Zoned Properties (ZDPY) 10-Q 13 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 10, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Zoned Properties, Inc.
Entity Central Index Key	1,279,620
Trading Symbol	ZDPY
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		17,434,052

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash	$ 762,109	$ 824,240
Rental properties, net	7,314,993	7,170,322
Deferred rent receivable - related parties		1,708,734
Note receivable - related party	92,160	182,365
Prepaid expenses and other current assets	83,768	127,902
Property and equipment, net	32,231	35,768
Security deposits	600	2,890
Total Assets	8,285,861	10,052,221
LIABILITIES:
Convertible notes payable - related parties	2,020,000	2,020,000
Accounts payable	5,062	8,896
Accrued expenses	61,737	48,468
Accrued expenses - related parties	34,200	33,600
Deferred revenues	53,250	28,750
Security deposits payable - related parties	71,800	71,800
Security deposits payable	5,864	5,864
Total Liabilities	2,251,913	2,217,378
Commitments and Contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; 2,000,000 shares issued and outstanding at June 30, 2018 and December 31, 2017 ($1.00 per share liquidation preference)	2,000	2,000
Common stock: $0.001 par value, 100,000,000 shares authorized; 17,434,052 and 17,345,497 issued and outstanding at June 30, 2018 and December 31, 2017, respectively	17,434	17,345
Additional paid-in capital	20,725,726	20,630,649
Accumulated deficit	(14,711,212)	(12,815,151)
Total Stockholders' Equity	6,033,948	7,834,843
Total Liabilities and Stockholders' Equity	$ 8,285,861	$ 10,052,221

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	2,000,000	2,000,000
Preferred stock, shares outstanding	2,000,000	2,000,000
Preferred stock, liquidation preference	$ 1	$ 1
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	17,434,052	17,345,497
Common stock, shares outstanding	17,434,052	17,345,497

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
REVENUES:
Rental revenues	$ 12,216	$ 4,629	$ 24,403	$ 54,702
Rental revenues - related parties	166,425	500,312	687,499	990,506
Total revenues	178,641	504,941	711,902	1,045,208
OPERATING EXPENSES:
Compensation and benefits	95,523	119,935	254,982	338,228
Professional fees	85,874	82,143	157,499	120,621
General and administrative expenses	37,661	41,207	77,526	86,581
Depreciation and amortization	63,485	49,505	126,904	108,185
Property operating expenses	11,007	41,086	36,299	62,359
Real estate taxes	22,040	21,206	44,294	45,282
Write-off of deferred rent receivable - related parties	1,853,539		1,853,539
Total operating expenses	2,169,129	355,082	2,551,043	761,256
(LOSS) INCOME FROM OPERATIONS	(1,990,488)	149,859	(1,839,141)	283,952
OTHER (EXPENSES) INCOME:
Interest expenses		(1,944)		(42,983)
Interest expenses - related parties	(30,300)	(32,245)	(60,600)	(68,688)
Gain on sale of property and equipment				831,753
Interest income	1,951	2,483	3,680	2,786
Total other (expenses) income, net	(28,349)	(31,706)	(56,920)	722,868
(LOSS) INCOME BEFORE INCOME TAXES	(2,018,837)	118,153	(1,896,061)	1,006,820
PROVISION FOR INCOME TAXES
NET (LOSS) INCOME	$ (2,018,837)	$ 118,153	$ (1,896,061)	$ 1,006,820
NET (LOSS) INCOME PER COMMON SHARE:
Basic	$ (0.12)	$ 0.01	$ (0.11)	$ 0.05
Diluted	$ (0.12)	$ 0.01	$ (0.11)	$ 0.05
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	17,433,667	17,312,655	17,414,977	17,290,422
Diluted	17,433,667	17,924,989	17,414,977	18,132,734

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (1,896,061)	$ 1,006,820
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization expense	126,904	108,185
Stock-based compensation	79,408	184,925
Stock option expense	15,758	(6,881)
Gain from sale of property and equipment		(831,753)
Write-off of deferred rent receivable - related parties	1,853,539
Change in operating assets and liabilities:
Deferred rent receivable - related parties	(144,805)	(352,967)
Real estate tax escrow		39,487
Note receivable	90,205	(176,647)
Prepaid expenses and other assets	44,134	49,305
Security deposits	2,290	5,268
Accounts payable	(3,834)	(72,542)
Accrued expenses	13,269	(6,491)
Accrued expenses - related parties	600	(52,241)
Deferred revenues	24,500	(500)
Deferred revenues		1,841
Security deposits payable - related party		1,800
Security deposits payable		(18,600)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	205,907	(120,991)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of buildings and improvements	(268,038)	(211,801)
Cash received from sale of property and equipment		1,984,188
Acquisition of property and equipment		(2,586)
NET (USED IN) CASH PROVIDED BY INVESTING ACTIVITIES	(268,038)	1,769,801
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible debt - related parties		2,020,000
Repayment of convertible note - related party		(500,000)
Repayment of convertible note		(500,000)
Repayment of mortgage payable		(2,100,000)
NET CASH USED IN FINANCING ACTIVITIES		(1,080,000)
NET (DECREASE) INCREASE IN CASH	(62,131)	568,810
CASH, beginning of period	824,240	366,024
CASH, end of period	762,109	934,834
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	60,000	164,788
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for accrued settlement payable		$ 21,875

Organization and Nature of Oper

Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2018
Organization and Nature of Operations [Abstract]
ORGANIZATION AND NATURE OF OPERATIONS	NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS Organization Zoned Properties, Inc. (“Zoned Properties” or the “Company”), was incorporated in the State of Nevada on August 25, 2003. The Company is a strategic real estate development firm whose primary mission is to identify, develop, and lease sophisticated, safe, and sustainable properties in emerging industries, including the licensed medical marijuana industry. Zoned Properties is an accredited member of the Better Business Bureau, the Forbes Real Estate Council, and the U.S. Green Building Council. The Company focuses on the strategic development of commercial properties that face unique zoning challenges; identifying solutions that could potentially have a major impact on cash flow and property value. Zoned Properties targets commercial properties that can be acquired and re-zoned or permitted for specific purposes. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substances Act. The Company has the following wholly-owned subsidiaries: ● Gilbert Property Management, LLC (“Gilbert”) was organized in the State of Arizona on February 10, 2014. ● Chino Valley Properties, LLC (“Chino Valley”) was organized in the State of Arizona on April 15, 2014. ● Kingman Property Group, LLC (“Kingman”) was organized in the State of Arizona on April 15, 2014. ● Green Valley Group, LLC (“Green Valley”) organized in the State of Arizona on April 15, 2014. ● Zoned Oregon Properties, LLC was organized in the State of Oregon on June 16, 2015. ● Zoned Colorado Properties, LLC was organized in the State of Colorado on September 17, 2015. ● Zoned Illinois Properties, LLC was organized in the State of Illinois on July 15, 2015. ● Zoned Arizona Properties, LLC (“Zoned Arizona”) was organized in the State of Arizona on June 2, 2017. On May 1, 2018, the Company and the related party tenants cancelled their existing lease agreements. Also on May 1, 2018, the Company entered into new lease agreements relating to the same properties and confidential advisory services agreements with these related parties (see Note 6).

