Hemp Startup 101

There are many questions that you need to ask when starting a new business or even upgrading your facility to accommodate more production. Since 2014, extraktLAB has been heavily involved in putting hundreds of cannabis and hemp manufacturers in the business of extracting hemp and creating valuable products that consumers will buy. When it comes to starting up a hemp extraction business, it is vital to recognize a number of factors in order to start off on the right track and remain in business for many years. If you are ready to take on the journey of creating your own hemp startup, this is the podcast for you.

In this episode of extrakTALKS, Dr. Jon and Randall Thompson discuss everything you need to know when starting your own hemp processing business. Any questions you may have should be answered before starting your business. This would include facility location, power supply, permitting jurisdiction, room for expansion, utility placement, extraction methods and product formulations among many other considerations. Without understanding each of these important factors, there is no guarantee that your startup will hit the ground running – let alone remain profitable in the years to come.

LISTEN to this episode:

[00:00] – Welcome
[02:00] – extraktlab.com/calculators
[02:20] – Product Tours
[04:20] – Giveaway Winners
[06:00] – Hemp Startup 101
[07:30] – How big is the market going to be in the next 5 to 10 years?
[09:40] – For those who need funding
[10:13] – What about the risk?
[11:33] – Apply the rule of two
[12:30] – When you are managing risk..
[13:55] – Begin with the end (The products)
[15:25] – Why do you think a farmer would want to get into the business of hemp processing?
[16:58] – How we can help mitigate risks
[17:48] – Bioprocessing workflow
[18:46] – Start off with raw material
[19:58] – Quarantine material and verify COA (certificate of analysis)
[20:45] – Farmers should homogenate before testing
[21:33] – Quality Control control specifications
[22:01] – The grinding station
[23:43] – Comes from a farm shuck and bucked
[24:22] – Hammermill is a great first stage grinder
[24:41] – Particle size distribution
[25:43] – Vacuum oven Decarboxylation (Where you get terpenes)
[28:13] – Hemp Extraction process
[29:10] – Technical Difficulties
[29:53] – Back to extraction
[30:19] – Best tincture ever!: https://youtu.be/D3W4T9gyBKs
[30:36] – CO2 is the best!
[31:08] – extraktlab.com/calculators Proforma calculator
[32:25] – DrainDroyd Dewaxing and Filtration
[32:43] – We use ethanol to dewax
[33:31] – Don’t Give butane lighters to children(and a digression to childhood shenanigan’s)
[35:44] – Crude oil and ethanol solutions
[36:23] – Which employee should I get first(Scientist, Chemist, etc.)
[37:37] – Is their a difference in capitol investment operating expense?
[38:20] – What is a rule of thumb to extract with ethanol?
[39:38] – Accountants will focus on Inventory
[40:54] – We are an RND facility
[41:34] – Solvent Removal process
[42:56] – fracTron and removing solvent bottlenecks
[44:20] – Distillation: clearstill and creating distillate
[47:17] – What happens to distillate over time?
[49:24] – Full spectrum vs Broad spectrum
[49:42] – Cliff note version of FSD vs BSD
[50:35] – What is the biggest growing market for CBD Products?
[53:24] – Isolate production and a word on organic isolate
[54:23] – Separations, end products, and packaging headaches
[56:54] – Final words

Welcome: 

Welcome to extrakTALKS with Dr. Jon podcast. Dr. Jon is CEO and president of extraktLAB and United Science, an industry leader in hemp, cannabis and the extraction industry. Listen closely as Dr. Jon talks about his experiences, CBD extraction methodology, and the ins and outs of owning your own business. Dr. Jon teaches you healthy business practices, how to increase your profits and steps to take your CBD company to a whole new level. Let’s dive in.

Dr. Jon: 

You guys are awesome.

Randall Thompson: 

You guys are awesome. And thank you for joining us if you’re the first time here. This is a no holds barred questions q&a session with Dr. Jon. And we’re going to answer all your questions today on hemp startup 101

Dr. Jon: 

hemp startup 101. This is what we do.

Randall Thompson: 

This is what we do.

Dr. Jon: 

It is what we do. We we put people in the business

Randall Thompson: 

we have questions. I mean, I’m on the phone all day, all night. I mean, all around the world. Answering questions on people starting up.

Dr. Jon: 

Yeah, yeah, investors have questions farmers have questions. You know, people who are who are want to buy CBD oils have questions. So there’s it’s a really great topic. We haven’t covered it before. But we’re going to cover it in in kind of, not in not in Super detail. But we’ll go into some of the process.

Randall Thompson: 

We have a lot of resources on extraktLAB.com e x tra k t la b.com. Lots of calculators for startup. Lots of checklists, in our blog, everything. So there are several startup facilities checklists, we got seven questions the answer hemp-startup-questions that’s really cool. We’ve got estimated yearly cost calculato s, revenue cost and investmen calculator.

Dr. Jon: 

A couple of things that happened this week. Okay. They’re on live now our product tours, okay. There’s two different options. One can do self guided tour, which is basically you highlight and, you know, feature on a piece of equipment. And you can tell, okay, this is why you use this equipment. And then at the very top of our top of our website, there’s a live tour and you can interact with our bot to basically schedule a button. Yeah, yeah, exactly.

Randall Thompson: 

This is easy.

Dr. Jon: 

Yeah. So if you want to see an extractor in operation or see an extractor, ask questions, you know, push that button, and we can get you out.

Randall Thompson: 

And we have the same thing with evaporation and distillation.

Dr. Jon: 

Absolutely. Yeah, you can pick you can pick the piece of equipment, and we’ll go through it. It’s a short, really short, but it’s live. We use our our phone. So it’s, nothing’s, you know, nothing’s like, you know, super edited and professional but we just, you know, there we are. And we got the phones. We’re standing in front of it, answering questions taking you through it.

Randall Thompson: 

So that’s extraction, wiped film and falling film technology.

Dr. Jon: 

Yes.

Randall Thompson: 

Explained using our products that we have, which are phenomenal. So thank you. If you are here for the first time, thank you for being here. The more you engage on social on our calculators on our page, like us, YouTube, everything engage. Because Jared is always looking he’s you know, be lucky. He’s in the shadows, looking for you to give you an award. So do that. Good. Lots of resources. We still have the live tour, the CBD jam sessions. We’ve got the live demos now, which is very cool.

Dr. Jon: 

Yeah,

Randall Thompson: 

you were very excited.

Dr. Jon: 

Oh, I was really excited because I you know, we were doing our live demos. I mean, it’s really cool. somebody clicks on there, they they booked me or the book one of the guys. You know, maybe a couple days out. But you know, you get something right there real time.

Randall Thompson: 

You could get Q, Ely, myself or Dr. Jon, and you’re in for a treat, because you might randomly be selected by Dr. Jon If he has time.

Dr. Jon: 

Every now and then

Randall Thompson: 

you’re busy guy.

Dr. Jon: 

Yeah, yeah. But I like doing that

Randall Thompson: 

and prolific

Dr. Jon: 

I like doing the tours

Randall Thompson: 

and inventive.

Dr. Jon: 

I really like doing that. I mentioned that

Randall Thompson: 

he really loves doing the tours

Dr. Jon: 

kind of the baby like little babies, you know. Look at this one. It looks so good.

Randall Thompson: 

I think that that’s good.

Dr. Jon: 

So good looking.

Randall Thompson: 

Alright, so thank you for being here. We’re good. What else? This is a fun and safe place. So ask all your questions. Introduce yourself in the chat, please. And you will be engaged with by Dr. Jon But it’s mostly by our whole team. Yeah. So we’re, we’re all good. So thank you for being here. hemp 101 hemp startup 101. Those are actually the most questions we’ve gotten have to do with each stage in the process, right. And so what we thought would be great is just to start with receiving and the raw material all the way through packaging.

