Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

Those 1Q/15 Kannaway financials

This looks like a less than arms length transaction of some sort. Speaking of which, I don't have time to type but the Q1/15 numbers given for Kannaway in MJNA's filing are complete bull sh!t.

As I see it, the problem with the $1.2M in Kannaway revenue and $374K in COGS is that it doesn't break down how much of the revenue is the monthly payment from members, and that makes the gross margin for the products look higher than it is.

Additionally, sometime in 1Q they effectively doubled the $15 monthly by adding another mandatory $15/month to cover KWay University (online training/back-office stuff) and they also had a deal ending March 31 where for $99, you could pay your entire 2015 BA dues, saving BAs something like $200 over the year.

But for each member accepting the deal, booking that $99 in 1Q/15 "front-loads" the revenue for that quarter, but removes that regular $30/month from the company's 2Q - 4Q revenue.

MJNA needs to break out KannaWay's membership "dues" income vs. product income, as they did when the sent those numbers to Houlihan when that company came up with the ridiculous $100M valuation.