David Hua

David Hua Author Profile

Meadow's cannabis point of sale

__April 2016__

When we started Meadow in 2014, it was with a vision to make medical cannabis more accessible to patients in California. 

That seed of an idea soon grew into [Meadow Delivery](https://meadow.delivery "Meadow Cannabis Delivery") — what started as a medical cannabis delivery e-commerce site that quickly featured more than 45 California dispensaries and delivery partners spanning across 38% of California zip codes.

In February 2015 the business expanded to include [Meadow MD](https://meadowmd.com/ "Meadow MD"), a platform for medical cannabis doctor’s recommendations. Using Meadow MD, thousands of patients across California connected with independent physicians from the comfort of their homes.

The next branch of growth came with the launch of the Meadow Platform in November 2015, a [cannabis retail](https://getmeadow.com/blog/tags/cannabis-retail "cannabis retail") software suite for dispensaries and delivery services in California.

<figure>
![cannabis analytics and reporting](//images.ctfassets.net/6kwu1u6s8j23/6xLiWoOiHo3ZchQeqvOj4Q/4a0f4d9b010b4b84a4e3595e4a1f91a3/cannabis_analytics_and_reporting.png)
<figcaption> Meadow's analytics for dispensaries and delivery services. </figcaption>
  </figure>

Today we’re incredibly thrilled to announce even more exciting news.

Meadow has closed $2.1 million in seed funding from a group of incredible investors, including David Lee, YC partner Justin Kan, Reddit CEO and co-founder Steve Huffman, Reddit co-founder and YC Partner Alexis Ohanian, Angel Investor and Entrepreneur Hiten Shah, Slow Ventures, Liquid 2 Ventures, SOMA Capital, and Poseidon Asset Management.

We’re so grateful for these investors and their belief in our business, our growth trajectory and our values.

Today we’re also announcing the launch of our Cannabis Point-of-Sale and Inventory Management systems, the newest additions to Meadow Platform.
These systems have been built specifically for cannabis businesses, incorporating feedback and best practices from patients, dispensary partners, legislators and regulators across California.

### Why Does Cannabis Software Matter?
The cannabis industry is rife with complication.

Regulations governing medical cannabis businesses can be difficult to navigate and are often in flux. Therefore, many established companies have not built tools for cannabis businesses or developed services tailored to their needs.

Some have even dropped cannabis business clients once they learned the nature of their business.

This is where Meadow comes in. We understand, appreciate and value the cannabis industry and the far-reaching medical applications of cannabis. We also have our finger on the pulse of industry regulations.

__We’re creating solutions specifically for cannabis companies.__

<figure>
![turnkey cannabis software](//images.ctfassets.net/6kwu1u6s8j23/3e3cryVtcSyHMJmpyL99g9/12c042af714fe87427c545f38751ed51/turnkey_cannabis_software.png)
</figure>

<callout>“We’re replacing outdated software and tools made for other industries with technology built from the ground up for cannabis. We work closely with our partners to understand the pain points and intricacies of their operations and work with regulators to ensure legal compliance and best practices.” — Meadow CEO and Co-founder David Hua </callout>

### What Are We Going To Use the Money For?

We’ll continue to scale [getmeadow.com](https://getmeadow.com "getmeadow.com") and Meadow MD to continue to provide our patients with access to medical marijuana.

We’ve seen and experienced the benefits of medical cannabis firsthand and will continue to service our patients and partners with the highest quality products and services.

“We plan to connect the entire cannabis supply chain, from farm to flame. We have the opportunity to build technology that will become the backbone of this industry — in California and beyond — and we’re thrilled to have an incredible group of forward-thinking investors backing our mission.” — CEO David Hua

<figure>
![Meadow founders Y Combinator cannabis startup](//images.ctfassets.net/6kwu1u6s8j23/2ru5B8bxmT0mOLxu3o5SHF/f948ab74ffb49c89b9db81945e819c55/Meadow_founders_Y_Combinator_cannabis_startup.jpeg)
<figcaption>The Meadow Founders at a 2014 Y Combinator event in Palo Alto. From the left: Harrison Lee, Scott A Garman, Rick Harrison, and David Hua.</figcaption>
</figure>

Here’s what some of our investors have to say:

__Justin Kan — Y-Combinator Partner & Spokesperson, Founder Justin.tv/Twitch__

> With Meadow you have the combination of the right team, with the right product, at exactly the right time. We’re coming to a tipping point. Support for marijuana legalization has hit an all-time high. At YC we see software disrupting old industries all the time. Meadow is disrupting this budding new industry by bringing the dispensaries, customers and patients all to one platform.

__Alexis Ohanian — co-founder, Reddit, Y-Combinator Partner__

> We’re just beginning to unlock the medical, social, and economic benefits of cannabis and the results are already striking. Meadow is building world-class technology for a massive industry that’s only just starting to grow — the stakes have never been higher.

__Hiten Shah — co-founder at Quick Sprout and Crazy Egg, Angel Investor__

> I invested in Meadow because I believe in the team, their mission and the medicinal benefits of cannabis. I believe in David Hua and his team’s ability to create the best software for the cannabis industry that touches both cannabis businesses and the consumers interacting with them. I’m really excited to see this industry move forward with it’s potential to improve the lives of countless people. I believe Meadow will be a big part of the industry’s future with their software skills and, equally important, their compassion for the industry and it’s consumers.

__Emily Paxhia — Founding Partner & Director of Relations, Poseidon Asset Management__

> Our decision to invest in Meadow was based on the quality of the founders who brought true technology solutions to an underserved market. We also strongly believe Meadow’s platform and strategy works well with the regulations and optimizing the B2B experience. We appreciate that the team focuses on the quality of the product and understands how critical the political process is to the growth of a company in the cannabis industry. Their passion for the industry is translated into user-friendly and elegant platforms, which make the experience for patients and customers pleasant and efficient.

__Jeff Ferguson — President and co-founder @ PipelineDB, Angel Investor__

> I invested personally in Meadow because they are doing for the emerging cannabis industry what Uber did for transportation — take control of it by building great software.

### A Rising Tide Lifts All Ships
We would like to take this opportunity to thank all of our investors and our patients. Thank you for your support! We’re so excited to continue to grow with this dynamic industry, and we’re grateful to provide quality medicine to our patients.

__The cannabis movement and social justice are at the core of Meadow’s values and DNA.__ We’d like to thank everyone who has joined us in advocating on behalf of cannabis. We’d also like to thank those who join us at education events — let’s continue to hone our swords together.

<figure>
![David Hua, Steve DeAngelo and more cannabis industry leaders](//images.ctfassets.net/6kwu1u6s8j23/1cb49TURJ1i0b1ToDgddMb/b227229bbebfbcc3555e42268fc2040f/David_Hua_Steve_DeAngelo_and_more.jpeg)
<figcaption>David Hua, CEO and co-founder of Meadow; Steve DeAngelo, Founder and CEO of Harborside Health Center; Gavin Kogan Esq., attorney, political advocate and cannabis entrepreneur; and Emily Paxhia of Poseidon Asset Management at the Silicon Valley AgTech Conference in May 2015.</figcaption>
</figure>

__A special thanks to our teachers, mentors and partners. We stand on the shoulders of giants.__

A heartfelt thank you to: Steve DeAngelo, California Growers Association, Debby Goldsberry, the faculty at Oaksterdam, California Cannabis Industry Association, and The ArcView Group.

And a thank you to all of our partners, who are on the front lines everyday: The Apothecarium, SPARC, Vapor Room, and all of our other dispensary and delivery partners. We wouldn’t be here without you.

<figure>
![Cannabis Delivery Risk Mitigation](//images.ctfassets.net/6kwu1u6s8j23/7CoWPJlucRyIjKO83qdEH3/4a2108b3c5187debe18b8a6d88238abc/Cannabis_Delivery_Risk_Mitigation.jpeg)
  <figcaption>A recent event held at Meadow on Risk Mitigation and Driver Best Practices.</figcaption>
</figure>

### Stand with us on the right side of history.

To learn more about Meadow, check us out on [Instagram](https://instagram.com/meadow.sf "Meadow Instagram"), [LinkedIn](https://www.linkedin.com/company/getmeadow/ "LinkedIn") & [YouTube](https://www.youtube.com/c/Getmeadow/videos "Meadow YouTube").


