Annual report pursuant to Section 13 and 15(d)

VARIABLE INTEREST ENTITY ARRANGEMENTS

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VARIABLE INTEREST ENTITY ARRANGEMENTS
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
NOTE 4. VARIABLE INTEREST ENTITY ARRANGEMENTS

The Company has shared interest in the two entities, MediFarm I and MediFarm I RE, with another investor for the operation of a cultivation and dispensary in Nevada. The entities are considered to be VIE’s and the Company is considered to be the primary beneficiary by reference to the power and benefits criterion under ASC 810, “Consolidation.” The Company has reviewed the provisions within the operating agreements and other factors which would grant the Company the power to manage and make decisions that affect the operation of these VIEs.

 

As the primary beneficiary of MediFarm I and MediFarm I RE, the financial statements of the entities are consolidated. All intercompany transactions are eliminated in the consolidated financial statements.

 

The aggregate carrying values of the VIEs’ assets and liabilities, after elimination of any intercompany transactions and balances, in the consolidated balance sheets were as follows (in thousands):

 

    December 31,     December 31,  
    2017     2016  
Current Assets:            
Cash   $ 409,029     $ 30,057  
Inventory     232,231       -  
Prepaid Expenses and Other Current Assets     302,186       17,492  
Total Current Assets     943,446       47,549  
Property, Equipment and Leasehold Improvements, Net     1,965,103       1,798,784  
                 
TOTAL ASSETS   $ 2,908,549     $ 1,846,333  
                 
Current Liabilities:                
Accounts Payable and Accrued Expenses     319,853       5,337  
                 
TOTAL LIABILITIES   $ 319,853     $ 5,337