Brian Wright's questions to urban-gro (UGRO) leadership • Q3 2023
Question
Asked for details on the Q4 G&A outlook considering the end of salary-for-stock deferrals, the end-market composition of the backlog, the drivers behind the strong Q4 revenue guidance, and the impact of recent events like Ohio's legalization.
Answer
The Q4 G&A increase will be minor (~$200k). The backlog is over two-thirds CEA, while revenue is two-thirds non-CEA due to differing project lengths. Confidence in the Q4 revenue ramp comes from a strong sales funnel of large construction projects and the existing backlog burn rate. Near-term optimism is driven more by the resolution of licensing delays in existing legal states rather than new markets like Ohio.