MJ Pharmaceuticals 10-Q 29 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 26, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	MJ Pharmaceuticals Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		190,064,778
Amendment Flag	false
Entity Central Index Key	1,502,629
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents (Note 2)	$ 18,830	$ 3,971
Inventory (Note 2)	45,630	0
Prepaid Rent (Note 4)	3,250	0
Total Current Assets	67,710	3,971
Property, plant and equipment, net (Notes 2 and 5)	42,135	0
TOTAL ASSETS	109,845	3,971
Current Liabilities:
Accrued Expenses	3,500	9,309
Related party loan	0	449
Total Current Liabilities	3,500	9,758
STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock par value $0.0001 per share; 20,000,000 shares authorized; none issued at June 30, 2016 and December 31, 2015.	0	0
Common stock, par value $0.0001 per share; 500,000,000 shares authorized;190,104,000 and 185,740,000 shares issued and outstanding, at June 30, 2016 and December 31, 2015, respectively.	19,010	18,574
Additional Paid In Capital	186,564	0
Accumulated Deficit	(99,229)	(24,361)
Total Stockholders’ Equity (Deficit)	106,345	(5,787)
Total Liabilities and Stockholders’ Equity (Deficit)	$ 109,845	$ 3,971

BALANCE SHEETS (Parentheticals)

BALANCE SHEETS (Parentheticals) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Preferred Stock, Par Value (in Dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Preferred Stock, Shares Issued	0	0
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	190,104,000	185,740,000
Common stock, shares outstanding	190,104,000	185,740,000

STATEMENT OF OPERATIONS (UNAUDI

STATEMENT OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues (Note 2):
Revenues	$ 10,000	$ 0	$ 18,000	$ 0
Less: cost of goods sold	(5,750)	0	(10,750)	0
Gross Profit	4,250	0	7,250	0
Expenses
General and administrative	19,029	(521)	26,627	11
Taxes-property	16,856	0	23,856	0
Legal, organization and related expenses	0	1,566	0	1,566
Professional fees	9,500	0	31,635	0
Total Expenses	45,385	1,045	82,118	1,577
Net (loss)	$ (41,135)	$ (1,045)	$ (74,868)	$ (1,577)
(Loss) per common share, basic and diluted (Note 2) (in Dollars per share)	$ 0	$ 0	$ 0	$ 0
Weighted average shares outstanding, basic and diluted (in Shares)	190,064,778	185,740,000	189,156,911	185,740,000

STATEMENT OF CHANGES IN STOCKHO

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - 6 months ended Jun. 30, 2016 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2015	$ 18,574		$ (24,361)	$ (5,787)
Balance (in Shares) at Dec. 31, 2015	185,740,000			185,740,000
Shares issued for cash	$ 436	$ 186,564		$ 187,000
Shares issued for cash (in Shares)	4,364,000			4,364,000
Net (loss)			(74,868)	$ (74,868)
Balance at Jun. 30, 2016	$ 19,010	$ 186,564	$ (99,229)	$ 106,345
Balance (in Shares) at Jun. 30, 2016	190,104,000			190,104,000

STATEMENT OF CASH FLOWS (UNAUDI

STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net (loss)	$ (74,868)	$ (1,577)
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:
Depreciation	543	0
Changes in operating assets and liabilities:
(Increase) in inventory	(45,630)	0
(Increase) in prepaid rent	(3,250)	0
(Decrease) in accrued expenses	(5,809)	0
Net cash (used in) operating activities	(129,014)	(1,577)
Cash flows from investing activities:
Purchase of building	(42,678)	0
Net cash (used in) investing activities	(42,678)	0
Cash flows from Financing activities:
Proceeds from issuance of common stock	187,000	0
(Repayment of) proceeds from related party loan	(449)	50
Net cash provided by financing activities	186,551	50
Net change in cash and cash equivalents	14,859	(1,527)
Cash and cash equivalents, beginning of period	3,971	7,358
Cash and cash equivalents, end of period	18,830	5,831
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	0	0
Cash paid during the period for taxes	$ 0	$ 0

1. GENERAL

1. GENERAL	6 Months Ended
	Jun. 30, 2016
Disclosure Text Block [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Organization and Business Nature MJ Pharmaceuticals, Inc. (the "Company") was incorporated under the laws of the State of Delaware on February 21, 2012 as Melanthios Acquisition, Inc. The Company initially intended to serve as a vehicle to effect an asset acquisition, merger, and exchange of capital stock or other business combination with a domestic or foreign business. On October 31, 2013, the original owner of the Company transferred 100% of his shares to Uren Enterprises, LLC which is solely owned by Mr. Mark Uren. The Company under the new ownership intended to serve as an investor in and provider of e-commerce operations to the property management and property rental industries, as well as investor in and provider of e-commerce operations and other services to the marijuana pharmaceutical industry. On April 11, 2014, Melanthios Acquisition, Inc. amended its certificate of incorporation changing the name of the Company to Price My Rent Group, Inc. On December 17, 2014, Price My Rent Group, Inc. amended its certificate of incorporation changing the name of the Company to MJ Pharmaceuticals, Inc. The Company commenced limited initial e-commerce operations on September 1, 2014. In November 2014, the Company suspended these operations, subject to further development of the e-commerce portal.

