AgOps. Vol. 1. Vol Efficient Cultivation Technology for a Changing World. ops.ag. Vol. 1

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1 AgOps Vol. 1 Trends & Methods in Efficient Indoor Cannabis Cultivation Efficient Cultivation Technology for a Changing World Vol Vol. 1 ops.ag

2 Cannabis Controlled Environment Ag (CCEA) Cannabis cultivation facilities are the most advanced in the world. Consistently growing the highest quality crop requires tight environmental controls, optimal efficiency, rigorous quality audits, and maximum square foot utilization. Managing all this can be a challenge unless all components are carefully designed to work together flawlessly. Grownetics leads the industry in efficient cultivation systems and has dropped operating costs over 60%. See our testimonials and University of Colorado affiliated study at grownetics.co Grow Ops Delivered Flora Crop Monitoring & Alerts Live Crop Monitoring, Mapped Interface, Custom Alerts Atmos Crop Directed Automation Strain Specific Environment & Automation Recipes Optima Batch Analytics & Reporting Batch Analytics, Custom Reports, Breeding Tools Observation Crop Monitoring & Alerts Cultivation Grow Automation & Controls Batch Mgmt Batch Planning, Analysis & Reporting CropCircle Enterprise Cultivation Suite Full CEA Facility Optimization, Process Automation, Task Mgmt, Real Time Cross Site Monitoring & Analytics. Grownetics makes tools for modern cultivation facilities. One platform, all sub-systems, real time monitoring, batch analytics, and crop driven automation grownetics.co hello@grownetics.co 2

3 Contents: What is CCEA? Contents Intro to CCEA Goals Grow in Soil or Hydroponics Example Floorplan: CCEA Warehouse Example Floorplan: CCEA Greenhouse Cultivation Systems Flora - Sensing & Crop Monitoring Atmos - Automation & Controls Optima - Batch Management & Analytics CCEA Grow Ops CropCircle - Multi-Site ECS Grownetics Efficiency Study Trends & New Technologies Efficiency Spotlight DSS Lighting Featured Service & Hardware.. Partners Notes grownetics.co hello@grownetics.co

4 CCEA Facility Design Goals Quality & Consistency Efficiency Research & Breeding What it really takes to be successful. The better your CEA facility prep work, the better your outcomes will be. The rapidly dropping wholesale price as well as the serious challenges that come with cultivation and compliance at scale need to be considered. In every industry there are standards that must be met. This is especially true when your product is a living, breathing plant. One that has been cultivated in a multitude of environments from the high mountain deserts of the Himalayas, to the tropical islands of Southeast Asia. Will your GrowOps be dynamic enough to produce consistent quality no-matter the genetic variety being grown? Will you be efficient enough in time and energy to run research and breeding programs of your own? There are many options when it comes to cultivation methods and systems, the key is tuning your facility and operations towards your specific goals. grownetics.co hello@grownetics.co 4

5 Grow in Soil or Hydroponics? Soil has been fundamental for the evolution of the cannabis plant for its entire existence. Soil gives the plant a sturdy foundation on which it can create a strong root base, which is the first step towards healthy plants. Different fungi and mychroriza work to break down all of the usable nutrient elements in a particular soil. Depending on where in the world the plant is located, that soil will be different as well. But plants, like humans, require a steady diet of balanced micro and macro-nutrients to stay healthy and produce the most flower possible. Today, soils range from very basic and inert with almost no nutrient value, to Super Soils that provide all of the nutrition a plant will need for at least the first few weeks. Hydroponics was born from a desire to grow plants where soil was either not available or not convenient. From NASA to classrooms to 30,000sqft hydroponic farms, it has become a highly efficient and productive way to grow plants. In commercial production facilities, Flood & Drain and drip systems are most common and easy to setup. In a flood and drain setup the plants sit in a rockwool cube (which is basically limestone spun like cotton candy). It is in an inert and ph stable media that allows the roots to overtake it and create a strong base without the use of soil. This tray is flooded by a reservoir once or twice a day, depending on the size of the plants and desired growth speed. Another style used commonly employs drip stakes or a drip device and piping from the reservoir, usually in an adjacent room with the dosing machines for nutrients. This system will run anywhere from 1 minute to an hour depending on the size and desired growth schedule of the plant. Most of this water is drained to waste and the reservoir refilled and remixed when empty. Deep water culture systems use a linked together system of large 15 or 30gal buckets. A chiller is commonly used to maintain a water temperature of deg F. The plants in this The Black Hole dripper (pictured above) has large drip holes so less clogging will happen, especially with thicker nutrients. system will be very, very large as well making DWC an efficient system, especially since the water is recycled and not drained to waste. The most common approach is a hybrid one, leveraging hydroponic and soil techniques for a high-output, resilient cultivation. Combining porous soils with a coco coir base allows a living soil to buffer the roots with excellent drainage for regular feeding cycles. grownetics.co hello@grownetics.co 5

