Cannabis Testing Lab SOP’s

Every state requires some form of testing to the final cannabis product. Therefore, every state requires at least one cannabis testing lab. However, the testing requirements vary depending on the legalization status of the state. For example, Arizona requires different cannabis testing than New Jersey . In addition, New Jersey cannabis testing labs must enter test results into the state tracking system, METRC, while Arizona labs must simply communicate final test results to the company whom ordered the test. Arizona and New Jersey are not the only states whom require testing, but they are two good examples.

Because each state regulation varies, it can be hard for a lab corporation to standardize their cannabis testing lab SOP’s. Even small labs can have trouble applying for lab licensing through their state. Luckily, we are here to help!

We Offer State Specific Standard Operating Procedures For Cannabis Labs!

If you are a testing lab trying to apply for a marijuana license, we can help with that too! We offer cannabis testing lab application writing services. Click the Contact Us button above, leave your information, and we will contact you and send over a quote for our services. (Normal application writing projects start at $3500 but the price may vary depending on the project.)

We have a wide variety of services for a current or future cannabis business.

Rhode Island Recreational Cannabis

Rhode Island legalized recreational cannabis in May of 2022. Alas, Personal use marijuana sales began December 1, 2022. However, there are only 6 licensed retailers who can sell recreational cannabis to the public. You may purchase personal use marijuana if you are over the age of 21. Additionally, you may only purchase up to 1 ounce of cannabis at a time. Most importantly, only 10 ounces are legal to have at your home or in your possession.

These 6 retailers have “hybrid retail licenses,” which allow licensed compassion centers to sell both medical marijuana and marijuana products to Rhode Island adults. The Department of Rhode Island Office of Cannabis Regulations calls these marijuana products “safe, well-regulated and competitively priced”. We will have to wait and see how consumers respond to the new recreational market.

If you would like to become a cannabis retailer in New Jersey and would like assistance applying for a license, click the link below to contact us!

In conclusion, the Rhode Island department of health took only 6 months to implement an Adult use sales. They successfully launched the Rhode Island Recreational Cannabis industry to benefit citizens and communities.

We have a wide variety of services for a current or future cannabis business.

Arizona Medical Marijuana License

The Arizona Department of Health Services is yet again raffling off marijuana licenses, except this time the license is for a medical cannabis dispensary. The department is calling the allocation the “2022 Nonprofit Medical Marijuana Dispensary Allocation”. The cultivation that accompanies a medical cannabis dispensary is where the business would be able to turn a profit. But not just anyone can apply for an Arizona Medical Marijuana License.

Medical Applicant Requirements

For starters, an applicant, and principal officer members, must have a valid marijuana facility agent license. Additionally, the primary board members must acquire property to dispense product either by rental agreement or by ownership. The dispensary must also have local zoning sign an attestation stating that the proposed dispensary is in compliance with any local zoning restrictions. Lastly, The dispensary must provide policies and standard operating procedures that comply with the Arizona Medical Marijuana rule. (These are the basic requirements. The Arizona Department of Health Services contains a detailed list of everything required to apply.)

Our Policies and Standard Operating Procedures Cover Inventory Control, Qualifying Patient Recordkeeping, Security, and More!

Applications for nonprofit medical marijuana dispensary certificates will be accepted beginning December 16, 2022 in the ADHS, Licensing Management System Facility Licensing Portal. The department will not accept applications after December 30, 2022.

Whatever Your Need, We Have You Covered!

Maryland and Missouri Become Recreational Cannabis States

Prior to November 9, 2022, nineteen states, the District of Columbia, and two other U.S. territories legalized recreational marijuana in some form. As of November 9, Maryland and Missouri join the list of recreational cannabis states.

Maryland citizens passed Question 4 permitting recreational cannabis in the state. It includes charging the legislature with providing guidelines for the use, distribution, possession, regulation, and taxation of cannabis. Beginning in July 2023, Maryland residents will be able to possess up to 1.5 ounces of cannabis. Additionally, they will be able to purchase cannabis from licensed cannabis retailers in Maryland. To learn more from a consumer perspective, visit the Maryland Medical Cannabis Commission website.

