GAAP-Aligned Statements
Investors and institutional lenders expect statements prepared on an accrual basis with proper inventory valuation, revenue recognition, lease accounting and accrued liabilities. Many operators run on a cash-basis approximation that cannot survive diligence.
We prepare accrual statements with supporting schedules, and where a transaction is scheduled we also prepare the historical restatement that diligence will require.
- Balance sheet, income statement and cash flow statement with footnote support
- Inventory valuation schedules tied to physical and track-and-trace records
- Fixed asset registers and depreciation schedules by function
- Debt, lease and related-party disclosure schedules
Multi-Entity and Consolidated Reporting
California operators frequently run several entities: a licensee, a property holding company, a management company, occasionally a brand entity. Reporting has to work both consolidated and by entity, with intercompany transactions eliminated cleanly.
Consolidation quality matters beyond presentation — intercompany arrangements are a primary examination target, and reporting that cannot separate them invites the conclusion that the entities are not genuinely separate.
Operating Dashboards and KPIs
Statements are lagging. Dashboards make performance visible while it can still be changed. We report the small number of metrics that actually drive a cannabis P&L: gross margin by channel and category, cost per pound or per unit produced, inventory turns and aging, labor as a percentage of gross profit, and cash conversion.
The metric set is deliberately short. A dashboard nobody reads has no operating value.
Investor and Lender Packages
Capital providers in cannabis lend and invest against inventory, receivables and demonstrated margin, and their reporting covenants are demanding. We produce the recurring package — statements, covenant calculations, borrowing base, variance commentary — on the schedule the agreement requires.
Consistency is the objective. Reporting that changes format or methodology from quarter to quarter reads as instability regardless of the underlying performance.
Audit and Review Readiness
Operators pursuing an external audit or review, a public listing or an acquisition need records prepared to a higher standard: documented policies, supported estimates, complete reconciliations and an evidence trail for every material balance.
We prepare the schedules an external auditor will request and manage the request list during fieldwork, which shortens the engagement and lowers its cost.
