Dogecoin Cash, Inc. (formerly Cannabis Sativa, Inc.): 2024 10‑K Deep Dive

Introduction

Dogecoin Cash, Inc. (ticker: CBDS), the company formerly known as Cannabis Sativa, Inc., operates a telemedicine platform for medical marijuana recommendations and holds dormant CBD/cannabis brands with plans for product licensing, plus a new foray into cryptocurrency by acquiring Dogecoin Cash (DOG) tokens. In FY2024 the company reported $802,704 in revenue (down 32% YoY) and a net loss of $1.78 million, significantly impacted by non‑cash write‑downs and digital asset activities.

Warren.AI 💰 3.5 / 10

This review unpacks the key takeaways from Items 1, 1A, 7, 7A and 8 of the FY2024 10‑K, outlines the upside/downside risk factors, and offers an Investment Score of 3.5/10.

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1. Business Overview (Item 1)

Corporate History & Structure

• Incorporated in Nevada in 2005 as Ultra Sun Corporation; rebranded to Cannabis Sativa, Inc. in 2013, then Dogecoin Cash, Inc. in November 2024.
• Main operating subsidiary: PrestoCorp, 51% owned, which runs the PrestoDoctor telemedicine platform.
• Wholly owned, but currently inactive, subsidiaries: Wild Earth Naturals, Hi Brands International, Eden Holdings and Kubby Patent & Licenses (KPAL).

Core Operations

1. Telemedicine (100% of revenues): Operates PrestoDoctor, an online platform connecting patients to physicians for medical marijuana recommendations in 15+ states. Over 100,000 users have registered and 15+ licensed physicians participate.
2. Brand Development & Licensing: Holds a portfolio of CBD and cannabis IP (formulas, patents, strains like “Ecuadorian Sativa”) and trademarks (e.g., “hi” brand) for future licensing of edibles, topicals and accessories.
3. Cryptocurrency (New 2024): Acquired 600 million DOG tokens via purchase of DogeSPAC LLC. Plans to integrate digital assets into operations; evaluating strategic use cases.

Growth Strategy

• Expand PrestoDoctor telemedicine into new states and new telehealth offerings.
• License and monetize IP in CBD/cannabis (edibles, topicals, apparel).
• Integrate cryptocurrency payments and digital asset solutions.
• Pursue strategic M&A and brand aggregations to increase scale.

Key Risks (Item 1A & Risk Disclosures)

• Regulatory: Federal prohibition of marijuana (Schedule I) conflicts with state-level legalization; risk of enforcement or legal shifts.
• Market Adoption: Telemedicine proliferation slowed post‑COVID; pricing pressure and competition in telehealth and cannabis evaluation.
• Capital Constraints: Ongoing net losses, negative cash flow, and need for external financing or dilution.
• Digital Asset Volatility: DOG tokens subject to price swings, illiquidity and impairment risk.
• Intercompany & Related Party: Complex related‑party financing and equity issuances raise governance scrutiny.

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2. Financial Performance & Condition (Items 7, 7A, 8)

Income Statement Trends

• Revenue: $802,704 in FY 2024 vs. $1,173,830 in FY 2023 (–32%), reflecting greater competition in the telemedicine cannabis space.
• Gross Margin: 61% vs. 66% prior year; slight margin compression from higher session costs.
• Operating Expenses: $1.19 million vs. $1.63 million (–28%), driven by reduced salaries & G&A; legal & audit fees increased and non‑cash amortization dropped as patents fully amortized.
• Net Loss: $(1.78 million) in 2024 vs. $(1.32 million) in 2023. After non‑operating items including a $500 K goodwill impairment, $314 K loss on debt settlement, $33 K loss on digital asset write‑downs, and $218 K interest expense.

Cash Flow & Liquidity

• Operating Cash Flow: $(107,670) in 2024 vs. $(63,111) in 2023; losses persistent.
• Investing: Advance to related party and sale of minor equity stake, net use of $1,250.
• Financing: $60,092 raised via convertible notes and related‑party loans.
• Cash Balance: $34,934 at 12/31/2024 vs. $83,762 prior year.

Balance Sheet Highlights

• Total Assets: $1.71 million vs. $2.02 million; goodwill and intangible assets comprise $1.28 million and $4 K, respectively, after impairments.
• Liabilities: $1.84 million vs. $1.26 million, including $1.12 million of equity payable to directors/officers and $360 K of convertible debt.
• Deficit: Accumulated deficit $83.82 million and stockholders’ deficit $128,872.
• Leverage & Working Capital: Negative working capital of $(363,715); heavy reliance on equity issuances and related‑party loans.

Market Risk Exposures (Item 7A)

• Not material to market rate risk; primary concern is macro regulatory risk in cannabis and digital asset markets rather than interest rate or currency risk.

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3. Key Opportunities & Threats

Opportunities

• Telemedicine Expansion: Capitalize on broader telehealth acceptance, remote monitoring, and new medical evaluation use cases beyond MMJ.
• Brand Licensing: Monetize IP portfolio—patented lozenges, healing balm, patented strains—through white‑label partnerships and royalties.
• Digital Assets: Differentiate by offering crypto payments (DOG) and exploring token utility & staking within telehealth.
• M&A: Pursue tuck‑ins of early‑stage cannabis technologies or digital health platforms for scale.

Threats

• Cash Burn & Dilution: Continuing losses require capital raises, leading to share dilution.
• Regulatory Crackdowns: Federal enforcement or state reversals could hamper MMJ platform.
• Execution Risk: Few resources to develop CBD brand or deploy digital asset strategy well.
• Crypto Risk: DOG token’s high volatility and lack of liquidity may force impairments and hamper balance sheet strength.

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4. Investment Score & Conclusion

Investment Score: 3.5 / 10

Rationale:

• Persistent net losses, negative operating cash flow, and frail liquidity.
• Heavy reliance on related‑party financing and continuous equity dilution.
• Regulatory uncertainty in cannabis telemedicine.
• Unproven digital asset integration; potential for significant impairment.
• Limited operating scale—telemedicine platform in 15 states, but poor revenue growth.

Potential Catalysts:

1. A successful capital raise at sustainable terms.
2. Telemedicine expansion into new services or states.
3. Monetization of dormant CBD/cannabis IP via licensing deals.
4. A clear roadmap and execution in digital asset strategy with stable crypto market conditions.

Risks to Watch:

• Further goodwill/intangible impairments.
• Stock dilution and share count inflation.
• Federal/state cannabis law conflicts.
• Crypto market correction forcing write‑downs.

Conclusion: While Dogecoin Cash, Inc. has diversified ambitions in telehealth, CBD/cannabis branding, and cryptocurrency, its persistent losses, capital constraints, regulatory complexity and untested digital asset strategy make it a high‑risk, low‑return investment at present. Only a successful turnaround of the telemedicine business or a lucrative licensing/M&A deal would materially shift the outlook.

Disclaimer: This blog review is for informational purposes only and does not constitute an offer to buy or sell securities. Always consult a financial advisor before making investment decisions.