Darrel Bowman is joined by Harry Brelsford, to help you understand and navigate the complex legal and social waters surrounding both the Cannabis and Hemp industry’s.
As seasoned journalists, Darrel and Harry interview legislators, innovators, visionaries, lawmakers, enforcers, subject matter experts and industry professionals, who are creating laws, keeping the peace, building businesses and shaping the future of Cannabis and Hemp in the USA and around the world.
Andrew Hunzicker, founder of Dope CFO, is a 25-year CPA, started serving cannabis clients and quickly realized there was a gap in GAAP when it came to the cannabis sector. The big accounting firms weren’t involved and therein was the opportunity for Dope CFO.
Andrew is the first to admit it’s a bit of insanity and the wild west – he admits the accountants and bookkeepers are competent but not trained in the cannabis sector. The tax equation is multi-faceted with federal, state and even local taxation jurisdiction. All the taxation bodies each have their own set of rules – some accounting, some compliance. Andrew shares a secret along the way – if you want to see cannabis accounting tales from the trenches, just search on the topic and you’ll be amazed.
The two founders of Dauntless catch-up with the 411-on-420 at the recent MJBizCon in Las Vegas. Discover how Dauntless provides end-to-end software functionality in the cannabis industry. More importantly, Dauntless has pioneered a universal Application Program Interface (API) that connect technology management systems to state-level compliance reporting systems using GIANT.
Join us for the launch of the marketing materials to propel you into the cannabis technology sector in 2019. Based on your feedback in prior MSP Tech Talk lectures, we’ve developed ‘da kit to help you go to market building a wildly profitable new business practice. Applies to medically-legal states in addition to recreationally-legal (adds up to a majority of US states). Applies to Canada and other select global locations. And that’s all we’re willing to share here – you’ll just have to attend for the rest.
Are you looking for the next great thing? Take a fresh look at the legal cannabis market (in ten states and growing). The net-net on the new-new is that this is a completely legitimate business that is cash-heavy and technology dependent. It’s akin to the pharmacy business with respect to compliance and other workflows. Meet a real MSP who is capitalizing on the cannabis opportunity already. Plus you’ll be schooled on the nuances of this business including the seed-to-sale supply chain, the differences between states, etc. Leave this webinar with an understanding on how the cannabis opportunity can be part of your MSP portfolio moving forward with ready-to-rock technology solutions.
No conference coverage is complete without talking to attendees! We’re joined by Roy and Kelly Arms from Central Washington who are farmers at heart (known as producers in this industry). The Arm’s farm, BoggyBoon, is a Tier 3 grower producing 8,000lbs of cannabis making it a top 40 farm in the Sate of Washington. This is a real world couple making it happen in the cannabis sector. The key benefit for the Arms’ in attending LemonHaze is the networking and getting caught up with people that they know. If you listen closely, you’ll discover how to break into the tight-knit cannabis industry.
Oregon has taken a leadership role in coordinating unity amongst the states to align missions, cooperate and develop cross-border best practices. Each state is different and Oregon has both learned form others and shared successes and failures to improve the legal cannabis markets. Marks believes interstate collaboration will lead to more opportunities “One of the most exciting developments.” Stated Marks. By coming in behind Colorado and Washington, Oregon benefited from early learnings. The cooperation extends to the industry. Marks gathers 130+ growers/producers/distributors have positively contributed to the administration regulatory framework. Not surprisingly, in the fast moving sector, the rules are very detailed oriented. Marks now meets regularly with other states and as been for the past two years. And surprise – Canada is participating in these government collaboration meetings. Bottom line: Marks has fostered a cooperative relationship, not an adversarial relationship, between industry stakeholders. One nugget: Oregon has the largest aggregation of outdoor growing (for example, Colorado is based on indoor growing).
Marks shares Oregon has made over $200-million in tax revenue since inception of the legal cannabis market. The taxation structure is one of the few sales taxes in the state. Discover how many entities are involved in the open cannabis open system. The open system has resulted in significant competition and driving consumer costs down. Marks shared insights into a recent moratorium on new licenses be issued (hint; Oregon was overwhelmed). Licenses are relatively low cost (average $5,000). Mark’s department has added staff to deal with the backlog for new and “re-licensing” activities. There is a discussion on winners/losers in the marketplace. Industry strains are a legitimate concern but the influx of capital is helping bring order to the market. And finally – how good of business people are the players in the cannabis sector? And is medical product taxed or tax free? Finally Marks’ shares insights into the difficulties of the banking system. Spoiler alert: credit unions are part of the financial intermediary solution set.
