What does the newly popularized term "Impairment charge" really mean? In accounting, an impairment charge describes a drastic reduction in the recoverable value of a fixed asset.
The accounting/finance catchphrase "impairment charge", can easily confuse the reader. "Charge" certainly sounds better than "write down" or "loss."
As such, it seems that #Cannabis companies have collectively adopted this phrase to strategically reframe the major problem they've all been forced to face - aka, reality.
Cannabis companies have been notorious for selling people (me and you) their purported values, as reaching billions of dollars, despite generating no profits and consistent month over month losses... for years, based upon highly hyped, overvalued and unproven "good will."
Now the schtick is up. *Poof* it's gone.
Was this a mere "price correction?" Don't be fooled.
Most Public cannabis companies make NO PROFITS for shareholders, but will nevertheless continue to pay themselves offensively bloated executive salaries and compensation until they finally make a majestically profitable exit into the sunset... leaving behind them smoke and embers of a company, employees, shareholders, creditors and local communities.
Unless shareholders get up and stop them first...
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