FORM 10-Q
? QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934
For the quarterly period ended March 31, 2018
NOTE 4 – INVESTMENTS
As of March 31, 2018, the carrying value of our investments in privately held companies totaled $403,249. These investments are accounted for as cost method
investments, as we own less than 20% of the voting securities and do not have the ability to exercise significant influence over operating and financial policies of
the entities.
During the twelve months ended December 31, 2017, the Company acquired 23,810 shares of Class A common stock of Hightimes Holding Corp. (“Hightimes”)
for $100,002, or $4.20 per share. As a result of a forward stock split which became effective on January 15, 2018, each one share of common stock was exchanged
for 1.93 shares of common stock. As a result of such forward stock split, MassRoots currently owns 45,974 shares of Class A common stock of Hightimes. The
shares of Class A common stock are considered non-marketable securities.
On July 13, 2017, the Company purchased an unsecured convertible promissory note in the principal amount of $300,000 from Cannaregs, Ltd, a Colorado limited
liability company (“Cannaregs”). The note bears interest at a rate of 5% per annum and matures on December 19, 2019. In the event Cannaregs consummates an
equity financing in excess of $2,000,000 prior to the maturity date of the note, the outstanding principal and any accrued and unpaid interest thereon automatically
converts into equity securities of the same class or series issued by Cannaregs in the equity financing at the lesser of: a) 90% of the price paid per equity security or
b) a price reflecting a valuation cap of $4,500,000. On July 17, 2017, MassRoots converted this note into 430,622 shares of CannaRegs’ common stock, or
approximately 4.31% of CannaRegs’ issued and outstanding shares of March 31, 2018.