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. The condensed consolidated financial statements for the three and six months ended June 30, 2018 and 2017 have been prepared by us without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows as of June 30, 2018 and 2017, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates for the six months ended June 30, 2018 and 2017 include the collectability of rent, the useful life of rental properties and property and equipment, assumptions used in assessing impairment of long-term assets, valuation allowances for deferred tax assets, and the fair value of non-cash equity transactions, including options and stock-based compensation. Risks and uncertainties The Company’s operations are subject to risk and uncertainties including financial, operational, regulatory and other risks including the potential risk of business failure. The Company conducts a significant portion of its business in Arizona. Additionally, the Company’s tenants operate in the medical marijuana industry. Consequently, any significant economic downturn in the Arizona market or any changes in the federal government’s enforcement of current federal laws or changes in state laws could potentially have a negative effect on the Company’s business, results of operations and financial condition. The majority of the Company’s cash and cash equivalents are held at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation (“FDIC”) limit. To date, the Company has not experienced any losses on its invested cash. The Company had no cash equivalents at June 30, 2018 and December 31, 2017. At June 30, 2018 and December 31, 2017, the Company had approximately $512,000 and $574,000, respectively, of cash in excess of FDIC limits. Fair value of financial instruments The carrying amounts reported in the condensed consolidated balance sheets for cash, note receivable – related party, prepaid expenses and other current assets, accounts payable, accrued expenses, and other payables approximate their fair market value based on the short-term maturity of these instruments. The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (the “FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 820. Cash Cash is carried at cost and represents cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. Accounts and note receivable The Company recognizes an allowance for losses on accounts and notes receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized in general and administrative expense. At June 30, 2018 and December 31, 2017, the Company did not have any accounts receivable balance. For the six months ended June 30, 2018 and 2017, the Company did not record any allowances for doubtful accounts. Rental properties Rental properties are carried at cost, less accumulated depreciation and amortization. Betterments, major renovations and certain costs directly related to the improvement of rental properties are capitalized. Maintenance and repair expenses are charged to expense as incurred. Depreciation is recognized on a straight-line basis over estimated useful lives of the assets, which range from 5 to 39 years. Tenant improvements are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets. Upon the acquisition of real estate, the Company assesses the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above-market leases and acquired in-place leases) and acquired liabilities (such as acquired below-market leases) and allocate the purchase price based on these assessments. The Company assesses fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. The Company’s rental properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If the Company’s estimates of the projected future cash flows, anticipated holding periods, or market conditions change, the Company’s evaluation of impairment losses may be different and such differences could be material to its consolidated financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. As discussed below under “revenue recognition”, for the six months ended June 30, 2018 and 2017, the Company recorded a write-off of deferred rent – related parties of $1,853,539 and nil, respectively. The Company has capitalized land, which is not subject to depreciation. Property and equipment Property and equipment is stated at cost, less accumulated depreciation. Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives. The Company uses a five year life for office equipment, seven years for furniture and fixtures, and five to ten years for vehicles. Expenditures for maintenance and repairs are charged to expense as incurred. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. The Company examines the possibility of decreases in the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Revenue recognition Effective on January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 and ASC Topic 606, Revenue from Contracts with Customers Rental income includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease, which includes the effects of rent abatements under the leases. The Company commences rental revenue recognition when the tenant takes possession of the leased space or controls the physical use of the leased space and the leased space is substantially ready for its intended use. Through April 30, 2018, certain of the Company’s leases contained rental increases at specified intervals. The Company recorded as an asset, and included in revenue, deferred rents receivable that were to be received if the tenant made all rent payments required through the expiration of the initial term of the lease. At December 31, 2017, deferred rents receivable in the accompanying consolidated balance sheets include the cumulative difference between rental revenue recorded on a straight-line basis and rents received from the tenants in accordance with the prior lease terms. On May 1, 2018, the Company and the related party tenants cancelled their existing lease agreements. Also on May 1, 2018, the Company entered into new lease agreements relating to the same properties (See Note 6). These leases provide for payments with fixed monthly base rents over the term of the leases. Accordingly, the Company reviewed its deferred rent receivable and determined that the deferred rent receivable of $1,853,539 should be written off since, pursuant to the new lease terms, the deferred rent receivable was not collectible. Accordingly, on May 1, 2018, the Company recorded a write-off of deferred rent receivable – related parties of $1,853,539 in operating expenses on the accompanying condensed consolidation statements of operations. Basic and diluted income (loss) per share Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period using the treasury stock method and as-if converted method. Potentially dilutive common shares and participating securities are excluded from the computation of diluted shares outstanding if they would have an anti-dilutive impact on the Company’s net losses. The Company’s preferred stock is considered a participating security since the preferred shares are entitled to dividends equal to common share dividends and accordingly, are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings (loss) per share is an earnings allocation formula that determines earnings (loss) per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The following table presents a reconciliation of basic and diluted net income (loss) per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 Income (loss) per common share - basic: Net income (loss) $ (2,018,837 ) $ 118,153 $ (1,896,061 ) $ 1,006,820 Less: undistributed (earnings) loss allocated to participating securities - (12,236 ) - (104,264 ) Net income (loss) allocated to common stockholders $ (2,018,837 ) $ 105,917 $ (1,896,061 ) $ 902,556 Weighted average common shares outstanding - basic 17,433,667 17,312,655 17,414,977 17,290,422 Net income (loss) per common share - basic $ (0.12 ) $ 0.01 $ (0.11 ) $ 0.05 Income (loss) per common share - diluted: Net income (loss) allocated to common shareholders - basic $ (2,018,837 ) $ 105,917 $ (1,896,061 ) $ 902,556 Add: interest of convertible debt - 34,189 - 79,380 Numerator for income (loss) per common share - diluted $ (2,018,837 ) $ 140,106 $ (1,896,061 ) $ 981,936 Weighted average common shares outstanding - basic 17,433,667 17,312,655 17,414,977 17,290,422 Effect of dilutive securities: Stock options - 208,334 - 438,312 Convertible notes payable - 404,000 - 404,000 Weighted average common shares outstanding – diluted 17,433,667 17,924,989 17,414,977 18,132,734 Net income (loss) per common share - diluted $ (0.12 ) $ 0.01 $ (0.11 ) $ 0.05 The following potentially dilutive shares have been excluded from the calculation of diluted net income (loss) per share as their effect would be anti-dilutive for the three and six months ended June 30, 2018 and 2017. June 30, June 30, Convertible debt 404,000 - Stock options 1,283,354 - Segment reporting The Company’s business is comprised of one reportable segment. The Company has determined that its properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing commercial properties). The Company’s determination was based primarily on its method of internal reporting. Income tax Deferred income tax assets and liabilities arise from temporary differences between the financial statements and tax basis of assets and liabilities, as measured by the enacted tax rates, which are expected to be in effect when these differences reverse. Deferred tax assets and liabilities are classified as current or non-current, depending upon the classification of the asset or liabilities to which they relate. Deferred tax assets and liabilities not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”) became effective and, among other items, reduces the current federal income tax rate to 21% from 34%. The rate reduction is effective January 1, 2018, and is permanent. The Act has caused the Company’s deferred income taxes to be revalued. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 (“SAB 118”), as of December 31, 2017, the Company recognized the provisional effects of the enactment of the Act for which measurement could be reasonably estimated. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. The ultimate impact of the Act may differ from these estimates due to the Company’s continued analysis or further regulatory guidance that may be issued as a result of the Act. The Company follows the provisions of FASB ASC 740-10, “Uncertainty in Income Taxes”. Certain recognition thresholds must be met before a tax position is recognized in the financial statements. An entity may only recognize or continue to recognize tax positions that meet a “more-likely-than-not” threshold. The Company does not believe it has any uncertain tax positions as of June 30, 2018 and December 31, 2017 that would require either recognition or disclosure in the accompanying consolidated financial statements. Stock-based compensation Stock-based compensation is accounted for based on the requirements of ASC 718 – “Compensation –Stock Compensation ”), Improvements to Employee Share-Based Payment Accounting Through March 31, 2018, pursuant to ASC 505-50 – “Equity-Based Payments to Non-Employees” Improvements to Nonemployee Share-Based Payment Accounting, Recently issued accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842). In August 2016, the FASB issued ASU 2016-15 which addresses eight cash flow classification issues, eliminating the diversity in practice. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively applied as of the earliest date practicable. The adoption of ASU 2016-15 did not have any impact on the Company’s consolidated financial statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.

Rental Properties

Rental Properties	6 Months Ended
	Jun. 30, 2018
Rental Properties [Abstract]
RENTAL PROPERTIES	NOTE 3 – RENTAL PROPERTIES At June 30, 2018 and December 31, 2017, rental properties, net consisted of the following: Description Useful Life (Years) June 30, December 31, Building and building improvements 5-39 $ 5,386,791 $ 5,381,372 Construction in progress - 302,850 40,230 Land - 2,283,214 2,283,214 Rental properties, at cost 7,972,855 7,704,816 Less: accumulated depreciation (657,862 ) (534,494 ) Rental properties, net $ 7,314,993 $ 7,170,322 For the three months ended June 30, 2018 and 2017, depreciation and amortization of rental properties amounted to $61,716 and $47,737, respectively. For the six months ended June 30, 2018 and 2017, depreciation and amortization of rental properties amounted to $123,367 and $104,691, respectively.

Rental Property Held for Sale

Rental Property Held for Sale	6 Months Ended
	Jun. 30, 2018
Rental Property Held for Sale [Abstract]
RENTAL PROPERTY HELD FOR SALE	NOTE 4 – RENTAL PROPERTY HELD FOR SALE On December 22, 2016, the Company entered into a Commercial Real Estate Purchase Contract (the “Agreement”) with a third party (the “Purchaser”) pursuant to which the Company agreed to sell, and the Purchaser agreed to purchase, the property located at 422 S. Madison Drive in Tempe, Arizona, for an aggregate purchase price of $2.125 million. Pursuant to the terms of the Agreement, the Purchaser paid a deposit of $20,000 within three days of entry into the Agreement, which amount was being held in escrow by a third party. In 2017, the Purchaser deposited an additional deposit of $20,000. The remainder of the purchase price ($2.085 million) was due at closing. Pursuant to the terms of the Agreement, the purchase closed on March 15, 2017. In connection with the sale, the Company recorded a gain of approximately $831,000. In connection with the sale of its buildings on March 15, 2017, the Company repaid all outstanding principal and interest due on the mortgage payable.

