UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: November 30, 2022
For the quarterly period ended: February 28, 2023
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from: _____________ to _____________ Commission File Number: 000-56250

MJ Harvest, Inc.

(Exact name of registrant as specified in its charter)

Nevada		82-3400471
(State or Other Jurisdiction		(I.R.S. Employer
of Incorporation)		Identification No.)

9205 W. Russell Road, Suite 240, Las Vegas, Nevada 89148-1425

(Address of Principal Executive Office) (Zip Code)

(954) 519-3115

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered.
None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

The number of shares of the issuer’s Common Stock outstanding as of ~~January~~April 2619, 2023, is 45,534,860.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements. Attached after signature page.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Certain statements in this Report constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a differences include, among others, uncertainties relating to general economic and business conditions; industry trends; changes in demand for our products and services; uncertainties relating to customer plans and commitments and the timing of orders received from customers; announcements or changes in our pricing policies or that of our competitors; unanticipated delays in the development, market acceptance or installation of our products and services; changes in government regulations; availability of management and other key personnel; availability, terms and deployment of capital; relationships with third-party equipment suppliers; inflation, the war in Ukraine, supply chain slowdowns, reoccurring Covid-19 outbreaks both nationally and internationally, particularly in China, and worldwide political stability and economic growth. The words “believe,” “expect,” “anticipate,” “hope,” “intend” and “plan” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

Results of Operations

Three Months Ended ~~November~~February 3028, 2023 ~~2022~~ compared with the Three Months Ended ~~November~~February 3028, ~~2021~~2022

The narrative comparison of results of operations for the three-month periods ended ~~November~~February 3028, ~~2022~~2023 and ~~2021~~2022 is based on the following table.

	November 30, 2022			November 30, 2021
	February 28, 2023			February 28, 2022
REVENUE	$	~~124~~382,~~487~~240		$	4824,~~367~~343
COST OF REVENUE		35346,~~280~~923			1614,~~240~~405
Cost of revenue as a % of total revenue		2891	%		3459	%
Gross Profit		8935,~~207~~317			329,~~127~~938
Gross profit as a % of revenue		729	%		6641	%
OPERATING EXPENSES
Officer and director compensation		7570,000			203,785
General and administrative		~~412~~425,~~835~~915			3848,~~519~~771
Professional fees and contract services		97101,~~013~~427			7922,~~372~~445
Advertising and promotion		(91,~~126~~214	)		6728,~~516~~088
Total operating expenses		~~575~~598,~~722~~556			~~389~~303,~~192~~089
Loss from operations		(~~486~~563,~~515~~239	)		(~~357~~293,~~065~~151	)
Other income (expense)		(951,~~304~~420	)		(~~132~~34,~~812~~134	)
NET LOSS	$	(1,~~437~~514,~~819~~659	)	$	(~~489~~327,~~877~~285	)

Revenues in the quarter ended November 30, 2022 increased when compared to the same period in 2021. The increase is largely attributable to an intensified effort to bring our Colorado and California facilities online. In the quarter ended November 30, 2022, the Company generated $124,346 in sales of cannabis products.

Cost of revenues also increased in the quarter ended November 30, 2022 when compared with the same period in 2021. The increase is attributable to the costs incurred in our Colorado and California operations. In the three months ended November 30, 2022, we incurred operating costs associated with setting up and documenting our manufacturing processes and producing test batches of products to verify our systems were generating expected results at our Colorado and California facilities. During this phase, we did not produce significant quantities of product for resale. The production expenses of the test batches were, however, recorded as manufacturing costs. We expect margins to improve on our cannabis product lines in the coming periods as our manufacturing processes are standardized and our need to run test batches and adjust processes decreases.

~~Our General~~Revenues ~~and Administrative costs (“G&A”) increased~~ in the quarter ended ~~November~~February 3028, ~~2022,~~2023 increased when compared ~~with~~to the same period in ~~2021~~2022. The increase inis ~~G&A~~largely ~~costs~~attributable ~~were primarily due~~ to ~~our~~an ~~decision~~intensified effort to ~~further~~bring ~~develop~~ our ~~cannabis business through acquisition of the~~ Colorado and California facilities ~~and~~online. In the ~~related~~quarter ~~costs~~ended ofFebruary ~~setting~~28, up2023, ~~geographically~~the ~~disbursed~~Company ~~manufacturing~~generated ~~operations~~$381,662 in ~~particular~~sales ~~rent~~of ~~expense.~~cannabis ~~Our advertising and promotion costs decreased significantly when compared to the same reporting period in the previous year~~products.

Cost of revenues also increased in the quarter ended February 28, 2023 when compared with the same period in 2022. The increase is attributable to the costs incurred in our Colorado and California operations. In the three months ended February 28, 2023, we incurred operating costs associated with setting up and documenting our manufacturing processes and producing test batches of products to verify our systems were generating expected results at our Colorado and California facilities. During this phase, we did not produce significant quantities of product for resale. The production expenses of the test batches were, however, recorded as manufacturing costs. We expect margins to improve on our cannabis product lines in the coming periods as our manufacturing processes are standardized and our need to run test batches and adjust processes decreases.

Our General and Administrative costs (“G&A”) increased in the quarter ended February 28, 2023, compared with the same period in 2022. The increase in G&A costs were primarily due to our decision to further develop our cannabis business through acquisition of the Colorado and California facilities and the related costs of setting up geographically disbursed manufacturing operations, in particular rent expense. Our advertising and promotion costs decreased significantly when compared to the same reporting period in the previous year.

Other income (expense) increased period over period due to interest expense on additional borrowings and amortization of discount associated with new notes payable.

Net loss increased in the three-month reporting period ending ~~November~~February 3028, ~~2022~~2023 compared with the same period in ~~2021~~2022. The increase in the net loss is attributable to the factors identified above.

~~Six~~Nine Months Ended ~~November~~February 3028, ~~2022~~ 2023 compared with the ~~Six~~Nine Months Ended ~~November~~ 30February 28, ~~2021~~2022

The narrative comparison of results of operations for the ~~six~~nine-month periods ended ~~November~~February 3028, ~~2022~~2023 and ~~2021~~2022, is based on the following table.

	November 30, 2022			November 30, 2021
	February 28, 2023			February 28, 2022
REVENUE	$	~~169~~560,~~166~~754		$	~~123~~147,~~052~~395
COST OF REVENUE		~~118~~465,~~351~~274			3650,~~369~~774
Cost of revenue as a % of total revenue		7083	%		3034	%
Gross Profit		5095,~~815~~480			8696,~~683~~621
Gross profit as a % of revenue		3017	%		7066	%
OPERATING EXPENSES
Officer and director compensation		~~170~~240,000			~~347~~542,~~359~~570
General and administrative		~~600~~1,~~566~~035,829			64113,~~873~~644
Professional fees and contract services		~~158~~259,~~530~~957			~~145~~176,~~691~~710
Advertising and promotion		(64,~~009~~795	)		~~347~~375,~~373~~461
Total operating expenses		~~923~~1,~~087~~530,991			~~905~~1,~~296~~208,385
Loss from operations		(~~872~~1,~~272~~435,511	)		(~~818~~1,~~613~~111,764	)
Other income (expense)		(12,~~565~~516,~~200~~620	)		(~~611~~645,~~458~~592	)
NET LOSS	$	(23,~~437~~952,~~472~~131	)	$	(1,~~430~~757,~~071~~356	)

Revenues in the six-month period ended November 30, 2022 increased when compared to the same period in 2021. The increase is largely attributable to an intensified effort to bring our Colorado and California facilities online. In six-month period ended November 30,2022, the Company generated $168,265 in sales of cannabis products.

Cost of revenues increased in the six-month period ended November 30, 2022 when compared with the same period in 2021. The increase is attributable to the costs incurred in our Colorado and California operations. In the six-month period ended November 30, 2022, we incurred operating costs associated with setting up and documenting our manufacturing processes and producing test batches of products to verify our systems were generating expected results at our Colorado and California facilities. During this phase, we did not produce significant quantities of product for resale. The production expenses of the test batches were, however, recorded as manufacturing costs. We expect margins to improve on our cannabis product lines in the coming periods as our manufacturing processes are standardized and our need to run test batches and adjust processes decreases.

