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Re: stervc post# 8611

Tuesday, 06/02/2020 1:23:04 AM

Tuesday, June 02, 2020 1:23:04 AM

Post# of 20590
Hi Stervc,
1: Start up costs for the facility and the Grow to get itself ready and operational are capitalized (preparing the facility ie the build out of the facility and the the land to grow). All equipment to grow and manufacture the concentrates, edibles, topicals, skin care etc will be capitalized and then depreciated over the various lives. These costs only show up in Depreciation and amortization (Below the line)

2. Grow and production (manufacturing)..these are COGS - your cost of goods sold. These costs are the direct and allocated indirect costs. Generally it amounts to 75% of all costs with a net revenue of 25% but that is standard and normal. No one should find that unusual.

3 Operating Expenses - These below the line are the indirect costs such as advertising/marketing office expenses, repairs and maintenance/ depreciation. It also will include officers payroll and the un-allocated payroll. (accounting, office staff etc). Professional fees (legal and audit) Office expenses and rent expense for the non direct staff. Business licences etc). Approx 5 to 10% of all the costs depending on the stage of the company.

So to answer your question your NET PROFIT BOTTOM LINE IS LOOKING LIKE 20% AFTER ALL EXPENSES INCLUDING Taxes and Depreciation...but the more they sell the higher the bottom line will be.

This is a good one Stervc

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