Cannabis News
The #1 Reason Marijuana Companies Fail Is… A. High Taxes B. 280E Rules C. Nonpayment D. No Banking
Michigan isn’t just competing with California in the regulated recreational marijuana market; it’s also matching California in unpaid invoices.
Brett Gelfand, managing partner at Cannabiz Collects in St. Petersburg, Florida, and founder of the Cannabiz Credit Association noted that Michigan’s regulated adult-use market is now one of the worst for unpaid debts.
Turns out one way to make money in competitive cannabis markets is not pay your bills.
“Oregon and Colorado used to be major states for us in terms of collection activity,” Gelfand said. “But many of those companies have been weeded out, and now, we don’t see much volume from Colorado and Oregon anymore. In newer markets like Michigan, however, it’s becoming a growing issue.”
Just how big is the problem? Delinquent payments in the regulated U.S. cannabis industry are projected to exceed $4 billion in 2024, according to Whitney Economics, an Oregon-based cannabis data and research firm.
Gelfand discussed how plant-touching companies can adopt best practices for managing accounts receivable and breaking the cycle of debt in a recent interview, where he answered the following questions.
What is the main factor leading cannabis companies to delay invoice payments?
The primary issue is banking and capital access.
Without access to credit cards or regular capital, as non-cannabis businesses have, cannabis companies often rely on trade credit instead of operating capital. This forces many cannabis businesses, without the formal training that banks have, to function like banks themselves.
When a company offers net-15 or net-30-day payment terms, they’re essentially acting as a bank. But unlike banks, which would assess a credit profile, secure a lien, or demand a personal guarantee to safeguard against non-payment, cannabis companies often lack such recourse. In the cannabis industry, it’s almost a free-for-all.
Cannabis businesses feel pressured to extend credit to make sales, fearing that customers will go elsewhere if they don’t. As a result, they end up giving credit terms, even without the proper safeguards, due to the lack of transparency and guardrails in the industry, leaving them vulnerable to non-payment.
Are certain sectors of the cannabis industry more affected by non-payment issues?
Retailers are particularly notorious for non-payment, which triggers a cycle of financial strain across the industry. When retailers fail to pay, it impacts producers and brands, who, in turn, delay payments to their testing-lab vendors.
On the other hand, some larger ancillary companies, such as grow-supply and lighting companies, are more stringent. They’ve been in business longer and are less likely to extend credit without proper precautions.
What best practices do you recommend for managing accounts receivable, aside from cash on delivery?
Firstly, appoint someone responsible for cash collection and establish a clear policy and procedure for this process.
It’s crucial to have a method for evaluating a company’s creditworthiness before extending credit. Ensure you have an onboarding agreement reviewed by a lawyer that includes default language for non-payment. If you’re offering substantial credit, securing a personal guarantee is the best way to protect yourself.
With many retail chains facing financial difficulties, vendors are often fortunate to recover anything at all, making these practices even more vital.
Why aren’t cannabis operators reporting default accounts to collections?
Many of my clients hesitate to submit outstanding accounts to collections because they’re concerned about their reputation. They don’t want to be perceived as aggressive or difficult within the industry. However, this mindset needs to change.
If a company isn’t honoring their payment agreement, they are the ones at fault, not you. Non-payment can lead to serious consequences, including business closures and personal financial losses.
What do you wish cannabis operators knew?
There’s a significant risk in using Facebook or WhatsApp groups to expose delinquent companies. While the intent may be to protect the community, these groups can inadvertently violate antitrust laws. If a sophisticated debtor on such a list sees posts advising others not to sell to them, it could lead to serious legal trouble.
The industry must recognize that while it’s important to share information, it must be done in a regulated and lawful manner.
The Impact of Financial Strain on the Broader Cannabis Supply Chain
The financial burden resulting from nonpayment impacts not only specific businesses but also the whole cannabis supply chain. Payment delays or defaults by retailers have a knock-on effect on manufacturers, brands, and service providers, resulting in a vicious circle of unstable economic conditions.
Due to their often narrow profit margins, producers and brands mostly depend on prompt payments to meet their running expenditures, which include debt repayment, salaries, and manufacturing costs. These companies are compelled to postpone paying upstream vendors, such as testing laboratories and packaging suppliers when they don’t get payments from retailers on schedule. Due to the cascading effect of this delay, even companies with sound financial processes may find it difficult to fulfill their commitments, which might cause more supply chain disruptions.
