M3Hub: The Compliance Standard for the Cannabis Industry
The path to marijuana legalization is through regulations, traceability, compliance and administrative oversight. The right to be a participant in the cannabis industry comes at the cost of compliance. As barriers to entry become more stringent so do the rewards. License holders have the unique opportunity to make a lot of money, provided, they invest in tracking, compliance and quality control processes.
Failure to comply is guaranteed to cease your opportunity to generate revenues and profitability, especially in the cannabis industry. Like the passing of prohibition, the legalization of cannabis will bring government mandated complexities to the industry that will create opportunities for compliant forward looking companies. M3Hub may be early, but it is right on target. M3Hub is the future of the cannabis industry’s compliance standard.
Endexx Corporation Beginnings
In search of growth sector niches to complement its diversified portfolio acquisition strategy, Todd Davis, CEO of Endexx Corporation, has developed and nurtured since 2011 through business associations and networking, a human resource collective composed of industry professionals and consultants with many years of experience in their respective fields and an in depth understanding of the challenges and specific needs of the marijuana industry.
Mr. Davis realized that the most pressing prerequisite for the marijuana industry to develop and mature in the face of the great legal challenges was to focus on standardization, security and compliance.
Taking clues from the pharmaceutical industry, and in partnership with supply chain management developers with a background in “seed to sale” management solutions for agricultural application (wineries), a Cloud based Tracking system was developed that formed the basis for the M3Hub concept. The M3HUB is specifically configured to reflect each market’s needs and adapt to any regulatory environment.
During both the biotech and the dot-com booms, investors speculated on concepts that didn’t come to fruition for 10-20 years. Some of these became huge success like Amgen, Genentech, Amazon and Google. The cannabis industry on the other hand has already reached early stage successes being both tangible and viable today. A key to unlocking the value and benefits of this industry will come from development and innovations from the massive talent pool found in American entrepreneurial spirit and intelligence. When a new industry is born, there is a spawning of new millionaires, even some billionaires. However, along with a perceived right to financially prosper, so come the rules, regulations and government control. Abuse of the rules leads to a very unhappy ending.
From Cartels to Legalization
As the cannabis market inexorably shifts from an illegal market to a fully legalized and legitimate industry, state and local laws and regulations are designed to circumvent federal laws. This leads to disparity, fragmentation in the regulatory landscape and creates local enforcement issues which have hampered the development of a standardized infrastructure. However, within the last few years, States like Colorado and Washington are leading legalization momentum and shifting this now legal multi-billion dollar market into the most compelling new business opportunity in the last 25 years in North America. Recognizing both the challenges and opportunities of this industry, Endexx created the M3Hub platform which brings standardization, security, transparency and compliance to the cannabis industry and provides the tools for industry participants to cost effectively manage their workflow processes.
The Cost of Non-Compliance
In a benchmark study of 46 international organizations by the Ponemon Institute titled “The True Cost of Compliance”, the cost of non-compliance has been found to be 2.65 times greater than the cost of compliance. The major consequences of non-compliance for businesses include business disruption, productivity loss, revenue loss, fines and penalties, legal fees, and more specifically to the marijuana industry, the loss of license and of the right to be in business.
Medical Marijuana: A “Growing Industry” – Market Size
U.S. medical marijuana sales totaled an estimated $1.5 billion in 2013 and are forecasted to grow to $7-$8 billion by 2018. Presently, medical marijuana sells for $1600-$4500 per pound (depending on market and strain). Each plant yields 0.5-0.75 lbs. per growth cycle and each plant produces 3-5 yields per life cycle. Therefore, each plant yields a minimum of $4800 and a best-case scenario of $22,500.
What product in the world does this at such a low cost of goods? In most supply chains, many components are assembled to make a product, constantly escalating the price of a good. At each product level, mark ups are added to the product, including profit margins, taxes, regulations, shipping, packaging and so on. In the medical marijuana arena, one plant is separated into and transformed into many products, creating a quantitatively more complex supply chain.
