10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________

FORM 10-Q

___________________

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended: March 31, 2022
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from: _____________ to _____________

Commission File Number: 000-53571

Cannabis Sativa, Inc.

(Exact name of registrant as specified in its charter)

Nevada	20-1898270
(State or Other Jurisdiction	(I.R.S. Employer
of Incorporation)	Identification No.)

450 Hillside Dr. #A224, Mesquite, Nevada 89027

(Address of Principal Executive Office) (Zip Code)

(702) 762-3123

(Registrant’s telephone number, including area code)

N/A

(Former name, former address, and former fiscal year, if changed since last report)

———————

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered.
None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of shares of the issuer’s Common Stock outstanding as of May 13, 2022, is 32,053,109.

PART I—FINANCIAL INFORMATION

Item 1.  Financial Statements.

Attached after signature page.

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Certain statements in this Report constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, among others, uncertainties relating to general economic and business conditions; industry trends; changes in demand for our products and services; uncertainties relating to customer plans and commitments and the timing of orders received from customers; announcements or changes in our pricing policies or that of our competitors; unanticipated delays in the development, market acceptance or installation of our products and services; changes in government regulations; availability of management and other key personnel; availability, terms, and deployment of capital; relationships with third-party equipment suppliers; and worldwide political stability and economic growth. The words “believe,” “expect,” “anticipate,” “intend” and “plan” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

Results of Operations

Three Months Ended March 31, 2022 compared with the Three Months Ended March 31, 2021

Prior to April 22, 2021, the Company operated two business segments: PrestoCorp, Inc. (“PrestoCorp”), a telehealth business, and GK Manufacturing and Packaging, Inc. (“GKMP”), a contract manufacturing business. On April 22, 2021, the Company sold its controlling interest in GKMP and iBud Tender, Inc. (“iBud”).  The discontinued operations of GKMP and iBud are reported separately, below.   Discussion of results of operations includes the consolidated results of PrestoCorp.

	Three Months Ended
	A			B			A-B
	March 31, 2022			March 31, 2021			Change			Change %
REVENUE	$	423,701		$	482,350		$	(58,649	)		-12	%
Cost of revenues		158,689			183,503			(24,814	)		-14	%
Cost of sales % of total sales		37	%		38	%		-1	%
Gross profit		265,012			298,847			(33,835	)		-11	%
Gross profit % of sales		63	%		62	%		1	%
EXPENSES
Professional fees		121,906			119,739			2,167			2	%
Depreciation and amortization		42,353			42,881			(528	)		-1	%
Wages and salaries		186,761			149,845			36,916			25	%
Advertising		16,221			92,635			(76,414	)		-82	%
General and administrative		227,602			366,428			(138,826	)		-38	%
Total expenses		594,843			771,528			(176,685	)		-23	%
NET LOSS FROM CONTINUING OPERATIONS		(329,831	)		(472,681	)		142,850			-30	%

2

Revenues declined 12% in the three months ended March 31, 2022 compared to the three months ended March 31, 2021 primarily due to the softening economy and inflationary pressures that have increased costs of necessities and reduced incomes of customers for more discretionary expenditures as provided by PrestoCorp.  While access to medical marijuana may be considered by some to be a necessity, the costs are not generally covered by insurance and in the current economic climate, our customers may choose not to pursue access to medical marijuana until economic conditions improve.  The need for access to medical marijuana is also impacted by the growing number of states that have legalized adult recreational use, thereby limiting the need in those states for the medical marijuana cards available through the PrestoCorp services.     

Net operating loss for the three-month period ended March 31, 2022 decreased 30% in the current period compared to the prior period. The decrease in net loss is a result of significant reductions in advertising and general and administrative expenses.  Total operating expenses decreased 23% in the current quarter.  The decrease in total operating costs was largely attributable to a significant reduction of 82% in advertising and 38% in general and administrative costs, partially offset by a 25% increase in wages and salaries resulting from annual salary and wage increases for PrestoCorp personnel.

Discontinued Operations

In April 2021, the Company entered into discussions with THC Farmaceuticals, Inc. (“CBDG”) regarding sale of CBDS’s controlling interest positions in GKMP and iBudtender Inc. (iBud”). The discussions were triggered by an interest on the part of CBDS management to refocus business efforts on growing PrestoCorp while streamlining financial reporting and management processes by eliminating assets that are no longer considered essential to the Company’s core focus.  The sale was completed on April 22, 2021.  Management believes that the sale of GKMP and iBud will free up management time and resources to seek other acquisitions that are more closely aligned with the PrestoCorp business model.  Consideration for the sale of the controlling interests consisted of 1,500,000 shares of CBDG common stock and 1,500,000 shares of CBDG preferred stock valued at $600,000 on the date of the acquisition. iBud had no revenues in the periods presented. Summaries of the discontinued operations of GKMP and  iBud through March 31, 2021 are provided below. There were no operations by either GKMP or iBud in the three months ended March 31, 2022.

	Three Months Ended
Discontinued Operations	March 31, 2022		March 31, 2021
REVENUE		-		74,973
Cost of revenues		-		81,511
Cost of sales % of total sales		-		109	%
Gross profit		-		(6,538	)
Gross profit % of sales		-		-9	%
OPERATING EXPENSES
Professional fees		-		-
Depreciation and amortization		-		4,700
Wages and salaries		-		58,617
Advertising		-		998
General and administrative		-		91,181
Interest expense		-		2,144
Total operating expenses		-		157,640
NET LOSS FROM DISCONTINUED OPERATIONS		-		(164,178	)

3

Liquidity and Capital Resources

Net cash used in operating activities for the three-month period ended March 31, 2022, was $47,799.  During the same period, our cash decreased by $41,459.  Financing activities generated $6,340 in the three months from related party notes payable.  We also reported stock-based compensation of $246,654 during the three-month period from issuance of common and preferred stock as compensation for services performed by officers, directors, and contractors. On March 31, 2022, our cash position was $152,601. Given the level of operations in our first quarter, we expect that additional funds will be required.

The accompanying condensed 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 losses attributable to Cannabis Sativa, Inc. of $90,891 and $419,990 (including the loss of $164,178 attributable to discontinued operations), respectively, for the three-month periods ended March 31, 2022 and 2021, and had an accumulated deficit of $79,566,859 as of March 31, 2022, which, among other factors, raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due.

Management is currently evaluating several fund-raising alternatives including private placement of equity securities, a secondary public offering, and various debt instruments. In addition, key members of management have indicated a willingness to provide additional operating capital from time to time. We are also currently selling a portion of our investment securities to generate cash for operations. Based on all these considerations, we believe we will have sufficient capital to operate the business for the next twelve months. It will be important for the Company to be successful in its efforts to raise capital 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.

On May 4, 2022, the Company signed a non-binding letter of intent to merge with MJ Harvest, Inc. (“MJHI”), a company operating a vertically integrated cannabis business covering growing operations, extraction, manufacturing operations, and distribution of products through customer dispensaries.  MJHI has one company owned location in Colorado, is expected to close on a second facility in California before the end of May 2022, and has a 25% investment in PPK, Investment Group, Inc. (“PPK”). PPK has growing, manufacturing and distribution operations in Oklahoma, South Dakota, and Arizona, and is in the process of opening new locations in New York and Florida. Management expects that the merger with MJHI will provide adequate cash flow and growth opportunities to meet the Company’s liquidity requirements in coming periods.  No assurances can be given that the merger will be consummated, or the combined companies’ operations will be sufficient to allow the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due.

COVID-19

The COVID-19 pandemic is continuing. The evolution of new variants and their rapid spread around the world and throughout the United States has many countries, including the United States, instituting continuing restrictions on travel, public gatherings, and certain business operations. These restrictions have significantly disrupted economic activity in the United States and Worldwide. To date, the disruption has not materially impacted the Company’s financial statements. Initially, the pandemic had a positive impact on the telehealth business, but this positive impact has lessened as COVID-19 restrictions have eased, but the risk remains for a new outbreak of a virulent new strain to develop, and further disruptions are a continuing concern.

The effects of the continued outbreak of COVID-19 and related government responses could include extended disruptions to supply chains and capital markets, reduced labor availability and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts on the Company, including our ability to operate our facilities. To date, there have been no material adverse impacts to the Registrants’ operations due to COVID-19.

In addition, the economic disruptions caused by COVID-19 could also adversely impact the impairment risks for certain long-lived assets, equity method investments and goodwill. Management evaluated these impairment considerations and determined that no such impairments occurred through the date of this report.

Off Balance Sheet Arrangements

None

4

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not required.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures

At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act). Based on that evaluation, the CEO and the CFO have concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures.

Management of the Company believes that these material weaknesses are due to the small size of the company’s accounting staff. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting during the quarter ended March 31, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

5

PART II – OTHER INFORMATION

Item 1.  Legal Proceedings.

We are not a party to any material legal proceedings, and, to the best of our knowledge, no such legal proceedings have been threatened against us.

Item 1A.  Risk Factors

Not required.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

During the fiscal quarter ended March 31, 2022, no shares of common or preferred stock were issued.  The Company did incur obligations under independent contractor agreements requiring issuance of common and preferred stock aggregating $195,675 for the first fiscal quarter, and that amount is reflected on the balance sheet as Stock Payable at March 31, 2022. The Company issued an aggregate of 727,538 common shares and 250,000 preferred shares in payment of the Stock Payable amount in the Company’s second quarter.

Item 3.  Defaults Upon Senior Securities.

None.

Item 4.  Mine Safety Disclosures.

Not applicable.

Item 5.  Other Information.

