Cannabis Science Inc (fka CBIS)

[DouglasJH]

SNJgrower, a deficit is not necessarily a debt. Lets proceed with this discussion with some definition of terms.

DEBT
Definition:
An amount owed to a person or organization for funds borrowed. Debt can be represented by a loan note, bond, mortgage or other form stating repayment terms and, if applicable, interest requirements. These different forms all imply intent to pay back an amount owed by a specific date, which is set forth in the repayment terms.

Quoted fromhttp://www.investorwords.com/1313/debt.html#ixzz1M5v6Im7Q

A debt is a contract. Depending upon which jurisdiction (where) you live in, every debt over $500 must be in writing or it is not binding or recoverable in court. See: Statute of frauds

DEFICIT

Definition:
The amount by which a government, company, or individual's spending exceeds its income over a particular period of time. also called deficit or deficit spending. also called budget deficit. opposite of budget surplus.

Read more: http://www.investorwords.com/1371/deficit.html#ixzz1M5y62sB0

In the 10-K (4/15/2011) the company lists:

"Accounts payable ....................... 393,753"

That is the current debt that the company owed as of last month.

The company listed the following shares to pay other debts.

During fiscal 2010, the Company entered into debt settlement agreements with several parties as follows:

On January 21, 2010, the Company issued 4,000,000 common shares at a deemed price of $0.01 to settle $40,000 in debt.
On February 8, 2010, the Company issued 17,500,000 common shares at a deemed price of $0.01 to settle $175,000 in debt.
On March 8, 2010, the Company issued 6,000,000 common shares at a deemed price of $0.01 to settle $60,000 in debt.
On May 15, 2010, the Company issued 4,600,000 common shares at a deemed price of $0.01 to settle $46,000 in debt.
On May 19, 2010, the Company issued 1,500,000 common shares at a deemed price of $0.01 to settle $15,000 in debt.
On July 15, 2010, the Company issued 8,750,000 common shares at a deemed price of $0.01 to settle $87,500 in debt.
On August 19, 2010, the Company issued 4,200,000 common shares at a deemed price of $0.01 to settle $42,000 in debt.
On September 7, 2010, the Company issued 3,000,000 common shares at a deemed price of $0.01 to settle $30,000 in debt.
On October 4, 2010, the Company issued 6,700,000 common shares at a deemed price of $0.01 to settle $67,000 in debt.
On October 20, 2010, the Company issued 9,000,000 common shares at a deemed price of $0.01 to settle $90,000 in debt.
On December 1, 2010, the Company issued 3,000,000 common shares at a deemed price of $0.001 to settle $3,000 in debt.

All relating shares were issued to settle the aforementioned debt.

SNJgrower, look at it this way: If I had a business that ran a loss for say, 3 years in a row, each having a loss of $100 each year, my balance sheet would show an accumulated deficit of $300. This does not mean that I would owe anyone any debt, it would just be some money out of my pocket and not owed to anyone. Now if I borrowed the money to cover the deficit, that would be a debt (a contract.)

If you think CBIS owes someone $62 million, then PLEASE tell us who the lender is !!!

I hope I explained this in friendly enough terms.