Akerna Archives - Green Market Report

StaffStaffApril 6, 2021
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4min3560

Akerna (Nasdaq: KERN) closed on its acquisition of Viridian Sciences, a cannabis business management software system built on SAP Business One. The all-stock deal is accretive to revenue and earnings and is expected to contribute cost synergies. Akerna stock was moving higher by over 1% on the news to lately trade at $4.85.

“We are pleased to officially welcome the Viridian team to the Akerna family. By leveraging our tech synergies, we solidify our ecosystem offering the first and only true ERP software solution specifically built for the cannabis industry,” said Akerna Chief Executive Officer Jessica Billingsley. “Leading enterprise organizations across industries choose SAP Business One for its ability to automate key financial business functions. By combining Viridian’s financial integrations with Akerna’s compliance and regulatory solutions, we continue to strengthen our channel connections with existing ERP providers for the cannabis businesses of today and the post-legalized world.”

Akerna said that as a result of the acquisition, Viridian’s clients receive access to Akerna’s Compliance Gateway, feature-rich reporting, and the recently launched MJ Retail app. Akerna has partnered with ERP solutions such as SAP and other leading providers for integrated financials & tax planning, offering cannabis operators a solution for each stage of their evolution from startup to multi-state operator — all while maintaining regulatory compliance through Akerna’s Compliance Gateway. The acquisition of Viridian accelerates the deployment of this strategy and establishes Akerna as the only cannabis-compliant SAP Business One offering.

“Combining with Akerna gives Viridian the ability to accelerate growth in new markets, as we leverage Akerna’s extensive compliance and partner integrations, furthering our strategy of creating the best-in-class ERP solution for the cannabis industry,” says Grant Fraser, Chief Executive Officer of Viridian Sciences. “We founded Viridian with the goal of becoming the premier SAP Business One cannabis solution and, through this combination with Akerna, we are achieving that goal for our business and our clients.”

“Working with Viridian has provided Wana with greater visibility and control over our supply chain, production management, and financial health, and we are excited to see the relationship continue to grow with both Viridian and Akerna,” noted Logan Craven, Chief Financial Officer of Wana. Viridian clients include Wana, Trulieve, iAnthus, Herbl, Canndescent, and many more prominent cannabis operators and brands.


Debra BorchardtDebra BorchardtMarch 18, 2021
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4min8900

The stimulus checks that many Americans are beginning to receive this week could also stimulate the cannabis industry, namely the dispensaries. Viridian Capital Advisors said it expects the latest stimulus check will translate to higher than normal retail sales in the near-term, as well as inflated wholesale prices, which are driven by that stronger retail demand.

The last time Americans got a stimulus check, cannabis companies said they saw increased demand. No doubt being declared an essential service helped as many dispensaries could make deliveries or offer curbside service. Viridian said that in reporting second-quarter 2020 results, nearly all the industry’s leading operators attributed a boost in sales to stimulus payments.  Cannabis tech company Akerna (NASDAQ: KERN) published a flash report stating that April 15th (right after many Americans received stimulus checks) was the biggest Wednesday for legal cannabis sales in history with both ticket size and total revenue up over 50% compared to a normal Wednesday in 2020. Viridian added, “We note that the April 15th sales uptick came just weeks after a stockpiling of cannabis had occurred in late March 2020 and at a time when Massachusetts rec sales were prohibited, and Nevada sales were restricted, making the increased sales level following the stimulus receipt seem even more significant.”

Charlotte Hanna, CEO of Rebelle cannabis dispensary in Great Barrington, MA said, “This past year has been fraught with massive change, which has caused so much stress for millions of Americans. The stimulus program will not only offer financial relief, but it will also allow a little extra for wellness. It’s been a long, hard winter and people want to start feeling good again.”
Viridian Advisors said it doesn’t anticipate as large of a boost in sales to occur with this year’s stimulus checks, but it does anticipate inflated sales volumes. “The total in stimulus money received for many individuals in January and this week combines to be significantly more than last year($2000 vs. $1200 for a qualifying single individual). Meanwhile, the timing is interesting given that Q1/21for many operators was to be by far the weakest quarter of the year even beyond typical seasonality. The Q1/21 relative weakness stems from the fact that many operators made acquisitions and expansion initiatives that have yet to contribute to results. As such, the increased sales in the quarter will likely disproportionately drive upside to full-year expectations and Q1/21 estimates and/or will offset any weakness from delays in integration or the buildout of assets.”
Kris Krane, President of 4Front Ventures said, “We should expect that the next round of stimulus checks will positively benefit the cannabis industry, much as it is expected to help all segments of the economy. These payments will allow consumers to spend on goods and services that they might not otherwise be able to afford due to the pandemic-induced economic downturn, putting money back into the overall economy and boosting businesses across the board. It will likely have an outsized effect on dispensaries located in lower to middle-income communities, where people have been disproportionately impacted by the downturn and will now have extra cash to meet their need and bolster businesses in the communities.

