The Nevada Department of Taxation has decided to replace MJ Freeway’s Leaf Data Systems with Franwell’s METRC system for tracking cannabis inventory in the state.
The switch will be official Nov. 1, Forbes reported, but Nevada cannabis companies can still utilize MJ Freeway software to send their data to Franwell’s Marijuana Enforcement Tracking Compliance system.
According to Forbes, the contract is worth approximately $816,000 to Franwell.
Nevada MJ companies were notified via email of the change, but no reason for the switch was given. A spokeswoman for the Department of Taxation didn’t respond to Marijuana Business Daily‘s request for comment.
MJ Freeway won a contract with Nevada in March 2016, and the $603,393 deal was supposed to last five years.
MJ Freeway has endured much turmoil in the past year. Its system crashed in January, which caused major business headaches for cannabis companies that relied on its point-of-sale software. Then in June, some of the company’s source code was stolen and posted online.
Interestingly, the Nevada situation is almost the reverse of what happened in Washington state. In June, Franwell won a bid to replace BioTrackTHC but then pulled its bid and was replaced by MJ Freeway.