CannaPharmarx, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>CannaPharmarx, Inc. has filed its 2023 annual report detailing its operations and financial standing.</b>

AI Summary

CANNAPHARMARX, INC. (CPMD) filed a Annual Report (10-K) with the SEC on May 16, 2024. CannaPharmarx, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is in Pharmaceutical Preparations (SIC code 2834). CannaPharmarx, Inc. was formerly known as Golden Dragon Holding Co., CCVG, Inc., and Concord Ventures, Inc. The company's business address is located in Calgary, Alberta, Canada.

Why It Matters

For investors and stakeholders tracking CANNAPHARMARX, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of CannaPharmarx's financial performance, operational activities, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's health. As a pharmaceutical preparations company, the detailed disclosures in this filing are essential for understanding regulatory compliance, market positioning, and future growth prospects within the healthcare sector.

Risk Assessment

Risk Level: low — CANNAPHARMARX, INC. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or significant negative financial disclosures, indicating a routine update.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand CannaPharmarx's performance and potential challenges in the pharmaceutical sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the 10-K filing)
• 2024-05-16 — Filing Date (Date the 10-K was filed)
• 2834 — SIC Code (Industry classification for Pharmaceutical Preparations)

Key Players & Entities

• CannaPharmarx, Inc. (company) — Filer of the 10-K
• Golden Dragon Holding Co. (company) — Former name of CannaPharmarx, Inc.
• CCVG, Inc. (company) — Former name of CannaPharmarx, Inc.
• Concord Ventures, Inc. (company) — Former name of CannaPharmarx, Inc.
• Calgary (location) — Business address city

FAQ

Industry Context

CannaPharmarx, Inc. operates within the Pharmaceutical Preparations industry, a sector characterized by rigorous research, development, and regulatory oversight.

Regulatory Implications

As a pharmaceutical company, CannaPharmarx is subject to regulations from health authorities regarding drug development, manufacturing, and marketing.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and cash flow.
2. Review the 'Risk Factors' section for potential challenges and uncertainties.
3. Examine management's discussion and analysis (MD&A) for strategic insights and outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-05-16: Filing Date — Date CannaPharmarx, Inc. submitted its 10-K to the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K for the fiscal year 2023, providing a year-end summary compared to previous filings.

Key Financial Figures

• $0.02 — share of common stock of the Company at $0.02 per share until November 22, 2028; $3,0
• $3,000,000 — 0.02 per share until November 22, 2028; $3,000,000 in promissory notes payable to the sell
• $2,500,000 — on the Company reaching a threshold of $2,500,000 annual revenue at any time within 24 mo
• $204,220 — he sellers under the true up, valued at $204,220. We are in discussion with other compa
• $50 million — e maximum being life imprisonment and a $50 million fine. Any such change in the Federal Go

Filing Documents

• cannapharmarx_i10k-123123.htm (10-K) — 1188KB
• cannapharmarx_ex3101.htm (EX-31.1) — 11KB
• cannapharmarx_ex3102.htm (EX-31.2) — 11KB
• cannapharmarx_ex3200.htm (EX-32) — 5KB
• image_001.jpg (GRAPHIC) — 3KB
• image_002.jpg (GRAPHIC) — 3KB
• 0001683168-24-003575.txt (&nbsp;) — 5458KB
• cpmd-20231231.xsd (EX-101.SCH) — 52KB
• cpmd-20231231_cal.xml (EX-101.CAL) — 64KB
• cpmd-20231231_def.xml (EX-101.DEF) — 163KB
• cpmd-20231231_lab.xml (EX-101.LAB) — 357KB
• cpmd-20231231_pre.xml (EX-101.PRE) — 306KB
• cannapharmarx_i10k-123123_htm.xml (XML) — 638KB

Business

Business 2 Item 1A

Risk factors

Risk factors 11 Item 1B Unresolved Staff Comments 31 Item 1C Cybersecurity 31 Item 2

Properties

Properties 32 Item 3

Legal Proceedings

Legal Proceedings 32 Item 4 Mine Safety disclosures 32 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 33 Item 6 [Reserved] 34 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 35 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 40 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 40 Item 9A

Controls and Procedures

Controls and Procedures 40 Item 9B Other Information 41 Item 9C Disclosures Regarding Foreign Jurisdictions that Prevent Inspections 41 PART III Item 10 Directors, Executive Officers and Corporate Governance 42 Item 11

Executive Compensation

Executive Compensation 46 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 49 Item 13 Certain Relationships and Related Transactions and Director Independence 50 Item 14 Principal Accountant Fees and Services 50 PART IV Item 15 Exhibit and Financial Statement Schedules 51 Item 16 Form 10-K Summary 51 Signature 52 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This annual report contains "forward-looking developments of our operations in future periods, plans related to our business, and other matters that may occur in the future. These and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "estimates" or "intends", the negatives thereof, variations thereon and similar expressions, or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements are subject to a variety

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation: risks associated with the Company's history of losses and need for additional financing, risks associated with increased costs affecting its financial condition, risks associated with uninsured risks, risks associated with governmental and environmental regulations, risks associated with future legislation regarding the cannabis industry and climate change, risks associated with cybersecurity and cyber-attacks, risks related to economic conditions, risks related to its ability to manage growth, risks related to its dependence on key personnel, risks related to its SEC filing history, and risks related to its securities. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. We qualify all the forward-looking 1

- BUSINESS

ITEM 1 - BUSINESS Description of Current Business CannaPharmaRX Inc. ("CPRX", "we", "our", or the "Company") was originally incorporated in the state of Colorado in August 1998 as Network Acquisitions, Inc. The Company focuses its business efforts on evaluation, negotiation, acquisition, and development of cannabis cultivation projects in Canada. On January 6, 2022, the Company entered into a 20-year operating lease with Formosa Mountain Ltd. for the use of a leased facility located in Cremona, Alberta, Canada. The facility was built in 2015 and was previously operating as a cannabis production facility until it was decommissioned, and the license cancelled by the previous owner making the facility ready for sale in 2020. CPRX recommissioned the 55,000 square foot facility which contains 11 growing rooms and 10 drying and packing rooms into a new indoor cannabis farm during 2022. The Company received an operating license from Health Canada on December 9, 2022, and a cannabis license from the Canada Revenue Agency ("CRA") on December 22, 2022. On February 21, 2023, the Company entered into a supply agreement with Y.S.A. Holdings Ltd ("Y.S.A."), an Israeli corporation, whereby the Company will supply 450kg of cannabis biomass in the form of dried flowers and dried trim per annum to Y.S.A over a two-year period. No biomass has been delivered to Y.S.A as at the date of this Report. Under the new license the dates of the harvests during the year ended December 31, 2023 were August 10, September 12, October 2, October 6, and November 25, 2023. The five harvests cumulatively yielded total saleable cannabis flower product of approximately 300 kilograms. Growth by Acquisition The Company plans to grow through the acquisition of related, complementary businesses. In doing so we expect to increase revenues and profits by providing a broader range of services in vertical markets which are consolidated under one parent, thus realizing synergies between the brands to i

View Full Filing

View this 10-K filing on SEC EDGAR