Good morning. Good afternoon and good evening or wherever and what time it may be as you're watching this video for Quimbee. I'm my name is Bryan Bergman. I am an attorney in Los Angeles, California, that has been working with the cannabis industry in one form or another since 2015. And I'm very excited to be bringing a presentation to you today that is near and dear to my heart, and that is talking about the opportunities and potential roadblocks in out-of-home entertainment and cannabis consumption. And we came up with the very exciting title of advising businesses slash corporate clients and out-of-home cannabis consumption and regulation. But while that title is not too sexy, I will tell you that it's a very exciting and interesting field. The cannabis industry has been burgeoning in one form or another for the last couple decades, and it's slowly getting more and more normalized, regulated and permitted in many states. And we are now getting to the final frontier and of regulation and discussions. As far as I know, I'm sure there will be more regulation, there will always be changes. But in terms of an area that's still not well known and that is out-of-home consumption. And when I'm talking about out-of-home consumption, what am I talking. Well, I am talking about the actual consumption of any cannabis product out of your home. And how do you monetize that? How do you do this in a regulatory permissive manner and how does it become a financial opportunity for businesses? And the first thing you have to talk about is why does this matter? And the reason for that is pretty simple. It's been happening for most of our the last two centuries of the 20th century and beyond. I mean, actually, it goes back to our whole human history, but more so recently with the prohibition movement of the early 20s and 30s all the way to today. There's definitely been an interesting stigma and difference in the history of cannabis consumption over the years, and people have always been doing it. But where how legal it's been has been kind of what the question becomes. And now with medical and recreational legalization happening, many jurisdictions are recognizing that out-of-home consumption is a key component to be discussing. And so for those that consume, this was the whole reason for legalization in the first place. I have a feeling, and that was more than anything else besides finding that it has good medicinal value potentially, or other reasons why it might be helpful to allow easier access to cannabis and cannabis products is that many people voted for it because it was already part of their lifestyle and community they already identified as part of the cannabis smoking or cannabis consuming community and or maybe had social connections based upon that or found social connections based upon that. And since it's always been going on, it makes sense that when people legalized it and voted to do so in the last few decades, they were doing it because they wanted to be able to consume in a safe manner, out in the open and embrace their lifestyle. Many people would go and find cannabis to enhance experiences and so they would consume before doing many things, seeing movies, going to concerts, maybe sporting events, maybe they want to go to an interactive installation of some sort, whatever it may be. They were doing it anyway. So the question is, is how can they do this safely in a way that works for the community and for people abroad and those that are not interested in doing so. Um, a funny story, as an aside, real quickly, before we really dive into this, would be that, you know, Disneyland is a very famous example of what I'm talking about today in that when Disneyland first opened, there were definitely portions of the park that had park benches that people, families could come and bring food and drinks from outside the park and sit down and just have their own food while they were going through the park. The powers that be at Disneyland quickly realized that food and beverage was and many revenue streams were being lost. And so they stopped allowing outside beverage and found a way to bring it in and monetize it. And probably one of the biggest revenue drivers now of the park is food and beverage. Similarly, when you talk about out-of-home consumption and why it matters, um, people are going to be doing it. It's been legalized and, you know, why aren't we doing it in a way where it's going to be safe for the public known where it's occurring and use it as a way to create economic opportunity? Think of, for instance, how most out-of-home entertainment right now is based around a situation where a lot of times there will be a restaurant or a bar as an anchor business in a development or nearby some other thing so that people have a way to get food and drink before they go and do other forms of entertainment. A cannabis business could equally fulfill that. If it's done in a way that is protective and appropriate. And so because of that, it becomes a different way of creating the same type of job opportunity. Not only that, it creates public safety, because if the community knows where people are able to actually consume and they're allowed to do it legally, then why would they want to go somewhere where they're not necessarily allowed to do it legally, like just smoking on the street somewhere, for instance, because that's still illegal in most jurisdictions and they can go somewhere where they are allowed to do it. And if that's the case, then most people who want to not break the law will go and do that. So that helps with public safety because now regulators and city officials and police forces and all other services are knowing where it's occurring and can make sure that it's being done in a way that's being watched over by the local jurisdiction. It's also really great because it not only would create new opportunities for businesses to make money in tax revenues, this is always being talked about with cannabis, but the economic ecosystem that can be created around a cannabis business does not necessarily have anything to do with cannabis directly. Maybe it's enhanced by it. Maybe it's appealing to a cannabis user for different reasons. Think of like a out-of-home place where you can go and paint or do some other creative outlet or go do yoga or something else where you might be able to go somewhere close by, consume and then go and do that. Now you're creating an ecosystem of opportunity and that's a great opportunity for the business as a whole. And not only that, it also gives the opportunity to work with other non-plant touching businesses, which has some other benefits as well that I'm going to get into later in this program. So when you take all that combined and you think about everything, then what it also does is it also helps stabilize the industry itself. The industry itself has been having a lot of issues lately with trying to work through how they're going to monetize and make money off of these products right now because they're facing a lot of issues over taxation, over regulation, over payments on rent and other things. And just selling the cannabis plant as a commodity is a tough sled to get through because of that. And what's really happening right now is we're watching the cannabis industry as legalization has become more available. Is now it's a matter of, well, who's going to actually be able to succeed in this very difficult regulatory environment. And when you think about it from that perspective, what you're actually considering and coming up with is that they are now giving themselves a chance to go ahead and have an opportunity to find other ways to monetize and work with other non-plant touching businesses that might be able to also bring