|
(Mark One)
|
|
|
|
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
For the fiscal year ended December 31, 2016
|
|
|
|
or
|
|
|
|
|
|
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the transition period from _____________to ______________
|
Texas
|
75-2095676
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
Title of each class
|
Name of each exchange on which registered
|
Large accelerated filer
☐
|
|
Accelerated filer
☐
|
Non-accelerated filer
☐
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
☒
|
PART I.
|
PAGE
|
|
|
|
|
Item 1.
|
3
|
|
Item 1A.
|
7
|
|
Item 1B.
|
7
|
|
Item 2.
|
7
|
|
Item 3.
|
7
|
|
Item 4.
|
7
|
|
|
|
|
PART II.
|
|
|
|
|
|
Item 5.
|
8
|
|
Item 6.
|
9
|
|
Item 7.
|
9
|
|
Item 7A.
|
15
|
|
Item 8.
|
15
|
|
Item 9.
|
15
|
|
Item 9A (T).
|
15
|
|
Item 9B.
|
16
|
|
|
|
|
PART III.
|
|
|
|
|
|
Item 10.
|
17
|
|
Item 11.
|
19
|
|
Item 12.
|
21
|
|
Item 13.
|
22
|
|
Item 14.
|
23
|
|
PART IV.
|
||
Item 15.
|
24
|
|
|
25
|
|
Closing Bid
|
Closing Ask
|
||||||||||||||
|
High
|
Low
|
High
|
Low
|
||||||||||||
Quarters ending in 2015
|
||||||||||||||||
March 31
|
$
|
0.14
|
$
|
0.01
|
$
|
0.65
|
$
|
0.49
|
||||||||
June 30
|
0.06
|
0.02
|
0.49
|
0.44
|
||||||||||||
September 30
|
0.40
|
0.03
|
1.00
|
0.30
|
||||||||||||
December 31
|
$
|
0.40
|
$
|
0.06
|
$
|
0.80
|
$
|
0.53
|
||||||||
Quarters ending in 2016
|
||||||||||||||||
March 31
|
$
|
2.22
|
$
|
0.28
|
$
|
2.50
|
$
|
0.53
|
||||||||
June 30
|
2.32
|
1.00
|
2.49
|
1.30
|
||||||||||||
September 30
|
1.98
|
1.04
|
2.10
|
1.40
|
||||||||||||
December 31
|
$
|
2.11
|
$
|
0.12
|
$
|
2.50
|
$
|
1.00
|
Plan Description at December 31, 2016 and 2015
|
Number of Shares to be Issued Upon Exercise of
Outstanding Options
|
Weighted Average Exercise Price of Outstanding Options
|
Number of Shares Remaining Available for Future Issuance
|
|||||||||
Initial Number of Securities Available for Issue Under the Plan
|
-
|
-
|
1,000,000
|
|||||||||
Total options approved and issued in 2015 (1)
|
-
|
-
|
-
|
|||||||||
Options forfeited by former holders in 2015 (1)
|
-
|
-
|
-
|
|||||||||
Total Equity Plan Options outstanding at December 31, 2015 (1)
|
90,000
|
0.34
|
4,243,072
|
|||||||||
Total options approved and issued in 2016
|
-
|
-
|
-
|
|||||||||
Options exercised by holders in 2016
|
15,000
|
-
|
-
|
|||||||||
Total Equity Plan Options outstanding at December 31, 2016 (2)
|
75,000
|
0.41
|
*-
|
(1) |
The number of Options issued and exercised under the Plan in the years 2007 through 2016 and the increases in securities added to the Plan* for each year are as follows:
|
Year
|
Options Granted
|
Options Forfeited
1
or Exercised
2
|
Securities added to Plan
|
Securities available*
at December 31st
|
|||||||||||||
2007
|
155,000
|
-0-
|
-0-
|
845,000
|
|||||||||||||
2008
|
240,000
|
-0-
|
479,900
|
1,084,900
|
|||||||||||||
2009
|
195,000
|
-0-
|
482,500
|
1,372,400
|
|||||||||||||
2010
|
145,000
|
(255,000
|
) |
483,300
|
1,965,700
|
||||||||||||
2011
|
-0-
|
(390,000
|
) |
462,500
|
2,818,200
|
||||||||||||
2012
|
-0-
|
-0-
|
462,500
|
3,280,700
|
|||||||||||||
2013
|
-0-
|
-0-
|
462,500
|
3,743,200
|
|||||||||||||
2014
|
-0-
|
-0-
|
499,872
|
4,243,072
|
|||||||||||||
2015
|
-0-
|
-0-
|
*
|
*
|
|||||||||||||
2016
|
-0-
|
15,000
|
2
|
*
|
*
|
(2) |
Of the 75,000 options still active as of December 31, 2016: (i) 10,000 expire at 11-2-2017; (ii) 15,000 expire at 12-31-2018; (iii) 30,000 expire at 11-6-2019; and, (iv) 20,000 expire at 12-23-2020.
