, it is New York moving forward at a more rapid speed in expanding the award of licenses to additional groups that aren’t tied into specific segments. On New Jersey, when it opened up, we’ve made great progress with certain clients, but there’s also now their funding hurdle as well that these individual groups have to jump over to.
So hopefully, something like, say, banking passing. It was hopeful again, like last year that could happen by the end of the year. It’s now most highly unlikely that it will happen. It could go into Q1 or Q2, but there’s a lot of hurdles, of course, facing the industry. But for us, it’s just releasing the licenses that are active in already legal states and getting through those regulatory delays. I wish we could forecast it better for sure, but it’s quite amazing how quickly they can pop up and how fast the clients want to move. We had two in Q3 and those were both projects that we had anticipated probably that would move forward a couple of quarters faster. And we had them in the schedule for Q4, Q1 and boom. They move forward once those licenses were released.
So it’s a nice pleasant surprise when it happens for sure.
Thomas McGovern: Understood. I appreciate that color. My next question is on the international front. So last quarter, you guys mentioned you had the highest top line, and most of that have been driven by design. You also discussed how Germany was establishing some regulations, but it was taking some time that you were even looking at some opportunities in vertical farming in the Middle East. Being that you were just there last week, if you could provide us an update on how you guys are looking at the international market and kind of what to expect moving into ’24 that would be appreciated as well?
Brad Nattrass: Yes. In the Middle East, that’s not a focus for us right now. It was interest when we opened that office, but we quickly decided just to focus in our backyard in and around the Netherlands, our offices right outside of Amsterdam. When I was there last week met with clients in both the cannabis side and then also the vertical farming side. On vertical farming, there’s a strong focus on moving strawberries in doors. We’ve also had clients in the North American market, where we’re having those same discussions of design building those facilities around moving berry production indoors. From a cannabis standpoint, the experiment that has been active in the Netherlands for over two years now, it is moving forward. These groups are being funded and they’re moving forward with the build-out of their facilities.