different opportunities And for for structuring deals and structuring those deals could be really great when it comes down to trying to find financing and funding and otherwise. So that becomes really important and especially right now in our post Covid environment where most people were buying a lot of commodities while they were stuck at home. Now everybody's very hungry for experiences and the experiential market is starting to really recover as a result. And the out-of-home entertainment market and these are people that have been doing these types of opportunities forever, but they just don't know how to work with cannabis companies to maybe have a elevated or enhanced experience component to some of their events. Think of like, for instance, an immersive art museum where the entire room is changed into walking through a painting. Think many cannabis consumers would love to do that after they've had a chance to imbibe in whatever their local vision is for that. So it becomes a great opportunity to create new opportunities that way. And also, if you look at the wine and alcohol industry, you think of things like tastings and cultivation tours and other things that go on for wine. Why can't you do the same thing for cannabis? It creates opportunities for tourism. And think about Amsterdam, for instance. Many of those famous cafes were known your world over for one place where people can actually go to a cafe and consume and it wasn't going to be frowned upon. And so that becomes a tourism driver in and of itself. And that becomes an interesting thing as well. And there are actual organizations out there working on that very issue and working with different community business, chambers of commerce and otherwise to try and have those opportunities further develop within those communities. And so when you talk about all that, you realize there are a lot of opportunities for out of home consumption. And it's really something that when said earlier, is the final frontier, it's because it's the last frontier that's still kind of not there yet. And with that being the case, it becomes important to understand what you can and can't do today and where we think we're going. And so the first thing I want to talk about is consumption versus the supply chain. Right now in the cannabis industry, the cannabis industry is working from a perspective of mostly how to regulate the supply chain economics and activities of growing, producing and modifying these cultivated products into other finished manufactured products such as topicals or tinctures or drinks or other edibles, and then having them properly tested for public safety and then gotten one form or another to the retail outlet or similar outlets for sale to the consumer. At that point, the regulations kind of stop in most jurisdictions. Some, as we're going to go over, have started to think about this consumption issue. But the reality is, is that in most cases the regulators have been once it's in the hands of the end user, since it's been legalized for consumption already in these jurisdictions where they're allowing these regulations that they're not really concerned about what they're doing. And not only is that leaving a lot of money on the table like Disneyland, but it's still leaving out. The major issue here is that there's not a lot of safe public places to consume. After they get it, everybody's going to go home. Well, what about someone that maybe lives in Section eight federal housing, where cannabis is still federally illegal, with somebody who maybe is using access to cannabis for medicinal purposes and finds great relief from it that lives in Section eight housing and then buys some state legal products but goes into their federal housing to consume it. Aren't they technically violating their lease at that point? So what are they supposed to do, go out in the street and in an alleyway or something? And what do they go? So it becomes not only a public safety, but also a safe access issue. And so when you're talking about regulations, as this slide is showing you, what we're basically talking about here is that the supply chain talks about business to business regulations and what happens there, whereas consumption is more focused on the consumer or patient there, the actual act of consuming it, where and how are they getting it, what are their experiences and what are they trying to do when they are consuming. So I wanted to give you, at least on this slide, a little bit of showing you if you look at the bottom right here, there's the cannabis flower, traditional smoking, which are pre-rolled joints, pipe and water pipes and other similar things. There's also now vaporizers and edibles and other forms where you're able to use some form of oil or something to heat up that and smoke it. And that's called vaporizing. There's you can eat it or drink it. And drinks are becoming very popular in a major market right now. Market driver. And then as I mentioned before, there's tinctures and top where you can have it in a pill or a cream type form and dabbing is another way of doing high heat on it and using that or similar type of non natural flower substances to get a more pure THC or pure cannabinoid hit, if you will, when you're dabbing. So there are many different ways of doing it. And when we're talking about them and what we're focusing on today is not the supply side and the supply chain issues. We're talking about consumption. And so what we're going to look at is what states do have right now in terms of that and what states are kind of doing some things and talk about what are some of the ways that this is being regulated, how it's being done, and what are some of the other opportunities out there that are going to be coming down the road? So when we talk about types of out-of-home consumption, it's still something of an unknown frontier. There are certain things that have tracked up in one way or another, mainly in most jurisdictions that are legalizing this in some way. And those are coming in the first two on the slide, which is something we're calling a lounge and otherwise, like some sort of public event, usually in a temporary situation. So we'll go over each of these in a little more detail. But basically and for right now, just know lounges are permanent places. Think of them almost like a cannabis bar, if you will, like an alcohol bar. But they're differentiating it because it's not really a bar and we're not trying to and the industry is not trying to call it something to a alcohol consumption because that's a bozo. No, no. In every jurisdiction right now is very against consumption of alcohol and cannabis on the same premises and tobacco too, for that matter. And so they are very careful with this. But they're using a different name than the traditional alcohol establishment use. Public events are exactly what they sound like. There's some sort of event going on in public where there's a cordon location and you can legally consume in these cordoned areas. Private events are non-public, single day events where consumption is permitted. Now, there's definitely some question about what is private versus public in events. Are you selling tickets? Is it open to the general public that anybody can buy? Is it truly a private event like maybe perhaps an invitation only affair such as a wedding or some other social club or something like that? And if they are private, do they do they fall under public regulation is a big question. And so that's why I said be wary of private versus public legal distinctions, because they're different in every state. And there's also a question of whether regulations apply to private events. And then we have the unregulated and unpermitted activities is just basically a catch