Cannabis Knowledge & Insights

Cannabis CoGS: Cost Tracking and Allocation for Cannabis Businesses

As a cannabis business operator, you understand that taxes can be a complete nightmare because of IRC 280E. Being able to properly calculate your cannabis CoGS is paramount to having accurate tax filings and solid records in case of an audit.

So the age-old question is: how do you properly back as many costs into CoGS and “use” them during the right periods to offset revenue and lower your cannabis business tax burden?

Working with a cannabis CPA is very helpful because they help you take into account your plants-in-progress, product-in-progress, and separate CoGS from actual inventory.

In this video, we walk discuss:

  • 280E & State-legal Cannabis Businesses
  • Time to Make a Product & Expected Yields
  • Example: Cost Tracking & Allocation Methodology
  • Step 1: Identify Costs that are Inventoriable
  • Step 2: Defining Equivalent Units of Measure
  • Step 3: Calculate Total Costs & Sales
  • Step 4: Allocate Costs to CoGS & Inventory
  • Reporting For Accurate Calculations

If you need help with cannabis accounting or cannabis CoGS, then please reach out to us at or call 800-674-9050.

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So for our webinar topic today we’re going to talk about cost tracking and allocation for cannabis, cost of goods sold and inventory. And this presentation is brought to you by GreenGrowth CPAs. So a little bit about GreenGrowth CPAs. Before we get started. We are a cannabis only firm with hundreds of active clients in over 12 States throughout the country and we even have international clients, public companies in Canada, some companies in Europe, and even a little bit of a footprint in Australia now. Yes, we’re a CPA firm. We can do your tax prep. We can also help with audits, the ones that happened with the IRS or any other local government, as well as if you’re doing an audit for an M and a deal. We can also work on business valuations if you’re considering buying or selling your business. We help with compliance specifically on financial compliance.

We can also offer you our outsource CFO service where we help you really get a grasp on the numbers of your business and help you take your business to that next level. And then lastly, IPO readiness. If you’re ready to hit the public markets. Do an RTO in Canada or even an IPO, then we can help you get ready for that process, help you go through the technical accounting and all the nuances to that process. We service all verticals in the cannabis industry from cultivation, manufacturing, distribution, retail stores, delivery testing, anything cannabis we can help out with specifically anything, cash and cannabis. If cash touches cannabis, we can surely help you through that process and understanding what the nuances to that specific situation are going to be. Now, before we hop into the topic today, I need to let you know that the information contained in this webinar presentation is meant for guidance purposes only and not as professional legal or tax advice and further does not give any personalized legal tax investment or any business advice in general.

So with that other way, let’s review what we’re going to cover in this presentation. So first I’m going to talk about 280E and the impact on legal cannabis businesses. Then I’ll discuss the two goals of this video and the example that I’m going to walkthrough. Then I’ll talk about the importance of understanding the time to make a product and having expected yields. Then we’ll walk through the example of cost tracking and allocation methodology. And there’s four steps to that. Step one, identifying costs that are inventorial. Step two, defining equivalent units of measure. Step three, calculating total costs in sales. And then lastly, step four, allocating those costs to cogs and inventory. The most important piece of this presentation will then review some reporting considerations for accurate calculations. And then some other last final considerations to wrap up the presentation. So first 280e and legal cannabis businesses.

Now 280e was implemented to stop illegal drug traffickers from, you know, working on their taxes and being able to deduct all these different expenses in lowering their tax burden. Right? So Al Capone didn’t really go to jail for doing all those heinous crimes. He actually went to jail for tax evasion. So now with IRC280E, it’s causing huge problems for state-legal cannabis businesses when it was initially intended to stop illegal drug traffickers from fixing their tax returns. Now, cannabis is a schedule one controlled substance and that’s where two 80 he comes in. If you’re operating a business that deals with schedule one controlled substances, you can’t really take any of those ordinary business expenses that regular businesses would take. These SGNA expenses, things like marketing, office supplies, sales wages, things like that, but using some other tax codes and accrual accounting, you can partially unlock your business from the 280e tax code.

Now, as you understand with 280E cogs is the only deduction that has been generally accepted by the courts. Okay? Now, the age old question is how do you back the most costs direct and indirect costs into cogs? Now, what we’ve noticed throughout working with hundreds of clients is that most operators are calculating cogs improperly and or they don’t have a reasonable methodology to backup how they’re actually calculating it. One thing is how are they allocating employee time? How are they allocating specific input costs? How are they actually splitting these costs between cogs and inventory, or are they even splitting them between cogs and inventory? Now this can create terrible outcomes if you ever get audited, which seems like a bigger possibility nowadays compared to an ordinary business. Some evidence coming out of Colorado through some of our legal partners, they’re saying one in five cannabis businesses will be audited at some level of the government versus one in 20 ordinary businesses, maybe even one in 30 ordinary businesses.

Now the government’s going to come looking for their money at some point. Now you need to have some type of reasonable methodology to back up all these tax filings that you create, being able to reconstruct Bulletproof financial records. So that brings me to the goal of this video and the example that I’m going to walkthrough. So I have two main goals throughout this presentation. First, I want to explain to you how you can actually reduce your cannabis taxes. Now, not all costs would flow directly to cogs from day one of spending, and you’re going to see this through the example that I’ll talk about when we do the actual allocation and why it’s important to actually have a breakdown between cogs and inventory. But getting inventory costs into cogs will then reduce your tax burden down the road. And I’ll show you through the example and you have to use gap accrual accounting to unlock what 280e holds back from your business.

And this is not something that a $25 an hour bookkeeper can do for you. You’re going to really need a CPA who understands accrual accounting and again, these reasonable methodologies. And one part of accrual accounting for cannabis businesses is the allocation between cogs and inventory. Now my second goal of this video and the more minor part I would say is to help you understand the importance of knowing what your cost per unit actually is. You know, what does it actually take to produce one gram of oil as a manufacturer? Or what does it take to produce one pound of flour as a cultivator? The importance of this answer and knowing this answer is that it helps you to answer other subsequent questions. The biggest one being, should we produce our product in house or buy it? So, for example, if you’re a cultivator, but you also are selling pre-rolls, are you actually able to produce cannabis at a good enough price per pound?

That makes it better for you to produce yourself than to buy from somebody else at a smaller markup? Or maybe you’re even getting it cheaper from somebody else at the same quality of flour because you may be bad at growing cannabis. And that’s okay. Just because you want to be good at something doesn’t mean you have to be good at it, right? We’re running a business here. We’re not living in Lala land about what we really want and we desire. You’re trying to run a P and L and run a business here. And sadly, most operators don’t know the answer to the question of what does it cost per unit actually, but they think that they do in this can get them into some deep, deep trouble later down the road. So this brings me to my next point here, which is understanding the time to make a product and expected yields.

And we’ll dovetail this into costs later down the presentation. So it’s important to know how long it takes to make a product and have those expected yields. If you want to run a successful business, what this does, it helps you for lead time with inventory, right? It’s very possible to run into supply crunches and you see this all the time when States go recreational, and this is where there is a ton of demand but not enough product to fill that demand. You’re losing potential sales at this point. Now, one thing as a timely talk right here, that Coronavirus that’s going on around the world, I’m not here to cause any panic, but it is really going to kick the cannabis vape market, enrolling paper industry in the teeth. Now, where are all these cartridges coming from there and maybe not all coming from China, but a big portion of them are or from at least Southeast Asia, those rolling papers, most of them are not made in the United States.

They’re being made abroad. So those kinds of things and we can’t plan for pandemics, but if there are certain things that you can plan for, you don’t want to get caught without any supply. Now expected yields helps you understand how much will be on hand at a certain point in time. You need to know how much product’s going to be available in 65 days from now and you’ll get this number by doing multiple grows or multiple runs of your manufacturing business and then you can start to true up some numbers, create certain averages. If you know that you’re bringing in, you know, raw ingredients from supplier a and your manufacturing, and then you bring in raw ingredients from supplier B from your manufacturing. Sometimes you will have different yields from different suppliers because the potency is different from each of those suppliers. At any rate, you need to track this information.

You can’t just continually produce products and say, Hey, we get what we get out of it. You need to be more thoughtful about approaching the time to make a product and the expected yields. Now you’ll notice there’s a chart on the screen here and it talks about a cultivation operation in understanding the timeframe at every step of the product processing to understand how many total days from clone to trimming, and then how many days in each stage there’s going to be. So knowing how many days it takes for each step is critical because typically you’re going to have plants at every step of the process. Every time that you calculate your costs and allocate those costs to inventory or cogs, and we need to know now, dig deeper into this throughout the presentation. You know, okay, if the average yield is a half-pound in a plant is 25% the way through the process.

