Notis Global (NGBL) 10-Q 21 Oct 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Oct. 18, 2016
Document And Entity Information
Entity Registrant Name	Notis Global, Inc.
Entity Central Index Key	1,547,996
Document Type	10-Q
Trading Symbol	NGBL
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,196,422,273
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 21,733	$ 119,010
Marketable securities	28,390	9,410
Accounts receivable	21,968	29,999
Notes receivable	35,000	60,000
Inventory	32,300	150,823
Deposits in escrow	10,000	0
Prepaid insurance	115,849	73,755
Prepaid expenses and other current assets	323,241	83,663
Total current assets	588,481	526,660
Property and equipment, net of accumulated depreciation of $31,977 and $16,986, respectively	455,588	470,578
Land	4,945,000	4,945,000
Construction in progress	1,153,264	624,173
Deferred Costs	0	375,018
Deposits and other assets, net of reserve of $112,500 and $115,000, respectively	7,486	50,212
Total assets	7,149,819	6,991,641
Current liabilities
Accounts payables	5,670,863	3,100,804
Accrued interest payable	824,919	430,702
Accrued expenses, directors	237,854	241,410
Accrued settlement and severance expenses	653,313	962,703
Accrued legal contingencies	412,538	185,225
Other accrued expenses	174,154	275,269
Deferred revenue, current	160,822	214,343
Notes payable, net of premium of $10,000 and $16,667, respectively and discounts of $323,924 and $0, respectively	1,294,051	256,897
Related party notes payable, net of discount of $12,000 and $0, respectively	277,866	0
Convertible notes payable, net of discount of $0 and $151,414 , respectively	7,334,454	6,667,523
Convertible notes payable, directors	105,000	0
Derivative Liability	2,159,066	19,246,594
Warrant Liability	5,552	940,000
Customer deposits	931,204	931,204
Total current liabilities	20,241,656	33,452,674
Notes Payable, less current portion	4,044,206	4,288,631
Deferred revenue, less current portion	258,203	337,523
Total liabilities	24,544,065	38,078,828
Stockholders' Deficit
Preferred stock, $0.001 par value: 10,000,000 authorized; 0 issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	0	0
Common stock, $0.001 par value: 10,000,000,000 authorized, 3,008,785,640 and 240,971,727 issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	3,008,786	240,972
Additional paid-in capital	45,709,863	42,600,089
Treasury stock	(1,209,600)	(1,209,600)
Accumulated deficit	(64,728,521)	(72,524,893)
Accumulated other comprehensive loss	(174,774)	(193,755)
Total stockholders' deficit	(17,394,246)	(31,087,187)
Total liabilities and stockholders' deficit	$ 7,149,819	$ 6,991,641

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Property and equipment, depreciation (in dollars)	$ 31,977	$ 16,986
Deposits and other assets, reserve	112,500	115,000
Notes payable, premium	10,000	16,667
Notes payable, discounts	(323,924)	0
Related part net discount	12,000	0
Convertible notes payable, discount	$ 0	$ 151,414
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	10,000,000,000	10,000,000,000
Common stock, issued	3,008,785,640	240,971,727
Common stock, outstanding	3,008,785,640	240,971,727

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(LOSS) (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenue	$ 246,233	$ 59,447	$ 474,147	$ 101,195
Revenue, related party	25,192	24,918	49,836	49,562
Less: allowances and refunds	0	0	0	0
Net revenue	271,425	84,365	523,983	150,757
Cost of revenues	194,311	867,025	370,730	1,181,328
Gross profit(loss)	77,114	(782,660)	153,253	(1,030,571)
Operating expenses
Selling and marketing	41,321	159,156	223,067	338,497
General and administrative	2,483,166	5,236,018	6,233,455	9,121,614
Total operating expenses	2,524,487	5,395,174	6,456,522	9,460,111
Loss from operations	(2,447,373)	(6,177,834)	(6,303,269)	(10,490,682)
Other income (expense)
Interest expense, net	(271,825)	(90,010)	(522,050)	(93,800)
Financing Costs	(544,736)	(1,774,750)	(3,060,579)	(2,299,632)
Change in fair value of derivative liabilities	9,940,307	814,213	18,819,893	3,053,071
Change in fair value of warrant liability	441,148	0	997,121
Amortization of debt discount	(745,150)	(4,229,977)	(2,613,227)	(6,049,639)
Gain on sale of assets of subsidiary	0	0	5,498	0
Gain on sale of interest in subsidiary	331,000	0	630,571
Loss on sale of rights and assets	(178,032)		(178,032)
Other income	23,231	63,450	20,446	52,095
Total other income (expense)	8,995,943	(5,217,074)	14,099,641	(5,337,905)
Income/(loss) before provision for taxes	6,548,570	(11,394,908)	7,796,372	(15,828,587)
Provision for taxes
Net income/(loss)	$ 6,548,570	$ (11,394,908)	$ 7,796,372	$ (15,828,587)
Income/(loss) per share attributable to common stockholders
Basic (in dollars per share)	$ 0.01	$ (0.32)	$ 0.02	$ (0.47)
Diluted (in dollars per share)	$ 0	$ (0.32)	$ 0	$ (0.47)
Weighted average shares outstanding
Basic (in shares)	701,378,818	36,100,385	506,569,535	33,435,964
Diluted (in shares)	10,739,100,799	36,100,385	5,605,827,806	33,435,964
Other Comprehensive income/(loss)
Net income/(loss)	$ 6,548,570	$ (11,394,908)	$ 7,796,372	$ (15,828,587)
Unrealized gain from marketable securities	15,847	57,476	18,981	40
Comprehensive income/(loss)	$ 6,564,417	$ (11,337,432)	$ 7,815,353	$ (15,828,547)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (UNAUDITED) - 6 months ended Jun. 30, 2016 - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balances beginning at Dec. 31, 2015	$ 0	$ 240,972	$ (1,209,600)	$ 42,600,089	$ (72,524,893)	$ (193,755)	$ (31,087,187)
Balances beginning (in shares) at Dec. 31, 2015		240,971,727	(60,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Sale of common stock		$ 851		15,149			$ 5,256,064
Sale of common stock (in Shares)		851,063					69,757,748
Stock-based compensation		$ 24,232		620,291			$ 644,523
Stock-based compensation (in shares)		24,232,402
Issuance of shares to consultants		$ 93,792		2,223			96,015
Issuance of shares to consultants (in shares)		93,792,308
Conversions of convertible notes payable		$ 2,648,939		2,469,308			5,118,247
Conversions of convertible notes payable (In shares)		2,648,938,140
Issuance of warrants in connection with convertible notes payable				46,000			46,000
Reclassification of warrant liability out of equity				(62,673)			(62,673)
Warrants issued in connection with notes payable				19,476			19,476
Unrealized gain from marketable securities						18,981	18,981
Net income					7,796,372		7,796,372
Balances ending at Jun. 30, 2016	$ 0	$ 3,008,786	$ (1,269,600)	$ 45,709,863	$ (64,728,521)	$ (174,774)	$ (17,394,246)
Balances ending (in shares) at Jun. 30, 2016		3,011,794,426	(60,000)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net income/(loss)	$ 7,796,372	$ (15,828,587)
Adjustments to reconcile net loss to net cash:
Depreciation and amortization	14,991	64,691
Provisions and allowances	70,000
Loss on sale of rights and assets	178,032
Gain on sale of interest in subsidiary	(630,571)
Charges from escrow deposits		240,400
Inventory valuation reserve		354,939
Change in fair value of derivative liability	(18,819,893)	(3,053,071)
Change in fair value of warrant liability	(997,121)
Amortization of debt discount	2,613,227	6,049,639
Financing costs	3,060,579	2,299,632
Stock based compensation	644,523	4,292,209
Changes in operating assets and liabilities
Accounts receivable	8,031	8,774
Inventory	48,523	228,634
Deposits in escrow	(10,000)	20,076
Prepaid insurance	(42,094)	(338,875)
Prepaid expenses and other current assets	(196,852)	(185,916)
Deferred costs	105,172
Accounts payables	3,445,251	1,659,988
Accrued interest payable	394,217	165,657
Other accrued expenses	(101,115)	(488,135)
Accrued expenses directors	(3,556)
Accrued settlement and severance expenses	(309,390)	1,004,486
Accrued legal contingencies	227,313
Customer deposits		(311,000)
Deferred revenue	(132,841)	(51,304)
Deferred costs		(299,018)
Net cash used in operating activities	(2,637,202)	(4,166,781)
Cash flows from investing activities
Issuance of note receivable	(10,000)
Proceeds from the sale of subsidiary	35,000
Proceeds received for sale of interest held in subsidiary	630,571
Proceeds received for sale of rights and assets	91,814
Construction in Progress	(529,091)
Net cash provided by investing activities	218,294
Cash flows from financing activities
Payments on notes payable	(223,347)	(12,434)
Proceeds from issuance of notes payable	569,000
Proceeds from issuance of/(payments on) notes payable, related party	41,667	(150,000)
Payments on related party notes payable	(2,500)
Exercise of employee stock options	16,000
Proceeds from issuance of convertible notes payable, net of fees	1,815,811	4,642,300
Proceeds from issuance of convertible notes payable from directors, net	105,000	150,000
Net cash provided by financing activities	2,321,631	4,629,866
Net decrease in cash and cash equivalents	(97,277)	463,085
Cash and cash equivalents, beginning of period	119,010	101,182
Cash and cash equivalents, end of period	21,733	564,267
Supplemental disclosures of cash flow information:
Cash paid for interest	38,595	1,151
Cash paid for income tax
Non- cash investing and financing activities:
Common stock issued upon debt conversion	5,118,247	5,810,512
Common stock issued to consultants	96,015	364,728
Issuance of note payable for financing costs	700,000
Issuance of convertible debentures for accounts payable	500,000
Notes Payable issued for accounts payable	$ 250,700

BUSINESS ORGANIZATION, NATURE O

BUSINESS ORGANIZATION, NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS ORGANIZATION, NATURE OF OPERATIONS	NOTE 1 – BUSINESS ORGANIZATION, NATURE OF OPERATIONS Business Description Notis Global, Inc., (formerly Medbox, Inc.) which is incorporated in the state of Nevada (the “Company”), provides specialized services to the hemp and marijuana industry, distributes hemp product processed by contractual partners and through June 30, 2016, owned independently and through affiliates, real property and licenses that it leased and assigned or sublicensed to partner cultivators and operators in return for a percentage of revenues or profits from sales and operations (Note 5). Prior to 2016, through its consulting services, Company worked with clients who sought to enter the medical and cultivation marijuana markets in those states where approved. In 2015, the Company expanded into hemp cultivation with the acquisition of a 320 acre farm in Colorado by the Company’s wholly owned subsidiary, EWSD 1, LLC. The farm was operated by an independent farming partner until the relationship was terminated in May 2016 (Note 3). In addition, through its wholly owned subsidiary, Vaporfection International, Inc. (“VII”), the Company sold a line of vaporizer and accessory products online and through distribution partners. On March 28, 2016, the Company sold the assets of VII and exited the vaporizer and accessory business. The Company is headquartered in Los Angeles, California. Effective January 28, 2016, the Company changed its legal corporate name from Medbox, Inc., to Notis Global, Inc. The name change was effected through a parent/subsidiary short-form merger pursuant to Section 92A.180 of the Nevada Revised Statutes. Notis Global, Inc., the Company’s wholly-owned Nevada subsidiary formed solely for the purpose of the name change, was merged with and into the Company, with Notis Global, Inc. as the surviving entity. The merger had the effect of amending the Company’s Certificate of Incorporation to reflect the new legal name of the Company. There were no other changes to the Company’s Certificate of Incorporation. The Company’s Board of Directors approved the merger. Notis Global, Inc., operates the business directly and through the utilization of 5 primary operating subsidiaries, as follows: • EWSD I, LLC, a Delaware corporation that owns property in Colorado. • Pueblo Agriculture Supply and Equipment, LLC, a Delaware corporation that was established to own extraction equipment • Prescription Vending Machines, Inc., a California corporation, d/b/a Medicine Dispensing Systems in the State of California (“MDS”), which previously distributed our Medbox ™ • Vaporfection International, Inc., a Florida corporation through which we distributed our medical vaporizing products and accessories. (all the assets of which were sold during the three months ended March 31, 2016, see Note 6) • Medbox Property Investments, Inc., a California corporation specializing in real property acquisitions and leases for dispensaries and cultivation centers. This corporation currently owns no real property. • MJ Property Investments, Inc., a Washington corporation specializing in real property acquisitions and leases for dispensaries and cultivation centers in the state of Washington. • San Diego Sunrise, LLC, a California corporation to hold San Diego, California dispensary operations. (as of June 30, 2016, the Company has sold its interest in San Diego Sunrise, LLC, see Note 5) On March 3, 2014, in order to obtain the license for one of the Company’s clients, the Company registered an affiliated nonprofit corporation Allied Patient Care, Inc., in the State of Oregon. Additionally, on April 21, 2014, the Company registered an affiliated nonprofit corporation Alternative Health Cooperative, Inc. in the State of California. As a result of our sale of the Sunset and Portland dispensaries and related rights and assets, the Company no longer owns the rights to these nonprofit corporations. (Note 5) On April 15, 2016, at a special meeting of the shareholders of the Company, the shareholders of the Company holding a majority of the total shares of outstanding common stock of the Company voted to amend the Company’s Articles of Incorporation to increase the number of authorized shares of common stock of the Company from 400,000,000 to 10,000,000,000 (the “Certificate of Amendment”). The Certificate of Amendment was filed with the Nevada Secretary of State and was declared effective on April 18, 2016.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going Concern The condensed consolidated financial statements were prepared on a going concern basis. The going concern basis assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. During the six months ended June 30, 2016, the Company had net income of approximately $7.8 million, negative cash flow from operations of $2.6 million and negative working capital of $19.7 million. During the year ended December 31, 2015, the Company had a net loss of approximately $50.5 million, negative cash flow from operations of $9.6 million and negative working capital of $32.9 million. The Company will need to raise capital in order to fund its operations. The Company is also in the process of obtaining final approval on a settlement agreement in their Class action and Derivative lawsuits (Note 11) and recently received a Wells Notice from the SEC (Note 11) in connection with misstatements by prior management in the Company’s financial statements for 2012, 2013 and the first three quarters of 2014. On September 22, 2016, the Company received notice of an Event of Default and Acceleration from one of its lenders regarding a Promissory Note issued on March 14, 2016. The Company has negotiated a 30 day forbearance on acceleration of the note. The Company is unable to predict the outcome of these matters, however, a rejection of the settlement agreements or adverse action of the SEC or legal action taken by the Company’s lenders could have a material adverse effect on the financial condition, results of operations and/or cash flows of the Company and their ability to raise funds in the future. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management’s plans include: The Company has received approximately $1,266,000, net of approximately $40,000 in withholdings, in additional closings under the June 30, 2016 funding (Note 7), subsequent to June 30, 2016. Additionally, on September 30, 2016, the Company entered into a securities purchase agreement with a new investor pursuant to which two wholly-owned subsidiaries of the Company, EWSD I, LLC (“ EWSD I Pueblo Subsidiaries The Company also expects that the acquisition of EWSD I, LLC (“EWSD”) (Note 3), who owns a 320-acre farm in Pueblo, Colorado, will generate recurring revenues for the Company through farming hemp, extracting and selling CBD oil, and collecting fees from production related to extracting CBD oil for other farmers, while controlling the full production cycle to ensure consistent quality. Lastly, management is actively seeking additional financing over the next few months to fund operations. The Company will continue to execute on its business model by attempting to raise additional capital through the sales of debt or equity securities or other means. However, there is no guarantee that such financing will be available on terms acceptable to the Company, or at all. It is uncertain whether the Company can obtain financing to fund operating deficits until profitability is achieved. This need may be adversely impacted by: unavailability of financing, uncertain market conditions, the success of the crop growing season, the demand for CBD oil, the ability of the Company to obtain financing for the equipment and labor needed to cultivate hemp and extract the CBD oil,, and adverse operating results. The outcome of these matters cannot be predicted at this time. On May 24, 2016, the Company received a notice from the OTC Markets Group, Inc. (“OTC Markets”) that the Company’s bid price is below $.01 and does not meet the Standards for Continued Eligibility for OTCQB as per the OTCQB Standards. If the bid price has not closed at or above $.01 for ten consecutive trading days by November 20, 2016, the Company will be moved to the OTC Pink marketplace. Additionally, on September 9 th Principles of Consolidation The condensed consolidated financial statements include the accounts of Notis Global, Inc. and its wholly owned subsidiaries, as named in Note 1 above. All intercompany transactions have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated 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 and the disclosure of contingent liabilities at the date of the condensed consolidated financial statements as well as the reported expenses during the reporting periods. The Company’s significant estimates and assumptions include accounts receivable and note receivable collectability, inventory reserves, advances on investments, the valuation of restricted stock and warrants received from customers, the amortization and recoverability of capitalized patent costs and useful lives and recoverability of long-lived assets, the derivative liability, and income tax expense. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Although the Company believes that its estimates and assumptions are reasonable, they are based upon information available at the time the estimates and assumptions were made. Actual results could differ from these estimates. Reclassification The Company has reclassified certain prior fiscal year amounts in the accompanying condensed consolidated financial statements to be consistent with the current fiscal year presentation. Concentrations of Credit Risk The Company maintains cash balances at several financial institutions in the Los Angeles, California area and Iowa. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible. Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred. The Company incurred advertising and marketing costs of approximately $0 and $319,000 for the three months ended June 30, 2016 and 2015, respectively and approximately $0 and $749,000 for the six months ended June 30, 2016 and 2015, respectively. Fair Value of Financial Instruments Pursuant to ASC No. 825, Financial Instruments Embedded derivative - The Company’s convertible notes payable include embedded features that require bifurcation due to a reset provision and are accounted for as a separate embedded derivative (see Note 7). As of December 31, 2015, and for new issuances of convertible debentures during the fourth quarter of fiscal 2015, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on a Monte Carlo Simulation model (“MCS”). The MCS model was used to simulate the stock price of the Company from the valuation date through to the maturity date of the related debenture and to better estimate the fair value of the derivative liability due to the complex nature of the convertible debentures and embedded instruments. Management believes that the use of the MCS model compared to the black Scholes model as previously used would provide a better estimate of the fair value of these instruments. Beginning in the fourth quarter of 2015, using the MCS model, the Company valued these embedded derivatives using a “with-and-without method,” where the value of the Convertible Debentures including the embedded derivatives, is defined as the “with”, and the value of the Convertible Debentures excluding the embedded derivatives, is defined as the “without.” This method estimates the value of the embedded derivatives by observing the difference between the value of the Convertible Debentures with the embedded derivatives and the value of the Convertible Debentures without the embedded derivatives. The Company believes the “with-and-without method” results in a measurement that is more representative of the fair value of the embedded derivatives. For each simulation path, the Company used the Geometric Brownian Motion (“GBM”) model to determine future stock prices at the maturity date. The inputs utilized in the application of the GBM model included a starting stock price, an expected term of each debenture remaining from the valuation date to maturity, an estimated volatility, and a risk-free rate. For the six months ended June 30, 2016, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on an internally calculated adjustment to the MCS valuation determined at December 31, 2015. This adjustment took into consideration the changes in the assumptions, such as market value and expected volatility of the Company’s common stock, and the discount rate used in the December 31, 2015 valuation as compared to June 30, 2016. The valuation also took into consideration the term in the debentures which limits the amounts converted to not result in the investor owning more than 4.99% of the outstanding common stock of the Company, after giving effect to the converted shares. The Company believes this methodology results in a reasonable fair value of the embedded derivatives for the interim period. For the six months ended June 30, 2015, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on weighted probabilities of assumptions used in the Black Scholes pricing model. The key valuation assumptions used consists, in part, of the price of the Company’s common stock, a risk free interest rate based on the average yield of a Treasury note and expected volatility of the Company’s common stock all as of the measurement dates, and the various estimated reset exercise prices weighted by probability. Warrants The Company reexamined the determination made as of December 31, 2015 that they did not have sufficient authorized shares available for all of their outstanding warrants to be classified in equity at June 30, 2016, and concluded there still were insufficient authorized shares (Note 7). Therefore, the Company recognized a Warrant liability as of June 30, 2016. The Company estimated the fair value of the warrant liability based on a Black Scholes valuation model. The key assumptions used consist of the price of the Company’s stock, a risk free interest rate based on the average yield of a two or three year Treasury note (based on remaining term of the related warrants), and expected volatility of the Company’s common stock over the remaining life of the warrants. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Level 3 Significant unobservable inputs that cannot be corroborated by market data. The assets or liabilities’ fair value measurement within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. The following table provides a summary of the relevant assets and liabilities that are measured at fair value on a recurring basis: Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Quoted Prices for Similar Assets or Liabilities in Active Markets (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 Marketable securities $ 28,390 $ 10,825 $ — $ 17,565 Total assets $ 28,390 $ 10,825 $ — $ 17,565 Warrant liability 5,552 5,552 Derivative liability 2,159,066 — — 2,159,066 Total liabilities $ 2,164,618 $ — $ — $ 2,164,618 Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Quoted Prices for Similar Assets or Liabilities in Active Markets (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2015 Marketable securities $ 9,410 $ 5,629 $ $ 3,781 Total assets $ 9,410 $ 5,629 $ — $ 3,781 Warrant liability 940,000 940,000 Derivative liability 19,246,594 — — 19,246,594 Total liabilities $ 20,186,594 $ — $ — $ 20,186,594 The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis: For the six months ended June 30, 2016 Total Beginning balance $ 20,186,594 Initial recognition of conversion feature 4,932,162 Change in fair value of conversion feature (18,819,893 ) Reclassified to equity upon conversion (3,199,797 ) Additions to warrant liability 62,673 Change in fair value of warrant liability (997,121 ) Ending Balance $ 2,164,618 Revenue Recognition Prior to 2015, the Company entered into transactions with clients who are interested in being granted the right to have the Company engage exclusively with them in certain territories (which are described as territory rights) to obtain the necessary licenses to operate a dispensary or cultivation center for the location, and to consult in daily operations of the dispensary or cultivation center. Terms for each transaction are varied and, prior to 2015, sales arrangements typically included the delivery of our dispensing technology and dispensary location build-out and/or consultation on the location, licensing, build out and operation of a cultivation center. Prior to 2015, the Company’s standard contracts had a five year term, calling for an upfront, non-refundable consulting fee, and containing options including acquiring a Medbox dispensary machine and having the Company perform the build-outs for the location, at set prices. The up-front fees under these contracts are recognized over the five year term, and are included in deferred revenue. The Company has determined these optional purchases each constituted a separate purchasing decision, and therefore are considered a separate arrangement for revenue recognition purposes. Revenue on each of these options are evaluated for recognition when and if the customer decides to enter into the arrangement. In 2015 and the first quarter of 2016, the Company concentrated on revenue generating transactions to develop and set up dispensaries, including obtaining the conditional use permits (“CUP”) that grant the dispensary the authorization to operate, as well as cultivation centers. The Company entered into joint ventures and operating agreements, whereby separate unrelated party controls the operations of the dispensary or cultivation center, and the Company receives an agreed upon percentage of the revenue or profits of the operating entity. The revenue in the second quarter of 2016 consisted mainly of the recognition of previously deferred revenue and the sale of CBD oil. Based on these contracts, and other auxiliary agreements, our revenue model consisted of the following income streams: Consulting fee revenues and build-outs Prior to 2015, consulting fee revenues were a consistent component of our revenues and were negotiated at the time the Company entered into a contract. Consulting revenue consisted of providing ongoing consulting services over the life of the contract, to the established business in the areas of regulatory compliance, security, operations and other matters to operate the dispensary. The majority of the consulting fees from prior to 2015 arose from the upfront, non-refundable consulting fee in the Company’s standard contract, and were recognized using the straight line method over the life of the contract. Consulting fee revenue is only recognized when the following four criteria are met: 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) sales price is fixed and determinable and 4) collectability is reasonably assured. Consulting fee revenue continues to be recognized in our income statement over the life of the aforementioned contracts. Due to the uncertainties inherent in the emerging industry, the Company deferred recognition of revenue for sale of completed dispensaries with licenses until the issuance of a certificate of occupancy by the municipality. The certificate of occupancy is the final approval to open a dispensary in the customer’s community, at which time all criteria for revenue recognition, including delivery and acceptance, has been met. Additionally, at the time of the issuance of the certificate of occupancy, under the contract terms, all payments owed by the customer have been received by the Company. Similarly, recognition of revenue for the sale of a completed cultivation center is deferred until all licensing and permitting is completed and approved. Revenues from Operating Agreements Under the foregoing business model, the Company entered into operating agreements with independent parties, giving the operator the rights to control the operations of a dispensary or cultivation center during the term of the agreement. In exchange, the Company earns a fee based on a percentage of the revenue or profit of the dispensary or cultivation center. The Company has determined they are not the principal in the revenue sharing agreements and recognizes revenue under these agreements on a net basis as the fees are earned and it has been concluded that collectability is reasonably assured. Revenues from Cannabidiol oil product The Company recognizes revenue from the sale of Cannabidiol oil products ("CBD oil") upon shipment when title passes and when collectability is reasonably assured. Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery and distribution of our products and services. Under our prior business model, we only began capitalizing costs when we have obtained a license and a site for operation of a customer dispensary or cultivation center. The previously capitalized costs are charged to cost of revenue in the same period that the associated revenue is earned. In the case where it is determined that previously inventoried costs are in excess of the projected net realizable value of the sale of the licenses, then the excess cost above net realizable value is written off to cost of revenues. Cost of revenues also includes the rent expense on master leases held in the Company’s name, which are subleased to the Company’s operators. In addition, cost of revenue related to our vaporizer line of products consists of direct procurement cost of the products along with costs associated with order fulfillment, shipping, inventory storage and inventory management costs. Inventory Inventory is stated at the lower of cost or market value. Cost is determined on a cost basis that approximates the first-in, first-out (FIFO) method. Capitalized agricultural costs Pre-harvest agricultural costs, including irrigation, fertilization, seeding, laboring, and other ongoing crop and land maintenance activities, are accumulated and capitalized as inventory and cease to be accumulated when the crops reach maturity and is ready to be harvested. All costs incurred subsequent to the crops reaching maturity will be expensed as incurred. The Company has reflected the capitalized agriculture costs as a current asset as the growing cycle of the crops are estimated to be approximately six months. Basic and Diluted Net Loss Per Share Basic net income/loss per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding during the period. The Company did not consider any potential common shares in the computation of diluted loss per share for the three and six months ending June 30, 2016 and 2015, due to the net loss, as they would have an anti-dilutive effect on EPS. As of March 31, 2015, the Company had 3,000,000 shares of Series A preferred stock outstanding with par value of $0.001 that could have been converted into 15,000,000 shares of the Company’s common stock. On August 24, 2015, 2,000,000 shares of Series A preferred stock were cancelled, leaving 1,000,000 shares outstanding, which were converted into common shares on November 16, 2015. There were no shares of Series A preferred stock outstanding at June 30, 2016. Additionally, the Company had approximately 67,466,000 and 338,000 warrants to purchase common stock outstanding as of June 30, 2016 and 2015, respectively, which were not included in the computation of diluted loss per share, as based on their exercise prices they would all have an anti-dilutive effect on net loss per share. The Company also had outstanding at June 30, 2016 and 2015 approximately $7,309,000 and $4,656,000 in convertible debentures, respectively, that are convertible at the holders’ option at a conversion price of the lower of $0.75 or 51% to 60% of either the lowest trading price or the VWAP over the last 20 to 30 days prior to conversion (subject to reset upon a future dilutive financing), whose underlying shares were not included in a computation of diluted loss per share due to the net loss. Accounts Receivable and Allowance for Bad Debts The Company is subject to credit risk as it extends credit to our customers for work performed as specified in individual contracts. The Company extends credit to its customers, mostly on an unsecured basis after performing certain credit analyses. Prior to 2015, our typical terms required the customer to pay a portion of the contract price up front and the rest upon certain agreed milestones. The Company’s management periodically reviews the creditworthiness of its customers and provides for probable uncollectible amounts through a charge to operations and a credit to an allowance for doubtful accounts based on our assessment of the current status of individual accounts. Accounts still outstanding after the Company has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts. As of June 30, 2016, the Company’s management considered all accounts outstanding fully collectible. Property and Equipment Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses accelerated depreciation methods for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: Vehicles 5 years Furniture and Fixtures 3 - 5 years Office equipment 3 years Machinery 2 years Buildings 10 - 39 years Income Taxes The Company accounts for income taxes under the asset and liability method. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The components of the deferred tax assets and liabilities are classified as current and non-current based on their characteristics. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. In addition, the Company’s management performs an evaluation of all uncertain income tax positions taken or expected to be taken in the course of preparing the Company’s income tax returns to determine whether the income tax positions meet a “more likely than not” standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes. Commitments and Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. The Company accrues all legal costs expected to be incurred per event. For legal matters covered by insurance, the Company accrues all legal costs expected to be incurred per event up to the amount of the deductible. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods for public business entities beginning after December 15, 2017, including interim periods within that reporting period. The new standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that ASU 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor determined the effect of the standard on its ongoing financial reporting. On July 22, 2015, the Financial Accounting Standards Board (“FASB”) issued a new standard that requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new standard will not apply to inventories that are measured by using either the last-in, first-out (LIFO) method or the retail inventory method. The new standard will be effective for fiscal years beginning after December 15, 2016, and interim periods in fiscal years beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In April 2015, the FASB issued a new standard that requires an entity to determine whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the entity would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for. If the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The new standard will be effective for fiscal years beginning after December 15, 2015, and interim periods in fiscal years beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued “Leases (Topic 842)” (ASU 2016-02). This update amends leasing accounting requirements. The most significant change will result in the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current guidance. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018, which for the Company is December 31, 2018, the first day of its 2019 fiscal year. Upon adoption, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted, and a number of optional practical expedients may be elected to simplify the impact of adoption. The Company is currently evaluating the impact of adopting this guidance. The overall impact is that assets and liabilities arising from leases are expected to increase based on the present value of remaining estimated lease payments at the time of adoption. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation Management’s Evaluation of Subsequent Events The Company evaluates events that have occurred after the balance sheet date of June 30, 2016, through the date which the condensed consolidated financial statements were issued. Based upon the review, other than described in Note 12 – Subsequent Events, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements.

ASSET ACQUISITION

ASSET ACQUISITION	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
ASSET ACQUISITION	NOTE 3 – ASSET ACQUISITION On July 24, 2015, the Company entered into an Agreement of Purchase and Sale of Membership Interest (the “Acquisition Agreement”) with East West Secured Development, LLC (the “Seller”) to purchase 100% of the membership interest of EWSD I, LLC (“EWSD”) which has entered into an agreement with Southwest Farms, Inc. (“Southwest”) to purchase certain real property comprised of 320-acres of agricultural land in Pueblo, Colorado (the “Acquired Property” or “the Farm”). The purchase price to acquire EWSD consisted of (i) $500,000 paid by the Company as a deposit into the escrow for the Acquired Property, and (ii) the Company’s future payments to Seller of a royalty of 3% of the adjusted gross revenue, if any, from operation of the Acquired Property (including sale of any portion of or interest in the Acquired Property less any applicable expenses) for the three-year period beginning on January 1, 2016. Such royalty payments shall be payable 50% in cash and 50% in Company common stock (the “Royalty Payment”). The Company determined that the royalty payments could not be estimated at the time of acquisition, and, therefore, the contingent payments have not been recognized as part of the acquisition price. The contingent consideration will be re-measured to fair value each subsequent period until the contingency is resolved, in this case, for the three year period beginning on January 1, 2016, with any changes in fair value recognized in earnings. Per the terms of the agreement, the closing is deemed to have occurred when the Special Warranty Deed is recorded (which occurred on August 7, 2015) and all terms of the purchase agreement for the Farm have been complied with, including the Farm closing, which also took place on August 7, 2015. Therefore, the acquisition date has been determined to be August 7, 2015. There were no assets or liabilities of EWSD on the acquisition date. In connection with EWSD’s purchase of the Acquired Property, EWSD entered into a secured promissory note (the “Note”) with Southwest in the principal amount of $3,670,000 (Note 8). Interest on the outstanding principal balance of the Note shall accrue at the rate of five percent per annum. The Note shall be payable by EWSD in thirty-five payments of principal and interest, which shall be calculated based upon an amortization period of thirty years, commencing on September 1, 2015 and continuing thereafter on the first day of each calendar month through and including July 1, 2018; and one final balloon payment of all unpaid principal and accrued but unpaid interest on August 1, 2018. The Note is secured by a deed of trust, security agreement, assignment of rents and financing statement encumbering the Acquired Property. EWSD also entered into an unsecured promissory note (the “Unsecured Note”) in the principal amount of $830,000 with the Seller (Note 8), in respect of payments previously made by Seller to Southwest in connection with acquiring the Farm. Interest on the outstanding principal balance of the Unsecured Note shall accrue at the rate of six percent per annum. The Unsecured Note shall be payable by EWSD in thirty-five payments of principal and interest, which shall be calculated based upon an amortization period of thirty years, commencing on September 1, 2015 and continuing thereafter on the first day of each calendar month through and including July 1, 2018; and one final balloon payment of all unpaid principal and accrued but unpaid interest on August 1, 2018. Farming Agreement On December 18, 2015, the Company and its subsidiary EWSD I, LLC (“EWSD”), entered into a Farming Agreement (the “Farming Agreement”) with Whole Hemp Company (“Whole Hemp” now known as “Folium Biosciences”), pursuant to which Folium Biosciences would manufacture products from hemp and cannabis crops it would grow on EWSD farmland, and the Company would build greenhouses for such activities up to an aggregate size of 200,000 square feet. Folium Biosciences would pay all preapproved costs of such construction on or before September 30, 2017 as partial consideration for a revocable license to use the greenhouses and a separate 10 acre plot of EWSD farmland (the “10 Acres”). EWSD would retain ownership of the greenhouses. For the first growing season commencing October 1, 2016, the Company would receive a percentage of gross sales of all Folium Bioscience's products on a monthly basis, and the Company’s share would increase incrementally based on the extent of crops planted on EWSD farmland according to a mutually agreed schedule. In addition, the Company would receive 50% of Folium Biosciences gross profits from the farming activities on the 10 Acres. The Company planned to recognize all revenue from the Farming Agreement at the net amount received when it has been earned and determined collectable. Pursuant to the Farming Agreement, the Company also granted Folium Biosciences a warrant to purchase 4,000,000 shares of Company common stock at an exercise price of $0.50 per share, exercisable at any time within 5 years. The warrants were valued at $76,000, using a Black Scholes Merton Model, with key valuation assumptions used that consist of the price of the Company’s stock at settlement date, a risk free interest rate based on the average yield of a 5 year Treasury note and expected volatility of the Company’s common stock all as of the measurement date. The fair value of the warrants is included in deferred costs and will be recognized over the life of the Farming Agreement. Due to the termination of the Farming and Growers Distribution Agreements, as discussed below, as of June 30, 2016, this amount has been fully amortized. On March 11, 2016, the Company and EWSD entered into a First Amended and Restated Farming Agreement with Whole Hemp, amending and restating in certain respects the Farming Agreement. The First Amended and Restated Farming Agreement clarifies that EWSD, rather than the Company, would be responsible for the building of greenhouses to be utilized by Whole Hemp for growing hemp and cannabis crops pursuant to the agreement, and that EWSD would be the recipient of all payments by Whole Hemp (including all revenue sharing arrangements) under the agreement. On or about May 7, 2016, the Company determined that Folium Biosciences was in default of the Farming Agreement, principally because they abandoned their obligation to provide farming activities under the First Amended and Restated Farming Agreement. On May 13, 2016, EWSD notified Folium Biosciences of its defaults under the First Amended and Restated Farming Agreement and EWSD’s election to terminate the First Amended and Restated Farming Agreement. By its terms, the First Amended and Restated Farming Agreement may be terminated at any time by either party, if the other party was in material breach of any obligation under the First Amended and Restated Farming Agreement, which breach continued uncured for 30 days following written notice thereof. On June 1, 2016, a complaint was filed by Whole Hemp on this matter, naming Notis Global, Inc. and EWSD I, LLC, as defendants. See Whole Hemp Complaint, below. Growers’ Distributor Agreement On December 18, 2015, the Company also entered into a Growers’ Agent Agreement with Folium Biosciences, which was amended on March 11, 2016, to change the name of the agreement to Growers’ Distributor Agreement, (“Distributor Agreement”) as well clarify some terms. Pursuant to the Distributor Agreement, the Company would provide marketing, sales, and related services on behalf of Folium Biosciences in connection with the sale of its Cannabidiol oil product ("CBD oil"), from which the Company would receive a percentage of gross revenues (other than the sale of such product generated from the EWSD 10 Acres and the Folium Biosciences 40 acre plot subject to the Farming Agreement). The Growers’ Agent Agreement was effective until September 30, 2025. The Company would sell the product on behalf of Folium Biosciences on a commission basis. The Company may not act as agent of any other grower, distributor or manufacturer of the same product unless such other party agrees. On March 11, 2016, the Company and EWSD entered into a First Amended and Restated Grower’s Distributor Agreement with Whole Hemp, amending and restating in certain respects the Grower’s Agent Agreement, including by substituting EWSD as a party in-place of the Company. Because the Company believes Folium Biosciences is in default, principally because they abandoned their obligation to provide farming activities under the First Amended and Restated Farming Agreement since May 7, 2016, EWSD notified Whole Hemp on May 13, 2016 of its election to terminate the Restated Grower’s Distributor Agreement. By its terms, the Restated Grower’s Distributor Agreement could be terminated at any time by either party, if the other party was in material breach of any obligation under the Restated Grower’s Distributor Agreement, which breach continued uncured for 30 days following written notice thereof. As the Company continued to navigate the nascent world of hemp and CBD growing, cultivation, production and sales, it became clear that controlling all aspects of the business is the best strategy to ensure that the Company’s goals are met. Again, the Company is taking action now to protect the investment all the stakeholders have made in Notis Global. Whole Hemp complaint A complaint was filed by Whole Hemp Company, LLC d/b/a Folium Biosciences (“Whole Hemp”) on June 1, 2016, naming Notis Global, Inc. and EWSD I, LLC (collectively, “Notis”), as defendants in Pueblo County, CO district court. The complaint alleges five causes of action against Notis: misappropriation of trade secrets, civil theft, intentional interference with prospective business advantage, civil conspiracy, and breach of contract. All claims concern contracts between Whole Hemp and Notis for the Farming Agreement and the Distributor Agreement. The court entered an ex parte On August 12, 2016, the court ordered that all of Whole Hemp’s plants in Notis’ possession be destroyed, which occurred by August 24, 2016, at which time the temporary restraining order was dissolved and the parties will soon file a motion to dismiss the district court action. In light of the Whole Hemp plants all being destroyed per the court order, the Company has immediately expensed all Capitalized agricultural costs as of June 30, 2016, as all costs as of that date related to Whole Hemp plants. Notis commenced arbitration in Denver, CO on August 2, 2016, seeking injunctive relief and alleging breaches of the contracts between the parties. Whole Hemp filed is Answer and counterclaims on September 6, 2016, asserting similar allegations that were asserted to the court. On September 30, 2016, the arbitrator held an initial status conference and agreed to allow EWSD and Notis to file a motion to dismiss some or all of Whole Hemp’s claims by no later than October 28, 2016. The parties were also ordered to make initial disclosures of relevant documents and persons with knowledge of relevant information by October 21, 2016.

INVENTORY

INVENTORY	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
INVENTORY	NOTE 4 – INVENTORY Inventory is stated at the lower of cost or market value. Cost is determined on a standard cost basis that approximates the first-in, first-out (FIFO) method. Inventory at June 30, 2016 and December 31, 2015 consists of the following: June 30, 2016 December 31, 2015 Vaporizers and accessories $ — $ 81,934 CBD Oil 32,300 35,889 Light Bulbs for cultivation centers — 33,000 Total inventory, net $ 32,300 $ 150,823 The Company did not write down any slow moving or obsolete inventory during the six months ended June 30, 2016 and 2015.

DISPENSARIES

DISPENSARIES	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DISPENSARIES	NOTE 5 – DISPENSARIES Portland The Company held a license to operate a dispensary in Portland, Oregon, and a master lease on the property in which the dispensary is located. In April 2015, the Company entered into an Operating Agreement (“Original Agreement”) with an unrelated party (the “Operator”) in which the Operator was to manage and operate the Dispensary. The Original Agreement also included an annual Licensor Fee of 5% of the annual Gross Revenues, which would have begun after the additional fees related to the startup of the new venture had been paid in full. On December 3, 2015 the Company replaced the original operator of the Portland dispensary with another operator under a new Operator Agreement (the “Agreement”). Per the terms of the Agreement, the Dispensary was “under the exclusive supervision and control of Operator, which shall be responsible for the proper and efficient operation of the Dispensary”. The term of the Agreement includes an initial term of five years, and a renewal term for an additional five years. The renewal term is at the discretion of the Operator. There is a License fee, which is based on a flat 10% of Gross Revenues. The Company’s management has determined that under this Agreement they do not hold the controlling financial interest in the Dispensary and are not the primary beneficiary, and therefore did not consolidate the Dispensary in their consolidated financial statements. On June 30, 2016, the Company entered into an Assignment Agreement whereby they sold and assigned all of its rights in the Operating Agreement, including but not limited to the assets and liabilities the Company held in relation to the Portland Dispensary, including the license to operate a dispensary in Portland, Oregon. The assets consisted mainly of tenant improvements and other capitalized costs incurred in connection with the Portland dispensary, categorized as Deferred Costs on the Company's Balance Sheet, at a carrying value of approximately $270,000. The gross consideration paid for the assets and liabilities as stated in the agreement was $150,000, with approximately $58,000 of this amount paid to the State of Oregon for outstanding sales taxes, resulting in net proceeds of approximately $92,000, providing for a net loss of $178,000 on sale of assets. Sunrise Property Investments, LLC On December 3, 2015, the Company entered into an Operating Agreement with PSM Investment Group, LLC (“PSM”), for the governance of Sunrise Property Investments, LLC (“Sunrise”). Pursuant to the agreement, each of the two members contributed 50% of the capital of Sunrise. The Company’s contribution to the investment was the conditional use permit for the location, which was determined to have a zero cost basis, based on its carrying value in the Company’s financial statements. Sunrise acquired the property on which a dispensary will be located in San Diego on December 31, 2015. The Company has determined it should not consolidate the financial position and results of operations in its consolidated financial statements as it does not hold greater than 50% voting interest or is able to exercise influence over the operations and management in Sunrise. Instead, the Company accounts for Sunrise as an equity method investment. No income or loss has been recognized from Sunrise for the year ending December 31, 2015. Alternative Health Cooperative, Inc. (“Alternative”) is a not-for-profit corporation, managed by an employee of Notis Global, which holds the conditional user permit (“CUP”) to run the dispensary. On January 1, 2016, Sunrise entered into an Operator Agreement with Alternative for Sunrise to operate the dispensary located on the Sunrise property. The Operator Agreement engages Sunrise to “supervise, direct and control the management of the dispensary”. The Agreement also states that the operation of the dispensary shall be under the exclusive supervision and control of Sunrise which shall be responsible for the proper and efficient operation of the dispensary. The Company had determined that under the operating agreement neither it nor Alternative hold the controlling financial interest in the dispensary, but that Sunrise is the controlling entity. Therefore, the Company did not consolidate the dispensary in its consolidated financial statements. The Company incorporated a new wholly owned subsidiary, San Diego Sunrise, LLC (“San Diego Sunrise”), on February 22, 2016, in order to enter into a partnership agreement with PSM Investments to create an entity which would control the dispensary operations. Thereafter, Sunrise Dispensary LLC (“Dispensary”) was incorporated by PSM Investments and San Diego Sunrise on February 24, 2016, with each party holding a 50% ownership interest in the new entity. Immediately after which, Sunrise assigned the Operating Agreement with Alternative to Dispensary. The Company therefore indirectly held a 50% interest in the Sunrise Dispensary, through its subsidiary, San Diego Sunrise. In February 2016, the Company sold 70% of its ownership interest in San Diego Sunrise for approximately $299,000. As of June 30, 2016, the Company owned 50% of Sunrise and 30% of San Diego Sunrise. These investments are accounted for under the equity method, with the Company’s proportionate share of the income or losses of the investments reflected in the Company’s financial statements. There has been no activity, aside from the sale of the Company’s ownership interests, in these investees as of, and for the three months ended, June 30, 2016. On April 6, 2016, the Company sold its remaining 30% interest in San Diego Sunrise, as well as all of its interest in Sunrise Property Investments, LLC, the entity that owns underlying real estate related to the San Diego dispensary, for net proceeds of $331,000. Sunrise Delivery On November 24, 2015, the Company entered into a Management Agreement (“the Agreement”) with Rise Industries (“the Operator”) for a delivery service to be called Sunrise Delivery, operating under the conditional use permit awarded to the Sunrise Dispensary. The delivery service began operations on December 19, 2015 and, due to the short period between commencement of operations and the year end, the results of operations were not material for the year ended December 31, 2015. Under the Agreement, the Operator is fully and solely responsible to collect all revenue and pay all expenses arising from the delivery service, including acquisition of inventory. The Company’s name is not being used in connection with any advertising, marketing, product or delivery services provided by the Operator. The Company determined that under the Agreement they do not hold the controlling financial interest in the delivery service and the Operator is the controlling entity. Therefore, the Company did not consolidate Sunrise Delivery in their financial statements. The Company also evaluated whether the revenue earned from the delivery service should be recognized at the gross or net amount. As the Company meets the three indicators of being an agent, the Company will report the earnings or losses from the delivery service on a net basis, under the equity method of accounting. On December 9, 2015, the Company provided a $60,000 loan to Sunrise Delivery for working capital, with interest at prime and payable in one year and added an additional advance of $10,000 in the first quarter of 2016. In connection with the sale of their interests in the San Diego dispensary, the Company wrote off the loans totaling $70,000 as uncollectible at the end of the first quarter of 2016. Washington In the course of seeking licenses for new locations, the Company has to enter into real estate purchase agreements in order to secure the sites to be developed for clients’ dispensaries and cultivation centers. During the second quarter of 2014, one of the Company’s subsidiaries entered into a real estate purchase agreement for a property in the State of Washington. The purchase transaction was closed during the third quarter of 2014 for a total purchase price of $399,594, partially financed by a promissory note for $249,000. The note was due January 30, 2015 and bore interest at twelve percent (12%). The Company did not repay the note on its maturity date, and therefore began incurring interest at the default interest rate of eighteen percent (18%) per annum. On September 30, 2015, the Company, through its subsidiary MJ Property Investments, and the seller of the property entered into an amendment to the Note Payable, whereby the maturity date was extended to April 1, 2017, and the interest rate returned to twelve percent (12%) per annum (see Note 8). The Company did not make their May or June interest payments, and on July 26, 2016 they were notified they were in default on the note, which resulted in the Company incurring interest at the default interest rate of 18%, beginning in May 2016. The Company is in discussions regarding settlement of this note.

VAPORFECTION INTERNATIONAL, INC

VAPORFECTION INTERNATIONAL, INC.	6 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
VAPORFECTION INTERNATIONAL, INC.	NOTE 6 – VAPORFECTION INTERNATIONAL, INC. The Company acquired certain intangible assets with its purchase of 100% of the outstanding common stock of Vaporfection International Inc. (“VII”) on April 1, 2013. The Company accounts for intangible assets acquired in a business combination, if any, under the purchase method of accounting at their estimated fair values at the date of acquisition. Intangibles are either amortized over their estimated lives, if a definite life is determined, or are not amortized if their life is considered indefinite. On December 31, 2015, the Company re-evaluated the future value of the intangible assets and determined none of the carrying value of the intangible assets were recoverable, and its carrying value exceeded its fair value. Therefore, the Company recognized an impairment loss on Intangibles of $586,000. On December 31, 2015, the Company also performed the first step of the Goodwill impairment test, and, based on the same conclusions as above, determined there were indications of impairment of the Goodwill and they had to perform the second step of the impairment test, which compares the carrying value of the Goodwill to the implied Goodwill. The Company re-evaluated the fair value of all the associated assets of VII at December 31, 2015 and determined that there was no implied Goodwill. As there is no implied Goodwill, the impairment loss recognized was the entire carrying value of Goodwill, approximately $1,260,000. In light of these impairments, as discussed above, the Company wrote down all other assets related to the business, such as fixed assets and costs to develop the website as of December 31, 2015, resulting in a impairment of approximately $80,000. The Company also wrote down the Inventory of VII to its estimated fair value of $82,000. The Board made a decision the last week of January 2016, to sell the assets of Vaporfection and exit the vaporizer business and sell the remaining inventory and related assets during the first half of 2016. The Company analyzed if Vaporfection should be presented as a Discontinued Operation under the guidance of ASC 205, Presentation of Financial Statements, 20, Discontinued Operations, (“ASC 205-20”), and determined the decision to exit the Vaporfection business was not a strategic shift in the Company’s business, as the Board and management did not consider the strategy for the business to be built around the sale of vape machines or peripherals. On March 28, 2016, the Company sold the assets of the subsidiary for $70,000, which was payable $35,000 at the closing and with a 6% Note Payable, due September 30, 2016. The Company recognized approximately $6,000 as a gain on sale of the assets of their subsidiary for the six months ended June 30, 2016.

