Marijuana Co of America, Inc.

CIK:0001078799|SEC Filings

CONDENSED CONSOLIDATED COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
REVENUES:
Sales	$ 142,394	$ 442,178	$ 962,343	$ 493,988
Total Revenues	142,394	442,178	962,343	493,988
Cost of sales	58,200	378,491	607,061	406,972
Gross Profit	84,194	63,687	355,282	87,016
OPERATING EXPENSES:
Depreciation and amortization	51,108	3,697	153,267	6,350
Selling and marketing	43,835	167,664	221,302	430,425
Payroll and related	241,504	142,830	778,628	413,232
Stock-based compensation	9,000	529,393	179,000	688,293
General and administrative	631,514	639,767	1,674,805	1,777,419
Total operating expenses	976,961	1,483,351	3,007,002	3,315,719
Net loss from operations	(892,767)	(1,419,664)	(2,651,720)	(3,228,703)
OTHER INCOME (EXPENSES):
Interest expense, net	(761,060)	(549,363)	(2,859,534)	(2,542,108)
Loss on share exchange agreement		(340,984)		(735,178)
Impairment Loss on Intangible Asset			(2,020,982)
(Loss) Gain on change in fair value of derivative liabilities	(126,136)	1,177,610	(195,203)	(451,679)
Loss on equity investment	(2,009,254)		(2,009,254)
Unrealized Gain on trading securities				504,137
(Loss) Gain on sale of trading securities		(543,200)	6,086	(543,200)
Loss on settlement of debt	(148,324)	(88,990)	(335,824)	(253,967)
Total other income (expense)	(3,044,774)	(344,927)	(7,414,711)	(4,021,995)
Net loss before income taxes	(3,937,541)	(1,764,591)	(10,066,431)	(7,250,698)
Income taxes (benefit)
NET LOSS	(3,937,541)	(1,764,591)	(10,066,431)	(7,250,698)
Foreign currency Translation Adjustment	(17,393)		(19,941)
Comprehensive Loss	$ (3,954,934)	$ (1,764,591)	$ (10,086,372)	$ (7,250,698)
Loss per common share, basic and diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding, basic and diluted (after stock-split)	12,698,727,773	5,266,505,915	10,809,441,907	4,867,533,020

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (10,066,431)	$ (7,250,698)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	2,010,783	1,232,641
Depreciation and amortization	153,267	5,753
Bad debt expense	72,581	34,359
Loss on equity investment	2,009,254	735,178
Loss on VBF acquisition	2,020,982
Loss (Gain) on change in fair value of derivative liability	195,203	451,679
Interest expense recognized for the excess of fair value of derivative liability over net book value of notes payable at issuance	194,984	1,035,115
Stock-based compensation	404,633	661,292
Unrealized Gain on trading securities		(504,137)
Loss on sale of trading securities		543,200
Loss on settlement of liabilities	335,824	256,336
Changes in operating assets and liabilities:
Accounts receivable	(101,644)	(5,496)
Inventories	71,619	(90,561)
Prepaid expenses and other current assets	132,728	(161,352)
Accounts payable	735,480	386,122
Accrued expenses and other current liabilities	12,752	(23,063)
Right-of-use assets		7,858
Right-of-use liabilities		(7,858)
Net cash (used in) operating activities	(1,757,153)	(2,693,632)
Cash flows from investing activities:
Purchases of property and equipment	(2,748)	(121,603)
Payment to establish joint venture		(99,098)
Proceeds from sale of investments		190,401
Acquisition of business		(155,550)
Net cash (used in) investing activities	(2,748)	(185,850)
Cash flows from financing activities:
Proceeds from issuance of notes payable	1,649,980	2,065,863
Repayments of notes payable	(1,144,760)	(626,005)
Proceeds from related parties	13,114
Repayments to related parties		(20,000)
Repurchase of common stock	(60,000)
Proceeds from sale of common stock	1,218,315	1,492,851
Net cash provided by financing activities	1,676,649	2,912,709
Foreign exchange impact on cash	(19,941)
Net (decrease) increase in cash	(103,193)	33,227
Cash at beginning of period	104,024	74,503
Cash at end of period	831	107,730
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for taxes
Non cash financing activities:
Common stock issued in settlement of convertible notes payable	930,174	1,989,282
Reclassification of derivative liabilities to additional paid-in capital		6,270,052
Common stock issued for investment	234,633	1,300,000
Common stock issued to settle liabilities		8,623
Common stock issued for acquisition of business	500,000	1,617,501
Common stock issued for deferred finance costs	$ 276,687

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash	$ 831	$ 104,024
Accounts receivable, net	240,351	211,288
Inventory	180,580	252,199
Prepaid Insurance		61,705
Other current assets	36,937	2,133,640
Total current assets	458,699	2,762,856
Property and equipment, net	106,069	121,588
Other assets:
Long-term Investments	285,733	2,327,357
Goodwill	1,633,557	1,633,557
Intangible assets, net	975,000	1,110,000
Security deposit	9,239	4,541
Total assets	3,468,297	7,959,899
Current liabilities:
Accounts payable	998,027	932,760
Accrued compensation	333,951	42,925
Accrued liabilities	577,229	270,689
Notes payable, related parties	33,114	20,000
Convertible notes payable, net of debt discount of $756,068 and $1,659,622, respectively	4,830,335	3,769,449
Contingent Liability - Acquisition	500,000	953,837
Subscriptions payable	752,961	989,594
Derivative liability	956,795	749,756
Total current liabilities	8,982,412	7,729,010
Total liabilities	8,982,412	7,729,010
Stockholders' deficit:
Common stock, no par value; 32,000,000,000 shares authorized; 1,518,463,309 and 7,122,806,264 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively	101,114,027	96,730,659
Common stock to be issued, 1,000,000 and 1,000,000 shares, respectively	19,000	1,000
Treasury Stock	(60,000)
Accumulated other Comprehensive (loss)	(31,666)	(11,725)
Accumulated (deficit)	(106,567,476)	(96,501,045)
Total stockholders' (deficit)	(5,514,115)	230,889
Total liabilities and stockholders' (deficit)	3,468,297	7,959,899
Preferred Class A [Member]
Stockholders' deficit:
Preferred stock, $0.001 par value, 50,000,000 shares authorized	10,000	10,000
Preferred Class B [Member]
Stockholders' deficit:
Preferred stock, $0.001 par value, 50,000,000 shares authorized	$ 2,000	$ 2,000