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BioCommunique Article

What’s next for the booming market now that the FDA has approved the first cannabis-based drug? Our experts will dive into several critical issues.

Next Breakfast with Biocom Explores California’s “Green Rush”

  • 2018-09-14T18:52:00.000+0000
  • California
  • Author: Lauren Panetta

Our next Breakfast with Biocom on Thursday, September 20th will examine California’s “green rush” and we’re excited to have CohnReznick as our sponsor for this exciting discussion. CohnReznick’s accounting, tax, and advisory services help private, public and venture and private equity-backed life science companies manage financial growth across their life cycle. They continuously track the pulse of the market and understand the risks and barriers that currently negatively impact the industry.

A few months ago, the FDA approved the first cannabis-based drug, an important medical advance and step in bringing new types of treatments to patients suffering from chronic illnesses. With the rapid growth of global cannabis markets and the development of cannabis-based drugs to combat epilepsy and other illnesses, investment in cannabis-based drugs is looking increasingly attractive. However, tax implications, such as U.S. Code Section 280E which prohibits cannabis growers, processors, distributors, and retailers from deducting otherwise ordinary and necessary business expenses from their gross income, can inhibit market growth.

CohnReznick’s extensive first-hand experience with this tax allows them to advise early-stage through mature organizations on how best to navigate the burdens related to 280E. Just recently, they released an informative evaluation of 280E, giving cannabis businesses and interested investors, insight into the expenses that cannot be deducted from taxable income. Currently, these expenses include wages and salaries, utility costs, health insurance, marketing and advertising, repairs and maintenance, business meals and entertainment, payments to contractors, and rental fees for facilities. Furthermore, because of the unknown federal tax liability, non-compliance with 280 will significantly impact future business valuations.

If you’d like to learn more on how your company can prepare for this tax, stay informed on future proposed legislative changes that impact the industry, and hear from a panel of experts from GenCanna, Cure Pharmaceutical, SV Sciences, and CGL, we invite you to join us at our next Breakfast with Biocom. Register today and get ready to learn about the current legal, medical, and regulatory landscape for California life science companies who might just turn this green rush into a gold rush.

The Breakfast with Biocom “Green Rush” panel discussion with include the following industry experts:

Michael Harlow, CPA, Partner, CohnReznick

Garret Bain, Chief Sales Officer, GenCanna Global USA
Robert Davidson, CEO and Chairman of the Board of Directors, Cure Pharmaceutical
Joe Dowling, CEO & CFO, CV Sciences
Jennifer Gumer, Cannabis Compliance Practice Group Lead, CGL LLP

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