State of Oregon testing scheme has been put in place and still under development/evolving. Challenges in putting standards in place with out the medical research. This isn’t standard product testing – it’s risk-based work that is, again, evolving. Compared to produce, such as a tomato, it’s different in that you don’t smoke a tomato. Today the tests are primarily for pesticides and water activity (the opportunity for mold). Topics such as public safety, quality assurance and recalls are covered. Testing occurs in batches (10lbs, 30lbs). Bottom line: Practices and best practices are always changing. Don’t miss the discussion on illegal activities.
Steve Marks, director for the Oregon State Liquor Control Board, describes the open system for cannabis businesses and how it contrasts with Washington State. There isn’t implicitly a limit on the number of licenses issued. There is flexibility on owning all parts of the vertical supply chain and also indifference to in-state and out-of-state ownership. The Oregon Legislature’s decision to expand the scope of Initiative 91 has resulted in an influx of capital into the Oregon cannabis market. One control mechanism is extensive background checks on investors and ownership. There are six license types. Marks discusses how he views the cannabis trackability system from a consumer protection point of view: quality, safety, etc.
This first time multi-show is capitalizing on cannabis community spirit and momentum. What started as meetup-like gathering and parties has become the two-day LemonHaze conference. Emily Pinkney and Cameron Lewis check-in with Darrel and Harry to share show updates, tallies and insights. With over 30-vendors, LemonHaze projected up to 5,000 attendees. The show demographic was primarily budtenders. There is a surprisingly good conversation about the medical advisor, state-approved I502 approved certification. People attend this show to make deals! Throw in evening comedy as the entertainment and its four thumbs up from the 4110n402! Spoiler alert:
Darrel and Harry interview this cannabis technology software services company. Brady Miller and Clark Musser share its two solutions: (1) Origin to Consumption and (2) a universal compliance API. They’ve moved fast forward in just seven months to combine two separate companies and have a beachhead in the cannabis industry. Note how the “Origin to Consumption” solution is full stack and works best in states other than Washington (which has regulatory tiered separation). Interviewed at LemonHaze in October, 2018. Look for GoGiant to be added to the product mix in 2019 (universal API, marketplace, etc.). These gents are going after the 87,000 businesses in the cannabis sector! Listen until the end for insights into the licensing and pricing model.
Logan Alden from Fairwinds, a LemonHaze show sponsor, is also a conference speaker! His topics include insights into how to launch products. He’ll share how Fairwinds innovated product, packaged and messaging. Fairwinds products have a primary medical message. A challenge is to pivot to consumer and also not offer “customer advise” that is not allowed. Interesting spider dance about solution selling but not acting as a medical doctor giving a prescription (not allowed!). Spoiler alert: Fairwinds is happy with the show.
How Cannabis in WA State is regulated, taxed and its growth since inception.
How prices at retail outlets have been affected in the I-502 markets as well as the black and gray markets. How the market has developed and shaken out since the beginning.
What challenges does the State of Washington and Rick Garza face with the legalization of cannabis? The first and most obvious is the “elephant in the room” is that cannabis is not federally legal. Garza describes how it’s a Schedule 1 controlled substance. This introduces risk and difficulty to the industry. Learn how producers, processors and retailers have struggled with banking. And its not just cash management but cannabis startups can’t get a loan from a bank. And much more in this segment.
Discussing cross border considerations as cannabis is legalized in the US, Canada and Mexico. Currently Cannabis is legal from Alaska, Canada, WA, OR, CA and Mexico. Product safety regarding pesticides and health concerns with best practices across state lines. Keeping out the criminal elements and how cannabis licensing is distributed.
Rick Garza’s background leading him into the WSLCB. Traceability, regulations, security around the industry participants and their responsibilities. Transport license opportunity.
Financial considerations for managing the cannabis industry including crypto currency.
WA and CO pioneering the world in legalization and regulatory cannabis concerns which led to helping to guide other states and countries who are entering the cannabis industry. WA State is the only state which is not vertically integrated. How licensee’s are vetted. Strictly regulating the industry to ensure public safety. Addressing drug legalization.