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damAcon1

04/18/22 1:57 PM

#16540 RE: WarrenWannaBe #16538

Another method is to defer taxes. I think some 'industry analysts' in the Twitter-sphere are finally starting to notice and question it. I dont understand exactly why these companies do this, but assume that it has to do with spending that money elsewhere because late taxes accrue interest at a slower rate then debt, or, they arent paying the full amount figuring tax laws might change to favor the industry and therefore they will eventually owe less. Either way, some of these 'Top MSOs' have accrued some lofty deferred tax liabilities. Here the list for the companies rated above SHWZ per FreeCashFlow's Tier 1 and 2 breakdown:
Deferred Tax Liability - Annual Report unless otherwise stated:
Verano - $323.2M (Q3-2021 report)
Curaleaf - $299.3M
Trulieve - $251.3M
Cresco - $85.7M
GTI - $81.8M
AYR - $70.1M
Jushi - $52.5M (Q3-21 report)
TerrAscend - $14.3M
4Front - 7.1M (Q3-21 report)
Ascend - $1.4M