Medical Marijuana Group Had Big Profits, Big Expenses
Newly obtained documents shed light on the lucrative medical marijuana trade but also on the cost of doing business for one of the Bay Area's largest licensed pot clubs.
From 2008 through 2010, Berkeley Patients Group earned more than $45 million, with gross profit margins running at about 38 percent. But according to internal accounting records, most of that money was spent covering operating expenses including hundreds of thousand of dollars for attorneys, accountants and security.
The biggest cost was for employee pay. In 2009, the group spent over $3 million in salaries and benefits, including nearly a million dollars for its three directors.
Facing pressure from federal prosecutors, Berkeley Patients Group closed its storefront in May. The group continues to offer medical marijuana through a delivery service.