10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 10-Q

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x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2016
or
o	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:  000-53571

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Cannabis Sativa, Inc.

 (Exact name of registrant as specified in its charter)

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NEVADA	20-1898270
(State or Other Jurisdiction	(I.R.S. Employer
of Incorporation)	Identification No.)

1646 W. Pioneer Blvd., Suite 120, Mesquite, Nevada  89027

(Address of Principal Executive Office) (Zip Code)

(702) 346-3906

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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	☒

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 August 19, 2016 is 18,367,865.

Item 1.  Financial Statements.

CANNABIS SATIVA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
	Unaudited
	June 30,			December 31,
	2016			2015
Assets
Current Assets
Cash and Cash Equivalents	$	34,637		$	10,356
Digital Currency		59,416			5,203
Accounts Receivable, Net		15,629			4,190
Prepaids		545,256			—
Employee Advance		40			44
Inventories		28,890			24,937
Investment in Joint Venture		35,000			35,000
Total Current Assets		718,868			79,730
Property and Equipment, Net		4,095			4,504
Intangible Assets, Net		2,891,297			2,904,121
Investment		9,760			9,760
Due from Related Parties		248,182			248,182
Deposits		4,236			4,236
Advance		3,500			—
Total Assets	$	3,879,938		$	3,250,533
Liabilities and  Stockholders' Equity
Current Liabilities:
Accounts Payable and Accrued Expenses	$	166,889		$	344,395
Due to Related Parties - Short Term		167,212			27,427
Total Liabilities		334,101			371,822
Stockholders' Equity:
Preferred stock $0.001 par value; 5,000,000 shares authorized;732,018 and 428,585 issued and outstanding		732			428
Common stock $0.001 par value; 45,000,000 shares authorized;18,203,630 and 17,374,738 shares issued and outstanding, respectively		18,204			17,375
Stock Subscriptions Payable		100			14,303
Additional Paid-In Capital		57,999,044			56,938,810
Accumulated Deficit		(54,473,137	)		(54,093,099	)
Total Cannabis Sativa, Inc. Stockholders' Equity		3,544,943			2,877,817
Non-Controlling Interest		894			894
Total Stockholders' Equity		3,545,837			2,878,711
Total Liabilities and Stockholders' Equity	$	3,879,938		$	3,250,533
"The accompanying notes are an integral part of these condensed consolidated financial statements"

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CANNABIS SATIVA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
Revenues	$	50,730		$	617		$	65,817		$	1,719
Cost of Revenues		6,745			243			7,324			1,403
Gross Profit		43,985			374			58,493			316
General and Administrative Expenses		101,238			1,870,283			433,165			3,650,446
Loss from Operations		(57,253	)		(1,869,909	)		(374,672	)		(3,650,130	)
Interest Expense		1,310			9,203			5,366			17,064
Loss from Continuing Operations Before Discontinued Operations		(58,563	)		(1,879,112	)		(380,038	)		(3,667,194	)
Loss from Discontinued Operations		—			108,196			—			108,196
Loss Before Income Taxes		(58,563	)		(1,987,308	)		(380,038	)		(3,775,390	)
Income Taxes		—			—			—			—
Loss from Continuing Operations		(58,563	)		(1,987,308	)		(380,038	)		(3,775,390	)
Net Loss for the Period		(58,563	)		(1,987,308	)		(380,038	)		(3,775,390	)
Loss Attributable to Non-Controlling Interest		—			—			—			—
Net Income Loss Attributable To Cannabis Sativa, Inc.	$	(58,563	)	$	(1,987,308	)	$	(380,038	)	$	(3,775,390	)
Net Loss for the Period per Common Share:
Basic & Diluted Continuing Operations	$	(0.00	)	$	(0.12	)	$	(0.02	)	$	(0.24	)
Basic & Diluted Discontinued Operations	$	—		$	(0.01	)	$	—		$	(0.01	)
Weighted Average Common Shares Outstanding:
Basic & Diluted		17,414,182			16,037,238			17,404,786			15,929,210
"The accompanying notes are an integral part of these condensed consolidated financial statements"

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CANNABIS SATIVA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	For the Six Months Ended June 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss for the Period	$	(380,038	)	$	(3,775,390	)
Adjustments to Reconcile Net Loss for the Period to Net Cash Used in Operating Activities:
Depreciation and Amortization		13,456			77,092
Stock Issued for Services		1,263,225			3,162,125
Stock Returned - Legal Settlement		(479,558	)		—
Contributed Capital		—			16,426
Amortization of Prepaid		—			208,333
Imputed Interest on Loans		1,732			—
Changes in assets and liabilities:
Digital Currency		(48,282	)		—
Accounts Receivable		(11,439	)		—
Inventories		(3,953	)		661
Prepaids		(545,256	)		—
Employeee Advances		4			(31	)
Accounts Payable and Accrued Expenses		78,330			93,554
Accrued Interest		—			1,655
Net Cash Used in Operating Activities:		(111,779	)		(215,575	)
Net Cash Used in Discontinued Activities:		—			6,596
Cash Flows from Investing Activities:
Purchase of Fixed Assets and Intangibles		(225	)		(8,410	)
Advance		(3,500	)		—
Net Cash Used in Investing Activities:		(3,725	)		(8,410	)
Cash Flows from Financing Activities:
Payments to Related Parties		(2,515	)		(40,345	)
Proceeds from Related Parties		142,300			257,740
Net Cash Provided by Financing Activities:		139,785			217,395
NET CHANGE IN CASH AND CASH EQUIVALENTS		24,281			6
Cash and Cash Equivalents - Beginning of Period		10,356			25,994
Cash and Cash Equivalents - End of Period	$	34,637		$	26,000
Supplemental Disclosure of Cash Flow Activities:
Interest	$	—		$	—
Income taxes	$	—		$	—
Supplemental Disclosures of Non Cash Activities:
Contribution of Digital Currency	$	5,931		$	—
Conversion of Debt to Equity	$	255,834		$	—
Unrealized Gain on Available for Sale Securities	$	—		$	1,950
Shares Issued for Accrued Liabilities	$	15,000		$	362,250
Shares issued for Prepaid Items	$	—		$	3,162,125
Preferred Shares Issued for Related Party Payables	$	—		$	2,890,499
"The accompanying notes are an integral part of these condensed consolidated financial statements"

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CANNABIS SATIVA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Ended June 30, 2016 and 2015

 (Unaudited)

1. Summary of Significant Accounting Policies and Use of Estimates:

Presentation of Interim Information:

The condensed consolidated financial statements included herein have been prepared by Cannabis Sativa, Inc., formerly named Ultra Sun Corp. ("we", "us", "our" or "Company"), without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") and should be read in conjunction with the annual report on Form 10-k filed with the SEC May 6, 2016.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, as permitted by the SEC, although we believe the disclosures, which are made, are adequate to make the information presented not misleading. Further, the condensed financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position at June 30, 2016, and the results of our operations and cash flows for the periods presented.

Interim results are subject to significant seasonal variations and the results of operations for the period ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year.