|
a. |
Cannabis oil extraction and processing. MariJ Pharma has a unique mobile cannabis oil processing and extraction unit designed into a heavy-duty vehicle. That unit has already begun performing extractions and processing of medical hemp oils at various sites, and is currently developing additional contracts for services.
|
b. |
Wholesale sale of raw and processed medical cannabis oils.
|
c. |
Laboratory testing and certification services. MariJ Pharma has begun construction of a mobile laboratory and testing unit, also on a heavy-duty truck chassis, intended to address the growing demand for these services in the medical cannabis industry.
|
d. |
Licensing and support of the Company’s GeoTraking Technology systems
|
e. |
Processing and compounding services for medical grade cannabis oils
|
a. |
Canna-Cures will seek to enter into research and development projects with institutions of higher learning in efforts to develop new and better strains of medical cannabis related products for dispensing as medications, nutraceuticals, cosmeceuticals, and probably dietary supplements. Canna-Cures anticipates participating in state and federal grants in conjunction with one or more universities as a means to defray part of its costs in these efforts.
|
b. |
Private label packaging services. The Company has obtained a majority of the equipment required to engage in the business of packaging and labeling of medical cannabis oils, oil-infused products, and related items.
|
c. |
Retail sales of medical cannabis oils, oil-infused products, and other merchandise through its web-based portal or retail dispensaries planned for that purpose. These activities are dependent in large part upon meeting FDA regulations and criteria relating to the sale and distribution of cannabis-infused products, and the Company is currently in the process of determining the status of those criteria.
|
d. |
Retail and wholesale sales of cosmeceutical and nutraceutical products and dietary supplements containing its high-quality cannabis oil extracts, again dependent upon the same FDA regulations and criteria as mentioned in item (c) above.
|
Name
|
Age
|
Position
|
||
Richard K. Pertile
|
54
|
Director, President, Chairman of the Board, and Chief Executive Officer
|
||
Steven L. Sample (1)
|
69
|
Secretary
|
||
Danny R. Gibbs
|
59
|
Director
|
||
Neil Gholson
|
57
|
Director
|
||
Gary J. Roberts, Jr.
|
50
|
Director
|
||
Kim Edwards
|
49
|
Vice President and Chief Operating Officer
|
(1)
|
Steven L. Sample resigned as employee and director of the Company effective December 31, 2016. See Item 9B for additional information.
|
Name
|
Number of late reports
|
Number of transactions not reported timely
|
||||||
None |
Director Name
|
|
Audit Committee
|
|
|
Compensation Committee
|
|
|
Nominating Committee
|
|
|
Primary Committee
|
|
Richard K. Pertile
|
|
—
|
|
|
—
|
|
|
Member
|
|
|
Member
|
|
Danny R. Gibbs
|
|
Chair
|
|
|
Member
|
|
|
Member
|
|
|
Member
|
|
Neil B. Gholson
|
|
Member
|
|
|
Chair
|
|
|
Chair
|
|
|
—
|
|
Gary J. Roberts, Jr.
