The report issued by analysis firm Whitney Economics underscores the urgency of addressing delinquencies amidst ongoing federal reforms.
Despite ongoing discussions surrounding federal reforms such as de-scheduling and safe banking, the report emphasizes the immediate challenges faced by everyday operators. Delinquencies, highlighted as a pressing issue, have reached a critical point for many operators, jeopardizing their financial sustainability.
Everyday cannabis operators, from cultivators to retailers, will discuss how to thrive in the current cannabis markets at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16 and 17. Get your tickets now on bzcannabis.com – Prices will increase very soon!
Key Findings From Report
The report reveals staggering figures, indicating total delinquent accounts receivable amounting to approximately $3.8 billion.
This sum translates to 1.6 months of legal U.S. cannabis retail revenues in 2023. Particularly hard-hit is the cannabis cultivation sector, contrasting with the relatively lesser impact on retail.
Industry-Wide Impact And Disproportionate Effects
Delinquent payments reverberate throughout the industry, disproportionately affecting smaller and minority operators.
Survey data underscores the severity of the situation, with 44% of respondents citing impacts on debt servicing and 34% on tax payments.
Notably, delinquent receivables outweigh federal tax code 280E in terms of business impact for 57.3% of respondents.
Delinquent receivables predominantly plague adult-use and medical cannabis sectors, with the hemp cannabinoid industry experiencing lesser impacts currently.
The two-day Benzinga Cannabis Capital Conference at The Diplomat Beach Resort is a chance for entrepreneurs, both large and small, to network, learn, and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars — this conference is the go-to event of the year for the cannabis world. Get your tickets now on bzcannabis.com – Prices will increase very soon!
Photo: AI-Generated Image.
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