What is the actual amount on hand we call equivalent units and I’ll get to explaining what equivalent units is, right? You can’t count a vegetative plant to have the same amount of pounds as a full bloom plant. And again, I’ll explain this in a few slides, but my big takeaway here is that you need to map out your process and how long it takes and how long each stage takes within the entire process. So you can accurately create what we call these equivalent units, which I’m going to address in the next few slides. So here we are, the example of cost tracking allocation and the methodology behind it. So what we’re gonna do is we’re gonna walk down the simplest example that I can create, which is a cultivation operation. And I’m going to keep it simple because this is one where you essentially produce all of your own products.

We’re just going to do this as a peer by colognes, sell pounds, cultivation business, no pre-rolls, none of that stuff. I don’t want to get into too granular of detail because you can get very confused very quickly. It gets very complicated when we start doing, you know, from cultivation to manufacturing or even vertically integrated businesses. And you’ll understand as we go through the process why that is. So there is four steps to this reasonable methodology process. Step one, identify the costs that are inventorial. Step two, defining equivalent units of measure. Step three, calculate total costs in sales. In step four, allocate costs to cogs and inventory. So let’s start with step one here. Step one is identifying costs that are inventorial. Now for a cultivator, the product costs are going to include direct materials, direct labor, and the cultivation overhead, which is fixed and variable costs.

Now what you’re going to do is look at all the costs incurred during the period that you’re measuring, whether that’s a month or a quarter. Typically it’s going to be on a monthly basis. You’re going to go through your QuickBooks or your Excel file, wherever you have all of your costs laid out. You need to delineate which costs or potential inventory costs in which do not qualify as inventory and you’re likely going to need a cannabis CPA to help you make these choices. When you start out, and this is one of those things that we help out with during our outsource CFO service for cannabis businesses, but at a high level you can pretty much reasonably say that the labor to produce the product is going to be inventorial raw materials, which is like your gross supplies, your nutrients, your clones, your growing equipment, which is the lights and your hydro systems, things like that and then any packaging supplies to help create those final units, those final pounds to get out and be sold.

Now things that you see are not inventory. People are selling cause office supplies or any marketing costs associated with selling those products. Now the second step in the process is defining equivalent units of measure. Now why is this important? Again, I brought this up earlier, but you’re going to need to track the progress of your businesses production and sales in a specific and consistent unit to be able to break down those costs from step one and allocate them accurately into cogs and inventory again, and we’re trying to unlock to ADE from your business. Now for cultivation in equivalent unit of measure is going to be plants and then we’re going to convert that plant into pounds of flour and trim by calculating an average yield per plant. And for manufacturing, your equivalent unit of measure is going to be grams. You buy grams and produce grams, so this makes sense.

Now this is not one to one with pounds of flour due to the yield percentages. So there is obviously going to be some kind of conversion. They starting to see a lot of multiplication in here and this is where the complications come in and that’s why I’m just going to stick with a peer cultivation example. And this brings us back to knowing how long it takes to produce a plant from clone to final trim ready for sale. Okay, the problem is this, you have plants in the ground but they’re not all the same maturity. So we need to convert them into your equivalent unit of measure, which is going to be pounds, and we’re going to use what we call percentage of completion. Very self-explanatory. How complete is this plant? So this is why you need superb tracking of your cultivation production. And after four to five harvests, maybe you realize that one plant yields a half pound and that’s the plant to pounds conversion rate that I spoke about earlier in this slide, right when I said for cultivation, the equivalent units of measure is plants.

Then you convert that into pounds. So that’s your conversion right there. For this example, we’re just going to use one plant gives you a half-pound, and if you have 10 final mature plants and a half-pound per plant, that’s five pounds of equivalent units. Now here’s where it comes into understanding the full process. We may have plants that are at a specific stage of the growth cycle and we have to adjust by the completion. So for example, say you have some plants that are 25% into the completion days of the completion cycle, you’re going to multiply that by the half-pound. Okay? So five plants that yield a half-pound each that are 25% done within their hundred-day cycle, that’s five till five plants times a half-pound. Okay? Two and a half pounds and then 25% complete equals 0.625 pounds of equivalent units. Hope that make sense. You’re going to be breaking down and you know things are not going to be fully at that half-pound.

