Related Party Transactions
|3 Months Ended|
Mar. 31, 2018
|Related Party Transactions [Abstract]|
|Related Party Transactions||
NOTE 8 – RELATED PARTY TRANSACTIONS
As disclosed in Note 1 above, in May 2014, the Company acquired Sigal Consulting LLC from its ownership group which included the CEO and CFO of the Company (the “Sigal Ownership Group”). The purchase price received by the Sigal Ownership Group was comprised of (i) 31,954,236 shares of common stock valued at approximately $5,913.000, representing 50% of the Company’s outstanding shares on the closing date, (ii) options to purchase three million shares of the Company’s common stock valued at approximately $570,000, and (iii) a 49% ownership interest in the Company’s subsidiary MariMed Advisors, Inc. The excess of purchase price over the book value of the acquired entity was recorded as goodwill, which was subsequently impaired in full and written down to zero.
In June 2017, the Company acquired the remaining 49% interest of MariMed Advisors Inc. from the Sigal Ownership Group for an aggregate 75 million shares of common stock.
The caption Due from Related Parties in the Company’s financial statements is primarily comprised of short term loans to non-consolidated entities under common ownership.
The caption Due to Related Parties reflects short term loans from related parties and includes advances received from officers of the Company.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef