Quarterly report pursuant to Section 13 or 15(d)

Organization and Description of Business

Organization and Description of Business
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Organization and Description of Business



MariMed Inc. (the “Company”), a Delaware corporation, develops and manages state-of-the-art, regulatory-compliant facilities for the cultivation, production, and dispensing of legal cannabis and cannabis-infused products. Such facilities, located in multiple states, are leased to the Company’s clients in the emerging cannabis industry. Along with operational oversight, the Company provides its clients with legal, accounting, human resources, business development, and other corporate and administrative services.


The Company also provides professional consultative services in all aspects of cannabis licensing procurement. To date, the Company has secured, on behalf of its clients, 11 cannabis licenses across five states—two in Delaware, two in Illinois, one in Nevada, three in Maryland and three in Massachusetts. Accordingly, the Company has developed over 300,000 square feet of seed-to-sale cannabis facilities across these five states.


In addition, the Company licenses precision-dosed, cannabis-infused products to treat specific medical conditions or to achieve a certain result. These products are licensed under the brand names Kalm Fusion™ and Nature’s Heritage™, both of which were developed by the Company, and Betty’s Eddies™, acquired in October 2017. The Company also has exclusive sublicensing rights in certain states to distribute vaporizer pens developed by Lucid Mood™, as well as the clinically-tested medicinal cannabis strains developed in Israel by Tikun Olam™.


The Company’s stock is quoted on the OTCQB market under the ticker symbol MRMD.


The Company was originally incorporated in January 2011 under the name Worlds Online Inc., using the ticker symbol WORX. In early 2017, the Company name and ticker were changed to its current name and ticker. Since inception, the Company had operated an online portal that offers multi-user virtual environments to users. This segment of the business has had insignificant operations since early 2014.


In May 2014, the Company, through its subsidiary MariMed Advisors Inc., acquired Sigal Consulting LLC, a company operating in the cannabis industry. The purchase price consisted of Company common stock, options to purchase additional Company common stock, and a minority interest in MariMed Advisors Inc. This transaction, further disclosed in Note 3, was accounted for as a purchase acquisition where the Company was both the legal and accounting acquirer. In June 2017, the minority interest in MariMed Advisors Inc. was merged into the Company.


In May 2018, the Company acquired iRollie LLC, a manufacturer of branded cannabis products and accessories for consumers, and custom product and packaging for companies in the cannabis industry. This acquisition is further disclosed in Note 3.


In July 2018, the Company contracted to acquire an entity that holds a license for the cultivation of cannabis into medical marijuana products in the state of Pennsylvania, as further disclosed in Note 3.


In October 2018, the Company entered into a purchase agreement to acquire its two cannabis-licensed clients currently operating medical marijuana dispensaries in the state of Illinois. The execution of this agreement occurred subsequent to the quarter end as further disclosed in Note 14.


In October 2018, the Company’s cannabis-licensed client with cultivating and dispensing operations in Massachusetts filed a plan of entity conversion with the state to convert from a non-profit entity to a for-profit corporation. Upon approval of the conversion plan by the state, the for-profit corporation shall be wholly-owned by the Company as further disclosed in Note 14.


In October 2018, the Company acquired BSC Group LLC, a multidisciplinary advisory firm that provides operational, marketing, and licensing management services to companies within the cannabis industry.