Read more to learn about where we started

Meadow Raises $2.1 Million in Seed Funding To Grow Cannabis Retail Platform

Panel recap graphic for "Closing the Data-Execution Gap: 6 Plays Dispensaries Can Run This Week," featuring headshots of David Hua of Meadow, Jeremy Goodison of BDSA, Eric Halpern of The Halp Center, and Beryl Jackowitz of The Botanist, with the MJ Unpacked logo.

Closing the Data-Execution Gap: 6 Plays Dispensary Operators Can Run This Week

**The data-execution gap is the space between the reports a dispensary pulls and the decisions those reports actually change.** Most operators have plenty of data. Very few let it change what they buy, what they shelf, or what they cut.

At MJ Unpacked Atlantic City, I moderated a 40-minute panel called [*Closing the Data-Execution Gap*](https://mju26ac.mapyourshow.com/8_0/sessions/session-details.cfm?scheduleid=38). The session framing said it best:

>__ Cannabis operators are flooded with dashboards, reports, and third-party insights, yet real operational change often stalls.__

![MJUnpacked Panel: Closing the Data-Execution Gap](//images.ctfassets.net/6kwu1u6s8j23/1FNqxHIowoteZ9s6fZb976/40e1f171140418d89f424c1d7805a820/15365.jpg)

The room was full of New Jersey operators running one to three stores, the segment where data is most abundant and least applied. I opened with a show of hands.

"How many of you pull a sales report at least once a week?" Most hands went up.

"Keep your hand up if that report actually changed a purchasing decision in the last 30 days." Most hands dropped.

That is the gap. The data exists. The reports get pulled. They just are not changing what happens on Monday.

For the next 40 minutes, we walked a single product from the loading dock to the reorder and showed where the gap costs real money. Below are six plays you can run this week, in the words of the panelists who run them every day.

💡 **Why this matters:** Every play below maps to a workflow inside your dispensary POS, e-commerce, and inventory system. The cleaner the data, the faster the decision. 

---

## In This Post

- [Meet the panel](#meet-the-panel)
- [See the panel slides](#see-the-panel-slides)
- [Play 1: Share the dashboard with your vendors](#play-1-share-the-dashboard-with-your-vendors)
- [Play 2: Stop trusting your "average" cost](#play-2-stop-trusting-your-average-cost)
- [Play 3: Buy to your payment terms, not your shelf](#play-3-buy-to-your-payment-terms-not-your-shelf)
- [Play 4: Educate your budtenders out of the discount trap](#play-4-educate-your-budtenders-out-of-the-discount-trap)
- [Play 5: Run a monthly "SKUs to Kill" report](#play-5-run-a-monthly-skus-to-kill-report)
- [Play 6: Use New Jersey's crystal ball](#play-6-use-new-jerseys-crystal-ball)
- [Bonus: 4 more gaps we didn't have time for](#bonus-4-more-gaps-we-didnt-have-time-for)
- [Closing thoughts](#closing-thoughts)

---

## Meet the Panel

- **Jeremy Goodison** | Account Director, BDSA. The market lens.
- **Eric Halpern** | Consultant, The Halp Center. Former retail planning lead at Fine Fettle. Eleven stores, three states, six and a half years of operator experience.
- **Beryl Jackowitz** | National Buyer and Merchant, The Botanist. Decides what goes on the shelf at a multi-state retailer.
- **David Hua** | CEO, Meadow. Moderator. Meadow is the POS, e-commerce, and inventory platform for cannabis retail.

---

## See The Panel Slides

<iframe src="https://docs.google.com/presentation/d/1bI1izd58kiKfzaL8WwyGKJRX97XdBE0jRcEjaKJ5pBM/embed?start=false&loop=false&delayms=3000" frameborder="0" width="100%" height="480" allowfullscreen></iframe>

*[Open in a new tab →](https://docs.google.com/presentation/d/1bI1izd58kiKfzaL8WwyGKJRX97XdBE0jRcEjaKJ5pBM/edit)*

---

## Play 1: Share the Dashboard With Your Vendors

**The value:** End the adversarial vendor cycle. Get brands investing more in your shelf while you hit your margin targets.

Most buyer-brand relationships are adversarial because each side is looking at different data. Beryl Jackowitz of The Botanist flips that by sharing her brand health dashboard with every vendor she works with. "I share the brand health dashboard with every vendor. I love a monthly call. It's on the calendar. We plan out the promos. We just get it done." That cadence does something the typical quarterly check-in can't: it turns the vendor into a co-owner of the numbers. Once a brand sees the same sell-through and margin data Beryl sees, the conversation stops being about pitching and starts being about problem-solving.

> __Numbers tell lots of stories, but numbers don't buy. Very clear from the beginning of the conversations: what I am looking for here are my margin targets. I cannot sit on excess inventory. If I make my brands partners, then we'll all be successful.
> __
> 
> — Beryl Jackowitz, The Botanist

### What to do this week

Pick your top three vendors. Put a recurring 30-minute monthly call on the calendar. Share your store-level sell-through, average margin, and inventory days-on-hand by SKU. State your margin target. Let them help you hit it.

👉 **Read more:** [3 Strategies to Secure the Best Vendor Deals for Your Dispensary](https://getmeadow.com/blog/3-strategies-to-secure-the-best-vendor-deals-for-your-dispensary)

---

## Play 2: Stop Trusting Your "Average" Cost

__The value:__ Your margin reports are running on bad numbers. Fix one dashboard view and stop overpaying.

The cost you booked on a SKU is rarely the cost you paid over its lifetime. Free cases, end-of-month promo pricing, multiple deliveries at different rates all average together, and most POS systems hide it from you.

Beryl Jackowitz called a weighted average cost view "pretty game changing." Her example: Blue Dream doesn't need to come in at $20. $35 is fine. $42 is not. Without a dashboard showing the true cost across the life of the SKU, you can't tell which one you're paying.

Jeremy Goodison of BDSA flagged the part most operators miss: the data quality issue isn't only in your POS. It's in your menu.
> 
> __We use POS panel as well as web scraping, taking online menus. Is it on discount? Is it in stock? It's a powerful tool, but it is definitely going to be a little bit dirty.__
> 
> __— Jeremy Goodison, BDSA

POS data has been getting cleaned up for ten years. Menu data is where the inconsistencies now live, and it's the part your customers actually see. Your data needs to agree in at least three places: Metrc tags, your POS catalog, and your e-commerce menu. When it doesn't, every report you pull is wrong.

### What to do this week

Audit one product across all your locations. Same name, same cost, same retail price? If not, fix that one product and put a process in place: catalog-level pricing, one naming convention, fewer hands on the data.

💡 **How Meadow handles this:** Meadow runs as a single source of truth across POS, inventory, e-commerce, and Metrc so your menu, your catalog, and your compliance data stay in agreement automatically. [See how integrated POS prevents data drift →](https://getmeadow.com/blog/why-integrated-cannabis-pos-software-compliance)

---

## Play 3: Buy to Your Payment Terms, Not Your Shelf

__The value:__ A product can "sell fine" and still strain your cash flow. Buy in halves and stay cash-positive.
Eric Halpern's first question on any order isn't whether the product will sell. It's whether it will sell before the invoice is due. Split an order in two, move the first half, bring in the second. If you can turn both halves before payment is due on the first, you're running cash-positive on that SKU.

> __Can you move two orders before the first one was even paid for? Phenomenal. Really have cash flowing.__
> 
> __— Eric Halpern, The Halp Center

His second filter is promotion dependence. If a product only moves on sale, it isn't earning its slot, it's renting one. Customers buying only at a discount aren't loyal to the product, they're loyal to the discount.

Eric's baseline benchmark: one unit per day. Less than that without a niche reason (topicals, tinctures, accessories) and it doesn't earn the shelf. Menu visibility matters too: 15 seconds or less is how long a customer scans before bouncing.

Beryl added the seasonality nuance dashboards alone miss. Her three New Jersey stores see lifts her other-state stores don't. Southern New Jersey is a beach town, so she pulls last-year-comparable data to plan for the seasonal uptick.

### What to do this week
Pick one SKU. Compare your last buy order to your sell-through over the same period. If you bought a 60-day supply and it took 90 days to move, halve the next order and reorder twice as often.

👉__ Read more:__ [Smarter Ways to Discount: Building a Profitable Dispensary Discount Strategy](https://getmeadow.com/blog/dispensary-discount-strategy)

---

## Play 4: Educate Your Budtenders Out of the Discount Trap

**The value:** Discounts don't build loyalty. Budtenders do. Move budget from promos to staff education and protect your margin.