Dr. Jon: 

Yeah.

Randall Thompson: 

And just touch on each element of that for you. And then ask your questions as we go and we’ll try to answer them online and we’ll build them into our future FAQs also.

Dr. Jon: 

Absolutely. Yeah. So sounds good. Let’s let’s get going.

Randall Thompson: 

You’re on

Dr. Jon: 

all right. hemp startup 101 basically, alright, so um, You know, when when I first started getting into a business, you want to know, is it worth? Is the viewer, the client?

Randall Thompson: 

Am I gonna make money?

Dr. Jon: 

Is there a statue in the marble? You know? The answer is usually not, you know, you really have to work there to get there, you know. So blood, sweat and tears. I think we’ve talked about this before on a different podcast. And I mean it, of course, it’s worth it. But it’s you got to, you got to be able to put the amount of time and the work and you got to have yourself be self motivated inside of you to really want it because it’s a lot of work.

Randall Thompson: 

It is a lot of work. Yeah. And initially, it’s a lot of work. And unfortunately, most people in business stop before they get to the finish line. And it is a tough row. But if you understand the why and where you are in these processes, don’t stop. We’re here to help you to cheer you on. And come along, answer your questions. Let’s go,

Dr. Jon: 

let’s let’s talk about how big this market is going to be in the next what, five, five to 10 years.

Randall Thompson: 

Okay, that OMG? Is that a keyword? Omg?

Dr. Jon: 

Well, look, this is the reason this is what’s animating a lot of people, you know, there’s, there’s, there’s ups and downs in every market. Okay. And there’s, there’s lots people are trying to figure out, you know, why this, why the supply is who’s going to do the supply, who’s going to be the main supplier, all these things, were really at the nascent stages of the market, we it’s a rather small market, even even though it’s well over a billion dollars, well, well over a billion dollars independent, there’s all kinds of different, you know, market reports out there, they have different ways in which they size the market, right? And so what’s the total available market? What’s your product available? market, all

Randall Thompson: 

what here and right now, it’s in the range of that stuff, but between four and 6 billion right now?

Dr. Jon: 

Yes, right at the moment, in you know, it’s supposed to climb up into the up into the high 20s? Yep. Okay. And those are kind of old reports, I’ve seen others. Other reports actually hit the 50s. And, you know, I was just talking to a couple guys, uh, maybe three, four years, three, four weeks ago. And we kind of looking at it, and they were saying they were reading reports where it’s the next trillion dollar market. Now, I really, really think that those numbers are obtainable. If if it’s let out of the bag, and in, you know, it becomes a consumer consumer base product, if it’s kept a really, you know, close from the regulation side, it’s still into the, you know, multi billion dollar market, probably, you know, 50 60 billion. So, we’re basically on that road, and there’s going to be lots of all the ships are rising with the tide. So this is why we do what we do. Right.

Randall Thompson: 

And again, that same report that was saying in the last report, I read said, it’s a $6 billion industry worldwide, right? Probably between four and five, you know, in more concentrated areas. But that’s growing to 26 billion now by the year 2025. In the next five years.

Dr. Jon: 

So yeah, you got to be on that that train. I mean, like I say, all boats are rising with the tide. Let’s go, you know,

Randall Thompson: 

let’s go into that. And, you know, those of you who are in startup, one of the biggest things is funding Yeah, these are the things you need to know and convey with confidence to your bank, the SBA to the USDA, to investors to private investors, private money, there’s, there’s a lot of options for you to get funding,

Dr. Jon: 

right. Friends and family. Yeah, and a lot. So that’s how a lot of

Randall Thompson: 

you have to be confident in how you convey your belief in this industry, because it has to be catching, it has to be contagious, you’ve got to do that.

Dr. Jon: 

Now, let’s talk about risk. Okay, so you have the market Are we going to go to this this huge market, there’s a risk of not knowing always risk, there’s always risk, there’s ups and downs in the market, then there’s then there’s operational risk, there’s You know, there’s like business risk is what they’re what they you know, what they call it? Are you able to really are you able to take in, you know, start up a business, and then run that business, get a product out that people will purchase. And then also win in the marketplace, there’s there’s all your layered risk one on top of another? Absolutely, with each one of those, like within an operation, there’s a lot of different risk, you know, like quality, risk regulation, regulatory risk, technical risk, there’s all these different risks, okay. And what your investor is going to do is they’re going to say, is he able to manage all that risk?

Randall Thompson: 

Yes.

Dr. Jon: 

So that’s exactly why

Randall Thompson: 

and it’s not even do you have the the emotional fortitude and the perseverance to get through that was elements of risk, right? Because there’s ups and downs and every startup, I’m gonna, you’re gonna have that and you’re going to hit the wall and you’re gonna go, Why the hell am I doing this? But you you just keep going. You’ve got a whole team here. You’re, when you’re in the business, you’re part of our family. That’s how we feel. Yeah, pretty much so you know, get us It has questions. Let’s let’s get you over that home.

Dr. Jon: 

Apply the Rule of Two.

Randall Thompson: 

Apply the Rule of Two. I like that.

Dr. Jon: 

it’s the Johnny t Rule of Two.

Randall Thompson: 

Rule of Two so tell them what the rule is

Dr. Jon: 

and the rule a two is gonna take you twice as long in twice as much money as you think it’s pretty much our law,

Randall Thompson: 

the Rule of Two,

Dr. Jon: 

the Rule of Two.

Randall Thompson: 

Yeah. And it is and even when you’re projecting, cut everything in half. That’s it. That’s,

Dr. Jon: 

yeah, cut it, cut all that in half, cut your projections in half double the amount that you take and double the amount of time and I think you’d probably be right on the money

Randall Thompson: 

and you won’t be disappointed.

Dr. Jon: 

Because when I when I made the back in 20 2014, we were trying to raise money for United science. Okay. I did I tell you about this. Okay, I did projections. out to 2020. Yes, we are to the dollar.

Randall Thompson: 

Yeah, he’s good.

Dr. Jon: 

That was the Rule of Two.

Randall Thompson: 

Rule of two, okay. To take twice as long with double the money.

Dr. Jon: 

Yes, exactly. So

Randall Thompson: 

and that, but that, and that’s what you want to do. But you have to make sure that you understand each element and that you convey that. Yeah, it’s got to be contagious, right? It’s not okay. So the other side of this, when you’re managing risk, you think you need to be all buttoned up. And you know, it’s not, if you’re just talking numbers, if you’re just in this for the mercenary side of it, you won’t succeed.

Dr. Jon: 

No, that’s probably true. Because you won’t be able to raise any money because nobody will believe in you. Because you’re just talking.

Randall Thompson: 

You can’t also you can’t just be the Zealot, you can’t just be all emotion, because they’re not going to invest in you either. Because you have no business acumen. There’s they don’t trust you. They’re like, Okay, he’s a dreamer. Right, right. There’s a lot of dreamers love dreamers. But you’re, you’ve got to find that balance of both, and you got to turn it on, depending on who your audience is.

Dr. Jon: 

Yeah.

Randall Thompson: 

But the reality is, in each of these elements we’re going to be talking about today, you need to understand it, you need to understand how to profit from it. And what is the technical side of it? What is the emotional side of it? Why, you know, what’s the purist side? Almost?

Dr. Jon: 

Yeah.

Randall Thompson: 

And then how do you make money?

Dr. Jon: 

right.

