CANNABIS SUISSE CORP. Files Form 10-Q for Period Ending 2023-11-30

TL;DR

<b>CANNABIS SUISSE CORP. filed its quarterly report (10-Q) for the period ending November 30, 2023, on January 12, 2024.</b>

AI Summary

CANNABIS SUISSE CORP. (CSUI) filed a Quarterly Report (10-Q) with the SEC on January 12, 2024. CANNABIS SUISSE CORP. filed a Form 10-Q for the period ending November 30, 2023. The company was formerly known as Geant Corp. and changed its name on July 19, 2016. CANNABIS SUISSE CORP. is incorporated in Nevada (NV). The company's fiscal year end is May 31. The filing was made on January 12, 2024.

Why It Matters

For investors and stakeholders tracking CANNABIS SUISSE CORP., this filing contains several important signals. This filing provides an update on the company's financial performance and operational status for the most recent fiscal quarter. Understanding the details within this 10-Q is crucial for investors and stakeholders to assess the company's current financial health and future prospects.

Risk Assessment

Risk Level: low — CANNABIS SUISSE CORP. shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate red flags, indicating a low level of immediate risk based solely on this document.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the company's performance and outlook.

Key Numbers

• 2023-11-30 — Period End Date (Conformed period of report)
• 2024-01-12 — Filing Date (Filed as of date)
• 05-31 — Fiscal Year End (Company fiscal year end)

Key Players & Entities

• CANNABIS SUISSE CORP. (company) — Filer name
• Geant Corp. (company) — Former company name
• 20160719 (date) — Date of name change
• NV (jurisdiction) — State of incorporation
• 20240112 (date) — Filing date
• 20231130 (date) — Period of report
• 10-Q (document_type) — Form type

Forward-Looking Statements

• CANNABIS SUISSE CORP. will face increased scrutiny regarding its business operations due to the discrepancy between its name and SIC code. (CANNABIS SUISSE CORP.) — high confidence, target: 2024-06-30
• The company may need to clarify its business model or consider a name change to align with its reported industry. (CANNABIS SUISSE CORP.) — medium confidence, target: 2025-01-12

FAQ

Industry Context

The company operates within the Papers & Allied Products sector, SIC code 2600.

Regulatory Implications

This filing is made under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow.
2. Review the Management's Discussion and Analysis (MD&A) for insights into operational performance.
3. Check for any new risk factors or updates to existing ones.

Key Dates

• 2023-11-30: Quarterly Period End — End date for the financial reporting period covered by the 10-Q.
• 2024-01-12: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is a 10-Q filing, which is a quarterly report. Specific comparisons to the previous filing (e.g., 10-K or prior 10-Q) would require access to those documents.

Key Financial Figures

• $96,661 — 0 and $ 97,870 , respectively, of which $96,661 was included in the amount converted to
• $60,000 — onversion feature was $ 60,000 . Of the $60,000, $30,000 was converted to equity in Dec
• $30,000 — feature was $ 60,000 . Of the $60,000, $30,000 was converted to equity in December 202
• $144,400 — value of the 3,600,000 shares issued is $144,400, of which $ 144,400 has been earned as

Filing Documents

• csui-20231130.htm (10-Q) — 374KB
• csui_ex311.htm (EX-31.1) — 8KB
• csui_ex312.htm (EX-31.2) — 8KB
• csui_ex321.htm (EX-32.1) — 5KB
• csui_ex322.htm (EX-32.2) — 5KB
• 0001393905-24-000008.txt (&nbsp;) — 2301KB
• csui-20231130_cal.xml (EX-101.CAL) — 16KB
• csui-20231130_def.xml (EX-101.DEF) — 65KB
• csui-20231130_lab.xml (EX-101.LAB) — 133KB
• csui-20231130_pre.xml (EX-101.PRE) — 131KB
• csui-20231130.xsd (EX-101.SCH) — 27KB
• csui-20231130_htm.xml (XML) — 224KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1