2. ACCOUNTING POLICIES

2. ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	2. Basis of Accounting and Presentation The unaudited interim financial statements of the Company as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2016. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all liquid investments with an original maturity of three months or less to be cash equivalents. Inventory Inventory, comprised of marijuana oil cartridges, is valued at the lower of cost or market. The value of inventory is determined using Property and Furniture Property, plant and equipment are recorded at cost, less accumulated depreciation. Cost includes the price paid to acquire the asset, and any expenditures that substantially increase an asset’s value or extends the useful life of an existing asset. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred. The estimated useful lives for property, plant and equipment categories are as follows: Building 40 years Furniture 7 years Revenue Recognition Revenue is recorded pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, Revenue Recognition . Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Income Taxes ASC 740 also addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is “more likely than not” that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. As of June 30, 2016 and December 31, 2015, the Company does not have a liability for any unrecognized tax benefits. Earnings (Loss) Per Share Net earnings (loss) per share is calculated in accordance with FASB ASC 260, Earnings Per Share . Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurement Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements. FASB ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company did not identify any assets or liabilities that are required to be presented at fair value on a recurring basis. Non-derivative financial instruments include cash and cash equivalents, accrued expenses and the related party loan. As of June 30, 2016 and December 31, 2015

3. RECENTLY ISSUED ACCOUNTING S

3. RECENTLY ISSUED ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	3. In February 2016, the FASB issued ASU 2016-02, Leases . In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue Recognition

4. LEASES

4. LEASES	6 Months Ended
	Jun. 30, 2016
Leases [Abstract]
Leases of Lessee Disclosure [Text Block]	4. The Company leases its office space from an unrelated third party under a one-year operating lease, commencing on April 1, 2016 and expiring on March 31, 2017. The lease requires the Company to pay an annual rent of $3,900 with a security deposit of $325.

5. PROPERTY, PLANT AND EQUIPMEN

5. PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	5. PROPERTY, PLANT AND EQUIPMENT During the six months ended June 30, 2016, the Company purchased a 150,000 sq. ft. facility in Detroit Michigan for $40,399 for a future manufacturing/distribution center. Property, plant and equipment as of June 30, 2016 and December 31, 2015 are summarized as follows: 2016 2015 (Unaudited) Building $ 40,399 $ - Furniture and fixtures 2,279 - 42,678 - Less: accumulated depreciation (543 ) - Property, plant and equipment, net $ 42,135 $ - For the three and six months ended June 30, 2016 and 2015, depreciation expense was $359, $543, $0 and $0, respectively.

6. ISSUANCE OF COMMON STOCK

6. ISSUANCE OF COMMON STOCK	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	6. ISSUANCE OF COMMON STOCK During the six months ended June 30, 2016, the Company issued an aggregate of 4,364,000 shares of common stock at various prices with a total proceeds of $187,000.

7. GOING CONCERN

7. GOING CONCERN	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern [Text Block]	7. The Company’s financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is a start-up entity subject to the substantial business risks and uncertainties inherent to such an entity, including the potential risk of business failure. The Company has generated operating losses since its inception. While the Company is attempting to commence operations and generate revenues, it continues to be reliant upon its stockholders to support its daily operations. This raises substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern and its ability to commence its planned principal business activities is dependent upon the continued financial support from its stockholders and its ability to obtain the necessary equity or debt financing and eventually attain profitable operations . The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