6 Example Floorplan: CCEA Warehouse The following floorplans are designed to give a high level overview of the types of cultivation systems you may consider employing. We use a 40,000sqft urban cultivation warehouse and 50,000 sqft greenhouse as our guides to see two common approaches to CCEA cultivation at scale. These are not complete plans but are enough to give a clear picture of cultivation sub-systems. 40,000sqft CCEA Warehouse 40,000sqft Warehouse Cultivation Grownetics Hardware Key: 3D Crop Sensor Array Res Sensor Array Control Servers Network Hub Lighting & Automation Control Panel Site Appliance Key: Fan or Air Venting Equipment Fan Coil Unit Hot & Cold Air Light Dehumidifier grownetics.co hello@grownetics.co 6

7 THREE WIRELESS PANIC DEVICES LOCKABLE SECURITY CLOSET SAFE SECURITY WALK-IN RINSE TROUGH STORAGE NOOK Example Floorplan: CCEA Greenhouse 25' - 0" 15' - 0" 30' - 0" 14' - 10" 17' - 10" 61' - 0" 168' - 0" 251' - 6" 42' - 0" 42' - 0" 42' - 0" 42' - 0" 42' - 0" 42' - 0" 42' - 0" DR LOADING AREA / PREPARATION 101 DR OFFICE 102 NVR SECURITY 17 Processing 103 LOCKER AREA 106 ENTRY / SECURITY POINT 104 RESTROOM 105 Veg 1 Flower 1 Flower 2 Flower 3 Flower 4 DR BREAK ROOM 109 CHANGING AREA / SHOWER 108 CAST IN PLACE RESTROOM CONCRETE 107 VAULT 110 CORRIDOR 19 JANITOR'S CLOSET 111 Dry 113 & Cure Clone & Propagation 112 DR 19' - 9" 19' - 9" 216' - 0" 50,000sqft Greenhouse Cultivation Grownetics Hardware Key: 3D Crop Sensor Array Res Sensor Array Control Servers Network Hub Lighting & Automation Control Panel Site Appliance Key: Fan or Air Venting Equipment Standalone Heating Unit Light grownetics.co hello@grownetics.co 7

8 Cultivation Systems Warehouse or Greenhouse Facility Type + Tight Environmental Controls + Security + Insulation + Location and Logistics + High in Efficiency + Mass Production Oriented + Expandable + Affordable Soil or Hydroponics Grow Medium + Root Buffer + Beneficial Bacteria + Lower Startup Cost + Tried & True + Better Flavor + Tighter Feeding Controls + Highly Automated + No Soil Pests + Recirculating Setup Possible + Faster Growth Nutrients Custom Blend/Nute Teas or Multi-Part Nute Systems + Organic + Beneficial Bacteria + Tried & True + Better Flavor + Consistent Feed Recipes + Proven Results + Clean Accurate Feeding + Many Options Water-Based Chillers or Split Systems HVAC + High Efficiency + Heating/Cooling/Dehum in One + Tight Zone Climate Control + Cost Effective + Scalable & Modular + Widely Available &Serviceable + All-in-one Systems Available Double Ended HID or LED/Induction Lighting + High Efficiency + High Output + Lower Up-Front Cost + Highest Efficiency + Spectral Control + Less Heat Load + Long Bulb Life grownetics.co hello@grownetics.co 8

9 Grownetics Sensing & Crop Monitoring Open Sensor Platform Flora Mapped to Your Grow With Flora high-resolution crop sensing, one grower can monitor massive grow operations at a glance. It is the first open sensor platform designed to integrate any sensor on the market. Flora helps you monitor the micro-climates of your plant canopy in real time. In addition we offer sensing for every input to the plant and facility: reservoir, soil, light, and energy usage are just some of the things we can monitor. For a full list of current sensors please see our website. Air Temp Power Control & Monitoring Humidity CO 2 EC ph Dissolved Oxygen Fill Level Some of our Sensors Water Temp Advanced PAR Sensor grownetics.co hello@grownetics.co 9

