On Feb. 22, 2018, Freedom Leaf Inc. (FRLF) announced that it had filed its 10Q for the quarter ending December 31, 2017, yet the company included no financial information in the press release. In the filing, the company reported revenue for the quarter at $6,332 versus last year’s $448,566. Freedom Leaf delivered a net loss of $742,413 for the quarter versus last year’s loss $111,361 for the same time period.
In the filing, the company stated, “As of December 31, 2017, the Company had $0 in cash. We do not have sufficient resources to effectuate our business.” It went on to say, “We will have to raise funds to pay for our expenses. We may have to borrow money from shareholders or issue debt or equity or enter into a strategic arrangement with a third party. ” The company has an accumulated deficit of $6.3 million. It has also been issuing stock to pay for services, which is never a good sign.
The company also announced that it would soon launch its CBD product line, Hempology, in 10 US states; including California, Nevada, Washington, Oregon, Texas, Michigan, Georgia, and Alaska.
“Thanks to the efforts of our new CFO and our team, we now expect to move quickly into a new phase of the Company’s development as we continue to acquire and integrate additional revenue-producing companies,” said Freedom Leaf President and CEO, Clifford Perry, in a statement. “This 10Q is only a stepping stone to our goal to become debt free and move forward with our new revenue streams: Hempology and Leafceuticals.”
To meet production demands, the company’s wholly owned division, Leafceuticals, Inc. operates a NuAxon industrial CO2 supercritical extraction facility in North Las Vegas. So far the facility has produced 12 kilos, valued at $200,000, and expects to replicate those figures on a monthly basis.
The company is also the publisher of Freedom Leaf magazine. For six months ending December 31, 2017, the magazine only recorded revenue of $5,826, while the costs related to the magazine were $68,850.
Stockwise, the company has been on a roller coaster over the last month. In mid-January, Freedom Leaf’s stock began to soar, peaking out at $0.43 per share before taking a precipitous tumble down to $0.22 per share. During that peak period, the company retired approximately $167,748 in debt and accrued wages through the issuance of approximately 5.4 million common shares.