DPWW is beyond repair - too much debt.
The past CEO ran a scam operation and was involve in a pyramid marijuana/cattle scheme with the same individual that leases the DPWW facilities.
Probably funneled money through sweetheart lease deals to keep the scheme going. He ran DPWW into a financial disaster.
– Convertible Notes Payable The Company has issued several convertible notes which are outstanding. The note holders shall have the right to convert principal and accrued interest outstanding into shares of common stock at a discounted price to the market price of our common stock. The conversion feature was recognized as an embedded derivative and was valued using a Binomial Option Pricing Model that resulted in a derivative liability of $4,834,190 at December 31, 2019 and using Black-Scholes Option Pricing Model that resulted in a derivative liability of $6,000,830 at December 31, 2018. All notes accrue interest ranging from 8% to 12% and will mature in 2020. In connection with the issuance of certain of these notes, the Company also issued warrants to purchase its common stock.
Net Income Cont. Operations (2,570,000) 12/31/2018 - 12/31/2019
Net Income Cont. Operations (511,000) 12/31/19 – 3/31/20
The balance sheet is beyond repair
March 31, 2020
Cash and cash equivalents $ 91,225
Accounts receivable $465,596
Prepaid expenses $8,111
Total current assets $564,932
Right of Use Assets $2,844,535
Accounts payable $ 500,593
Accrued payable - related party $1,322,538
Accrued expenses $652,062
Notes payable - related party $140,958
Notes payable $133,403
Convertible notes, net of discount and costs $2,738,465 2
Derivative liabilities $4,941,435
Lease Liabilities $669,207
Warrant liabilities $870 967
Total current liabilities $11,099,531
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