Chuma Earns Record Quarter Due to Strong Demand for Compliance Tools and Services

LOS ANGELES, CA--(Marketwired - Oct 6, 2015) - Chuma Holdings, Inc. (OTCQB: CHUM) finances, services and certifies companies and organizations in the lawfully organized cannabis industry.

Changes to medical marijuana regulation in California have created record demand for Chuma's compliance services. Assembly Bill 266 creating a statewide medical marijuana regulatory system is driving dispensaries to implement best compliance practices. The need for Chuma's services is the strongest we've seen since Assembly Bill 420 was introduced in 2004 and is responsible for driving record growth.

Specifically, our audited financial statements for the three months ending May 31, 2015 reported revenue of $97,000, a record quarter for Chuma.

Chuma Certified (our seed-to-sale compliance advisory services) has been proven to not only keep industry participants out of trouble with law enforcement, but also saves these same participants hundreds of thousands of dollars per year by implementing proper compliance protocols. Improper methods of collecting sales tax and underreporting revenue are two of the biggest compliance errors made by dispensaries. Furthermore, failure to keep adequate records of inventory and income can result in sales tax assessments that may result in a dispensary's financial failure. Another major pitfall for dispensaries is paying staff as independent contractors instead of as employees. Failing to properly withhold payroll taxes and failing to issue payroll stubs as required by federal and state law can result in major fines and penalties. Locations without liability insurance and without workers compensation are frequently setting themselves up for major financial losses in the event of a patient or employee injury.

Chuma Certified addresses these compliance issues with structured best business practices.

There is a surge of new people interested in entering the California green rush, with cannabis job fairs attracting thousands of applicants looking to jump in. To better service our existing clients and to meet the demand for our services statewide, we are enhancing our current services and are in the beta stage of launching a technological compliance solution, enabling our certification tools to be used online and in real-time.