RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 10 - RELATED PARTY TRANSACTIONS 

A summary of the Company’s related party liabilities as at December 31, 2023 and 2022 is as follows:  

	2023		2022
Loan payable - related party	$	2,155,484	$	74,497
Liability for right-of-use building, current portion		190,177		260,432
Liability for right-of-use building		5,734,962		5,333,045
Total loan payable, related parties	$	8,080,623	$	5,667,974

The loan payable to related parties is comprised of a $13,918 interest-free loan from the Company’s former CEO and a $2,141,566 promissory note from a shareholder of the Company and principal of Koze Investments, LLC (“Koze”) whereby on May 25, 2023, Koze agreed to advance up to $2,000,000 to the Company in funding to pay for certain documented Company expenses. The promissory note with Koze bears interest at 24% compounded monthly. As at December 31, 2023, the accrued interest on the promissory note amounted to $160,366.

Effective January 1, 2022, the Company entered into a lease agreement with Formosa Mountain Ltd., whose principal shareholder is also the principal shareholder of Koze, to lease a cannabis production facility in Cremona, Alberta, Canada. The facility is a 55,000 square foot, 6,000 kg per year plant, built in 2015. The lease payments are $82,500 CAD per month increasing by 5% each year. The lease has a 20-year term. As at December 31, 2023 and 2022, the Company was in arrears by $1,534,478 ($2,029,500 CAD) and $730,951 ($990,000 CAD), respectively, on its monthly lease payment. The amount in arrears is included in accounts payable and accrued liabilities (Note 7).

Effective February 1, 2023, the Company entered into a lease agreement to lease one office at Suite 3600, 888 5^th Avenue SW, Calgary, Alberta, Canada, T2P 3R7. The rent is $500 CAD per month. This space was provided by a company to which Mr. Orman, one of the Company’s directors, serves as a director. During the years ended December 31, 2023 and 2022, the Company incurred rent expense in total of $2,599 and $12,307, respectively.