Note Receivable - Related Party

Note Receivable - Related Party	6 Months Ended
	Jun. 30, 2018
Note Receivable - Related Party [Abstract]
NOTE RECEIVABLE - RELATED PARTY	NOTE 5 – NOTE RECEIVABLE – RELATED PARTY On March 30, 2017, in connection with a fourth amendment to the commercial lease agreement (the “Amendment”) with C3C3 Group, LLC, a wholly owned subsidiary of a company owned by Alan Abrams and Chris Carra, significant shareholders of the Company (“C3C3”), the Company agreed to defer rent and applicable taxes due for March, April and May 2017 in the form of a note receivable to C3C3 at an 8% interest rate commencing March 1, 2017 and payable in 12 monthly payments of $15,647, which includes both principal and interest, commencing January 1, 2018. At June 30, 2018 and December 31, 2017, note receivable amounted to $92,160 and $182,365, respectively.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS (A) Chief financial officer engagement letter On October 26, 2015, the Company entered into an engagement letter with a company majority owned by the Company’s former Chief Financial Officer (“CFO”). Pursuant to the engagement letter, the Company agreed to pay a base fee of $6,500 in cash per month and $3,500 per month payable quarterly in advance in common shares of the Company valued at the lower of the share price from the most recent capital raise or 60% of the bid price of the Company’s common stock at the last trading day of the previous quarter with a minimum number of common shares issuable per month of 1,250 shares. The engagement letter was terminated in May 2018. (B) Convertible notes payable – related parties On January 9, 2017, the Company issued a convertible debenture (the “Abrams Debenture”) in the aggregate principal amount of $2,000,000 in favor of Alan Abrams, a significant stockholder of the Company, in exchange for cash from Mr. Abrams of $2,000,000. Also on January 9, 2017, the Company issued a convertible debenture (the “McLaren Debenture” and together with the Abrams Debenture, the “Debentures”) in the aggregate principal amount of $20,000 in favor of Bryan McLaren, the Company’s Chief Executive Officer, President, Chief Financial Officer, and a member of the Company’s Board of Directors, in exchange for cash from Mr. McLaren of $20,000. Each of Mr. Abrams and Mr. McLaren is referred to herein as a “Holder.” Each of the Debentures accrues interest at the rate of 6% per annum payable quarterly by the 1 st As of June 30, 2018 and December 31, 2017, the principal balance due under these Debentures is $2,020,000. As of June 30, 2018 and December 31, 2017, accrued interest payable due under these Debentures is $31,200 and $30,600, respectively. For the three months ended June 30, 2018 and 2017, interest expense – related parties amounted to $30,300 and $32,245, respectively. For the six months ended June 30, 2018 and 2017, interest expense – related parties amounted to $60,600 and $68,688, respectively. (C) Terminated related party lease agreements During 2014, the Company entered into lease agreements with non-profit companies, CJK, Inc. (“CJK”) and Broken Arrow Herbal Center, Inc. (“Broken Arrow”) for its properties located in Kingman, AZ and Green Valley, AZ, respectively. CJK and Broken Arrow are owned, in whole or in part, directly or indirectly, by Messrs. Abrams and Carra, each of whom is a significant stockholder of the Company. The Kingman, AZ lease commenced on October 1, 2014 and was to expire on September 30, 2024 with base monthly rent of $10,000, subject to a 5% annual increases during the lease term (the “Prior Kingman Lease”). The Green Valley, AZ lease commenced on October 1, 2014 and was to expire on September 30, 2024 with base monthly rent of $7,500, subject to a 5% annual increases during the lease term (the “Prior Green Valley Lease”). These leases were cancelled and new leases were executed on May 1, 2018 (See (D) below). In August 2015, the Company entered into a lease agreement with C3C3 to lease space in Tempe, Arizona. The Tempe lease commenced on September 1, 2015, was amended on September 1, 2016 and October 1, 2017, and was to expire on July 31, 2035 with base monthly rent of $13,500, subject to a 5% annual increase through July 31, 2023 and base rent of $67,460 per month from August 1, 2023 to the end of the lease term, and increases in rental area up to 30,000 square feet (together, the “Prior Tempe Leases”). This lease was cancelled and a new lease was executed on May 1, 2018 (See (D) below). In August 2015, the Company entered into a lease agreement with C3C3 to lease space in Chino Valley, Arizona (the “Prior Chino Valley Lease”). The Prior Chino Valley Lease commenced on August 1, 2015, was amended on October 10, 2016 and on March 31, 2017, and was to expire on July 31, 2035 with an initial base monthly rent of $30,000, subject to an annual increase and other base rent increases due to the expansion of leased space through July 2024 and base rent of $91,462 per month from August 2024 to the end of the lease term, and increases in rental area to 35,000 square feet. Additionally, pursuant to the March 30, 2017 amendment, the Company agreed to defer rent and applicable taxes due for March, April and May 2017 in the form of a note receivable to C3C3 at an 8% interest rate commencing March 1, 2017 and payable over 12 months commencing January 1, 2018 (see Note 5). This lease was cancelled and a new lease was executed on May 1, 2018 (See (D) below). On June 15, 2017 and effective July 1, 2017, the Company entered into a lease agreement with AC Management Group, LLC (also known as Hana Meds and who is the sole member and manager of C3C3), whose directors/owners are significant stockholders of the Company, to lease office space in Tempe, Arizona (the “Hana Meds Lease”). The Hana Meds Lease commenced on July 1, 2017 and was to expire on June 30, 2022 with base monthly rent of $1,800 starting on October 1, 2017. This lease was cancelled on May 1, 2018 (See (D) below). For the three months ended June 30, 2018 and 2017, rental income associated with all related party leases amounted to $166,425 and $500,312, respectively. For the six months ended June 30, 2018 and 2017, rental income associated with all related party leases amounted to $687,499 and $990,506, respectively. At June 30, 2018 and December 31, 2017, deferred rent receivable – related parties amounted to $0 and $1,708,734, respectively. At June 30, 2018 and December 31, 2017, security deposits payable to related parties amounted to $71,800 and $71,800, respectively. On March 1, 2018, the Company and Alan Abrams entered into a Reaffirmation Agreement related to the personal guarantee. (D) New related party lease agreements On May 1, 2018, the Company and C3C3, CJK, and Broken Arrow cancelled their existing lease agreements. Also on May 1, 2018, the Company entered into new lease agreements relating to the same properties and confidential advisory services agreements with CJK and Broken Arrow. Each of the new lease agreements include a Guarantee of Payment and Performance by Alan Abrams and Christopher Carra. On May 1, 2018, Chino Valley, a wholly owned subsidiary of the Company, and Broken Arrow Herbal Center, Inc. (“Broken Arrow”) agreed to terminate the Prior Chino Valley Lease dated April 6, 2015, as amended, in consideration of (i) entry into that certain Licensed Medical Marijuana Facility Triple Net (NNN) Lease Agreement dated May 1, 2018 between Chino Valley and Broken Arrow (the “New Chino Valley Lease”), with a term of 22 years, expiring April 30, 2040, and (ii) abatement of rent that would otherwise have been due for the month of April under the Prior Chino Valley Lease. The New Chino Valley Lease provides for payment by Broken Arrow of a fixed monthly base rent of $35,000, as well as real property taxes, personal property taxes, privilege, sales, rental, excise, use and/or other taxes (excluding income or estate taxes) levied upon or assessed against Chino Valley. In addition, pursuant to the terms of the New Chino Valley Lease, Broken Arrow agreed to maintain insurance in full force during the term of the New Chino Valley Lease and any other period of occupancy of the premises by Broken Arrow. Broken Arrow is owned, in whole or in part, directly or indirectly, by Messrs. Abrams and Carra, each of whom is a significant stockholder of the Company. On May 1, 2018, Green Valley, a wholly owned subsidiary of the Company, and Broken Arrow agreed to terminate the Prior Green Valley Lease dated October 1, 2014, in consideration of (i) entry into that certain Licensed Medical Marijuana Facility Triple Net (NNN) Lease Agreement dated May 1, 2018 between Green