We calculate that OA’s state contract has created over $3.7 million of value for NY Retail licensees, returning a significant ROI to the investment made by NY State. This is calculated as follows:

• OA has provided over $1,770,000 worth of financial models, consulting support, and term sheet reviews for free to NY CAURD and SEE licensees over the last 2 years (the market rate for a comparable financial model is $10,000 - 177 models were prepared).
• OA’s subject matter experts (SMEs) have provided CAURD and SEE licensees over 1,200 hours of 1:1 consultation for fundraising, marketing, finance, compliance, and general business support, a value of over $500,000 at their market billable rates (average of $400/hr).
• OA ran 93 live educational workshops (123 hours of teaching time) for 432 individuals (some licenses had multiple participants), a value of $1,500,000 when valuing the course at $3,500 per student. 
• OA provided 10 brand floor showcases and 125 conference passes for MJ Unpacked’s NY event to CAURD and SEE licensees, a total value of $51,000.
• OA’s open-source SOP templates for NY retailers will save CAURD and SEE licensees tens of thousands of dollars from having to engage compliance professionals to prepare the same documents.

Over and above the tangible value described above, as a direct result of the program, NY CAURD and SEE licensees have a far more substantial toolbox of resources to open locations and successfully operate them, and have formed a strong community of peers who can support one another through the establishment of this new industry.

The surveys conducted among participants of the Program yielded overwhelmingly positive feedback and valuable insights. Here are the key findings from the surveys:

Program Impact:

• When exit survey participants were asked, “How prepared did you feel to open a cannabis dispensary BEFORE the OA program?” the average response was 4.6/10. When asked, “How prepared do you feel to open a cannabis dispensary AFTER the OA program?” the average response was 9.5/10, a 107% improvement.
• Participants expressed an extremely high likelihood of recommending the program to colleagues or fellow business owners, indicating a strong satisfaction level.
• The program was praised for its ability to cater to both seasoned professionals and new business owners, providing valuable insights and guidance for launching a cannabis dispensary in New York.
• Elements such as the twice-weekly live workshops, online courses, and office hours with academy experts were highly valued and seen as crucial for moving forward in the cannabis industry.

Personalized Support:

• The availability of one-on-one office hours with Our Academy experts was particularly appreciated and highly utilized, as it allowed participants to seek tailored advice and support.
• Pro forma preparation and consulting services were seen as essential for understanding financial projections and making informed decisions for business planning.

Progress Toward Launch:

• The majority of participants reported meaningful progress in their journey toward opening their cannabis stores, attributing their success to the knowledge and resources provided by the program.

Community Engagement:

• Participants emphasized the sense of community and camaraderie fostered by the program, which helped them feel supported and connected with other cannabis entrepreneurs.

Suggestions for Improvement:

• There were requests for expanding the pool of academy mentors and extending the program permanently to continue guiding CAURD and SEE licensees beyond the program's conclusion.

Live Expert-Led Workshops

During the project, a comprehensive set of educational sessions was delivered, totaling 93 live sessions. These sessions were divided into different categories, with 12 being pre-recorded courses, 58 conducted as live workshops through Zoom, 10 being live in-person office hours in NY, 13 being live group office hours on Zoom, and 12 being vendor demos. In total, these sessions accumulated 70+ hours of teaching time.

An analysis of participation rates revealed that the workshops had an average participation of 89 attendees.

Student Feedback

Students were asked to provide feedback on the live workshops. What follows is a summary of the themes noticed:

• Appreciation for Learning Opportunities:
  
  • One student expressed gratitude for the important questions and forum, indicating that they are learning a lot each week.
  • Another was excited to rewatch a previous class, highlighting their interest in continuous learning.
• Positive Feedback on Information and Services:
  
  • One student appreciated the workshop for being very informative.
  • Another praised the team's responsiveness and the valuable information provided, expressing gratitude for the pro forma services.
• Praise for Specific Content and Resources:
  
  • One student praised the workshop as the best business book he'd read in a long time. He also expressed gratitude for the pro forma document shared during the workshop.
  • Another acknowledged the valuable insights from the workshop, particularly emphasizing the importance of messaging, vision, mission, and brand awareness in their business promotion.
• Appreciation for the Presenter:
  
  • One student expressed gratitude and admiration for the presenter, recognizing their expertise and skills.
  • Another gave a brief but positive comment on the presenter's good presentation.
• Recognition of the Relevance of Pro Forma Instruction:
  
  • One student acknowledged the importance of the pro forma instruction in their business pursuits and stated that they are catching on with the provided guidance.

