1. Executive Summary
📊 Revenue Model
Internal Transfer Price: $2.50 per gram
All Pittman flower is transferred to KBR Processing Hub at this rate. KBR then processes and distributes to retail.
$2.50
Per Gram
$1,134
Per Pound
40 lbs
Monthly Target
$45,360
Target Revenue/mo
Current Performance: Last harvest produced 28.9 lbs — 72% of target. Chronic equipment issues (HVAC, water, electrical) are limiting output.
2. Revenue at $2.50/gram
2.1 Conversion Math
| Unit | Grams | @ $2.50/g |
|---|---|---|
| 1 gram | 1g | $2.50 |
| 1 ounce | 28.35g | $70.88 |
| 1 pound | 453.59g | $1,133.98 |
| 10 pounds | 4,535.9g | $11,340 |
| 40 pounds (target) | 18,143.6g | $45,359 |
2.2 Monthly Revenue Scenarios
🏆 BEST CASE: 50 lbs/month
Revenue: $56,700 | If equipment optimized, yields maximized
🎯 TARGET: 40 lbs/month
Revenue: $45,360 | Tim's stated goal for consistent production
⚠️ CURRENT: ~29 lbs/month
Revenue: $32,870 | Based on last harvest (28.9 lbs)
❌ WORST CASE: 20 lbs/month
Revenue: $22,680 | Equipment failures, crop loss
3. Cost Structure Analysis
3.1 Estimated Monthly Operating Costs
| Category | Monthly Est. | Notes |
|---|---|---|
| Labor (Wyatt + team) | $12,000 - $15,000 | Based on payroll data from KBR ledger |
| Utilities (HEA, water) | $2,500 - $4,000 | Electricity for lights, HVAC; water delivery |
| Supplies (nutrients, etc.) | $1,000 - $2,000 | Liquid nutrients, grow supplies |
| Rent/Facility | $4,000 | ACG property lease |
| Maintenance/Repairs | $500 - $2,000 | Variable; higher with equipment issues |
| Cultivation Tax | Variable | Based on production volume |
| TOTAL ESTIMATED | $20,000 - $27,000 | Range depending on production level |
3.2 Cost Per Pound
| Production Level | Monthly Cost (est.) | Cost per Pound | Cost per Gram |
|---|---|---|---|
| 50 lbs/month | $25,000 | $500/lb | $1.10/g |
| 40 lbs/month | $23,000 | $575/lb | $1.27/g |
| 30 lbs/month | $22,000 | $733/lb | $1.62/g |
| 20 lbs/month | $21,000 | $1,050/lb | $2.31/g |
4. Breakeven Analysis
🎯 Breakeven Point
At $2.50/gram revenue and ~$22,000/month fixed costs:
19.4 lbs
Monthly Breakeven Volume
Formula: $22,000 ÷ $1,134/lb = 19.4 lbs
4.1 Profit Scenarios
| Monthly Output | Revenue | Est. Costs | Profit/Loss | Margin |
|---|---|---|---|---|
| 50 lbs (optimized) | $56,700 | $25,000 | +$31,700 | 56% |
| 40 lbs (target) | $45,360 | $23,000 | +$22,360 | 49% |
| 30 lbs (current-ish) | $34,020 | $22,000 | +$12,020 | 35% |
| 20 lbs (poor) | $22,680 | $21,000 | +$1,680 | 7% |
| 15 lbs (failure) | $17,010 | $20,500 | -$3,490 | Loss |
5. Current State Assessment
🚨 Equipment Issues Limiting Production
Multiple infrastructure problems are preventing Pittman from reaching 40 lb/month target:
5.1 Active Issues (as of April 2026)
| Issue | Impact | Status |
|---|---|---|
| Room 2 HVAC | Temps reaching 88°F, lights reduced to 60-70% | CRITICAL — Service needed before 4/13 harvest |
| RO Water System | Slow flow, requiring water deliveries | New filters installed 3/30, monitoring |
| Roof Leaks | Water intrusion in bathroom, above heater | Buckets in place, needs roof repair |
| Electrical | Lost power to one leg (MEA issue 3/24) | Being addressed by MEA |
| Solenoid Failure | Kush Mintz row affected (2.6 lbs vs normal) | Isolated incident, fixed |
5.2 Recent Harvest Performance
| Harvest (3/19/26) | Weight | @ $2.50/g |
|---|---|---|
| Orange Berry | 8.7 lbs | $9,866 |
| S.Dot | 8.5 lbs | $9,639 |
| Hashburger | 9.0 lbs | $10,206 |
| Kush Mintz (equipment issue) | 2.6 lbs | $2,948 |
| TOTAL | 28.9 lbs | $32,770 |
Performance: 72% of 40 lb target. Kush Mintz lost ~6 lbs due to solenoid failure ($6,800 lost revenue).
