0001558370-21-011294.txt : 20210811 0001558370-21-011294.hdr.sgml : 20210811 20210811161621 ACCESSION NUMBER: 0001558370-21-011294 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 72 CONFORMED PERIOD OF REPORT: 20210630 FILED AS OF DATE: 20210811 DATE AS OF CHANGE: 20210811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL CANNABIS CORP CENTRAL INDEX KEY: 0001477009 STANDARD INDUSTRIAL CLASSIFICATION: MEDICINAL CHEMICALS & BOTANICAL PRODUCTS [2833] IRS NUMBER: 208096131 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-54457 FILM NUMBER: 211163612 BUSINESS ADDRESS: STREET 1: 6565 EAST EVANS AVENUE CITY: DENVER STATE: CO ZIP: 80224 BUSINESS PHONE: 303-759-1300 MAIL ADDRESS: STREET 1: 6565 EAST EVANS AVENUE CITY: DENVER STATE: CO ZIP: 80224 FORMER COMPANY: FORMER CONFORMED NAME: Advanced Cannabis Solutions, Inc. DATE OF NAME CHANGE: 20131023 FORMER COMPANY: FORMER CONFORMED NAME: Promap Corp DATE OF NAME CHANGE: 20091117 10-Q 1 cann-20210630x10q.htm 10-Q
000001477009--12-312021Q2falseNONE608136736226627524625018774230001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputSharePriceMember2021-06-300001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2021-06-300001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputPriceVolatilityMember2021-06-300001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputExpectedTermMember2021-06-300001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputExercisePriceMember2021-06-300001477009cann:TwentyThousandAndNineteenWarrantsMembercann:MeasurementInputNumberOfSharesUnderlyingWarrantsOutstandingMember2021-06-300001477009cann:Warrants10percentMemberus-gaap:MeasurementInputSharePriceMember2021-04-200001477009cann:Warrants10percentMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2021-04-200001477009cann:Warrants10percentMemberus-gaap:MeasurementInputPriceVolatilityMember2021-04-200001477009cann:Warrants10percentMemberus-gaap:MeasurementInputExpectedTermMember2021-04-200001477009cann:Warrants10percentMemberus-gaap:MeasurementInputExercisePriceMember2021-04-200001477009cann:Warrants10percentMemberus-gaap:MeasurementInputSharePriceMember2021-02-080001477009cann:Warrants10percentMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2021-02-080001477009cann:Warrants10percentMemberus-gaap:MeasurementInputPriceVolatilityMember2021-02-080001477009cann:Warrants10percentMemberus-gaap:MeasurementInputExpectedTermMember2021-02-080001477009cann:Warrants10percentMemberus-gaap:MeasurementInputExercisePriceMember2021-02-080001477009cann:Warrants10percentMemberus-gaap:MeasurementInputSharePriceMember2020-12-310001477009cann:Warrants10percentMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2020-12-310001477009cann:Warrants10percentMemberus-gaap:MeasurementInputPriceVolatilityMember2020-12-310001477009cann:Warrants10percentMemberus-gaap:MeasurementInputExercisePriceMember2020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputSharePriceMember2020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputPriceVolatilityMember2020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputExpectedTermMember2020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputExercisePriceMember2020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMembercann:MeasurementInputNumberOfSharesUnderlyingWarrantsOutstandingMember2020-12-310001477009srt:MinimumMembercann:Warrants15PercentMemberus-gaap:MeasurementInputSharePriceMember2020-03-310001477009srt:MinimumMembercann:Warrants15PercentMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2020-03-310001477009srt:MinimumMembercann:Warrants15PercentMemberus-gaap:MeasurementInputPriceVolatilityMember2020-03-310001477009srt:MinimumMembercann:Warrants15PercentMemberus-gaap:MeasurementInputExpectedTermMember2020-03-310001477009srt:MaximumMembercann:Warrants15PercentMemberus-gaap:MeasurementInputSharePriceMember2020-03-310001477009srt:MaximumMembercann:Warrants15PercentMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2020-03-310001477009srt:MaximumMembercann:Warrants15PercentMemberus-gaap:MeasurementInputPriceVolatilityMember2020-03-310001477009srt:MaximumMembercann:Warrants15PercentMemberus-gaap:MeasurementInputExpectedTermMember2020-03-310001477009cann:Warrants15PercentMemberus-gaap:MeasurementInputExercisePriceMember2020-03-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputSharePriceMember2019-05-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2019-05-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputPriceVolatilityMember2019-05-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputExpectedTermMember2019-05-310001477009cann:TwentyThousandAndNineteenWarrantsMemberus-gaap:MeasurementInputExercisePriceMember2019-05-310001477009cann:TwentyThousandAndNineteenWarrantsMembercann:MeasurementInputNumberOfSharesUnderlyingWarrantsOutstandingMember2019-05-310001477009cann:TwentyThousandAndNineteenWarrantsMember2020-05-012020-05-310001477009cann:TwentyThousandAndNineteenWarrantsMember2020-01-012020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMember2019-10-012019-12-310001477009us-gaap:CommonStockMember2021-04-012021-06-300001477009us-gaap:RetainedEarningsMember2021-06-300001477009us-gaap:AdditionalPaidInCapitalMember2021-06-300001477009us-gaap:RetainedEarningsMember2021-03-310001477009us-gaap:AdditionalPaidInCapitalMember2021-03-3100014770092021-03-310001477009us-gaap:RetainedEarningsMember2020-12-310001477009us-gaap:AdditionalPaidInCapitalMember2020-12-310001477009us-gaap:RetainedEarningsMember2020-06-300001477009us-gaap:AdditionalPaidInCapitalMember2020-06-300001477009us-gaap:RetainedEarningsMember2020-03-310001477009us-gaap:AdditionalPaidInCapitalMember2020-03-310001477009us-gaap:RetainedEarningsMember2019-12-310001477009us-gaap:AdditionalPaidInCapitalMember2019-12-310001477009us-gaap:CommonStockMember2021-06-300001477009us-gaap:CommonStockMember2021-03-310001477009us-gaap:CommonStockMember2020-12-310001477009us-gaap:CommonStockMember2020-06-300001477009us-gaap:CommonStockMember2020-03-310001477009us-gaap:CommonStockMember2019-12-310001477009cann:TwoThousandTwentyCapitalRaiseMember2020-12-310001477009cann:CultivationSalesMember2021-04-012021-06-300001477009cann:InterestIncomeRevenueMember2021-01-012021-06-300001477009cann:CultivationSalesMember2021-01-012021-06-300001477009cann:InterestIncomeRevenueMember2020-04-012020-06-300001477009cann:CultivationSalesMember2020-04-012020-06-300001477009cann:InterestIncomeRevenueMember2020-01-012020-06-300001477009cann:CultivationSalesMember2020-01-012020-06-300001477009cann:FifteenPercentNotesMember2021-01-012021-03-310001477009cann:FifteenPercentNotesMember2020-12-012020-12-310001477009us-gaap:RetainedEarningsMember2021-04-012021-06-300001477009us-gaap:RetainedEarningsMember2021-01-012021-06-300001477009us-gaap:RetainedEarningsMember2020-04-012020-06-300001477009us-gaap:RetainedEarningsMember2020-01-012020-06-300001477009srt:MinimumMembercann:TwoThousandTwentyCapitalRaiseMember2020-05-292020-05-290001477009srt:MaximumMembercann:TwoThousandTwentyCapitalRaiseMember2020-05-292020-05-290001477009cann:FifteenPercentNotesMember2020-01-012020-03-310001477009cann:FifteenPercentNotesMember2019-01-012019-12-310001477009cann:RelatedPartyLeaseAgreementMember2021-04-012021-06-300001477009cann:RelatedPartyLeaseAgreementMember2020-04-012020-06-300001477009cann:RelatedPartyLeaseAgreementMember2020-01-012020-06-300001477009cann:CommercialRealEstateLeaseMember2021-06-300001477009cann:Warrants10percentMemberus-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001477009cann:Warrants10percentMember2021-04-012021-06-300001477009cann:Warrants15PercentMemberus-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300001477009cann:Warrants15PercentMember2021-01-012021-06-300001477009us-gaap:ServiceMembercann:OperationsSegmentMember2021-04-012021-06-300001477009us-gaap:ProductMembercann:OperationsSegmentMember2021-04-012021-06-300001477009us-gaap:ServiceMembercann:OperationsSegmentMember2021-01-012021-06-300001477009us-gaap:ProductMembercann:OperationsSegmentMember2021-01-012021-06-300001477009us-gaap:ServiceMembercann:OperationsSegmentMember2020-04-012020-06-300001477009us-gaap:ProductMembercann:OperationsSegmentMember2020-04-012020-06-300001477009us-gaap:ServiceMembercann:OperationsSegmentMember2020-01-012020-06-300001477009us-gaap:ProductMembercann:OperationsSegmentMember2020-01-012020-06-300001477009us-gaap:DiscontinuedOperationsHeldforsaleMember2020-04-012020-06-300001477009us-gaap:DiscontinuedOperationsHeldforsaleMember2020-01-012020-06-300001477009us-gaap:DiscontinuedOperationsHeldforsaleMembercann:NextBigCropMember2021-07-160001477009us-gaap:DiscontinuedOperationsHeldforsaleMember2021-06-300001477009us-gaap:DiscontinuedOperationsHeldforsaleMember2020-12-310001477009cann:Warrants15PercentMember2021-06-300001477009cann:Warrants10percentMember2021-06-300001477009cann:EightPointFiveMember2021-06-300001477009us-gaap:InvestorMember2021-04-200001477009us-gaap:InvestorMember2021-02-080001477009cann:TenPercentNotes2020Member2021-02-080001477009us-gaap:InvestorMember2020-12-310001477009cann:TenPercentNotes2020Member2020-12-230001477009cann:Warrants15PercentMember2020-06-300001477009cann:Warrants15PercentMember2019-12-310001477009cann:TenPercentNotes2020Member2019-12-310001477009cann:TwelvePercentNotes2019Member2019-09-300001477009cann:FifteenPercentNotesMember2019-09-300001477009cann:TwelvePercentNotes2019Member2020-03-310001477009cann:FifteenPercentNotesMember2020-03-310001477009us-gaap:InvestorMember2021-04