See accompanying notes to unaudited condensed
consolidated financial statements.
See accompanying notes to unaudited condensed
consolidated financial statements.
Notes to the
Condensed Consolidated Financial Statements
For the Three Months Ended March
31, 2019 and 2018
(Unaudited)
Note 1 — Nature of the Business
MJ Holdings Inc. (OTC Pink: MJNE. the
“Company”, “we”, “us”) is a publicly-traded, cannabis holding company providing cultivation management,
licensing support, production management and asset and infrastructure development – currently in the Las Vegas market. It
is our intention to grow our business and provide a 360-degree spectrum of infrastructure (including: cultivation, production
management, dispensaries and consulting services) through: the acquisition of existing companies; joint ventures with existing
companies possessing complementary expertise, and/or through the development of new opportunities. (See Subsequent Events for
highlights of major events subsequent to March 31, 2019)
Note 2 — Basis of Presentation
The accompanying
unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America (“GAAP”) for interim financial information and with the rules and regulations of the
U.S. Securities and Exchange Commission (“SEC”). Accordingly, these consolidated financial statements do not include
all of the information and footnotes required for audited annual financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary to make the consolidated financial statements not misleading have
been included. The balance sheet at December 31, 2018, has been derived from the Company’s audited consolidated financial
statements as of that date.
The unaudited
condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial
statements and the notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December
31, 2018, that was filed with the SEC on October 16, 2019. The results of operations for the three months ended March 31, 2019,
are not necessarily indicative of the results to be expected for the full year or any further periods.
The unaudited
Condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany
balances and transactions have been eliminated in consolidation.
The significant
accounting policies followed by the Company for interim reporting are consistent with those included in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2018. There were no material changes to our significant accounting policies
during the interim period ended March 31, 2019.
Note 3 —
Going Concern
The Company has recurring net losses, which have resulted in an accumulated deficit of $8,516,937 as of
March 31, 2019. The Company incurred a net loss of $646,488 and negative cash flows from operations of $408,147 for the period
ended March 31, 2019. These factors raise substantial
doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of the financial
statements. The ability of the Company to continue as a going concern is dependent on the Company’s ability to further implement
its business plan, raise capital, and generate revenues. The Financial Statements do not include any adjustments that might be
necessary if the Company is unable to continue as a going concern.
The Company’s current capital resources
include cash, and inventories. Historically, the Company has financed its operations principally through det and/or equity markets.
Note 4 —
Inventory
At March 31, 2019, and December 31, 2018,
inventory consisted of finished goods that amounted to $1,746,402, and $1,587,852, respectively. Inventories are valued at the
lower of cost or net realizable value. We determine cost on the basis of the first in first out method. The Company periodically
reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off.
Note 5 —
Prepayments, Customer Deposits and Deposits
Prepaid Expenses
In February 2018,
the Company began discussions with an unrelated third-party regarding designing, purchasing, and reselling greenhouses. The Company
provided expertise in constructing green houses, and the other party advised that it would enter into an agreement to design,
procure, and operate greenhouses. In April 2018, the third party notified the Company and the purchasers of the green houses that
it could not continue with the construction of the green houses because of unrelated hardships. As of March 31, 2019, the Company
had received $386,416 in deposits from the purchasers, which were recorded as customer deposits on the balance sheet, and had
paid $335,083 expenses related to the design, purchase and resale of the green houses, which expenses were recorded as prepaid
expenses.