StaffStaffDecember 4, 2020
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7min6090

Data from both Akerna (Nasdaq: KERN) and Headset agreed that Green Wednesday (the day before Thanksgiving) sales in 2020 easily beat Black Friday sales for the first time. Cannabis consumers clearly wanted to make their purchases in advance of Thanksgiving and were less inclined to go shopping afterward.  

Business intelligence from Akerna found that cannabis consumers spent approximately $238 million during the 2020 Thanksgiving weekend (11/25 – 11/28).  Green Wednesday was the single biggest sales day of 2020 with an 80% increase in daily sales. The average basket size for medical consumers was $122.64, representing a 5% increase over the daily average. Adult-use consumers spent, on average, $78.14, which is an increase of approximately 12%. 

This also marks the first time in four years that Green Wednesday has beat out Black Friday, which also saw a 75% increase in sales. 

“Once again, Thanksgiving ranks in the top 5 cannabis sales days of the year,” said James Ahrendt, Business Intelligence Architect, Akerna. “As we have noted throughout the year, daily sales averages have increased over the last year as a result of COVID. Since average days show such notable year-over-year growth, the percentage of growth during the holidays doesn’t seem as large. However, this is because more people, in general, are purchasing cannabis.”

Additional Insights

Sales by Product Category

  • Flower – 46.8%
  • Cartridge/Pens – 30.2% 
  • Concentrates – 13.9%
  • Infused Edibles – 7.4%
  • Other – 1.7%

Sales by Age Group

  • Under 30 – 29.2%
  • 30-40 –30.6%
  • 50 – 19.3%
  • 50-60 –11.9%
  • Over 60 – 9%

Sales by Gender

  • Female – 36.7% 
  • Male – 63.3% 

Headset Green Wednesday 

Here are the sales totals across all Headset Insights Premium Markets for Green Wednesday, Thanksgiving, and Black Friday 2020, plus the relative growth over last year’s totals for the same days:

 

Total Sales (CA, CO, NV, OR, WA)

  2019 2020 YoY Growth
Green Wednesday $29.4M $33.2M 12.9%
Thanksgiving $9.7M $11.2M 15.2%
Black Friday $31.4M $31.1M -0.9%

 

Headset noted that that overall sales increased this year on Green Wednesday and Thanksgiving, but sales on Black Friday were actually slightly lower this year than last year. The company said, “This is big news because this would be the first time we’ve seen a year-over-year decrease in such an important retail holiday in cannabis.”

Also very notable, this is the first time that total sales have been higher on Green Wednesday than on Black Friday. Headset fans may remember that data analyst Cooper Ashley predicted this in his recent interview on Cheddar TV. “

 

Sales Increase vs Previous 4 Weeks

  2019 Sales Lift 2020 Sales Lift
Green Wednesday 59.5% 40.2%
Black Friday 16.3% -4.7%

 

“Here we can see that this year both holidays had less of an increase in sales versus the previous four weeks. Green Wednesday’s relative increase dropped from around 60% last year to 40% this year, whereas Black Friday had 16% growth in 2019 and actually had about 5% fewer sales in 2020 versus the previous four Fridays. Both of these decreases could be related to the recent uptick in COVID-19 cases and increased lockdown measures in many recreational cannabis states.

 And lastly, we can see that on both holidays average basket size was much larger in 2020 than in 2019, which is something we’ve seen throughout the COVID-19 pandemic.”

 

Basket Size

Date  2019 2020 Growth
Green Wednesday $38.84 $48.38 25%
Black Friday $41.85 $50.56 21%

StaffStaffNovember 25, 2020
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6min4530
Predictions for 2020
Headset

Headset forecasts an even larger than usual uptick in recreational cannabis sales on Green Wednesday this year for several reasons:

–  In all adult use cannabis states tracked by Headset, the total market has grown by at least 20% in total revenue over last year (when comparing October 2019 to October 2020).