-202021-04-200001477009us-gaap:InvestorMember2021-02-082021-02-080001477009us-gaap:InvestorMember2020-12-012020-12-310001477009cann:TwoThousandTwentyCapitalRaiseMember2020-05-292020-05-290001477009srt:MinimumMemberus-gaap:InvestorMember2021-04-200001477009srt:MaximumMemberus-gaap:InvestorMember2021-04-200001477009srt:MinimumMemberus-gaap:InvestorMember2021-02-080001477009srt:MaximumMemberus-gaap:InvestorMember2021-02-080001477009srt:MinimumMemberus-gaap:InvestorMember2020-12-310001477009srt:MaximumMemberus-gaap:InvestorMember2020-12-310001477009cann:TenPercentNotes2020Member2021-06-300001477009cann:RelatedPartyNotePayableMember2021-06-300001477009cann:RelatedPartyNotePayableMember2021-05-310001477009cann:RelatedPartyNotePayableMember2020-12-310001477009cann:RelatedPartyNotePayableMember2020-12-230001477009cann:TenPercentNotes2020Member2020-12-012020-12-310001477009cann:WarrantC2020Member2020-01-012020-12-310001477009cann:WarrantB2020Member2020-01-012020-12-310001477009cann:Warrant2020Member2020-01-012020-12-310001477009cann:FifteenPercentNotesMember2020-01-012020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMember2021-06-300001477009cann:TwentyThousandAndNineteenWarrantsMember2019-12-310001477009cann:TenPercentNotes2020Member2020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMember2019-05-310001477009cann:Warrants10percentMember2021-02-080001477009cann:Warrants10percentMember2020-12-310001477009cann:TwentyThousandAndNineteenWarrantsMember2020-12-310001477009cann:TwoThousandTwentyCapitalRaiseMember2020-12-140001477009cann:Warrants15PercentMember2020-03-3100014770092020-03-3100014770092020-06-3000014770092019-12-310001477009cann:DaltonAdventuresLLCMember2020-12-310001477009cann:DaltonAdventuresLLCMember2020-05-132020-05-130001477009us-gaap:SegmentDiscontinuedOperationsMember2021-06-300001477009us-gaap:SegmentDiscontinuedOperationsMember2020-12-310001477009cann:RelatedPartyLeaseAgreementMember2021-06-300001477009cann:SevenfiveFarmMembercann:CultivationSegmentMember2020-05-310001477009cann:TenPercentNotesIssuedOnFebruary2021Member2021-04-012021-06-300001477009cann:TenPercentNotesIssuedOnApril2021Member2021-04-012021-06-300001477009cann:TenPercentNotes2020Member2021-04-012021-06-300001477009cann:FifteenPercentNotesMember2021-04-012021-06-300001477009cann:TenPercentNotesIssuedOnFebruary2021Member2021-01-012021-06-300001477009cann:TenPercentNotesIssuedOnApril2021Member2021-01-012021-06-300001477009cann:TenPercentNotes2020Member2021-01-012021-06-300001477009cann:FifteenPercentNotesMember2021-01-012021-06-300001477009cann:TenPercentNotesIssuedOnFebruary2021Member2020-04-012020-06-300001477009cann:TenPercentNotesIssuedOnApril2021Member2020-04-012020-06-300001477009cann:TenPercentNotes2020Member2020-04-012020-06-300001477009cann:FifteenPercentNotesMember2020-04-012020-06-300001477009cann:TenPercentNotesIssuedOnFebruary2021Member2020-01-012020-06-300001477009cann:TenPercentNotesIssuedOnApril2021Member2020-01-012020-06-300001477009cann:TenPercentNotes2020Member2020-01-012020-06-300001477009cann:FifteenPercentNotesMember2020-01-012020-06-300001477009cann:Warrants10percentMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001477009cann:TenPercentNotesIssuedOnApril2021Membercann:DebtDiscountMember2021-04-200001477009cann:Warrants10percentMember2021-04-200001477009cann:Warrants10percentMembercann:DebtDiscountMember2021-02-080001477009cann:TenPercentNotesIssuedOnFebruary2021Membercann:DebtDiscountMember2021-02-080001477009cann:Warrants15PercentMembercann:DebtDiscountMember2020-12-310001477009cann:Warrants10percentMembercann:GainLossOnDebtExtinguishmentMember2020-12-310001477009cann:Warrants10percentMembercann:DebtDiscountMember2020-12-310001477009cann:FifteenPercentNotesMembercann:GainLossOnDebtExtinguishmentMember2020-12-3100014770092021-08-090001477009cann:Warrant2020Member2021-06-300001477009cann:TwentyThousandAndNineteenWarrantsMember2021-03-310001477009cann:TwoThousandTwentyCapitalRaiseMember2020-06-010001477009cann:TwoThousandTwentyCapitalRaiseMember2020-05-290001477009srt:MinimumMembercann:TwoThousandTwentyCapitalRaiseMember2020-05-290001477009srt:MaximumMembercann:TwoThousandTwentyCapitalRaiseMember2020-05-290001477009us-gaap:OperatingSegmentsMembercann:CultivationMember2021-04-012021-06-300001477009us-gaap:IntersegmentEliminationMember2021-04-012021-06-300001477009us-gaap:OperatingSegmentsMembercann:CultivationMember2021-01-012021-06-300001477009us-gaap:IntersegmentEliminationMember2021-01-012021-06-300001477009us-gaap:OperatingSegmentsMembercann:CultivationMember2020-04-012020-06-300001477009us-gaap:OperatingSegmentsMembercann:CultivationMember2020-01-012020-06-300001477009cann:RelatedPartyConsultingServicesAgreementMember2020-06-032020-06-030001477009cann:RelatedPartyConsultingServicesAgreementMember2021-04-012021-06-300001477009cann:RelatedPartyConsultingServicesAgreementMember2021-01-012021-06-300001477009cann:RelatedPartyConsultingServicesAgreementMember2020-04-012020-06-300001477009cann:RelatedPartyConsultingServicesAgreementMember2020-01-012020-06-3000014770092021-04-012021-04-300001477009cann:TwentyThousandAndNineteenWarrantsMember2019-05-312019-05-310001477009cann:RelatedPartyLeaseAgreementMember2021-01-012021-06-300001477009srt:ScenarioForecastMembercann:CommercialRealEstateLeaseMember2022-12-310001477009srt:ScenarioForecastMembercann:CommercialRealEstateLeaseMember2021-12-310001477009cann:FifteenPercentNotesMember2020-02-012020-03-310001477009cann:SevenfiveFarmMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembercann:CultivationSegmentMember2021-04-012021-06-300001477009cann:SevenfiveFarmMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembercann:CultivationSegmentMember2021-01-012021-06-3000014770092020-12-232020-12-230001477009cann:Warrant2020Member2021-01-012021-06-300001477009cann:TwentyThousandAndNineteenWarrantsMember2021-01-012021-03-310001477009cann:CommercialRealEstateLeaseMember2020-05-132020-05-130001477009cann:CommercialRealEstateLeaseMember2020-12-310001477009cann:CommercialRealEstateLeaseMember2020-05-130001477009cann:CommercialRealEstateLeaseMember2020-12-012020-12-3100014770092020-01-012020-12-310001477009cann:Warrants10percentMember2021-01-012021-06-300001477009cann:Warrants15PercentMember2020-01-012020-06-300001477009cann:OperationsSegmentMember2021-06-300001477009cann:OperationsSegmentMember2020-12-310001477009cann:OperationsSegmentMember2021-04-012021-06-300001477009cann:OperationsSegmentMember2021-01-012021-06-300001477009cann:OperationsSegmentMember2020-04-012020-06-300001477009cann:OperationsSegmentMember2020-01-012020-06-300001477009us-gaap:DiscontinuedOperationsHeldforsaleMembercann:NextBigCropMemberus-gaap:SubsequentEventMember2021-07-162021-07-160001477009us-gaap:DiscontinuedOperationsHeldforsaleMembercann:NextBigCropMember2021-07-162021-07-160001477009us-gaap:DiscontinuedOperationsHeldforsaleMembercann:NextBigCropMemberus-gaap:SubsequentEventMember2021-07-160001477009us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001477009cann:FifteenPercentNotesMember2019-12-310001477009cann:TwoThousandTwentyCapitalRaiseMember2020-10-040001477009cann:TenPercentNotesIssuedOnApril2021Member2021-04-200001477009cann:TenPercentNotesIssuedOnFebruary2021Member2021-02-080001477009us-gaap:SegmentContinuingOperationsMember2021-04-012021-06-300001477009us-gaap:SegmentContinuingOperationsMember2021-01-012021-06-300001477009us-gaap:SegmentContinuingOperationsMember2020-04-012020-06-300001477009us-gaap:SegmentContinuingOperationsMember2020-01-012020-06-300001477009srt:MaximumMemberus-gaap:InvestorMember2021-04-202021-04-200001477009cann:TenPercentNotesIssuedOnApril2021Member2021-04-202021-04-200001477009srt:MaximumMemberus-gaap:InvestorMember2021-02-082021-02-080001477009cann:Warrants10percentMember2021-02-082021-02-080001477009srt:MaximumMemberus-gaap:InvestorMember2020-12-012020-12-310001477009cann:Warrants10percentMember2020-12-012020-12-310001477009cann:TwoThousandTwentyCapitalRaiseMember2020-12-142020-12-140001477009us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001477009us-gaap:CommonStockMember2021-01-012021-06-300001477009cann:TwoThousandAndTwentyWarrantsMember2020-12-012020-12-310001477009us-gaap:CommonStockMember2020-04-012020-06-300001477009us-gaap:CommonStockMember2020-01-012020-06-3000014770092021-06-3000014770092020-12-310001477009cann:DaltonAdventuresLLCMember2020-05-130001477009cann:TwoThousandTwentyCapitalRaiseMember2020-01-012020-12-310001477009us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001477009us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001477009us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300001477009us-gaap:OperatingSegmentsMember2021-06-300001477009us-gaap:IntersegmentEliminationMember2021-06-300001477009us-gaap:CorporateMember2021-06-300001477009cann:CultivationMember2021-06-300001477009us-gaap:OperatingSegmentsMember2020-12-310001477009us-gaap:IntersegmentEliminationMember2020-12-310001477009us-gaap:CorporateMember2020-12-310001477009cann:CultivationMember2020-12-310001477009cann:ColoradoAndOregonSellersMember2021-04-182021-04-1800014770092021-04-012021-06-3000014770092020-04-012020-06-3000014770092020-01-012020-06-300001477009cann:FifteenPercentNotesMember2020-12-3100014770092021-01-012021-06-300001477009us-gaap:EmployeeStockOptionMember2021-06-300001477009us-gaap:EmployeeStockOptionMember2020-12-31cann:Yxbrli:sharesiso4217:USDxbrli:pureiso4217:USDxbrli:sharescann:itemcann:customercann:EquityInstrumentsutr:sqftcann:segment