Management
Agreement
In April of 2018,
the Company entered into a management agreement with the holder of a State of Nevada cultivation In April of 2018, the Company
entered into a management agreement with the holder of a State of Nevada cultivation license (the “Licensed Operator”),
so that the Company can lawfully engage in the cultivation of marijuana for sale under the laws of the State of Nevada. The term
of the agreement was for eight years, pursuant to which the Licensed Operator has engaged the Company to develop, manage and operate
a licensed cultivation facility on three-acres of property owned by the Licensed Operator. In January of this year the Company
terminated the existing management agreement and entered into a Cultivation and Sales Agreement, Consulting Agreement and Equipment
Lease Agreement with the Licensed Operator (collectively the “Agreements”)
Upon completion
of the construction of the outdoor cultivation facility, at the Company’s sole cost and expense, and receipt of the appropriate
approvals from the local and state authorities, the Company began cultivating marijuana in August of 2018. Pursuant to the terms
of the Agreement, the Company agreed to generate sales of at least $2,000,000 per year from product cultivated from the outdoor
cultivation facility. The Licensed Operator may terminate the agreement, in accordance with the terms of the Agreements, if the
Company does not generate at least $2,000,000 in annual revenues. The Company may cure a breach of this provision by paying 10%
of the revenue shortfall to the Licensed Operator. Pursuant to the Agreements, the Licensed Operator will: (i) retain 15% of the
net revenues generated from product cultivated from the outdoor cultivation facility and (ii) pay 85% of the net revenues to the
Company. Upon execution of the initial management agreement, the Company paid $300,000 to the Licensed Operator as consideration
for the opportunity to construct and manage the outdoor cultivation facility on the Licensed Operator’s property. In exchange
for the initial consideration, the Licensed Operator agreed not to retain 15% of the first $2 million of net revenues generated
from the outdoor cultivation facility. In addition, once the outdoor facility began cultivating in August of 2018, the Company
became obligated to pay the Licensed Operator $7,000 per month for compliance, security, and other administrative costs incurred
by the Licensed Operator during the term of the Agreements. The Company recorded the $300,000 paid to the Licensed Operator as
prepaid expenses. The balance of the prepaid expenses as of March 31, 2019 is $68,689.
In order to develop
and manage the three-acre outdoor facility, the Company, in March of 2018, entered into a management services agreement with a
Nevada limited liability company (the “Manager”) to provide operational oversight and cultivation management for the
Company’s three-acre outdoor cultivation facility. The term of the agreement was for three years. The Manager was entitled
to receive compensation equal to twelve percent of the gross yield sales from each harvest with six percent payable in the form
of cash and six percent payable in the form of the Company’s common stock. In May of 2019 the Company and the Manager
agreed to terminate the existing management agreement. The Company agreed to pay to the Manager total compensation equaling $318,000
upon termination of the management agreement in the form of $159,000 in cash and shares of the Company’s common stock with
a value $159,000.
Deposits
As of March 31,
2019, the Company had a total of $193,633 on deposit. These consist of rent deposits and deposit on contractual obligations.
Note 6 —
Property and equipment
Property and equipment at March 31, 2019
and December 31, 2018 consisted of the following:
|
|
March
31,
2019
|
|
|
December
31,
2018
|
|
Leasehold Improvements
|
|
$
|
63,816
|
|
|
$
|
17,535
|
|
Machinery and Equipment
|
|
|
924,496
|
|
|
|
919,782
|
|
Building and Land
|
|
|
2,500,000
|
|
|
|
1,500,000
|
|
Furniture and Fixtures
|
|
|
374,327
|
|
|
|
314,890
|
|
Total property and equipment
|
|
|
3,862,639
|
|
|
|
17,535
|
|
|
|
|
|
|
|
|
|
|
Less: Accumulated depreciation
|
|
|
(216,244
|
)
|
|
|
(123,256
|
)
|
Property and equipment, net
|
|
$
|
3,646,395
|
|
|
$
|
2,628,951
|
|
Depreciation expense for the three months
ending March 31, 2019 and 2018 was $92,282 and $0, respectively.
Note 7 — Intangible Assets
In October 2016, Red Earth, LLC (“Red
Earth”) a subsidiary for the Company, entered into an Asset Purchase and Sale Agreement with the owner of a provisional
Medical Marijuana Establishment Registration Certificate (the “Provisional Grow License”) issued by the state of Nevada
for the cultivation of medical marijuana for $300,000. To initiate the purchase and transfer the Provisional Grow License, the
Company paid a $25,000 deposit to the seller in October 2016. In February 2017, an investor advanced the Company $350,000 to fund
the purchase of the Provisional Grow License.
In
April 2018, the State of Nevada finalized and approved the transfer of the provisional cultivation license to Red
Earth. In July 2018, we completed the first phase of construction on this facility and we received a City of Las Vegas
Business License to operate a marijuana cultivation facility. In August 2019, we entered into a membership interest purchase
agreement to sell forty-nine (49%) percent of Red Earth to an unrelated third party (See Note 14 Subsequent Events for
further description of the transaction) We expect to obtain final approvals towards perfecting the cultivation license from
the State of Nevada and City of Las Vegas regulatory authorities by the end of the first quarter of 2020, but we can provide
no assurances on the receipt and/or timing of the final approvals.
