Cannabis Industry Accounting and Appraisal Guide 2nd Edition

Cannabis Industry Accounting and Appraisal Guide 2nd EditionThe cannabis industry continues to be one of the fastest growing industries in the United States and created one of the greatest entrepreneurial business opportunities of the 21st century. New Frontier Data reported sales in the state legal cannabis market of $26. 5 billion in 2021 and projected an 11 percent compound annual growth rate, reaching $58 billion by 2030. As a point of reference, Starbucks sales were $29. 1 billion in its fiscal year

The cannabis industry continues to be one of the fastest growing industries in the United States and created one of the greatest entrepreneurial business opportunities of the 21st century. New Frontier Data reported sales in the state legal cannabis market of $26.5 billion in 2021 and projected an 11 percent compound annual growth rate, reaching $58 billion by 2030. As a point of reference, Starbucks sales were $29.1 billion in its fiscal year ending September 30, 2021 and McDonalds global revenue was
$23.2 billion in 2021.

New Frontier Data also estimated 52 million adults will consume cannabis at least once in 2022 and this will increase to 71 million people by 2030 representing four percent compound annual growth.

With so many states legalizing various aspects of cannabis, it isnÕt surprising that an October 2021 Gallup poll showed 68 percent of Americans supported legalizing cannabis, an increase from 60 percent in October 2016. This is compared to 2011 when 45 percent of adults favored legalization. 70 percent of American citizens have some form of legal access to medical or recreational cannabis in 2022. While public support is increasing, unfortunately politicians canÕt get past the politics to legalize or deschedule cannabis or at least create legislation allowing banks to service cannabis businesses without penalty.

While all of this is happening (or not happening) in the world, the cannabis industry continues to evolve. There are varying (and often conflicting) rules at the federal, state, and local levels. Jurisdictions have different licensing regulations and requirements and processes for holding licenses which vary significantly. Examples include limited license states to no caps on licenses, preference to social equity applicants, residency restrictions, and optout options for municipalities.

We created this book to provide useful information about the unique financial aspects and intricacies related to businesses operating in the rapidly evolving regulated cannabis industry.