None.

6

Item 6.  Exhibits. 

The following documents are included as exhibits to this report:

(a) Exhibits

Exhibit Number	SEC Reference Number	Title of Document	Notes
3.1	3	Articles of Incorporation	(1)
3.2	3	Bylaws	(1)
31.1	31	Section 302 Certification of Principal Executive Officer
31.2	31	Section 302 Certification of Principal Financial Officer
32.1	32	Section 1350 Certification of Principal Executive Officer
32.2	32	Section 1350 Certification of Principal Financial Officer
101.INS		XBRL Instance Document	(2)
101.SCH		XBRL Taxonomy Extension Schema	(2)
101.CAL		XBRL Taxonomy Extension Calculation Linkbase	(2)
101.DEF		XBRL Taxonomy Extension Definition Linkbase	(2)
101.LAB		XBRL Taxonomy Extension Label Linkbase	(2)
101.PRE		XBRL Taxonomy Extension Presentation Linkbase	(2)

(1) Incorporated by reference to Exhibits 3.01 and 3.02 of the Company’s Registration Statement on Form 10 filed January 28, 2009.

(2) XBRL information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and is not subject to liability under those sections, is not part of any registration statement or prospectus to which it relates and is not incorporated or deemed to be incorporated by reference into any registration statement, prospectus or other document.  

7

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Cannabis Sativa, Inc. 

Date:  May 23, 2022

By:  /s/ David Tobias

David Tobias, Chief Executive Officer

By:  /s/ Brad E. Herr

Brad E. Herr, Chief Financial Officer and

Principal Accounting Officer

8

CANNABIS SATIVA, INC.

Contents

	Page
FINANCIAL STATEMENTS - UNAUDITED – for the three months ended March 31, 2022 and 2021:
Condensed Consolidated balance sheets	FS - 2
Condensed Consolidated statements of operations	FS - 3
Condensed Consolidated statements of changes in stockholders’ equity	FS - 4
Condensed Consolidated statements of cash flows	FS - 5
Notes to Condensed consolidated financial statements	FS – 6 through FS – 14

FS - 1

CANNABIS SATIVA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED

	March 31, 2022			December 31, 2021
ASSETS
Current Assets
Cash	$	152,601		$	194,060
Investment in equity securities, at fair value		455,193			208,540
Total Current Assets		607,794			402,600
Other Assets
Property and equipment, net		1,322			1,974
Intangible assets, net		278,521			320,806
Goodwill		1,837,202			1,837,202
Total Assets	$	2,724,839		$	2,562,582
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	125,202		$	95,031
Accrued interest - related parties		220,037			204,613
Notes payable to related parties		1,239,378			1,218,038
Total Current Liabilities		1,584,617			1,517,682
Long-Term Liabilities
Stock payable		195,675			—
Total Liabilities		1,780,292			1,517,682
Commitments and contingencies (Note 7)
Stockholders’ Equity (Deficit):
Preferred stock $0.001 par value; 5,000,000 shares authorized; 777,654 issued and outstanding, respectively		778			778
Common stock $0.001 par value; 45,000,000 shares authorized; 30,746,865 shares issued and outstanding, respectively		30,748			30,748
Additional paid-in capital		79,151,240			79,151,240
Accumulated deficit		(79,566,859	)		(79,475,968	)
Total Cannabis Sativa, Inc. Stockholders’ Deficit		(384,093	)		(293,202	)
Non-Controlling Interest		1,328,640			1,338,102
Total Stockholders’ Equity		944,547			1,044,900
Total Liabilities and Stockholders’ Equity	$	2,724,839		$	2,562,582

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

FS - 2

CANNABIS SATIVA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED

For the three months ended March 31,	2022			2021
Revenues	$	423,701		$	482,350
Cost of Revenues		158,689			183,503
Gross Profit		265,012			298,847
Operating Expenses
Professional fees		121,906			119,739
Depreciation and amortization		42,353			42,881
Wages and salaries		186,761			149,845
Advertising		16,221			92,635
General and administrative		227,602			366,428
Total Operating Expenses		594,843			771,528
Net Loss from Operations		(329,831	)		(472,681	)
Other (Income) and Expenses
Unrealized gain on investments		(246,654	)		(151,000	)
Interest expense		17,176			6,193
Total Other (Income) Expenses, Net		(229,478	)		(144,807	)
Net Loss Before Income Taxes		(100,353	)		(327,874	)
Income Taxes		-			-
Net Loss from Continuing Operations		(100,353	)		(327,874	)
Net Income (Loss) from Discontinued Operations
Operating loss on discontinued operations		-			(162,034	)
Interest expense - discontinued operations		-			(2,144	)
Net Income (Loss) from Discontinued Operations		-			(164,178	)
Net Loss		(100,353	)		(492,052	)
Loss attributable to non-controlling interest - GKMP		-			(79,495	)
Loss attributable to non-controlling interest - iBudTender		-			(970	)
Loss attributable to non-controlling interest - PrestoCorp		(9,462	)		8,403
Net Loss Attributable To Cannabis Sativa, Inc.	$	(90,891	)	$	(419,990	)
Net Loss per Common Share: Basic and diluted
From continuing operations	$	nil		$	(0.01	)
From discontinued operations		-			(0.01	)
Total	$	nil		$	(0.02	)
Weighted Average Common Shares Outstanding:
Basic & Diluted		30,746,865			27,988,129

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

FS - 3

CANNABIS SATIVA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 – UNAUDITED

	Preferred Stock						Common Stock						Additional Paid-In			Accumulated			Non-controlling Interest -			Non-controlling Interest -			Non-controlling Interest - GK
	Shares			Amount			Shares			Amount			Capital			Deficit			Prestocorp			iBudTender			Manufacturing			Total
Balance - January 1, 2021		1,090,128		$	1,090			27,453,178		$	27,455		$	77,660,014		$	(77,028,339	)	$	1,193,798		$	47,264		$	(263,067	)	$	1,638,215
Conversion of Preferred to Common		(167,966	)		(167	)		167,966			167			-			-			—			—			—			—
Cash proceeds from sale of stock		—			—			10,466			10			4,990			—			—			—			—			5,000
Shares issued for services		73,530			73			879,002			880			489,033			—			—			—			—			489,986
Shares cancelled		—			—			(55,556	)		(57	)		(19,943	)		—			—			—			—			(20,000	)
Net income (loss) for the period		—			—			—			—			—			(419,990	)		8,403			(970	)		(79,495	)		(492,052	)
Balance - March 31, 2021		995,692		$	996			28,455,056		$	28,455		$	78,134,094		$	(77,448,329	)	$	1,202,201		$	46,294		$	(342,562	)	$	1,621,149
Balance - January 1, 2022		777,654		$	778			30,746,865		$	30,748		$	79,151,240		$	(79,475,968	)	$	1,338,102		$	—		$	—		$	1,044,900
Net loss for the period		—			—			—			—			—			(90,891	)		(9,462	)		—			—			(100,353	)
Balance - March 31, 2022		777,654		$	778			30,746,865		$	30,748		$	79,151,240		$	(79,566,859	)	$	1,328,640		$	—		$	—		$	944,547

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

FS - 4

CANNABIS SATIVA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

For the three months ended March 31,	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss for the period	$	(100,353	)	$	(492,052	)
Adjustments to reconcile net loss for the period to
net cash provided (used) by operating activities:
Unrealized gain on investment		(246,654	)		(151,000	)
Depreciation and amortization		42,353			47,582
Cancellation of shares for services		-			(20,000	)
Depreciation included in cost of revenues		-			8,929
Shares issued for services		-			489,986
Stock payable for services		195,675			-
Write off of abandoned fixed assets		585			-
Note payable issued for services		15,000			-
Changes in Assets and Liabilities:
Inventories		-			27,050
Prepaid consulting and other current assets		-			(5,933	)
Accounts payable and accrued expenses		30,171			18,915
Accrued interest - related parties		15,424			14,851
Customer deposits		-			(25,545	)
Net Cash Used in Operating Activities		(47,799	)		(87,217	)
Cash Flows from Investing Activities:
Net Cash Provided by Investing Activities		-			-
Cash Flows from Financing Activities:
Proceeds from sale of common stock		-			5,000
Proceeds from advances from related parties		-			48,258
Proceeds from related parties notes payable, net		6,340			20,500
Net Cash Provided by Financing Activities		6,340			73,758
NET CHANGE IN CASH		(41,459	)		(13,459	)
CASH AT BEGINNING OF PERIOD		194,060			322,107
CASH AT END OF PERIOD	$	152,601		$	308,648

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

FS - 5

CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

For the three-month periods ended March 31, 2022 and 2021

1. Organization and Summary of Significant Accounting Policies

Nature of Business:

Cannabis Sativa, Inc. (the “Company,” “us”, “we” or “our”) was incorporated as Ultra Sun Corp. under the laws of Nevada in November 2004. On November 13, 2013, we changed our name to Cannabis Sativa, Inc. We operate through several subsidiaries including:

· PrestoCorp, Inc. (“PrestoCorp”)

· Wild Earth Naturals, Inc. (“Wild Earth”)

· Kubby Patent and Licenses Limited Liability Company (“KPAL”)

· Hi Brands, International, Inc. (“Hi Brands”)

· Eden Holdings LLC (“Eden”).

