Any estimates or forward looking information or statements provided are accurate only as of the date of this call, and the company undertakes no obligation to publicly update any forward looking information or statements or supply new information regarding the circumstances after the date of this call, Please also note that all references on this call reflect currency in Canadian dollars unless otherwise stated. With that, it's my pleasure to turn the call over to Orin Schuster, CEO of I'm Cannabis. Orin, please go ahead.

Thank you, Amo.

Good morning, and thank you for joining us today. While presenting the 2024 full year results in March, I focused on the progress we made internally both strategically and operationally. The efficiencies and integration to build the solid right sized foundation to deliver on in 2025. In q one twenty twenty five, we can see in the group's financial results that we have hit our target. In q one, IMC reached net profit with an 87% improvement in our gross margin four. Our focus continues to be on execution. Shifting our resources to where we see the biggest ROI and leaning into our integrated structure. In q one, with our integrated supply chain, we launched a total of 12 new strains in Germany, driving about €3,000,000 or 39% of our cannabis flower sales in Germany. To put this into perspective, in the second half of twenty twenty four, we imported a total of 11 new strains to Germany. For an upside in sales of about 14% in Germany. In q one of twenty twenty five alone, we have already exceeded the last six months of 2024. Needless to say, I'm very proud of the work the entire team both in Israel and in Germany, put in to deliver these results.

Moving on to Israel, we see that the shifting focus and resources towards the German market and supply delays impacted our Israeli business. While the Israeli revenue declined by 66% versus q one twenty twenty four, Our German business grew 569% versus q one twenty twenty four, offsetting the revenue decline in Israel. In addition, we are seeing that the cost cutting measures produced by shifting our production facility in Israel in 2024 a flowing through to the financial results leading to the increase in gross margin of 87% and an increase in gross profit of 94%. To sum up, the first quarter of twenty twenty five I'm delighted to see how the efficiencies and integration of the parts two years is starting to be visible in our financial results. Our goal was for the group to be positive. Which we achieved this quarter. Our target now is to continue to execute our strategy. I will now hand the call over to Ori who will review our first quarter twenty twenty five financial results. [indiscernible] Thank you, Olin. Before reviewing our Q1 results, I would like to emphasize one of this quarter's milestones. The adjusted EBITDA in q one twenty twenty five resulted in a profit of 600,000.0 compared to an adjusted EBITDA loss of 2,200,000.0 in Q1 twenty twenty four.

Which is an improvement of almost 3,000,000 The company achieved a net profit of approximately 200,000.0 Our Q1 results were mainly impacted by the following points: The German region revenue in Q1 increased by 569% versus Q1 twenty twenty four. And we continued with our expense reduction process which resulted in a decrease in operating expenses, of approximately 56%. Versus q one twenty twenty four. I will now take you through overview of the Q1 twenty twenty five financial results for the company's operations. Revenues for Q1 twenty twenty five were 12,500,000.0 compared to $12,100,000 in Q1 twenty twenty four. An increase of 400,000.0 or 4%. The increase is mainly attributed to the accelerated growth in Germany, with an increase in revenue of 6,600,000.0 and decreased revenue in Israel of $6,100,000 net. The decrease is attributed to the Iranian deal cancellation which resulted in a decrease in revenue of approximately $3,500,000 compared to Q1 twenty twenty four. Germany's share of total revenue in Q1 twenty twenty five has significantly increased compared to the corresponding period in 2024 to 62%. This increase has had a considerable impact reflected in a higher average price due to favorable market conditions and growing demand.