Financial statements

Item 1. Financial statements. 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 12

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk. 14

Controls and Procedures

Item 4. Controls and Procedures. 14

- OTHER INFORMATION

PART II - OTHER INFORMATION 16

Legal Proceedings

Item 1. Legal Proceedings. 16

Risk Factors

Item 1A. Risk Factors. 16

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 16

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 16

Mine Safety Disclosure

Item 4. Mine Safety Disclosure. 16

Other Information

Item 5. Other Information. 16

Exhibits

Item 6. Exhibits. 16

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial statements

Item 1. Financial statements. The accompanying condensed interim financial statements of Cannabis Suisse Corp. (the "Company") should be read in conjunction with the 10-K that was filed with the United States Securities and Exchange Commission (the "SEC"). The accompanying Condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, since they are interim statements, the accompanying condensed financial statements do not include all the information and notes required by GAAP for complete financial statement presentation. In the opinion of management, the condensed interim financial statements reflect all adjustments (consisting of normal, recurring adjustments) that are necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the condensed financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented. 1 CANNABIS SUISSE CORP. BALANCE SHEETS November 30, 2023 May 31, 2023 (Unaudited) ASSETS Current Assets Cash in Escrow Account $ 5,444 $ 199 Prepaid Expenses 1,500 4,500 Total Current Assets 6,944 4,699 Property and Equipment, net 26,734 28,856 Operating Leases Right of Use Assets 261,432 312,748 TOTAL ASSETS $ 295,110 $ 346,303 LIABILITIES & STOCKHOLDERS' DEFICIT Current Liabilities Accounts Payable $ 8,900 $ 10,770 Accrued Expenses 58,462 8,865 Advances From Related Parties 36,159 29,159 Convertible Notes Payable

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (unaudited) NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS Cannabis Suisse Corp. ("Company") was incorporated in the State of Nevada on February 26, 2016 to start business operations connected with production of paper made from elephant dung for making various stationery products and subsequent selling thereof. On February 20, 2019, the Company filed a Certificate of Amendment to its Articles of Incorporation with the Nevada Secretary of State which changed the Company's name from Geant Corp. to Cannabis Suisse Corp. The Company was engaged in the business of production of OTC (over-the-counter) products - for example CBD oils, retail branded cigarettes and also some health-related supplements. In late May 2022, the former shareholder signed an agreement to sell all his stock to Mr. Scott McAlister. The stock purchase agreement was closed in early June 2022. Since the ownership change, the Company started its real estate business, and in February 2023, the Company leased two properties and one of them has been leased out for rental revenue. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies of the Company is presented to assist in understanding the Company's interim financial statements. The interim financial statements and notes are representations of the Company's management, who is responsible for integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the unaudited financial statements. The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company's financial position, results of operations and cash flows for the interim periods. The results of operations for the six months ended November 30, 2023 are not neces

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (unaudited) The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statements of operations. The cost of maintenance and repairs is charged to the statements of operations as incurred, whereas significant renewals and betterments are capitalized. Leases The Company adheres to the accounting for leases under Accounting Standards Codification (ASC) 842 Lease Accounting and determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, and lease liabilities (short term and long term) on the Company's balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Impairment of Long-Lived Assets The Company evaluates the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Our evaluation is based on an assessment of potential indicators of impairment, such as an adverse change in the business climate that could affect the value of an asset, current or forecasted operating or cash flow lo