Our General and Administrative costs (“G&A”) increased in the six-month period ended November 30, 2022, compared with the same period in 2021. The increase in G&A costs were primarily due to our decision to further develop our cannabis business through acquisition of the Colorado and California facilities and the related costs of setting up geographically disbursed manufacturing operations, in particular rent expense. Our advertising and promotion costs decreased significantly when compared to the same reporting period in the previous year.

Other income (expense) increased period over period due to interest expense on additional borrowings and amortization of discount associated with new notes payable.

~~Net loss~~Revenues ~~increased~~ in the ~~six~~nine-month ~~reporting~~ period ~~ending~~ended ~~November~~February 3028, ~~2022~~2023 increased when compared ~~with~~to the same period in ~~2021~~2022. The increase inis ~~the net~~largely ~~loss~~attributable isto ~~attributable~~an intensified effort to bring our Colorado and California facilities online. In the ~~factors~~nine-month ~~identified~~period ~~above~~ended February 28, 2023, the Company generated $549,928 in sales of cannabis products.

Cost of revenues increased in the nine-month period ended February 28, 2023 when compared with the same period in 2022. The increase is attributable to the costs incurred in our Colorado and California operations. In the nine-month period ended February 28, 2023, we incurred operating costs associated with setting up and documenting our manufacturing processes and producing test batches of products to verify our systems were generating expected results at our Colorado and California facilities. During this phase, we did not produce significant quantities of product for resale. The production expenses of the test batches were, however, recorded as manufacturing costs. We expect margins to improve on our cannabis product lines in the coming periods as our manufacturing processes are standardized and our need to run test batches and adjust processes decreases.

Our General and Administrative costs (“G&A”) increased in the nine-month period ended February 28, 2023, compared with the same period in 2022. The increase in G&A costs were primarily due to our decision to further develop our cannabis business through acquisition of the Colorado and California facilities and the related costs of setting up geographically disbursed manufacturing operations, in particular rent expense. Our advertising and promotion costs decreased significantly when compared to the same reporting period in the previous year.

Other income (expense) increased period over period due to interest expense on additional borrowings and amortization of discount associated with new notes payable.

Net loss increased in the nine-month reporting period ending February 28, 2023 compared with the same period in 2022. The increase in the net loss is attributable to the factors identified above.

Liquidity and Capital Resources

Cash flow used by operating activities for the ~~six~~nine month period ended ~~November~~February 3028, ~~2022~~2023, was $~~903~~1,~~035~~112,973 compared with $~~252~~329,~~786~~212 in the same period in ~~2021~~2022. During the period, our total cash increased by $9120,~~334~~784 to $50161,~~221~~671. The increase in our cash position at ~~November~~February 3028, ~~2022~~2023 is ~~largely~~ largely attributable to borrowings associated with ~~for~~ starting up operations in Colorado and California. Cash to fund cash flow from ~~operations~~ operations was derived primarily from proceeds of notes payable.

We continue to seek potential acquisition candidates with a focus on acquiring additional operating companies with scale sufficient to support all aspects of the Company’s operations, including the public company infrastructure. The Company is currently heavily dependent on funding through advances from related parties, but no assurances can be given that such funding will continue to be available in future periods. Our historic operations have not been sufficient to support the existing infrastructure, much of which is required in order to maintain public company status.

We have maintained active operations as a manufacturer and distributor of the Debudder product line since 2018. We do not consider the Company to be a shell company as that term is defined in the Securities Act of 1933, as amended.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. We incurred a net loss of $23,~~437~~952,~~472~~131 for the nine ~~six~~ months ended ~~November~~February 3028, ~~2022~~2023, bringing our accumulated deficit to $1415,~~411~~926,~~513~~172 as of ~~November~~February 3028, ~~2022~~2023. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company may seek to raise money for working capital purposes through a public offering of its equity capital or through a private placement of equity capital or convertible debt. It will be important for the Company to succeed in its efforts to raise capital in this manner to further its business plan in an aggressive manner. Raising additional capital may cause dilution to current shareholders. There are no assurances we can be successful in our efforts to raise working capital.

Off Balance Sheet Arrangements

None.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not required.

Item 4. Controls and Procedures.

Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures

At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”), who also serves as our Chief Finance and Accounting Officer, of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a – 15(e) under the Exchange Act). Based on that evaluation, the CEO has concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures.

Management of the Company believes that these material weaknesses are due primarily to the small size of the company’s accounting staff. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of such remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Changes in Internal Control over Financial Reporting

There have been no changes during the quarter ended ~~November~~February 3028, ~~2022~~2023 in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of equity securities during the three-month period ending ~~November~~February 3028, ~~2022~~2023.

Item 6. Exhibits.

The following documents are included as exhibits to this report:

(a) Exhibits

Exhibit Number	SEC Reference Number	Title of Document
31.1	31	Section 302 Certification of Principal Executive Officer and Principal Financial Officer
32.1	32	Section 1350 Certification of Principal Executive Officer and Principal Financial Officer
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema
101.CAL		XBRL Taxonomy Extension Calculation Linkbase
101.DEF		XBRL Taxonomy Extension Definition Linkbase
101.LAB		XBRL Taxonomy Extension Label Linkbase
101.PRE		XBRL Taxonomy Extension Presentation Linkbase
XBRL information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and is not subject to liability under those sections, is not part of any registration statement, prospectus or other document to which it relates and is not incorporated or deemed to be incorporated by reference into any registration statement, prospectus or other document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MJ Harvest, Inc.
Date: January 30, 2023	By: /s/ Patrick Bilton
Date: April 20, 2023	By: /s/ Patrick Bilton
	Patrick Bilton, CEO

FINANCIAL STATEMENTS – (Unaudited):
Condensed Consolidated balance sheets	F-2
Condensed Consolidated statements of operations	F-3
Condensed Consolidated statements of changes in stockholders’ equity	F-4
Condensed Consolidated statements of changes in stockholders’ equity (deficit)	F-4
Condensed Consolidated statements of cash flows	F-5
Notes to condensed consolidated financial statements	F-6

F-1

MJ HARVEST, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	November 30,			May 31,
	February 28,			May 31,
ASSETS	2022			2022
	2023			2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	50161,~~221~~671		$	40,887
Inventory		~~960~~1,~~202~~060,938			197,059
Prepaids and other current assets		48114,~~371~~558			20,225
Total current assets		1,~~058~~337,~~794~~167			258,171
Investments in equity securities, at cost		3,101,666			3,091,666
Equipment, net		~~324~~320,~~160~~122			36,636
Right to use asset		3,~~588~~436,~~672~~946			287,716
Cannabis licenses		632,066			—
Finite-lived intangible assets, net		~~103~~99,~~334~~584			110,834
Indefinite-lived intangible assets, net		6,000			6,000
Total Assets	$	8,~~814~~933,~~692~~551		$	3,791,023
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$	295,106		$	256,577
Accounts payable and accrued expenses	$	520,113		$	256,577
Payable to related parties		1,067,759			278,207
Accounts payable to related parties		481,807			265,207
Lease liability - current portion		626,559			46,761
Advances from related parties		206,388			—
Put option liability		78,294			—
Accrued interest payable		292,086			13,000
Satellite note payable, net of discount		443,494			—
Accrued rent payable - related party		510,419			—
Lease liability - current portion		643,299			46,761
Put option liablility		82,415			—
Satellite note payable, net of discount		454,673			—
Diagonal convertible note payable		103,750			—
Convertible note payable, net of discount		2,423,251			107,586
Convertible note payable - related party		3,674,263			107,586
Total current liabilities		56,~~038~~969,213			689,131
LONG-TERM LIABILITIES:
Common stock payable		—			112,857
Payables to related parties - long-term		66,300			200,000
Accounts payable - long term		54,117			200,000
Lease liability - long term		2,~~971~~804,~~952~~601			247,366
Satellite note payable, note of discount – long term		321,173			—
Satellite note payable, net of discount - long term		203,225			—
Advances from related parties		—			1,821,482
Total long-term liabilities		3,~~359~~061,~~425~~943			2,381,705
Total Liabilities		810,~~397~~031,~~638~~156			3,070,836
Commitments and contingencies (Notes 4, 9, and 12)
COMMITMENT AND CONTINGENCIES (Note 12)
STOCKHOLDERS’ EQUITY:
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock, par value $0.0001, 5,000,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $0.0001 par value per share, 100,000,000 shares authorized, 44,854,737 and 33,574,436 issued and outstanding, respectively		4,485			3,357
Common stock, $0.0001 par value, 100,000,000 shares authorized; 44,854,737 and 33,574,436 shares issued and outstanding, respectively		4,485			3,357
Additional paid-in capital		14,824,082			12,690,871
Accumulated deficit		(1415,~~411~~926,~~513~~172	)		(11,974,041	)
Total stockholders’ equity		417,054			720,187
Total stockholders' equity (deficit)		(1,097,605	)		720,187
Total Liabilities and Stockholders’ Equity	$	8,814,692		$	3,791,023
Total Liabilities and Stockholders' Equity (Deficit)	$	8,933,551		$	3,791,023

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements.

