THC Farmaceuticals (CBDG) 10-Q 19 Aug 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Aug. 12, 2015
Document And Entity Information
Entity Registrant Name	THC Farmaceuticals, Inc.
Entity Central Index Key	1,508,594
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,996,600
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Current Assets:
Cash	$ 5,551	$ 637
Accounts Receivable	1,442	1,754
Deposits and Prepayments	25,000	0
Total Current Assets	31,992	2,391
Property plant & equipment, net of accumulated depreciation	11,628	12,082
Intangible Assets	255,159	33,677
Long-Term Investments	837,050	0
Loans Receivable, related party	579,315	0
TOTAL ASSETS	1,715,144	48,150
Current Liabilities:
Related Party Accounts Payable	0	900
Accounts payable	16,180	5,084
Current portion of long term debt - Related Party	0	0
Total Current Liabilities	16,180	5,984
Long Term Liabilities:
Accrued Interest Related Party	577	12,480
Notes Payable to Related Parties	684,223	77,701
Total Long Term Liabilities	684,800	90,181
Total Liabilities	700,980	96,165
Stockholders' Deficit
Preferred Stock	0	0
Common Stock	14,997	8,968
Additional Paid-in Capital	1,202,847	83,875
Accumulated Deficit	(203,680)	(140,858)
Total Stockholders' Equity	1,014,164	(48,015)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 1,715,144	$ 48,150

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Statement of Financial Position [Abstract]
Property plant & equipment accumulated depreciation	$ 10,525	$ 9,472
Preferred stock, par value per share in dollars	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value in dollars	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	11,971,600	8,968,000
Common stock, shares outstanding	11,971,600	8,968,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues
Revenues from transaction fees	$ 4,501	$ 4,368	$ 13,733	$ 14,248
Total Revenues	4,501	4,368	13,733	14,248
Operating Expenses
General and Administrative	35,236	4,005	65,151	21,458
Depreciation	151	150	454	449
Service, related party	4,500	2,700	11,400	9,600
Total Operating Expense	39,887	6,855	77,010	31,507
Operating Loss	(35,387)	(2,487)	(63,277)	(17,258)
Interest Expense, finance of ATMs	0	0	0	55
Interest Expense, related party	304	1,765	575	4,763
Net Loss	$ (35,690)	$ (4,252)	$ (63,852)	$ (22,076)
Loss per Common Share - Basic & Diluted	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.01)
Weighted Average Shares Outstanding - Basic & Diluted	14,996,600	8,968,000	14,996,600	8,968,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities
Net Loss	$ (63,852)	$ (22,076)
Adjustments to reconcile net loss to net cash from operating activities:
Adjustments to Prepaid Expenses and Other Assets	(25,000)	0
Depreciation	454	449
(Increase)/Decrease in accounts receivable	312	355
Increase/(Decrease) in accounts payable	10,198	100
Loans Receivable, related party	(579,315)	0
Business Holding	(837,050)	0
Accrued interest on related party loan	(11,903)	4,764
Net Cash from Operating Activities	(1,506,156)	(16,408)
Cash flows from investing activities:
Investment in Intellectual Property	(8,532)	0
Cash Flows from Investing Activities	(8,532)	0
Cash Flows from Financing Activities
(Increase)/Decrease in intangible assets	(212,950)	0
Principal payments on Notes Payable	(77,701)	(1,839)
Proceeds from notes payable to related parties	684,223	19,600
Financed ATMs	(2)	0
Capital Stock	6,029	0
Paid in Capital	1,118,971	0
Retained Earnings	1,031	0
Net Cash from Financing Activities	1,519,601	17,761
Net Increase/(Decrease) in Cash	4,913	1,353
Beginning Cash Balance	637	579
Ending Cash Balance	5,551	1,932
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest	0	55
Cash paid during the period for taxes	0	100
Assets acquired in exchange for related party debt	$ 0	$ 0

Condensed Consolidated Financia

Condensed Consolidated Financial Statements	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Condensed Consolidated Financial Statements	NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2015, and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2014. The results of operations for the three-month period ended June 30, 2015 are not necessarily indicative of the operating results for the full year.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its condensed consolidated financial statements.

Related Party Transactions _ Se

Related Party Transactions / Service Agreement	9 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions / Service Agreement	NOTE 3 – RELATED PARTY TRANSACTIONS / SERVICE AGREEMENT The Company has a Service Agreement with Wasatch ATM (“Wasatch”), a Utah limited liability corporation owned and managed by a Company stockholder. The agreement provides for Wasatch to provide all maintenance, repair and service work along with distribution of vault cash. Since December 1, 2014, Wasatch has been compensated at a rate of $1,500 per month. The fee paid to Wasatch may be subject to change.

Related Party Transactions _ Lo

Related Party Transactions / Long-Term Debt	9 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Related Party Transactions / Long-Term Debt	NOTE 4 - RELATED PARTY TRANSACTIONS / LONG-TERM DEBT On June 30, 2015, the Company owed $104,908 in related party long-term debt and $924 related party accrued interest.

Subsequent Event

Subsequent Event	9 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	NOTE 5 - SUBSEQUENT EVENTS None.

Cost of Investments

Cost of Investments	9 Months Ended
	Jun. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]
Cost of Investments	NOTE 6 – COST OF INVESTEMENTS During the quarter ended June 30, 2015, the Company acquired 8,745,000 shares of Rocky Mountain Ayre, Inc. (RMTN) in exchange for the majority of the Company’s hempcoin assets. This transaction was recorded at fair market value based upon the market value of the RMTN shares. This was not a related party transaction. Since these investments exceed 20% and/or allow us to exercise significant influence over management, the Company is following the guidance of ASC 323 for the equity method of recording investments.

Significant Accounting Polici12

Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its condensed consolidated financial statements.

Related Party Transactions _ 13

Related Party Transactions / Service Agreement (Details Narrative)	9 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Term of service agreement	The Company has a Service Agreement with Wasatch ATM (“Wasatch”), a Utah limited liability corporation owned and managed by a Company stockholder. The agreement provides for Wasatch to provide all maintenance, repair and service work along with distribution of vault cash. The fee paid to Wasatch may be subject to change.
Related party contractual agreement	Since December 1, 2014, Wasatch has been compensated at a rate of $1,500 per month.

Related Party Transactions _ 14

Related Party Transactions / Long-Term Debt (Details Narrative) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Debt Disclosure [Abstract]
Long-term notes payable, related party	$ 684,223	$ 77,701
Long-term notes payable, related party, accrued interest	$ 924

Cost of Investment (Details Nar

Cost of Investment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2015	Jun. 30, 2015
Equity Method Investments and Joint Ventures [Abstract]
Rocky Mountain Ayre, Inc. ownership shares acquired		8,745,000
Interest acquired of Las Vegas Cannabis Info Center, Inc.	30.00%
Cash paid to acquire Las Vegas Cannabis shares	$ 25,000
Company stock issued for acquisition of Las Vegas Cannabis shares	25,000