Nature of Corporation:

We were incorporated under the laws of Nevada in November 2004 as Ultra Sun Corp. On November 13, 2013, we changed our name to Cannabis Sativa, Inc.   Our wholly-owned subsidiary Kush was acquired by us in June 2014 in exchange for shares of our common stock.  Our wholly-owned subsidiary Wild Earth Naturals, Inc. ("Wild Earth") was acquired by us in July 2013 in exchange for shares of our common stock.  The acquisition of Kush resulted in a change of control of the Company and at or after the closing of the acquisition of Kush, the persons designated by Kush became the officers and directors of the Company.  From our inception through September 30, 2013 we were engaged in the tanning salon business and operated a tanning salon in Saratoga Springs, Utah under the name "Sahara Sun Tanning."  As a result of our acquisition of Wild Earth in July 2013, we became engaged in the herbal skin care products business.  On September 30, 2013 we sold the assets of the tanning salon business to a third party.  As a result of our acquisition of Kush in June 2014, along with our Wild Earth operations we are now engaged in the developing and promoting of natural cannabis products.  On November 2, 2015, Kush was spun out of the Company.

Use of Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Accounts Receivable:

We estimate credit loss reserves for accounts receivable on an individual receivable basis. A specific impairment allowance reserve is established based on expected future cash flows and the financial condition of the debtor.  We charge off customer balances in part or in full when it is more likely than not that we will not collect that amount of the balance due.  We consider any balance unpaid after the contract payment period to be past due.  At June 30, 2016 the company has established an allowance for doubtful accounts of $-0-.

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Inventory:

The Company calculates inventory using the average cost method to value inventory.  Inventory cost includes those costs directly attributable to the product before sale.

Fair Value of Financial Instruments:

The estimated fair values for financial instruments are determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The carrying amounts of accounts payable, accrued liabilities, and notes payable approximate fair value given their short term nature or effective interest rates.

Cash and Cash Equivalents:

For financial accounting purposes, cash and cash equivalents are considered to be all highly liquid investments purchased with an initial maturity of three (3) months or less.

Earnings per Share:

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity.  As of June 30, 2016 and 2015, the Company has no outstanding potentially dilutive securities.

Revenue Recognition:

The Company recognizes revenue from product sales or services rendered when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured.

Digital Currencies Translations and Re-measurements

The Company accounts for digital currencies, which it considers to be an operating asset, at their initial cost and subsequently re-measures the carrying amounts of digital currencies it owns at each reporting date based on their current fair value. The changes in the fair value of digital currencies are included as a component of income or loss from operations. The Company currently classifies digital currencies as a current asset. The Company obtains the equivalency rate of hempcoins to bitcoins to USD from Coinmarketcap.com. The equivalency rate of garycoins to bitcoins to USD is obtained from C-cex.com and Coinmarketcap.com.  The equivalency rate obtained from Coinmarket represents a generally well recognized quoted price in an active market for bitcoins, which market and related database are accessible to the Company on an ongoing basis. The Bitcoin Price Index was $639.77 as of June 30, 2016.

Intangible Assets:

Intangible assets are comprised of patents, trademarks, the Company's "CBDS.com" website domain and intellectual property rights.  The patent is being amortized using the straight-line method over its economic life, which is estimated to be twenty (20) years.  The trademark, which is still in the application phase, is expected to have an indefinite useful life.  The CBDS.com website is expected to have an indefinite useful life.  The intellectual property rights are being amortized using the straight-line month over its economic life, which is estimated to be (20) years.

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Income Taxes:

The Company estimates the annual tax rate based on projected taxable income for the full year and records a quarterly income tax provision in accordance with the anticipated annual rate. As the year progresses, we refine the estimates of the year's taxable income as new information becomes available, including year-to-date financial results. This continual estimation process can result in a change to the expected effective tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual tax rate. Significant judgment may be required in determining the Company's effective tax rate and in evaluating our tax positions.

The effective income tax rate of 0% for the periods ended June 30, 2016 and 2015 differed from the statutory rate, due primarily to net operating losses incurred by the Company in the respective periods.  For the six months ended June 30, 2016 a tax benefit of approximately $57,006 would have been generated.  For the six months ended June 30, 2015 a tax benefit of approximately $566,308 would have been generated.  However, all benefits have been fully offset through an allowance account due to the uncertainty of the utilization of the net operating losses. As of June 30, 2016 the Company had net operating losses of approximately $380,038 resulting in a deferred tax asset of approximately $57,006.  As of June 30, 2015 the Company had net operating losses of approximately $3,775,390 resulting in a deferred tax asset of approximately $566,308.

The Company has established a valuation allowance in the full amount of the deferred tax asset due to the uncertainty of the utilization of operating losses in future periods.

Pending Accounting Pronouncements:

There have been no recent accounting pronouncements issued which are expected to have a material effect on the Company's financial statements.

2.  Eden Holdings LLC

During the quarter ended September 30, 2014, the Company created Eden Holdings LLC.  The purpose of the entity is to hold the intellectual property of Cannabis Sativa, Inc.  As of June 30, 2016 there has been no activity in the LLC.

3.   Fair Value Measurements

We adopted ASC Topic 820 for financial instruments measured at fair value on a recurring basis. ASC Topic 820 defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.

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Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The estimated fair values for financial instruments are determined at discrete points in time based on relevant market information.  These estimates involve uncertainties and cannot be determined with precision.  The carrying amounts of accounts receivable, inventory, notes payable, accounts payable, accrued liabilities approximate fair value given their short term nature or effective interest rates.  We measure certain financial instruments at fair value on a recurring basis.  As of June 30, 2016, assets and liabilities measured at fair value on a recurring basis were as follows:

	Total		Level 1		Level 2		Level 3
Assets
Digital Currency	$	59,416	$	59,416	$	-	$	-
Total assets measured at fair value	$	59,416	$	59,416	$	-	$	-
Liabilities	$	-	$	-	$	-	$	-
Total liabilities measured at fair value	$	-	$	-	$	-	$	-

4.  Hempcoins

At June 30, 2016, the Company has possession of 110,000,000 hempcoins.  Hempcoins are reported as digital currency.  Every 10 hempcoins are backed by 1 share of Rocky Mountain Inc (RMTN).  At June 30, 2016 the value of hempcoins was $53,485 computed by converting first to bitcoin and then to US Dollars. (See Note 1).

5.  Garycoins

At June 30, 2016, the Company has possession of 900,005,098 garycoins.  Garycoins are reported as digital currency.  At June 30, 2016 the value of garycoins was $5,931 computed by converting to a bitcoin value in US Dollars. (See Note 1).

6.  Related Parties

During the six months ended June 30, 2016 the Company received additional short-term advances from related parties and officers of the Company to cover operating expenses in the amount of $142,300.  As of June 30, 2016, net advances to the Company were $167,212.  The Company has imputed interest on these sums at the rate of 5% per annum and has recorded interest expense related to these balances in the amount of $1,732.  Because the related parties do not expect the imputed interest to be repaid, the interest has been recorded as a contribution of capital during the six months ended June 30, 2016.

The Company also has $248,182 that is due from Kush, a related party.  Payment is not expected currently.

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7.  Common Stock

During the three months ended March 31, 2016, the Company's board of directors authorized the issuance of 5,000 shares of its common stock to each of its seven (7) board of directors for their service through March 31, 2016.  The Company recorded $31,388 in board of director fees on its statement of operations for the three months ended March 31, 2016.

During the three months ended March 31, 2016, the Company's board of directors authorized the issuance of shares of its common stock to a consultant for their service through March 31, 2016.  The Company recorded $29,040 in consulting fees on its statement of operations for the three months ended March 31, 2016.  As of March 31, 2016 the stock was yet to be issued.  During the three months ended June 30, 2016 the Company's board of directors authorized the issuance of 50,000 shares of its common stock to a consultant for their services for the prior three months and the three months through June 30, 2016.  The Company recorded $51,960 in consulting fees on its statement of operations for the three months ended June 30, 2016.