If you are a cannabis business, we can help you with the Adult Use cannabis application.

Missouri citizens passed Amendment 3, permitting recreational cannabis in the state and prohibiting the discrimination on the basis of medical cannabis use. The Amendment becomes effective on December 8, 2022. The Amendment legalizes the purchase, possession, consumption, use, delivery, and manufacture or sale of cannabis for those 21 and older. However, municipalities can still ban recreational cannabis through public vote. Employers can additionally discipline employees for working while under the influence of recreational cannabis. Of important note, this Amendment also includes a new anti-discrimination provision that applies to medical cannabis users. The Amendment states that employers may not discriminate against employees or potential employees if they participate in the states medical cannabis program.

Thankfully, We Have Standard Operating Procedures That Outline The Regulation

In conclusion, we happily welcome Maryland and Missouri to the list of Recreational Cannabis States. We can’t wait to see the industry spread into other states and eventually become federally legal.

Whatever Your Need, We Have You Covered!

The Importance of Seed to Sale Tracking

A company in Portland, Oregon is facing repercussions after mixing up a THC and CBD product. Consumers then purchased the CBD product and had adverse effects. An employee mixed up the two buckets containing CBD and THC products when packaging the finished goods for sale. The company also failed to test the finished products before selling to consumers which led to over a dozen consumers becoming sick after purchasing what they thought was CBD. Oregon regulators immediately took action by recalling both batches of products in question. We emphasize the importance of seed to sale tracking and inventory management following this event.

The company is facing a 70 day license suspension and a $200,000 fine from the Oregon Liquor and Cannabis Commission. This does not include the multiple lawsuits that consumers filed against the company. The first mistake the company made was using tracking labels that they affixed to packages by a rubber band. This makes it easy for the label to fall off or be taken off by an employee leaving room for human error. The company also stored both products on the same shelves, and used similar package identification numbers for both products. The company had the same employee package both batches of products. All of these factors show the importance of seed to sale tracking and good inventory control procedures are for the cannabis industry.

If you are having trouble with your inventory control procedures, or need help with a seed to sale tracking system, we are here to help! We specialize in cannabis SOP’s and marijuana consulting.

Whatever Your Need, We Have You Covered!

Mississippi Marijuana Applications

Mississippi will begin accepting marijuana applications on June 1st 2022 at 8:00am. Once the application process begins, there will be a 30-day approval time for business licensure applications. The Mississippi Department of Revenue is responsible for licensing medical dispensaries. The Department of Health is responsible for licensing medical patients, processing, testing, transportation and waste facilities.

Need Help Writing Your Application? We Offer Application Assistance!

To apply for a cannabis license, potential applicants should first register with the Mississippi Secretary of State’s Office. Subsequently, the business will need to ensure they are following all regulations outlined by the state. This includes testing, marketing, and advertising regulations. The department requires all applicants pass a background check and complete the finger printing process. In addition, all city ordinances must be reviewed and the business city must approve the business. Not only does the state require the business and owner information, it also requires the business submit Standard Operating Procedures along with their application. Mississippi marijuana applications with SOP’s can take hours to put together. Not to worry, we have you covered!

We Have Mississippi Specific SOP’s For Your Application. We Also Customize These SOP’s To Match Your Business Operations.

Finally, Mississippi requires medical cannabis businesses use METRC as the state designated track and trace system. You may definitely need training and support with seed to sale system integration and training on METRC. Therefore, we offer software support and training manuals that can help you with METRC and any seed to sale software you choose.

Whatever Your Need, We Have You Covered!

