PROPERTY, PLANT, AND EQUIPMENT

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT, AND EQUIPMENT

NOTE 4. PROPERTY, PLANT, AND EQUIPMENT

The following table sets forth the components of the Company’s property and equipment on December 31, 2021, and December 31, 2020: 

	December 31, 2021							December 31, 2020
	Gross Carrying Amount		Accumulated Depreciation			Net Book Value		Gross Carrying Amount		Accumulated Depreciation			Net Book Value
Computers, software, and office equipment	$	11,154	$	(5,122	)	$	6,032	$	4,870	$	(2,435	)	$	2,435
Land		–		–			–		–		–			–
Construction in progress		–		–			–		1,566,316		–			1,566,316
Total fixed assets	$	11,154	$	(5,122	)	$	6,032	$	1,571,186	$	(2,435	)	$	1,568,751

As of December 31,2021 and December 31, 2020, the Company had $-0- and $1,566,316, respectively, in construction in progress. The facility acquired as part of the AMS acquisition is a 48,750 square foot marijuana grow facility built on a 6.7-acre parcel of land located in Hanover, Ontario Canada. To date, the exterior construction of the building has been completed; however, no interior construction has begun.

For construction in-progress assets, no depreciation is recorded until the asset is placed in service. When construction is completed, the asset should be reclassified as building, building improvements, or land improvement and should be capitalized and depreciated. Construction in progress includes all costs related to the construction of a medical cannabis facility. Cost also includes soft costs such as loan fees and interest and consulting fees and related expenses. The facility is not available for use and therefore not being amortized. The Company entered into a Purchase and Sale Agreement with a prospective buyer on January 6, 2021. This transaction closed on July 9, 2021 for proceeds of $2,000,000 CAD. Proceeds were used to retire and discharge the note for a repayment of principal of $1,000,000, interest of $124,735 and penalties of $475,265.

For the years ended December 31, 2021, and 2020, the Company recorded depreciation expense of $2,708 and $1,542 respectively.