UNITED STATES SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM S-1
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REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
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CANNASYS, INC.
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(Exact name of registrant as specified in its charter)
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Nevada
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(State or other jurisdiction of incorporation or organization)
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7389
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(Primary Standard Industrial Classification Code Number)
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88-0367706
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(I.R.S. Employer Identification No.)
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1350 17th Street, Suite 150, Denver, CO 80202
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Telephone (720) 420-1290
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(Address, including zip code and telephone number, including area code, of registrant's principal executive offices)
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Michael A. Tew, Chief Executive Officer
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CannaSys, Inc.
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1350 17th Street, Suite 150, Denver, CO 80202
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Telephone (720) 420-1290
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(Name, address, including zip code and telephone number, including area code, of agent for service)
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Copy to:
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Terrell W. Smith
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Kruse Landa Maycock & Ricks, LLC
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136 East South Temple Street, Twenty-First Floor, Salt Lake City, Utah 84111
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Telephone: (801) 531-7090
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From time to time after the effectiveness of this registration statement.
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(Approximate date of commencement of proposed sale to the public)
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Large accelerated filer ☐
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Accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company ☒
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Title of Each Class of Securities to be Registered
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Amount to be
Registered(1)(2)
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Proposed Maximum
Offering Price per Unit(2)(3)
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Proposed Maximum
Aggregate Offering Price
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Amount of
Registration Fee
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Common stock, $0.001 par value
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3,187,015
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$0.23
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$737,794
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$74.30
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(1)
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The shares of our common stock being registered hereunder are being registered for sale by the selling stockholder, as defined in the accompanying prospectus.
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(2)
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Pursuant to Rule 416, the securities being registered hereunder include such indeterminate number of additional securities as may be issuable to prevent dilution resulting from stock splits, stock dividends, or similar transactions.
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(3)
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Estimated solely for the purpose of computing the amount of the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, as amended, based on the average of the high and low trading prices of $0.23 per share for the issuer's common stock on January 28, 2016, as reported on the OTCQB tier of the OTC Markets Group.
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·
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on the OTC Markets or otherwise;
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·
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at market prices, which may vary during the offering period, or at negotiated prices; and
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·
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in ordinary brokerage transactions, in block transactions, in privately negotiated transactions, or otherwise.
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Page
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Prospectus Summary
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1
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Risk Factors
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6
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Forward-Looking Statements
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12
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Price Range of Common Stock and Dividend Policy
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13
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Use of Proceeds
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13
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Capitalization
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14
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Dilution
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15
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Management's Discussion and Analysis of Financial Condition and Results of Operation
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15
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Business
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20
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Management
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35
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Certain Relationships and Related Transactions
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38
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Principal Stockholders
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39
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The Equity Purchase Transactions
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40
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Selling Stockholder
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42
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Plan of Distribution
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43
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Description of Capital Stock
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46
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Where You Can Find Additional Information
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47
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Legal Matters
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47
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Experts
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48
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Index to Financial Statements
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F-1
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·
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BumpUp Rewards is an affiliate-based membership rewards loyalty program designed specifically for the cannabis industry that:
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o
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allows for strong social media ties and an electronic solution for providing gifts, points, and discounts to friends and family;
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o
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includes an internal control mechanism designed to enhance compliance with the regulatory requirements applicable to individual retail outlets and customers based on applicable state licensing information and customers' locations; and
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o
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enables retailers the ability to gain new customers through gifts, retain customers through the affiliate and store-specific points program, and tailor specials and free advertising via the BumpUp Rewards program to an increasingly significant customer marketplace.
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·
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BumpUp Rewards White-Label Applications is a joint software development and marketing effort with National Concessions Group, Inc., the organization responsible for marketing and branding a cannabis product brand called O.penVAPE. Our product is an advanced version of our BumpUp Rewards application intended to incentivize product and corporate sales organizations through a proprietary points system.
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·
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CannaLIMS is a laboratory management information system product focused solely on the cannabis marketplace to assist cannabis laboratories in meeting multiple state and local level regulatory reporting requirements. We license our customers to use this product and provide updates in consideration of the payment of monthly fees.
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·
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Mile High Brands, Inc.—Under a November 2015 agreement, we acquired 49% of the issued and outstanding common shares of Mile High Brands, Inc., and agreed to form a new joint venture, of which we will own a 51% interest and have control, that will seek to commercialize celebrity endorsements and product companies that wish to access the cannabis marketplace.
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·
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National Concessions Group, Inc.—Under our December 2015 technology development and joint marketing agreement, we are developing a loyalty product focused on retail brands in the cannabis industry and will jointly market this application to other product manufacturers in the cannabis industry.
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·
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LuvBuds, LLC—In December 2015, we acquired 70% of LuvBuds, LLC, which uses its "LuvBuds" brand name to develop and sell novelties for the cannabis industry in both retail consignment kiosks and through online retail and wholesale channels in Colorado.
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·
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KiwiTech, LLC—In December 2015, we entered into an agreement with KiwiTech, LLC, to expand, support, and further develop our software products and web and mobile applications. KiwiTech is a unique business incubator providing a combination of mobile technology development solutions and active investment into new and exciting technologies.
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·
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Duby, LLC—Beginning with a small a minority interest acquired in December 2015 in Duby, LLC, which has developed a social media application focused on cannabis consumers, we are continuing negotiations for joint marketing and promotion of our respective products.
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·
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Green Capital Ventures, Inc.—Under a November 2015 joint marketing and distribution arrangement, we intend to seek commercial partnerships for the Gridiron Cannabis Coalition, an organization dedicated to the advancement of medicinal cannabis as a treatment for brain disease and bodily injuries resulting from playing professional sports. The principals of Green Capital founded the Gridiron Cannabis Coalition.
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·
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PhytaTech Labs—We have agreed to jointly develop software for a laboratory information management system targeted for cannabis testing facilities and laboratories, based on an early version of our CannaLIMS product.
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·
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Develop and market customer loyalty platforms. Expand our marketing relationships to distribute our BumpUp Rewards loyalty platform as a service. We believe customer loyalty is just beginning to take shape in the cannabis industry as it becomes more competitive. Our software loyalty platform, BumpUp Rewards, is currently generating recurring revenues through its sales to retail dispensaries within the cannabis industry.
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·
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Rapidly expand our retail brand presence. Generate substantial growth in revenues in LuvBuds and our other branded products through strategic marketing and other initiatives, including the opening of online retail sales channels.
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·
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Distribute products into new states. Expand distribution of our core products and services into new regulated cannabis markets as the trend to legalize medicinal and recreational cannabis use continues.
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·
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Pursue growth. Pursue opportunities to expand our business by completing strategic acquisitions, establishing new strategic alliances with others, executing internally generated expansion projects, and increasing the use of our existing assets.
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Common stock offered by the selling stockholder:
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Up to 3,187,015 shares that we may sell to Kodiak Capital under the Purchase Agreement
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Common stock outstanding before the offering:
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21,476,045 shares
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Common stock to be outstanding after giving effect to the total issuance of 3,187,015 shares to Kodiak Capital under the Purchase Agreement registered hereunder:
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24,663,060 shares
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Shares issuable upon exercise of outstanding options and warrants:
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The total number of shares of our common stock outstanding before the offering and to be outstanding after giving effect to the total issuance of 3,187,015 shares to Kodiak Capital under the Purchase Agreement registered hereunder, excludes an aggregate of 20,987,775 shares of common stock reserved for issuance on the exercise of outstanding warrants, the conversion of outstanding notes, and the issuance of stock pursuant to commitments to strategic partners.
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Use of proceeds:
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We will not receive any proceeds from the sale of the shares of common stock by the selling stockholder in this offering. However, we may receive up to $1 million from sales of shares to Kodiak Capital under the Purchase Agreement. Any proceeds that we receive from sales to Kodiak Capital under the Purchase Agreement will be used to further develop our products, reduce current liabilities, and fund general corporate purposes. See "Use of Proceeds."
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Risk factors:
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This investment involves a high degree of risk. See "Risk Factors" for a discussion of factors you should consider carefully before making an investment decision.
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OTC Markets (OTCQB) symbol:
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MJTK
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·
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250,000 shares reserved for issuance under a stock grant;
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·
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4,837,000 shares reserved for issuance upon the exercise of warrants; and
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·
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15,900,775 shares reserved for issuance under our outstanding convertible notes with a weighted average conversion price of $0.52 per share.
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Low
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High
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||
2016:
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|||
First Quarter (through January 28)
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$0.23
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$0.40
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2015:
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|||
Fourth Quarter
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0.26
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0.40
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Third Quarter
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0.23
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0.40
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Second Quarter
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1.00
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1.65
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First Quarter
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1.50
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2.00
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2014:
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|||
Fourth Quarter
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2.00
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6.00
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Third Quarter
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1.50
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8.50
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Second Quarter
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1.08
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1.09
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First Quarter
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1.75
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1.85
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Before Offering
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After Offering
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||
Long-term debt
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$ --
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$ --
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Stockholders' Equity:
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|||
Preferred stock, $0.001 par value, 5,000,000 shares authorized,
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|||
no shares outstanding
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--
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--
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Common stock, $0.001 par value, 75,000,000 shares authorized,
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|||
11,298,405 and 23,420,352 shares issued and
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|||
outstanding, respectively
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11,299
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14,485
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Additional paid-in capital
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2,538,519
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3,273,126
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Retained earnings (deficit)
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(2,623,095)
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(2,623,095)
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Total capitalization
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$ (73,277)
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$ 664,516
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Trading price on January 28, 2016
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$0.230
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Net tangible book deficit per share as of September 30, 2015
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$(0.025)
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Benefit to existing stockholders attributable to sale of stock to Kodiak Capital
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0.071
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Pro forma net tangible book per share after the offering
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0.046
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Dilution per share to purchasers in this offering
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$0.184
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·
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Raising Capital. We have been focused primarily on raising capital to finance our operations and software research and development.
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·
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Creating New Products. We have developed new software products, including BumpUp Rewards and CannaLIMS, a laboratory information management systems product.
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·
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Marketing and Distribution. We have selectively marketed our core software products to the cannabis industry.
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·
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Strategic Relationships. We have focused on establishing complementary strategic relationships and selecting acquisitions in order to facilitate new and complementary product development and distribution.
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State
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Status
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Details and Difference in laws
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CO(1)
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Medical and recreational laws passed and in effect
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Enacted a state-wide regulatory agency to govern medical and recreational businesses: Colorado Department of Revenue Marijuana Enforcement Division. Recreational law allows in-state residents age 21 and older to purchase up to 1 ounce of cannabis per day. Recreational law allows out-of-state residents age 21 and older to purchase up to 1/4 ounce of cannabis per transaction. Medical sales require patients to register with the Colorado Department of Public Health and Environment. Medical patients may purchase up to 2 ounces of cannabis per day.
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WA(1)
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Medical and recreational laws passed and in effect
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Enacted a state-wide regulatory agency to govern medical and recreational businesses: Initiative 502 for access to recreational cannabis is governed by the Washington Liquor Control Board. Recreational law allows persons age 21 and older to possess 1 ounce of cannabis. Beginning July 1, 2016, all cannabis producers, processors, and retail stores must be licensed by the Washington Liquor Control Board. Licensed retail stores may apply for and get a medical cannabis endorsement for dual use sales.
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State
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Status
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Details and Difference in laws
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OR(1)
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Medical and recreational laws passed and in effect
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Medical patients must register with the Oregon Health Authority. Medical cannabis dispensaries are regulated by the Oregon Health Authority. Patients are allowed to possess up to 24 ounces of cannabis. Measure 91, which passed in November 2014, allows recreational cannabis sales to be governed by the Oregon Liquor Control Commission, which will tax and regulate recreational cannabis similar to alcohol. The Oregon Medical Marijuana Program (OMMP) and the Medical Marijuana Dispensary Program are both administered by the Oregon Health Authority's Public Health Division. This also includes recreational sales that began in dispensaries on October 1, 2015, and ends December 31, 2016.
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NV(1)
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Medical laws passed and in effect
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Medical patients must register with the Nevada Division of Public and Behavioral Health. Applications to open medical cannabis dispensaries are currently being reviewed by the Nevada Division of Public and Behavioral Health. Patients are allowed to possess up to 2-1/2 ounces of cannabis. The Nevada Marijuana Legalization Initiative is scheduled for the state's November 8, 2016 ballot. The measure, upon approval, would legalize 1 ounce or less of cannabis for recreational use for persons 21 years or older. The initiative would tax cannabis sales and allocate tax revenue to education.
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DC(1)
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Medical and recreational laws passed and in effect
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Medical patients must register with the District of Columbia Department of Health. Medical cannabis dispensaries are regulated by the District of Columbia Department of Health. Patients are allowed to possess up to 2 ounces of cannabis. Recreational cannabis was approved in the last election. Washington D.C. passed Initiative 71 in November 2014. Initiative 71 permits the use of up to 2 ounces of marijuana and the possession and cultivation of up to 3 marijuana plants.
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AK(1)
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Medical laws passed and in effect, recreational use was approved on the November 2014 ballot and in effect February 2015
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Medical patients must register with the Alaska Division of Public Health. Medical cannabis dispensaries are currently not allowed. Patients are allowed to possess up to 1 ounce of cannabis. Ballot Measure 2, which will tax and regulate recreational cannabis similar to alcohol, was approved in November 2014 and became effective February 2015. The final set of rules adopted by the Marijuana Control Board under the governance of Alaska Department of Commerce are to be implemented in early 2016.
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IL(2)
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Medical law passed and roll-out is in progress
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Medical patients must register with the Illinois Department of Public Health. Medical cannabis dispensaries are regulated by the Illinois Department of Financial and Professional Regulation. Medical cannabis cultivation facilities are regulated by the Illinois Department of Agriculture. Patients are allowed to possess up to 2-1/2 ounces of cannabis. The sale of medical cannabis to qualifying patients and caregivers began in November 2015 at eight dispensaries located throughout the state.
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State
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Status
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Details and Difference in laws
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AZ(2)
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Medical laws passed and in effect
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Medical patients must register with the Arizona Department of Health Services. Medical cannabis dispensaries are regulated by the Arizona Department of Health Services. Patients are allowed to possess up to 2-1/2 ounces of cannabis. The Arizona Marijuana Legalization Initiative may appear on the November 8, 2016, ballot. The measure would establish a Department of Marijuana Licenses and Control, which would be tasked with regulating the cultivation, manufacturing, testing, transportation, and sale of marijuana. Local governments would be empowered to regulate and limit marijuana businesses.
