📊 Executive Summary
March 2026 hit $100K+ revenue — first time in company history. The Bucket Method is validated and working. The challenge now is supply cost optimization.
Key Finding: 73% of cash outflow is going to vendor flower purchases. Fixing Pittman's equipment issues is the highest-ROI move available — every 10 lbs of Pittman production saves ~$10,000-$15,000 vs. vendor prices.
1. The Bucket Method — What's Working
1.1 Bucket Inventory Targets (Per Strain)
| Product | Target | Rationale |
|---|---|---|
| Flower (packaged) | Up to 3 lbs | 2-3 week supply at current velocity |
| Pre-rolls | ~600 units | ~100 per store × 6 locations |
| Days coverage | 14-21 days | Buffer for processing lead time |
✓ Current Status: MAINTENANCE MODE
All 24 buckets are full. Strategy shifts from filling gaps to keeping them full. This is a fundamentally different (and easier) operational posture.
2. Where the Money Goes
2.1 Q1 2026 Cash Flow Summary
| Month | Cash In | Cash Out | Net |
|---|---|---|---|
| January | $25,437 | $26,299 | -$862 |
| February | $46,053 | $125,331 | -$79,278 |
| March | $56,783 | $95,275 | -$38,493 |
| Q1 Total | $128,273 | $246,905 | -$118,632 |
2.2 Cash Out Breakdown
| Category | Est. Amount | % of Total | Notes |
|---|---|---|---|
| Vendor Flower Purchases | ~$180,000 | 73% | Dope Dynasty, Worner, LBS, others |
| Payroll (processing team) | ~$36,000 | 15% | Tim, Sandy, Amber, Mikel |
| Overhead & supplies | ~$18,000 | 7% | Utilities, packaging, misc |
| Other | ~$13,000 | 5% | Equipment, repairs, etc. |
⚠️ The Problem Is Clear
Nearly 3 out of every 4 dollars leaving KBR goes to buying flower from vendors. This is where the leverage is.
3. Vendor Pricing Intelligence
📊 Tim's Pricing Rules (April 2026)
"That's about the max I'll pay — that's why I stopped trading because trades cost way more."
3.1 Actual Vendor Pricing
| Source | Price/Gram | Price/Lb | Payment | Notes |
|---|---|---|---|---|
| Pittman (Internal) | $2.50 | $1,134 | Internal | Best cost — priority supply |
| Vendor (Cash) — Low | $2.08 | $943 | Cash | Best cash deals |
| Vendor (Cash) — High | $3.80 | $1,723 | Cash | Higher quality/demand |
| Premium (Worner, etc.) | $4.40 | $1,995 | Cash | Max Tim will pay |
| Trades | $5.50+ | $2,494+ | Trade | Too expensive — avoid |
3.2 Purchasing Strategy Rules
- Use Pittman First — $2.50/g is unbeatable. Every lb from Pittman saves $0.90-$1.90 vs. best vendor cash deals.
- Cash Deals Only — Target $2.08-$3.80/g range. Never pay more than $4.40/g.
- No Trades — $5.50+/g destroys margin. Tim stopped trading for good reason.
- Volume Leverage — 6 stores = buying power. Use it to negotiate.
4. Pittman Cultivation — The Highest-ROI Fix
4.1 Current Performance
4.2 The Pittman Value Proposition
| If Pittman Produces... | Monthly Revenue @ $2.50/g | Vendor Cost Avoided | Net Savings |
|---|---|---|---|
| 40 lbs (target) | $45,360 | $79,200 (@ $4.40/g avg vendor) | $33,840/mo saved |
| 30 lbs (current-ish) | $34,020 | $59,400 | $25,380/mo saved |
| 20 lbs (poor) | $22,680 | $39,600 | $16,920/mo saved |
💡 Key Insight
Every 10 lbs Pittman produces saves ~$8,500-$11,000 compared to buying from vendors at $4.40/g. Getting Pittman from 29 → 40 lbs/month would save ~$9,400/month ($112,800/year).
4.3 Pittman Active Issues
| Issue | Severity | Impact | Action Required |
|---|---|---|---|
| Room 2 HVAC | CRITICAL | 88°F temps, lights at 60-70% | Service Quest + Trane BEFORE 4/13 |
| RO Water System | Monitoring | New filters installed 3/30 | Watch flow rate, backup ready |
| Roof Leaks | Medium | Water intrusion | Repair before winter |
| AMCO Cameras | Low | Compliance requirement | Install hallway + bathroom cams |
🚨 Critical: HVAC Must Be Fixed Before April 13
Room 2 is running at 88°F with lights reduced to 60-70%. This directly reduces yield. The 4/13 harvest will underperform if this isn't addressed.
5. Strategic Recommendations
5.1 Immediate Priorities (This Week)
- Schedule HVAC service for Room 2 — Quest dehumidifier + Trane AC. Must complete before 4/13 harvest. This is the #1 ROI action.
- Maintain all 24 buckets — Don't let any go empty. Revenue follows inventory.
- Cash-only vendor purchases — No trades. Max $4.40/g.
5.2 Q2 2026 Objectives
| Objective | Target | Owner | Timeline |
|---|---|---|---|
| Pittman output | 40 lbs/month (3 consecutive) | Wyatt | Apr-Jun |
| Vendor cost reduction | Avg <$3.50/g | Tim | Ongoing |
| Monthly revenue | $100K+ sustained | Tim | Monthly |
| Cash flow positive | Net positive by June | Marc/Tim | June |
5.3 What NOT To Do
- Don't expand — No new buckets, no new stores. Optimize first.
- Don't trade — $5.50/g kills margin. Cash only.
- Don't neglect Pittman — Equipment issues compound. Fix them now.
- Don't overpay vendors — $4.40/g max. Walk away from bad deals.
6. The Bottom Line
Summary
Revenue is solved. The Bucket Method works. March proved it.
Cash drain is the problem. 73% of outflow goes to vendor flower at $2.08-$4.40/g.
Pittman is the solution. At $2.50/g, every 10 lbs from Pittman saves $8,500-$11,000 vs. vendors.
Fix the HVAC. Room 2 is underperforming. This is the highest-ROI action available right now.
The buckets are full. Now it's about keeping them full at the lowest possible cost. That means maximizing Pittman and buying smart.