IRS 280e Tax Code Impact on a Cannabis Financial Model

cannabis financial models

The cannabis businesses are allowed to deduct the cost of goods sold (COGS) from gross receipts under IRC 280E. Most cannabis entrepreneurs or operators face financial hurdles when it comes to defining the complex structure of  “280E” and its impact on the taxes of the cannabis business. Most of the Cannabis businesses are all-cash businesses […]

How to read a cash flow statement

How to read a cash flow statement

Knowing how to read and interpret a cash flow statement may help you extract valuable information about a company’s financial health, whether you’re a working professional, business owner, entrepreneur, or investor. Is your cash balance higher or lower than it was a year ago? What caused it to rise in the first place, and why […]

Dispensary Financial Models

dispensary financial models

Financial models for a dispensary detail the cash flows of the business based on either assumptions or market data from your existing operations. Financial models are often required for your dispensary application. if you do not have enough liquidity to open your dispensary, financial models are required to get investors interested in the business opportunity […]

What Is an Accredited Investor?

accredited investor

An accredited investor is a person or legal entity with a special status under financial laws, who is allowed to participate in non-registered investments, since being considered an individual with the experience and means to participate in riskier investments and bear any potential losses. The Securities and Exchange Commission (SEC) concedes companies and private funds […]

Victory for Hemp

Illinois Hemp Ban

Illinois Hemp Ban Overturned in Rural Oakland The City of Oakland tried to ban hemp farming inside its city limits by claiming authority under the Illinois Municipal Code section regarding Urban Agricultural Areas. Collateral Base represented the prejudiced farmer and had the municipal ordinance tossed by an Illinois Court. Because the City of Oakland is […]

Banking For Cannabis Companies in Illinois

cannabis banking services

Cannabis companies are notoriously tricky clients for banks and credit unions. An innovative program in Illinois hopes to fix that. Cannabis is a classic example of an “underbanked” industry. The tangled and contradictory web of state and federal laws have convinced many banks that cannabis simply isn’t worth the trouble. Illinois hopes to fix that. […]