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This is the result of the quality of our products and services as well as the culture and excellence of our team. We are hopeful that President Biden's new cannabis policy statement and other initiatives at the federal level will improve capital market access the U.S. cannabis company to list on senior exchanges. This will allow more institutional investors to participate in our success. MariMed is poised to continue to grow up to $400 million in revenue in the next few years as one of the few MSOs with a clean balance sheet, operational excellence, strong financial discipline, and is profitable. We are well positioned as a transformational M&A participant. Rest assured, any transaction seriously considered must be accretive and improved MariMed shareholder value.

I suggest you all keep watching the MariMed's story. Let me now turn it over to Jon. Thank you.

Jon Levine: Good morning, everyone. As Bob said, we had another solid quarter. First, we completed the expansion of our state-of-the-art kitchen in Maryland, which allows us to manufacture, sell, and distribute our award-winning products, including Betty's Eddies and Bubby's Baked. Second, we acquired dispensary license in Illinois, which will be in the eastern part of the state near the Indiana border. Once completed and approved to open, it will be our fifth thrive dispensary in Illinois. Third, we launched three new products. In Massachusetts, we launched Betty's Eddies ice cream and Nature's Heritage LIVE Flower, which are both selling very well. Also in Maryland, we launched a line of gummies under our in-house brand. We continue to innovate with new brands and products that address consumer needs.

Fourth, we partnered with a processing license holder in Missouri to develop and manage a state-of-the-art kitchen to produce and sell all of our award-winning edibles in the wholesale market. We hope Missouri voters will pass adult use ballot initiative at the polls today. And fifth, we entered into a manufacturing contract with 42 degrees. A leading distributor in Michigan, 42 degrees will sell our award-winning Betty's Eddies fruit juice with the intention of expanding to include our other brands in the future, 42 Degrees has an extensive sales force and currently wholesales into 340 dispensaries for about 75% of Michigan dispensaries. Our momentum continues into the fourth quarter, as we recently announced the opening of our first dispensary in Maryland and officially achieved full vertical integration in that state.

We remain focused on maintaining our financial discipline, building great brands and executing our strategic growth plan. Our core retail business continues to strengthen and our wholesale business is gaining momentum despite flower pricing pressures. While the overall industry remains challenged, we are focused on operating great at retail and wholesale, and by delivering outstanding customer service, we will continue to outperform the industry. With that, I will turn the call over to Tim for operational update.

Tim Shaw: Thank you, Jon, and good morning, everyone. Let me begin our operations review with retail where we grew revenue by 2% sequentially compared to the second quarter. Our sequential growth was comprised of 10% transaction growth, which was offset in part by a decrease on the average ticket. The country is experiencing historic inflation in nearly every state with a cannabis program reported slowing or negative growth in the third quarter compared to the second quarter. To say where we are overjoyed that MariMed was able to buck this trend is an understatement. We worked extremely hard to fight the right balance of premium and value offerings, extended hours, new product launches, advertising and delivery services, and these initiatives are paying off.

We received more great news a few weeks ago when Maryland regulators approved the opening of our Annapolis dispensary. While we are still awaiting regulatory approval for our dispensary in Massachusetts, we are optimistic it will open in the coming months. Under wholesale, our sales increased 13% sequentially, primarily due to our performance in Maryland, which increased 53% compared to the second quarter. In Massachusetts, which also reported positive sequential growth. We have seen wholesale price compression in flower compared to last year, but it remains stable in Massachusetts and Maryland is showing signs of stability. The good news is we're able to offset most of that price compression by introducing our in-house branded value products, which now account for about 20% of our total sales.

This includes Maryland where we launched our in-house vapes late in the second quarter shortly after we launched a line of 10 milligram gummies. In Maryland, our branded edibles such as Betty's Eddies, and Bubby's Baked are literally selling faster than we can produce them. As a result, we're significantly increasing our staffing to run multiple production shifts per day, seven days a week, while this has been a difficult year for the wholesale in Maryland. We have the parts in place and ability to ramp up production and sales to quickly meet the unprecedented demand for our edibles. Before I finish, I'd like to share some exciting news. We recently received the necessary local and state approvals to begin hydrocarbon extracting in Massachusetts, which allows us to produce our own derivative extracts such as live resin butter and diamonds and sauce.

We will also begin producing Nature's Heritage branded live resin and sauce carts, which will be available in select dispensaries by year end. And finally, on the products front, as Jon mentioned, we continue to innovate and develop products that address what today's cannabis consumer wants. Data and customer feedback showed us that they want their edibles to deliver specific benefits. Just a couple weeks ago, we improved our top selling Betty's Eddies lineup by adding some new products, improving others while keeping some of the fan favorites unchanged. Every chew is now custom formulated to help address basic needs such as a better sleep, pain relief, stress relief, increased libido, and others. Great brands will win in cannabis, and we are confident ours will be among the long-term champions.

