March 10-11, 2024

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Back!

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Prayer Room

Arts District 1

What is something you learned yesterday?

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Schedule Day 2

Start at 9 am

Break w/Snack 10:45 am

Lunch 12:15 pm

Dismiss 4:30 pm

QTY 1 = 2 Tix

QTY 2 = 4 Tix

No Limit!

R&D Tax Credits

New or Improved Products or Processes

Presenter | Kim Lochridge

Executive Vice President

Kim Lochridge:

• Executive VP – 13 years
• Tax Committee – Real Estate Roundtable (D.C.)
• Multiple Board Positions
• Real Estate Investor since the late 90’s
• Over 32 Years in Finance/Accounting
• Multi-national Speaker – Israel, Australia, UK, USA

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Research Tax Incentives

Introduction��R&D Credits are available for qualified research activities conducted at:

• Federal
• Multi-State Levels

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Substantiation of the U.S. Federal-Level Research Tax Credit requires both credible testimony and contemporaneous documentation

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Who is currently Presenting?

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Background & Legislative

2016 PATH Act

AMT TURNOFF

Qualifying companies can offset against AMT

• Have under $50M in gross receipts (prior 3-yr average)
• Be privately held

FICA OFFSET FOR START-UPS

• Under $5M in gross receipts
• No gross receipts more than 5 years ago
• Payroll tax reduction capped at $250,000
• Election allowed for up to 5 years

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Four-Part Test

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Other Requirements

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How many ‘tests’ are there to qualify the R&D tax credit?

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Research Tax Incentives

WHAT’S INCLUDED IN THE CALCULATION

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• Qualified Box 1, W2 Wages (3 levels)
• Subcontractors (own rights)
• Supplies

Qualifying Pharmaceutical Activities

• Biology
• Chemistry
• Pharmacology and Toxicology
• Drug Metabolism
• Protein Discovery
• Clinical Development

• Pharmaceutical Technology Development
• Pharmaceutical Development
• Clinical Research and Development
• Analytical Chemistry
• Biostatistics
• Drug Safety Assessment

The Numbers

• The Increasing Research Credit uses prior 3-year average
• Incentivizes increased investment in R&D
• Gross is ~ 14% for IRS Federal Tax
• Over 40 States have additional R&D credits
• Net credit after expense rollback is ~6%-7%

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Case Study : Florida Compounding Pharmacy

Do you think you qualify for the R&D tax credit?

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R&D Amortization

• Amortization Rule:
• Historically allowed R&D credit plus immediate expensing
• TCJA Eliminated immediate expensing of R&D costs starting in 2022.
• U.S. based innovation amortized over 5 years
• International costs amortized over 15 years

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BEWAREFraud is Rampant

thank you

Kim Lochridge, Executive Vice President

Email | klochridge@engineeredtaxservices.com

Direct Phone | 971.213.8686

For those that don’t know me, I’m the Founder and CEO of Growthpharm - a marketing agency for pharmacies and integrative medical clinics.

“Who here hears marketing and cringes a little bit?”

“Who here despises it?”

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Who here hears marketing and cringes a little bit? Who here despises it?

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I don’t blame you.

This is why I got into pharmacy.

See my dad’s pharmacy does:

Over 20,000 prescriptions per month

Over $20 million per year in revenue

Has 25+ full time employees

And still struggles.

When I had a heart to heart with my dad in 2019, he really opened up about the business and it’s challenges.

Ever since this conversation, I threw my name in the hat and vowed to find another way.

Using simple, yet effective marketing strategies and execution, we helped…

North Century Pharmacy increase their revenue by $250,000+/mo within 13 months of working together.

Thornhill’s Pharmacy increase their revenue by $100,000+/mo within 11 months of working together.

Cody Drug increase their revenue by $30,000+/mo within 6 months of working together.

Our clients have shattered growth records, caused back orders and fulfillment issues nationwide, and have been told they are “growing too quickly” by multiple companies.

So, if you prefer your problem to be:

“How do I handle all this demand?”

Instead of

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Got Anymore of Those

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Customers???

