Blog Entry for 14 April 2017

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  23 December 2016 - The Latest Arizona Stats

The State of Arizona department of health finally put out some data for June, July, and August of 2016 and the numbers continue to show pretty much constant growth. This growth is primarily driven by the fact that the number of patients continues to increase.

Total Pounds Sold takes into account the total amount of flower sold, plus the equivalent amount of flower sold as edible or concentrate. Over the past year, the total number of pounds sold has increased by 44.2%. Flower alone has increased by 44.23%; edibles are up 26.08%; "other" (which includes concentrates) has increased a whopping 113.14%.

The total number of patients has increased by 30.3%.

On average, patients consumed 30.03 grams per month. This consumption rate has increased slightly over the past year.

If every five pounds of flower is tested, then we're currently looking at a total of 1463 tests per month. Testing every five pounds of raw material for constituents, potency, and safety ensures a medical-grade product is getting to patients. As growing and manufacturing processes continue to improve, this frequency of testing will likely decrease.

As of August 2016, about 1.6% of the population of Arizona is a medical cannabis patient. If the total number of patients ends up being 2% of the population, then there will be about 134630 patients who consume about 9022 pounds of flower per month. If the total ends up being 3% of the population, then there will be about 201944 patients consuming about 13534 pounds of flower per month. This translates to 1804 and 2707 tests per month, respectively.

We know that there was a spike in doctor recommendations after the election on 9 November 2016, so we're looking forward to more data being published.

  2 December 2016 - Arizona's Future Looks Ok To Me

This article is supposed to be negative and about "what could have been", but I see some very positive things. Primarily what I see is an 85% increase in sales over the next four years! That means the number of possible tests will also be nearly doubling. The other thing that is very encouraging is that this prediction matches my own prediction pretty closely. LOL - It's always nice when one's own conclusions matches the conclusions of the pros.

Bottom line is that we really do have a robust medical cannabis industry in Arizona and I think that we can convince half of that market to do regular testing. The prediction is, however, that growth will slow and probably peak 5-6 years from now with medical patients being 2-3% of the population. Maybe by then Arizona will have come out of the dark ages and move into adult-use. We'll have expanded our labs into other states by then anyhow.

  1 December 2016 - 'Death Knell' in Oregon?????

Spectral Labs will not be able to offer a magic pill to the very upsetting problems that Oregon (and soon likely other states) is experiencing with testing labs. Plus, the same old prohibitionist thinking is creating some pretty unreasonable testing requirements given the safety history of cannabis in this country.

Read this: testing-supply-issues-could-be-death-knell-for-oregon-mj-market

But what we can offer (eventually) is a teaspoon of sugar to help that medicine go down a LOT easier.

Unfortunately, there is no short-term solution because current cannabis testing labs can only offer the same kinds of services they always have, and Spectral Labs won't be in a position to expand into other states for at least another year (we're still seeking funding for our first lab in Arizona). Sadly, current labs are suppressing the growth of the industry and this will continue. What's needed is a game changer so that everyone wins.

Spectral Labs will change the game by raising the bar. Utilizing our superior technology:

LESS instrumentation
LESS use of chemicals
LESS environmental impact
LESS sample preparation
LESS personnel required
LESS cost per sample
LESS cost for clients
LESS sample material required
LESS time reporting results

MORE tests performed
MORE compounds identified and quantified
MORE safety from contaminants
MORE client and consumer satisfaction
MORE profit
MORE knowledge about the plant

  1 December 2016 - Why Lab Testing Costs So Much

The reason why the prices for testing are increasing isn't necessarily because the labs are raising their prices, but because the Oregon regulations require testing for potency (cannabinoids and terpenes), residual solvents, pesticides, and microbials (bacteria, mold, fungi). Up until now, growers and manufacturers would usually only do potency tests which cost about $100. Now, the required tests will cost them (according to the article) between $300 and $400.

As more states legalize and regulate, they will encounter the same problem. This will suppress the growth of the entire cannabis industry unless something is done about it.

The fundamental problem is that the operating costs of current cannabis testing labs are very high. Teams of chemists go through complex sample preparations and extractions that are then put through multiple devices to perform all the measurements. All of this time and material is very expensive.

Spectral Labs LLC would solve this problem because our operating costs are very low. Sample preparation is simple, and measurements are done automatically with a single superior device. We do not need teams of expensive chemists to perform these menial tasks. Our price, therefore, will be substantially less than our competitors while the quality of our results will be substantially more. Most importantly, the cost to our clients will be at an affordable level.