Overall, the attendees seemed pleased with the workshop, the valuable information shared, and the presenter's expertise. The positive feedback indicates that the workshop is effectively providing relevant and informative content to the participants, contributing to their learning and business development.

Online Courses

The online courses offered in our program have been designed to provide valuable learning experiences to our members. These courses consist of workshop recordings that have been divided into easily digestible lessons, supplemented by relevant resources, quizzes, and worksheets. Additionally, to cover foundational retail business skills and knowledge comprehensively, we have incorporated some pre-recorded courses focused on Retail Math & KPIs.

Engagement Metrics

The engagement of our program members with the online courses has been a matter of interest and concern. As of now, the student activation rate (i.e. the number of engaged licensees with access to the content who enrolled in the LMS platform) stands at 72%. We recognize that the online courses are largely for those who missed the live workshops, and we didn’t expect participation in these courses to be as high as the live workshops (which feature valuable interactivity via Q&A sessions with the presenters and an active chat channel).

‍

Course Satisfaction & Student Feedback

The following aspects are particularly well-liked by our students:

• Informative Content: The courses provide valuable and relevant information to the learners, enhancing their knowledge and skills.
• Engaging Instructors: The instructors' teaching style and interaction with students have been appreciated, contributing to a positive learning environment.
• Mentorship Opportunities: The chance to engage with instructors for mentorship has been highly valued, providing additional support and guidance to the learners.
• Transparent Communication: The courses' communication approach is clear and transparent, ensuring that learners are well-informed throughout their learning journey.
• Tangible Progress: Students have reported positive results and progress in their learning, boosting their confidence and motivation.
• Industry Awareness: The courses have successfully increased learners' awareness of their respective industries, allowing them to stay informed about the latest developments.

Areas for Improvement

While the overall satisfaction is positive, there are some areas where improvements can be made:

• Learning Preferences: One learner expressed a preference for in-person learning over online courses. While online learning offers flexibility, we should consider ways to accommodate various learning preferences.

Course Testimonials

Positive feedback from our learners serves as a testament to the value and impact of the online courses. One such testimonial reads:

"Incredible support from OA professionals continues to be a guiding light moving forward towards launch." — Hector Echeverri

Office Hours

Our Office Hours program has been a crucial component of our commitment to providing comprehensive support to New York cannabis entrepreneurs. Through this initiative, we offer services provided by a diverse group of subject matter experts (“SMEs”) covering various essential areas such as finance, marketing, compliance, business plans, program support, and operations.

Extensive Engagement with SMEs:

Throughout the 2 years the program ran, our SMEs were actively engaged with licensees, providing invaluable guidance and assistance. In this period, we recorded over 1,540 touchpoints between SMEs and program participants.

Meaningful Impact on Licensees:

Our SMEs have been particularly effective in reaching out to new licensees, demonstrating their dedication to nurturing a thriving cannabis industry in New York. Among the total 569 licensees with access to this service by Aug 1, 2024, OA SMEs engaged with over 299 licensees, indicating an engagement rate of 53%.

Multiple Touchpoints for Enhanced Support:

We have strived to provide personalized and in-depth support to each participating licensee. On average, licensees who actively engaged with the Office Hours program experienced three or more unique touchpoints with our SMEs. This demonstrates the depth of support and guidance offered to entrepreneurs, allowing them to access expert advice tailored to their specific needs.

Challenges in Measuring Engagement Rates:

It is important to note that measuring precise engagement rates poses challenges due to the ongoing and perpetual release of licenses. As some licensees joined the program from its inception, while others joined at later stages, the engagement rates may fluctuate accordingly. Despite this challenge, we remain committed to delivering consistent support and guidance to all program participants throughout their journey as cannabis entrepreneurs.

