$CANN

Advanced Cannabis Solutions, Inc.

CIK:0001477009|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue
Total revenue	$ 3,310,259	$ 4,111,583	$ 10,685,262	$ 14,320,196
Costs and expenses
Cost of sales	1,957,455	2,442,541	5,833,992	8,731,032
Selling, general and administrative	1,271,696	1,962,641	4,050,784	6,744,632
Stock-based compensation		8,745	14,968	54,195
Professional fees	173,262	53,259	733,970	1,204,369
Depreciation and amortization	179,485	251,605	586,733	835,026
Total costs and expenses	3,581,898	4,718,791	11,220,447	17,569,254
Operating income (loss)	(271,639)	(607,208)	(535,185)	(3,249,058)
Other income (expenses)
Amortization of debt discount	(123,888)	(219,785)	(418,523)	(621,539)
Interest expense	(467,651)	(296,242)	(1,478,566)	(1,462,281)
Gain (loss) on extinguishment of debt	34,876	(218,237)	34,876	(218,237)
Gain (loss) on derivative liability		(2,860)	4,716	2,359
Gain on contingent earnout			367,056
Gain (loss) on disposal of assets	(23,816)	2,400	(23,816)
Gain (loss) on termination of lease	6,770		6,770
Other income		526,809		896,680
Total other income (expenses)	(573,709)	(207,915)	(1,507,487)	(1,403,018)
Net loss from operations before income taxes	(845,348)	(815,123)	(2,042,672)	(4,652,076)
Benefit (provision) for income taxes	336,339		(990,731)	(85,736)
Loss from operations	(509,009)	(815,123)	(3,033,403)	(4,737,812)
Accrued preferred stock dividend			(17,700)	(17,700)
Net loss attributable to common stockholders	$ (509,009)	$ (815,123)	$ (3,051,103)	$ (4,755,512)
Basic and diluted loss per common share
Net loss attributable to common stockholders’ per share, Basic (in Dollars per share)	$ 0	$ (0.01)	$ (0.03)	$ (0.04)
Net loss attributable to common stockholders per share, diluted (in Dollars per share)	$ 0	$ (0.01)	$ (0.03)	$ (0.04)
Basic weighted average common shares outstanding (in Shares)	108,746,520	118,664,094	108,746,520	118,664,094
Diluted weighted average common shares outstanding (in Shares)	108,746,520	118,664,094	108,746,520	118,664,094
Retail Sales
Revenue
Revenue	$ 3,298,839	$ 4,038,019	$ 10,673,842	$ 14,228,202
Cultivation Sales
Revenue
Revenue	$ 11,420	$ 73,564	$ 11,420	$ 91,994

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net loss	$ (3,033,403)	$ (4,737,812)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Amortization of debt discount and equity issuance costs	418,522	621,539
Depreciation and amortization	586,735	835,026
Loss on disposal of assets	23,816	15,840
Gain on lease termination	(6,770)
Amortization of right of use lease assets	82,503
Non-cash lease expense	378,620	42,762
Bad debt expense	(9,471)
(Gain) loss on extinguishment of debt	(34,876)	202,397
Loss (gain) on contingent earnout	(367,056)
Loss (gain) on derivative liability	(4,716)	(2,359)
Stock-based compensation	14,968	54,195
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	(62,361)	(163,805)
Prepaid expenses and other assets	219,015	(182,130)
Inventories	173,155	488,409
Income taxes		85,742
Uncertain tax benefit liability	990,731
Accounts payable, accrued liabilities, and interest payable	493,902	1,595,527
Operating lease liabilities	(345,253)	(2,763)
Net cash used in operating activities	(481,939)	(1,147,432)
Cash flows from investing activities
Purchase of property and equipment	(45,631)	(9,277)
Acquisition of Station 2 assets		(256,581)
Net cash used in investing activities	(45,631)	(265,858)
Cash flows from financing activities
Payments on notes payable	(1,057,328)
Payments on finance lease	(139,411)	(918,852)
Proceeds from notes payable	1,000,000
Net cash (used in) provided by financing activities	(196,739)	(918,852)
Net decrease in cash and cash equivalents	(724,309)	(2,332,142)
Cash and cash equivalents, beginning of period	969,676	2,583,833
Cash and cash equivalents, end of period	245,367	251,691
Supplemental schedule of cash flow information
Cash paid for interest	919,724	675,477
Cash paid for taxes	6,319	6
Non-cash investing & financing activities
Operating lease right-of-use asset obtained in exchange for new operating lease liabilities		348,825
Non-cash debt issuance for acquisition of Station 2 assets		333,953
Non-cash extinguishment of debt for the surrender of Station 2 assets		(356,152)
Accrued dividends	17,700	17,700
Non-cash extinguishment of debt for Trees MLK Assets	264,639
Non-cash extinguishment of debt for previous year Accounting Fees	$ 43,077

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 245,367	$ 969,676
Accounts receivable, net of allowance of $50,471 and $42,000, respectively	7,038	111,863
Inventories, net	687,763	860,918
Prepaid expenses and other current assets	365,553	411,911
Total current assets	1,305,721	2,354,368
Right-of-use operating lease asset	1,505,824	1,979,833
Property and equipment, net	1,220,260	1,395,104
Intangible assets, net	1,247,415	1,637,491
Goodwill	15,880,097	15,880,097
Total assets	21,159,317	23,246,893
Current liabilities
Accounts payable and accrued expenses	2,648,984	2,617,536
Interest payable	2,088,731	1,570,077
Income tax payable	392,765	392,765
Uncertain tax benefit liability, net	990,731
Operating lease liability, current	766,562	846,201
Finance lease liability, current	71,230	205,400
Accrued stock payable	60,900	60,900
Accrued dividends	123,900	106,200
Warrant derivative liability		4,716
Accrued legal fees	54,000	102,000
Notes payable - current	945,571	1,092,382
Contingent earnout liability		367,056
Total current liabilities	8,143,374	7,365,233
Operating lease liability, non-current	843,835	1,218,392
Finance lease liability, non-current	581,294	501,248
Notes payable - non-current (net of unamortized discount)	14,214,151	14,013,861
Total liabilities	23,782,654	23,098,734
Commitments and contingencies (Note 6)
Stockholders’ equity (deficit)
Preferred stock, no par value; 5,000,000 and 5,000,000 shares authorized; 1,180 and 1,180 issued and outstanding, respectively	1,073,446	1,073,446
Common stock, $0.001 par value; 200,000,000 and 200,000,000 shares authorized; 108,746,520 and 108,746,520 shares issued and outstanding, respectively	108,746	108,746
Additional paid-in capital	99,729,914	99,450,307
Accumulated deficit	(103,535,443)	(100,484,340)
Total stockholders’ equity (deficit)	(2,623,337)	148,159
Total liabilities and stockholders’ equity (deficit)	$ 21,159,317	$ 23,246,893