The following Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is intended to help the reader understand the Company, our operations, and our present business environment. MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and the accompanying Notes thereto. As discussed in more detail under "Forward-Looking Statements" immediately following this document's Table of Contents, the following discussion contains forward-looking statements that are based on our management's current expectations, estimates, and projections, which are subject to a number of risks and uncertainties. Our actual results may differ materially from those discussed in these forward-looking statements because of the risks and uncertainties inherent in future events.






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Results of Operations

Fiscal year ended December 31, 2022 compared with fiscal year ended December 31, 2021

The narrative comparison of the results of operations for the periods ended December 31, 2022 and 2021 are based on the following table.





                                           Years Ended
                                       A                 B                      A-B
                                 December 31,      December 31,                       Change
                                     2022              2021            Change           %
REVENUE                          $   1,558,752     $   1,841,558     $ (282,806 )          -15 %
Cost of revenues                       597,842           699,378       (101,536 )          -15 %
Cost of sales % of total sales              38 %              38 %            0 %
Gross profit                           960,910         1,142,180       (181,270 )          -16 %
Gross profit % of sales                     62 %              62 %            0 %
OPERATING EXPENSES
Professional fees                      488,248           581,660        (93,412 )          -16 %
Depreciation and amortization          162,136           171,163         (9,027 )           -5 %
Wages and salaries                     759,054           711,872         47,182              7 %
Advertising                             38,471           344,904       (306,433 )          -89 %
General and administrative             828,071         1,078,204       (250,133 )          -23 %
Total operating expenses             2,275,980         2,887,803       (611,823 )          -21 %
NET LOSS FROM CONTINUING
OPERATIONS                          (1,315,070 )      (1,745,623 )      430,553             25 %

Revenue for the fiscal year ended December 31, 2022 decreased 15% compared to the period ended December 31, 2021. Cost of revenues as a percentage of sales was constant at 38% between the periods. The decrease in revenues in 2022 is primarily a result of the lessening impact COVID-19 as we progressed into 2022. In 2021, COVID-19 and the associated concerns with in-person visits to doctors' offices caused a surge in the use of telemedicine in general and the Company benefitted from this with an increase in customers seeking medical marijuana cards through telemedicine. In 2022, as the public grew more accustomed to the pandemic, and as vaccinations and booster shots became widely available, the demand for remote visits with physicians for medical marijuana cards decreased. We expect that this softening in the demand for our service will continue in 2023. The softening of demand in 2022 was partially offset by expansion into new territories, focused advertising and marketing efforts, and a continuing focus on customer service and word of mouth referrals of our services.

Total operating expenses decreased 21% in 2022 compared with 2021 which trended down as did revenue in the current period. Decreases in professional fees, depreciation and amortization, advertising and general and administrative expenses were offset by increases in wages and salaries. Professional fees decreased with continuing efforts at cost reduction. Depreciation and amortization decreased in part due to the discontinuation of GKMP and IBUD, as reflected below. Advertising costs were reduced by taking a more focused approach to our target markets. Wages and salaries increased with the addition of personnel in our telemedicine business relating to increased selling efforts as we expand to new markets.

Liquidity and Capital Resources

Cash used by operating activities was $235,559 in 2022 compared to $245,986 in 2021. In 2022, financing activities provided $196,200, consisting of proceeds from related party notes payable in the net amount of $27,700, and proceeds from convertible notes payable in the amount of $168,500. We ended 2022 with $97,445 in cash on hand.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. We incurred net losses of $1,174,637 and $2,419,406, respectively, for the years ended December 31, 2022 and 2021 and had an accumulated deficit of $80,603,069 as of December 31, 2022. The Company may seek to raise money for working capital purposes through a public offering of its equity capital or through a private placement of equity capital or convertible debt. It will be important for the Company to be successful in its efforts to raise capital in this manner if it is going to be able to further its business plan in an aggressive manner. Raising capital in this manner will cause dilution to current shareholders.






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The amount of cash on hand the Company has does not provide sufficient liquidity to meet all of the immediate needs of our current operations.

Off Balance Sheet Arrangements

None

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