NOTE 4 - INVESTMENTS

6 Months Ended

Jun. 30, 2017

Investment Holdings [Abstract]

Investment Holdings [Text Block]

NOTE 4 – INVESTMENTS

As of June 30, 2017 and December 31, 2016, the carrying value of our investments in privately held companies totaled $100,002 and $235,000, respectively. These investments are accounted for as cost method investments, as we own less than 20% of the voting securities and do not have the ability to exercise significant influence over operating and financial policies of the entities.

To facilitate the integration with dispensary point of sale systems, in 2015, the Company invested $175,000 in exchange for preferred shares of Flowhub LLC (“Flowhub”), a seed-to-sale system, equal to 8.95% of the then outstanding equity of Flowhub. The Company currently is working with Flowhub to integrate their system with the Company’s network. The acquired preferred shares are considered non-marketable securities. On May 12, 2017, the Company sold its preferred shares in Flowhub for net proceeds of $250,000.  The gain on sale of securities of $75,000 was recorded in current period operations.

During the six months ended June 30, 2017, the Company acquired 23,810 Class A common stock of Hightimes Holding Corp. for $100,002 ($4.20 per share). The acquired common shares are considered non-marketable securities.

In addition, at December 31, 2016, the Company had paid $60,000 acquisition deposit to acquire DDDigtal LLC, (See Note 1).