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$9 Billion in Revenue and $2 Billion in Losses

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The “marijuana mullet” is back with avengence in the cannabis industry as great top-line, headline-shocking, numbers for revenue got released with the usual massive losses on the bottom line, as usual.

Last year, an analysis of public filings by Green Market Report revealed that among the twenty largest publicly traded marijuana companies in the U.S., only one managed to turn a profit, while the rest collectively incurred a hefty $2.3 billion in losses. Despite generating over $8.7 billion in revenues altogether, these vertically integrated operators, with retail outlets, cultivation facilities, and manufacturing plants across various states, struggled to remain profitable.

 

These financial figures offer a glimpse into the overall performance of the cannabis sector. In 2022, a similar examination of financial filings indicated that merely two out of twenty-four public cannabis companies were profitable, with the sector as a whole facing losses exceeding $4 billion. However, it appears that losses have notably decreased year-over-year, signaling potential improvements in the industry’s financial landscape.

 

Top Performers and Underperformers

 

Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF), based in Chicago, became the only cannabis firm to record net profits in 2023, with a $36.3 million profit on top of an amazing $1.1 billion in sales. This was a huge increase above its $12 million profit in 2022, demonstrating a stunning triple of yearly earnings.

 

In contrast, Florida’s Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) experienced the most significant setback of the year, with a whopping $527 million loss compared to $1.13 billion in sales.

 

However, Trulieve was not alone in its financial struggles. Curaleaf Holdings (TSX: CURA) (OTCQX: CURLF) of New York incurred losses of $281.2 million, despite leading in revenue among the twenty companies with an impressive $1.35 billion.

 

GTI, Trulieve, and Curaleaf were the exclusive trio to surpass the $1 billion revenue mark last year.

 

Other notable underperformers include:

 

– Ayr Wellness (CSE: AYR.A) (OTCQX: AYRWF), a Florida-based multistate operator, recorded a loss of $272 million.

– Cresco Labs (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ), headquartered in Chicago, faced losses amounting to $180 million.

– The Cannabist Co. Holdings Inc. (NEO: CBST) (OTCQX: CBSTF) (FSE: 3LP) from New York, reported losses of $174 million.

– Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), based in Chicago, incurred losses totaling $113 million.

 

The widespread financial struggles within the industry underscore the urgency behind potential regulatory changes, such as the Biden administration’s proposed shift of marijuana from Schedule I to Schedule III. Such a move could alleviate the industry’s tax burdens, potentially saving hundreds of millions annually, as estimated by various sources. However, the timeline for realizing these savings remains uncertain.

 

Market Upheaval

 

The dissimilarity between the evaluations from this year and the previous year emphasizes the volatility of the market, which is further emphasized by the removal of four firms from this year’s list.

 

MedMen Enterprises (CSE: MMEN) (OTCQX: MMNFF), one of the absentees, has essentially filed for bankruptcy. Due to a change of auditors, StateHouse Holdings (CSE: STHZ) (OTCQB: STHZF) and Vext Science (VEXTF) have not yet submitted their full-year financial reports to securities regulators.

 

The fourth omission, secondary multistate operator Red White & Bloom Brands (CSE: RWB), reported losses of $104.9 million and carried a debt of $240 million in the previous year, against revenues of $88.3 million disclosed in April.

 

According to Matt Karnes, Founder of GreenWave Advisors, the persistent losses stem from the exorbitant costs of operating within the federally illegal U.S. marijuana industry.

 

“Profitability and cash generation are formidable challenges,” Karnes remarked. “This underscores the urgency for government intervention… because financial resources are depleting rapidly. Section 280E is proving to be detrimental to all.”

 

Karnes acknowledged additional factors contributing to the sector’s financial downturn, including misplaced optimism surrounding the initial public offerings of many fledgling companies in recent years, and an underestimation of the competitive pricing in the illicit marijuana market.

