Target Group Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Target Group Inc. has filed its 2023 10-K report, detailing financial data and corporate structure changes.</b>

AI Summary

Target Group Inc. (CBDY) filed a Annual Report (10-K) with the SEC on March 20, 2024. Target Group Inc. (formerly Chess Supersite Corp and River Run Acquisition Corp) filed its 10-K report for the fiscal year ending December 31, 2023. The company is classified under SIC code 2833: MEDICINAL CHEMICALS & BOTANICAL PRODUCTS. The filing includes financial data for the fiscal years ending December 31, 2023, 2022, and 2021. Key financial statement components such as Retained Earnings, Additional Paid In Capital, and Accumulated Other Comprehensive Income are detailed for these years. Information regarding Preferred Stock, Common Stock, Shares To Be Issued, and Warrants is provided as of December 31, 2023, and other quarterly dates in 2023 and 2022.

Why It Matters

For investors and stakeholders tracking Target Group Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Target Group Inc.'s financial performance and position for the fiscal year 2023, which is crucial for investors to assess the company's health and future prospects. The detailed breakdown of equity components and warrant information is essential for understanding the company's capital structure and potential dilution.

Risk Assessment

Risk Level: medium — Target Group Inc. shows moderate risk based on this filing. The company has undergone name changes, indicating potential restructuring or strategic shifts that warrant further investigation into its operational history and stability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Target Group Inc.'s current financial health and strategic direction.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-20 — Filing Date (As of date)
• 2014-05-13 — Date of Name Change (Former company name change)
• 2013-09-11 — Date of Name Change (Former company name change)

Key Players & Entities

• Target Group Inc. (company) — Filer name
• Chess Supersite Corp (company) — Former company name
• River Run Acquisition Corp (company) — Former company name
• 2833 (other) — Standard Industrial Classification
• DE (other) — State of incorporation
• VAUGHAN (other) — Business address city
• L4K-4G9 (other) — Business address zip
• VisavaIncMember (company) — Related party member

FAQ

Industry Context

The company operates within the Medicinal Chemicals & Botanical Products industry, as indicated by its SIC code.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information.

What Investors Should Do

1. Review the detailed financial statements for fiscal years 2023, 2022, and 2021.
2. Analyze the equity structure, including common stock, preferred stock, and warrants.
3. Examine any disclosed risk factors and management's discussion and analysis.

Year-Over-Year Comparison

This is the initial 10-K filing for Target Group Inc. under its current name and structure, following previous name changes.

Key Financial Figures

• $0.0001 — ) of the Act: Common Stock, Par Value $0.0001 Indicate by check mark if the registr
• $4.9 billion — anadian adult-use market ranged from CDN$4.9 billion to CDN$8.7 billion annually. In the 201
• $8.7 billion — arket ranged from CDN$4.9 billion to CDN$8.7 billion annually. In the 2018 publication by De
• $1.8 billion — adult-use market in 2019 ranged from CDN$1.8 billion to CDN$4.3 billion. The Canadian medica
• $4.3 billion — 2019 ranged from CDN$1.8 billion to CDN$4.3 billion. The Canadian medical cannabis industry
• $1.3 billion — Canadian cannabis market will reach CDN$1.3 billion in annual value by 2024. The Company i
• $0.10 — 's Common Stock at a price per share of $0.10 for a period of two years following the
• $0.15 — et common stock at an exercise price of $0.15 per share. Thereafter, from the fourtee
• $0.20 — at varying exercise prices ranging from $0.20 to $0.35 per share. All of the above wa
• $0.35 — g exercise prices ranging from $0.20 to $0.35 per share. All of the above warrants mu
• $300,000 — would pay cGreen an advance royalty of $300,000 within ten (10) days of the effective d
• $400,000 — date; $300,000 on January 10, 2020; and $400,000 on or before June 10, 2020, and $500,00
• $500,000 — 400,000 on or before June 10, 2020, and $500,000 on or before November 10, 2020. All adv
• $1,191,860 — anding royalty payable in the amount of $1,191,860. As consideration, the Company paid $13
• $130,000 — 860. As consideration, the Company paid $130,000 within 30 days of the Effective Date an

Filing Documents

• tmb-20231231x10k.htm (10-K) — 1937KB
• tmb-20231231xex31d1.htm (EX-31.1) — 16KB
• tmb-20231231xex32d1.htm (EX-32.1) — 9KB
• tmb-20231231x10k001.jpg (GRAPHIC) — 6KB
• tmb-20231231x10k002.jpg (GRAPHIC) — 5KB
• 0001410578-24-000248.txt (&nbsp;) — 8615KB
• tmb-20231231.xsd (EX-101.SCH) — 74KB
• tmb-20231231_cal.xml (EX-101.CAL) — 58KB
• tmb-20231231_def.xml (EX-101.DEF) — 221KB
• tmb-20231231_lab.xml (EX-101.LAB) — 478KB
• tmb-20231231_pre.xml (EX-101.PRE) — 422KB
• tmb-20231231x10k_htm.xml (XML) — 1445KB

BUSINESS

BUSINESS 4 ITEM 1A.

RISK FACTORS

RISK FACTORS 9 ITEM 1C. CYBERSECURITY 13 ITEM 2.

PROPERTIES

PROPERTIES 13 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 14 ITEM 4. MINE SAFETY DISCLOSURES 14 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES 15 ITEM 6.

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA 15 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 16 ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA F-1 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES 18 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 18 ITEM 9B. OTHER INFORMATION 18 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 19 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 20 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 21 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 21 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 22 PART IV ITEM 15. EXHIBITS FINANCIAL STATEMENT SCHEDULES 23 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as "anticipate," "believe," "estimate," "intend," "could," "should," "would," "may," "seek," "plan," "might," "will," "expect," "anticipate," "predict," "project," "forecast," "potential," "continue" negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance, or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking statements. We cannot predict all of the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described in such statements or that our objectives and plans will be achieved, and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements are found at various pl

Business

Item 1. Business Historical background Target Group Inc. ("Target Group" or the "Company") was incorporated in the State of Delaware on July 2, 2013, under its original name of River Run Acquisition Corporation. Effective May 13, 2014, the Company changed its name to Chess Supersite Corporation. On July 3, 2018, we filed an amendment in its Certificate of Incorporation to change its name to Target Group Inc. Effective October 18, 2018, the Company's common stock became eligible for quotation on the OTCQB platform operated by OTC Markets Group Inc, under the OTC Bulletin Board symbol "CBDY" from the Financial Industry Regulatory Authority (FINRA). The global spread and lasting effects of Coronavirus (COVID-19) continued to have an impact on the Canadian and global economy and customer purchasing behavior, while equity markets remained volatile. However, these factors have not materially impacted the Company's operations or, financial results for the year. Cannabis Business-Canada The Company is engaged in the cultivation, processing and distribution of curated cannabis products for the medical and adult-use recreational cannabis market in Canada and, where legalized by state legislation, in the United States. There continues to be a shift in the public's perception of cannabis from a state of prohibition to a state of legalization across North America. In October 2018, Canada became the first major industrialized nation to legalize adult-use cannabis at the national federal level. Cannabis is still heavily regulated, however, the medical use of cannabis is now permitted in up to 29 countries and many more countries have reformed, or are considering reforming, their cannabis related laws to permit the medical and/or recreational production, distribution, sale and use of cannabis. In the 2016 publication by Deloitte, Insights and Opportunities Recreational Marijuana, the project size of the Canadian adult-use market ranged from CDN$4.9 billion to CDN$8.7 billion

View Full Filing

View this 10-K filing on SEC EDGAR