Note 8 —
Marketable Securities – available for sale
On August 13, 2018, the Company entered
into a Stock Exchange Agreement with Healthier Choices Management Corp. (HCMC) to acquire 1,500,000,000 shares of Healthier Choices’
common stock in exchange for 85,714 shares of Healthier Choices common stock. The value of the stock exchanged by each party on
the date of exchange was $150,000. This represents a less than 5% ownership interest for each company in the others’ Company;
and, the shares issued are restricted. The Company recorded the 85,714 shares of HCMC common stock as an available for sale security
and intends to mark the value to market each reporting period based on the current market value of its held shares in Healthier
Choices. As of the transaction date, the price as quoted on the OTC Markets for Healthier Choices common stock was $0.0001 per
share.
Note 9 — Notes Payable
Notes payable as of March 31, 2019 and December 31, 2018 consist
of the following:
|
|
March 31, 2019
|
|
|
December 31,
2018
|
|
|
|
|
|
|
|
|
Note payable bearing interest at 6.50%, originated
November 1, 2018, due on October 31, 2023 originally $1,100,000
|
|
$
|
1,094,974
|
|
|
$
|
1,099,006
|
|
Note payable bearing interest at 5.0%, originated January
17, 2019, due on January 31, 2022
|
|
|
750,000
|
|
|
|
-
|
|
Note payable bearing interest at 5.00%, originated October
17, 2018, due on October 16, 2019
|
|
|
250,000
|
|
|
|
250,000
|
|
Note payable bearing interest at 0.0%, originated February
14, 2019, due on August 16, 2019
|
|
|
100,000
|
|
|
|
-
|
|
Note payable - “related party” bearing
interest at 0.0%, originated February 1, 2019,
due on July 31, 2019
|
|
|
85,000
|
|
|
|
-
|
|
Note payable bearing interest
at 9.0%, originated January 17, 2019, due on January 16, 2020
|
|
|
150,000
|
|
|
|
-
|
|
Total notes payable
|
|
$
|
2,429,974
|
|
|
$
|
1,349,006
|
|
Less: current portion
|
|
|
(647,010
|
)
|
|
|
(312,905
|
)
|
|
|
|
|
|
|
|
|
|
Long-term notes payable
|
|
$
|
1,782,964
|
|
|
$
|
1,036,101
|
|
On January 17, 2019, the Company executed
a promissory note for $750,000 with FR Holdings LLC, a Wyoming limited liability company. The note pays interest of 5.0% per annum,
payable in regular monthly installments of $3,125, due on or before the same day of each month beginning February 1, 2019 until
January 31, 2022 at which the entire principal and any then accrued interest thereon shall be due and payable.
On February 14, 2019, the Company executed
a short-term promissory note for $100,000 with Stran & Company. The note bears no interest during the first 90 days. Thereafter,
interest shall accrue on the unpaid principal balance at a fixed rate of 0.5% per month. The note was paid in full on April 1,
2019.
On February 01, 2019 per agreement the
Company executed a short-term promissory note for $101,000 with Roll On LLC., who is a related party. The note bears no interest.
The balance as of March 31, 2019 is $85,000. The note was paid in full on April 1, 2019.
On January 17, 2019 the Company executed
a short-term promissory note for $150,000 with Let’s Roll Holdings, LLC. The note bears an interest rate of 9.0% per annum
and is due and payable in full plus accrued interest on January 16, 2020.
Note 10 — Commitments and Contingencies
Operating
Leases
The Company leases a production / warehouse
facility under a non-cancelable operating lease that expire in June 2027. Future minimal rental and lease commitments under non-cancelable
operating leases with terms in excess of one year as of March 31, 2019, are as follows:
|
|
Amount
|
|
Fiscal year ending December 31:
|
|
|
|
|
2019
|
|
$
|
230,640
|
|
2020
|
|
|
230,640
|
|
2021
|
|
|
230,640
|
|
2022
|
|
|
230,755
|
|
2023
|
|
|
230,986
|
|
Thereafter
|
|
|
812,328
|
|
Less payments made first quarter 2019
|
|
|
57,660
|
|
Total minimum lease payments
|
|
$
|
1,908,329
|
|
Rental expense is accounted for on the
straight-line method. Rent expense, incurred pursuant to operating leases for the three months ended March 31, 2019 and 2018,
was $62,585 and $53,033 respectively.