· iBudtender, Inc. (“iBud”) – through April 2021

· GK Manufacturing and Packaging, Inc. (“GKMP”)- through April 2021

PrestoCorp is a 51% owned subsidiary and until April 22, 2021, GKMP and iBud were 51% and 50.1% owned subsidiaries. Wild Earth, KPAL, Hi Brands, and Eden are wholly owned subsidiaries. At December 31, 2021, PrestoCorp is the sole operating subsidiary. Until sale of the Company’s interest in April 2021, GKMP and iBud tender were operating subsidiaries although iBud was not generating any revenue.

Our primary operations for the years ended December 31, 2021 and 2020 were through PrestoCorp, which provides telemedicine online referral services for customers desiring medical marijuana cards in states where medical marijuana has been legalized. The Company is actively seeking new business opportunities for acquisition and is continually reviewing opportunities for product and brand development through our Wild Earth, Hi Brands, and KPAL subsidiaries.

FS - 6

CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

For the three-month periods ended March 31, 2022 and 2021

Basis of Presentation

Operating results for the three months ended March 31, 2022 may not be indicative of the results expected for the full year ending December 31, 2022. For further information, refer to the financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The interim financial statements should be read in conjunction with audited financial statements and related footnotes set forth in our annual report filed on Form 10-K for the year ended December 31, 2021, as filed with the United States Securities and Exchange Commission on April 14, 2022.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of March 31, 2022, and its results of operations, cash flows, and changes in stockholders’ equity for the three months ended March 31, 2022. The financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States (‘GAAP”) for complete financial statements.

Principles of Consolidation:

The condensed consolidated financial statements include the accounts of Cannabis Sativa, Inc. (the “Company” or “CBDS”), and its wholly-owned subsidiaries and PrestoCorp, a 51% owned subsidiary. On April 22, 2021, we sold our interests in two companies in which the Company had majority control, iBud and GKMP. These condensed consolidated financial statements include operations of iBud and GKMP through April 22, 2021. All significant inter-company balances have been eliminated in consolidation. 

Going Concern:

The Company has an accumulated deficit of $79,566,859 and negative working capital of $976,823 at March 31, 2022, which, among other factors, raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due.

Net Loss per Share:

Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. Potentially dilutive shares are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. For the three months ended March 31, 2022 and 2021, the Company had 175,000 and 175,000 outstanding warrants, respectively, and 777,654 and 995,692 shares of convertible preferred stock, respectively, that would be dilutive to future periods net income if converted.

FS - 7

CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

For the three-month periods ended March 31, 2022 and 2021

Recent Accounting Pronouncement:

Accounting Standards Updates Adopted

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Adoption of this update had no impact on the Company’s consolidated financial statements.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

2. Intangibles and Goodwill

The Company considers all intangibles to be definite-lived assets with lives of 5 to 10 years. Intangibles consisted of the following at March 31, 2022 and December 31, 2021:

	March 31, 2022			December 31, 2021
CBDS.com website (Cannabis Sativa)	$	13,999		$	13,999
Intellectual Property Rights (PrestoCorp)		240,000			240,000
Patents and Trademarks (KPAL)		1,281,411			1,281,411
Total Intangibles		1,535,410			1,535,410
Less: Accumulated Amortization		(1,256,889	)		(1,214,604	)
Net Intangible Assets	$	278,521		$	320,806

Amortization expense for each of the three months ended March 31, 2022 and 2021 was $42,285, respectively.

Amortization of intangibles through 2027 is: 

April 1, 2022 to March 31, 2023	$	157,501
April 1, 2023 to March 31, 2024		116,118
April 1, 2024 to March 31, 2025		932
April 1, 2025 to March 31, 2026		932
April 1, 2026 to March 31, 2027		932

FS - 8

CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

For the three-month periods ended March 31, 2022 and 2021

Goodwill in the amount of $3,010,202 was recorded as part of the acquisition of PrestoCorp that occurred on August 1, 2017. Cumulative impairment of the PrestoCorp goodwill totals $1,173,000 as of December 31, 2021 and 2020. The balance of goodwill at March 31, 2022 and December 31, 2021 was $1,837,202.

3. Sale of Majority Owned Subsidiaries and Discontinued Operations

On April 22, 2021, the Company sold its majority interests in GKMP (51%) and iBud (50.1%) to THC Farmaceuticals, Inc. (“CBDG”). In consideration of the transaction, the Company received 1,500,000 shares of CBDG common stock and 1,500,000 shares of CBDG preferred stock. The Company’s Chief Executive Officer and Chairman of the Board, David Tobias is a Director of CBDG. Shares of CBDG common stock are traded on the OTC Pink Sheets Market.

The sale of the Company’s majority interests was undertaken to allow the Company to focus on its other operating subsidiary, PrestoCorp, to focus on capital formation for expansion of PrestoCorp, and to pursue other opportunities. At the time of the sale, iBud was inactive and GKMP had not yet achieved positive cash flow from operations.

On the closing date of the sale, CBDG common shares closed at $0.20 per share, for a fair value of $300,000. The CBDG preferred stock received is convertible into CBDG common stock on a one for one basis and has no other rights or preferences that distinguish it from the common stock and are convertible at any time by the Company. Management determined that the shares of preferred stock received are equivalent to CBDG’s common stock and valued the preferred shares at the same rate. In the aggregate, the total shares of CBDG stock received were valued at $600,000 on the date of the sale.

During the year ended December 31, 2021, the Company recognized a gain on sale of subsidiaries of $164,736 which represented the value of the consideration received consisting of the value of CBDG’s shares plus the carrying value of the subsidiaries’ non-controlling interest reduced by the net asset of each subsidiary:

Consideration received:
Common stock of CBDG, fair value	$	300,000
Preferred stock of CBDG, fair value		300,000
Total consideration		600,000
Non-controlling interests		(331,884	)
Net assets of subsidiaries on date of disposition:
GKMP		112,350
iBud		(8,970	)
Net assets		103,380
Gain on sale of subsidiaries	$	164,736

FS - 9

CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

For the three-month periods ended March 31, 2022 and 2021

As a result of the sale, the Company has discontinued its operations for both subsidiaries. Summaries of the discontinued operations of GKMP and iBud for the period January 1, 2021 to March 31, 2021 are provided below.

	January 1 to
Discontinued Operations	March 31, 2021
REVENUE	$	74,973
Cost of revenues		81,511
Cost of sales % of total sales		109	%
Gross profit		(6,538	)
Gross profit % of sales		-9	%
EXPENSES
Professional fees		-
Depreciation and amortization		4,700
Wages and salaries		58,617
Advertising		998
General and administrative		91,181
Interest expense		2,144
Total expenses		157,640
NET LOSS FROM DISCONTINUED OPERATIONS	$	(164,178	)

GKMP and iBud generated losses from operations during the periods they were operated by the Company. The sale of our interests in GKMP and iBud was to allow management to devote more resources to PrestoCorp. 

4. Related Party Transactions

In addition to items disclosed in Notes 3 and 6, the Company had additional related party transactions during the three months ended March 31, 2022 and 2021.

The Company has received funds from borrowings on notes payable and advances from related parties and officers of the Company to cover operating expenses. Related parties include the officers and directors of the Company and a significant shareholder holding in excess of 10% of the Company’s outstanding shares.

During the three months ended March 31, 2022, David Tobias loaned $6,340 cash to the Company for notes payable bearing interest at the rate of 5% per annum due on December 31, 2022. In the three months ended March 31, 2022, the Company and Cathy Carroll, director, entered into a non-cash note payable for $15,000 for compensation due her for services. Ms. Carroll’s note bears interest at 5% per annum and is due December 31, 2022.

During the three months ended March 31, 2022 and 2021, the Company recorded interest expense related to notes payable to related parties at the rates between 5% and 8% per annum in the amounts of $17,176 and $8,337, respectively.

FS - 10

CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

For the three-month periods ended March 31, 2022 and 2021

In 2021, the Company received short-term advances from the principals of GKMP in the amounts of $48,083 bringing the balance due to $67,058. These advances are not interest bearing. The advances were assumed by the acquirer of GKMP and are no longer an obligation of the Company. See Note 3.

The following tables reflect the related party advance and note payable balances. 

	Notes payable to related parties		Accrued interest -related parties
	March 31, 2022
David Tobias, CEO & Director	$	992,878	$	181,539
New Compendium, greater than 10% Shareholder		152,500		29,593
Cathy Carroll, Director		90,000		8,055
Other Affiliates		4,000		850
Totals	$	1,239,378	$	220,037

	Notes payable to related parties		Accrued interest -related parties
	December 31, 2021
David Tobias, CEO & Director	$	986,538	$	169,057
New Compendium, greater than 10% Shareholder		152,500		27,688
Cathy Carroll, Director		75,000		7,068
Other Affiliates		4,000		800
Totals	$	1,218,038	$	204,613

In the three months ended March 31, 2022 and 2021, the Company incurred approximately $14,000 and $28,000, respectively, for consulting services from a nephew of the Company’s president. The current period services were accrued at March 31, 2022 and paid in April 2022. The services for the period ended March 31, 2021 were paid in shares of the Company’s common stock. These amounts are included in the statements of operations in general and administrative expenses.

5. Investments

At March 31, 2022 and December 31, 2021, the Company owns 8,238,769 shares respectively, of common stock of Medical Cannabis Payment Solutions (ticker: REFG). At March 31, 2022 and December 31, 2021, the fair value of the investment in REFG was $41,193 and $25,540, respectively. The Company recognized a gain on the change in fair value of $15,654 and $151,000 during the three months ended March 31, 2022 and 2021, respectively.