all that. If we're not sure it falls under an exception of a private event, it's not a it's not a public event that's been permitted and it's not a permanent location like a lounge. Well, what's going on? Is it unregulated or unpermitted? And basically that's any out-of-home consumption at that point where there's a question of whether it's allowed or not. And in some cases it's not. But people are doing it anyway. And you've got to differentiate on that and determine whether the proprietor of wherever this is happening, if there is a proprietor, is allowing illegal activity or not. And so that's something to look out for each of your individual clients as they're putting their entertainment options out there and what they're going to allow their guests to do. Of course, if someone were consuming on a beach or on a public sidewalk, well then just general jurisdiction would apply to something like that. So when we're talking today, we're not so much talking about it from the perspective of the person themselves who's consuming. We're talking about it from the perspective of a business that wants to provide these options to the public in one way, shape or form, or it's invitees, if you will. So what's currently allowed and what's still to come? Well, currently available in some jurisdictions, we are having lounges or specific consumption event areas, consumption areas that are permanent. An example that we're going to get into more detail is that some jurisdictions like Nevada, they are allowing retail dispensaries to also allow for on site consumption, and that's one type of license. But then they're also allowing single use style consumption. Establishments where maybe it could be something as simple as a barber shop or a other type of entertainment environment or something. But they did what they needed to do to follow the regulations of Nevada so that they're allowed to allow on site consumption. But maybe it's not only dedicated to being a cannabis lounge. So that's why we're saying specific sites like lounges, as we discussed, temporary events are there. And then like we started to kind of touch on the questionable legality or at least things that are going on right now is what happens in a more private settings where it's not necessarily completely open to the public, but maybe and what we're seeing is while this is being worked out, is very many creative entrepreneurs are much like throughout this industry, are trying to get ahead of the game and then ask forgiveness instead of permission or ask how to make it permissible. And we're seeing a lot of that with private clubs, some hotels in many jurisdictions around the country, some themed locations where it becomes like a cannabis history museum or a bed and breakfast. I've heard of the term used many times and some people are already doing cultivation tours and tastings and the like. And so some jurisdictions expressly ban that, some don't. And where they don't expressly ban that, there's a gray area about what you can do. But these activities are already occurring. There's also things like concerts and such where perhaps we're starting to see some locations where major venues are having permanent lounges set up. Outside. In California, for instance, I can think of two right off the top of my head in the city of Oakland and the city of Adelanto, they have a major coliseum that used to be home to some sports teams and do still do sporting events, but they also do concerts and other community activities. And in both Oakland and Adelanto, they're working to put out actual lounges in the parking lot that are going to be permanent structures, not inside the stadium itself, but that those that want to consume can go to the lounge in the parking lot before they go into the stadium for whatever event they're coming for. So there are things that are already happening. But what we're not seeing yet are, you know, things where you have like mobile consumption businesses where maybe somebody is bringing a party to your door, if you will, or basically they set up and do A1A1 off thing and in a legal way or catering event where I would think of that very similar to any private event where you have alcohol being served at the event, you need to have licenses. You need to make sure you're doing things with proper liquor controls and everything else. And catering could be that for consumption of cannabis as well at some point, but it hasn't happened yet. Product activations are still to come and are going to be very exciting. I mean, maybe in certain places where there is consumption allowed, there's some brand familiarity events where maybe a brand sponsoring event or something like that from cannabis, but actual product activations with other non-plant touching businesses where cannabis may be seen to be hand in hand with it in some way or could be appealing to the purchaser of those products, We don't see that. I mentioned immersive experiences earlier. Imagine going like said to an immersive museum pop up or maybe a Luchador fighting event in a parking lot, or maybe it's something where you go to a setting where they've tried to create a world inside somewhere else. Like I remember there was that famous show, HBO, that had was called Westworld, and there was a ghost town near Austin that during Austin City limits one year they turned into an immersive Westworld experience. Some people might want to go and enhance that experience by consuming, but that's not really allowed yet. If it's done out in the open and it's not being done in a way that's allowed. And so basically we're still in the early stages of all of this. And while there we're seeing a lot of things happening, there's so many more opportunities out there in ways to use cannabis consumption as a driver to create opportunity for businesses that it's. While I say it's the final frontier again, it's because it's exciting, it's new, and it's a way to create a lot of new public facing opportunities. Of course, there are a lot of rules and regulations surrounding it, and it has to be done in a way where the jurisdiction is going to feel safe and good about it. And, you know, it's interesting because while they have done this for alcohol, notice that most people after they consume alcohol, they tend to have less social inhibitions, They tend to be louder. It tends to be a little bit more of a jovial atmosphere or it gives a certain level. And we've had other issues with fights and things like that at bars, cannabis consumption and consumers is typically a different situation, unlike a bar where the revenue is going to be, get somebody in and try to serve a multiple units within an hour in a lounge. The consumers are not going to be like that. They're going to take what they're going to need and that's going to usually typically be enough for the next few hours. So what do you do with them? You want to keep them entertained. You want to have something that they're going to want to do so they stay or have other ways of making money. And that's something jurisdictions are still figuring out. I'm going to talk a little bit about California and some of the regulations and bans that they recently had they're trying to fix right now. And any activity other than cannabis consumption at a lounge and also look at other jurisdictions and how they're dealing with that. Before we get there, let's talk a little bit more specifically about the types of consumption and the first type of consumption that is the most important is the most obvious would be the permanent lounge or other type of environment. Everybody's heard the name of speakeasies before and it's kind of a neat situation that kind of made a comeback in in recent years for the alcohol scene. But what a lot of people