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the quarterly period ended June 30, 2021.

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:  000-54457

GENERAL CANNABIS CORP

(Exact name of registrant as specified in its charter)

Colorado

    

90-1072649

(State of incorporation)

(IRS Employer Identification No.)

6565 East Evans Avenue
Denver, CO 80224

(Address of principal executive offices) (Zip Code)

(303) 759-1300

(Registrant’s Telephone Number, Including Area Code)

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

Title of each class

Name of each exchange on which registered

Ticker symbol

N/A

N/A

N/A

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 the filing requirements for the past 90 days. Yes þ   No

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

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

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No þ

As of August 9, 2021, there were 62,299,419 issued and outstanding shares of the Company's  common stock.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GENERAL CANNABIS CORP

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2021

(Unaudited)

December 31, 2020

Assets

 

  

 

  

Current assets

 

  

 

  

Cash and cash equivalents

$

2,307,604

$

750,218

Accounts receivable, net of allowance of $30,000 and $9,000, respectively

 

178,784

 

140,605

Current portion of notes receivable, net of allowance of nil and $125,000, respectively

350,000

Inventories, net

590,983

371,799

Prepaid expenses and other current assets

 

198,176

 

225,122

Assets of discontinued operations - current portion

 

284,700

 

712,010

Total current assets

 

3,560,247

 

2,549,754

Right-of-use operating lease asset

1,816,632

1,836,455

Property and equipment, net

642,769

411,525

Investment, held for sale

 

 

208,761

Intangible assets, net

887,500

984,375

Goodwill

2,484,200

2,484,200

Assets of discontinued operations

35,178

43,697

Total assets

$

9,426,526

$

8,518,767

Liabilities and Stockholders' Equity

 

 

Current liabilities

 

 

  

Accounts payable and accrued expenses

$

856,093

$

1,344,269

Interest payable

 

296,207

 

16,790

Operating lease liability, current

376,362

370,800

Accrued stock payable

 

60,900

 

94,861

Warrant derivative liability

 

134,234

 

561,368

Liabilities of discontinued operations

 

138,461

 

742,064

Total current liabilities

 

1,862,257

 

3,130,152

Operating lease liability, non-current

1,495,394

1,499,280

Long-term notes payable (net of discount)

4,272,858

2,598,965

Related party long-term notes payable (net of discount)

280,137

289,579

Total liabilities

7,910,646

7,517,976

Commitments and contingencies (Note 9)

Stockholders’ equity

 

  

 

  

Preferred stock, no par value; 5,000,000 shares authorized; no shares issued and outstanding, respectively

Common stock, $0.001 par value; 200,000,000 shares authorized; 62,266,275 shares and 60,813,673 shares issued and outstanding, respectively

62,264

60,813

Additional paid-in capital

 

80,140,373

 

75,891,414

Accumulated deficit

 

(78,686,757)

 

(74,951,436)

Total stockholders’ equity

 

1,515,880

 

1,000,791

Total liabilities and stockholders’ equity

$

9,426,526

$

8,518,767

See Notes to condensed consolidated financial statements.

3

GENERAL CANNABIS CORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

    

Three months ended

Six months ended

June 30, 

June 30, 

2021

2020

2021

2020

Revenue

 

Cultivation sales

$

698,608

$

509,175

$

1,347,941

$

509,175

Interest

45,369

14,472

62,098

Total revenue

698,608

554,544

1,362,413

571,273

Costs and expenses

Cost of sales

511,426

281,243

1,066,631

281,243

Selling, general and administrative

582,059

862,029

1,180,750

1,713,265

Stock-based compensation

(41,648)

434,365

62,284

1,006,939

Professional fees

353,833

508,991

616,148

1,106,027

Depreciation and amortization

72,788

21,097

190,469

49,201

Total costs and expenses

1,478,458

2,107,725

3,116,282

4,156,675

Operating loss

(779,850)

(1,553,181)

(1,753,869)

(3,585,402)

Other expenses (income)

Amortization of debt discount and equity issuance costs

185,460

72,516

253,790

138,837

Interest expense

190,627

103,672

293,683

274,720

Loss on extinguishment of debt

48,908

1,186,336

(Gain) loss on derivative liability

(102,761)

4,541

1,095,983

(1,371,079)

(Gain) loss on sale of assets

(82)

1,467

(139,187)

Total other expenses, net

273,326

229,555

1,644,923

89,627

Net loss from continuing operations before income taxes

(1,053,176)

(1,782,736)

(3,398,792)

(3,675,029)

Loss from discontinued operations

(323,077)

(117,636)

(336,529)

(239,522)

Loss from operations before income taxes

(1,376,253)

(1,900,372)

(3,735,321)

(3,914,551)

Provision for income taxes

40,535

40,535

Net loss

(1,376,253)

(1,940,907)

(3,735,321)

(3,955,086)

Deemed dividend

(98,000)

(98,000)

Net loss attributable to common stockholders

$

(1,376,253)

$

(2,038,907)

$

(3,735,321)

$

(4,053,086)

Per share data - basic and diluted

Net loss from continuing operations per share

$

(0.02)

$

(0.04)

$

(0.05)

$

(0.09)

Net loss from discontinued operations per share

$

0.00

$

0.00

$

(0.01)

$

0.00

Net loss attributable to common stockholders per share

$

(0.02)

$

(0.04)

$

(0.06)

$

(0.09)

Weighted average number of common shares outstanding

62,183,748

46,013,634

61,972,553

42,841,140

See Notes to condensed consolidated financial statements.

4

GENERAL CANNABIS CORP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six months ended June 30, 

2021

2020

Cash flows from operating activities

  

 

  

Net loss

$

(3,735,321)

$

(3,955,086)

Adjustments to reconcile net loss to net cash used in operating activities:

 

  

 

  

Amortization of debt discount and equity issuance costs

 

253,790

 

138,837

Depreciation and amortization

 

198,988

 

65,409

Amortization of loan origination fees

(4,973)

Loss on extinguishment of debt

1,186,336

Non-cash lease expense

206,900

50,328

Bad debt expense

(21,163)

128,491

Loss on disposal of property and equipment

2,967

5,183

Loss (gain) on warrant derivative liability

 

1,095,983

 

(1,371,079)

Stock-based compensation

 

62,284

 

1,006,939

Gain on sale of building

(139,187)

Changes in operating assets and liabilities, net of acquisitions

 

 

Accounts receivable

 

(175,676)

 

(344)

Prepaid expenses and other assets

 

529,224

 

107,115

Inventories

 

(219,184)

 

32,792

Accounts payable and accrued liabilities

(712,362)

(414,877)

