GAAP-Aligned Statements
Investors and institutional lenders expect accrual-basis statements with proper inventory valuation, revenue recognition, lease accounting and accrued liabilities. Many operators run on a cash-basis approximation that can't survive diligence.
We prepare accrual statements with supporting schedules, and where a transaction is on the horizon we also prepare the historical restatement diligence will require.
- Balance sheet, income statement and cash flow statement with footnote support
- Inventory valuation schedules tied to physical and BioTrack records
- Fixed asset registers and depreciation schedules by function
- Debt, lease and related-party disclosure schedules
Multi-Entity and Consolidated Reporting
New Mexico operators frequently run several entities: a licensee, a property holding company, a management company, occasionally a brand entity. Reporting has to work consolidated and by entity, with intercompany transactions cleanly eliminated.
Consolidation quality matters beyond presentation — intercompany arrangements are a primary examination target, and reporting that can't separate them invites the conclusion that the entities aren't genuinely separate.
Operating Dashboards and KPIs
Statements are lagging indicators. Dashboards make performance visible while it can still be changed. We report the short list of metrics that actually drive a cannabis P&L: gross margin by channel and category, cost per pound or per unit, inventory turns and aging, labor as a percentage of gross profit, and cash conversion.
The metric set is kept 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 goal. Reporting that changes format or method from quarter to quarter reads as instability regardless of the underlying performance.
Audit and Review Readiness
Operators pursuing an external audit or review, an acquisition, or an out-of-state expansion 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.
