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The Cannabusiness Key
March 20 at 12:00 pm EDT
As we settle into our new normal in the age of the coronavirus, we’ve decided to postpone our upcoming webinar scheduled for March 20th with Michael Harlow from Cohn Reznick. We look forward to a rescheduling this event soon and we will email you and post the updates on social media as soon as we set that up. In the meantime, we wish you, your business and your community the best in the midst of the chaos going on around all around us. Remember that while these may be unprecedented times we have, as a community and as a country, navigated many crises in the past and that this too shall pass.
Wishing you the best,
Hosted by Offit Kurman and featuring Cannabis Practice Group attorneys and experts from outside the firm this monthly, hour-long webinar series addresses operational and legal issues affecting those in legalized cannabis industry. The series is designed for applicants for, and operators of, legal cannabis businesses as well as business owners and service providers servicing the industry. Sign up here to receive email invitations to The Cannabusiness Key in your inbox.
5 Key Finance and Tax issues That Cannabis Clients Zero in on as They Mature
Cannabis company business plans must focus on raising capital in order to accelerate brand awareness and generate market share as fast as possible. As the industry and markets mature, sophisticated operators are pivoting to focus on efficiency, organization and professionalization of their management team.
- Cash Reporting: Completing Treasury required filings of 8300 disclosure statements for cash transactions over $10,000 has proven to be much more challenging than most operators anticipate. Treasury has begun to respond to incomplete and inaccurate 8300 filings. How should operators respond to avoid bigger issues in the future?
- Fixed Asset Accounting: Acquisition and buildout of cultivation facilities represents the largest single expenditure for most operators. Unlike other manufacturing companies, cannabis companies do not qualify for bonus depreciation, which significantly increases taxable income. How can operators maximize depreciation of production assets and qualified cost of goods sold deduction with proper accounting and record keeping?
- Gain on Sale of Property: Operators across the country are turning to sale-lease-back transactions to finance expansion but most operators are not focused on the tax impact related to the gains generated by these transactions. Learn how sophisticated operators are structuring these transactions to minimize the taxable gain.
- Convertible Debt Instruments: More investment funds are coming on-line offering debt to the industry, often with equity conversion options. We will discuss the finance and tax impact of these financing deals.
- Brand/Royalty Agreements: Cannabis companies are turning to branding and royalty agreements as a way to expand into new markets without having to secure new state licenses. Non-plant touching companies are also creating cannabis brands without securing state licenses dramatically reducing their regulatory burden and cost of capital related to building production facilities and holding inventory. Hear about ways to structure these deals to maximize success.
About Michael Harlow
Michael Harlow is a partner and the Co-Practice Director for the DC Metro Tax Practice for CohnReznick. As such, Michael enjoys working with a variety of clients across the Washington region. He has more than 15 years of experience in public accounting serving clients in attestation, accounting, and tax advisory roles Michael has extensive experience across multiple real estate-related industries including homebuilding, land development, residential management, commercial management, and land engineering.
For the past three years Michael has focused his efforts on growing the tax services of the CohnReznick Cannabis Practice. The CohnReznick Cannabis Practice services clients across the country in legal adult use and medical markets. He is a Certified Public Accountant in the state of Maryland.
Friday, March 20th
12:00 – 1:00 PM EST
Attorney at Offit Kurman
Jason Klein is a business attorney who focuses on cannabis in tightly-regulated markets on the east coast. Working with direct and ancillary cannabis businesses since 2011, Mr. Klein has a long track record assisting his clients in successfully navigating challenging regulatory and business operating environments amid uncertainty in new marketplaces. Mr. Klein guides cannabis clients through every stage of the business life-cycle, from business formation to sale. Mr. Klein's passion is structuring and negotiating all aspects of buy-side and sell-side M&A deals, including maneuvering through complicated compliance issues and applying traditional solutions to modern problems in ways that bring buyers and sellers together to complete their most important transactions.
The Cannabusiness Key 2019 Archives
12/06/19 - Cannabinoid Clinical Research. Video
11/01/19 - Vaping Crisis. Video
10/04/19 - The Future of Infused Products. Here
06/28/19 - Compliance as a Competitive Advantage. Video
05/21/19 – How to Improve After-Tax Profits for a Cannabis Business. Video
04/05/19 – Hemp Update: Developments since the Passage of the 2018 Farm Bill. Video
03/01/19 – Maryland's New Grower Processor Licences. Video
02/01/19 – Lessons from the Litigator: What Your Cannabis Business Formation Documents Should (and Shouldn't) Say. Video
01/04/19 – New Jersey's Medical Cannabis Program: Past, Present, and Future. Video
The Cannabusiness Key 2018 Archives
12/07/18 – The State of Play of Hemp and CBD Markets. Video
11/02/18 – How Cannabis is Redefining E-Commerce. Video
10/05/18 – Information Technology Issues in the Cannabis Industry: Challenges and Solutions. Video
09/07/18 – Cannabis up North! Regulatory and IP Issues Under Canada's New Adult Use Market. Video
07/20/18 – Brands Built for Expansion: Interstate and International Cannabis Strategy Session. Video
06/01/18 – Tax Reform Act and its Impact on Maryland's Medical Cannabis Industry Owners. Video
05/04/18 – Good Manufacturing Practices (GMP) and Cannabis/Hemp. Video
04/06/18 – The Emerging Role of the Chief Experience Officer (CXO) in the Cannabis Industry. Video
03/02/18 – Canna Business Valuation Methods and Metrics. Video
02/02/18 – Medical Ethics and Patient Advisory in Your Cannabis Business. Video
01/05/18 – How Dispensary Employees Can Effectively Assist Medical Cannabis Patients. Video
The Cannabusiness Key 2017 Archives
11/03/17 – Maryland Medical Dispensary Association. Video
10/06/17 – Medical Cannabis Clinical Trials. Video
09/01/17 – Before You Borrow: How To Avoid Bad Money and Onerous Loan Obligations In Your Cannabusiness. Video
08/04/17 – Real Estate for Cannabis Businesses. Video
07/14/17 – An Ounce of Prevention is Worth a Pound of Cure Commercial Insurance Preparation. Video
06/02/17 – Takoma Wellness Center: Four Years Dispensing Medical Cannabis 300 ft. across Maryland State Line. Video
05/10/17 – Can Medical Cannabis for Pain Really Help with the Opioid-Dependency Epidemic? Video
04/07/17 – Cannabis Policy and Practice in the Trump Era. Video
03/10/17 – Licensing Considerations for Your Cannabusiness. Video
02/16/17 – Pesticide Issues for Your Cannabusiness. Video
01/13/17 – Security Essentials for Your Cannabusiness. Video