don't know is also very famous in many of our major East Coast cities for cannabis. Back in the day, Amsterdam coffee shops were also like that. And so many, many opportunistic entrepreneurs are definitely trying to pay homage to the history of cannabis. But even if they're not, a lot of what regulators and many are seeing is that these lounges are not so much focused on being dim, dark places like many bars are, but rather open aired and places that people want to sit in and relax because again, it's a different. Feeling in a different need from consumption. Many people get introverted and so they want an environment where they can comfortably be introverted or interact. And so it changes the way these lounges are created and what they're done. And it becomes a major discussion about the retail design surrounding these lounges. And that becomes a very interesting and unique opportunity for businesses to really expand and spread their creative wings and how they want to appeal to their consumers. There's also a lot of rules around lounges. Typically, like as said before, there's definitely a lot of supply side regulations. They're going to have to be followed by a lounge. And they're also not only if they're going to be allowed following all those seed to sale restrictions, which is just basically following and tracking and tracing the cannabis from the minute it is planted in the ground through a unique identifier barcode all the way to when it gets sold by the retail store, which could also be a lounge, that there's a way of monitoring who the products are, that they're safe for human consumption. And there's also usually a lot of limits on how much you can consume or how long you can be in there. And of course, jurisdictions are very concerned with not having it smell like a giant cannabis cloud because too many people that is a pungent and offensive smell. So odor controls become very important for lounges. There's also when you're in a lounge, you have to worry about a bartender. The bud tenders, as they're called in the industry or other names that they've creatively come up with to make sure that staff is responsible for ensuring that everything is safely and responsibly consumed and that they can cut somebody off at the right moment. Also, when you have regulations, it allows the local jurisdiction the ability to actually monitor what's going on at these lounges and where it's going. But on the flip side of that, considering it's still federally illegal, people get really concerned about the fact that insurance is not necessarily readily available and because the regulations are still being created and not many jurisdictions are fully implementing their consumption regulations yet, but they're allowing it, that may be their concerns about increased death because there's not a lot of banking. So there's a lot of cash on hand. So there's worry about that. There's worry about actually getting affordable insurance. There's the worry about whether or not we're creating public health concerns. And so these are all things that are still being monitored and need to be watched. But again, I posit that having it and embracing it and bringing it out in the open and working through that is better for all than not being able to know what's going on and not being able to create normative environments where opportunities and economic controls can be created and and and also tax dollars and otherwise. So it becomes it's better to do it than not do it. And as I mentioned before, not everything has to be about cannabis consumption. I mean, you can imagine a building, for instance, where maybe it's a three story building on the top story. They have a roof deck or something with a cannabis lounge and maybe down below that they have a yoga studio or Pilates studio. Maybe below that they have a movie theater or something just making it up right now. But the point being, people can go upstairs and or maybe there's some neighboring buildings that have something nearby that's really fun. People go upstairs and they consume and then they're going to stay in that area for hours because now they're feeling elevated or high and they want to do something. And now there's opportunities for them that have been catered and geared towards them. These are completely separate businesses. Lots of great opportunities there. And so the issue is, is that we still haven't, as a business model, totally cracked the code for what is successful. Most lounges right now are focused on trying to make it like a nightclub environment or they're trying to make it, you know, more like a cafe where you sit down and eat. But like I mentioned before, about California until maybe in the near future, but not yet. Even you could only sell cannabis in the lounge. So sometimes you can get around that by having food delivered. But again, it's you can't show entertainment necessarily. You can't do anything. But have consumption in the lounge area. So everybody has to leave. And then how do you make a lounge a viable business if people are coming in there to consume and then going elsewhere? And so you either have to work with your surrounding businesses to, you know, help everyone feel that they're getting opportunity out of it or with to work with regulators to change it. And that's why these regulations are still too new and it still hasn't been totally cracked yet for exactly what is the right business model to make this happen. So that could be a good and a bad thing. It's a double edged sword, obviously, but in my opinion, it allows for creativity and opportunity. California has now been pushing through a new bill, for instance, that will very soon allow for if it passes, which it looks like it's going to onsite food and non-alcoholic beverage consumption and maybe offering tickets for opportunities for entertainment and the like, like maybe a comedy show or karaoke or the like. And that's going to. But it's still emerging and evolving. And so you have to really look at what each jurisdiction allows and figure out what's good. And so for the lawyers watching this and continuing legal education, which I imagine most of you are, it's a great opportunity to spread your creative problem solving wings and work with your businesses based upon the jurisdiction you have. And the other thing I would remind you is that these cannabis businesses don't need to recreate the wheel when it comes to out-of-home entertainment. There's been businesses for ever doing out-of-home installations and events and creating retail opportunities in ways to make. Environment, appealing to consumers for whatever's going on. So these cannabis businesses don't need to recreate the wheel, but they're so used to figuring out everything on their own, they think they have to redo this themselves instead of just hiring an outside firm that can help them plan their business. There are businesses out there that I work with all the time doing exactly that nationwide, and that is a great thing because there's no reason to have to try and do this all yourself. And the opportunities are there. So that's exciting. Temporary public events is another one that kind of started, but it's still in its early stages of what's going to be allowed and not allowed. Many jurisdictions don't even allow public consumption at any sort. There are only a few states that allow for these temporary public events. Again, it requires a special local permissions or state permission. Typically, each jurisdiction varies, but it's for less than a week or, you know, a couple days where it's like, okay, you're going to be at the state fair and much like we're going to have a liquor garden, you can go make a cannabis garden over here or okay, there's this event coming up and you're