 

Furthermore, political advancements at the federal level have been notably delayed compared to earlier industry expectations, resulting in failed expansion endeavors, unproductive infrastructure investments, and widespread price pressures, all culminating in diminished profit margins for the cannabis sector.

 

“The inability to accurately forecast when these dynamics will change, to decipher the political landscape effectively, presents significant challenges,” Karnes concluded regarding the ongoing financial setbacks. “This uncertainty remains a substantial obstacle.”

 

Emerging Trends and Future Outlook

 

Even in the face of economic uncertainty, several new developments in the cannabis sector point to possible directions for expansion and stability. The growing focus on cost control and operational efficiency is one such trend. Businesses are actively looking for creative ways to save expenses by simplifying their processes, allocating resources as efficiently as possible, and lowering overhead. These businesses want to improve their bottom line and lessen the effects of market and regulatory uncertainty by concentrating on efficiency.

 

The diversity of product offerings and market tactics is another noteworthy development. Companies that deal with cannabis are branching out from typical flowers and investigating new product categories including drinks, topicals, edibles, and wellness items. Targeting specialized markets and customer groups and customizing items to fit their requirements and tastes is also becoming more and more important. By lowering reliance on any one product or market segment, this diversification not only increases the variety of revenue streams but also fortifies the resilience of the market.

 

Looking ahead, the industry’s future prognosis is heavily reliant on regulatory developments and policy changes. The Biden administration’s prospective reclassification of marijuana from Schedule I to Schedule III may have far-reaching consequences for the business, including lower tax costs and better access to financial services. However, the timing and breadth of regulatory changes are unknown, providing hurdles for businesses navigating the changing regulatory landscape. Despite these uncertainties, ongoing innovation, strategic adaptability, and a focus on long-term sustainability will be critical in determining the cannabis industry’s resilience and development prospects in the coming years.

 

The other main problem the industry may never be able to overcome is, as Jeff Bezos put it so well, “your margins are my opportunity“.  Once the 280E tax breaks get worked through the system, and that cash bonanza gets dispursed, the industry will always face the unrelenting pressure of the illicit or black market.  As soon as prices start to get too high, where stores and brands start to increase margins, the illicit market will become that much more appealing for their lower prices.  If the legal industry tries to push prices too high, the black market will snag market share from more price conscious consumers.  There is a glass ceiling on how high the legal market will ever be able to raise their prices due to price pressures on the black market.

 

While consumers may pay for the appearance of safety through lab testing and the convience of a brick-and-mortar store, the fact remains that cannabis flower is 60% cheaper on the illicit market and edibles can be up to 93% cheaper when local and state taxes are taken into account. People will price shop when the spread between legal products and illicit products widen to unreasonable amounts.

 

Bottom Line

 

The cannabis industry’s financial struggles, as highlighted by the significant losses incurred despite substantial revenues, underscore the need for regulatory reforms and operational adaptations. While some companies have managed to thrive, many others have faced considerable setbacks, grappling with challenges ranging from regulatory constraints to market volatility. The emergence of new trends, such as cost management initiatives and product diversification, offers avenues for growth and resilience in the face of uncertainty. However, the industry’s future trajectory will largely depend on the pace and scope of regulatory changes, as well as companies’ ability to innovate and adapt to evolving market dynamics.

 

Margin compression and the ever-looming black market may always create a glass ceiling for cannabis product prices going forward. Push to hard on a string and the consumer will look to save up to 85% on prices by finding a new piece of twine.

 

THE MARIJUANA MULLET, GREAT ON TOP, BAD ON THE BOTTOM, READ ON…

CANNABIS MULLET TOP LINE BOTTOM LINE

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Psychedelics Can Help with Which Severe Mental Health Disorders?

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Which Severe Mental Disorders Can Psychedelics Help With?

Severe mental illnesses refer to conditions that leave the patient with significant functional impairment and extreme symptoms. Sometimes, these may include serious symptoms such as psychosis, which can have harmful consequences if they aren’t diagnosed and treated early on.

