Cannabis Tests and the Equipment Needed to Perform Them

Cannabis is now legal in 33 U.S. States and that number is expected to increase. Since most states have stringent legal regulations that require various types of cannabis testing, the explosion of the cannabis market has instantly created heavy demand for independent labs with the ability to test cannabis. In this article, we’ll explore the types of testing required, the types of equipment needed to run the tests, and tips on how to procure this expensive equipment without straining your lab’s expense budget.

Before jumping into the specific cannabis tests and equipment, it’s important to mention that every state has its own unique set of cannabis testing laws. Therefore, the test requirements, and consequently, the equipment requirements of each lab may vary. The first step of setting up a lab for cannabis testing should be a thorough review of the legal requirements in the state where the lab is or will be located. States with stricter laws may require additional equipment, or equipment models with more advanced capabilities and higher measurement precision. Despite the detailed differences among state requirements, there are some core, foundational tests that are required in every state where cannabis is legal, and some standard equipment that every lab testing cannabis will likely need.

Six Common Cannabis Tests

Beyond variances in state legal requirements, tests and equipment may also differ simply based on the goal of the tests. Some growers, manufacturers and extractors may leverage the services of testing labs to inform experimentation with new product research and development or just to ensure certain product specs are being met. However, the following is a list of six of the most common types of cannabis testing being done. If you’re setting up a lab for cannabis testing, you will most likely be asked to perform these tests, which require the following equipment:

1. Potency and cannabinoids

The most important reason for testing cannabis is to determine its potency. The cannabinoid profile of the plant, also called the strain, dictates its potency, or overall strength of the plant as well as its specific medicinal properties and common physical effects. Most states require testing of THC and CBD levels, as well as certain cannabidiolic acids. Stricter states may require CBC and CBG measurements as well.

Equipment needed: HPLC

For potency testing, a high-performance liquid chromatography (HPLC) is considered the gold standard. The HPLC will be a workhorse in every cannabis lab, so it’s probably worth your while to invest in quality units that include a comprehensive package with instrument hardware, software and consumables.

2. Residual Solvents

Super-concentrated forms of cannabis, such as oils and waxes are in high demand. These concentrated substances are produced by extracting cannabinoids and terpenoids from the plant material using a solvent. Common extraction solvents include: Acetone, Butane, Ethanol, Heptane, Hexane, Isopropanol, Pentane and Propane. These solvents must be purged from the extracted substances and the Residual Solvent Test (RST) reveals the presence of harmful solvents, impurities, and chemicals.

Equipment needed: GC-MS with headspace autosampler

Residual Solvent Tests utilize gas chromatography. The test involves heating a sample of the extracted substance to cause evaporation of any solvents. The evaporated solvents are called “headspace” and are measured and analyzed in a gas chromatograph using a headspace autosampler. The ideal equipment setup for residual solvent testing is: GC-MS with headspace autosampler

3. Terpenes

Terpenes are oily substances in cannabis plants that produce each plant’s distinctive aromas, flavors and mental and physical effects. Terpene testing is not required in most states, but it is recommended, especially when the product is being used for medicinal purposes, because terpene characteristics are key components for determining medicinal benefits and choosing optimal treatments based on patient symptoms.

Equipment needed: GC-MS with headspace autosampler

Good news. The same equipment used for Residual Solvent Testing (above) can also be used to analyze terpene profiles —the GC-MS with headspace autosampler.

4. Heavy Metals

When heavy metals like lead, arsenic and mercury, are present in soils and fertilizers, they can be absorbed into cannabis plants as they grow - and they are considered toxic. Most states require testing to ensure cannabis samples fall below the legal toxic concentration limits.

Equipment needed: ICP-MS

Heavy metal testing is done through Inductively Coupled Plasma Mass Spectrometry (ICP-MS). ICP-MS leverages mass measurements in cannabis samples to determine which elements are present and at what concentration levels.

5. Pesticides

A variety of pesticides, which are toxic to humans, are used by commercial cannabis growers. Testing to confirm the absence of pesticides in cannabis products is absolutely critical, but the variety and number of tests vary greatly from state to state in the US and Internationally as well.

Equipment needed: LC-MS or GC-MS (MS with Triple Quadrupole)

Equipment requirements for pesticide testing varies based on state (and International) legal requirements. For the majority of pesticides, liquid chromatography mass spectrometry (LCMS) is sufficient. However, certain pesticides require a gas chromatography mass spectrometry (GCMS) instrument. Whether you choose an LC or GC, you’ll want a system with a triple quadrupole mass spectrometer that offers ultra-low detection capabilities.

6. Microbiological Mold/Bacteria

A moist environment, and other factors, can facilitate the growth of mycotoxins such as fungi, mold, and mildew in cannabis plant material. These toxins can be dangerous if ingested. Microbial growth typically occurs during cultivation, but it can also occur during handling and packaging. Most states require testing fungal or microbial growth testing for cannabis.

Equipment needed: qPCR Machine

Microbial testing is most commonly done using quantitative polymerase chain reaction (qPCR). Not surprisingly the necessary equipment is called a qPCR machine.

Purchase, Lease/Finance or Rent?