> __The majority of products sold in a dispensary are coming from a budtender recommendation. Have the brand take the time and really treat the team as if they're sales reps of their own company. Have the team be genuinely excited to talk about it. That makes a world of a difference.__
> 
> __— Eric Halpern, The Halp Center

Beryl's take on the patient education days (PEDs) and pop-ups most brands default to: "The idea that a pop-up is your answer is just not the case. I don't want to take time away from my budtenders to have someone who's potentially mediocre having conversations."

Her workaround is the *vendor takeover* — a brand spotlight that moves product without touching margin. Dedicated digital screen time, above-the-fold emails, website banners. "Those are things that we don't currently sell," she said. "So that is a free way to also move the product."

### What to do this week

Pick one product you've been propping up with discounts. Pull it off promo for two weeks. Move that budget into a budtender training, takeover screen, or email feature instead. See what sells without the discount crutch.

---

## Play 5: Run a Monthly "SKUs to Kill" Report

__The value:__ Cannabis is over-assorted. Cutting SKUs sharpens your floor, frees vault space, and recovers cash.

Beryl's view is that cannabis is way over-assorted, and a bigger assortment doesn't equal bigger sales. So she and Jeremy built a standing monthly report to act on it.

> __Jeremy and I have set up standing reports that I get once a month, and one of them is called 'SKUs to Kill.' I run it for every single store.__
> 
> __— Beryl Jackowitz, The Botanist

Jeremy's broader point: the operators winning right now let data drive the assortment instead of gut feel. Good automation pushes the insight to you (here are the SKUs missing from your assortment, here are the ones doing nothing) instead of making you log in to find it.
Usability matters more than the data itself. If the report takes 30 minutes, gut wins. If it takes 30 seconds, data wins.

### What to do this week
Sort your inventory by sell-through over the last 60 days. Bottom 10% gets a decision: cut, discount to clear, or change format. Don't just reorder it.

__💡 Meadow makes this 30-second easy.__ Meadow's Inventory Velocity report shows exactly how fast products are moving, down to units per day, so you can reorder with precision, prioritize best-sellers, and drop underperformers.

---

## Play 6: Use New Jersey's Crystal Ball

__The value:__ New Jersey is where mature markets were three years ago. Mature-market data is your roadmap, not a curiosity.

Jeremy closed the panel with a snapshot of the New Jersey market and three signals worth planning around.

#### New Jersey Cannabis Retail | Market Snapshot, April 2026

- __Last 12 months__: $1.17B in retail sales (+5.1% vs. prior year)
- __Last 6 months__: $588M (+3.0%)
- __Last 3 months__: $291M (+4.7%)
- __515 brands | 337 retail locations__
- __Top 5 brands__: Rhythm | Ozone | Fernway | Garden Greens | Select
- __Top 5 product types__: 3.5g Flower | 2g Distillate Disposable | 1g Distillate Cartridge | 100mg THC Gummies | 7g Flower

*Source: BDSA Retail Sales Tracking, April 2026*

#### Three signals to plan around:
1. __Large-format vape__ is taking center stage. The 2-gram disposable is now the number two product type in New Jersey and the second fastest-growing.
2. __Geography matters.__ Border stores ran about 7 to 9% higher than inland New Jersey for the 4/20 lift, a cross-border dynamic worth planning around.
3. __Flower's lead is closing.__ Flower currently has 11% more share than vape. In mature markets like California, Arizona, and Colorado, the gap is much smaller. In some cases vape is already ahead.

New Jersey is early in its cycle. Connecticut, Massachusetts, and California have already been through price compression, promo wars, and assortment rationalization. New Jersey has a crystal ball, and most operators aren't looking at it.

### What to do this week
Pull one Connecticut or Massachusetts market report from BDSA, Headset, or a comparable source. Compare category mix two years ago vs. today. That's your roadmap.

👉 **For New Jersey operators:** [How Meadow supports New Jersey dispensaries →](https://getmeadow.com/new-jersey-dispensary-software)

---

## Bonus: 4 More Gaps We Didn't Have Time For

The panel was 40 minutes. The prep call was four hours. These four came up over and over in prep and in conversations with operators since.

#### 1. The Promo Fiction

Permanent BOGOs and 20%-offs around an inflated frontline price mean the "regular price" is a number nobody pays. Your margin reports read off a fake number, and you can't tell whether a promo drove incremental sales or cannibalized full-price ones.

__The check:__ What percent of your last 30 days of unit sales happened at full menu price? Under 30%? Your menu price isn't real.

#### 2. The Back Stock Gap
A product sells out on the floor while more sits 20 feet away in the vault. The gap isn't between data and buying. It's between the vault and the shelf. Sometimes the team can't reach a corner of the vault because overstocked product is blocking it.

__The check:__ Walk your vault. How many SKUs are over-on-hand in back vs. sold out on the floor right now?

#### 3. The Metrc Tag Pile-Up
Every shipment of the same product gets a new Metrc tag. If your POS treats each tag as a separate product, one fast-moving SKU can show up as 30 slow-moving ones across your reports. Your velocity data is wrong, and the products you think aren't working actually are.

__The check:__ Pull your top 20 SKUs by unit volume. Is the same product showing up as multiple entries instead of one?

__💡 How Meadow handles this:__ Meadow consolidates Metrc package tags under a single parent product in the POS catalog, so your velocity reports reflect real sell-through, not fragmented entries for the same SKU.

#### 4. The E-Commerce Gap
Most dispensaries either don't have an e-commerce menu or have one with inaccurate listings. Your menu is your storefront. If it's wrong or missing, you're losing sales you'll never see.

__The check:__ Pull up your menu on your phone. Pretend you're a customer. Can you find what you'd buy in 15 seconds? Are the prices, sizes, and strain names right?

__👉 Read more:__ [How to Build a Seamless Cannabis E-commerce Experience](https://getmeadow.com/blog/cannabis-ecommerce-shopping-experience)

---

## Closing Thoughts
At the start of the panel, the room dropped their hands when I asked who'd let a report change a purchasing decision. By the end, every panelist was saying the same thing a different way: the data exists. The gap is between having it and using it.

__Pick one play. Run it this week. Pick a different one next week. That's how you close the gap.
__

Big thanks to Jeremy, Eric, and Beryl for showing up with stories and specifics, and to the MJ Unpacked team for putting the right operators in the room.

![Rated the #1 POS by Dispensary Operators](//images.ctfassets.net/6kwu1u6s8j23/3Wl9QZILEIDCkMXAjW9Vox/8eb154d80f7e3f488c3a68e843accb3d/1.png)

### Sell More Cannabis with Less Work
Meadow's all-in-one cannabis retail platform connects POS, inventory, e-commerce, delivery, and Metrc compliance, so your data agrees with itself and your team can act on it in seconds.

[__👉 Schedule Your Demo Today →__](https://getmeadow.com/schedule-demo)

---

## Resources

- **Official session listing:** [Closing the Data-Execution Gap | MJ Unpacked 2026](https://mju26ac.mapyourshow.com/8_0/sessions/session-details.cfm?scheduleid=38)
- **Jeremy Goodison | BDSA:** [bdsa.com](https://bdsa.com)
- **Eric Halpern | The Halp Center:** [thehalpcenter.com](https://thehalpcenter.com)
- **Beryl Jackowitz | The Botanist:** [shopbotanist.com](https://shopbotanist.com)
- **Meadow | POS, e-commerce, and inventory for cannabis retail:** [getmeadow.com](https://getmeadow.com)

See how top operators close the gap between data and decisions.

Illustrated banner with the headline “Schedule III: What Dispensaries Need to Know,” featuring a city skyline and government buildings. The image represents cannabis rescheduling to Schedule III and its impact on dispensary operations and retail cannabis economics.

What Dispensaries Should Know about Schedule III Cannabis 

What Dispensaries Need to Know About Schedule III Cannabis
---

On April 23, 2026, the DOJ made it official: cannabis products regulated under a qualifying state medical marijuana license, plus FDA-approved cannabis drug products, are now Schedule III under the Controlled Substances Act. Legal experts and industry analysts are calling it the most significant federal cannabis action in decades.

But the details matter enormously depending on how your business is licensed. Here's what changed, what didn't, and what to do about it.