CONVERTIBLE NOTES PAYABLE AND D

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY	NOTE 7 – CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY July and September 2014 Debentures On July 21, 2014, as amended on September 19, 2014 and October 20, 2014, the Company entered into a Securities Purchase Agreement whereby the Company agreed to issue convertible debentures (“July 2014 Debentures”) in the aggregate principal amount of $3,500,000, in five tranches. The July 2014 Debentures bore interest at the rate of 10% per year. The debt was due July 21, 2015. Also on September 19, 2014, as amended on October 20, 2014, the Company entered into a securities purchase agreement pursuant to which it agreed to issue convertible debentures (“September 2014 Debentures”) in the aggregate principal amount of $2,500,000, in two tranches. The September 2014 Debentures bore interest at the rate of 5% per year. The debt was due September 19, 2015. Both the original July 2014 Purchase Agreement Debentures and September 2014 Debentures, prior to subsequent amendment, share the following significant terms: All amounts are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price. The Notes were initially convertible into shares of the Company’s common stock at the initial Fixed Conversion Price of $11.75 per share. The Fixed Conversion Price is subject to adjustment for stock splits, combinations or similar events. If the Company makes any subsequent equity sales (subject to certain exceptions), under which an effective price per share is lower than the Fixed Conversion Price, then the conversion price will be reduced to equal such price. The Company may make the amortization payments on the debt in cash, prompting a 30% premium or, subject to certain conditions, in shares of common stock valued at 70% of the lowest volume weighted average price of the common stock for the 20 prior trading days. The conversion feature of the July 2014 Debenture and the September 2014 Debenture meets the definition of a derivative and due to the reset provision to occur upon subsequent sales of securities at a price lower than the fixed conversion price, requires bifurcation and is accounted for as a derivative liability, with a discount created on the Debentures that would be amortized over the life of the Debentures using the effective interest rate method. The fair value of the embedded derivative is measured and recognized at fair value each subsequent reporting period and the changes in fair value are recognized in the Statement of Operations as Change in fair value of derivative liability. See Note 2 Fair value of financial instruments for additional information on the fair value and gains or losses on the embedded derivative. In connection with each of the purchase agreements, the Company entered into a registration rights agreement with the respective investors, pursuant to which the Company agreed to file a registration statement for the resale of the shares of common stock issuable upon conversion of, or payable as principal and interest on, the respective debentures, within 45 days of the initial closing date under each agreement, and to have such registration statements declared effective within 120 days of the initial closing dates of each purchase agreement. Through subsequent modifications of the July 2014 Debentures and September 2014 Debentures, the required date to file the registration statement and the effective date of the registration statement were modified, and the registration statement filed on April 9, 2015, and became effective on June 11, 2015. On January 30, 2015, the Company and certain of the Investors entered into an Amendment, Modification and Supplement to the Purchase Agreement (the “Purchase Agreement Amendment” or the “Modification”) pursuant to which the Investors agreed to purchase an additional $1,800,000 in seven Modified Closings. The Modification also eliminated the amortization payments discussed above, and provided for accrued and unpaid interest to be payable upon conversion or maturity rather than on specified payment dates. The Company was also required to open a new dispensary in Portland, Oregon through a licensed operator during the first calendar quarter of 2015 (which was later modified to April 30, 2015). The Company also had to file the Registration Statement by March 8, 2015 (later amended), and it had to be declared effective by June 15, 2015 in order to avoid default and acceleration under the Amended and Restated Debenture. As noted above, the Registration Statement was filed on April 9, 2015, and became effective June 11, 2015. As part of the January 30, 2015 Modification, the parties entered into a Modified Debenture Agreement for the $200,000 that was funded at the Closing and agreed to use the same form of Modified Debenture for each of the other foregoing Modified Closings (collectively, the “Modified Debentures”). The fixed conversion price of the Modified Debenture on January 30, 2015 was the lower of $5.00 or 51% of the lowest volume weighted average price for the 20 consecutive trading days prior to the applicable conversion date. This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the older fixed conversion price. As a result of the reset to the conversion price, at January 30, 2015, the derivative liability was re-measured to a fair value of approximately $2,690,000, using a weighted probability model as estimated by management. A decrease in fair value of the derivative liability of approximately $1,072,000 was recognized as a gain on the Statement of Consolidated Comprehensive Loss, in the three months ended March 31, 2015. The additional Modified Debentures under the July 2014 Debentures as of closing dates had a fixed conversion price of the lower of $1.83 or 51% of the VWAP for the last 20 days prior to the conversion. This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the previous $5 fixed conversion price. This reset resulted in the derivative liability being revalued at February 27, 2015, using a weighted probability model for a fair value of $2,720,000. The additional Modified Debentures under the September 2014 Debentures closed on January 29, 2015 in the amount of $100,000 and February 24, 2015 in the amount of $100,000. These Modified Debentures have a fixed conversion price of the lower of $5.00 or 51% of the VWAP for the last 20 days prior to the conversion. This new fixed conversion price was a dilutive issuance to the outstanding September 2014 Debentures, thereby triggering a reset of the previous $5.00 fixed conversion price. The resulting reset and re-measurement of the fair value of the derivative liability is included in the amounts of the change to fair value discussed above. The April 17, 2015 closing under the July 2014 Modified Debentures contained a fixed conversion price of the lower of $0.88 or 51% of the VWAP for the last 40 days prior to the conversion. This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the previous $1.83 fixed conversion price. This reset resulted in the derivative liability being revalued at April 17, 2015, using a weighted probability model for a fair value of $3,287,000, for a increase in fair value of approximately $1,764,000, recognized as a loss on the Statement of Consolidated Comprehensive Loss. There was additional funding of $1,300,000 of the September 2014 Modified Debentures under the closing schedule detailed above. These Modified Debentures all have a fixed conversion price of the lower of $0.88 or 51% of the VWAP for the last 40 days prior to the conversion. The Directors’ convertible debentures required under the March 23, 2015 Modification, issued in the first quarter of 2015, total $150,000, and have a three year term and an interest rate of 8% per annum. They were originally convertible at a fixed conversion price of the lower of $1.83 or 51% of the VWAP for the last 20 days prior to conversion. As with the Modified Debentures, the debentures included a reset provision, which resulted in the conversion feature being bifurcated and accounted for as a derivative liability, with an initial fair value of $132,175. The director’s convertible debentures also reset on February 27, 2015 and April 17, 2015, with the changes to fair value included in the amounts disclosed above. The Directors debentures were all converted during the third quarter of 2015. The Modified Debentures also included a warrant instrument granting the Investor the right to purchase shares of common stock of the Company equal to the principal amount of the applicable Modified Debenture divided by a price equal to 120% of the last reported closing price of the common stock on the applicable closing date of the Modified Debenture, with a three year term. August 2015 Debentures On August 14, 2015, the Company entered into a Securities Purchase Agreement whereby they agreed to issue convertible debentures in the aggregate principal amount of up to $3,979,877 to certain Investors. The initial closing in the aggregate principal amount of $650,000 occurred on August 14, 2015. An additional 11 payments were made in the total amount of $2,434,143 through December 31, 2015. The August 2015 Debentures bear interest at the rate of 10% per year. During the first quarter of 2016, an additional approximately $895,000 was funded. On August 20, 2015, the Company also entered into a Securities Purchase Agreement with another Investor in the aggregate principal amount of up to $1,500,000 (collectively the “August 2015 Debentures”), which was amended on September 19, 2015, to increase the principal by an additional $200,000. The August 2015 Debentures contain the following significant terms: The debentures all mature in one year from the date of each individual closing. All amounts are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a fixed conversion price. The conversion price is the lower of (a) $0.75, or (b) a 49% discount to the lowest daily VWAP (as reported by Bloomberg) of the Common Stock during the 30 trading days prior to the conversion date. The Fixed Conversion Price is subject to adjustment for stock splits, combinations or similar events. If the Company makes any subsequent equity sales (subject to certain exceptions), under which an effective price per share is lower than the Fixed Conversion Price, then the conversion price will be reset to equal such price. The Company may prepay the Debentures in cash, prompting a 30% premium or, subject to certain conditions, in shares of common stock valued at 51% of the lowest volume weighted average price of the common stock of the Company for the 30 prior trading days. The premium will be recognized at such time as the Company may choose to prepay the Debentures. In connection with each of the purchase agreements, the Company entered into a registration rights agreement with the respective Investors pursuant to which the Company agreed to file a registration statement for the resale of the shares of common stock issuable upon conversion of, or payable as principal and interest on, the respective debentures, within 45 days of the initial closing date under each agreement, and to have such registration statements declared effective within 120 days of the initial closing dates of each purchase agreement. The pre-effective registration statement was filed with the SEC on October 16, 2015. The conversion feature of the August 2015 Debenture meets the definition of a derivative and due to the reset provision to occur upon subsequent sales of securities at a price lower than the fixed conversion price, requires bifurcation and is accounted for as a derivative liability. The derivatives related to all closings on the August 2015 debentures were initially recognized at estimated fair values of approximately $11,205,000 and created a discount on the Debentures that will be amortized over the life of the Debentures using the effective interest rate method. The fair value of the embedded derivative is measured and recognized at fair value each subsequent reporting period and the changes in fair value are recognized in the Statement of Comprehensive Income (Loss) as Change in fair value of derivative liability. For the year ended December 31, 2014, and the interim periods through September 30, 2015, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on weighted probabilities of assumptions used in the Black Scholes pricing model. The key valuation assumptions used consists, in part, of the price of the Company’s common stock, ranging from $8.81 down to $0.05; a risk free interest rate ranging from 0.41% to 0.12% and expected volatility of the Company’s common stock, ranging from 196.78% to 106.38%, and the various estimated reset exercise prices weighted by probability. As of December 31, 2015, and for new issuances of convertible debentures during the fourth quarter of fiscal 2015, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on a Monte Carlo Simulation model (“MCS”). The MCS model was used to simulate the stock price of the Company from the valuation date through to the maturity date of the related debenture and to better estimate the fair value of the derivative liability due to the complex nature of the convertible debentures and embedded instruments. Management believes that the use of the MCS model compared to the black Scholes model as previously used would provide a better estimate of the fair value of these instruments. Beginning in the fourth quarter of 2015, using the MCS model, the Company valued these embedded derivatives using a “with-and-without method,” where the value of the Convertible Debentures including the embedded derivatives, is defined as the “with”, and the value of the Convertible Debentures excluding the embedded derivatives, is defined as the “without.” This method estimates the value of the embedded derivatives by observing the difference between the value of the Convertible Debentures with the embedded derivatives and the value of the Convertible Debentures without the embedded derivatives. The Company believes the “with-and-without method” results in a measurement that is more representative of the fair value of the embedded derivatives. For each simulation path, the Company used the Geometric Brownian Motion (“GBM”) model to determine future stock prices at the maturity date. The inputs utilized in the application of the GBM model included a starting stock price ranging from $0.03 to $0.10, an expected term of each debenture remaining from the valuation date to maturity ranging from .24 years to 1.04 years, an estimated volatility of ranging from 193% to 219%, and a risk-free rate ranging from .20% to .70%. See Note 2 Fair value of financial instruments for additional information on the fair value and gains or losses on the embedded derivative. For the six months ended June 30, 2016, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on an internally calculated adjustment to the MCS valuation determined at December 31, 2015. This adjustment took into consideration the changes in the assumptions, such as market value and expected volatility of the Company’s common stock, and the discount rate used in the December 31, 2015 valuation as compared to June 30, 2016. The valuation also took into consideration the term in the debentures which limits the amounts converted to not result in the investor owning more than 4.99% of the outstanding common stock of the Company, after giving effect to the converted shares. The Company believes this methodology results in a reasonable fair value of the embedded derivatives for the interim period. Entry into Security Agreement In connection with entry into the August 20 Purchase Agreement and August 14 Purchase Agreement, the Investors and the Company entered into a Security Agreement, dated August 21, 2015, securing the amounts underlying the August 14 Debentures and the August 20 Debentures. The Security Agreement grants a security interest in all assets and personal property of the Company, subject to certain excluded real property assets. The security interests under the Security Agreement terminated following the date that the registration statement registering the shares underlying the Convertible Debentures was declared effective, which occurred on December 15, 2015. July 2015 Debenture On July 10, 2015, another accredited Investor and affiliate of the July 2014 Investor (the “July 2015 Investor”) purchased a separate Convertible Debenture (the “July 2015 Debenture”) in the aggregate principal amount of $500,000, that closed in five weekly tranches between July 10 and August 15, 2015. The July 2015 Debenture is in substantially the same form as the August 14 Debentures, and does not include issuance of warrants. As such, the conversion feature was also determined to require bifurcation and derivative accounting. All amounts related to the July 2015 derivative liability are included in amounts disclosed above for the August 2015 debentures. On October 14, 2015, the August 2015 Investor assigned the right to purchase August 2015 Debentures in the principal amount of $100,000 to the July 2015 Investor and the July 2015 Investor purchased such August 2015 Debentures on the same day. October 2015 Debentures On October 14, 2015, the Company issued seven debentures in the aggregate of $2,000,000 to a service provider (the “October 2015 Investor”) as consideration for services previously rendered to the Company on the same terms as the August 14 Debentures and August 14 Purchase Agreement (the “October 2015 Debentures” and “October 2015 Purchase Agreement”, respectively) except that the October 2015 Purchase Agreement does not provide for registration rights to the October 2015 Investor with regard to the shares underlying the October 2015 Debentures. The service provider has agreed with the Company not to convert the October 2015 Debentures for any amount in excess of fees payable for services previously rendered to the Company at the time of conversion. To the extent that the sale of shares underlying the October 2015 Debentures do not satisfy outstanding amounts payable to the service provider, such amounts will remain payable to the service provider by the Company. In the three months ending June 30, 2016, funding closed on $425,000 of the October 2015 debentures. December 28, 2015 Amendment and Restriction Agreement On December 28, 2015, the Company, the August 14 Investor and the August 20 Investor entered into a Debenture Amendment and Restriction Agreement (the “Agreement”), pursuant to which (1) the August 14 Investor agreed to be restricted from converting any of its convertible debentures into common stock until February 21, 2016, subject to certain limitations set forth below (the “Restriction”) and (2) the August 14 Investor agreed to assign, as of the effective date of the Agreement approximately $390,000 of its convertible debentures to the August 20 Investor in exchange for the amount of principal outstanding under such debenture plus a premium in cash from the August 20 Investor (the “Assigned Debentures”). The accrued and unpaid interest under the Assigned Debentures remained payable by the Company to the August 14 Investor. The August 14 Investor also agreed to amend the terms of each of its debentures (other than the debentures that were assigned) such that the debenture is convertible at a 40% discount to the lowest trading price of the Company’s common stock during the 30 consecutive prior trading days rather than at a 49% discount to the lowest ‘volume weighted-average price’ during the 30 consecutive prior trading days. This was not considered to be a modification of the terms of the conversion feature, requiring evaluation of the debenture to determine if it was modified or extinguished, as the conversion feature is separately accounted for as a derivative, and is outside of the scope of the guidance on debt modifications. The change in the conversion price will be reflected in its fair value under derivative accounting. As consideration for entering into the Agreement, the August 14 Investor was issued a promissory note from the Company in the principal amount of $700,000 (the “Promissory Note”). The Promissory Note has a term of ten months, accrues interest at a rate of 10% per annum, and outstanding principal and accrued interest under the Promissory Note may be pre-paid at any time by the Company without penalty. The Promissory Note is not convertible other than in an event of default, in which case it is convertible on the terms of the other debentures held by the August 14 Investor. This conversion feature was considered to be a contingent conversion feature, and therefore the conversion feature would not be bifurcated and accounted for as a derivative, as are the conversion features of all other debentures, until such time as and if the Company is in an event of default. The Promissory Note is being accounted for as a finance expense of the December 28, 2015 transaction, similar to a debt discount, and will be amortized to financing expense over the ten month life of the note (Note 8). The August 20 Investor shall also acquire from the August 14 Investor an additional $650,000 of the convertible debentures held by the August 14 Investor (1) upon the declaration of effectiveness of a post-effective amendment (the “POSAM”) to the Company’s Registration Statement on Form S-1 originally filed by the Company on October 16, 2015 and declared effective by the Securities and Exchange Commission on December 15, 2015 (the “Registration Statement”) reflecting the terms of the Agreement, or (2) at the option of the August 20 Investor (the “Option”), at an earlier time. The August 14 Investor exercised the Option on January 25, 2016. The POSAM was declared effective on February 3, 2016. At March 31, 2016, the Company had not paid the principal due of $9,600 on a convertible debenture which was due on March 27, 2016. The Company was in default and obtained a waiver from the lender on May 11, 2016 waiving all rights relating to the nonpayment and extending the maturity date of the convertible debenture to August 1, 2016. In the same waiver agreement, the terms of five additional convertible debentures with maturity dates in May and June of 2016 totaling $122,084 were also extended to a maturity date of August 1, 2016. At June 30, 2016, the Company had not paid the total principal due of $225,700 on convertible debenture which was due on July 10, 2016. The Company was in default and obtained a waiver from the lender on August 3, 2016 waiving all rights relating to the nonpayment and extending the maturity date of the convertible debenture to October 31, 2016. In the same waiver agreement, the terms of thirteen additional convertible debentures with maturity dates in July and August of 2016 totaling approximately $1,260,000 were also extended to a maturity date of October 31, 2016. (Note 12) February 10, 2016 Financing On February 10, 2016, the Company entered into a Note Purchase Agreement (the “Purchase Agreement”) with an accredited investor (the “Investor”), pursuant to which the Company agreed to sell, and the Investor agreed to purchase, a promissory note (the “Note”) in the aggregate principal amount of $275,000. The closing occurred on February 11, 2016. The Investor deducted a commitment fee in the amount of $25,000 at the closing. The Note bears interest at the rate of 10% per year and matures on October 31, 2016. The Company may prepay all or any part of the outstanding balance of the Note at any time without penalty. In the event that the Company or any of its subsidiaries becomes subject to bankruptcy, insolvency, liquidation, or similar proceedings or takes certain related corporate actions, all outstanding principal and accrued interest under the Note will immediately and automatically become due and payable. In addition, the Note identifies certain other events of default, the occurrence of which would entitle the Investor to declare the outstanding principal and accrued interest immediately due and payable or to convert the Note, in whole or in part, into shares of the Company’s common stock at a conversion price that is the lower of (a) $0.75, or (b) a 51% discount to the lowest daily volume weighted average price of the Company’s common stock during the 20 trading days prior to the conversion date. This conversion feature was considered to be a contingent conversion feature, and therefore the conversion feature would not be bifurcated and accounted for as a derivative, as are the conversion features of all other debentures, until such time as and if the Company is in an event of default. The balance of this note is included with Notes Payable on the accompanying condensed consolidated Balance Sheet (Note 8). February 18, 2016 Financing On February 18, 2016, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with an accredited investor (the “Investor”) pursuant to which the Company agreed to sell, and the Investor agreed to purchase, convertible debentures (the “Debentures”) in the aggregate principal amount of $420,000, in two tranches. The initial closing in the aggregate principal amount of $210,000 occurred on February 18, 2016. The second closing in the amount of $210,000 occurred on March 18, 2016 ($125,000) and March 22, 2016 ($85,000). The Debentures bear interest at the rate of 10% per year and mature after one year and are subject to a financing fee of 5%. Each of the Debentures are convertible at the option of the holders into shares of the common stock of the Company at a conversion price that is lower of (a) $0.75, or (b) a 40% discount to the lowest traded price of the common stock of the Company during the 30 trading days prior to the conversion date. The Company may prepay the Debentures in cash, prompting a 30% premium. The conversion feature of the Debentures meets the definition of a derivative and due to the reset provision to occur upon subsequent sales of securities at a price lower than the fixed conversion price, requires bifurcation and is accounted for as a derivative liability. March 15 2016 Financing The Company entered into a Note Purchase Agreement, effective as of March 14, 2016 (the “Effective Date”), with an Investor (the “March 15 Investor”) pursuant to which the March 15 Investor purchased and the Company issued and sold a promissory note in the original principal amount of $140,000 (the “First Promissory Note”), which matures on September 14, 2016.. Upon satisfaction of certain conditions set forth in the Note Purchase Agreement, the Company will issue and sell a second promissory note in the original principal amount of $137,500 (the “Second Promissory Note”). Each Promissory Note matures six (6) months after the date of its issuance. The First Promissory Note carries an original issue discount of $12,500 (the “First Promissory Note OID”). In addition, Company agreed to pay $5,000 towards the March 15 Investor’s legal fees incurred in connection with the purchase and sale of the First Promissory Note and the Second Promissory Note, $2,500 of which was paid to the March 15 Investor prior to the Effective Date and $2,500 of which amount (the “Carried Transaction Expense Amount”) is included in the initial principal balance of the First Promissory Note. The purchase price of the First Promissory Note was $125,000, computed as follows: $140,000 initial principal balance, less the First Promissory Note OID, less the Carried Transaction Expense Amount. The Second Promissory Note, if issued, also carries an original issue discount of $12,500 (the “Second Promissory Note OID”). The purchase price of the Second Promissory Note shall be $125,000, computed as follows: $137,500 initial principal balance, less the Second Promissory Note OID (the “Second Promissory Note Purchase Price”). On March 15, 2016, the Company issued and sold the First Promissory Note to the March 15 Investor. Upon satisfaction of the terms (the “Mandatory Second Promissory Note Conditions”), the Company shall issue and sell the Second Promissory Note to the March 15 Investor. The Mandatory Second Promissory Note Conditions means that each of the following conditions has been satisfied on or before the date that is ninety (90) days from the Effective Date: (i) the Share Reserve (as defined in the First Promissory Note) for the First Promissory Note shall have been established; (ii) no Event of Default (as defined in the First Promissory Note) shall have occurred under the First Promissory Note; (iii) the median daily dollar volume of the Common Stock on its principal market for the nineteen (19) Trading Days (as defined in the First Promissory Note) immediately preceding the Share Reserve Date is greater than $75,000 per Trading Day; and (iv) the Company has notified Investor in writing that it has elected to require that Investor pay the Second Promissory Note Purchase Price. If the Mandatory Second Promissory Note Conditions are not satisfied as of the date that is ninety (90) days from the Effective Date, then the March 15 Investor shall not be obligated to pay the Second Promissory Note Purchase Price and the Second Promissory Note shall not be considered a valid, binding, or enforceable obligation of the Company, and, thereafter, the Second Promissory Note shall only be issued and the Second Promissory Note Purchase Price will only be payable upon the mutual written agreement of Company and the March 15 Investor. The First Promissory Note and/or the Second Promissory Note may be prepaid at any time by the Company in the sole discretion of the Company at a 25% premium to the outstanding balance under the applicable Promissory Note. In the event that the First Promissory Note and/or the Second Promissory Note is not paid in full on or before maturity by the Company, then the March 15 Investor shall have the right at any time thereafter until such time as the First Promissory Note and/or the Second Promissory Note is paid in full, at the March 15 Investor’s election, to convert (each instance of conversion being a “Conversion”) all or any part of the outstanding balance into shares (“Conversion Shares”) of fully paid and non-assessable Common Stock of the Company as per the following conversion formula: the number of Conversion Shares equals the amount being converted divided by 50% multiplied by the lowest daily volume weighted average price of the Common Stock in the twenty (20) Trading Days immediately preceding the applicable Conversion. At any time and from time to time after the March 15 Investor becoming aware of the occurrence of any event of default, the March 15 Investor may accelerate the First Promissory Note and/or the Second Promissory by written notice to the Company, with the outstanding balance of the respective Note becoming immediately due and payable in cash at 125% of the outstanding balance. This conversion feature was considered to be a contingent conversion feature, and therefore the conversion feature would not be bifurcated and accounted for as a derivative, as are the conversion features of all other debentures, until such time as and if the Company is in an event of default. The balance of the First Promissory Note is included with Notes Payable on the accompanying condensed consolidated Balance Sheet (Note 8). The Company is currently in default on the March 15 note (Note 12). April 2016 Financing On April 13, 2016, the Company entered into a note purchase agreement (the “Purchase Agreement”) with an accredited investor (the “Investor”) pursuant to which the Company agreed to sell, and the Investor agreed to purchase, a convertible promissory note (the “Note”) in the aggregate principal amount of $225,000. The Note bears interest at the rate of 5% per year and matures on July 13, 2016. The Note is convertible at any time, in whole or in part, at the option of the holders into shares of the common stock of the Company at a conversion price that is the lower of (a) $0.75, or (b) a 49% discount to the lowest traded price of the common stoc

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 8 – NOTES PAYABLE Notes payable consists of: June 30, December 31, Southwest Farms (Note 3) $ 3,617,548 $ 3,645,163 East West Secured Development (Note 3) 515,633 675,093 Washington Property (Note 6) 199,000 208,605 Investment funds (Note 8) 1,257,500 — Financial Freedom, LLC 62,500 — 5,652,181 4,528,861 Less discounts (323,924 ) — Plus premium 10,000 16,667 5,338,257 4,545,528 Less current maturities 1,294,051 256,897 $ 4,044,206 $ 4,288,631 Maturities on Notes Payable are as follows: Years ending: December 31, 2016 $ 1,045,988 December 31, 2017 287,643 December 31, 2018 4,004,626 $ 5,338,257 The Company entered into a Securities Purchase Agreement dated May 20, 2016 (the “SPA”) with an investor (the “Investor”) pursuant to which it issued to the Investor a Convertible Promissory Note (the “Note”) in the principal amount of $1,242,500 that matures on July 20, 2017 and earns interest at the rate of 10% per annum. The Note carries an original issuance discount of $112,500 and the Company agreed to pay $5,000 in legal fees for the Investor. In exchange for the Note, the Investor (1) paid to the Company $125,000 less $6,250 in broker fees paid by the Company, and (2) issued to the Company eight (8) secured promissory notes in the principal amount of $125,000 each (each, a “Investor Note” and collectively the “Investor Notes”). This amount is included with Investment funds in schedule above. The Company must begin repaying principal and interest on funded portions of the Note beginning 180 days after the date of the Note, and each month thereafter for a total period of 10 months, in fixed amounts of $124,250 per month. The Company has a right to prepay the total outstanding balance of the Note at any time (so long as it is not in default under the Note) in cash equal to 125% of the outstanding balance of the Note. Furthermore, for a period of sixty days from the date of entry into the Note, a third party has the right to prepay the outstanding balance of the Note in cash equal to 130% of the outstanding balance of the Note. The notes become convertible into commons shares of the Company's stock upon an Event of Default, as set forth in the terms of the SPA. The conversion price shall be 50% of the lowest closing bid price during the twenty trading days immediately preceding the conversion. This conversion feature was considered to be a contingent conversion feature, and therefore the conversion feature would not be bifurcated and accounted for as a derivative, until such time as and if the Company is in an event of default. In connection with any Event of Default by the Company, the Investor may accelerate the Note with the outstanding balance becoming immediately due and payable in cash at 125% of the outstanding balance. Furthermore, the Investor may elect to increase the outstanding balance by applying a 125% “default effect” (up to two applications for two defaults) without accelerating the outstanding balance, in which event the outstanding balance shall be increased as of the date of the occurrence of the applicable event of default. Furthermore, following the occurrence of an event of default interest shall accrue on the outstanding balance beginning on the date the applicable event of default occurring at an interest rate equal to the lesser of 22% per annum or the maximum rate permitted under applicable law. In connection with entry into the SPA, the Company agreed to reserve 300% of the shares into which the Note can be converted for the Investor. The Investor may, with the Company’s consent, prepay, without penalty, all or any portion of the outstanding balance of the Investor Notes at any time prior to the Investor Note Maturity Date. Notwithstanding the foregoing, beginning on the date that is 90 days from the date of the issuance of the Note, and then on the 6-month anniversary of the date of entry into the Note and monthly thereafter for a total of eight payments, the Investor shall be obligated to prepay one of the eight Investor Notes at each such occurrence, if at the time of such occurrence: (a) no event of default under the Note has occurred; (b) the average daily dollar volume of the Common Stock on its principal market for the twenty (20) trading days is greater than $55,000.00; (c) the market capitalization of the Common Stock on the date of the occurrence is greater than $3,000,000.00; and (d) the share reserve described below remains in place at the required thresholds. The Company also made extensive representations and warranties relating to the transaction. To date, no amounts have been received by the Company against the eight Investor Notes. On April 6, 2016, the Company entered into a Promissory note for $85,000, which was issued with a $2,500 premium, and bears interest at 0.0%. The proceeds were to be used by the Farm, to pay for water usage. Additionally, the Company issued 600,000 of the Company's restricted common stock to the holder. The shares were valued at the market value of the common shares of the Company on the date of the issuance of the note. The payment terms called for $40,000 to be paid on or before April 21, 2016, $20,000 to be paid on or before May 6, 2016, and the final $27,500 to also be paid on or before May 6, 2016. The Note also allowed for the extension of the maturity date by 30 days, at the Company's request, in exchange for an additional $2,500 payment. The note and the $2,500 extension payment were paid during July, 2016. Notes payable, related parties, consists of: June 30, December 31, Directors Notes $ 289,866 $ — Less discounts (12,000 ) 277,866 Less current maturities (277,866 ) $ — $ Maturities on Notes payable, related parties, are as follows: Years ending: December 31, 2016 $ 39,166 December 31, 2017 250,700 $ 289,866 On June 8, 2016, the Company issued Promissory Notes (the "Directors Notes"), in the amount of $250,700, to all the directors in exchange for various amounts outstanding for fees and reimbursements incurred during December 2015 and April 2016. The Notes have a term of six months and bear interest at 8% until the note is paid in full. The Directors Notes were each issued with a warrant for fifty percent of the face amount of the note, with an exercise price of $0.01 and exercisable for three years. The Company estimated the fair value of the warrants based on a Black Scholes valuation model. The warrants were determined to have a fair value of $12,000, calculated with the Black Sholes Merton model, with the following key valuation assumptions: estimated term of three years, annual risk-free rate of .93%, and annualized expected volatility of 172%. The $12,000 fair value was recognized as a debt discount and is being amortized over the six month term of the Directors Notes.