|
|
Member
|
|
|
Member
|
|
|
—
|
|
|
Chair
|
|
Annual Compensation
|
||||||||||||||
Name and Principal Position
|
Fiscal Year
|
Salary
|
Bonus
|
Total
|
||||||||||
Richard K. Pertile (1)
|
2016
|
$
|
170,000
|
0
|
$
|
170,000
|
||||||||
2015
|
$
|
120,000
|
0
|
$
|
120,000
|
|||||||||
Kim Edwards (2)
|
2016
|
$
|
96,000
|
0
|
$
|
96,000
|
||||||||
2015
|
$
|
60,000
|
0
|
$
|
60,000
|
|||||||||
Steven Sample, CEO (3)
|
2016
|
$
|
195,000
|
$
|
48,000
|
$
|
243,000
|
|||||||
2015
|
$
|
225,000
|
$
|
283,615
|
$
|
508,615
|
|
Number of Securities Underlying Unexercised Options
|
Number of Securities Underlying Unexercised Options Unexercisable
|
Weighted Average Per Share Exercise Price
|
Expiration Dates
|
||||||||||||
None
|
-
|
-
|
-
|
-
|
|
Number of Securities Underlying Unexercised Options
|
Number of Securities Underlying Unexercised Options Unexercisable
|
Weighted Average Per Share Exercise Price
|
Expiration Dates
|
|||||||||||
Steven L. Sample (1)
|
950,000
|
-
|
3.00
|
12/30/2016
|
(1) |
950,000 common stock purchase warrants, and not options, issued in 2010 for conversion of preferred stock in 2007 and considered to have expired in 2010, but a like amount issued in that same year, and not issued as compensation. Those warrants expired on December 30, 2016
|
|
Dollar Amount Recognized for Financial Reporting Purposes
|
|||||||
|
2016
|
2015
|
||||||
Richard K. Pertile (1)
|
$
|
-0-
|
$
|
-0-
|
||||
Steven L. Sample (2)
|
-0-
|
-0-
|
||||||
Neil B. Gholson (3)
|
-0-
|
-0-
|
||||||
Gary J. Roberts, Jr. (4)
|
-0-
|
-0-
|
||||||
Danny Gibbs (5)
|
-0-
|
10,000
|
||||||
V. Weldon Hewitt (6)
|
-0-
|
10,000
|
||||||
Dan L. Rigdon (7)
|
-0-
|
10,000
|
||||||
Total
|
$
|
-0-
|
$
|
30,000
|
(1)
|
Appointed as Chairman of the Company’s Board of Directors January 15, 2016.
|
(2)
|
Served as Chairman of the Company’s Board of Directors from August 2006 until January 15, 2016, at which time he continued to serve as a director until resigning on January 17, 2017.
|
(3)
|
Appointed to the Company’s Board of Directors on January 15, 2016.
|
(4)
|
Appointed to the Company’s Board of Directors on January 15, 2016.
|
(5)
|
Originally served on the Company’s board of directors from 1984 through August of 2006. Was again appointed to the Board of Directors on February 1, 2007 where he served until September 29, 2011. Was reappointed to the Board of Directors on September 1, 2013 and continues to serve.
|
(6)
|
Originally served on the Company’s board of directors from 1984 through August of 2006. Was again appointed to the Board of Directors on February 1, 2007 where he served until September 29, 2011. Was reappointed to the Board of Directors on September 1, 2013, and served until resigning January 15, 2016.
|
(7)
|
Appointed to the Company’s Board of Directors on September 1, 2013.
