Players Network Inc. (fka PNTV)

[lesgetrich]

Federal and state taxes are part of the cost of doing business for all MJ growers and are factored into the retail price of the products. The real profit (and ultimately retail price) differential comes from other business expenses which are not tax deductible for MJ companies. However, they are allowed to deduct cost of goods sold (COGS), which is the price they pay for their inventory. By setting up cultivation in a separate company, they get to deduct all the production costs as COGS.