CTS IQ - Preliminary Questionnaire Help

This help document will help explain in more detail the different questions on the CTS IQ Questionnaire.

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Business Questions

Email:The E-Mail address to be used by C-TRUST for all future correspondences.
Company Legal Name:

The formal, legally recognized name of a company.

EIN:

Employer Identification Number, a unique nine-digit number assigned to a business by the Internal Revenue Service (IRS) for tax filing and reporting purposes.

Legal Entity Registered:

The process of registering a business or organization with the government, typically for the purpose of obtaining legal recognition and certain benefits or protections.

Legal Structure:

The form or organization of a business or other entity, such as a sole proprietorship, partnership, corporation, or limited liability company (LLC), which determines how the entity will be legally organized and operated.

Year Established:

The year in which a company or organization was founded/established and began operating.

Total # of Employees:

The total number of people who work for a company or organization.

Types of Licenses:

The different types of licenses that a company or organization may hold, such as a cultivation or retail license.

Company Headquarters:

The main office or location of a company or organization.

Company Biography:

A brief history of the company, including its purpose, operations, and achievements.

Cultivation Company Name:

The Employer Identification Number, a unique 9-digit identifier assigned by the IRS to identify a
business.

Cultivation Address:

The physical location of the cannabis cultivation company.

Cultivation License #:

The unique identifier or license number assigned to the cannabis cultivation company to legally grow
cannabis plants.

Total Square Footage:

The total area of land or space used for growing cannabis plants.

Average production cost per gram:

The average cost to produce one gram of cannabis.

Average price per pound:

The average price of one pound of cannabis.

Processing Company Name:

The name of the company involved in processing and refining cannabis into various forms like oil,
tinctures, etc.

Processing EIN:

The Employer Identification Number, a unique 9-digit identifier assigned by the IRS to identify a
business.

Processing Address:

The physical location of the cannabis processing company.

Processing License:

The unique identifier or license assigned to the cannabis processing company to legally process
cannabis.

Total Square Footage:

The total area of land or space used for processing cannabis.

Cost of bulk distillate:

The cost of bulk cannabis distillate, a highly purified form of oil used for various purposes.

Average cost of packaging:

The average cost of packaging the processed cannabis products.

Average wholesale price across all SKUs:

The average wholesale price of all the processed cannabis products across all Stock Keeping Units (SKUs).

Number of SKUs produced:

The number of unique processed cannabis products produced.

Number of retail/dispensary locations products sold:

The number of retail or dispensary locations where the processed cannabis products are sold.

Retail Company Name:

The name of the company involved in retailing processed cannabis products.

Retail EIN:

The Employer Identification Number, a unique 9-digit identifier assigned by the IRS to identify a
business.

Retail Address:

The physical location of the cannabis retail company.

Retail License #:

The unique identifier or license number assigned to the cannabis retail company to legally sell processed
cannabis products.

Total Square Footage:

The total area of land or space used by the retail company.

Daily Average visits:

The average number of daily visits to the retail company’s location.

Average order size:

The average size of an order placed by a customer at the retail company.

Hospitality Company Name:

The name of the company involved in providing hospitality services.

Hospitality EIN:

The Employer Identification Number, a unique 9-digit identifier assigned by the IRS to identify a
business.

Hospitality Address:

The physical location of the hospitality company.

Hospitality License:

The unique identifier or license assigned to the hospitality company to legally provide hospitality
services.

Total Square Footage:

The total area of land or space used by the hospitality company.

Daily Average Visits:

The average number of daily visits to the hospitality company’s location.

Average Order Size:

The average size of an order placed by a customer at the hospitality company.

Other non-cannabis revenue streams:

Any additional sources of revenue for the hospitality company, excluding cannabis.

Distribution Company Name:

The name of the company involved in distributing cannabis products.

Distribution EIN:

The Employer Identification Number, a unique 9-digit identifier assigned by the IRS to identify a
business.

Distribution Address:

The physical location of the distribution company.

Distribution License:

The unique identifier or license assigned to the distribution company to legally distribute cannabis
products.

Total Square Footage:

The total area of land or space used by the distribution company.

