RELATED PARTY TRANSACTIONS	9 Months Ended
Sep. 30, 2022
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 11. RELATED PARTY TRANSACTIONS On June 3, 2020, we entered into a consulting agreement with Adam Hershey, Interim Chief Executive Officer, board member and investor, pursuant to which he would act as a strategic consultant for the Company, including providing assistance with the sourcing and evaluation of merger and acquisition deals, strategic capital, and strategic partnerships or joint ventures. Mr. Hershey is paid an initial monthly rate of $8,333 for the services, subject to certain adjustments. On September 16, 2022, we entered into a new consulting agreement with Adam Hershey, in which Mr. Hershey will continue to serve as our Interim Chief Executive Officer with compensation equal to $200,000 per annum, payable monthly. The term of the Consulting Agreement is for a period of one year, with automatic six-month renewals. In addition to the Consulting Agreement, we agreed to extend Mr. Hershey’s warrants to purchase 7,280,007 shares of Common Stock for an additional two years, with an expiration date of May 29, 2027. The modification of warrants were recorded as equity and equity issuance costs in the amount of $367,445. We paid $24,999 for the three months ended September 30, 2022 and 2021 and $74,997 for the nine months ended September 30, 2022 and 2021. On September 16, 2022, we entered into a consulting agreement with Ed Myers in which Mr. Myers will serve as our Chief Operating Officer. Mr. Myers will receive compensation expense equal to $200,000 per annum, payable monthly. Payments are to start October 1, 2022. We currently have a lease agreement with Dalton Adventures, LLC in which we rent 17,000 square feet of greenhouse space in Boulder, Colorado for $29,691 a month, of which $27,000 is base rent and $2,691 is property taxes. The owner of Dalton Adventures, LLC is a principal shareholder and board member of the Company. We have paid approximately $89,073 and $115,000 in rent for the three months ended September 30, 2022 and 2021, respectively and $267,219 and $344,000 in rent for the nine months ended September 30, 2022 and 2021, respectively. We had a lease agreement with Bellewood Holdings, LLC in which we rented retail space for the Trees Englewood retail store in Englewood, Colorado for $11,287 per month, of which $10,000 is base rent and $1,287 is property taxes. The owner of Bellewood Holdings, LLC is a principal shareholder and board member of the Company. In June 2022, the building was sold to an unrelated party. We paid approximately nil of rent expense for the three months ended September 30, 2022 and 2021, respectively and $52,287 and nil for the nine months ended September 30, 2022 and 2021, respectively. On December 23, 2020, four of our current board members purchased senior convertible promissory notes from the Company for an aggregate amount of $320,000. These notes are included in the 10% Notes discussed in Note 7. On September 15, 2022, all four of our current board members transferred a portion of their 10% Note amounts and some accrued interest into the 12% Notes discussed in Note 7. The total amount rolled was $332,204. Accrued interest earned and owed to the board members was $1,292 as of September 30, 2022.

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2022

NOTE 11. RELATED PARTY TRANSACTIONS

On June 3, 2020, we entered into a consulting agreement with Adam Hershey, Interim Chief Executive Officer, board member and investor, pursuant to which he would act as a strategic consultant for the Company, including providing assistance with the sourcing and evaluation of merger and acquisition deals, strategic capital, and strategic partnerships or joint ventures. Mr. Hershey is paid an initial monthly rate of $8,333 for the services, subject to certain adjustments. On September 16, 2022, we entered into a new consulting agreement with Adam Hershey, in which Mr. Hershey will continue to serve as our Interim Chief Executive Officer with compensation equal to $200,000 per annum, payable monthly. The term of the Consulting Agreement is for a period of one year, with automatic six-month renewals. In addition to the Consulting Agreement, we agreed to extend Mr. Hershey’s warrants to purchase 7,280,007 shares of Common Stock for an additional two years, with an expiration date of May 29, 2027. The modification of warrants were recorded as equity and equity issuance costs in the amount of $367,445. We paid $24,999 for the three months ended September 30, 2022 and 2021 and $74,997 for the nine months ended September 30, 2022 and 2021.

On September 16, 2022, we entered into a consulting agreement with Ed Myers in which Mr. Myers will serve as our Chief Operating Officer. Mr. Myers will receive compensation expense equal to $200,000 per annum, payable monthly. Payments are to start October 1, 2022.

We currently have a lease agreement with Dalton Adventures, LLC in which we rent 17,000 square feet of greenhouse space in Boulder, Colorado for $29,691 a month, of which $27,000 is base rent and $2,691 is property taxes. The owner of Dalton Adventures, LLC is a principal shareholder and board member of the Company. We have paid approximately $89,073 and $115,000 in rent for the three months ended September 30, 2022 and 2021, respectively and $267,219 and $344,000 in rent for the nine months ended September 30, 2022 and 2021, respectively.

We had a lease agreement with Bellewood Holdings, LLC in which we rented retail space for the Trees Englewood retail store in Englewood, Colorado for $11,287 per month, of which $10,000 is base rent and $1,287 is property taxes. The owner of Bellewood Holdings, LLC is a principal shareholder and board member of the Company. In June 2022, the building was sold to an unrelated party. We paid approximately nil of rent expense for the three months ended September 30, 2022 and 2021, respectively and $52,287 and nil for the nine months ended September 30, 2022 and 2021, respectively.

On December 23, 2020, four of our current board members purchased senior convertible promissory notes from the Company for an aggregate amount of $320,000. These notes are included in the 10% Notes discussed in Note 7. On September 15, 2022, all four of our current board members transferred a portion of their 10% Note amounts and some accrued interest into the 12% Notes discussed in Note 7. The total amount rolled was $332,204. Accrued interest earned and owed to the board members was $1,292 as of September 30, 2022.