SHARE BASED AWARDS, RESTRICTED

SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSU)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSUs)	NOTE 9 – SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (“RSUs”) The Board resolved that, beginning with the fourth calendar quarter of 2015, the Company shall pay each member of the Company’s Board of Directors, who is not also an employee of the Company, for each calendar quarter during which such member continues to serve on the Board compensation in the amount of $15,000 in cash and 325,000 shares of Company common stock. The 975,000 shares issued to all the directors for the three months ended March 31, 2016 were valued at the market price of the Company’s common stock on March 31, 2016, for total compensation expense of $9,750. On March 31, 2016, the Board awarded the Chairman a cash bonus of approximately $89,000 and, 2,230,000 shares of Company common stock for his service in the three months ended March 31, 2016, The Board authorized grants of approximately 2,761,000 shares of the Company common stock during the second quarter of 2016, which were valued at the market price of the Company's common stock on date of grant, for total compensation expense of approximately $13,000. On June 8, 2016, the Board also awarded the Chairman a cash bonus of approximately $89,200 and 6,027,000 shares of Company common stock, valued at approximately $8,000. The Board also voted on June 8, 2016, to increase the shares available for grant under the 2014 Equity Incentive Plan to 125,000,000. The Company intends to file a Form S-8 regarding the increased shares available for grant now that the increase in authorized shares has been approved. A summary of the activity related to RSUs for the three months ended June 30, 2016 and 2015 is presented below: Restricted stock units (RSU’s) Total shares Grant date fair RSU’s non-vested at January 1, 2016 152,823 $0.51 - $1.88 RSU’s granted 14,285,714 $0.007 RSU’s vested (125,431 ) $0.51- $1.88 RSU’s forfeited — $— RSU’s non-vested June 30, 2016 14,313,106 $0.51 - $1.88 Restricted stock units (RSU’s) Total shares Grant date fair RSU’s non-vested at January 1, 2015 199,584 $10.70 RSU’s granted 177,633 $1.88 - $6.70 RSU’s vested (135,135 ) $1.88 - $6.70 RSU’s forfeited — $— RSU’s non-vested June 30, 2015 242,082 $1.88 - $11.00 A summary of the expense related to restricted stock, RSUs and stock option awards for the three and six months ended June 30, 2016 is presented below: Three months ended Six months ended Restricted Stock $ — $ 390,000 RSU’s 38,144 192,192 Stock options — — Common stock 30,281 62,331 Total $ 68,425 $ 644,523

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 10 – RELATED PARTY TRANSACTIONS During the first quarter of 2015, the Company issued two convertible notes to one of its directors in the aggregate principal amount of $100,000 and one convertible note to another of its director in the aggregate principal amount of $50,000. These notes were all converted to common stock during the third quarter of 2015. During the first quarter of 2016, the Company issued three convertible notes to one of its directors in the aggregate principal amount of $75,000 and one convertible note to another of its director in the aggregate principal amount of $25,000, plus a convertible note to each of its other two directors, in the amount of $2,500 each. See Note 7 for a description of these notes. In the second quarter of 2016, the Company issued promissory notes to all of the directors, in exchange for past unpaid cash bonuses, board compensation and expenses. See Note 8 for a description of these notes

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 – COMMITMENTS AND CONTINGENCIES The Company previously leased property for its day to day operations and facilities for possible retail dispensary locations and cultivation locations as part of the process of applying for retail dispensary and cultivation licenses. Entry into Agreement to Acquire Real Property On June 17, 2016, EWSD I, LLC, a wholly owned subsidiary of the Company, entered into a Contract to Buy and Sell Real Estate (the “Acquisition Agreement”) with Tammy J. Sciumbato and Donnie J. Sciumbato (collectively, the “Sellers”) to purchase certain real property comprised of 116-acres of agricultural land, a barn and a farmhouse in Pueblo, Colorado (the “Property”). The closing of the Acquisition Agreement is scheduled to occur on or about September 22, 2016 (the “Closing”), with possession of the land and barn occurring twelve (12) days after the Closing and possession of the farm house occurring on or before January 1, 2017. The Sellers will were to rent back the farm house from the Company until January 1, 2017. The purchase price to acquire the Property is $650,000, including $10,000 paid by the Company as a deposit into the escrow for the Property. The $10,000 is recognized as Deposits in Escrow on the accompanying Condensed Consolidated Balance Sheet. Office Leases On August 1, 2011, the Company entered into a lease agreement for office space located in West Hollywood, California through June 30, 2017 at a current monthly rate of $14,828 per month. The Company moved to new offices in Los Angeles, CA in April 2015. The sublease on the new office has a term of 18 months with monthly rent of $7,486. The landlord for the West Hollywood space has filed a suit against the Company and independent guarantors on the West Hollywood lease. The Company has expensed all lease payments due under the West Hollywood lease. The Company’s liability for the West Hollywood lease will be adjusted, if required, upon settlement of the suit with the landlord. On September 8, 2016, the court approved the landlord's application for writ of attachment in the State of California in the amount of $374,402 against Prescription Vending Machines, Inc. (“PVM”). A trial date has been set for May 2017 (Note 12). Total rent expense under operating leases for the three months ended June 30, 2016 and 2015 was $23,000 and $66,000, respectively. Rent expense for the six months ended June 30, 2016 and 2015 was approximately $376,000 and $110,000, respectively. Retail/Cultivation facility leases The Company’s business model of acquiring retail dispensary and cultivation licenses often requires us to acquire real estate either through lease arrangements or through purchase agreements in order to secure a possible license. Deposits in escrow consist of amounts paid to open escrow accounts for the purchase of multiple properties to be used to develop retail dispensary or product cultivation facilities. The following table is a summary of our material contractual lease commitments as of June 30, 2016: Year Ending Office Rent Retail/Cultivation Facility Lease 2016 $ 22,458 $ 44,400 2017 — 88,800 2018 — 88,800 2019 — 29,600 Total $ 22,458 $ 251,600 Consulting Agreements On December 7, 2015, the Company entered into a consulting agreement for marketing and PR services, for a term of six months, which was subsequently extended through August 30, 2016. Compensation under this agreement through May 30, 2016 was $25,000 per month, with twenty percent, or $5,000, of this amount to be paid in shares of the Company's common stock. Per the terms of the agreement, the number of shares issued is determined at the end of each quarter. Upon extension, the terms were adjusted to $15,000 per month for services, with $5,000 to be paid in shares of the Company's common stock. On March 1, 2016, the Company entered into a consulting agreement for corporate financial advisory services, for a term of twelve months, which is cancellable anytime with thirty days written notice after the first ninety days. Compensation under this agreement consists of a retainer of $3,500 per month, plus 1,500,000 shares of common stock issuable in 375,000 share tranches on a quarterly basis. Litigation On May 22, 2013, Medbox (now known as Notis Global, Inc.) initiated litigation in the United States District Court in the District of Arizona against three shareholders of MedVend Holdings LLC (“Medvend”) in connection with a contemplated transaction that Medbox entered into for the purchase of an approximate 50% ownership stake in Medvend for $4.1 million. The lawsuit alleges fraud and related claims arising out of the contemplated transaction during the quarter ended June 30, 2013. The litigation is pending and Medbox has sought cancellation due to a fraudulent sale of the stock because the selling shareholders lacked the power or authority to sell their ownership stake in MedVend, and their actions were a breach of representations made by them in the agreement. On November 19, 2013 the litigation was transferred to United States District Court for the Eastern District of Michigan. MedVend recently joined the suit pursuant to a consolidation order executed by a new judge assigned to the matter. In the litigation, the selling shareholder defendants and Medvend seek to have the transaction performed, or alternatively be awarded damages for the alleged breach of the agreement by Medbox. Medvend and the shareholder defendants seek $4.55 million in damages, plus costs and attorneys’ fees. Medbox has denied liability with respect to all such claims. On June 5, 2014, the Company entered into a purchase and sale agreement (the “Medvend PSA”) with PVM International, Inc. (“PVMI”) concerning this matter. Pursuant to the Medvend PSA, the Company sold to PVMI the Company’s rights and claims attributable to or controlled by the Company against those three certain stockholders of Medvend, known as Kaplan, Tartaglia and Kovan (the “Medvend Rights and Claims”), in exchange for the return by PVMI to the Company of 30,000 shares of the Company’s common stock. PVMI is owned by Vincent Mehdizadeh, formerly the Company’s largest stockholder. On December 17, 2015, the Company entered into a revocation of the Medvend PSA, which provided that from that date forward, Medbox would take over the litigation and be responsible for the costs and attorneys’ fees associated with the Medvend Litigation from December 17, 2015 forward. All costs and attorneys’ fees through December 16, 2015 will be borne by PVMI. After the filing of a motion for substitution of Medbox n/k/a Notis Global, Inc. for PVMI, Defendants’ agreed, via a stipulated order, to permit the substitution. The Court entered the order substituting Notis Global, Inc. for PVMI on February 17, 2016. A new litigation schedule was recently issued which resulted in an adjournment of the trial. A new trial date will be set by the court following its ruling on a motion for summary judgment filed by Defendants and Medvend, which is set for hearing on November 16, 2016. At this time, the Company cannot determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can they reasonably estimate a range of potential loss, should the outcome be unfavorable. On February 20, 2015, Michael A. Glinter, derivatively and on behalf of nominal defendants Medbox, Inc. the Board and certain executive officers (Pejman Medizadeh, Matthew Feinstein, Bruce Bedrick, Thomas Iwanskai, Guy Marsala, J. Mitchell Lowe, Ned Siegel, Jennifer Love, and C. Douglas Mitchell) filed a suit in the Superior Court of the State of California for the County of Los Angeles. The suit alleges breach of fiduciary duties and abuse of control by the defendants. Relief is sought awarding damages resulting from breach of fiduciary duty and to direct the Company and the defendants to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable law. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Derivative Settlement On January 21, 2015, Josh Crystal on behalf of himself and of all others similarly situated filed a class action lawsuit in the U.S. District Court for Central District of California against Medbox, Inc., and certain past and present members of the Board (Pejman Medizadeh, Bruce Bedrick, Thomas Iwanskai, Guy Marsala, and C. Douglas Mitchell). The suit alleges that the Company issued materially false and misleading statements regarding its financial results for the fiscal year ended December 31, 2013 and each of the interim financial periods that year. The plaintiff seeks relief of compensatory damages and reasonable costs and expenses or all damages sustained as a result of the wrongdoing. On April 23, 2015, the Court issued an Order consolidating the three related cases in this matter: Crystal v. Medbox, Inc., Gutierrez v. Medbox, Inc., and Donnino v. Medbox, Inc., and appointing a lead plaintiff. On July 27, 2015, Plaintiffs filed a Consolidated Amended Complaint. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Class Settlement On January 18, 2015, Ervin Gutierrez filed a class action lawsuit in the U.S. District Court for the Central District of California. The suit alleges violations of federal securities laws through public announcements and filings that were materially false and misleading when made because they misrepresented and failed to disclose that the Company was recognizing revenue in a manner that violated US GAAP. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses or all damages sustained as a result of the wrongdoing. On April 23, 2015, the Court issued an Order consolidating the three related cases in this matter: Crystal v. Medbox, Inc., Gutierrez v. Medbox, Inc., and Donnino v. Medbox, Inc., and appointing a lead plaintiff. On July 27, 2015, Plaintiffs filed a Consolidated Amended Complaint. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Class Settlement On January 29, 2015, Matthew Donnino filed a class action lawsuit in the U.S. District Court for Central District of California. The suit alleges that the Company issued materially false and misleading statements regarding its financial results for the fiscal year ended December 31, 2013 and each of the interim financial periods that year. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses or all damages sustained as a result of the wrongdoing. On April 23, 2015, the Court issued an Order consolidating the three related cases in this matter: Crystal v. Medbox, Inc., Gutierrez v. Medbox, Inc., and Donnino v. Medbox, Inc., and appointing a lead plaintiff. On July 27, 2015 Plaintiffs filed a Consolidated Amended Complaint. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Class Settlement On February 12, 2015, Jennifer Scheffer, derivatively on behalf of Medbox, Guy Marsala, Ned Siegel, Mitchell Lowe and C. Douglas Mitchell filed a lawsuit in the Eighth Judicial District Court of Nevada seeking damages for breaches of fiduciary duty regarding the issuance and dissemination of false and misleading statements and regarding allegedly improper and unfair related party transactions, unjust enrichment and waste of corporate assets. On April 17, 2015, Ned Siegel and Mitchell Lowe filed a Motion to Dismiss. On April 20, 2015, the Company filed a Joinder in the Motion to Dismiss. On July 27, 2015, the Court held a hearing on and granted the Motion to Dismiss without prejudice. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Derivative Settlements On March 10, 2015, Robert J. Calabrese, derivatively and on behalf of nominal defendant Medbox, Inc., filed a suit in the United States District Court for the District of Nevada against certain Company officers and/or directors (Ned L. Siegel, Guy Marsala, J. Mitchell Lowe, Pejman Vincent Mehdizadeh, Bruce Bedrick, and Jennifer S. Love). The suit alleges breach of fiduciary duties and gross mismanagement by issuing materially false and misleading statements regarding the Company’s financial results for the fiscal year ended December 31, 2013 and each of the interim financial periods. Specifically the suit alleges that defendants caused the Company to overstate the Company’s revenues by recognizing revenue on customer contracts before it had been earned. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses for all damages sustained as a result of the alleged wrongdoing. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Derivative Settlements On March 27, 2015, Tyler Gray, derivatively and on behalf of nominal defendant Medbox, Inc., filed a suit in the United States District Court for the District of Nevada against the Company’s Board of Directors and certain executive officers (Pejman Vincent Mehdizadeh, Matthew Feinstein, Bruce Bedrick, Thomas Iwanski, Guy Marsala, J. Mitchell Lowe, Ned Siegel, Jennifer S. Love, and C. Douglas Mitchell). The suit alleges breach of fiduciary duties and abuse of control. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses for all damages sustained as a result of the alleged wrongdoing. Additionally the plaintiff seeks declaratory judgments that plaintiff may maintain the action on behalf of the Company, that the plaintiff is an adequate representative of the Company, and that the defendants have breached and/or aided and abetted the breach of their fiduciary duties to the Company. Lastly the plaintiff seeks that the Company be directed to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable law. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Derivative Settlements On May 20, 2015, Patricia des Groseilliers, derivatively and on behalf of nominal defendant Medbox, Inc., filed a suit in the United States District Court for the District of Nevada against the Company’s Board of Directors and certain executive officers (Pejman Vincent Mehdizadeh, Ned Siegel, Guy Marsala, J. Mitchell Lowe, Bruce Bedrick, Jennifer S. Love, Matthew Feinstein, C. Douglas Mitchell, and Thomas Iwanski). The suit alleges breach of fiduciary duties and unjust enrichment. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses for all damages sustained as a result of the alleged wrongdoing. Additionally the plaintiff seeks declaratory judgments that plaintiff may maintain the action on behalf of the Company, that the plaintiff is an adequate representative of the Company, and that the defendants have breached and/or aided and abetted the breach of their fiduciary duties to the Company. Lastly the plaintiff seeks that the Company be directed to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable law. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Derivative Settlements On June 3, 2015, Mike Jones, derivatively and on behalf of nominal defendant Medbox, Inc., filed a suit in the U.S. District Court for Central District of California against the Company’s Board of Directors and certain executive officers (Guy Marsala, J. Mitchell Lowe, Ned Siegel, Jennifer S. Love, C. Douglas Mitchell, Pejman Vincent Mehdizadeh, Matthew Feinstein, Bruce Bedrick, and Thomas Iwanski). The suit alleges breach of fiduciary duties, abuse of control, and breach of duty of honest services. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses for all damages sustained as a result of the alleged wrongdoing. Additionally the plaintiff seeks declaratory judgments that plaintiff may maintain the action on behalf of the Company, that the plaintiff is an adequate representative of the Company, and that the defendants have breached and/or aided and abetted the breach of their fiduciary duties to the Company. Lastly the plaintiff seeks that the Company be directed to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable law. On July 20, 2015, the Court issued an Order consolidating this litigation with those previously consolidated in the Central District (Crystal, Gutierrez, and Donnino). On October 7, 2015, the Court issued an Order modifying the July 20, 2015 Order consolidating the litigation so that the matters remain consolidated for the purposes of pretrial only. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Derivative Settlement On July 20, 2015, Kimberly Freeman, derivatively and on behalf of nominal defendant Medbox, Inc., filed a suit in the Eighth Judicial District Court of Nevada against the Company’s Board of Directors and certain executive officers (Pejman Vincent Mehdizadeh, Guy Marsala, Ned Siegel, J. Mitchell Lowe, Jennifer S. Love, C. Douglas Mitchell, and Bruce Bedrick). The suit alleges breach of fiduciary duties and unjust enrichment. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses for all damages sustained as a result of the alleged wrongdoing. Additionally the plaintiff seeks declaratory judgments that plaintiff may maintain the action on behalf of the Company, that the plaintiff is an adequate representative of the Company, and that the defendants have breached and/or aided and abetted the breach of their fiduciary duties to the Company. Lastly the plaintiff seeks that the Company be directed to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable law. The Company has entered into a Stipulation and Agreement of Settlement on October 16, 2015. See more detailed discussion below under Derivative Settlement On October 16, 2015, solely to avoid the costs, risks, and uncertainties inherent in litigation, the parties to the class actions and derivative lawsuits named above entered into settlements that collectively effect a global settlement of all claims asserted in the class actions and the derivative actions. The global settlement provides, among other things, for the release and dismissal of all asserted claims. The global settlement is contingent on final court approval, respectively, of the settlements of the class actions and derivative actions. If the global settlement does not receive final court approval, it could have a material adverse effect on the financial condition, results of operations and/or cash flows of the Company and their ability to raise funds in the future. On October 27, 2015, separate from the above lawsuits and settlement, Richard Merritts, derivatively and on behalf of nominal defendant Medbox, Inc., filed a suit in the Superior Court of the State of California for the County of Los Angeles against the Board and certain executive officers (Guy Marsala, J. Mitchell Lowe, Ned Siegel, Jennifer S. Love, C. Douglas Mitchell, Pejman Vincent Mehdizadeh, Matthew Feinstein, Bruce Bedrick, Jeff Goh, and Thomas Iwanski). The suit titled Merritts v. Marsala, et al. Jones v. Marsala, et al Mike Jones v. Guy Marsala, et al. Derivative Settlements Class Settlement On December 1, 2015, Medbox and the class plaintiffs in Josh Crystal v. Medbox, Inc., et al., Case No. 2:15-CV-00426-BRO (JEMx), pending before the United States District Court for the Central District of California (the “Court”) notified the Court of the settlement. The Court stayed the action pending the Court’s review of the settlement and directed the parties to file a stipulation of settlement. On December 18, 2015, plaintiffs filed the Motion for Preliminary Approval of Class Action Settlement that included the stipulation of settlement. On February 3, 2016, the Court issued an Order granting preliminary approval of the settlement. The settlement provides for notice to be given to the class, a period for opt outs and a final approval hearing. The Court originally scheduled the Final Settlement Approval Hearing to be held on May 16, 2016 at 1:30 p.m., but continued it to August 15, 2016 at 1:30 p.m. to be heard at the same time as the Final Settlement Approval Hearing for the derivative actions, discussed below. The principal terms of the settlement are: • a cash payment to a settlement escrow account in the amount of $1,850,000 of which $150,000 will be paid by the Company and $1,700,000 will be paid by the Company’s insurers; • a transfer of 2,300,000 shares of Medbox common stock to the settlement escrow account, of which 2,000,000 shares would be contributed by Medbox and 300,000 shares by Bruce Bedrick; • the net proceeds of the settlement escrow, after deduction of Court-approved administrative costs and any Court-approved attorneys’ fees and costs would be distributed to the Class; and • releases of claims and dismissal of the action. By entering into the settlement, the settling parties have resolved the class claims to their mutual satisfaction. However, the final determination is subject to approval by the Federal Courts. Defendants have not admitted the validity of any claims or allegations and the settling plaintiffs have not admitted that any claims or allegations lack merit or foundation. If the global settlement does not receive final court approval, it could have a material adverse effect on the financial condition, results of operations and/or cash flows of the Company and their ability to raise funds in the future. Derivative Settlements As previously announced on October 22, 2015, on October 16, 2015, the Company, in its capacity as a nominal defendant, entered into a memorandum of understanding of settlement (the “Settlement”) in the following shareholder derivative actions: (1) Mike Jones v. Guy Marsala, et al., in the U.S. District Court for Central District of California; (2) Jennifer Scheffer v. P. Vincent Mehdizadeh, et al., in the Eighth Judicial District Court of Nevada; (3) Kimberly Y. Freeman v. Pejman Vincent Mehdizadeh, et al., in the Eighth Judicial District Court of Nevada; (4) Tyler Gray v. Pejman Vincent Mehdizadeh, et al., in the U.S. District Court for the District of Nevada; (5) Robert J. Calabrese v. Ned L. Siegel, et al., in the U.S. District Court for the District of Nevada; (6) Patricia des Groseilliers v. Pejman Vincent Mehdizadeh, et al., in the U.S. District Court for the District of Nevada; (7) Michael A. Glinter v. Pejman Vincent Mehdizadeh, et al., in the Superior Court of the State of California for the County of Los Angeles (the “Shareholder Derivative Lawsuits”). In addition to the Company, Pejman Vincent Mehdizadeh, Matthew Feinstein, Bruce Bedrick, Thomas Iwanski, Guy Marsala, J. Mitchell Lowe, Ned Siegel, and C. Douglas Mitchell were named as defendants in all of the lawsuits, and Jennifer S. Love was named in all of the lawsuits but the Scheffer action (the “Individual Defendants”). On December 3, 2015, the parties in the Jones v. Marsala action advised the Court of the settlements in the Shareholder Derivative Lawsuits and that the parties would be submitting the settlement to the Court in the Jones action for approval. The Court thereafter issued an order vacating all pending dates in the action and ordered Plaintiff to file the Stipulation and Agreement of Settlement for the Court’s approval. On December 18, 2015, plaintiffs filed the Motion for Preliminary Approval of Derivative Settlement that included the Stipulation and Agreement of Settlement. On February 3, 2016, the Court issued an Order granting preliminary approval of the settlement. The Court originally scheduled a final Settlement Hearing to be held on May 16, 2016, but subsequently continued that hearing to October 17, 2016. By the terms of the settlement, a final Court approval would provide for a release of the claims in the Shareholder Derivative Actions and a bar against continued prosecution of all claims covered by the release. By entering into the Settlement, the settling parties have resolved the derivative claims to their mutual satisfaction. The Individual Defendants have not admitted the validity of any claims or allegations and the settling plaintiffs have not admitted that any claims or allegations lack merit or foundation. The final Settlement Hearing was held on October 17, 2016, and the Court has taken the settlement under review. Under the terms of the Settlement, the Company agrees to adopt and adhere to certain corporate governance processes in the future. In addition to these corporate governance measures, the Company’s insurers, on behalf of the Individual Defendants, will make a payment of $300,000 into the settlement escrow account and Messrs. Mehdizadeh and Bedrick will deliver 2,000,000 and 300,000 shares, respectively, of their Medbox, Inc. common stock into the settlement escrow account. Subject to Court approval, the funds and common stock in the settlement escrow account will be paid as attorneys’ fees and expenses, or as service awards to plaintiffs. On September 16, 2016, solely to avoid the costs, risks, and uncertainties inherent in litigation, the parties entered into a settlement regarding the Merritts Action. The settlement provides, among other things, for the release and dismissal of all asserted claims. Under the terms of the settlement, the Company agrees to adopt and to adhere to certain corporate governance processes in the future. In addition to these corporate governance measures, the Company will make a payment of $135,000 in cash to be used to pay Merritts’ counsel for any attorneys’ fees and expenses, or as service awards to plaintiff Merritts, that are approved and awarded by the Court. The settlement is contingent on final court approval. The final Settlement Hearing was held on October 17, 2016, at the same date and time as the final Settlement Hearing for the Shareholder Derivative Lawsuits. The Court has taken the settlement under review. The Settlements remain subject to approval by the Court. The Court must determine whether (1) the terms and conditions of the Settlements are fair, reasonable, and adequate in the best interest of the Company and its stockholders, (2) if the judgment, as provided for in the Settlements, should be entered, and (3) if the request of plaintiff’s counsel for an award of attorneys’ fees and reimbursement of expenses should be granted. The Company’s responsibilities as to the proposed settlements of the Class Action and the Shareholder Derivative Lawsuits have been accrued and included in Accrued settlement and severance expenses on the accompanying consolidated balance sheet as of December 31, 2015. If the settlements of the Class Action, the Shareholder Derivative Lawsuits, or the Merritts Action do not receive final court approval, it could have a material adverse effect on the financial condition, results of operations and/or cash flows of the Company and their ability to raise funds in the future. SEC Investigation In October 2014, the Board of Directors of the Company appointed a special board committee (the “Special Committee”) to investigate issues arising from a federal grand jury subpoena pertaining to the Company’s financial reporting which was served upon the Company’s predecessor independent registered public accounting firm as well as certain alleged wrongdoing raised by a former employee of the Company. The Company was subsequently served with two SEC subpoenas in early November 2014. The Company is fully cooperating with the grand jury and SEC investigations. In connection with its investigation of these matters, the Special Committee in conjunction with the Audit Committee initiated an internal review by management and by an outside professional advisor of certain prior period financial reporting of the Company. The outside professional advisor reviewed the Company’s revenue recognition methodology for certain contracts for the third and fourth quarters of 2013. As a result of certain errors discovered in connection with the review by management and its professional advisor, the Audit Committee, upon management’s recommendation, concluded on December 24, 2014 that the consolidated financial statements for the year ended December 31, 2013 and for the third and fourth quarters therein, as well as for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, should no longer be relied upon and would be restated to correct the errors. On March 6, 2015 the audit committee determined that the consolidated financial statements for the year ended December 31, 2012, together with all three, six and nine month financial information contained therein, and the quarterly information for the first two quarters of the 2013 fiscal year should also be restated. On March 11, 2015, the Company filed its restated Form 10 Registration Statement with the SEC with restated financial information for the years ended December 31, 2012 and December 31, 2013, and on March 16, 2015, the Company filed amended and restated quarterly reports on Form 10-Q, with restated financial information for the periods ended March 31, June 30 and September 30, 2014, respectively. In March 2016, the staff of the Los Angeles Regional Office of the U.S. Securities and Exchange Commission advised counsel for the Company in a telephone conversation, followed by a written “Wells” notice, that it is has made a preliminary determination to recommend that the Commission file an enforcement action against the Company in connection with misstatements by prior management in the Company’s financial statements for 2012, 2013 and the first three quarters of 2014. A Wells Notice is neither a formal allegation of wrongdoing nor a finding that any violations of law have occurred. Rather, it provides the Company with an opportunity to respond to issues raised by the Staff and offer its perspective prior to any SEC decision to institute proceedings. These proceedings could result in the Company being subject to an injunction and cease and desist order from further violations of the securities laws as well as monetary penalties of disgorgement, pre-judgment interest and a civil penalty. The Company has responded in writing to the “Wells” notice. Under current management, the Company restated the relevant financial statements and took other remedial action, and has been cooperating with the SEC’s investigation since November 2014, including the appointment of a Special Committee of the Board to investigate the conduct of prior management and disclose this conduct to the SEC. The Company has also produced documents to the SEC and has made witnesses available, both voluntarily and for sworn testimony pursuant to subpoena. The Company is unable to predict the outcome of the investigation, any potential enforcement actions or any other impact on the Company that may arise as a result of such investigation. The Company has not established a liability for this matter, because it believes that the probability of loss related to this matter and an estimate of the amount of loss, if any, are not determinable at this time. An adverse judgment or action of the SEC could have a material adverse effect on the financial condition, results of operations and/or cash flows of the Company and their ability to raise funds in the future. Other litigation Whole Hemp complaint A complaint was filed by Whole Hemp Company, LLC d/b/a Folium Biosciences (“Whole Hemp”) on June 1, 2016, naming Notis Global, Inc. and EWSD I, LLC (collectively, “Notis”), as defendants in Pueblo County, CO district court. The complaint alleges five causes of action against Notis: misappropriation of trade secrets, civil theft, intentional interference with prospective business advantage, civil conspiracy, and breach of contract. All claims concern contracts between Whole Hemp and Notis for the Farming Agreement and the Distributor Agreement. The court entered an ex parte On August 12, 2016, the court ordered that all of Whole Hemp’s plants in Notis’ possession