Litigation
From time to time, the Company may become
involved in various lawsuits and legal proceedings which arise in the ordinary course of business. When the Company is aware of
a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and
the amount of the loss can be reasonably estimated, the Company will record a liability for the loss. I addition to the estimated
loss, the liability includes probable and estimable legal cost associated with the claim or potential claim. Litigation is subject
to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company
business. There is no pending litigation involving the Company at this time.
Note 11 —
Preferred Stock
Preferred stock, par value $0.001, 5,000,000
shares authorized, no shares outstanding as of March 31, 2019.
Series A convertible Preferred stock $1,000
stated value, 2,500 authorized, no shares outstanding as of March 31, 2019.
Note 12 —
Common Stock
During the three months ended March 31,
2019, the Company issued 16,236 shares of Company’s common stock in exchange for professional services valued at $16,000.
During the three months ended March 31,
2019, the Company had received back from a shareholder 20,000,000 shares of Company’s common stock in exchange for $20,000.
During the three months ended March 31,
2019, the Company received cash proceeds related to stock subscriptions payable of $1,350,000. Subsequent to the period end, the
Company issued 2,700,000 shares of common stock in full satisfaction of the subscription payable.
Note 13 — Warrants and Options
Warrants
Prior to the Reverse Merger, the Company
had issued warrants to acquire 166,665 shares of common stock as compensation for consulting services. The warrants expire between
July 2019 and October 2019 and have exercise prices in excess of $2.50 per share. As of the date of this filing all outstanding
warrants have expired. A summary of the warrants issued, exercised and expired are below:
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Avg.
|
|
|
|
|
|
|
Exercise
|
|
|
|
Shares
|
|
|
Price
|
|
Balance at December 31, 2018
|
|
|
166,665
|
|
|
$
|
5.88
|
|
Issued
|
|
|
—
|
|
|
|
—
|
|
Exercised
|
|
|
—
|
|
|
|
—
|
|
Expired
|
|
|
—
|
|
|
|
—
|
|
Balance at March 31, 2019
|
|
|
166,665
|
|
|
$
|
5.88
|
|
Stock Options
In July 2018, the Company entered into
a Corporate Advisory Agreement (“Advisory Agreement”) with a New York City based consulting company (the
“Consultant”) to provide business management, corporate compliance and related services to the Company and its subsidiaries.
The Advisory Agreement granted to the Consultant an option to acquire up to 10,000 additional shares of the Company’s common
stock at an exercise price of $1.20. The options have a term of three years. A summary of the options issued, exercised and expired
are below:
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Avg.
|
|
|
|
|
|
|
Exercise
|
|
|
|
Shares
|
|
|
Price
|
|
Balance at December 31, 2018
|
|
|
10,000
|
|
|
$
|
1.20
|
|
Issued
|
|
|
—
|
|
|
|
—
|
|
Exercised
|
|
|
—
|
|
|
|
—
|
|
Expired
|
|
|
—
|
|
|
|
—
|
|
Balance at March 31, 2019
|
|
|
10,000
|
|
|
$
|
1.20
|
|
Note 14 — Subsequent Events
The following material events occurred
subsequent to the quarter ended March 31, 2019
In April of 2019, we consummated
our purchase of an approximately 50-acre, commercial trailer and RV park (the “Trailer Park”) in close proximity to
our Amargosa Valley cultivation facilities. The Trailer Park can accommodate up to 90 trailers and RV’s. There presently
are 17 occupied trailers in the Trailer Park, and, we are making necessary upgrades to bring additional units to the facility
to provide housing for our farm personnel. We purchased the Park for a total of $600,000 in cash and $50,000 of the Company’s
common stock, resulting in the issuance of 66,667 shares. The sellers hold a $250,000 note, bearing interest at 6.50% resulting
in monthly payments in the amount of $2,178 (the “TP Note”). The TP Note requires additional principal reduction payments
in the amount of $50,000 on or before March 31, 2020 and March 31, 2021. A final balloon payment of any and all outstanding principal
and accrued interest is due and payable on or before March 31, 2022. There are no prepayment penalties should the Company elect
to retire the TP Note prior to its maturity date.