FS - 11

CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

For the three-month periods ended March 31, 2022 and 2021

In 2021, the Company received 1,500,000 shares of common stock and 1,500,000 shares of preferred stock of THC Pharmaceuticals Inc. (ticker: CBDG). The CBDG shares were received as consideration for the sale of the Company’s majority interest in iBud and GKMP in the year ended December 31, 2021. On the date of sale, the shares were valued at fair value which was $0.20 per share or $600,000 in the aggregate. See Note 4. The Company’s Chief Executive Officer and Chairman of the Board, David Tobias is a Director of CBDG.

The Company’s investment in CBDG represents 15% of CBDG’s voting shares on a fully diluted basis which, coupled with Mr. Tobias’ position as a director and his individual investment in CBDG, results in the Company having significant influence over CBDG.  The Company elected to account for its investment in CBDG at fair value because the Company does not intend to hold the investment for a long period of time and the shares are readily marketable.   The fair value of the Company’s investment at March 31, 2022 and December 31, 2021 was $414,000 and $183,000 resulting in a gain of $231,000 and $-0- for the change in fair value during the three months ended March 31, 2022 and 2021, respectively.

6. Stockholders’ Equity

Securities Issuances

During the three months ended March 31, 2022, no common or preferred shares were issued by the Company. At March 31, 2022, the Company owed independent contractors for services payable in stock and recorded as stock payable as follows:

	Stock Payable March 31, 2022
Services	Common		Preferred		Value
Related Parties
David Tobias, Officer, Director		-		250,000	$	50,000
Brad Herr, Officer, Director		250,000		-		50,000
Robert Tankson, Director		15,625		-		3,125
Trevor Reed, Director		15,625		-		3,125
Total related party issuances		281,250		250,000	$	106,250
Non-related party issuances		446,288		-	$	89,425
Total shares for services		727,538		250,000	$	195,675

During the three months ended March 31, 2021, shares of common stock and preferred stock were issued to related and non-related parties for the purposes indicated, as follows:

	Share Issuances
Services	Common			Preferred			Value
Related Party issuances
David Tobias, Officer, Director		-			73,530		$	37,500
Brad Herr, Officer, Director		122,550			-			62,500
Robert Tankson, Director		54,203			-			28,482
Cathy Carroll, Director		73,530			-			37,500
Trevor Reed, Director		12,255			-			6,250
Keith Hyatt, President GKMP		35,404			-			18,056
Kyle Powers, CEO PrestoCorp		167,790			-			88,929
Total related party issuances		465,732			73,530			279,217
Non-related party issuances		413,270			-			210,769
Total shares for services		879,002			73,530			489,986
Issuance for cash		10,466			-			5,000
Preferred stock converted to common		167,966			(167,966	)		-
Shares cancelled		(55,556	)		-			(20,000	)
Aggregate totals		1,001,878			(94,436	)	$	474,986

During the three months ended March 31, 2021, the Company cancelled shares that had been returned after it was determined the shares have been erroneously issued to a vendor in 2020.

FS - 12

CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

For the three-month periods ended March 31, 2022 and 2021

During the three months ended March 31, 2021, David Tobias, Chief Executive Officer and Director, converted 167,966 shares of preferred stock into an equal number of common stock in accordance with the terms of the preferred stock.

7. Commitments and Contingencies

Leases.

PrestoCorp leases office space through WeWork in New York on a month-to-month arrangement. Rent expense for the three months ended March 31, 2022 and 2021 was $18,723 and $4,888, respectively. On April 12, 2022, PrestoCorp signed a new lease in New York for a two year term at $2,590 per month expiring in April 2024.

Litigation.

In the ordinary course of business, we may face various claims brought by third parties and we may, from time to time, make claims or take legal actions to assert our rights, including intellectual property disputes, contractual disputes and other commercial disputes. Any of these claims could subject us to litigation. As of March 31, 2022, no claims are outstanding.

8. Subsequent Events

In April 2022, the Company issued 727,538 shares of common stock and 250,000 shares of preferred stock to officers, directors and independent contractors in payment of compensation accrued in the quarter ended March 31, 2022.  The shares of common and preferred stock were valued in the aggregate at $195,675.  An additional 578,704 shares of common stock and 209,333 shares of preferred stock valued in the aggregate at $188,889 were issued in April 2022 to officers, directors and independent contractors for services provided in the second quarter.

On May 11, 2022, the Company announced a non-binding letter of intent to merge with MJ Harvest, Inc., a publicly traded Nevada corporation (“MJHI”). The companies are continuing discussions relating to structure and timing of the merger. David Tobias, CEO and Director of the Company is also a Director of MJHI. Brad Herr, CFO and Director of the Company is also CFO of MJHI.

FS - 13

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Tobias, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, of Cannabis Sativa, Inc., (the “Registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Registrant and have:

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 on 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 (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions);

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.

Date:	May 23, 2022	By:	/s/ David Tobias
			Principal, Principal Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brad E. Herr, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, of Cannabis Sativa, Inc., (the “Registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Registrant and have:

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 on 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 (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions);

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.

Date:	May 23, 2022	By:	/s/ Brad E. Herr
			Brad E. Herr, Principal Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cannabis Sativa, Inc. (the “Registrant”) on Form 10-Q for the quarter ended March 31, 2022, as filed with the Commission on the date hereof (the “Quarterly Report”), I, David Tobias, Principal Executive Officer of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated: May 23, 2022
	/s/ David Tobias
	David Tobias Principal Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cannabis Sativa, Inc. (the “Registrant”) on Form 10-Q for the quarter ended March 31, 2022, as filed with the Commission on the date hereof (the “Quarterly Report”), I, Brad E. Herr, Principal Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated: May 23, 2022
	/s/ Brad E. Herr
	Brad E. Herr Principal Financial Officer

XML

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 13, 2022
Cover [Abstract]
Entity Registrant Name	Cannabis Sativa, Inc.
Entity Central Index Key	0001360442
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		32,053,109
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	000-53571
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	20-1898270
Entity Address Address Line 1	450 Hillside
Entity Address City Or Town	Mesquite
Entity Address State Or Province	NV
City Area Code	702
Entity Address Address Line 2	Dr. #A224
Entity Address Postal Zip Code	89027
Local Phone Number	762-3123

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current Assets
Cash	$ 152,601	$ 194,060
Investment in equity securities, at fair value	455,193	208,540
Total Current Assets	607,794	402,600
Other Assets
Property and equipment, net	1,322	1,974
Intangible assets, net	278,521	320,806
Goodwill	1,837,202	1,837,202
Total Assets	2,724,839	2,562,582
Current Liabilities
Accounts payable	125,202	95,031
Accrued interest - related parties	220,037	204,613
Notes payable to related parties	1,239,378	1,218,038
Total Current Liabilities	1,584,617	1,517,682
Long-Term Liabilities
Stock payable	195,675	0
Total Liabilities	1,780,292	1,517,682
Stockholders' Equity (Deficit):
Preferred stock $0.001 par value; 5,000,000 shares authorized; 777,654 issued and outstanding, respectively	778	778
Common stock $0.001 par value; 45,000,000 shares authorized; 30,746,865 shares issued and outstanding, respectively	30,748	30,748
Additional paid-in capital	79,151,240	79,151,240
Accumulated deficit	(79,566,859)	(79,475,968)
Total Cannabis Sativa, Inc. Stockholders' Deficit	(384,093)	(293,202)
Non-Controlling Interest	1,328,640	1,338,102
Total Stockholders' Equity	944,547	1,044,900
Total Liabilities and Stockholders' Equity	$ 2,724,839	$ 2,562,582

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	777,654	777,654
Preferred Stock, Shares Outstanding	777,654	777,654
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	45,000,000	45,000,000
Common Stock, Shares, Issued	30,746,865	30,746,865
Common Stock, Shares, Outstanding	30,746,865	30,746,865

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 423,701	$ 482,350
Cost of Revenues	158,689	183,503
Gross Profit	265,012	298,847
Operating Expenses
Professional fees	121,906	119,739
Depreciation and amortization	42,353	42,881
Wages and salaries	186,761	149,845
Advertising	16,221	92,635
General and administrative	227,602	366,428
Total Operating Expenses	594,843	771,528
Net Loss from Operations	(329,831)	(472,681)
Other (Income) and Expenses
Unrealized gain on investments	(246,654)	(151,000)
Interest expense	17,176	6,193
Total Other (Income) Expenses, Net	(229,478)	(144,807)
Net Loss Before Income Taxes	(100,353)	(327,874)
Income Taxes	0	0
Net Loss from Continuing Operations	(100,353)	(327,874)
Net Income (Loss) from Discontinued Operations
Operating loss on discontinued operations	0	(162,034)
Interest expense - discontinued operations	0	(2,144)
Net Income (Loss) from Discontinued Operations	0	(164,178)
Net Loss	(100,353)	(492,052)
Loss attributable to non-controlling interest - GKMP	0	(79,495)
Loss attributable to non-controlling interest - iBudTender	0	(970)
Loss attributable to non-controlling interest - PrestoCorp	(9,462)	8,403
Net Loss Attributable To Cannabis Sativa, Inc.	$ (90,891)	$ (419,990)
Net Loss per Common Share: Basic and diluted
From continuing operations		$ (0.01)
From discontinued operations	$ 0	$ (0.01)
Total		$ (2.00)
Weighted Average Common Shares Outstanding:
Basic & Diluted	30,746,865	27,988,129