That concludes my operations review. I will now transfer the call to Susan who will go over our financial results.

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Susan Villare: Thank you, Tim, and good morning, everyone. I would like to start a brief recap of our third quarter financial results. Total revenue was $33.9 million, which increased nearly $1 million for about 3% sequentially. This is driven by both our dispensary and wholesale operations, partially offset by lower revenue from other sources such as rental income and management fees. I want to provide some more market data within the states we operate that Tim briefly touched upon. External reports show this being the third quarter sequentially that sales load both in Illinois and Massachusetts, while declining in Maryland. I am pleased to know MariMed's dispensaries saw flat to positive traffic growth versus the previous quarter at every single dispensary for the second consecutive quarter.

MariMed's outperformance against these unfavorable market trends is a testament for award-winning dispensary and brands. Moving to gross margins. Our non-GAAP gross margin was 48% compared to 46% last quarter. The gross margin improvement was primarily attributable to our increased sales of our branded products in the wholesale markets of Maryland and Massachusetts. We continue to believe our second quarter gross margins was a low watermark and we expect our margins to continue to improve and stabilize. Moving to non-GAAP operating expenses. We continue to be very disciplined with our discretionary spending. Our non-GAAP operating expenses increased $1.6 million sequentially to $8.7 million in the third quarter. This sequential increase was due to plan increases in both personnel and marketing programs to support our strategic growth initiative.

Our adjusted EBITDA was $8.7 million, which represents a 25% margin. This was down sequentially versus a second quarter adjusted EBITDA margin of 27% due to our plan increases in operating expenses. Now turning to the balance sheet. We ended the third quarter with $11.1 million of cash and equivalents, which increased versus our second quarter cash balance of $7.9 million due to our continued ability to generate positive cash flow from operations. Our networking capital increased to $13.6 million from $8.3 million at the end of the second quarter. Our ability to generate cash remains a core strength of MariMed as illustrated by our year-to-date positive cash flow from operations. We remain on track to be cash flow positive for the full year.

Now, with respect to our full year 2022 guidance, we are now assuming that our new adult-use dispensary in Beverly, Mass, which has been on the ready to open since early summer, will not open until 2023. We continue to face regulatory timing delays, but we remain optimistic that they will be resolved in the near term. Additionally, we are assuming that the pricing pressure will continue in the states where we operate, both on the wholesale and retail front. Accordingly, we expect full year revenue to be in the range of $132 million to $135 million, which represents a year-over-year growth rate of 9% to 11%. Our full year non-GAAP gross margin outlook is between 48% and 49%, which is slightly lower than our previous guidance of 50% due to the deleverage associated with the delayed revenue from our unopened dispensary.

Our adjusted non-GAAP EBITDA forecast is between $33 million and $35 million. Finally, our full year CapEx spend is estimated to be between $16 million and $17 million. That concludes my prepared remarks. And at this time, I would like to now turn the call back over to Jon for his concluding comments.

Jon Levine: Thank you, Susan. We are incredibly proud of delivering another strong quarter of operational and financial results, which remains some of the strongest in the industry. Before closing, I want to acknowledge the positive progress towards cannabis reform we are seeing at the federal level. Hopefully, the momentum of the President's recent announcement will have a domino effect of safe banking finally passing. In the meantime, we will continue to focus our attention on executing our strategic growth plan. As we noted earlier, despite the significant headwinds facing consumers in the U.S., we continue to report improving sales trends in both our retail and wholesale businesses. Looking ahead, 2022 remain a foundational year, and we continue to be very bullish about next year.

In addition to Maryland dispensary we just opened in Annapolis, we expect several new assets to come online in 2023 to help drive accelerated growth. In retail, we anticipate opening dispensaries in Ohio, Massachusetts, and Illinois. In wholesales, we expect our new production kitchens in Illinois and Missouri to be completed. We also expect our new cultivation facility in Illinois and our expanded cultivation in Massachusetts to become operational in 2023. And we remain very active in discussions for additional accretive acquisitions. To summarize, we are financially solid and poised for continued long-term growth and success. We continue to improve our sales trends at both retail and wholesale in our key states. Our great foundation of revenue producing assets will allow us to continue growing organically and generate positive cash flow to further strengthen our balance sheet.

We're extremely excited about MariMed's prospects for 2023. I would like to thank all of our MariMed employees for their hard work and dedication, making us one of the best run and financially found cannabis companies. Operator, you may open the line for questions.

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