METRC Support

Several states have mandated METRC as the state inventory tracking system. METRC is also used for state reporting. The most recent state to mandate the use of METRC is Oklahoma. Commercial licenses and dispensaries have until May 26 to make the transfer to METRC. Oklahoma will be using METRC for seed to sale tracking and state reporting. You can read the full article, published by the OMMA here. Luckily, we offer METRC support such as training, system setup, and consulting services.

To Request METRC Support, Contact Us Today!

Dispensaries have until August 24, 2022 to sell or dispose of any product that do not have METRC tags. Test results must be entered into the METRC notes section for each batch that passes testing.

All commercial licensees must continue monthly reporting by using the OMMA Monthly Reporting Template for activity through May 31. The last template with activity through May 31 is due June 15.

Dispensaries, transporters and waste disposal facilities must continue using the OMMA Monthly Reporting Template for any untagged sales, transports and waste disposal through Aug. 24. METRC will meet the monthly reporting requirements and the template is no longer necessary for all tagged sales, transports and waste disposal after May 31.

We have a wide variety of services for a current or future cannabis business.

New Jersey Recreational Marijuana

New Jersey approved recreational marijuana in 2020. However, the state has announced that the sale of recreational marijuana may begin on April 21, 2022. Currently, there are 7 alternative treatment centers who have approval to begin sales on this date. Of course, these 7 companies are currently operating as medical marijuana treatment centers. Of the 7 approved companies, there will be 13 dispensary locations offering product to consumers. It is at the dispensaries discretion as to when they will offer recreational cannabis to consumers. Although, at least 7 locations have stated they will begin sales on April 21, the day after the industries major holiday, 4/20.

We Can Assist You With License Application Writing!

Apart from this, the Cannabis Regulatory Commission has approved 102 conditional licenses to small cultivators and manufacturers. However, it may take up to a year for these New Jersey locations to begin selling recreational marijuana. We can undoubtedly help you obtain a conditional use license in New Jersey. Click the link above for assistance.

If you plan to open a recreational dispensary, you will need SOP’s.

Unlike medical patients, recreational cannabis consumers that are 21 and older will be able to purchase up to 1 ounce of marijuana in a single transaction. Dispensaries will also be responsible for implementing SOP’s that ensure this purchase limit is adhered to. In conclusion, these Standard Operating Procedures will be requested by the department when applying for licensing.

We have a wide variety of services for a current or future cannabis business.

Arizona Social Equity Award

Last year, we posted information on the Arizona Social Equity program award. You can read the article here: Arizona Marijuana Social Equity Program. At the time, the Arizona Department of Health Services had limited information on when the winners would be announced. At this time, the department has insight into the event.

The Arizona Social Equity Program will award 26 individuals licenses on Friday, April 8, 2022. The drawing will take place at the department, and will be available to live stream online. The drawing will take place at 1pm Arizona Standard Time, and will be available to view here: azdhs.gov/live.

Obtaining a license does not mean the winners can immediately begin operations. Winners must apply for an approval to operate certificate from AZDHS Marijuana division. So what does that entail? Let’s look at those details.

For This Reason, We Offer Application Writing Services

Approval to Operate Certification

An approval to operate (ATO) is just that, it grants the license holder the right to legally dispense marijuana to consumers and profit from the sale. In order to obtain an “ATO” a company must prove it is ready to comply with Arizona’s marijuana statutes and rules. To being, the winners will have 18 months to prove they have the necessary resources to operate a marijuana establishment. In addition, the requested information may include the facility floor plan, local jurisdiction approval, and standard operating procedures outlining business hours, patient education, and processing details.

In Addition, We Have Standard Operating Procedures for Arizona

We have a wide variety of services for a current or future cannabis business.

Cannabis Cost of Goods Sold

Since the cannabis industry is so fresh, many aspiring marijuana business owners have no idea how to estimate projected budgets, never mind yields, and cost of goods sold. Nor are they able to estimate the amount of time it will take for the business to see green (or make a profit). The cost of goods sold is also important because it reduces the businesses taxable income.

