This quarterly report and other reports filed by Cannabis Suisse Corp. (Formerly
Geant Corp.) ("we," "us," "our," or the "Company"), from time to time contain
or may contain forward-looking statements and information that are based upon
beliefs of, and information currently available to, the Company's management as
well as estimates and assumptions made by Company's management. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
are only predictions and speak only as of the date hereof. When used in the
filings, the words "anticipate", "believe", "estimate", "expect", "future",
"intend", "plan" or the negative of these terms and similar expressions as they
relate to the Company or the Company's management identify forward-looking
statements. Such statements reflect the current view of the Company with respect
to future events and are subject to risks, uncertainties, assumptions, and other
factors. Should one or more of these risks or uncertainties materialize, or
should the underlying assumptions prove incorrect, actual results may differ
significantly from those anticipated, believed, estimated, expected, intended,
or planned.
Our financial statements are prepared in accordance with accounting principles
generally accepted in the United States ("GAAP"). These accounting principles
require us to make certain estimates, judgments, and assumptions. We believe
that the estimates, judgments, and assumptions upon which we rely are reasonable
based upon information available to us at the time that these estimates,
judgments, and assumptions are made. These estimates, judgments, and assumptions
can affect the reported amounts of assets and liabilities as of the date of the
financial statements as well as the reported amounts of revenues and expenses
during the periods presented. Our financial statements would be affected to the
extent there are material differences between these estimates.
In General
Cannabis Suisse Corp. developed an IT product called Cannabis Life. It is a
mobile application based on an AI-chatbot that will have access to the most
up-to-date information and find out data about companies and brands that sell
seeds, cannabis types, etc.
Cannabis Life is an innovative way of searching and learning any cannabis
related data. Using the most relevant sources of today, the app will keep its
users up with the trends and tendencies of cannabis industry. Communicating with
the chatbot will be as smooth as it would be with a real human being thus giving
users additional immersion into the learning process.
In May 2022, a change in control took place that was effective in June 2022. As
a result we had no operations and were no longer in any aspect of the cannabis
industry. Since the change in control we are continuing to lay the groundwork
for our business operations. In January 2023, we entered into a lease for a
commercial building. We also sublet a portion of the building to an unrelated
party. The lease is with an entity owned by our CEO. Initially, we intend to pay
the lease amount with shares of our common stock and collect the rent from the
sublease to use in our operations.
Research and Development Expenditures
We have not incurred any research expenditures since our incorporation.
Bankruptcy or Similar Proceedings
There has been no bankruptcy, receivership or similar proceeding.
Employees; Identification of Certain Significant Employees
We currently do not have any employees. Our CEO/CFO acts as a consultant to the
Company.
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Results of Operations for the three months ended November 30, 2022, and 2021:
Revenue and Cost of Goods Sold
For the three months ended November 30, 2021, the Company generated total
revenue of $7,770 from selling products to the customers. The cost of goods sold
for the three months ended November 30, 2021 was $1,734.
For the three months ended November 30, 2022, the Company generated total
revenue of $0 from selling products to the customers. The cost of goods sold for
the three months ended November 30, 2022 was $0.
For the six months ended November 30, 2021, the Company generated total revenue
of $7,770 from selling products to the customers. The cost of goods sold for the
six months ended November 30, 2021 was $1,734.
For the six months ended November 30, 2022, the Company generated total revenue
of $0 from selling products to the customers. The cost of goods sold for the six
months ended November 30, 2021 was $0.
The decrease in revenues and cost of goods sold is due to the fact that the
Company stopped its operations late in the year ended May 31, 2022.
Operating expenses
Total operating expenses for the three months ended November 30, 2021, were
$47,387. The operating expenses for the three months ended November 30, 2021,
included professional fees of $4,136; depreciation expense of $582; software
development costs of $6,487 and general and administrative expenses of $36,182.
Total operating expenses for the three months ended November 30, 2022, were
$29,375. The operating expenses for the three months ended November 30, 2022,
included professional fees of $25,200; depreciation expense of $1,061 and
general and administrative expenses of $3,114.
The decrease of $18,012 in operating expenses was mainly due to the decrease of
$33,068 of administrative expenses, although there was an increase in
professional fees of $21,064 in professional fees.
Total operating expenses for the six months ended November 30, 2021, were
$99,301. The operating expenses for the six months ended November 30, 2021,
included professional fees of $18,386; depreciation expense of $1,164; software
development costs of $6,487 and general and administrative expenses of $73,264.
Total operating expenses for the six months ended November 30, 2022, were
$123,554. The operating expenses for the six months ended November 30, 2022,
included professional fees of $99,861; depreciation expense of $2,122 and
general and administrative expenses of $21,571.
The increase of $24,253 in operating expenses is mainly related to the increase
of professional fees of $81,475, although there was in decrease of general and
administrative expenses of $51,693. The increase of the professional fees for
the six months ended November 30, 2022 was due to the ownership change in June
2022 with more professional services needed for the increase of regulatory
filings and related legal services. Meanwhile the decrease of the administrative
expenses was because there were no payroll expenses after the ownership change.