In April of 2019, we executed
a membership interest purchase agreement (the “MIPA2”) to acquire all of the membership interests in two Nevada limited
liability companies that are each a holder of a State of Nevada marijuana license. Marijuana Establishment Registration Certificate,
Application No. C202 and Marijuana Establishment Registration Certificate, Application No. P133 (collectively the “Certificates”).
The terms of the MIPA2 require the Company to purchase the licenses for the total sum of $1,250,000 each, $750,000 in cash and
$500,000 per license in the Company’s common stock. The terms of the MIPA2 provide for a $250,000 non-refundable down
payment and include a short term note in the amount of $500,000 carrying an annual interest rate of two percent (2%) which, together
with accrued interest, is due and payable on or before December 18, 2019. The Company has made non-refundable deposits totaling
$550,000 and has reduced the principal of the aforementioned note to $200,000. The Company is obligated to issue approximately
1,400,000 shares of our common stock in fulfillment of our obligations in the MIPA2 and has executed a $750,000 long term note
(the “LT Note”) in favor of the current license holders that becomes due and payable upon the earlier of a) six months
after the transfer of the Certificates to the Company, or b) six months after the production/cultivation is declared fully operational
by the applicable regulatory agencies, or c) March 10, 2020. The LT Note carries an 8% annual interest rate and there is no penalty
for any prepayments of the LT Note. Additionally, the sellers shall receive, at closing, warrants to purchase up to 1,500,000
additional shares of the Company’s common stock; 1,000,000 warrants shall be exercisable for a period of three years from
the closing date at an exercise price of $2.00 per share and 500,000 warrants shall be exercisable for a period of two years from
the closing date at an exercise price of $1.50 per share (collectively the “MJ Warrants”). The LT Note, MJ Warrants
and the common shares issued will be held in escrow until the transaction closes upon the terms of the MIPA2. The Company, upon
receipt of all necessary regulatory approvals, plans to move the cultivation license from its current location to the Company’s
260-acre facility in the Amargosa Valley of Nevada and move the production license into its recently acquired leasehold in Pahrump,
NV.
On May 31, 2019, our Treasurer
and Chief Financial Officer, John R. Wheeler resigned and was immediately replaced by Laurence Ruhe. Mr. Wheeler is to receive
a total of 250,000 shares of the Company’s $.001 par value common stock (the “Stock”) for all past services
provided to the Company. The initial 125,000 shares of Stock were issued to Mr. Wheeler on July 9, 2019. On August 1, 2019 the
Company issued to Mr. Wheeler 20,834 shares of Stock and the remaining 104,166 shares of Stock shall be issued on or before June
30, 2020.
On June 1, 2019,
we entered in an employment agreement with Mr. Laurence Ruhe. Mr. Ruhe shall serve a two-year term, effective June 1,
2019, pursuant to a written employment agreement (the “Ruhe Employment Agreement”) with annual base compensation
of $100,000 plus 46,296 shares of Stock value at $25,000 pursuant to the terms of the Ruhe Employment Agreement to vest in
twelve equal monthly installments of 3,858 shares commencing on July 1, 2019. Mr. Ruhe’s compensation will be reviewed
annually and may be adjusted as determined by the Company’s Compensation Committee or Board. Additionally, Mr. Ruhe
shall be entitled to receive an annual discretionary bonus as determined by the Board.
In June of 2019, Coachill-Inn,
LLC, a subsidiary of Alternative Hospitality, Inc. (collectively “AHI”) executed a purchase and sale agreement with
Coachill Holdings, LLC (“CHL”) to acquire a parcel of land located within a 100-acre industrial cannabis park near
Desert Hot Springs, CA (the “Property”) to develop AHI’s first hotel project. The purchase price for the property
is $5,125,000. CHL is contributing $3,000,000 toward the purchase price of this property in exchange for a twenty-five percent
ownership interest in Coachill-Inn, LLC. Alternative Hospitality has made an initial deposit of $150,000 toward the purchase of
the Property and will own 51% of Coachill-Inn, when the transaction closes. The transaction is expected to close in the fourth
quarter of 2019.