– During the COVID-19 pandemic we have seen significant changes in consumer behavior. In March and April 2020, when many states were enforcing stay-at-home orders, the cannabis market saw a decrease in total transaction volume, but a significant increase in average basket size. This makes sense because customers were likely trying to minimize their trips to the dispensary, so they bought more per trip.Through the summer and into Autumn, average baskets have stayed significantly higher than they were pre-COVID, but transaction volume has crept back up to nearly the same level it was at in February. These two trends combined indicate a ‘new normal’ in the cannabis industry driving the highest monthly revenue totals since the beginning of the legal sales.
– Additionally, with many states reinstating COVID-19 lockdown measures, and advising against travel and social get togethers, Thanksgiving 2020 will be unlike any in living memory. With millions of Americans being asked to stay at home for the holiday, frankly, what else is there to do?
– Edibles have performed well throughout the COVID-19 pandemic. That along with their usual strong sales lifts during the holiday season leads us to predict Edibles and Beverages to again be the categories with the biggest sales lifts on Green Wednesday this year. Both product formats are conducive to indoor consumption (for those that don’t want to smoke or vape in their homes), and THC infused Beverages are often associated with celebration, as they are increasingly seen as a substitute for alcoholic beverages.
Akerna

“On average, Thanksgiving tends to be one of the Top 5 sales holidays of the year, and we expect that trend to continue this year,” said James Ahrendt, Business Intelligence Architect, Akerna (NASDAQ: KERN). “In the past, we’ve seen huge spikes in sales on Wednesday and Friday since most dispensaries are closed on Thursdays.”

Akerna anticipates that the average order total will be around $82.30 for adult-use customers and $128.46 for medical consumers, representing an increase of approximately $13 compared to the average order total on any other given day of the year.

Additional Thanksgiving Holiday Predictions:

Sales by product type:

  • Flower – 42%

  • Cartridge/Pens – 37%

  • Concentrates – 11%

  • Infused Edibles – 8%

  • Other – 2%

Sales by Gender

  • Male – 64%

  • Female – 36%

Sales by age group:

  • Under 30 – 28%

  • 30-40 –30%

  • 40-50 – 19%

  • 50-60 –12%

  • Over 60 – 11%

LeafLink
The cannabis industry, as measured by cumulative wholesale transaction volume growth through the LeafLink marketplace, increased by 40% between the start of the pandemic in March and October 2020. Overall, cumulative wholesale transaction volume is up 60% through the end of October compared to the start of the year, and we expect the growth trend to remain healthy through the end of the year. – Alex Feldman, General Manager of LeafLink Insights

Julie AitchesonJulie AitchesonNovember 24, 2020
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4min5400

‘Tis the season for America’s favorite foodie holiday, and whether turkey, tofurkey, or none of the above are on the menu, this is sure to be a Thanksgiving like no other. With Covid-19 spikes turning the U.S. map red and growing concerns about the capacity of states to handle an even higher coronavirus positivity rate if citizens choose to gather, some thought leaders in the cannabis industry are taking a stab at predicting the impact on Thanksgiving sales.

Cannabis compliance technology company Akerna (NASDAQ: KERN) anticipates a 78% increase over average daily sales for 2020 during this Thanksgiving weekend, hitting $270 million between November 25 and November 28. James Arendt, Akerna’s Business Intelligence Architect, explains that the huge sales spikes typically happen on Green Wednesday and Black Friday as most dispensaries are closed on Thanksgiving Day, but this hasn’t prevented Thanksgiving from being one of the Top 5 sales holidays of the year. A trend that is expected to continue in 2020.  

Akerna projects that the average order total will be around $83.30 for adult-use consumers and $128.46 for medical consumers. This is an increase of roughly $13 over average order totals for the rest of the year. Cannabis flower is predicted to be the top seller, garnering 42% of sales with cartridges and pens coming in a strong second at 37%. Male users will likely make up the majority of consumers at 64%, with under 30’s and 30-40 year-olds making up a combined 58% of the top consumers over Thanksgiving.

Akerna’s data doesn’t make correlations with anticipated sales and the ongoing Covid-19 pandemic, but Joe Caltabiano, founder of cannabis and medical marijuana company, Cresco Labs, (OTC: CRLBF) highlights the fact that cannabis was deemed essential at the pandemic’s outset. “At the same time,” he adds, “we saw regulators rapidly adopt emergency rules allowing online ordering, curbside pick-up, and delivery in areas where it’s permitted.” These measures will no doubt contribute to keeping cannabis sales strong for Thanksgiving, as retail sales increased by 40% after the measures were taken and remained high even after the stimulus paid out by the federal government in April was exhausted. Caltabiano posits that the pandemic has made consumers even more comfortable with ordering online as a safer and more convenient purchasing option, with retailers offering special deals for those who choose to purchase online, further brightening the prospect for chart-topping Thanksgiving totals.

