Cannabis U.S. Companies

[JohnCM]

Medical Marijuana, Inc.
CUSIP: 58463A105
Trading Symbol: MJNA
Medical Marijuana, Inc.
Information and Disclosure Statement
March 31, 2018

SECURITY INFORMATION
Trading Symbol: MJNA
Exact title and class of securities outstanding: Common Stock
CUSIP: 58463A105
Par or Stated Value: $.001 per share of Common Stock
Total shares authorized: 5,000,000,000
Total shares outstanding: 3,399,472,038 (as of March 31, 2018)
Transfer Agent:
Action Stock Transfer Corporation
2469 E. Fort Union Blvd., Suite 214
Salt Lake City, UT 84121
Telephone: [phone]
Fax: [phone]
Email: [e-mail]

ISSUANCE HISTORY
For the period ended March 31, 2018, the Company issued 128,815,036 shares of common stock as
follows:
(i) 23,881,703 shares for the conversion of $1,676,988 face value of convertible notes, plus interest accrued
thereon, (ii) 3,933,333 shares for payment of $408,200 of services rendered, (iii) 1,000,000 shares for
payment of $100,000 of compensation, and (iv) 100,000,000 restricted shares issued in exchange for cash of $1,000,000.

FINANCIAL STATEMENTS
1. Company Subsidiaries. The Company operates through the following fully or partially
(50% or more) owned subsidiaries:
i. Kannaway®, LLC (100%)
ii. KannawayTM DE Mexico S.A. DE C.V. (100%)
iii. Kannaway® Europe B.V. (100%)
iv. HempMeds® PX, LLC (100%)
v. Hempmeds TM Mexico S.A. DE C.V. (100%)
vi. HempMeds TM Brazil (93.4%)
vii. HempMeds TM Colombia, LLC (100%)
viii. CanChew® Biotechnologies, LLC (50%)

Company Investment Holdings. The Company has investment holdings in the following
companies:
i. KannaLifeTM Sciences, Inc. (36.0%)
ii. Axim® Biotechnologies Inc. (43.0%)
i. KannalifeTM Sciences, Inc. The Company owns an approximate 36% equity stake in

No Legal/Disciplinary History
None of the named persons in this section have been the subject of: a conviction in a criminal
proceeding or named as a defendant in a pending criminal proceeding within the past five years; the entry of
an order, judgment or decree not subsequently reversed, suspended or vacated by a court of competent
jurisdiction that permanently or temporarily enjoined, barred, suspended, securities, commodities, or
banking activities; a finding or judgment by a court of competent jurisdiction (in a civil action), the
Securities and Exchange Commission, the Commodity Futures Trading Commission or a state securities
regulator of a violation of federal or state securities or commodities law, which finding or judgment has not
been reversed, suspended or vacated or; the entry of an order by a self-regulatory organization that
permanently or temporarily barred, suspended or otherwise limited such person’s involvement in any type of
business or securities activities.

ASSETS
Current Assets
Cash $3,404,931
Depreciation Expense
Accounts Receivable $246,148
Other Current Assets
Prepaid Assets $51,601
Inventory $4,140,685
Merchant Account Reserves $623,307
Notes and Loans Receivable $4,987,062
Deposits $51,372
Total Other Current Assets $9,854,027
Total Current Assets $13,505,106
Total Fixed Assets Net of Depreciation $356,060
Other Assets
Convertible Discount Asset $200,000
Goodwill $45,367,477

Business Investments
Investments - Equity Securities $82,858,565
Total Business Investments $82,858,565
Total Other Assets $128,426,042
TOTAL ASSETS $142,287,208

LIABILITIES & EQUITY
Current Liabilities
Accounts Payable $947,259
Total Payables $2,210,903
Other Current Liabilities
Total Current Liabilities $2,210,903
Long Term Liabilities
Convertible Notes $11,982,286
Total Long Term Liabilities $11,982,286
Total Liabilities $14,193,189

Equity
Unrealized accumulated Comprehensive Income/(Loss)
Common Stock $3,399,472
Additional Paid in Capital $179,820,762
Retained Earnings $(55,126,214)
Less: Non Ownership Portion Subsidiaries
Total Equity $128,094,019

TOTAL LIABILITIES & EQUITY $142,287,208
Ordinary Incom/Expense
Total Income $10,535,022
Total COGS $3,194,651
Gross Profit $7,340,371