#### In This Post

- What the April 23 Schedule III ruling actually means
- How rescheduling happened and why it moved fast
- What's next: the June 29 DEA hearing
- Why 280E hits dispensaries so hard
- Banking is still a bottleneck (reschedule or not)
- Why dispensary economics are tough, regardless
- Practical next steps for operators

## What the April 23 Schedule III Ruling Means for Your Dispensary

The ruling is split. Where you land depends entirely on your license type.

### If you hold a state medical marijuana license

280E likely no longer applies to your medical cannabis operations. That means you may finally be able to deduct ordinary business expenses like rent, payroll, marketing, and your point of sale software, the same way any other legal business does. For medical-licensed operations, this could provide immediate margin and cash-flow relief.

One important caveat: Treasury guidance on expense allocation is still pending. If you hold both a medical and adult-use license, expect complex accounting questions around how you allocate shared costs like rent and payroll between the two operations. Talk to your CPA now, not at year-end.

### If you're adult-use only

Nothing changed for you on April 23. If you're operating rec-only in California, Michigan, New York, or any other adult-use market, 280E still applies to your business in full. The relief you've been waiting for is still in play, but it's not here yet.

## How Rescheduling Happened and Why It Moved Fast

Acting AG Blanche used a treaty-based legal pathway under 21 U.S.C. § 811(d)(1), tied to U.S. obligations under the U.N. Single Convention on Narcotic Drugs. This route let the DOJ bypass the lengthy notice-and-comment rulemaking process that had been grinding along since the Biden administration's proposed rule hit the Federal Register in May 2024. That prior process has been formally withdrawn and replaced with an expedited hearing.

One operational nuance worth knowing: to satisfy Single Convention treaty requirements, the DEA becomes the nominal wholesaler for licensed medical cultivators. Cultivators technically sell their crop to DEA at a nominal price and buy it back with an administrative fee.

## What's Next: The June 29 DEA Hearing

April 23 was a partial step. Whether adult-use cannabis gets rescheduled to Schedule III is still unresolved, and **June 29, 2026** is the date that matters next.

DEA has announced a new administrative hearing beginning June 29 to consider broader rescheduling of all cannabis, not just medical. The prior Biden-era proceedings have been scrapped and replaced with this expedited process, which includes firm deadlines designed to move faster than the years-long stall the industry has been watching.

For adult-use operators: stay informed, mark June 29, but don't restructure your business around an outcome that isn't final yet.

## Why 280E Hits Dispensaries So Hard

For operators new to the conversation, here's why this matters so much.

IRS Code Section 280E prevents Schedule I and II cannabis businesses from deducting most ordinary business expenses on federal taxes. You pay tax on gross profit rather than net, leaving some effective tax rates well north of 50% for legal operators. Unlike a typical retailer, you can't write off rent, payroll, or even office supplies.

When 280E goes away, dispensaries can finally deduct normal expenses like any other business, including marketing, software, and operational costs. The impact on margins is significant. One industry expert called it *"immediate margin and cash-flow relief"* and *"the difference between survival and investment"* for plant-touching companies (source: mjbizdaily.com).

![Headset: What 280E does to the typical cannabis retailers profit](//images.ctfassets.net/6kwu1u6s8j23/5NxrsMaHtsn1llSVocjKBh/0f5f88ee94db9144cf1e9ac89bb78b18/Untitled_design_-_2025-12-17T153302.390.png)
This chart from Headset shows how Section 280E impacts the typical cannabis retailer's net profit across multiple U.S. markets. In several states, the 280E tax burden exceeds net profit entirely. For adult-use operators, this is still the reality post-April 23.

## Banking Remains a Bottleneck (Reschedule or Not)

If you're hoping rescheduling will solve the other massive headache of banking and payments, here's a reality check: it won't, at least not by itself.

Banks and credit unions still face federal risks servicing our industry as long as cannabis is controlled at all. Schedule III is a lower category, but it's still controlled.

For years, the SAFE Banking Act (now the SAFER Banking Act) has dangled the hope of fixing this. As of April 2026, it's still not law. It's been proposed, debated, even passed in some form multiple times, but never fully enacted.

Without a specific safe harbor in federal law, most banks will remain very cautious about cannabis accounts. Many operators are forced to either operate mostly in cash or use workarounds and pay high fees to the few financial institutions willing to take the risk. This isn't just inconvenient. Cash-heavy operations are security risks and add expensive measures for safekeeping daily cash drops.

True banking relief likely requires Congress to act. Rescheduling may encourage more banks to explore cannabis clients, but meaningful change, like access to loans, credit card processing, and normal business banking, depends on legislation that explicitly shields banks. With Schedule III now in motion for medical, pressure should mount in 2026 to finally pass banking reform.

## Why the Economics of Running a Dispensary Are Tough

Even with rescheduling underway, the math of running a cannabis retail business is challenging. A few realities shape the landscape:

- **Heavy tax burden.** State excise taxes, local cannabis business taxes, and additional fees stack on top of federal 280E exposure for adult-use operators.
- **Compliance costs.** Licensing, seed-to-sale tracking, security requirements, lab testing, and packaging rules raise the cost of doing business.
- **Pricing pressure.** In mature markets, prices are falling. Competing on price alone isn't sustainable without major scale or efficiency advantages.
- **Illicit market competition.** Underground sellers skip every cost above, which is why differentiation matters more than discounting.
- **Limited financing.** Traditional lending is largely closed off, so most operators rely on private capital or their own cash to grow.

Roughly 27% of dispensaries are profitable today. The operators holding their ground are the ones running tight, efficient operations and building real customer loyalty.

## Practical Tips and Next Steps

How do you plan when the rules might change but you have to survive right now?

**Talk to your CPA now.** This is the single most important move post-April 23. Understand exactly how your licenses are structured, how you allocate COGS today, and what changes if 280E relief expands. If you hold both medical and adult-use licenses, get ahead of the shared-cost allocation question.

**Get your books clean.** If 280E relief expands to adult-use later this year, the dispensaries that are prepared will move fastest. Meticulous bookkeeping isn't optional anymore. It's the foundation for capitalizing on whatever comes next.

**Optimize for efficiency.** Every percentage point counts. Streamline operations, refine staff schedules, negotiate better terms with suppliers, and adopt technology that automates manual tasks. A POS system that integrates seamlessly with compliance tracking saves hours of admin work, hours better spent on sales and customer experience.

**Differentiate beyond price.** Loyal customers stick with operators who deliver value beyond a few dollars saved. Curated product selection, fast delivery, knowledgeable budtenders, a strong loyalty program. Give customers reasons to choose you that aren't on the price tag.

**Take care of your team.** Turnover is expensive. A motivated, well-informed team keeps customers happy and operations smooth, even when margins are thin.

**Stay informed, but don't operate on rumors.** Watch for Treasury guidance on expense allocation. Mark June 29 for the DEA hearing on broader rescheduling. Keep an eye on banking reform momentum. Plan for relief, but continue to run your business efficiently under current conditions.

## Closing Thoughts

Change is no longer just coming. It's arriving, unevenly, and on a complicated timeline.

If you're a medical operator, this week marked a genuine turning point. If you're adult-use, you're watching from the sideline for now, but the timeline is shorter than it's been in years.

Either way, the move to make right now is the same: talk to your CPA, understand exactly how your licenses are structured, and make sure your books are clean. If 280E relief expands to adult-use operations later this year, the dispensaries that are prepared will move fastest.

We'll keep covering this as it develops. In the meantime, Meadow is here to help you run a tighter, more profitable operation regardless of what Washington does next.

---

What Schedule III means for dispensary taxes, banking, and what comes next.

Schedule III Cannabis: What Dispensaries Need to Know in 2026

Cannabis Compliance

It's no secret that the entire California cannabis supply chain has had issues with Metrc since it's rollout in January of 2020.  

If Metrc instability is creating delays in your dispensary sales and inaccuracies in your transactions, you want to be sure you're able to quickly identify and fix the discrepancies to stay within California's required 5% inventory variance.  

### However, it's crucial to understand what is a limit of Metrc, and what is a limit of your dispensary's point of sale system.

We know that [CDTFA is starting to use Metrc variance as a means of audit across the California supply chain](https://getmeadow.com//blog/insight-into-2021-cdtfa-tax-audits-and-tax-issues-in-the-california-cannabis "CDTFA Tax Audits"), which means having a system that keeps you fully compliant is more important than ever.

[Under Track and Trace](https://cannabis.ca.gov/wp-content/uploads/sites/2/2023/12/dcc_commercial_cannabis_regulations.pdf), "a significant discrepancy in inventory is a five percent difference between the licensee’s physical inventory and the inventory recorded in the track and trace system."

