Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United States
  4. OTC Markets
  5. Cannabis Sativa, Inc.
  6. News
  7. Summary
    CBDS   US13764T1051

CANNABIS SATIVA, INC.

(CBDS)
  Report
SummaryQuotesChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

CANNABIS SATIVA : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-K)

04/16/2021 | 04:39pm EDT

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;

--------------------------------------------------------------------------------
                                       14

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

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.




Results of Operations



Fiscal year ended December 31, 2020 compared with fiscal year ended December 31, 2019

Revenue for the fiscal years ended December 31, 2020 and 2019 were $2,035,283 and $1,159,737, respectively. Cost of revenues for the fiscal years ended December 31, 2020 and 2019 were $893,482 and $462,940, respectively. Gross profit for the fiscal years ended December 31, 2020 and 2019 were $1,141,801 and $696,797, respectively. The increases for 2020 are a result of the improved business operations of PrestoCorp, our 51% owned subsidiary. Telemedicine is a growth area, especially now with the COVID-19 pandemic, and this growth drove revenues higher in 2020. In 2020, the Company also commenced operations in GK Manufacturing and Packaging, Inc. (GKMP), and this division added approximately $95,000 in revenues and $153,000 in cost of goods sold.

Net loss for the fiscal year ended December 31, 2020 was $2,458,544 compared to net loss of $4,006,713 for the fiscal year ended December 31, 2019. The decrease in the net loss resulted primarily from an impairment loss of $1,376,593 taken in 2019, compared to no impairment losses taken in 2020. The 2019 impairment losses also resulted in a decrease in amortization in 2020 to $217,768 compared to $561,434 in 2019. In addition, professional fees increased to $750,030 in 2020, compared to $547,284 in 2019, wages and salaries increased to $810,027 in 2020 compared to $393,310 in 2019, and advertising increased to $503,973 in 2020 compared to $195,879 in 2019. General and administrative expenses were essentially unchanged between periods. In 2020, we reduced our reliance on outside professionals and focused primarily on building our PrestoCorp subsidiary while looking for other acquisition candidates to expand our base business. As noted in the description of our business, we negotiated the acquisition of certain production equipment and in February 2020, we closed on the acquisition and established a new operating subsidiary to engage in contract manufacturing of products containing hemp-based CBD.

Total operating expenses were $3,686,989 for the year ended December 31, 2020 compared to $4,501,902 for the fiscal year ended December 31, 2019. The bulk of the operating expenses for both years were paid using the Company's common stock and therefore required minimal cash. The Company used $191,756 in net cash from operating activities in 2020, compared to positive net cash provided by operating activities in 2019 of $94,648.

Results by Operating Divisions in the Year Ended December 31, 2020



                                      Years Ended
                                    A            B                    A-B
                               December 31, December 31,
PRESTOCORP                         2020         2019       Change   Change %
REVENUE                        $1,940,154   $1,157,437   $782,717   68%
Cost of Sales                  740,645      462,940      277,705    60%
Cost of sales % of total sales 38%          40%          -2%
Gross Profit                   1,199,509    694,497      505,012    73%
Gross profit % of sales        62%          60%          2%



PrestoCorp grew revenue by 68% and cost of sales decreased to 38% in the year ended December 31, 2020 compared to 2019. This resulted in an increase in gross margin to 62% in 2020 compared to 60% in 2019. These operational improvements were driven by improved efficiencies through scale of the company's business and as a result of increased telehealth opportunities due to Covid-19.

--------------------------------------------------------------------------------
                                       15

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                                      Years Ended
                                    A            B          A-B
                               December 31, December 31,
GKMP                               2020         2019      Change
REVENUE                        $94,552      $-           $94,552
Cost of Sales                  152,837      -            152,837
Cost of sales % of total sales 162%                      162%
Gross Profit                   (58,285)     -            (58,285)
Gross profit % of sales        -62%                      -62%



GKMP did not operate in the year ended December 31, 2019. Results of operations for the contract manufacturing business reflect the start-up nature of this segment and the impact of the pandemic on prospective customers and their willingness to commit to contract manufacturing efforts when there is substantial uncertainty surrounding the long-term effect of the pandemic. GKMP operated with a negative gross profit in the year ended December 31, 2020. This was primarily due to high labor costs incurred during the start-up phase of operations.

Liquidity and Capital Resources

As noted above, cash used for operating activities was $191,756 in 2020 compared to positive cash flow in 2019 of $94,648. In 2020, financing activities provided cash of $186,300, consisting of proceeds from sales of restricted stock in the amount of $25,000 and from proceeds from related parties notes and advances in the amount of $161,300. We ended 2020 with $322,107 in cash on hand.

In the year ended December 31, 2019, our operations generated positive cash flow of $94,648. In 2019, financing activities provided cash of $141,882 consisting of cash proceeds from sales of restricted stock in the amount of $50,000 and from proceeds from related parties in the amount of $91,882. We ended 2019 with $336,107 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 attributable to Cannabis Sativa, Inc. of $2,173,192 and $3,936,386, respectively, for the years ended December 31, 2020 and 2019 and had an accumulated deficit of $77,028,339 as of December 31, 2020 which raises substantial doubt about the Company's ability to continue as a going concern. 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 16, 2021, the Company had cash on hand of approximately $330,000.

As a result, the Company has does not have sufficient liquidity to meet 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

© Edgar Online, source Glimpses

All news about CANNABIS SATIVA, INC.
04/16CANNABIS SATIVA  : Management's Discussion and Analysis of Financial Condition a..
AQ
2020CANNABIS SATIVA  : Management's Discussion and Analysis of Financial Condition a..
AQ
2020PrestoDoctor Expands Cannabis Telemedicine Service to Illinois
GL
2020CBDS Reports Q2 Revenues Up 377% From Q2 2019 as Telemedicine Mainstreams
GL
2020CANNABIS SATIVA  : Management's Discussion and Analysis of Financial Condition a..
AQ
2020CANNABIS SATIVA, INC.  : Other Events (form 8-K)
AQ
2020CANNABIS SATIVA  : Management's Discussion and Analysis of Financial Condition a..
AQ
2020CANNABIS SATIVA, INC.  : Other Events (form 8-K)
AQ
2020Prestodoctor telehealth bookings surging as pandemic causes spike in telemed..
GL
2020GK Manufacturing Signs Lease on 16,000 Square Foot CBD Mass Production Manufa..
GL
More news