M3Hub Technology: The Science of Medical Marijuana Management – Standards and Practices
M3Hub brings pharmacy grade compliance and standardized technology solutions to the medical marijuana industry and full accountability through “seed to sale” inventory management and tracking. The M3Hub is designed to adapt, integrate and facilitate all transactions and manage patient concentric data and incorporate HIPAA compliance, the HiTech Act (Health Information Technology for Economic and Clinical Health Act), Patient Privacy, Patient Care and follow through. Through verification, privacy, legal and transparent controls, the M3Hub platform legitimizes the entire transaction process.
Chain of Custody: “Seed To Sale”
Seed > Grow Cycle > Processing > Lab/Testing > Packaging > Transportation > Dispensary > Gateway > Patient
M3hub “Seed to Sale” is customizable to each unique business or client need, and can be adjusted on a state-by-state or government-by-government basis to meet any unique regulatory requirements.
- Sales Chain , Process Tracking , Work Flow , Deep-Tracking - Business Process Analysis, QR & Bar Coding - Automated Document Management
- Integrated CRM - Workflow Automation, Business Groups - Administrative oversight, Geo-Synchronization , Dynamic report generation in multiple formats, Enterprise Systems - Cloud and APIs Synchronization, Portal Controls
- Purchase Orders, Manifests , POS Systems , Pricing - Items, Batches, Wholesale, Retail, Merchant Processing - Payment Gateway, POS Integration
- HIPAA Compliant , Administrative Permissions, WatchDog Firewalls , Zero-client Server Spoofing , Real Time Threat Assessment
Autospense™ is an industrial grade, vault-like, high-tech automated dispensing system that is specifically designed to control transactions and manage inventory.
- Unmatched flexibility and security, Handles wide variety of sizes and types of items, Average dispense time under 10 seconds, Holds 780 unique items or SKUs, ID Verification, Debit or cash transactions, Powerful screen search capability, High inventory density, Purchase or lease (36 months), Displays items pictures, Displays lab testing data for each item, Shopping Cart technology for single checkout and payment, Secure access control, Tracking of item, lot, patient, expiration date, 174 standard reporting functions, Reports emailed automatically to PC or tablet
- Provides a safe, legally compliant and professional access to medical marijuana, Real time management of inventory and distribution, Enhances business efficiency, Enhances security, accountability, supply chain management and profitability
Sustainability and Alliances
The medical marijuana and recreational marijuana industry growth rate is on a dramatic upside curve. Sustainability for the industry requires standardization and reliable compliance methodology. No one company can do everything, rather, an alliance network within the industry collaborating together will assure the longevity and success of this industry which is still in its infancy. The M3Hub platform incorporates multiple service channels including: Consulting, Financial Solutions, Insurance, Security Monitoring, Vending, Distribution Controls, RFID Tracking, Taxation Collection Service, POS Management, Biometric Protocols, Applications, Doctor Referral and Verification, Centralized Lab Testing, Quality Control Management, POS, CRM and Vending/Dispensing Services. The M3Hub also fosters an outer layer service providing Referral Networks, Policy and Legal association, Social Media, News and Scientific literature distribution and collective industry affiliation partners.
The Medical Marijuana Movement
A persistent, national movement has generated unstoppable momentum towards public acceptance and adoption of cannabis as both a viable therapeutic treatment and a responsible adult choice recreational consumer product. Now as a multi-billion dollar industry it is necessary for Endexx Corporation to provide the efficiencies and methods to sustain the quality and growth of this new industry. As with all lucrative industries, government oversight becomes inevitable and the cost of making money rises. Investing in compliance and industry standards will build the foundation for a worldwide growth industry for the next several decades. Endexx Corporation embraces the responsibility and opportunity presented and will continue to provide both guidance and products throughout the cannabis eco system and work toward the establishment of industry and regulatory accepted standards and practices.
The M3Hub technology has been thoroughly tested and given a “Seal of approval” by key policy makers and marijuana enforcement officials through our collaboration partners at Vicente Sederberg LLP. Endexx is working diligently on becoming the standard technology platform that regulators and all marijuana growers, processors and retailers will adopt to reliably meet all their compliance needs regardless of their legislative landscape.
For more information about Endexx Corp., check out their website: http://www.endexx.com/
The company paid consideration to SNN or its affiliates for this article.
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