Note 6 - Improvements in Process

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Improvements in Process [Text Block]

NOTE

6

– IMPROVEMENTS IN PROCESS

Property and improvements in development as of

December 31, 2017,

consisted almost entirely of improvements to leased facilities at

20

North Rear Road. These represent the capitalized costs the Company incurred in constructing the improvements.

An impairment assessment during the

fourth

quarter of

2018

concluded the investment at

20

North Rear Road was substantially impacted by the changes in Canada’s Medical Marihuana Purposes Regulations (MMPR) and the Company reported impairment charges of

$1,270,115

in

2018

based upon the assessment related to specialty use elements of the improvements and that at this time, the Company cannot make the final additions that will be necessary for the site to function as a growing space. There were

no

such impairments in

2017.

During

2018,

$160,724

of improvements in process related to the Company’s main office, which existed as of

December 31, 2017,

were placed into service and transferred into property and equipment.