Number of vehicles in fleet:

The number of vehicles owned by the distribution company.

Charge per delivery wholesale:

The fee charged by the distribution company for wholesale deliveries.

Charge per delivery retail:

The fee charged by the distribution company for retail deliveries.

Lab Testing Company Name:

The name of the company involved in lab testing of cannabis products.

Lab Testing EIN:

The Employer Identification Number, a unique 9-digit identifier assigned by the IRS to identify a
business.

Lab Testing Address:

The physical location of the lab testing company.

Lab Testing License:

The unique identifier or license assigned to the lab testing company to legally perform lab testing of
cannabis products.

Total Square Footage:

The total area of land or space used by the lab testing company.

Average Cost Per Test:

The average cost of a single test performed by the lab testing company.

Number of tests performed per week:

The average number of tests performed by the lab testing company in a week.

Number of unique clients/licensees served annually:

The number of unique clients or licensed entities served by the lab testing company in a year.

Additional Locations:

Other offices or locations of a company or organization, in addition to its headquarters.

DBA(s):

“Doing business as” or trade names, which are names that a company or organization uses for business purposes that are different from its legal name.

C Suite / Ownership:

The “C Suite” refers to the top executives of a company, typically including the CEO, CFO, and COO. In the context of a business, it refers to the group of individuals or entities that hold most of the company.

# of PhDs on Staff:

This refers to the number of employees who have earned a doctoral degree (PhD) within a given company or organization.

NAICS Codes:

NAICS codes are standardized codes used by the North American Industry Classification System (NAICS)
to classify businesses based on their type of economic activity.

State Taxes Due Date:

The date by which state taxes are due to be paid.

County Taxes Due Date:

The date by which county taxes are due to be paid.

Insurance Due Date:

The date by which insurance payments are due.

Rent Due Date:

The date by which rent payments are due.

Financial Questions

What was the Company(s) Total Revenues/Gross Sales in the last 12/24/36 months?

Total revenues (also known as gross sales) refer to the total amount of money that a company brings in from its business activities during a given period of time. This includes all sales of goods and services, as well as any other sources of income, such as investment income or rental income.

% Cultivation:

The percentage of total revenues/gross sales generated by the cultivation division of the company.

% Processing

The percentage of total revenues/gross sales generated by the processing division of the company.

% Retail

The percentage of total revenues/gross sales generated by the retail division of the company.

% Hospitality

The percentage of total revenues/gross sales generated by the hospitality division of the company.

% Distribution

The percentage of total revenues/gross sales generated by the distribution division of the company.

% Lab

The percentage of total revenues/gross sales generated by the lab testing division of the company.

What was the Company’s average Earnings Before Tax, Interest, Depreciation and Amortization (“EBITDA”) in the last 12/24/36 months:

EBITDA is a measure of a company’s financial performance that excludes the impact of taxes, interest, depreciation, and amortization on its bottom line. 

% Cultivation

The average percentage of EBITDA generated by the cultivation division of the company in the specified
time period.

% Processing

The average percentage of EBITDA generated by the processing division of the company in the specified
time period.

% Retail

The average percentage of EBITDA generated by the retail division of the company in the specified time
period. 

% Hospitality

The average percentage of EBITDA generated by the hospitality division of the company in the specified
time period. 

% Distribution

The average percentage of EBITDA generated by the distribution division of the company in the specified
time period.

% Lab

The average percentage of EBITDA generated by the lab testing division of the company in the specified
time period.

What was the average Cost of Goods Sold (“COGS”) in the last 12/24/36 months?

COGS refers to the direct costs associated with producing the goods or services that a company sells. These costs include things like raw materials, labor, and other expenses that are directly tied to the production of the company’s products.

% Cultivation

The average percentage of COGS generated by the cultivation division of the company in the specified
time period.

% Processing

The average percentage of COGS generated by the processing division of the company in the specified
time period.

% Retail

The average percentage of COGS generated by the retail division of the company in the specified time
period.

% Hospitality

The average percentage of COGS generated by the hospitality division of the company in the specified
time period.

% Distribution

The average percentage of COGS generated by the distribution division of the company in the specified
time period.

