In the wake of California’s new laws legalizing the recreational use of marijuana, a significant amount of attention has been shifted to “track-and-trace” cannabis systems, as the state figures out how to manage the predicted influx of revenue.
However, government agencies aren’t the only organizations using or looking to use this type of system. Dispensaries across the country have been utilizing similar solutions to get a handle on what’s happening in their businesses on a “second-to-second basis,” according to CEO of one cannabis software company, in a report.
Los Angeles-based KIND Financial is one company benefiting from the changing market. Last year, it was announced that the company was selected by Microsoft to create KIND Government Solutions. Under the partnership, Microsoft will market KIND’s Agrisoft Seed-to-Sale software.
While many see a positive impact on sales, the business isn’t without its risks. LA Weekly reports that MJ Freeway — a company that provides marijuana tracking software to businesses — experienced a “direct attack” on its system earlier this month. As a result, more than 1,000 of the company’s customers in 23 states suffered a major outage.
Gov. Jerry Brown allocated more than $50 million for marijuana regulation in his 2017-18 budget proposal released last week, a portion of which will be used to create a statewide tracking system. In addition, tax revenue could approach $1 billion annually in the state, according to some estimates. With these regulation changes taking place in the public sector, it seems cannabis software companies have a significant amount of opportunity in their future to expand.
