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The US Cannabis Industry is Booming If You Don’t Count the $3,800,000,000 Owed in Back Taxes and IOUs

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The cannabis industry is great at not paying their bills.

If you remember the video that went viral for the dispensary owner saying the key to making money is not paying your vendors, and just let them go out of business.

In Canada, the Canadian government is cancelling 123 cannabis licenses over upaid taxes, and what they view as “uncollectible” debt.

In California, the state has created a “cannabis company deadbeat” list of entities that owe licensing and tax money to the state and can’t pay their debts.

In the US, total delinquent payments cannabis operators have exceeded $3.8 billion and could balloon to $4.2 billion in 2024 without some intervention. The problem stems, in part, from poor cash-flow management and the heavy tax burden of Section 280E, according to a report by Oregon-based Whitney Economics.

 

“The pressures created by current macroeconomic factors and regulatory policies have incentivized operators to stop paying their suppliers,” Whitney founder Beau Whitney said in a statement.

 

“This data further affirms the fact that the cannabis industry is struggling.

 

“Unless there is some form of federal and state regulatory intervention, the issues associated with the lack of payments will only worsen.”

 

An unknown number of respondents to a poll discovered that:

 

Delinquent payments mainly affect cannabis producers, while sellers get the fewest complaints.

Delinquent payments are harming the sector as a whole, but smaller and minority-owned enterprises are most severely affected.

Delinquent receivables were cited by 44% of respondents as making it more difficult to service debt, and by 34% as affecting their capacity to pay taxes.

Section 280E of the Internal Revenue Code, which prohibits cannabis operators from deducting business expenditures since marijuana is still illegal at the federal level, is perceived by 57.3% of survey respondents as having a higher impact on their marijuana business than outstanding accounts receivable.

 

California operators have been especially vocal about the delinquent payment problem.

 

A group of marijuana businesses in the state hired a credit association in May 2023 to try to recoup hundreds of thousands of dollars owed

 

Impact on Sector Dynamics: Cannabis Producers Bear Brunt of Delinquent Payments

 

Producers of cannabis bear a disproportionate amount of the burden of past-due payments in the sector. These companies, who grow and distribute cannabis goods, are severely impacted financially when customers fail to pay on time or at all. Their failure to receive product sales on time puts them in danger of not being able to pay for utilities and salaries, buy necessary supplies, and keep up with operations.

 

Cannabis growers are the industry’s backbone, delivering a consistent supply of goods to merchants and consumers. However, the consequences of payment delinquency impede the regular operation of their businesses. Aside from immediate financial worries, protracted payment delays limit manufacturers’ capacity to invest in expansion, R&D, and compliance measures required for long-term viability in a highly regulated industry.

 

In addition, the difficulties faced by cannabis growers go beyond simple budgetary limitations; they also affect the way they interact with suppliers and other players in the industry. These vital collaborations are strained by past-due payments, which might affect customers’ access to and satisfaction with cannabis goods. To preserve the integrity and stability of the whole cannabis sector ecosystem, the issue of payment delinquency among cannabis producers must be addressed.

 

Smaller and Minority-Owned Businesses Hit Hardest by Payment Delinquency

 

Smaller and minority-owned firms suffer the brunt of the cannabis industry’s financial delinquencies. These businesses, which frequently lack the financial reserves and credit access of bigger counterparts, are particularly vulnerable when payments are delayed or withheld. The gap in resources exacerbates the impact of late payments, increasing the financial hardship and operational issues that small enterprises face.

 

The cascading impacts of payment delays are more likely to affect smaller and minority-owned firms, even if bigger cannabis operations may be better equipped to withstand financial turbulence. The impact of non-payment on these businesses’ bottom lines is exacerbated by the fact that for many of them, unpaid receivables account for a sizeable amount of their income. Payment delinquency thus jeopardizes these companies’ survival and development prospects and makes it more difficult for them to compete in a market that is already fiercely competitive.

 

The need for focused interventions and support systems within the cannabis sector is highlighted by the disproportionate impact that payment delinquency has on smaller and minority-owned firms. It is imperative to tackle the structural obstacles that impede financial stability and provide fair opportunities for all parties involved in order to advance diversity, inclusivity, and resilience in the cannabis industry. A more inclusive and sustainable business environment may be created by stakeholders by giving these vulnerable enterprises’ demands priority.

