Sugarmade Inc (SGMD)

[Bed Bath & Beyonce]

Your instincts about SGMD not being anywhere close to qualifying for Nasdaq are correct.

It's not just the doubling of the net loss from last year, it's also how SGMD owes some serious money elsewhere....

On October 30, 2019, the Company closed the previously announced acquisition of BZRTH, Inc., a Nevada corporation (“BZRTH”) pursuant to a Stock Exchange Agreement. BZRTH is headquartered in Irwindale, California and is a leading marketer and manufacturer of hydroponic growth supplies and related products to distributors and retailers. The total consideration to be paid by the Company to acquire BZRTH is 650,000,000 shares of the Company’s common stock, 3,500,000 shares of Series B convertible preferred stock, $870,000 in cash, and 5% promissory notes in the sum of $7,130,000.00 due on or before October 31, 2021 to the BZRTH shareholders. $870,000 of cash had been paid and 200,000,000 shares of the Company’s common stock had been issued as deposit pursuant to a master marketing agreement of December 13, 2017.

On top of that.....

Net loss totaled $12,229,151 for the year ended June 30, 2019, compared to a net loss of $6,296,390 for the year ended June 30, 2018. The increase was attributable to issuing all of the stock compensation expenses for employees, legal, and consulting fees.

The net loss doubled...not because of COGS or R&D, but because of compensation, legal fees and "consulting."

Nasdaq.....LOL.