If you're working off an old MMAR and already have genetics, then check No. If not, then "technically" under the new Reg's you should be checking the Yes box and hooking up with one of the LP's for their nuclear-bred genetics.
Could HC deny your app for perhaps already purchasing illegal genetic material and checking the No box...prolly? It's gonna be interesting to see how HC enforces this rule on brand new growers?!?! There's only like a million sources of genetics online....lol. Tweed wants your very first grow to be schwag so maybe you'll give up and just purchase from them. Again, gonna be interesting to see how this is enforced.