 

Survey Reveals Challenges in Servicing Debt and Meeting Tax Obligations

 

A survey of cannabis sector participants reveals the significant financial hardship caused by payment delinquencies. Respondents identified the difficulties of servicing debts owing to pending receivables, with 44% rating this as a serious obstacle. The failure to collect payments on time not only disrupts day-to-day operations but also impedes long-term financial planning and growth goals for firms throughout the industry.

 

Furthermore, the survey results highlight how the cannabis industry’s ability to satisfy its tax responsibilities is impacted by payment delinquency. Of those surveyed, 34% said they were worried about their ability to pay taxes because they had unpaid receivables. In addition to the significant tax cost imposed by Section 280E, this simultaneous financial strain creates significant obstacles for cannabis firms trying to stay legal while navigating intricate regulatory frameworks and market dynamics.

 

The prevalence of these financial challenges highlights the urgent need for comprehensive solutions to address payment delinquency within the cannabis industry. Without timely intervention, businesses may face heightened risk of financial instability, regulatory scrutiny, and operational disruptions. Recognizing the critical role of financial stability in fostering industry growth and sustainability, stakeholders must collaborate to develop strategies that mitigate the adverse effects of payment delinquency and promote a more resilient and prosperous cannabis ecosystem.

 

Bottom Line

 

The burgeoning problem of delinquent payments within the U.S. cannabis industry, exceeding $3.8 billion and potentially ballooning further, underscores the urgent need for intervention. Stemming from issues such as poor cash-flow management and the burdensome tax regulations of Section 280E, this predicament disproportionately affects cannabis producers, especially smaller and minority-owned businesses, exacerbating financial strain and impeding operational stability. Survey findings reveal widespread challenges in servicing debts and meeting tax obligations, emphasizing the necessity for collaborative efforts among regulatory bodies and industry stakeholders to implement targeted solutions. Failure to address these issues not only jeopardizes individual business viability but also undermines the integrity and sustainability of the entire cannabis ecosystem, highlighting the imperative for proactive measures to foster inclusivity, resilience, and compliance within the industry.

 

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Is the Cannabis Industry Cooling Down or Just Holding Its Breath Right Now?

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The Leveling-Out Has Begun

When Colorado and Washington made history by fully legalizing recreational cannabis in 2012, the industry exploded like a champagne bottle that had been shaken for decades.

Sales surged almost immediately—and why wouldn’t they? Something that had been villainized and pushed into the shadows for generations was suddenly available at clean, well-lit stores with knowledgeable staff. No more texting sketchy dealers or meeting in parking lots. No more “my guy is running late” or “all I’ve got is this mysterious brown stuff.” Americans could finally buy cannabis products with the same ease as picking up a bottle of wine.

This green gold rush continued as legalization spread across the country. New markets opened in Oregon, California, Massachusetts, and beyond, each experiencing their own initial boom as consumers celebrated their newfound freedom. Cannabis businesses sprouted like, well, weeds. Investors poured billions into the sector, expecting an endless upward trajectory.

But something interesting has been happening over the past year or two. After watching this market for the past 15 years, I’ve observed a distinct “leveling-out” in 2024. The explosive growth has given way to a more sobering reality. In mature markets like Colorado, sales have actually declined significantly from their peaks. The industry isn’t collapsing by any means, but that initial euphoria has faded.

Today, we’re diving deep into this cannabis market cooldown. What’s causing this plateau? Is it market saturation, changing consumer habits, pricing pressures, or perhaps broader economic forces? And what can we expect moving forward, especially with the political shitfuckery surrounding cannabis policy at the federal level? Will the DEA’s potential rescheduling of cannabis to Schedule III change the game, or is it just another half-measure that misses the point?

Grab your favorite strain and settle in—we’ve got a lot to unpack.

Let’s face it—cannabis has undergone one of the most dramatic image rehabilitations in American cultural history. What was once depicted as a gateway to madness and moral decay in films like “Reefer Madness” is now casually discussed at dinner parties and openly consumed by celebrities on podcasts. These days, most people across the political spectrum support cannabis legalization in some form. The social stigma hasn’t completely vanished, but it’s fading faster than your memory after hitting a potent indica.

Sure, you still have your occasional media hit pieces about “today’s super-potent weed,” and there’s no shortage of conservative cucks who believe they should dictate what sovereign human beings can put into their own bodies. They’ll raise hell about the “dangers” of legalization while sipping their third bourbon of the evening. But these voices are increasingly drowned out by common sense and empirical evidence.

The truth is that the majority of Americans no longer consider cannabis to be more dangerous than beer. And if Budweiser can drop $7 million on a 30-second Super Bowl ad featuring talking frogs, then bowls of cannabis should be legally available to adults without controversy. This widespread acceptance is a double-edged sword for the industry, though.

