Analytical service revenue, not a marijuana sale
A licensed Testing Facility sells potency, pesticide, microbial, and heavy-metal analysis, not cannabis itself, which puts its accounting and tax exposure on different footing than a cultivator, manufacturer, or dispensary. Revenue is per-sample analytical fees, and that distinction generally limits 280E exposure to costs directly tied to any accommodation or reference samples the lab physically handles — but it's a position that needs documentation, not assumption.
We build the lab's accounting around that service-fee reality from the start, so its financials tell an accurate story to the MED, to lenders, and to the IRS about what kind of business it actually is.
High fixed-cost equipment drives per-sample pricing
HPLC, GC-MS, and other analytical instruments represent significant upfront capital investment, with ongoing calibration, certification, and maintenance cost layered on top. Depreciation schedules and equipment cost allocation directly drive what a lab needs to charge per sample to cover its true cost structure, so modeling this correctly matters as much for pricing strategy as for financial reporting.
- Equipment depreciation and calibration cost schedules tied to per-sample pricing
- Retest and referee-sample cost tracked separately from standard testing volume
- ISO/IEC 17025 and MED accreditation compliance costs isolated from routine operating expense
Retesting, referee samples, and chain-of-custody cost
Failed or disputed test results sometimes trigger a retest or referee sampling process, and the cost of that rework — plus any liability exposure if a result is later formally challenged — needs a clear, separate accounting treatment rather than getting buried in routine testing cost. Tracking this separately also gives lab management visibility into which test types or clients generate disproportionate rework.
Accreditation overhead deserves its own cost category
Maintaining ISO/IEC 17025 accreditation and MED certification involves recurring proficiency testing, quality-assurance staffing, and compliance documentation costs that should be tracked separately from routine lab operating expense. Without that separation, it's difficult to see how much accreditation actually costs the business, and difficult to build that cost into per-sample pricing appropriately.
