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What Is a COA? The Complete Guide About Cannabis Certificate of Analysis

lab technician analyzing cannabis sample

The cannabis industry is filled with acronyms, measurements and other terms that can be overwhelming for anyone who doesn’t work in the field. Even experienced professionals can have difficulty understanding all of these terms on a regular basis, which is why so many people are asking “What is a COA?” Keep reading to learn more about COAs, how they work, and why you need one in the cannabis industry.

What is a COA in the cannabis industry?

A Certificate of Analysis (COA) is a document that gives an analysis of chemical properties of something and certifies that it was properly tested prior to being sold for public consumption. Also known as an Analytical Report or Chemical Certificate, it is an official document that confirms the properties and value of something, such as cannabis. 

These reports provide valuable information about the quality of cannabis products to consumers and businesses by providing third-party verification. In the cannabis industry, COAs confirm the purity of products along with their compliance with relevant laws. A COA tells you whether or not the product meets pre-determined safety standards in regards to potency, residual solvents, microbial limits and more. 

COAs offer additional information about the product, such as the name of the lab, the name of the analyst, and an expiration date. You’d be hard-pressed to find a more important document for your cannabis business than its Certificate of Analysis. A strong COA can help you make a great first impression on new distributors or retailers interested in carrying your product. 

COAs also build confidence with consumers. After all, what kind of confidence will they have in buying from you if you can’t show them that your company only sells products that are safe for human consumption? 

Why are COAs important for the cannabis industry?

COAs provide reliable and consistent data on the potency and purity of cannabis products. They also give consumers confidence that they are getting the value they expect. When cannabis products are tested and verified using a third-party lab, they are assigned a unique identifier, which is included in the COA. 

This gives consumers that purchase products that have been verified by a third-party lab access to key information about the product, including the batch number, the name of the lab that tested it, the date the product was tested and the amount of THC and CBD in the product.

How to read a COA?

A COA is divided into three sections: The sample, the report and the certificate. The sample section of a COA lists the details of the sample, such as the weight, the strain,  and the date that the sample was received. 

The report section of the COA lists the details of the lab’s analysis of the sample, including the cannabinoid profile, the level of microbial and solvent residue, the terpene profile, the moisture content, and any other analysis that the lab pre-determined. The certificate section of the report is the unique identifier that is assigned to the sample and the report. This number can be used to verify the legitimacy of the sample.

Types of COAs

What’s important to note is that COAs will usually have three different listed CBD (Cannabidiol) variants: CBD, CBDA, and CBDV. Regular CBD will be the most common cannabinoid searched for. CBD is one of the most popular varieties of cannabinoid because of its use in various consumer-grade products, from edibles to sunscreens. 

In fact, the CBD percentage is important to note in order to know the cost of industrial hemp when up for sale. CBDA, or Cannabidiolic Acid, is a form of CBD that comes directly from hemp. This means CBDA is CBD in a more natural state. Once properly heated and treated through decarboxylation, it is converted into full-fledged CBD. 

It is important to keep track of its presence not only in raw hemp products but in industrial and consumer products as well. As decarboxylation can occur even if the plant is kept out in the sun for too long, it is important to include its analysis on COAs.

CBDV, or Cannabidivarin, is a regional variant of CBD that is more important for its medical properties. CBDV is analyzed based on the various effects it has on seizure and nervous system disorder treatment. In some cases, it has less importance listed within a COA than the other two primary cannabidiol sources. The others are sometimes considered more useful because of their industrial and medical product usage.  CBDV is mostly notable for its production and research outside of the United States. 

Consumer Benefits of Reading a COA

 Reading the COA is beneficial to the consumer simply because of the amount of information present Consumers can make better informed decisions regarding the products they choose to buy. Some of the areas a consumer may want to focus on include:

  • LOD (Limit of Detection) and LOQ (Limit of Quantitation) are used to determine whether or not a specific compound is at all present in the product. 
  • Action Level refers to the amount of said product that has met a standard considered safe for consumption.
  • Status indicates whether or not that product has passed or failed in terms of meeting said standard. 

Not only does reading a COA give the consumer access to these important details, it grants them the ability to determine consistent providers as well as knowing specific names to avoid. COAs also provide consumers with information regarding the presence of heavy metals or pesticides. Of specific note, any hemp that falls below a 0.3 THC level is considered safe under the law for cultivation and transport. The direct percentage is also good to know for those watching their intake of specific cannabis products.

