WM Technology, Inc. (NASDAQ:MAPS) Q3 2022 Earnings Call Transcript

Doug Francis: Yes. So California, obviously, is feeling the commoditization of the plant and a very much robust black market that is definitely putting price pressure on everything and making operations hard for everyone. It is happening a little bit in other states like Colorado and Oklahoma, but we expect that force to show itself in all the other states in time. But for most of the operators in California it’s definitely, a lot of headwinds, a lot of cost cutting a lot of preparing for what’s going to come next year. Even in the East Coast states that are coming online, they have a lot of black market problems as well that will put downward pressure on prices out there. And obviously the licenses in New York for example have taken a little bit longer than expected.

And obviously that doesn’t help with the forces that I just mentioned. So just like everything in cannabis, we’ve been in this game a long time. Even though it says, it’s going to open things tend to take a lot longer and it’s a lot more nuanced as governments work with local governments to kind of roll out their policy and then have to again deal with a robust black market. So again for us we just have to build the tools to help you guys survive and then we have to have the ground game because one thing that I can help bring to the table a little bit is a broader understanding of the plant. And when you get into a world where margin and everything gets crushed it really comes down to your ability to understand how to deliver quality to price which is something that I can help some of our clients do.

Tom Champion: Got it. Thank you.

Operator: Thank you. Now I’m not showing any further questions in the queue. I’d like to turn the call back over to our speakers for any closing remarks.

Arden Lee: Right. Well, thanks operator. We appreciate everyone for joining today. And with that we’ll wrap up today’s call.

Operator: And this concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone have a great day.