During the three months ended March 31, 2016, the Company's board of directors authorized the issuance of 87,500 shares of its common stock to two (2) board of directors and two (2) consultants for their service through March 31, 2016.  The Company recorded $78,470 in professional fees on its statement of operations for the three months ended March 31, 2016.  As of March 31, 2016, the stock has yet to be issued.

During the three months ended March 31, 2016, the Company's board of directors authorized the issuance of 30,000 shares to a consultant for services to be provided during through March 31, 2016.  The value of the issuance was determined to be $40,726.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 5,000 shares of its common stock to each of its seven (7) board of directors for their service through June 30, 2016.  The Company recorded $80,612 in board of director fees on its statement of operations for the three months ended June 30, 2016.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 72,115 shares of its common stock to five (5) consultants of which three (3) are also members of the board of directors.  The stock was issued for their services through June 30, 2016.  The value of the issuance was determined to be $75,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 19,457 shares to a consultant for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $21,500.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 25,000 shares to a consultant for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $40,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 50,000 shares to two (2) consultants for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $160,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 30,000 shares in payment for a liability owed on the Company's joint venture agreement.  The value of the issuance was determined to be $35,000.

During the three months ended June 30, 2016, the Company's received 256,448 shares of their common stock as was required in their legal settlement.  The value of the return was valued to be $479,558 and was offset against prior professional fees incurred.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 238,768 shares in payment for a liabilities owed by the Company in the amount of $220,833.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 400,000 shares of its common stock to five (5) consultants of which three (3) are also members of the board of directors.  The stock was issued for their services through June 30, 2016.  The value of the issuance was determined to be $630,500.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 150,000 shares to a consultant, who is also on the board of directors, for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $116,500.  100,000 shares are payable in the future.

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8. Hi Brands International Inc. – Centuria Foods Agreement

On February 6, 2015, the Company formed Hi Brands International Inc., a Nevada Corporation and wholly owned subsidiary of Cannabis Sativa, Inc.

On February 25, 2015, the Company through its wholly owned subsidiary Hi Brands International, Inc. (jointly referred to hereinafter as "Cannabis Sativa"), entered into a Purchase, Supply and Joint Venture Agreement (the "Agreement"), with Centuria Natural Foods, Inc. ("Centuria") whereby Cannabis Sativa will market Centuria's proprietary CBD (Cannabidiol) Rich Hemp Oil products (the "Products").

The initial term of the Agreement is one year which may be renewed for additional one year periods upon the mutual agreement of the parties.  Within the first 90 days of the initial term of the Agreement, Cannabis Sativa shall order at least 5,000 units of Product.  Thereafter, Cannabis Sativa shall order at least 5,000 units of Product per month with the additional requirement that Cannabis Sativa order a minimum of 55,000 units of Product during the first 12 months of the Agreement.  Fifty percent of all gross revenue generated by the sale of the Products will be paid to Cannabis Sativa and fifty percent will be paid to Centuria.

As of June 30, 2016, there has not been any activity in Hi Brands International Inc. other than the execution of the above agreement.  The Company has not ordered any product under this agreement as of June 30, 2016.

9.  Going Concern Considerations

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred net losses since inception. As reported in the financial statements, the Company has an accumulated deficit which raises substantial doubt about the Company's ability to continue as a going concern.

The ability of the Company to continue as a going concern is dependent on its ability to raise adequate capital to fund operating losses until it is able to engage in profitable business operations. To the extent financing is not available, the Company may not be able to, or may be delayed in, developing its services and meeting its obligations. The Company will continue to evaluate its projected expenditures relative to its available cash and to evaluate additional means of financing in order to satisfy its working capital and other cash requirements. The accompanying financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.

10.   Other Matters

On November 2, 2015, the Company announced that it will pay a special stock dividend of 1.5 restricted common shares for each share held as of the record date of November 16, 2015.  The holding period for these shares is 6 months from the issue date to shareholders of record. Shares have not yet been issued as of June 30, 2016.

The Company has also submitted its application to be listed on NASDAQ.

11.  Subsequent Event

On August 15, 2016, the Company closed a transaction pursuant to a Stock Purchase Agreement with iBudtender, Inc., a Colorado corporation ("iBudtender") thereby acquiring 5,010,000 of the common shares of iBudtender, constituting a 50.1% ownership interest in iBudtender, in exchange for $50,000 in cash and 150,000 shares of  common stock of the Company.  Pursuant to the transaction, the Company will also contribute $105,000 to the working capital of iBudtender over the next five months, which contribution will then be repaid to the Company with interest over 24 months thereafter.

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

Results of Operations

Three Months Ended June 30, 2016 Compared With Three Months Ended June 30, 2015

Revenue for the three months ended June 30, 2016 and 2015 was $50,730 and $617, respectively. The increase in revenue was a result of increased sales of  the Company's products.  Cost of revenues for the three months ended June 30, 2016 and 2015 was $6,745 and $243, respectively. Gross profit for the three months ended June 30, 2016 and 2015 was $43,985 and $374, respectively.  Net loss for the three months ended June 30, 2016 was $58,563 compared to net loss of $1,987,308 for the three months ended June 30, 2015.  The decrease in net loss is due to the decrease in operating expenses for the second fiscal quarter of 2016 compared to the second fiscal quarter of 2015 for the reasons discussed below.

Total operating expenses were $101,238 for the three months ended June 30, 2016 compared to $1,869,909 for the three months ended June 30, 2015.  The significant decrease in general and administrative expenses was attributable to non-cash transactions involving the issuance of capital stock in exchange for services and the extinguishment of debt that took place in the second fiscal quarter of 2015.   Since similar transactions did not take place during the second fiscal quarter of 2016, operating expenses were more typical of actual operating expenses.   Other general and administrative expenses consisted primarily of professional fees, payroll expenses, rent and transfer agent fees. Other expenses for the three months ended June 30, 2016 were interest expense of $1,310 compared to interest expense of $9,203 for the three months ended June 30, 2015.

Six Months Ended June 30, 2016 Compared With Six Months Ended June 30, 2015

Revenue for the six months ended June 30, 2016 and 2015 was $65,817 and $1,719, respectively. The increase in revenue was a result of increased sales of  the Company's products.  Cost of revenues for the six months ended June 30, 2016 and 2015 was $7,324 and $1,403, respectively. Gross profit for the six months ended June 30, 2016 and 2015 was $58,493 and $316, respectively.  Net loss for the six months ended June 30, 2016 was $380,038 compared to net loss of $3,775,390 for the six months ended June 30, 2015.  The decrease in net loss is due to the decrease in operating expenses for the first two fiscal quarters of 2016 compared to the first two fiscal quarters of 2015 for the reasons discussed below.

Total operating expenses were $433,165 for the six months ended June 30, 2016 compared to $3,650,446 for the six months ended June 30, 2015.  The significant decrease in general and administrative expenses was attributable to non-cash transactions involving the issuance of capital stock in exchange for services and the extinguishment of debt that took place in the first two fiscal quarters of 2015.   Since similar transactions did not take place during the first two fiscal quarters of 2016, operating expenses were more typical of actual operating expenses.   Other general and administrative expenses consisted primarily of professional fees, payroll expenses, rent and transfer agent fees. Other expenses for the six months ended June 30, 2016 were interest expense of $5,366 compared to interest expense of $17,064 for the six months ended June 30, 2015.