Randall Thompson: 

And the reality is that were those three circles, inner interconnect, right? Is is the sweet spot. Right? All right. And that’s where you’re going to make right and that’s solving problems solving the issues that people are seeking answers for.

Dr. Jon: 

Right? Right. So let’s begin with the end.

Randall Thompson: 

Go. Let’s go again, we’re gonna begin with the end. Like, okay,

Dr. Jon: 

let’s go. Okay, look, Okay, first thing you do, you must know what the

Randall Thompson: 

right Yeah, what your products are gonna do.

Dr. Jon: 

Yeah, what if you don’t know what your products are? Just Just make up your products. Okay, okay, here, I’m gonna sell. I’m gonna sell tinctures, I’m gonna sell bulk, I’m gonna sell whatever you’re gonna sell, okay, we’re gonna be the best. And we’re gonna be the best patch manufacturer on the face of the planet. And we’re gonna, we’re gonna have some you have to have something that you’re going to sell. Because in order to do that, then then you’re going to that’s going to define what plant you’re going to build. Yeah, it’s going to define the types of people you need. It’s going to define your business plan from the standpoint of you being able to project financials,

Randall Thompson: 

you have to decide what is the end, you’re going to stop at? oil? Are you going to stop at distillate? Are you gonna stop at isolate? Are you gonna stop at chromatography? Right? And formulation, right, are or are you going all the way to packaged goods? Do you have a service model? Exactly.

Dr. Jon: 

Yeah,

Randall Thompson: 

yeah. So there’s a lot of different things. You got to decide where you’re going. And, you know, we also subscribe to the crawl, walk run strategy.

Dr. Jon: 

Absolutely.

Randall Thompson: 

You start on one end or the other, or in the middle. So you there are people, you know, you’ve farmers, you know, you’re starting at the very beginning. Right, right, right. But then even there’s a beginning beginning and those are the people who are just producing in genetic sizing to see Right, right. Right. And the clones Yeah. And then you go all the way to the packaged goods, tinctures lotions, and

Dr. Jon: 

why do you think a farmer would want to get into the business of hemp processing?

Randall Thompson: 

control

Dr. Jon: 

Yeah, absolutely.

Randall Thompson: 

Control

Dr. Jon: 

vertical, it’s the vertical

Randall Thompson: 

vertical integration because right upgrade your crop? Yeah, because it The reality is it extends the shelf life of their biomass because biomass has a shelf life, and there’s risks with mold and moisture and all that and then but if you get that in distillate just go that go all the way to crude oil, right, winterized oil, oh my gosh,

Dr. Jon: 

there are like co ops being made, you know, and those those are kind of kind of the way to go I think. You know, because, you know, a bunch of farmers get together they all throw in 100 grand, they get a plant they all bring their stuff there across the forum and then they can you know, yeah, so we’re we’re we’re based out of Wisconsin, there’s there’s lots of farmer coops all

Randall Thompson: 

always just an agricultural marketplace.

Dr. Jon: 

ya think? So yeah,

Randall Thompson: 

no, but that you are absolutely right. There’s a lot of people who are vertically integrating. There’s usually one troublemaker who is leading the charge and, you know, yeah, he’s the rabble rouser.

Dr. Jon: 

He’s got the dollar signs and designs.

Randall Thompson: 

But you’ve got the

Dr. Jon: 

if you apply the rule of two though the guy is probably right.

Randall Thompson: 

Exactly. Yeah, that’s exactly right. And thank you for being that guy.

Dr. Jon: 

Yes, exactly. In fact, no one would nothing would ever get done without the dollar signs in there. We’ve got

Randall Thompson: 

a group and coming in, actually, week after next Yeah, to talk about that exact thing.

Dr. Jon: 

That’s good.

Randall Thompson: 

That happened. So all the way through, but all right.

Dr. Jon: 

So anyway, so we talked about beginning with the end, we talked about risk. And and one of the things that we really do is we we really help you manage that operational risk and startup risk all so we take that risk. We take it down to really low amounts of risk. Okay, there’s still there’s always risk but very, very low. I can’t ever say that we eliminate or

Randall Thompson: 

you can’t eliminate it.

Dr. Jon: 

No.

Randall Thompson: 

But what we do is we help you manage those risks. Yeah, that if if you start telling your investor or the bank or anybody that there are no risks, they will never lend money to you because you’re a dreamer.

Dr. Jon: 

Right Exactly.

Randall Thompson: 

That’s Not true. It’s how you manage the risks, and that you have a clear understanding of what the risks are. Right, is where you shine.

Dr. Jon: 

Right So yeah, so let’s go to the bio processing workflow. flowchart, you guys have all seen this route raw material all the way through?

Randall Thompson: 

That’s a very catchy name.

Dr. Jon: 

Yes. It’s advanced bio processing workflows, the advanced bio processing workflow. No, I think it’s the nano enabled Gen. thing on the nano enabled, genetics infused advanced bio processing workflow schematic.

Randall Thompson: 

I just see I needed to give a quiet to be able to

Dr. Jon: 

see the quasi static a Yeah, well, nevermind, I can get I can get it for you. All kinds of jargon. Let’s

Randall Thompson: 

do the advanced bioprocessing

Dr. Jon: 

do it. Okay. A raw material, also known

Randall Thompson: 

as turbocharged hemp?

Dr. Jon: 

Yes. Yes. Okay. So okay, you got you guys got it. Basically, this starts with biomass. Okay, so we’re now talking about bio processing. We’re not talking about farming, we’re talking about bio processing bring bringing raw material down into the form of products that we can be used in, in marketed into manufacturing. So we start off with the raw material. And you know, a lot of business issues right around that, and a lot of technical issues, the technical issues are very clear, you need to make sure that you have the raw material coming in, that’s not contaminated, that has the potency that they say it is and is not a bunch of sticks and stems that cost a lot more to bioprocess. I mean, those are the types of things that people do in terms of putting the right specifications can’t be full of water can’t be full of mold.

Randall Thompson: 

No,

Dr. Jon: 

it can’t be full of metals, okay, so those

Randall Thompson: 

or stones or sticks, or stones are never gonna break my bones,

Dr. Jon: 

something like that. So, I mean, you know, a lot of people deal with, you know, also don’t accept any pre bio, you know, pre processed material, a lot of people, you know, very unethical actors out there selling, you know, soaking their, you know, materials in, like, you know, ethanol and then selling it off, you know, as that that is bio hazardous waste, it’s, so you’re actually taking that in, you’re paying for it, don’t do that. Okay, then we’ve actually had that. Well, some people tried to sell us that well

Randall Thompson: 

That’s why we have a quarantine and we talked about that a lot.

Dr. Jon: 

yeah exactly.

Randall Thompson: 

So you’ve got you know, you you need to make sure that you quarantine so when you receive that material, you want to make sure that you’re not losing money. Okay. So, trust but verify the the COA will come in, right. And okay, so again, the COA can be anything. I’ve seen COAs that only have tested the absolute flower and the bud and you’re thinking this is awesome

Dr. Jon: 

gonna be 30% CBD and while isn’t the best you get it in. It’s like 5% Yeah, like, okay,

Randall Thompson: 

when you get the rest of it this stuff looks like sawdust What’s going on? When we dried it? Really? Yeah, so just know that if you get that you can kind of tell because it’s going to be 18% plus just cut that in half and that’s probably where it is. It’s my rule of 50

Dr. Jon: 

well that that’s the that’s kind of like for the farmers too um, you know, your your processor is going to be a lot happier with you if you if you give him a homogenate Yeah. Okay, and then sample that rather than giving him the flower because if you give him the flower number, they’re just going to come back to and say no, this isn’t what you say it is. So why do that? Okay unless you’re unless it’s just there for purposes of understanding you know, like contaminants and things like that

Randall Thompson: 

but that’s why you quarantine so you bring it in, you get you get the COA but then you test yourself. And then you that’s really when you want to send it out for that third party test for pesticides, metals, etc.