going to help organize a cannabis consumption event for, I don't know, there was like a High Times Cup or something like that. So that might be something. Or maybe there's a concert that's coming on like a big music festival. Um, you know, like that where there's going to be a three day festival and the famously in Golden Gate Park in San Francisco, they have outside land where they created something called grasslands, which is basically as people were going to this three day concert throughout Golden Gate Park in various areas of the park along the way and within the grounds of the concert, there were also cannabis consumption stations where you can go and walk inside and consume, and it was legal. So they vary on whether event organizers can directly sale or they have to just organize it and bring in outside retailers. There's always going to be rules about premises and all the other things that you need to do about where it's going to be with security and other different things that need to be done to make sure it's legal. Private events, as we talked about before. It's kind of outside the scope of this presentation, unfortunately. And the reason why is because if it's private, does the public have a right to regulate it? And the answer is typically no. And so typically when jurisdictions provide regulations, it is for those that are open to the public, because what happens in private property happens on private property as long as it's not breaking laws. So we don't really have a lot on that yet. Again, regulators are so overwhelmed and exhausted, which is working on the supply chain rules that consumption itself is just not really on the forefront in many jurisdictions minds, even though it would be a great way to help stabilize and create economic opportunity. Um. It just becomes a question of when is it public, when is it private and are we going to be? And if it is private, does it fall under the regulation? It's not clear. And so is the attorney who's helping as they're doing it. I've given some examples in this slide about what may or may not be a public or private typically, um, and even if it is private, but you buy it, you have to buy a ticket. Does that include a right to consume? How does that affect things? What I would probably suggest is look, look at the other quote unquote sin industries like alcohol, um, where or gambling or something like that where, you know, if the city or the state has already created more robust regulations in those areas about private and public event, it may not be a 1 to 1 on point rule, but you can kind of see where the state is thinking about what it needs to do to regulate for public safety and what it's concerned with and what it's not when it comes to public versus private. And it might allow you to at least help start to form. Well, okay, This is obviously Bozo knows in these other industries. So we definitely want to stay away from those because if we hit on those topics, we're probably going to have the same problem and start to kind of work down to see if you can at least start to limit. What's happening. But again, it's private. So you're more concerned with your clients and just making sure that it's staying private and staying as legal as possible. So that's most as I can say about private events. But this is sort of I don't want to call it a loophole because it's not a loophole, but it's what a lot of creative entrepreneurs are doing is they're thinking they're just creating private events and allowing consumption without worrying about whether they have a license and to varying effect and varying levels of not necessarily abuse, but how brazen they are. And because of that, it becomes a question of whether or not this count. I mean, I remember one large one was a company created this huge outdoor public concert, and when they made it, your ticket to entry was you had to have their consumption product in order to come in. And so once you were in there, it was a private event because only those people that owned this product could come into this concert. And so they were allowing consumption because they said it was a private event only for their patron close. It didn't get in trouble, as far as I know. But again, hard to say so. What are we currently view as private weddings? Invite only social gatherings, maybe a private residence event. They're all listed right here and this is what we think are private and not necessarily going to be subject to regulations. But again, remember what I said up here on this slide. It's hard to know. And that's really the main types of consumption. The last thing that we talked about was anybody else that's out there that's not falling into one of these functions and everything. So what we're focusing on here is all the different ways that we might be able to come up with opportunities to allow consumption in what state. And since this is the course, I feel it's important that we talk about what states allow it. And when you're looking at this list, it's incredibly small. It's a handful. I mean, we're talking less than ten here. And while there might be over 30 states now in the United States with some form of legalization for cannabis, whether it's medicinal, recreational or both or or only or otherwise, this is the only state in our union right now that are even considering out of home consumption regulations right now. So most states, it's still illegal. And so it really becomes important. So let's look at how these states are kind of trying to do with it. Alaska likes to claim that they're one of the oldest states that have been allowing it, but they only really allow consumption. They only they do allow they do allow consumption. They do allow private events. And so Alaska allows for licensed retailers to seek endorsements. But it all has to go through the local government. And we meet all the necessary requirements. They have explicit rules on what can be sold and how much potency can be used, where and how it's done. In fact, they have regulations in place that you can't even do anything. But smoke may be on site. The concentrates are beverages that contain these ingredients have to go home. But you can also buy these things to go home with it. But actually trying on site is actually very limited. Again, they also have rules about how it's separated and how it's going to be not able to see that there's actually consumption going on inside and smoke free. So how do you do that unless it's outdoors or indoors with insane costs for ventilation? So I don't know how successful Alaska has been in their lounge environment and making sure that all these things are happening correctly. They also have a lot of the typical restrictions that we see that I mentioned before about uses of alcohol and tobacco products. They don't allow for bio bring your own. They can't produce specials to try and get people to drive there. And they also are limiting who is allowed to go in there. So in other words, there's other rules that may even apply by the local jurisdiction. So while Alaska is allowing lounges to be there, it's very limited in what they're allowed to do. And it doesn't sound like a place where stay there for a long other than to maybe smoke what they bought and go out, which is better than nothing, but not great. I don't believe that Alaska has temporary event licenses. But what I do know is that since they do have licensed retailers may seek an endorsement authorizing On-Site Consumption, it may be able to be for something beyond just their it could maybe be in the form of event or something similar, but it's a little unclear to me. And as I'm not in Alaska, an attorney, you need to consult an Alaskan attorney. This is just supposed to be an overview. So California, they