Quarterly report pursuant to Section 13 or 15(d)

VARIABLE INTEREST ENTITY ARRANGEMENTS

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VARIABLE INTEREST ENTITY ARRANGEMENTS
 6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
NOTE 5 - VARIABLE INTEREST ENTITY ARRANGEMENTS

The Company has a shared interest in two entities, MediFarm I and MediFarm I RE, with another investor for the operation of a cultivation operation 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 Company consolidates the accounts and operations of these entities. All intercompany transactions are eliminated in the unaudited consolidated financial statements.

 

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

 

    June 30,     December 31,   
    2018     2017  
Current Assets:            
Cash   $ 251,508     $ 409,029  
Accounts Receivable, Net     224,259       -  
Inventory     582,657       232,231  
Prepaid Expenses and Other Current Assets     94,889       302,186  
Total Current Assets     1,153,313       943,446  
Property, Equipment and Leasehold Improvements, Net     1,890,709       1,965,103  
                 
TOTAL ASSETS    $ 3,044,022     $ 2,908,549  
                 
Current Liabilities:                
Accounts Payable and Accrued Expenses   $ 269,843     $ 319,853  
                 
TOTAL LIABILITIES   $ 269,843     $ 319,853