If a significant discrepancy is identified, the licensee is required to notify the DCC within 24 hours. Failure to identify and report any inventory discrepancy over 5% will put you up for greater scrutiny and increase your chance of a painful audit. 

If you are not regularly counting your inventory, the percentage of discrepancy will likely become higher with time. To stay ahead of this, regularly count your inventory and report any discrepancies in a timely manor. If the discrepancy is not reported, you could risk losing your license. So, let’s put the safeguards in place to avoid these scenarios!

While the minimum requirement is counting your inventory once every 30 days, we suggest conducting "Cycle Counts" much more frequently to keep your inventory organized both physically and digitally. Read more about Meadow's __Cycle Counts [for Smarter Dispensary Inventory Management](https://getmeadow.com/blog/cycle-counts-for-smarter-dispensary-inventory-management)__

#### The High Cost of Low-Cost Solutions:

While some new operators choose a POS software system on price alone, you’ll soon discover you get what you pay for. For instance, if your sales data is not being accurately reported to Metrc, or your tax calculations are not accurate, you may end up with an expensive compliance mistake or tax liability which requires hiring specialized consultants or comes with large fees and audits to untangle, which ends up creating a big headache. Read more about [How to Choose a Cannabis Dispensary POS System](https://getmeadow.com/blog/why-california-dispensaries-need-a-california-specific-pos-for-compliant)

## 3 Metrc Red Flags for California Cannabis Retailers to Watch Out For

Here are three Metrc red flags that cannabis retailers can use to identify a compliance problem, as shared with us recently by software consultant Brian Maravandi from [AlfaLINQ](https://www.alfalinq.com/ "AlfaLINQ"). Brian and his team at Alfalinq are part of our trusted network of compliance advisors that we’ve worked with to help dispensaries and teams rectify and correct Metrc inventory discrepancies when teams are switching over to Meadow's compliant solution.

### Red Flag #1: Negative Inventory

##### In Metrc, filter all your packages that have a quantity smaller than 0. You should not oversell packages; if you see more than a couple negative packages, __you have a problem.__

This is a problem that does not exist in Meadow. Many retailers struggle with thier system reporting on the wrong package or tag until it goes below zero, which can be a difficult mess to untangle and fix. Metrc won’t stop packages from going negative, __but your inventory and point of sale system should never allow that__.

### Red Flag #2: Having way more products in Metrc than the inventory you actually have on shelves.

##### Does your Metrc account list 6000 packages? Or 12,000? Does that sound like way more than you actually have in stock? __Then you probably have an issue__.

With sophisticated Track and Trace package reception, purchase orders, and new product creation, Meadow's easy-to-use cannabis inventory management software simplifies complex workflows to reduce the time you spend managing your inventory, saving hours while meeting compliance requirements. 

Advanced, industry-leading Metrc Track and Trace workflows proactively prevent discrepancies in inventory and create compliant purchase orders directly from your licensed Metrc transfers, directly in Meadow's cannabis inventory management software. With daily Metrc monitoring, Meadow ensures packages are uploaded correctly and any false negatives are rectified.

### Red Flag #3: Inconsistent Reporting to Metrc

##### You need to be reporting data to Metrc every single day. Run a sales report in Metrc; if you haven't been sending daily reports, __you are out of compliance.__

Meadow's dispensary software is built in lockstep with shifting state and local regulatory requirements. If you've been using a system with clunky workflows built for another regulatory environment, it's time to upgrade to a 100% compliant system, with no CSV uploads, ever.

<figure>
<iframe width="560" height="315" src="https://www.youtube.com/embed/5rsq4uIIj_g" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
  <figcaption>Los Angeles-based software consultant Brian Maravandi and his team at Alfalinq are part of Meadow's trusted network of compliance advisors that help cannabis retail teams rectify and correct Metrc inventory discrepancies as teams are switching over their software to Meadow.  If you're a California dispensary team and you discover negative inventory in your active Metrc account, we can help get you clean up your Metrc account and put in new SOPs to maintain compliance reporting and optimize your tax reporting.</figcaption>
</figure>
---

## __Think you may have a compliance issue? We're here to help.__

Even when Metrc goes down, Meadow keeps your inventory, sales and tax data accurate. There's a reason why more California dispensaries and delivery operators are upgrading to Meadow.

<callout>[Is your dispensary actually Metrc compliant? We'll let you know.](#upgrade-now)</callout>

### Meadow's unique integration with Metrc means:

##### __Meadow Uptime:__

When Metrc is down, the Meadow API will automatically keep trying to connect, and will pull packages and transfers automatically so you don't have to wait and keep clicking or checking. Check out our [status page](https://www.meadowstatus.com/) where we've maintiained 99.99% uptime for 10 years and counting. 

##### __Never Upload a CSV: __ 

Meadow syncs your sales data automatically at the end of the day with no manual labor required.

##### __Flexible SKU management:__

One SKU can have multiple packages that map to it, without creating Metrc messes.

##### __No Negative Inventory:__
While other systems let you oversell, Meadow's built-in guardrails keeps you compliant with clean inventory.

##### __Active Account Monitoring:__
With daily Metrc monitoring, our team ensures packages are uploaded correctly and any false negatives are rectified.

#### Don't take our word for it. [See what our clients say about us on G2.](https://www.g2.com/products/meadow-meadow/reviews#reviews) 

Read more posts about California [cannabis compliance software](https://getmeadow.com/blog/tags/cannabis-compliance)


Metrc Cannabis Retail Compliance

Read more to discover if your dispensary has a potential Metrc issue to fix

How to Avoid an Audit & Catch Metrc Inventory Discrepancies in California 

A Journey Through the Ganjier Experience CANNABIS EVENTS & CULTURE

Nestled deep in the heart of Humboldt County, surrounded by towering redwoods and the scent of fresh pine, we embarked on a journey that changed the way we see—and truly understand—cannabis. 

Through the Ganjier certification program, we explored the art, science, and soul of cannabis with a small group of passionate learners, guided by some of the industry's most respected experts. 

If you haven’t heard of the [Ganjier](https://www.ganjier.com/) program before, it’s often described as __the cannabis industry’s equivalent to a sommelier certification__—designed to elevate the standard for cannabis service, evaluation, and education. Developed by a council of respected experts, the Ganjier curriculum blends deep sensory analysis with cannabis business acumen and cultural history. 

The goal? To cultivate a new class of certified professionals who can assess cannabis quality with accuracy, guide consumer experiences with confidence, and champion the craft with care.

This immersive day wasn’t just educational—it was transformative. I’d love to take you along for the ride and offer a glimpse into what this unique experience is all about. 

![Humboldt](//downloads.ctfassets.net/6kwu1u6s8j23/5gbsuxzn6DY1k0XzztJyy1/fd642012707781b5fe6376cf7bac2839/241031_-_Ganjier_Campus-17.jpg)

---

### A Sacred Start in a Historic Dojo

We began our journey in a quiet dojo, once a kung fu training sanctuary, where the energy of discipline and respect lingered in the air. It was the perfect place to ground ourselves before diving into the deeply intentional practice of cannabis evaluation.

![Dojo](//images.ctfassets.net/6kwu1u6s8j23/2slnY9p8pMykas7wcBDKHM/574f3666a0f15a5cd621e379ba658c76/241031_-_Ganjier_Campus-01.jpg)

--- 

### Learning the Language of Cannabis

Under the guidance of legacy legends Kevin Jodrey, Swami Chaitanya, and Wendy Kornberg, we learned how to evaluate flower with a trained eye—and nose. We explored trichomes, flower structure, terpene profiles, and the nuanced qualities that separate good cannabis from truly exceptional cannabis. We also learned from Nikka T, a master of hash and concentrates, whose deep expertise in solventless extraction added another dimension to our education.

This process wasn’t just about observation—it was about calibration. Speaking a shared language of quality allowed our group to develop a collective understanding, creating consistency in evaluation that felt both scientific and soulful.

This entire experience was made possible thanks to Max Simon, who co-founded the Ganjier program alongside a council of respected cannabis experts, including educators like Nick Tanem, Swami Chaitanya, Kevin Jodrey, and others. 

Inspired by the structure of wine sommeliers and cigar masters, they envisioned a rigorous, multi-disciplinary program that would raise the standard for cannabis appreciation, service, and expertise. Ganjier isn’t just a title—it’s a calling to serve the plant and community with integrity and intention. 

