George Archos: Scott, this is George. I’ll give you a couple of a tidbits and then Brett can add sort of the clarification. As far as the markets you’re talking about, I mean we still feel confident in all these markets. If you look at the units sold across the board, the business continues to increase, although there has been pricing compression, that’s — we’re starting to see stabilization there. Illinois has been doing well for us. There are further stores that are continuing to open, which peck away a little bit at our retail business, but wholesale has been doing continuously better. So we like Illinois. Connecticut has been a very strong market for us. What we anticipated was taking some of the product off of wholesale and moving it into the retail channel with the social equity JV.
So we’ll continue to do that as they open throughout the rest of this year and next year. But the market has been very strong. And in Maryland as well, wholesale business has been very good there. Legacy market for us. We’re in the top 5 wholesalers. I think it will continue to do well there. Although we don’t currently have the opportunity to open more retail outlets, that could change in the future, which could give us some potential upside in Maryland, which is something we’d like to work with the legislature on. But overall, we’re excited about what’s happening. Although we’re saying it’s going to be a flat year, that doesn’t mean the business is not going to continue to grow, right? We’re still seeing new entrants to the market. There are opportunities.
There might be some M&A that might come up with Ohio announcing what they did yesterday. Hopefully, we see that transition sometime next year if the governor approves it, and that will be a significant upside. There’s a big population based in Ohio. We have a good footprint there. So there’s a lot of upside. We’ll wait for news from PA here soon. We’re working on a legislative fix there for adult use, maybe that’s in 2024 or early 2025. And obviously, the big news will be from Florida. So a lot of upside in our current portfolio with a lot of upside outside of our portfolio. So good stuff to come.
Scott Fortune: And then maybe a follow-on then Brett, well, kind of the CapEx kind of — you mentioned Ohio potentially expansion of CapEx from that standpoint?
Brett Summerer: Yes. So we obviously have some internal numbers on that, that we’ve been kicking around. But at this point, we just found out last night, right, that it was approved. So in terms of dialing in what that needs to be, et cetera, we’re still going to work through that over the next few weeks, few months, and then we’ll have something out there. But big picture, CapEx for the business next year, excluding adult-use items is going to be very low, like significantly lower than it has been historically and this is just a good investment for — to capture that market. So we’ll talk more about it in the future.
Scott Fortune: Great. And then my follow-on is just kind of looking — focusing on the SG&A, you’ve kept the level of 36% here. What can we expect? Are there more efficiencies kind of in opportunities here going forward? How should we look at the cadence for SG&A and your OpEx side of things?
Brett Summerer: Sure. So from an OpEx perspective, the guidance we provided previously, which is — has been based on SG&A less depreciation and stock comp, it continues to be in that same range that we’ve historically shared, which means, again, with the depreciation and stock comp, it’s going to be in that same range as well. So I think we’re really comfortable with the range that we have out there. I don’t see anything major changing there. And to the extent that it starts to decline, we’ll take action, to the extent that it’s too low, we’ll take action on the opposite side as well.
Operator: Our next question comes from the line of Russell Stanley with Beacon Securities.
Russell Stanley: Just wanted to follow up on Darren’s comments around Ohio. Just wondering, I guess, the consensus was that if voter support for it was not only strong enough past, but strong enough beyond the 50% threshold, then that would send a clear message to the to the legislation of the governors, to the will of the people. I’m just wondering how you feel about the actual level of voter support in that context and the odds for implementation on that basis?
Brett Summerer: Yes. Thanks. So Darren had to step out for a second. But the feeling that we have here is very, very positive from what the results that came through were. If you look at the demographics of the state and how they voted, what you can see is that there was a significant younger population that was in strong favor of the measure. And then as you kind of look at the demographics as the age continues to climb, it started to fall off a little bit. But I think the level of response, the level of yes votes, I think, sends a really strong message to the government there, and we’re really happy with the result.
Russell Stanley: That’s great. Maybe if I could move to CapEx and the guidance, taking down the numbers for ’23. I just wanted to get a better understanding there given your comments around ’24 also being low. Did you — are there projects being pushed off until 2024 or are there projects that you have just postponed indefinitely at this point? And any color on that front would be great.
Brett Summerer: Yes. So there’s nothing that we pushed off. We have just been choosy about what we want to do. So we’re generally happy with our footprint. The little bit of CapEx that we have planned next year is going to support kind of the ongoing operations as well as some store build-outs, which tend to be varying expenses so if you think about that, really, it’s the cultivation projects that we have and the significance of those. And those are triggered by adult use, triggered by legislation changes, triggered by expansion that we might have through additional stores opening in that state, et cetera. So from that perspective, it’s very thoughtful and very planful. And we haven’t necessarily punted anything, and we’re just waiting for the decisions to be made so that we can deploy our capital in those places.
Russell Stanley: I’ll pile on and say thanks very much for the additional state level disclosure. It’s much appreciated, and we hope your peers follow.
Brett Summerer: Thank you.
George Archos: Thanks.
Operator: Our next question comes from the line of Andrew Semple with Echelon Capital Markets.