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FL(2)
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CBD-only medical law passed and rulemaking is in progress; full medical cannabis initiative was not approved on November 2014 ballot
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Amendment 2 to legalize a full medical cannabis program did not pass on the November 2014 ballot. Currently, Florida has CBD-only specific law for qualifying conditions such as: cancer, muscle spasms, and seizures. State-qualified patients may possess cannabis strains containing 10% or more of CBD and no more than eight-tenths of 1% of THC.
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CA(2)
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Medical laws passed and in effect
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Medical patients must register with the California Department of Public Health. There is no state regulatory agency overseeing medical cannabis dispensaries, but some cities regulate dispensaries locally. There is no specific possession limit in place. Proponents will attempt to place a full-legalization initiative on California's November 2016 ballot.
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NY(2)
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Medical laws passed
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Medical patients will have to register with the New York State Department of Health. Medical cannabis dispensaries will be regulated by the New York State Department of Health. Patients are allowed to possess a 30-day supply of only extracts and concentrates from cannabis. On January 5, 2016, the New York State Department of Health announced the state's Medical Marijuana Program will launch on January 7, 2016. The program will make approved forms of medical cannabis available with a physician's certification at designated dispensaries across New York state.
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ME(3)
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Medical laws passed and in effect
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Medical patients must register with the Maine Department of Health and Human Services. Medical cannabis dispensaries are regulated by the Licensing and Regulatory Services under the Maine Department of Health and Human Services. Patients are allowed to possess 2-1/2 ounces of cannabis.
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NH(3)
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Medical laws passed and in effect
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Medical patients will register with the New Hampshire Department of Health and Human Services. The New Hampshire Department of Health and Human Services will regulate and govern medical cannabis dispensaries. Patients will be allowed to possess up to 2 ounces of cannabis. On Monday, December 28, 2015, the New Hampshire Department of Health and Human Services began to issue Registry Identification Cards by mail to qualifying patients and designated caregivers whose applications have been approved.
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State
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Status
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Details and Difference in laws
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VT(3)
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Medical laws passed and in effect
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Medical patients must register with the Vermont Department of Public Safety. Medical cannabis dispensaries are regulated by the Vermont Department of Public Safety. Patients are allowed to possess up to 2 ounces of cannabis.
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MA(3)
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Medical laws passed and in effect
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Medical patients must register with the Massachusetts Department of Public Health. Medical cannabis dispensaries are not yet operational, but will be regulated by the Massachusetts Department of Public Health. Patients are allowed to possess a 60-day supply of cannabis.
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RI(3)
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Medical laws passed and in effect
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Medical patients must register with the Rhode Island Department of Health. Medical cannabis dispensaries are regulated by the Rhode Island Department of Health. Patients are allowed to possess 2-1/2 ounces of cannabis.
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CT(3)
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Medical laws passed and in effect
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Medical patients must register with the Connecticut Department of Consumer Protection. Medical cannabis dispensaries are regulated by the Connecticut Department of Consumer Protection. Patients are allowed to possess a 30-day supply of cannabis.
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NJ(3)
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Medical laws passed and in effect
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Medical patients must register with the New Jersey Department of Health. Medical cannabis dispensaries are regulated by the New Jersey Department of Health. Patients are allowed to purchase up to 2 ounces of cannabis per month.
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DE(3)
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Medical laws passed and in effect
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Medical patients must register with the Delaware Division of Public Health. Medical cannabis dispensaries are regulated by the Delaware Health and Social Services. Patients are allowed to possess 6 ounces of cannabis.
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MD(3)
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Medical laws passed, rulemaking in progress
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Medical patients will have to register with the Maryland Department of Health and Mental Hygiene. Medical cannabis dispensaries will be regulated by the Maryland Department of Health and Mental Hygiene.
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MI(3)
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Medical laws passed and in effect
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Medical patients must register with the Michigan Department of Licensing and Regulatory Affairs. Medical cannabis dispensaries are not currently allowed, but a proposed bill would allow cities and localities to license and regulate them. Patients are allowed to possess up to 2-1/2 ounces of cannabis.
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MN(3)
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Medical law passed and in effect
|
Medical patients have to register with the Minnesota Department of Health. Medical cannabis dispensaries will be regulated by the Minnesota Department of Health. Patient possession limits are to be determined, but only nonsmokable forms of cannabis are allowed.
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State
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Status
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Details and Difference in laws
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MT(3)
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Medical law passed and in effect
|
Medical patients must register with the Montana Department of Public Health and Human Services. Medical cannabis dispensaries are currently not allowed, but legal actions are seeking to reopen them. Patients are allowed to possess up to 1 ounce of cannabis.
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NM(3)
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Medical laws passed and in effect
|
Medical patients must register with the New Mexico Department of Health. Medical cannabis dispensaries are regulated by the New Mexico Department of Health. Patients are allowed to possess up to 6 ounces of cannabis.
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HI(3)
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Medical laws passed and in effect
|
Medical patients must register with the Hawaii Department of Public Safety. Medical cannabis dispensaries are not allowed. Patients are allowed to possess up to 3 ounces of cannabis.
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NC(3)
SC(3)
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CBD-only medical law passed and rulemaking is in progress
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Rulemaking is in progress to regulate a CBD-only medical cannabis program in these states.
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MS(3)
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CBD-only medical law passed
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This program does not provide reasonable access to CBD medicine for patients. Only institutions of higher learning are able to cultivate cannabis and process it to create CBD-only medication.
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AL(5)
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CBD-only medical law passed and rulemaking is in progress
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This program is likely to be nonfunctional as it requires a cannabis prescription, which is federally illegal. This program also does not protect patients from arrest and prosecution.
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TN(5)
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CBD-only medical law passed
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This law allows a CBD-only medical cannabis study to be conducted by universities only. This study will likely not get underway as universities will not risk losing federal funding.
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KY(5)
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CBD-only medical law passed
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This law does not provide for a source for CBD extracts or production. This program is likely to be nonfunctional as it requires a cannabis prescription, which is federally illegal.
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WI(3)
IA(3)
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CBD-only medical cannabis law in effect
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This law does not provide for reasonable access to CBD products for patients in these states.
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MO(3)
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CBD-only medical law passed
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This law allows for cultivation and processing by state-licensed facilities. Only patients with intractable epilepsy would be allowed access to the CBD medication.
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UT(5)
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CBD-only medical law passed and in effect
|
It is unclear if patients will have reasonable access to CBD medication through colleges and universities allowed to study hemp.
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PA(3)
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Potential legislation proposed for medical cannabis
|
Legislation is for cannabis oil extract for epileptic children. State legislature passed a medical cannabis bill on September 24, 2014, it is uncertain if Governor Corbett will sign into law.
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State
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Status
|
Details and Difference in laws
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VA(5)
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No functional medical laws in effect
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Current medical cannabis law requires a prescription, which is not possible under federal law.
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WV(3)
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No medical laws in effect
|
There is support for future legislation to legalize medical cannabis.
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GA(3)
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No medical laws in effect
|
There is voter support for future legislation to legalize medical cannabis.
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IN(3)
LA(3)
ND(3)
SD(3)
WY(3)
|
No medical laws passed
|
There is little legislative support for medical cannabis in these states.
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AR(3)
|
No medical laws passed
|
A November 2012 effort to pass a medical cannabis law garnered 48% of the vote.
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NE(3)
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No medical laws passed
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A medical cannabis law was proposed, but failed to make it through committee in 2014.
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KS(3)
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No medical laws passed
|
Two medical cannabis laws were proposed, but failed to make it through committee in 2014.
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OK(3)
|
No medical laws passed
|
A medical cannabis law was proposed, but failed to make it through committee in 2014. There is significant voter support for medical cannabis.
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TX(3)
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No medical laws passed
|
Governor Rick Perry has signaled his support of states' rights to legalize cannabis. In February 2015, Texas House Bill 2165 was introduced to legalize and regulate cannabis sales.
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ID(3)
|
No medical laws passed
|
There is little support for medical cannabis laws from the Idaho Legislature, but significant support among voters.
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OH(3)
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No medical laws in effect
|
There is support for the legalization of medical cannabis, but bills typically die in committee. February 2015, a proposed constitutional amendment is gathering signatures to get the amendment on the November 2015 ballot.
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(1) | We intend to do business in this state. |
(2) | We are considering doing business in this state. |
(3) | We are not considering doing business in this state. |
●
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distribution to minors;
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●
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revenue from the sale of cannabis going to criminal enterprise, gangs, and cartels;
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●
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the diversion of cannabis from states where it is legal under state law in some form to other states;
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●
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state-authorized cannabis activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity;
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●
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violence and the use of firearms in the cultivation and distribution of cannabis;
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●
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drugged driving and the exacerbation of other adverse public health consequences associated with cannabis use;
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●
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the growing of cannabis on public lands and the attendant public safety and environmental dangers posed by cannabis production on public lands; and
|
·
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cannabis possession or use on federal property.
|
Name
|
Age
|
Director
Since
|
Position
|
Michael A. Tew
|
36
|
2015
|
Chief Executive Officer, Chief Financial Officer, Director
|
Brandon C. Jennewine
|
41
|
2014
|
Chief Technical Officer, Chief Operations Officer, Chairman
|
Daniel J. Rogers
|
41
|
2014
|
Director
|
David H. Wollins
|
63
|
2015
|
Director
|
Name and Principal Position
|
Year
Ended
Dec. 31
|
Salary
($)
|
Bonus
($)
|
Stock
Award(s)
($)
|
Option
Awards
($)(1)
|
Non
Equity
Incentive
Plan
Compen-
sation
|
Change in
Pension
Value and
Non-
Qualified
Deferred
Compen-
sation
Earnings
($)
|
All Other
Compen-
sation
($)(1)
|
Total ($)
|
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
(f)
|
(g)
|
(h)
|
(i)
|
(j)
|
Michael A. Tew(2)
|
2015
|
$70,000
|
--
|
--
|
--
|
--
|
--
|
$4,012
|
$74,012
|
Chief Executive Officer
|
|||||||||
Chief Financial Officer
|
|||||||||
Brandon C. Jennewine(3)
|
2015
|
$85,577
|
--
|
--
|
--
|
--
|
--
|
$3,519
|
$89,096
|
Chief Operations Officer
|
2014
|
28,077
|
--
|
--
|
--
|
--
|
--
|
--
|
28,077
|
(1) | Comprised of health insurance premiums. |
(2) | Mr. Tew became our chief executive officer on July 1, 2015. |
(3) | Mr. Jennewine was our chief executive officer from August 2014 to July 1, 2015. |
·
|
Michael A. Tew–On July 10, 2015, we entered into a one-year employment agreement effective July 1, 2015, with Michael A. Tew, our chief executive officer, chief financial officer, and a director. Under the agreement, we pay Mr. Tew a base salary of $168,000 for the initial one-year term, plus a bonus as determined by our board of directors, and provide medical insurance benefits. On December 31, 2015, Mr. Tew's employment agreement was amended to cancel the stock grants that were issued under his employment agreement, and in exchange therefor, we granted to Mr. Tew warrants to purchase 3,000,000 shares of our common stock, of which a warrant to purchase 1,500,000 shares was immediately exercisable and a warrant to purchase 1,500,000 shares becomes exercisable quarterly in 250,000 increments over six quarters commencing March 31, 2016.
|
·
|
Brandon C. Jennewine–On July 10, 2015, we entered into a one-year employment agreement effective July 1, 2015, with our former chief executive officer, Brandon C. Jennewine, to become our chief technology officer and chief operations officer. Mr. Jennewine continues to serve as the chairman of our board of directors. Under the agreement, we pay Mr. Jennewine a base salary of $120,000 for the initial one-year term, plus a bonus as determined by our board of directors, and provide medical insurance benefits. On December 31, 2015, Mr. Jennewine's employment agreement was amended to cancel the stock grants that were issued under his employment agreement, and in exchange therefor, we granted to Mr. Jennewine a warrant to purchase 500,000 shares of our common stock.
|
Before Offering
|
After
Offering
|
|||||||
Name and Address
of Beneficial Owner(1)(2)
|
Nature
of Ownership
|
Amount
|
Percent(3)
|
Percent(4)
|
||||
Principal Stockholder:
|
||||||||
Mile High Brands, Inc.
|
Common Stock
|
10,000,000
|
46.6%
|
40.5%
|
||||
F-squared Enterprises, LLC(4)
|
Common Stock
|
1,515,000
|
7.1
|
6.1
|
||||
Warrants
|
500,000
|
2.3
|
2.0
|
|||||
2,015,000
|
9.2
|
8.0
|
||||||
Directors:
|
||||||||
Brandon C. Jennewine(5)
|
Common Stock
|
1,515,000
|
7.1
|
6.1
|
||||
Warrants
|
500,000
|
2.3
|
2.0
|
|||||
2,015,000
|
9.2
|
8.0
|
||||||
Daniel J. Rogers
|
Common Stock
|
400,000
|
1.9
|
1.6
|
||||
Warrants
|
250,000
|
1.2
|
1.0
|
|||||
650,000
|
3.0
|
2.6
|
||||||
Michael A. Tew(6)
|
Warrants
|
3,000,000
|
12.3
|
10.8
|
||||
David H. Wollins(7)
|
Warrants
|
150,000
|
*
|
*
|
||||
All Executive Officers and
|
Common Stock
|
1,915,000
|
8.9
|
7.8
|
||||
Directors as a Group
|
||||||||
(4 persons)
|
Warrants
|
3,900,000
|
18.2
|
13.7
|
||||
5,815,000
|
22.9%
|
20.4%
|
(1) | All ownership is direct unless otherwise indicated. |
(2) | Address for all stockholders is 1350 17th Street, Suite 150, Denver, CO 80202, except Mile High Brands, Inc., whose address is MHB, Inc., Attn: Arnold Jay Boisdrenghien, 5910 S. University Blvd, C-18 Unit 165, Littleton, CO 80121. |
(3) | Calculations of total percentages of ownership outstanding for each person or group assume the exercise of all derivative securities owned by the individual or group to which the percentage relates, pursuant to Rule 13d-3(d)(1)(i). |
(4) | Assumes the sale of 3,187,015 shares of common stock to Kodiak Capital. |
(5) | These shares are beneficially owned by Brandon C. Jennewine since he is the owner of F-squared Enterprises, LLC, which directly owns the shares. |
(6) | Consists of warrants to purchase 3,000,000 shares, of which 1,500,000 became exercisable immediately and 1,500,000 become exercisable in six quarterly installments of 250,000 each, commencing March 31, 2016. |
(7) | Consists of a warrant to purchase 150,000 shares, which becomes exercisable in four equal quarterly installments, commencing March 31, 2016. |
·
|
The registration statement of which this prospectus forms a part, and any amendment or supplement thereto, must be effective for the sale by Kodiak Capital of the shares to be purchased by Kodiak Capital, and: (i) neither we nor Kodiak Capital has received notice that the SEC has issued or intends to issue a stop order respecting the registration statement or that the SEC otherwise has suspended or withdrawn the effectiveness of the registration statement, either temporarily or permanently, or intends or has threatened to do so; and (ii) there is no other suspension of the use or withdrawal of the effectiveness of the registration statement or this prospectus.