Valley and Broken Arrow (the “New Green Valley Lease”), with a term of 22 years, expiring April 30, 2040, and (ii) abatement of rent that would otherwise have been due for the month of April under the Prior Green Valley Lease. The New Green Valley Lease provides for payment by Broken Arrow of a fixed monthly base rent of $3,500, as well as real property taxes, personal property taxes, privilege, sales, rental, excise, use and/or other taxes (excluding income or estate taxes) levied upon or assessed against Chino Valley. In addition, pursuant to the terms of the New Green Valley Lease, Broken Arrow agreed to maintain insurance in full force during the term of the New Green Valley Lease and any other period of occupancy of the premises by Broken Arrow. On May 1, 2018, Zoned Arizona, a wholly owned subsidiary of the Company, and CJK agreed to terminate the Prior Tempe Leases dated August 15, 2015, as amended, and June 15, 2017, in consideration of (i) entry into that certain Licensed Medical Marijuana Facility Triple Net (NNN) Lease Agreement dated May 1, 2018 between Zoned Arizona and CJK (the “New Tempe Lease”), with a term of 22 years, expiring April 30, 2040, and (ii) abatement of rent that would otherwise have been due for the month of April under the Prior Tempe Leases. The New Tempe Lease provides for payment by CJK of a fixed monthly base rent of $33,500, as well as real property taxes, personal property taxes, privilege, sales, rental, excise, use and/or other taxes (excluding income or estate taxes) levied upon or assessed against Zoned Arizona. In addition, pursuant to the terms of the New Tempe Lease, CJK agreed to maintain insurance in full force during the term of the New Tempe Lease and any other period of occupancy of the premises by CJK. CJK is owned, in whole or in part, directly or indirectly, by Messrs. Abrams and Carra, each of whom is a significant stockholder of the Company. On May 1, 2018, Kingman, a wholly owned subsidiary of the Company, and CJK agreed to terminate the Prior Kingman Lease dated October 1, 2014, in consideration of (i) entry into that certain Licensed Medical Marijuana Facility Triple Net (NNN) Lease Agreement dated May 1, 2018 between Kingman and CJK (the “New Kingman Lease”), with a term of 22 years, expiring April 30, 2040, and (ii) abatement of rent that would otherwise have been due for the month of April under the Prior Kingman Lease. The New Kingman Lease provides for payment by CJK of a fixed monthly base rent of $4,000, as well as real property taxes, personal property taxes, privilege, sales, rental, excise, use and/or other taxes (excluding income or estate taxes) levied upon or assessed against Kingman. In addition, pursuant to the terms of the New Kingman Lease, CJK agreed to maintain insurance in full force during the term of the New Kingman Lease and any other period of occupancy of the premises by CJK. The New Tempe Lease, New Kingman Lease, New Chino Valley Lease and New Green Valley includes a Guarantee of Payment and Performance by Messrs. Abrams and Carra. Each of Messrs. Abrams and Carra is a significant stockholder of the Company. The Company’s Prior Leases contained rental increases at specified intervals. Accordingly, through April 30, 2018, rental income includes base rents that each tenant pays in accordance with the terms of its respective lease and was reported on a straight-line basis over the term of the Old Lease, which included the effects of rent abatements under the leases. Through April 30, 2018, the Company recorded as an asset, and included in revenue, rents receivable that will be received if the tenant makes all rent payments required through the expiration of the initial term of the lease. At December 31, 2017, deferred rents receivable in the accompanying consolidated balance sheets include the cumulative difference between rental revenue recorded on a straight-line basis and rents received from the tenants in accordance with the lease terms. Based on the terms in the New Lease agreements discussed above, the New Leases do not contain rental increases at specified intervals and base rent revenue with be constant over the New Lease terms. Accordingly, on May 1, 2018, the Company wrote off its deferred rent receivable in the amounts of $1,853,539 and recorded a write-off of deferred rent receivable – related parties of $1,853,539.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 7 – STOCKHOLDERS’ EQUITY (A) Preferred Stock On December 13, 2013, the Board of Directors of the Company authorized and approved the creation of a new class of Preferred Stock consisting of 5,000,000 shares authorized, $.001 par value. The preferred stock is not convertible into any other class or series of stock. The holders of the preferred stock are entitled to fifty (50) votes for each share held. Voting rights are not subject to adjustment for splits that increase or decrease the common shares outstanding. Upon liquidation, the holders of the shares will be entitled to receive $1.00 per share plus redemption provision before assets distributed to other shareholders. The holders of the shares are entitled to dividends equal to common share dividends. Once any shares of Preferred Stock are outstanding, at least 51% of the total number of shares of Preferred Stock outstanding must approve the following transactions: a. Alter or change the rights, preferences or privileges of the Preferred Stock. b. Create any new class of stock having preferences over the Preferred Stock. c. Repurchase any of our common stock. d. Merge or consolidate with any other company, except our wholly-owned subsidiaries. e. Sell, convey or otherwise dispose of, or create or incur any mortgage, lien, or charge or encumbrance or security interest in or pledge of, or sell and leaseback, in all or substantially all of our property or business. f. Incur, assume or guarantee any indebtedness maturing more than 18 months after the date on which it is incurred, assumed or guaranteed by us, except for operating leases and obligations assumed as part of the purchase price of property. (B) Common stock issued for services On January 12, 2018, pursuant to an engagement letter dated in October 2015, the Company issued 16,055 shares of its common stock to a Company majority owned by the Company’s former CFO for services rendered. The shares were valued at their fair value of $16,858, or $1.05 per common share, which was the fair value of the common shares on the date of grant by using the quoted share price on the date of grant. In connection with the issuance of these common shares, in January 2018, the Company recorded stock-based compensation expense of $16,858. On January 30, 2018, the Company issued an aggregate of 55,000 shares of common stock to members of the Company’s board of directors for services rendered. The shares were valued at their fair value of $51,700 using the quoted share price on the date of grant of $0.94 per common share. In connection with these grants, in January 2018, the Company recorded stock-based compensation expense of $51,700. On April 2, 2018, the Company issued 10,000 shares of common stock to a member of the Company’s board of directors for services rendered. The shares were valued at their fair value of $6,200 using the quoted share price on the date of grant of $0.62 per common share. In connection with these grants, in April 2018, the Company recorded stock-based compensation expense of $6,200. In connection with a consulting agreement with an investor relations firm effective September 1, 2016 for investor relations services, on April 2, 2018, the Company issued 7,500 shares of restricted stock. The shares were valued at a fair value of $4,650 using the quoted share price on the date of grant of $0.62 per common share. Accordingly, the Company recorded consulting fees of $4,650. (C) Stock options granted pursuant to consulting and employment agreements At June 30, 2018, there were 1,290,000 options outstanding and 1,115,000 options vested and exercisable. As of June 30, 2018, there was $87,214 of unvested stock-based compensation expense to be recognized through December 2024. The aggregate intrinsic value at June 30, 2018 was approximately $800 and was calculated based on the difference between the quoted share price on June 30, 2018 and the exercise price of the underlying options. Stock option activities for the six months ended June 30, 2018 are summarized as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance Outstanding December 31, 2017 1,290,000 $ 0.99 7.74 $ 126,500 Granted - - Balance Outstanding June 30, 2018 1,290,000 $ 0.99 7.25 $ 800 Exercisable, June 30, 2018 1,115,000 $ 0.99 7.25 $ 800