% Lab

The average percentage of COGS generated by the lab testing division of the company in the specified
time period.

Do you pay 3rd Parties commissions or fees for selling your products?

Third parties refer to individuals or organizations that are not directly involved in a transaction or relationship but may be affected by it in some way. A commission is a fee that is paid to someone for their services, typically as a percentage of the total amount of the transaction they facilitated. In the context of the question, “commissions or fees” refers to the money that the company in question pays to third parties for selling its products.

How much (in percentage) of your total sales?

The percentage of the company’s total sales that are represented by a particular category or product line. For example, if the company sells three different types of products, and one of those product lines represents 20% of the company’s total sales, the company would answer this question with “20%.”

How much Cash On Hand (“COH”) does your Company hold as of the end of last year?

The amount of cash that the company had on hand at the end of the previous year. 

As of the date of this application?

The amount of cash that the company has on hand at the current date (i.e., the date on which the application is being filled out).

What is the average Payroll Cost in the last 12 months?

The average amount that the company has spent on payroll (i.e., salaries, wages, and other employee compensation) over the past 12 months. 

What is the annual Rent Amount (last 12 months)

The total amount of rent that the company has paid over the past 12 months. 

What is the annual Utilities Amount (power, gas, water, etc.) in the last 12 months?

The total amount of money that the company has spent on utilities (e.g., electricity, gas, water) over the past 12 months. 

Do you have current Debt?

Outstanding debt (i.e., money that it has borrowed and must pay back) at the current time.

Debt Types (Loans / Credit Cards / Accounts Payable / Other)

Debt associated with which of the named categories.

What is your Company’s Average Sale Price (across all products) per pound (LBS) in the last 12 months?

The average price that the company has sold its products for (on a per-pound basis) over the past 12 months. 

What is your Company’s Average Cost (across all products) per pound (LBS) in the last 12 months?

The average cost that the company has incurred (on a per-pound basis) to produce its products over the past 12 months. 

Did you purchase any new equipment and/or made improvements to your facility(s) in the past 24 months?

Any investments in new equipment or facility improvements over the past 24 months. 

How much, in total, did you spend?

The total amount of money that the company has spent on new equipment or facility improvements over the past 24 months (as described in the previous question).

How much Salable Inventory on Hand (“SIH”) as of the last day of the last month?

The amount of inventory that the company has on hand at the end of the previous month and is ready to be sold (i.e., “salable” inventory). 

How much Unsalable Inventory on Hand (“USIH”) as of the last day of last month?

The amount of inventory that the company has on hand at the end of the previous month but is not ready to be sold (i.e., “unsalable” inventory). 

Estimated Total Value (USIH)

Estimate of the total value of the company’s unsalable inventory (as described in the previous question). 

How much Bio Inventory as of the last day of last month?

The amount of Bio Inventory, which refers to a company’s inventory of biological materials or products, that the company had on the last day of last month.

Estimated Total Value (BIO)

The estimated total value of the company’s Bio Inventory as of the last day of the month.

How much Packaged Inventory as the last day of last month?

The amount of Packaged Inventory, which refers to a company’s inventory of products that have been packaged for sale, that the company had on the last day of last month.

Estimated Total Value (PKG)

The estimated total value of the company’s Packaged Inventory as of the last day of the month.

Has your Company been Audited in the past 12 months?

Formal examination of a company’s financial records and operations by an independent party within the last 12 months.

Please provide and short description of the purpose of the audit and contact information of auditor(s):

A brief description of the purpose of the audit and the contact information of the auditor(s), who are the individuals or organizations conducting the audit.

Do you owe money to the IRS?

Money owed to the IRS, which is the United States government agency responsible for collecting taxes.

How much do you owe?

The amount that the company owes to the IRS.

For what?

The reason the company owes money to the IRS.

Funding Questions

Amount Requested?

The amount of funding that the company is requesting.

Funding Type

The type of funding that the company is seeking, such as a loan or equity investment.

Have you been denied credit in the past 12 months?

Has the company been denied credit in the past 12 months, where credit refers to the ability to borrow money or obtain financing for a purchase.

