Sugarmade Inc (SGMD)

[akc232]

Not sure if SGMD can recognize those revs quite yet? SInce the agreement is not at full completion. But with this 10Q we can see that the MA with BizRight (payment to BizRight) has begun. So far 550K has been paid.

Id like to wait till the next Q to see what happens since the approval of the increase in shares should be in that time period.

Under the terms of the Master Marketing Agreement, all products procured, developed and imported by BizRight will be sold by the Company. The expected term of the exclusive license rights is 20 years. BizRight and its owners will be compensated via a combination of cash and common shares in Sugarmade. Effective the contract date, Bizright will be compensated Two hundred million (200,000,000) common shares. Sugarmade will compensate BizRight and its owners six million dollars ($6,000,000) in cash. The amount due will be divided over 3 payments equally and are contingent upon the filing of the S-1 and significant funding.



As of Sept 30, 2018, the shares to be issued in connection with the acquisition of exclusive license rights has not been issued therefore the transaction has not been completed. $550,000 in cash has been paid and reflected as a prepaid deposit in other current assets on our balance sheet.