Medican Enterprises Inc (OTCMKTS:MDCN) filed Form 10-Q wherein it revealed that it does not anticipate that the adoption of any recent accounting statement will have any substantial impact on its financial statements. It reported Selling, General and Administrative expenses came at $2.45 million for the March 31, 2015 period, much higher than $365,435 for the March 31, 2014 period. The sharp increase in S, G& A expenses can be attributed to accretion expense of $2.17 million pertaining to the outstanding convertible ‘Notes.’
The performance
Medican Enterprises reported a net loss of $1.08 billion for the March 31, 2015 quarter compared to a net loss of $30 million for the March 31, 2014 quarter. The increase in net loss can be attributed to the loss on re-assessment of derivative liability on changeable conversion pricing of company’s convertible debt.
Medican reported that in the weeks leading up to the quarter end date, MDCN stock prices were low compared to the quarter end market price. The change in share price resulted in a higher value of derivative liabilities, leading to a considerable charge of $1 billion to the statement of operations. The calculated conversion prices at quarter end were low.
The highlights
Medican Enterprises Inc (OTCMKTS:MDCN) issued almost 1.10 billion common shares pursuant to its directors’ compensation, legal and consulting services, valued at almost $470,000 during the quarter ended March 31, 2015. In the comparable period, the company issued 1 million shares as payment for management, consulting, and legal services, valued at $29 million.
On March 31, 2015, Medican reported cash of $9,398 compared to $229,755 cash/cash equivalents on March 31, 2014. During the quarter ended March 31, 2014, the Company obtained gross proceeds of $1.05 million pursuant to private placement.
In last trading session, the stock price of Medican declined more than 5% to close the session at $0.00190. The decline came at a share volume of 49.89 million compared to average share volume of 108.09 million.