make consumption lounges part of the retail license. And California actually has two separate licenses. They have a consumption lounge licenses, and they have temporary event licenses. So for the lounges, they allow you have to have a retailer license, which is the same thing as if you're selling. So in many situations, it's like you maybe want to be a public dispensary or you want to just be a consumption, but in either case, you are going to need a license to sell the cannabis to the end user. Daily limits apply pursuant to the regulation and it still has to be a separate premises for consumption and it still has to be subject to local permission and approval. Now, most local jurisdictions in California, they don't allow consumption. I think there's under 7 or 8 counties maybe that are allowing any form of consumption. Famously, Los Angeles City itself does not allow it. The largest jurisdiction in California does not allow any sort of On-Site consumption at all. West Hollywood and other neighboring cities nearby do so. A lot of people that live in LA will then go to the neighboring cities for this. But LA itself does not. San Francisco and the Bay Area are a little more open minded and have allowed consumption licenses in some of the other Bay Area cities like Oakland. But all the same, it's it's all subject to local rules. And if the local jurisdiction is banning it, it's banning it. They do allow for all types of consumption on the premises provided that there is a proper license. But as I said, they're still not allowing non-cannabis food or beverage products or anything else to be done within there as well. But now they're slowly starting to allow that and they're going to allow for food and prep and otherwise, as long as it's being done in a proper legal way, much like Alaska and everywhere else, there's rules that you have to be 21 and older. I don't believe that they have a medicinal exception for 18 year olds, but I could be wrong about that. Um, again, it can't be visible from any public place or non-age restricted area. And they have very specific operating hours and other other requirements that are just there for all lounges. The other type of event license, which I think is woefully underutilized right now, is the California temporary event license. You can get a California event organizer license for one year and then you get temporary events for each event you want to do during that year. But you have to get the separate license at least 60 days beforehand. All jurisdictions, local jurisdictions have to allow it. And that means that most places it's been state limited to fairgrounds and other physical locations or cities where counties allow it. And since most local jurisdictions are allowing it, it's not being used. Now, if the state were to have something like a catering license, that would be one thing. But at least with this temporary license, what they could do is potentially, if you know, there's going to be a pop up immersive museum or something like that, you might be able to create for a short period of time an elevated consumption night. Or maybe think about like there was this light installation during the holidays and I noticed that it was over an acre or so of land and people would walk through and saw all these different holiday light installations. And at both ends, both the entrance and the back end of the installation, there were beer gardens and this was all outdoors. Why couldn't there be something similar set up with high walls for a cannabis consumption? I don't see why not. But it would have to be allowed by the local jurisdiction and as a temporary event licensee. So the interestingly enough, the event license, you can actually be a retailer or actually sell it. They are not allowed to do anything with that. They might be allowed to hold these other licenses, but they have to actually bring in the actual supply chain licenses within the rules and regulations to be allowed to actually make any commerce happen within these temporary events. So the event license, the holder typically is more of an event organizer than a retailer, if you will. Um, they're also responsible for all safety reasons and everything else that comes with that. And they are also supposed to be how they have time limits and other things in place and how they make sure product are going to and from and what happens with unsold product at the event. And these are all regulations that are there. Colorado has taken a slightly different approach. Colorado is basically calling them hospitality establishments, and this allows for a little more flexibility in Colorado. These hospitality spaces can be consumed on site. It doesn't have to be retail only. It can be a hotel, it can be a food establishment, but it has to follow the regulations. And there's certain restrictions on what other types of license they can hold, such as testing licenses or engaging in the manufacture of product or infused products because they don't want to. They feel that the public safety concern. Um, they also have similar rules about who's allowed to come on and again always you'll see no alcohol or smoking of tobacco or products of tobacco in these areas. Um, they have different uses of restrictions on time for operating and otherwise. And so what you're really starting to see amongst these West Coast states is they're looking for ways to allow it. But at the same time, they're also very concerned with public safety and they're very limiting in what you can and cannot do right now. And that goes back to my earlier comments in this presentation about how it's so important for the professional advisers to these businesses to really understand what the goals are of the business are and what they're trying to monetize and then determining what they can and can't do based upon that. And so it's just very jurisdictional specific. As we go east, we can look into Illinois. That also allows for lounges in Illinois. It's all about what the local jurisdiction allows. As we talked about in Colorado and Alaska and California, there's actually other restrictions or rules that straight up allow these licenses at the state level and require state licenses. But in Illinois, it's all about getting local jurisdiction approval and where you're allowed to do it, how you're supposed to do it. And it's not a lot on the books right now for Illinois, but they are at least acknowledging it's possible. Similarly, and I know I'm going east and skipping over a really big one in Nevada, but I'm saving that one for last because they're the furthest along. So I promise you I will talk about Nevada here. Um, as far as Massachusetts is concerned, they also have a local jurisdiction approval, but they just approved this program in 2022. Uh, it's not even fully implemented. They don't even have an implementation yet. They just said it's going to be allowed. Um, they found one location in Worcester, Massachusetts that fell under the private membership club that does not sell cannabis itself, but you're allowed to come in there through a service and everything and you're allowed to enjoy recreational consumption once you're in there. And they're allowing it because. The private, which again goes to the public and private distinction we talked about earlier. And so far in Massachusetts, this particular private club has not actually been a problem so far, especially because the patrons are able to go nearby and buy from another retail store and bring it in. So they're starting a pilot program. At least they were talking about it, but it just got scrapped, though. Massachusetts is something to monitor. They're trying to get there, but it's not there yet. New Jersey will get to it the same way. Michigan, like California, Nevada