Steep Hill Labs

About Steep Hill Labs

Steep Hill, Inc. positions itself as a science and technology company specializing in the analysis and testing of medical and adult-use cannabis. The company commenced operations in late 2007, establishing the first commercial cannabis laboratory in the United States. It was founded by David Lampach, Addison DeMoura, and Steve DeAngelo to address the need for standardized safety and quality testing in the burgeoning legal cannabis market. Lampach's background includes time as a Wall Street trader and a grower before co-founding the lab.

The core of Steep Hill's business is providing analytical testing services for cannabis growers, processors, and retailers to ensure their products comply with state-mandated public safety standards. This includes analyzing samples for active compounds like THC and CBD, microbiological contamination, pesticides, and residual solvents. The company serves a client base of licensed cannabis cultivators, manufacturers, and retailers in legal markets. Its business model has evolved from owning its own labs to a licensing model, which allows local partners in different states and countries to operate under the Steep Hill brand, using its proprietary methods and standard operating procedures (SOPs). This franchising-like approach facilitates expansion while aiming to maintain consistent testing standards across diverse regulatory environments. The company's revenue is generated from these testing services and licensing fees from its partners.

Steep Hill provides a comprehensive suite of services including potency testing, contaminant screening, and moisture content analysis. A notable product developed by the company is the QuantaCann, an on-site diagnostic machine that delivers potency and moisture information in approximately 60 seconds. This allows for rapid analysis without the need to send samples to a full-scale lab. Another proprietary product is the GenKit, a tool for growers that genetically identifies the sex of young cannabis plants, enabling the early removal of male plants to optimize crop yields. The company also engages in research and development, contributing to the understanding of cannabis genetics and chemistry, and consults with state regulators to help shape testing legislation. Having expanded into numerous states via licensing agreements, Steep Hill has established a significant footprint across the U.S. and has pursued international partnerships.