Desert Cannalytix, Inc.
$13,751
amount committed
$10k - $1070k
funding goal
Regulation CF
exemption used
$4,000,000
pre money valuation
$150.00
min investment
25
investors
Security Type
Desert Cannalytix is building a state-of-the-art testing lab in Las Vegas that will ensure safety within the CBD/Hemp market. The operation of this lab will facilitate high caliber products free from harmful substances and contaminants for its customers that can furthermore be sold with accurate labels and descriptions to its consumers.
We saw the need for accurate and reliable testing in Nevada's emergent cannabis industry and we are responding with a technologically driven facility backed by the most advanced tools, sophisticated software, and the most devoted experts.
HIGHLIGHTS
- Cannabis and CBD testing is a $2 billion market in the U.S. estimated to further grow by over 10.4% CAGR by 2027.
- Focus on Nevada ($500M market) where there is high demand for transparent cannabis and hemp testing testing.
- The only testing laboratory in Las Vegas dedicated strictly to serving the CBD/ Hemp industry.
- CEO/founder Malorie La Fuente has extensive background and experience in pharmacological analytics. In addition, she has comprehensive familiarity with the strict standards and applications to operate an efficient and quality scientific testing laboratory.
- Proprietary Desert Cannalytix tracking application allows for transparency in the testing process in addition to streamlining lab operations and workflows.
- Operate a technologically advanced laboratory that will be powered by the use of robotics and automation.
- Aims to set the benchmark for analytical precision and accuracy for Cannabis and CBD lab testing in Nevada and the U.S
- Because compliance and safety are at the heart of the cannabis industry's success, well operated testing labs are the most necessary and secure segment. Regulations cannot be followed without a reliable source for testing products.
While a relatively new sector in the growing U.S. cannabis industry, the cannabis testing lab segment has been marred with issues that are stunting its potential:
- There is currently no laboratory strictly dedicated to CBD and Hemp testing in Las Vegas.
- The ratio of cultivators and manufacturers to testing labs is disproportionate causing a bottleneck like effect for getting products on the market.
Correcting the vague laboratory testing and quality assurance standards for cannabis in the state and establishing a CBD/Hemp testing facility would require an aggressive strategy that would allow us to set these standards ourselves.
THE DESERT CANNALYTIX APP
Currently in development through the Desert Cannalytix app the users will be able to make payments, view lab reports/certificates pdf, view the status of a sample.
Our tech will streamline the lab-testing process by
using barcode technology to track every step.
- We started developing an innovative results tracking platform that utilizes a barcode technology to track processes. This app is designed to be transparent to enable better and more reliable monitoring. More features are planned to be added during development.
- We have secured partnerships with technology and tools providers for the equipment necessary to run an effective CBD/hemp laboratory. So far we have two of the most trusted analytical equipment providers, Perkin Elmer and PathogenDX on board as vendors.
- We are currently working on a lab prototype and are planning to work with company Merj Architecture, which specializes in the cannabis industry.
- The company is also beefing up the team with the potential hiring of lab consultants to assist in the initial setup and ensure laboratory accreditation.
- During operations, additional lab technicians and a courier will be hired to transport specimens from our customer facilities to our lab.
- The Desert Cannalytix team is currently seeking standard local and government licensure required to start a CBD/Hemp lab.
- Additional accreditation from relevant agencies, including an ILAC certification, will be sought upon operation.
CBD testing involves sending a sample to a
specialist analytical laboratory that has the expertise
and equipment to test CBD products.
- To start, we have strategically set our focus on Nevada, where hundreds of millions worth of cannabis and CBD are sold each year.
- Being the only lab in Las Vegas dedicated strictly to service CBD/Hemp market will allow Desert Cannalytix to focus on a high-growth market segment in the state.
- We recognize our room for growth. Our tools and technology will enable our business model to scale beyond state borders and eventually tap into the billion-dollar industry across the country.
DEMAND
In Nevada, there is a great demand for accurate and reliable cannabis testing due to the cases of “lab-shopping” and fraudulent activities that have marred the local industry in recent years
The lack of standardized laboratory testing gives us a unique opportunity even as a new entrant to lead the way in the sector and set the standard, not only in the state, but in the entire U.S.
