v3.25.1
4. Investments
3 Months Ended
Mar. 31, 2025
Notes  
4. Investments

4. Investments

 

CBDG

 

In 2021, the Company received 1,500,000 shares of common stock and 1,500,000 shares of preferred stock of THC Pharmaceuticals Inc. (ticker: CBDG). The CBDG shares were received as consideration for the sale of the Company’s majority interest in iBud and GKMP in the year ended December 31, 2021. On the date of sale, the shares were valued at fair value which was $0.20 per share or $600,000 in the aggregate. The Company’s Chief Executive Officer and Chairman of the Board, David Tobias is a Director of CBDG. On January 1, 2024, the preferred shares were returned to CBDG.

 

The Company’s investment in CBDG represents 15% of CBDG’s voting shares on a fully diluted basis which, coupled with Mr. Tobias’ position as a director and his individual investment in CBDG, results in the Company having significant influence over CBDG. The Company elected to account for its investment in CBDG at fair value because the Company does not intend to hold the investment for a

long period of time and the shares are readily marketable. The fair value of the Company’s investment at March 31, 2025 and December 31, 2024 was $15,000 and $11,100 resulting in an unrealized gain (loss) of $3,900 and ($14,850) for the change in fair value during the three months ended March 31, 2025 and 2024, respectively.