8. SUBSEQUENT EVENTS

8. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	8. SUBSEQUENT EVENTS The Company's management has performed subsequent events procedures through August 26, 2016, which is the date the financial statements were available to be issued. Except for the issue discussed below, there were no subsequent events requiring adjustment to the financial statements or disclosure as stated herein. Mark Uren tendered his resignation letter dated August 15, 2016, to resign from the Company by reason of other than for Cause, as the Chief Executive Officer, Principal Financial Officer, Secretary, the sole Director and the Chairman of the Board of Directors and from any office he held with the Company. Mr. Uren shall pursue new opportunities outside of MJ Pharmaceuticals, Inc. but shall remain as the largest stockholder of the Company. As of August 15, 2016, James Liebo was appointed as the sole director and successor to Mark Uren and as the President, Secretary and Chief Executive Officer of the Company. Mr. Liebo is also the majority owner of Cutting Edge Sales and EBR Consulting in Dallas, Texas. His brings to the Company significant management experience, including employee management in excess of 25 years and his background and knowledge of sale and product distribution. Based upon the foregoing, it is believed that Mr. Liebo has sufficient management experience to serve as an officer and director of the Company.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Accounting and Presentation The unaudited interim financial statements of the Company as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2016.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents The Company considers all liquid investments with an original maturity of three months or less to be cash equivalents.
Inventory, Policy [Policy Text Block]	Inventory Inventory, comprised of marijuana oil cartridges, is valued at the lower of cost or market. The value of inventory is determined using
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Furniture Property, plant and equipment are recorded at cost, less accumulated depreciation. Cost includes the price paid to acquire the asset, and any expenditures that substantially increase an asset’s value or extends the useful life of an existing asset. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited. Maintenance and repairs are generally expensed as incurred. The estimated useful lives for property, plant and equipment categories are as follows: Building 40 years Furniture 7 years
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Revenue is recorded pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, Revenue Recognition .
Income Tax, Policy [Policy Text Block]	Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Income Taxes ASC 740 also addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is “more likely than not” that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. As of June 30, 2016 and December 31, 2015, the Company does not have a liability for any unrecognized tax benefits.
Earnings Per Share, Policy [Policy Text Block]	Earnings (Loss) Per Share Net earnings (loss) per share is calculated in accordance with FASB ASC 260, Earnings Per Share .
Fair Value Measurement, Policy [Policy Text Block]	Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurement Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements. FASB ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company did not identify any assets or liabilities that are required to be presented at fair value on a recurring basis. Non-derivative financial instruments include cash and cash equivalents, accrued expenses and the related party loan. As of June 30, 2016 and December 31, 2015

2. ACCOUNTING POLICIES (Tables)

2. ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2016
Estimated Useful Life [Member]
2. ACCOUNTING POLICIES (Tables) [Line Items]
Property, Plant and Equipment [Table Text Block]	The estimated useful lives for property, plant and equipment categories are as follows: Building 40 years Furniture 7 years

5. PROPERTY, PLANT AND EQUIPM17

5. PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2016
Table for Property, Plant and Equipment [Member]
5. PROPERTY, PLANT AND EQUIPMENT (Tables) [Line Items]
Property, Plant and Equipment [Table Text Block]	Property, plant and equipment as of June 30, 2016 and December 31, 2015 are summarized as follows: 2016 2015 (Unaudited) Building $ 40,399 $ - Furniture and fixtures 2,279 - 42,678 - Less: accumulated depreciation (543 ) - Property, plant and equipment, net $ 42,135 $ -

1. GENERAL (Details)

1. GENERAL (Details)	Oct. 31, 2013
Percent of Ownership Transfered to Uren Enterprises from Initial Owner [Member]
1. GENERAL (Details) [Line Items]
Equity Method Investment, Ownership Percentage	100.00%

2. ACCOUNTING POLICIES (D

2. ACCOUNTING POLICIES (Details) - Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2016
Building [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Life	40 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Life	7 years

4. LEASES (Details)

4. LEASES (Details) - USD ($)	Apr. 01, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Leases [Abstract]
Operating Leases, Rent Expense, Minimum Rentals	$ 3,900
Security Deposit		$ 325		$ 325
Prepaid Expense, Current	$ 4,225	3,250		3,250		$ 0
Operating Leases, Rent Expense		$ 975	$ 975	$ 0	$ 0

5. PROPERTY, PLANT AND EQUIPM21

5. PROPERTY, PLANT AND EQUIPMENT (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)ft²	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)ft²	Jun. 30, 2015USD ($)
5. PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items]
Payments to Acquire Property, Plant, and Equipment			$ 42,678	$ 0
Depreciation	$ 359	$ 0	$ 543	$ 0
Building [Member]
5. PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items]
Area of Real Estate Property (in Square Feet) | ft²	150,000		150,000
Payments to Acquire Property, Plant, and Equipment			$ 40,399

5. PROPERTY, PLANT AND EQUI

5. PROPERTY, PLANT AND EQUIPMENT (Details) - Property, Plant and Equipment - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Building	$ 40,399	$ 0
Furniture and fixtures	2,279	0
	42,678	0
Less: accumulated depreciation	(543)	0
Property, plant and equipment, net	$ 42,135	$ 0

6. ISSUANCE OF COMMON STOCK (De

6. ISSUANCE OF COMMON STOCK (Details)	6 Months Ended
	Jun. 30, 2016USD ($)shares
Stockholders' Equity Note [Abstract]
Stock Issued During Period, Shares, New Issues | shares	4,364,000
Stock Issued During Period, Value, New Issues | $	$ 187,000