While we already test for hemp and hemp-based products, the market for CBD products in particular has skyrocketed during the past year. This new demand opens new opportunities for testing. Furthermore, unlike cannabis which is still illegal, and highly regulated, hemp and cbd products can be tested at much lower cost. Meanwhile, we will continue to focus our compliance cannabis testing operations Berkeley, Massachusetts, and Portland locations. We are also continuing to work on innovative projects through EVIO Biosciences, and we are experiencing another wave of requests for consulting services.

With California's entry to the adult use market, and stringent new rules, EVIO was prepared to expand in the state. We acquired a reputable medical cannabis R&D lab in Berkeley and converted it to a testing lab. We also acquired a lab in Humboldt county, and mobilized plans for labs in Southern California. 2018 was a challenging year, as the Massachusetts lab was forced to relocate, and we slowed growth in Oregon. The Oregon market for testing dropped off as quickly as it ramped up after there was enough tested cannabis in the state's inventory to serve demand for years. We purchased a larger lab and property near Portland, and consolidated all operations to two Oregon labs. Meanwhile, the California state rules for testing resulted in very high costs, so we slowed expansion until Berkeley and Massachusetts labs were fully up to capacity.

from Oregon allowed us to develop a playbook for lab operations. This enabled our expansion plan - and strategy to dominate hemp and cannabis testing nationwide. We acquired a small lab in California, and captured labs spun off from from Palliatech (now Curaleaf) in Colorado and Massachusetts. We also engaged in a license agreement with EVIO Labs Florida, and acquired a 50% share of Keystone Labs in Edmonton, Alberta. Meanwhile we continued to standardize our operations, implement information systems, and begin work on EVIO Biosciences and launch new R&D initiatives.

Our success led us to other US states where we helped dozens of clients launch their cannabis businesses. We also got actively engaged in the industry, providing market intelligence, publishing the Medical Marijuana Desk Reference, and consulting with government agencies. Today, several of our clients are operating thriving cultivation and retail locations. Several have already had a successful exit. Also during 2015 we helped the founders of a small medical cannabis testing lab in Bend Oregon get the lab ready for the recreational market -- and a whole new regulatory paradigm. We acquired a majority stake in the lab, and the next phase began.

Our consulting work led us to discover that despite the existence of nearly 40 labs across Oregon, Cannabis testing was a critically under-served segment of the supply chain, and offered the greatest opportunity for us going forward. Testing also aligned with our values of safety and compliance. We rebranded Signal Bay to EVIO, and prepared to serve Oregon when the new testing rules dropped in October, 2016. The combination of the adult-use market and more stringent testing rules resulted in a four-fold increase in testing demand almost overnight. We very quickly learned how to operate a network of labs most efficiently

We got our start when we helped a few aspiring entrepreneurs in Nevada prepare their business plans and win 8 cannabis licenses. Consulting allowed us to fully understand the cannabis supply chain, and determine how we can create the most value. We also participated in Nevada's emerging industry by participating with ArcView, launching the local Women Grow chapter, and advocating for cultivators at the state's laboratory advisory council meetings.