Liquidity and Capital Resources

Our operations used $111,779 in cash for the six months ended June 30, 2016. Investing activities used $3,725 for the six months ended June 30, 2016 and financing activities provided cash of $139,785 for the six months ended June 30, 2016. Cash required during the six months ended June 30, 2016, came principally from cash proceeds from related parties in the amount of $142,300.

The accompanying condensed 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 net loss of $380,038 and $3,775,390, respectively, for the six months ended June 30, 2016 and 2015 and had an accumulated deficit of $54,473,137 as of June 30, 2016.  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 convertible debt.  It will be important for the Company to be successful in its efforts to raise capital in this manner if it is going to be able to further its business plan in an aggressive manner.  Raising capital in this manner will cause dilution to current shareholders. As mentioned before, for the immediate needs of our current operations, we anticipate continuing to fund operations through management and shareholder loans. There can be no assurance that management and shareholders will continue to loan the Company funds.  These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

11

Off Balance Sheet Arrangements

None

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

Not required.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Under the supervision and with the participation of our management including our chief executive officer and our chief financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")) as of the end of the period covered by this report. Based upon that evaluation, our chief executive officer and our chief financial officer concluded that our disclosure controls and procedures as of the end of the period covered by this report were not effective such that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

PART II – OTHER INFORMATION

Item 1.  Legal Proceedings.

On August 26, 2015, the Company filed a complaint in the District Court of Clark County, Nevada, Department No. XXVIII against Jeff W. Holmes, Greg W. Holmes, Kevin J. Asher and Colonial Stock Transfer Company, Inc., a Utah Corporation, seeking declaratory relief for the cancelation of common shares of the Company issued in connection with a consulting agreement.  The complaint alleges generally a breach of the consulting agreement by the defendants.  In addition to seeking a cancellation of shares, the complaint seeks general, consequential and punitive damages and costs in unspecified amounts. The case was dismissed during the quarter ended June 30, 2016.

On February 28, 2016, the Company was served with a complaint previously filed in the District Court of Clark County, Nevada, Department No. XXVIII.  Suite was brought against the Company by Kevin J. Asher who is alleging he is owed compensation for consulting services provided to the company in 2013 and 2014.  Mr. Asher is seeking payment of $50,000 and the issuance 20,000 shares of common stock.  The Company has engaged legal  counsel to answer the complaint.

12

Item 1A.  Risk Factors

See the risk factors discussed in Item 1A. of our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on May 6, 2016.

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

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 5,000 shares of its common stock to each of its seven (7) board of directors for their service through June 30, 2016.  The Company recorded $80,612 in board of director fees on its statement of operations for the three months ended June 30, 2016.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 72,115 shares of its common stock to five (5) consultants of which three (3) are also members of the board of directors.  The stock was issued for their services through June 30, 2016.  The value of the issuance was determined to be $75,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 19,457 shares to a consultant for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $21,500.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 25,000 shares to a consultant for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $40,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 50,000 shares to two (2) consultants for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $160,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 30,000 shares in payment for a liability owed on the Company's joint venture agreement.  The value of the issuance was determined to be $35,000.

During the three months ended June 30, 2016, the Company's received 256,448 shares of their common stock as was required in their legal settlement.  The value of the return was valued to be $479,558 and was offset against prior professional fees incurred.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 238,768 shares in payment for a liabilities owed by the Company in the amount of $220,833.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 400,000 shares of its common stock to five (5) consultants of which three (3) are also members of the board of directors.  The stock was issued for their services through June 30, 2016.  The value of the issuance was determined to be $630,500.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 150,000 shares to a consultant, who is also on the board of directors, for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $116,500.

Each of issuances set forth above in this Item 2 was exempt from the registration requirements of Section 5 of the Securities Act of 1933 pursuant to Section 4(2) of the Act since the issuance of the shares did not involve any public offering.

13

Item 3.  Defaults Upon Senior Securities.

None.

Item 4.  Mine Safety Disclosures.

Not applicable.

Item 5.  Other Information.

None.

Item 6.  Exhibits. 

The following documents are included as exhibits to this report:

(a) Exhibits

Exhibit Number	SEC Reference Number	Title of Document
3.1(1)	3	Articles of Incorporation
3.2(1)	3	Bylaws
31.1	31	Section 302 Certification of Principal Executive Officer
31.2	31	Section 302 Certification of Principal Financial Officer
32.1	32	SeS Section 1350 Certification of Principal Executive Officer
32.2	32	Se SSection 1350 Certification of Principal Financial Officer
101.INS(2)		XBRL Instance Document
101.SCH(2)		XBRL Taxonomy Extension Schema
101.CAL(2)		XBRL Taxonomy Extension Calculation Linkbase
101.DEF(2)		XBRL Taxonomy Extension Definition Linkbase
101.LAB(2)		XBRL Taxonomy Extension Label Linkbase
101.PRE(2)		XBRL Taxonomy Extension Presentation Linkbase

(1)Incorporated by reference to Exhibits 3.01 and 3.02 of the Company's Registration Statement on Form 10 filed January 28, 2009.

 (2)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 or prospectus to which it relates and is not incorporated or deemed to be incorporated by reference into any registration statement, prospectus or other document.

14

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.

Cannabis Sativa, Inc. 

Date:  August 22, 2016

By:  /s/ Mike Gravel

       Mike Gravel, Chief Executive Officer

      (Principal Executive Officer)

By:  /s/ Catherine Carroll

        Catherine Carroll, Chief Financial Officer

       (Principal Financial and Accounting Officer)

15

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mike Gravel, certify that:

1.   I have reviewed this Quarterly Report on Form 10-Q of Cannabis Sativa, Inc., (the "Registrant");

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.   The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5.   The Registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions);

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date:	August 22, 2016	By:	/s/ Mike Gravel
			Mike Gravel, Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Catherine Carroll, certify that:

1.   I have reviewed this Quarterly Report on Form 10-Q of Cannabis Sativa, Inc., (the "Registrant");

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.   The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5.   The Registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions);

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date:	August 22, 2016	By:	/s/ Catherine Carroll
			Catherine Carroll, Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cannabis Sativa, Inc. (the "Registrant") on Form 10-Q for the quarter ended June 30, 2016, as filed with the Commission on the date hereof (the "Quarterly Report"), I, Mike Gravel, Principal Executive Officer of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	August 22, 2016	By:	/s/ Mike Gravel
			Mike Gravel
			Principal Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cannabis Sativa, Inc. (the "Registrant") on Form 10-Q for the quarter ended June 30, 2016, as filed with the Commission on the date hereof (the "Quarterly Report"), I, Catherine Carroll, Principal Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	August 22, 2016	By:	/s/ Catherine Carroll
			Catherine Carroll
			Principal Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 19, 2016
Document and Entity Information:
Entity Registrant Name	Cannabis Sativa, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Entity Central Index Key	0001360442
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		18,367,865
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Entity Incorporation, Date of Incorporation	Nov. 05, 2004
Trading Symbol	cbds