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Non Controlling Interest Prestocorp	Non Controlling Interest iBud Tender	Non Controlling Interest GK Manufacturing
Balance, shares at Dec. 31, 2020		1,090,128	27,453,178
Balance, amount at Dec. 31, 2020	$ 1,638,215	$ 1,090	$ 27,455	$ 77,660,014	$ (77,028,339)	$ 1,193,798	$ 47,264	$ (263,067)
Conversion of Preferred to Common, shares		(167,966)	167,966
Conversion of Preferred to Common, amount	0	$ (167)	$ 167	0	0	0	0	0
Cash proceeds from sale of stock, shares		0	10,466
Cash proceeds from sale of stock, amount	5,000	$ 0	$ 10	4,990	0	0	0	0
Shares issued for services, shares		73,530	879,002
Shares issued for services, amount	489,986	$ 73	$ 880	489,033	0	0	0	0
Shares cancelled, shares		0	(55,556)
Shares cancelled, amount	(20,000)	$ 0	$ (57)	(19,943)	0	0	0	0
Net income (loss) for the period	(492,052)	$ 0	$ 0	0	(419,990)	8,403	(970)	(79,495)
Balance, shares at Mar. 31, 2021		995,692	28,455,056
Balance, amount at Mar. 31, 2021	1,621,149	$ 996	$ 28,455	78,134,094	(77,448,329)	1,202,201	46,294	(342,562)
Balance, shares at Dec. 31, 2021		777,654	30,746,865
Balance, amount at Dec. 31, 2021	1,044,900	$ 778	$ 30,748	79,151,240	(79,475,968)	1,338,102	0	0
Net income (loss) for the period	(100,353)	$ 0	$ 0	0	(90,891)	(9,462)	0	0
Balance, shares at Mar. 31, 2022		777,654	30,746,865
Balance, amount at Mar. 31, 2022	$ 944,547	$ 778	$ 30,748	$ 79,151,240	$ (79,566,859)	$ 1,328,640	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss for the period	$ (100,353)	$ (492,052)
Adjustments to reconcile net loss for the period to net cash provided (used) by operating activities:
Unrealized gain on investment	(246,654)	(151,000)
Depreciation and amortization	42,353	47,582
Cancellation of shares for services	0	(20,000)
Depreciation included in cost of revenues	0	8,929
Shares issued for services	0	489,986
Stock payable for services	195,675	0
Write off of abandoned fixed assets	585	0
Note payable issued for services	15,000	0
Changes in Assets and Liabilities:
Inventories	0	27,050
Prepaid consulting and other current assets	0	(5,933)
Accounts payable and accrued expenses	30,171	18,915
Accrued interest - related parties	15,424	14,851
Customer deposits	0	(25,545)
Net Cash Used in Operating Activities	(47,799)	(87,217)
Cash Flows from Investing Activities:
Net Cash Provided by Investing Activities	0	0
Cash Flows from Financing Activities:
Proceeds from sale of common stock	0	5,000
Proceeds from advances from related parties	0	48,258
Proceeds from related parties notes payable, net	6,340	20,500
Net Cash Provided by Financing Activities	6,340	73,758
NET CHANGE IN CASH	(41,459)	(13,459)
CASH AT BEGINNING OF PERIOD	194,060	322,107
CASH AT END OF PERIOD	$ 152,601	$ 308,648

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Organization and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Organization and Summary of Significant Accounting Policies

1. Organization and Summary of Significant Accounting Policies

1. Organization and Summary of Significant Accounting Policies

Nature of Business:

Cannabis Sativa, Inc. (the “Company,” “us”, “we” or “our”) was incorporated as Ultra Sun Corp. under the laws of Nevada in November 2004. On November 13, 2013, we changed our name to Cannabis Sativa, Inc. We operate through several subsidiaries including:

· PrestoCorp, Inc. (“PrestoCorp”)

· Wild Earth Naturals, Inc. (“Wild Earth”)

· Kubby Patent and Licenses Limited Liability Company (“KPAL”)

· Hi Brands, International, Inc. (“Hi Brands”)

· Eden Holdings LLC (“Eden”).

· iBudtender, Inc. (“iBud”) – through April 2021

· GK Manufacturing and Packaging, Inc. (“GKMP”)- through April 2021

PrestoCorp is a 51% owned subsidiary and until April 22, 2021, GKMP and iBud were 51% and 50.1% owned subsidiaries. Wild Earth, KPAL, Hi Brands, and Eden are wholly owned subsidiaries. At December 31, 2021, PrestoCorp is the sole operating subsidiary. Until sale of the Company’s interest in April 2021, GKMP and iBud tender were operating subsidiaries although iBud was not generating any revenue.

Our primary operations for the years ended December 31, 2021 and 2020 were through PrestoCorp, which provides telemedicine online referral services for customers desiring medical marijuana cards in states where medical marijuana has been legalized. The Company is actively seeking new business opportunities for acquisition and is continually reviewing opportunities for product and brand development through our Wild Earth, Hi Brands, and KPAL subsidiaries.

Basis of Presentation

Operating results for the three months ended March 31, 2022 may not be indicative of the results expected for the full year ending December 31, 2022. For further information, refer to the financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The interim financial statements should be read in conjunction with audited financial statements and related footnotes set forth in our annual report filed on Form 10-K for the year ended December 31, 2021, as filed with the United States Securities and Exchange Commission on April 14, 2022.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of March 31, 2022, and its results of operations, cash flows, and changes in stockholders’ equity for the three months ended March 31, 2022. The financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States (‘GAAP”) for complete financial statements.

Principles of Consolidation:

The condensed consolidated financial statements include the accounts of Cannabis Sativa, Inc. (the “Company” or “CBDS”), and its wholly-owned subsidiaries and PrestoCorp, a 51% owned subsidiary. On April 22, 2021, we sold our interests in two companies in which the Company had majority control, iBud and GKMP. These condensed consolidated financial statements include operations of iBud and GKMP through April 22, 2021. All significant inter-company balances have been eliminated in consolidation. 

Going Concern:

The Company has an accumulated deficit of $79,566,859 and negative working capital of $976,823 at March 31, 2022, which, among other factors, raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due.

Net Loss per Share:

Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. Potentially dilutive shares are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. For the three months ended March 31, 2022 and 2021, the Company had 175,000 and 175,000 outstanding warrants, respectively, and 777,654 and 995,692 shares of convertible preferred stock, respectively, that would be dilutive to future periods net income if converted.

Recent Accounting Pronouncement:

Accounting Standards Updates Adopted

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Adoption of this update had no impact on the Company’s consolidated financial statements.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

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Intangibles and Goodwill

3 Months Ended

Mar. 31, 2022

Intangibles and Goodwill

2. Intangibles and Goodwill

2. Intangibles and Goodwill

The Company considers all intangibles to be definite-lived assets with lives of 5 to 10 years. Intangibles consisted of the following at March 31, 2022 and December 31, 2021:

	March 31, 2022			December 31, 2021
CBDS.com website (Cannabis Sativa)	$	13,999		$	13,999
Intellectual Property Rights (PrestoCorp)		240,000			240,000
Patents and Trademarks (KPAL)		1,281,411			1,281,411
Total Intangibles		1,535,410			1,535,410
Less: Accumulated Amortization		(1,256,889	)		(1,214,604	)
Net Intangible Assets	$	278,521		$	320,806

Amortization expense for each of the three months ended March 31, 2022 and 2021 was $42,285, respectively.

Amortization of intangibles through 2027 is: 

April 1, 2022 to March 31, 2023	$	157,501
April 1, 2023 to March 31, 2024		116,118
April 1, 2024 to March 31, 2025		932
April 1, 2025 to March 31, 2026		932
April 1, 2026 to March 31, 2027		932

Goodwill in the amount of $3,010,202 was recorded as part of the acquisition of PrestoCorp that occurred on August 1, 2017. Cumulative impairment of the PrestoCorp goodwill totals $1,173,000 as of December 31, 2021 and 2020. The balance of goodwill at March 31, 2022 and December 31, 2021 was $1,837,202.

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Sale of Majority Owned Subsidiaries and Discontinued Operations

3 Months Ended

Mar. 31, 2022

Sale of Majority Owned Subsidiaries and Discontinued Operations

3. Sale of Majority Owned Subsidiaries and Discontinued Operations

3. Sale of Majority Owned Subsidiaries and Discontinued Operations

On April 22, 2021, the Company sold its majority interests in GKMP (51%) and iBud (50.1%) to THC Farmaceuticals, Inc. (“CBDG”). In consideration of the transaction, the Company received 1,500,000 shares of CBDG common stock and 1,500,000 shares of CBDG preferred stock. The Company’s Chief Executive Officer and Chairman of the Board, David Tobias is a Director of CBDG. Shares of CBDG common stock are traded on the OTC Pink Sheets Market.

The sale of the Company’s majority interests was undertaken to allow the Company to focus on its other operating subsidiary, PrestoCorp, to focus on capital formation for expansion of PrestoCorp, and to pursue other opportunities. At the time of the sale, iBud was inactive and GKMP had not yet achieved positive cash flow from operations.

On the closing date of the sale, CBDG common shares closed at $0.20 per share, for a fair value of $300,000. The CBDG preferred stock received is convertible into CBDG common stock on a one for one basis and has no other rights or preferences that distinguish it from the common stock and are convertible at any time by the Company. Management determined that the shares of preferred stock received are equivalent to CBDG’s common stock and valued the preferred shares at the same rate. In the aggregate, the total shares of CBDG stock received were valued at $600,000 on the date of the sale.