F-2

MJ HARVEST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

For the three and six months ended November 30, 2022 and 2021


	Three Months Ended						Nine Months Ended
	February 28,			February 28,			February 28,			February 28,
	2023			2022			2023			2022

REVENUE	$	382,240		$	24,343		$	560,754		$	147,395

COST OF REVENUE		346,923			14,405			465,274			50,774

Gross profit		35,317			9,938			95,480			96,621

OPERATING EXPENSES:
Officer and director compensation		70,000			203,785			240,000			542,570
General and administrative		425,915			48,771			1,035,829			113,644
Professional fees		101,427			22,445			259,957			176,710
Advertising and promotion		1,214			28,088			(4,795	)		375,461

Total Operating Expenses		598,556			303,089			1,530,991			1,208,385

NET LOSS FROM OPERATIONS		(563,239	)		(293,151	)		(1,435,511	)		(1,111,764	)

NON-OPERATING EXPENSES
Fair value of put option		4,121			—			82,415			—
Interest and financing expense		947,299			34,134			2,434,205			645,592

Total non-operating expenses		951,420			34,134			2,516,620			645,592

NET LOSS	$	(1,514,659	)	$	(327,285	)	$	(3,952,131	)	$	(1,757,356	)

NET LOSS PER COMMON SHARE
Basic and diluted	$	(0.03	)	$	(0.01	)	$	(0.09	)	$	(0.06	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic & Diluted		44,854,737			33,063,494			43,863,062			30,454,015

	Three Months Ended November 30,						Six Months Ended November 30,
	2022			2021			2022			2021
REVENUE	$	124,487		$	48,367		$	169,166		$	123,052
COST OF REVENUE		35,280			16,240			118,351			36,369
Gross profit		89,207			32,127			50,815			86,683
OPERATING EXPENSES:
Officer and director compensation		75,000			203,785			170,000			347,359
General and administrative		412,835			38,519			600,566			64,873
Professional fees		97,013			79,372			158,530			145,691
Advertising and promotion		(9,126	)		67,516			(6,009	)		347,373
Total Operating Expenses		575,722			389,192			923,087			905,296
NET LOSS FROM OPERATIONS		(486,515	)		(357,065	)		(872,272	)		(818,613	)
NON-OPERATING EXPENSES
Fair value of put option		78,294			—			78,294			—
Interest and financing expense		873,010			132,812			1,486,906			611,458
Total non-operating expenses		951,304			132,812			1,565,200			611,458
NET LOSS	$	(1,437,819	)	$	(489,877	)	$	(2,437,472	)	$	(1,430,071	)
NET LOSS PER COMMON SHARE
Basic and diluted	$	(0.03	)	$	(0.02	)	$	(0.06	)	$	(0.05	)
Basic & Diluted		44,854,737			31,955,781			42,359,404			29,163,613

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements.

F-3

MJ HARVEST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’' EQUITY (DEFICIT)

(unaudited)

~~For~~FOR ~~the~~THE ~~three~~THREE ~~and~~AND ~~six~~NINE ~~months~~MONTH ~~ended~~PERIODS ~~November~~ENDED 30FEBRUARY 28, ~~2022~~2023 ~~and~~AND ~~2021~~2022

Three Month


Three Month	Common Stock				Additional Paid-In Capital		Accumulated Deficit			Total
	Shares		Amount
BALANCES, November 30, 2021		32,787,446	$	3,279	$	10,860,040	$	(10,528,328	)	$	334,991
Shares issued for services		26,200		3		10,507		—			10,510
Shares issued for common stock payable		255,296		25		118,760		—			118,785
Net loss		—		—		—		(327,285	)		(327,285	)

BALANCES, February 28, 2022		33,068,942	$	3,307	$	10,989,307	$	(10,855,613	)	$	137,001

BALANCES, November 30, 2022		44,854,737	$	4,485	$	14,824,082	$	(14,411,513	)	$	417,054
Net loss		—		—		—		(1,514,659	)		(1,514,659	)

BALANCES, February 28, 2023		44,854,737	$	4,485	$	14,824,082	$	(15,926,172	)	$	(1,097,605	)


Nine Month
BALANCES, May 31, 2021		25,302,122	$	2,530	$	8,440,302	$	(9,098,257	)	$	(655,425	)
Shares issued for common stock payable		400,000		40		99,960		—			100,000
Shares issued for services		828,571		83		358,033		—			358,116
Stock issued for investments		6,538,259		654		2,091,012		—			2,091,666
Net loss		—		—		—		(1,757,356	)		(1,757,356	)
BALANCES, February 28, 2022		33,068,942	$	3,307	$	10,989,307	$	(10,855,613	)	$	137,001


BALANCES, May 31, 2022		33,574,436	$	3,357	$	12,690,871	$	(11,974,041	)	$	720,187
Shares issued for advances from related parties		9,740,543		974		1,820,508		—			1,821,482
Shares issued for accounts payable - long term		1,069,519		107		199,893		—			200,000
Shares issued for common stock payable		470,239		47		112,810		—			112,857
Net loss		—		—		—		(3,952,131	)		(3,952,131	)

BALANCES, February 28, 2023		44,854,737	$	4,485	$	14,824,082	$	(15,926,172	)	$	(1,097,605	)

					Additional
	Common Stock				Paid-In		Accumulated
	Shares		Amount		Capital		Deficit			Total
BALANCES, August 31, 2021		31,449,344	$	3,145	$	10,311,603	$	(10,038,451	)	$	(276,297	)
Stock issued for common stock payable		772,065		77		248,494		—			248,571
Stock issued for investments		566,037		57		299,943		—			300,000
Net loss		—		—		—		(489,877	)		(489,877	)
BALANCES, November 30, 2021		32,787,446	$	3,279	$	10,860,040	$	(10,528,328	)	$	334,991
BALANCES, August 31, 2022		44,854,737	$	4,485	$	14,824,082	$	(12,973,694	)	$	1,854,873	)
Net loss		—		—		—		(1,437,819	)		(1,437,819	)
BALANCES, November 30, 2022		44,854,737	$	4,485	$	14,824,082	$	(14,411,513	)	$	417,054

Six Month

					Additional
	Common Stock				Paid-In		Accumulated
	Shares		Amount		Capital		Deficit			Total
BALANCES, May 31, 2021		25,302,122	$	2,530	$	8,440,302	$	(9,098,257	)	$	(655,425	)
Stock issued for common stock payable		400,000		40		99,960		—			100,000
Stock issued for services
Stock issued for investments		547,065		55		228,766		—			228,821
Net loss		—		—		—		(1,430,071	)		(1,430,071	)
BALANCES, November 30, 2021		32,787,446	$	3,279	$	10,860,040	$	(10,528,328	)	$	334,991
BALANCES, May 31, 2022		44,854,737	$	3,357	$	12,690,871	$	(11,974,041	)	$	720,187
Share issued for advances from related parties		9,740,543		974		1,820,508		—			1,821,482
Shares issued for accounts payable – long term		1,069,519		107		199,893		—			200,000
Shares issued for common stock payable		470,239		47		112,810		—			112,857
Net loss		—		—		—		(2,437,472	)		(2,437,472	)
BALANCES, November 30, 2022		44,854,737	$	4,485	$	14,824,082	$	(14,411,513	)	$	417,054

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements.