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (unaudited) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. Rent Revenue Recognition The Company recognizes rent revenue from the lease of its sub-leased properties in accordance with ASC 842, Leases . The sub-lease is categorized as an operating lease according to ASC criteria for the lease definitions. Rent revenue is recognized on a straight-line basis over the lease term, reflecting the pattern of the economic benefits derived from the lease. The Company's leases generally have fixed rental payments over the lease term, with occasional escalations based on predetermined factors. Rent revenue is recognized monthly as the lease fulfills its obligations under the lease agreement. Any lease incentives or concessions provided to lessees, such as rent-free periods or tenant improvement allowances, are recognized as a reduction of rent revenue over the lease term. For the three and six months ended November 30, 2023, the Company recognized rent revenue of $ 7,500 and $ 15,000 , respectively, from its lease agreement. This amount represents the portion of the total lease payments earned over the lease term. No rent revenue was recognized for the three and six months ended November 30, 2022. Cost of Goods Sold Cost of goods sold includes direct costs of selling items, direct labor cost, rent expense and electricity. Basic Income (Loss) Per Share The Company computes income (loss) per share in accordance with ASC 260 Earnings per Share. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss p

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (unaudited) For the three months ended November 30, 2023 and 2022, the Company recognized depreciation expense in the amount of $ 1,061 . For the six months ended November 30, 2023 and 2022, the Company recognized depreciation expense in the amount of $ 2,122 . NOTE 5 - COMMITMENTS AND CONTINGENCIES During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450-20-50, Contingencies . The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. As of November 30, 2023, the Company is not aware of any contingent liabilities that should be reflected in the financial statements. NOTE 6 - RELATED PARTY TRANSACTIONS In June 2022, the ownership changed, and the current major shareholder took the position of the president. For the three months ended November 30, 2023 and 2022, the current president advanced to the Company $ 2,500 and $ 37,670 , respectively. For the six months ended November 30, 2023 and 2022, the current president advanced to the Company $ 7,000 and $ 97,870 , respectively, of which $96,661 was included in the amount converted to the note payable (see Note 7 below). In November 2022, the Company issued a convertible note payable to the major shareholder in the amount of $ 135,000 to pay off the funds advanced from and the operating expenses paid by the shareholder. See Note 7 Convertible Notes Payable for terms and conditions. As of November 30 and May 31, 2023, the balances of advances from related parties were $ 36,159 and $ 29,159 , respectively. In June 2022, the major stockholder made contributions of office equipment and furniture to the Company. The total value of t

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (unaudited) In February 2023, the Company signed a lease to rent the office at 10 Newnan Street, Jacksonville, FL 32202, with 10 N Newnan LLC, a related party owned by our CEO. The lease commencement date is February 1, 2023 and the lease term is thirty-six months. Based on the criteria and according to ASC 842, the Right-of-Use (ROU) asset is $ 194,758 , and the lease liability and lease commitment is also the same amount. The monthly base rental payment is $ 6,469 , and the Company has the option to pay all or a portion of the rent in shares of its common stock. In February 2023, the Company signed a lease to rent the property at 2652 Blanding Blvd, Jacksonville, FL 32210, with 2600 Blanding Blvd., LLC, a related party owned by our CEO. The lease commencement date is February 1, 2023 and the lease term is thirty-six months. Based on the criteria and according to ASC 842, the Right-of-Use (ROU) asset is $ 135,833 , and the lease liability and lease commitment is also the same amount. The monthly base rental payment is $ 5,000 with incentives of free-rent for the first three months, and the Company has the option to pay all or a portion of the rent in shares of its common stock. In February 2023, the Company signed a sub-lease as the lessor to rent a portion of the property at 2652 Blanding Blvd to a third party private company. The monthly rent is $ 2,500 which will bring rental revenue of $ 30,000 annually. The term of the sub-lease is one year from February 2023 to January 2024. The total lease expenses for the six months ended November 30, 2023 were $ 66,313 , including $ 13,749 recorded as cost of goods sold and $ 52,564 in general and administrative expenses in the statements of operations. The total lease expenses for the three months ended November 30, 2023 were $ 33,156 , including $ 6,874 recorded as cost of goods sold and $ 28,262 in general and administrative expenses in the statements of operations. The following tab

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (unaudited) The Company adopted the provisions of uncertain tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized no increase in the liability for unrecognized tax benefits. The Company has no tax position at November 30, 2023 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at November 30, 2023. The Company's utilization of any net operating loss carryforward may be unlikely as a result of its intended activities. The va

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