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 – SUBSEQUENT EVENTS Letter agreements On August 3, 2016, Notis Global, Inc. executed letter agreements with each of the Company’s two largest investors (the “First Investor” and the “Second Investor”, respectively) (Note 7). First Investor Letter Agreement Pursuant to the letter agreement with the First Investor (the “First Investor Letter Agreement”), the First Investor agreed to waive, until October 31, 2016, any defaults relating to the requirement to reserve shares of common stock in excess of shares presently held in the First Investor’s reserve with the Company’s transfer agent, as required pursuant to all securities purchase agreements between the Company and the First Investor, debentures issued by the Company to the First Investor and promissory notes issued by the Company to the First Investor (collectively, the “First Investor Credit Agreements”). The First Investor Letter Agreement also extended the maturity dates of certain debentures issued to the First Investor dated July 10, 2015, August 24, 2015, August 28, 2015, May 13, 2016 and May 20, 2016 from their original maturity dates (occurring between July 10, 2016 and August 28, 2016) to October 31, 2016. Additionally, the parties to the First Investor Letter Agreement agreed that any payments made to the First Investor pursuant to Section 4.16 (Profit Sharing) of that certain Stock Purchase Agreement among the First Investor, the Company, EWSD I LLC, a subsidiary of the Company (“EWSD”), and Pueblo Agriculture Supply and Equipment, LLC, a subsidiary of the Company (“PASE”) dated as of June 30, 2016 (the “EWSD SPA”) (Note 7), shall be applied as repayments of any redemption premium, accrued and unpaid interest, and outstanding principal owed to the First Investor under the First Investor Credit Agreements, and that the provisions of Section 4.16 of the EWSD SPA are only applicable until the First Investor has been repaid required principal, interest, fees and premiums under the EWSD SPA and any related debentures issued by the Company pursuant thereto. Second Investor Letter Agreement Pursuant to the letter agreement with the Second Investor (the “Second Investor Letter Agreement”), the Second Investor (on behalf of itself and its affiliates) also agreed to waive, until October 31, 2016, any defaults relating to the requirement to reserve shares of common stock in excess of shares presently held in the Second Investor’s reserve with the Company’s transfer agent, as required pursuant to all securities purchase agreements between the Company and the Second Investor, debentures issued by the Company to the Second Investor and promissory notes issued by the Company to the Second Investor (collectively, the “Second Investor Credit Agreements”). The Second Investor Letter Agreement also extended the maturity dates of certain debentures issued (or assigned) to the Second Investor (or its affiliates) dated August 24, 2015, March 27, 2015, May 7, 2015, May 15, 2015, May 22, 2015 and August 14, 2015 from their original maturity dates (occurring between July 10, 2016 and August 24, 2016) to October 31, 2016. Pursuant to the Second Investor Letter Agreement, the Company agreed to pay the Second Investor within five (5) days of the end of each fiscal quarter, (i) 20% of all distributed cash flow from PASE and EWSD to the Company after taking into account amounts owed to First Investor pursuant to Section 4.16 (Profit Sharing) of the EWSD SPA, and (ii) 20% of any money raised at either EWSD or PASE that is distributable or paid to the Company. Such payments will be credited as repayments of amounts owed to the Second Investor under all securities purchase agreements between the Company and the Second Investor, debentures issued by the Company to the Second Investor and promissory notes issued by the Company to the Second Investor (collectively, the “Second Investor Credit Agreements”) including towards any redemption, premium accrued and unpaid interest, and outstanding principal thereunder, and such payments shall only occur until the Second Investor has been repaid the sum of $500,000 of principal under the Second Investor Credit Agreements, plus a 30% premium on such amount. Subsequent funding Subsequent to June 30, 2016, the Company has received approximately $1,266,000, net of approximately $40,000 in withholdings, in additional closings under the June 30, 2016 funding (Note 7). Additionally, the Company has received approximately $650,000 under the September 30, 2016 financing discussed below. Event of Default On September 22, 2016, Notis Global, Inc. received notice of an Event of Default and Acceleration (the “ Notice Letter Default Rate Adjustment Mandatory Default Amount Acceleration Payment On September 23, 2016, the noteholder agreed to forebear the Acceleration Payment for a period of 30 days, and is in the process with the Company of negotiating a forbearance agreement reflecting the 30-day forbearance. Regardless of such forbearance, the Default Rate Adjustment and the application of the Mandatory Default Amount formula shall remain in effect. As a result of the application of the Mandatory Default Amount formula, the outstanding balance of the Note increased to $184,022 from $147,217. As a result of the effect of the Notice Letter, other of the Company’s lenders could issue similar notices of events of default or acceleration or penalties due to the Company’s Event of Default set forth in the Notice Letter. Entry into Note Purchase Agreement, Exchange Agreement, and Security Agreement On September 30, 2016, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with a new investor (the “Investor”) pursuant to which two wholly-owned subsidiaries of the Company, EWSD I, LLC (“EWSD I”) and Pueblo Agriculture Supply and Equipment, LLC (“Pueblo”, and together with EWSD I, the “Subsidiaries”) agreed to jointly sell, and the Investor agreed to purchase, an aggregate of up to $3,349,599 in subscription amount of convertible secured promissory notes (plus the Investor Subscription Amount of $1,431,401, described below, which was tendered with the first tranche of the Securities Purchase Agreement) (collectively, the “New Notes”) in seven tranches (each, a “Closing”). The Investor’s commitment to purchase the New Notes may, at the option of the Investor, be reduced by up to $700,000 for monies raised by the Company or the Subsidiaries. The Investor Note Subscription Amount refers to $1,431,401 of 10% convertible notes of the Company previously issued to the Company's major investor ("First Investor") pursuant to that certain Securities Purchase Agreement dated on or about June 30, 2016 (the “July SPA”) (Note 11). The debentures issued pursuant to the July SPA were subsequently assigned to the Investor and were tendered for cancellation to the Company for the Investor Subscription Amount portion of the New Notes. The New Notes accrue interest at a rate of 5% per annum and are issued at a 40% discount to purchase price. Therefore, if each of the seven tranches described below are fully funded, the Company would receive cash in the aggregate of $1,983,599 in exchange for the issuance of New Notes with a face value of $3,349,599 in principal to be repaid to the Investor. The first New Note issued in the first tranche under the Securities Purchase Agreement was for an original purchase price of $1,881,401 (representing the Investor Note Subscription Amount of $1,431,401 plus $450,000 funded purchase price) and an original principal amount of $2,633,961. The New Notes may be prepaid inclusive of interest of the greater of one year or the current amount of time that the New Note has been outstanding. The funding of New Notes under the Securities Purchase Agreement are as follows: The first tranche of up to $539,306 plus the Investor Note Subscription Amount, the second tranche of up to $100,000 being closed upon on or about October 1, 2016, the third tranche of up to $208,424 being closed upon on or about October 17, 2016, the fourth tranche of up to $100,000 being closed upon on or about November 1, 2016, the fifth tranche of up to $188,818 being closed upon on or about November 15, 2016, the sixth tranche of up to $182,051 being closed upon on or about December 15, 2016, and the seventh tranche of up to $665,000, the closing of which is contingent upon, among other things, the purchase of that certain parcel of land located at 212 39th Ln, Pueblo CO 81006 referred to as “Farm#2”, upon terms and conditions that are satisfactory to the Investor and the assignment of a 20% ownership interest in that certain 320-acres of agricultural land in Pueblo, Colorado (the “Farm”) and Farm #2 to the Investor. As of October 20, 2016 the new investor has funded $650,000, in cash for New Notes with the total face value of $910,000, excluding the Investor Note Subscription Amount. Upon retirement of the New Notes, the Company or its Subsidiaries or affiliates as applicable, shall assign twenty percent (20%) of their respective ownership interest in the Farm and Farm #2 to the Investor. The Company and Ned Siegel, Jeffrey Goh, and Clinton Pyatt, each an executive officer of the Company or member of the Company’s Board shall enter into management contracts with the Company upon terms and subject to conditions that are reasonably acceptable to the Investor. Furthermore, the Company shall pay to the Investor as partial repayment of the New Notes or other indebtedness at the end of each calendar month: (a) Out of the first $1,000,000 in the aggregate of combined revenues received from all sources, including, without limitation, any revenue from any legal settlement, judgment, or other legal proceeding (collectively, a “Legal Matter”), received of the Company and all of its Subsidiaries net of any payments to an ‘outside farmer’ (collectively, the “Combined Revenues”), 80% of the Combined Revenues, except to the extent the Combined Revenues are from a Legal Matter, in which event, the percentage shall be 50% (collectively, the “Combined Net Revenues”). (b) Out of the second $1,000,000 in the aggregate of Combined Revenues, 70% of the Combined Net Revenues, except to the extent the Combined Revenues are from a Legal Matter, in which event, the percentage shall be 50%. (c) Out of any Combined Revenues in excess of $2,000,000, 60% of the Combined Net Revenues, except to the extent the Combined Revenues are from a Legal Matter, in which event, the percentage shall be 50%. (d) Upon full satisfaction of the New Notes, 60% of the Combined Net Revenues shall be used to redeem any outstanding indebtedness owed to the Investor. (e) The foregoing amounts may, at the Investor’s option, be reduced to allow EWSD to meet its overhead not to exceed $120,000 per month plus a maximum of $100,000 per month to the Company beginning January 15, 2017. (f) The Company shall be permitted to enter into one or more agreements with third parties to allocate to such third parties up to no more than 20% of the Combined Net Revenues. Any such agreements shall reduce the percentage of the Combined Net Revenues to be paid by the Companies to the Investor. The Company agreed to use commercially reasonable efforts to amend the Subordination Agreement (referred to above) to reflect the issuance of New Notes to the Investor within 14 days of the date of the Securities Purchase Agreement. The First Investor and the Investor are affiliates of one another. The Company and the Subsidiaries also entered into an Exchange Agreement with First Investor, pursuant to which the First Investor agreed to exchange each of the Company’s outstanding debentures issued in their favor (in the principal outstanding balance amount of approximately $5,882,242 (plus accrued interest) (the “Original Debentures”) for certain 10% Convertible Debentures issued by the Subsidiaries, due June 30, 2017, on substantially the same terms as the Original Debentures (the “Subsidiary Debentures”). The Company and the Subsidiaries also entered into a Security Agreement (the “Security Agreement”), securing a lien for the Investor on the Farm (subject to the rights of the primary lien holder in the Farm pursuant to the Subordination Agreement (as defined above)) and securing a lien for the Investor on Subsidiaries’ other assets on a primary basis. Pursuant to the Security Agreement, the Company agreed to, within 14 calendar days, negotiate and enter into an amendment to the Subordination Agreement to reflect the rights of the Investor set forth in the Security Agreement. The Company also intends to negotiate related waivers with its other creditors. In the instance of an Event of Default, as such term is defined in the New Note, the Investor has the right to convert all or any portion of principal and/or interest of the New Notes into shares of Common Stock of the Company in accordance with the terms of the form of 10% Convertible Debenture dated as of June 30, 2016 issued under the July SPA. The Investor shall have a right of first refusal to participate in future equity financings of the Company on the same terms as any new investors for a period of twelve months from the closing of the last Convertible Debenture. Grant of Second Deed of Trust and Assignment of Rents On September 30, 2016, EWSD I, LLC (“ EWSD I Junior Lender Second Trust Deed Assignment of Rents Securities Purchase Agreement The security granted to the Junior Lender pursuant to the Second Trust Deed and the Assignment of Rents is subordinate to the rights of Southwest Farms, Inc. (the “ Senior Lender Subordination Agreement On September 9, 2016, the Company received notice from the OTC Markets that OTC Markets would move the Company’s listing from the OTCQB market to OTC Pink Sheets market, if the Company had not filed its Quarterly Report on Form 10-Q for the period ended June 30, 2016 by September 30, 2016. On or about October 1, 2016, the Company moved to the OTC Pink Sheets market. This might also impact the Company's ability to obtain funding. Entry into Note Purchase Agreement and Global Debenture Amendment On October 10, 2016, the Company entered into a Note Purchase Agreement (the “Purchase Agreement”) with an accredited investor (the “Investor”), pursuant to which the Company agreed to sell, and the Investor agreed to purchase, a secured convertible promissory note (the “Note”) in the aggregate principal amount of $53,000. The Investor deducted a commitment fee in the amount of $3,000 at the closing. The Note bears interest at the rate of 5% per annum and matures on April 30, 2017. The Company may not prepay any part of the outstanding balance of the Note at any time prior to maturity without the written consent of the Investor. At any time or from time to time, the Investor may convert the Note, in whole or in part, into shares of the Company's common stock at a conversion price that is the lower of (a) $0.75, or (b) 51% of the lowest volume weighted average price for the 30 consecutive trading days prior to the conversion date. In connection with entry into the Note Purchase Agreement, the parties also entered into a Global Debenture Amendment (the “Debenture Amendment”), pursuant to which the Investor shall be entitled to the same “look-back” period on establishing the conversion price of a Note as any other Investor is entitled to pursuant to notes or debentures held by such Investor. Based on the terms of the Company's other convertible notes and debentures, other investors shall be entitled to the same rights established in the Debenture Amendment. Therefore, each of the company's investors holding convertible debt shall be entitled to the same “look-back” period when establishing the conversion price for their respective notes or debentures.