and Alaska are one of the more mature markets in this regard, but still a long way from mature. They do allow for designated consumption establishments, and when you do that, you're not allowed to do retail sales. It's almost the exact opposite of these other jurisdictions where this thing you must be a retail seller. Here in Michigan, you can't do retail sale, period. It seems to be more of a bring your own exemption. A much like what we're seeing in Massachusetts so far, but feel that in Massachusetts, that's more because of the fact that Massachusetts is still figuring out their regulation. But Michigan went a different way and that that that does matter. And so, again, it depends on where you are and what you're doing. And as you can see from this slide, there are other reasons. But once again, it all seems to fall on the same thing. It's got to be smoke free or odor free. It's got to be. Concealed from public age requirements of 21 and over in place. They definitely want odour, control, ventilation. It's all still there. They also have an event license in Michigan, which has been much more successful than California so far. They've been a lot more mature of a market out there in the sense that while California is doing some fun things and working on them, Michigan seems to be moving a little more smoothly with that. They call it a marijuana event organizer license, and each retailer must do so as to pick a sale in a designated area for these events. They are not authorized to engage in operations much like in California, and they are not allowed to do them for more than a week at a time and again with 20 years of age and older. So sales activities, excuse the typo there may only occur within specifically designated areas. Can't do mobile sales. Like I said, though, perhaps one day delivery services are allowed already in California, for instance, for retail or some other jurisdictions where you can have a dispensary deliver it to your home or other location. And that is something that is occurring a lot right now. But actual mobile sales of products is a long way off. It may never be allowed. And in many jurisdictions they're just straight banning it. I always think of the old jokes about the ice cream man from back in the day and the ice cream trucks and ice cream, women for that matter, driving trucks. So when you're doing these designated consumption establishments in and doing all these things in Michigan, there's more availability. But again, just like with every other jurisdiction and every other state, what's the local jurisdiction going to allow or not allow? What is the state allow? And then you have to talk about some of the other concerns we're going to get to later. New Jersey, much like Massachusetts, they want state and local approval. It just got approved this year. We don't have anything yet. They only want the lounges to be enclosed, but they can be outdoors. They are going to be allowing lounges again. We've got that 21 and over component. And again, they're having the no food sales issue here. And I'm just I'm not really clear on why local jurisdictions are so concerned that if the establishment is following all the food code rules and regulations of their their jurisdiction, why when people like to eat, are they not being allowed to have this as an opportunity for revenue? It goes back to breaking the code. How exactly are you going to create a cannabis lounge business as a commercially viable business that's not reliant on the surrounding ecosystem that you have? Or if you're not owning the building and other opportunities within it? I mean, I know, for instance, what if you have like a nightclub upstairs with like just music and stuff, with a consumption lounge type thing. And then downstairs you have a restaurant. If you own the building, great. But what if you don't? So this is something that is still being worked out everywhere. And it's just I feel regulators right now are just trying to limit what's going on because it's so new that it's enough that we're they're allowing cannabis consumption in public. They don't want to be trying to watch for other health concerns right now. And that makes sense. But hopefully as the market matures, that changes. New York also has not put its rules completely into place yet, but it has a lot of rules in there and regulations that have come up with and it will be allowing lounges. As I'm running out of time, I'm going to go quicker through some of these slides because there's some points I still want to hit on. But you can see that it's all about local rules. It's all about protecting against illicit trafficking. And they're still trying to figure out what it is. And much like Nevada and they're trying to ensure that proper land use permissions are in place. Again, still very new in New York. It's only been the last couple of years. They're still trying to figuring it out and considering they have a freeze on the supplier licenses going on because of some certain litigation that's happening in New York, Lounges, too, are at issue because all licenses are sort of not moving as quickly as that state would want. So that's one to monitor and consider, but it's coming. Lastly, we talk about Nevada, because Nevada's is a very big entertainment, forward thinking state, and they are one of the only states right now that are expressly allowing independent consumption licenses. You can't sell it for take home, but you can't sell for in-store consumption. Um, even food or other beverages are going to be permitted. Nevada is looking at it more as a hospitality thing and making sure that as long as they know where the material, the activity is occurring, that it's a one off situation, that they're going to allow it. But they're also merit based to make sure that every application that they grant for these licenses are going to be and they're limiting who can hold them. In fact, if you want to be a entertainment facility that allows one off consumption, you can also be a retail. So you have to make you have to make some choices for dispensaries and the like. And right now, Nevada is really dealing with sensitive use restrictions, sensitive use location restrictions are things like you can't be within X number of feet of a school or another cannabis business or the like. And right now they have a pretty large for instance, in Vegas, they have a pretty large, uh, uh limit on what those sensitive use cases are. And, you know, you think of somewhere like the strip in Vegas where why are they blocking all these different pieces that people want to go up and down like they can in the casinos and go from casino to casino and drink to drink to drink with bars all over the place. If they're allowing public consumption of cannabis in specific areas, why should that be any different? So they're still working through that and that's something that's being worked out. There's more that we can get into in Nevada is definitely got some very robust regulations. But again, this is an overview of the country. So it depends on which state you're talking about. Another big issue with consumption lounges, as I mentioned, and out of home consumption in general is insurance. Um, many are following Graham shop rules which are similar to Dram shop rules for alcohol businesses that says, look, you can be consuming on premises and you're held liable for selling or serving the alcohol or cannabis and what it causes. That's what Nevada just did recently. But they gave a lot of civil liability protections like they do for alcohol establishments, whereas Michigan basically said that you can go all the way back. You're not there's no protections like we're going to go out. And now that creates real coverage concerns. And when you have federal