10-K/A: Dogecoin Cash (Formerly Cannabis Sativa, Inc.) Files Amended 10-K to Correct Oversight, Reports Telemedicine Revenue Decline

Dogecoin Cash, Inc. files an amended 10-K to correct a title omission and reports a 25% decrease in revenue for the fiscal year ended December 31, 2023, primarily due to increased competition in the cannabis telemedicine industry.

Summary

• Dogecoin Cash, Inc., formerly Cannabis Sativa, Inc., filed an amendment to its 10-K report to correct the omission of the 'Report of Independent Registered Public Accounting Firm' title.
• The company's revenue decreased by 25% to $1,173,830 for the fiscal year ended December 31, 2023, compared to $1,558,752 in 2022.
• The decrease in revenue is attributed to increased competition in the cannabis telemedicine industry.
• Total operating expenses decreased by 31% in 2023 compared to 2022, reflecting cost reduction efforts.
• The company incurred a net loss of $1,322,917 for the year ended December 31, 2023.
• As of December 31, 2023, the company had an accumulated deficit of $82,083,492.
• The company's ability to continue as a going concern is dependent on generating profitable operations or obtaining necessary financing.
• The company may seek to raise money through a public offering or private placement.
• The company had cash on hand of $83,762 at the end of 2023.
• The company is focusing on growth in its telemedicine business and seeking opportunities in brand development and marketing.
• The company intends to focus on the consummation of an asset purchase agreement with MJ Harvest, Inc.

Sentiment

Score: 4

Explanation: The document presents a mixed picture. While cost-cutting measures are positive, the significant revenue decline and net loss, coupled with going concern doubts, weigh heavily on the sentiment.

Positives

• Total operating expenses decreased by 31% in 2023, indicating cost reduction efforts.
• Cash used in operating activities decreased to $63,111 in 2023 from $235,559 in 2022.
• The company is actively seeking new business opportunities and reviewing product and brand development opportunities.
• The company is focusing on growth in its telemedicine business.

Negatives

• Revenue decreased by 25% to $1,173,830 for the fiscal year ended December 31, 2023.
• The company incurred a net loss of $1,322,917 for the year ended December 31, 2023.
• The company had an accumulated deficit of $82,083,492 as of December 31, 2023.
• The company's auditors have raised substantial doubt about its ability to continue as a going concern.
• The amount of cash on hand the Company has does not provide sufficient liquidity to meet all of the immediate needs of our current operations.

Risks

• The company's ability to continue as a going concern is dependent on generating profitable operations or obtaining necessary financing.
• Raising capital through public offerings or private placements will cause dilution to current shareholders.
• Increased competition in the cannabis telemedicine industry may further reduce revenue.
• The company's disclosure controls and procedures were not effective as of December 31, 2023.
• The company identified material weaknesses in its internal controls over period end cut-off for recording payables, and communications between accounting personnel and management concerning related party and inter-company transactions.

Future Outlook

The company intends to focus on growth of its telemedicine business, seek opportunities in brand development and marketing, and consummate an asset purchase agreement with MJ Harvest, Inc.

Management Comments

• Management is currently evaluating opportunities to expand the platform for medical marijuana evaluations into other states and is reviewing other telemedicine applications.
• The COVID-19 pandemic had been a catalyst for expansion of telemedicine services across the United States, and our existing systems and infrastructure are well suited to providing other similar medical evaluations.

Industry Context

The company operates in the cannabis telemedicine industry, which is experiencing increased competition. The company also plans to engage in marketing and branding within the cannabis and CBD spaces.

Comparison to Industry Standards

• The document does not provide enough information to compare the company's results to specific industry standards or comparable companies.
• The document mentions that the company anticipates that large pharmaceutical companies will eventually begin to more aggressively compete in the cannabis product market.
• The document mentions that the company competes with Earthly Body, Burts Bees, Melaleuca and Clarins in the skin care market.

Legal Proceedings

• The company is not a party to any material legal proceedings, and, to the best of our knowledge, no such legal proceedings have been threatened against us.

Related Party Transactions

• The Company received short-term advances and proceeds from notes payable from related parties and officers of the Company, including David Tobias and Cathy Carroll, to cover operating expenses.
• During the year ended December 31, 2023, Robert Tankson, one of the company's directors, received from the company payroll compensation equal to $37,044 with shares and $106,969 with cash.
• The Company also has an outstanding loan in the amount of $4,000 to a director of the Company.
• At December 31, 2023 the Company owes Mr Tobias $281,250 in consulting services and $18,750 in directors fees which are included in stock payable for a total of $300,000.
• At December 31, 2023, the Company has a balance due from MJ Harvest, Inc., with whom the Company plans to merge, of $75,054.

Stakeholder Impact

• Shareholders may experience dilution if the company raises capital through public offerings or private placements.
• The company's ability to continue as a going concern impacts all stakeholders, including employees, customers, and suppliers.

Next Steps

• The company intends to focus on growth of its telemedicine business.
• The company intends to focus on the consummation of an asset purchase agreement with MJ Harvest, Inc.
• The company plans to begin selling products by developing new relationships with manufacturers and distributors.
• The company expects to work on building a product catalogue as it begins testing the market through online sales of products.

Key Dates

Keywords

Dogecoin Cash, Cannabis Sativa, 10-K, telemedicine, PrestoCorp, revenue, net loss, financial results, cannabis, CBD