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Going Concern	Going Concern The condensed consolidated financial statements were prepared on a going concern basis. The going concern basis assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. During the six months ended June 30, 2016, the Company had net income of approximately $7.8 million, negative cash flow from operations of $2.6 million and negative working capital of $19.7 million. During the year ended December 31, 2015, the Company had a net loss of approximately $50.5 million, negative cash flow from operations of $9.6 million and negative working capital of $32.9 million. The Company will need to raise capital in order to fund its operations. The Company is also in the process of obtaining final approval on a settlement agreement in their Class action and Derivative lawsuits (Note 11) and recently received a Wells Notice from the SEC (Note 11) in connection with misstatements by prior management in the Company’s financial statements for 2012, 2013 and the first three quarters of 2014. On September 22, 2016, the Company received notice of an Event of Default and Acceleration from one of its lenders regarding a Promissory Note issued on March 14, 2016. The Company has negotiated a 30 day forbearance on acceleration of the note. The Company is unable to predict the outcome of these matters, however, a rejection of the settlement agreements or adverse action of the SEC or legal action taken by the Company’s lenders could have a material adverse effect on the financial condition, results of operations and/or cash flows of the Company and their ability to raise funds in the future. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management’s plans include: The Company has received approximately $1,266,000, net of approximately $40,000 in withholdings, in additional closings under the June 30, 2016 funding (Note 7), subsequent to June 30, 2016. Additionally, on September 30, 2016, the Company entered into a securities purchase agreement with a new investor pursuant to which two wholly-owned subsidiaries of the Company, EWSD I, LLC (“ EWSD I Pueblo Subsidiaries The Company also expects that the acquisition of EWSD I, LLC (“EWSD”) (Note 3), who owns a 320-acre farm in Pueblo, Colorado, will generate recurring revenues for the Company through farming hemp, extracting and selling CBD oil, and collecting fees from production related to extracting CBD oil for other farmers, while controlling the full production cycle to ensure consistent quality. Lastly, management is actively seeking additional financing over the next few months to fund operations. The Company will continue to execute on its business model by attempting to raise additional capital through the sales of debt or equity securities or other means. However, there is no guarantee that such financing will be available on terms acceptable to the Company, or at all. It is uncertain whether the Company can obtain financing to fund operating deficits until profitability is achieved. This need may be adversely impacted by: unavailability of financing, uncertain market conditions, the success of the crop growing season, the demand for CBD oil, the ability of the Company to obtain financing for the equipment and labor needed to cultivate hemp and extract the CBD oil,, and adverse operating results. The outcome of these matters cannot be predicted at this time. On May 24, 2016, the Company received a notice from the OTC Markets Group, Inc. (“OTC Markets”) that the Company’s bid price is below $.01 and does not meet the Standards for Continued Eligibility for OTCQB as per the OTCQB Standards. If the bid price has not closed at or above $.01 for ten consecutive trading days by November 20, 2016, the Company will be moved to the OTC Pink marketplace. Additionally, on September 9 th
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Notis Global, Inc. and its wholly owned subsidiaries, as named in Note 1 above. All intercompany transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated 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 and the disclosure of contingent liabilities at the date of the condensed consolidated financial statements as well as the reported expenses during the reporting periods. The Company’s significant estimates and assumptions include accounts receivable and note receivable collectability, inventory reserves, advances on investments, the valuation of restricted stock and warrants received from customers, the amortization and recoverability of capitalized patent costs and useful lives and recoverability of long-lived assets, the derivative liability, and income tax expense. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Although the Company believes that its estimates and assumptions are reasonable, they are based upon information available at the time the estimates and assumptions were made. Actual results could differ from these estimates.
Reclassification	Reclassification The Company has reclassified certain prior fiscal year amounts in the accompanying condensed consolidated financial statements to be consistent with the current fiscal year presentation.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company maintains cash balances at several financial institutions in the Los Angeles, California area and Iowa. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible.
Advertising and Marketing Costs	Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred. The Company incurred advertising and marketing costs of approximately $0 and $319,000 for the three months ended June 30, 2016 and 2015, respectively and approximately $0 and $749,000 for the six months ended June 30, 2016 and 2015, respectively.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Pursuant to ASC No. 825, Financial Instruments Embedded derivative - The Company’s convertible notes payable include embedded features that require bifurcation due to a reset provision and are accounted for as a separate embedded derivative (see Note 7). As of December 31, 2015, and for new issuances of convertible debentures during the fourth quarter of fiscal 2015, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on a Monte Carlo Simulation model (“MCS”). The MCS model was used to simulate the stock price of the Company from the valuation date through to the maturity date of the related debenture and to better estimate the fair value of the derivative liability due to the complex nature of the convertible debentures and embedded instruments. Management believes that the use of the MCS model compared to the black Scholes model as previously used would provide a better estimate of the fair value of these instruments. Beginning in the fourth quarter of 2015, using the MCS model, the Company valued these embedded derivatives using a “with-and-without method,” where the value of the Convertible Debentures including the embedded derivatives, is defined as the “with”, and the value of the Convertible Debentures excluding the embedded derivatives, is defined as the “without.” This method estimates the value of the embedded derivatives by observing the difference between the value of the Convertible Debentures with the embedded derivatives and the value of the Convertible Debentures without the embedded derivatives. The Company believes the “with-and-without method” results in a measurement that is more representative of the fair value of the embedded derivatives. For each simulation path, the Company used the Geometric Brownian Motion (“GBM”) model to determine future stock prices at the maturity date. The inputs utilized in the application of the GBM model included a starting stock price, an expected term of each debenture remaining from the valuation date to maturity, an estimated volatility, and a risk-free rate. For the six months ended June 30, 2016, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on an internally calculated adjustment to the MCS valuation determined at December 31, 2015. This adjustment took into consideration the changes in the assumptions, such as market value and expected volatility of the Company’s common stock, and the discount rate used in the December 31, 2015 valuation as compared to June 30, 2016. The valuation also took into consideration the term in the debentures which limits the amounts converted to not result in the investor owning more than 4.99% of the outstanding common stock of the Company, after giving effect to the converted shares. The Company believes this methodology results in a reasonable fair value of the embedded derivatives for the interim period. For the six months ended June 30, 2015, the Company estimated the fair value of the conversion feature derivatives embedded in the convertible debentures based on weighted probabilities of assumptions used in the Black Scholes pricing model. The key valuation assumptions used consists, in part, of the price of the Company’s common stock, a risk free interest rate based on the average yield of a Treasury note and expected volatility of the Company’s common stock all as of the measurement dates, and the various estimated reset exercise prices weighted by probability.
Warrants	Warrants The Company reexamined the determination made as of December 31, 2015 that they did not have sufficient authorized shares available for all of their outstanding warrants to be classified in equity at June 30, 2016, and concluded there still were insufficient authorized shares (Note 7). Therefore, the Company recognized a Warrant liability as of June 30, 2016. The Company estimated the fair value of the warrant liability based on a Black Scholes valuation model. The key assumptions used consist of the price of the Company’s stock, a risk free interest rate based on the average yield of a two or three year Treasury note (based on remaining term of the related warrants), and expected volatility of the Company’s common stock over the remaining life of the warrants. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Level 3 Significant unobservable inputs that cannot be corroborated by market data. The assets or liabilities’ fair value measurement within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. The following table provides a summary of the relevant assets and liabilities that are measured at fair value on a recurring basis: Total Quoted Prices Quoted Prices Significant June 30, 2016 Marketable securities $ 28,390 $ 10,825 $ — $ 17,565 Total assets $ 28,390 $ 10,825 $ — $ 17,565 Warrant liability 5,552 5,552 Derivative liability 2,159,066 — — 2,159,066 Total liabilities $ 2,164,618 $ — $ — $ 2,164,618 Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Quoted Prices for Similar Assets or Liabilities in Active Markets (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2015 Marketable securities $ 9,410 $ 5,629 $ $ 3,781 Total assets $ 9,410 $ 5,629 $ — $ 3,781 Warrant liability 940,000 940,000 Derivative liability 19,246,594 — — 19,246,594 Total liabilities $ 20,186,594 $ — $ — $ 20,186,594 The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis: For the six months ended June 30, 2016 Total Beginning balance $ 20,186,594 Initial recognition of conversion feature 4,932,162 Change in fair value of conversion feature (18,819,893 ) Reclassified to equity upon conversion (3,199,797 ) Additions to warrant liability 62,673 Change in fair value of warrant liability (997,121 ) Ending Balance $ 2,164,618
Revenue Recognition	Revenue Recognition Prior to 2015, the Company entered into transactions with clients who are interested in being granted the right to have the Company engage exclusively with them in certain territories (which are described as territory rights) to obtain the necessary licenses to operate a dispensary or cultivation center for the location, and to consult in daily operations of the dispensary or cultivation center. Terms for each transaction are varied and, prior to 2015, sales arrangements typically included the delivery of our dispensing technology and dispensary location build-out and/or consultation on the location, licensing, build out and operation of a cultivation center. Prior to 2015, the Company’s standard contracts had a five year term, calling for an upfront, non-refundable consulting fee, and containing options including acquiring a Medbox dispensary machine and having the Company perform the build-outs for the location, at set prices. The up-front fees under these contracts are recognized over the five year term, and are included in deferred revenue. The Company has determined these optional purchases each constituted a separate purchasing decision, and therefore are considered a separate arrangement for revenue recognition purposes. Revenue on each of these options are evaluated for recognition when and if the customer decides to enter into the arrangement. In 2015 and the first quarter of 2016, the Company concentrated on revenue generating transactions to develop and set up dispensaries, including obtaining the conditional use permits (“CUP”) that grant the dispensary the authorization to operate, as well as cultivation centers. The Company entered into joint ventures and operating agreements, whereby separate unrelated party controls the operations of the dispensary or cultivation center, and the Company receives an agreed upon percentage of the revenue or profits of the operating entity. The revenue in the second quarter of 2016 consisted mainly of the recognition of previously deferred revenue and the sale of CBD oil. Based on these contracts, and other auxiliary agreements, our revenue model consisted of the following income streams: Consulting fee revenues and build-outs Prior to 2015, consulting fee revenues were a consistent component of our revenues and were negotiated at the time the Company entered into a contract. Consulting revenue consisted of providing ongoing consulting services over the life of the contract, to the established business in the areas of regulatory compliance, security, operations and other matters to operate the dispensary. The majority of the consulting fees from prior to 2015 arose from the upfront, non-refundable consulting fee in the Company’s standard contract, and were recognized using the straight line method over the life of the contract. Consulting fee revenue is only recognized when the following four criteria are met: 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) sales price is fixed and determinable and 4) collectability is reasonably assured. Consulting fee revenue continues to be recognized in our income statement over the life of the aforementioned contracts. Due to the uncertainties inherent in the emerging industry, the Company deferred recognition of revenue for sale of completed dispensaries with licenses until the issuance of a certificate of occupancy by the municipality. The certificate of occupancy is the final approval to open a dispensary in the customer’s community, at which time all criteria for revenue recognition, including delivery and acceptance, has been met. Additionally, at the time of the issuance of the certificate of occupancy, under the contract terms, all payments owed by the customer have been received by the Company. Similarly, recognition of revenue for the sale of a completed cultivation center is deferred until all licensing and permitting is completed and approved. Revenues from Operating Agreements Under the foregoing business model, the Company entered into operating agreements with independent parties, giving the operator the rights to control the operations of a dispensary or cultivation center during the term of the agreement. In exchange, the Company earns a fee based on a percentage of the revenue or profit of the dispensary or cultivation center. The Company has determined they are not the principal in the revenue sharing agreements and recognizes revenue under these agreements on a net basis as the fees are earned and it has been concluded that collectability is reasonably assured. Revenues from Cannabidiol oil product The Company recognizes revenue from the sale of Cannabidiol oil products ("CBD oil") upon shipment when title passes and when collectability is reasonably assured.
Cost of Revenue	Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery and distribution of our products and services. Under our prior business model, we only began capitalizing costs when we have obtained a license and a site for operation of a customer dispensary or cultivation center. The previously capitalized costs are charged to cost of revenue in the same period that the associated revenue is earned. In the case where it is determined that previously inventoried costs are in excess of the projected net realizable value of the sale of the licenses, then the excess cost above net realizable value is written off to cost of revenues. Cost of revenues also includes the rent expense on master leases held in the Company’s name, which are subleased to the Company’s operators. In addition, cost of revenue related to our vaporizer line of products consists of direct procurement cost of the products along with costs associated with order fulfillment, shipping, inventory storage and inventory management costs.
Inventory	Inventory Inventory is stated at the lower of cost or market value. Cost is determined on a cost basis that approximates the first-in, first-out (FIFO) method.
Capitalized agricultural costs	Capitalized agricultural costs Pre-harvest agricultural costs, including irrigation, fertilization, seeding, laboring, and other ongoing crop and land maintenance activities, are accumulated and capitalized as inventory and cease to be accumulated when the crops reach maturity and is ready to be harvested. All costs incurred subsequent to the crops reaching maturity will be expensed as incurred. The Company has reflected the capitalized agriculture costs as a current asset as the growing cycle of the crops are estimated to be approximately six months.
Basic and Diluted Net Loss Per Share	Basic and Diluted Net Loss Per Share Basic net income/loss per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding during the period. The Company did not consider any potential common shares in the computation of diluted loss per share for the three and six months ending June 30, 2016 and 2015, due to the net loss, as they would have an anti-dilutive effect on EPS. As of March 31, 2015, the Company had 3,000,000 shares of Series A preferred stock outstanding with par value of $0.001 that could have been converted into 15,000,000 shares of the Company’s common stock. On August 24, 2015, 2,000,000 shares of Series A preferred stock were cancelled, leaving 1,000,000 shares outstanding, which were converted into common shares on November 16, 2015. There were no shares of Series A preferred stock outstanding at June 30, 2016. Additionally, the Company had approximately 67,466,000 and 338,000 warrants to purchase common stock outstanding as of June 30, 2016 and 2015, respectively, which were not included in the computation of diluted loss per share, as based on their exercise prices they would all have an anti-dilutive effect on net loss per share. The Company also had outstanding at June 30, 2016 and 2015 approximately $7,309,000 and $4,656,000 in convertible debentures, respectively, that are convertible at the holders’ option at a conversion price of the lower of $0.75 or 51% to 60% of either the lowest trading price or the VWAP over the last 20 to 30 days prior to conversion (subject to reset upon a future dilutive financing), whose underlying shares were not included in a computation of diluted loss per share due to the net loss.
Accounts Receivable and Allowance for Bad Debts	Accounts Receivable and Allowance for Bad Debts The Company is subject to credit risk as it extends credit to our customers for work performed as specified in individual contracts. The Company extends credit to its customers, mostly on an unsecured basis after performing certain credit analyses. Prior to 2015, our typical terms required the customer to pay a portion of the contract price up front and the rest upon certain agreed milestones. The Company’s management periodically reviews the creditworthiness of its customers and provides for probable uncollectible amounts through a charge to operations and a credit to an allowance for doubtful accounts based on our assessment of the current status of individual accounts. Accounts still outstanding after the Company has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts. As of June 30, 2016, the Company’s management considered all accounts outstanding fully collectible.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses accelerated depreciation methods for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: Vehicles 5 years Furniture and Fixtures 3 - 5 years Office equipment 3 years Machinery 2 years Buildings 10 - 39 years
Income Taxes	Income Taxes The Company accounts for income taxes under the asset and liability method. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The components of the deferred tax assets and liabilities are classified as current and non-current based on their characteristics. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. In addition, the Company’s management performs an evaluation of all uncertain income tax positions taken or expected to be taken in the course of preparing the Company’s income tax returns to determine whether the income tax positions meet a “more likely than not” standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes.
Commitments and Contingencies	Commitments and Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. The Company accrues all legal costs expected to be incurred per event. For legal matters covered by insurance, the Company accrues all legal costs expected to be incurred per event up to the amount of the deductible.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods for public business entities beginning after December 15, 2017, including interim periods within that reporting period. The new standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that ASU 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor determined the effect of the standard on its ongoing financial reporting. On July 22, 2015, the Financial Accounting Standards Board (“FASB”) issued a new standard that requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new standard will not apply to inventories that are measured by using either the last-in, first-out (LIFO) method or the retail inventory method. The new standard will be effective for fiscal years beginning after December 15, 2016, and interim periods in fiscal years beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In April 2015, the FASB issued a new standard that requires an entity to determine whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the entity would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for. If the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The new standard will be effective for fiscal years beginning after December 15, 2015, and interim periods in fiscal years beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued “Leases (Topic 842)” (ASU 2016-02). This update amends leasing accounting requirements. The most significant change will result in the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current guidance. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018, which for the Company is December 31, 2018, the first day of its 2019 fiscal year. Upon adoption, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted, and a number of optional practical expedients may be elected to simplify the impact of adoption. The Company is currently evaluating the impact of adopting this guidance. The overall impact is that assets and liabilities arising from leases are expected to increase based on the present value of remaining estimated lease payments at the time of adoption. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation Management’s Evaluation of Subsequent Events The Company evaluates events that have occurred after the balance sheet date of June 30, 2016, through the date which the condensed consolidated financial statements were issued. Based upon the review, other than described in Note 12 – Subsequent Events, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of assets and liabilities' fair value measurement on a recurring basis	The following table provides a summary of the relevant assets and liabilities that are measured at fair value on a recurring basis: Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Quoted Prices for Similar Assets or Liabilities in Active Markets (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 Marketable securities $ 28,390 $ 10,825 $ — $ 17,565 Total assets $ 28,390 $ 10,825 $ — $ 17,565 Warrant liability 5,552 5,552 Derivative liability 2,159,066 — — 2,159,066 Total liabilities $ 2,164,618 $ — $ — $ 2,164,618 Total Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Quoted Prices for Similar Assets or Liabilities in Active Markets (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2015 Marketable securities $ 9,410 $ 5,629 $ $ 3,781 Total assets $ 9,410 $ 5,629 $ — $ 3,781 Warrant liability 940,000 940,000 Derivative liability 19,246,594 — — 19,246,594 Total liabilities $ 20,186,594 $ — $ — $ 20,186,594
Schedule of changes in fair value of company's Level 3 financial liabilities measured at fair value on a recurring basis	The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis: For the six months ended June 30, 2016 Total Beginning balance $ 20,186,594 Initial recognition of conversion feature 4,932,162 Change in fair value of conversion feature (18,819,893 ) Reclassified to equity upon conversion (3,199,797 ) Additions to warrant liability 62,673 Change in fair value of warrant liability (997,121 ) Ending Balance $ 2,164,618
Schedule of estimated useful lives for significant property and equipment	The estimated useful lives for significant property and equipment categories are as follows: Vehicles 5 years Furniture and Fixtures 3 - 5 years Office equipment 3 years Machinery 2 years Buildings 10 - 39 years

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of inventory	Inventory at June 30, 2016 and December 31, 2015 consists of the following: June 30, 2016 December 31, 2015 Vaporizers and accessories $ — $ 81,934 CBD Oil 32,300 35,889 Light Bulbs for cultivation centers — 33,000 Total inventory, net $ 32,300 $ 150,823

CONVERTIBLE NOTES PAYABLE AND22

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of warrants issued under all debentures, and other agreements	The warrants issued under all debentures, and other agreements, are summarized below: Date issued Number of Exercise December 18, Fair Value at issuance July 2014 Modified Debentures January 30, 2015 40,552 4.93 .06 $ 159,601 February 26, 2015 45,537 2.20 .06 79,904 March 13, 2015 21,151 2.36 .06 39,965 March 16, 2015 10,575 2.36 .06 19,981 March 20, 2015 41,946 1.79 .06 59,942 March 27, 2015 75,758 1.98 .06 119,888 April 2, 2015 60,386 1.66 .06 74,025 April 2, 2015 30,193 1.66 .06 37,012 April 10, 2015 107,914 1.39 .06 112,460 April 17, 2015 41,667 1.20 .06 37,680 April 24, 2015 127,119 1.18 .06 112,635 April 24, 2015 21,186 1.18 .06 18,772 May 1, 2015 156,250 .96 .06 113,133 May 7, 2015 134,615 .78 .06 79,234 May 8, 2015 42,000 .75 .06 23,768 May 15, 2015 200,000 .75 .06 113,365 May 22, 2015 250,000 .60 .06 113,366 May 29, 2015 258,621 .58 .06 112,537 June 5, 2015 288,462 .52 .06 120,738 June 12, 2015 930,233 .43 .06 303,246 June 19, 2015 3,448,276 .29 .06 751,159 September 2014 Modified Debentures January 28, 2015 18,038 5.54 .06 80,156 February 13, 2015 57,870 1.73 .06 96,689 April 2, 2015 181,159 1.66 .06 222,109 April 24, 2015 90,579 1.10 .06 80,548 May 15, 2015 200,000 .75 .06 113,365 Date issued Number of Exercise December 18, Fair Value at issuance June 12, 2015 1,744,186 .43 .06 570,248 August 2015 Debentures August 24, 2015 6,666,667 .06 321,757 September 18, 2015 588,235 .17 82,804 October 28, 2015 4,166,667 .12 363,306 November 16, 2015 1,785,714 .07 92,798 November 23, 2015 2,083,333 .06 68,988 November 30,2015 2,500,000 .05 81,988 December 7, 2015 6,250,000 .02 163,382 December 17, 2015 10,000,000 .02 76,376 Directors January 5, 2015 129,305 .40 39,901 January 30, 2015 129,917 .40 39,916 February 2, 2015 237,778 .22 16,619 March 4, 2016 1,250,000 .02 10,000 March 10, 2016 1,250,000 .02 10,000 March 15, 2016 1,250,000 .02 10,000 March 15, 2016 1,250,000 .02 10,000 March 15, 2016 125,000 .02 1,000 March 15, 2016 125,000 .02 1,000 April 20, 2016 1,041,663 .02 4,000 June 8, 2016 5,000,000 .01 4,425 June 8, 2016 2,691,250 .01 2,381 June 8, 2016 1,500,000 .01 1,327 June 8, 2016 3,343,750 .01 2,959 Other Agreements December 18, 2015 4,000,000 .50 76,000 April 13, 2016 500,000 .03 3,869 May 5, 2016 590,625 .01 3,477 June 8, 2016 2,678,571 .01 2,265 Total 69,757,748 $ 5,256,064

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transaction [Line Items]
Schedule of notes payable	Notes payable consists of: June 30, December 31, Southwest Farms (Note 3) $ 3,617,548 $ 3,645,163 East West Secured Development (Note 3) 515,633 675,093 Washington Property (Note 6) 199,000 208,605 Investment funds (Note 8) 1,257,500 — Financial Freedom, LLC 62,500 — 5,652,181 4,528,861 Less discounts (323,924 ) — Plus premium 10,000 16,667 5,338,257 4,545,528 Less current maturities 1,294,051 256,897 $ 4,044,206 $ 4,288,631
Schedule of maturities on notes payable	Maturities on Notes Payable are as follows: Years ending: December 31, 2016 $ 1,045,988 December 31, 2017 287,643 December 31, 2018 4,004,626 $ 5,338,257
Director [Member]
Related Party Transaction [Line Items]
Schedule of notes payable	Notes payable, related parties, consists of: June 30, December 31, Directors Notes $ 289,866 $ — Less discounts (12,000 ) 277,866 Less current maturities (277,866 ) $ — $
Schedule of maturities on notes payable	Maturities on Notes payable, related parties, are as follows: Years ending: December 31, 2016 $ 39,166 December 31, 2017 250,700 $ 289,866

SHARE BASED AWARDS, RESTRICTE24

SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSUs) (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of activity related to RSUs	A summary of the activity related to RSUs for the three months ended June 30, 2016 and 2015 is presented below: Restricted stock units (RSU’s) Total shares Grant date fair RSU’s non-vested at January 1, 2016 152,823 $0.51 - $1.88 RSU’s granted 14,285,714 $0.007 RSU’s vested (125,431 ) $0.51- $1.88 RSU’s forfeited — $— RSU’s non-vested June 30, 2016 14,313,106 $0.51 - $1.88 Restricted stock units (RSU’s) Total shares Grant date fair RSU’s non-vested at January 1, 2015 199,584 $10.70 RSU’s granted 177,633 $1.88 - $6.70 RSU’s vested (135,135 ) $1.88 - $6.70 RSU’s forfeited — $— RSU’s non-vested June 30, 2015 242,082 $1.88 - $11.00
Schedule of expense related to restricted stock	A summary of the expense related to restricted stock, RSUs and stock option awards for the three and six months ended June 30, 2016 is presented below: Three months ended Six months ended Restricted Stock $ — $ 390,000 RSU’s 38,144 192,192 Stock options — — Common stock 30,281 62,331 Total $ 68,425 $ 644,523

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of material contractual lease commitments	The following table is a summary of our material contractual lease commitments as of June 30, 2016: Year Ending Office Rent Retail/Cultivation 2016 $ 22,458 $ 44,400 2017 — 88,800 2018 — 88,800 2019 — 29,600 Total $ 22,458 $ 251,600

BUSINESS ORGANIZATION, NATURE26

BUSINESS ORGANIZATION, NATURE OF OPERATIONS (Details Narrative)	6 Months Ended
	Jun. 30, 2016aNumbershares	Mar. 31, 2016shares	Dec. 31, 2015ashares
Number of common shares authorized (in shares) | shares	10,000,000,000	400,000,000	10,000,000,000
Vaporfection International Inc [Member]
Number of subsidiaries | Number	5
EWSD 1, LLC [Member]
Area of land aquired | a	320		320

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 28,390	$ 9,410
Derivative liability	2,159,066	19,246,594
Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	28,390	9,410
Total assets	28,390	9,410
Warrant liability	5,552	940,000
Derivative liability	2,159,066	19,246,594
Total liabilities	2,164,618	20,186,594
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	10,825	5,629
Total assets	10,825	5,629
Derivative liability
Total liabilities
Recurring [Member] | Quoted Prices for Similar Assets or Liabilities in Active Markets (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities
Derivative liability
Total liabilities
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	17,565	3,781
Total assets	17,565	3,781
Warrant liability	5,552	940,000
Derivative liability	2,159,066	19,246,594
Total liabilities	$ 2,164,618	$ 20,186,594

Disclosure - SUMMARY OF SIGNIFI

Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Sep. 18, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance				$ 20,186,594
Initial recognition of conversion feature				4,932,162
Change in fair value of conversion feature				(18,819,893)
Reclassified to equity upon conversion				(3,199,797)
Additions to warrant liability				62,673
Change in fair value of warrant liability	$ 38,000	$ (441,148)	$ 0	(997,121)
Ending Balance		$ 2,164,618		$ 2,164,618

Disclosure - SUMMARY OF SIGNI29

Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)	6 Months Ended
	Jun. 30, 2016
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Machinery [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Building [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years
Building [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Life	39 years

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)a$ / sharesshares	Aug. 24, 2015shares	Jun. 30, 2016USD ($)a$ / sharesshares	Jun. 30, 2015USD ($)shares	Jun. 30, 2016USD ($)a$ / sharesshares	Jun. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)a	Oct. 20, 2016USD ($)	Apr. 13, 2016USD ($)$ / shares	Mar. 31, 2015$ / sharesshares
Net income				$ 6,548,570	$ (11,394,908)	$ 7,796,372	$ (15,828,587)	$ 50,500,000
Cash flow from operations						(2,637,202)	(4,166,781)	9,600,000
Working capital						19,700,000		32,900,000
FDIC insured amount		$ 250,000		250,000		250,000
Advertising and marketing costs				$ 0	$ 319,000	$ 0	$ 749,000
Number of warrants outstanding | shares		67,466,000		67,466,000		67,466,000
Carrying amount		$ 5,652,181		$ 5,652,181		$ 5,652,181		$ 4,528,861
Additional funding						1,266,000
Additional funding received in witholdings						$ 40,000
Warrant [Member]
Number of warrants outstanding | shares		67,466,000		67,466,000	338,000	67,466,000	338,000
Series A Preferred Stock [Member]
Preferred stock, outstanding | shares			1,000,000								3,000,000
Preferred stock, par value | $ / shares											$ 0.001
Number of shares common shares issued on conversion | shares											15,000,000
Number of shares cancelled | shares			2,000,000
EWSD 1, LLC [Member]
Area of land | a		320		320		320		320
Convertible Debentures [Member]
Carrying amount		$ 7,309,000		$ 7,309,000	$ 4,656,000	$ 7,309,000	$ 4,656,000
Conversion price (in dollars per share) | $ / shares		$ 0.75		$ 0.75		$ 0.75
Purchase Agreement [Member] | Convertible Debt [Member] | Accredited Investor [Member]
Principal amount										$ 225,000
Conversion price (in dollars per share) | $ / shares										$ 0.75
Sales Agreement [Member]
Standard contract term						5 years
Subsequent Event [Member]
Additional funding	$ 650,000					$ 1,266,000
Additional funding received in witholdings						40,000
Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Notes (EWSD I,LLC and Pueblo Agriculture Supply and Equipment, LLC ) [Member] | New Investor [Member]
Principal amount		$ 3,350,000		$ 3,350,000		3,350,000
Increase in cash amount		2,000,000
Debt outstanding amount		$ 650,000		$ 650,000		$ 650,000			$ 650,000

