Progress Report: 7.29.22

Grasshopper Family,

We have much to rejoice in our update this week.

First and foremost, the team is in excellent spirits and continue to do incredible work as they further build what is becoming one of the examples of excellence in Michigan outdoor cannabis farming.

The ingenuity and craftsmanship of this team is second to none. Learning never stops and solutions are always the basis of our approach. This can be witnessed in everything from building our second pumphouse to the fine tuning of our environmental controls. We are doing something incredibly special.

Sales have shifted quite a bit. We started with 100% outbound calls, texts, and visits. We now receive more inbound orders than outbound calls.

But, it gets better.

We just ran out of our first round of flower!

We have two rounds of flower. The first round was approximately 3,000 lbs of flower and pre-rolls. We now have another ~3,000 pounds that we are evaluating to determine what will be suited for retail flower, what for pre-rolls, and what for biomass. We will have those estimates by next Wednesday. At our current rate, we will also be completely sold out of our 2021 harvest by mid September. And the demand goes well beyond what we have on hand.

Sales started slow because we were new, there was a market event that drove prices down into a frenzy we chose not to participate in, and we intentionally entered softly when we did to make sure we could learn from early activity. Since then, we have picked up some of the largest retailers in Michigan. One places regular orders of over 400 lbs. That is just one account, of which we can see a classic Adam selfie.

Retailers have taken note. Consumers have taken note. The feedback has been fantastic.

This makes the next phase even more exciting - the 2022 harvest.

The plants continue to thrive. While the pictures look amazing, seeing them in person makes anything else pale in comparison. Which brings me to make a strong recommendation.

Please consider visiting the farm in the months of August and September.

It's hard to explain the feeling when visiting. There is an undeniable energy. All who visit feel it. All who visit benefit from it. And, very few in the world have had the opportunity to do it.

Both the indoor and outdoor plants are smiling and happy...and some are starting to flower!

The team goes to great lengths to analyze each plant. Visual inspections. Sap analysis. Soil analysis. Each week we hold classes as we continue to seek efficiencies and best practices.

We are forever learning.

I am always fascinated with our Amish building partners. They are kind. They are efficient. And they do it in a way that makes me wonder if many of the mainstream rules and precautions are really helping us, or just creating a space in which people think less because they are told what to do and how to do it. Either way, we are grateful for the good work they offer and how they continue to prioritize us.

Two of the pictures of some behind the scenes work. One is of a desk covered in compliance materials, which Caroline and Von have been absolutely owning. The second is of ladybug eggs. Ladybugs are SO helpful in keeping our plants healthy and protected. We appreciate them so much.

People and community are the foundation Grasshopper Farms sits upon. Paul's daughters were very grateful to participate in the 4H event and we were happy to support them. My only regret is that I was not at the farm to experience Aaron's culinary skills. We were extremely happy to be able to help a few other kids at the 4H event as well.

The news of New Jersey is traveling fast. This is a densely populated massive state with huge potential and a very limited number of initial licenses, of which we have been blessed to receive. This opportunity has brought Grasshopper Farms into the national conversation...because of what we have accomplished in Michigan and what we have been granted in New Jersey. Both components are vital.

We are an organization of people helping people. That will never change. That being said, this is also company of local teams. So, as we expand into new states we will organize ourselves as (what I describe as) a decentralized MSO, multi-state organization. Each team will be local. Each team will run their farm. Each team will be empowered. Decision making will remain local.

And all teams will meet on a regular basis to share best practices, ask questions, and support each other. Michigan will initially mentor New Jersey as they get organized. But, it won't be long before New Jersey is offering ideas that Michigan will benefit from.

This strategy is somewhat of a departure from the more common MSO. I am not saying one is right or wrong. I just believe keeping teams local and empowered will ensure they thrive, stray agile, and feel fulfilled.

These are incredible times. Unprecedented, perhaps. We have been successfully navigating the stormy seas of Michigan and been given the blessing of the year one limited licensure New Jersey opportunity.

We are gracious.

We are Grasshopper Farms.