Certain statements in this Report constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, among others, uncertainties relating to general economic and business conditions; industry trends; changes in demand for our products and services; uncertainties relating to customer plans and commitments and the timing of orders received from customers; announcements or changes in our pricing policies or that of our competitors; unanticipated delays in the development, market acceptance or installation of our products and services; changes in government regulations; availability of management and other key personnel; availability, terms and deployment of capital; relationships with third-party equipment suppliers; and worldwide political stability and economic growth. The words "believe," "expect," "anticipate," "intend" and "plan" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.






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Results of Operations

Fiscal year ended December 31, 2021 compared with fiscal year ended December 31, 2020

The narrative comparison of the results of operations for the periods ended December 31, 2021 and 2020 are based on the following table.





                                           Years Ended
                                       A                 B                      A-B
                                 December 31,      December 31,                       Change
                                     2021              2020            Change           %
REVENUE                          $   1,841,558     $   1,940,731     $  (99,173 )           -5 %
Cost of revenues                       699,378           740,645        (41,267 )           -6 %
Cost of sales % of total sales              38 %              38 %            0 %
Gross profit                         1,142,180         1,200,086        (57,906 )           -5 %
Gross profit % of sales                     62 %              62 %            0 %
OPERATING EXPENSES
Professional fees                      581,660           750,030       (168,370 )          -22 %
Depreciation and amortization          171,163           207,866        (36,703 )          -18 %
Wages and salaries                     711,872           596,262        115,610             19 %
Advertising                            344,904           467,918       (123,014 )          -26 %
General and administrative           1,078,204           971,598        106,606             11 %
Total operating expenses             2,887,803         2,993,674       (105,871 )           -4 %
NET LOSS FROM CONTINUING
OPERATIONS                          (1,745,623 )      (1,793,588 )       47,965             -3 %

Revenue for the fiscal year ended December 31, 2021 decreased 5% compared to the period ended December 31, 2020. Cost of revenues as a percentage of sales was constant at 38% between the periods. The decrease in revenues in 2021 is primarily a result of the lessening impact COVID-19 as we progressed into 2021. In 2020, 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 2021, 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 2022. The softening of demand in 2021 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 4% in 2021 compared with 2020 which was in line with the decrease in revenue in the current period. Decreases in professional fees, depreciation and amortization, and advertising were offset by increases in wages and salaries and general and administrative expenses. 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. General and administrative expenses increased primarily due to the addition of a brand ambassador and costs associated with our continuing business development efforts.






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Discontinued Operations.

In April 2021, the Company entered into discussions with THC Farmaceuticals, Inc. ("CBDG") regarding sale of CBDS's controlling interest positions in GKMP and iBudtender Inc. (iBud"). The discussions were triggered by an interest on the part of CBDS management to refocus business efforts on growing PrestoCorp while streamlining financial reporting and management processes by eliminating assets that are no longer considered essential to the Company's core focus. The sale was completed on April 22, 2021. Management believes that the sale of GKMP and iBud will free up management time and resources to seek other acquisitions that are more closely aligned with the PrestoCorp business model. Consideration for the sale of the controlling interests consisted of 1,500,000 shares of CBDG common stock and 1,500,000 shares of CBDG preferred stock valued at $600,000 on the date of the acquisition. iBud had no revenues in the periods presented. Summaries of the discontinued operations of GKMP and the operations of iBud through April 22, 2021 are provided below.





                                                       Year               Year
                                                      Ended              Ended
                                                   December 31,       December 31,
DISCONTINUED OPERATIONS OF GKMP AND IBUD               2021               2020
REVENUE                                           $       75,866     $       94,552
Cost of revenues                                          91,316            152,837
Cost of sales % of total sales                               120 %              162 %
Gross profit                                             (15,450 )          (58,285 )
Gross profit % of sales                                      -20 %              -62 %
OPERATING EXPENSES
Depreciation and amortization                              5,526              8,898
Wages and salaries                                       106,224            213,765
Advertising                                                1,693             36,056
General and administrative                               104,177            433,592
Total operating expenses                                 217,620            692,311
NET LOSS FROM OPERATIONS                                (233,070 )         (750,596 )

DISCONTINUED OPERATIONS OF IBUD
REVENUE                                           $            -     $            -
OPERATING EXPENSES
Depreciation and amortization                              1,135              1,004
Total operating expenses                                   1,135              1,004
NET LOSS FROM OPERATIONS                                  (1,135 )           (1,004 )

Aggregate net loss from discontinued operations (234,205 ) (751,600 ) Gain on sale of discontinued operations

                  164,736                  -
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS           (69,469 )         (751,600 )

GKMP and iBud generated losses from operations during the periods they were operated by the Company. The sale of our interests in GKMP and iBud will now allow management to devote more resources to PrestoCorp.

Liquidity and Capital Resources

Cash used by operating activities was $245,986 in 2021 compared $191,756 in 2020. In 2021, financing activities provided $95,243, consisting of proceeds from sales of restricted stock in the amount of $5,000 and from proceeds from related party advances and notes payable in the amount of $90,243. We ended 2021 with $194,060 in cash on hand.






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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 $2,419,406 and $2,458,544, respectively, for the years ended December 31, 2021 and 2020 and had an accumulated deficit of $79,475,968 as of December 31, 2021. 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.

As of April 8, 2022, the Company had cash on hand of approximately $200,000. This amount does not provide sufficient liquidity to meet all of the immediate needs of our current operations. Cash represents cash deposits held at financial institutions. Cash is held at major financial institutions and insured by the Federal Deposit Insurance Corporation (FDIC) up to federal insurance limits.

Off Balance Sheet Arrangements

None

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