The Bottom Line

Ultimately, COAs are an effective way of building and maintaining public trust within the cannabis industry. COAs are used as a measuring stick for the various companies and farms within the industry. More importantly, COAs offer transparency and a meaningful way for a consumer to interact with the various ins-and-outs of the cannabis industry. 

In many cases COAs are also used to push for higher standards and regulation across the industry. At the end of the day, COAs are used to ensure transparency between manufacturer and consumer within the cannabis industry.  Having a POS system that can retain data such as COAs is one of the first steps a retailer can take to bring compliance to their retail shop. C-Trax is a dispensary software and POS that offers support of COA record maintenance. Get started today with building trust with your consumers as a cannabis retailer.

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5 Challenges A Great Dispensary POS Software Will Solve

With 22 states legalizing the use of medical marijuana and eight legalizing recreational use, the industry is set to take off. Although using cannabis is already more socially acceptable, there are several things that dispensary owners use to streamline their operations. One big tool dispensaries use to streamline their operations is cannabis dispensary point-of-sale (POS) software. There are unique challenges that come with this software, and we’ll outline them below. 

Tracking Patient Types 

Many dispensaries apply for both an adult-use and medical business license. If you have both, the law requires you to keep track of each patient type, and your dispensary pos software has to have the correct categories. Ideally, the software should have adult-use, medical with recommendation, and medical with a state card. Each category has different tax rates, and it can be challenging to get software set these patient types. 

Identification Verification System 

Before any states legalized recreational cannabis, every customer that came through a dispensary had to provide a valid ID with a medical recommendation. Today, your software has to be able to identify different types of ID and medical documentation, and it should be able to automate this process to allow you to scan the back of a person’s drivers license before autofiling it. Having software that can be extremely quick and accurate is challenging. 

Integrating a Metric System 

In other parts of the world, the metric system is the dominant system in place for counting items. The United States uses the older Imperial measuring system, but dispensaries measure out their products using the metric system. It’s more convenient to count out grams, and you can get precision accuracy. Finding an MMJ software system that can switch back and forth between the metric and imperial system and learning how to use it can be problematic. 

Managing Your Inventory 

There are always new strains coming out, and people expect you to stock them if they get popular. This can result in a lot of strain on your system if you’re constantly adding new or more products in and removing old ones. You should choose MMJ software that has a clean user interface that allows you to switch out products in a relatively quick and easy manner. It should also allow you to store inventory in the event that it comes back into popularity again. 

Violating Rules and Regulations 

The cannabis industry is extremely regulated, and not having MMJ software that can withstand constant updates, changes, improvements, and patches can be disastrous. Should your system go down or fail, it can cause you to violate state regulations and rules. If this happens, it can cause you to lose your dispensary license. The challenge is finding software robust and precise enough to handle the unique operations that come with a dispensary. It’s possible, but it takes time. 

Contact C-Trax for Quality Cannabis Software Today! 

If you want a reliable, flexible, and robust cannabis software solution, get in touch. We’re happy to tailor our software to suit your wants and needs today!

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4 Challenges Facing CBD Entrepreneurs

With the 2018 legalization of hemp by Congress, CBD oil has emerged as one of the hottest new products on the market. The medical community has proven some of its health benefit claims while it continues to research others. Consumers have found relief for a variety of ailments and conditions. Companies offering the product face more challenges than most businesses. Although the introduction of specific cannabis industry software has helped to lighten some burdens, others can slow down the growth or even the establishment of your business.

Create a Sound Business Plan

The first step for any business lies in creating an effective and reasonable business plan. This establishes a step by step outline of how to handle the business establishment, marketing, supply sourcing, paperwork, and other obligations. Those inexperienced in business can find help. Cannabis and hemp advocacy groups can recommend advisors specializing in the field. Many city or county governments, as well as state departments of commerce and agriculture promotion agencies, have development offices that can help steer new businesses through many challenges by helping them to compose a plan.  

Uncertain State and Federal Regulatory Environment

Although federal law legalized the production and sale of hemp-derived products, the future of the industry still remains uncertain. The laws that legalized CBD and other products placed the responsibility for regulation on the Food and Drug Administration. Officials, there have not yet produced a final slate of rules. State law differences also create issues for those seeking to establish interstate operations. Furthermore, the fluid regulatory environment means that what the law allows today could be illegal next year. This will have a dampening effect on business development in some areas.  