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 – COMMITMENTS AND CONTINGENCIES Rental property acquisition On April 22, 2016, Zoned Colorado Properties, LLC (“Zoned Colorado”), a wholly owned subsidiary of the Company, entered into a Contract to Buy and Sell Real Estate (the “Agreement”) with Parachute Development Corporation (“Seller”) pursuant to which Zoned Colorado agreed to purchase, and Seller agreed to sell, property in Parachute, Colorado (the “Property”) for a purchase price of $499,857. Of the total purchase price, $274,857, or 55%, will be paid in cash at closing and $225,000, or 45%, will be financed by Seller at an interest rate of 6.5%, amortized over a five-year period, with a balloon payment at the end of the fifth year. Payments will be made monthly and there will be no pre-payment penalty. Pursuant to the terms of the Agreement, the parties will cooperate in good faith to complete due diligence during a period of 45 days following execution of the Agreement. The closing is subject to certain contingencies, including that Zoned Colorado must obtain acceptable financing for the purchase and development of the Property, the grant of a special use permit by the Town of Parachute, approval of a protected development deal or equivalent agreement by the Town of Parachute, execution of a lease agreement by a prospective tenant and the prospective tenant’s obtaining a license to cultivate on the Property. Pursuant to the terms of the Agreement, Zoned Colorado will have a right of first refusal on eleven additional lots owned by Seller in Parachute, Colorado. In April 2016, the Company paid a refundable deposit of $45,000 into escrow in connection with the Agreement. As of June 30, 2018, the Company and Seller have yet to complete the purchase. Letter of intent In October 2017, the Company and a third party entity that is a developer of personalized cannabis medicines and a provider of advanced cultivation methods and processes have entered into a letter of intent outlining three independent agreements to complete research and development projects for licensed medical marijuana facilities to be located in Tempe, Arizona, Parachute, Colorado, and Stockdale, Texas or other locations to be determined after approval of a provisional license under the Texas Compassionate Use program. Under the terms of the letter of intent, the two companies will work together to mutually agree upon terms, provisions and obligations of three simultaneous, independent agreements. Execution of any of the three individual agreements is subject to, among other things, satisfactory due diligence and the negotiation and execution of definitive agreements, each of which will contain customary representations, warranties, covenants and closing conditions. There is no assurance that any or all of the agreements will be executed. The letter of intent included a one-time, non-refundable payment of $25,000 to the Company which was paid in 2017. In 2018, the Company received an additional non-refundable deposit of $25,000 from the third party entity. The payments are consideration for entering into the letter of intent and represents a deposit to be applied towards the potential assignment of the Company’s Parachute development rights which have been valued at $250,000 within the letter of intent. At June 30, 2018 and December 31, 2017, deferred revenue related to this letter of intent amounted to $50,000 and $25,000, respectively. Confidential Advisory Services Agreements On May 1, 2018, the Company entered into that certain Confidential Advisory Services Agreement by and between the Company and Broken Arrow (the “Broken Arrow CASA”), with a term expiring on April 30, 2040, unless earlier terminated as provided in the Broken Arrow CASA. Additionally, on May 1, 2018, the Company entered into that certain Confidential Advisory Services Agreement by and between the Company and CJK (the “CJK CASA”), with a term expiring on April 30, 2040, unless earlier terminated as provided in the CJK CASA. These Agreements may be terminated prior to the expiration of the Term upon the occurrence of any of the following: (a) by the Company for any reason at any time upon thirty calendar days’ written notice to the other party; (b) by either party immediately upon the mutual agreement of the parties, evidenced by a writing signed by the parties; or (c) immediately by either party in the event of an actual finding, by a court of competent jurisdiction, of fraud, gross negligence or willful misconduct of the other party in connection with these Agreements. Pursuant to the terms of the Broken Arrow CASA and CJK CASA, Broken Arrow and CJK engaged the Company to perform certain advisory services in exchange for a fee equal to 10% of Broken Arrow’s and CJK’s gross revenues (the (“Revenue Fee”), commencing January 2019. The Revenue Fee shall be paid on a monthly basis, no later than thirty calendar days following the end of the immediately preceding calendar month, and the amount of such monthly payment of the Revenue Fee shall be equal to the product of (a) ten percent (10%), multiplied by (b) the gross revenues of Advisory Clients for such immediately preceding calendar month. Notwithstanding the foregoing, upon the filing of the federal or state tax returns of Advisory Clients, (i) the Advisor Clients shall calculate the Revenue Fee based on the amount of the Advisory Client’s gross revenue reported on such federal or state tax returns, and (ii), if the amount of such calculation is greater than the sum of all monthly Revenue Fees payable to the Company under these Agreements, the Advisory Clients shall pay to the Company the amount of such difference, which amount is in addition to all monthly Revenue Fees due to the Company under these Agreements.