|
Shares Owned at December 31, 2016
|
||||||||
Name and Address of Beneficial Owner
|
Number of Shares
|
Percent
|
||||||
Richard K. Pertile (1)
|
2,234,000
|
13.31
|
%
|
|||||
Steven L. Sample (2)
|
5,515,479
|
32.85
|
%
|
|||||
Neil B. Gholson (3)
|
170,000
|
1.01
|
%
|
|||||
Gary J. Roberts, Jr. (4)
|
252,000
|
1.50
|
%
|
|||||
Danny R. Gibbs (5)
|
157,500
|
0.94
|
%
|
|||||
All directors and officers as a group (five persons)
|
8,328,979
|
49.61
|
%
|
|||||
All of the above as a group (five persons)
|
8,328,979
|
49.61
|
%
|
|
2016
|
2015
|
||||||
Audit fees
|
$
|
127,447
|
$
|
185,012
|
||||
Tax preparation fees
|
7,500
|
19,000
|
||||||
|
||||||||
Total fees
|
$
|
134,947
|
$
|
204,012
|
|
Page
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
|
|
F-7 to F-17
|
Exhibit Number and Description |
Location Reference
|
|||
(3.0)
|
Articles of Incorporation
|
|||
|
(3.1)
|
Restated Articles of Incorporation, as amended filed with Registration Statement |
See Exhibit Key
|
|
|
(3.2)
|
Bylaws filed with Registration Statement |
See Exhibit Key
|
|
(9.0)
|
Filed herewith
|
|||
(12.0)
|
Statement re: computation of earnings per share
|
Note 4 to Financial Stmts.
|
||
(14.0)
|
Code of Ethics
|
None
|
||
(21.0)
|
Filed herewith
|
|||
(31.1)
|
Filed herewith
|
|||
(32.1)
|
Filed herewith
|
|||
101.INS
|
XBRL Instance Document
|
|||
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Acacia Diversified Holdings, Inc.
|
|
|
|
|
|
|
Date: March 28, 2017
|
By:
|
/s/ Richard K. Pertile
|
|
|
|
Richard K. Pertile
|
|
|
|
Chief Executive Officer, Chief Financial Officer, President, and Chairman of the Board
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Richard K. Pertile
|
|
Director
|
|
March 28, 2017
|
Richard K. Pertile
|
|
|
|
|
/s/ Neil B. Gholson
|
|
Director
|
|
March 28, 2017
|
Neil B. Gholson
|
|
|
|
|
/s/ Gary J. Roberts, Jr.
|
|
Director
|
|
March 28, 2017
|
Gary J. Roberts, Jr.
|
|
|
|
|
/s/ Danny R. Gibbs
|
|
Director
|
|
March 28, 2017
|
Danny R. Gibbs
|
|
|
|
|
Page
|
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
|
|
F-7
|
|
2016
|
2015
|
||||||
|
||||||||
|
||||||||
REVENUE
|
$
|
311,283
|
$
|
255,508
|
||||
|
||||||||
COSTS OF GOODS SOLD
|
||||||||
Costs of goods sold
|
169,135
|
107,642
|
||||||
Depreciation expense
|
69,848
|
22,595
|
||||||
|
238,983
|
130,237
|
||||||
|
||||||||
GROSS PROFIT
|
72,300
|
125,271
|
||||||
|
||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
||||||||
Employee compensation expenses
|
637,475
|
-
|
||||||
General and administrative expenses
|
1,169,932
|
735,241
|
||||||
Depreciation expense
|
7,012
|
1,849
|
||||||
|
1,814,419
|
737,090
|
||||||
|
||||||||
LOSS FROM OPERATIONS
|
(1,742,119
|
)
|
(611,819
|
)
|
||||
|
||||||||
OTHER INCOME (EXPENSE)
|
||||||||
Loss on sale of equipment to related party
|
(42,987
|
)
|
-
|
|||||
Interest expense
|
(148
|
)
|
-
|
|||||
Interest income
|