What was the reason for the denial?

The reason why the company was denied credit, if applicable.

Preferred Term

The preferred term, or length, of the funding that the company is seeking.

Preferred Pricing

The preferred pricing, or the interest rate or other terms, of the funding that the company is seeking.

Current Company Valuation

The current valuation of the company, which is an estimate of the company’s worth.

Is this a 3rd party valuation?

Was the valuation provided by a third party, such as an independent appraiser, rather than being determined by the company itself.

Upload valuation

Upload any documentation supporting its current valuation.

What was your last loan/equity pricing?

The terms, such as the interest rate or other fees, of the company’s most recent loan or equity investment.

What is the use of funds for the new loan?

The intended use of the funds that the company is seeking through a new loan.

Is there any collateral for this loan?

Is there any collateral, or property or assets that the company is offering as security for the loan, available for the loan?

Please list collateral

List of the collateral, or property or assets that the company is offering as security for the loan, if applicable.

Governance Questions

Compliance (from 1 poor to 10 excellent)

A rating, on a scale of 1 to 10, of the company’s compliance with relevant laws and regulations. A rating of 1 would indicate poor compliance, while a rating of 10 would indicate excellent compliance.

In the last 12 months, how many Resigned/Let-Go?

The number of employees who resigned or were let go by the company in the last 12 months.

In the last 12 months, how many New Hires?

The number of new hires, or employees who were newly hired by the company, in the last 12 months.

Any active Legal Cases against and/or for your Company(s)?

Any active legal cases involving the company, either against the company or filed by the company.

Legal Cases – Case Number / Description

The case number and description of any active legal cases involving the company, if applicable.

Do you have a Service Maintenance Plan for your facility(s)?

Does the company have a service maintenance plan for its facilities, which is a plan for regularly maintaining and servicing its equipment and infrastructure.

Do you have a Service Maintenance Agreement(s) for your facility(s)?

Does the company have any service maintenance agreements with external vendors or contractors for its facilities, which are contracts specifying the terms and conditions of such maintenance services.

Do you have a Company/Employee Manual?

Does the the company have a company/employee manual, which is a document outlining the company’s policies and procedures for its employee.

Do you have departmental processes documented?

Does the company have documented processes for each department, which are written instructions or guidelines for how work should be carried out in each department.

Do you have an HR Manual?

Does the company have a human resources manual, which is a document that outlines the policies, procedures, and guidelines for managing and supporting employees within a company.

Work Environment (from 1 poor to 10 excellent)

A rating of the work environment on a scale from 1 to 10, with 1 being poor and 10 being excellent, where the work environment refers to the physical and psychological conditions in which employees work.

Company Reputation (from 1 poor to 10 excellent)

A rating of the company’s reputation on a scale from 1 to 10, with 1 being poor and 10 being excellent, where reputation refers to the general opinion or estimation in which a company is held by the public.

Does your Company have a written Employees’ Hiring & Retention Plan?

Does the company have a written plan for hiring and retaining employees, which is a document that outlines the steps and strategies that the company will follow to attract and retain employees.

Hiring and Retention (from 1 poor to 10 excellent)

A rating of the company’s hiring and retention practices on a scale from 1 to 10, with 1 being poor and 10 being excellent, where hiring and retention practices refer to the methods and techniques that the company uses to recruit and retain employees.

Does your Company have a written Customers’ Retention Plan?

Does the company have a written plan for retaining customers, which is a document that outlines the steps and strategies that the company will follow to keep its customers coming back.

Customers’ Retention Plan (from 1 poor to 10 excellent)

A rating of the company’s customer retention plan on a scale from 1 to 10, with 1 being poor and 10 being excellent, where a customer retention plan is a set of strategies and tactics that a company uses to retain its existing customers.

Does your Company have a written Emergency Plan?

Does the company have a written emergency plan, which is a document that outlines the steps that the company will take in response to a crisis or emergency situation.

Emergency Plan (from 1 poor to 10 excellent)

A rating of the company’s emergency plan on a scale from 1 to 10, with 1 being poor and 10 being excellent, where an emergency plan is a document that outlines the steps that the company will take in response to a crisis or emergency situation and a rating of 1 to 10 is a way of evaluating its effectiveness or quality.