During the year ended December 31, 2021, the Company recognized a gain on sale of subsidiaries of $164,736 which represented the value of the consideration received consisting of the value of CBDG’s shares plus the carrying value of the subsidiaries’ non-controlling interest reduced by the net asset of each subsidiary:

Consideration received:
Common stock of CBDG, fair value	$	300,000
Preferred stock of CBDG, fair value		300,000
Total consideration		600,000
Non-controlling interests		(331,884	)
Net assets of subsidiaries on date of disposition:
GKMP		112,350
iBud		(8,970	)
Net assets		103,380
Gain on sale of subsidiaries	$	164,736

As a result of the sale, the Company has discontinued its operations for both subsidiaries. Summaries of the discontinued operations of GKMP and iBud for the period January 1, 2021 to March 31, 2021 are provided below.

	January 1 to
Discontinued Operations	March 31, 2021
REVENUE	$	74,973
Cost of revenues		81,511
Cost of sales % of total sales		109	%
Gross profit		(6,538	)
Gross profit % of sales		-9	%
EXPENSES
Professional fees		-
Depreciation and amortization		4,700
Wages and salaries		58,617
Advertising		998
General and administrative		91,181
Interest expense		2,144
Total expenses		157,640
NET LOSS FROM DISCONTINUED OPERATIONS	$	(164,178	)

GKMP and iBud generated losses from operations during the periods they were operated by the Company. The sale of our interests in GKMP and iBud was to allow management to devote more resources to PrestoCorp. 

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Related Party Transactions

3 Months Ended

Mar. 31, 2022

Related Party Transactions

4. Related Party Transactions

4. Related Party Transactions

In addition to items disclosed in Notes 3 and 6, the Company had additional related party transactions during the three months ended March 31, 2022 and 2021.

The Company has received funds from borrowings on notes payable and advances from related parties and officers of the Company to cover operating expenses. Related parties include the officers and directors of the Company and a significant shareholder holding in excess of 10% of the Company’s outstanding shares.

During the three months ended March 31, 2022, David Tobias loaned $6,340 cash to the Company for notes payable bearing interest at the rate of 5% per annum due on December 31, 2022. In the three months ended March 31, 2022, the Company and Cathy Carroll, director, entered into a non-cash note payable for $15,000 for compensation due her for services. Ms. Carroll’s note bears interest at 5% per annum and is due December 31, 2022.

During the three months ended March 31, 2022 and 2021, the Company recorded interest expense related to notes payable to related parties at the rates between 5% and 8% per annum in the amounts of $17,176 and $8,337, respectively.

In 2021, the Company received short-term advances from the principals of GKMP in the amounts of $48,083 bringing the balance due to $67,058. These advances are not interest bearing. The advances were assumed by the acquirer of GKMP and are no longer an obligation of the Company. See Note 3.

The following tables reflect the related party advance and note payable balances. 

	Notes payable to related parties		Accrued interest -related parties
	March 31, 2022
David Tobias, CEO & Director	$	992,878	$	181,539
New Compendium, greater than 10% Shareholder		152,500		29,593
Cathy Carroll, Director		90,000		8,055
Other Affiliates		4,000		850
Totals	$	1,239,378	$	220,037

	Notes payable to related parties		Accrued interest -related parties
	December 31, 2021
David Tobias, CEO & Director	$	986,538	$	169,057
New Compendium, greater than 10% Shareholder		152,500		27,688
Cathy Carroll, Director		75,000		7,068
Other Affiliates		4,000		800
Totals	$	1,218,038	$	204,613

In the three months ended March 31, 2022 and 2021, the Company incurred approximately $14,000 and $28,000, respectively, for consulting services from a nephew of the Company’s president. The current period services were accrued at March 31, 2022 and paid in April 2022. The services for the period ended March 31, 2021 were paid in shares of the Company’s common stock. These amounts are included in the statements of operations in general and administrative expenses.

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Investments

3 Months Ended

Mar. 31, 2022

Investments

5. Investments

5. Investments

At March 31, 2022 and December 31, 2021, the Company owns 8,238,769 shares respectively, of common stock of Medical Cannabis Payment Solutions (ticker: REFG). At March 31, 2022 and December 31, 2021, the fair value of the investment in REFG was $41,193 and $25,540, respectively. The Company recognized a gain on the change in fair value of $15,654 and $151,000 during the three months ended March 31, 2022 and 2021, respectively.

In 2021, the Company received 1,500,000 shares of common stock and 1,500,000 shares of preferred stock of THC Pharmaceuticals Inc. (ticker: CBDG). The CBDG shares were received as consideration for the sale of the Company’s majority interest in iBud and GKMP in the year ended December 31, 2021. On the date of sale, the shares were valued at fair value which was $0.20 per share or $600,000 in the aggregate. See Note 4. The Company’s Chief Executive Officer and Chairman of the Board, David Tobias is a Director of CBDG.

The Company’s investment in CBDG represents 15% of CBDG’s voting shares on a fully diluted basis which, coupled with Mr. Tobias’ position as a director and his individual investment in CBDG, results in the Company having significant influence over CBDG.  The Company elected to account for its investment in CBDG at fair value because the Company does not intend to hold the investment for a long period of time and the shares are readily marketable.   The fair value of the Company’s investment at March 31, 2022 and December 31, 2021 was $414,000 and $183,000 resulting in a gain of $231,000 and $-0- for the change in fair value during the three months ended March 31, 2022 and 2021, respectively.

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Stockholders Equity

3 Months Ended

Mar. 31, 2022

Stockholders Equity

6. Stockholders' Equity

6. Stockholders’ Equity

Securities Issuances

During the three months ended March 31, 2022, no common or preferred shares were issued by the Company. At March 31, 2022, the Company owed independent contractors for services payable in stock and recorded as stock payable as follows:

	Stock Payable March 31, 2022
Services	Common		Preferred		Value
Related Parties
David Tobias, Officer, Director		-		250,000	$	50,000
Brad Herr, Officer, Director		250,000		-		50,000
Robert Tankson, Director		15,625		-		3,125
Trevor Reed, Director		15,625		-		3,125
Total related party issuances		281,250		250,000	$	106,250
Non-related party issuances		446,288		-	$	89,425
Total shares for services		727,538		250,000	$	195,675

During the three months ended March 31, 2021, shares of common stock and preferred stock were issued to related and non-related parties for the purposes indicated, as follows:

	Share Issuances
Services	Common			Preferred			Value
Related Party issuances
David Tobias, Officer, Director		-			73,530		$	37,500
Brad Herr, Officer, Director		122,550			-			62,500
Robert Tankson, Director		54,203			-			28,482
Cathy Carroll, Director		73,530			-			37,500
Trevor Reed, Director		12,255			-			6,250
Keith Hyatt, President GKMP		35,404			-			18,056
Kyle Powers, CEO PrestoCorp		167,790			-			88,929
Total related party issuances		465,732			73,530			279,217
Non-related party issuances		413,270			-			210,769
Total shares for services		879,002			73,530			489,986
Issuance for cash		10,466			-			5,000
Preferred stock converted to common		167,966			(167,966	)		-
Shares cancelled		(55,556	)		-			(20,000	)
Aggregate totals		1,001,878			(94,436	)	$	474,986

During the three months ended March 31, 2021, the Company cancelled shares that had been returned after it was determined the shares have been erroneously issued to a vendor in 2020.

During the three months ended March 31, 2021, David Tobias, Chief Executive Officer and Director, converted 167,966 shares of preferred stock into an equal number of common stock in accordance with the terms of the preferred stock.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies

7. Commitments and Contingencies

7. Commitments and Contingencies

Leases.

PrestoCorp leases office space through WeWork in New York on a month-to-month arrangement. Rent expense for the three months ended March 31, 2022 and 2021 was $18,723 and $4,888, respectively. On April 12, 2022, PrestoCorp signed a new lease in New York for a two year term at $2,590 per month expiring in April 2024.

Litigation.

In the ordinary course of business, we may face various claims brought by third parties and we may, from time to time, make claims or take legal actions to assert our rights, including intellectual property disputes, contractual disputes and other commercial disputes. Any of these claims could subject us to litigation. As of March 31, 2022, no claims are outstanding.

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Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events

8.Subsequent Events

8. Subsequent Events

In April 2022, the Company issued 727,538 shares of common stock and 250,000 shares of preferred stock to officers, directors and independent contractors in payment of compensation accrued in the quarter ended March 31, 2022.  The shares of common and preferred stock were valued in the aggregate at $195,675.  An additional 578,704 shares of common stock and 209,333 shares of preferred stock valued in the aggregate at $188,889 were issued in April 2022 to officers, directors and independent contractors for services provided in the second quarter.

On May 11, 2022, the Company announced a non-binding letter of intent to merge with MJ Harvest, Inc., a publicly traded Nevada corporation (“MJHI”). The companies are continuing discussions relating to structure and timing of the merger. David Tobias, CEO and Director of the Company is also a Director of MJHI. Brad Herr, CFO and Director of the Company is also CFO of MJHI.

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Organization and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Organization and Summary of Significant Accounting Policies (Policies)

Nature of Business

Cannabis Sativa, Inc. (the “Company,” “us”, “we” or “our”) was incorporated as Ultra Sun Corp. under the laws of Nevada in November 2004. On November 13, 2013, we changed our name to Cannabis Sativa, Inc. We operate through several subsidiaries including:

· PrestoCorp, Inc. (“PrestoCorp”)

· Wild Earth Naturals, Inc. (“Wild Earth”)

· Kubby Patent and Licenses Limited Liability Company (“KPAL”)

· Hi Brands, International, Inc. (“Hi Brands”)

· Eden Holdings LLC (“Eden”).