10 Grownetics Full Facility Automation & Controls Crop Directed Automation Atmos Integrate All Sub-Systems Atmos is the Grownetics crop directed automation and controls platform. It allows us to integrate all cultivation sub-systems into one control and monitoring platform that can then be controlled via strain-specific recipes. Have zone set points change depending on what is being grown in the zone. Update recipes in real time based on the latest batch analytics coming from the Optima Analytics and Reporting tools. Combined with energy monitoring we can also monitor all facility cultivation equipment. HVAC LED Spectrum HID Light Irrigation Nutrient Dosing CO2 Dosing Universal I/O Platform Some of Our Control Options Fans grownetics.co 10

11 Grownetics Batch Management and Analytics Batch Management Optima Processing & Analysis Optima integrates batch management and individual plant tracking with our high resolution crop sensing. If you can t measure it, you can t improve it. - Peter Drucker Make the tedious process of data collection and correlation a thing of the past. Track every single plants environmental conditions from clone all the way through harvest, dry, and cure. Review top producers historical data to optimize batch recipe s every single harvest. grownetics.co hello@grownetics.co 11

12 CCEA Grow Ops Managing a CCEA Facility & Developing Best Practices Growing high quality Cannabis doesn t have to be complicated but growing it at scale and continually improving quality and consistency can be. To keep things simple remember that all cultivation processes and systems should be aligned with the mission and goals of the company and brand. We built CropCircle, our enterprise cultivation suite (ECS) to help commercial cultivators implement SOPs and continuously share improvements to recipe s and workflows. 1.0 Cultivation & Processing Batch & Strain Management Crop Monitoring Workflow Management 2.0 Pest Mitigation Monitoring for susceptible climate Monitoring for plant health/stress Regular Cleaning & Checks 3.0 Quality Control & GMP Testing & Test Design Statistical Quality Control Good Manufacturing Practices Workload mgmt Worker Oversight CCEA Facility Workflows & Tasks 4.0 Compliance Individual Plant Tracking & Reports Regular Self Audits 5.0 Human Resources Hiring & Training Collaborative Cultivation Tools 6.0 Facility Monitoring & Security Equipment Monitoring & Regular Maintenance Security Systems Security On-Site 7.0 Logistics & Supply Mgmt Inventory & Stocking Purchasing & Receiving 8.0 R&D Breeding Programs and Equipment/Systems Design 12

13 Grownetics Enterprise Cultivation Suite CropCircle Full CEA Facility Optimization, Process Automation, Task Mgmt, Real Time Multi Site Monitoring & Analytics Track every aspect of your commercial grow operations in one place. Track labor and tasks, automate processes and workflows. Share cultivation recipes and best practices across multiple locations. Custom reporting, supply chain management, product pre-sales with option for public facing wholesale website. REAL-TIME 3D CROP MONITORING CROP-DRIVEN AUTOMATION BATCH MGMT & ANALYTICS Flora Atmos Optima Be everywhere at once with our high-resolution crop sensor network. View all your data spatially on a real-time weather map of the micro-climates in your facility. Our future-proof open middleware allows you to connect any sensor you desire. Temp, Hum, PAR, CO2, ph, EC, Dissolved Oxygen, Water Flow... and many more. Control you environment based on what s going on in the canopy of your plants, not the thermostat on the wall. Control spectral recipes of LED lights for greater efficiency and faster harvests. Integrate all facility sub-systems into the most powerful and dynamic CEA automation and hardware monitoring platform. Optimize grow operations with batch management, individual plant tracking, full facility analytics, quality control, and audit scheduling. Integrate task management into batch automation recipe s for labor tracking. One platform, all sub-systems, real time monitoring, batch analytics, and crop driven automation grownetics.co hello@grownetics.co 13

