Santa Ana-based Cannalysis has found a niche testing the recently unregulated industry of cannabis.
A fully-licensed and ISO/IEC 17025 accredited analytical laboratory, it uses scientific methods to analyze cannabis products for cultivators, manufacturers, dispensaries, and individuals looking to know more about their products.
Cannalysis says it’s the biggest lab testing company in the industry.
“We’re looking at eight figure revenues for 2019,” co-founder and Chief Operations Officer Tyler Autera told the Business Journal.
The company doesn’t disclose specific revenues and profitability, but “we are definitely making money,” co-founder and Chief Executive Brian Lannon added.
The company, which opened its doors in 2016, employs more than 65 at its headquarters beneath the flight path of John Wayne Airport.
Cannalysis, which is expanding in an adjacent building, is looking to hire around 30 new lab technicians who have degrees in biology, chemistry, molecular biology, and other related fields.
“We offer strong benefits and competitive pay,” said Autera, who has a bachelor’s of science degree in molecular biology from San Diego State University.
Proprietary Robotics
The company has built its own robotics, which they said has resulted in the most accurate lab in the cannabis testing industry. The company is seeking patent approval.
“Something that we do that I think is really interesting that no other lab is doing is that we are very innovative—we have an entire robotics department,” Chief Marketing Officer Chad Twiggs said.
“We have robots that don’t exist anywhere else in the world.”
The company has four machines, each costing half a million dollars, to test cannabis for heavy metals, mycotoxins, solvents, and pesticides. The machines analyze the molecular components from the individual cannabinoids to particulates that shouldn’t be there—like mold, metals, or solvents.
Nearly 40% of cannabis consumers do not burn “flower” but instead use a vape pen with a cartridge, according to a 2018 “The State of Cannabis” survey published by Eaze.
The delivery system is similar to a Juul that uses pods for nicotine. Cannabis pods do exist in the cannabis industry too, but they are not as popular as cartridges among consumers.
Most of the metal cartridges for vape pens are produced in China, which is known to permit more lead than California law.
“Because of California compliance standards, the cannabis in California is cleaner than the food,” Twiggs claimed.
New State Standards
The company was given a boost earlier this year when California implemented new testing standards for cannabis concentrates after nearly every concentrate vape product on the market tested positive for heavy metals, pesticides, mycotoxins or carcinogenic solvents.
Cannabis companies benefit from testing their product for more than just compliance purposes, the company said. Aside from safety, consumers like to know the THC and CBD content of their marijuana, as well as the terpene profile and whether there are additional cannabinoids present.
The company has eleven vans operating “constantly to transport product throughout the state,” Twiggs said, adding that turnaround time is about three days.
“You can’t send it by plane or train, or ship it by boat,” Twiggs said, citing possible leakage of the cartridges and federal laws banning pot transportation.