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2018
Concentrations [Abstract]
CONCENTRATIONS	NOTE 9 – CONCENTRATIONS Rental income and rent receivable – related parties The Company entered into lease agreements with non-profit companies, CJK and Broken Arrow, who are owned, in whole or part, directly or indirectly, by Messrs. Abrams and Carra, each whom is a significant stockholder of the Company. Additionally, during the year ended December 31, 2015 and as amended during 2016 and 2017, the Company entered into lease agreements with C3C3, a company indirectly owned by Messrs. Abrams and Carra. Additionally, on March 30, 2017, in connection with a fourth amendment to the commercial lease agreement with C3C3, the Company agreed to defer rent and applicable taxes due for March, April and May 2017 in the form of a note receivable to C3C3 at an 8% interest rate commencing March 1, 2017 and payable over 12 months commencing January 1, 2018. At June 30, 2018 and December 31, 2017, note receivable amounted to $92,160 and $182,365, respectively. On May 1, 2018, the Company and C3C3, CJK, and Broken Arrow cancelled their existing lease agreements. Also on May 1, 2018, the Company entered into new lease agreements relating to the same properties and confidential advisory services agreements with CJK and Broken Arrow (see Note 6). This related party lease restructuring will cause a reduction in the Company’s revenue for the remainder of 2018 of approximately $456,000. Pursuant to the terms of the confidential advisory services agreements (See Note 6), the Company shall perform certain advisory services in exchange for a fee equal to 10% of CJK’s and Broken Arrow’s gross revenues commencing January 2019. Beginning in 2019, there can be no assurance that the revenues generated under these confidential advisory services agreements will be sufficient to offset any reduction in revenues recognized under the cancelled leases. Any additional reduction in revenue from or loss of such related party leases would have a material adverse effect on the Company’s consolidated results of operations and financial condition. For the three months ended June 30, 2018 and 2017, rental revenue associated with the related party leases described above amounted to $166,425 and $500,312, which represents 93.2% and 99.1% of the Company’s total revenues, respectively. For the six months ended June 30, 2018 and 2017, rental revenue associated with the related party leases described above amounted to $687,499 and $990,506, which represents 96.6% and 94.9% of the Company’s total revenues, respectively. At June 30, 2018 and December 31, 2017, deferred rent receivable – related parties amounted to $0 and $1,708,734, respectively. Asset concentration The majority of the Company’s real estate properties are leased to related party tenants under triple-net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing financial statements and related metrics and information that are publicly available or that are provided to us upon request, and (2) monitoring the timeliness of rent collections. As of June 30, 2018 and December 31, 2017, the Company had an asset concentration related to the related party tenants. As of June 30, 2018 and December 31, 2017, these related party tenants represented approximately 86.0% and 90.0% of the Company’s total assets, respectively. Through the date of this report, all rental payments have been made on a timely basis. As of June 30, 2018, the lease agreements with related party tenants were personally guaranteed by Alan Abrams. On March 1, 2018, the Company and Alan Abrams entered into a Reaffirmation Agreement (See Note 6). On May 1, 2018, the Company and C3C3, CJK, and Broken Arrow cancelled their existing lease agreements. Also on May 1, 2018, the Company entered into new lease agreements relating to the same properties and confidential advisory services agreements with CJK and Broken Arrow (see Note 6). Each of the new lease agreements include a Guarantee of Payment and Performance by Alan Abrams and Christopher Carra.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting Policies [Abstract]
Basis of presentation and principles of consolidation	Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. The condensed consolidated financial statements for the three and six months ended June 30, 2018 and 2017 have been prepared by us without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows as of June 30, 2018 and 2017, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole.
Use of estimates	Use of estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates for the six months ended June 30, 2018 and 2017 include the collectability of rent, the useful life of rental properties and property and equipment, assumptions used in assessing impairment of long-term assets, valuation allowances for deferred tax assets, and the fair value of non-cash equity transactions, including options and stock-based compensation.
Risks and uncertainties	Risks and uncertainties The Company’s operations are subject to risk and uncertainties including financial, operational, regulatory and other risks including the potential risk of business failure. The Company conducts a significant portion of its business in Arizona. Additionally, the Company’s tenants operate in the medical marijuana industry. Consequently, any significant economic downturn in the Arizona market or any changes in the federal government’s enforcement of current federal laws or changes in state laws could potentially have a negative effect on the Company’s business, results of operations and financial condition. The majority of the Company’s cash and cash equivalents are held at major commercial banks, which may at times exceed the Federal Deposit Insurance Corporation (“FDIC”) limit. To date, the Company has not experienced any losses on its invested cash. The Company had no cash equivalents at June 30, 2018 and December 31, 2017. At June 30, 2018 and December 31, 2017, the Company had approximately $512,000 and $574,000, respectively, of cash in excess of FDIC limits.
Fair value of financial instruments	Fair value of financial instruments The carrying amounts reported in the condensed consolidated balance sheets for cash, note receivable – related party, prepaid expenses and other current assets, accounts payable, accrued expenses, and other payables approximate their fair market value based on the short-term maturity of these instruments. The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (the “FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 820.
Cash	Cash Cash is carried at cost and represents cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.
Accounts and note receivable	Accounts and note receivable The Company recognizes an allowance for losses on accounts and notes receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized in general and administrative expense. At June 30, 2018 and December 31, 2017, the Company did not have any accounts receivable balance. For the six months ended June 30, 2018 and 2017, the Company did not record any allowances for doubtful accounts.
Rental properties	Rental properties Rental properties are carried at cost, less accumulated depreciation and amortization. Betterments, major renovations and certain costs directly related to the improvement of rental properties are capitalized. Maintenance and repair expenses are charged to expense as incurred. Depreciation is recognized on a straight-line basis over estimated useful lives of the assets, which range from 5 to 39 years. Tenant improvements are amortized on a straight-line basis over the lives of the related leases, which approximate the useful lives of the assets. Upon the acquisition of real estate, the Company assesses the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above-market leases and acquired in-place leases) and acquired liabilities (such as acquired below-market leases) and allocate the purchase price based on these assessments. The Company assesses fair value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known trends, and market/economic conditions. The Company’s rental properties are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. An impairment loss is measured based on the excess of the property’s carrying amount over its estimated fair value. Impairment analyses are based on our current plans, intended holding periods and available market information at the time the analyses are prepared. If the Company’s estimates of the projected future cash flows, anticipated holding periods, or market conditions change, the Company’s evaluation of impairment losses may be different and such differences could be material to its consolidated financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. As discussed below under “revenue recognition”, for the six months ended June 30, 2018 and 2017, the Company recorded a write-off of deferred rent – related parties of $1,853,539 and nil, respectively. The Company has capitalized land, which is not subject to depreciation.
Property and equipment	Property and equipment Property and equipment is stated at cost, less accumulated depreciation. Depreciation of property and equipment is provided utilizing the straight-line method over the estimated useful lives. The Company uses a five year life for office equipment, seven years for furniture and fixtures, and five to ten years for vehicles. Expenditures for maintenance and repairs are charged to expense as incurred. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. The Company examines the possibility of decreases in the value of these assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.
Revenue recognition	Revenue recognition Effective on January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 and ASC Topic 606, Revenue from Contracts with Customers Rental income includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease, which includes the effects of rent abatements under the leases. The Company commences rental revenue recognition when the tenant takes possession of the leased space or controls the physical use of the leased space and the leased space is substantially ready for its intended use. Through April 30, 2018, certain of the Company’s leases contained rental increases at specified intervals. The Company recorded as an asset, and included in revenue, deferred rents receivable that were to be received if the tenant made all rent payments required through the expiration of the initial term of the lease. At December 31, 2017, deferred rents receivable in the accompanying consolidated balance sheets include the cumulative difference between rental revenue recorded on a straight-line basis and rents received from the tenants in accordance with the prior lease terms. On May 1, 2018, the Company and the related party tenants cancelled their existing lease agreements. Also on May 1, 2018, the Company entered into new lease agreements relating to the same properties (See Note 6). These leases provide for payments with fixed monthly base rents over the term of the leases. Accordingly, the Company reviewed its deferred rent receivable and determined that the deferred rent receivable of $1,853,539 should be written off since, pursuant to the new lease terms, the deferred rent receivable was not collectible. Accordingly, on May 1, 2018, the Company recorded a write-off of deferred rent receivable – related parties of $1,853,539 in operating expenses on the accompanying condensed consolidation statements of operations.
Basic and diluted income (loss) per share	Basic and diluted income (loss) per share Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period using the treasury stock method and as-if converted method. Potentially dilutive common shares and participating securities are excluded from the computation of diluted shares outstanding if they would have an anti-dilutive impact on the Company’s net losses. The Company’s preferred stock is considered a participating security since the preferred shares are entitled to dividends equal to common share dividends and accordingly, are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings (loss) per share is an earnings allocation formula that determines earnings (loss) per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The following table presents a reconciliation of basic and diluted net income (loss) per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 Income (loss) per common share - basic: Net income (loss) $ (2,018,837 ) $ 118,153 $ (1,896,061 ) $ 1,006,820 Less: undistributed (earnings) loss allocated to participating securities - (12,236 ) - (104,264 ) Net income (loss) allocated to common stockholders $ (2,018,837 ) $ 105,917 $ (1,896,061 ) $ 902,556 Weighted average common shares outstanding - basic 17,433,667 17,312,655 17,414,977 17,290,422 Net income (loss) per common share - basic $ (0.12 ) $ 0.01 $ (0.11 ) $ 0.05 Income (loss) per common share - diluted: Net income (loss) allocated to common shareholders - basic $ (2,018,837 ) $ 105,917 $ (1,896,061 ) $ 902,556 Add: interest of convertible debt - 34,189 - 79,380 Numerator for income (loss) per common share - diluted $ (2,018,837 ) $ 140,106 $ (1,896,061 ) $ 981,936 Weighted average common shares outstanding - basic 17,433,667 17,312,655 17,414,977 17,290,422 Effect of dilutive securities: Stock options - 208,334 - 438,312 Convertible notes payable - 404,000 - 404,000 Weighted average common shares outstanding – diluted 17,433,667 17,924,989 17,414,977 18,132,734 Net income (loss) per common share - diluted $ (0.12 ) $ 0.01 $ (0.11 ) $ 0.05 The following potentially dilutive shares have been excluded from the calculation of diluted net income (loss) per share as their effect would be anti-dilutive for the three and six months ended June 30, 2018 and 2017. June 30, June 30, Convertible debt 404,000 - Stock options 1,283,354 -
Segment reporting	Segment reporting The Company’s business is comprised of one reportable segment. The Company has determined that its properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing commercial properties). The Company’s determination was based primarily on its method of internal reporting.
Income tax	Income tax Deferred income tax assets and liabilities arise from temporary differences between the financial statements and tax basis of assets and liabilities, as measured by the enacted tax rates, which are expected to be in effect when these differences reverse. Deferred tax assets and liabilities are classified as current or non-current, depending upon the classification of the asset or liabilities to which they relate. Deferred tax assets and liabilities not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”) became effective and, among other items, reduces the current federal income tax rate to 21% from 34%. The rate reduction is effective January 1, 2018, and is permanent. The Act has caused the Company’s deferred income taxes to be revalued. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expense. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 (“SAB 118”), as of December 31, 2017, the Company recognized the provisional effects of the enactment of the Act for which measurement could be reasonably estimated. Since the Company has provided a full valuation allowance against its deferred tax assets, the revaluation of the deferred tax assets did not have a material impact on any period presented. The ultimate impact of the Act may differ from these estimates due to the Company’s continued analysis or further regulatory guidance that may be issued as a result of the Act. The Company follows the provisions of FASB ASC 740-10, “Uncertainty in Income Taxes”. Certain recognition thresholds must be met before a tax position is recognized in the financial statements. An entity may only recognize or continue to recognize tax positions that meet a “more-likely-than-not” threshold. The Company does not believe it has any uncertain tax positions as of June 30, 2018 and December 31, 2017 that would require either recognition or disclosure in the accompanying consolidated financial statements.
Stock-based compensation	Stock-based compensation Stock-based compensation is accounted for based on the requirements of ASC 718 – “Compensation –Stock Compensation ”), Improvements to Employee Share-Based Payment Accounting Through March 31, 2018, pursuant to ASC 505-50 – “Equity-Based Payments to Non-Employees” Improvements to Nonemployee Share-Based Payment Accounting,
Recently issued accounting pronouncements	Recently issued accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842). In August 2016, the FASB issued ASU 2016-15 which addresses eight cash flow classification issues, eliminating the diversity in practice. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively applied as of the earliest date practicable. The adoption of ASU 2016-15 did not have any impact on the Company’s consolidated financial statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Summary of Significant Accounting Policies [Abstract]
Schedule of reconciliation of basic and diluted net income (loss) per share	Three Months Ended Six Months Ended 2018 2017 2018 2017 Income (loss) per common share - basic: Net income (loss) $ (2,018,837 ) $ 118,153 $ (1,896,061 ) $ 1,006,820 Less: undistributed (earnings) loss allocated to participating securities - (12,236 ) - (104,264 ) Net income (loss) allocated to common stockholders $ (2,018,837 ) $ 105,917 $ (1,896,061 ) $ 902,556 Weighted average common shares outstanding - basic 17,433,667 17,312,655 17,414,977 17,290,422 Net income (loss) per common share - basic $ (0.12 ) $ 0.01 $ (0.11 ) $ 0.05 Income (loss) per common share - diluted: Net income (loss) allocated to common shareholders - basic $ (2,018,837 ) $ 105,917 $ (1,896,061 ) $ 902,556 Add: interest of convertible debt - 34,189 - 79,380 Numerator for income (loss) per common share - diluted $ (2,018,837 ) $ 140,106 $ (1,896,061 ) $ 981,936 Weighted average common shares outstanding - basic 17,433,667 17,312,655 17,414,977 17,290,422 Effect of dilutive securities: Stock options - 208,334 - 438,312 Convertible notes payable - 404,000 - 404,000 Weighted average common shares outstanding – diluted 17,433,667 17,924,989 17,414,977 18,132,734 Net income (loss) per common share - diluted $ (0.12 ) $ 0.01 $ (0.11 ) $ 0.05
Schedule of potentially dilutive shares have been excluded from the calculation of diluted net loss per share	June 30, June 30, Convertible debt 404,000 - Stock options 1,283,354 -