‍

‍

Subject Matter Expert Observations & Recommendations

• Varying Levels of Preparedness: The experts have observed that licensees exhibit widely different ranges of understanding, capabilities, financial capacity, and business experience. Many licensees seem unprepared for the challenges that lie ahead, especially in securing locations and raising capital, which are identified as the main hurdles to overcome.
• Educational Tailoring: Due to varying preparedness levels, the educational content has been tailored towards more remedial subjects, focusing on basic entrepreneurial education rather than technical training. The experts have adapted to address the needs of a cohort that is primarily focused on getting stores open rather than operating them. To ensure the program reaches entrepreneurs in all the various levels of preparedness, more advanced licensees have been supported more so via office hours and pro forma consulting rather than the course content which they were less likely to participate in to begin with.
• Need for Additional Support: It is clear to the experts that additional support will be needed to assist licensees once their locations are open. Many concerning investment deals have been offered to licensees, particularly those relying on large management fees that can restrict their economic benefit if stores do not perform exceptionally.
• Community and Connection: Despite the challenges, positive outcomes have emerged from the program, including the creation of a community and connections among participants. This aspect is seen as an achievement for OA.

Pro Forma Services & Consultation

Our commitment to empowering CAURD licensees extends to providing comprehensive financial support through pro formas. The response from those who engaged with this offering has been overwhelmingly positive, underscoring the value it brings to their business planning and decision-making processes.

100% of eligible requests for pro formas have been completed to date, with more inbound requests expected in the final month of the contract. 

Overall, we have seen very high engagement with this service offering. We have also managed to steer numerous licensees away from problematic or predatory investment offers through the use of this tool and the subsequent consulting support.

OCM has also expressed gratitude for the capabilities of the pro forma tool, using its insights to help inform internal procedures and discussions. Due to the success of this offering in New York, OA is now in numerous discussions with other regulators and policymakers about replicating this technical assistance offering in other states and municipalities. 

We recognize the importance of personalized support for each licensee during this crucial financial planning process. Therefore, each licensee who has been provided a pro forma has also undergone a 60-90 minute walkthrough of the model, wherein our finance expert explains the assumptions and outputs of the pro forma. This interactive session enables licensees to seek clarifications, request updates to specific assumptions, and test various scenarios within the tool. The support doesn't end there; many licensees have scheduled additional follow-up sessions to further update and tailor their pro formas to specific investor deal terms, as well as to test different scenarios with the assistance of our finance expert.

The success and satisfaction expressed by our CAURD and SEE licensees with the pro forma support reaffirm our commitment to providing relevant, personalized, and actionable financial assistance. As the program progresses, we remain dedicated to empowering our licensees with the tools and knowledge necessary to make informed financial decisions that will contribute to the success and growth of their cannabis ventures.

SOP Templates for Opening & Operating a Dispensary

OA’s SMEs prepared an open-source library of standard operating procedures (SOPs) specifically for New York retail operators to support their opening process and operational success.

These SOPs have been made available for free, as an alternative to other service providers in the state who are charging as high as $30,000 for similar documents.

Each SOP includes a brief video with an OA SME explaining how to use the document effectively, and where they should consider customizing the SOP based on the licensee's store and business characteristics.

Community Space

One of the key components of our educational program is the community space we established on Slack. Approximately 183 licensees have joined and actively participated in this dedicated platform, which features over 1,000 BIPOC and justice-impacted entrepreneurs across the country. 

The Slack community serves as a crucial communication channel, facilitating interactions between program administrators and participants. It effectively serves its purpose as a means for program administrators to communicate important updates, such as the scheduling of live workshops and dissemination of essential program-related information.

Key Observations on PCA Waivers and License Issuance

Declining Revenues with Increased Store Openings

• Market data indicates that revenue per store has declined as additional dispensaries have opened. In Q1 2024, OA tracked multiple SEIV-funded locations that saw month-over-month revenue drops coinciding with the opening of new stores in their immediate area.
• Proximity Convenience and Advantage (PCA) waivers have further exacerbated this trend by allowing new stores to open within the 1,000 ft distance rule from existing stores, increasing direct competition within small geographic areas. These PCA waivers do not appear to be justified by economic or market analysis on the communities they affect, or follow the prescribed due process as is required by Section 64 of New York’s Cannabis Law. 
• The impact of new legal store openings mirrors the trend observed when illicit operators open near licensed locations, causing immediate revenue declines at the affected legal dispensaries.