140
|
-
|
||||||
TOTAL OTHER INCOME (EXPENSE)
|
(42,995
|
)
|
-
|
|||||
|
||||||||
NET LOSS BEFORE INCOME TAXES
|
$
|
(1,785,114
|
)
|
$
|
(611,819
|
)
|
||
Income taxes
|
-
|
-
|
||||||
|
||||||||
NET LOSS
|
$
|
(1,785,114
|
)
|
$
|
(611,819
|
)
|
||
|
||||||||
NET LOSS PER COMMON SHARE, BASIC AND DILUTED
|
$
|
(0.11
|
)
|
$
|
(0.04
|
)
|
||
|
||||||||
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING, BASIC AND DILUTED
|
15,548,247
|
15,430,256
|
|
Members Equity
|
Common Stock
|
||||||||||||||||||||||||||
|
Units
|
Amount
|
Shares
|
Par Value
|
Additional Paid-in Capital
|
Accumulated Deficit
|
Total
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance December 31, 2014
|
10,000
|
$
|
(27,694
|
)
|
520,000
|
$
|
520
|
$
|
1,229,755
|
$
|
(675,004
|
)
|
$
|
527,577
|
||||||||||||||
|
||||||||||||||||||||||||||||
Sale of MariJ Agricultural, Inc.’s common stock
|
127,200
|
127
|
780,473
|
$
|
780,600
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Common stock issued for services
|
19,750
|
20
|
197,480
|
$
|
197,500
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
LLC units issued
|
3,000
|
100
|
$
|
100
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
LLC units cancelled
|
(5,000
|
)
|
-
|
$
|
-
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net income (loss)
|
48,281
|
(660,100
|
)
|
$
|
(611,819
|
)
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance December 31, 2015
|
8,000
|
$
|
20,687
|
666,950
|
$
|
667
|
$
|
2,207,708
|
$
|
(1,335,104
|
)
|
$
|
893,958
|
|||||||||||||||
|
||||||||||||||||||||||||||||
Reverse merger and recapitalization
|
(8,000
|
)
|
(20,687
|
)
|
14,763,306
|
14,763
|
235,608
|
$
|
229,684
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
|
-
|
-
|
15,430,256
|
15,430
|
2,443,316
|
(1,335,104
|
)
|
$
|
1,123,642
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||
Common stock issued for exercise of options
|
15,000
|
15
|
135
|
$
|
150
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Common stock issued for services
|
156,560
|
157
|
286,418
|
$
|
286,575
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Common stock issued for related party payable
|
1,200,000
|
1,200
|
598,800
|
$
|
600,000
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Common stock issued for cash
|
130,000
|
130
|
64,870
|
$
|
65,000
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net loss
|
(1,785,114
|
)
|
$
|
(1,785,114
|
)
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance December 31, 2016
|
-
|
$
|
-
|
16,931,816
|
$
|
16,932
|
$
|
3,393,539
|
$
|
(3,120,218
|
)
|
$
|
290,253
|
|
2016
|
2015
|
||||||
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(1,785,114
|
)
|
$
|
(611,819
|
)
|
||
Adjustments to reconcile net loss to net cash and cash equivalents
used by operating activities:
|
||||||||
Depreciation
|
76,860
|
24,444
|
||||||
Common stock issued for services
