Blum Holdings Inc (BLMH)

[La Puma]

All - My team and I (La Puma Group) performed a 7 yr DCF with a FFCF sensitivity input variable analysis. We created a subsequent enterprise valuation (EV) model for TRTC using the outputs of the DCF model as inputs to the EV model. We then added two dimensions to the parent model: 1. binary event triggers for future political events and outcomes (UN meeting, DEA scheduling decision, ballot initiatives, etc) and 2. A time=0 function that feeds back to the DCF model to determine when future flows kick in. Bottom line: It's a model, but we estimate the reliability of the model to be around 0.8 - or 80%. Model results: TRTC exits 2016 around $2.25/sh, rising to $5.60/sh by August 2017, topping out around $14/sh in late 2018. Saturation takes over we expect it to grow marginally thereafter, anticipating a buyout or merger by 2020. Questions, please feel free to ask. Disclosure: 225k shares at $0.093/sh. Thank you. Puma