Caltabiano also predicts that the money saved on airfare, hotels, or other travel-related expenses by those choosing the “safer at home” approach this Thanksgiving may lead to a pandemic holiday trend of self-care. “This year’s new tradition could be treating oneself with an eighth of premium flower instead of buying a bottle of wine for the family dinner.” Between that and the fact that other pandemic-era holidays such as the 4th of July and Labor Day have seen increased retail sales, Caltablano thinks retailers will have ample reason to give thanks once Thanksgiving 2020 is done and dusted.


StaffStaffNovember 12, 2020
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4min2830

Cannabis technology company Akerna (Nasdaq: KERN) announced financial results for its quarter ending September 30, 2020 with revenue rising 16% to $3.7 million over last year’s $3.1 million for the same time period. Akerna missed the Yahoo Finance average analyst estimate for revenue of $4.49 million.

The net losses jumped to $4.7 million over last year’s net loss of $2.3 million. The net loss per share was ($0.34), which missed the Yahoo Finance average analyst estimate of ($0.28).

“I’m thrilled to report we achieved 40% year-over-year software revenue growth in this quarter and have increased our total SaaS ARR by 44% over this same time last year,” said Jessica Billingsley, CEO of Akerna. “Looking forward, we are entering a period of massive market expansion.  Five new states have approved cannabis via ballot measure in the recent election potentially representing approximately $18M in new TAM for our software and services offerings, and many more states and countries have legislative initiatives proposed over the coming months. Our scaled ecosystem is uniquely positioned to capture these opportunities, with the most robust cannabis technology suite available.”

The company reported that its adjusted EBITDA was ($3.0 million), compared to ($2.2 million) for the period ending September 30, 2019. Cash was $14.3 million as of September 30, 2020

In a statement the company highlighted that its average new MJ Platform orders were up 94% year over year, MJ Platform transaction volume was up 181% year over year, retail order volume rose 68% year over year and retail order values were up 127% year over year. The company said it had a new bookings ARR of $1.2 million.

Akerna recently closed on a $12 million offering which the company said it intended to use for funding its growth initiatives, including product development, sales and marketing, strategic acquisitions, working capital, and general corporate purposes. At the time, investors were upset and the stock sold off. However, the shares began to rally again at the beginning of November, but this earnings miss has caused the shares to be trimmed in price again.


Debra BorchardtDebra BorchardtOctober 28, 2020
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4min6940

Akerna Corp. (Nasdaq: KERN) has priced a public offering of 5,000,000 shares of its common stock at a public offering price of $2.40 per share. The company said it expects that the gross proceeds of the offering of the shares will be approximately $12,000,000.  Akerna said it intends to use the net proceeds from the offering to fund its growth initiatives, including product development, sales and marketing, strategic acquisitions, working capital, and general corporate purposes.

The stock was falling in pre-market trading from $2.93 to $2.39, a decline of 18%. According to Yahoo Finance, the company’s price to sales is $3.56.

Last month CEO Jessica Billingsley said on the company’es earnings call, “We are pleased to share that our year-over-year software revenues are up 21%. While consulting bookings increased year-over-year, delivery delays in the fourth quarter due to COVID-19 caused consulting revenue to come in at a modest 3% increase. We expect to recognize the delayed revenue this coming fiscal year. As expected, our operating expenses increased for the fiscal year as we digested our acquisition. Our cost structure is improving. And we expect it will continue to improve through this coming fiscal year as a result of our successful integration, realizing efficiencies and, of course, economies of scale.”

In addition, CFO John Fowle said on that call, “Our fourth quarter and fiscal year 2020 results were highlighted by solid sales execution and continued market demand. In the fourth quarter, total revenue declined 17% to $3 million, a decrease driven entirely by a decline in our consulting revenue related to delays associated with COVID-19. For the year, our total revenue grew 16% to $12.6 million. With regard to software revenue, in the fourth quarter, software revenue grew 36% to $2.8 million. For the year, our software revenue grew 21% to $10 million. The growth in the quarter and for the year was once again driven by increased demand from both new and existing customers, combined with strong sales execution across channels.”