F-4

MJ HARVEST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

For the six months ended November 30, 2022 and 2021


	Nine months ended
	February 28,			February 28,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(3,952,131	)	$	(1,757,356	)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization		23,364			15,030
Share based compensation		—			358,116
Advances to related party for services		210,000			210,000
Common stock payable for compensation		—			102,857
Amortization of note payable discount		2,153,290			550,000
Fair value of put option		82,415			—
Changes in operating assets and liabilities:
Accounts receivable		—			(13,232	)
Vendor deposits		—			(10,000	)
Inventory		(863,879	)		(63,240	)
Prepaids and other current assets		(94,333	)		—
Accounts payable and accrued expenses		233,396			92,014
Accrued interest payable		279,086			—
Accrued rent payable - related party		510,419			—
Payables to related parties - current		251,283			—
Payables to related parties - long term		54,117			186,599
NET CASH USED IN OPERATING ACTIVITIES		(1,112,973	)		(329,212	)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of investment in equity securities		(10,000	)		—
Acquisition of equipment		(24,714	)		—
NET CASH USED IN INVESTING ACTIVITIES		(34,714	)		—
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Diagonal convertible notes payable		103,750			—
Proceeds from SMC convertible notes payable - related party		1,460,000			—
Proceeds from advances by related parties		44,388			213,500
Payments on advances from related parties		(48,000	)		—
Principal payments on Satellite note payable		(291,667	)		—
NET CASH PROVIDED BY FINANCING ACTIVITIES		1,268,471			213,500
NET CHANGE IN CASH AND CASH EQUIVALENTS		120,784			(115,712	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		40,887			123,319
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	161,671		$	7,607
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Shares issued for common stock payable	$	112,857		$	100,000
Shares issued for investments		—			2,091,666
Shares issued for advances from related parties		1,821,482			—
Shares issued for accounts payable - long term		200,000			—
Right to use asset acquired with lease liability		3,505,897			—
License agreement acquired with Satellite note payable		632,066			—
Equipment acquired with Satellite note payable		270,886			—

	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$	(2,437,472	)		(1,430,071	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		15,576			10,020
Share based compensation		—			347,606
Amortization of note payable discount		1,319,047			550,000
Compensation paid with payable to related parties		140,000			140,000
Fair value of put option		78,294			—
Changes in operating assets and liabilities:
Accounts receivable		—			(15,700	)
Prepaids and other current assets		(28,146	)		—
Inventories		(763,143	)		(334	)
Accounts payable and other current liabilities		54,957			73,879
Payables to related parties - current		651,552			71,814
Payables to related parties – long term		66,300			—
NET CASH USED IN OPERATING ACTIVITIES		(903,035	)		(252,786	)
CASH FLOW FROM INVESTING ACTIVITES
Acquisition of investment in equity securities		(10,000	)		—
Acquisition of equipment		(24,714	)		—
NET CASH USED IN INVESTING ACTIVITIES		(34,714	)		—
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Diagonal convertible notes payable		103,750			—
Proceeds from SMC convertible notes payable		1,025,000			—
Proceeds from advances from related parties		—			153,500
Payments on advances from related parties		(15,000	)		—
Principal payments on Satellites note payable		(166,667	)		—
NET CASH PROVIDED BY FINANCING ACTIVITIES		947,083			153,500
NET CHANGE IN CASH AND CASH EQUIVALENTS		9,334			(99,286
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		40,887			123,319
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	50,221		$	24,033
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Shares issue for investment in equity securities					2,091,666
Share issued for advances from related parties		1,821,482			—
Shares issued for accounts payable – long term		200,000			—
Shares issued for common stock payable		112,857			100,000
Right to use asset acquired with lease liability		3,505,897			—
License agreement acquired with Satellite note payable		632,066			—
Equipment acquired with Satellite note payable		270,886			—

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements.

F-5

NOTE 1 – NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

MJ Harvest, Inc. (the “Company”), develops, acquires, and distributes agricultural and horticultural tools and implements for sale primarily to growers and operators in the hemp and cannabis retail industry. The Company owns 100% of G4 Products LLC, (“G4”) ~~which~~ which owns intellectual property for a patented manual Debudder product line marketed under the Original 420 Brand as the Debudder Bucket ~~Lid~~ Lid and Edge (“Debudder”). The Company also owns 100% of AgroExports LLC (“Agro”) which serves as the domestic ~~and~~ and international distribution arm for sales of agricultural and horticultural tools and implements. The Company operates a sales portal website, www.procannagro.com, for online sales ~~of its products.~~o

f its products.

In 2019, the Company formed AgroExports.CA ULC (“Agro Canada”), a wholly owned Canadian subsidiary in order to facilitate online payments from sales in Canada. Sales in Canada are currently serviced through a fulfillment center in Toronto.

In the year ended May 31, 2021, the Company expanded its focus to include a minority investment interest in PPK Investment Group, Inc. (“PPK”), a vertically integrated cannabis company in Oklahoma that operates as a grower, harvester, processor, manufacturer and distributor of the Country Cannabis Brand of cannabis products. The investment in PPK represents a shift in focus from an agricultural implements-based business to a broader cannabis industry focus. The Company has continued to expand its cannabis focus in the current year with new investments in WDSY LLC and BLIP Holdings LLC, owners of the Weedsy and BLVK brands, respectively.

In the year ended May 31, 2022, the Company began operations in Colorado under a wholly-owned Colorado corporation, Country Cannabis, Inc. (“CCCO”). CCCO is in the process of acquiring cannabis licenses for the manufacture and distribution of products containing THC and/or THC derivatives. Pending transfer of the licenses, the Company is operating the Colorado facility pursuant to a license agreement with the current owner of the facility.

On July 18, 2022, the Company acquired manufacturing equipment and two cannabis licenses for a cannabis manufacturing and distribution business in Cathedral City, California, CCCA. CCCA is in the process of acquiring cannabis licenses for the manufacture and distribution of products ~~containing~~ containing THC and/or THC derivatives. Pending transfer of the licenses, the Company is operating the California facility pursuant to a license agreement with the current owner of the facility.

Basis of Presentation and Consolidation

The Company’s fiscal year end is May 31. Our unaudited financial statements have been prepared by the Company in accordance with generally ~~accepted~~ accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair statement of the interim financial statements have been included. Operating results for the three and ~~six~~nine-month periods ended ~~November~~February 3028, ~~2022~~2023 are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2023.

For further information refer to the financial statements and footnotes thereto in the Company’s audited financial statements for the year ended May 31, 2022, in the Form 10-K as filed with the Securities and Exchange Commission.

The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries Agro, G4, Agro Canada, and CCCO/CCCA. All subsidiaries were wholly owned in the periods presented. All intercompany transactions have been eliminated.

Going Concern

The Company has an accumulated deficit as of ~~November~~February 3028, ~~2022~~ 2023 of $1415,~~411~~926,~~513~~172 and negative working capital of $35,~~979~~632,~~419~~046. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

F-6

Management intends to finance operating costs over the next twelve months with cash flows from operations, private placement or public offering of common stock or debt instruments, and when necessary, advances from directors and officers. There can be no assurance that we will be successful to procure necessary financing. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Share based compensation, impairment of long-lived assets, fair value of acquired assets, of intangible assets, and income taxes are subject to estimates. Actual results could differ from those estimates.

New Accounting Standards

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years and with early adoption permitted. The Company implemented the update early on June 1, 2022 with no impact to its consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The update is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company will adopt the update as of June 1, 2023 and does not expect a significant impact to our consolidated financial statements or disclosures.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

Revenue Recognition

The Company generates revenue based on sales of products and revenue is recognized when the Company satisfies its performance obligation by shipping products to our customers. Our products consist of wholesale cannabis products, and agricultural tools and implements, soils, and soil additives used primarily in growing and harvesting hemp and marijuana. Shipments terms are FOB origination, and revenue is recognized when the product is delivered to the shipper by our fulfillment centers or, in the case of drop shipments of distributed products, when the products are shipped from the manufacturer. At the time the products are delivered to the shipper, no other performance obligations remain. Revenue is recognized in an amount that reflects the consideration that is received in exchange for the products shipped.

The Company accounts for shipping and handling activities as a fulfillment cost and include fees received for shipping and handling as part of the transaction price. Provision for sales incentives, discounts, and returns and allowances, if applicable, are accounted for as reductions of revenue in the period the related sales are recorded. Sales incentives, discounts and returns and allowances were not material in the periods presented in the accompanying consolidated financial statements. The Company had no warranty costs associated with the sales of its products in the periods presented in the accompanying consolidated statements of operations and no provision for warranty expenses has been included.

F-7

Inventory

Inventory consists of purchased products and is stated at the lower of cost or market, with cost being determined using the average cost method. Allowances for obsolete inventory are recognized when the inventory is determined to be unsalable through the normal course of business.

