Annual report pursuant to Section 13 and 15(d)

Due from Third Parties

Due from Third Parties
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Due from Third Parties



At December 31, 2018 and 2017, the balances due from third parties were comprised the following amounts advanced to the Company’s cannabis-licensed clients for working capital purposes:


    2018     2017  
Kind Therapeutics USA Inc. (Maryland licensee)   $ 2,679,496     $ 77,558  
KPG of Anna LLC (Illinois licensee)     482,700       418,305  
KPG of Harrisburg LLC (Illinois licensee)     449,385       382,260  
Harvest Foundation LLC (Nevada licensee)     248,796       40,693  
ARL Healthcare Inc. (Massachusetts licensee)     -       176,823  
Other     -       101,279  
Total due from third parties   $ 3,860,377     $ 1,196,918  


Such amounts are advanced by the Company to its clients in order to furnish these companies with additional means by which they can establish their cannabis businesses and grow their operations. The Company has employed this strategy in the past, and is continuing with these companies, whereby all advanced amounts are reimbursed as the companies begin to generate positive cash flow.