14 Grownetics Efficiency Study University of Colorado associated research team, Entrepreneurial Solutions releases Grownetics savings study Colorado University Research Group Entrepreneurial Solutions breaks down the savings and efficiency gains cannabis cultivators can expect to see when fully optimizing their facilities with Grownetics. The case study breaks down gains into four main categories: Lighting/Energy, Water Usage, and Labor Costs. Read the full study at grownetics.co/news Overall, the study concludes that cultivators can expect cost savings between $444K and $22 Million per year. WATER Grownetics enables water cost savings of 42%-94% when compared to an analog hand watered grow (using ASA Best Management Practices) and an automated grow without Grownetics. Furthermore, Grownetics is able to recapture and reuse 82% of the water in a typical hydroponic system. LIGHTING Dynamic Supplemental Sunlight (DSS) System drops lighting energy cost by 87%-90% when compared to traditional High Pressure Sodium (HPS) grow lights. See more about DSS on page % LABOR SAVINGS With proper integration of the Grownetics system, growers could see significant labor cost savings regardless of the size of their operation. Assuming a harvest size of.75 lbs per plant and 5 harvests per year, the labor cost savings that Grownetics systems enable could account for a margin increase of 1.25%. Comparing labor cost savings to overall cost of production, Grownetics has the potential to deliver a 27.75% decrease in cost of production. These calculations reflect an average $900 cost of production. DATA LOGGING Cannabis growers spend approximately 30 hours per week logging and aggregating data. This amounts to roughly 4.5 hours per day. Growers could save almost 50% of the labor time and cost spent logging and aggregating data by using Grownetics. TOTAL SAVINGS ESTIMATE Grownetics can be easily implemented with grow operations of any size. The chart and table below show the possible savings that Grownetics enables for grow operations between 10, ,000 square feet. grownetics.co hello@grownetics.co 14

15 Trends & New Technologies Hybrid CEA Facilities + Tight Environmental Controls + Security + Insulation + Location and Logistics + High in Efficiency + Purpose Built & Turnkey + Mass Production Oriented + Modular + Root Buffer + Beneficial Bacteria + Better Flavor Minimal Living Soil Blend + Tighter Feeding Controls + Highly Automated + Faster Growth Water based Chillers + High Efficiency + Heating/Cooling/Dehum in One + Tight Zone Climate Control + Cost Effective + Redundant Failover Design + Widely Available and Serviceable + All in one Systems Available LED + Highest Efficiency + Spectral Control + Less Heat Load + Long Bulb Life grownetics.co hello@grownetics.co 15

16 Efficiency Spotlight: Grownetics & DSS Lighting Production Metrics 1st Harvest g / sq ft 0.98 g / watt - total watts 1.76 g /watt - light watts 2nd Harvest approaching grams / sq ft approaching 2-3 grams / watt - light watts Sustain commercial production levels w/ 80% reduction in energy demand! Core System Overview we bring full spectrum sunlight indoors the future of sustainable indoor agriculture drops in available PAR outside trigger increases in LED intensity to ensure consistent canopy light saturation dimmer control LED spectrum & intensity PAR Meter LED Collector captures sunlight, absorbs IR (no heat transfer) Dimmer on-demand blackout Amplifier focus light on canopy LED LED Grownetics grow optimization & intelligence data syncs in cloud back-up, remote access, analysis scripts real-time sensor data log Climate Sensors Air Temp, Humidity, CO2 Levels WiFi Camera Security, Timelapses PAR Meters measure PPFD provided by Solatubes grownetics.co hello@grownetics.co 16

17 Efficiency Spotlight: Grownetics & DSS Lighting 2,500 sqft HPS vs SunGrown Indoor HPS Option 1000W HPS lights w/ 100W Ballast = 1100W/light. 150 HPS lights = 165,000W or 165 kw, on/off only 165 kw x 12 hr cycle ~ 712,800 kwh / year DSS + LED Option 630W LED LX602 lights = up to 630W/light. 50 LX602 remote controlled 291 kw x 12 hr cycle ~ 92,160 kwh / year = 620,640 kwh SAVED / year or $125,000 (@ $0.20/kWh) Drop your COGs without effecting yield or quality Water Metrics Water Used: gal Water Reclaimed: gal Water (re)use 100sqft 24 Grape Ape plants Net Water Used: 58.5 gal 82% of water used was reclaimed Plant: 9.26 gal 8 wk flowering phase ASA BMPs suggests 160 gal/plant grownetics.co hello@grownetics.co 17

18 Grownetics Partners & Additional Resources Full Cultivation Development Management and Consulting ShiftCannabis.com CCEA Systems Consulting & Supply Chain Management FALCON BRIDGE CONSULTING urban-gro.com falcon-bridge.com precisioncultivationcompany.com spanishpeaksdevelopment.com Efficiency Partners & Integrations CCV Research ccvresearch.com carrierwest.com surna.com heliospectra.com grownetics.co 18

19 Notes & Next Actions 19