Dr. Jon: 

Yeah, exactly.

Randall Thompson: 

And you’ll be able to visually see if there are rocks in it.

Dr. Jon: 

Yeah.

Randall Thompson: 

Or heavy. A lot of seeds.

Dr. Jon: 

Yeah, usually you want to like the quality person typically would have those all of those important, you know, specifications except specifications and they would be in there and they would say okay, check, check, check. Trek. Okay, great. Okay, now we’re ready to go. So

Randall Thompson: 

what did we do? We just listed a whole bunch of risks. And we just told you how to manage those. Yeah, that is money, money, money.

Dr. Jon: 

Okay. So I’m just gonna start saying I was going to send it. Okay. Okay, a grinding station. Let’s kind of skip over. Okay, now you’re going to get your material and it’s going to go be ground. Okay, I’m gonna grind it up. How do you gonna do that? Well, look, at the end of the day, there’s lots of different types of grinding technologies. Yep. Just suffice it to say that if you have large amounts, you’re gonna have to manage all that, all that all that ground stuff. So you need someone to engineer a system for you, or, or you can just if you’re doing something smaller, you don’t need to have like, a huge grinder, but you have something that sometimes there’s there’s always trade offs to everything, right? Okay. So the better your grinder in terms of the smaller the size, the more uniform particle size, all that stuff, the better your extraction is going to be the the, you know, and the higher the throughput is going to be. So you may end up getting a 2995 you know, a grinder, okay?

Randall Thompson: 

Food Processor,

Dr. Jon: 

yeah, food processor. I just don’t even think that this is gonna work. You know, and it’s frustrating because you’re using a solution that’s not so cheap, that is not not worth doing, then there’s always the, you know, the thousand dollar solution, then you can go up to the hundred thousand dollar solution. And there’s, there’s in between, there’s all

Randall Thompson: 

we’ve tried them all.

Dr. Jon: 

And we have tried.

Randall Thompson: 

We’ve got arrows in our back,

Dr. Jon: 

some of them are failed, some of them are not. But here, you know, okay, you do get what you pay for it. All you get is, you know, if there’s one thing you know, that’s an adage.

Randall Thompson: 

Yes, it is.

Dr. Jon: 

It’s true. You do get what you pay for.

Randall Thompson: 

I don’t know why, but you pay me $2 and 50 cents a year.

Dr. Jon: 

Yeah, yes,

Randall Thompson: 

you get what he pays for. Now, just so you know, when you bring in that material for him? 101 Okay. It comes from the farm. shucknbuck. Okay, yeah. So and then you that’s, that’s kind of, you know, big.

Dr. Jon: 

Sometimes you can, I think that’s all could also be a viable service business, just saying,

Randall Thompson: 

that is a good business. Yeah,

Dr. Jon: 

shucknbuck we have a shuck and bucker, you can put it on a trailer, put a generator on it and a trucking bucket for people so you don’t hundred acres and

Randall Thompson: 

basically takes us in the button, the stuff off, the big plant takes it off, puts it in as you get that in a super sack. And that’s just still a little too big. So you need to grind that before we get to the other. And we use all kinds of different things. And we found that one of the you know, using a hammer mill at that first stage, right? We’re finding we’re doing timber Mills, great hammer mills are awesome. They’re not real expensive. You do have to be careful. If you’re GMP facility, you’ve got to make sure you get one that is right, GMP. There are

Dr. Jon: 

there are issues there. But okay, so let’s just kind of go into that. One thing with a hammer mill is it will produce a very large particle size distribution, okay, which is good

Randall Thompson: 

for decarb but not for extract as

Dr. Jon: 

well. Yeah. Okay. But you could you could argue not good for anything because you get the dust. Okay, and then you have the big particles. Okay, so this large, large particle size distribution, but it’s effective. And it’s cheap.

Randall Thompson: 

Yes.

Dr. Jon: 

okay. So

Randall Thompson: 

yep. And there are different sizes and screens and stuff that you can do and re grind. Right? So but grinding is key.

Dr. Jon: 

Yes, grinding is key. And so when when you come to us, and you say, hey, Johnny tea, what I really want to do is create, you know, 50,000 tinctures a month, okay, because I know, because I’ve begun with the end, and I know exactly what it is good, then we can then we can go back we can calculate all of the what the what the workflow will look like. And, you know, in and say, I want to be able to do this in three years. We could, we could build it up for three years. You know, so you’d have a workflow for three years or a scale up plant crawl, walk, run again, right, so next is a vacuum oven. decarboxylation it’s it this is this is the place that you’re gonna get beautiful terpenes we’ve talked about this before, everybody knows

Randall Thompson: 

those are beautiful Terpenes

Dr. Jon: 

they are and yeah, they’re they’re wonderful. Plus they smell so good. I mean, I think that that’s a really great place to get the terpenes out is in that just be you know from the vacuum ovens vacuum oven distillation, or its vacuum distillation or whatever you want to call it.

Randall Thompson: 

I call it the activation lab.

Dr. Jon: 

It definitely is. You know you can get it you can get terpenes out in the raw material and that’s called like live live resin, right? And it’s very popular, where they just you know, they they squish it between two hot plates Okay. And then they get live resin out and it’s very terpene it’s very, very fresh, very smells really good. I think that this this terpenes here is is the closest thing that you’re going to get to the live resin because it when you try to get the terpenes out anywhere else. downstream, you’re talking about process of a process of a process of a process right? So that’s a really great place to do it and you know we have the options for you

Randall Thompson: 

they get bitter

Dr. Jon: 

Yeah, they get bitter they get dark they you know terpenes are not all equal in the sense of desirability, okay? So not all terpenes – okay. So, really what you want is the stable terpenes and there are ones terpenes there that are highly reactive. So that are not desirable from from basically from a

Randall Thompson: 

and from a hemp 101 perspective decarb is actually activate the level of THC right in the minor amount and it activate the cannabinoids inside there as well.

Dr. Jon: 

So that that right there is a is a V mixer, we use those

Randall Thompson: 

is that Kevin? looks like kevin

Dr. Jon: 

yeah, that’s Kevin. Kevin’s awesome. He is the best. Okay, so, um, yeah, so you know, that is a vacuum oven. And you And by the way, that’s the one we keep threatening to put can also use a small piece of equipment like this, if you have if you have a smaller facility. Right around one ton is where you’re going to really kind of switch over I think it makes a lot of sense to to go. And some people, for convenience purposes will want to get a v mixer. Y ah. You know, so. popcorn in. Yes, that that’s, that’s the Gemco Yeah, so Gemco is the corporation that makes that and and so we have we have been doing those. So anyway, so let’s kind of move on to the next step. And that would be extraction extraction. Okay. So, um, we have talked about this, you know, for a long time, but fundamentally, you know, when you extract your raw material, you’re going to have to have the right people, you’re going to have to have the right equipment, you’re going to have to make sure that it’s not costing so much as to be you know, not viable. Right. So those are the things that you need to be thinking about with your extraction facility. You know, a lot of times people want to build out their extraction facility so they can just bring in more equipment as they scale up to start off small. Yep. Okay, there’s three, four stations there. Okay. I’m going to be doing a ton a ton a day in X amount of time. And, you know, yeah, so that’s, that’s basically extraction and what it is, I think, the business of that we have calculators online,

Randall Thompson: 

we do

Dr. Jon: 

and you can go to the calculators. Check it out. Oh, wait, just a second.