Parallels to California's Market Saturation Crisis

• California serves as a cautionary example: as of 2023, the state had over 1,200 licensed dispensaries, yet many legal operators struggled due to an imbalance between retail density and consumer demand.
• Recent reports from California show that retail sales have fallen year-over-year, even with more stores opening, leading to closures and bankruptcies.
• The oversaturation of legal stores, compounded by illicit market competition, has resulted in price compression, declining profit margins, and financial instability across the sector—all trends that are now beginning to manifest in New York.

New York-Specific Data Points on Market Saturation Risk

• Legal dispensaries in New York have already experienced revenue losses of 20-35% when illicit stores open nearby, based on our tracking of sales reports.
• The introduction of PCA waivers allows legal stores to cluster in a way that accelerates the same revenue declines we see from illicit competition, further diminishing the likelihood of store profitability.
• At the current rate of new license issuance, market revenues are unlikely to keep pace with the increase in store count, meaning per-store revenue will continue to trend downward.

Financial Sustainability Risks for Existing Retailers

• If we assume a breakeven revenue requirement of $3.5M for city-based stores and $2.0M for regional stores, then many existing licensees are already struggling to sustain profitability.
• If more stores continue opening due to license issuance and PCA waivers, we anticipate that a significant number of currently open stores will see their revenue drop below sustainability thresholds within the next 12 months.
• Given the financial strain already placed on SEIV-funded stores due to extreme debt servicing requirements paired with premium rents, additional competition in their immediate vicinity dramatically increases the likelihood of loan defaults and business closures.

Conclusion

The rapid issuance of new retail licenses, combined with the introduction of proximity protection waivers, presents significant risks to the financial viability of existing cannabis retailers in New York. Our data shows that as more stores open, per-store revenue declines, increasing the likelihood of widespread financial distress—a pattern already evident in California’s oversaturated market.

Without intervention, the trajectory suggests that many retailers will be unable to sustain profitability, leading to potential mass closures similar to those seen in California. To mitigate these risks, a strategic approach to license issuance and enforcement against illicit operators will be critical to preserving market stability and ensuring that New York’s legal cannabis industry remains viable in the long term.

‍

Viability Challenges of the New York State Social Equity Impact VENUTRES (SEIV) Fund

As a technical support provider to retail licensees, we have had direct access to anonymized financial data and market sales reports provided by the Office of Cannabis Management (OCM). Based on this data and our direct engagement with licensees participating in or considering working with the SEIV Fund, our analysis indicates that the SEIV Fund, as currently structured, has not been a viable financial solution for cannabis licensees, particularly those operating under the SEIV model.

Comparative Analysis: Raising Private Capital Vs. SEIV-Funded Sites

As part of our role in supporting retail licensees, we provided detailed financial pro formas comparing the viability of raising independent capital versus utilizing SEIV funding. Our objective was to ensure licensees fully understood the financial risks and implications of each path. Having reviewed over 10 prospective SEIV loan agreements on behalf of licensees in the Accelerator Program, our analysis consistently revealed the following key findings:

1. Significantly Higher Construction Costs for SEIV-Funded Sites
   
   • In most cases, construction costs for SEIV-funded locations were nearly double those of independently sourced sites.
   • This led to substantially inflated startup costs, placing a heavier financial burden on licensees utilizing SEIV funding.
2. Stronger Financial Returns for Independently Funded Locations
   
   • Licensees who identified their own sites and secured private investment generally projected far better financial returns than those who opted for SEIV locations when holding revenue forecasts equal. A licensee with private investment was projected to earn dividends on average 18 months after opening, whereas those in SEIV locations are unable to take dividends until the loan is paid off in full, an estimated 10-year period for most SEIV locations.
   • The substantial debt burden of SEIV locations creates a deferred payoff where the licensee cannot even prepay their loan without material financial penalties.
   • The ability to control real estate selection, negotiate costs, and structure financing more favorably contributes to stronger long-term profitability for independently funded locations.
3. Restrictive Loan Covenants Prevent Additional Investment
   
   • The SEIV loan agreement contains restrictive covenants that prevent licensees from raising additional debt or equity investment.
   • This restriction limits their ability to secure additional working capital, making it extremely difficult to adapt to market conditions, scale operations, or invest in business growth.