Investments

Equity securities are generally measured at fair value. Unrealized gains and losses for equity securities are included in earnings. If an equity security does not have a readily determinable fair value, the Company may elect to measure the security at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer. At the end of each reporting period, the Company reassesses whether an equity security without a readily determinable fair value qualifies to be measured at cost minus impairment, considers whether impairment indicators exist to evaluate whether the investment is impaired and, if so, records an impairment loss. Upon sale of an equity security, the realized gain or loss is recognized in earnings.

Accounting for Acquisitions

Business acquisitions are recorded using the acquisition method of accounting and, accordingly, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair value as of the date of acquisition. After the purchase price has been allocated, goodwill is recorded to the extent the total consideration paid for the acquisition, including the acquisition date fair value of contingent consideration, if any, exceeds the sum of the fair values of the separately identifiable acquired assets and assumed liabilities. Acquisition costs for business combinations are expensed when incurred.

Acquisitions not meeting the accounting criteria to be accounted for as a business combination are accounted for as an asset acquisition. An asset acquisition is recorded at its purchase price, inclusive of acquisition costs, which is allocated among the acquired assets and assumed liabilities based upon their relative fair values at the date of acquisition.

The operating results of an acquisition are included in the consolidated statements of operations from the date of acquisition.

The allocation of the purchase consideration for acquisitions can require extensive use of accounting estimates and judgments to allocate the purchase consideration to the assets acquired and liabilities assumed based on their respective fair values. Judgment is required in determining which valuation technique should be applied. Critical estimates in valuing certain identifiable assets include but are not limited to market comparables, expected long-term revenues; future expected operating expenses; cost of capital; assumed attrition rates; and discount rates.

Intangible Assets

Intangible asset amounts are initially recognized at the acquisition date at the fair values of the intangible assets acquired.

Finite-lived intangible assets are amortized over their useful lives. The carrying amounts of finite-lived intangible assets are evaluated for recoverability whenever events or changes in circumstances indicate that the Company may be unable to recover the asset’s carrying amount.

F-8

When there is no foreseeable limit on the period of time over which an intangible asset is expected to contribute to the cash flows of the Company, an intangible asset is determined to have an indefinite life. Indefinite-lived intangible assets are not amortized but tested for impairment annually or more frequently when indicators of impairment exist.

F-8

Determination of acquisition date fair values and intangible asset impairment tests require judgment. Significant judgments required to estimate the fair value of intangible assets include determining the appropriate valuation method, identifying market prices for similar type items, estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates.

Net Loss Per Share

Basic loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted loss per share is calculated by dividing net loss by the weighted average number of common shares and dilutive common stock equivalents outstanding. During periods in which the Company incurs losses, common stock equivalents, if any, are not considered, as their effect would be anti-dilutive. For the ~~six~~nine months ended ~~November~~February 3028, ~~2022~~2023 and ~~2021~~2022, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share because they were anti-dilutive are as follows:

Schedule of Earnings Per Share, Basic and Diluted

	2022		2021
	2023		2022
Stock purchase warrants		3,000,000		3,000,000
Convertible notes		2327,~~873~~233,~~342~~279		—
		26,873,342		3,000,000
		30,233,279		3,000,000

Share-Based Payments

All transactions in which goods or services are received for the issuance of shares of the Company’s common stock are accounted for based on the fair value of the common stock issued and recognized when the board of directors authorizes the issuance.

NOTE 2 – EQUIPMENT

Equipment consisted of the following at February ~~November 30~~28, ~~2022~~2023 and May 31, 2022:

Schedule of equipment

	November 30,			May 31,
	February 28			May 31,
	2022			2022
	2023			2022
Equipment - production molds	$	49,823		$	25,109
Manufacturing equipment		301,723			30,837
Less: Accumulated amortization		(2731,~~386~~424	)		(19,310	)
Net Equipment	$	~~324~~320,~~160~~122		$	36,636

Depreciation ~~expense~~ expense for the three and ~~six~~nine months ended ~~November~~February 3028, ~~2022~~2023 and ~~2021~~2022 was $4,038 (~~2021~~2022: $1,260) and $812,~~076~~114 (~~2021~~2022: $23,~~520~~780), respectively.

During the ~~six~~nine month period ended ~~November~~February 3028, ~~2022~~2023, the Company acquired manufacturing equipment with a value of $270,886 for its California operations. The acquisition was acquired with a note payable with Satellite Dip, LLC. (“Satellite”). See Note 4. At ~~November 30,~~February ~~2022~~28, 2023, the equipment has not yet been placed in service and no depreciation has been recognized for the equipment.

NOTE 3 - INTANGIBLE ASSETS

The Company’s intangible assets consist of both finite and indefinite lived assets. At ~~November~~February 3028, ~~2022~~2023 and May 31, 2022, intangibles assets are:

F-9

	November 30,			May 31,
	February 28			May 31,
Intangibles	~~2022~~2023			2022
Finite lived intangibles
Patents	$	250,000		$	250,000
Less: impairment of patents		(100,000	)		(100,000	)
		150,000			150,000
Less: accumulated amortization		(4650,~~666~~416	)		(39,166	)
Patents, net		~~103~~99,~~334~~584			110,834
Total finite lived intangibles		~~103~~99,~~334~~584			110,834
Indefinite lived intangibles
Domain names		6,000			6,000
Total intangibles	$	~~109~~105,~~334~~584		$	116,834

Amortization expense for both the three and six months ended November 30, 2022 and 2021 was $3,750 and $7,500, respectively. The patents are amortized over their useful lives of ten years. Amortization of intangibles is expected to be $15,000 for each of the next five years.F-9

Amortization expense for both the three and nine months ended February 28, 2023 and 2022 was $3,750 and $11,250, respectively. The patents are amortized over their useful lives of ten years. Amortization of intangibles is expected to be $15,000 for each of the next five years.

On May 28, 2021, the Company acquired the domain name, MJHI.com for $6,000. The new domain name matches the Company’s stock symbol and is likely to be easier for customers and other stakeholders to remember. The domain name is an indefinite lived intangible asset and will not be amortized.

See Note 10 regarding acquisition of cannabis licenses during the ~~six~~nine months ending ~~November~~February 3028, ~~2022~~2023.

NOTE 4 – INVESTMENTS

At ~~November~~ 30February 28, ~~2022~~2023 and May 31, 2022, investments are:

Schedule of investments

	November 30		May 31,
	February 28		May 31,
Investments	~~2022~~2023		2022
PPK Investment Group, Inc.	$	2,791,666	$	2,791,666
Satellite Dip, LLC		10,000		—
WDSY, LLC		200,000		200,000
BLIP Holdings, LLC		100,000		100,000
Total investments	$	3,101,666	$	3,091,666

PPK

On March 24, 2021, the Company, as lender, closed a loan to PPK Investment Group, Inc. (“PPK”) in the form of a convertible note (“Note”) in the amount of $620,000. The convertible note bore interest at 6% per annum and was due on September 1, 2021. In accordance with its terms, the Company converted the Note on May 19, 2021 into a 6.2% interest in PPK. Upon conversion, accrued interest of $5,707 was forgiven.

Upon conversion, a Securities Purchase Agreement dated March 24, 2021 (the “PPK Agreement”) became effective and the Company acquired an additional 3.8% interest in PPK (10% in total) for payment of $380,000 by issuance of 1,520,000 shares of the Company’s restricted common stock. The total fair value of shares issued was $972,800 based on the closing price of the Company’s shares of $0.64. The Company determined that the fair value of the 3.8% interest on the conversion date was $380,000 which was the negotiated price between the two parties. Thus, the Company recorded an impairment expense of $592,800 on the conversion date.

On August 26, 2021, the Company acquired an additional 15% interest in PPK (25% ownership in total) pursuant to a Securities Purchase Agreement with an effective date of May 19, 2021 through issuance of 5,972,222 shares of restricted common stock valued at $1,791,666 based on the closing price of the Company’s common stock, which was $0.30 per share as of August 16, 2021, the date fixed by agreement for pricing the issuance of the shares. The additional 15% acquisition under the Securities Purchase Agreement called for payment of $930,000 in cash and $570,000 in stock, but by supplemental agreement, PPK agreed to accept payment for 15% in the form of all common stock of the Company.

