6. Construction in Progress

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

Construction in Progress

NOTE 6. CONSTRUCTION IN PROGRESS

As of September 30, 2019 and December 31, 2018, the Company had $1,647,204 and $1,563,260 respectively, in construction in progress. The facility acquired as part of the AMS acquisition is a 48,750 square foot marijuana grow facility built on a 6.7-acre parcel of land located in Hanover, Ontario, Canada. To date, the exterior construction of the building has been completed, however, no interior construction has begun.  Upon full completion, the facility will contain up to 20 separate growing rooms which the Company believes will provide an annual production capacity of 9,500 kilos of marijuana (20,900 lbs.).

The Company had $2,766 and $-0-, in equipment, respectively for the periods ended September 30, 2019, and December 31, 2018.

For construction in-progress assets, no depreciation is recorded until the asset is placed in service. When construction is completed, the asset should be reclassified as building, building improvements, or land improvement and should be capitalized and depreciated. Construction in progress includes all costs related to the construction of a medical cannabis facility. Cost also includes soft costs such as loan fees and interest and consulting fees and related expenses. The facility is not available for use and therefore not being amortized.