We will be upfront, calculating and tracking cost of goods for cannabis is tricky businesses. Math is required to find the total cost, per plant or batch. Some are looking to calculate an average per plant, batch or harvest, per gram or pound produced. Some are looking for average costs per square foot.

With good accounting goals and practices, cannabis businesses can produce reasonable budgets, provide accurate financial statements and its businesses tax liability will decrease. What elements should be considered when calculating costs? Let’s break this question into sections below, because there is no simple answer.

COGS Categories

Whether you currently own (or plan to own) a cannabis cultivation, processing facility, or dispensary, you will be subject to 4 general business costs that will be directly associated with the goods you sell.

Materials and Consumables

The materials and consumables used differ by business types.

Cultivation

A cultivation will need to track the cost of soil and grow mediums. A cultivation will also need to track how much is spent on nutrients and Internal Pest Management (IPM) products . Additionally, a cultivation will consider the costs of any fans, lights, air stones, pumps, tubing, sheers, and light bulbs used in the process be considered a cost of goods sold. These items can be amortized, which is covered below.

Materials that can be amortized can be used overtime through multiple harvests. For these items, the total yearly cost is calculated based on the amount of time the item may be used for. The total price is divided by the lifetime the item is used for to give a yearly average cost. This yearly cost is then divided by the amount of harvests during the given year. This number will indicate how much each harvest cost. To go further, the harvest cost can be divided by the total number of plants or pounds, indicated a cost per plant or per pound.

Processing

Processing facilities will want to consider the cost of the consumable used for the extraction technique chosen. Such techniques may include butane, ethanol, or CO2. In addition, packaging and tools used in the process are considered cannabis cost of goods sold.

Dispensary

To conclude, marijuana dispensaries may have a slightly different array of materials and consumables that factor into the COGS. Things such as printer ink, labels, patient bags, general office supplies, and hardware are also considered costs of goods sold.

Water

Water is necessary for any business type. Cultivation and processing tend to consume more water than a dispensary. This is because water is used in the process of growing and making marijuana products. However, only a portion of the water bill is considered a cost of goods sold. To get an accurate cost per plant, square foot, harvest, or light, the following equation can be used:

Total Water Bill divided by the square foot of the facility. Then the square footage of the facility is multiplied by the square footage used in cultivation/production. These numbers are multiplied by each other to give the estimated cost of goods sold. Lets use round numbers as an example;

If a water bill is $100 for the month, and the facility is 1,000 square feet, of which 80% is dedicated to production, how much would be considered costs of goods sold? 100/1000(1000*.8)= $80. This equation can be used for a a yearly basis as well. By dividing the yearly amount by the amount of harvests to give an example of how much each harvest costs.

Electricity

Electricity is also necessary for all businesses, regardless of the industry. The same equation used for water can be used to calculate the amount of costs to allocate to the COGS account. A cultivation will likely have a higher electricity cost of goods sold than other business types given the amount of electricity used to keep lights and HVAC units constantly running. If you are looking for a way to reduce costs in a cultivation, check out our blog post: 5 Ways to Reduce Operating Costs for Cannabis Cultivations.

Labor

Labor is commonly considered overhead, but any labor directly associated with producing a product is considered a cost of goods sold. Accountants will most often keep labor classified into different categories. Most often this is to track the labor associated with the production of products, as opposed to the cost of overhead the company is spending. Many companies are opting into capital purchases such as large equipment. These investments can reduce labor over time, but require capital to obtain. However, a dispensary may not be able to utilize automation. This makes the dispensary license type the most costly when it comes to labor.

Property Cost

If you’re renting or leasing, some of the amount spent can be allocated to the costs of goods sold. To find the amount of rent that is a cost of goods sold, you can use the same equation explained for water. Because only a portion of the business is used for cultivation, processing, and dispensing, only a portion of rent is considered a COG. If the building and land is owned with a mortgage, the monthly mortgage amount paid (excluding taxes, escrow, and interest) is used as the bill amount.

We have a wide variety of services for a current or future cannabis business.

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