MeritValue

TREES Corp (Colorado)

CANNdata completeness 88%13 fiscal years on file
The thesis, from the filings

TREES Corp (Colorado) earns about -223% on invested capital, but has diluted owners by 208% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2019FY 2020FY 2021FY 2022FY 2023
Revenue$3.67M1$2.38M2$5.93M3$13.4M3$18.1M4
Net income−$15.5M5−$7.68M6−$8.87M7−$9.48M8−$7.08M8
Operating cash flow−$5.33M9−$5M10−$2.65M11−$2.05M12−$1.13M12
Capital expenditure$318,63913$314,77114$331,83415$61,61115—
Free cash flow (derived)−$5.65M9−$5.32M10−$2.98M11−$2.11M12—
Total debt$6.99M16$5.78M17$14M18$35.6M19$30.2M19
Cash & equivalents$122,39020$750,21821$2.05M22$2.58M23$969,67623
Diluted shares38.1M60.8M69.5M97.2M117.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$0.01
your share of equity
Profit it earned you last year
−$0.6
Free cash flow it threw off
—
Debt you’d be carrying
$2.58

10 shares is a claim on $0.01 of net worth that earned you −$0.6 last year, against $2.58 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-223% avg · 5y
FY19 -963%FY20 -91%FY21 -29%FY22 -17%FY23 -14%

It earned an average -223% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+208% shares · 5y

Share count is up 208% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 332% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2019-12-31 · accession 0001558370-21-003925 (Revenues)
  2. 10-K · period ending 2020-12-31 · accession 0001558370-22-004397 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2021-12-31 · accession 0001558370-23-006067 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2023-12-31 · accession 0001213900-24-031818 (Revenues)
  5. 10-K · period ending 2019-12-31 · accession 0001558370-21-003925 (NetIncomeLoss)
  6. 10-K · period ending 2020-12-31 · accession 0001558370-22-004397 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-23-006067 (NetIncomeLoss)
  8. 10-K · period ending 2022-12-31 · accession 0001213900-24-031818 (NetIncomeLoss)
  9. 10-K · period ending 2019-12-31 · accession 0001558370-21-003925 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2020-12-31 · accession 0001558370-22-004397 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2021-12-31 · accession 0001558370-23-006067 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2022-12-31 · accession 0001213900-24-031818 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2019-12-31 · accession 0001558370-21-003925 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2020-12-31 · accession 0001558370-22-004397 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2021-12-31 · accession 0001558370-23-006067 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2019-12-31 · accession 0001558370-21-003925 (LongTermDebtCurrent)
  17. 10-K · period ending 2020-12-31 · accession 0001558370-22-004397 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2021-12-31 · accession 0001558370-23-006067 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2022-12-31 · accession 0001213900-24-031818 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2019-12-31 · accession 0001558370-21-003925 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2020-12-31 · accession 0001558370-22-004397 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2021-12-31 · accession 0001558370-23-006067 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2022-12-31 · accession 0001213900-24-031818 (CashAndCashEquivalentsAtCarryingValue)