They’re going to be partially way through as you start to see, there’s a lot of math to get involved in this, and this is again as a very basic example, but just a quick peak at multi-license, you know, cultivation and manufacturing or vertically integrated all the way through retail. You need to have the same equivalent unit between cultivation, manufacturing and then through your retail to really do proper allocations. So he starts to see six, seven, eight, 10 multiplications here when you get to multiple licenses, right? Converting plants into pounds, into oil grams. There’s a lot going on here. And again, you need to track the yields of the plant cultivation and the oil production and maybe your pre-roll production. So that’s why we’re going to stick with a simple example here.

Now, step three, calculating costs and sales. Now after you understand and identify which costs are inventorial and your equivalent units of measure, we need to figure out what are the total costs. So from step one, you incurred all those inventorial costs for a particular month, say for the month of February, and that came out to say $80,000 now the question is, out of this total, we need to figure out how much of that goes into inventory and how much should be flushed through your P and L, your profit and loss statement. Two cogs. Okay? You would think the quick answer is that pate. It’s all cogs, but that’s not the most accurate answer. To unlock the power of accrual accounting on your cannabis tax filings. And so now we understand the costs are $80,000 we’re going to look at the sales this period and we’ll just say it’s $60,000 okay? You’re going to use this to calculate your margins. Once we’re done with this entire exercise and not going to go over the calculating of the margins, it’s very simple. It’s, you know, how much did it cost divided by how much did you sell it for? That’s your gross margin.


Now step four, the meat and potatoes of this entire presentation, allocating those costs to cogs in inventory and how you actually do that. So what you’re going to actually need to do this exercise, is there a need, the quantity in equivalent units at the beginning and end of the month, and then how many equivalent units were sold during the month. Now again, I’m going to simplify this and not even show all the calculation of plants and progress at each stage. I’m just going to give you the final numbers because we could be here for 20 to 30 extra minutes. If I broke it down that much by all the plants in progress. Just understand that you’re going to need to calculate equivalent units on a percentage basis of that completion so you can get to what we’re trying to work on here and if you really, really want to learn how this works and have this done for your business and reach out to our team and we can implement all this tracking and allocation for your cannabis business.

Now we’re going to go over two examples, a first-month example of brand new business and a second-month example. And again, I’m simplifying things here so you can really just look at, okay, we’re putting some costs here and some costs here and why we’re doing that. So the first-month example, this one is the easiest to understand at the beginning inventory or beginning amount of equivalent units is zero units. Now the total units is 160 pounds produced in month one. We’re just grabbing this number. It’s an arbitrary number, just trying to make it easy to understand. Some of those are not fully grown. Just again, no, I’m not showing the breakdown of plants that are at a certain percentage of completion. We’re just going to go for simplicity sake and say 160 pounds produced and you’re going to have 40 units sold and that’s going to be implant pounds, right?

That’s the equivalent units, and the ending inventory is 120 units plant pounds. Now month one there is $80,000 in inventory costs from the last slide. We added that up. So what we’re going to do is do a little bit of a calculation so you know how much goes to cogs and how much gets put into inventory. So we produced 160 pounds, so the average cost per pound is $500 80,000 divided by one 60 that is going to be $500 a pound. Now we need to allocate that $80,000 sum to cogs and some to inventories. So we’re going to allocate $20,000 to cost of goods sold. Really, when you hear the word cogs, you really need to pay attention to that last word. Costs of goods sold, okay? Some of these pounds that you produce were not sold. Only a percentage of them are. So what percentage of that was actually sold?

It’s 40 of the 160 pounds, so 25% of that $80,000 which is $20,000 or you could just do the math and say, all right, we have $500 per pound, 40 pounds got sold, so $20,000 to cogs. This is where it’s really important to understand what your true cost per pound is, and then you have the balance of that is going to be allocated to inventory, which is $60,000 right? The 80,000 minus the 20,000 is 60,000 or 120 pounds. That is in the ending inventory divided by the one 60 that’s totally produced that 75% of 80,000 which is $60,000 or you can do the 120 pounds times a $500 which will get you $60,000 all those ways will get you essentially to that last inventory number there. So if we add up cost of goods sold allocation and the inventory allocation, 20,000 plus 60,000 that gives us the $80,000 in total inventory of all costs for month one.

Now that’s how you reasonably break down the costs into cogs and inventory. Now we’re going to go over the second month example. So this business is now been operating for two full months. We have the beginning inventory of 120 units and this is from the month one ending inventory. And that total value there is $60,000 because we’re doing the $500 per pound and it was the same, you know, $60,000 in end to inventory total there from month one. Now the total units produced in month two is a hundred pounds. We sold 140 units in plant pounds. And the important thing to notice is that we sold more than we produced. That’s where this whole reason of having inventory costs is very, very important. And then the ending inventory is 80 units. Now in month two we had $50,000 in inventory it will cost. So let’s set up this ratio and do this allocation.

