KindlyMD(TM) Submits Comment to the Department of Justice Regarding Cannabis Rescheduling
KindlyMD (NASDAQ:KDLY) has submitted a comment to the U.S. Department of Justice regarding the proposed reclassification of cannabis from Schedule I to Schedule III of the Controlled Substances Act. The company welcomes this potential change, which aligns with the growing recognition of cannabis's medical benefits. Key points:
1. Reclassification does not legalize marijuana federally.
2. It may reduce patient costs for medical cannabis products.
3. Cannabis businesses could deduct more expenses, potentially adding significant amounts to their balance sheets.
4. The change creates a more favorable business environment for KindlyMD, possibly enabling service expansion and reduced operational risks.
5. KindlyMD's integrated healthcare model remains relevant, particularly in providing medical cannabis education and evaluation in Utah.
KindlyMD (NASDAQ:KDLY) ha presentato un commento al Dipartimento di Giustizia degli Stati Uniti riguardo alla proposta di riclassificazione della cannabis da Schedule I a Schedule III del Controlled Substances Act. L'azienda accoglie con favore questo potenziale cambiamento, che si allinea con il crescente riconoscimento dei benefici medici della cannabis. Punti chiave:
1. La riclassificazione non legalizza la marijuana a livello federale.
2. Potrebbe ridurre i costi per i pazienti per i prodotti a base di cannabis terapeutica.
3. Le aziende operanti nel settore della cannabis potrebbero dedurre più spese, aggiungendo di fatto somme considerevoli ai loro bilanci.
4. Il cambiamento crea un ambiente commerciale più favorevole per KindlyMD, permettendo potenzialmente un'espansione dei servizi e una riduzione dei rischi operativi.
5. Il modello integrato di assistenza sanitaria di KindlyMD rimane rilevante, soprattutto nell'ambito dell'educazione e valutazione della cannabis terapeutica nello Utah.
KindlyMD (NASDAQ:KDLY) ha presentado un comentario al Departamento de Justicia de EE. UU. con respecto a la propuesta de reclasificación del cannabis de la Schedule I a la Schedule III de la Ley de Sustancias Controladas. La empresa da la bienvenida a este posible cambio, que se alinea con el creciente reconocimiento de los beneficios médicos del cannabis. Puntos clave:
1. La reclasificación no legaliza la marihuana a nivel federal.
2. Podría reducir los costos para los pacientes de productos médicos de cannabis.
3. Las empresas de cannabis podrían deducir más gastos, lo que potencialmente añadiría cantidades significativas a sus balances.
4. El cambio crea un entorno empresarial más favorable para KindlyMD, posiblemente permitiendo la expansión de servicios y reduciendo los riesgos operativos.
5. El modelo integrado de atención médica de KindlyMD sigue siendo relevante, especialmente en la educación y evaluación del cannabis medicinal en Utah.
KindlyMD (NASDAQ:KDLY)는 미국 법무부에 대한 코멘트를 제출하여 대마초를 마약류 관리법의 Schedule I에서 Schedule III로 재분류하는 제안에 대해 의견을 제시했습니다. 회사는 대마초의 의료적 이점에 대한 인식이 증가함에 따라 이 잠재적 변화를 환영합니다. 주요 사항:
1. 재분류는 연방 차원에서 대마초를 합법화하지 않습니다.
2. 의료용 대마초 제품의 환자 비용이 줄어들 수 있습니다.
3. 대마초 기업은 더 많은 비용을 공제할 수 있어 잠재적으로 상당한 금액을 재무제표에 추가할 수 있습니다.
4. 이 변화는 KindlyMD에 더 유리한 비즈니스 환경을 조성하여 서비스 확장과 운영 리스크 감소를 가능하게 할 수 있습니다.
5. KindlyMD의 통합 건강 관리 모델은 특히 유타주에서의 의료용 대마초 교육 및 평가 제공에 있어 여전히 중요합니다.
KindlyMD (NASDAQ:KDLY) a soumis un commentaire au Département de la Justice des États-Unis concernant la proposition de reclassification du cannabis de la Schedule I à la Schedule III de la Loi sur les Substances Contrôlées. La société se réjouit de ce changement potentiel, qui s'aligne avec la reconnaissance croissante des bienfaits médicaux du cannabis. Points clés :
1. La reclassification ne légalise pas le cannabis au niveau fédéral.
2. Cela pourrait réduire les coûts pour les patients concernant les produits de cannabis médical.
3. Les entreprises de cannabis pourraient déduire davantage de frais, ce qui pourrait ajouter des montants significatifs à leurs bilans.
4. Ce changement crée un environnement commercial plus favorable pour KindlyMD, ce qui pourrait permettre une expansion des services et réduire les risques opérationnels.
5. Le modèle intégré de soins de santé de KindlyMD reste pertinent, notamment pour fournir une éducation et une évaluation sur le cannabis médical dans l'Utah.