Common treatments for serious mental health disorders vary; they usually include a combination of somatic and psychotherapeutic treatments. When it comes to medications, these can include antidepressants, antipsychotics, mood stabilizers, and anti-anxiety medications. Severe cases of depression may require neurofeedback, and other brain stimulation therapies to work. Until now, there is no one-size fits-all solution for mental health disorder treatments; many patients usually find success, if any, in using a combination of therapies for many years – sometimes, for life.

In fact, many patients even develop a tolerance to medications. This can make it difficult to find drugs that work, yet even then, most medications come with unwanted side effects.

But the rise of psychedelic use has brought about promise for those struggling with mental health problems, and their families. No other medication can induce psychological and neurobiological changes the way psychedelics can, thereby improving cognitive function and emotional processing. Psychedelics activate serotonin receptors, enhance neuroplasticity, and disrupt the default mode networks that cause rigid thinking and worsen depression. Because of this, psychedelics are considered a revolutionary treatment for severe mental health conditions that are resistant to treatment.

Check out this list of severe mental health disorders, and how psychedelics can help treat them.

Schizophrenia

Schizophrenia is a severe, chronic mental health disorder that greatly affects the way a person thinks, behaves, and fees. The main symptom of schizophrenia is a serious disconnection and detachment from reality, which can manifest through symptoms of psychosis. These may include delusions, hallucinations, disorganized behavior, and disorganized thinking.

Schizophrenia can be extremely challenging to treat and manage due to many factors, most especially the fact that the symptoms drastically differ from one patient to another. Also, many individuals with this condition don’t respond to conventional treatment.

Many studies have shown that psychedelics are promising for treating schizophrenia and managing its symptoms, allowing patients to regain control and enjoy a better quality of life. That said, it must be acknowledged that small doses of psychedelics are needed because larger doses may have negative effects. Keeping the doses at a clinically accepted low level can induce powerful anti-inflammatory properties especially benefiting patients’ brain function.

Additionally, regulated doses have been found to be well-tolerated and effective in treating several mental illnesses, including schizophrenia, which is notoriously difficult to treat.

 

Borderline Personality Disorder

Borderline personality disorder or BPD is a very complex mental health disorder whose hallmark symptoms include unstable relationships, severe emotional dysregulation, and constant impulsive actions. For this reason, it can also be known as emotionally unstable personality disorder. Some severe cases include high suicidal tendencies.

Successful treatment can feel like an uphill battle, as many patients often drop out. It has become critical to develop new treatments for BPD which have less side effects, and are certainly much more effective.

However, some research has pointed to psychedelic therapy. In one study in particular, authors found that MDMA combined with psychotherapy is effective and safe for treating borderline personality disorder. Researchers found that it provides a safe and beneficial alternative even for treating chronic PTSD, a co-occurring disorder of BPD. The researchers also found that MDMA was effective even when administered just twice or thrice during the course of a treatment, whereas psychotropic drugs commonly prescribed in psychiatry often must be taken everyday for a certain period of time.

The treatment, known as MDMA-assisted psychotherapy, is gaining traction for treating other complex mental health disorders as well.

 

Severe Anxiety Disorders

Severe anxiety disorders significantly impact the daily life, as well as quality of life, of patients. Whereas generalized anxiety disorders may be occasional bouts of anxiety, severe anxiety is intense, persistent, and chronic.

Patients with severe anxiety disorders excessively ruminate and worry about things that often can’t be controlled, even without a trigger. It can manifest physically, such a through hyperventilation, shakes, sweating, and a racing heart. Long term effects include insomnia, headaches, fatigue, and difficulty thinking straight. The severe anxiety is so debilitating that it requires serious and professional interventions for patients to regain their quality of life.

Thankfully, a handful of various psychedelics have shown promising results for treating severe anxiety disorders, even where conventional medications have failed. Psilocybin is one of the most widely studied psychedelics for treating chronic anxiety; studies show that it has long-lasting results in anxiety management, with excellent results observed months even after the last treatment.