Financial volatility is especially harmful to small enterprises, which may lack the reserves to absorb late payments. For them, a few missing payments from a large store might be the difference between survival and failure. This pressure frequently results in a tightening of loan conditions across the board, with suppliers being less willing to issue credit without severe protections.
Consequently, a contraction in financing may hinder the industry’s ability to innovate and thrive. Uncertainty about their financial situation may make companies less inclined to invest in new items or take risks. Additional obstacles to growing a business in the cannabis sector include the general lack of market liquidity, which can make it hard for companies to expand.
Nonpayment problems thus represent more than isolated occurrences; rather, they point to more widespread financial weaknesses in the cannabis industry. To overcome these obstacles, the industry as a whole must adapt structurally to improve the availability of credit and capital as well as improve corporate financial management procedures.
Bottom Line
Nonpayment is a significant challenge that threatens the sustainability of cannabis companies, particularly in newer markets like Michigan. The ripple effect of financial strain extends beyond individual businesses, impacting the entire supply chain and stifling growth and innovation in the industry. To mitigate these risks, cannabis companies must adopt stringent financial management practices and the industry must advocate for systemic changes that improve access to credit and capital. Only by addressing these underlying financial vulnerabilities can the cannabis industry build a more stable and resilient future.
NOT PAYING BILLS IN THE WEED GAME IS COMMON, READ ON…
DISPENSARY OWNER BRAGGING ONLINE ABOUT NOT PAYING HIS BILLS!
“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.
The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.
Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.
Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.
THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.
THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.
The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.
The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.
Detection Windows for Various Cannabis Drug Tests
Urine Tests
Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.
Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:
– Single-use (e.g., one joint): up to 3 days
– Moderate use (around 4 times a week): 5–7 days
– Chronic use (daily): 10–15 days
– Chronic heavy use (multiple times daily): over 30 days
Blood Tests
Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.
Saliva Tests
THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.
Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.
In areas where cannabis is illegal, saliva testing is often used for roadside screenings.
Hair Tests
Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.
Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.
Factors Affecting THC and Metabolite Retention
The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.
Other factors are specific to cannabis use, including:
– Dosage: How much you consume
– Frequency: How often you use cannabis
– Method of consumption: Smoking, dabbing, edibles, or sublingual
– THC potency: Higher potency can extend detection time
Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.
How Quickly Do the Effects of Cannabis Set In?
When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.
The psychoactive component THC produces a “high” with common effects such as:
– Altered senses, including perception of time
– Mood changes
– Difficulty with thinking and problem-solving
– Impaired memory
Other short-term effects can include:
– Anxiety and confusion
– Decreased coordination
– Dry mouth and eyes
– Nausea or lightheadedness
– Trouble focusing
– Increased appetite
– Rapid heart rate
– Restlessness and sleepiness
In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.
Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:
– Cognitive issues like memory loss
– Cardiovascular problems including heart disease and stroke
– Respiratory illnesses such as bronchitis or lung infections
– Mood disorders like depression and anxiety
Cannabis use during pregnancy can negatively impact fetal growth and development.
Duration of Effects
Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.
Bottom Line
The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.
PEE IN A CUP COMING UP, READ ON..
Is kratom addictive? Discover the potential for dependence on Kratom, the risks involved with its use, and how to approach its consumption responsibly.
From 2011 to 2017, over 1,800 calls to poison centers involved kratom in the U.S. This significant number highlights the concern regarding kratom addiction.
However, without Food and Drug Administration (FDA) oversight, and due to various consumption methods like teas and capsules, there are significant health risks. Safe use of kratom is now in question due to these issues.
Research debates how dependence develops, outlining signs like loss of control and withdrawal symptoms. These signs are seen in regular kratom users. Ironically, some people switch from drugs like heroin to kratom, looking for a legal alternative.
Understanding Kratom: Origins and Prevalence
Kratom comes from the Mitragyna speciosa tree in Southeast Asia. It can act like a stimulant or like opioids, based on how much you take. People use it in different ways, for a small energy boost or stronger effects at higher doses.