When cannabis was first legalized, there was an undeniable electricity in the air. Hardcore stoners who had been advocating for decades were vindicated and celebrated. Curious newcomers who had been cannabis-curious but law-abiding finally had the opportunity to try it in a safe, legal environment. The euphoria of legalization was palpable, almost like fresh lovers high on endorphins and serotonin, eagerly exploring this new terrain of freedom.

However, as with any puppy love, that initial intensity eventually mellows. The novelty wears off. What was once exciting becomes routine. Similarly, the novelty of legal cannabis has faded into normalcy. The “I can’t believe this is actually happening” factor has been replaced with “Yeah, I might stop by the dispensary later, no big deal.”

I hate to break it to you all, but cannabis is now as mainstream as it gets. From soccer moms using tinctures to manage anxiety to lawyers unwinding with a vape pen instead of a martini, cannabis has infiltrated every demographic. College professors, construction workers, retirees, tech entrepreneurs—cannabis use cuts across all social boundaries. It’s just not that edgy or counterculture anymore.

As a result, the cultural force that was driving the cannabis industry in its inception has lost some power. Many consumers assume it’s a done deal—cannabis is legal, accessible, and here to stay. But this complacency is dangerous.

And that’s something we definitely need to address—until cannabis is completely removed from the Controlled Substances Act, nothing is set in stone. Federal prohibition still creates enormous problems for the industry, from banking restrictions to research limitations to inequities in enforcement. Just because you can walk into a dispensary doesn’t mean the battle is over.

The waning of novelty may be inevitable, but the fight for full legalization and normalization continues, even as we browse dispensary menus with the same casual interest we once reserved for Netflix titles.

The cannabis industry’s slowdown in 2024 wasn’t just about market maturation—it was also heavily influenced by the presidential election hanging over everything like a thick cloud of uncertainty. It’s pretty much a given that during presidential election years, cannabis reform tends to stall out as legislators and regulators become hyper-focused on election results and avoiding controversial moves.

The 2024 election was particularly paralyzing due to the vast ideological divide splitting the country. When Donald Trump reclaimed the White House to become the 47th president, the cannabis industry collectively held its breath. After all, the Biden administration had set various cannabis reform wheels in motion—however slowly they were turning—with the DEA’s recommendation to reschedule cannabis to Schedule III being the most significant.

With Trump’s victory, everything suddenly went into freeze-frame. Industry players, investors, and advocates all found themselves stuck in a waiting game, unsure how the new administration would approach cannabis policy. Would Trump honor the rescheduling process already underway? Would he reverse course completely? Nobody knew for certain.

I already told you all that Schedule III was dead on arrival, but the situation is even more complex when you consider who really came into power with Trump. People weren’t just voting for Trump—they were voting for the influence of Elon Musk, Tulsi Gabbard, RFK Jr., and others who have Trump’s ear. That’s why I call him “President Trusk”—because arguably Musk has unprecedented influence over the president’s policies and worldview.

I could go down a deep, dark conspiracy rabbit hole about all of this, but let’s stay focused on the cannabis stuff. What matters is that the industry is now recalibrating and gauging their next steps. We know that Schedule III will likely be blocked or abandoned, and that the only viable path forward is legalization via Congress. However, while that lengthy process plays out—if it even begins—state-by-state legalization must continue to build momentum.

The stark reality is that the next four years will be a roller coaster of unpredictable policies and political maneuvering. Most Americans will be so fixated on the broader cultural and political battles that cannabis reform may fade from the spotlight. The media cycle will be dominated by whatever outrageous tweet or policy announcement comes next, not by incremental changes to state cannabis programs.

I personally have no idea how it’s going to play out, and any analyst who claims they do—unless they have insider information—is lying through their teeth. We’re in uncharted territory with no reliable map.

The truth is that we’re in a weird spot. Without more states legalizing cannabis or expanding their existing programs, the federal government will have little incentive to pursue meaningful reform. The industry’s growth may continue to plateau until there’s a clear signal from Washington.

And let’s not forget, Trump promised the death penalty for drug dealers during his campaign. Will that extreme stance apply to all drugs or just fentanyl? Could the United States become an even more dangerous place for those involved in any aspect of drug policy? The uncertainty alone is enough to make investors hesitant and consumers anxious.

The post-election cannabis landscape isn’t just leveling out—it’s holding its breath, waiting to see which way the wind blows from the White House.

 

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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.

 

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