What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2022-04-19 compared with 2022-04-18 · 34 added, 40 removed, 149 unchanged (33% of the section changed)

41 unchanged sentences

guidance to select the best products for their lifestyles.

We just launched with The Joy Reserve dispensary,

which is focused on bringing a better understanding of the many benefits of cannabis and how to safely pick quality products such as the

Koan Cordials.

This unique showcase will be used to educate consumers about plant-based wellness with an open browsing floor, free consultations

and workshops.

We feel this setup is ideal to introduce consumers to our Cordials and are excited to participate in this groundbreaking

Our products are built around the idea of “Mastering

the Art of Experience”, reflecting our focus on innovation – however we are also committed on building a solid foundation

of distribution, communication, and education, as we work to normalize cannabis as part of a healthy and engaged lifestyle.

We are finding

the education of cannabis, as it relates to wellness, and the benefits and uses of our six unique blends of Cordials to be the most effective

drivers of our outreach – once consumers understand the uses and benefits, the acceptance is locked in.

just launched with The Joy Reserve dispensary, which is focused on bringing a better understanding of the many benefits of cannabis and

how to safely pick quality products such as the Koan Cordials.

This unique showcase will be used to educate consumers about plant-based

wellness with an open browsing floor, free consultations and workshops.

We feel this setup is ideal to introduce consumers to our Cordials

and are excited to participate in this groundbreaking approach.

and branding are core components of our targeted customer acquisition strategy.

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wellness sectors.

Koan Cordials also won a Bronze 2021 Clio Cannabis award for brand design in the packaging category.

The Clio Awards

is an annual global award program recognizing innovation and creative excellence in advertising, design and communication.

Koan Cordials also won a Bronze 2021 Clio Cannabis Award for brand

design in the packaging category.

The Clio Awards is an annual global award program recognizing innovation and creative excellence in

advertising, design and communication.

an established statewide infrastructure in California for manufacturing, distribution and sales, we are well-equipped to make progress

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Q2 2022 for our Cordials;

to include both a one-pack and a multi-dose bottle which is expected to bring the cost per dose

down considerably.

We also plan on launching additional Cordial formulations by Q2 2022, which we hope will contribute to

increasing our revenues.

As we have just launched our products, however, it may take some time for the markets to react, gain traction

and result in brand awareness among our customers.

There can be no assurances, however, that customers will positively react to our products.

operating expenses were $3,424,590 for the year ended December 31, 2021, as compared with $1,813,958 for the year ended

December 31, 2020.

to include both a one-pack and a multi-dose bottle which is expected to bring the cost per dose down considerably.

We also plan on launching additional Cordial formulations by Q2 2022 and a new line of edibles in mid-2022, which we hope will

contribute to increasing our revenues.

As we have just launched our products, however, it may take some time for the markets to react,

gain traction and result in brand awareness among our customers.

There can be no assurances, however, that customers will positively

react to our products.

operating expenses were $2,539,288 for the year ended December 31, 2021, as compared with $1,813,958 for the year ended December

The main drivers for

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We paid both cash fees and stock compensation to a broker on our Private Placement Memorandum

Within the operating

expenses, there were a variety of increases, the largest of which was an increase in non-cash management fees of $1,290,362 as a

result of issuing stock in 2021 in settlement of accrued but unpaid management and employee salaries from 2020 - plus vendor payment

We hope that to avoid these settlement expenses for 2022 and compensate employees and vendors with available cash on

However, if we are forced to defer salaries and settle with shares for employees this year, due to a lack of funds, we should

expect our non-cash compensation expense in 2022 to resemble that of 2021.

Within the operating expenses,

there were a variety of increases, the largest of which was an increase in non-cash management fees of $400,349 as a result of issuing

stock in 2021 in settlement of accrued but unpaid management and employee salaries from 2020 – plus vendor payment settlements.

We hope to avoid these settlement expenses for 2022 and compensate employees and vendors with available cash on hand.

if we are forced to defer salaries and settle with shares for employees this year, due to a lack of funds, we should expect our non-cash

compensation expense in 2022 to resemble that of 2021.

In 2021 and 2020, we

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expenses to remain fairly constant throughout 2022 due to internal changes we’ve implemented.

We expect that our operating expenses will increase

in 2022 over 2021 as we roll out new products along with our existing products, and the increased expenses associated with operations.

expect that our operating expenses will increase in 2022 over 2021 as we roll out new products along with our existing products, and

the increased expenses associated with operations.

had other expenses of $2,341,651 for the year ended December 31, 2021 compared with other expenses of $143,113 for the year ended

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and Capital Resources

of December 31, 2021, we had total current assets of $269,518, consisting of $12,913 in cash, $10,830 in advances to suppliers and

$245,776 in Inventories.

of December 31, 2021, we had total current assets of $269,519, consisting of $12,913 in cash, $10,830 in advances to suppliers

and $245,776 in Inventories.

Our total current liabilities as of December 31, 2021 were $4,402,887.

6 unchanged sentences

mainly by the loss on derivative liabilities.

Our negative operating cash flow for the year ended December 31, 2020 was largely the

result also of our net loss, offset mainly by share based compensation.

Our negative operating cash flow for the year ended December 31, 2020 was largely the result

also of our net loss, offset mainly by share based compensation.

Flows from Investing Activities

5 unchanged sentences

Our positive cash flows for the year ended December

31, 2021 consisted of proceeds from issuance of common stock of $1,367,115, proceeds from Convertible notes payable of $1,865,000,

offset by payments of notes payable of $504,793.

Our positive cash flows for the year ended December 31, 2020 consisted of proceeds

from issuance of common stock $1,011,113, proceeds from Convertible notes payable $850,100, offset by payments of notes payable of $369,000.

31, 2021 consisted of proceeds from issuance of common stock of $1,367,115, proceeds from Convertible notes payable of $1,865,000, offset

by payments of notes payable of $515,377.

Our positive cash flows for the year ended December 31, 2020 consisted of proceeds from

issuance of common stock $1,011,113, proceeds from Convertible notes payable $850,100, offset by payments of notes payable of $369,000.

features of the debt instruments and payables concerning our financing activities are detailed in the footnotes to our financial statements.

26 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K/A

Item 7. Management’s Discussion and Analysis