Shareholders’ Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Shareholders’ Equity

Note 14. Shareholders’ Equity

Preferred Stock

American Cannabis Company, Inc. is authorized to issue 5,000,000 shares of preferred stock at $0.01 par value. No shares of preferred stock were issued and outstanding at September 30, 2022 and December 31, 2021, respectively.

Common Stock

During the nine months ended September 30, 2022, the Company issued 1,000,000 restricted shares of common stock valued at $65,000 to a third party for consulting services over the next 12 months. The Company has recognized $13,542 in consulting expense during the nine months ended September 30, 2022.

During the nine months ended September 30, 2022 , the Company issued 325,000 restricted shares valued at $46,207 granted during the fiscal year ended December 31, 2021.

During the nine months ended September 30, 2022 the Company issued 2,500,000 registered shares of common stock in exchange for net proceeds of $117,628 pursuant to the Common Stock Purchase Agreement entered into on October 11, 2019 with White Lion Capital LLC.

Subscription Receivable

On March 28, 2022, the Company issued 500,000 registered shares of its common stock in exchange for net proceeds of $25,165 pursuant to the Common Stock Purchase Agreement entered into on October 11, 2019 with White Lion Capital LLC. At March 31, 2022, the Company had not received the funds and as such recognized a subscription receivable in connection with the funds owed. The funds were paid to the Company on April 9, 2022.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the reporting period. Diluted net loss per share is computed similarly to basic loss per share, except that it includes the potential dilution that could occur if dilutive securities are exercised.

Outstanding stock options and common stock warrants are considered anti-dilutive because we are in a net loss position. Accordingly, the number of weighted average shares outstanding for basic and fully diluted net loss per share are the same. At September 30, 2022, the Company did not have any warrants or options issued and outstanding.