|
·
|
Our representations and warranties contained in the Purchase Agreement must be true and correct in all material respects (except for representations and warranties specifically made as of a particular date), except for any conditions that have temporarily caused any representations or warranties to be incorrect and which have been corrected with no continuing impairment to us or Kodiak Capital.
|
·
|
We have performed in all material respects all covenants, agreements, and conditions required by the Purchase Agreement to be performed, satisfied, or complied with by us.
|
·
|
No statute, rule, regulation, executive order, decree, ruling, or injunction has been enacted, entered, promulgated, or adopted by any court or governmental authority of competent jurisdiction that prohibits or directly and materially adversely affects any of the transactions contemplated by the Purchase Agreement, and no proceeding has been commenced that may have the effect of prohibiting or materially adversely affecting any of the transactions contemplated by the Purchase Agreement.
|
·
|
The trading of our common stock has not been suspended by the SEC, the principal trading market for our common stock, or the Financial Industry Regulatory Authority, Inc., and our common stock has been approved for listing or quotation on and has not been delisted from such principal market.
|
·
|
The number of shares of our common stock to be purchased by Kodiak Capital at a particular closing may not exceed the number of shares that, when aggregated with all other shares of common stock then beneficially owned by Kodiak Capital, would result in it owning more than 9.99% of all of our outstanding common stock.
|
·
|
We have no knowledge of any event more likely than not to have the effect of causing the registration statement of which this prospectus forms a part to be suspended or otherwise ineffective.
|
Assumed
Volume-
Weighted
Trading Price
|
Assumed
Average
Purchase Price
Per Share
|
Number of Registered
Shares to be Issued if
Full Purchase(1)
|
Percentage of
Outstanding Shares
After Giving Effect to
the Issuance(2)
|
Additional Proceeds
from the Sale of
Registered Shares Under
the Purchase Agreement
|
$0.100
|
$0.070
|
3,187,015
|
12.9%
|
$ 223,091
|
0.150
|
0.105
|
3,187,015
|
12.9
|
334,637
|
0.230
|
0.160(3)
|
3,187,015
|
12.9
|
513,109
|
0.300
|
0.210
|
3,187,015
|
12.9
|
669,273
|
0.350
|
0.245
|
3,187,015
|
12.9
|
780,819
|
0.400
|
0.280
|
3,187,015
|
12.9
|
892,364
|
0.450
|
0.315
|
3,174,063
|
12.9
|
1,000,000
|
0.500
|
0.350
|
2,857,142
|
11.7
|
1,000,000
|
(1) | Although the Purchase Agreement with Kodiak Capital provides that we may sell up to $1 million in our common stock in the aggregate, we are registering 3,187,015 shares for resale by Kodiak Capital under this prospectus, which may or may not cover all the shares we ultimately sell to Kodiak Capital under the Purchase Agreement, depending on the purchase price per share. As a result, we have included in this column only those shares that we are registering in this offering. |
(2) | The denominator is based on 21,476,045 shares outstanding as of January 28, 2016, and is adjusted to include the number of shares set forth in the adjacent column that we would have sold to Kodiak Capital at the applicable assumed purchase price per share. The numerator is based on the number of shares issuable under the Purchase Agreement at the corresponding assumed volume-weighted trading price and the calculated purchase price set forth in the preceding columns. The number of shares in such column does not include shares that may be issued to Kodiak Capital under the Purchase Agreement that are not registered in this offering. |
(3) | $0.160 is 70% of $0.23, the closing price of the common stock on January 28, 2016. |
Selling Stockholder
|
Shares Beneficially Owned Before this Offering
|
Percentage of Outstanding Shares Beneficially Owned Before this Offering(1)
|
Shares to be Sold in this Offering
|
Number Of Shares Beneficially Owned After this Offering
|
Percentage of Outstanding Shares Beneficially Owned After this Offering
|
Kodiak Capital Group, LLC
|
--
|
*
|
3,187,015
|
--
|
*
|
* | Less than 1% |
(1) | Based on 21,476,045 outstanding shares of our common stock as of January 28, 2016. Although we may, at our discretion, elect to issue to Kodiak Capital up to an aggregate amount of $1 million in our common stock under the Purchase Agreement, such shares are not included in determining the percentage of shares beneficially owned before this offering. |
·
|
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
|
·
|
on the OTCQB;
|
·
|
block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction;
|
·
|
purchases by a broker-dealer as principal and resales by the broker-dealer for its account;
|
·
|
an exchange distribution in accordance with the rules of the applicable exchange;
|
·
|
privately negotiated transactions;
|
·
|
through agreement between a broker-dealer and the selling stockholder to sell a specified number of shares at a stipulated price per share;
|
·
|
a combination of any of these methods of sale; and
|
·
|
any other method permitted pursuant to applicable law.
|
|
Page
|
|
|
|
|
|
|
|
Page
|
|
|
|
|
CANNASYS, INC.
Consolidated Balance Sheets
|
||||||||
December 31,
|
||||||||
2014
|
2013
|
|||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash
|
$ | 525,720 | $ | 88,389 | ||||
Accounts receivable
|
2,224 | - | ||||||
Prepaid expenses and other assets
|
2,828 | 1,685 | ||||||
Total Current Assets
|
530,772 | 90,074 | ||||||
Property & equipment, net
|
7,987 | - | ||||||
Software license
|
25,000 | - | ||||||
Deposit
|
12,502 | - | ||||||
Total Assets
|
$ | 576,261 | $ | 90,074 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$ | 21,133 | $ | 10,000 | ||||
Accrued expenses
|
54,070 | 2,579 | ||||||
Due to a related party
|
1,320 | - | ||||||
Total Current Liabilities
|
76,523 | 12,579 | ||||||
Total Liabilities
|
76,523 | 12,579 | ||||||
Stockholders’ Equity:
|
||||||||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued
|
- | - | ||||||
Common stock, $0.001 par value, 75,000,000 shares
|
||||||||
authorized, 11,043,755 and 3,960,000 shares issued and outstanding, respectively
|
11,044 | 3,960 | ||||||
Additional paid-in capital
|
2,247,524 | 106,028 | ||||||
Accumulated deficit
|
(1,758,830 | ) | (32,493 | ) | ||||
Total Stockholders’ Equity
|
499,738 | 77,495 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 576,261 | $ | 90,074 |
CANNASYS, INC.
Consolidated Statements of Operations
|
||||||||
For the year ended
December 31, 2014
|
For the period from inception on October 4, 2013 through December 31, 2013
|
|||||||
Sales revenue
|
$ | 6,538 | $ | - | ||||
Cost of goods sold
|
12,006 | - | ||||||
Gross Margin
|
(5,468 | ) | - | |||||
Operating Expenses:
|
||||||||
Stock compensation expense
|
1,012,500 | - | ||||||
Professional fees
|
130,642 | - | ||||||
Salary and wages expense
|
274,057 | - | ||||||
General and administrative
|
125,132 | 32,493 | ||||||
Research and development expense
|
178,538 | - | ||||||
Total Operating Expenses
|
1,720,869 | 32,493 | ||||||
Loss from Operations
|
(1,726,337 | ) | (32,493 | ) | ||||
Net loss
|
$ | (1,726,337 | ) | $ | (32,493 | ) | ||
Basic and diluted loss per common share
|
$ | (0.24 | ) | $ | (0.00 | ) | ||
Weighted average number of common shares outstanding
|
7,282,387 | 3,960,000 |
CANNASYS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the year ended
December 31, 2014
|
For the period from inception on October 4, 2013 through December 31, 2013
|
|||||||
Cash flow from operating activities
|
||||||||
Net loss
|
$ | (1,726,337 | ) | $ | (32,493 | ) | ||
Adjustments to reconcile net loss to net cash
|
||||||||
used in operating activities:
|
||||||||
Depreciation
|
416 | - | ||||||
Stock-based compensation
|
1,012,500 | - | ||||||
Change in operating assets and liabilities:
|
||||||||
Increase in accounts receivable
|
(2,224 | ) | - | |||||
Increase in prepaids
|
(1,143 | ) | (1,685 | ) | ||||
Increase in other assets
|
(37,502 | ) | - | |||||
Increase in related-party payable
|
1,320 | - | ||||||
Increase in accounts payable
|
25,414 | 10,000 | ||||||
Increase in accrued expenses
|
50,171 | 2,579 | ||||||
Net cash used in operating activities
|
(677,385 | ) | (21,599 | ) | ||||
Cash flows (used) /provided by investing activities:
|
||||||||
Purchase of property and equipment
|
(8,403 | ) | - | |||||
Cash acquired in merger between CannaSys and Thermal Tennis
|
35,719 | - | ||||||
Net cash provided by investing activities
|
27,316 | - | ||||||
Cash flows from financing activities:
|
||||||||
Proceeds from the sales of common stock
|
1,087,400 | 100,000 | ||||||
Contributed capital
|
- | 9,988 | ||||||
Net cash provided by financing activities
|
1,087,400 | 109,988 | ||||||
Net increase in cash
|
437,331 | 88,389 | ||||||
Cash at beginning of the period
|
88,389 | - | ||||||
Cash at end of the period
|
$ | 525,720 | $ | 88,389 | ||||
Supplemental Disclosures:
|
||||||||
Interest paid
|
$ | - | $ | - | ||||
Income taxes paid
|
$ | - | $ | - |
CANNASYS, INC.