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash and Cash Equivalents	$ 34,637	$ 10,356
Digital Currency	59,416	5,203
Accounts Receivable, Net	15,629	4,190
Prepaids	545,256
Employee Advance	40	44
Inventories	28,890	24,937
Investment in Joint Venture	35,000	35,000
Total Current Assets	718,868	79,730
Property and Equipment, Net	4,095	4,504
Intangible Assets, Net	2,891,297	2,904,121
Investment	9,760	9,760
Due from Related Parties	248,182	248,182
Deposits	4,236	4,236
Advance	3,500
Total Assets	3,879,938	3,250,533
Current Liabilities:
Accounts Payable and Accrued Expenses	166,889	344,395
Due to Related Parties - Short Term	167,212	27,427
Total Liabilities	334,101	371,822
Stockholders' Equity:
Preferred stock $0.001 par value; 5,000,000 shares authorized;732,018 and 428,585 issued and outstanding	732	428
Common stock $0.001 par value; 45,000,000 shares authorized;18,203,630 and 17,374,738 shares issued and outstanding, respectively	18,204	17,375
Stock Subscriptions Payable	100	14,303
Additional Paid-In Capital	57,999,044	56,938,810
Accumulated Deficit	(54,473,137)	(54,093,099)
Total Cannabis Sativa, Inc. Stockholders' Equity	3,544,943	2,877,817
Non-Controlling Interest	894	894
Total Stockholders' Equity	3,545,837	2,878,711
Total Liabilities and Stockholders' Equity	$ 3,879,938	$ 3,250,533

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	45,000,000	45,000,000
Common Stock, shares issued	18,203,630	17,374,738
Common Stock, shares outstanding	18,203,630	17,374,738
Preferred Stock, par or stated value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	5,000,000	5,000,000
Preferred Stock, shares issued	732,018	428,585
Preferred Stock, shares outstanding	732,018	428,585

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement
Revenues	$ 50,730	$ 617	$ 65,817	$ 1,719
Cost of Revenues	6,745	243	7,324	1,403
Gross Profit	43,985	374	58,493	316
General and Administrative Expenses	101,238	1,870,283	433,165	3,650,446
Loss from Operations	(57,253)	(1,869,909)	(374,672)	(3,650,130)
Interest Expense	1,310	9,203	5,366	17,064
Loss from Continuing Operations Before Discontinued Operations	(58,563)	(1,879,112)	(380,038)	(3,667,194)
Loss from Discontinued Operations		108,196		108,196
Loss Before Income Taxes	(58,563)	(1,987,308)	(380,038)	(3,775,390)
Income Taxes
Loss from Continuing Operations	(58,563)	(1,987,308)	(380,038)	(3,775,390)
Net Loss for the Period	(58,563)	(1,987,308)	(380,038)	(3,775,390)
Loss Attributable to Non-Controlling Interest
Net Income Loss Attributable To Cannabis Sativa, Inc.	$ (58,563)	$ (1,987,308)	$ (380,038)	$ (3,775,390)
Net Loss for the Period per Common Share:
Basic & Diluted Continuing Operations	$ (0.00)	$ (0.12)	$ (0.02)	$ (0.24)
Basic & Diluted Discontinued Operations		$ (0.01)		$ (0.01)
Weighted Average Common Shares Outstanding:
Basic & Diluted	17,414,182	16,037,238	17,404,786	15,929,210

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss for the Period	$ (380,038)	$ (3,775,390)
Adjustments to Reconcile Net Loss for the Period to Net Cash Used in Operating Activities:
Depreciation and Amortization	13,456	77,092
Stock Issued for Services	1,263,225	3,162,125
Stock Returned - Legal Settlement	(479,558)
Contributed Capital		16,426
Amortization of Prepaid		208,333
Imputed Interest on Loans	1,732
Changes in assets and liabilities:
Digital Currency	(48,282)
Accounts Receivable	(11,439)
Inventories	(3,953)	661
Prepaids	(545,256)
Employeee Advances	4	(31)
Accounts Payable and Accrued Expenses	78,330	93,554
Accrued Interest		1,655
Net Cash Used in Operating Activities:	(111,779)	(215,575)
Net Cash Used in Discontinued Activities:		6,596
Cash Flows from Investing Activities:
Purchase of Fixed Assets and Intangibles	(225)	(8,410)
Advance	(3,500)
Net Cash Used in Investing Activities:	(3,725)	(8,410)
Cash Flows from Financing Activities:
Payments to Related Parties	(2,515)	(40,345)
Proceeds from Related Parties	142,300	257,740
Net Cash Provided by Financing Activities:	139,785	217,395
NET CHANGE IN CASH AND CASH EQUIVALENTS	24,281	6
Cash and Cash Equivalents - Beginning of Period	10,356	25,994
Cash and Cash Equivalents - End of Period	34,637	26,000
Supplemental Disclosure of Cash Flow Activities:
Interest
Income taxes
Supplemental Disclosures of Non Cash Activities:
Contribution of Digital Currency	5,931
Conversion of Debt to Equity	255,834
Unrealized Gain on Available for Sale Securities		1,950
Shares Issued for Accrued Liabilities	$ 15,000	362,250
Shares issued for Prepaid Items		3,162,125
Preferred Shares Issued for Related Party Payables		$ 2,890,499

XML

1. Summary of Significant Accounting Policies and Use of Estimates

6 Months Ended

Jun. 30, 2016

Notes

1. Summary of Significant Accounting Policies and Use of Estimates:

1. Summary of Significant Accounting Policies and Use of Estimates:

Presentation of Interim Information:

The condensed consolidated financial statements included herein have been prepared by Cannabis Sativa, Inc., formerly named Ultra Sun Corp. ("we", "us", "our" or "Company"), without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") and should be read in conjunction with the annual report on Form 10-k filed with the SEC May 6, 2016.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, as permitted by the SEC, although we believe the disclosures, which are made, are adequate to make the information presented not misleading. Further, the condensed financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position at June 30, 2016, and the results of our operations and cash flows for the periods presented.

Interim results are subject to significant seasonal variations and the results of operations for the period ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year.

Nature of Corporation:

We were incorporated under the laws of Nevada in November 2004 as Ultra Sun Corp. On November 13, 2013, we changed our name to Cannabis Sativa, Inc.   Our wholly-owned subsidiary Kush was acquired by us in June 2014 in exchange for shares of our common stock.  Our wholly-owned subsidiary Wild Earth Naturals, Inc. ("Wild Earth") was acquired by us in July 2013 in exchange for shares of our common stock.  The acquisition of Kush resulted in a change of control of the Company and at or after the closing of the acquisition of Kush, the persons designated by Kush became the officers and directors of the Company.  From our inception through September 30, 2013 we were engaged in the tanning salon business and operated a tanning salon in Saratoga Springs, Utah under the name "Sahara Sun Tanning."  As a result of our acquisition of Wild Earth in July 2013, we became engaged in the herbal skin care products business.  On September 30, 2013 we sold the assets of the tanning salon business to a third party.  As a result of our acquisition of Kush in June 2014, along with our Wild Earth operations we are now engaged in the developing and promoting of natural cannabis products.  On November 2, 2015, Kush was spun out of the Company.

Use of Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Accounts Receivable:

We estimate credit loss reserves for accounts receivable on an individual receivable basis. A specific impairment allowance reserve is established based on expected future cash flows and the financial condition of the debtor.  We charge off customer balances in part or in full when it is more likely than not that we will not collect that amount of the balance due.  We consider any balance unpaid after the contract payment period to be past due.  At June 30, 2016 the company has established an allowance for doubtful accounts of $-0-.

Inventory:

The Company calculates inventory using the average cost method to value inventory.  Inventory cost includes those costs directly attributable to the product before sale.