Randall Thompson: 

For that technical break. Yeah.

Dr. Jon: 

We never have technical issues here.

Randall Thompson: 

In my brain all the time.

Dr. Jon: 

Okay. I think we’re good to go guys. Right. Okay. We’re good to go. Sweet. All right.

Randall Thompson: 

Love it.

Dr. Jon: 

Well, did you hear that? I did hear silence that was dead air. That’s what they call that. Is that. Wow, dead air.

Randall Thompson: 

I get that in my brain all the time. Dead air. deer in the headlights?

Dr. Jon: 

I’m not gonna comment.

Randall Thompson: 

Okay.

Dr. Jon: 

Okay, so extraction. I’m surprised didn’t have any comments on that. No.

Randall Thompson: 

No, because I’m still eyeballing that muffin over there.

Dr. Jon: 

Sorry. Okay. Okay. Do you actually let’s move on. I just think just suffice it to say, okay, co2 is the boss. Okay. I’m gonna I’m just gonna say it’s the boss.

Randall Thompson: 

It is the boss.

Dr. Jon: 

The reason it’s the boss. Okay, it technically it’s a little bit. It’s more challenging than than taking some everclear and sticking it into a bottle and shaking it up. Okay.

Randall Thompson: 

I have kind of these weird memories of having tasted something like that. I’m not sure why.

Dr. Jon: 

Yeah,

Randall Thompson: 

it was. It was traumatic. I think he made me taste

Dr. Jon: 

a little bit warm. Okay, I’m more on the tongue Bottoms up. Okay. All right. Sorry. Yes, co2, co2 is the bomb, Because? Because, um, because just bubbles, yeah, it’s bubbles. It’s safe. It’s effective. It’s clean. And it doesn’t it’s not gonna cost you an arm and a leg to actually run off for multiple years.

Randall Thompson: 

Yeah. So your operating costs are the bomb.

Dr. Jon: 

Yeah, your equipment will be more, but your operating costs are going to be a lot less. It’s just the fact. So Done, and Done, you know you’re going to be you’re setting yourself up for the future of future profitability, essentially.

Randall Thompson: 

Absolutely. And we have the calculators out there on on yearly operating costs, and we do ethanol versus co2 yearly operating costs, use those. Yeah, you can build half of your pro forma for the band. And I think your investment

Dr. Jon: 

there is a pro forma calculator on there.

Randall Thompson: 

Oh, well, there you go.

Dr. Jon: 

I mean, crazy. Yeah, yeah. So it’s got you know, a lot of people

Randall Thompson: 

have early operating costs. That’s what I call it.

Dr. Jon: 

One of the things people call us, they call us because they want to get what do they call it in the past? They would call us to try to get information for their pro forma.

Randall Thompson: 

Yes.

Dr. Jon: 

All the time.

Randall Thompson: 

Oh, all the time

Dr. Jon: 

can you give me this? I need this yield. I need this. Okay? Look, it’s all in the calculators now. It’s all there.

Randall Thompson: 

It’s there

Dr. Jon: 

you go. And if you haven’t, if you have an assumption that you need to clarify, that’s when you should call us. And I’m really surprised. There are some hidden assumptions, a couple of them that I put in there. You’re the one who’s asked me yet.

Randall Thompson: 

Oh, they asked me all the time. Thanks for that. So find those. And I’m guessing Jared might be able to tell

Dr. Jon: 

ya the hidden assumption. Yeah,

Randall Thompson: 

yeah. What are the hidden assumptions? So if you can find the hidden assumptions in our calculators, there’s swag. Right?

Dr. Jon: 

Right. Exactly. All right. So let’s go on to the drain dried d over d waxing filtration. Okay.

Randall Thompson: 

Love it.

Dr. Jon: 

Okay. So, that is a that is the process by which you would dewax, okay. And you really need to do that before you go into your distillate because the waxes are not so hot in the distillate side of it. So you need to dewax it’s an easier process, we use ethanol to D wax. And a lot of people are like, Oh my gosh, people, they’re using ethanol. What are they talking about? Because they just told me that ethanol is not very good for using it for extraction. Exactly. Well, no, all of those two things can be properly can be absolutely true at the same time. So yes, we use we use ethanol in that process. It’s just we use a lot less. There’s only two there’s a very, very small amount. We have FAQs that you can read on how much you would use ethanol in your dewaxing versus ethanol and your extraction. They’re not even in the same ballpark.

Randall Thompson: 

food grade medical grade organic grade ethanol is not evil.

Dr. Jon: 

No, it’s not

Randall Thompson: 

denatured ethanol, hmm.

Dr. Jon: 

Yeah, I don’t know. It’s just not not it shouldn’t be deployed

Randall Thompson: 

evil.

Dr. Jon: 

Yes.

Randall Thompson: 

Yes, denatured don’t use denatured ever ever, ever And again,

Dr. Jon: 

don’t give you know, butane lighters to kids right? Or in the box of matches and hatchets.Okay, that’s kind of the way I look at it. It’s just

Randall Thompson: 

I’m remembering my childhood.

Dr. Jon: 

It was so much fun. Wasn’t it? Start that on fire. Okay. Um, yeah, things haven’t changed. I mean, yeah. Okay. But kids still like matches and boxing your magic. Off the off the beaten path. Remember those little snakes that you saw?

Randall Thompson: 

Oh, yeah.

Dr. Jon: 

Those were so great. Where he would put them on there. And then you’d like them, and they would just kind of they would grow and everything. Oh, that was

Randall Thompson: 

you’d never want to do them in your hand and then light them?

Dr. Jon: 

Yeah. Yeah. You wouldn’t want to do that. No, I remember those little things, those little, little white white bags of things you’d throw and they would snap like that snappers? Oh, yeah, that was that’s kind of cool. That

Randall Thompson: 

is fun.

Dr. Jon: 

Yeah, that is okay. So now we digressed.

Randall Thompson: 

But that’s okay.If you’ve got any childhood memories of those kinds of things. Let us know because those are things that we love to experiment with.

Dr. Jon: 

Yes,

Randall Thompson: 

those might be a future, you know, RND lab item. Come on.

Dr. Jon: 

Yes. light off all the weird fireworks that we have in our repertoire. I mean, you have to admit, okay, the other thing that just came up from speaking of childhood, even just those little capgun things, yeah, yeah, they their little red circle, and you put them in there and they snap snap, and there’s old smoking stuff. That was always pretty cool.

Randall Thompson: 

It was cool. Yeah, that little roll and you get it and

Dr. Jon: 

that was so much fun as we used to take over the whole roll roll and you put it on the cement, and then you hit the whole thing with a hammer. Bam. Really big.

Randall Thompson: 

That’s a big Yeah. Yeah. Wow, that works. Okay. Yeah, but you’ve got some unsnapped snaps and then you take all the time to find the one that didn’t get snap. Right.

Dr. Jon: 

Well, yeah, that was That’s true. That’s true. And then you didn’t go back and hit them one by one. I my my suggestion, there’s anyone who wants to try that. Okay. Just don’t use a hammer with like, a like a serrated, like no it no on the top because it doesn’t, doesn’t do so you got to have a smooth head on the hammer. So when you hit it, it’s

Randall Thompson: 

or a bowl pain that has the round head, but then you got to hit it just right on that. Yeah, it’s a little

Dr. Jon: 

more accurate with that. So okay, crude oil and ethanol solutions were moving on from that. But suffice it to say that, you know, that’s a part of something that you’re going to have to know how to do. You know, and at this point, this is where people like, geez, I don’t really know how to do all this stuff. What am I gonna do? I’m gonna get training, what kinds of people do I need? Because you know, all this stuff, this is a they start to ask all these questions. Well, we can help you answer all those questions. In other words, we can put together like a headcount plan for you, for example, as a function of how much you’re going to be next

Randall Thompson: 

an that’s in the calculator online. It gives you you know, how many people are you going to need?

