Blum Holdings Inc (BLMH)

[Magnum7419]

IF one is interested the below link is an application prepared for by Salwa where she supplied the three costs and used BlumOak as the basis for said budget.

It is very clear when one looks at page 101........

"Most dispensaries are not profitable"

https://www.cityofberkeley.info/uploadedFiles/Planning_and_Development/Level_3_-_Commissions/Commission_for_Medical_Cannabis/Blum%20.pdf


Month 1-12 Months 13-24 Months 25-36
Start up capital from Terra Tech** $ 500,000.00 $ - $ -
Merchandise Sales $3,000,000.00 $6,000,000.00 $9,500,000.00
Total Revenue $3,500,000.00 $6,000,000.00 $9,500,000.00
Cost of Product $1,350,000.00 $3,000,000.00 $5,082,500.00
Cost of Testing $40,000.00 $40,000.00 $40,000.00
Packaging Supplies $30,160.00 $30,160.00 $33,176.00
CA BOE County and City Sales Tax $323,750.00 $555,000.00 $878,750.00
Total COGS $1,743,910.00 $3,625,160.00 $6,034,426.00
Gross Profit $1,756,090.00 $2,374,840.00 $3,465,574.00
Accounting Expense $4,500.00 $5,400.00 $6,480.00
Advertising and Promotion $15,000.00 $18,750.00 $23,437.50
Balance forward from previous year $0.00 $7,158.66 $443,718.66
Bank Service Charges $2,200.00 $3,300.00 $5,000.00
Building Maintenance Expense $18,000.00 $22,500.00 $28,125.00
Charitable Contributions $22,500.00 $127,000.00 $222,400.00
Check In/ Validation Expense $2,556.34 $5,112.68 $8,308.10
Computer and Internet Expenses $12,000.00 $5,000.00 $6,250.00
Construction Expense $275,000.00 $30,000.00 $35,000.00
Consulting/Legal $165,000.00 $198,000.00 $237,600.00
Corporation Expense $100.00 $200.00 $300.00
Debt Service $0.00 $150,000.00 $150,000.00
Day Labor $1,000.00 $1,100.00 $1,853.06
Drinking Water Expense $1,000.00 $1,200.00 $1,440.00
Fire Monitoring $500.00 $625.00 $781.25
Garbage Expense $8,000.00 $8,800.00 $9,680.00
Insurance $9,000.00 $9,000.00 $9,000.00
Janitorial Expense $10,000.00 $12,000.00 $14,400.00
Landscaping Expense $2,400.00 $2,880.00 $3,456.00
State and Local Licensing $12,000.00 $10,000.00 $10,000.00
Meals and Entertainment $20,000.00 $24,000.00 $28,800.00
Office Supplies $20,000.00 $24,000.00 $28,800.00
Paychex Invoice Expense $1,500.00 $1,800.00 $2,160.00
Payroll Expenses*** $500,000.00 $575,000.00 $661,250.00
Payroll Benefit Expenses $125,000.00 $143,750.00 $165,312.50
Professional Fees $12,500.00 $15,000.00 $18,000.00
Rent Expense $144,000.00 $148,320.00 $152,769.60
Security Expense $325,000.00 $334,750.00 $344,792.50
Telephone Expense $175.00 $225.00 $247.03
Utility Expense $17,500.00 $19,250.00 $21,175.00
Total Expense $1,726,431.34 $1,904,121.34 $2,640,536.20
$29,658.66 $470,718.66 $825,037.80
Total Other Miscellaneous Expense $22,500.00 $27,000.00 $32,400.00
Net Income **** $7,159 $443,719 $792,638
Margin 0.20% 7.40% 8.34%
** Terra Tech Copr will provide start up capital funding. For proof of these funds please see the Proof of Capital Letter of Credit.
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