Fair Value of Financial Instruments:

The estimated fair values for financial instruments are determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The carrying amounts of accounts payable, accrued liabilities, and notes payable approximate fair value given their short term nature or effective interest rates.

Cash and Cash Equivalents:

For financial accounting purposes, cash and cash equivalents are considered to be all highly liquid investments purchased with an initial maturity of three (3) months or less.

Earnings per Share:

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity.  As of June 30, 2016 and 2015, the Company has no outstanding potentially dilutive securities.

Revenue Recognition:

The Company recognizes revenue from product sales or services rendered when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured.

Digital Currencies Translations and Re-measurements

The Company accounts for digital currencies, which it considers to be an operating asset, at their initial cost and subsequently re-measures the carrying amounts of digital currencies it owns at each reporting date based on their current fair value. The changes in the fair value of digital currencies are included as a component of income or loss from operations. The Company currently classifies digital currencies as a current asset. The Company obtains the equivalency rate of hempcoins to bitcoins to USD from Coinmarketcap.com. The equivalency rate of garycoins to bitcoins to USD is obtained from C-cex.com and Coinmarketcap.com.  The equivalency rate obtained from Coinmarket represents a generally well recognized quoted price in an active market for bitcoins, which market and related database are accessible to the Company on an ongoing basis. The Bitcoin Price Index was $639.77 as of June 30, 2016.

Intangible Assets:

Intangible assets are comprised of patents, trademarks, the Company's "CBDS.com" website domain and intellectual property rights.  The patent is being amortized using the straight-line method over its economic life, which is estimated to be twenty (20) years.  The trademark, which is still in the application phase, is expected to have an indefinite useful life.  The CBDS.com website is expected to have an indefinite useful life.  The intellectual property rights are being amortized using the straight-line month over its economic life, which is estimated to be (20) years.

Income Taxes:

The Company estimates the annual tax rate based on projected taxable income for the full year and records a quarterly income tax provision in accordance with the anticipated annual rate. As the year progresses, we refine the estimates of the year's taxable income as new information becomes available, including year-to-date financial results. This continual estimation process can result in a change to the expected effective tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual tax rate. Significant judgment may be required in determining the Company's effective tax rate and in evaluating our tax positions.

The effective income tax rate of 0% for the periods ended June 30, 2016 and 2015 differed from the statutory rate, due primarily to net operating losses incurred by the Company in the respective periods.  For the six months ended June 30, 2016 a tax benefit of approximately $57,006 would have been generated.  For the six months ended June 30, 2015 a tax benefit of approximately $566,308 would have been generated.  However, all benefits have been fully offset through an allowance account due to the uncertainty of the utilization of the net operating losses. As of June 30, 2016 the Company had net operating losses of approximately $380,038 resulting in a deferred tax asset of approximately $57,006.  As of June 30, 2015 the Company had net operating losses of approximately $3,775,390 resulting in a deferred tax asset of approximately $566,308.

The Company has established a valuation allowance in the full amount of the deferred tax asset due to the uncertainty of the utilization of operating losses in future periods.

Pending Accounting Pronouncements:

There have been no recent accounting pronouncements issued which are expected to have a material effect on the Company's financial statements.

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2. Eden Holdings Llc

6 Months Ended

Jun. 30, 2016

Notes

2. Eden Holdings Llc

2.  Eden Holdings LLC

During the quarter ended September 30, 2014, the Company created Eden Holdings LLC.  The purpose of the entity is to hold the intellectual property of Cannabis Sativa, Inc.  As of June 30, 2016 there has been no activity in the LLC.

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3. Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Notes

3. Fair Value Measurements

3.   Fair Value Measurements

We adopted ASC Topic 820 for financial instruments measured at fair value on a recurring basis. ASC Topic 820 defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

·        Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;

·        Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

·        Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The estimated fair values for financial instruments are determined at discrete points in time based on relevant market information.  These estimates involve uncertainties and cannot be determined with precision.  The carrying amounts of accounts receivable, inventory, notes payable, accounts payable, accrued liabilities approximate fair value given their short term nature or effective interest rates.  We measure certain financial instruments at fair value on a recurring basis.   As of June 30, 2016, assets and liabilities measured at fair value on a recurring basis were as follows:

	Total	Level 1	Level 2	Level 3
Assets:
	$  59,416	$  59,416	$  -	$  -
Digital Currency	$  59,416	$  59,416	$  -	$  -
Total assets measured at fair value	-	-	-	-
Liabilities:	$  -	$  -	$  -	$  -
Total liabilities measured at fair value	$  -	$  -	$  -	$  -

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4. Hempcoins

6 Months Ended

Jun. 30, 2016

Notes

4. Hempcoins

4.  Hempcoins

At June 30, 2016, the Company has possession of 110,000,000 hempcoins.  Hempcoins are reported as digital currency.  Every 10 hempcoins are backed by 1 share of Rocky Mountain Inc (RMTN).  At June 30, 2016 the value of hempcoins was $53,485 computed by converting first to bitcoin and then to US Dollars. (See Note 1).

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5. Garycoins

6 Months Ended

Jun. 30, 2016

Notes

5. Garycoins

5.  Garycoins

At June 30, 2016, the Company has possession of 900,005,098 garycoins.  Garycoins are reported as digital currency.  At June 30, 2016 the value of garycoins was $5,931 computed by converting to a bitcoin value in US Dollars. (See Note 1).

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6. Related Parties

6 Months Ended

Jun. 30, 2016

Notes

6. Related Parties

6.  Related Parties

During the six months ended June 30, 2016 the Company received additional short-term advances from related parties and officers of the Company to cover operating expenses in the amount of $142,300.  As of June 30, 2016, net advances to the Company were $167,212.  The Company has imputed interest on these sums at the rate of 5% per annum and has recorded interest expense related to these balances in the amount of $1,732.  Because the related parties do not expect the imputed interest to be repaid, the interest has been recorded as a contribution of capital during the six months ended June 30, 2016.

The Company also has $248,182 that is due from Kush, a related party.  Payment is not expected currently.

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7. Common Stock

6 Months Ended

Jun. 30, 2016

Notes

7. Common Stock

7.  Common Stock

During the three months ended March 31, 2016, the Company's board of directors authorized the issuance of 5,000 shares of its common stock to each of its seven (7) board of directors for their service through March 31, 2016.  The Company recorded $31,388 in board of director fees on its statement of operations for the three months ended March 31, 2016.

During the three months ended March 31, 2016, the Company's board of directors authorized the issuance of shares of its common stock to a consultant for their service through March 31, 2016.  The Company recorded $29,040 in consulting fees on its statement of operations for the three months ended March 31, 2016.  As of March 31, 2016 the stock was yet to be issued.  During the three months ended June 30, 2016 the Company's board of directors authorized the issuance of 50,000 shares of its common stock to a consultant for their services for the prior three months and the three months through June 30, 2016.  The Company recorded $51,960 in consulting fees on its statement of operations for the three months ended June 30, 2016.

During the three months ended March 31, 2016, the Company's board of directors authorized the issuance of 87,500 shares of its common stock to two (2) board of directors and two (2) consultants for their service through March 31, 2016.  The Company recorded $78,470 in professional fees on its statement of operations for the three months ended March 31, 2016.  As of March 31, 2016, the stock has yet to be issued.

