Form 10-K for CANNABIS SATIVA, INC.
6-May-2016
Annual Report
Results of Operations
Fiscal year ended December 31, 2015 compared with fiscal year ended December 31, 2015
Net revenue for the fiscal years ended December 31, 2015 and 2014 was $11,610 and $7,151, respectively. Cost of revenues for the fiscal years ended December 31, 2015 and 2014 was $5,787 and $2,425, respectively. Gross profit (loss) for the fiscal years ended December 31, 2015 and 2014 was $5,823 and $4,726, respectively. Net loss for the fiscal year ended December 31, 2015 was $7,432,859 compared to net loss of $14,369,732 for the fiscal year ended December 31, 2014.
Total expenses were $7,303,371 for the fiscal year ended December 31, 2015 and $14,397,473 for the fiscal year ended December 31, 2014. The bulk of the expenses for both years were large non-cash transactions. In 2015, the large non-cash transaction was stock issued for services in the amount of $6,540,425. In 2014, the large non-cash transaction was impairment of goodwill in the amount of $13,070,346. Despite the large net loss amounts for both years, because of non-cash transactions, the net cash used in operating activities was $285,304 for 2015 and $408,481 for 2014.
Liquidity and Capital Resources
As stated above, our operations used $285,304 in cash for the year ended December 31, 2015. During the same year, investing activities provided cash of $65,030, and financing activities provided cash of $197,796. Cash required during 2015, came principally from cash proceeds from related parties in the amount of $362,202.
As stated above, our operations used $408,481 in cash for the year ended December 31, 2014. During the same year, investing activities provided cash of $203,805, and financing activities provided cash of $215,807. Cash required during 2014, came principally from cash proceeds from related parties in the amount of $324,950.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. We incurred net loss of $7,432,859 and $14,369,732, respectively, for the years ended December 31, 2015 and 2014 and had an accumulated deficit of $54,093,099 as of December 31, 2015. The Company may seek to raise money for working capital purposes through a public offering of its equity capital or through a private placement of convertible debt. It will be important for the Company to be successful in its efforts to raise capital in this manner if it is going to be able to further its business plan in an aggressive manner. Raising capital in this manner will cause dilution to current shareholders. As mentioned before, for the immediate needs of our current operations, we anticipate continuing to fund operations through management and shareholder loans. There can be no assurance that management and shareholders will continue to loan the Company funds. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
None
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