The lab equipment needed to offer a comprehensive suite of cannabis testing is expensive, and can be a major obstacle to starting a new lab with limited capital. Fortunately, there are some alternative payment methods that make equipment more affordable and attainable for new lab businesses without a lot of capital or existing labs looking to preserve capital and manage cash flow.

When to rent equipment:

Renting lab equipment is a smart financial choice in two situations:

1. You have a temporary, short-term need, usually a year or less, and you have no desire to own the equipment. Examples may include a research and development project, a one-time job, or replacement equipment during maintenance or repairs of existing equipment.
2. If you want to own the equipment but can’t afford to purchase it in full or can’t get approved for a lease, a rental can often be set up as a rent-to-own. In this scenario, you’re renting the equipment from the supplier for an agreed upon rental period. The monthly payments are typically higher than a lease payment, but suppliers will apply a specified percentage of the monthly rental payments toward the purchase at any time you’re ready to make the purchase.

When to purchase equipment in full:

If your cannabis testing lab has access to large amounts of capital and wants to own the equipment, it may make sense to purchase the equipment outright. In the long run, a straight purchase will typically cost the least amount of money because you do pay extra to spread costs over time through financing or renting. To save money, consider purchasing refurbished equipment from a reputable supplier - but be sure they offer the appropriate warranties, maintenance and repair services.

Before purchasing in full, it is important to consider the fact that technology is advancing quickly and certain equipment types and models can become outdated and even obsolete within a couple of years. If your lab is committed to leveraging the most up-to-date equipment technologies and capabilities, purchasing is not going to be the smartest business decision. A fair market value (FMV) lease might make better financial sense (see below).

When to lease/finance equipment:

When budgets are limited or your business wants to preserve capital and manage cash flow, equipment financing is a popular alternative to paying in full. Financing allows your business to spread equipment costs across a longer period of time and pay in monthly increments.

Types of financing

There are different types of equipment financing including: traditional bank loans, FMV leases and Dollar-Buyout leases.

Bank loans: It is typically more difficult to get approved for traditional bank loans, especially for new businesses lacking credit history. Bank loans often require business assets as collateral and also typically require a substantial down payment.

FMV leases: FMV leases are effective for relatively short-term needs, like two - three years, when you have no desire to own the equipment. FMV leases have no down payment and are ideal for keeping the latest equipment, technology and capabilities in your lab because you can trade in the equipment at the end of the lease and begin a new lease with brand new equipment.

Dollar-Buyout leases: Just as the name suggests, this type of lease allows you to own the equipment at the end of the term with a $1 purchase. Also, with no down payment, this is the most common type of financing for labs looking for an affordable way to own their equipment without becoming cash-strapped.

Another advantage of leases is that extra soft costs, like maintenance and repair plans can be bundled into the lease for one easy, predictable payment.

Getting approved for an equipment lease

While approvals for equipment leases are typically easier to come by than traditional bank loans, there are still some criteria for getting approved. Here’s what to expect:

•  Until recently, lenders were notoriously hesitant to approve leases for any business working in the cannabis industry. However, the rapid growth of the market is attracting more and more lenders into this space. But lenders are still cautious, and giving your lab a professional name and brand identity is recommended. In other words, calling your business something ultra-casual like “The Weed Lab” could have a negative impact on your ability to get approved.
• If you 3+ years of good business credit you have a great chance of being approved
• New startups and labs with less than 3 years of business credit can still get approved if the majority owner acts as the personal guarantor and has a personal Credit Score of 650 or better.

Lab equipment cost estimates

Equipment costs can vary greatly depending on a number of factors, including: age, condition, model, capabilities and individual supplier markups. For example, a full lab with one unit of every type of equipment needed would cost an estimated $1,000,000 to $1,200,000 for new equipment and $350,000 to $400,000 for refurbished equipment.

The following cost estimates for individual equipment types include ranges and approximations based on real rental, purchase and financing data collected on our company’s online B2B equipment marketplace. This pricing data is inclusive of a wide variety of manufacturer brands offered by a wide variety of equipment suppliers all across the U.S.

 HPLC 

 GC-MS 

ICP-MS 

 *Note heavy metal testing also requires a Microwave Digestor which runs $30,000 - $100,000.

  qPCR

Conclusion

Cannabis market growth and the subsequent need for testing is outpacing the supply of cannabis testing labs, so cannabis testing an opportunistic market in which to start a business. While the equipment can be very expensive, rental and financing options can make the equipment affordable, and the predictable monthly payments can be easily inserted as a fixed expense in your business model. The costs can also range greatly depending on the type of equipment you decide to purchase. The first step in making smart equipment purchasing decisions is to gain a clear understanding of the legal requirements in the state where your lab will operate. Without a clear understanding of your state’s testing requirements, you’re likely to spend more than necessary on equipment and equipment features that you don’t need; or start a lab business that is unable to completely fulfill the needs of your clients. Perhaps the best advice available is to invest in a highly knowledgeable lab director with robust experience in cannabis testing and partner with a reliable, trustworthy laboratory equipment supplier that also has an in-depth understanding of the requirements of cannabis testing.

*Robin Salter is the Chief Marketing Officer at KWIPPED.