STATEMENT OF STOCKHOLDERS’ EQUITY
|
Common Stock
|
||||||||||||||||||||
Shares
|
Amount
|
Additional Paid In Capital
|
Accumulated Deficit
|
Total
|
||||||||||||||||
Inception on October 4, 2013
|
- | $ | - | $ | - | $ | - | $ | - | |||||||||||
Issuance of common stock for cash
|
3,960,000 | 3,960 | 106,028 | - | 109,988 | |||||||||||||||
Net loss for the year ended December 31, 2013
|
- | - | - | (32,493 | ) | (32,493 | ) | |||||||||||||
Balance, December 31, 2013
|
3,960,000 | 3,960 | 106,028 | (32,493 | ) | 77,495 | ||||||||||||||
Issuance of common stock for cash
|
3,685,667 | 3,686 | 1,083,714 | - | 1,087,400 | |||||||||||||||
Issuance of common stock for compensation
|
675,000 | 675 | 1,011,825 | - | 1,012,500 | |||||||||||||||
Merger acquisition
|
2,723,088 | 2,723 | 45,957 | - | 48,680 | |||||||||||||||
Net loss for the year ended December 31, 2014
|
- | - | - | (1,726,337 | ) | (1,726,337 | ) | |||||||||||||
Balance, December 31, 2014
|
11,043,755 | $ | 11,044 | $ | 2,247,524 | $ | (1,758,830 | ) | $ | 499,738 |
December 31, 2014
|
December 31, 2013
|
|||||||
Furniture, fixtures, and equipment
|
$ | 8,403 | $ | - | ||||
Less: accumulated depreciation
|
(416 | ) | - | |||||
Fixed assets, net
|
$ | 7,987 | $ | - |
Year
|
Amount
|
|||
2015
|
$ | 28,278 | ||
2016
|
35,423 | |||
2017
|
37,208 | |||
2018
|
6,251 | |||
$ | 107,160 |
2014
|
2013
|
|||||||
Deferred Tax Assets:
|
||||||||
NOL Carryover
|
$ | 188,900 | $ | - | ||||
Related-party accrual
|
500 | - | ||||||
Depreciation
|
1,500 | - | ||||||
Deferred tax liabilities:
|
||||||||
Less valuation allowance
|
(190,900 | ) | - | |||||
Net deferred tax assets
|
$ | - | $ | - |
2014
|
2013
|
|||||||
Book Income (loss)
|
$ | (583,800 | ) | $ | - | |||
Meals and entertainment
|
1,000 | - | ||||||
Depreciation
|
(1,500 | ) | - | |||||
Other nondeductible expenses
|
394,900 | - | ||||||
Related party accruals
|
500 | - | ||||||
Valuation allowance
|
188,900 | - | ||||||
$ | - | $ | - |
September 30,
2015
|
December 31,
2014
|
|||||||
Assets
|
(unaudited)
|
|||||||
Current Assets:
|
||||||||
Cash
|
$ | 19,381 | $ | 525,720 | ||||
Accounts receivable
|
800 | 2,224 | ||||||
Prepaid expenses and other assets
|
- | 2,828 | ||||||
Total Current Assets
|
20,181 | 530,772 | ||||||
Property & equipment, net
|
5,884 | 7,987 | ||||||
Software license
|
205,000 | 25,000 | ||||||
Deposit
|
12,502 | 12,502 | ||||||
Total Assets
|
$ | 243,567 | $ | 576,261 | ||||
Liabilities and Stockholders’ Equity (Deficit)
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$ | 54,723 | $ | 21,133 | ||||
Accrued expenses
|
62,121 | 54,070 | ||||||
Notes payable
|
200,000 | - | ||||||
Due to a related party
|
- | 1,320 | ||||||
Total Current Liabilities
|
316,844 | 76,523 | ||||||
Total Liabilities
|
316,844 | 76,523 | ||||||
Commitments and Contingencies
|
- | - | ||||||
Stockholders’ Equity (Deficit):
|
||||||||
Preferred stock, $0.001 par value, 5,000,000 shares
|
||||||||
authorized, no shares issued
|
- | - | ||||||
Common stock, $0.001 par value, 75,000,000 shares
|
||||||||
authorized, 11,298,405 and 11,043,755 shares issued and
|
||||||||
outstanding, respectively
|
11,299 | 11,044 | ||||||
Additional paid-in capital
|
2,538,519 | 2,247,524 | ||||||
Accumulated deficit
|
(2,623,095 | ) | (1,758,830 | ) | ||||
Total Stockholders’ Equity (Deficit)
|
(73,277 | ) | 499,738 | |||||
Total Liabilities and Stockholders’ Equity (Deficit)
|
$ | 243,567 | $ | 576,261 |
For the Three Months Ended
September 30,
|
For the Nine Months Ended
September 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Sales revenue
|
$ | 48,156 | $ | 1,627 | $ | 76,404 | $ | 1,627 | ||||||||
Cost of goods sold
|
6,800 | 1,832 | 10,018 | 8,874 | ||||||||||||
Gross Margin
|
41,356 | (205 | ) | 66,386 | (7,247 | ) | ||||||||||
Operating Expenses:
|
||||||||||||||||
Professional fees
|
58,847 | 61,314 | 155,827 | 61,314 | ||||||||||||
Salary and wage expense
|
335,297 | 1,098,398 | 572,151 | 1,148,747 | ||||||||||||
General and administrative
|
96,394 | 47,496 | 200,585 | 227,560 | ||||||||||||
Total Operating Expenses
|
490,538 | 1,207,208 | 928,563 | 1,437,621 | ||||||||||||
Loss from Operations
|
(449,182 | ) | (1,207,413 | ) | (862,177 | ) | (1,444,868 | ) | ||||||||
Other expense:
|
||||||||||||||||
Interest expense
|
(1,410 | ) | - | (2,088 | ) | - | ||||||||||
Total other expense
|
(1,410 | ) | - | (2,088 | ) | - | ||||||||||
Loss before provision for income taxes
|
(450,592 | ) | (1,207,413 | ) | (864,265 | ) | (1,444,868 | ) | ||||||||
Provision for income taxes
|
- | - | - | - | ||||||||||||
Net loss
|
$ | (450,592 | ) | $ | (1,207,413 | ) | $ | (864,265 | ) | $ | (1,444,868 | ) | ||||
Basic and diluted loss per common share
|
$ | (0.04 | ) | $ | (0.13 | ) | $ | (0.08 | ) | $ | (0.24 | ) | ||||
Weighted average number of common shares outstanding
|
11,274,053 | 9,062,217 | 11,135,605 | 6,020,440 |
For the Nine Months Ended
September 30,
|
||||||||
2015
|
2014
|
|||||||
Cash flow from operating activities
|
||||||||
Net loss
|
$ | (864,265 | ) | $ | (1,444,868 | ) | ||
Adjustments to reconcile net loss to net cash
|
||||||||
used in operating activities:
|
||||||||
Depreciation
|
2,103 | - | ||||||
Stock based compensation
|
208,000 | - | ||||||
Change in operating assets and liabilities:
|
||||||||
Decrease in accounts receivable
|
1,424 | - | ||||||
Decrease in prepaids
|
2,828 | 1,685 | ||||||
Increase in other assets
|
(96,750 | ) | - | |||||
Increase (decrease) in related-party payable
|
(1,320 | ) | 1,320 | |||||
Increase in accounts payable
|
33,590 | 20,361 | ||||||
Increase in accrued expenses
|
8,051 | 1,032,942 | ||||||
Net cash used in operating activities
|
(706,339 | ) | (388,560 | ) | ||||
Cash flows provided by investing activities:
|
||||||||
Cash acquired in merger
|
- | 35,719 | ||||||
Net cash provided by investing activities
|
35,719 | |||||||
Cash flows from financing activities:
|
||||||||
Proceeds from loans
|
200,000 | 500,000 | ||||||
Proceeds from sale of common stock
|
- | 200,000 | ||||||
Proceeds from stock subscription payable
|
- | 252,000 | ||||||
Net cash provided by financing activities
|
200,000 | 952,000 | ||||||
Net increase (decrease)in cash
|
(506,339 | ) | 599,159 | |||||
Cash at beginning of the period
|
525,720 | 88,389 | ||||||
Cash at end of the period
|
$ | 19,381 | $ | 687,548 | ||||
Supplemental Disclosures:
|
||||||||
Interest paid
|
$ | - | $ | - | ||||
Income taxes paid
|
$ | - | $ | - | ||||
Supplemental disclosure of non-cash activities
|
||||||||
Common stock issued for software license
|
$ | 83,249 | $ | - |
|
·
|
Level 1:
|
Quoted prices in active markets for identical assets or liabilities.
|
|
·
|
Level 2:
|
Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
|
|
·
|
Level 3:
|
Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.
|
Equipment
|
3 years
|
Furniture and fixtures
|
3 years
|
September 30, 2015
|
December 31, 2014
|
|||||||
Furniture, fixtures, and equipment
|
$ | 8,403 | $ | 8,403 | ||||
Less: accumulated depreciation
|
(2,519 | ) | (416 | ) | ||||
Fixed assets, net
|
$ | 5,884 | $ | 7,987 |
Year
|
Amount
|
|||
2015
|
$ | 28,278 | ||
2016
|
35,423 | |||
2017
|
37,208 | |||
2018
|
6,251 | |||
$ | 107,160 |
Nature of Expense
|
Amount(1)
|
SEC registration fee
|
$ 74.30
|
Transfer agent's, and registrars' fees and expenses
|
2,000.00
|
Accounting fees and expenses
|
12,500.00
|
Legal fees and expenses
|
50,000.00
|
Printing and engraving expenses
|
2,000.00
|
Miscellaneous
|
3,425.70
|
Total
|
$70,000.00
|
(1) | All amounts except SEC registration fee are estimates. |
Exhibit
Number*
|
Title of Document
|
Location
|
||
Item 2
|
Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession
|
|||
2.01
|
Agreement and Plan of Merger
|
Incorporated by reference from the Current Report on Form 8-K/A filed August 28, 2014
|
||
Item 3
|
Articles of Incorporation and Bylaws
|
|||
3.01
|
Amended and Restated Articles of Incorporation, filed November 12, 2014
|
Incorporated by reference from a Current Report on Form 8-K filed November 12, 2014
|
||
3.02
|
Bylaws
|
Incorporated by reference from the Registration Statement on Form S‑1 filed May 13, 2008
|
||
Item 4
|
Instruments Defining the Rights of Security Holders, including indentures
|
|||
4.01
|
Specimen Common Stock Certificate of Registrant
|
Incorporated by reference from the Registration Statement on Form S‑1 filed May 13, 2008
|
||
Item 5
|
Opinion re Legality
|
|||
5.01
|
Opinion of Kruse Landa Maycock & Ricks, LLC
|
This filing.
|
||
Item 10
|
Material Contracts
|
|||
10.01
|
Sublease Agreement between Motocol LLC and CannaSys, LLC dated February 1, 2014
|
Incorporated by reference from the Current Report on Form 8-K filed August 21, 2014
|
||
10.02
|
Employment letter agreement of Brandon C. Jennewine dated July 8, 2014**
|
Incorporated by reference from the Current Report on Form 8-K filed August 21, 2014
|
Exhibit
Number*
|
Title of Document
|
Location
|
10.03
|
Employment letter agreement of Daniel J. Rogers dated July 8, 2014**
|
Incorporated by reference from the Current Report on Form 8-K filed August 21, 2014
|
||
10.04
|
Office Lease between CannaSys, Inc. (Tenant) and Denver Tower Equities LLC (Landlord), dated October 16, 2014
|
Incorporated by reference from the Current Report on Form 8-K filed October 20, 2014
|
||
10.05
|
License Agreement between Loyl.Me LLC and CannaSys, LLC dated February 9, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed February 12, 2015
|
||
10.06
|
License Agreement between Loyl.Me LLC and CannaSys, LLC dated February 12, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed February 12, 2015
|
||
10.07
|
Revised employment letter agreement of Brandon Jennewine dated January 30, 2015**
|
Incorporated by reference from the Annual Report on Form 10-K for the year ended December 31, 2014, filed March 30, 2015
|
||
10.08
|
Revised employment letter agreement of Dan Rogers dated January 30, 2015**
|
Incorporated by reference from the Annual Report on Form 10-K for the year ended December 31, 2014, filed March 30, 2015
|
||
10.09
|
Employment Agreement between CannaSys, Inc. and Michael A. Tew (executive), effective July 1, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed July 15, 2015
|
||
10.10
|
Employment Agreement between CannaSys, Inc. and Brandon C. Jennewine (executive), effective July 1, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed July 15, 2015
|
||
10.11
|
Grant of Restricted Stock between CannaSys, Inc. and Michael A. Tew, effective July 1, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed July 15, 2015
|
||
10.12
|
Grant of Restricted Stock between CannaSys, Inc. and Brandon C. Jennewine, effective July 1, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed July 15, 2015
|
||
10.13
|
Securities Purchase Agreement between CannaSys, LLC and EMA Financial, LLC dated October 14, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed October 23, 2015
|
||
10.14
|
10% Convertible Note between CannaSys, Inc. and EMA Financial, LLC dated October 14, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed October 23, 2015
|
Exhibit
Number*
|
Title of Document
|
Location
|
10.15
|
Share Exchange Agreement between MHB, Inc. and CannaSys, LLC, including Exhibit A-Gross Revenue Assignment, dated November 3, 2015
|
Incorporated by reference from the Current Report on Form 8-K/A filed November 17, 2015
|
||
10.16
|
Marketing and Alliance Agreement between Green Capital Ventures, Inc. and CannaSys, Inc., dated as of November 11, 2015, including exhibits
|
Incorporated by reference from the Current Report on Form 8-K filed November 23, 2015
|
||
10.17
|
10% Convertible Note between CannaSys, Inc. and Tangiers Investment Group, LLC, dated November 18, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed November 24, 2015
|
||
10.18
|
10% Convertible Note between CannaSys, Inc. and Auctus Fund, LLC, dated December 3, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed December 9, 2015
|
||
10.19
|
Securities Purchase Agreement between CannaSys, Inc. and Auctus Fund, LLC, dated December 3, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed December 9, 2015
|
||
10.20
|
12% Convertible Note between CannaSys, Inc. and Kodiak Investment Group, LLC, dated November 30, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed December 22, 2015
|
||
10.21
|
Equity Purchase Agreement between CannaSys, Inc. and Kodiak Investment Group, LLC, dated December 15, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed December 22, 2015
|
||
10.22
|
Registration Rights Agreement between CannaSys, Inc. and Kodiak Investment Group, LLC, dated December 15, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed December 22, 2015
|
||
10.23
|
Convertible Promissory Note due July 15, 2016
|
Incorporated by reference from the Current Report on Form 8-K filed December 22, 2015
|
||
10.24
|
Technology Services Agreement between CannaSys, Inc. and National Concessions Group, Inc., dated December 20, 2015, including exhibits
|
Incorporated by reference from the Current Report on Form 8-K filed December 23, 2015
|
||
10.25
|
Consulting Agreement between CannaSys, Inc. and National Concessions Group, Inc., dated December 20, 2015, including Warrant
|
Incorporated by reference from the Current Report on Form 8-K filed December 23, 2015
|
||
10.26
|
Asset Purchase Agreement between CannaSys, Inc. and Luvbuds, LLC, and Brett Harris, entered December 17, 2015
|
This filing.
|
Exhibit
Number*
|
Title of Document
|
Location
|
10.27
|
Bill of Sale, Assignment, and Assumption Agreement between CannaSys, Inc. and Luvbuds, LLC, dated December 17, 2015
|
This filing.
|
||
10.28
|
Amendment No. 1 to Employment Agreement between CannaSys, Inc. and Michael A. Tew, effective December 24, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed January 6, 2016
|
||
10.29
|
Amendment No. 1 to Employment Agreement between CannaSys, Inc. and Brandon C. Jennewine, effective December 24, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed January 6, 2016
|
||
10.30
|
CannaSys, Inc. Warrant for the Purchase of 1,500,000 Shares of Common Stock, Par Value $0.001, issued to Michael A. Tew, effective December 24, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed January 6, 2016
|
||
10.31
|
CannaSys, Inc. Warrant for the Purchase of 1,500,000 Shares of Common Stock, Par Value $0.001, issued to Michael A. Tew, effective December 24, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed January 6, 2016
|
||
10.32
|
CannaSys, Inc. Warrant for the Purchase of 500,000 Shares of Common Stock, Par Value $0.001, issued to Brandon Jennewine, effective December 24, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed January 6, 2016
|
||
10.33
|
CannaSys, Inc. Warrant for the Purchase of 250,000 Shares of Common Stock, Par Value $0.001, issued to Daniel J. Rogers, effective December 24, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed January 6, 2016
|
||
10.34
|
CannaSys, Inc. Warrant for the Purchase of 150,000 Shares of Common Stock, Par Value $0.001, issued to David H. Wollins, effective December 24, 2015**
|
Incorporated by reference from the Current Report on Form 8-K filed January 6, 2016
|
||
Item 16
|
Letter re Change in Certifying Accountant
|
|||
16.01
|
Letter from HJ & Associates to Securities and Exchange Commission regarding change in certifying accountant dated April 8, 2015
|
Incorporated by reference from the Current Report on Form 8-K filed April 8, 2015
|
||
Item 21
|
Subsidiaries of the Registrant
|
|||
21.01
|
Schedule of Subsidiaries
|
This filing.
|
||
Item 23
|
Consents of Experts and Counsel
|
|||
23.01
|
Consent of BF Borgers CPA, PC
|
This filing.
|
||
23.02
|
Consent of HJ & Associates, LLC
|
This filing.
|
||
23.03
|
Consent of Kruse Landa Maycock & Ricks, LLC
|
Included in exhibit 5.01.
|
Exhibit
Number*
|
Title of Document
|
Location
|
Item 24
|
Power of Attorney
|
|||
24.01
|
Power of Attorney
|
See signature page to this filing.
|
||
Item 101
|
Interactive Data Files***
|
|||
101.INS
|
XBRL Instance Document
|
This filing.
