Blum Holdings Inc (BLMH)

[IndustryParticipant]

Note the inclusion of expansion costs regarding multiple sites ;).....

That would include management salaries, which would be 100% taxable. Let's say management wanted $2MM compensation. All $2MM taxable.

Sale of personal stock holdings would not be subject to such, and only at individual tax rates/personal returns.

Rapid expansion on multiple locations you can keep carrying the loss forward (until commencement of operations and product enters facility). (We recently served a client setting up 4 locations from design through commencement of operations and this was the instructions from accounting to max benefits for the client and entities-To shift all costs and expenses to the next project as soon as product entered building to ensure all fully deductible to the group/client. Again, if COGS related, (on existing ops), would be fine (product, inventory, purchasing, security management works, but then still has to be broken down as well, when can just be shifted and structured to work best for their tax situation).

I'm not an accountant, and sometimes enjoy this area (and sometimes not), but again, those are fairly accurate overviews....

I'm sure their specific situation is much, much more complex due to numerous aspects, and wouldn't claim to have the expertise to address them...(I could probably point out 200 things, but lack to authority and expertise to provide an answer which would fully address. I do though spend a minimum of about 10-20 hrs. a week with accounting regarding hundreds of variables, so.....I know a little about a little...

Point being:
When you see someone ranting about high COGS on a rapidly expanding cannabis business, you know they don't have a clue :) LOL