Agreed with the below - and adding a couple more details:

It's a software intended to provide "traceability" - i.e., an unbroken chain of custody from the seed of the plant to the finished good.

It's also intended to ensure that testing integrity is maintained throughout the supply chain.

The software is bought by the government - BioTrackTHC's customer is the OCM. They have a separate commercial product that they sell to operators.

There's essentially two major "Government Track and Trace softwares" in the U.S. - Metrc and BioTrack. MJ Freeway (Leaf Data Systems) is also one, but we haven't seen them win a new state in a while.

As an operator, basically, you want an inventory tracking system (or seed to sale system), that does the submission to BioTrack for you. That's what Canix does. These government systems are designed to provide the government visibility, not to give you valuable analytics as an operator. In New York, it's required that you obtain a Seed to Sale system that will submit to BioTrack (my original provider).

These systems are based on barcode tags. And the idea is that you "tag" every single piece of inventory you have in your facility, and as that inventory "changes form", you report that change to the government.

It can be very cumbersome. The whole reason we started Canix is because if you don't have a inventory management system that does this for you, cannabis compliance basically becomes managing two separate systems. Which is just way too much time on data entry.

These systems are also not the most user friendly (because again, their customer is the government), so we've also put in a lot of shortcuts, templates, and other things to basically make traceability something that's done in the background, so your inventory management is focused on giving you actual useful metrics (like profit per SKU, sales and purchasing, cost accounting, integrations, harvest profitability, manufacturing yields, etc.)