Financial Projections and Market Analysis and for SEIV-Funded Sites

1. Systemic Revenue Decline
   
   • SEIV-affiliated stores experienced an average revenue decline of 29% and 30% in January and February 2024 compared to their peak recorded revenue months.
   • 67% of SEIV locations open at least six months have shown declining revenue trends over the past six months, based on a comparison of their most recent three-month run rate versus their six-month run rate.
   • While this decline is most evident in SEIV locations, it is likely indicative of broader market trends affecting all licensed cannabis retailers. Despite this trend, SEIV locations are far less capable of surviving due to their materially higher breakeven point required to make rent and debt service payments.
2. Financial Viability Concerns
   
   • Prior assessments have estimated the breakeven revenue requirement at $3.5M for city-based stores and $2.0M for regional/upstate stores. Based on this benchmark, 71% of SEIV locations fall below these thresholds, putting them at significant risk of failure.
   • SEIV-funded stores operate with a higher expense ratio than equity-funded stores due to their reliance on 100% debt financing. The debt service burden adds approximately $30,000 per month in costs for city-based locations, necessitating an additional $360,000 in annual revenue to break even compared to equity-funded stores.
   • Applying the same framework, upstate SEIV locations require an additional $240,000 in annual revenue to reach breakeven.
3. Projected Default Risk
   
   • Given these financial realities, city-based SEIV stores likely require $3.86M in annual revenue to break even, while upstate stores require $2.24M.
   • Pro forma projections prepared by SEIV indicate that profitability is unattainable under $5M in annual revenue. Based on current data, only three city locations and one upstate location appear positioned t reach this threshold.
   • At breakeven, owners do not generate a salary or dividend, further exacerbating financial strain on business operators.
4. Market Pressures & Risk of Widespread Closures
   
   • With additional stores opening, including those benefiting from proximity waivers, revenue pressures on existing SEIV locations are expected to increase.
   • Current trends suggest that 60-75% of SEIV-funded locations could default and close by the end of 2025 without urgent intervention.
   • Loan agreements between licensees and Chicago Atlantic contain prepayment penalties that could trigger immediate financial liabilities for the state in the event of widespread defaults. Based on the debt structures reviewed:
     
     • The average SEIV store carries approximately $1.5M in outstanding debt.
     • If 20 locations default, this could result in:
       
       • $30M in outstanding principal
       • $30M in interest payments due immediately
       • $6-7M in prepayment penalties (make-whole amounts payable to SEIV fund managers)
     • The total exposure to the state could reach approximately $70 million.

Conclusion

The SEIV Fund was established to provide critical financial support for social equity cannabis licensees; however, emerging data indicates that its current structure, particularly the reliance on high-balance debt and SEIV-controlled site development, has created significant financial strain for many SEIV-funded businesses. These structural challenges not only undermine the short- and long-term sustainability of participating licensees but also place the broader social equity program at risk. Licensees who secure independent investment and self-select their locations tend to demonstrate greater financial resilience and profitability compared to those reliant on SEIV-backed deals. Without urgent intervention—such as restructuring loan terms, expanding grant-based support, or offering operational subsidies—many SEIV-funded businesses may face closure, potentially triggering widespread market disruption and exposing the state to substantial financial liabilities.

MJ Unpacked NY Conference

In April 2023, OUR ACADEMY provided support to New York cannabis entrepreneurs at the MJ Unpacked conference, aiming to boost their visibility and opportunities. 

We sponsored ten brand showcases, investing $35,000 to showcase their innovation. Our team offered pre-event assistance, helping entrepreneurs refine their pitches and displays. Additionally, we provided 125 conference passes to active CAURD and SEE licensees and co-founders, valued at $16,000, ensuring inclusive participation. 

To facilitate networking, we hosted a meet & greet event connecting our sponsored entrepreneurs with potential investors in the NY market.

