ZeroStack Corp. Q3 FY2022 earnings call

• Third quarter was a record period with approximately $10.8 million in revenue, more than the entirety of 2021. Gross margin improved from 29.6% to 46.2% compared to Q3 last year due to operational efficiencies. - Completed integration of JustCBD, Vessel, and No Cap, realizing cost savings and sales synergies. - Commercial Wholesale's 247-acre cultivation facility in Colombia is operational with exports to multiple countries and a 43-ton quota. - Life Sciences expanded Flora lab 4 and formulated eight new prescription medications. - Acquired No Cap Hemp Co. brand, integrated into JustCBD operations.

For the House of Brands pillar, it delivered more than 80% of total sales, with revenue growth from top selling brands JustCBD and Vessel, and cost synergies realized through general and administrative reductions, supplier consolidation, etc. The Commercial Wholesale segment has a fully operational 247-acre cultivation facility in Colombia, harvesting high-THC cannabis weekly, with exports to countries like Switzerland, Czech Republic, and having a 43-ton high-THC cannabis quota from the Colombian government. The Life Sciences segment saw expansion of Flora lab 4, with eight new prescription grade cannabis medications formulated and awaiting certification, potentially generating revenues as early as Q4 2022.

• 2022 revenue guidance is $35 million to $45 million. - In 2023, expect full activation of revenues from Colombian grown cannabis and full activation of the pending acquisition of Franchise Global Health, aiming for at least $100 million in revenues. - Anticipate increased revenue in Q4 and early 2023 due to holiday season demand, so increased inventory position by over 10%.

• Challenging capital market. - Uncertain regulatory environment. - Volatile geopolitical climate.