Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.8.0.1
Investments
6 Months Ended
Jun. 30, 2017
Investments, All Other Investments [Abstract]  
Investments

NOTE 6 – INVESTMENTS

 

MoneyTrac

 

On March 13, 2017, the Company entered into a stock purchase agreement to acquire up to 15,000,000 common shares of MoneyTrac Technology, Inc., a corporation organized and operating under the laws of the state of California, for a total purchase price of $250,000 representing approximately 15% ownership at the time of the agreement. As of June 30, 2017, the Company paid $205,000 and owes $45,000 to complete its purchase.

 

The Company accounts for its investment in MoneyTrac Technology, Inc. at estimated market fair value. The Company has elected to estimate its fair value at cost minus impairment plus or minus changes resulting from observable price changes since the equity security does not have a readily determinable fair value.

 

BV-MCOA Management, LLC

 

On March 16, 2017, the Company entered into a Joint Venture Agreement (“Agreement”) with Bougainville Ventures, Inc., a corporation organized under the laws of Canada to engage in the development and promotion of products in the legalized marijuana industry in the state of Washington under the name of BV-MCOA Management LLC. Ownership and voting control is divided on a 50/50 basis with neither party having effective control.

 

Pursuant to the Agreement, the Company committed to raising one million dollars for the joint venture based on the following schedule:

 

April 4, 2017 $75,000
April 17, 2017 $125,000
May 1, 2017 $513,750
June 1, 2017 $17,250
July 1, 2017 $19,000
August 1, 2017 $250,000

 

As of June 30, 2017, the Company made a payment of $75,000 on April 4, but otherwise failed to comply with the funding schedule set forth in the Agreement. As a result, the Company is in default of the Agreement as of June 30, 2017, and has recorded a liability for the unfunded amount of $925,000.

 

The Company’s investment of $75,000 is comprised of a 50% ownership of BV-MCOA Management LLC and is accounted for using the equity method of accounting. The Company’s 50% income earned by BV-MCOA Management LLC will recorded as other income/expense in the Company’s Statement of Operations in the appropriate periods.  As of June 30, 2017, there has not been any economic activity of BV-MCOA Management LLC.

 

The standalone unaudited balance sheet of the BV- MCOA Management LLC Joint Venture as of June 30, 2017 and December 31, 2016 are as follows:

 

   

June 30,

2017

 

December 31,

2016

ASSETS                
                 
Cash     82.00       —    
Total Cash     82.00          
Other Current Assets                
Bougainville Ventures Inc. Receivable     (100.00 )     —    
Total Other Current Assets     (100.00 )     —    
Total Current Assets     (18.00 )     —    
Fixed Assets                
Land Deposit     75,000.00       —    
Total Fixed Assets     75,000.00       —    
TOTAL ASSETS     74,982.00       —    
LIABILITIES & EQUITY                
Equity                
MCOA  Capital Contribution     75,000.00       —    
Net Income     (18.00 )     —    
TOTAL LIABILITIES AND EQUITY     74,982        —    

 

The standalone unaudited statement of operations of the BV- MCOA Management LLC Joint Venture for the six months ended June 30, 2017 and June 30, 2016 are as follows:

 

 

    For the
Six Months
Ended
June 30, 2017
  For the
Six Months
Ended
June 30, 2016
Income     0.00       —    
Expense                 
Bank Service Charges     18.00       —    
Total Expense     18.00       —    
Net Income     (18.00 )     —    

 

GateC Research Joint Venture

 

On March 17, 2017, the Company and GateC entered into a Joint Venture Agreement to engage in the development and promotion of products in the legalized marijuana industry in the state of California. The Company committed to raise up to $1,500,000 over a six-month period, with a minimum commitment of $500,000 within a 3 month period. As of June 30, 2017, the Company failed to perform on its commitment, and recorded a liability of $1,500,000.

 

Conveniant Hemp Mart, LLC

 

On June 16, 2017, the Company entered into a Loan Agreement (“Agreement”) with Conveniant Hemp Mart, LLC (“Benihemp”), a limited liability company formed and operating under the laws of the State of Wyoming. Pursuant to the Agreement, Benihemp executed a promissory note for a principal loan amount of $50,000, accruing interest at the rate of 4% per annum and payable in one year, subject to one-time six-month repayment extension. The Agreement also provided that the Company shall have the option to waive repayment of the note and pay Benihemp an additional $50,000 payment in exchange for a 25% membership interest in Benihemp’s limited liability company.