The depth of thought and collaboration that went into building the curriculum—from sensory evaluation to processing methodology and contemporary consumption—was evident in every moment of our experience.

![Cannabis Evaluation](//downloads.ctfassets.net/6kwu1u6s8j23/QMto2y6mneEVz28HMoE57/63b882e65234bdf1b30d745d86408976/241031_-_Ganjier_Campus-04.jpg)

![Guided by Legacy Cannabis Experts](//images.ctfassets.net/6kwu1u6s8j23/2aKLyLKAjYI3HAoSJnQJD5/b88a6157ca62e0662127d5185f09f1b5/241031_-_Ganjier_Campus-12.jpg)

![A Shared Language for Quality](//images.ctfassets.net/6kwu1u6s8j23/3xgAoDTvCyOFXCPV7h6m45/9fef0fd777a2da593811c14b0ef77c78/241031_-_Ganjier_Campus-08.jpg)

--- 

### Nourishment and Connection

Lunch was a comforting bowl of creamy soup, prepared by Chef Alex Scherma—also a certified Ganjier—using ingredients sourced entirely from the surrounding region. The meal reflected the values of the day: intention, locality, and care.

It wasn’t just food—it was fuel for deeper conversation, shared reflection, and connection with the people walking this path together. Huge thanks to Chef Alex for crafting such a thoughtful, seasonal dish that nourished both body and spirit.

![ A Nourishing Midday Break](//downloads.ctfassets.net/6kwu1u6s8j23/4TOI2EIvJLS5hnSN8V1C7w/32021fea5ba534bf43914d2d973fea3d/241031_-_Ganjier_Campus-06.jpg)

--- 

### Putting Knowledge Into Practice

In the afternoon, we put theory into action. Together, we evaluated flower samples, applying the Ganjier methodology with surprising alignment. Despite different backgrounds and perspectives, our results were strikingly similar—a testament to the clarity and structure of the training.

It was fascinating to see how our individual assessments translated into formal Ganjier scorecards—scoring categories like aroma, appearance, flavor, and experience using a shared rubric. One flower we evaluated—__Black Cherry Runtz from [Fallen Oak Farm](https://www.sclegacyfarms.com/fallen-oak-farm-salmon-creek-legacy-farm-humboldt-county-ca/)__—received an overall score of 88, with strong marks in experience (8.8) and aroma (7.5), highlighting the strain’s standout traits. 

![A Testament to the Ganjier Method](//images.ctfassets.net/6kwu1u6s8j23/2VAtiDpImE0UxfPieNbdH3/7913e48fff6825db9e42d33b939d85d7/241031_-_Ganjier_Campus-05.jpg)

![Black Cherry Runtz Ganjier Scorecard](//images.ctfassets.net/6kwu1u6s8j23/56I5IG16Ukmdw6e7BAKg1n/94263b4457250359bc67933bb6e1ec48/2025_Blog_OG_Image___1200_x_630_px___1_.png)

--- 

### Walking the Rows with Johnny Casali at Huckleberry Hill Farms

The day continued with a scenic trip to [Huckleberry Hill Farms](https://pickhumboldt.com/#about), home to the legendary Whitethorn Rose and a model for regenerative, sun-grown cannabis cultivation. We were welcomed by founder Johnny Casali, a second-generation Humboldt grower whose story is as powerful as the flower he produces.

In 1992, Johnny was arrested for cultivating cannabis on his family’s land—a nonviolent offense that led to a 10-year federal sentence due to mandatory minimum laws. After serving eight years, he returned home to a community that embraced him, and he has since become a vocal advocate for legacy farmers and equitable cannabis policy.

Johnny’s farm is more than a business—it’s a tribute to resilience, community, and the belief that cannabis can be grown in harmony with nature. With practices rooted in sustainability, biodiversity, and deep respect for the plant, Huckleberry Hill stands as a living example of what’s possible when tradition, advocacy, and environmental stewardship come together. Learn more about Huckleberry Hill Farms [here](https://www.youtube.com/watch?v=MKf3qoZh0_E). 

![Arrival at Huckleberry Farms](//images.ctfassets.net/6kwu1u6s8j23/5YhhUCRREsBuch7VxsHwzP/e1bbf06245e6c57654211afe7a077741/241031_-_Ganjier_Campus-19.jpg)

![Life is Good](//images.ctfassets.net/6kwu1u6s8j23/3Gj1PvFsJW16AS5d60s0ty/5d1f0369c8e31aa54bfb9e95da47212b/241031_-_Ganjier_Campus-29.jpg)

![A Warm Welcome from Johnny Casali](//images.ctfassets.net/6kwu1u6s8j23/2yykCV27fit3CGNL3gPW5t/454545cc49b640361e98d8fcd3f046c0/241031_-_Ganjier_Campus-28.jpg)

![Welcome to Huckleberry Hill Farms](//downloads.ctfassets.net/6kwu1u6s8j23/1GBm408BacDeiKYV4foDmm/03a4f23af61818d86a213777896c01e6/241031_-_Ganjier_Campus-19.jpg)

---

### Encountering Whitethorn Rose

While walking through the rows of sun-grown cannabis, one flower in particular stood out—Whitethorn Rose, a signature strain from Huckleberry Hill Farms. Visually striking and incredibly aromatic, this cultivar offered a complex bouquet that unfolded in layers: notes of fruit punch, creamy berry, soft florals, and earthy funk drifted through the air.

A cross between Lemon OG and Paradise Punch, Whitethorn Rose is beloved not just for its beauty but for its deeply expressive aroma profile. In a recent Ganjier review by [Fat Nugs Magazine](https://www.fatnugsmag.com/a-ganjier-review-of-whitethorn-rose-grown-by-huckleberry-hill-farms/#:~:text=Aroma,other%20cultivars%20I%20have%20tried), the strain was praised for being “as beautiful as it is fragrant,” with a scent experience described as unmatched by other cultivars. Tending to this plant and taking the time to evaluate it thoughtfully was a moment of stillness—a powerful reminder of how intentional cultivation can elevate not just a product, but an experience.

![Among the Flowers](//images.ctfassets.net/6kwu1u6s8j23/7vZxlOGMWeixuSrDZMLQLS/616bb6a4a53939e8deb7a9a76ed55a56/241031_-_Ganjier_Campus-24.jpg)

![First Glance: Whitethorn Rose](//images.ctfassets.net/6kwu1u6s8j23/4s5paSqSo7JVTh5Q4iiCr3/3454a3cd46cf71f103329be2fe1f4e63/241031_-_Ganjier_Campus-21.jpg)

![A Fragrance with Depth](//images.ctfassets.net/6kwu1u6s8j23/31ZEsvJbAtGUXG8q4jHCMI/c76a0edfa5a42991cf12a57909ba79c2/241031_-_Ganjier_Campus-22.jpg)

![Signs of Intention at Huckleberry Hill](//images.ctfassets.net/6kwu1u6s8j23/5rdJ1RCQ86qMzx3R79jxFa/a934d1280b6f99b4375cb64ffcbecb4c/241031_-_Ganjier_Campus-20.jpg)

![Whitethorn Rose in Full Bloom](//downloads.ctfassets.net/6kwu1u6s8j23/6qzTxhAx6ThuFcwsvELRwo/4728f75cd9878f63f17feb5b4874b506/241031_-_Ganjier_Campus-21.jpg)

---

### A Moment to Reflect

As the sun began to set, we gathered for a heartfelt closing ceremony—a final moment to reflect on everything we had learned, seen, and felt throughout the day. The Ganjier experience deepened our respect for cannabis not just as a product, but as a plant with profound cultural, sensory, and environmental significance. Like fine wine or craft chocolate, truly exceptional cannabis deserves thoughtful evaluation, shared language, and deep appreciation.

We’re deeply grateful for the craft, the teachers, and the community members who continue to walk this path—those who choose to keep learning, sharing, and uplifting one another through this powerful plant.

![Reflection: More Than a Plant](//images.ctfassets.net/6kwu1u6s8j23/Xuod7bJGCr9a9LUPWRNdA/5c553451800062b7d23337b1fda3aff3/241031_-_Ganjier_Campus-31.jpg)

![Gratitude in Stone](//downloads.ctfassets.net/6kwu1u6s8j23/47w7yHg5jzmMdxwoH1gu8f/b352c8e099be43d8caffc63e7f3bfc93/241031_-_Ganjier_Campus-30.jpg)

---

### Closing Ceremony & Lasting Gratitude

We ended the day with a closing ceremony—a quiet acknowledgment of everything we had learned, experienced, and felt. The Ganjier experience reminded us that cannabis is worthy of reverence. 