During the three months ended March 31, 2016, the Company's board of directors authorized the issuance of 30,000 shares to a consultant for services to be provided during through March 31, 2016.  The value of the issuance was determined to be $40,726.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 5,000 shares of its common stock to each of its seven (7) board of directors for their service through June 30, 2016.  The Company recorded $80,612 in board of director fees on its statement of operations for the three months ended June 30, 2016.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 72,115 shares of its common stock to five (5) consultants of which three (3) are also members of the board of directors.  The stock was issued for their services through June 30, 2016.  The value of the issuance was determined to be $75,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 19,457 shares to a consultant for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $21,500.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 25,000 shares to a consultant for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $40,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 50,000 shares to two (2) consultants for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $160,000.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 30,000 shares in payment for a liability owed on the Company's joint venture agreement.  The value of the issuance was determined to be $35,000.

During the three months ended June 30, 2016, the Company's received 256,448 shares of their common stock as was required in their legal settlement.  The value of the return was valued to be $479,558 and was offset against prior professional fees incurred.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 238,768 shares in payment for a liabilities owed by the Company in the amount of $220,833.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 400,000 shares of its common stock to five (5) consultants of which three (3) are also members of the board of directors.  The stock was issued for their services through June 30, 2016.  The value of the issuance was determined to be $630,500.

During the three months ended June 30, 2016, the Company's board of directors authorized the issuance of 150,000 shares to a consultant, who is also on the board of directors, for services that were provided during through June 30, 2016.  The value of the issuance was determined to be $116,500.  100,000 shares are payable in the future.

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8. Hi Brands International Inc. - Centuria Foods Agreement

6 Months Ended

Jun. 30, 2016

Notes

8. Hi Brands International Inc. - Centuria Foods Agreement

8. Hi Brands International Inc. – Centuria Foods Agreement

On February 6, 2015, the Company formed Hi Brands International Inc., a Nevada Corporation and wholly owned subsidiary of Cannabis Sativa, Inc.

On February 25, 2015, the Company through its wholly owned subsidiary Hi Brands International, Inc. (jointly referred to hereinafter as "Cannabis Sativa"), entered into a Purchase, Supply and Joint Venture Agreement (the "Agreement"), with Centuria Natural Foods, Inc. ("Centuria") whereby Cannabis Sativa will market Centuria's proprietary CBD (Cannabidiol) Rich Hemp Oil products (the "Products").

The initial term of the Agreement is one year which may be renewed for additional one year periods upon the mutual agreement of the parties.  Within the first 90 days of the initial term of the Agreement, Cannabis Sativa shall order at least 5,000 units of Product.  Thereafter, Cannabis Sativa shall order at least 5,000 units of Product per month with the additional requirement that Cannabis Sativa order a minimum of 55,000 units of Product during the first 12 months of the Agreement.  Fifty percent of all gross revenue generated by the sale of the Products will be paid to Cannabis Sativa and fifty percent will be paid to Centuria.

As of June 30, 2016, there has not been any activity in Hi Brands International Inc. other than the execution of the above agreement.  The Company has not ordered any product under this agreement as of June 30, 2016.

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9. Going Concern Considerations

6 Months Ended

Jun. 30, 2016

Notes

9. Going Concern Considerations

9.  Going Concern Considerations

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred net losses since inception. As reported in the financial statements, the Company has an accumulated deficit which raises substantial doubt about the Company's ability to continue as a going concern.

The ability of the Company to continue as a going concern is dependent on its ability to raise adequate capital to fund operating losses until it is able to engage in profitable business operations. To the extent financing is not available, the Company may not be able to, or may be delayed in, developing its services and meeting its obligations. The Company will continue to evaluate its projected expenditures relative to its available cash and to evaluate additional means of financing in order to satisfy its working capital and other cash requirements. The accompanying financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.

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10. Other Matters

6 Months Ended

Jun. 30, 2016

Notes

10. Other Matters

10.   Other Matters

On November 2, 2015, the Company announced that it will pay a special stock dividend of 1.5 restricted common shares for each share held as of the record date of November 16, 2015.  The holding period for these shares is 6 months from the issue date to shareholders of record. Shares have not yet been issued as of June 30, 2016.

The Company has also submitted its application to be listed on NASDAQ.

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11. Subsequent Event

6 Months Ended

Jun. 30, 2016

Notes

11. Subsequent Event

11.  Subsequent Event

On August 15, 2016, the Company closed a transaction pursuant to a Stock Purchase Agreement with iBudtender, Inc., a Colorado corporation ("iBudtender") thereby acquiring 5,010,000 of the common shares of iBudtender, constituting a 50.1% ownership interest in iBudtender, in exchange for $50,000 in cash and 150,000 shares of  common stock of the Company.  Pursuant to the transaction, the Company will also contribute $105,000 to the working capital of iBudtender over the next five months, which contribution will then be repaid to the Company with interest over 24 months thereafter.

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1. Summary of Significant Accounting Policies and Use of Estimates (Policies)

6 Months Ended

Jun. 30, 2016

Policies

Use of Estimates

Use of Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Accounts Receivable

Accounts Receivable:

We estimate credit loss reserves for accounts receivable on an individual receivable basis. A specific impairment allowance reserve is established based on expected future cash flows and the financial condition of the debtor.  We charge off customer balances in part or in full when it is more likely than not that we will not collect that amount of the balance due.  We consider any balance unpaid after the contract payment period to be past due.  At June 30, 2016 the company has established an allowance for doubtful accounts of $-0-.

Inventory

Inventory:

The Company calculates inventory using the average cost method to value inventory.  Inventory cost includes those costs directly attributable to the product before sale.

Fair Value of Financial Instruments:

Fair Value of Financial Instruments:

The estimated fair values for financial instruments are determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The carrying amounts of accounts payable, accrued liabilities, and notes payable approximate fair value given their short term nature or effective interest rates.

Cash and Cash Equivalents

Cash and Cash Equivalents:

For financial accounting purposes, cash and cash equivalents are considered to be all highly liquid investments purchased with an initial maturity of three (3) months or less.

Earnings Per Share:

Earnings per Share:

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity.  As of June 30, 2016 and 2015, the Company has no outstanding potentially dilutive securities.

Revenue Recognition:

Revenue Recognition:

The Company recognizes revenue from product sales or services rendered when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured.

Digital Currencies Translations and Re-measurements

Digital Currencies Translations and Re-measurements

The Company accounts for digital currencies, which it considers to be an operating asset, at their initial cost and subsequently re-measures the carrying amounts of digital currencies it owns at each reporting date based on their current fair value. The changes in the fair value of digital currencies are included as a component of income or loss from operations. The Company currently classifies digital currencies as a current asset. The Company obtains the equivalency rate of hempcoins to bitcoins to USD from Coinmarketcap.com. The equivalency rate of garycoins to bitcoins to USD is obtained from C-cex.com and Coinmarketcap.com.  The equivalency rate obtained from Coinmarket represents a generally well recognized quoted price in an active market for bitcoins, which market and related database are accessible to the Company on an ongoing basis. The Bitcoin Price Index was $639.77 as of June 30, 2016.

Intangible Assets:

Intangible Assets:

Intangible assets are comprised of patents, trademarks, the Company's "CBDS.com" website domain and intellectual property rights.  The patent is being amortized using the straight-line method over its economic life, which is estimated to be twenty (20) years.  The trademark, which is still in the application phase, is expected to have an indefinite useful life.  The CBDS.com website is expected to have an indefinite useful life.  The intellectual property rights are being amortized using the straight-line month over its economic life, which is estimated to be (20) years.

