XML 19 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
4. INVESTMENTS
6 Months Ended
Jun. 30, 2018
Equity Method Investments And Joint Ventures [Abstract]  
INVESTMENTS

Note 4 – Investments

We own an 18.75% interest in Almaden Energy Group, LLC (“AEG”) outstanding membership interest units, which became effective April 15, 2015. The method of accounting for the investment is the equity method due to the company being controlled by Haris Basit, former CEO and current director of our company.

We entered into a Giant King Grass supply contract with Almaden Energy Group, LLC. (“AEG”) on April 13, 2015. AEG is developing an animal feed project in the United States for the domestic and global market. We granted AEG a license to grow Giant King Grass only for animal feed, nursery and research purposes anywhere within the 48 contiguous United States. AEG is permitted to sell Giant King Grass anywhere in the world with the exception of the State of Hawaii. The CEO of AEG is also the former CEO and current member of the Board of Directors of the Company. At June 30, 2018, we have one designated board seat provided that we maintain an equity ownership position greater than 5%.

Dividends are recognized in income when declared and totaled $0 for 2018 and 2017. The carrying value of the investment is $2,000 and $6,000 as of June 30, 2018 and December 31, 2017, respectively. We recorded other expense of approximately $4,000 in the Company’s Statements of Operation during the six months ended June 30, 2018, related to a loss on investment in AEG.

We also own an 18.75% interest in Viaspace California, Inc (“VSCA”), a company formed on March 1, 2018.  VSCA is developing a business related to Cannabidiol (“CBD”), a cannabis compound that has significant medical benefits. The method of accounting for the investment is the equity method because a shareholder and controlling shareholder, both directors of Viaspace, along with the company collectively, has more than 50% control of Viaspace California. Dividends are recognized in income when declared and totaled $0 for the period ending June 30, 2018. The carrying value of the investment is $0 as of June 30, 2018.