Dr. Jon: 

Yeah. And they always ask, okay, should I get a scientist or should I get a technologist or should it who what what do I need at a very minimum? Okay, first thing you need to have is an accountant,

Randall Thompson: 

a salesperson

Dr. Jon: 

and a salesperson. Okay, yeah,

Randall Thompson: 

the office ends of the spectrum you remember the first part of it?

Dr. Jon: 

Right? Right. So we can train your technical people, or we can even train people who are, you know, you know, can work with their hands. I think you were looking for people with mechanical aptitude. Um, sometimes what happens if you, if you go out and you try to find people out in the marketplace? And they have one particular way they’ve done it they have they have lots of bad habits

Randall Thompson: 

Oh, yeah.

Dr. Jon: 

And, and because they’re in different areas and sometimes in some people may have been successful in one area with a very narrow focus, and then now they’re trying to do the whole thing. And then they’re trying to put together in a Frankenstein sort of way and entire flow, and they’ve never done it before, you’re gonna, you’re gonna, that that takes the risk, and brings it way up.

Randall Thompson: 

Absolutely.

Dr. Jon: 

Lots of failure. Yeah. And if you don’t believe me, just ask the accountant, because he’s going to be looking at the business, the actual business of how you’re running the place. And if

Randall Thompson: 

there’s a difference between capital investment and operation expense, okay, so capital expenses, how much does it cost for your facility for your equipment, and those are the things you need to invest in, or lease. lease the building, lease the equipment, whatever, but then you also have your daily operating expenses, the cost that you know, for and running. And even though like a co2, you mentioned, co2 extraction is a little more expensive for that equipment than the ethanol equipment. But your operating costs are so vastly lower running co2 than ethanol. It’s crazy. You mentioned earlier about, you know, that we use very little bit of ethanol, right? What is a rule of thumb, you would need to run ethanol or extract with ethanol?

Dr. Jon: 

Well, 10 times, 10 to 1. 10 gallons for one pound. six to 10. And most people use 10. So this is what I this what I’ve heard, yeah, yeah.

Randall Thompson: 

I mean, if you’ve got an idea of what that is, let us know. Because

Dr. Jon: 

I’d love because it’s going to be a run on on our calculators, it’s arranged. You can just put in whatever you’d like.

Randall Thompson: 

Is that one of the hidden assumptions?

Dr. Jon: 

No, it’s in there.

Randall Thompson: 

Oh. I thought I won something. Yeah. Dang it. So that gives you an idea. And the cost for ethanol? Again, we’ve talked about that in the past is still somewhere north of 30 bucks, right? for food grade ethanol. Right. Right. Right. And so that’s per gallon. Yeah. Right. Yeah. And what does it cost for a gallon of co2?

Dr. Jon: 

Right? I mean, yeah, so co2, actually a pound to see the to about four cents, okay. And a pound of ethanol, say about, you know, five, six bucks.

Randall Thompson: 

So I always get the volume and mass I have to do. But anyway, that’s crazy. So that, again, is how you’re going to make money is by focusing on what your operational costs are.

Dr. Jon: 

Okay. But that’s not the only cost that are really important here. And this is where people really start to stress shake their head, and this is where the accountants come in, they are going to be focusing on the inventory, because the inventory is really what is, that’s where all your cash is going to.

Randall Thompson: 

That’s where you wonder where the cash went and where it is. It’s sitting in inventory throughout your process.

Dr. Jon: 

Yes, exactly. And by the way, that’s not on your income statement.

Randall Thompson: 

No

Dr. Jon: 

okay. It’s, it’s, it’s on your it’s an expense, that doesn’t hit your income statement. So you can’t deduct it.

Randall Thompson: 

And so it’s not like, okay, whip, it’s work in progress. Yes,

Dr. Jon: 

it’s whip, it’s on your inventory. So you’re paying, you know, essentially, you’re paying, you know, you’re paying for that, and you’re not getting any business deduction for it. So that’s why a lot of people at the end of the year, they have write downs and things like that. But when you look at this workflow that we’re showing you here, you really need to, it’s it’s more than it’s more than just okay, what equipment I get my going to put together. If I have a guy who has just never put it all together before and hasn’t looked at it from the standpoint of inventory hasn’t lived out and stand in terms of operating cost, hasn’t paid the bills hasn’t, you know, hasn’t actually, you know, doesn’t have information and is trying to figure out what to do upstream and downstream, then then you do need help you need help with for people who not to do that. And I would say that, even I mean, we’ve been in this doing this for a long time, we’re always evolving, always. It’s always it’s always kind of getting better and better and better. And we’re learning things. So it’s not like some it’s not like you can take like we have an entire team. Yeah, you know, yeah. 20 people working on this full time. So keep that in mind, guys. I mean, we’re here to help you. So that’s

Randall Thompson: 

that’s and we’re in r&d facility. That’s what we call ourselves here because we processed so we can solve more problems for you. And then we convey that information to you.

Dr. Jon: 

Right,

Randall Thompson: 

that’s what we do.

Dr. Jon: 

So moving on then to the overall you know, I look I got a lot of people have a lot of solvent that they have to remove and this is across many industry but if you are doing ethanol For example, you need to you need to have you need to remove all that solvent if you’re doing DrainDroyds. If you’re doing any kind of nonpolar process, you’re gonna have to have some way to remove the solvents in a safe way. So the fracTRON really is a it fills that bill

Randall Thompson: 

huge

Dr. Jon: 

and it does a great job. And it’s it’s like nothing else on the market. And this kind of like, stuff that we do. Yeah, it is nothing else on the market is like that. It’s a three stage independently addressable temperature and pressure, it’s under vacuum, it’s under co2, counterflow. Nobody does this stuff, okay, nobody does this stuff. And it’s super efficient. And it gives you a lot of flexibility to take out a lot of fluids without having to do multiple runs again, and again, and again. And again, a lot of people out there have built small pieces of equipment, and they say, Okay, well, this, this equipment will run at, you know, 100 gallons per minute, but you have to do it like three, four times. Okay, what’s the point of that? Yeah, you know, so we, when we make equipment for ourselves, and you know, in our own use, and then also for our customers, we want to make sure that everything’s working together, you know, properly.

Randall Thompson: 

Yeah, absolutely. And the that is the biggest bottleneck that comes up as if you’re using rotary evaporators. For that solvent removal, It’s slow,

Dr. Jon: 

right

Randall Thompson: 

Very, very slow.

Dr. Jon: 

Right. So a lot of people are using these falling films.

Randall Thompson: 

Yep.

Dr. Jon: 

And they’re finding out okay, well, hey, this plugs up, or they have to do it three times in order to get it or have to do post post decarboxylation. And all this stuff. So there, it’s not, it’s not as clean as, okay, rolling this piece of equipment and removes that is all for me. So, the fracTRON is, is close, I think if you can really do a lot of things with it. So, you know, in you can configure it. So,

Randall Thompson: 

and again, it’ll flow through, you know, what, 20 to 40 gallons an hour.

Dr. Jon: 

Yeah, that’s a lot.