illegality on top of that, it becomes questionable about how many insurance companies are really willing to do this and what type of, um, exclusions they're going to apply to their policies. And then also what happens if you have product liability concerns where somebody says, well, this guy told me I'd take this and I'd feel this way and I felt that way and I got really sick. Um, that's going to be possible. And insurance is very concerned with that. And like I said, these are still a lot of them are cash businesses because of banking issues and credit card companies refusing to take a cannabis proceeds in sales right now. So theft and vandalism become a major concern and it becomes issues for insurance. So insurance is very important for all of this. As we also mentioned before, we always got to talk about banking being difficult. Federal illegality, Section 200 and how horrible taxation is for these state legal cannabis businesses that because it's federally illegal schedule one, they're still considered to be trafficking, which gives them horrific tax rates, which makes it very possible impossible to succeed financially. And that's where working with other businesses in the area becomes one way to try and crack that code. But it's still an issue that is being addressed. So as we've gone through all these slides and we've talked about all these different things about other states going on and we're seeing it still coming on, why does this matter? Well, in an industry where taxation and market prices continue to harm the bottom lines, and because we are sitting here talking mostly in focusing on the sale of cannabis as an agricultural commodity, we're missing a major part of the industry, those that actually consume. Still, there is a major community to it. They feel it's their lifestyle. They identify it to it in some way, shape or form. And while brands are trying to tap into that to some form or another right now, how do you do that if you're not able to get to the public? How do you do that? How do you create brand loyalty if there's if you are not able to go and have experience like, oh man, I tried such and such as blank pre-roll product or whatever and just had the best experience at this concert. Great. That's wonderful. So what are you going to do with that? You know, you're going to want to go back and get it again because it was a known commodity. So that creates brand loyalty, but it also creates new revenue streams that aren't touching, as I've been repeatedly talking about. It creates the opportunity to work with other businesses or create other business opportunities so that you're able to stabilize the lounge economics or the consumption economics, or when you're talking about it being an add on to some other event or installation, it just becomes a way to enhance and create a new revenue stream. So when you think of all these different experiences and enhancement opportunities, really the sky is the limit and there's ways to structure this even today within those jurisdictions that are allowing it. But you've got to be able and willing to think it through and look for what can and can't be done and continue to educate local regulators, whether at the state or local level. I, for instance, am on the executive committee of the cannabis section of the Los Angeles County Bar Association. We recently did, in January 23rd, a historic first of its kind professional networking event with regulators and city officials and others and attorneys and stakeholders at a cannabis consumption lounge. It was a lot of fun. It was amazing to hear all the regulators be like, Oh wow, this is really nice in here and this is so lovely. And realize it wasn't such a drug den or horrible place to be. In fact, was a very professional networking event that felt no different than any other networking event where alcohol was being served. And in fact, it was very upbeat and fun to be at. And so more and more when regulators see that and see that it's not what they're fearing. They're more open to discussing it, especially when they hear about the public safety and revenue intact opportunities that are created. So with cannabis, it's still about working through and fixing regulations because at every level of regulations it's still a work in progress and entrepreneurs now are able to really start doing a lot of things in these jurisdictions. And it's a final frontier to me because it creates an opportunity to have this ability to create new deals, create new revenue streams and create new ways to finance that. Don't get around, but work within the restrictions that many cannabis businesses are facing right now. And that's important. And, you know, it's not just about lounges. It's about the opportunities surrounding these businesses, like for pop up events or catering like we talked about. I mentioned the Oakland Adelanto Coliseum examples earlier using temporary licenses to create one off opportunities or short opportunities is a great way to do that. And again, if it's done correctly and safely, like think about if you're going to a band that's well known in a community to have a component of cannabis consumers and there's a immersive experience surrounding them, and then maybe they can go to a tent afterwards and get that band. Licensed cannabis products to try that day and then go back out and check it out. The more the business opportunities are endless and that's good for ancillary partners because they don't have to deal with the regulations, but they can offer unique and combined experiences with an Upcharge. And again, it's just that to me, in this environment where the industry is hurting, to get capital, hurting, to get through regulatory ups and downs and heavy taxation, it's a great opportunity for these environments and these businesses to look for new ways to make money and create opportunities for themselves and work with other non-plant touching businesses, which is where the industry is going. So that to me is more about what we're talking about here. And I just feel like it also when you have these ancillary entertainment experiences, when you talk about it from the regulatory standpoint, it's really important because you're lowering the potential for public risk. If someone goes somewhere and they consume and they're high for a couple hours or whatever, it may be elevated, whatever you want to call it. They have something to do. Therefore, they're working it off before they go home and go to their next thing. They can actually do something that promotes public safety and keep drivers off the road. So to me, the sky's the limit in this regard. And I just think it's very exciting. I think that there are a lot of new opportunities happening every single day. There's some contact information up here. If anybody wants to call me with any further questions to touch on more, maybe dive into more specific opportunities. It's a new market. It's still getting figured out, but businesses are adopting it and non-plant touching businesses are interested in, especially on the entertainment side. I'm seeing it every day, so hopefully this opened some people's eyes to some of the opportunities and maybe help them know what they want to look into more to help their businesses. But more and more, we're going to see public consumption as a possibility, as the stigma lessens and working to help businesses embrace that in a responsible and legal manner is going to be really important for the lawyers and professional advisors and accountants. And so with that, thank you so much for spending this hour with me. It was a pleasure to be a part of Quimbee's program and have a wonderful evening day or whatever you're doing for the rest of the time after this presentation. So long.