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I’ll walk you through what we’ve helped our clients understand to grow with more predictability, grow with more clarity

AND

Help their patients get healthier in the process.

Here are the 5 Steps Our Clients Have Followed

1, Determining What To Sell

1. Find out what they want.
2. Go and get it.
3. Give it to them.

4. If we absolutely crush this opportunity, what does “best case scenario” look like for our business?

If it’s not making you money AND it takes up your time, it has to go.

“You can not change the desires of the market, but rather should channel the existing desires towards your product or service.”

Why Private Label Supplements

• No Red Tape
• Sell Nationwide
• High Margin to allow for marketing
• Growing Industry (~$175B/yr with >7% CAGR)
• Your patients are already buying them
• Easy conversation starter (DIND)

“It’s not how hard you row but also the boat that you’re in.”

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-Warren Buffett

RECAP:

1. Find out what they want.
2. Go and get it.
3. Give it to them.
4. What does “success” look like?

2. How To Sell It

Make it faster. Make it easier.

Who here took an uber to get to this event?

Who here took an uber to get to this event?

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Who here has used Uber Eats or a food delivery service in the past 30 days?

Who here has used Uber Eats or a food delivery service in the past 30 days?

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You chose faster and easier.

Give your patients faster and easier.

Convenient location

Delivery Services

Med Sync

Functioning website with ecommerce capabilities*

More than ⅔ of people say speed is just as important as price.

3. Getting More Attention

Myth #1: Pharmacies believe more people know they exist than reality.

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Myth #2: Pharmacies believe all patients know about their products and services.

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Myth #2: Pharmacies believe all patients know about their products and services.

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We implore our clients take 1on1 conversations and make them 1 to many.

Our clients don’t rely on organic distribution, but instead leverage paid distribution and eventually owned distribution to increase sales.

Some of you don’t have content nor distribution.

Some of you have content but no distribution.

With good content and effective distribution, you can achieve customer financed acquisition.

This is where the profit on the 1st month of a customer exceeds your acquisition cost AND COGS. Thus, netting the business a FREE new customer AND leftover profit to go get another customer.

If not clear, that’s why our clients spend more on marketing than many pharmacies spend in a lifetime. A marketing “budget” does not exist if the math of the marketing is right.

4. Monetizing That Attention

Just because you can count by 5s, doesn’t mean you are a pharmacist.

Just because you know Jardiance will lower your A1C, doesn’t mean you are a pharmacist.

Just because someone knows how to post a tiktok, doesn’t mean they know marketing.

Just because someone can build you a website, doesn’t mean they know marketing.

Marketing can be like a combination lock. It takes thoughtful strategy AND may require execution on more than one thing to get the result you’re looking for.

• Content
• Analytics / Tracking
• Product Page Optimization
• Abandoned Cart Emails
• Retargeting Ads
• Post Purchase Upsells / Cross-sells
• Nurture Emails
• Customer Winback
• Sales / Discount Strategy

Hire people that know a LOT more than you AND have done what you’re looking to do MANY times.

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5. Customer Retention

How big would your pharmacy be if it had to live SOLELY on new transfers / patients every month?

The opportunity in consumables is not in the first order, but in orders 2-100.

Many of your marketing plans only help you get a customer but there is no thought put into keeping them and increasing their lifetime value.

Yet the margins on returning customers far exceeds your margin on new customers.

Closing Thoughts:

1. Don’t come back here next year with the same problems you have now.

2. Work with people who have done it before.

3. It’s not the cost that matters, it’s the return.

“Some people are too cheap to be rich.”

4. “The Road Less Stupid” is one of my favorite business books. You should all read it.

“I can show you where to dig to get rich, but you have to pick up the shovel.”

Out of the 8 billion people on the planet, you chose yourself to be CEO of your business.

Business is an intellectual sport.

It’s going to be hard.

Problems change but they never go away.

Find your help. Work your ass off. Come back year and help others.

That’s the only way this industry is going to improve.

Thank you.

Break Time!

10:45 AM – 11:15 AM