ASSET ACQUISITION (Details Narr

ASSET ACQUISITION (Details Narrative)	Dec. 18, 2015USD ($)a$ / sharesshares	Jul. 24, 2015USD ($)aNumber	Jun. 30, 2016USD ($)a	Dec. 31, 2015USD ($)
Escrow deposit | $			$ 10,000	$ 0
Growers Distributor Agreement [Member]
Acquisition date	Sep. 30, 2025
Folium Biosciences [Member] | Farming Agreement [Member]
Greenhouses build area	200,000
Greenhouses license to use	10
Folium Biosciences [Member] | Farming Agreement [Member] | Warrant [Member]
Gross profits from farming activities	50.00%
Warrant to purchase | shares	4,000,000
Warrants exercisable price | $ / shares	$ 0.50
Warrants exercisable	5 years
Warrants value | $	$ 76,000
Folium Biosciences [Member] | Growers Distributor Agreement [Member]
Area of real estate property	40
East West Secured Development, LLC [Member] | Growers Distributor Agreement [Member]
Area of real estate property	10
Southwest Farms [Member]
Area of real estate property		320
East West Secured Development, LLC [Member]
Business acquisition, percentage of equity interest		100.00%
Area of real estate property			320
Escrow deposit | $		$ 500,000
Royalty percentage on adjusted gross revenues		3.00%
Royalty payment period		3 years
Percentage of royalty payable in cash		50.00%
Percentage of royalty payable in common stock		50.00%
East West Secured Development, LLC [Member] | Secured Promissory Note [Member]
Royalty payment terms			The Company's future payments to Seller of a royalty of 3% of the adjusted gross revenue, if any, from operation of the Acquired Property (including sale of any portion of or interest in the Acquired Property less any applicable expenses) for the three-year period beginning on January 1, 2016. Such royalty payments shall be payable 50% in cash and 50% in Company common stock (the "Royalty Payment").
Principal amount | $		$ 3,670,000
Debt interest rate		5.00%
Debt instrument frequency description			Commencing on September 1, 2015 and continuing thereafter on the first day of each calendar month through and including July 1, 2018; and one final balloon payment of all unpaid principal and accrued but unpaid interest on August 1, 2018.
Debt Instrument, Payment Terms			The Note shall be payable by EWSD in thirty-five payments of principal and interest, which shall be calculated based upon an amortization period of thirty years
Amortization period of Debt instrument		30 years
Debt instrument frequency payments of principal and interest | Number		35
East West Secured Development, LLC [Member] | Unsecured Promissory Note [Member]
Acquisition date			Aug. 7, 2015
Principal amount | $		$ 830,000
Debt interest rate		6.00%
Debt instrument frequency description			Unsecured Note shall be payable by EWSD in thirty-five payments of principal and interest, which shall be calculated based upon an amortization period of thirty years
Debt Instrument, Payment Terms			Commencing on September 1, 2015 and continuing thereafter on the first day of each calendar month through and including July 1, 2018; and one final balloon payment of all unpaid principal and accrued but unpaid interest on August 1, 2018.
Amortization period of Debt instrument		30 years
Debt instrument frequency payments of principal and interest | Number		35

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Public Utilities, Inventory [Line Items]
Total inventory, net	$ 32,300	$ 150,823
Vaporizers and Accessories [Member]
Public Utilities, Inventory [Line Items]
Total inventory, net		81,934
CBD Oil [Member]
Public Utilities, Inventory [Line Items]
Total inventory, net	32,300	35,889
Light Bulbs for Cultivation Centers [Member]
Public Utilities, Inventory [Line Items]
Total inventory, net		$ 33,000

DISPENSARIES (Detail Narrative)

DISPENSARIES (Detail Narrative) - USD ($)	Dec. 09, 2015	Feb. 29, 2016	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Feb. 24, 2016	May 22, 2013
Ownership percentage								50.00%
Notes Issued				$ 700,000
Operating Agreement [Member]
Annual licensor fee				5.00%
Deferred costs				$ 270,000
Gross consideration paid for the assets and liabilities				150,000
Payments for other taxes				58,000
Proceeds from sale of assets				92,000
Sale of assets				$ 178,000
San Diego Sunrise, LLC [Member]
Ownership percentage				30.00%
Ownership percentage sold		70.00%
Cash proceeds from sale of ownership interests		$ 299,000
Sunrise Property Investments, LLC [Member]
Ownership percentage				50.00%		50.00%
Minimum voting percentage required for consolidation of financial position						50.00%
Income (loss) from equity method investments						$ 0
Sunrise Dispensary [Member]
Indirect ownership percentage through subsidiary							50.00%
Sunrise Delivery Agreement [Member]
Ownership percentage sold	70.00%
Loan provided for working capital	$ 60,000
Loan prepayment period	1 year
Additional advance provided				$ 10,000
Uncollectible loans wrote off				$ 70,000
New Operator Agreement [Member]
Agreement term				5 years
Agreement renewal term				5 years
License fee				10.00%
Real Estate Purchase Agreement [Member] | Land and Building [Member]
Real Estate, Purchase Price			$ 399,594
Notes Issued			249,000
Maturity date before default				Jan. 30, 2015
Assets held for resale			$ 0	$ 0
Debt instrument, extended maturity date				Apr. 1, 2017
Real Estate Purchase Agreement [Member] | Land and Building [Member] | Minimum [Member]
Debt interest rate			12.00%
Real Estate Purchase Agreement [Member] | Land and Building [Member] | Maximum [Member]
Debt interest rate			18.00%

VAPORFECTION INTERNATIONAL, I34

VAPORFECTION INTERNATIONAL, INC. (Details Narrative) - USD ($)	Mar. 28, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Sale of assets of the subsidiary				$ 35,000
Notes payable		$ 5,338,257		5,338,257		$ 4,545,528
Gain on sale of assets of subsidiary		$ 0	$ 0	5,498	$ 0
Vaporfection International Inc [Member]
Percentage of voting interests acquired						100.00%
Impairment loss on intangibles						$ 586,000
Goodwill impairment loss						1,260,000
Write down of assets						80,000
Inventory, fair value						$ 82,000
Sale of assets of the subsidiary	$ 70,000
Notes payable	$ 35,000
Debt interest rate	6.00%
Gain on sale of assets of subsidiary				$ 6,000

CONVERTIBLE NOTES PAYABLE AND35

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Number of warrants	69,757,748
Exercise price (in dollars per share)		$ 0.06
Fair Value at issuance	$ 5,256,064
Warrant Issued January 5, 2015 [Member] | Director [Member]
Number of warrants	129,305
Exercise price (in dollars per share)	$ 0.4
Fair Value at issuance	$ 39,901
Warrant Issued January 30, 2015 [Member] | Director [Member]
Number of warrants	129,917
Exercise price (in dollars per share)	$ 0.4
Fair Value at issuance	$ 39,916
Warrant Issued February 2, 2015 [Member] | Director [Member]
Number of warrants	237,778
Exercise price (in dollars per share)	$ 0.22
Fair Value at issuance	$ 16,619
Warrant Issued March 04, 2016 [Member] | Director [Member]
Number of warrants	1,250,000
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 10,000
Warrant Issued March 10, 2016 [Member] | Director [Member]
Number of warrants	1,250,000
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 10,000
Warrant Issued March 15, 2016 [Member] | Director [Member]
Number of warrants	1,250,000
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 10,000
Warrant Issued March 15, 2016 [Member] | Director [Member]
Number of warrants	1,250,000
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 10,000
Warrant Issued March 15, 2016 [Member] | Director [Member]
Number of warrants	125,000
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 1,000
Warrant Issued March 15, 2016 [Member] | Director [Member]
Number of warrants	125,000
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 1,000
Warrant Issued April 20, 2016 [Member] | Director [Member]
Number of warrants	1,041,663
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 4,000
Warrant Issued June 8, 2016 [Member] | Director [Member]
Number of warrants	5,000,000
Exercise price (in dollars per share)	$ 0.01
Fair Value at issuance	$ 4,425
Warrant Issued June 8, 2016 [Member] | Director [Member]
Number of warrants	2,691,250
Exercise price (in dollars per share)	$ 0.01
Fair Value at issuance	$ 2,381
Warrant Issued June 8, 2016 [Member] | Director [Member]
Number of warrants	1,500,000
Exercise price (in dollars per share)	$ 0.01
Fair Value at issuance	$ 1,327
Warrant Issued June 8, 2016 [Member] | Director [Member]
Number of warrants	3,343,750
Exercise price (in dollars per share)	$ 0.01
Fair Value at issuance	$ 2,959
Warrant Issued December 18, 2015 [Member] | Other Agreements [Member]
Number of warrants	4,000,000
Exercise price (in dollars per share)	$ 0.05
Fair Value at issuance	$ 76,000
Warrant Issued April 13, 2016 [Member] | Other Agreements [Member]
Number of warrants	500,000
Exercise price (in dollars per share)	$ 0.03
Fair Value at issuance	$ 3,869
Warrant Issued May 5, 2016 [Member] | Other Agreements [Member]
Number of warrants	590,625
Exercise price (in dollars per share)	$ 0.01
Fair Value at issuance	$ 3,477
Warrant Issued June 8, 2016 [Member] | Other Agreements [Member]
Number of warrants	2,678,571
Exercise price (in dollars per share)	$ 0.01
Fair Value at issuance	$ 2,265
July 2014 Modified Debentures | Warrant Issued January 30, 2015 [Member]
Number of warrants	40,552
Exercise price (in dollars per share)	$ 4.93
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 159,601
July 2014 Modified Debentures | Warrant Issued February 26, 2015 [Member]
Number of warrants	45,537
Exercise price (in dollars per share)	$ 2.2
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 79,904
July 2014 Modified Debentures | Warrant Issued March 13, 2015 [Member]
Number of warrants	21,151
Exercise price (in dollars per share)	$ 2.36
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 39,965
July 2014 Modified Debentures | Warrant Issued March 16, 2015 [Member]
Number of warrants	10,575
Exercise price (in dollars per share)	$ 2.36
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 19,981
July 2014 Modified Debentures | Warrant Issued March 20, 2015 [Member]
Number of warrants	41,946
Exercise price (in dollars per share)	$ 1.79
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 59,942
July 2014 Modified Debentures | Warrant Issued March 27, 2015 [Member]
Number of warrants	75,758
Exercise price (in dollars per share)	$ 1.98
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 119,888
July 2014 Modified Debentures | Warrant Issued April 2, 2015 [Member]
Number of warrants	60,386
Exercise price (in dollars per share)	$ 1.66
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 74,025
July 2014 Modified Debentures | Warrant Issued April 2, 2015 [Member]
Number of warrants	30,193
Exercise price (in dollars per share)	$ 1.66
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 37,012
July 2014 Modified Debentures | Warrant Issued April 10, 2015 [Member]
Number of warrants	107,914
Exercise price (in dollars per share)	$ 1.39
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 112,460
July 2014 Modified Debentures | Warrant Issued April 17, 2015 [Member]
Number of warrants	41,667
Exercise price (in dollars per share)	$ 1.2
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 37,680
July 2014 Modified Debentures | Warrant Issued April 24, 2015 [Member]
Number of warrants	127,119
Exercise price (in dollars per share)	$ 1.18
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 112,635
July 2014 Modified Debentures | Warrant Issued April 24, 2015 [Member]
Number of warrants	21,186
Exercise price (in dollars per share)	$ 1.18
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 18,772
July 2014 Modified Debentures | Warrant Issued May 1, 2015 [Member]
Number of warrants	156,250
Exercise price (in dollars per share)	$ 0.96
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 113,133
July 2014 Modified Debentures | Warrant Issued May 7, 2015 [Member]
Number of warrants	134,615
Exercise price (in dollars per share)	$ 0.78
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 79,234
July 2014 Modified Debentures | Warrant Issued May 8, 2015 [Member]
Number of warrants	42,000
Exercise price (in dollars per share)	$ 0.75
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 23,768
July 2014 Modified Debentures | Warrant Issued May 15, 2015 [Member]
Number of warrants	200,000
Exercise price (in dollars per share)	$ 0.75
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 113,365
July 2014 Modified Debentures | Warrant Issued May 22, 2015 [Member]
Number of warrants	250,000
Exercise price (in dollars per share)	$ 0.6
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 113,366
July 2014 Modified Debentures | Warrant Issued May 29, 2015 [Member]
Number of warrants	258,621
Exercise price (in dollars per share)	$ 0.58
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 112,537
July 2014 Modified Debentures | Warrant Issued June 5, 2015 [Member]
Number of warrants	288,462
Exercise price (in dollars per share)	$ 0.52
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 120,738
July 2014 Modified Debentures | Warrant Issued June 12, 2015 [Member]
Number of warrants	930,233
Exercise price (in dollars per share)	$ 0.43
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 303,246
July 2014 Modified Debentures | Warrant Issued June 19, 2015 [Member]
Number of warrants	3,448,276
Exercise price (in dollars per share)	$ 0.29
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 751,159
September 2014 Modified Debentures [Member] | Warrant Issued January 28, 2015 [Member]
Number of warrants	18,038
Exercise price (in dollars per share)	$ 5.54
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 80,156
September 2014 Modified Debentures [Member] | Warrant Issued February 13, 2015 [Member]
Number of warrants	57,870
Exercise price (in dollars per share)	$ 1.73
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 96,689
September 2014 Modified Debentures [Member] | Warrant Issued April 2, 2015 [Member]
Number of warrants	181,159
Exercise price (in dollars per share)	$ 1.66
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 222,109
September 2014 Modified Debentures [Member] | Warrant Issued April 24, 2015 [Member]
Number of warrants	90,579
Exercise price (in dollars per share)	$ 1.1
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 80,548
September 2014 Modified Debentures [Member] | Warrant Issued May 15, 2015 [Member]
Number of warrants	200,000
Exercise price (in dollars per share)	$ 0.75
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 113,365
September 2014 Modified Debentures [Member] | Warrant Issued June 12, 2015 [Member]
Number of warrants	1,744,186
Exercise price (in dollars per share)	$ 0.43
Re- price dated December 18, 2015	$ 0.06
Fair Value at issuance	$ 570,248
August 2015 Debentures [Member] | Warrant Issued August 24, 2015 [Member]
Number of warrants	6,666,667
Exercise price (in dollars per share)	$ 0.06
Fair Value at issuance	$ 321,757
August 2015 Debentures [Member] | Warrant Issued September 18, 2015 [Member]
Number of warrants	588,235
Exercise price (in dollars per share)	$ 0.17
Fair Value at issuance	$ 82,804
August 2015 Debentures [Member] | Warrant Issued October 28, 2015 [Member]
Number of warrants	4,166,667
Exercise price (in dollars per share)	$ 0.12
Fair Value at issuance	$ 363,306
August 2015 Debentures [Member] | Warrant Issued November 16, 2015 [Member]
Number of warrants	1,785,714
Exercise price (in dollars per share)	$ 0.07
Fair Value at issuance	$ 92,798
August 2015 Debentures [Member] | Warrant Issued November 23, 2015 [Member]
Number of warrants	2,083,333
Exercise price (in dollars per share)	$ 0.06
Fair Value at issuance	$ 68,988
August 2015 Debentures [Member] | Warrant Issued November 30,2015 [Member]
Number of warrants	2,500,000
Exercise price (in dollars per share)	$ 0.05
Fair Value at issuance	$ 81,988
August 2015 Debentures [Member] | Warrant Issued December 07, 2015 [Member]
Number of warrants	6,250,000
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 163,382
August 2015 Debentures [Member] | Warrant Issued December 17, 2015 [Member]
Number of warrants	10,000,000
Exercise price (in dollars per share)	$ 0.02
Fair Value at issuance	$ 76,376

CONVERTIBLE NOTES PAYABLE AND36

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details Narrative)

Apr. 13, 2016USD ($)$ / shares

Feb. 18, 2016USD ($)$ / shares

Apr. 17, 2015USD ($)$ / shares

Feb. 24, 2015USD ($)$ / shares

Jan. 30, 2015USD ($)$ / shares

Jan. 29, 2015USD ($)$ / shares

Sep. 19, 2014USD ($)$ / shares

Jul. 21, 2014USD ($)$ / shares

Mar. 31, 2016USD ($)

Mar. 31, 2015USD ($)$ / shares

Jul. 27, 2015$ / shares

Jun. 30, 2016USD ($)$ / shares

Jun. 30, 2015USD ($)$ / shares

Sep. 30, 2015$ / shares

Dec. 31, 2015USD ($)Number$ / shares

Sep. 19, 2015USD ($)

Aug. 20, 2015USD ($)

Aug. 14, 2015USD ($)

Feb. 27, 2015USD ($)

Percentage of lowest volume weighted average price of common stock

51.00%

51.00%

Fair value derivative liability

$ 4,932,000

$ 1,885,000

Share price (in dollars per share) | $ / shares

$ 0.0007

$ 0.74

Director [Member]

Principal amount

$ 150,000

Debt interest rate

8.00%

Conversion price (in dollars per share) | $ / shares

$ 1.83

Percentage of lowest volume weighted average price of common stock

51.00%

Fair value derivative liability

$ 132,175

Debt term

3 years

Convertible Debentures [Member]

Maturity date

Mar. 27, 2016

Fair value derivative liability

$ 4,082,000

$ 1,885,000

Gain on derivative liability

$ 8,880,000

$ 2,239,000

Warrant instrument grant agreement, description

The Modified Debentures also included a warrant instrument granting the Investor the right to purchase shares of common stock of the Company equal to the principal amount of the applicable Modified Debenture divided by a price equal to 120% of the last reported closing price of the common stock on the applicable closing date of the Modified Debenture, with a three year term.

Convertible Debentures [Member] | Director [Member]

Principal amount

$ 100,000

August 2015 Debentures [Member]

Description of conversion terms

All amounts are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price.

Description of conversion price terms

The conversion price is the lower of (a) $0.75, or (b) a 49% discount to the lowest daily VWAP (as reported by Bloomberg) of the Common Stock during the 30 trading days prior to the conversion date. The Fixed Conversion Price is subject to adjustment for stock splits, combinations or similar events. If the Company makes any subsequent equity sales (subject to certain exceptions), under which an effective price per share is lower than the Fixed Conversion Price, then the conversion price will be reset to equal such price.

Percentage of lowest volume weighted average price of common stock

51.00%

Fair value derivative liability

$ 11,205,000

Debt term

1 year

Valuation technique

Black Scholes pricing model

August 2015 Debentures [Member] | Minimum [Member]

Share price (in dollars per share) | $ / shares

$ 0.05

$ 0.03

Risk free interest rate

0.12%

0.20%

Expected volatility

106.38%

193.00%

Valuation technique

P2M26D

August 2015 Debentures [Member] | Maximum [Member]

Share price (in dollars per share) | $ / shares

$ 8.81

$ 0.10

Risk free interest rate

0.41%

0.70%

Expected volatility

196.78%

219.00%

Valuation technique

P1Y14D

Securities Purchase Agreement [Member] | Convertible Debentures [Member] | Accredited Investor [Member]

Principal amount

$ 420,000

Description of issue

Two tranches

Debt interest rate

10.00%

Conversion price (in dollars per share) | $ / shares

$ 0.75

Percentage of lowest volume weighted average price of common stock

40.00%

Debt term

1 year

Securities Purchase Agreement [Member] | September 2014 Debentures [Member]

Principal amount

$ 2,500,000

Description of issue

Two tranches.

Debt interest rate

5.00%

Maturity date

Sep. 19, 2015

Description of conversion terms

All amounts are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price.

Conversion price (in dollars per share) | $ / shares

$ 11.75

Description of conversion price terms

The Fixed Conversion Price is subject to adjustment for stock splits, combinations or similar events. If the Company makes any subsequent equity sales (subject to certain exceptions), under which an effective price per share is lower than the Fixed Conversion Price, then the conversion price will be reduced to equal such price.

Percentage of lowest volume weighted average price of common stock

70.00%

Securities Purchase Agreement [Member] | July 2014 Debentures [Member]

Principal amount

$ 3,500,000

Description of issue

Five tranches.

Debt interest rate

10.00%

Maturity date

Jul. 21, 2015

Description of conversion terms

All amounts are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price.

Conversion price (in dollars per share) | $ / shares

$ 11.75

Description of conversion price terms

The Fixed Conversion Price is subject to adjustment for stock splits, combinations or similar events. If the Company makes any subsequent equity sales (subject to certain exceptions), under which an effective price per share is lower than the Fixed Conversion Price, then the conversion price will be reduced to equal such price.

Percentage of lowest volume weighted average price of common stock

70.00%

Securities Purchase Agreement [Member] | August 2015 Debentures [Member]

Principal amount

$ 650,000

Securities Purchase Agreement [Member] | August 2015 Debentures [Member] | Accredited Investor [Member]

Principal amount

$ 895,000

$ 2,434,143

$ 200,000

$ 1,500,000

$ 3,979,877

Debt interest rate

10.00%

Number of payments made | Number

11

Purchase Agreement [Member] | Convertible Debentures [Member] | Accredited Investor [Member]

Principal amount

$ 225,000

Debt interest rate

5.00%

Maturity date

Jul. 13, 2016

Conversion price (in dollars per share) | $ / shares

$ 0.75

Purchase Agreement [Member] | Convertible Debentures [Member] | Accredited Investor [Member]

Principal amount

$ 1,800,000

Description of issue

Seven Modified Closings

Modified Debenture Agreement [Member] | September 2014 Debentures [Member]

Principal amount

$ 1,300,000

$ 100,000

$ 100,000

Conversion price (in dollars per share) | $ / shares

$ 0.88

$ 5

$ 5

Description of conversion price terms

This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the previous $5 fixed conversion price.

This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the previous $5 fixed conversion price.

Percentage of lowest volume weighted average price of common stock

51.00%

51.00%

51.00%

Modified Debenture Agreement [Member] | July 2014 Debentures [Member]

Conversion price (in dollars per share) | $ / shares

$ 0.88

$ 1.83

Description of conversion price terms

This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the previous $1.83 fixed conversion price.

This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the previous $5 fixed conversion price.

Percentage of lowest volume weighted average price of common stock

51.00%

51.00%

Fair value derivative liability

$ 3,287,000

$ 2,720,000

Gain on derivative liability

$ 1,764,000

Modified Debenture Agreement [Member] | Convertible Debentures [Member] | Director [Member]

Principal amount

$ 200,000

Conversion price (in dollars per share) | $ / shares

$ 5

Description of conversion price terms

New fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the older fixed conversion price.

Percentage of lowest volume weighted average price of common stock

51.00%

Fair value derivative liability

$ 2,690,000

Gain on derivative liability

$ 1,072,000

CONVERTIBLE NOTES PAYABLE AND37

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details Narrative 1)	Mar. 22, 2016USD ($)	Mar. 18, 2016USD ($)	Feb. 18, 2016USD ($)$ / shares	Feb. 11, 2016USD ($)$ / shares	Dec. 28, 2015USD ($)	Oct. 14, 2015USD ($)Number	Jul. 10, 2015USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)Number	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Number	Jun. 30, 2015USD ($)	Feb. 10, 2016USD ($)	Dec. 31, 2015USD ($)
Percentage of volume weighted average price											51.00%	51.00%
Fair value derivative liability								$ 4,932,000		$ 1,885,000	$ 4,932,000	$ 1,885,000
Carrying amount								5,652,181			5,652,181			$ 4,528,861
Debt discount amortized								745,150		4,229,977	2,613,227	6,049,639
Increase/ decrease in face value of debt								1,885,000			1,885,000
July 2015 Debenture [Member]
Amount purchased from August 2015 Investor						$ 100,000
July 2015 Debenture [Member] | Accredited Investor [Member]
Principal amount							$ 500,000
Description of issue							Five weekly tranches between July 10 and August 15, 2015.
October 2015 Debentures [Member] | Service Provider [Member]
Principal amount						$ 2,000,000
Description of conversion						The service provider has agreed with the Company not to convert the October 2015 Debentures for any amount in excess of fees payable for services previously rendered to the Company at the time of conversion.
Number of debt | Number						7
Carrying amount								425,000			425,000
August 2014Promissory Note [Member] | Accredited Investor [Member] | Amendment and Restriction Agreement [Member]
Principal amount					$ 700,000
Debt interest rate					10.00%
Description of conversion					Convertible at a 40% discount to the lowest trading price of the Company’s common stock during the 30 consecutive prior trading days rather than at a 49% discount to the lowest ‘volume weighted-average price’ during the 30 consecutive prior trading days.
Amount of debt transferred to August 20 Investor					$ 390,000
Promissory Note [Member] | Accredited Investor [Member] | Note Purchase Agreement [Member]
Principal amount													$ 275,000
Debt interest rate				10.00%
Maturity date				Oct. 31, 2016
Conversion price (in dollars per share) | $ / shares				$ 0.75
Percentage of volume weighted average price				51.00%
Amount of commitment fee deducted				$ 25,000
Convertible Debentures [Member]
Maturity date									Mar. 27, 2016
Fair value derivative liability								4,082,000		$ 1,885,000	4,082,000	1,885,000
Gain on derivative liability											8,880,000	2,239,000
Unpaid principal									$ 9,600
Debt discount amortized											1,868,000	$ 1,820,000
Increase/ decrease in face value of debt								2,302,000			2,302,000
Financing cost								525,000			$ 525,000
Convertible Debentures [Member] | Accredited Investor [Member] | Securities Purchase Agreement [Member]
Principal amount			$ 420,000
Description of issue			Two tranches
Debt interest rate			10.00%
Conversion price (in dollars per share) | $ / shares			$ 0.75
Percentage of volume weighted average price			40.00%
Debt term			1 year
Proceeds from debt	$ 85,000	$ 125,000	$ 210,000
Percentage of financing fee			5.00%
Additonal Convertible Debt [Member]
Principal amount									$ 122,084
Maturity date									Aug. 1, 2016
Number of convertible debt issued | Number									5
Convertible Debt [Member]
Maturity date											Jul. 10, 2015
Debt outstanding amount								225,700			$ 225,700
Convertible Debt [Member]
Principal amount								$ 1,260,000			$ 1,260,000
Maturity date											Oct. 31, 2016
Number of convertible debt issued | Number											13