KindlyMD (NASDAQ:KDLY) hat einen Kommentar an das US-Justizministerium bezüglich des Vorschlags zur Reklassifizierung von Cannabis von Schedule I zu Schedule III des Controlled Substances Act eingereicht. Das Unternehmen begrüßt diese potenzielle Änderung, die mit der wachsenden Anerkennung der medizinischen Vorteile von Cannabis übereinstimmt. Wichtige Punkte:
1. Die Reklassifizierung legalisiert Marihuana nicht auf Bundesebene.
2. Es könnte die Kosten für Patienten bei medizinischen Cannabisprodukten senken.
3. Cannabisunternehmen könnten mehr Ausgaben abziehen, was potenziell erhebliche Beträge zu ihren Bilanzen hinzufügen könnte.
4. Die Änderung schafft ein günstigeres Geschäftsumfeld für KindlyMD, was möglicherweise die Dienstleistungserweiterung und die Verringerung der operationellen Risiken ermöglicht.
5. Das integrierte Gesundheitsmodell von KindlyMD bleibt relevant, insbesondere bei der Bereitstellung von medizinischer Cannabisbildung und -bewertung in Utah.
- Potential reduction in patient costs for medical cannabis products
- Possible improvement in cannabis businesses' financial positions due to increased expense deductions
- More favorable business environment for KindlyMD, potentially enabling service expansion
- Increased relevance of KindlyMD's integrated healthcare model in the evolving regulatory landscape
- None.
Insights
The proposed rescheduling of cannabis from Schedule I to Schedule III is a significant development for the medical cannabis industry, but it's important to understand its implications. While this change doesn't legalize cannabis federally, it does acknowledge its medical potential and could have far-reaching effects on businesses like KindlyMD.
From a legal standpoint, the most immediate impact would be on tax deductions. Currently, cannabis businesses face severe limitations under Section 280E of the Internal Revenue Code, which prohibits tax deductions for businesses trafficking in Schedule I or II substances. Rescheduling to III would allow these companies to deduct ordinary business expenses, potentially leading to
However, it's important to note that cannabis would remain a controlled substance, subject to federal regulations. Companies like KindlyMD must continue to comply with various federal laws, including:
- Controlled Substances Act (CSA)
- Bank Secrecy Act (BSA)
- Anti-Money Laundering (AML) regulations
This rescheduling could also impact research opportunities. Schedule III substances are generally easier to study, potentially leading to more clinical trials and a better understanding of cannabis's medical applications. For KindlyMD, this could mean enhanced ability to provide evidence-based recommendations to patients.
While this development is promising for the industry, it's not a panacea. Companies must remain vigilant in compliance and continue advocating for further reforms to fully realize the potential of medical cannabis.
The proposed rescheduling of cannabis to Schedule III could have substantial financial implications for KindlyMD and the broader medical cannabis industry. The most immediate impact would likely be seen in the company's tax structure.
Currently, Section 280E of the Internal Revenue Code prevents cannabis businesses from deducting ordinary business expenses, resulting in effective tax rates as high as
This improved cash flow could have several positive effects:
- Increased R&D investment, potentially leading to new product development
- Expansion of services and market reach
- Potential price reductions for patients, improving affordability and access
- Enhanced ability to attract investors due to improved financial health
However, it's important to note that while this change could improve KindlyMD's financial position, it doesn't fundamentally alter the company's business model or market position. The company will still need to navigate a complex regulatory landscape and compete in an increasingly crowded market.
Investors should also be aware that this potential rescheduling, while positive, doesn't solve all financial challenges faced by cannabis companies. Issues such as access to banking services and inability to list on major U.S. stock exchanges would likely persist until full federal legalization occurs.
In summary, while the proposed rescheduling represents a potentially significant financial boost for KindlyMD, investors should continue to monitor the company's operational performance and market strategy in addition to these regulatory developments.
The proposed rescheduling of cannabis from Schedule I to Schedule III marks a pivotal shift in U.S. drug policy, with far-reaching implications for healthcare providers like KindlyMD. This change acknowledges cannabis's medical potential, aligning federal policy more closely with the 35 states that have legalized medical cannabis.
For KindlyMD, this reclassification could significantly enhance its operational landscape:
- Expanded research opportunities: Schedule III substances face fewer restrictions, potentially accelerating clinical trials and evidence-based practices.
- Increased legitimacy: Rescheduling may reduce stigma, encouraging more patients to consider medical cannabis as a treatment option.
- Improved insurance coverage: While not guaranteed, rescheduling could pave the way for insurance companies to cover medical cannabis, dramatically increasing accessibility.
However, challenges remain. The rescheduling doesn't automatically standardize state laws or resolve conflicts between state and federal regulations. KindlyMD will need to navigate a complex, evolving regulatory environment.