|
286,575
|
197,500
|
||||||
Loss on sale of equipment to related party
|
42,987
|
-
|
||||||
(Increase) decrease in:
|
||||||||
Accounts receivable
|
112,070
|
(147,700
|
)
|
|||||
Accounts receivable, related party
|
-
|
100
|
||||||
Inventories
|
(63,085
|
)
|
-
|
|||||
Prepaid expenses and other current assets
|
(33,422
|
)
|
(8,135
|
)
|
||||
Increase (decrease) in:
|
||||||||
Accounts payable and accrued expenses
|
371,243
|
(11,978
|
)
|
|||||
Payable to related party
|
4,000
|
(43,834
|
)
|
|||||
Net cash used by operating activities
|
(987,886
|
)
|
(601,422
|
)
|
||||
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Accounts payable, equipment purchase
|
-
|
(54,921
|
)
|
|||||
Acquisition of property and equipment
|
(35,414
|
)
|
(196,341
|
)
|
||||
Net cash used by investing activities
|
(35,414
|
)
|
(251,262
|
)
|
||||
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from sale of common stock
|
65,000
|
780,600
|
||||||
Proceeds from issuance of member units
|
-
|
100
|
||||||
Common stock issued from exercise of options
|
150
|
-
|
||||||
Proceeds from advances from related party
|
600,000
|
-
|
||||||
Proceeds from reverse acquisition
|
180,854
|
-
|
||||||
Net cash provided by financing activities
|
846,004
|
780,700
|
||||||
|
||||||||
Net change in cash and cash equivalents
|
(177,296
|
)
|
(71,984
|
)
|
||||
|
||||||||
Cash and cash equivalents, beginning of the year
|
221,174
|
293,158
|
||||||
|
||||||||
Cash and cash equivalents, end of the year
|
$
|
43,878
|
$
|
221,174
|
||||
|
||||||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Cash paid for interest
|
$
|
48
|
$
|
-
|
||||
Cash paid for income taxes
|
$
|
-
|
$
|
-
|
||||
|
||||||||
NON-CASH FINANCING AND INVESTING ACTIVITIES:
|
||||||||
Common stock issued from conversion of payable to related party
|
$
|
600,000
|
$
|
-
|
||||
Common stock issued in reverse acquisition and recapitalization
|
$
|
48,830
|
$
|
-
|
||||
Changes in operating assets and liabilities due to reverse acquisition:
|
||||||||
Prepaid expenses
|
$
|
(3,434
|
)
|
$
|
-
|
|||
Property and equipment
|
$
|
(95,860
|
)
|
$
|
-
|
|||
Accumulated depreciation
|
$
|
44,332
|
$
|
-
|
||||
Deposits
|
$
|
(841
|
)
|
$
|
-
|
|||
Accounts payable
|
$
|
6,973
|
$
|
-
|
|
Level 1 – Quoted prices for identical instruments in active markets;
|
|
Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
|
|
Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
|
Quoted Active Markets for Identified Assets
|
Significant Other
Observable Inputs
|
Significant
Unobservable Inputs
|
Total
|
|||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||
December 31, 2016
|
||||||||||||||||
Common stock issued for services
|
-
|
$
|
286,575
|
-
|
$
|
286,575
|
||||||||||
December 31, 2015
|
||||||||||||||||
Common stock issued for services
|
-
|
$
|
197,500
|
-
|
$
|
197,500
|
Acacia Diversified Holdings, Inc.