![Gratitude for the Ganjier Journey](//images.ctfassets.net/6kwu1u6s8j23/18pLjcqXAuQw81juF6m7EG/334dbe84f8c310331236e1960fe6e990/241031_-_Ganjier_Campus-03.jpg)

![Closing with Gratitude](//images.ctfassets.net/6kwu1u6s8j23/i8kC6vtQAa3xmT88pmdLr/95205e267e41733ff0d11f9b65d7ff33/image__6_.png)

We left Humboldt with  a stronger connection to the people, plants, and practices shaping the future of cannabis. Whether you're a curious enthusiast or an industry professional, the Ganjier program is a powerful reminder of how far intention, education, and community can take you.

__Special thanks to the Ganjier guides who made this experience so impactful—Wendy, Swami, Amanda, Nick, Kevin, and Derek. Your passion, wisdom, and generosity continue to elevate the cannabis community. We’re grateful to learn from you and excited to carry this knowledge forward.__

A Journey through the Ganjier Experience

Explore the Ganjier experience in Humboldt.

A Journey Through the Ganjier Experience: Honoring Craft Cannabis in Humboldt

Conduct cycle counts at minimum every 30 days for the most accurate dispensary inventory management

Cycle counts are the best way to do dispensary inventory management

Do you know how much product loss you experience in a given week, month, year? 

California [cannabis retail](https://getmeadow.com/blog/tags/cannabis-retail "cannabis retail") operators are required to do full inventory counts at a minimum of every 30 days to make sure your physical inventory matches with your POS inventory and Metrc inventory. You're required by law to know your monthly inventory discrepancy percentage and keep it under 5 percent.

<callout><a href="#inventory-management-guidebook">Get the Guidebook Now: Smarter Inventory Management for Dispensaries</a></callout>

While the minimum requirement is counting your inventory once every 30 days, we suggest conducting "Cycle Counts" much more frequently to keep your inventory organized both physically and digitally.

![Cannabis dispensary inventory management requires diligent cycle counts](//images.ctfassets.net/6kwu1u6s8j23/7AjyMk2iFmJolYgOAmV59R/8ec62513fd16a1b102b348f2c681a7a1/Blog_Banner_Image__9_.png)

A Cycle Count is when a retail shop physically counts all of the inventory in their possession to compare what your inventory system THINKS you have with what's actually there. In a perfect world, those numbers always match exactly, but in reality that's rarely the case due to inventory shrinkage. The only way to find discrepancies between your assumed inventory numbers and actual inventory numbers is to do a full count of all physical products.

Cycle Counts is a feature that’s already included with Meadow, and we’ve seen it dramatically **reduce theft and loss, ensure the right product mix on shelves, and smooth the transition to Metrc.**  Here are some of the key features of our Cycle Counts tool:

- **Barcode scanning synced to an iPad or laptop** for super fast and accurate counts.
- **Count while you're open** using our 'Conflicts' tab, which identifies any changes in inventory (i.e. if someone sells a unit while you are counting inventory, you can easily adjust for the sale).
- **Easy delegation** with allowances for multiple employees to do counts simultaneously.
- **Immediate loss/theft detection** that notifies you of any discrepancy with your expected inventory.
- **Metrc optimization** with drop-downs for counting within Metrc packages.
- **Other smart features, including**: notes to record if a product was lost, found, damaged, moved, etc; manager review and approval settings; and summary reports with missing products and conflicts.

Another reason we always recommend using the Cycle Counts tool is because there are huge implications when it comes to avoiding an audit by the DCC (or worse!). [Under Track and Trace](https://cannabis.ca.gov/wp-content/uploads/sites/2/2023/12/dcc_commercial_cannabis_regulations.pdf), "a significant discrepancy in inventory is a five percent difference between the licensee’s physical inventory and the inventory recorded in the track and trace system." 

If a significant discrepancy is identified, the licensee is required to notify the DCC within 24 hours. Failure to identify and report any inventory discrepancy over 5% will put you up for greater scrutiny and increase your chance of a painful audit. If you are not regularly counting your inventory, the percentage of discrepancy will likley become higher with time. To stay ahead of this, regularly count your inventory and report any discrepancies in a timely manor. If the discrepancy is not reported, you could risk losing your license. So, let’s put the safeguards in place to avoid these scenarios!  

__>><a href="#inventory-management-guidebook">Get the free guidebook on the right way to do dispensary cycle counts now</a>__

Learn more about [dispensary inventory management](https://getmeadow.com/blog/tags/dispensary-inventory-management "dispensary inventory management").

Get the free guidebook on the right way to do dispensary cycle counts now

Cycle Counts for Smarter Dispensary Inventory Management 

David Hua, founder of Meadow cannabis POS, weighs in on wWhat it's like to judge the Emerald Cup cannabis vape carts category

What it's like to Judge the Emerald Cup cannabis vape carts

By [David Hua, CEO & Co-Founder of Meadow](https://www.linkedin.com/in/davidhua/ "David Hua, CEO & Co-Founder of Meadow")

In the early spring of 2021, I was given the honor of helping judge [The Emerald Cup](https://theemeraldcup.com), which is Northern California's destination for cannabis, and the largest cannabis competition in the world. This event has become a sought-after annual celebration that honors the finest sungrown cannabis harvests of California. Shoutout to the farmers; The Golden State is truly home to the best cannabis in the world.

The COVID-19 pandemic forced the 2021 cup to become a digital event with safety protocols that were unlike previous years — we were not able to gather in person to smoke and sample all of the products — but I was honored to be a part of the historic gathering (even if it meant we were gathering on Zoom and tasting our own, sanitized supply of products — there would be no communal *puff, puff, pass* this year).

**I received my Emerald Cup judges kit for the 2021 vape cartridges category in early February, which included six CO2 cartridges, 17 distillate cartridges, and 44 live resin cartridges—I had a total of 67 vape cartridges to score.** My team consisted of 7 other vape cart judges, all fellow cannabis entrepreneurs, advocates and operators:

- Eliza Maroney, Co-Founder, Lucky Box Club
- Amit 'Bamboo' Vachher-Gnanathurai, Nursery & Plant Breeding Manager, Posibl Project
- Arian Roman, CEO/Founder, Alysida Health, KushQueen, MyCanna
- Del Potter, Chief Science Officer, Leef Labs/Aya Biosciences
- El Rock, NorCal Territory Executive, Phinest Cannabis
- Etienne Fontan, Vice President and Co-Owner of Berkeley Patients Group
- Nicole Powell, Head of Procurement

We each had our work cut out for us. Each judge was asked to submit our top 3 favorite products for the CO2 and Distillate category, and the top 10 for Live Resin since there were so many. Our combined scores would then be added up and analyzed to find the collective winners for this year's Emerald Cup.

<callout align="left">
### __What's the difference between a cannabis cartridge containing C02, Distillate and Live Resin?__

In short: These are the three most common extraction techniques that cannabis manufacturers use to extract cannabis oil.

__C02: __ 
Extracted from dried and cured plants using cooled CO2; often, food-grade terpenes or terpenes derived from cannabis are added back into the oil to create flavored pens.

__Distillate:__
Similar to CO2 extraction, just with more refinement and processing, using pressure, steam and heat to separate components through distillation. Color is often light yellow to golden honey colored. Sometimes terpenes are added to create a thinner product (easier to vape).

__Live Resin:__
After harvest, cannabis plants are flash frozen and kept in subcritical temperatures throughout the extraction process, preserving their flavorful profiles, cannabinoids and natural terpenes. Includes concentrates, budders, waxes.

</callout> 

Scoring for The Emerald Cup is based on a number of factors: we were to give each product a number based on the experience, oil appearance, onset, vaporization, effect, and "uniqueness" which encompassed things like packaging, hardware and any other standout features.

I had my scoring spreadsheet ready to fill in for each product; it was time to create a strategy for how I was going to make my way through the pile of cannabis packages. I had just a little over a month to judge the category, which meant I needed to be tasting and judging a least 2 carts a day; I knew I wanted to have time at the end of the month to compare notes and re-taste standout products.