So we produced a hundred pounds and that average cost to produce a pound is still $500 again, I’m keeping this very, very steady in simple here. So $50,000 is going to be allocated to cogs because this is this month’s total expenditures. Since we sold all the cannabis and it’s $500 per pound, so $500 times a hundred pounds is $50,000 now this is using LIFO, last in first out inventory instead of Pfeifle, which is first in, first out, just for the simplicity of this example, I don’t want to show, you know, bringing some in and then some out of inventory. Just want to keep it very simple. Now you’re also going to have to do what we call an inventory adjustment because we sold more pounds than we actually produce. So you pulled some stuff out of inventory to sell. Now this is where it’s very important to have an inventory balance.

Okay? So that inventory adjustment is going to be $20,000 because there are 40 pounds that we sold out of inventory. And a cost of $500 per pound, and then the ending inventory balance would be $40,000 there’s 80 pounds sitting in there at $500 cost per pound. Now, if we didn’t allocate some of those costs in month one to inventory, then you would have no way to allocate any costs to cogs fills additional pounds that we sold that we didn’t produce in this month. So that’s a problem. You would have a very, very high tax burden at that point. This is why it’s critical that you make accurate inventory allocations. You can really see how this can get incredibly complex if we use another conversion for plants, pounds to oil. At this point, you know when you start doing that vertically integrated or from cultivation to manufacturing to retail.

So this here is an example of month one and month two showing in month one that those total costs of month one get broken down very easily, 20 and $60,000 but in month two since we sold more than we produced, we had to take some of those inventory costs out and allocate them to cogs. Creating an adjustment and accrual adjustment here for your business so that you can accurately have cogs for that second month. Now hopefully you are able to grasp that yes, there is an allocation and there is some type of reasonable methodology to creating that cogs allocation and that inventory allocation, but now we need to focus on reporting for accurate calculations, right? You’ve got the methodology, the flow of the inputs and the products. You calculate those total costs, you have equivalent units and then you know how to get the cogs in the inventory calculations.

But what key reports do you need or do you just need a simple one-page report? It’s for you decide, but for cultivation you need to know a few things. You really need to know the status of the plants in the ground at the high level and then break it down granular. So first you’re going to need a harvest schedule. Similar to the chart I showed a few slides ago, you need to understand how many plants are at each stage of the process. You’re gonna need to know the number of plants in the ground. At each stage, you’re going to need to know the day that they’re planted. So you can tell which stage they’re at in, you know how far along the process they are. If they’re 27 days into a hundred day process, that means that they’re 27% complete. You also need to know the expected yield may be different strains give you different yields.

So that’s important to understand which strain is it, how far along is it, and what is the expected yield. And then you need to know when it’s going to be packaged and potentially if it’s already sold or when it will be sold. So next, aside from defining these report parameters, you need to define where it lives. Is it going to be in a cultivation tracking system or an Excel document or a Google sheet or something done by hand? I recommend don’t do this by hand. Make sure it’s digital so you can easily share and track, but you need to figure out where this is going to live at and then you’re going to need to designate who is going to maintain and fill out this report because if you miss this report, it becomes nearly impossible to catch up on, right? These are snapshots in time.

Now from there, you’re going to need to control the system and the data, right? Who is doing it, who’s maintaining the report? What system is it on and keeping the integrity of the data. That designated person needs to do an inventory count at the end of each month. Catch it every 30 days because inventory, if you don’t know this, it’s a point in time. You can’t really go back and calculate these things. Some people think that they can, but it becomes very, very messy and very, very intense. We try to go back into time, so make sure that this report is calculated at the end of every month. Now people say that they have software that tracks or cultivation, well, most software’s won’t have an expected harvest date. They won’t have a ready for sale date, they won’t track projected yield. The only have historical yields, and I’m not saying that these softwares are not helpful or they’re not powerful, but an in-person inventory count for each stage of your plants or your products if you’re a manufacturer, is much more granular and reliable data because if the software gets it wrong or doesn’t have what you need is the owner of that technology company, you’re going to come out and defend you in an audit.