F-10

The PPK Agreement includes a put option allowing PPK to put shares of the Company’s common stock received as part of the Company’s ~~investment~~ investment in PPK, back to the Company at $0.25 per share. The put option protects PPK against a drop in the market price of the Company’s common stock below a $0.25 per share. The put option may be exercised after ~~six~~nine months from the date of each investment. No more than 5% of the total shares held by PPK can be put back to the Company in any calendar quarter. Prior to the ~~three~~nine month period ended ~~November~~February 3028, ~~2022~~2023, the trading price of the Company’s stock was above the $0.25 put price thus no value was assigned to the option. At ~~November~~February 3028, ~~2022~~2023, the trading price was $0.~~041~~03 per share and the put option had value of $7882,~~294~~414. The amount was recognized as a fair value of put option expense in the condensed consolidated statement of operations and a corresponding liability on the condensed consolidated balance sheet. The put option continues so long a PPK holds shares of MJHI that it received as part of MJHI’s investment in PPK.

The PPK Agreement gives the Company the right to increase its investment up to a 100% ownership interest in PPK, provided such increased ownership is in compliance with Oklahoma State cannabis licensing requirements. Terms of purchase for increased ownership of PPK will be similar to those as the initial acquisition with a combination of cash and shares of the Company’s common stock.

The Company, pursuant to the PPK Agreement, is also obligated to pay an earnout to PPK as follows:

● The Company is required to pay additional consideration to PPK for an earnout in the event the PPK business valuation at the end of a pre-determined look back period is greater than $10,000,000. For purposes of the earnout, the valuation will be based on three times earnings before interest, taxes, depreciation, and amortization (EBITDA). If EBITDA exceeds $3,333,333 in the twelve months immediately preceding the look back date of March 31, 2023, additional consideration will be owed to PPK under the earnout in an amount sufficient to equal the earnout valuation less $10,000,000 times the percentage of PPK then owned by the Company. Such additional consideration will be paid 62% in cash and 38% in shares of the Company’s common stock. No liability has been accrued for this potential obligation as the Company has assessed the probability of an obligation being incurred to be remote as of ~~November~~February 3028, ~~2022~~2023.

●

The Company also entered into an employment agreement with Ralph Clinton Pyatt III (“Clinton Pyatt”), President of PPK, to continue his role as Chief Executive Officer and President of PPK business for a three-year term effective May 22, 2021.

The Company also has an option to acquire the real estate that PPK uses in its operations. The real estate is currently under lease to PPK by an affiliated company owned by Clinton Pyatt, the President of PPK.

At ~~November~~February 3028, ~~2022~~ 2023 and May 31, 2022, the Company has a payable due to PPK of $~~460~~481,~~313~~807 and $230,524, respectively. The balance is included in payable to related parties on the condensed consolidated balance sheets.

WDSY and BLIP

On October 8, 2021, the Company entered into two brand development agreements with WDSY, LLC (“WDSY”) and Blip Holdings, LLC (“BLIP”) for expansion of the WEEDSY and BLVK brands, respectively, into Oklahoma and South Dakota. Under the agreements, PPK will manufacture and distribute these brands in Oklahoma and South Dakota and will pay the respective companies 10% royalties on all net sales of the branded products in those territories.

On October 8, 2021, the Company acquired a 10% interest in WDSY in exchange for 377,358 shares of the Company’s common stock and a 10% interest in BLIP in exchange for 188,679 shares of the Company’s common stock. The shares to be issued were valued at the closing price of the common stock, $0.53 per share, on October 8, 2021.

F-11

Additional shares may be due to WDSY and BLIP based on lookback valuations of both companies. The lookback valuations will be based on trailing twelve months sales for WDSY and trailing three-month sales for BLIP on the second anniversary of each agreement, or sooner if the agreements are terminated before the second anniversaries. At ~~November~~February 3028, ~~2022~~2023, management has assessed the probability of a potential liability due under the lookback valuation provisions of WDSY and BLIP to be low and no stock payable was due. No liability has been accrued for this potential obligation as the Company has assessed the probability of an obligation being incurred to be remote as of ~~November~~February 3028, ~~2022~~ 2023. Brand royalties are due by the Company for sales of WDSY. See Note 8.

Satellites Dip, LLC

On June 7, 2022, the Company purchased 1% membership units of Satellites Dip, LLC (“Satellites”) for $10,000. The Company has a note payable to Satellites for the purchase of a license and equipment. See Note 5.

The Company evaluated its investment as of ~~November~~February 3028, ~~2022~~2023 and identified no indicators of possible impairment on their carrying values.

NOTE 5 – NOTES PAYABLE

SMC Convertible Note Payable

On May 11, 2022, the Company entered into an agreement with SMC Cathedral City Holdings, LLC, a Delaware limited liability company (“SMC-CCH”) for the sale of Secured Convertible Promissory Note (the “Note”). Steve MacDonald, president of SMC-CCH, is a shareholder and related party of the Company. The Note provides for an original issue discount of 35%, bears interest at the rate of 12%, and is due at maturity which is twelve months from the issue date of the Note or May 10, 2023. The Note is secured by all assets of the Company.

Any principal amount or interest on the Note that is not paid when due will bear interest at the lesser of 16% or the maximum amount permitted by law.

The principal amount of the Note and interest may be converted at any time following the issue date into fully paid and nonassessable shares of the Company’s common stock at a conversion price of $0.20 per share. The number of shares issuable upon conversion is limited to 4.99% of the outstanding shares at the time of conversion, unless waived by SMC-CCH upon 61 days prior written notice.

So long as any balance due on the Note remains outstanding, the Company has agreed to apply 50% of proceeds from issuance of debt or equity securities, conversion of outstanding warrants, issuance of securities pursuant to an equity line of credit, or the sale of assets, to reduce the outstanding balance of the Note.

During the year ended May 31, 2022, the Company received a portion of the proceeds with a principal balance of $1,963,439 and original interest discount of $692,439 for net proceeds of $1,271,000. On the date of receipt of the proceeds, the trading price of the Company’s common stock exceeded the conversion price of the Note and the Company recognized a beneficial conversion feature of $1,498,757 as additional paid in capital. Of this amount, $1,271,000 was additional discount on the note payable and $227,566 was recognized as financing costs in the year ended May 31, 2022.

During the ~~six~~nine months ended ~~November~~February 3028, ~~2022~~2023, the Company borrowed additional funds under the note that had a principal balance of $12,~~963~~255,~~439~~ 406 and original interest discount of $~~558~~795,~~419~~406 for net proceeds of $1,~~025~~460,000.

At ~~November~~February 3028, ~~2022~~2023, the outstanding principal balance is $34,~~546~~218,~~858~~845 and unamortized discount is $1544,~~123,607~~582 for a net balance of $23,~~423~~674,~~251~~263. During the three and ~~six~~nine months ended ~~November 30~~February 28, ~~2022~~2023, the Company recognized $95112,~~448~~696 and $~~166~~279,~~390~~086 respectively in interest expense on the note and recognized $~~756~~816,~~072~~012 and $12,~~290~~106,~~666,~~678 respectively, for the amortization of the note discount. At ~~November~~February 3028, ~~2022~~2023 and May 31, 2022, the accrued interest payable balance on the note is $~~179~~291,~~300~~996 and $12,910, respectively, which is included in ~~payables~~accrued –interest ~~related~~payable ~~parties~~ on the condensed consolidated balance sheet.

F-12

At May 31, 2022, the Company has a balance owing to Steve MacDonald $50,000 for advances was included in payables to related parties – long term on the condensed consolidated balance sheets. The balance was satisfied with shares of the Company’s common stock during the ~~six~~ nine months ended ~~November~~February 3028, ~~2022~~2023. See Note 7. At ~~November~~February 3028, ~~2022~~2023, the Company has a balance owing to a company controlled by Mr. MacDonald of $~~291~~510,~~668~~419 for unpaid rent. This amount is included in ~~payables~~accrued torent payable – related ~~parties~~party on the condensed consolidated balance sheets.

Diagonal Convertible Note Payable

On June 17, 2022, the Company entered into an agreement with 1800 Diagonal Lending, LLC (“Diagonal”) whereby the Company issued convertible note to Diagonal with a principal amount of $103,750. The note bears interest at 10% and has a term of one year when payment of principal and interest is due. After 180 days, the note is convertible into shares of the Company’s common stock the number of which determined by dividing the principal balance outstanding by 65% of the trading price of the Company’s stock on the date of the conversion.