Do you have a written Marketing Plan?

Does the company have a written marketing plan, which is a document that outlines the steps and strategies that the company will follow to market its products or services.

Marketing Plan (from 1 poor to 10 excellent)

A rating of the company’s marketing plan on a scale from 1 to 10, with 1 being poor and 10 being excellent, where a marketing plan is a document that outlines the steps and strategies that the company will follow to market its products or services and a rating of 1 to 10 is a way of evaluating its effectiveness or quality.

Does your company have a Board of Directors?

Does the company have a board of directors, which is a group of individuals who are elected by the company’s shareholders to represent their interests and oversee the management of the company.

Are there any UCC-1 filed by creditors?

Are there any UCC-1 forms filed by creditors, where a UCC-1 form is a legal document that is filed by a creditor to establish a security interest in the personal property of a borrower.

How many UCC-1 filed by creditors?

The number of UCC-1 forms filed by creditors, where a UCC-1 form is a legal document that is filed by a creditor to establish a security interest in the personal property of a borrower.

How do you rate your company in terms of Diversity?

A rating of the company’s diversity on a scale from 1 to 10, with 1 being poor and 10 being excellent, where diversity refers to the presence of a wide range of individuals with different backgrounds, experiences, and perspectives within the company.

How do you rate your company in terms of ESG?

A rating of the company’s ESG performance on a scale from 1 to 10, with 1 being poor and 10 being excellent, where ESG stands for environmental, social, and governance, and refers to the company’s performance in these areas, which are increasingly considered by investors when making investment decisions.

Products Questions

Company Product Categories

A list of the product categories that the company offers.

Do you have Unique Genetics (proprietary to your Company) ?

Does the company have unique genetics, which are genes that are proprietary to the company and cannot be found in other companies’ products.

Provide a short description of why you believe they are unique and valuable.

A short description of why the company believes its unique genetics are valuable, such as their ability to provide certain benefits or advantages over competitors’ products.

What is your Company’s average Pass/Fail independent lab tests results in in the last 12/24/36 months?

The average pass/fail results of independent lab tests that the company’s products have undergone in the last 12, 24, or 36 months, where a “pass” result indicates that the product meets the specified standards and a “fail” result indicates that it does not.

What is your Enterprise Wet Yield in pounds per year?

The company’s enterprise wet yield in pounds per year, where the “wet yield” refers to the total weight of the plant material that the company is able to produce in a year.

What is your Enterprise Wet Yield of distillate in grams per year?

The total amount of distillate produced by the company in a year, expressed in grams.

What is your Enterprise Dry Yield in pounds per year?

The company’s enterprise dry yield in pounds per year, where the “dry yield” refers to the weight of the plant material after it has been dried and is ready for use.

How many pounds does your Company sell per week (average)?

The average number of pounds that the company sells per week.

How many grams of distillate does your Company sell per week (average)?

The average amount of distillate sold by the company per week, expressed in grams.

What is your Company’s total Potential Capacity (at 100% utilization rate)?

The company’s total potential capacity at a 100% utilization rate, where the “total potential capacity” is the maximum amount of product that the company is able to produce in a given period of time and the “utilization rate” is the percentage of the company’s capacity that is actually being used.

Does your Company own its own Brands?

Does the company own its own brands, which are the names and trademarks associated with the company’s products.

Please rank your Company on Quality of Product

A ranking of the company’s quality of product on a scale from 1 to 10, with 1 being poor and 10 being excellent, where the “quality of product” refers to the overall performance, reliability, and safety of the company’s products.

Please rank your Company on Quality of Service

A ranking of the company’s quality of service on a scale from 1 to 10, with 1 being poor and 10 being excellent, where the “quality of service” refers to the overall level of support, responsiveness, and professionalism of the company’s customer service.

Confirmation Questions

Additional Information

Any additional information that the applicant would like to provide, such as details about the company of interest that are not covered by the other questions in the questionnaire.

Applicant Name

The applicant’s name regardless of the ownership of the company.