CannaPharmarx Files 10-Q for Q1 2024

TL;DR

CannaPharmarx 10-Q filed for Q1 2024. Shows preferred & common stock data.

AI Summary

CannaPharmarx, Inc. filed its 10-Q for the period ending March 31, 2024. The company, previously known as Concord Ventures, Inc., is in the pharmaceutical preparations industry. Its fiscal year ends on December 31st. The filing includes data related to preferred stock series A, B, and C, as well as common stock for various reporting periods.

Why It Matters

This filing provides a quarterly update on CannaPharmarx's financial status, including details on its preferred and common stock, which is crucial for investors to assess the company's performance and capital structure.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that can reveal significant risks or opportunities, and the company's history of name changes suggests potential restructuring or strategic shifts.

Key Numbers

• Q1 2024 — Reporting Period (The first quarter of 2024 financial data is presented.)
• 1231 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• CannaPharmarx, Inc. (company) — Filer of the 10-Q
• 20240331 (date) — Period of report for the 10-Q
• Concord Ventures, Inc. (company) — Former company name
• 2834 (industry_code) — Standard Industrial Classification for Pharmaceutical Preparations
• 0001081938 (cik) — Central Index Key for CannaPharmarx, Inc.

FAQ

Key Financial Figures

• $3.30 — ional per gram pricing at approximately $3.30 Canadian dollars ("CAD") per gram. This

Filing Documents

• cpmd_i10q-033124.htm (10-Q) — 729KB
• cpmd_ex3101.htm (EX-31.1) — 11KB
• cpmd_ex3102.htm (EX-31.2) — 11KB
• cpmd_ex3200.htm (EX-32) — 5KB
• 0001683168-24-004460.txt ( ) — 4486KB
• cpmd-20240331.xsd (EX-101.SCH) — 48KB
• cpmd-20240331_cal.xml (EX-101.CAL) — 59KB
• cpmd-20240331_def.xml (EX-101.DEF) — 158KB
• cpmd-20240331_lab.xml (EX-101.LAB) — 321KB
• cpmd-20240331_pre.xml (EX-101.PRE) — 283KB
• cpmd_i10q-033124_htm.xml (XML) — 543KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations/Plan of Operation

Management's Discussion and Analysis of Financial Condition and Results of Operations/Plan of Operation 19 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4

Controls and Procedures

Controls and Procedures 25

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 27 Item 1A

Risk Factors

Risk Factors 27 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 3 Defaults Upon Senior Securities 27 Item 4 Mine Safety Disclosures 28 Item 5 Other Information 28 Item 6 Exhibits 28

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CANNAPHARMAX, INC. CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS March 31, 2024 (Unaudited) December 31, 2023 ASSETS Current assets Cash $ 12,093 $ 650 Goods and services tax receivable 71,009 61,524 Accounts receivable 14,145 – Inventory 950,241 1,133,668 Total current assets 1,047,488 1,195,842 Non-current assets Property, plant and equipment, net 150,201 161,540 Right-of-use building, net 5,650,199 5,870,141 Investments 4,518,127 4,518,127 Total assets $ 11,366,015 $ 11,745,650 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities Accounts payable and accrued liabilities $ 8,289,860 $ 8,781,169 Accrued interest 807,745 523,680 Accrued legal settlement 190,000 190,000 Notes payable 3,332,840 3,333,925 Convertible notes - net of discount 1,220,114 1,520,858 Derivative liability 9,300,720 1,264,388 Loan payable - related party 3,012,038 2,155,484 Liability for right-of-use building, current portion 183,397 190,177 Obligation to issue shares 2,915,099 204,220 Total current liabilities 29,251,813 18,163,901 Non-current liability Liability for right-of-use building 5,643,594 5,734,962 Total liabilities 34,895,407 23,898,863 STOCKHOLDERS' DEFICIT Preferred stock series A, $ 1.00 par value, 100,000 shares authorized, 74,416 and 84,416 issued and outstanding as at March 31, 2024 and December 31, 2023, respectively 74,416 84,416 Preferred stock series B, $ 1.00 par value, 3,000,000 shares authorized, 455,000 and 2,455,000 shares issued and outstanding as at March 31, 2024 and December 31, 2023, respectively 455,000 2,455,000 Preferred stock series C, $ 1.00 par value, 100,000 shares authorized, 100,000 shares issued and outstanding as at March 31, 2024 and December 31, 2023 100,000 750,000 Common stock, $ 0.0001 par value; 5,000,000,000 shares authorized, 559,644,265 and 440,752,302 issued and outstanding as at March 31, 20

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES CannaPharmaRX Inc. ("CPRX" 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. Preliminary discussions with export partners would set conditional per gram pricing at approximately $3.30 Canadian dollars ("CAD") per gram. This price would be based on achieving satisfactory test results associated to tetrahydrocannabinol ("THC") and cannabidiol ("CBD") content of the dried flower. Basis of presentation The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standard Codification, the source of authoritative

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (continued) Inventory Inventory is valued at the lower of cost and net realizable value, with cost determined using the weighted average cost method. Net realizable value is calculated as the estimated selling price in the ordinary course of business, less any estimated costs to complete and sell the goods. Costs are capitalized to inventory, until substantially ready for sale. Costs include direct and indirect labor, raw materials, consumables, packaging supplies, utilities, facility costs, quality and testing costs, production related depreciation, and other overhead costs. Leases The Company recognizes right-of-use assets and corresponding liabilities for leases with terms greater than 12 months or leases that contain a purchase option that is reasonably certain to be exercised as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. This classification of operating or finance lease determines the presentation of corresponding expenses over the lifetime of the lease. Finance lease assets represent the right to use an underlying asset for the lease term, and finance lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. A collateralized incremental borrowing rate based on the information available at commencement date, including lease term, is used in determining the present value of future payments. This incremental borrowing rate is updated in the event of a lease modification such as a renewal or option that adds time and payments to a lease. A lease term generally does not include an option to extend or terminate the lease, unless there is a reasonable certainty that the option will be exerci

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (continued) Foreign currency translation The functional currency and the reporting currency of the Company's US operations is USD. The functional currency of the Company's Canadian operations is CAD. Management adopted ASC 830 Foreign Currency Matters for transactions that occur in foreign currencies. Monetary assets denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Average monthly rates are used to translate revenues and expenses. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. Assets and liabilities of the Company's operations are translated into the reporting currency, USD, at the exchange rate in effect at the balance sheet dates. Revenue and expenses are translated at average rates in effect during the reporting periods. Equity transactions are recorded at the historical rate when the transaction occurred. The resulting translation adjustment is reflected as accumulated other comprehensive income, a separate component of stockholders' deficit in the statements of changes in stockholders' deficit. These translation adjustments are reflected in accumulated other comprehensive income, a separate component of the Company's stockholders' deficit. Harmonized sales tax The Canadian Goods and Services Tax ("GST") is a 5% tax applied to taxable goods and services. GST is a consumption tax paid by the consumer at the point of sale The vendor or seller collects the tax proceeds from consumers by adding the GST rate to the cost of goods and services. They then remit the total collected tax

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (continued) Level 1: Valuation is based on quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. For example, Level 2 assets and liabilities may include debt securities with quoted prices that are traded less frequently than exchange-traded instruments. Level 3: Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments and long-term derivative contracts. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments The estimated fair value for financial instruments was determined at discrete points in time based on relevant market information. These estimates involve uncertainties and could not be determined with exact precision. The fair value of the Co

View Full Filing

View this 10-Q filing on SEC EDGAR