LSD (lysergic acid diethylamide), or also known as acid, has also been widely studied for mental health disorders especially anxiety. According to studies, LSD can enhance cognitive flexibility and reduce anxiety scores especially when used in psychotherapy. As a result, patients can break rigid mental thought patterns that can influence anxiety-driven behaviors. LSD interacts with serotonin receptors in the brain, such as 5-HT1A and many others, which help regulate mood and reduce anxious behaviors.

MDMA’s potential for treating anxiety and other mental health disorders likewise continues to grow. Patients who struggle with anxiety show positive responses to MDMA; it has been shown to strengthen emotional processing while improving the coping mechanisms of patients. Also known by its street drug names molly or ecstasy, MDMA works well in modulating neurotransmitters in the brain, including dopamine, serotonin, and norepinephrine. These all play an important role in regulating one’s emotions and improve overall mood.

CONCLUSION

If you or a loved one are struggling with mental health disorders and would like to experiment with psychedelics, it’s always recommended to do so in a clinical setting. These are not conditions wherein self-medicating is advisable, because of the harmful side effects of taking too much or too little, as well as the potential interactions of psychedelics with other medications.

Therapy sessions in a controlled environment is the best, safest way to medicate with psychedelics for severe mental health disorders. Reach out to a medical professional to get started, but do your own research.

 

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How Worried Should You Be about Schizophrenia and Psychosis if You Smoke Weed?

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Should You Really Be Worried About Schizophrenia and Psychosis If You Smoke Weed?

Occasionally, a study on cannabis and schizophrenia or psychosis makes its way to the internet and becomes viral for a few weeks. It gets republished and circulated across numerous news channels and social media sites, spreading often unnecessarily alarming news and fear-mongering.

So what’s the truth behind it? Should you really worry about developing schizophrenia and psychosis if you smoke weed?

Let’s get the facts sorted first.

 

Schizophrenia

Schizophrenia is a chronic mental health disorder characterized by hallucinations, delusions, cognitive distortion, trouble thinking straight, and lack of motivation. Extreme cases of schizophrenia can also lead to episodes of psychosis or delusion, which is what occurs when an individual can no longer tell the difference between reality and fiction. Being severely disconnected from reality can occur among patients of schizophrenia and psychosis, but these can be caused by a wide range of physical or mental conditions.

What Causes Schizophrenia?

There is no one known cause for schizophrenia, though several environmental and genetic factors can contribute to its symptoms. It’s also known to run in families, so if someone in your family tree has had schizophrenia, it’s important to practice caution when using drugs and alcohol.

Certain environmental triggers can cause psychotic or schizophrenic episodes, particularly going through extremely stressful life events. Stressful environments, such as fast-paced cities, may also trigger symptoms. Other factors include the experience of childhood trauma, or certain changes in brain chemistry.


Cannabis: Treatment Or Cause?

The symptoms of schizophrenia can be managed or reduced through the use of antipsychotic medications, which are typically the first line of defense for this condition. First-generation antipsychotics, such as Chlorpromazine, Perphenazine, and Fluphenazine, are examples of widely-used schizophrenia treatments. Second-generation antipsychotic treatments include Aripiprazole, Lurasidone, Clozapine, Quetiapine, and several others. In some occasions, doctors may also prescribe antidepressants if antipsychotic drugs don’t help with the depressive episodes that may be associated with schizophrenia.

However, many antipsychotic medications come with unwanted side effects. They commonly include sexual dysfunction, weight gain, sedation, heart problems, difficulty urinating, and many more.

The use of cannabis-based medications for treating the symptoms of schizophrenia has been gaining traction in the medical and scientific community over the past few years. That said, we must differentiate the compounds used in cannabis because we can’t generalize all the compounds in the plant and its effects on the human body. Tetrahydrocannabinol (THC), the psychoactive compound in marijuana, and cannabidiol (CBD), a relaxing, non-psychoactive compound, both work differently in the human body.