The company did not give guidance at the time. The company also did not mention nor was it asked during the earnings call about the disgruntled comments from John Prentice, the founder of Ample Organics, who sold his company to Akerna in September. Prentice released a scathing letter announcing his resignation and demanding Billinsgley resign. Typically, a company that is acquired doesn’t have the position to make such demands and there was little response from shareholders.

When asked about the Ample acquisition, Billingsley said on the call, “Ample business has very, very sticky enterprise clients that are well suited to weather the storm and are great additions to our portfolio of large enterprise clients. And so, the revenue is very, very stable. And we do expect now that the economic and some of the COVID restrictions are starting to ease for that license flow to uptick again, and also for us to have that great cross sell opportunity, which was one of the most compelling things about the acquisition for us was this ability to sell retail into their client base. And also, there are some really great pieces to the Ample technology as well, particularly a very robust pharmacy module and some insurance adjudication that they’ve constructed.”

 


StaffStaffOctober 15, 2020
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3min10641

Akerna (Nasdaq: KERN) has launched of MJ Retail, a first-of-its-kind proprietary software technology designed to provide merchants and consumers with a flexible and mobile-friendly experience. The product is currently available in beta form and will be live in a couple of weeks.

“MJ Platform is integral to the success of our clients’ business. Launching MJ Retail was the next logical step to support our growing number of clients who are focused on delivering an exceptional customer experience no matter how customers shop,” said Jessica Billingsley, chief executive officer, Akerna.  “As the in-store experience continues to evolve MJ Retail has been designed to help our clients accelerate and streamline customer checkout, creating an optimal customer experience.”

Akerna said that MJ Retail is an independent POS product that connects to Akerna’s ecosystem for compliance, back office, and reporting functionality. It is specifically designed to provide merchants and consumers with a flexible and mobile-friendly experience by allowing transactions to happen at any time throughout the retail experience on any device.

The company says it benefits the industry since with most POS software platforms, businesses are usually presented with the choice of either a full-featured, data-rich system that requires an investment in training or a simple to use platform that lacks essential features.  MJ Retail says it marries both form and function, that it is easy to use and lightweight, and it does not sacrifice critical data collection and analytics reporting features.

MJ Retail says it gives back to retail workers much needed time, cost, and energy spent on unnecessary clicks. This is something that has benefits that continue long after you begin using it.

Akerna said that for CBD businesses that sign up for Akerna’s payment processing solution MJ Payments, MJ Retail will be made available to them for free. Existing MJ Platform customers will also be able to upgrade to MJ Retail at no cost.


StaffStaffSeptember 22, 2020
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6min10630

The CBD market is one of the fastest growing industries in the United States. In 2017, U.S. CBD sales topped out at around $190 million. Three years later, the U.S. CBD market is a billion-dollar industry that is poised to reach $16 billion in annual sales by 2025. Enabling this rapid market expansion was the 2018 Farm Bill, which federally legalized the production, sale, and distribution of hemp and its derivatives (CBD chief among them).

Yet while the Farm Bill paved the way for this billion-dollar industry, CBD brands themselves are still struggling to access even the most basic of financial services, such as credit card payment processing. Although CBD is technically legal, it is still a substance that remains unregulated by the Food and Drug Administration.

CBD’s unregulated status creates a host of issues for brands and the ancillary companies that service them. On June 29, 2020, the U.S. Financial Crimes Enforcement Network (FinCen) issued comprehensive guidance to financial institutions working with hemp-related businesses.

Among other provisions, the memo removed the requirement that financial institutions automatically file a Suspicious Activity Report (SAR) on all hemp-related customers, making it easier for banks to service the industry.

Noticeably absent from the memo is any word regarding CBD-related businesses, due in large part to the substance’s unregulated status. Consequently, mainstream payment processors have been reluctant to embrace the CBD industry.

The only companies thus far that have been willing to service the industry are those offering high-risk merchant accounts.

A high-risk merchant account is essentially a processing account for businesses that banks would consider “high-risk.” Typically, the types of companies that open these accounts are from industries such as adult entertainment, gambling, alcohol, etc.

While a typical merchant account will charge companies around 1%-2% per transaction, high-risk merchant accounts will often charge between 3%-9% per transaction. Most notably, the payment processor Square charges CBD brands 3.9% plus $0.10 per transaction for in-person transactions, and 4.2% plus $0.30 per transaction for online purchases.

Such steep fees can make it difficult for CBD brands to prosper, especially when it comes to those that depend on online sales.

