Cannlabs : Second Quarter Financials

CANNLABS, INC. BALANCE SHEET As of June 30th , 2022

	ASSETS
Current Assets
Cash	327,495.00
Accounts Receivable Net	785,651.00
Inventories	892,415.00
Total Current Assets	2,005,561 00
Fixed Assets- at cost
Office Furniture & Fixtures	371,781.00
Computer equipment	11,023.00
Less accumulated depreciation	(59,765.00)
	323,039 00
Other Assets
Undeposited Funds	97,059.00
Owners Loan Agreement	621,936.00
	718,995 00
	3,047,595.00
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Accounts payable	41,255.00
Taxes payable	0.00
Total current liabilities	41,255.00
Long term liabilities	0.00
Purchasing Agrrement	750,000.00
Total Long term liabilities	750,000 00
Total Liabilities	791,255.00
Stockholder's equity
Capital stock	420,446.00
Additional paid in capital	(339,840.00)
Retained Earnings	1,773,191.00
Net Income	402,543.00
Total Stockholder's Equity	2,256,340.00
Total Liabilities & Stockholder's Equity	3,047,595.00

CANNLABS, INC.

STATEMENT OF INCOME AND RETAINED EARNINGS

For Six-Months Period Ended June 30, 2022

REVENUE
Gross Sales	2,058,652.00
Less: Sales Returns and Allowances	0.00
NET SALES	2,058,652.00
Cost of Goods Sold:
Beginning Inventory	802,154.00
Purchases	1,126,385.00
Ending Inventory	(892,415.00)
Cost of Goods Sold	1,036,124.00
Gross Profit (Loss)	1,022,528.00
GENERAL AND ADMINISTRATIVE EXPENSES:
Accounting Fees	15,200.00
Advertising	6,529.00
Automobile expenses	30,216.00
Bank Fees	1,248.00
Compensation to Officer	195,000.00
Depreciation Expense	4,210.00
Insurance	21,036.00
Janitorial expenses	705.00
Office expenses	1,985.00
Postage & Delivery	2,869.00
Rent	19,523.00
Repairs	1,020.00
Salaries and Wages	215,478.00
Supplies	19,203.00
Taxes & Licenses	53,269.00
Telephone	29,984.00
Utilities	2,510.00
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES:	619,985.00
Net Income Before Income Taxes	402,543.00
Provision for Federal Income Taxes:
Current	0.00
Deferred	0.00
	0.00
Net Income After Taxes	402,543.00

Statement of Retained Earnings

(Statement of Changes in

Stockholders' Equity)

	As of June 30, 2022
						Additional
	Common Stock			Paid In		Accumulated
	Shares			Amount			Capital			Equity			Total
Balance, December 31, 2020	420,466,000	$	420,466		$	-		$	1,744,619		$	1,744,619
Common stock issued for cash	--		-			-			-			1,744,619
Net Gain	-		-			-			712,797			2,487,416
Balance Dec. 31, 2020	420,466,000		420,466			-			2,487,416			2,487,416
Common stock issued for cash	42,698,704		42,698			--			--			2,487,416
Net Gain	--		--			--			291,111			2,778,527
Constructive
distribution of "S" corporation
earnings and
contribution of
capital
	0		0			0			0
Conversion of note
payable
stockholder
into common stock	0				0		0			0
Common stock
issued upon merger	0		0			0			0
Common stock
issued for
services	0		0			0			0
Forfeited common
Stock	0		0			0			0
Sale of
convertible
preferred stock	0		0			0			0
Deferred
Compensation	0		0			0			0
Issuance of
options for
services	0		0			0			0
Accrued preferred
dividends	0		0			0			0
Balance December 31, 2021	463,164,704		463,164			-			2,778,527		2,778,527
Common stock issued for cash	0		0			--			--		-
Net Gain	--		--			--			402,543		3,181,070

Constructive

distribution of "S" corporation

earnings and
contribution of
capital
		0		0		0		0
Conversion of note
payable
stockholder
into common stock		0			0	0		0
Common stock
issued upon merger		0		0		0		0
Common stock
issued for
services		0		0		0		0
Forfeited common
Stock		0		0		0		0
Sale of
convertible
preferred stock		0		0		0		0
Deferred
Compensation		0		0		0		0
Issuance of
options for
services		0		0		0		0
Accrued preferred
dividends		0		0		0		0
Balance June 30, 2022		463,164,704		463,164		0		3,181,070		3,181,070

CANNLABS, INC.

STATEMENT OF CASH FLOW

AS OF JUNE 30, 2022
Cash Flow from Operating Activities:
Net Income
Non-Cash Items Included in Net Income:	402,543
Depreciation & Amortization	4,210
Deferred Federal Income Tax
Net (increase) decrease in receivables	(100,516)
Net (increase) decrease in inventory	(179,618)
Net (increase) decrease in prepaid	0
Net (Decrease) increase in payables	2,298
Net cash provided by (used for) operating Activities	128,917
Cash Flow from Investing Activities:
Purchase of Fixed Assets	0
Increase (Decrease) in other Assts	0
Net cash provided by (used for) investing activities	0
Cash Flow from Financing Activities:
Additonal paid in capital	(339,840)
Purchase of Treasury Stock	0
Net cash provided by (used for) investing activities	(339,840)
Net increase (decrease) in cash	(210,923)
Cash beginning of period	538,418
Cash end of period	327,495