|
||
101.SCH
|
XBRL Taxonomy Extension Schema
|
This filing.
|
||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
This filing
|
||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
This filing.
|
||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
This filing.
|
||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
This filing.
|
* | All exhibits are numbered with the number preceding the decimal indicating the applicable SEC reference number in Item 601 and the number following the decimal indicating the sequence of the particular document. Omitted numbers in the sequence refer to documents previously filed as an exhibit. |
** | Identifies each management contract or compensatory plan or arrangement required to be filed as an exhibit, as required by Item 15(a)(3) of Form 10-K. |
*** | Users of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or Annual Report for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Exchange Act of 1934 and otherwise are not subject to liability. |
(1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
(i) | to include any prospectus required by section 10(a)(3) of the Securities Act of 1933; |
(ii) | reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and |
(iii) | include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. |
(2) | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(4) | That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: |
(i) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(ii) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
(iii) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
(iv) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
CANNASYS, INC.
|
||
Dated: January 29, 2016
|
By:
|
/s/ Michael A. Tew
|
Michael A. Tew
|
||
Secretary and Chief Executive Officer
|
Name and Signature
|
Title
|
Date
|
||
/s/ Michael A. Tew
|
||||
Michael A. Tew
|
Chief Executive Officer (Principal Executive Officer),
|
January 29, 2016
|
||
Chief Financial Officer (Principal Financial Officer),
|
||||
Secretary, and Director
|
||||
/s/ Brandon C. Jennewine
|
||||
Brandon C. Jennewine
|
Chairman, Chief Technical Officer, and
|
January 29, 2016
|
||
Chief Operations Officer
|
||||
/s/ Daniel J. Rogers
|
||||
Daniel J. Rogers
|
Director
|
January 29, 2016
|
||
/s/ David H. Wollins
|
||||
David H. Wollins
|
Director
|
February 1, 2016
|
LB SKU
|
DESCRIPTION
|
LF-BNDN
|
Single center leaf bandana
|
RS-BNDN
|
Rasta Bandana
|
ML-BNDN
|
Multi leaf bandana
|
2170 LEAF
|
Leaf Magic Boxer Shorts
|
#02928
|
Rasta Bracelet (Various Styles)
|
#06339
|
Rasta Coco Bracelets (Various Styles)
|
WHPH
|
White Hat pink heart
|
WHBH
|
White Hat Black Heart
|
BHRH
|
Black Hat Red Heart
|
BHRLB
|
Black Hat Red LUVBUDS
|
RHBLB
|
Red hat Black LUVBUDS
|
BLKLF-BR
|
Black Hat Green Leaf-Black Rim
|
BLKLF-GR
|
Black Hat Green Leaf - Green Rim
|
NWCHM
|
Necklace with Charm (various)
|
SOCK-PL
|
Huf Pot Leaf Socks (Various Colors)
|
#11242
|
Gold/Silver Temporary Tattoos
|
#00603
|
Tribal Tattoo (Black)
|
#03406
|
Harley Sleeve Tattoo (removable)
|
C2208R-S
|
Red T / White LUVBUDS -S
|
C2208R-M
|
Red T/ White LUVBUDS -M
|
C2208R-L
|
Red T / White LUVBUDS- L
|
C2208R-XL
|
Red T / White LUVBUDS- XL
|
C2208R-XXL
|
Red T / White LUVBUDS- XXL
|
C2208W-S
|
White T/ Red LUVBUDS- S
|
C2208W-M
|
White T/ Red LUVBUDS- M
|
C2208W-L
|
White T/ Red LUVBUDS- L
|
C2208W-XL
|
White T/ Red LUVBUDS- XL
|
C2208W-XXL
|
White T/ Red LUVBUDS -XXL
|
C22229-S
|
Smile High City - S
|
C22229-M
|
Smile High City -M
|
C22229-L
|
Smile High City -L
|
C22229-XL
|
Smile High City -XL
|
C22229-XXL
|
Smile High City -XXL
|
DC0854-S
|
I*CO T- S
|
DC0854-M
|
I*CO T- M
|
DC0854-L
|
I*CO T- L
|
DC0854-XL
|
I*CO T -XL
|
DC0854-XXL
|
I*CO T -XXL
|
DC0867-S
|
Pot Leaf Denver T- S
|
DC0867-M
|
Pot Leaf Denver T -M
|
DC0867-L
|
Pot Leaf Denver T- L
|
DC0867-XL
|
Pot Leaf Denver T- XL
|
DC0867-XXL
|
Pot Leaf Denver T -XXL
|
DC0997-S
|
Herb Patrol (Long Sleeve) T- S
|
DC0997-M
|
Herb Patrol (Long Sleeve) T -M
|
DC0997-L
|
Herb Patrol (Long Sleeve) T- L
|
DC0997-XL
|
Herb Patrol (Long Sleeve) T -XL
|
DC0997-XXL
|
Herb Patrol (Long Sleeve) T- XXL
|
H0152-S
|
Rcky Mtn High T- S
|
H0152-M
|
Rcky Mtn High T -M
|
H0152-L
|
Rcky Mtn High T- L
|
H0152-XL
|
Rcky Mtn High T- XL
|
H0152-XXL
|
Rcky Mtn High T -XXL
|
H0198-S
|
Got Bud? T -S
|
H0198-M
|
Got Bud? T- M
|
H0198-L
|
Got Bud? T- L
|
H0198-XL
|
Got Bud? T -XL
|
H0198-XXL
|
Got Bud? T- XXL
|
LR1090-S
|
Royal Cyclone T- S
|
LR1090-M
|
Royal Cyclone T- M
|
LR1090-L
|
Royal Cyclone T- L
|
LR1090-XL
|
Royal Cyclone T- XL
|
LR1090-XXL
|
Royal Cyclone T- XXL
|
LR1091-S
|
Bullseye T -S
|
LR1091-M
|
Bullseye T -M
|
LR1091-L
|
Bullseye T- L
|
LR1091-XL
|
Bullseye T- XL
|
LR1091-XXL
|
Bullseye T- XXL
|
6900 LEAF
|
Leaf Magic Top N' Shorts
|
L410
|
Cyclone Cinch Sack Tie Dye
|
BNG-MC6
|
6" multi color bong (various sizes, colors and shapes)
|
BNG-MC8
|
8" multi color bong (various sizes, colors and shapes)
|
BNG-MC12
|
12" multi color bong (various sizes, colors and shapes)
|
BUTN
|
Refillable butane containers
|
CH-BUBB
|
Cherry Bubblers
|
MN-BUBB
|
Assorted Mini Bubblers
|
MT-PKBD4
|
Pocket Beast 4" Ball Dabber (Titanium)
|
MT-PKPD4
|
Pocket Beast 4" Pic Dabber (Titanium)
|
MT-PKSD4
|
Pocket Beast 4" Shovel Dabber (Titanium)
|
MT-MBD6
|
Midi 6" Ball Dabber (Titanium)
|
MT-MPD6
|
Midi 6" Pic Dabber (Titanium)
|
MT-MSD6
|
Midi 6" Shovel Dabber (Titanium)
|
MT-DCP7
|
Dabber (Titanium) with 7" Roach Clip
|
MT-RCDIS
|
Roach Clip Display Stand
|
MT-DBDIS
|
Dabber (Titanium) Display Stand
|
WDDG3
|
Wood Dugout for 3" one hitter
|
52MMG
|
52mm Grinder - 3 pc Stainless Steel
|
57MMG
|
57mm Grinder - 3 pc Stainless Steel
|
63MMG
|
63mm Grinder - 3 pc Stainless Steel
|
BC-G
|
Bottle Cap 2 pc. Grinders (various colors)
|
M0222
|
Large Torch
|
ST-61319
|
Large Torch
|
LT-BRONCO
|
Bronco Lighters
|
J9400
|
torch lighter (18)
|
J9411-S
|
torch lighter (12)
|
J9412
|
torch lighter (12)
|
J9399
|
torch lighter (12)
|
J9411-D
|
torch lighter (12)
|
61312
|
Mid Sized Torch
|
PAP-RAST
|
Rasta Rolling Papers
|
EXPR-3
|
Executive Branch Pre Rolled cones (3 per pack)
|
PIPE1
|
Small 2-4" Pipe (assorted styles and colors)
|
1HIT
|
3" Cigarette Style one Hitter
|
PIPE-KTTY
|
Hello Kitty Pipe
|
PIPE4
|
4" Assorted glass pipe (various colors/styles)
|
PIPE-ELE
|
Elephant Pipe (assorted colors)
|
ZX251E
|
3" Metal Pipe with Bowl Cover (various colors)
|
MT-BST9
|
Classic 9" Beast Roach Clip
|
MT-PBST3
|
Classic 3" Pocket Beast Roach Clip
|
MT-MBST4
|
Classic 4" Mid Sized Beast Roach Clip
|
MT-MG3
|
Magna 3" w/magnets Roach Clip
|
MT-NBST7
|
Classic 7" Neo-Beast Roach Clip
|
MT-MSK9
|
Mosh Skull 9" Roach Clip
|
MT-SMSK11
|
Smiley Skull 11" Roach Clip
|
MT-MOP10
|
Mother of Pearl 10" Roach Clip
|
MT-BW10
|
Black Widow 10" Roach Clip (luminous beads)
|
MT-TT10
|
Twisted Twine 10" Roach Clip
|
MT-ETCH10
|
Etchy 10" Roach Clip
|
MT-TST10
|
Toasted 10" Roach Clip
|
MT-TWST10
|
Twisted 10" Roach Clip
|
MT-FRG9
|
Frog on Log 9" Roach Clip (Red, Green,Purple handles)
|
MT-FRG11
|
Frog on Log 11" Roach Clip (dragon wand)
|
SCLG
|
Large Scale
|
SCSM
|
Small Scale
|
H8601-LB
|
Heart Handled Mug, LUVBUDS and Heart
|
50620-06
|
Pot Shape Ash Tray
|
#17053
|
Pot syle Ash Tray (varous styles)
|
DF/200/CO-MJ
|
Colorado Flag with Pot Leaf 3' x 5'
|
DF211/MJ
|
US Flag with Leaves as Stars 3' x 5'
|
DF597
|
Blunt Flag 3' x 5'
|
DF598
|
Come and Toke it 3' x 5'
|
LBPIG
|
LUVBUD PIG "pennies for my puff"
|
5139-MK8
|
Medik8 16 oz. Pint Glass
|
5139-ICO
|
I*CO 16 oz. Pint Glass
|
5139-RHGL
|
Red Heart Grn Leaf 16 oz. Pint Glass
|
5139-COHRT
|
Co Heart 16 oz. Pint Glass
|
5120-RH
|
Red Heart 1.5 oz. Shot Glass
|
5120-BH
|
Black Heart 1.5 oz. Shot Glass
|
5120E-SC
|
Black 1.5 oz. Shot Glass - Smoking Colorado
|
1650-MK8
|
Medik8 2 oz. Cordial Shooter
|
1650-RLB
|
Red Luvbud 2 oz. Cordial Shooter
|
1650-BLB
|
Black Luvbud 2 oz. Cordial Shooter
|
50387-05
|
Smoking Colorado black 1.5 oz. Shot Glass
|
MTL-PL
|
Metal Pot Leaf sign 2' x 2'
|
MTL-WD
|
Metal WEED sign 28" x 12"
|
MTL-KC
|
Metal Keep Calm sign 25" x 17"
|
2043-MK8
|
Medik8 8 oz. Stash Jar with Lid
|
2043-OBLB
|
Orange/Blue Luvbuds 8 oz. Stash Jar with Lid
|
2043-MLB
|
My Luvbud 8 oz. Stash Jar with Lid
|
2043-ICO
|
i*CO 8 oz. Stash Jar with Lid
|
SJ-OTHER
|
Various Stash Jars
|
GB20-BLB
|
Black Luvbud Water Bottle
|
GB20-WLB
|
White Luvbud Water Bottle
|
50089-01
|
Colorado License plate Mint Tin
|
50089-05
|
Colorado Tye Die Mint Tin
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TGTFLOOR
|
Sticker/Magnet floor display (large)
|
TGTCOUNTER
|
Sticker only counter top display (MEDIUM) 4 side
|
TGTCOUNTER
|
Sticker only counter top display (MEDIUM) 2 side
|
CLEYES-6
|
Clear Eyes (6 Ml)
|
N100CO_SSPLF
|
Skeleton head flexi magnet
|
N100CO_PLF
|
Pot leaf/CO flag flexi magnet
|
N211CO_LEAF
|
"Welcome to Colorado" Flexi Magnet
|
N256CO_PLF
|
Blue and White CO Flag Flexi Magnet
|
INCS1
|
Incense Single wrapped
|
INCSPCK
|
incense pack (10 per pack)
|
50272-08
|
Medicated "Colorado" lip balm
|
M01_420
|
"420" Black on White Oval Magnet
|
M01_THC
|
"THC" Black on white oval magnet
|
M02CO_LI
|
Colorado Legalized it magnet
|
M165CO_PLF
|
I (leaf) CO magnet
|
M193_SSPLF
|
Skeleton head magnet
|
M211CO_LEAF
|
Welcome to Colorado (leaf) green magnet
|
M224CO_LEAF
|
Colorado Enter a Higher State rasta magnet
|
M250_420
|
Tie Dye 420 oval magnet
|
M256CO_PLF
|
CO flag blue/white magnet
|
M256CO_RASTA
|
CO flag green/yellow magnet
|
M258_SINAC
|
Smoking is not a crime magnet
|
M258_SMOKE
|
Keep Calm and Smoke on Colorado magnet
|
M258_STAY
|
Keep Calm and Stay High Colorado magnet
|
420-OD
|
420 Odor Spray
|
W02CO_LI
|
Colorado Legalized it sticker
|
X01_420
|
420 black on white oval sticker
|
X01-THC
|
THC black on white oval sticker
|
X02Z_420/419
|
420/419 black on white oval stickers (2)
|
X03CCO_NKD_SMOKE
|
Smoke Naked sticker
|
X13_GTHC
|
Got thc? Sticker
|
X13_LNTUS
|
Leave no turn unstoned sticker
|
X13_WFSP
|
Work Free Smoke Place sticker
|
X13COMJ_LOVE
|
I heart Mary Jane sticker
|
X165CO_PLF
|
I (leaf) CO sticker
|
X188_GG
|
got grass? Sticker
|
X188_HHAY
|
High…How are you? Sticker
|
X188_HMH
|
Mountain High sticker
|
X188_KOTG
|
Keep on the Grass sticker
|
X188CO_LEAF
|
I (leaf) Colorado sticker
|
X188CO_ML
|
C(leaf)OLORADO sticker
|
X188CO_RSTFLG
|
C (leaf) Colorado sticker
|
X193_CAN
|
Cannabis (coke logo) sticker
|
X193_SSPLF
|
Skeleton head sticker
|
X193CO-ROOSTA
|
Colorado Roostafarian sticker
|
X211_GG
|
Go Green sticker
|
X211CO_LEAF
|
Welcome to Colorado (leaf) green sticker
|
X224CO_LEAF
|
Colorado Enter a Higher State rasta sticker
|
X250C0_420
|
Tie Dye 420 sticker
|
X256CO_PLF
|
Colorado flag pot leaf in blue/white sticker
|
X256CO_RASTA
|
Colorado flag pot leaf in green/yellow sticker
|
X258_SINAC
|
Smoking is not a crime sticker
|
X258CO_SMOKE
|
Keep Calm and Smoke on Colorado sticker
|
X258CO_STAY
|
Keep Calm and Stay High Colorado sticker
|
X259_420
|
Highway 420 sticker
|
X44_STONED
|
iStoned sticker
|
X79CO_RMH
|
Colorado Rocky Mountain High sticker
|
Y02CO_PLF
|
Colorado Flag Pot Leaf Sticker
|
YO2_PLF
|
Green Pot Leaf Sticker
|
Butcher Block Table
|
|
Label Makers
|
|
Photo Studio
|
|
Desk
|
|
Cash Box
|
|
Lacquer Signs
|
|
Show Sign
|
|
KIOSKS
|
|
GLASS SHELVES
|
|
HOOKS
|
HAT HOLDERS
|
|
BOWLS
|
|
WEBSITE
|
|
ORIGINAL CONTRACT DOCUMENTS, ETC.