Operating lease liabilities

(185,401)

(45,000)

Income taxes

40,535

Net cash used in operating activities:

 

(2,698,972)

 

(3,168,581)

Cash flows from investing activities

 

  

 

  

Purchase of property and equipment

 

(327,805)

 

(79,427)

Proceeds from sale of investment

208,761

Proceeds on notes receivable

433,393

Proceeds from sale of building

1,421,134

Net cash provided by investing activities

 

314,349

 

1,341,707

Cash flows from financing activities

 

  

 

Proceeds from the sale of common stock and warrants - accrued stock payable

2,185,000

Proceeds from the exercise of warrants

90,000

Proceeds from exercise of stock options

181,709

Proceeds from notes payable

3,960,000

1,500,000

Payments on notes payable

(200,000)

(975,000)

Net cash provided by financing activities

 

3,941,709

 

2,800,000

Net increase in cash and cash equivalents

 

1,557,086

 

973,126

Cash and cash equivalents, beginning of period

 

755,769

 

224,994

Cash and cash equivalents, end of period

$

2,312,855

$

1,198,120

Supplemental schedule of cash flow information

 

  

 

  

Cash paid for interest

$

14,266

$

273,167

Non-cash investing & financing activities

 

  

 

  

Cashless warrant exercises

$

1,557,078

$

903,779

Beneficial conversion feature

$

1,110,039

$

233,500

10% Warrants recorded as a debt discount and additional paid-in capital

$

1,239,300

$

Issuance of common stock to a consultant

$

100,000

$

Deemed dividend from 8.5% warrant repricing

$

$

98,000

Operating lease right-of-use asset/operating lease liability

$

$

2,721,069

15% Warrants recorded as a debt discount and additional paid-in capital

$

$

167,163

15% Warrants recorded as a loss on extinguishment of debt and additional paid-in capital

$

$

668,336

Debt converted to equity

$

$

957,056

Issuance of common stock to an employee

$

$

100,000

Stock issued in connection with SevenFive Farm acquisition

$

$

2,861,495

See Notes to condensed consolidated financial statements.

5

GENERAL CANNABIS CORP

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES

IN STOCKHOLDERS’ EQUITY (DEFICIT)

For the three months ended June 30, 2021

Common Stock

Additional

Accumulated

Shares

Amount

Paid-in Capital

Deficit

Total

April 1, 2021

    

62,146,515

    

$

62,144

    

$

78,632,934

    

$

(77,310,504)

    

$

1,384,574

Common stock issued upon exercise of stock options

119,760

 

120

 

46,587

 

 

46,707

Warrants issued with 10% Notes

 

 

 

810,000

 

 

810,000

Beneficial conversion feature

692,500

692,500

Stock-based compensation

(41,648)

(41,648)

Net loss

 

 

 

 

(1,376,253)

 

(1,376,253)

June 30, 2021

 

62,266,275

$

62,264

$

80,140,373

$

(78,686,757)

$

1,515,880

For the three months ended June 30, 2020

Common Stock

Additional

Accumulated

Shares

Amount

Paid-in Capital

Deficit

Total

April 1, 2020

40,281,881

    

$

40,282

    

$

63,550,821

    

$

(69,285,923)

    

$

(5,694,820)

Common stock issued for acquisition of SevenFive Farm

8,859,117

 

8,859

 

1,894,522

 

 

1,903,381

Common stock issued upon conversion of debt

1,674,226

1,674

705,382

707,056

Stock-based compensation

434,367

434,367

Cashless exercise of warrants

373,340

374

821,164

821,538

Net loss

 

 

 

(1,940,907)

 

(1,940,907)

June 30, 2020

51,188,564

$

51,189

$

67,406,256

$

(71,226,830)

$

(3,769,385)

    

For the six months ended June 30, 2021

Common Stock

Additional

Accumulated

    

Shares

    

Amount

    

Paid-in Capital

    

Deficit

    

Total

January 1, 2021

60,813,673

$

60,813

$

75,891,414

$

(74,951,436)

$

1,000,791

Common stock issued to a consultant

112,359

 

112

 

99,888

 

 

100,000

Common stock issued upon exercise of stock options

333,620

 

334

 

181,375

 

 

181,709

Warrants issued with 10% Notes

 

 

1,239,300

 

 

1,239,300

Beneficial conversion feature

1,110,039

1,110,039

Cashless exercise of warrants

1,006,623

1,005

1,556,073

1,557,078

Stock-based compensation

62,284

62,284

Net loss

 

 

 

(3,735,321)

 

(3,735,321)

June 30, 2021

62,266,275

$

62,264

$

80,140,373

$

(78,686,757)

$

1,515,880

For the six months ended June 30, 2020

Common Stock

Additional

Accumulated

Shares

    

Amount

    

Paid-in Capital

    

Deficit

    

Total

January 1, 2020

39,497,480

$

39,498

$

61,468,034

$

(67,271,744)

$

(5,764,212)

Sale of common stock, net of issuance costs

42,735

 

43

 

99,957

 

 

100,000

Common stock issued upon conversion of debt

2,215,892

2,215

954,841

957,056

Common stock issued for acquisition of SevenFive Farm

8,859,117

 

8,859

 

1,894,522

 

 

1,903,381

Stock-based compensation

 

 

926,698

 

 

926,698

Beneficial conversion feature

 

 

233,500

 

 

233,500

Warrants exercised

200,000

200

172,041

172,241

Warrants issued with the 15% Notes

835,499

835,499

Cashless exercise of warrants

373,340

374

821,164

821,538

Net loss

 

 

 

(3,955,086)

 

(3,955,086)

June 30, 2020

51,188,564

$

51,189

$

67,406,256

$

(71,226,830)

$

(3,769,385)

See Notes to condensed consolidated financial statements.