Rental Properties (Tables)

Rental Properties (Tables)	6 Months Ended
	Jun. 30, 2018
Rental Properties [Abstract]
Schedule of rental properties, net	Description Useful Life (Years) June 30, December 31, Building and building improvements 5-39 $ 5,386,791 $ 5,381,372 Construction in progress - 302,850 40,230 Land - 2,283,214 2,283,214 Rental properties, at cost 7,972,855 7,704,816 Less: accumulated depreciation (657,862 ) (534,494 ) Rental properties, net $ 7,314,993 $ 7,170,322

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity [Abstract]
Schedule of stock option activities	Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance Outstanding December 31, 2017 1,290,000 $ 0.99 7.74 $ 126,500 Granted - - Balance Outstanding June 30, 2018 1,290,000 $ 0.99 7.25 $ 800 Exercisable, June 30, 2018 1,115,000 $ 0.99 7.25 $ 800

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income (loss) per common share - basic:
Net income (loss)	$ (2,018,837)	$ 118,153	$ (1,896,061)	$ 1,006,820
Less: undistributed (earnings) loss allocated to participating securities		(12,236)		(104,264)
Net income (loss) allocated to common stockholders	$ (2,018,837)	$ 105,917	$ (1,896,061)	$ 902,556
Weighted average common shares outstanding - basic	17,433,667	17,312,655	17,414,977	17,290,422
Net income (loss) per common share - basic	$ (0.12)	$ 0.01	$ (0.11)	$ 0.05
Income (loss) per common share - diluted:
Net income (loss) allocated to common shareholders - basic	$ (2,018,837)	$ 105,917	$ (1,896,061)	$ 902,556
Add: interest of convertible debt		34,189		79,380
Numerator for income (loss) per common share - diluted	$ (2,018,837)	$ 140,106	$ (1,896,061)	$ 981,936
Weighted average common shares outstanding - basic	17,433,667	17,312,655	17,414,977	17,290,422
Effect of dilutive securities:
Stock options		208,334		438,312
Convertible notes payable		404,000		404,000
Weighted average common shares outstanding - diluted	17,433,667	17,924,989	17,414,977	18,132,734
Net income (loss) per common share - diluted	$ (0.12)	$ 0.01	$ (0.11)	$ 0.05

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Details 1) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Convertible debt [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted net income (loss) per share	404,000
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the calculation of diluted net income (loss) per share	1,283,354

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details Textual)	1 Months Ended	3 Months Ended	6 Months Ended
	Dec. 22, 2017	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)Segments	Jun. 30, 2017USD ($)	May 01, 2018USD ($)	Dec. 31, 2017USD ($)
Summary of Significant Accounting Policies (Textual)
Amount of cash excess of FDIC		$ 512,000	$ 512,000			$ 574,000
Write-off of deferred rent - related parties		$ 1,853,539	$ 1,853,539
Deferred rent receivable					$ 1,853,539
Number of reportable segments | Segments			1
Minimum [Member]
Summary of Significant Accounting Policies (Textual)
Current federal income tax rate, percentage	21.00%
Maximum [Member]
Summary of Significant Accounting Policies (Textual)
Current federal income tax rate, percentage	34.00%
Rental properties [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Textual)
Estimated useful life of assets			5 years
Rental properties [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Textual)
Estimated useful life of assets			39 years
Office equipment [Member]
Summary of Significant Accounting Policies (Textual)
Estimated useful life of assets			5 years
Furniture and fixtures [Member]
Summary of Significant Accounting Policies (Textual)
Estimated useful life of assets			7 years
Vehicles [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Textual)
Estimated useful life of assets			5 years
Vehicles [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Textual)
Estimated useful life of assets			10 years

Rental Properties (Details)

Rental Properties (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Rental properties, at cost	$ 7,972,855	$ 7,704,816
Less: accumulated depreciation	(657,862)	(534,494)
Rental properties, net	7,314,993	7,170,322
Building and building improvements [Member]
Property, Plant and Equipment [Line Items]
Rental properties, at cost	$ 5,386,791	5,381,372
Building and building improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life of assets	5 years
Building and building improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life of assets	39 years
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Rental properties, at cost	$ 302,850	40,230
Land [Member]
Property, Plant and Equipment [Line Items]
Rental properties, at cost	$ 2,283,214	$ 2,283,214

Rental Properties (Details Text

Rental Properties (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Rental Properties (Textual)
Depreciation and amortization of rental properties	$ 61,716	$ 47,737	$ 123,367	$ 104,691

Rental Property Held for Sale (

Rental Property Held for Sale (Details) - USD ($)	Mar. 15, 2017	Dec. 22, 2016	Jun. 30, 2017
Rental Property Held for Sale (Textual)
Gain on sale of property			$ 831,753
Commercial Real Estate Purchase Contract [Member]
Rental Property Held for Sale (Textual)
Aggregate purchase price for property	$ 2,085,000	$ 2,125,000
Purchaser deposited an additional deposit amount	20,000
Purchaser paid a deposit amount is being held in escrow by a third party		$ 20,000
Gain on sale of property	$ 831,000

Note Receivable - Related Par25

Note Receivable - Related Party (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Note Receivable - Related Party (Textual)
Note receivable related party, interest rate	8.00%
Note receivable, amount	$ 92,160	$ 182,365
Notes payable, monthly payments	$ 15,647

Related Party Transactions (Det

Related Party Transactions (Details)

May 01, 2018USD ($)

Mar. 01, 2018USD ($)

Oct. 01, 2017USD ($)

Jan. 09, 2017USD ($)$ / shares

Aug. 31, 2015USD ($)ft²

Oct. 01, 2014USD ($)

Oct. 26, 2015

Jun. 30, 2018USD ($)

Jun. 30, 2017USD ($)

Jun. 30, 2018USD ($)

Jun. 30, 2017USD ($)

Dec. 31, 2017USD ($)

Related Party Transactions (Textual)

Interest expenses - related parties

$ 30,300

$ 32,245

$ 60,600

$ 68,688

Rental revenues - related parties

166,425

$ 500,312

687,499

990,506

Deferred rent receivable

$ 1,853,539

Security deposits payable - related parties

71,800

71,800

$ 71,800

Accrued interest payable

31,200

31,200

30,600

Principal balance of debentures

2,020,000

Principal balance due under debentures

2,020,000

2,020,000

2,020,000

Write-off of deferred rent receivable - related parties

1,853,539

1,853,539

Convertible Notes Payable [Member]

Related Party Transactions (Textual)

Maturity date of debt

Jan. 9, 2022

Common stock conversion price per share | $ / shares

$ 5

Debentures accrued interest

6.00%

Bear interest rate, percentage

12.00%

Abrams Debenture [Member]

Related Party Transactions (Textual)

Convertible notes payable

$ 2,000,000

Convertible notes payable exchange cash

2,000,000

Principal balance of debentures

$ 2,000,000

McLaren Debenture [Member]

Related Party Transactions (Textual)

Convertible notes payable

20,000

Convertible notes payable exchange cash

$ 20,000

Green Valley [Member]

Related Party Transactions (Textual)

Lease expiration date

Sep. 30, 2024

Base monthly rent

$ 7,500

Annual increase rate on lease and rentals, percentage

5.00%

Lease agreement, description

The Prior Green Valley Lease dated October 1, 2014, in consideration of (i) entry into that certain Licensed Medical Marijuana Facility Triple Net (NNN) Lease Agreement dated May 1, 2018 between Green Valley and Broken Arrow (the "New Green Valley Lease"), with a term of 22 years, expiring April 30, 2040, and (ii) abatement of rent that would otherwise have been due for the month of April under the Prior Green Valley Lease. The New Green Valley Lease provides for payment by Broken Arrow of a fixed monthly base rent of $3,500, as well as real property taxes, personal property taxes, privilege, sales, rental, excise, use and/or other taxes (excluding income or estate taxes) levied upon or assessed against Chino Valley. In addition, pursuant to the terms of the New Green Valley Lease, Broken Arrow agreed to maintain insurance in full force during the term of the New Green Valley Lease and any other period of occupancy of the premises by Broken Arrow.

Prior Kingman Lease [Member]

Related Party Transactions (Textual)

Lease expiration date

Sep. 30, 2024

Base monthly rent

$ 10,000

Annual increase rate on lease and rentals, percentage

5.00%

Tempe Lease [Member]

Related Party Transactions (Textual)

Lease expiration date

Jul. 31, 2035

Base monthly rent

$ 13,500

Annual increase rate on lease and rentals, percentage

5.00%

Hana Meds Lease [Member]

Related Party Transactions (Textual)

Lease expiration date

Jun. 30, 2022

Base monthly rent

$ 1,800

Chino Valley Lease [Member]

Related Party Transactions (Textual)

Lease expiration date

Jul. 31, 2035

Base monthly rent

$ 30,000

Lease agreement, description

The Prior Chino Valley Lease dated April 6, 2015, as amended, in consideration of (i) entry into that certain Licensed Medical Marijuana Facility Triple Net (NNN) Lease Agreement dated May 1, 2018 between Chino Valley and Broken Arrow (the "New Chino Valley Lease"), with a term of 22 years, expiring April 30, 2040, and (ii) abatement of rent that would otherwise have been due for the month of April under the Prior Chino Valley Lease. The New Chino Valley Lease provides for payment by Broken Arrow of a fixed monthly base rent of $35,000, as well as real property taxes, personal property taxes, privilege, sales, rental, excise, use and/or other taxes (excluding income or estate taxes) levied upon or assessed against Chino Valley. In addition, pursuant to the terms of the New Chino Valley Lease, Broken Arrow agreed to maintain insurance in full force during the term of the New Chino Valley Lease and any other period of occupancy of the premises by Broken Arrow. Broken Arrow is owned, in whole or in part, directly or indirectly, by Messrs. Abrams and Carra, each of whom is a significant stockholder of the Company.

