Background
Akerna Corp (NASDAQ: KERN) is a cannabis industry software provider operating in three main areas: government regulatory software, commercial software and consulting services. The government product, known as Leaf Data Systems (39% of FY19 revenues), enables state regulators to ensure cannabis vendor supply chain compliance. Akerna competes for state contracts, and any wins naturally encourage state commercial vendors to use KERN’s inventory tracking software, thus enabling the company to “upsell” its enterprise resource planning (ERP) software known as MJ Platform (37% of FY19 sales). As such, Akerna’s business is highly reliant on these