TRTC projected it would take three years before any profit could be realized by Blum SL. Maybe thats why they have not opened it ?
This was within the BLum SL application:
Charitable Contributions – Blüm SL will set aside a minimum of three percent (3%) of total revenues
to be dispersed to local charities within the San Leandro community. Initially Blüm SL anticipates
charitable contributions of $78,000, increasing to $219,000 a year, by year three of operations
Interest:
Terra Tech Corp has agreed to lend Blum SL up to $4,000,000 for all startup expenses, including but
not limited to building development, product acquisition and staffing. Any money lent to Blum San
Leandro by Terra Tech Corp, if any, will be charged at an annual rate of 5% on the principal.
2. A-Plan of Operation/Daily Activities
As discussed in prior RFP submission, Blüm SL is incorporated as a California not–for-profit C Corporation,
pursuant to California medical cannabis Attorney General Guidelines issued in 2008, and as required by SL
Municipal Code. B
Blum Las Vegas commenced operation on April 20, 2016 and has been operating for 30 days as of
May 19, 2016. To date a tax payment has not been due to the City of Las Vegas or the State of
Nevada. Our first tax payment is due on May 31st. Blum Las Vegas will pay all taxes owed on time
following the respective local ordinance. The amount of said bill is unknown at this date as it will be
directly contingent upon the gross sales receipts of the dispensary business operations from April 20th
to May 20th. At which time our estimated revenue has us projecting a tax bill will due for $4,000.00
Please see the following pages for our estimated tax payment calculation.
2. F- Mergers and Acquisitions
In January 2016 Blüm Oakland and Terra Tech Corp. publicly announced a merger of the two companies.
For several years Terra Tech Corp and Blum Oakland had enjoyed a synergistic relationship, anchored by
a shared executive leadership team. In 2015, the two companies began in earnest to work cooperatively to
help streamline operations and improve focus on further research. The two companies also worked
together on product development and market expansion, while improving service delivery to patient
members. Near the end of 2015, the proposed merger was disclosed to the City of Oakland and to the
Securities and Exchange Commission, and was approved by both.
To date, in the medical cannabis and technology sector, Terra Tech Corp., whose subsidiaries include Blüm
Oakland, is the only publicly traded company. As a publicly traded company, Terra Tech. Corp. and Blüm
Oakland must each comply with the reporting and audit requirements of publicly traded companies. For
example each company must satisfy GAAP audit and reporting standards. Arguably making Blüm
Oakland the most transparent medical cannabis dispensary in the country. Consequently shrinkage, loss,
and diversion within Blüm Oakland is essentially zero. This makes transparency and auditing for the City
of San Leandro virtually seamless. A substantial benefit of the merger is that individuals, whose sweat
and intellect equity helped build Blüm Oakland from a start-up into the well-known, respected, efficient
dispensary it is today, are now shareholders of Terra Tech Corp.
Advantageously, Blüm Oakland through its relationship with Terra Tech Corp. now has greater access to
capital to invest in real estate, make interior and exterior improvements, promote personnel and HR
services, and undertake further research and develop new technologies. These benefits will enable Blüm
Oakland to provide even higher quality medical cannabis products safely and affordability to its patients.
The merger has no bearing on Blüm SL or its participation in San Leandro’s medical dispensary permitting
process. Blüm SL remains a sovereign company that has no obligations to Terra Tech Corp. While Blum
Oakland and Terra Tech Corp. share leadership with Blüm SL, they and Blüm SL are completely separate
entities. However Blum SL through its affiliation with Blüm Oakland and Terra Tech Corp. will advantageously
have access to all technologies and resources available to Terra Tech Corp. Blüm SL will also benefit from
newer training and accounting procedures adopted by Terra Tech Corp.
BLUM SAN LEANDRO
Pro Forma Operating Budget
Fiscal Fiscal Fiscal
Year 1 Year 2 Year 3
Revenue $ 2,600,000 $ 5,400,000 $ 7,300,000
Cost of Goods Sold 1,482,000 3,074,000 4,163,000
Gross Margin 1,118,000 2,326,000 3,137,000
Operating Expenses
Advertising and Promotion 25,000 25,000 25,000
Bank Service Charges 7,800 16,200 21,900
Charitable Contributions 78,000 162,000 219,000
Self Imposed Fee / Tax 130,000 270,000 365,000
Computer and Internet Expenses 13,000 27,000 36,500
Conferences and Training 25,000 32,500 40,000
Depreciation Expense 150,000 160,000 170,000
Insurance Expense 36,000 39,000 42,000
Miscellaneous expenses 18,000 24,000 36,000
Office Supplies 50,000 55,000 60,000
Payroll Expenses 659,000 843,000 1,078,000
Professional Fees: Accounting 36,000 40,000 44,000
Professional Fees: Legal 12,000 15,000 18,000
Rent 240,000 244,800 249,696
Repairs and Maintenance 48,000 48,000 48,000
Security Expense 260,000 270,000 280,000
Telephone 1,200 1,500 1,800
Utilities 36,000 40,000 44,000
Total Operating Expenses 1,825,000 2,313,000 2,778,896
Operatine Income (Loss) (707,000) 13,000 358,104
Interest Expense 90,000 120,000 100,000
Income before taxes (797,000) (107,000) 258,104
Income Tax Expense (Benefit) (126,800) (10,560) 160,000
Net Income (Loss) $ (670,200) $ (96,440) $ 98,104
Finance- A. Pro Forma and Operating Costs:
Three Year Pro Forma Operating Budget (See attached pro forma calculation and tax materials)
Blüm SL’s three-year pro forma budget has been developed based upon actual operating cost figure
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