![Emerald Cup 2021 vape cartridges judging](//images.ctfassets.net/6kwu1u6s8j23/2zlaqCkyZtCf6qZ3oLQaNw/8ecaf2f730cad9f7d028b7841712c0a1/4.png)

Before starting the judging, I completed a 30-day cannabis detox, something I do every year to clean out my endocannabinoid system. (Fun fact: most of the time people call me "Hua," my last name, but it's a joke around the office that I become "David" when I go that long without weed. I become another person; cannabis helps me be calm and patient and I am less of both of those things when I'm fully sober).

Eager to get cannabis back into my body, I dumped all of the products on a big table in the backyard of Meadow HQ. At first glance, I saw several brands I recognized: Alien Labs, Flow Kana, Jetty, Raw Garden, Heavy Hitters, Legion of Bloom, Chemistry, and Beezle. There were also some new brands in the mix that I was excited to get to know. I compared the physical inventory on hand with my spreadsheet of products; I added dates on the spreadsheet next to the products I would taste each day throughout the coming month, and organized the physical inventory of products into C02, distillate, and live resin piles to make it easy to grab a new pen for each tasting session. I was to start with the C02 pens and taste them all in a row, then move to distillate, and wrap up with live resin, so that I could compare the pens to the others in their category before moving on to the next type of product.

For the next five weeks, I tried to sample each vape cartridge on it's own (most days I tasted one cart each morning and one each afternoon); I wanted to be able to judge how each concentrate affected me, both the onset of the high and how long the experience lasted, which required giving each product its own time and space to linger and the experience to unfold. As I began to taste different products, I began to get a better sense of the subtle differences between each cart—some of the distillates overdid it with syrupy fruit flavors that covered up the actual taste of cannabis; some live resins were so terpy, I sneezed as if I'd just stuck my nose in a field of spring flowers. I liked to see the variance in color—some were golden yellow syrups while others were like thick brown molasses. The [Bloomfield vape carts](https://thebloomfieldco.com/ "Bloomfield vape carts") (both Notorious THC Live Terpene and Sauce Distillate Cartridge and Pineapple Muffin Live Terpene and Sauce Distillate Cartridge) got extra points in my 'uniqueness' category for listing the full cannabinoid content on the packaging; I'd like to see more concentrates brands give consumers this kind of fuller picture of what's actually inside to help them understand more about the subtle nuances of the plant. We should encourage consumers to think about more than just the THC content.

It was challenging to pick the winners; I've never experienced so many different vape pens in my life, and the subtle (and sometimes bold) differences between all of them was impressive. The experience left me with a deeper respect for the farmers, the manufacturers, the hardware makers, the lab testers, and all of the other hands that go into crafting these clean, high quality cannabis products. At the end of the judging window, I added up the numbers in each category, triple checked my math, tasted and retasted products, and confirmed my scores.

The products that I personally gave the highest scores and was most excited about were the Blue River Chocolate Orange Jelly Sauce Cartridge from fresh baked x Blue River, and the Arcata Fire Live resin Runtz cape from ArcataX x Great Expectations Farm x Lightwork Distributors. I was glad to see they each took first place in their respective categories; the other judges clearly had good taste! 

[Blue River Chocolate Orange Jelly Sauce Cartridge](https://www.blueriverterps.com/products/blue-river-jellysauce-cart "Blue River Chocolate Orange Jelly Sauce Cartridge") (2021 Winner of The Emerald Cup [Cartridges, Distillate](https://theemeraldcup.com/2021-award-winners?_sft_contest_categories=cartridges-distillate "Cartridges, Distillate") Category)

- fresh baked x Blue River

- Category: Cartridges, Distillate

- Origin: Los Angeles County

My tasting notes: The orange chocolate flavor combination is solid and smooth; it tastes   rich and luxe, not like some of the other overly pungent fruity flavors. It would make a great dessert smoke. I also liked the "Draw Indicator" feature on the custom battery to help control the size of the hit (great for those morning tasting sessions before conference calls). 

**ARCATA FIRE LIVE RESIN VAPE – RUNTZ** (2021 Winner of The Emerald Cup [Cartridges, Live Resin](https://theemeraldcup.com/2021-award-winners?_sft_contest_categories=cartridges-live-resin "Cartridges, Live Resin") Category)

- [ArcataX](https://arcatax.com/ "ArcataX") x Great Expectations Farm x   Lightwork Distributors

- Category: Cartridges, Live Resin

- Origin: Humboldt County

My tasting notes: In addition to having a great taste, oil appearance,   taste, effect and experience, this product got bonus points from me in the uniqueness category for the following reasons:

- They use a ceramic (not plastic) cartridge made by [AVD](https://avd710.com/ "AVD710.com") which helped with flavor and temperature control. In addition to being a better experience for the consumer, in general I like to see the industry move away from single-use plastic and find ways to create more sustainable products.

- Local [SunGrown Packaging](https://www.sungrownpackaging.com/ "SunGrown Packaging"), made in Oakland. I like to see California cannabis companies supporting other homegrown California businesses.

I actually liked the Arcata House of Extracts carts so much that I reached out to [ArcataX on Instagram](https://www.instagram.com/arcatax/ "Arcata House of Extracts Instagram: @arcatax"); they said [Sonoma Patient's Group](https://www.sonomapatientgroup.com/ "Sonoma Patient's Group website") was the closest dispensary to me that carried their products.  I used their online menu to place an order for several different types of their cartridges, and picked it up several days later. When something is this good, it's worth the 60-minute drive from San Francisco to Santa Rosa, and you want to have extras to share with fellow cannaisseurs.

![Arcata Fire House of Extracts](//images.ctfassets.net/6kwu1u6s8j23/6hPhlvz4Jzx6abnDraHUK3/6f6295b097fc9e733c071814c60c1166/what_it-s_like_to_judge_the_emerald_cup.png)

I loved learning more about the different types of extractions and having this opportunity to taste California's best cannabis oils, and find new things to enjoy and share with my community. 

Below are the top 3 winners in each category; view the full list of the 2021 award winners at [The Emerald Cup website](https://theemeraldcup.com/2021-award-winners "The Emerald Cup website").

![Emerald Cup Top 3 Distillate Cartridges](//images.ctfassets.net/6kwu1u6s8j23/7Byz5z5ooFUuRPYLkylkMr/2c6fd2d181c500d62c4ab58f94a352cb/3.png)

![Emerald Cup Top 3 Co2 Cartridges](//images.ctfassets.net/6kwu1u6s8j23/7uEO2gUbDPwzQkGfzm7oZn/cc1c35f45f16911990eb896f6e9ce6b8/2.png)

![2021 Emerald Cup Top 3 Live Resin Cartridges](//images.ctfassets.net/6kwu1u6s8j23/3i3vN7H6mPI09W6g8u8UHx/f1043191ac36e615264a9bb99358aa22/1.png)

__Below is the full top 10 winners for the Live Resin cartridges:__

1st place: ARCATA FIRE LIVE RESIN VAPE – RUNTZ, ArcataX x Great Expectations Farm x Lightwork Distributors

2nd place: URSA LIQUID DIAMOND SAUCE CARTRIDGE “TAR HILL PINK LEMONADE”
URSA EXTRACTS, Bear Extraction House x Tar Hill Cannabis

3rd place: URSA NOVA BLUEBERRY MUFFIN CARTRIDGE, URSA Extracts

4th place: BANANA CREME – SOLVENTLESS VAPE, Jetty Extracts

5th place: KRYPTOCHRONIC – LIVE RESIN PEN, Alien Labs

6th place: LEMONATTI – LIVE RESIN PEN, Connected Cannabis

7th place: URSA EXTRACTS LEMON SUPER GLUE LIQUID DIAMOND SAUCE, URSA Extracts

8th place: ALIEN MINTS – LIVE RESIN PEN, Alien Labs

9th place: COLLINS AVE – PINK ROZAY 0.5G CARTRIDGE, ArcataX x 1L Garden Supply

10th place: CRESCO X FLORACAL MENTHOLOTTI – LIQUID LIVE RESIN, SLO Cultivation Inc. dba Cresco Labs x Floracal Farms

---

Shout out to the Taylor, Vicki, Tim; The Emerald Cup team worked so hard to organize everything remotely, safely delivering judges kits and making sure this historic event continued, despite the chaos of a global pandemic. It was a bright spot in my COVID quarantine and I'm grateful for the opportunity to participate and get to know more brands and products in our California cannabis community.

__>> Learn more about Meadow's role in other [cannabis events](https://getmeadow.com/community-and-events "cannabis events") in California__

Go inside the experience of judging this historic cannabis cup 

Posts by David Hua