So that’s nice to see because there was a long pause of about four or five quarters. So it’s nice to see that start to move forward, and it would be a good strong accomplishment for Ingruto go to the next stage, past design with one of these entities. As far as Germany, similar to what I just mentioned on Ohio, it’s just getting the regulations in place. Originally, they were going to move forward. facilities had to be built in country, but that went against the overall EU mandate. And so now they’ve toned it down or looking at more of a social club Phase 1 approach. Fortunately, for us, on a social club approach, it still requires the build-out of facilities because hundreds of social club licenses can go together to build out a facility. So right now, the Netherlands, the U.K. and Germany are key, I’d say, the top three countries we’re focused on right now.
Thomas McGovern: Great. I appreciate that. And if I could just ask one last quick question before hopping into queue. So you guys mentioned last call that you guys were starting to look at potentially resuming some of your M&A activity in 2024. I’m just curious, given the macro market, if that’s still something you’re looking at and kind of just your general perspective on returning to some of that acquisition activity you guys have done historically? I appreciate you guys taking the time to answer my questions.
Brad Nattrass: Perfect. Thanks. Right now, we’re just focused on getting back to generating cash and growing within our own shelf. As I mentioned at the start, we are top and loaded, and so we have a lot of room to grow within and really be able to register good, strong, profitable quarters and quarters ahead. Long run, of course, whether it’s to access contracts or access a specific service area that we don’t offer now, it’s something we want to look at. But right now, it’s not even on the near-term plan for sure. It’s just getting back and maintaining positive cash flow.
Thomas McGovern: Great. Thanks again.
Brad Nattrass: Thank you.
Operator: Thank you. The next question is coming from Eric Beder of SCC Research.
Eric Beder: Good afternoon. Hi, I want to step back and talk a little bit about your ability to win contracts outside of CEA. What you’re competing against a lot larger people and people who have done it for multiple years. And with, I guess, you could argue certainly sometimes more resources. How are you winning those contracts? And what gives you the confidence going forward that you’ll continue to win them and to get, as you mentioned, bigger contracts?
Brad Nattrass: Great question, Eric. In terms of winning additional contracts with the current clients, we’re doing it, right? When we acquired the construction management firm, they were working with a large Fortune 50 client and doing a couple of small projects a year. We’re now doing multiple projects and looking to expand that portfolio and the project size is 3x to 6x larger. So we’re locking the tuck. We’re delivering on what we said we’re going to do. And we’re delivering good strong service levels. We have set up a project management office internally. We have on-site superintendents, internal project managers and a whole bizdev relationship team. So we’ve put a lot of work into building out that go-to-market strategy.
When JT Archer joined us as COO, that’s that expertise and brainpower that he brought in. We’re also utilizing systems a lot more than we did in the past. We’ve got a great client and vendor-facing portal that allows clients to see real time where their project stands, where equipment or when equipment is arriving and what’s needed or outstanding items to complete. So we’re giving a good service level. Of course, there’s a lot of large multibillion-dollar construction management companies. We are sub-in to some of those companies. They’re not built to go after $10 million, $20 million projects, they’re focusing on infrastructure projects and other large $1 billion-plus projects. We found a really nice sweet spot at around $10 million to $30 million, where the turnkey aspect doesn’t really exist in the industry.
We signed it was a Gulf or so actually at the hospitality and recreation project in the Southeast. And on that project, they were thrilled to find out that they could procure all of the services in one full package from Urban-gro. Otherwise, they were going to bring on their own site, superintendent that we’re going to have to hire architecture and engineering on their own. So that was a really nice moment of awakening, for at least me to see that there’s definitely a value in what we’re offering for sure at that level. We’re also working on a lot of projects. Another project is working with an international hotel chain, just to do $30,000, $40,000 of engineering, but 15 times a year for the foreseeable 3- to 5-year future. So it’s not always design build our engineers.