What The Research Says

Several studies have shown that CBD could be promising for treating and even mitigating the symptoms of schizophrenia and psychosis. This is especially true if the condition is in its early stages.

For example, in a review conducted in 2021, scientists found that CBD may be beneficial in adjusting the levels of different brain chemicals which have been associated with symptoms of psychosis. One of these is anandamide – and the study found that CBD can increase its levels in the brain.

Anandamide is an endocannabinoid, and it’s believed to help reduce psychotic episodes through several mechanisms in the brain. For one, high levels of anandamide have been observed as successful in mitigating acute cases of schizophrenia.

Meanwhile, another review discovered minor albeit significant evidence that CBD could possibly reduce the symptoms of schizophrenia when administered in high doses. In the review, the researchers noted that 800 mg of CBD were given to patients over the course of 4 weeks. The results were similar to those yielded by amisulpride, an antipsychotic drug which is used in the treatment of psychosis. A similar trial found that 1,000 mg of CBD given to patients over 6 weeks was effective in reducing schizophrenia symptoms.

The results of a 2024 clinical trial also found that CBD was successful in mitigating the symptoms of patients who were at high risk for psychosis. For the study, there were 31 patients involved; they were given either 600 mg of CBD or a placebo everyday for 3 weeks. However, they weren’t given any prescription drugs during the course of the study. Researchers analyzed their baseline at 7 and then again at 21 days.

“Short-term treatment with CBD can ameliorate the symptoms of CHR state for psychosis and is well tolerated. These results highlight the potential of CBD as a novel treatment for psychosis, and the need for large-scale efficacy studies to further evaluate its clinical utility,” concluded the study’s authors.

So Who Needs To Worry About Schizophrenia and Cannabis Use?

Smoking pot won’t make you go psychotic. It doesn’t cause schizophrenia per se.

That said, those with pre-existing mental health conditions must tread lightly and be very cautious when it comes to using high THC products. In other words, if you already have a family history of schizophrenia or have had a history of psychotic episodes, THC may not be the medicine or recreational drug for you. Individuals with bipolar disorder, delusional disorder, or other similar personality and mood disorders with a tendency to have episodes of psychosis should first seek out medical attention.

Products containing high levels of THC may not be recommended in these situations, though CBD may help reduce symptoms. If you aren’t sure, it’s always best to consult with your medical provider.

 

Conclusion

Even if there is promising evidence that CBD can be beneficial for schizophrenia, we must be careful not to consider it as a substitute for any kind of medical treatment. There are many different types of cannabis products out there but there isn’t one-size-fits-all solution for mental health disorders. So while most people wouldn’t have a problem smoking weed, there is a small subset of the population as mentioned earlier – who do have to be careful.

 

PSYCHOSIS AND WEED, WHAT WE KNOW…

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What are Cannabis Dissolvables? Are These Products Trendy, or are They Worth Trying?

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What are Cannabis Dissolvables? Are These Products Trendy, or are They Worth Trying?

For cannabis enthusiasts who enjoy experimenting with consumption in an array of forms, or even for medical marijuana patients who simply want to look for the most convenient way to medicate, we’re spoiled with choices these days.

From vaping to smoking, edibles and beverages, tinctures, topicals, pills, and suppositories, there’s a way to medicate for everyone. But recently, a new way to consume marijuana has had some people talking: cannabis dissolvables! You might have heard about them as dissolvable cannabis powder or THC powder; these revolutionary powders are manufactured with cannabinoids and designed to be mixed into your food or drink. Upon consumption, you can enjoy the effects of cannabis within minutes.

But they work just like edibles, then, don’t they?

Nope!

Dissolvable cannabis powders are known for their fast-acting effects, which means that you can expect to feel the impact of the cannabinoids within minutes of consuming it in your food and drink. That’s because cannabis powders are water-soluble, allowing almost immediate absorption of the cannabinoids in your bloodstream. On the other hand, edibles can sometimes take up to 90 minute to take effect.