Moreover, this change could attract more competition to the medical cannabis space, including from traditional pharmaceutical companies. KindlyMD's integrated healthcare model, combining conventional and alternative therapies, may provide a competitive edge in this evolving landscape.
The rescheduling also aligns with broader healthcare trends, such as the focus on alternatives to opioids for pain management. As a company specializing in pain management strategies, KindlyMD is well-positioned to capitalize on this shift.
In conclusion, while the rescheduling presents significant opportunities for KindlyMD, success will depend on the company's ability to adapt to regulatory changes, maintain its innovative edge and continue prioritizing patient care in an increasingly competitive market.
SALT LAKE CITY, UT / ACCESSWIRE / July 25, 2024 / KindlyMD, Inc. ("KindlyMD" or the "Company") (NASDAQ:KDLY), a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies, announced today that it has submitted a comment to the U.S. Department of Justice, following its recent proposed rule to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act ("CSA"), consistent with the view of the Department of Health and Human Services ("HHS") that cannabis has a currently accepted medical use as well as HHS's views concerning cannabis abuse potential and the level of physical or psychological dependence.
For the past 54 years, cannabis has been categorized as a Schedule I controlled substance under the Controlled Substances Act. Schedule I drugs, substances or chemicals are defined as drugs with no currently accepted medical use and a high potential for abuse.
KindlyMD submitted its comment electronically ahead of the July 22, 2024 deadline via the Federal eRulemaking Portal using the reference: "Docket No. DEA-1362." The full text of the Company's comment is included below.
KindlyMD CEO and Corporate Statement on Cannabis Reclassification:
KindlyMD welcomes the proposed rule to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act. This reclassification represents significant progress in aligning federal policy with the growing recognition of the medical benefits of cannabis and the validity of the model of healthcare delivered by KindlyMD. However, it is important to clarify what this potential change does and does not mean for our industry.
First and foremost, the reclassification does not make marijuana legal, as it remains an illegal substance under federal law. KindlyMD will continue to comply with all applicable federal laws relating to controlled substances, including the CSA, the Bank Secrecy Act (BSA), and the Anti-Money Laundering (AML) prohibitions.
The reclassification to Schedule III is expected to have several positive impacts on the medical cannabis industry. Most notably, it has the potential to reduce patient costs for medical cannabis products. Currently, plant-touching cannabis businesses cannot deduct many of their operating expenses, leading to inflated tax liabilities. The change to Schedule III will allow these businesses to deduct expenses more akin to standard business operations, potentially adding significant amounts to their balance sheets. Some of this savings is expected to pass through to patients in the form of lower cost for medicinal cannabis products. For example, some large operators could see more than
Overall, the rescheduling of cannabis will create a more favorable business environment for KindlyMD and the patients we serve - with the potential to enable us to expand our services, reduce operational risks, and capitalize on new opportunities to enhance patient care and research. While this does not change the illegality of cannabis or change compliance requirements under federal law, the move to Schedule III represents progress.
For KindlyMD, this reclassification underscores the continued relevance and importance of our integrated healthcare model. KindlyMD is among the leaders in providing medical evaluation and pain management services related to treatment recommendations within the medical cannabis program in Utah. KindlyMD healthcare professionals provide patients with medical cannabis education and information to help patients decide whether medical cannabis may be a beneficial alternative treatment option for them. The reclassification is likely to lead to increased access and utilization of medical cannabis among our patients, benefiting KindlyMD through improved patient outcomes, new educational opportunities, and enhanced financial stability.
As the regulatory landscape evolves, KindlyMD will remain a crucial partner for patients seeking alternative and integrative healthcare solutions, particularly in our ongoing battle against the opioid epidemic.
In conclusion, KindlyMD remains committed to supporting the regulated cannabis industry through these changes. Our innovative approach and deep industry expertise position us uniquely to continue providing essential healthcare services, ensuring the growth and success of our patients and the broader community.
About KindlyMD
KindlyMD™️ is a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies to offer patients comprehensive care and reduce the addiction and dependency of opioid use in the U.S. KindlyMD currently operates four centers including the largest alternative pain treatment center in Utah. With a focus on holistic pain management through its specialty outpatient clinical services, including, where appropriate, the recommendation of medical cannabis by KindlyMD healthcare providers, KindlyMD is providing better patient health outcomes.
For more information, please visit www.kindlymd.com.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including, but not limited to, the statements made under the heading "Risk Factors" in KindlyMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. KindlyMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.
Investor Relations Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
(212) 896-1254
kindlymd@kcsa.com
SOURCE: KindlyMD, Inc
View the original press release on accesswire.com
FAQ
What is KindlyMD's stance on the proposed cannabis rescheduling?
How might the rescheduling of cannabis affect KindlyMD's business (KDLY)?
Will the reclassification of cannabis to Schedule III make it legal?
What potential benefits could the cannabis rescheduling bring to patients and businesses?
