SEATTLE, Nov. 12, 2018 /PRNewswire/ -- The legal marijuana trend is to initially go towards medical and then from medical, states tend to push forward toward the highly regulated adult-use market that is taking the nation by storm. Until now, the spotlight has been on California and how they will handle their transition towards recreational cannabis. Canada's legal adult-use market has allowed cannabis companies opportunities not yet seen, including collecting taxes, trading publicly, banking, etc.
"It should be called highly regulated, rather than recreational. The hardest part of recreational cannabis is tracking and collecting the taxes," says Rufus Casey, founder and CEO of GrowFlow. Most states have a contract with a software traceability program and GrowFlow acts as an integrator to provide that basic function, as well as all-in-one business solutions that relate to invoicing, managing vendors and inventory, a custom label editor, etc. Half of Washington state licensees use GrowFlow to track inventory, report taxes due to the state and generally conduct business.
In Washington state, GrowFlow had a steady word-of-mouth growth model and Casey set his intention on California. California's "Track-and-Trace" program has begun, however, the enforcement and state database is not anticipated to start until January, with only two licenses (both with the same owner's name) activated as a "permanent annual license." In short, California is not measuring or collecting taxes on the largest cannabis market in the world - yet.
GrowFlow has become the preferred choice for tracking for Cultivation and Manufacturing licenses in California and had anticipated focusing solely on California, however, an unlikely thing happened. Oklahoma began its first steps in collecting cannabis tax by issuing 1,344 licenses: categorized as Cultivation (strictly growing), Processing (making products such as edibles and oils) and Dispensary (medical retail stores). With 1,344 licenses already issued, the state was able to collect on application fees immediately. The method by which the state has chosen to track inventory is up to the grower, however, they must submit accurate information monthly to the state and could be audited at the state's discretion.
Oklahoma had not been on GrowFlow's radar. "We were suddenly seeing traffic on our site with inquiries from Oklahoma - trade shows that we attended in California had Oklahoma license holders in attendance looking for solutions," says Casey. GrowFlow has now set up a standalone system, one that is designed with Oklahoma rules and regulations in place and is working to train and educate Oklahoma on how exactly traceability software works.
CONTACT: CARLY BODMER, DIRECTOR OF COMMUNICATIONS, GROWFLOW 206-494-4689 ext. 704, [email protected]
CEO & CTO
Rufus Casey, CEO and Founder (left), Tom Wilson CFO (right)
Traceability Panel Conversation Oakland, CA
Left to right- competing cannabis software platforms: GreenBits, MJ Freeway, GrowFlow and Treez discuss California cannabis software