Why You Should Try Dissolvable Cannabis Powders

There are several reasons why you should give dissolvables a try:

 

  1. There are odorless and flavorless options in the market: Marijuana dissolvable powders that are neutrally flavored make it a breeze to add to your favorite drinks and food, without worrying about altering its flavor. Gone are the days when you’d be surprised by the often-undesirable flavors of supplement powders; now with flavorless cannabis powders, you can easily medicate while still enjoying the taste of your favorite food and drinks.

Smoothies, baked goods, juices, coffee, and oatmeal are just some examples of common items you can easily add THC powders to. That said, you can also find flavored options in the market if that’s what you prefer.

  1. High bioavailability: Cannabis powders are formulated to be absorbed efficiently. This way, your body can metabolize and absorb all or most of the cannabinoids in the product. Thanks to enhanced absorption, you can maximize the benefits of the cannabinoids.

  2. Accurate dosing: For consumers who prioritize precision dosing in cannabis, powders are superior when it comes to this. Getting an accurate dose is so easy, since packets are already pre-measured. Meanwhile, powders can also easily be measured using a spoon. This offers total control over how much you’re ingesting, which is particularly important for medical users who require consistent dosing for symptom relief.

  3. Discretion: When you add cannabis powders to your food or beverages, they don’t have that notorious smell that cannabis smoke is known for. Because they are either odorless or have a neutral odor, there’s no need to worry that taking it out and mixing it into a drink will alert people around you.

  4. Low or no calories: Most cannabis powders have little to no calories, so it’s a healthy choice for calorie-conscious individuals. Whether you are looking to make a healthier choice or simply want to experiment with cannabis formulations in the kitchen, dissolvable cannabis powders are an easy way to do so.

 

What Conditions Can Cannabis Powders Help With?

 

While dissolvable cannabis can benefit all patients, cannabis powders have a particular advantage for patients of certain conditions:

 

  • Nausea and vomiting: Patients who are undergoing chemotherapy, or recovering from eating disorders, may find that medicating with cannabis simply through food and drink is an efficient way to medicate. These conditions make it difficult to keep nutrients down due to the constant urge to vomit, but that makes it even more important to eat – in order to have the necessary vitamins and minerals to recover. Mixing cannabis powders in water or juices provides a gentle alternative to medicating and keeping food down.

  • Pain: Fast-acting cannabis works so well for pain relief. If you suffer from chronic pain and rely on cannabis for symptom relief, you can explore using cannabis powders. Thanks to its excellent bioavailability and quick results, there’s no need to wait several minutes to feel better. Powder can interact with the endocannabinoid system fast in order to reduce inflammation within minutes and positively affect the pain perception pathways.

  • Insomnia and sleep problems: Cannabis is an excellent natural medication for treating insomnia and other sleep problems. This is especially true if symptoms from another condition can cause difficulty falling or staying asleep, such as pain or general discomfort caused by inflammatory conditions. Consuming cannabis powders a few minutes before bedtime can help you hit two birds with one stone: enjoy relief from your symptoms, while easing into a comfortable state of sleep.

  • Anxiety relief: Many cannabis drink mixes are made with CBD, which provides excellent relief from anxiety. Start your day with a healthy dose of CBD to mitigate anxiety, and help you get through the day with some peace of mind.

 

In addition, many powder mixes are also formulated with other healthy ingredients. These vary from one product to another, and may include electrolytes, functional ingredients, hemp, terpenes, and other cannabinoids.

 

Conclusion

Dissolvable cannabis powders are innovative, but they are also accessible and inclusive, offering a convenient way to medicate. Whether you are a recreational cannabis consumer or a medical marijuana patient, the benefits of cannabis dissolvable powders are endless. Check out your neighborhood dispensary to explore dissolvable cannabis and share with us your favorite way to consume it.

 

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