A capital-intensive service model
Mass spectrometers and chromatography systems require significant capital and carry maintenance, calibration and consumable costs that must be planned. Depreciation strategy and financing structure materially affect reported results.
- Instrument acquisition, financing and depreciation planning
- Consumables, reference standards and calibration cost tracking
- Accreditation and proficiency testing cost management
- Facility build-out treated as leasehold improvement
Cost per sample and capacity utilization
Laboratory economics come down to throughput. We calculate cost per sample by test type, track capacity utilization by instrument, and identify where turnaround commitments are being met with overtime rather than capacity.
Revenue recognition and receivables
Revenue is recognized when testing is performed, not when samples arrive. Because a lab's customers are cannabis operators with their own cash constraints, receivables discipline is a genuine risk management function.
Tax profile
A testing laboratory generally does not traffic in the controlled substance, so it may deduct ordinary business expenses like any other Missouri service company. That position should be documented, particularly where a lab shares ownership with plant-touching entities.
Frequently asked questions
Are Missouri testing labs subject to 280E?
Generally not, because a lab provides analytical services rather than selling cannabis. Common ownership with licensed operators warrants a documented analysis.
How should instrument purchases be structured?
That depends on cash position, financing terms and the depreciation benefit available. Because labs can deduct normally, depreciation planning has real value here in a way it does not for plant-touching operators.