Shares outstanding at December 31, 2015
|
12,955,406
|
|||
Shares issued to MariJ Group shareholders, January 15, 2016
|
2,474,850
|
|||
|
15,430,256
|
|
2016
|
2015
|
||||||
Raw materials
|
$
|
52,363
|
$
|
-
|
||||
Finished goods (isolates, tinctures and capsules)
|
10,722
|
-
|
||||||
|
$
|
63,085
|
$
|
-
|
|
2016
|
2015
|
||||||
Computer equipment
|
$
|
26,672
|
$
|
6,241
|
||||
Website domain
|
5,000
|
5,000
|
||||||
Extraction and lab equipment
|
558,061
|
527,837
|
||||||
Total property and equipment
|
589,733
|
539,078
|
||||||
Less accumulated depreciation
|
(108,886
|
)
|
(25,325
|
)
|
||||
Net property and equipment
|
$
|
480,847
|
$
|
513,753
|
|
2016
|
2015
|
||||||
Accounts payable to vendors
|
$
|
69,938
|
$
|
12,315
|
||||
Payroll taxes payable
|
11,092
|
-
|
||||||
Accrued bonuses to current CEO
|
59,500
|
-
|
||||||
Accrued severance compensation to former CEO
|
250,000
|
-
|
||||||
|
$
|
390,530
|
$
|
12,315
|
Number of Shares
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life (Yrs)
|
Aggregate Intrinsic Value
|
|||||||||||||
Outstanding at December 31, 2014
|
90,000
|
$
|
0.34
|
4.10
|
$
|
3,150
|
||||||||||
Granted
|
-
|
|||||||||||||||
Exercised
|
-
|
|||||||||||||||
Forfeited or cancelled
|
-
|
|||||||||||||||
Outstanding at December 31, 2015
|
90,000
|
$
|
0.34
|
3.10
|
$
|
10,350
|
||||||||||
Granted
|
-
|
|||||||||||||||
Exercised
|
(15,000
|
)
|
$
|
0.01
|
||||||||||||
Forfeited or cancelled
|
-
|
|||||||||||||||
Outstanding at December 31, 2016
|
75,000
|
$
|
0.41
|
2.71
|
$
|
82,000
|
||||||||||
Exercisable at December 31, 2016*
|
75,000
|
$
|
0.41
|
2.71
|
$
|
82,000
|
|
2016
|
2015
|
||||||||||||||
|
Number of Shares
|
Weighted Average
Exercise Price
|
Number of Shares
|
Weighted Average
Exercise Price
|
||||||||||||
Outstanding at beginning of the year
|
1,000,000
|
$
|
3.00
|
1,326,250
|
$
|
2.64
|
||||||||||
Granted
|
-
|
-
|
-
|
-
|
||||||||||||
Exercised
|
-
|
-
|
-
|
-
|
||||||||||||
Forfeited or cancelled
|
-
|
-
|
-
|
-
|
||||||||||||
Expired
|
1,000,000
|
$
|
3.00
|
326,500
|
$
|
1.31
|
||||||||||
Outstanding at end of year
|
-
|
$
|
-
|
1,000,000
|
$
|
3.00
|
||||||||||
Exercisable at end of year
|
-
|
$
|
-
|
1,000,000
|
$
|
3.00
|
|
2016
|
2015
|
||||||
Net (Loss)
|
$
|
(1,785,114
|
)
|
$
|
(611,819
|
)
|
||
Benefit (expense) for income taxes computed using the statutory rate of 34%
|
606,939
|
208,018
|
||||||
Non-deductible expense
|
(99,086
|
)
|
(51,146
|
)
|
||||
Change in valuation allowance
|
(507,853
|
)
|
(156,872
|
)
|
||||
Provision for income taxes
|
$
|
-
|
$
|
-
|
|
2016
|
2015
|
||||||
Total deferred tax assets – net operating losses
|
$
|
3,731,181
|
$
|
4,162,408
|
||||
Deferred tax liabilities
|
||||||||
Depreciation
|
(789
|
)
|
(789
|
)
|
||||
Net deferred tax assets
|
3,730,392
|
4,161,619
|
||||||
Valuation allowance
|
(3,730,392
|
)
|
(4,161,619
|
)
|
||||
|
$
|
-
|
$
|
-
|
Expiring December 31,
|
Amount of NOL Expiring
|
|||
2019
|
$
|
6,166,000
|
||
2026
|
408,000
|
|||
2027
|
693,000
|
|||
2028
|
771,000
|
|||
2029
|
197,000
|
|||
2030
|
32,000
|
|||
2031
|
415,000
|
|||
2033
|
692,000
|
|||
2034
|
106,000
|
|||
2036
|
1,494,000
|
|||
|
$
|
10,974,000
|
1.
|
MariJ Pharmaceuticals, Inc.
|
2.
|
Canna-Cure Research and Development Center, Inc.
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based upon such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|