Satellites Note Payable

On July 13, 2022, the Company entered into an unsecured promissory note with Satellites that had a stated principal balance of $1,000,000 in exchange for the Company acquiring a license agreement and equipment from Satellites. See Note 10. The note is non-interest bearing and has a term of 24 months. Monthly payments of $41,657 are due starting August 1, 2022. Because the note is non-interest bearing, the Company recorded a discount on the note of $97,048 using a discount rate of 10%. The discount is being amortized over the term of the note. Amortization of the discount was $2018,~~857~~232 and $2846,~~382~~614, respectively, during the three and ~~six~~nine month periods ended ~~November~~February 3028, ~~2022~~2023.

NOTE 6 – RELATED PARTY TRANSACTIONS

In addition to related party transactions described in Notes 4 and 5, the Company had the following related party activity:

Payables to Related Parties:

During three and nine ~~six~~ month period ended ~~November~~February 3028, ~~2022~~2023, the Company recognized expense of $23,709 (~~2021~~2022: $23,709) and $65,000 (~~2021~~2022: $65,000), respectively, for services performed by a company owned by the former chief financial officer (CFO). At May 31, 2022, the Company had a balance due to the former CFO’s company of $197,683. During the ~~six~~nine month period ended ~~November~~February 3028, ~~2022~~2023, the Company paid $150,000 in the ~~form~~ form of shares of its common stock to reduce the amount of the accounts payable due to the CFO, See Note 7. During the ~~six~~nine month period ~~ended~~ ~~November~~ended 30February 28, ~~2022~~2023, the remaining amount due was converted to a note payable. The note bears interest at 5% and matures on July 31, 2024. The balance of the note payable at ~~November~~February 3028, ~~2022~~2023 is $6654,~~300~~117 and is included in payable to related party – long term on the condensed consolidated balance sheet.

At ~~November~~ ~~30,~~February ~~2022~~28, 2023, the Company has a $~~117~~162,000 note payable to the president of the Company for accrued compensation. The note bears interest at 6% and was due on January 1, 2023. The amount is included in payable to related party on the condensed consolidated balance sheets. During the three and ~~six~~nine month periods ended ~~November~~February 3028, ~~2022~~2023 and ~~2021~~2022, the Company recognized officer compensation expense of $~~70,000~~ -0- (~~2021~~2022: $70,000) and $~~140~~170,000 (~~2021~~2022: $~~140~~210,000), respectively.

At ~~November~~ ~~30,~~February ~~2022~~28, 2023, the Company has a balance due to Cannabis Sativa, Inc., with whom the Company plans to merge, of $1944,388 (see Note 10). The amount is included in ~~payable~~advances tofrom related ~~party~~parties on the condensed consolidated balance sheets. The money was advanced from Cannabis Sativa, Inc. to cover operating expenses.

Advances from Related Parties:

At May 31, 2022, the Company had advances from, and costs of services provided by, related parties totaling $1,821,482. These amounts were ~~classified~~ classified as long-term liabilities and were settled with shares of the Company’s common stock in July 2022. See Note 7. During the three and nine months ended February 28, 2023, the Company’s chief executive officer earned $70,000 and $240,000, respectively, in compensation which was reflected as an increase in advances due to him. During the nine months ended February 28, 2023, the Company paid $48,000 on the advance.

F-13

During the ~~six~~nine month period ended ~~November~~February 3028, ~~2021~~2022, the Company had the following activity in its related party advances balance:

Schedule of related party transactions

	Related Party Advances at		Additions During the ~~Six~~Nine Months Ended ~~November~~February 3028, ~~2021~~2022				Related Party Advances at
	May 31, 2021		Advances		Services		~~November~~February 3028, ~~2021~~2022
Related Parties
Patrick Bilton, CEO and Director
Cash Advances	$	928,414	$	~~151~~211,500	$	—	$	1,~~079~~139,914
Payable for services		280,000		—		~~140~~210,000		~~420~~490,000.0
David Tobias, Director		80,553		2,000		—		82,553.0
Jerry Cornwell, Director		29,015		—		—		29,015
Total for related parties	$	1,317,982	$	~~153~~213,500	$	~~140~~210,000	$	1,~~611~~741,482

NOTE 7 – SHARE CAPITAL

In the ~~six~~nine month period ended ~~November~~February 3028, ~~2022~~2023, shares were issued for stock payable, conversion of advances from related parties and conversion of accounts payable in the amounts set forth in the following table.

Schedule of conversion accounts payable

			Value of Shares Issued for:
Six Months Ended November 30, 2022	Total Shares Issued		Stock Payable		Conversion of Advances		Conversion of Accounts Payable		Total Value
Nine Months Ended February 28, 2023	Total Shares Issued		Stock Payable		Conversion of Advances		Conversion of Accounts Payable		Total Value
Related Parties
David Tobias, Director		477,779	$	10,000	$	81,553	$	—	$	91,553
Jerry Cornwell, Director		155, 158		—		29,015		—		29,015
Patrick Bilton, CEO		9,149,272		—		1,710,914		—		1,710,914
Brad Herr, CFO		864,638		15,000		—		150,000		165,000
Jason Roth, Director		41,667		10,000		—		—		10,000
Rich Turasky, Director		41,667		10,000		—		—		10,000
Randy Lanier, Director		220,238		52,857		—		—		52,857
Total for related parties		10,950,419		97,857		1,821,482		150,000		2,069,339
Unrelated Parties		329,882		15,000		—		50,000		65,000
Aggregate Totals November 30, 2022		11,280,301	$	112,857	$	1,821,482	$	200,000	$	2,134,339
Aggregate Totals February 28, 2023		11,280,301	$	112,857	$	1,821,482	$	200,000	$	2,134,339

Prior to the nine ~~six~~ months ended ~~November~~February 3028, ~~2022~~2023, the Company paid its directors and certain consultants in shares of the Company’s common ~~stock~~ stock for payment of services rendered. Effective June 1, 2022, the Company determined that it would no longer pay in shares of the Company’s common stock in anticipation of its potential merger with Cannabis Sativa, Inc. (see Note 10).

FIn the nine-14month period ended February 28, 2022, shares were issued for services and investment in the amounts set forth in the following table.

In the six-month period ended November 30, 2021, shares were issued for services and investment in the amounts set forth in the following table.

			Value of Shares Issued for:
Six Months Ended November 30, 2021	Total Shares Issued		Stock Payable		Services		Investments		Total Value
Nine Months Ended February 28, 2022	Total Shares Issued		Stock Payable		Services		Investments		Total Value
Related Parties
David Tobias, Director		2954,377	$	––—	$	1020,000	$	—	$	1020,000
Jerry Cornwell, Director		2954,377		—		1020,000		—		1020,000
Brad Herr, CFO		4481,~~066~~566		—		1530,000		—		1530,000
Randy Lanier, Director		25155,~~179~~475		—		877,~~571~~356		—		877,~~571~~356
Total for related parties		~~127~~345,~~999~~795		—		43147,~~571~~356		—		43147,~~571~~356
Unrelated Parties		7,~~357~~421,~~325~~035		100,000		~~185~~210,~~250~~760		2,091,666		2,~~376~~402,~~916~~426
Aggregate Totals November 30, 2021		7,485,324	$	100,000	$	228,821	$	2,091,666	$	2,420,487
Aggregate Totals February 28, 2022		7,766,830	$	100,000	$	358,116	$	2,091,666	$	2,549,782

F-14

NOTE 8 – REVENUE

The Company ’s product revenue is generated though sales of Wholesale Cannabis Products and sales of its Debudder products which are produced by third parties and distributed by the Company.

The following table shows total revenue for the three and ~~six~~nine-month periods ended ~~November~~February 3028, ~~2022~~2023 and ~~2021~~2022:

Schedule of revenues

	Three months ended November 30,		Six months ended November 30,
	Three months ended February 28,		Nine months ended February 28,
Wholesale Cannabis Product Revenue	~~2022~~2023		~~2022~~2023
Colorado	$	4745,~~593~~564	$	86131,~~245~~809
California		76336,~~753~~098		82418,~~020~~119
		124,346		168,265
		381,662		549,928
Debudder Revenue		~~141~~578		~~901~~1,467
Total	$	124,487	$	169,166
Other		—		9,359
Total	$	382,240	$	560,754

~~There was no revenue from Wholesale Cannabis Products for during the same time periods in 2021.~~ All revenue for the same periods in ~~2021~~2022 was from Debudder sales. All sales were domestic in the three and ~~six~~nine month periods ended ~~November~~February 3028, ~~2022~~2023. All Debudder sales were domestic except for $~~23,760~~94 and $23,~~852~~ 946 in the three and ~~six~~nine month periods ended ~~November~~February 3028, ~~2021~~2022.