Related Party Lease Agreements [Member]

Related Party Transactions (Textual)

Deferred rent receivable

$ 0

$ 0

$ 1,708,734

Related Party Lease Agreements [Member] | Tempe Lease [Member]

Related Party Transactions (Textual)

Lease expiration date

Aug. 1, 2023

Increases in rental area square feet | ft²

30,000

Base rent per month

$ 67,460

Related Party Lease Agreements [Member] | Chino Valley Lease [Member]

Related Party Transactions (Textual)

Lease expiration date

Aug. 31, 2024

Increases in rental area square feet | ft²

35,000

Base monthly rent

$ 91,462

Annual increase rate on lease and rentals, percentage

8.00%

Chief Financial Officer [Member]

Related Party Transactions (Textual)

Engagement letter, description

The Company agreed to pay a base fee of $6,500 in cash per month and $3,500 per month payable quarterly in advance in common shares of the Company valued at the lower of the share price from the most recent capital raise or 60% of the bid price of the Company's common stock at the last trading day of the previous quarter with a minimum number of common shares issuable per month of 1,250 shares. The engagement letter was terminated in May 2018.

Zoned Arizona [Member]

Related Party Transactions (Textual)

Lease agreement, description

The Prior Tempe Leases dated August 15, 2015, as amended, and June 15, 2017, in consideration of (i) entry into that certain Licensed Medical Marijuana Facility Triple Net (NNN) Lease Agreement dated May 1, 2018 between Zoned Arizona and CJK (the "New Tempe Lease"), with a term of 22 years, expiring April 30, 2040, and (ii) abatement of rent that would otherwise have been due for the month of April under the Prior Tempe Leases. The New Tempe Lease provides for payment by CJK of a fixed monthly base rent of $33,500, as well as real property taxes, personal property taxes, privilege, sales, rental, excise, use and/or other taxes (excluding income or estate taxes) levied upon or assessed against Zoned Arizona. In addition, pursuant to the terms of the New Tempe Lease, CJK agreed to maintain insurance in full force during the term of the New Tempe Lease and any other period of occupancy of the premises by CJK. CJK is owned, in whole or in part, directly or indirectly, by Messrs. Abrams and Carra, each of whom is a significant stockholder of the Company.

Kingman [Member]

Related Party Transactions (Textual)

Lease agreement, description

The Prior Kingman Lease dated October 1, 2014, in consideration of (i) entry into that certain Licensed Medical Marijuana Facility Triple Net (NNN) Lease Agreement dated May 1, 2018 between Kingman and CJK (the "New Kingman Lease"), with a term of 22 years, expiring April 30, 2040, and (ii) abatement of rent that would otherwise have been due for the month of April under the Prior Kingman Lease. The New Kingman Lease provides for payment by CJK of a fixed monthly base rent of $4,000, as well as real property taxes, personal property taxes, privilege, sales, rental, excise, use and/or other taxes (excluding income or estate taxes) levied upon or assessed against Kingman. In addition, pursuant to the terms of the New Kingman Lease, CJK agreed to maintain insurance in full force during the term of the New Kingman Lease and any other period of occupancy of the premises by CJK.

Stockholders' Equity (Details)

Stockholders' Equity (Details)	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Stockholders' Equity [Abstract]
Number of Options, Outstanding, Beginning Balance | shares	1,290,000
Number of Options, Outstanding, Granted | shares
Number of Options, Outstanding, Ending Balance | shares	1,290,000
Number of Options, Exercisable | shares	1,115,000
Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0.99
Weighted Average Exercise Price, Granted | $ / shares
Weighted Average Exercise Price, Ending Balance | $ / shares	0.99
Weighted Average Exercise Price, Exercisable | $ / shares	$ 0.99
Weighted Average Remaining Contractual Term (Years), Outstanding, Beginning Balance	7 years 8 months 26 days
Weighted Average Remaining Contractual Term (Years), Outstanding, Ending Balance	7 years 2 months 30 days
Weighted Average Remaining Contractual Term (Years), Exercisable	7 years 2 months 30 days
Aggregate Intrinsic Value, Beginning Balance | $	$ 126,500
Aggregate Intrinsic Value, Granted | $
Aggregate Intrinsic Value, Ending Balance | $	800
Aggregate Intrinsic Value, Exercisable | $	$ 800

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	Jan. 30, 2018	Jan. 12, 2018	Dec. 13, 2013	Apr. 30, 2018	Apr. 02, 2018	Jun. 30, 2018	Dec. 31, 2017
Stockholders' Equity (Textual)
Preferred stock, shares authorized						5,000,000	5,000,000
Preferred stock, par value						$ 0.001	$ 0.001
Number of options outstanding, granted
Stock-based compensation expense				$ 6,200
Quoted share price, per share					$ 0.62
Restricted stock issued shares					7,500
Consulting fees					$ 4,650
Consulting and Employment Agreements [Member]
Stockholders' Equity (Textual)
Number of options outstanding, granted						1,290,000
Number of vested shares						1,115,000
Unvested stock-based compensation expense						$ 87,214
Aggregate intrinsic value						$ 800
Board of Directors [Member]
Stockholders' Equity (Textual)
Preferred stock, shares authorized			5,000,000
Preferred stock, par value			$ 0.001
Preferred stock, voting rights, description			The holders of the preferred stock are entitled to fifty (50) votes for each share held.
Preferred stock outstanding transactions, description			At least 51% of the total number of shares of Preferred Stock outstanding
Common stock price per share	$ 0.94				$ 0.62
Common stock issued for services, shares	55,000				10,000
Common stock issued for services, fair value	$ 51,700				$ 4,650
Stock-based compensation expense	$ 51,700				$ 6,200
Quoted share price, per share			$ 1
Former CFO [Member]
Stockholders' Equity (Textual)
Common stock price per share		$ 1.05
Common stock issued for services, shares		16,055
Common stock issued for services, fair value		$ 16,858
Stock-based compensation expense		$ 16,858

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Apr. 22, 2016	May 01, 2018	Oct. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Apr. 30, 2016
Commitments and Contingencies (Textual)
Purchase price of property					$ 2,586
Refundable deposit into escrow
Non-refundable payment			$ 25,000
Additional non-refundable deposit				25,000
Parachute development rights			$ 250,000
Deferred revenue related to letter of intent				$ 50,000		$ 25,000
Confidential Advisory Services Agreements [Member]
Commitments and Contingencies (Textual)
Description of services agreements		(a) by the Company for any reason at any time upon thirty calendar days' written notice to the other party; (b) by either party immediately upon the mutual agreement of the parties, evidenced by a writing signed by the parties; or (c) immediately by either party in the event of an actual finding, by a court of competent jurisdiction, of fraud, gross negligence or willful misconduct of the other party in connection with these Agreements. Pursuant to the terms of the Broken Arrow CASA and CJK CASA, Broken Arrow and CJK engaged the Company to perform certain advisory services in exchange for a fee equal to 10% of Broken Arrow's and CJK's gross revenues (the ("Revenue Fee"), commencing January 2019. The Revenue Fee shall be paid on a monthly basis, no later than thirty calendar days following the end of the immediately preceding calendar month, and the amount of such monthly payment of the Revenue Fee shall be equal to the product of (a) ten percent (10%), multiplied by (b) the gross revenues of Advisory Clients for such immediately preceding calendar month. Notwithstanding the foregoing, upon the filing of the federal or state tax returns of Advisory Clients, (i) the Advisor Clients shall calculate the Revenue Fee based on the amount of the Advisory Client's gross revenue reported on such federal or state tax returns, and (ii), if the amount of such calculation is greater than the sum of all monthly Revenue Fees payable to the Company under these Agreements, the Advisory Clients shall pay to the Company the amount of such difference, which amount is in addition to all monthly Revenue Fees due to the Company under these Agreements.
Zoned Colorado Properties, LLC [Member]
Commitments and Contingencies (Textual)
Purchase price of property	$ 499,857
Refundable deposit into escrow							$ 45,000
Payment terms of purchase agreement, description	Of the total purchase price, $274,857, or 55%, will be paid in cash at closing and $225,000, or 45%, will be financed by Seller at an interest rate of 6.5%, amortized over a five-year period, with a balloon payment at the end of the fifth year.
Broken Arrow CASA [Member] | Confidential Advisory Services Agreements [Member]
Commitments and Contingencies (Textual)
Term expiration date		Apr. 30, 2040
CJK CASA [Member] | Confidential Advisory Services Agreements [Member]
Commitments and Contingencies (Textual)
Term expiration date		Apr. 30, 2040

Concentrations (Details)

Concentrations (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Concentrations (Textual)
Rental revenue	$ 166,425	$ 500,312	$ 687,499	$ 990,506
Deferred rent receivable - related parties					$ 1,708,734
Percentage of rental revenue	93.20%	99.10%	96.60%	94.90%
Note receivable interest rate			8.00%
Note receivable	$ 92,160		$ 92,160		$ 182,365
Related party lease, description			This related party lease restructuring will cause a reduction in the Company's revenue for the remainder of 2018 of approximately $456,000. Pursuant to the terms of the confidential advisory services agreements (See Note 6), the Company shall perform certain advisory services in exchange for a fee equal to 10% of CJK's and Broken Arrow's gross revenues commencing January 2019..
Tenants [Member]
Concentrations (Textual)
Percentage of rental revenue			86.00%		90.00%