United States Tax Court 1997:
JPMS had no useful inventory controls. By April 21, 1989, the warehouse was in disarray, and there was a several-months' supply of products stacked up in JPMS' parking? lot. In fact, JPMS tracked its sales by manuallyrecording them on a blackboard. None of the JPMS staff knew how to use computers.As of April 21, 1989, JPMS had 21 employees who worked in a 90,000-square-foot warehouse space in Santa Clarita, California, owned by Mr. DeJoria and leased by JPMS. As of April 21, 1989, the warehouse space was not in compliance with the local fire code and had no environmental controls for drainage of waste orrunoff? water in the event of fire or disposal of poor-quality product. Some materials used to make hair careproducts are categorized as hazardous waste.
Cons: Hazardous waste in their products. OMG!