The legal status of kratom in the U.S. is complicated and changing. It’s a hot topic because some worry about its misuse. It’s still legal in several states. This shows how different places handle drug rules. The National Institute on Drug Abuse is looking into its medical benefits. But, the FDA hasn’t approved it for medical use yet. The DEA calls it a “drug of concern,” which means policies might change.
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From 2011 to 2017, poison control centers in the U.S. got over 1,800 reports about kratom. This shows it’s widely used and might pose health risks.
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Kratom’s main ingredients bind to opioid receptors very strongly, stronger than morphine even. This fact is key to understanding its effects.
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As more people use kratom, more are reporting serious health problems. These include liver and heart issues, and tough withdrawal symptoms, particularly in those already sick.
The statistics show mounting worries about kratom in the U.S. As its use grows, it’s becoming more important to health policies and laws. What happens next will depend on further research and legal decisions.
Is Kratom Addictive: Investigating the Substance’s Nature
The question of kratom’s addictiveness focuses on how it affects brain receptors and its long-term health implications. The ongoing debate highlights concerns about dependence and the risk of addiction. Scientists are closely looking at these issues.
How Kratom Works in the Brain
Kratom’s main alkaloids, mitragynine and 7-hydroxymitragynine, bind to the brain’s opioid receptors, similar to painkillers and narcotics. This connection suggests a potential risk of dependence. These alkaloids are key to kratom’s pain relief but also point to possible addiction concerns, especially with frequent, high-dose usage.
Patterns and Consequences of Long-term Use
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Using kratom often, especially in large doses, can increase the risk of dependence and intense withdrawal symptoms, similar to opioid withdrawal.
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Although some use it for pain or to improve mood, long-term kratom users might see serious health problems, like liver damage and mental health issues.
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Withdrawal symptoms, including irritability, nausea, and sleep problems, show kratom’s impact on one’s physical and mental health.
Assessment of Addiction Risks
Studies indicate a significant risk of addiction to kratom, especially with high doses or frequent use. Dependence develops as the body gets used to kratom, leading to tolerance and a need for more to feel its effects. Withdrawal symptoms emphasize this risk, as highlighted by health experts.
Physiological Effects: Kratom’s Impact on the Body
There is a lot of debate about the safety and use of kratom. This herbal extract comes from the Mitragyna speciosa plant. It has drawn attention for its possible harmful effects on the body. The FDA has issued many warnings about kratom, raising safety concerns.
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Kratom Adverse Effects: Kratom users have reported side effects like nausea, vomiting, and confusion. More serious issues include high blood pressure and liver damage. These problems highlight the risks of using kratom.
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Herbal Extract Safety: Some kratom products contain heavy metals and pathogens. These can cause severe health issues, including death. This shows the importance of safety in herbal products.
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FDA Warnings and Regulations: The FDA has linked kratom to over 35 deaths and warns against using it. They point out the lack of medical uses and the risk of addiction.
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Physiological Impact: Kratom’s effects depend on the dose and the user’s body. Yet, it can lead to dangerous outcomes like liver damage and seizures.
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Safety Concerns from Authorities: Federal agencies like the DEA are worried about kratom’s safety. Although not a controlled substance, monitoring suggests users should be careful.
Kratom might offer temporary relief for some ailments, but it comes with significant risks. The FDA’s warnings should make people think twice. If considering kratom, it’s crucial to talk to a doctor first. Experts stress the need for safety and caution with herbal extracts.
Conclusion
Kratom’s role in health and regulation is complex, with views and research findings widely varied. Some people use kratom for its claimed health benefits, but it’s a hot topic. Experts advise caution and suggest consulting a doctor before using kratom due to the unclear effects.
Clinical studies using scores like SOWS and COWS haven’t confirmed withdrawal symptoms from kratom. This adds to the debate, especially when some users report withdrawal. This makes kratom a controversial subject among different findings and user experiences.
When it comes to treating opioid addiction, kratom can be both helpful and harmful. Some have used it successfully to fight addiction. Yet, some states have banned it. This highlights the need for regulations and consistent product quality. It also raises questions about kratom’s legal status due to mixed actions by authorities.
The situation shows how complex kratom is in the realm of substance use and law. Without clear evidence supporting either its benefits or risks, it poses a challenge. More research is needed to guide regulations and health advice. For now, anyone thinking of using kratom should be careful, seek medical advice, and keep up with laws and health guidelines.
WHAT IS KRATOM ANYWAY? READ ON…
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