The payroll expenses were the major portion of the administrative expenses for
the six months ended November 30, 2021.
Changes in Fair Value of Derivatives
The changes in fair value of derivatives for the three months ended November 30,
2022 and 2021, was $0 and $1,395, respectively. The reason the fair value change
of the derivatives was $0 because the related debt instruments were converted or
extinguished before May 31, 2022.
The changes in fair value of derivatives for the six months ended November 30,
2022 and 2021, was $0 and $1,841, respectively. The reason the fair value change
of the derivatives was $0 is the same reason as explained above.
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Other expenses
Total other expenses for the three months ended November 30, 2022 and 2021 were
$675 and $33,224. The other expenses for the three months ended November 30,
2022, included the interest expense of $675. The other expenses for the three
months ended November 30, 2021, included interest expense of $17,541 and net
loss on extinguishment of debt of $15,683.
Total other expenses for the six months ended November 30, 2022 and 2021 were
$675 and $111,403. The other expenses for the six months ended November 30,
2021, included interest expense of $62,787 and net loss on extinguishment of
debt of $48,616.
The decrease in other expenses for the three and six month ended November 30,
2022, was that there were no significant interest expenses and loss on
extinguishment of debt as there were in the three and six months ended November
30, 2021.
Net Loss
The net loss for the three months ended November 30, 2022 and 2021 was $30,050
and $73,180, respectively.
The net loss for the six months ended November 30, 2022 and 2021 was $124,229
and $202,827, respectively.
Liquidity and Capital Resources and Cash Requirements
As of November 30, 2022, the Company had cash of $38,339. Furthermore, the
Company had a working capital deficit of $122,107.
During the six months ended November 30, 2022 and 2021, the Company used $96,281
and $31,650 of cash in operating activities respectively. The change in cash
used in operating activities is related to the decrease in net loss, accounts
receivable, accrued expenses, and the increase in depreciation and accounts
payable.
During the six months ended November 30, 2022 and 2021, the Company had $0 of
cash in investing activities.
During the six months ended November 30, 2022 and 2021, the Company was provided
$134,620 and $31,650 of cash in financing activities respectively, which mainly
came from advances from related party.
In its audited financial statements as of May 31, 2022, the Company was issued a
"going concern" opinion, meaning that there is substantial doubt we can continue
as an on-going business for the next twelve months unless we obtain additional
capital. Our only sources for cash at this time are investments by others, and
loans from our director. We must raise cash to implement our plan and stay in
business.
Limited operating history; need for additional capital
We will rely on funds from our operations and advances from our CEO in the near
future. We are in a start-up stage of operations and have generated limited
revenues since inception. We cannot guarantee that we will be successful in our
business operations. Our business is subject to risks inherent in the
establishment of a new business enterprise, including limited capital resources
and possible cost overruns due to price and cost increases in services and
products.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on the Company's financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources.
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Related Party Transactions
The Company's former President, Suneetha Nandana Silva Sudusinghe, agreed to
provide interest free advances, due on demand, to the Company up to $100,000.
For the six months ended November 30, 2022, and 2021, Suneetha Nandana Silva
Sudusinghe advanced to the Company $0 and $31,650, respectively.
In June 2022, the ownership changed, and the current major shareholder took the
position of the president. For the six months ended November 30, 2022, and 2021,
the current president advanced to the Company $1,209 and $0, respectively.
In November 2022, the Company issued a convertible note payable to the major
stockholder/CEO in the amount of $135,000 to pay off the funds advanced from and
the operating expenses paid from the major shareholder. See Note 7 Convertible
Notes Payable for terms and conditions.
As of November 30, and May 31, 2022, the balances of advances from related
parties were $1,209 and $1,589, respectively. Subsequent to the period in
January 2023, we entered into a lease for a commercial building with an entity
owned by our CEO. The lease is for two years. Monthly payments are $12,916.
We also entered into a sublease for a portion of the building with monthly
payments of $4,500. We have to option of paying the lease amount in cash or
shares of our common stock. Initially, we intend to pay in common stock.
In February 2023, the Company signed a lease to rent the office at 10 Newman
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, respectively. The monthly base rental
payment is $6,469, and the Company has the option to pay all or 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, respectively. 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 portion of the rent in shares of its
common stock.
In February 2023, the Company signed a sub-lease as the lessor to rent portion
of the property at 2652 Blanding Blvd to a third party private company. The
monthly rent is $2,500 which will bring the rental revenue of $30,000 annually.
The term of the sub-lease is one year from February 2023 to January 2024.
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Due to the leases signed in February 2023, the Company continues its operating
and the balance sheets shown before and after signing the leases as follows:
© Edgar Online, source Glimpses
CANNABIS SUISSE CORP. 
