2018 saw a flurry of investments, mergers and acquisitions. Altria invested in Cronos for $1.8B and Juul for $12B(!), MedMen purchased PharmaCann for $682M, Constellation Brands invested $4B in Canopy and the list goes on. We all hear about these big deals but in terms of volume, investments in and acquisitions of, smaller cannabis company deals far outnumber these highly publicized ones. Acquisitions or investments in small to mid-size cannabis companies in 2019 are on track

As most managers will tell you, finding and retaining "good" employees is not only a critical function of a business but one of the most difficult as well. In the cannabis industry, it may be twice as difficult. With all the hype, everyone is clamoring to get in with or without the necessary qualifications. Various studies have estimated that it costs an average of 20-50% of annual wages each time a business replaces an employee depending on the particular job function. For a

In our previous article, we discussed how maintaining inventory on the accrual basis of accounting is a requirement of the IRS. In this installment we will discuss why we believe the accrual basis is best not only for inventory accounting but for overall accounting. There are 3 main reasons why we believe using the accrual basis of accounting is the best practice for cannabis producers: 1) Accrual basis financial statements provide better understanding of financial operating

In the first 2 installments of this series we discussed the differences between an independent contractor (I/C) and employee and classification of exempt vs. nonexempt employee. Now that we've determined that an individual is an employee, we need to ensure we document their hire correctly. We all understand that this industry has been "off the grid" for decades, without having a legal business entity, paying people under the table, etc. Now that many existing cannabis operato

In the first part of this series we discussed the differences between an independent contractor (I/C) and employee and the risk of classifying an individual incorrectly. In this installment we will discuss the importance of classification of employee type. As with determining whether an individual is an I/C or an employee, the next step, determining the classification of exempt or non-exempt employee is equally as important. The Fair Labor Standards Act (FLSA) requires that e

In this 4 part series I'll discuss critical aspects of employment in the cannabis industry. Having employees comes with significant rules and responsibilities. The 4 most prevalent issues we will focus on are: 1) Employee vs. Independent Contractor (I/C); 2) Exempt vs. Non-Exempt; 3) Proper documentation; and 4) Workers' Compensation and Unemployment Insurance. In our industry in particular, many who have been operating "off the grid" are many times not aware of the numerous