For Wholesale Cannabis Products, we have Brand agreements that requires the Company to pay brand royalties on sales of that brand. For the three- and ~~six~~nine-month periods ended ~~November 30~~February 28, ~~2022~~2023, total brand royalties ~~due~~paid were $4,983 and $20,332, respectively, and are included in cost of revenue on the condensed statement of operations.

During the ~~six~~nine month period ended ~~November~~February 3028, ~~2022~~2023, sales of the Debudder product line were substantially reduced due to the focus of the Company turning to getting the Colorado and California Cannabis facilities up and running. ~~Once these operations are fully up and running the company plans to resume advertising and sales of the product line.~~

During the three and ~~six~~nine month periods ended ~~November~~February 3028, ~~2022~~2023, all debudder revenue were ~~from~~multiple ~~the~~customers ~~same~~for ~~customer~~individual use. During the three and nine ~~six~~ month periods ended ~~November~~February 3028, ~~2021~~2022, 98% and 97%, respectively, of debudder revenue was from four separate customers. Accounts receivable from cannabis revenue was $69,104 and $-0-, at February 28, 2023 and May 31, 2022, respectively and is included in prepaid and other current assets in the condensed consolidated balance sheets at February 28, 2023.

F-15

NOTE 9 – INVENTORY

Schedule of inventory

Inventory consists of the following:
	November 30, 2022		May 31, 2022
	February 28, 2023		May 31, 2022
Debudder products	$	24110,~~717~~013	$	24,794
Raw material - biomass		~~176~~67,~~082~~927		21,868
Raw material - distillate		101,189		76,916
Finished goods		~~658~~781,~~214~~809		73,481
Total	$	~~960~~1,~~202~~060,938	$	197,059

~~At November 30, 2022 and May 31, 2022, raw material – biomass is on consignment from a third~~F-party company with which the Company has a license agreement. Under the agreement, the Company obtains the third party from which it produces the cannabis products. The third party sells the product and reimburses the Company for manufacturing costs. The third party pays the Company 85% of net profits after reimbursement. The Company absorbs all losses from sale of the products. To date, the Company has not earned net profits under this arrangement.15

At February 28, 2023 and May 31, 2022, raw material – biomass, as listed above, is on consignment from a third-party company with which the Company has a license agreement. Under the agreement, the Company obtains the biomass from the third party from which it produces the cannabis products. The Company is required to split the revenue over the reduced purchase price for inventory 50/50 with the third party. The Company absorbs all losses from sale of the products. To date, the Company’s revenue for this product has not been greater than the reduced purchase price, therefore the Company nor the third- party has not earned any split revenue under this arrangement.

NOTE 10 – ACQUISITIONS AND PROPOSED MERGER

Acquisition of License Agreements and Equipment

On July 18, 2022, the Company acquired manufacturing equipment and two cannabis licenses for a cannabis manufacturing and distribution business located in Cathedral City, California. The Company paid $1,000,000 for the acquisition by issuance of an unsecured non-interest bearing note with Satellites payable in 24 monthly installments. The Company is currently operating the California facility under a management services agreement pending transfer of the licenses into the Company’s name. The purchase price was $902,952 which consisted of a note payable with a $1,000,000 principal balance discounted $97,048. The purchase price was allocated to the equipment for $270,886 and the licenses for $632,066 based on their relative fair value. Once payments have been made to reach 35% of the amount due, the Company can file with the CA DCC to start the process of transferring the license.

Merger with Cannabis Sativa, Inc.

On August 8, 2022, the Company entered into an Agreement of Merger and Plan of Reorganization dated August 8, 2022 with Cannabis Sativa, Inc. (“CBDS”), to be effective on the first business day following approval of the merger by the shareholders of the Company and CBDS. The merger agreement provides for the merger of the Company with and into CBDS, with CBDS as the surviving entity. Under the agreement, the Company’s ~~shareholders~~ shareholders will receive 2.7 shares of CBDS common stock for each one share of the Company’s common stock held immediately prior to the merger. Following the merger, the shareholders of the Company will hold approximately 72% of the total outstanding shares of common ~~stock~~ stock of the surviving company, and the shareholders of CBDS will hold approximately 28% of the total outstanding common shares of the ~~surviving~~ surviving company. Presently, the merger is still proceeding and is scheduled to close Q3 2023 of the calendar year, subject to shareholder approval.

NOTE 11 – LEASES

Colorado Lease: On January 1, 2022, the Company signed a lease for its office and facilities located in Denver, Colorado for a five year term. ~~Monthly~~ Monthly lease payments start at $6,000 and escalate to $7,293 in year five. Upon signing the lease, the Company recognized a lease liability and a right of use asset of $308,127 based on the two-year payment stream discounted using an estimated incremental borrowing rate of 10.0%. At ~~November~~February 3028, ~~2022~~2023, the remaining lease term is 43.088 years. As of ~~November~~February 3028, ~~2022~~2023, total future lease payments are as follows:

Future lease payments

For the year ended May 31,
Remaining 2023	$	3718,~~500~~900
2024		77,175
2025		81,033
2026		85,085
2027		51,051
Total		~~331~~313,~~844~~244
Less imputed interest		(5953,~~766~~216	)
Net lease liability		~~272~~260,~~078~~028
Current portion		(5153,~~001~~232	)
Long-term portion	$	~~221~~206,~~077~~796

F-16

For the three and nine ~~six~~months ended February 28, 2023, rent expense of $19,715 and $59,144, respectively was recognized for this lease. For the three and nine months ended ~~November~~February 3028, 2022, rent expense of $19,715 and $3919,~~430~~715, respectively was recognized for ~~this~~the lease.

California Lease: On July 14, 2022, the Company signed a lease for its office and facilities located in Cathedral City, California for a five year term. Monthly lease payments are $72,917. Upon signing the lease, the Company recognized a lease liability and a right of use asset of $3,505,897 based on the five-year payment stream discounted using an estimated incremental borrowing rate of 10.0%. At ~~November~~February 3028, ~~2022~~ 2023, the remaining lease term is 4.533 years. As of ~~November~~February 3028, ~~2022~~2023, total future lease payments are as follows:

Remaining 2023	$	437,502
2024		875,004
2025		875,004
2026		875,004
2027 and thereafter		1,020,838
Total		4,083,352
Less imputed interest		(756,919	)
Net lease liability		3,326,433
Current portion		(575,558	)
Long-term portion	$	2,750,875

Future lease payments

For the three and six months ended November 30, 2022, $218,751 and $291,668, respectively was recognized as rent expense for this lease. The lessor of the property is SMC Cathedral City Holdings, LLC, a company with which the Company has a convertible note payable due (See Note 5). This lease has not been paid to date as required by the lease agreement and the balance owed of $291,668 is included in payables to related party on the condensed consolidated balance sheet.


Remaining 2023	$	218,751
2024		875,004
2025		875,004
2026		875,004
2027 and thereafter		1,020,838
Total		3,864,601
Less imputed interest		(676,729	)
Net lease liability		3,187,872
Current portion		(590,067	)
Long-term portion	$	2,597,805

For the three and nine months ended February 28, 2023, $218,751 and $656,253, respectively was recognized as rent expense for this lease. The lessor of the property is SMC Cathedral City Holdings, LLC, a company with which the Company has a convertible note payable due (See Note 5). This lease has not been paid to date as required by the lease agreement and the balance owed of $510,419 is included in accrued rent payable – related party on the condensed consolidated balance sheet.

NOTE 12 – COMMITMENTS AND CONTINGENCIES

See Notes 4 and 11 for commitments related to royalties, earn-out provisions, and leases.

The Company and PPK are plaintiffs in lawsuit against Country Cannabis, LLC of Yale, Oklahoma for trademark infringement for the use of the name “Country Cannabis”. The lawsuit was filed with the Payne County, Oklahoma Courts on February 7, 2022. The Company has motioned the Court for summary judgment in this matter and for legal fees. The motion for summary judgement is currently pending before the Court. As of ~~November~~February 3028, ~~2022~~2023, management believes it will be successful in the matter however is unable to estimate amounts, if any, they could receive in the final judgment.

F-17

Filing Compare · MJ Harvest, Inc.