PREPAID EXPENSES

9 Months Ended

Sep. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES

NOTE 4. PREPAID EXPENSES

The following table sets forth the components of the Company’s prepaid expenses on September 30, 2021, and December 31, 2020: 

	September 30, 2021		December 31, 2020
Prepaid expenses(a)	$	167,199	$	132,031
Total	$	167,199	$	132,031

a) This prepayment remains in trust, from proceeds of the Astor Street, LLC promissory notes, currently being held with the intention of forming part of the initial payment of the pending Cremona acquisition. On March 29, 2021, the Company received the acceptance of our Offer to Purchase certain assets and facilities located in Cremona, Alberta, Canada. The purchase price is $12,550,000 CAD. The Company has paid a $200,000 CAD deposit and closing is expected on April 29, 2021. The 55,200 square foot facility is capable of producing 5,200 kilograms of cannabis biomass per year. The facility previously held Health Canada licenses for cultivation and sales of medical dried flower, as well as extract and edible sales. After closing of the transaction, the Company intends to apply for new Health Canada licenses. Funding for this acquisition is in the due diligence phase.

During the three months ended September 30, 2021, the Company expensed $209,500 in prepaid financing fees to two lenders that were attempting to obtain financing for the acquisition of Cremona but were unsuccessful in doing so.