Quarterly report pursuant to Section 13 or 15(d)

Due from Third Parties

Due from Third Parties
6 Months Ended
Jun. 30, 2019
Due From Third Parties  
Due from Third Parties



At June 30, 2019 and December 31, 2018, the following amounts were advanced by the Company to its cannabis-licensed clients primarily for working capital purposes:



June 30,


    December 31,
Kind Therapeutics USA Inc. (Maryland licensee)   $ 1,590,016     $ 2,679,496  
KPG of Anna LLC (Illinois licensee)     81,066       482,700  
KPG of Harrisburg LLC (Illinois licensee)     46,516       449,385  
Harvest Foundation LLC (Nevada licensee)     1,145,083       248,796  
Total due from third parties   $ 2,862,681     $ 3,860,377  


When a client is able to organically fund its ongoing operations, such client will issue a promissory note to the Company for the cumulative advances made up to that point, which will then be paid down monthly over a period of time. The Company has successfully employed this strategy in the past, and accordingly, in January 2019, KPG of Anna LLC and KPG of Harrisburg LLC issued promissory notes to the Company as further described in Note 7Notes Receivable.