Results of Operations
For the year ended December 31, 2022, the Company generated $0 in annual revenue
compared to $12,630 in 2021.
Cost of sales was $0 for the year ended December 31, 2022 and $12,655 for the
year ended December 31, 2021. Our operating expenses in the year ended December
31, 2022 amounted to $174,535 as compared to $343,121 for the year ended
December 31, 2021.
Our net loss in the year ended December 31, 2022 was $357,768 as compared to the
net loss of $602,226 during the year ended December 31, 2021.
The amounts presented in the financial statements do not provide for the effect
of inflation on our operations or our financial position. Amounts shown for
costs and expenses reflect historical cost and do not necessarily represent
replacement cost. The net operating losses shown would be greater than reported
if the effects of inflation were reflected either by charging operations with
amounts that represent replacement costs or by using other inflation
adjustments.
Liquidity and Capital Resources
We had $270,030 cash on hand at December 31, 2022, compared to 377,520 at
December 31, 2021.
At December 31, 2022, we had $243,437 in principal amount of outstanding
convertible notes.
Please see NOTE E - NOTES PAYABLE TO THIRD PARTIES for further information.
The proceeds from loans, convertible debentures as well as cash on hand is being
used to fund the operations of our current operations.
The following table provides detailed information about our net cash flows for
the twelve months ended December 31, 2022 and 2021.
31-Dec-22 31-Dec-21
Net cash (used in) operating activities $ (107,490 ) $ (235,433 )
Net cash (used in) investing activities
- -
Net cash provided by financing activities - 500,000
Net increase (decrease) in cash $ (107,490 ) $ 264,567
Trends
The factors that will most significantly affect our future operating results,
liquidity and capital resources will be:
? Government regulation of the marijuana industry;
? Revision of Federal banking regulations for the marijuana industry; and
? Legalization of the use of marijuana for medical or recreational use in other
states.
Other than the foregoing, we do not know of any trends, events or uncertainties
that have had, or are reasonably expected to have, a material impact on:
? revenues or expenses;
? any material increase or decrease in liquidity; or
? expected sources and uses of cash.
Critical Accounting Policies and Estimates
The SEC issued Financial Reporting Release No. 60, "Cautionary Advice Regarding
Disclosure About Critical Accounting Policies" suggesting that companies provide
additional disclosure and commentary on their most critical accounting policies.
In Financial Reporting Release No. 60, the SEC has defined the most critical
accounting policies as the ones that are most important to the portrayal of a
company's financial condition and operating results and require management to
make its most difficult and subjective judgments, often as a result of the need
to make estimates of matters that are inherently uncertain. Based on this
definition, we have identified the following significant policies as critical to
the understanding of our financial statements. The preparation of financial
statements in conformity with generally accepted accounting principles requires
management to make a variety of estimates and assumptions that affect (i) the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities as of the date of the financial statements and (ii) the reported
amounts of revenues and expenses during the reporting periods covered by the
financial statements. Our management expects to make judgments and estimates
about the effect of matters that are inherently uncertain. As the number of
variables and assumptions affecting the future resolution of the uncertainties
increase, these judgments become even more subjective and complex. Although we
believe that our estimates and assumptions are reasonable, actual results may
differ significantly from these estimates. Changes in estimates and assumptions
based upon actual results may have a material impact on our results.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to investors.
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