COMMITMENTS AND CONTINGENCIES
|3 Months Ended|
Mar. 31, 2019
|Notes to Financial Statements|
|NOTE 17. COMMITMENTS AND CONTINGENCIES||
California Operating Licenses
Effective January 1, 2018 the State of California allowed for adult use cannabis sales. California’s cannabis licensing system is being implemented in two phases. First, beginning January 1, 2018, temporary permits were to be issued and the state anticipated issuing annual licenses by May of 2018. Licensees were eligible for several 90 days extensions to their temporary licenses. Throughout 2018 Terra Tech subsidiaries operated compliantly and were eligible for all of the extensions.
As of April 2019, the State of California has issued provisional licenses for Blum San Leandro, Blum Oakland, Blum Santa Ana, and Black Oak Distribution. Provisional licenses are an intermediate step before the issuance of an annual license. Like annual licenses Provisional’s require the licensee to be Metrc compliant and are valid for 1 year, or until an annual license is issued. Provisional Licenses are typically issued if the licensee has submitted all appropriate documentation and documentation is in order but some aspect remains to be reviewed, most commonly CEQA approval at the local jurisdictional level. The Company now expects to receive an annual license at some later point this year once the remaining review process is completed by the state. Black Oak Cultivation remains a temporary licensee although he California Department of Food and Agriculture has advised the Company that the application has reached final review process. The company expects either a provisional or annual license will be issued in the third quarter.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef