High Times Meltdown: Receivership Chaos and Financial Wreckage

Kevin Singer walked into the High Times shitstorm back in April, hired by ExWorks to sell off the magazine’s properties and repay the creditors. His mission? Uncover the mess and try to bring some order. But recently, Stephen Kunkle, the receiver for ExWorks, pulled the plug on Singer’s tenure. So, what did Singer find? Spoiler alert: It’s a financial horror show.

Unmasking the Financial Hellscape

Singer’s first discovery? High Times was neck-deep in 18 different legal battles. Then came the tax debts – a hydra of unpaid state taxes, employment taxes, and health insurance bills. But it didn’t stop there. The financial records? A disorganized catastrophe. High Times was juggling multiple accounting systems – QuickBooks Online, QuickBooks Enterprise, and Sage – without ever integrating them. Singer had to bring back an outside firm, Bright Balance, to tackle the backlog. But they bailed out again in February 2024.

The Creditors’ Revolt

Singer found himself fending off creditors left and right. Cultivators, extraction companies, power companies, security firms, lawyers, and even a landscaping company, were all demanding payments. Meanwhile, Singer’s own bill ran up to $279,828.05, but he’s still waiting for his paycheck.

Accounting Mayhem and Property Sales

High Times had been acquiring entities without a coherent strategy. Their assets? A Frankenstein’s monster of properties. They hired Green Life Business Group to handle the bidding process, but rumors of sales remain just that – rumors. High Times’ intellectual property, stores in California, a distribution and manufacturing operation, and a cultivation business were all up for grabs. But the highest offer came in at just $3.5 million.

HT Staffing: The Hidden Asset

In the middle of this chaos, Singer stumbled upon HT Staffing, a company High Times used to pay employees. This asset was somehow overlooked by Green Life Business Group. Now, Singer can’t access HT Staffing’s accounts without a court order, leaving dispensary employees in the lurch.

The Fiesta Events Fiasco

Then there’s the shady licensing agreement with Fiesta Events, signed by High Times’ current CEO, Shaun Jarvis. This deal gives Fiesta exclusive rights to the Cannabis Cup and limited rights to the High Times name. The catch? If enforceable, this deal slashes the value of High Times’ intellectual property from $7-8 million down to a measly $3 million. Singer plans to fight this in court but needs special litigation counsel due to conflicts of interest.

Shareholder Desperation

Colleen Manley, a major shareholder and cousin of High Times’ founder, is watching the brand she loves go up in flames. She’s part of a passionate group of shareholders and former employees who want to resurrect High Times. They’re hoping a new buyer will include them in the company’s revival. Manley is even considering a class-action lawsuit, though nothing’s set in stone yet.

The Grim Outlook

High Times is in deep shit. Financial mismanagement, legal battles, and disorganized operations have led to this nosedive. While the brand still holds significant recognition in cannabis culture, its revival hinges on resolving these monumental issues. The market conditions aren’t helping either, with cannabis valuations at an all-time low.

Final Thoughts

High Times is facing an uphill battle. Kevin Singer’s attempt to right the ship has been cut short, leaving a tangled mess for Stephen Kunkle to untangle. The company’s assets are still in limbo, with significant concerns from shareholders and a maze of legal and financial hurdles to overcome. The legacy of High Times hangs by a thread, teetering on the edge of oblivion.

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