|
|
VARIOUS SUPPLIES (MARKERS/INK/ETC)
|
|
Reader
|
|
Dolly and Hand Truck
|
Name
|
State of Organization
|
|
CannaSys, Inc.
|
Colorado
|
|
Dynamic Gift Cards, LLC
|
Colorado
|
|
Ceres Markets, LLC
|
Colorado
|
|
LuvBuds, LLC (70% interest)
|
Colorado
|
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Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2015 |
Nov. 12, 2015 |
|
Document and Entity Information | ||
Entity Registrant Name | CANNASYS INC | |
Document Type | S-1 | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 0001417028 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 11,576,045 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | FY | |
Entity Incorporation, Date of Incorporation | Aug. 25, 1999 | |
Trading Symbol | mjtk |
Balance Sheets (Parenthetical) (9/30/15) - $ / shares |
Sep. 30, 2015 |
Dec. 31, 2014 |
Nov. 12, 2014 |
Aug. 14, 2014 |
Dec. 31, 2013 |
---|---|---|---|---|---|
Statement of Financial Position | |||||
Common Stock, par or stated value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common Stock, shares authorized | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | |
Common Stock, shares issued | 11,298,405 | 11,043,755 | 3,960,000 | ||
Common Stock, shares outstanding | 11,298,405 | 11,043,755 | 4,398,088 | 3,960,000 | |
Preferred Stock, par or stated value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |
Preferred Stock, shares issued | 0 |
Statements of Operations (9/30/15) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Income Statement | ||||
Sales revenue | $ 48,156 | $ 1,627 | $ 76,404 | $ 1,627 |
Cost of goods sold | 6,800 | 1,832 | 10,018 | 8,874 |
Gross Margin | 41,356 | (205) | 66,386 | (7,247) |
Operating Expenses: | ||||
Professional fees | 58,847 | 61,314 | 155,827 | 61,314 |
Salary and wage expense | 335,297 | 1,098,398 | 572,151 | 1,148,747 |
General and administrative | 96,394 | 47,496 | 200,585 | 227,560 |
Total Operating Expenses | 490,538 | 1,207,208 | 928,563 | 1,437,621 |
Loss from Operations | (449,182) | (1,207,413) | (862,177) | (1,444,868) |
Other expense: | ||||
Interest expense | (1,410) | (2,088) | ||
Total other expense | (1,410) | (2,088) | ||
Loss before provision for income taxes | $ (450,592) | $ (1,207,413) | $ (864,265) | $ (1,444,868) |
Provision for income taxes | ||||
Net loss | $ (450,592) | $ (1,207,413) | $ (864,265) | $ (1,444,868) |
Basic and diluted loss per common share | $ (0.04) | $ (0.13) | $ (0.08) | $ (0.24) |
Weighted average number of common shares outstanding | 11,274,053 | 9,062,217 | 11,135,605 | 6,020,440 |
Balance Sheets (Parenthetical) (12/31/2014) - $ / shares |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|
Statement of Financial Position | ||
Common Stock, par or stated value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 11,043,755 | 3,960,000 |
Common Stock, shares outstanding | 11,043,755 | 3,960,000 |
Preferred Stock, par or stated value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | ||
Preferred Stock, shares outstanding |
Statements of Operations (12/31/2014) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2013 |
Dec. 31, 2014 |
|
Income Statement | ||
Sales revenue | $ 0 | $ 6,538 |
Cost of goods sold | 0 | 12,006 |
Gross Margin | 0 | (5,468) |
Operating Expenses: | ||
Stock compensation expense | 0 | 1,012,500 |
Professional fees | 0 | 130,642 |
Salary and wage expense | 0 | 274,057 |
General and administrative | 32,493 | 125,132 |
Research and development expense | 0 | 178,538 |
Total Operating Expenses | 32,493 | 1,720,869 |
Loss from Operations | (32,493) | (1,726,337) |
Net loss | $ (32,493) | $ (1,726,337) |
Basic and diluted loss per common share | $ (0.00) | $ (0.24) |
Weighted average number of common shares outstanding | 3,960,000 | 7,282,387 |
Note 1 - Organization and Description of Business |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Notes | ||
Note 1 - Organization and Description of Business | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Organization We were organized as a Nevada corporation on August 25, 1999. On August 15, 2014, we entered into an Agreement and Plan of Merger to combine our business and activities with CannaSys, Inc., a privately held Colorado corporation focused on providing services to the cannabis industry (CannaSys-Colorado), into a single entity (the Merger). CannaSys-Colorado was originally formed on October 4, 2013, as a limited liability company, and converted to a corporation on June 26, 2014. Under the terms of the merger agreement, our wholly owned subsidiary formed to effectuate the Merger was merged with and into CannaSys-Colorado, the surviving entity, which then became our wholly owned subsidiary. By operation of the Merger, which was effective August 15, 2014, all of the CannaSys-Colorado outstanding common stock was converted into a total of 6,000,000 shares of our common stock, which then constituted 57.70% of our total issued and outstanding common stock. Our shareholders prior to the Merger retained an aggregate of 4,398,088 shares of common stock; we had no outstanding options or warrants to purchase shares of common stock.
Due to the CannaSys-Colorado shareholders controlling us after the Merger, CannaSys-Colorado was considered the accounting acquirer. The transaction was therefore recognized as a reverse acquisition of us by CannaSys-Colorado. The accompanying condensed consolidated financial statements are those of CannaSys-Colorado for all periods prior to the Merger.
In connection with the closing of the Merger and after meeting the requirements of the Securities Exchange Act of 1934, as amended (Exchange Act), on November 12, 2014, we filed amended and restated articles of incorporation with the Nevada Secretary of State that: (i) changed our name to CannaSys, Inc.; (ii) increased our authorized capital stock to 80,000,000 shares, consisting of 75,000,000 shares of common stock and 5,000,000 shares of preferred stock; (iii) authorized 5,000,000 shares of preferred stock; and (iv) made other modernizing, nonmaterial changes to our articles of incorporation. Changing our corporate name to CannaSys, Inc. was a condition to the Merger transaction. The name change better reflects the nature of our principal business operations, and it became effective in the OTC Markets on December 2, 2014, when FINRA announced the name change. We have also received a new CUSIP number and our trading symbol was changed to MJTK.
Nature of Business We provide technology services in the ancillary space of the cannabis industry. We are a technology company, and we do not produce, sell, or handle in any manner cannabis products.
As the current cannabis industry grows and gains momentum around the country, technology needs for the industry have been largely underserved. Our focus on this niche element of the industry creates many efficient and profitable tools for both industry owners and consumers.
Our business consists of four products currently in the marketplaceBumpUp, CannaCash, CannaTrade, and CannaLIMSthat together serve the entire cannabis industry from grower-wholesaler to end-user.
BumpUp is a content resource management platform or customer retention software designed to allow cannabis industry operators the ability to automatically market and target customers in the regulated cannabis markets. The BumpUp technology allows for strong social media ties and an electronic messaging system for cannabis industry operators to effectively and efficiently communicate with the customers with the goal of customer retention. The program is designed to comply with regulatory requirements. The program allows for a mobile application that is geographically restricted to be available only in states that allow safe-access laws to cannabis.
CannaTrade is a market-style matching system designed to serve legal medical and recreational cannabis and hemp markets. CannaTrade and its sister product, ExchangeHemp, bring the industry a secure, efficient, real-time wholesale product supply exchange and inventory management solution for connecting licensed wholesale buyers and sellers of all types of cannabis and non-cannabis products, while providing business logic to enhance governmental and regulatory compliance frameworks.
CannaCash is an affiliate-based membership rewards loyalty program designed specifically for the cannabis industry. An early version of CannaCash was introduced to the market in July 2014. The CannaCash points program and future gift-card/prepaid-card programs will be free for all cannabis customers and affordable for dispensaries and providers. CannaCash gift cards will be available in multiple denominations and will be redeemable at participating CannaCash locations. The CannaCash gift mechanism will allow for strong social media ties and an electronic solution for providing gift cards and other products to friends and family. CannaCash includes an internal control mechanism designed to comply with the regulatory requirements applicable to individual retail outlets and customers based on applicable state licensing information and customers addresses. We plan to integrate our CannaCash solution with our BumpUp loyalty rewards solution for a complete end-to-end consumer experience.
CannaLIMS provides a specific Laboratory Information Management System to regulated testing laboratories in regulated cannabis states. This software-based laboratory and information management system is designed specific to the cannabis industry and laboratory testing. The software features workflow and data tracking support, flexible architecture, and laboratory specified reporting output. We have currently released this product to the marketplace and are aggressively marketing to cannabis labs in regulated markets. |
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Organization We were organized as a Nevada corporation on August 25, 1999. On August 15, 2014, we entered into an Agreement and Plan of Merger to combine our business and activities with CannaSys, Inc., a privately held Colorado corporation focused on providing services to the cannabis industry (CannaSys-Colorado), into a single entity (the Merger). CannaSys-Colorado was originally formed on October 4, 2013, as a limited liability company, and converted to a corporation on June 26, 2014. Under the terms of the merger agreement, our wholly owned subsidiary formed to effectuate the Merger was merged with and into CannaSys-Colorado, the surviving entity, which then became our wholly owned subsidiary. By operation of the Merger, which was effective August 15, 2014, all of the CannaSys-Colorado outstanding common stock was converted into a total of 6,000,000 shares of our common stock, which constitutes 57.70% of our total issued and outstanding common stock. Our shareholders prior to the merger retained an aggregate of 4,398,088 shares of common stock. We had no outstanding options or warrants to purchase shares of common stock.
Due to the CannaSys-Colorado shareholders controlling us after the Merger, CannaSys-Colorado was considered the accounting acquirer. The transaction was therefore recognized as a reverse acquisition of the company by CannaSys-Colorado. The accompanying condensed consolidated financial statements are those of CannaSys-Colorado for all periods prior to the Merger.
In connection with the closing of the Merger and after meeting the requirements of the Securities Exchange Act of 1934, as amended, on November 12, 2014, we filed amended and restated articles of incorporation with the Nevada Secretary of State that: (i) changed our name to CannaSys, Inc.; (ii) increased our authorized capital stock to 80,000,000 shares, consisting of 75,000,000 shares of common stock and 5,000,000 shares of preferred stock; (iii) authorized 5,000,000 shares of preferred stock; and (iv) made other modernizing, nonmaterial changes to our articles of incorporation. Changing the corporate name to CannaSys, Inc. was a condition to the Merger transaction. The name change better reflects the nature of our principal business operations and it became effective in the OTC market on December 2, 2015, when FINRA announced the name change. We have also received a new CUSIP number and our trading symbol was changed to MJTK.
Nature of Business We provide technology services in the ancillary space of the cannabis industry. We are a technology company and we do not produce, sell, or handle in any manner cannabis products.
As the current cannabis industry grows and gains momentum around the country, technology needs for the industry have been largely underserved. Our focus on this niche element of the industry creates many efficient and profitable tools for both industry owners and consumers.
Our business consists of three product conceptsCannaTrade, CannaCash, and CannAssistthat together serve the entire cannabis industry from grower-wholesaler to end-user.
CannaTrade is a market-style, wholesale cannabis matching system designed to serve legal medical and recreational cannabis markets. CannaTrade proposes to bring the industry a secure, efficient, real-time wholesale product supply exchange and inventory management solution for connecting licensed wholesale buyers and sellers of all types of cannabis and non-cannabis products, while providing business logic to enhance governmental and regulatory compliance frameworks.
CannaCash is an affiliate-based membership rewards loyalty program designed specifically for the cannabis industry. An early version of CannaCash was introduced to the market in July 2014. The CannaCash points program and future gift-card/prepaid-card programs will be free for all cannabis customers and affordable for dispensaries and providers. CannaCash gift cards will be available in multiple denominations and will be redeemable at participating CannaCash locations. The CannaCash gift mechanism will allow for strong social media ties and an electronic solution for providing gift cards and other products to friends and family. CannaCash includes an internal control mechanism designed to comply with the regulatory requirements applicable to individual retail outlets and customers based on applicable state licensing information and customers addresses.