6

GENERAL CANNABIS CORP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1.  NATURE OF OPERATIONS, HISTORY AND PRESENTATION

Nature of Operations

General Cannabis Corp, a Colorado Corporation (the “Company,” “we,” “us,” or “our,”) (formerly, Advanced Cannabis Solutions, Inc.), was incorporated on June 3, 2013, and provides services and products to the regulated cannabis industry. We currently trade on the OTCQB® Market under the trading symbol CANN. As of June 30, 2021, our operations are segregated into the following segments:

Cultivation (“Cultivation Segment”)

Through our acquisition of SevenFive Farm ("SevenFive") in May 2020, we operate a 17,000 square foot licensed light deprivation greenhouse cultivation facility.

During the three and six months ended June 30, 2021, 11% of SevenFive’s revenue was with one customer.

Discontinued Operations - Operations Consulting and Products (“Operations Segment”)

Through Next Big Crop (“NBC”), we deliver comprehensive consulting services to the cannabis industry that include obtaining licenses, compliance, cultivation, retail operations, logistical support, facility design and construction, and expansion of existing operations.

NBC oversees our wholesale equipment and supply business, operated under the name “GC Supply,” which provides turnkey sourcing and stocking services to cultivation, retail and infused products manufacturing facilities. Our products include building materials, equipment, consumables and compliance packaging. There are generally multiple suppliers for the products we sell; however, there are a limited number of manufacturers of certain high-tech cultivation equipment. NBC also provides operational support for our internal cultivation. In June 2021, we began talks with an individual to begin the sale of NBC. On July 16, 2021, we entered into an Asset Purchase Agreement with this individual to sell substantially all of the assets of NBC for a total of $150,000 and 10% of profits generated by the buyer in the states of Michigan, Mississippi, and Massachusetts for a period of twelve months from the closing. On August 2, 2021, the sale of NBC was completed.

Basis of Presentation

The accompanying condensed consolidated financial statements include all accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States of America ("U.S. GAAP") can be condensed or omitted. The condensed consolidated balance sheet for the year ended December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto of the Company for the year ended December 31, 2020 which were included in the annual report on Form 10-K filed by the Company on April 1, 2021.

In the opinion of management, these condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and notes thereto of the Company and include all adjustments, consisting only of normal recurring adjustments, considered necessary for the fair presentation of the Company's financial position and operating results. The results for the three and six months ended June 30, 2021 are not necessarily indicative of the

7

operating results for the year ending December 31, 2021, or any other interim or future periods. Since the date of the Annual Report, there have been no material changes to the Company’s significant accounting policies.

Reclassifications

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result. In particular, the COVID-19 pandemic has adversely impacted and is likely to further adversely impact the Company's business and markets. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company's business, results of operations and financial condition, including revenues, expenses, reserves and allowances, fair value measurements and asset impairment charges, will depend on future developments that are highly uncertain and difficult to predict. These developments include, but are not limited to, the duration and spread of the pandemic, its severity in our markets and elsewhere, governmental actions to contain the spread of the pandemic and respond to the reduction in global economic activity, and how quickly and to what extent normal economic and operating conditions can resume.

Discontinued Operations

In June 2021, we began talks with an individual to begin the sale of NBC. On July 16, 2021, we entered into an Asset Purchase Agreement with this individual to sell substantially all of the assets of NBC for a total of $150,000 and 10% of profits generated by the buyer in the states of Michigan, Mississippi, and Massachusetts for a period of twelve months from the closing. On August 2, 2021, the sale of NBC was completed. The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows. As of June 30, 2021, and December 31, 2020, there are $5,251 and $5,551, respectively, of cash and cash equivalents included in asset of discontinued operations on the balance sheet.

On January 1, 2021, we discontinued our investments segment. As this is not a materially significant segment, we have not shown the effects of the discontinued segment in the financial statements.

On December 26, 2019, the board of directors and management made the strategic decision to discontinue the operations for both the Security Segment and the Consumer Goods Segment. The assets and liabilities classified as discontinued operations for the Security Segment and Consumer Goods Segment are presented separately in the balance sheet and the operating results. The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows.

Going Concern

The Company incurred net losses of $1.4 million and $3.7 million in three and six months ended June 30, 2021, respectively, and $1.9 million and $4.0 million for the three and six months ended June 30 2020, respectively, and had an accumulated deficit of $78.7 million as of June 30, 2021. The Company had cash and cash equivalents of $2.3 million and $0.8 million as of June 30, 2021 and December 31, 2020, respectively.

The accompanying consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets, and the satisfaction of liabilities and commitments in the ordinary course of business. The Company has incurred recurring losses and negative cash flows from operations since inception and has primarily funded its

8

operations with proceeds from the issuance of convertible debt. The Company expects its operating losses to continue into the foreseeable future as it continues to execute its acquisition and growth strategy.

The Company believes that its cash and cash equivalents as of June 30, 2021 will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the date of filing this Quarterly Report on Form 10-Q due to the receipt of an additional $2.3 million of cash in April 2021 from the issuance of a convertible note offering and the pending acquisition of three dispensaries (See Note 13 for further information). The Company may need additional funding to support its planned investing activities. If the Company is unable to obtain additional funding, it would be forced to delay, reduce or eliminate some or all of its acquisition efforts, which could adversely affect its business prospects.

Summary of Significant Accounting Policies

See our Annual Report on Form 10-K for the year ended December 31, 2020, for discussion of the Company's significant accounting policies.