MJ Unpacked Detroit Conference

In October 2023, OUR ACADEMY provided support to social equity cannabis entrepreneurs at the MJ Unpacked Detroit conference, aiming to boost their visibility and opportunities. 

We sponsored seven brand showcases, investing $35,000 to showcase their innovation. Our team offered pre-event assistance, helping entrepreneurs refine their pitches and displays. 

To facilitate networking, we hosted a meet & greet event at the conference connecting our sponsored entrepreneurs with potential investors.

Live NY Kickoff Event

Before the signing of its state contract to run the NY CAURD Accelerator Program, Our Academy produced an event at Soho Works in New York to provide a full day of free seminars for CAURD licensees. This event was very well attended by CAURD licensees and OCM staff. The 6 live workshops gave licensees an introduction to Our Academy and the type of educational content we offer. The kick-off event was the first time this many NY retail licensees had gathered as a full group. Feedback from the event was overwhelmingly positive and many licensees reported that the event was refreshing, informative, and fun relative to other past industry events. Attendees were able to interact via Q&A sessions with industry experts and during open networking sessions over lunch and after the seminars. 

This event’s success has encouraged Our Academy to plan more live events in the future, to help strengthen the CAURD community as a whole and encourage collaborative business practices among interest-aligned entrepreneurs.

Live Budtender Training Bootcamps

OA conducted Live, on-site Budtender Training Workshops with cannabis educators to help CAURD and SEE licensees train their budtenders. In total, OA has trained over 500 budtenders so far in its pilot program.

The training in the pilot program has been successful, with average basket sizes from OA-trained budtenders of $110, versus non-OA-trained budtenders at the same stores averaging a basket size of $80 (a 38% increase). These OA-trained budtenders had a 96.25% retention rate as of Feb 2024. 

OA plans to use video content captured from these live training sessions to create online budtender training courses in the future, subject to securing the necessary funding.

AU Retail License Application Clinic 

OA ran a license application clinic in partnership with CB Counsel, Wana Brands Foundation, and the Bronx Brooklyn Tech Incubator to support CAURD licensees who at the time wished to submit SEE license applications.

This clinic ran for 14 days over one month to coincide with the 30-day general application period for retail licenses.

Entity Change Support

During its execution of the NY contract, there was no defined process for licensees to change the entity they originally applied under. This created many issues for licensees who have applied under their existing business entities, 501(c)(3) nonprofits, or under their personal names - each of which could carry significant consequences. 

OA staff spearheaded discussions with the Licensing Department of OCM to develop a detailed plan of action for how these entity changes could be made while following all legal and regulatory requirements.

OA staff provided 1:1 support to assist over 40 licensees through the multiple steps necessary to change their licensed entity.

This service was not within the scope of OA’s contract with NY State. 

Kiss My Grass Documentary

Our Academy helped produce a documentary featuring women of color in the cannabis industry in partnership with fellow executive producers, Nancy Whiteman, Colin Kaepernick, Rosario Dawson, Mary Pryor, Luke Anderson, and Hilary L. Yu.

The film had a sneak preview at the SXSW festival in March 2024 and is premiering at the Tribeca Film Festival June 6, 2025.

‍

‍

Live Budtender Training Event

Our Academy produced a budtender training event at Soho Works in New York to provide a full day of budtender training to a group of 100 budtenders. This training was a modified version of the two-day live budtender bootcamp OA had conducted for several recently opened dispensaries throughout 2023 and 2024. The course material was condensed into a single day and was very well received by the budtenders in attendance. All budtenders who attended the training were invited back to Soho Works the following day for a job fair where they could meet CAURD and SEE licensees. 

Live NY Wrap Event

Our Academy produced a program wrap event at Soho Works in New York to provide a full day of free live office hours for CAURD and SEE licensees. This event was very well attended by licensees, OCM staff, and OA mentors. The OA Mentors in attendance held office hours for a full 8-hour day, providing expert guidance, free pro formas, and other assistance on the spot. OA also hosted a job fair at the event, where licensees could meet with budtenders who had attended the OA-run budtender training course the day prior. Connecting trained budtenders with licensees was highly valued by both groups. Several licensees confirmed that they had made hires based on the individuals they met at the event.