A recent report by Brightfield Group found that approximately 45% of consumers are purchasing CBD solely from the internet due to concerns from the COVID-19 outbreak. Unsurprisingly, online CBD purchasing increased by 61% from Q1 to Q2 of 2020.

The banking issue is a particularly frustrating problem for the CBD industry because, unlike the cannabis industry, CBD is legal at the federal level. For many in the industry, the assumption was that once the Farm Bill legalized hemp and CBD, that it would become easier to conduct business, but little has changed.

Recognizing the frustrations felt by those in the CBD industry, cannabis-focused compliance companies like Akerna (Nasdaq: KERN) have started to build out their platforms to support CBD brands as well. Akerna is a Denver-based compliance technology company best known for their seed-to-sale software MJ Platform.

Most recently, the company announced that they signed an agreement with Priority Technology Holdings, Inc. (Nasdaq: PRTH), to provide the hemp-CBD industry with payment processing solutions. Offering ACH, card-not-present, recurring payments, and automatic credit card information updates; Akerna aims to offer a seamless all-in-one service to both current and future CBD clients.

Looking forward, the company also hopes to leverage this agreement to help position the company as a national payment processor for the cannabis industry as well.

“With this solution, we are making it easier for our CBD and hemp clients to process payments,” said Akerna CEO, Jessica Billingsley, in a statement. “We are also well positioned to activate payment solutions through Priority for traditional cannabis sales pending legislative action at the federal level.”

Given the limited number of payment processing solutions, much less those designed specifically for the CBD industry, Akerna currently enjoys the first-mover advantage. Inevitably competitors will arise, but for now it is lonely, and profitable, at the top.

 


Debra BorchardtDebra BorchardtSeptember 16, 2020
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3min5830

Cannabis technology company Akerna (Nasdaq: KERN) reported that cannabis sales over the Labor Day weekend (September 4-7) exceeded a quarter billion dollars, however, the increase was lower than previous years. Purchases jumped year-over-year by 23% to $245 million. Akerna said this included both medicinal and adult-use sales. Separately, adult-use sales increased by 35% over the holiday weekend.

Friday (September 4) saw the biggest sales day, representing a year-over-year increase of 36%. Likewise, Saturday saw a 36% increase in sales, while Sunday saw the biggest uptick with a 43% increase. Labor Day itself, however, saw an 8% decrease in sales from the previous year. It should be noted that Massachusetts does not allow sales on holidays and dispensaries in the state were closed for the day.

“Though we saw a smaller increase in cannabis sales than in previous years, that was due in part to increased cannabis sales throughout the year,” says Ryan Ballman, Business Intelligence Analyst. “Because of the COVID-19 outbreak, people are purchasing more cannabis than in previous years. Consequently, we do not see as significant a rise in holiday cannabis sales.”

Akerna gave the following additional insights:

Product Sales by Category for Fri-Mon

Flower – 47.4%
Cartridges/Pens – 29.6% (down 2%)
Concentrates – 12.9% (up 2%)
Infused Edibles – 8.3%
Other – 1.8%

Order Sales by Age Group

Under 30 – 30% (up 3%)
30 to 40 – 30%
40 to 50 – 19%
50 to 60 – 12%
60+ – 9% (down 2%)

Overall State Data

As Ballman noted, states are continuing to rack up huge numbers for cannabis sales. Newcomer Illinois collected $19.2 million in tax revenue during August on recreational marijuana sales, up 38% from July, according to the Illinois Department of Revenue. So far in 2020, the state has collected a total of $86 million in taxes. Sales in August hit $63 million, beating July’s reported $60 million in sales. Out of state consumers purchased $17 million of cannabis in August.

The California Department of Tax and Fee Administration (CDTFA) reported revenue numbers for cannabis sales for the 2nd Quarter of 2020. As of August 11, 2020, California’s cannabis excise tax generated $101.8 million in revenue reported on the 2nd Quarter 2020 returns due by July 31, 2020, and the cultivation tax generated $22.9 million. Sales tax from cannabis businesses totaled $83.7 million in revenue for the same period.

Total tax revenue reported by the cannabis industry is $208.4 million for 2nd Quarter returns due by July 31, 2020. Previously reported revenue for 1st Quarter 2020 returns was revised to $205.9 million, which included $107.4 million in cannabis excise tax, $26.9 million in cultivation tax, and $71.6 million in sales tax. The state noted that revisions to quarterly data are the result of amended and late returns and other tax return adjustments.

Colorado reported that it collected $40 million in tax receipts for August and $244 million year to date for 2020 or January through August.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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