Expense
Sales & Marketing $6,224,797 (QTR)
General & Administrative $2,466,083
Total Expense $8,690,880
Net Ordinary Income / (Loss) $(1,350,510)

Other Income/Expense
Interest Income $(77,244)
Interest Expense $457,548
Other Expense $1,469
Bad Debt Expense $44,965
Litigation Settlement - Expense $314,629
Gain/(Loss) on Investments $132,500,890
Total Other Income or Expense $133,242,257
Net Income/(Loss) $(134,592,767)

OPERATING ACTIVITIES
Net Income / (Loss) $(134,592,767)
Adjustments to reconcile Net Income
to net cash provided by operations:
Depreciation Expense $42,881
Stock Compensation Expense $715,343

Changes in operating assets and liabilities:
Inventory $(285,127)
Accounts Receivable $(140,104)
Prepaid Epxenses $(51,601)
Merchant Account Reserve $(593,307)
Deposits $(33,634)
Accounts Payable $496,923
Accrued Liabilities $798,314
Net cash Provided (Used) by operating Activities $(133,643,078)

INVESTING ACTIVITIES
Gain/Loss on Investments $132,500,890
Capital Purchase $42,194
Net cash provided (used) by Investing Activities $132,543,084

FINANCING ACTIVITIES
Proceeds from funding of convertible notes $2,322,402
Notes Payable $(1,410,422)
Prior Period Adjustment $113,515
Conversion of Notes Payable $227,294
Proceeds from sale of common stock $1,000,000
Net cash increase (decrease) for the period $1,110,600
Cash at beginning of period $2,294,331
Cash at end of period $3,404,931

Consolidated Statement of Cash Flows

LIABILITIES & EQUITY
Current Liabilities
Accounts Payable $661,407
Accured Liabilities $619,631
Total Payables $1,281,038
Other Current Liabilities
Notes Payable $(2,123,893)
Note Payable/Receivable Intercompany $(8,868,379)
Total Other Current Liabilities $(8,868,379)
Total Current Liabilities $(7,587,341)
Long Term Liabilities
Convertible Notes $11,982,286
Total Long Term Liabilities $11,982,286
Total Liabilities $4,394,946

Equity
Common Stock $3,399,472
Additional Paid in Capital $142,614,782
Retained Earnings $(50,095,546)
Less: Non Ownership Portion Subsidiaries
Total Equity $95,918,708

TOTAL LIABILITIES & EQUITY $100,313,654

Ordinary Incom/Expense U.S. Operations HempMeds, LLC Kannaway, LLC TOTAL
Total Income $1,638,528
Total COGS $478,254
Depreciation Expense
Gross Profit $1,160,274
Expense
Sales & Marketing $959,566
General & Administrative $906,843
Total Expense $1,866,409
Net Ordinary Income / (Loss) $(706,136)
Other Income/Expense
Interest Income $(77,244)
Interest Expense $457,548
Other Expense $1,469
Bad Debt Expense $44,965
Litigation Settlement - Expense $42,194
Gain/(Loss) on Investments $132,500,890
Total Other Income or Expense $132,969,822
Net Income/(Loss) $(133,675,958)

OPERATING ACTIVITIES
Net Income / (Loss) $(133,948,393)
Adjustments to reconcile Net Income
to net cash provided by operations:
Depreciation Expense $42,881
Stock Compensation Expense $715,343
Changes in operating assets and liabilities:
Inventory $(93,986)
Accounts Receivable $(125,227)
Prepaid Expenses $(118,088)
Merchant Account Reserve $(0)
Deposits $(33,634)
Accounts Payable $222,913
Accrued Liabilities $323,533
Net cash Provided (Used) by operating Activities $231,206

INVESTING ACTIVITIES
Gain/Loss on Investments $132,500,890
Capital Purchase $42,881
Net cash provided (used) by Investing Activities $132,543,771

FINANCING ACTIVITIES
Proceeds from funding of convertible notes $2,322,402
Notes Payable $(2,920,584)
Prior Period Adjustment $113,515
Conversion of Notes Payable $227,294
Proceds from sale of common stock 1,000,000
Net cash increase (decrease) for the period $228,860
Cash at beginning of period $2,199,620
Cash at end of period $2,428,480