Probably not. They could care less. They’ve got their monthly subscription for you. You’ve signed some end-user license agreement that says use at your own risk. But if you have a CPA who can help you create accurate reports and accurate data and accurate records, those can be used later in an audit to reconstruct your financial records. Having a person do this for you is critical and yes it may be a little bit more expensive, but this is an investment in your peace of mind and confidence in the numbers of your business. Now some other final considerations here. First, one of the biggest challenges in an organization is departments talking and further knowing what to talk and share about. So cultivation, they don’t really speak to their accounting team, they’re busy working with the plants. It’s pretty much different languages. So this is where a third party CPA comes in that has cannabis experience that can bridge that gap in communication.

Cultivators can focus on their operation and take a few marching orders from the CPA and then the internal accountants can focus on their operation, taking the data that the third party CPA gives to them. And that third party CPA relays information, critical information back and forth between the two departments. And maybe you get more people in there, the purchasing department of people that are buying inputs for that cultivation operation. So it’s really important that you have someone who understands all the aspects, making sure that communication is happening between all of your departments in the last consideration here, again, I brought it up a lot of times. I was going over a simple example here, but what I really need you to understand is don’t get too complex in your reporting or your calculations. The example I went over was incredibly simple and had a few variables that held constant for simplicity sake, like the $500 per pound.

That could be hard to follow if you’re not a numbers person. This example that I went through, I’m sure some of you are putting questions in the chat or you’re just like, Oh my goodness, I don’t really understand. It’s a lot of numbers being thrown. A lot of mathematics though. It’s simple multiplication. It can be hard to grasp that first time. Trust me, I didn’t get the first time when Marco and I were talking about this, I had to really sit with it, so you may need to watch this presentation two, three, five times. At any rate. The key is to create a report that is very simple and easy to understand and using a methodology that’s simple and easy to understand. Don’t do the whole seed to sale one report, tracking everything. You know, if you do good luck keeping everything straight and organize.

And if you’re in a state with a seed to sale tracking requirement, you know little softwares like METRC, those will likely not have the info that you’re looking for. So don’t rely on some state-based software or state-mandated software to do this tracking for you. Create that simple report. Have someone spend the one hour or two hours on the 28th of the month walking through in taking these calculations and these numbers in for you and then let the CPA do all the allocations for you to the cogs and inventory case. We’ve covered a lot of ground. I want to go over a few key takeaways of cost tracking and allocation for cannabis cogs and inventory. So first, not all costs associated with creating a product will go immediately into cogs, which is the normal thought or the very easy thought. There actually needs to be a breakdown between cost of goods sold and inventory as you saw what that month, two example, if we didn’t make that allocation into inventory in the first month, we would have had nowhere to pull to have cogs to cover those sales in the second month.

Secondly, defining your equivalent unit and being able to track your products or production at all stages of production is critical to understanding your true cost of goods sold and your true inventory costs. Third, you must use a reasonable methodology for allocating costs to cogs and inventory. You can’t just guess. You can’t just estimate. You can’t do those kinds of things. You can’t be Willy nilly about this. You truly need to have a reasonable methodology. In the unlikely event that you get audited, you can rely back on that reasonable methodology and show how you got to your numbers. Because if you don’t have anything to back up all those numbers that you’re going to create for your cogs and inventory, you could be operating grossly negligent and the IRS will say, well, we’re going to disallow all the expenses cause you don’t know what you’re doing.

You have no methodology behind it, we’re just going to throw it all out and you’re going to get tax on the top line of your business, which can be very, very expensive. And the last point I want to make here is that capture the data at the right time and use reports to allocate those costs later. If you are not into the whole allocation of cogs in inventory and not able to do that right now, at least capture those inventory in production completion numbers now so that later when you engage a CPA, they can help you reconstruct those records to have an accurate CoGS and inventory allocation. Now. I hope this presentation has brought you some value in helping you understand the importance of accurate cost tracking and accurate allocations of those costs to cogs and inventory. So if you need help with improving your cannabis business cost tracking and allocations, reach out to GreenGrowth CPAs via our website or give us a call at (800) 674-9050 we have a lot of experience doing this, especially with our outsource CFO service. It’s a really good service to help you get a real grasp on your numbers, help you unlock your business from 280e give you those monthly reporting features so you understand how you’re clipping along on the business, helps investors understand and get some confidence behind their investment. It’s a really, really great thing. So if you need help with improving your cannabis business cost tracking and getting those accurate allocations, please reach out to GreenGrowth CPAs via our website or give us a call at (800) 674-9050 have a great day and we’ll talk to you soon.