CUSTOMERS
The company will transact mostly with qualified, licensed and Desert Cannalytix vetted cannabis establishments such as:
- We are the ONLY lab in Las Vegas strictly dedicated to serving the CBD/Hemp market.
- This gives us a much larger market to penetrate as the number of cannabis testing companies in the state of Nevada primarily deal more with cannabis for local distributors and manufacturers.
- Recent scandals about results tampering, manipulation and lab-hopping, have led to the closures and suspensions of some of these labs.
- Being led by an industry expert with over a decade in pharmaceutical data analysis as well as other lab testing sciences and technologies immediately places the startup in a comfortable position among competitors.
- We have begun new service offerings, partnerships, and geographic expansion to increase their market share and customer base.
- Our proprietary app also sets us apart from competition who depend on third party platforms for results tracking and other digital services. There is an opportunity to overtake these platforms as most of them don’t have a physical lab.
SCALABILITY
- The company plans to open up services to different sample types and expand operations to other states.
- Amongst current advisory board members, we have a couple in key states awaiting recreational legalization of cannabis. Once legalization occurs, Desert Cannalytix will have the connections to expand to locations such as New York City and Memphis, Tennessee.
- Would start expansion by providing compliance testing for booming segments such as organic/eco-friendly products, plant-based products.
- The Desert Cannalytix app will also be licensed to other laboratory customers in the same industry.
Desert Cannalytix is set to earn profit by providing services through its testing laboratory, the proprietary CRM App, and delivering required metrics & analytics.
By offering a full set of services, the company
corners a wider earning opportunity.
FINANCIAL PROJECTIONS
In the first year of operations, Desert Cannalytix is looking into a profit of 5.24% with a conservative projected revenue of $550,000 and net profit of $28,842. By the third year, after securing a significant share of the local market, we are eyeing $3,093,750 in revenue and net profit of $706,303 (22.80%). After gaining enough footing on the fifth year, we expect to generate $20,418,750 in revenue with a net profit of $6,280,808 (30.80%). As we increase revenue year by year, we will allot a significant portion in growing our operations to cater to an expanding clientele and sustain business growth.
Malorie is the founder and CEO of Desert Cannalytix, a testing lab for CBD/ Hemp products.
She graduated in 2009 from St. John's University in Queens, New York from the College of Pharmacy and Allied Health professions, specializing in Clinical Laboratory Science. Her 10-year professional background has been primarily in managing and operating hospital pathology and reference laboratories.
She is licensed by the State of Nevada Department of Health and Human Services as a Supervisor of a Clinical Lab for departments that include molecular diagnostics, clinical chemistry, and microbiology. She has also served as a laboratory inspector for the American Society of Clinical Pathology.
A known expert in the CBD community, Malorie will be a speaker at the White Label Hemp/CBD expo in Las Vegas to share her expertise in hemp/CBD/cannabis testing.
Malorie now leads over 60 lab technicians at one of Nevada’s largest testing labs at the largest testing operation in any Nevadan hospital and within the Las Vegas Community. Her team processes approximately an average 20,000 samples per day.
Desert Cannalytix will achieve profitability even if it just processes 1/100th of that volume.
His direction has supported Las Vegas into evolving as one of Nevada’s leading entrepreneurship hubs.
His prior experience from 2008-2012 as a Financial Professional where he earned his FINRA licenses (Series 7 & 66) combined with his 16 years in finance overall (accounting, taxation, and banking), has given him the wisdom necessary to be the perfect combination of the financial leader Desert Cannalytix needs to innovate & succeed.
His career as a Network Engineer and Administrator spans 15 years within Las Vegas's most successful corporations in the hospitality industry. His IT knowledge will be critical in the scrutiny of business start-up practices and operations.
Getting started with our plan to revolutionize CBD lab testing in Nevada would cost us around 1.4M. Around $ 756,500 will be set aside for acquiring assets such as medical equipment, testing tools and lab infrastructure and cover the cost of the initial operations. $ 262,600 will be allotted for operational reserve while $ 393,900 will be used for growth, digital Marketing & app development.
Updates
Q&A
Unfortunately, this securities offering is closed. For questions, please email info@fundanna.com. Thanks!
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Other Disclosures
Special Note Regarding Forward-Looking Statements
Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.