· iBudtender, Inc. (“iBud”) – through April 2021

· GK Manufacturing and Packaging, Inc. (“GKMP”)- through April 2021

PrestoCorp is a 51% owned subsidiary and until April 22, 2021, GKMP and iBud were 51% and 50.1% owned subsidiaries. Wild Earth, KPAL, Hi Brands, and Eden are wholly owned subsidiaries. At December 31, 2021, PrestoCorp is the sole operating subsidiary. Until sale of the Company’s interest in April 2021, GKMP and iBud tender were operating subsidiaries although iBud was not generating any revenue.

Our primary operations for the years ended December 31, 2021 and 2020 were through PrestoCorp, which provides telemedicine online referral services for customers desiring medical marijuana cards in states where medical marijuana has been legalized. The Company is actively seeking new business opportunities for acquisition and is continually reviewing opportunities for product and brand development through our Wild Earth, Hi Brands, and KPAL subsidiaries.

Basis of Presentation

Operating results for the three months ended March 31, 2022 may not be indicative of the results expected for the full year ending December 31, 2022. For further information, refer to the financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The interim financial statements should be read in conjunction with audited financial statements and related footnotes set forth in our annual report filed on Form 10-K for the year ended December 31, 2021, as filed with the United States Securities and Exchange Commission on April 14, 2022.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of March 31, 2022, and its results of operations, cash flows, and changes in stockholders’ equity for the three months ended March 31, 2022. The financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States (‘GAAP”) for complete financial statements.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Cannabis Sativa, Inc. (the “Company” or “CBDS”), and its wholly-owned subsidiaries and PrestoCorp, a 51% owned subsidiary. On April 22, 2021, we sold our interests in two companies in which the Company had majority control, iBud and GKMP. These condensed consolidated financial statements include operations of iBud and GKMP through April 22, 2021. All significant inter-company balances have been eliminated in consolidation. 

Going Concern

The Company has an accumulated deficit of $79,566,859 and negative working capital of $976,823 at March 31, 2022, which, among other factors, raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they are due.

Net Loss per Share

Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. Potentially dilutive shares are excluded from the calculation of diluted net loss per share because the effect is anti-dilutive. For the three months ended March 31, 2022 and 2021, the Company had 175,000 and 175,000 outstanding warrants, respectively, and 777,654 and 995,692 shares of convertible preferred stock, respectively, that would be dilutive to future periods net income if converted.

Recent Accounting Pronouncement

Accounting Standards Updates Adopted

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Adoption of this update had no impact on the Company’s consolidated financial statements.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

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Intangibles and Goodwill (Tables)

3 Months Ended

Mar. 31, 2022

Intangibles and Goodwill (Tables)

Schedule of Intangible Assets and Goodwill

	March 31, 2022			December 31, 2021
CBDS.com website (Cannabis Sativa)	$	13,999		$	13,999
Intellectual Property Rights (PrestoCorp)		240,000			240,000
Patents and Trademarks (KPAL)		1,281,411			1,281,411
Total Intangibles		1,535,410			1,535,410
Less: Accumulated Amortization		(1,256,889	)		(1,214,604	)
Net Intangible Assets	$	278,521		$	320,806

Schedule of Amortization

April 1, 2022 to March 31, 2023	$	157,501
April 1, 2023 to March 31, 2024		116,118
April 1, 2024 to March 31, 2025		932
April 1, 2025 to March 31, 2026		932
April 1, 2026 to March 31, 2027		932

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Sale of Majority Owned Subsidiaries and Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2022

Sale of Majority Owned Subsidiaries and Discontinued Operations

Summary of value of the consideration received

Consideration received:
Common stock of CBDG, fair value	$	300,000
Preferred stock of CBDG, fair value		300,000
Total consideration		600,000
Non-controlling interests		(331,884	)
Net assets of subsidiaries on date of disposition:
GKMP		112,350
iBud		(8,970	)
Net assets		103,380
Gain on sale of subsidiaries	$	164,736

Summary of the discontinued operations of GKMP and iBud

	January 1 to
Discontinued Operations	March 31, 2021
REVENUE	$	74,973
Cost of revenues		81,511
Cost of sales % of total sales		109	%
Gross profit		(6,538	)
Gross profit % of sales		-9	%
EXPENSES
Professional fees		-
Depreciation and amortization		4,700
Wages and salaries		58,617
Advertising		998
General and administrative		91,181
Interest expense		2,144
Total expenses		157,640
NET LOSS FROM DISCONTINUED OPERATIONS	$	(164,178	)

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2022

Related Party Transactions (Tables)

Schedule of related party advance and note payable

	Notes payable to related parties		Accrued interest -related parties
	March 31, 2022
David Tobias, CEO & Director	$	992,878	$	181,539
New Compendium, greater than 10% Shareholder		152,500		29,593
Cathy Carroll, Director		90,000		8,055
Other Affiliates		4,000		850
Totals	$	1,239,378	$	220,037

	Notes payable to related parties		Accrued interest -related parties
	December 31, 2021
David Tobias, CEO & Director	$	986,538	$	169,057
New Compendium, greater than 10% Shareholder		152,500		27,688
Cathy Carroll, Director		75,000		7,068
Other Affiliates		4,000		800
Totals	$	1,218,038	$	204,613

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Stockholders Equity (Tables)

3 Months Ended

Mar. 31, 2022

Related Party Transactions (Tables)

Common Stock and Preferred stock issued to related and Non Related Parties

	Stock Payable March 31, 2022
Services	Common		Preferred		Value
Related Parties
David Tobias, Officer, Director		-		250,000	$	50,000
Brad Herr, Officer, Director		250,000		-		50,000
Robert Tankson, Director		15,625		-		3,125
Trevor Reed, Director		15,625		-		3,125
Total related party issuances		281,250		250,000	$	106,250
Non-related party issuances		446,288		-	$	89,425
Total shares for services		727,538		250,000	$	195,675

	Share Issuances
Services	Common			Preferred			Value
Related Party issuances
David Tobias, Officer, Director		-			73,530		$	37,500
Brad Herr, Officer, Director		122,550			-			62,500
Robert Tankson, Director		54,203			-			28,482
Cathy Carroll, Director		73,530			-			37,500
Trevor Reed, Director		12,255			-			6,250
Keith Hyatt, President GKMP		35,404			-			18,056
Kyle Powers, CEO PrestoCorp		167,790			-			88,929
Total related party issuances		465,732			73,530			279,217
Non-related party issuances		413,270			-			210,769
Total shares for services		879,002			73,530			489,986
Issuance for cash		10,466			-			5,000
Preferred stock converted to common		167,966			(167,966	)		-
Shares cancelled		(55,556	)		-			(20,000	)
Aggregate totals		1,001,878			(94,436	)	$	474,986

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Organization and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Accumulated deficit	$ 79,566,859		$ 79,475,968
Working capital	$ (976,823)
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	175,000	175,000
Convertible Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	777,654	995,692
GK Manufacturing Inc
Equity Method Investment, Ownership Percentage	51.00%		51.00%
IBud [Member]
Equity Method Investment, Ownership Percentage	50.10%		50.10%
David Tobias [Member]
Equity Method Investment, Ownership Percentage			51.00%

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Intangibles and Goodwill (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Less: Accumulated Amortization	$ 1,256,889	$ (1,214,604)
Finite-Lived Intangible Assets, Net	278,521	320,806
Finite-Lived Intangible Assets, Gross	1,535,410	1,535,410
Cannabis Sativa [Member] | Internet Domain Names [Member]
Finite-Lived Intangible Assets, Gross	13,999	13,999
Prestocorp [Member] | Intellectual Property [Member]
Finite-Lived Intangible Assets, Gross	240,000	240,000
K P A L [Member] | Patents And Trademarks [Member]
Finite-Lived Intangible Assets, Gross	$ 1,281,411	$ 1,281,411

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Intangibles and Goodwill (Details 1)	Mar. 31, 2022 USD ($)
Intangibles and Goodwill
2023	$ 157,501
2024	116,118
2025	932
2026	932
2027	$ 932

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Intangibles and Goodwill (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Amortization of Intangible Assets	$ 42,285	$ 42,225
Goodwill	1,837,202		$ 1,837,202
Prestocorp [Member] | August 1, 2017 [Member]
Impairment of goodwill	$ 3,010,202
Cumulative impairment of goodwill			$ 1,173,000	$ 1,173,000
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	5 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	10 years

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Sale of Majority Owned Subsidiaries (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Apr. 22, 2021	Mar. 31, 2022	Dec. 31, 2021
Non-controlling interests		$ (331,884)
Net assets		103,380
Gain on sale of subsidiaries		$ 164,736	$ 164,736
Total consideration		600,000	0
GK Manufacturing Inc
Net assets		$ 112,350
IBud [Member]
Net assets		$ (8,970)
Common Stock [Member]
Total consideration	1,500,000	300,000
Total consideration	$ 300,000	$ 300,000
Preferred Stock [Member]
Total consideration	1,500,000
Total consideration		$ 300,000

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Sale of Majority Owned Subsidiaries (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
REVENUE	$ 423,701	$ 482,350
Cost of revenues	158,689	183,503
Gross profit	265,012	298,847
Depreciation and amortization	42,353	42,881
Wages and salaries	186,761	149,845
Advertising	16,221	92,635
General and administrative	227,602	366,428
Total operating expenses	594,843	771,528
Interest expense	17,176	6,193
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS	$ 0	(164,178)
GKMP and iBud [Member]
REVENUE		74,973
Cost of revenues		$ 81,511
Cost of sales % of total sales		109.00%
Gross profit		$ (6,538)
Gross profit % of sales		9.00%
Depreciation and amortization		$ 4,700
Wages and salaries		58,617
Advertising		998
General and administrative		91,181
Total operating expenses		157,640
Interest expense		2,144
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS		$ (164,178)

