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, 2018
Variable Interest Entity Arrangements  
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:

  

    December 31,     December 31,  
    2018     2017  
Current Assets:            
Cash   $ 893,866     $ 409,029  
Accounts Receivable, Net     28,207       232,230  
Inventory     556,301       232,231  
Prepaid Expenses and Other Current Assets     8,165       302,186  
Total Current Assets     1,486,539       1,175,676  
Property, Equipment and Leasehold Improvements, Net     1,799,417       1,965,103  
                 
TOTAL ASSETS   $ 3,285,956     $ 3,140,779  
                 
Current Liabilities:                
Accounts Payable and Accrued Expenses     342,136       419,853  
                 
TOTAL LIABILITIES   $ 342,136     $ 419,853