Uneven State Level Protections For Those Providing Capital

Access to capital serves as one of the most significant challenges to the growth of a CBD business. Some states have moved forward aggressively to establish a sound legal environment. Others have ignored the issue completely. Most stumble along, having to overcome obstacles of perception and inertia. For example, although the West Virginia State Legislature passed bills in successive sessions to protect hemp-based and medical cannabis industries, as well as capital suppliers, the State Treasurer’s office, slow-walked implementation of the laws for well over a year. This took place even as the State Agriculture Commissioner promoted the potential of hemp and CBD oil regularly. West Virginia’s frustrations reflect the slow pace of reform in many state and local jurisdictions. This also frustrates business owners and farmers looking to establish sound businesses to provide for the industry.  

Fast Growing Competitive Environment

Despite the challenges, many businesses have raced into the field. Some say that this could create an “overheated” marketplace with too many contenders. Like any other business in a similarly highly competitive field, successful businesses adopt a few key practices to thrive. The key lies in establishing a competitive advantage over others. Businesses achieve this through location, innovation, diversification, marketing, and pricing. Running your business properly from the start is also vital. Investing in the right equipment is an important part of creating a solid foundation. Using advanced technology, such as cannabis industry software, saves time, money, and adds to your advantage. Maintaining a disciplined operation requires good fiscal management and continual reinvestment of some profits into improving the operation. In some way, a successful business must elevate itself above competitors to ensure a strong share of the market. While the market may grow quickly enough in the short term to accommodate all, eventually your business will need to compete with others successfully. Work with business coaches, consultants, and other business owners willing to offer good advice.

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Five Things Your New CBD Business Needs To Consider

The growing popularity of cannabidiol (CBD) for medical and other applications has attracted the interests of many entrepreneurs across the globe. While CBD is increasingly becoming a profitable business venture across the United States, there are certain essential things you need to consider when investing in the business to guarantee success. For instance, we have developed an easy-to-use dispensary software, C-Trax to help you automate your POS and Customer Management processes, among other benefits. Here are the top five things your CBD business needs to consider.

Find the Right CBD Source

It’s a legal requirement to prove that the CDB you sell in your licensed marijuana dispensary comes from a licensed CBD supplier. While some states may be a little lenient when it comes to this requirement, other states, such as Washington, are very strict. You also need to be cautious when sourcing for CBD additives from the various distributors and manufacturers.  

Compliance

Make sure your business is a licensed CBD dispensary with all the necessary certifications. Comply with all the rules and regulations that govern the distribution of CBD in your State. If you’re not compliant, you may end losing your license and facing charges for some serious drug crimes, incurring substantial losses in the process.

If you sell your CBD across state lines, you must ensure that your CBD is derived from a cannabis plant that is exempted from the definition of marijuana according to the Controlled Substances Act (CSA). In addition, make sure your CBD comes from industrial hemp, especially if you want to sell it in stores that are not licensed CBD dispensaries. In some states, you also need to ascertain that the cultivator of your industrial hemp is a licensed farmer in accordance with Section 7606 of the 2014 Farm Bill.  

Automation

As a CBD dispensary owner, you need to invest in a credible MMJ dispensary software to help you automate your operations. C-Trax is a robust digital solution designed to help you manage the day-to-day operation of your CBD retail business.

With our MMJ dispensary solution, you get a top-notch customer management system, inventory management, POS, and data analytics features. In other words, we do the heavy lifting on your behalf, helping you free up enough time to focus on the core aspects of running your business. Our clients gain access to valuable customer data that helps them make informed decisions and launch customized marketing campaigns.  

The Legal Landscape

It’s important to update yourself with the latest legal developments in regards to the selling and distribution of CBD. Even after Congress approval and acknowledgment of hemp in various applications, it’s still crucial that you know what the DEA thinks about CBD in your state. Whether it’s through an internal communication medium or a post on their official website, the DEA has a history of changing their policies.  

Lab Test Results

Any product that has the potential of posing a risk to the general public should be tested before being sold. While some states may require you to have lab test results, the company that produces the product ultimately carries the most burden in case things go south. We always recommend that you try and validate any test results or claims made by the supplier; remember, any false claims or misrepresentation may include you in the liability as a distributor.

According to the Marijuana Business Factbook, the economic impact of the marijuana industry in the United States is estimated to reach around $77 billion by 2022. Statistics from the Bureau of Economic Analysis indicate that this is equivalent to the GDPs of states such as West Virginia and Idaho, which both registered a GDP of $77 billion in 2018. In addition, that exceeds the GDPs of several other states, including Delaware. This means that if you invest in C-Trax’s solution to automate operations and be strategic in your approach, a CBD business can be a highly lucrative venture.