CannAssist will fulfill the technology needs that are specific to the cannabis industry. With technicians licensed and approved by the state to operate in restricted areas, CannAssist will serve the needs of cannabis business to install, update, and maintain critical systems for dispensaries, growers, and processors of cannabis. From video surveillance installation and maintenance to network security and support, CannAssist serves a wide range of technology challenges unique to the industry. |
Note 2 - Summary of Significant Accounting Policies |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|||||
Notes | ||||||
Note 2 - Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These financial statements should be read in conjunction with the audited financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2014. The results of the nine months ended September 30, 2015, are not necessarily indicative of the results to be expected for the full year ending December 31, 2015.
Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented.
Principles of Consolidation The accompanying consolidated financial statements include the accounts and transactions of CannaSys-Colorado, the accounting acquirer, from the date of its inception on October 4, 2013, and refer to the consolidated entity after taking the Merger transaction into effect. All intercompany transactions have been eliminated in consolidation.
Use of Estimates The preparation of financial statements in accordance with U.S. GAAP permits management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. All intercompany transactions have been eliminated in consolidation.
Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash.
Cash and Cash Equivalents We consider all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. There were no cash equivalents as of September 30, 2015, and December 31, 2014.
Reclassifications Certain reclassifications have been made to the prior year financial information to conform to the presentation used in the financial statements for the three and nine months ended September 30, 2015.
Fair Value of Financial Instruments The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, and we do not use derivative instruments.
The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:
· Level 1: Quoted prices in active markets for identical assets or liabilities. · Level 2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability. · Level 3: Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Fixed Assets Fixed assets are carried at the lower of cost or net realizable value. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. Depreciation is computed using the straight-line method over the estimated useful life of the asset.
Depreciation is computed using the straight-line method over the following estimated useful lives:
Earnings (Loss) per Common Share Net income (loss) per common share is computed pursuant to ASC 260-10-45, Earnings per Share. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that we incorporated as of the beginning of the first period presented. As of September 30, 2015 and 2014, there were no potentially dilutive shares.
Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC 505-50, Equity-Based Payments to Non-Employees (ASC 505-50). ASC 505-50 establishes that equity-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The fair value of common stock issued for payments to nonemployees is measured at the market price on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option valuation model. In general, we recognize the fair value of the equity instruments issued as deferred stock compensation and amortize the cost over the term of the contract.
We account for employee stock-based compensation in accordance with the guidance of FASB ASC 718, CompensationStock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered.
Revenue Recognition We follow ASC 605-10-S99-1, Revenue Recognition, for revenue recognition. We will recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) the product has been shipped or the services have been rendered to the customer; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured.
Recently Issued Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern. Currently, there is no guidance in U.S. GAAP about managements responsibility to evaluate whether there is substantial doubt about an entitys ability to continue as a going concern or to provide related footnote disclosures. The amendments in this update provide that guidance. In doing so, the amendments are intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entitys ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments: (1) provide a definition of the term substantial doubt; (2) require an evaluation every reporting period including interim periods; (3) provide principles for considering the mitigating effect of managements plans; (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of managements plans; (5) require an express statement and other disclosures when substantial doubt is not alleviated; and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted.
We have reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, these pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations.
Income Taxes We follow ASC 740-10-30, Income Taxes-Initial Measurement, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of income in the period that includes the enactment date.
We adopted ASC 740-10-25, Accounting for Uncertainty in Income Taxes. ASC 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-25, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740-10-25 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits according to the provisions of ASC 740-10-25. |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. We have adopted a December 31 year end.
Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented.
Principles of Consolidation The accompanying consolidated financial statements include the accounts and transactions of CannaSys-Colorado, the accounting acquirer, from the date of its inception on October 4, 2013, and refer to the consolidated entity after taking the Merger transaction into effect. All intercompany transactions have been eliminated in consolidation.
Use of Estimates The preparation of financial statements in accordance with U.S. GAAP permits management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. All intercompany transactions have been eliminated in consolidation.
Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash.
Cash and Cash Equivalents We consider all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. There were no cash equivalents as of December 31, 2014 and 2013.
Fair Value of Financial Instruments The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, and we do not use derivative instruments.
The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:
Level 1:Quoted prices in active markets for identical assets or liabilities.
Level 2:Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
Level 3:Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
Fixed Assets Fixed assets are carried at the lower of cost or net realizable value. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. Depreciation is computed using the straight-line method over the estimated useful life of the asset.
Depreciation is computed using the straight-line method over the following estimated useful lives:
Equipment 3 years Furniture and fixtures 3 years
Earnings (Loss) per Common Share Net income (loss) per common share is computed pursuant to ASC 260-10-45. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that we incorporated as of the beginning of the first period presented.
Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50, Equity-Based Payments to Non-Employees (ASC 505-50). ASC 505-50 establishes that equity-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The fair value of common stock issued for payments to nonemployees is measured at the market price on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option valuation model. In general, we recognize the fair value of the equity instruments issued as deferred stock compensation and amortize the cost over the term of the contract.
We account for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, CompensationStock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered.
Revenue Recognition We follow paragraph ASC 605-10-S99-1 for revenue recognition. We will recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.
Recently Issued Accounting Pronouncements In January 2013, the FASB issued Accounting Standard Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, clarifying which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the FASB determined that it could make them more operable and cost-effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under International Financing Reporting Standards. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations.
In July 2013, the FASB issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The new guidance requires that unrecognized tax benefits be presented on a net basis with the deferred tax assets for such carryforwards. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2013. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations.
We have implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations.
Income Taxes We follow ASC 740-10-30, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Income and Comprehensive Income in the period that includes the enactment date.
We adopted ASC 740-10-25 (ASC 740-10-25) with regard to uncertainty income taxes. ASC 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-25, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740-10-25 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits according to the provisions of ASC 740-10-25. |
Note 3 - Going Concern |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Notes | ||
Note 3 - Going Concern | NOTE 3 GOING CONCERN
As reflected in the accompanying financial statements, we have an accumulated deficit of $2,623,095 at September 30, 2015, had a net loss of $864,265, and used cash in operating activities of $706,339. This raises substantial doubt about our ability to continue as a going concern.
While we are attempting to increase operations and revenues, our cash position may not be significant enough to support our daily operations. Management intends to raise additional funds by way of debt and equity financing. Management believes that the actions presently being taken to further implement our business plan and generate increased revenues provide the opportunity for us to continue as a going concern. While we believe in the viability of our strategy to generate increased revenues and in our ability to raise additional funds, there can be no assurances to that effect. Our ability to continue as a going concern is dependent upon our ability to further implement our business plan and generate increased revenues.
The consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. |
NOTE 3 GOING CONCERN
As reflected in the accompanying financial statements, we have an accumulated deficit of $1,758,830 at December 31, 2014, had a net loss of $1,726,337, and used net cash of $677,385 in operating activities for year ended December 31, 2014. This raises substantial doubt about our ability to continue as a going concern.
While we are attempting to increase operations and revenues, our cash position may not be significant enough to support our daily operations. Management intends to raise additional funds by way of debt and equity financing. Management believes that the actions presently being taken to further implement our business plan and generate increased revenues provide the opportunity for us to continue as a going concern. While we believe in the viability of our strategy to generate increased revenues and in our ability to raise additional funds, there can be no assurances to that effect. Our ability to continue as a going concern is dependent upon our ability to further implement our business plan and generate increased revenues.
The consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. |
Note 4 - Property and Equipment |
9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
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Sep. 30, 2015 |
Dec. 31, 2014 |
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Notes | ||||||||||||||||||||||||||
Note 4 - Property and Equipment | NOTE 4 PROPERTY AND EQUIPMENT
Furniture, fixtures, and equipment, stated at cost, less accumulated depreciation consisted of the following:
Depreciation Expense Depreciation expense for the nine months ended September 30, 2015 and 2014, was $2,103 and $0, respectively. |
NOTE 4 PROPERTY AND EQUIPMENT
Furniture, fixtures, and equipment, stated at cost, less accumulated depreciation at December 31, consisted of the following:
Depreciation expense Depreciation expense for the years ended December 31, 2014 and 2013, was $416 and $0, respectively. |
Note 5 - Software License |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Notes | ||
Note 5 - Software License | NOTE 5 SOFTWARE LICENSE
Effective February 12, 2015, we entered into an exclusive licensing agreement with Loyl.Me, an established provider of automated marketing and customer relationship management software. The licensing agreement allows us the opportunity for perpetual and exclusive rights and ability to provide the cannabis community a convenient, cost-effective, and streamlined technology that is widely used in the non-cannabis industry. The technology is being branded as CannaCash BumpUp. The term of the agreement is perpetual; therefore, no amortization is being recognized. However, the value of the license will undergo an annual impairment test as required by ASC 350, IntangiblesGoodwill and Other. The agreement requires nine installment payments of $25,000, each to be paid with a combination of cash and stock, and 8% of revenue from the use of the licensed technology. As of September 30, 2015, we had paid $205,000 in cash and stock towards the total cost of the license. |
NOTE 5 SOFTWARE LICENSE
Effective February 12, 2015, we entered into an exclusive licensing agreement with Loyl.Me, an established provider of automated marketing and customer relationship management software. The licensing agreement allows us the opportunity for perpetual and exclusive rights and ability to provide the cannabis community a convenient, cost-effective, and streamlined technology that is widely used in the non-cannabis industry. The technology is being branded as CannaCash BumpUp. The agreement requires six installment payments of $25,000 each. The first $25,000 was paid in October 2014 in conjunction with the signing of a letter of intent. |
Note 6 - Commitments and Contingencies |
9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
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Sep. 30, 2015 |
Dec. 31, 2014 |
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Notes | ||||||||||||||||||||||||||||||||
Note 6 - Commitments and Contingencies | NOTE 6 COMMITMENTS AND CONTINGENCIES
Operating Lease We currently occupy office space at 1720 S. Bellaire Street, Suite 325, Denver, CO. Our offices consist of approximately 1,786 rentable square feet. The lease term is 40 months and commenced on November 1, 2014.
Future minimum lease payments for the next four years are as follows:
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NOTE 6 COMMITMENTS AND CONTINGENCIES
Operating Lease
We currently occupy office space at 1720 S. Bellaire Street, Suite 325, Denver, CO. Our offices consist of approximately 1,786 rentable square feet. The lease term is 40 months and commenced on November 1, 2014.
Future minimum lease payments for the next four years is as follows:
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Note 7 - Notes Payable |
9 Months Ended |
---|---|
Sep. 30, 2015 | |
Notes | |
Note 7 - Notes Payable | NOTE 7 NOTES PAYABLE
During the nine months ended September 30, 2015, we executed unsecured promissory notes to two accredited investors for a total of $200,000 in a private placement of our securities. The notes accrue interest at 1% per annum and are due and payable on March 1, 2016. |
Related-party Transactions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Notes | ||
Related-party Transactions | NOTE 8 RELATED-PARTY TRANSACTIONS
As of December 31, 2014, we owed $1,320 for cash advances to the former president of Thermal Tennis. The advance was due on demand and non-interest-bearing. The advance was paid in the nine months ended September 30, 2015. |
NOTE 7 RELATED-PARTY TRANSACTIONS
During the year ended December 31, 2013, F-Squared Enterprises LLC contributed $7,488 for working capital. F-Squared Enterprises LLC is owned 100% by Brandon Jennewine, who serves as our president, chief executive officer, and a director. Daniel J. Rogers, who serves as our vice president, secretary/treasurer, chief financial officer, and a director contributed $2,500 for working capital.
During the year ended December 31, 2014, we received IT consulting services from Tribal Knowledge Health LLC (TK Health). TK Health is owned by Brandon Jennewine, who serves as our President, Chief Executive Officer, and a director. We paid TK Health a total of $22,512 in 2014 for its IT services. |
Stockholders' Equity (Deficit) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Notes | ||
Stockholders' Equity (Deficit) | NOTE 9 STOCKHOLDERS EQUITY (DEFICIT)
On February 9, 2015, we authorized the issuance of 25,000 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $2.00 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $50,000.
On April 10, 2015, we authorized the issuance of 5,612 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $1.47 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $8,250.
On July 10, 2015, we authorized the issuance of 24,038 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $1.04 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $25,000.
On July 10, 2015, we authorized the issuance of 1,250,000 shares of common stock to Michael Tew, our CEO. The shares are to vest and be delivered over 2.5 years beginning with 125,000 shares on July 10, 2015, followed by 125,000 shares on the first day of each subsequent quarter. Shares will be valued at the closing stock price on the day of issuance. The first 125,000 shares were valued at $1.04 per share for total noncash compensation expense of $130,000.
On July 10, 2015, we authorized the issuance of 500,000 shares of common stock to Brandon Jennewine, our CTO. The shares are to vest and be delivered over 2.5 years beginning with 50,000 shares on July 10, 2015, followed by 50,000 shares on the first day of each subsequent quarter. Shares will be valued at the closing stock price on the day of issuance. The first 50,000 shares were valued at $1.04 per share for total noncash compensation expense of $52,000.
On July 10, 2015, we authorized the issuance of 250,000 shares of common stock to a consultant. The shares are to vest and be delivered over 2.5 years beginning with 25,000 shares on July 10, 2015, followed by 25,000 shares on the first day of each subsequent quarter. Shares will be valued at the closing stock price on the day of issuance. The first 25,000 shares were valued at $1.04 per share for total noncash compensation expense of $26,000. |
NOTE 8 STOCKHOLDERS EQUITY (DEFICIT)
During the year ended December 31, 2013, we sold 3,960,000 shares of common stock for total cash proceeds of $109,988.
During the year ended December 31, 2014, we sold 2,040,000 shares of common stock to B44 LLC for total cash proceeds of $200,000.
During the third quarter, we issued 675,000 share of common stock for Compensation of $1,012,500.
During the third quarter, we issued 1,000,000 shares of common stock for total cash proceeds of $500,000.
During the fourth quarter, we issued 645,667 shares of common stock for total cash proceeds of $387,400.
In connection with the Merger consummated on or about August 15, 2014, we issued a total of 6,000,000 unregistered shares of common stock to a total of 17 persons in exchange for 100% of the issued and outstanding shares of CannaSys-Colorado. Our shareholders prior to the merger retained an aggregate of 2,723,088 shares of common stock, eliminating 1,601,912 shares in consolidation. The Merger was consummated in order to raise capital for the Company to allow it to deliver its products to market |
Note 10 - Subsequent Events |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Notes | ||
Note 10 - Subsequent Events | NOTE 10 SUBSEQUENT EVENTS
In accordance with FASB ASC 855-10, Subsequent Events we have analyzed our operations subsequent to September 30, 2015, and have determined that we do not have any material subsequent events to disclose in these financial other than the following.
