DigiPath Labs, the cannabis testing subsidiary of DigiPath, Inc. recently announced that its medical marijuana safety and potency testing services are generating revenue as medical marijuana dispensaries open in Nevada. The company’s Las Vegas testing facility is now testing cannabis products for a growing number of cultivators, cannabis-infused product makers, and even other cannabis testing labs.

“We’ve been working on our diversification strategy since April, 2014, and now our investments in cannabis testing are starting to pay off,” said Todd Denkin, DigiPath Labs’ CEO. Over the last year, Denkin helped DigiPath, Inc., diversify from a global digital pathology solution provider into the burgeoning American cannabis industry. Its DigiPath Labs subsidiary now offers full-service, independent cannabis testing and consulting in the State of Nevada.

The company is also working to establish labs in other states where cannabis is legal, but started in Nevada because of it stringent testing requirements. Future labs will be based upon the model created in Las Vegas.

Las Vegas could become one of the largest medical marijuana markets in the country because Nevada allows dispensaries to sell marijuana to patients from other states as long as they possess a medical cannabis card or doctor’s recommendation. To serve the residents and the 42 million visitors who come here every year, The Nevada Division of Public and Behavioral Health estimates the demand for cannabis next year will be 459,000 pounds, all of which will be subject to Nevada’s testing requirements prior to sale.

State voters, including 118,537 current cannabis users, will vote on legalizing recreational marijuana use in November of next year. If passed, it could create a cannabis market of between $150 million and $300 million in sales, factoring in tourists, according to the financial education publication NerdWallet.