Income Taxes:

Income Taxes:

The Company estimates the annual tax rate based on projected taxable income for the full year and records a quarterly income tax provision in accordance with the anticipated annual rate. As the year progresses, we refine the estimates of the year's taxable income as new information becomes available, including year-to-date financial results. This continual estimation process can result in a change to the expected effective tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual tax rate. Significant judgment may be required in determining the Company's effective tax rate and in evaluating our tax positions.

The effective income tax rate of 0% for the periods ended June 30, 2016 and 2015 differed from the statutory rate, due primarily to net operating losses incurred by the Company in the respective periods.  For the six months ended June 30, 2016 a tax benefit of approximately $57,006 would have been generated.  For the six months ended June 30, 2015 a tax benefit of approximately $566,308 would have been generated.  However, all benefits have been fully offset through an allowance account due to the uncertainty of the utilization of the net operating losses. As of June 30, 2016 the Company had net operating losses of approximately $380,038 resulting in a deferred tax asset of approximately $57,006.  As of June 30, 2015 the Company had net operating losses of approximately $3,775,390 resulting in a deferred tax asset of approximately $566,308.

The Company has established a valuation allowance in the full amount of the deferred tax asset due to the uncertainty of the utilization of operating losses in future periods.

Pending Accounting Pronouncements:

Pending Accounting Pronouncements:

There have been no recent accounting pronouncements issued which are expected to have a material effect on the Company's financial statements.

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3. Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Tables/Schedules

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

As of June 30, 2016, assets and liabilities measured at fair value on a recurring basis were as follows:

	Total	Level 1	Level 2	Level 3
Assets:
	$  59,416	$  59,416	$  -	$  -
Digital Currency	$  59,416	$  59,416	$  -	$  -
Total assets measured at fair value	-	-	-	-
Liabilities:	$  -	$  -	$  -	$  -
Total liabilities measured at fair value	$  -	$  -	$  -	$  -

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1. Summary of Significant Accounting Policies and Use of Estimates (Details)		6 Months Ended
	Jun. 01, 2014	Jun. 30, 2016
Entity Incorporation, Date of Incorporation		Nov. 05, 2004
Kush
Acquired date	Jun. 01, 2014
Spin-off date		Nov. 02, 2015

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1. Summary of Significant Accounting Policies and Use of Estimates: Accounts Receivable (Details)	6 Months Ended
	Jun. 30, 2016 USD ($)
Details
Allowance for doubtful accounts	$ 0

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1. Summary of Significant Accounting Policies and Use of Estimates: Earnings Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Details
Potentially dilutive securities outstanding	0	0

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1. Summary of Significant Accounting Policies and Use of Estimates: Digital Currencies Translations and Re-measurements (Details)	Jun. 30, 2016 USD ($)
Details
Bitcoin Price Index	$ 639.77

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1. Summary of Significant Accounting Policies and Use of Estimates: Intangible Assets (Details)	6 Months Ended
	Jun. 30, 2016
Patent
Finite-Lived Intangible Asset, Useful Life	20 years
Intellectual Property
Finite-Lived Intangible Asset, Useful Life	20 years

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1. Summary of Significant Accounting Policies and Use of Estimates: Income Taxes (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Details
Effective Income Tax Rate Reconciliation, Percent	0.00%	0.00%
Federal Tax Benefit (Expense) at Statutory Rates	$ 57,006	$ 566,308
Operating Loss Carryforwards	380,038	3,775,390
Deferred Tax Assets	$ 57,006	$ 566,308

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3. Fair Value Measurements: Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details)	Jun. 30, 2016 USD ($)
Assets:
Digital Currency	$ 59,416
Total assets measured at fair value	0
Total liabilities measured at fair value	0
Fair Value, Inputs, Level 1
Assets:
Digital Currency	59,416
Total assets measured at fair value	0
Total liabilities measured at fair value	0
Fair Value, Inputs, Level 2
Assets:
Digital Currency	0
Total assets measured at fair value	0
Total liabilities measured at fair value	0
Fair Value, Inputs, Level 3
Assets:
Digital Currency	0
Total assets measured at fair value	0
Total liabilities measured at fair value	$ 0

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4. Hempcoins (Details)	Jun. 30, 2016 USD ($)
Number of hempcoins held	110,000,000
Investment Owned, Fair Value	$ 59,416
Hempcoins
Investment Owned, Fair Value	$ 53,485

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5. Garycoins (Details)	Jun. 30, 2016 USD ($)
Number of Garycoins held	900,005,098
Investment Owned, Fair Value	$ 59,416
Garycoins
Investment Owned, Fair Value	$ 5,931

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6. Related Parties (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Proceeds from Related Parties	$ 142,300	$ 257,740
Due to Related Parties - Short Term	$ 167,212		$ 27,427
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Imputed Interest on Loans	$ 1,732
Due from Related Parties	248,182		$ 248,182
Kush
Due from Related Parties	$ 248,182

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7. Common Stock (Details) - USD ($)	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Stock issued in payment for a liability, value	$ 220,833
Stock returned to the company, value	479,558
Consultants
Consulting expense	51,960	$ 29,040
Consultants 2
Shares issued for services, Value	21,500	$ 40,726
Consultants 3
Shares issued for services, Value	40,000
Consultants 4
Shares issued for services, Value	160,000
Corporate Joint Venture
Stock issued in payment for a liability, value	$ 35,000
Common Stock
Stock issued in payment for a liability, shares	238,768
Stock returned to the company, shares	256,448
Common Stock | Consultants
Shares issued for services, Shares		50,000
Common Stock | Consultants 2
Shares issued for services, Shares	19,457	30,000
Common Stock | Consultants 3
Shares issued for services, Shares	25,000
Common Stock | Consultants 4
Shares issued for services, Shares	50,000
Common Stock | Corporate Joint Venture
Stock issued in payment for a liability, shares	30,000
Director
Allocated Share-based Compensation Expense	$ 80,612	$ 31,388
Director | Consultants
Professional Fees		$ 78,470
Shares issued for services, Value	75,000
Director | Consultants 5
Shares issued for services, Value	630,500
Director | Consultants 6
Shares issued for services, Value	$ 116,500
Director | Common Stock
Shares issued for services, Shares	5,000	5,000
Director | Common Stock | Consultants
Shares issued for services, Shares	72,115	87,500
Director | Common Stock | Consultants 5
Shares issued for services, Shares	400,000
Director | Common Stock | Consultants 6
Shares issued for services, Shares	150,000
Shares payable in the future	100,000

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8. Hi Brands International Inc. - Centuria Foods Agreement (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)
Revenues	$ 50,730	$ 617	$ 65,817	$ 1,719
Centuria Natural Foods, Inc.
Minimum Product Order Size, per month			5,000
Minimum Product Order Size			55,000
Revenues			$ 0

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10. Other Matters (Details)	6 Months Ended
	Jun. 30, 2016
Details
Dividend announced	special stock dividend of 1.5 restricted common shares for each share held
Record date	Nov. 16, 2015

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11. Subsequent Event (Details) - Subsequent Event	1 Months Ended
	Aug. 15, 2016 USD ($) shares
iBudtender Common Stock acquired by company	5,010,000
Business Acquisition Committments	Company will also contribute $105,000 to the working capital of iBudtender over the next five months, which contribution will then be repaid to the Company with interest over 24 months thereafter
iBudtender, Inc.
Ownership interest acquried	50.10%
Payments to Acquire Businesses, Gross | $	$ 50,000
iBudtender, Inc. | Common Stock
Stock issued in aquisition, shares	150,000