So far at least, nearly all the money coming in the door is going right back out in expenses. Like many Colorado dispensary operators, one operator has faced major, expensive problems with his grow facilities. He’s gone through five grow managers in four years, as top-notch growers who don’t already have lucrative, stable jobs are hard to come by. He’s had to destroy an entire poorly produced crop yield that had been devastated by mold, mildew, and pests. Brandon has also faced sky-high regulatory costs; between applying for his recreational marijuana sales license so he can sell retail pot this spring and upgrading his existing medical marijuana sales license to accommodate the growing number of patients registered with his dispensary, he estimates he’s been shelling out $15,000 to $20,000 over each of the past four months on city and state applications, licensing, inspection, and permit fees. There are other new costs associated with recreational sales, such as purchasing opaque, childproof shopping bags to accommodate the state’s new marijuana packaging rules. Brandon has also been hemorrhaging money in the form of legal and accounting fees to comply with an aggressive, multiyear federal audit of his business, one of the first of many Internal Revenue Service actions he predicts will soon be plaguing Colorado’s marijuana industry. “Everyone is going to be audited,” he says. After all, the more the IRS knows about the nascent marijuana industry, the better it can figure out how to tax it.