On July 15, 2019 our Board
of Directors appointed Richard S. Groberg to be the President of the Company. Mr. Groberg replaces Paris Balaouras, who was interim
President from January 1, 2019 until July 15, 2019. Mr. Balaouras will continue in his role as the Company’s CEO and Chairman
of the Board. Mr. Groberg shall initially serve a three-year term effective July 15, 2019 pursuant to a written employment agreement
(the “RSG Employment Agreement”) with an annual base compensation of $180,000, of which $5,000 per month shall be
deferred until January 15, 2020 or such earlier date pursuant to the terms of the RSG Employment Agreement and then shall be payable
in cash or shares of the Company’s common stock (the “Stock”). The Employment Agreement provides for a restricted
stock award of 400,000 shares of the Company’s Stock to vest: 25% six months after the effective date of the Employment
Agreement; 25% on the first anniversary after the effective date of the Employment Agreement, 25% on the second anniversary after
the effective date of the Employment Agreement and 25% on the third anniversary after the effective date of the Employment Agreement.
Effective August 1, 2019 we
entered into an agreement to lease an approximately 17,000 sq. ft. commercial building in Pahrump, NV. The lease is for a term
of ten years at an initial monthly rent of $10,000 per month with rent increases each August 1st during the term of
the lease equal to the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for CPI W (Urban
Wage Earners and Clerical Workers) for Las Vegas, Nevada. The Company paid the property owner a security deposit in the amount
of $20,000. While the Company took possession of the premises on August 1, 2019 the monthly rent did not commence until October
1, 2019. The Company has an option, exercisable between July 1, 2020 and July 1, 2024, to purchase the property for $1,800,000.
The leasehold has previously been utilized as a fully-licensed, State of Nevada approved marijuana cultivation facility; and,
it is the Company’s intention to move our marijuana processing license into this facility upon receipt of all required regulatory
approvals – anticipated in the first quarter of 2020.
On August 28, 2019 we entered
into a material definitive agreement with an Ohio limited liability company (the “Buyer”) to sell forty-nine percent
(49%) of the membership interests in the Company’s wholly owned subsidiary Red Earth for $441,000. The membership interest
purchase agreement (the “MIPA3”) requires the Buyer to make an additional $3,559,000 payment into an execution fund
(the “Fund”) to be utilized for the improvement and build-out of the Company’s Western Avenue leasehold in Las
Vegas, Nevada. The payment was due within ten (10) business days of the receipt by Red Earth of a special use permit (“SUP”)
from the City of Las Vegas for our Western Avenue facility. The Company received notice on October 21, 2019 that the SUP was granted.
As of the date of this filing the Buyer has established the Fund. The Buyer, in conjunction with the Company, will jointly manage
and operate the facility upon completion. The MIPA3 also requires the Buyer to make a final payment to the Company of $1,000,000
between 90 and 180 days after issuance of the SUP. Additionally, the Buyer has a first refusal right to fund and build a 40,000
sq. ft. greenhouse facility at the Company’s Amargosa Valley Farm the terms of which are to be negotiated in good faith
upon the exercise of any rights granted to the Buyer in the MIPA3.
The Company made the following
issuances subsequent to March 31, 2019:
|
|
Shares
|
|
|
Fair Value
|
|
|
Average Price per Share
|
|
|
|
|
|
|
|
|
|
|
|
Common stock issued for services
|
|
|
508,781
|
|
|
$
|
244,392
|
|
|
$
|
0.48
|
|
Purchase of property and equipment
|
|
|
66,666
|
|
|
|
53,999
|
|
|
|
0.81
|
|
Membership interest purchase in recreational, cultivation and production certificates
|
|
|
1,429,798
|
|
|
|
643,409
|
|
|
|
0.45
|
|
Common stock issued for stock subscriptions payable
|
|
|
13,423,823
|
|
|
|
6,498,920
|
|
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
15,429,068
|
|
|
$
|
7,440,721
|
|
|
$
|
0.48
|
|
The Company has evaluated subsequent
events through the date the financial statements were issued and filed with the Securities and Exchange Commission. The Company
has determined that there are no other such events that warrant disclosure or recognition in the financial statements, except
as stated herein.