CONVERTIBLE NOTES PAYABLE AND38

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details Narrative 2) - USD ($)	Apr. 13, 2016	Mar. 15, 2016	Mar. 14, 2016	Mar. 10, 2016	Mar. 04, 2016	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Issue discount						$ 745,150		$ 4,229,977		$ 2,613,227	$ 6,049,639
Exercise price (in dollars per share)												$ 0.06
Value of shares issued										5,256,064
Principal amount converted										1,904,000	4,000,000
Accrued interest converted										$ 14,000	$ 27,000
Debt conversion converted instrument shares issued										2,648,938,000	12,383,229
Share price (in dollars per share)						$ 0.0007		$ 0.74		$ 0.0007	$ 0.74
Percentage of volume weighted average price										51.00%	51.00%
Fair value derivative liability						$ 4,932,000		$ 1,885,000		$ 4,932,000	$ 1,885,000
Increase/ decrease in face value of debt						1,885,000				1,885,000
Financing costs						544,736		1,774,750		3,060,579	2,299,632
Change in fair value of derivative liabilities						9,940,307		814,213		18,819,893	3,053,071
Total financing costs										3,061,000
Conversion date fair value reclassified to equity										3,200,000	1,160,000
Amortization expense						$ 2,086,000		6,050,000
Excess amount face amount classfied as financing costs										$ 2,627,000
Director [Member]
Principal amount									$ 150,000
Debt term									3 years
Conversion price (in dollars per share)									$ 1.83
Debt interest rate									8.00%
Percentage of volume weighted average price									51.00%
Fair value derivative liability									$ 132,175
Director [Member] | Warrant [Member]
Exercise price (in dollars per share)						$ 0.02				$ 0.02
Annual risk-free rate										0.93%
Estimated term										3 years
Expected volatility										172.00%
Value of shares issued										$ 42,000
First Promissory Note OID [Member]
Principal amount			$ 125,000
Initial principal balance			140,000
First Promissory Note OID [Member] | Note Purchase Agreement [Member] | Accredited Investor [Member]
Principal amount			$ 140,000
Debt term			6 months
Issue discount			$ 12,500
Legal fees			$ 5,000
Debt maturity date			Sep. 14, 2016
Second Promissory Note OID [Member]
Principal amount			$ 125,000
Initial principal balance			137,500
Second Promissory Note OID [Member] | Note Purchase Agreement [Member] | Accredited Investor [Member]
Principal amount			$ 137,500
Debt term			6 months
Issue discount			$ 12,500
Legal fees			2,500
Carried transaction expense amount			$ 2,500
Subordinated Convertible Promissory Notes Convertible [Member] | Director [Member]
Principal amount		$ 25,000		$ 25,000	$ 25,000
Debt term		3 years		3 years	3 years
Conversion price (in dollars per share)		$ 0.01		$ 0.01	$ 0.01
Debt interest rate		8.00%		8.00%	8.00%
Convertible Debt [Member]
Issue discount										1,868,000	1,820,000
Fair value derivative liability						$ 4,082,000		$ 1,885,000		4,082,000	$ 1,885,000
Increase/ decrease in face value of debt						$ 2,302,000				$ 2,302,000
Debt maturity date							Mar. 27, 2016
Convertible Debt [Member] | Director [Member]
Principal amount									$ 100,000
Convertible Debt [Member] | Purchase Agreement [Member]
Proceeds from equity capital	$ 1,500,000
Convertible Debt [Member] | Purchase Agreement [Member] | Accredited Investor [Member]
Principal amount	$ 225,000
Conversion price (in dollars per share)	$ 0.75
Debt interest rate	5.00%
Debt maturity date	Jul. 13, 2016
Debt discount	49.00%

CONVERTIBLE NOTES PAYABLE AND39

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details Narrative 3) - USD ($)

Jun. 30, 2016

Jun. 22, 2016

Jun. 14, 2016

May 20, 2016

May 13, 2016

Sep. 18, 2015

Sep. 19, 2014

Jul. 21, 2014

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2016

Jun. 30, 2015

Dec. 31, 2015

Jul. 08, 2016

Issue discount

$ 745,150

$ 4,229,977

$ 2,613,227

$ 6,049,639

Percentage of lowest volume weighted average price of common stock

51.00%

51.00%

Amount of additional fair value recognized as financing expense

$ 38,000

$ (441,148)

$ 0

$ (997,121)

Class of warrant or right, exercised

2,292,000

Proceeds from warrant exercises

$ 137,510

Class of warrant or right, average exercise price (in dollars per share)

$ 0.06

Warrants to purchase common stock outstanding

67,466,000

67,466,000

67,466,000

Warrants outstanding with not sufficient authorized shares

53,970,000

Warrants fair value with not sufficient authorized shares

6,000

Equity Purchase Agreement [Member] | Accredited Investor [Member]

Principal amount

$ 100,000

$ 100,000

$ 100,000

Description of registration statement

Common stock to the Investor at a 20% discount to lowest traded price over the prior 10 trading days for up to the higher of $50,000 or 300% of the average daily trading volume over the previous 10 trading days, for up to an aggregate of $5,000,000 in aggregates “puts”.

First Convertible Debentures [Member]

Principal amount

$ 50,000

Debt maturity date

Jul. 20, 2016

Debt interest rate

10.00%

Percentage of lowest volume weighted average price of common stock

40.00%

Conversion price (in dollars per share)

$ 0.75

Description of conversion terms

The Notes are convertible at any time, in whole or in part, at the option of the holders into shares of the common stock of the Company at a conversion price that is the lower of (a) $0.75, or (b) a 40% discount to the lowest traded price of the common stock of the Company during the 20 trading days prior to the conversion date.

Second Convertible Debentures [Member]

Principal amount

$ 50,000

Debt maturity date

Jul. 13, 2016

Debt interest rate

10.00%

Percentage of lowest volume weighted average price of common stock

40.00%

Conversion price (in dollars per share)

$ 0.75

Description of conversion terms

The Notes are convertible at any time, in whole or in part, at the option of the holders into shares of the common stock of the Company at a conversion price that is the lower of (a) $0.75, or (b) a 40% discount to the lowest traded price of the common stock of the Company during the 20 trading days prior to the conversion date.

Convertible Bridge Debentures [Member] | Securities Purchase Agreement [Member] | Accredited Investor [Member]

Principal amount

$ 240,000

Debt interest rate

10.00%

Percentage of lowest volume weighted average price of common stock

40.00%

Conversion price (in dollars per share)

$ 0.75

Description of conversion terms

Each of the debentures are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price that is the lower of (a) $0.75, or (b) a 40% discount to the lowest traded price of the Company’s common stock during the 30 trading days prior to the conversion date.

Description of issue

Two tranches.

First Convertible Bridge Debentures [Member] | Securities Purchase Agreement [Member] | Accredited Investor [Member]

Principal amount

$ 120,000

Second Convertible Bridge Debentures [Member] | Securities Purchase Agreement [Member] | Accredited Investor [Member]

Principal amount

$ 120,000

Additional Convertible Bridge Debentures [Member] | Securities Purchase Agreement [Member] | Accredited Investor [Member]

Principal amount

$ 10,000

Debt interest rate

10.00%

Description of conversion terms

The debenture is convertible at any time, in whole or in part, at the option of the holder into shares of the Company’s common stock at a conversion price that is the lower of (a) $0.75, or (b) a 40% discount to the lowest traded price of the Company’s common stock during the 30 trading days prior to the conversion date.

Convertible Debentures [Member] | Securities Purchase Agreement [Member] | Accredited Investor [Member]

Principal amount

$ 1,500,000

$ 1,500,000

$ 1,500,000

Debt interest rate

10.00%

10.00%

10.00%

Percentage of lowest volume weighted average price of common stock

40.00%

Conversion price (in dollars per share)

$ 0.75

$ 0.75

$ 0.75

Description of conversion terms

Each of the debentures are convertible at any time into shares of common stock of the Company, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price that is the lower of (a) $0.75, or (b) a 40% discount to the lowest traded price of the Company’s common stock during the 30 trading days prior to the conversion date.

Description of issue

Six tranches.

Proceds from issuance of debt

$ 902,000

Payment to accredited investor

40,000

Payment to accredited investor per tranche

10,000

Convertible Debentures [Member] | Securities Purchase Agreement [Member] | Accredited Investor [Member] | Subsequent Event [Member]

Principal amount

1,266,000

$ 1,266,000

$ 1,266,000

Convertible Debentures (Trench 1) [Member] | Securities Purchase Agreement [Member] | Accredited Investor [Member]

Principal amount

$ 125,000

$ 125,000

$ 125,000

September 2014 Debentures [Member]

Warrants to purchase shares common stock

2,291,832

Percentage reduction of exercise price of warrants to purchase share of common stock

6.00%

September 2014 Debentures [Member] | Securities Purchase Agreement [Member]

Principal amount

$ 2,500,000

Debt maturity date

Sep. 19, 2015

Debt interest rate

5.00%

Percentage of lowest volume weighted average price of common stock

70.00%

Conversion price (in dollars per share)

$ 11.75

Description of conversion terms

All amounts are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price.

Description of issue

Two tranches.

July 2014 Debentures [Member]

Warrants to purchase shares common stock

6,332,441

Percentage reduction of exercise price of warrants to purchase share of common stock

6.00%

July 2014 Debentures [Member] | Securities Purchase Agreement [Member]

Principal amount

$ 3,500,000

Debt maturity date

Jul. 21, 2015

Debt interest rate

10.00%

Percentage of lowest volume weighted average price of common stock

70.00%

Conversion price (in dollars per share)

$ 11.75

Description of conversion terms

All amounts are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price.

Description of issue

Five tranches.

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Notes payable gross	$ 5,652,181	$ 4,528,861
Less discounts	(323,924)	0
Plus premium	10,000	16,667
Notes payable total	5,338,257	4,545,528
Less current maturities	1,294,051	256,897
Notes payable noncurrent	4,044,206	4,288,631
Southwest Farms [Member]
Short-term Debt [Line Items]
Notes payable gross	3,617,548	3,645,163
East West Secured Development [Member]
Short-term Debt [Line Items]
Notes payable gross	515,633	675,093
Washington Property [Member]
Short-term Debt [Line Items]
Notes payable gross	199,000	$ 208,605
Investment funds [Member]
Short-term Debt [Line Items]
Notes payable gross	1,257,500
Financial Freedom, LLC [Member]
Short-term Debt [Line Items]
Notes payable gross	$ 62,500

NOTES PAYABLE (Details 1)

NOTES PAYABLE (Details 1)	Jun. 30, 2016USD ($)
Years ending:
December 31, 2016	$ 1,045,988
December 31, 2017	287,643
December 31, 2018	4,004,626
Notes payable	5,338,257
Promissory Note [Member] | Directors [Member]
Years ending:
December 31, 2016	39,166
December 31, 2017	250,700
Notes payable	$ 289,866

NOTES PAYABLE (Details 2)

NOTES PAYABLE (Details 2) - USD ($)	Jun. 30, 2016	Jun. 08, 2016	Dec. 31, 2015
Directors Notes	$ 5,652,181		$ 4,528,861
Debt discount	12,000		0
Less current maturities	277,866		$ 0
Promissory Note [Member] | Directors [Member]
Directors Notes	289,867
Debt discount	(12,000)	$ 12,000
Net	277,866	$ 250,700
Less current maturities	(277,866)
Noncurrent

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative)	Jun. 08, 2016USD ($)$ / shares	May 20, 2016USD ($)Number	May 06, 2016USD ($)	Apr. 21, 2016USD ($)	Apr. 06, 2016USD ($)shares	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)$ / shares
Debt discount amortized						$ 745,150	$ 4,229,977	$ 2,613,227	$ 6,049,639
Percentage of lowest volume weighted average price of common stock								51.00%	51.00%
Debt premium						10,000		$ 10,000		$ 16,667
Warrant exercise price (in dollars per shre) | $ / shares										$ 0.06
Debt discount						12,000		12,000		$ 0
Promissory Note [Member] | Directors [Member]
Principal amount	$ 250,700					277,866		277,866
Debt interest rate	8.00%
Debt term	6 months
Percentage of warrant issued on face amount	51.00%
Warrant exercise price (in dollars per shre) | $ / shares	$ 0.01
Debt discount	$ 12,000					$ (12,000)		$ (12,000)
Warrant fair value	$ 12,000
Annual risk-free rate	0.93%
Estimated term	3 years
Expected volatility	172.00%
Convertible Promissory Note [Member] | Investor [Member] | Securities Purchase Agreement [Member]
Principal amount		$ 1,242,500
Debt interest rate		10.00%
Maturity date		Jul. 20, 2017
Debt discount amortized		$ 112,500
Debt issuance cost		5,000
Proceeds from issuance of debt		125,000
Broker fees		6,250
Eight Convertible Promissory Note [Member] | Investor [Member] | Securities Purchase Agreement [Member]
Principal amount		$ 125,000
Number of convertible notes issued | Number		8
Monthly debt repayment		$ 124,250
Description of debt outstanding		The Company has a right to prepay the total outstanding balance of the Note at any time (so long as it is not in default under the Note) in cash equal to 125% of the outstanding balance of the Note. Furthermore, for a period of sixty days from the date of entry into the Note, a third party has the right to prepay the outstanding balance of the Note in cash equal to 130% of the outstanding balance of the Note.
Description of conversion price terms		The conversion price shall be 50% of the lowest closing bid price during the twenty trading days immediately preceding the conversion.
Percentage of lowest volume weighted average price of common stock		22.00%
Percentage of shares reserve		300.00%
Description of shares reserve outstanding		(a) no event of default under the Note has occurred; (b) the average daily dollar volume of the Common Stock on its principal market for the twenty (20) trading days is greater than $55,000.00; (c) the market capitalization of the Common Stock on the date of the occurrence is greater than $3,000,000.00; and (d) the share reserve described below remains in place at the required thresholds.
Promissory Note [Member]
Principal amount					$ 85,000
Debt interest rate					0.00%
Debt premium					$ 2,500
Repayment of debt			$ 47,500	$ 40,000
Debt extension maturity payment					$ 2,500
Promissory Note [Member] | Restricted Common Stock [Member]
Number of shares issued | shares					600,000

SHARE BASED AWARDS, RESTRICTE44

SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSU) (Details Narrative) - USD ($)	Jun. 08, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2016
Value of share issued					$ 96,015
Share based compensation expense		$ 13,000
Maximum number of shares available for grant		2,761,000			2,761,000
2014 Equity Incentive Plan [Member]
Maximum number of shares available for grant	125,000,000
Director [Member]
Compensation				$ 15,000
Number of shares issued			975,000	325,000
Share based compensation expense			$ 9,750
Chairman [Member]
Compensation			$ 89,000
Number of shares issued	89,200		2,230,000
Additional number of shares issued	6,027,000
Value of share issued	$ 8,000

SHARE BASED AWARDS, RESTRICTE45

SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSU) (Details) - Restricted Stock Units (RSU's) [Member] - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Balance at beginning	152,823	199,584
Granted	14,285,714	177,633
Vested	(125,431)	(135,135)
Forfeited
Balance at end	14,313,106	242,082
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Balance at beginning		$ 10.7
Granted	$ 0.007
Forfeited
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Balance at beginning	0.51
Granted		1.88
Vested	0.51	1.88
Balance at end	0.51	1.88
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Balance at beginning	1.88
Granted		6.70
Vested	1.88	6.70
Balance at end	$ 1.88	$ 11

SHARE BASED AWARDS, RESTRICTE46

SHARE BASED AWARDS, RESTRICTED STOCK AND RESTRICTED STOCK UNITS (RSU) (Details 1) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Total share based compensation	$ 68,425	$ 644,523	$ 4,292,209
Restricted Stock [Member]
Total share based compensation		390,000
Restricted Stock Units (RSU's) [Member]
Total share based compensation	38,144	192,192
Stock Options [Member]
Total share based compensation
Common Stock [Member]
Total share based compensation	$ 30,281	$ 62,331

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Director [Member]
Principal amount		$ 150,000
Convertible Debt [Member] | Director [Member]
Principal amount		100,000
Convertible Note Two [Member] | Director Two [Member]
Principal amount		$ 50,000
Convertible Note Three [Member] | Director [Member]
Principal amount	$ 75,000
Convertible Note Three [Member] | Director Two [Member]
Principal amount	25,000
Convertible Note Five [Member] | Other Two Directors [Member]
Principal amount	$ 2,500

COMMITMENTS AND CONTINGENCIES48

COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2016USD ($)
Office Rent [Member]
Property, Plant and Equipment [Line Items]
2,016	$ 22,458
2,017
2,018
2,019
Total	22,458
Retail/Cultivation Facility Lease [Member]
Property, Plant and Equipment [Line Items]
2,016	44,400
2,017	88,800
2,018	88,800
2,019	29,600
Total	$ 251,600

COMMITMENTS AND CONTINGENCIES49

COMMITMENTS AND CONTINGENCIES (Details Narrative)

Sep. 16, 2016USD ($)

Sep. 08, 2016USD ($)

Aug. 31, 2016USD ($)

Mar. 01, 2016USD ($)shares

Dec. 31, 2015USD ($)a$ / sharesshares

Dec. 26, 2014USD ($)

Jun. 06, 2014shares

Nov. 19, 2013USD ($)

Aug. 01, 2011USD ($)

Jan. 31, 2016USD ($)

Apr. 30, 2015USD ($)

Jun. 30, 2016USD ($)a

Jun. 30, 2015USD ($)

Jun. 30, 2016USD ($)ashares

Jun. 30, 2016USD ($)a

May 31, 2016USD ($)shares

Jun. 30, 2015USD ($)

Jun. 17, 2016USD ($)a

May 22, 2013USD ($)

Rent expenses

$ 23,000

$ 66,000

$ 376,000

$ 110,000

Ownership percentage

50.00%

Investment owned

$ 4,100,000

Cash payment to a settlement

$ 1,850,000

Number of shares issued to the settlement escrow account | shares

52,000

2,300,000

Payment for settlement escrow account

$ 150,000

Fair value of settlement escrow account

$ 2,000,000

300,000

Shares issued price per share (in dollars per share) | $ / shares

$ 0.03

Deposits in escrow

$ 0

$ 10,000

10,000

$ 10,000

Insurers [Member]

Cash payment to a settlement

$ 1,700,000

Bruce Bedrick [Member]

Number of shares issued to the settlement escrow account | shares

300,000

Mehdizadeh [Member]

Number of shares issued to the settlement escrow account | shares

2,000,000

Consulting Agreements (Corporate Financial Advisory Services) ( [Member]

Number of shares issued for services | shares

1,500,000

Agreement term

12 months

Agreement retainer fees

$ 3,500

Additional number of shares issued for services (Quarterly Basis) | shares

375,000

Modified Consulting Agreements (Marketing & PR Services) ( [Member]

Agreement service paid, per month

$ 15,000

Number of shares issued for services | shares

5,000

Description of extension agreement term

Subsequently extended through August 30, 2016.

Consulting Agreements (Marketing & PR Services) ( [Member]

Agreement service paid, per month

$ 25,000

Number of shares issued for services | shares

5,000

Agreement term

6 months

Subsequent Event [Member] | Litigation Case Los Angeles Lease [Member]

Claims damages

$ 29,977

West Hollywood, California [Member]

Rent expenses

$ 14,828

$ 7,486

Lease expiration date

Jun. 30, 2017

Sublease term

18 months

Litigation damages awarded

$ 374,402

Litigation Case Merritts Action [Member] | Subsequent Event [Member]

Litigation settlement

$ 135,000

West Sunset Blvd [Member]

Claims damages

$ 300,000

West Sunset Blvd [Member] | Subsequent Event [Member]

Litigation damages awarded

$ 374,402

EWSD 1, LLC [Member]

Area of land | a

320

320

320

320

EWSD 1, LLC [Member] | Acquisition Agreement [Member] | Tammy J. Sciumbato and Donnie J. Sciumbato [Member]

Investment owned

$ 650,000

Area of land | a

116

Deposits in escrow

$ 10,000

Medvend And Shareholder Defendants [Member]

Litigation damages awarded

$ 4,550,000

PVM International, Inc. [Member] | Medvend PSA [Member]

Shares repurchased during the period | shares

30,000

Medbox, Inc. [Member]

Cash payment to a settlement

$ 150,000

Number of shares issued to the settlement escrow account | shares

2,000,000

Medicine Dispensing Systems [Member] | Mehdizadeh [Member]

Plaintiff past due balance

$ 550,000

Claims damages

$ 500,000

SUBSEQUENT EVENTS (Detail Narra

SUBSEQUENT EVENTS (Detail Narrative) - USD ($)

Oct. 10, 2016

Oct. 03, 2016

Sep. 30, 2016

Aug. 03, 2016

Mar. 14, 2016

Oct. 30, 2016

Jun. 30, 2016

Dec. 15, 2016

Nov. 15, 2016

Nov. 01, 2016

Oct. 20, 2016

Oct. 17, 2016

Oct. 01, 2016

Sep. 23, 2016

Sep. 22, 2016

Additional funding

$ 1,266,000

Additional funding received in witholdings

40,000

First Promissory Note OID [Member]

Principal amount

$ 125,000

Note Purchase Agreement [Member] | First Promissory Note OID [Member] | Accredited Investor [Member]

Principal amount

$ 140,000

Debt maturity date

Sep. 14, 2016

Subsequent Event [Member]

Additional funding

$ 650,000

1,266,000

Additional funding received in witholdings

40,000

Subsequent Event [Member] | Note Purchase Agreement [Member] | Convertible Promissory Note [Member] | Accredited Investor [Member]

Principal amount

$ 53,000

Debt interest rate

5.00%

Amount of commitment fee deducted

$ 3,000

Debt maturity date

Apr. 30, 2017

Description of conversion price terms

At any time or from time to time, the Investor may convert the Note, in whole or in part, into shares of the Company's common stock at a conversion price that is the lower of (a) $0.75, or (b) 51% of the lowest volume weighted average price for the 30 consecutive trading days prior to the conversion date.

Subsequent Event [Member] | Note Purchase Agreement [Member] | First Promissory Note OID [Member] | Accredited Investor [Member]

Debt instrument default amount

$ 147,217

$ 140,000

Debt default interest rate

22.00%

Debt default payment based on outstanding balance

125.00%

Mandatory default outstanding balance increased

$ 184,022

Subsequent Event [Member] | Subordination Agreement [Member] | EWSD 1, LLC [Member] | Junior Lender [Member]

Agreement terms

Junior Lender may not increase the principal amount of indebtedness pursuant to the Securities Purchase Agreement beyond $1,500,000.

Subsequent Event [Member] | Second Investor Letter Agreement [Member] | Second Investor [Member]

Agreement terms

(i) 20% of all distributed cash flow from PASE and EWSD to the Company after taking into account amounts owed to First Investor pursuant to Section 4.16 (Profit Sharing) of the EWSD SPA, and (ii) 20% of any money raised at either EWSD or PASE that is distributable or paid to the Company.

Subsequent Event [Member] | Second Investor Credit Agreements [Member] | Second Investor [Member]

Repayment of debt

$ 500,000

Percentage of debt premium

30.00%

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Notes [Member] | New Investor [Member]

Principal amount

$ 3,349,599

$ 910,000

Subscription amount

$ 1,431,401

Description of issue

Seven tranches.

Debt face value reduction

$ 700,000

Description of notes retirement terms

Upon retirement of the New Notes, the Company or its Subsidiaries or affiliates as applicable, shall assign twenty percent (20%) of their respective ownership interest in the Farm and Farm #2 to the Investor.

Debt interest rate

5.00%

Debt discount

40.00%

Debt original purchase price

$ 1,881,401

Debt original principal amount

2,633,961

Proceeds from issuance of debt

$ 1,983,599

Principal amount of note paid to investor

3,349,599

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Notes [Member] | New Investor [Member] | Maximum [Member]

Amount of overhead

120,000

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Notes [Member] | New Investor [Member] | Minimum [Member]

Amount of overhead

100,000

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Notes [Member] | New Investor [Member] | Revenue First Tranche [Member]

Revenues from legal matter

$ 1,000,000

Description of partial repayment

80% of the Combined Revenues, except to the extent the Combined Revenues are from a Legal Matter, in which event, the percentage shall be 50% (collectively, the "Combined Net Revenues").

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Notes [Member] | New Investor [Member] | Revenue Second Tranche [Member]

Revenues from legal matter

$ 1,000,000

Description of partial repayment

70% of the Combined Net Revenues, except to the extent the Combined Revenues are from a Legal Matter, in which event, the percentage shall be 50%.

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Notes [Member] | New Investor [Member] | Revenue Combined [Member]

Revenues from legal matter

$ 2,000,000

Description of partial repayment

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Note (First Tranche) [Member] | New Investor [Member]

Principal amount

$ 539,306

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Note (Second Tranche) [Member] | New Investor [Member]

Principal amount

$ 100,000

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Note (Third Tranche) [Member] | New Investor [Member]

Principal amount

$ 208,424

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Note (Fourth Tranche) [Member] | New Investor [Member]

Principal amount

$ 100,000

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Note (Fifth Tranche) [Member] | New Investor [Member]

Principal amount

$ 188,818

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Note (Six Tranche) [Member] | New Investor [Member]

Principal amount

$ 182,051

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Note (Seven Tranche) [Member] | New Investor [Member]

Principal amount

$ 665,000

Subsequent Event [Member] | Securities Purchase Agreement [Member] | 10% Convertible Notes [Member] | New Investor [Member]

Debt instrument cancelled

$ 1,431,401

Subsequent Event [Member] | Securities Purchase Agreement [Member] | New Notes (EWSD I,LLC and Pueblo Agriculture Supply and Equipment, LLC ) [Member] | New Investor [Member]

Principal amount

3,350,000

Debt outstanding amount

$ 650,000

$ 650,000

Subsequent Event [Member] | Exchange Agreement [Member] | First Investor [Member]

Agreement terms

Pursuant to which the First Investor agreed to exchange each of the Company’s outstanding debentures issued in favor of themselves (in the principal outstanding balance amount of approximately $5,882,242 (plus accrued interest) (the “ Original Debentures