On October 1, 2015, we authorized the issuance of 200,000 shares of common stock for compensation expense. The shares were valued at $0.29 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $58,000.
On October 10, 2015, we authorized the issuance of 77,640 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $0.322 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $25,000.
On October 14, 2015, we entered into a Securities Purchase Agreement with EMA Financial, LLC, a Delaware limited liability company (EMA), and executed a 10% Convertible Note in favor of EMA in the principal amount of $28,000. |
NOTE 10 SUBSEQUENT EVENTS
Effective February 12, 2015, we entered into an exclusive licensing agreement with Loyl.Me, an established provider of automated marketing and customer relationship management software. The licensing agreement allows us the opportunity for perpetual and exclusive rights and ability to provide the cannabis community a convenient, cost-effective, and streamlined technology that is widely used in the non-cannabis industry. The agreement requires six installment payments of $25,000 and the issuance of common stock and 8% of revenue from the use of the licensed technology.
On February 9, 2015, we authorized the issuance of 25,000 shares of common stock per the terms of the licensing agreement with Loyl.Me. |
Note 9 - Income Tax |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||||||||||||||||||||
Note 9 - Income Tax | NOTE 9 INCOME TAX
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Net deferred tax assets consist of the following components as of December 31:
The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the period ended December 31, due to the following:
At December 31, 2014, we had net operating loss carryforwards of approximately $484,000 that may be offset against future taxable income through the year 2033. No tax benefit has been reported in the December 31, 2014, financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.
Previous to June 26, 2014, the Company was a Limited Liability Company treated as a pass through entity.
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. |
Note 2 - Summary of Significant Accounting Policies: Basis of Presentation (Policies) |
9 Months Ended | 12 Months Ended |
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Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These financial statements should be read in conjunction with the audited financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2014. The results of the nine months ended September 30, 2015, are not necessarily indicative of the results to be expected for the full year ending December 31, 2015.
Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented. |
Basis of Presentation Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. We have adopted a December 31 year end. |
Note 2 - Summary of Significant Accounting Policies: Principles of Consolidation (Policies) |
9 Months Ended | 12 Months Ended |
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Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts and transactions of CannaSys-Colorado, the accounting acquirer, from the date of its inception on October 4, 2013, and refer to the consolidated entity after taking the Merger transaction into effect. All intercompany transactions have been eliminated in consolidation. |
Principles of Consolidation The accompanying consolidated financial statements include the accounts and transactions of CannaSys-Colorado, the accounting acquirer, from the date of its inception on October 4, 2013, and refer to the consolidated entity after taking the Merger transaction into effect. All intercompany transactions have been eliminated in consolidation. |
Note 2 - Summary of Significant Accounting Policies: Use of Estimates (Policies) |
9 Months Ended | 12 Months Ended |
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Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP permits management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. All intercompany transactions have been eliminated in consolidation. |
Use of Estimates The preparation of financial statements in accordance with U.S. GAAP permits management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. All intercompany transactions have been eliminated in consolidation. |
Note 2 - Summary of Significant Accounting Policies: Concentrations of Credit Risk (Policies) |
9 Months Ended | 12 Months Ended |
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Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Concentrations of Credit Risk | Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash. |
Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash. |
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) |
9 Months Ended | 12 Months Ended |
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Sep. 30, 2015 |
Dec. 31, 2014 |
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Policies | ||
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. There were no cash equivalents as of September 30, 2015, and December 31, 2014. |
Cash and Cash Equivalents We consider all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. There were no cash equivalents as of December 31, 2014 and 2013. |
Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2015 | |
Policies | |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior year financial information to conform to the presentation used in the financial statements for the three and nine months ended September 30, 2015. |
Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, and we do not use derivative instruments.
The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:
· Level 1: Quoted prices in active markets for identical assets or liabilities. · Level 2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability. · Level 3: Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Fair Value of Financial Instruments The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, and we do not use derivative instruments.
The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:
Level 1:Quoted prices in active markets for identical assets or liabilities.
Level 2:Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
Level 3:Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Note 2 - Summary of Significant Accounting Policies: Fixed Assets (Policies) |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|||||
Policies | ||||||
Fixed Assets | Fixed Assets Fixed assets are carried at the lower of cost or net realizable value. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. Depreciation is computed using the straight-line method over the estimated useful life of the asset.
Depreciation is computed using the straight-line method over the following estimated useful lives:
|
Fixed Assets Fixed assets are carried at the lower of cost or net realizable value. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. Depreciation is computed using the straight-line method over the estimated useful life of the asset.
Depreciation is computed using the straight-line method over the following estimated useful lives:
Equipment 3 years Furniture and fixtures 3 years
|
Note 2 - Summary of Significant Accounting Policies: Earnings (loss) Per Common Share (Policies) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Earnings (loss) Per Common Share | Earnings (Loss) per Common Share Net income (loss) per common share is computed pursuant to ASC 260-10-45, Earnings per Share. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that we incorporated as of the beginning of the first period presented. As of September 30, 2015 and 2014, there were no potentially dilutive shares. |
Earnings (Loss) per Common Share Net income (loss) per common share is computed pursuant to ASC 260-10-45. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that we incorporated as of the beginning of the first period presented. |
Note 2 - Summary of Significant Accounting Policies: Stock-based Compensation (Policies) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Stock-based Compensation | Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC 505-50, Equity-Based Payments to Non-Employees (ASC 505-50). ASC 505-50 establishes that equity-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The fair value of common stock issued for payments to nonemployees is measured at the market price on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option valuation model. In general, we recognize the fair value of the equity instruments issued as deferred stock compensation and amortize the cost over the term of the contract.
We account for employee stock-based compensation in accordance with the guidance of FASB ASC 718, CompensationStock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. |
Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50, Equity-Based Payments to Non-Employees (ASC 505-50). ASC 505-50 establishes that equity-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The fair value of common stock issued for payments to nonemployees is measured at the market price on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option valuation model. In general, we recognize the fair value of the equity instruments issued as deferred stock compensation and amortize the cost over the term of the contract.
We account for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, CompensationStock Compensation, which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered. |
Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Revenue Recognition | Revenue Recognition We follow ASC 605-10-S99-1, Revenue Recognition, for revenue recognition. We will recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) the product has been shipped or the services have been rendered to the customer; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. |
Revenue Recognition We follow paragraph ASC 605-10-S99-1 for revenue recognition. We will recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. |
Note 2 - Summary of Significant Accounting Policies: Recently Issued Accounting Pronouncements (Policies) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern. Currently, there is no guidance in U.S. GAAP about managements responsibility to evaluate whether there is substantial doubt about an entitys ability to continue as a going concern or to provide related footnote disclosures. The amendments in this update provide that guidance. In doing so, the amendments are intended to reduce diversity in the timing and content of footnote disclosures. The amendments require management to assess an entitys ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments: (1) provide a definition of the term substantial doubt; (2) require an evaluation every reporting period including interim periods; (3) provide principles for considering the mitigating effect of managements plans; (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of managements plans; (5) require an express statement and other disclosures when substantial doubt is not alleviated; and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted.
We have reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, these pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations. |
Recently Issued Accounting Pronouncements In January 2013, the FASB issued Accounting Standard Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, clarifying which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the FASB determined that it could make them more operable and cost-effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under International Financing Reporting Standards. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations.
In July 2013, the FASB issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The new guidance requires that unrecognized tax benefits be presented on a net basis with the deferred tax assets for such carryforwards. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2013. We do not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations.
We have implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations. |
Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Policies | ||
Income Taxes | Income Taxes We follow ASC 740-10-30, Income Taxes-Initial Measurement, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of income in the period that includes the enactment date.
We adopted ASC 740-10-25, Accounting for Uncertainty in Income Taxes. ASC 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-25, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740-10-25 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits according to the provisions of ASC 740-10-25. |
Income Taxes We follow ASC 740-10-30, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Income and Comprehensive Income in the period that includes the enactment date.
We adopted ASC 740-10-25 (ASC 740-10-25) with regard to uncertainty income taxes. ASC 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-25, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740-10-25 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits according to the provisions of ASC 740-10-25. |
Note 4 - Property and Equipment: Furniture, Fixtures, and Equipment at cost (Tables) |
9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||
Furniture, Fixtures, and Equipment at cost | Furniture, fixtures, and equipment, stated at cost, less accumulated depreciation consisted of the following:
|
|
Note 6 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) |
9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|||||||||||||||||||||||||||||||
Tables/Schedules | ||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments for the next four years are as follows:
|
Future minimum lease payments for the next four years is as follows:
|
Note 9 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2014 | |||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets consist of the following components as of December 31:
|
Note 9 - Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Tables) |
12 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2014 | |||||||||||||||||||||||||
Tables/Schedules | |||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the period ended December 31, due to the following:
|
Note 1 - Organization and Description of Business (Details) - shares |
1 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Aug. 31, 2014 |
Sep. 30, 2015 |
Dec. 31, 2014 |
Nov. 12, 2014 |
Aug. 14, 2014 |
Dec. 31, 2013 |
|
Entity Incorporation, Date of Incorporation | Aug. 25, 1999 | |||||
Common Stock, shares outstanding | 11,298,405 | 11,043,755 | 4,398,088 | 3,960,000 | ||
Warrants, Outstanding | 0 | |||||
Authorized Capital Stock | 80,000,000 | |||||
Common Stock, shares authorized | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | ||
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | ||
Options, Outstanding | 0 | |||||
Trading Symbol | mjtk | |||||
Subsequent Event | ||||||
Common Stock, shares authorized | 75,000,000 | |||||
Preferred Stock, shares authorized | 5,000,000 | |||||
Common Stock | ||||||
CannaSys outstanding common stock converted upon merger | 6,000,000 | 6,000,000 | ||||
CannaSys outstanding common stock, percent of shares acquired upon merger | 57.70% |
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) |
Sep. 30, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Details | |||
Cash Equivalents, at Carrying Value | $ 0 | $ 0 | $ 0 |
Note 2 - Summary of Significant Accounting Policies: Fixed Assets (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Equipment | ||
Estimated Useful Life | 3 years | 3 years |
Furniture and Fixtures | ||
Estimated Useful Life | 3 years | 3 years |
Note 3 - Going Concern (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Dec. 31, 2014 |
|
Details | ||||||
Accumulated deficit | $ (2,623,095) | $ (32,493) | $ (2,623,095) | $ (1,758,830) | ||
Net loss | $ (450,592) | $ (1,207,413) | (32,493) | (864,265) | $ (1,444,868) | (1,726,337) |
Net cash used in operating activities | (21,599) | $ (706,339) | $ (388,560) | (677,385) | ||
Net loss for the year | $ (32,493) | $ (1,726,337) |
Note 4 - Property and Equipment: Furniture, Fixtures, and Equipment at cost (Details) - USD ($) |
Sep. 30, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Details | |||
Furniture, fixtures, and equipment | $ 8,403 | $ 8,403 | $ 0 |
Less: accumulated depreciation | (2,519) | (416) | 0 |
Fixed assets, net | $ 5,884 | $ 7,987 | $ 0 |
Note 4 - Property and Equipment (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Dec. 31, 2014 |
|
Details | ||||
Depreciation Expense | $ 0 | $ 2,103 | $ 0 | $ 416 |
Note 5 - Software License (Details) - USD ($) |
9 Months Ended | 12 Months Ended | 21 Months Ended |
---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
|
Payments to Acquire Technology | $ 25,000 | ||
Loyl.Me | |||
License agreement payment terms | The agreement requires nine installment payments of $25,000, each to be paid with a combination of cash and stock, and 8% of revenue from the use of the licensed technology | ||
Payments to Acquire Technology | $ 205,000 |
Note 6 - Commitments and Contingencies (Details) - ft² |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Details | ||
Square Footage of Office Space | 1,786 | 1,786 |
Lease Term | 40 years | 40 months |
Note 6 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) |
Sep. 30, 2015 |
Dec. 31, 2014 |
---|---|---|
Details | ||
2015 | $ 28,278 | $ 28,278 |
2016 | 35,423 | 35,423 |
2017 | 37,208 | 37,208 |
2018 | 6,251 | 6,251 |
Total | $ 107,160 | $ 107,160 |
Note 7 - Notes Payable (Details) - Investor |
9 Months Ended |
---|---|
Sep. 30, 2015
USD ($)
| |
Debt Instrument, Face Amount | $ 200,000 |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% |
Debt Instrument, Maturity Date | Mar. 01, 2016 |
Related-party Transactions (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Dec. 31, 2014 |
|
Due to a related party | $ 1,320 | |||||
Equity Contribution for Working Capital | $ 9,988 | 0 | ||||
Professional fees | $ 58,847 | $ 61,314 | 0 | $ 155,827 | $ 61,314 | 130,642 |
Chief Executive Officer | ||||||
Equity Contribution for Working Capital | 2,500 | |||||
F Squared Enterprises LLC | ||||||
Equity Contribution for Working Capital | $ 7,488 | |||||
F Squared Enterprises LLC | Chief Executive Officer | ||||||
Ownership percent of entity, unrelated to company | 100.00% | |||||
Tribal Knowledge Health LLC | ||||||
Professional fees | $ 22,512 |
Note 9 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|
Deferred Tax Assets: | ||
NOL Carryover | $ 188,900 | $ 0 |
Related-party accrual | 500 | 0 |
Depreciation | 1,500 | 0 |
Deferred Tax Liabilities: | ||
Less valuation allowance | (190,900) | 0 |
Net deferred tax assets | $ 0 | $ 0 |
Note 9 - Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
Dec. 31, 2013 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Dec. 31, 2014 |
|
Details | ||||||
Book Income (loss) | $ 0 | $ (583,800) | ||||
Meals and Entertainment | 0 | 1,000 | ||||
Depreciation | 0 | (1,500) | ||||
Other Nondeductible Expense | 0 | 394,900 | ||||
Related party accruals | 0 | 500 | ||||
Valuation allowance | 0 | 188,900 | ||||
Income Tax Expense (Benefit), Total | $ 0 | $ 0 |
Note 9 - Income Tax (Details) |
12 Months Ended |
---|---|
Dec. 31, 2014
USD ($)
| |
Details | |
Net Operating Loss Carryforwards | $ 484,000 |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2033 |
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