The cost of revenue for Q1 twenty twenty five were 9,100,000.0 compared to $10,300,000 in Q1 twenty twenty four. A decrease of $1,200,000 or 12%. This is mainly due to the $600,000 slow inventory clearing in Q1 twenty twenty four. And other expenses decreased Q1 twenty twenty five of about 600,000.0 net. Gross profit for Q1 twenty twenty five was 3,400,000.0 compared to $1,800,000 in Q1 twenty twenty four. An increase of $1,600,000 or 94%. G and A expenses for Q1 twenty twenty five were 2,000,000 compared to $2,300,000 in Q1 twenty twenty four. A decrease of $300,000 or 14%. Selling and marketing expenses for Q1 twenty twenty five were 1,300,000.0 compared to $2,300,000 in Q1 twenty twenty four. A decrease of 1,000,000 or 44%. The decrease is mainly attributed to our NIM revoked agreement of approximately 800,000.0 Total operating expenses for Q1 twenty twenty five three point three million compared to $7,400,000 in Q1 twenty twenty four. A decrease of $4,100,000 or 56%. Operating expenses ratio for Q1 twenty twenty five was 26% versus 77% excluding the onetime expense outcome of our NIMD cancellation for Q1 twenty twenty four. Representing an increased efficiency of about 66%. The efficiency ratio improvement results from decreased operational cost and increased revenue.

EBITDA for Q1 twenty twenty five were $600,000 profit, compared to loss of $5,000,000 in Q1 twenty twenty four. An increase of 5,600,000.0 Net profit for Q1 twenty twenty five was 200,000.0 compared to loss of $6,000,000 in Q1 twenty twenty four. An increase of 6,200,000.0 Diluted income per share for Q1 twenty twenty five was $0.09 compared to a loss of $2.52 per share in Q1 twenty twenty four. As of the balance sheet, cash and cash equivalents as of 03/31/2025, were 1,400,000.0 compared to 900,000.0 on 12/31/2024. Total assets as of 03/31/2025, were 44,934 compared to 39,188 as of 12/31/2024. Representing an increase of 5,746 or 15%. The increase is mainly due to increase of $2,850 in trade receivables dollars 2,218 in inventory, dollars 1,031 advance to suppliers. Total liabilities as of 03/31/2025 were 41,761, compared to 36,042. As of 12/31/2024. Representing an increase of $5,719 or 16%. Company plans to finance its operation from its existing and future working capital resources. As well as from its available credit facilities. And we'll continue to evaluate additional sources of capital and financing as needed. I would now like to turn the call back to you, Oren, for closing remarks.

Oren, Thank you. [indiscernible] q one twenty twenty five I'm delighted to see that the progress we have made internally both strategically and operationally, is starting to impact the group's financial results directly. As of this quarter, we are profitable. I will now hand the call over to the operator to begin our question and answer session. Operator?

Thank you. Or press 9 on your telephone keypad, and wait for your name to be announced. We have our first question from Oscar.

Yes. Hello? Hi. Hi.

My question is, [indiscernible] is it important to how do I say this?

For the upcoming meeting, of accepting the 25% of the new company. Why is that important given the the given time of straight capital Why is that? Yeah, why is that important to upcoming meeting and being approved of us approving the 25% ownership of Focus Yeah. Why is that point at the moment right now? Thank you.

And it's something that, we are working on, for quite some time on the regulatory side, and it just happened now but it's a long process. [indiscernible] the also, Uri, I don't know if you want to relate to that.

Yeah. I will I will take it. So, basically, since we are we are the structure of companies, are all kind of balances that we want to clear between companies and to move them from let's call it, long term loan to investment as equity. According to tax regulations, in order to do it in a in our country, you're supposed to hold 100% of the at least for the for the focus company. So based on advice we received, the best way of doing it without getting into troubles of concerning it as as revenue for tax purposes and those kind of act from the tax authorities, we must hold 100% of the Focus shares. So we had to make some kind of a deal in and use external valuation for the value of the of the focus for the rest of the 26% So we'd be able to acquire it and to be able to protect the company from a tax perspective.

Okay.

Thank you. Thank you.

To ask question, please raise your hand using your mobile or desktop application and wait for your name to be announced. There are no further questions.

Thank you, operator, and thank you all for joining our call today.