Randall Thompson: 

That’s, a lot, then it’ll, it’ll go

Dr. Jon: 

in a single pass. I mean, you know, one pass,

Randall Thompson: 

right. so a little more expensive for capex, right. But your flow through no bottleneck, you will, you’re going to be able to just fly, right? That’s huge. It cost savings for operations is giant, right, just using this. And this fracTRON it’s good, integrated system with all of our other gear. But this we’ve got a lot of ethanol plants looking for fracTRON because they’ve got to remove a lot of solvent.

Dr. Jon: 

Yeah. Yeah, it’s basically it’s a distillation tower times three, only they’re independent of, you know, they’re three independent stages.

Randall Thompson: 

Exactly.

Dr. Jon: 

So that’s, that’s pretty cool. That’s awesome. Um, okay. ClearSTILL That’s, that’s basically distillation. We’ve talked a lot about this. We have podcasts on this, we have podcasts on the fracTRON go, we’ll put the podcast. Yeah. And we’ve done a lot on distillation as well. You know, we’ve looked at what the difference is between different types of distillate, you know, like broad spectrum and, and, and just full spectrum, and, you know, and moving to Napa, yeah. Right. isolate, and all of that. So, you know, that’s a part of the flow, you’re gonna have to know how to do it. Of course, training wise, we train all your people, we get you up and running on that. So yeah, that’s that’s that.

Randall Thompson: 

Good. Well, so we’ve got evaporation distillation, and the distillation again, with clear Still, we have found that with you know, a lot of them a lot of you out there areconsidering like single stage, you’re going to need two of them.

Dr. Jon: 

Oh, yeah.

Randall Thompson: 

Right to run two or three times. I mean, you just you got to pass by. And the clearSTILL is a two stage right? wiped film technology, which is awesome. And we’re finding that running through that. We’re our yield is not only faster, but our yield is up 20 to 30%.

Dr. Jon: 

Yeah, I know. I said I don’t know why.

Randall Thompson: 

That is amazing. Talk about a revenue, profit margin, you increase your yield by 20 to 30%

Dr. Jon: 

I think it’s just the way we do the way we do our vacuum. I think that that’s the main thing. Yeah, it really helps out a lot. I mean, the budget basically pulls it through and I can we can maintain a lot lower vacuum in the still itself. So for you techies out there. That’s that’s I think the reason

Randall Thompson: 

so you can you can sell crude oil, winterized oil, yeah. You can sell distillate. Yeah. Should be the full spectrum or broad spectrum. Here’s a

Dr. Jon: 

beautiful picture that I think we’re very nice. Yeah, look at that. That is beautiful. This so look at so good. And there’s there’s a picture of our, of our clear stuff looks

Randall Thompson: 

looks pretty boss.

Dr. Jon: 

This boss, that’s pretty, you know, like, you need to know a lot of these systems that are out there. They’re they’re completely manual, okay? So you want to be able to run a method and control a method and make sure that it’s not changed by your your chemist who want to change things all the time. So that that’s tweak, tweak, tweak, tweak, tweak, tweak, tweak or why are you tweaking that method, it’s doing pretty good. Well You know, that’s what we do. Yeah,

Randall Thompson: 

I need to justify my time. I gotta push buttons.

Dr. Jon: 

You know so yeah, that’s the okay on that roll. So very nice. There’s another one right there. look beautiful that picture. Yeah. You know we we need to get more you know we were doing a bunch of pour videos you know and people love those and I love you Oh

Randall Thompson: 

you are yeah poor yeah so your heat up we do really boss video yeah,

Dr. Jon: 

that’s right James heat up some distillate and then you just pour it or that doesn’t look good. That’s absolutely the case.

Randall Thompson: 

And so over time so that jar of distillate. What happens when it’s no longer warm?

Dr. Jon: 

Okay, so this is CBD. So this will be you know, over 50% for sure. And it’s the reason you can see it kind of riding up on the edge here of the of the jar is just simply because it’s, you know, it’s hot. It’s hot. Yeah. And so when this thing cools down, it will start to precipitate and what’s really cool. We got to do this James is a is a heat one up, and then put a time lapse camera on it and watch it. Cool. We got to do that. Yeah. Can we do that? We watch. James says he’s gonna do that. Yeah, and we should watch it good. Virtual high five. You know, I thought that, you know, you know that. That GoPro that I had? I bet you I think that the it’s on the one of those little discs. I did one of those. You should just check it out. Just see if we can find that. So

Randall Thompson: 

we have a well lit up from below. He will do it professional. Yeah,

Dr. Jon: 

like I just put something in front of there. Yeah. Yeah. Okay. professionalism is better. Okay, well let James do that.

Randall Thompson: 

I love it.

Dr. Jon: 

But we should do that. Anyway, this will crystallize out.

Randall Thompson: 

So those are rotovaps in the background by the way

Dr. Jon: 

they are see the dark stuff in there. And that’s Yeah, that’s all the wax and stuff. Okay, you see this? So this will start to crystallize out in there. I wonder if that’s a little crystal. No, that’s probably the that’s probably the jar some. What are the kind of look like crystals inside there? That’s what it looks like. It starts to grow in the middle and looks like somebody there in the middle. And then you come to the next day. It’s completely opaque. Like overnight.

Randall Thompson: 

It’s like the alcohol bottles at home when you’re growing up. Your parents might mark the bottle. Sure. And the next time they drink it they’re like this tastes a little watered down

Dr. Jon: 

Tastes a little watered down

Randall Thompson: 

gotta get it back up to the line. Oh, sorry.

Dr. Jon: 

Okay, so here we go. Yeah, that’s so that that is that. That’s the beauty of distillate everybody likes distillate they like it. It’s full spectrum. You know, a lot of people want to know, okay, do we have full spectrum in where do we use that? You know, and why would we want to use a full spectrum distillate and what is full spectrum distillate? Okay,

Randall Thompson: 

we did we did do a whole show,

Dr. Jon: 

we did that

Randall Thompson: 

fsd, bsd.

Dr. Jon: 

One thing we one thing just the cliff note version then is a, full spectrum distillate can have full have basically have, you know, full spectrum cannabinoids, it will also have, you know, less than point three THC, right? And you can you can add those gorgeous terps in there to make it true full spectrum. And that’s where really, I think that’s where you get the entourage effect plus the in plus the effect of the minor cannabinoids plus the effect of CBD itself all together into a natural concoction. That thing could be put into a tincture and

Randall Thompson: 

like full beautiful entourage, right, you get all of the health benefits of that you hear about right? From CBD that people want to enjoy. from that. That’s, that’s how you get all of that.

Dr. Jon: 

Right. And you know, so a lot of people are like, Okay, well, why would I ever use isolate then? Well, a lot of people don’t like the taste. That’s true in something like, I’m not gonna take that because it’s not tasting good. So like,

Randall Thompson: 

the biggest growing market for CBD products are boomers. Yeah, people over 60. And they don’t, they’re terrified that the CBD will make them high.

Dr. Jon: 

Right. And so if it tastes like, if it tastes like Hemp, or whatever, they’re like, Oh, this is gonna make me high im not taking anymore.

Randall Thompson: 

And they don’t want it

Dr. Jon: 

Yeah, so you can get the benefits, um, you know, and if it’s formulated properly, and if you take it properly, you will have good bioavailability and if you have good bad availability, it’s gonna get into your, into your system and have its effect. So, you know, that’s just the thing. So it’s a trade off just like anything else. Yeah. But, you know, I mean, you know, some people just will not eat the or imbibe any thing that tastes or even has a hint of hemp or you know, because they think it’s marijuana to make them high.