6. Path to Profitability
6.1 Priority Actions
- Service Room 2 HVAC immediately
- Quest dehumidifier + Trane AC unit need professional service
- Must complete before 4/13/26 harvest
- Potential gain: +5-10 lbs/harvest from full light intensity
- Stabilize water supply
- New RO filters installed, monitor performance
- Maintain Mat Su Water delivery backup ($135/1,200 gal)
- Address building maintenance
- Roof repairs before next winter
- Electrical stability (MEA coordination)
- Install required cameras (AMCO compliance)
- Upstairs hallway camera
- Bathroom fisheye camera
6.2 Production Optimization
- Priority strain: Honey Banana — track yield data for optimization
- Quality standard: 19% THC minimum (below → extraction)
- Room comparison: Track performance between Room 1 and Room 2
- Prevent equipment failures: Proactive maintenance schedule
7. Connection to KBR Processing Hub
🔗 The Relationship
Pittman grows → KBR processes → Retail sells
Every pound Pittman produces at $2.50/g reduces vendor purchasing at higher rates.
7.1 Cost Comparison
| Source | Cost/gram | Cost/lb | Advantage |
|---|---|---|---|
| Pittman (internal) | $2.50 | $1,134 | Lowest cost source |
| Dope Dynasty (vendor) | $5.50 - $7.50 | $2,500 - $3,400 | Premium strains |
| LBS (vendor) | $5.50 | $2,500 | Bulk options |
| Worner Bros (vendor) | $7.00 - $7.50 | $3,175 - $3,400 | Quality flower |
7.2 The Math: Why Pittman Matters
If KBR needs 80 lbs/month to fill buckets:
| Scenario | Pittman | Vendor | Total Cost |
|---|---|---|---|
| Pittman @ 40 lbs (target) | 40 lbs × $1,134 = $45,360 | 40 lbs × $2,800 = $112,000 | $157,360 |
| Pittman @ 30 lbs (current) | 30 lbs × $1,134 = $34,020 | 50 lbs × $2,800 = $140,000 | $174,020 |
| Pittman @ 0 lbs (none) | $0 | 80 lbs × $2,800 = $224,000 | $224,000 |
Conclusion: Every 10 lbs Pittman produces saves ~$17,000 in vendor costs.
8. Key Performance Indicators
| Metric | Target | Current | Gap |
|---|---|---|---|
| Monthly Output | 40 lbs | ~29 lbs | -11 lbs (28%) |
| Monthly Revenue | $45,360 | ~$32,870 | -$12,490 |
| Cost per Gram | <$1.50 | ~$1.70 | +$0.20 |
| Gross Margin | >40% | ~35% | -5% |
| Room 2 Temp | <82°F | 88°F | +6°F |
| THC Minimum | 19% | Variable | Monitor |
9. Recommendations
Immediate (This Week)
- Schedule HVAC service for Room 2 — Quest + Trane units
- Monitor RO water flow after new filter install
Before Next Harvest (4/13/26)
- HVAC must be serviced and temps controlled
- Verify CO2 levels (1400-1800 ppm for high temp compensation)
- All cameras installed for AMCO compliance
Q2 2026
- Target 3 consecutive 40 lb+ months
- Build strain-specific yield data for Honey Banana
- Address roof before fall/winter
- Evaluate per-plant optimization once baseline stable
Long-Term
- Reduce Pittman cost/gram below $1.50
- Increase Pittman % of KBR supply to >50%
- Consider additional strains (Baby Yoda, Oreoz per Wyatt's suggestion)