[IMPACT]
The immediate impact to Cannabis operators would be the realization of payroll savings related to optimizing their inventory management system. Reducing the time and the number of employees required to functionally manage their inventory controls and supporting regulatory audits will greatly increase revenues to the operators.
Operators will be able to more rapidly identify incidents of loss and theft, as well as better quality controls over their products which will preserve more capital and have faster and easier regulatory responses; which will reduce the risk of regulatory fines and regulatory actions such as corrective actions.
Operators will realize better returns on the capital they deposit into their Cardano enterprise wallets, have greater security of their assets, and allow for near-instant movement of assets from location to location reducing their reliance on cash, the risks of storing and transporting cash, and having better and quicker access to accounting records.
Challenges include largely regulatory matters such as:
- Compliance with CCB regulations
- Compliance with Department of Taxation regulations
- Due to operators having a lack of capital available to improve their processes and still comply with regulations, there is a real need to demonstrate a no-cost, proven, and well-designed solution to the CCB that would allow operators to improve their regulatory support and improve their business processes to realize greater compliance and increase their revenues.
Regulatory roadblocks and hurdles that will take time to navigate. CCB only meets once a month and, depending on the need to receive board approval, there may delay in board approvals and questions.
Delays in receiving or obtaining any necessary licenses through the Financial Institutions Division at the State of Nevada Department of Business and Industry for operators to operate their enterprise wallets.
Our mitigation efforts involve both a relationship-based approach with all stakeholders and the routine access, historical experience, business, and regulatory environments that Pinnacle Consulting & Advisors have within regulated businesses, state legislators, CCB members, the attorney general’s office, and local elected officials.
[FEASIBILITY]
Pinnacle Consulting & Advisors are currently conducting ongoing review and identification of strategic use opportunities with a Cannabis operator as well as routine meetings with regulators and officials relevant to the project. Our timelines associated with this project are as follows:
- 1 to 3 months to acquire Catalyst funding for a project with a viable use operator.
- 3 to 6 months analysis and design of solution models for inventory controls
o Potential for regulatory delays are low but possible
- 3 to 6 months concurrent analysis and design of a solution for POS and cash operations for operators.
o Potential for licensing delays are moderate to high based on the Nevada Finance division transitioning to a new licensing program
- In total, 6-12 months to have a usable data set for the inventory control process capable to present to the CCB for consideration
- In total, 6 to 12 months to fully implement the POS and cash solutions system
- Current and continuing meetings with CCB, department of taxation, finance department
Liaison support: Regulatory Support & testimony that includes necessary travel to Carson City for meetings as well - $10,000
Liaison support: Legislative Support & testimony that includes necessary travel to Carson City for meetings as well - $10,000
Investigative: Analysis, gap analysis - $20,000
Development: inventory system – $45,000
Development: POS and cash banking solution - $35,000
Development: AML/KYC overlay of enterprise wallet- $15,000
Legal support: Legal reviews as necessary for programs and at any relevant hearings or regulatory meetings - $15,000
Total: $150,000
Joel Kisner – compliance, regulatory support, investigative support, governmental liaison
Paul Wong – HR, HSE, EPA, DOT
Richard Forbus – Governmental Affairs
Kellie Skidmore – Due Diligence, AML, crypto
Maya Clark - paralegal
Benjamin Floyd – BSA AML
Ian Jay – legal support
James Rupe - SPO maximumMint Ticker AMINT
Fletcher Watson -SPO CarPool Ticker VROOM
[AUDITABILITY]
-Updates are provided monthly, to include:
Phased progress reports.
Licensure dates and application dates.
Catalyst meetings, stakeholder meetings,
All other progress events of significance.
- Approval of entire or parts of inventory system by CCB
o Documented realized gains in efficiency
o Ability to present a successful proof of concept to other CCBs throughout the US
- Acceptance of POS and cash banking solution by the department of taxation and Financial Institutions Division as necessary
o Documented realized gains usability and returns on deposits
o Ability to present a successful proof of concept to other CCBs throughout the US
N/A
SDG Rating
n/a