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Sale of Majority Owned Subsidiaries (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Apr. 22, 2021	Mar. 31, 2022	Dec. 31, 2021
Gain on sale of subsidiaries		$ 164,736	$ 164,736
Sale of transaction		600,000	0
GK Manufacturing Inc
Equity Method Investment, Ownership Percentage		51.00%	51.00%
IBud [Member]
Equity Method Investment, Ownership Percentage		50.10%	50.10%
Common Stock [Member]
Sale of transaction	1,500,000	300,000
Sale of stock value	$ 300,000	$ 300,000
Share Price	$ 0.20
Preferred Stock [Member]
Sale of transaction	1,500,000
Sale of stock value		$ 300,000

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Related Party Transactions (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Notes Payable to Related Parties	$ 1,239,378	$ 1,218,038
Accrued interest - related parties	220,037	204,613
David Tobias, CEO & Director [Member]
Notes Payable to Related Parties	992,878	986,538
Accrued interest - related parties	181,539	169,057
New Compendium Affiliate [Member]
Notes Payable to Related Parties	152,500	152,500
Accrued interest - related parties	29,593	27,688
Cathy Carroll, Director
Notes Payable to Related Parties	90,000	75,000
Accrued interest - related parties	8,055	7,068
Other Affiliates [Member]
Notes Payable to Related Parties	4,000	4,000
Accrued interest - related parties	$ 850	$ 800

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Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest Expense	$ 17,176	$ 8,337
Principal Amount	6,340
Advances from and payables to related parties	$ 48,083
Due Date	Dec. 31, 2022
Interest rate	5.00%
Cathy Carroll, Director
Principal Amount	$ 15,000
Due Date	Dec. 31, 2022
Interest rate	5.00%
G K M P [Member]
Advances from and payables to related parties	$ 67,058
David Tobias [Member]
Due Date	Dec. 31, 2021
Interest rate	5.00%
Consultant [Member]
Other General and Administrative Expense	$ 14,000	$ 28,000
Minimum [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage	8.00%

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Investments (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Stock Issued During Period, Shares, Purchase of Assets	8,238,769		8,238,769
Recognized unrealized gains (losses) on investment	$ 15,654	$ 151,000
Share price			$ 0.20
Proceeds from sales of equity	0	5,000
Unrealized gain on investment	$ (246,654)	(151,000)
C B D G [Member]
Stock Issued During Period, Shares, Purchase of Assets	1,500,000		1,500,000
Proceeds from sales of equity			$ 600,000
Percentage of voting share held by director			15.00%
Fair value of investment	$ 414,000		$ 183,000
Unrealized gain on investment	231,000	$ 0
R E F G [Member]
Fair value of investment	$ 41,193		$ 25,540

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Stockholders Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Total shares for stock payable, Related Party	$ 195,675	$ 489,986
Preferred Stock [Member]
Total shares for stock payable Related Party share	250,000	73,530
Preferred Stock [Member] | Total shares for services [Member]
Stock issued for services, share		310,171
Common Stock [Member]
Total shares for stock payable Related Party share		465,732
Common Stock [Member] | Total shares for services [Member]
Stock issued for services, share	727,538	879,002
David Tobias, Officer, Director
Stock issued for services, value	$ 50,000	$ 37,500
David Tobias, Officer, Director | Preferred Stock [Member]
Stock issued for services, share	250,000	73,530
David Tobias, Officer, Director | Common Stock [Member]
Stock issued for services, share	0	0
Brad Herr, Officer, Director
Stock issued for services, value	$ 50,000	$ 62,500
Brad Herr, Officer, Director | Preferred Stock [Member]
Stock issued for services, share	0	0
Brad Herr, Officer, Director | Common Stock [Member]
Stock issued for services, share	250,000	122,550
Robert Tankson, Director
Stock issued for services, value	$ 3,125	$ 28,482
Robert Tankson, Director | Preferred Stock [Member]
Stock issued for services, share	0	0
Robert Tankson, Director | Common Stock [Member]
Stock issued for services, share	15,625	54,203
Trevor Reed, Director
Stock issued for services, value	$ 3,125	$ 6,250
Trevor Reed, Director | Preferred Stock [Member]
Stock issued for services, share	0	0
Trevor Reed, Director | Common Stock [Member]
Stock issued for services, share	15,625	12,255
Total Related Party Issuances
Stock issued for services, value	$ 106,250	$ 279,217
Total Related Party Issuances | Preferred Stock [Member]
Stock issued for services, share	250,000	73,530
Total Related Party Issuances | Common Stock [Member]
Stock issued for services, share	281,250	465,732
Non-Related Party Issuances
Stock issued for services, value	$ 89,425	$ 210,769
Non-Related Party Issuances | Preferred Stock [Member]
Stock issued for services, share	0	0
Non-Related Party Issuances | Common Stock [Member]
Stock issued for services, share	446,288	413,270

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Stockholders Equity (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Issuance for cash, value		$ 5,000
Issuance for acquisitions, value		210,769
Total shares for stock payable, Related Party	$ 195,675	489,986
Total shares for stock payable, Non Related Party		210,769
Shares cancelled, value		(20,000)
Aggregate totals, value		$ 474,986
Conversion of stock, share issued		0
Common Stock [Member]
Conversion of stock, share issued		167,966
Issuance for cash, share		10,466
Total shares for stock payable Related Party share		465,732
Total shares for stock payable Non Related Party share		413,270
Shares cancelled, share		55,556
Aggregate totals, shares		1,001,878
Common Stock [Member] | Total shares for services [Member]
Stock issued for services, share	727,538	879,002
Preferred Stock [Member]
Issuance for cash, share		0
Total shares for stock payable share		0
Total shares for stock payable Related Party share	250,000	73,530
Total shares for stock payable Non Related Party share		0
Shares cancelled, share		0
Aggregate totals, shares		94,436
Conversion of stock, shares converted		(167,966)
Preferred Stock [Member] | Total shares for services [Member]
Stock issued for services, share		310,171
Cathy Carroll, Director
Stock issued for services, value		$ 37,500
Cathy Carroll, Director | Common Stock [Member]
Stock issued for services, share		73,530
Cathy Carroll, Director | Preferred Stock [Member]
Stock issued for services, share		0
David Tobias, Officer, Director
Stock issued for services, value	$ 50,000	$ 37,500
David Tobias, Officer, Director | Common Stock [Member]
Stock issued for services, share	0	0
David Tobias, Officer, Director | Preferred Stock [Member]
Stock issued for services, share	250,000	73,530
Brad Herr, Officer, Director
Stock issued for services, value	$ 50,000	$ 62,500
Brad Herr, Officer, Director | Common Stock [Member]
Stock issued for services, share	250,000	122,550
Brad Herr, Officer, Director | Preferred Stock [Member]
Stock issued for services, share	0	0
Robert Tankson, Director
Stock issued for services, value	$ 3,125	$ 28,482
Robert Tankson, Director | Common Stock [Member]
Stock issued for services, share	15,625	54,203
Robert Tankson, Director | Preferred Stock [Member]
Stock issued for services, share	0	0
Trevor Reed, Director
Stock issued for services, value	$ 3,125	$ 6,250
Trevor Reed, Director | Common Stock [Member]
Stock issued for services, share	15,625	12,255
Trevor Reed, Director | Preferred Stock [Member]
Stock issued for services, share	0	0
Total Related Party Issuances
Stock issued for services, value	$ 106,250	$ 279,217
Total Related Party Issuances | Common Stock [Member]
Stock issued for services, share	281,250	465,732
Total Related Party Issuances | Preferred Stock [Member]
Stock issued for services, share	250,000	73,530
Non-Related Party Issuances
Stock issued for services, value	$ 89,425	$ 210,769
Non-Related Party Issuances | Common Stock [Member]
Stock issued for services, share	446,288	413,270
Non-Related Party Issuances | Preferred Stock [Member]
Stock issued for services, share	0	0
Keith Hyatt, President
Stock issued for services, value		$ 18,056
Keith Hyatt, President | Common Stock [Member]
Stock issued for services, share		35,404
Keith Hyatt, President | Preferred Stock [Member]
Stock issued for services, share		0
Kyle Powers, CEO
Stock issued for services, value		$ 88,929
Kyle Powers, CEO | Common Stock [Member]
Stock issued for services, share		167,790
Kyle Powers, CEO | Preferred Stock [Member]
Stock issued for services, share		0
Conversion
Conversion of stock, shares converted Value		$ 0

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Stockholders Equity (Details Narrative)	3 Months Ended
	Mar. 31, 2021 shares
Chief Executive Officer and Director [Member] | Common Stock [Member]
Conversion of stock, shares converted	(167,966)

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Commitments and Contingencies (Details Narrative) - Prestocorp [Member] - New York office Facilities - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Leases, Rent Expense	$ 18,723	$ 4,888
Description of lease	two year term at $2,590 per month expiring in April 2024
Debt Instrument, Periodic Payment	$ 2,590

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Subsequent Events (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Preferred Shares issued, value	$ 778	$ 778
Common Shares issued, value	$ 30,748	$ 30,748
Number of common stock issued	30,746,865	30,746,865
Number of Preferred stock issued	777,654	777,654
Chief Executive Officer [Member] | April 2022 [Member]
Shares issued for services, shares	209,333
Shares issued for services, value	$ 188,889
Additional shares	578,704
Preferred Shares issued, value	$ 195,675
Common Shares issued, value	$ 195,675
Number of common stock issued	727,538
Number of Preferred stock issued	250,000