Randall Thompson: 

But it is good. And you know, part of that education is saying, All right, if there’s the .3% THC, that’s the level, at least that’s domestic that’s in North America, in Europe, it’s .2% in Asia. It’s .1%.

Dr. Jon: 

Wow.

Randall Thompson: 

Yeah.

Dr. Jon: 

And so that’s really difficult,

Randall Thompson: 

but you got to make sure you know where you’re selling And how you’re selling that those are things to consider as well. But what happens is the THC will open up the receptors in your brain and throughout your body and in your cells to accept the cannabinoids that are there. And that full entourage of the benefits of the terpenes as well, right, we’ll get into your system, but you need that opening that the THC provides. That’s at least what I read. Right, right. Sounds good. And I stayed in the Holiday Inn Express.

Dr. Jon: 

All right. Once all right, all right. Okay, so I’m in there’s, this is where, you know, kind of, you have a workflow process, and you get into isolation, you get into separations, those, those are advanced processes for, for making your, your different kinds of broad spectrum or isolate. And

Randall Thompson: 

we were talking about full versus broad and really broad spectrum is the same stuff as full spectrum without the T with non detectable THC. Correct?

Dr. Jon: 

Right. Right.

Randall Thompson: 

So that’s it, and then you go into the isolate, right, which is just all CBD.

Dr. Jon: 

Right, right. Exactly. Going back to the question on evaporation? Uh, yeah, I mean, evaporation, you know, the fracTRON. Yeah, it does a really great job. I mean, it’ll go down to 5000 ppm, or less of ethanol. So just just to let you know that that’s kind of like a standard benchmark, if you think about it,

Randall Thompson: 

5000 parts per million. So that’s tiny.

Dr. Jon: 

Yeah, it’s very, very low. And yes, you can use it for D carbon, in the third, the third vessel, okay, the third extractor, or the third vessel there. So, just to answer some of those questions there. Yeah. So isolate is a process that, you know, people are still really working out. Typically, people use nonpolar solvents for that. So you have to have a way to remove the solvent fracTRON is a really great way to do that. You know, in I mean, personally, it we don’t use it, for the standpoint of, like, it’s not that you cannot get a like organic isolate, because of that process because of that. So, of course, a lot of people who are doing, you know, research and things like that, they’re trying to work out a way to get it so that it would be organic. You know, I think that that’s a real would be a really awesome thing, because you can get organic distillate, you can get organic, crude, you can get organic, raw materials, but you really are not able to get an organic, despite the fact people are selling “organic isolate.”

Randall Thompson: 

Yeah, which is,

Dr. Jon: 

it’s, it’s not they’re not gonna pass their. If they had a USDA certificate, they wouldn’t pass it up No. And like if they actually did the audit, so that’s a so that that’s what’s happening there. Yeah, so then, and then we got the separation side, we did a whole, we did a whole thing on that,

Randall Thompson: 

on chromatography

Dr. Jon: 

chromatography, and, you know, you’re really looking at broad spectrum there. And again, these are the feedstocks for your end products, right. So your broad spectrum, your isolate your distillate, give you feedstocks, and then and then you’re going to really going to have to look at your packaging. This is something that we haven’t really talked about, it’s probably a good topic for us in the future. There are innumerable headaches in the packaging world, oh, and a lot of people just like, Oh, I’m going to buy this from China, or I’m going to buy this from this particular supplier. And they don’t have specifications. They don’t know anything about you know, you know, how to really specify it, they’re like, oh, okay, they come up with a good example was all the, you know, vapor pens that have been out on the market. Just you know, a lot of them leak, you know what I mean? So you got you have a hole you make up 1000 of them something like that they sit on the shelf and then you know, they’re waiting to go they get shipped out and then you start getting returns because because of a leak because of leaking Yes. So not all pens are equal you get what you pay for guys. So if you’re going to pay 30 cents for for one of them, you know expect them to leak basically, but there’s a lot of other things there that you need to think about relative to the materials and what’s in those in those things. What we should do maybe is you know, do some autopsies on some old ones.

Randall Thompson: 

That sounds like fun

Dr. Jon: 

we should do that but you know, look at the coils and their difference and coils and ceramics and stuff like that. But look whether you’re talking about your tincture bottle

Randall Thompson: 

that will be almost as fun as dissecting a frog. I think

Dr. Jon: 

we will do that. We’ll do that. It’ll be fun. detector frog. Oh, no, we’re gonna we’re gonna dissect it. We’re gonna dissect it look at little pins and everything. I love it. Yeah. Okay, let’s do that. The Anatomy. Okay, so the teacher bottles a tincture bottle, right? Yeah, Wrong. Wrong, right? He, uh, okay. A, you know, like a vapor pen is a vapor pen, right? No, it’s not it’s there’s there’s more to it than

Randall Thompson: 

Oh, somebody was like sneaking up on you know,

Dr. Jon: 

I was kind of looking at our products over there. And I was like, no, no. Oh, there it is. Right there. So okay, yeah. So that’s something you need to think of also on your bid, we should do more packaging, we will do more packaging ones. They’re coming up.

Randall Thompson: 

This was an awesome show.

Dr. Jon: 

Yeah. Good. All right.

Randall Thompson: 

I love this presentation, the advanced bio processing workflow and walking, I hope this is helpful for you. Yeah. hemp startup 101. I thought this was really good. We wanted to show you from you know, how the technical works and how the system and process goes. And you know, what solutions you’re bringing at each step of the way, so that you have an understanding of it, and then how you make money solving those problems at each step.

Dr. Jon: 

Right.

Randall Thompson: 

So I think that that was I think we did that.

Dr. Jon: 

Yeah, I think we did that

Randall Thompson: 

And questions are in we we we we tried to answer a lot of them. As we were conversing here. Keep asking the questions. We love that we’re all good. And then what we’re going to do is, I appreciate all of your questions being here. And again, introduce yourself, keep going, there will be a replay. So don’t hesitate with that. Right. Thank you again to Tim brew Baker who won last week. That’s good. The the resources, all of these calculators stuff are on our website. Yeah. E x tra K t LAB.com. We should make that sound. Good. That would be cool. All right. So and there is the live demos will be cool. So check those out. Yeah, there might be a reward for some live demos.

Dr. Jon: 

Yeah, you know, you know, we’re putting we’re putting them up there. And we have most all of them done, you know, so the, that’s the there’s there’s two different varieties. There’s the live live demo, you know, in front of it. And then there’s also the ones where you can just, you know, go and it’s like a tour, I guess it’s a product tour. better way to think about it.

Randall Thompson: 

There you go. So we’re, we’re happy to do that. Thank you for being here. I appreciate the questions. Appreciate you being here. Next week, we did talk about doing, you know, per show on Delta eight. And we also talked about the fact that the IGW lab and the process flow of all of these gets managed that way. So we were going to talk about the paperless workflow.

Dr. Jon: 

That’s all on deck.

Randall Thompson: 

It’s all on deck. So that’ll be in the next couple of shows. So Be there or be square Yeah, we’re good. Thank you. Again, live tour is scheduled your CBD jam sessions, talk to our bots stump our bot in you know, our guys are there ready to answer all of your questions, the calculator, library, mini courses, everything are there. And we will see you next week. share this with your friends bring people in we love having you subscribe to YouTube. And and we’re good. All right. Oh, thank you.

Dr. Jon: 

Thank you Good. Are we off?

Randall Thompson: 

No, we’re hot mic. It’s always a hot mic

Dr. Jon: 

I need hot coffee. Yes.

Randall Thompson: 

I offered my guy. Well, no, I don’t need more coffee.

Dr. Jon: 

Oh boy. That was good.

CBD Jam Session: 

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