Recently Issued Accounting Standards

FASB ASU 2020-06 – “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”- In June 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Accounting Standards Updates (“ASU”) also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2021, although early adoption is permitted. We are in the process of evaluating the impact of this new guidance on our consolidated financial statements.

FASB ASU 2019-12 – “Income Taxes (Topic 740)” – In December 2019, the FASB issued guidance which simplifies certain aspects of accounting for income taxes. The guidance is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. We adopted this ASU in the first quarter of 2021. This ASU did not have a material effect on our condensed consolidated financial statements.

NOTE 2. BUSINESS ACQUISITION

On May 13, 2020, we received approval of the transaction and transfer of the Dalton Adventures, LLC (“Seller”) license from the Colorado Marijuana Enforcement Division. On May 25, 2020, we finalized the acquisition, pursuant to which we acquired the assets of the Seller that constitute the business of SevenFive Farm, a cultivation facility in Boulder, Colorado, whereby we acquired fixed assets, inventory, a cultivation license and the tradename. The purchase price paid by the Company to the Seller was 8,859,117 shares of common stock. The closing price of General Cannabis Corp’s common stock on May 13, 2020, the date of license transfer, was $0.38 per share, as such, fair value of consideration is $3,808,951. The purchase agreement had a provision whereby the Seller may require us to repurchase in cash 25% of the shares issued to the owner of Dalton Adventures, LLC at a repurchase price equal to the same volume weighted average price used to determine the number of shares issued to the owner of Dalton Adventures, LLC at closing. As a result, we recorded a liability using Black-Scholes in the amount of $442,487 and reduced additional paid-in capital. In December 2020, the Seller waived his right to this provision in the purchase agreement and no longer has the possibility of the buyback of the shares. Therefore, no stock put liability is recorded as of December 31, 2020 and the liability was reversed into equity. We completed the allocation of the purchase price in the first quarter of 2021.

9

The table below reflects the Company’s estimates of the acquisition date fair values of the assets acquired:

Inventories

$

185,261

Fixed assets

    

89,490

Tradename

 

1,050,000

Goodwill

 

2,484,200

$

3,808,951

The accompanying condensed consolidated financial statements include the results of SevenFive from the date of acquisition for financial reporting purposes, May 13, 2020. The pro forma effects of the acquisition on the results of operations as if the transaction had been completed on January 1, 2020, are as follows:

    

Three months ended

    

Six months ended

June 30, 

June 30, 

2020

2020

Total revenues

$

860,729

$

1,525,501

Net loss attributable to common stockholders

$

(2,016,845)

$

(3,875,288)

Net loss per common share:

$

(0.04)

$

(0.09)

Weighted average number of basic and diluted common shares outstanding

46,013,634

42,841,140

The unaudited proforma results of operations are presented for information purposes only. The unaudited pro-forma results are not intended to present actual results that would have been attained had the acquisition been completed as of January 1, 2020, or to project potential operating results as of any future date or for any future periods.

NOTE 3. DISCONTINUED OPERATIONS

In June 2021, we began talks with an individual to begin the sale of NBC. On July 16, 2021, we entered into an Asset Purchase Agreement with this individual to sell substantially all of the assets of NBC for a total of $150,000 and 10% of profits generated by the buyer in the states of Michigan, Mississippi, and Massachusetts for a period of twelve months from the closing. On August 2, 2021, the sale of NBC was completed. The condensed consolidated balance sheets include 2019 discontinued operations cash balances of $5,251 and $5,551 as of June 30, 2021 and December 31, 2020, respectively, and accounts payable balances of $53,128 and $54,641 as of June 30, 2021 and December 31, 2020, respectively. The below table does not include the 2019 discontinued operations.

Assets and liabilities of discontinued operations for the Operations Segment included the following:

June 30, 

December 31, 

    

2021

    

2020

Accounts receivable, net

$

262,453

$

187,185

Prepaid expenses and other current assets

 

16,996

 

519,274

Current assets discontinued operations

279,449

706,459

Property and equipment, net

35,178

43,697

Noncurrent assets discontinued operations

35,178

43,697

Accounts payable and accrued expenses

34,187

169,492

Customer deposits

51,146

517,931

Current liabilities discontinued operations

$

85,333

$

687,423

A summary of the discontinued operations for the Operations Segment is presented as follows:

10

Three months ended

Six months ended

June 30, 

June 30, 

    

2021

    

2020

    

2021

    

2020

Product revenues

$

53,865

$

1,127,417

$

614,301

$

2,466,490

    

Service revenues

96,129

54,364

519,878

362,750

Total revenues

149,994

1,181,781

1,134,179

2,829,240

Cost of sales

286,663

1,030,461

 

1,127,555

 

2,454,441

Selling, general and administrative

177,947

264,659

 

329,833

 

453,357

Professional fees

4,202

5,670

 

4,801

 

5,670

Depreciation and amortization

4,259

3,860

8,519

7,669

Total costs and expenses

473,071

1,304,650

 

1,470,708

 

2,921,137

Loss from discontinued operations

$

(323,077)

$

(122,869)

$

(336,529)

$

(91,897)

The condensed consolidated statement of operations include 2019 discontinued operations gain of $5,233 and loss of $147,625 for the three and six months ended June 30, 2020, respectively, and are not reflected in the above table.

The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows. The following table provides selected information on cash flows related to discontinued operations for the Operations Segment for the six months ended June 30, 2021 and 2020.

Six months ended

June 30, 

    

2021

    

2020

Accounts receivables

$

(75,268)

$

10,350

Prepaid expenses and other current assets

502,278

100,884

Depreciation and amortization

8,519

7,669

Capital expenditures