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DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
12 Months Ended
Dec. 31, 2021
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION  
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

NOTE 1DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

 

Corporate History

 

1606 Corp. (“1606” or the “Company”) was formed in February 2021 and was a division of SinglePoint Inc. (“SinglePoint”) until April 2021, when SinglePoint spun off 1606 whereby each holder of common stock and Class A Preferred Stock of SinglePoint received one share of unregistered and restricted common stock and Class A Preferred Stock of the Company for each such shared owned of SinglePoint.

 

Business

 

1606 is an early-stage sales marketing company focused on the domestic hemp cigarette (aka pre-roll) market. The Company currently sells hemp products through individual online sales and used to distribute hemp products to distributors, convenience stores, and smoke shops in multiple states. For the year ended December 31, 2021, revenues of $32,504 and $0, were derived from online sales and distributors, respectively. For the year ended December 31, 2020, revenues of $62,934 and $4,973, were derived from online sales and distributors, respectively. The Company’s 1606 Original brand launched in December 2019, with its pre-roll cigarette sales beginning in January 2021.

 

Going Concern

 

The financial statements have been prepared assuming that the Company will continue as a going concern. As of December 31, 2021, the Company has yet to achieve significant profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company’s ability to continue in existence is dependent on the Company’s ability to develop the Company’s business and to achieve profitable operations. Since the Company does not anticipate achieving profitable operations and/or adequate cash flows in the near term, management will continue to pursue additional equity financing through private placements of the Company’s common stock.