MariMed Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

NOTE 7 - INCOME TAXES

NOTE 7 - INCOME TAXES

12 Months Ended

Dec. 31, 2016

NOTE 7 - INCOME TAXES

At December 31, 2016, the Company had federal and state net operating loss carry forwards of approximately $3,020,372 that expire in 2037.

Due to operating losses, there is no provision for current federal or state income taxes for the periods ended December 31, 2016 or 2015.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes.

The Company’s deferred tax asset at December 31, 2016 consists of a net operating loss calculated using federal and state effective tax rates equating to approximately $1,403,000 less a valuation allowance in the amount of approximately $1,403,000. Because of the Company’s lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance. The measurement valuation allowance increased by $77,552 and $293,232 during the 2016 and 2015 periods respectively.

The Company’s total deferred tax asset as of December 31, 2016 is as follows:

Deferred tax asset – gross	$	1,403,000
Valuation allowance		(1,403,000	)
Net deferred tax asset	$	—

The reconciliation of income taxes computed at the federal and state statutory income tax rate to total income taxes for the periods ended December 31, 2016 and 2015 is as follows:

	2016			2015
Income tax computed at the federal statutory rate		34	%		34	%
Income tax computed at the state statutory rate		5	%		5	%
Valuation allowance		(39	%)		(39	%)
Total deferred tax asset		0	%		0	%