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	7	+American Cannabis Company, Inc.(AMMJ) and subsidiary company, Hollister & Blacksmith, Inc., doing business as American Cannabis Consulting (“American Cannabis Consulting”) are based in Denver, Colorado and operate a fully-integrated business model that features end-to-end solutions for businesses operating in the regulated cannabis industry in states and countries where cannabis is regulated and/or has been de-criminalized for medical use and/or legalized for recreational use. The Company provides advisory and consulting services specific to this industry, manufactures proprietary industry solutions including; the Satchel™, SoHum Living Soils™, Cultivation Cube™ and the High Density Cultivation System.™ The Company also sells 3rd party industry-specific products and manages a strategic group partnership that offers both exclusive and non-exclusive customer products commonly used in the industry. American Cannabis Company, Inc. is a publicly listed company quoted on the OTCQB under the symbol “AMMJ”.
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9		-American Cannabis Company, Inc. and subsidiary company, Hollister & Blacksmith, Inc., doing business as American Cannabis Consulting (“American Cannabis Consulting”) are based in Denver, Colorado and operate a fully-integrated business model that features end-to-end solutions for businesses operating in the regulated cannabis industry in states and countries where cannabis is regulated and/or has been de-criminalized for medical use and/or legalized for recreational use. The Company provides advisory and consulting services specific to this industry, manufactures proprietary industry solutions including; the Satchel™, SoHum Living Soils™, Cultivation Cube™ and the High Density Cultivation System.™ The Company also sells 3rd party industry-specific products and manages a strategic group partnership that offers both exclusive and non-exclusive customer products commonly used in the industry. American Cannabis Company, Inc. is a publicly listed company quoted on the OTCQB under the symbol “AMMJ”.
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11	11	American Cannabis Company was incorporated in the State of Delaware on September 24, 2001 under the name Naturewell, Inc. to develop and market clinical diagnostic products using immunology and molecular biologic technologies.
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13	13	On March 13, 2013, Naturewell, Inc. completed a merger transaction whereby it acquired 100% of the issued and outstanding share capital of Brazil Interactive Media, Inc. (“BIMI”), which operated as a Brazilian interactive television company and television production company through its wholly owned Brazilian subsidiary company, EsoTV Brasil Promoção Publicidade Licenciamento e Comércio Ltda. (“EsoTV”). Naturewell’s Articles of Incorporation were amended to reflect a new name: Brazil Interactive Media, Inc.
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19	19	Immediately following the completion of the Merger Agreement, former shareholders of American Cannabis Consulting owned 31,710,628 shares of American Cannabis Company, Inc.’s common stock representing 78.4% of American Cannabis Company, Inc.’s issued and outstanding share capital. Accordingly, American Cannabis Consulting was deemed to have been the accounting acquirer in a Reverse Merger which resulted in a recapitalization of the Company. Consequently, the Company’s consolidated financial statements reflect the results of American Cannabis Consulting since Inception (March 5, 2013) and of American Cannabis Company, Inc. (formerly BIMI) since September 29, 2014.
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21		-=== Business Overview ===
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23	23	The company primarily operate within two divisions within the regulated cannabis industry: (i) consulting and professional services; and, (ii) the sale of products and equipment commonly utilized in the cultivation, processing, transportation or retail sale of cannabis. American Cannabis is not licensed to produce and/or sell cannabis. The company do not sell, cultivate, manufacture, or transact cannabis.
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25		-==== Consulting Services ====
	23	+== Consulting Services ==
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27	27	The company offer consulting services for companies associated with the cannabis industry in all stages of development. The company's service offerings include the following:
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34	34	* Cannabis Business Growth Strategies. The company's team shares its collective knowledge and resources with its clients to create competitive, forward-looking cannabis business growth strategies formulated to minimize risk and maximize potential. The company customize individual plans for the unique nature of its client businesses, their market and big-picture goals, supported with a detailed analysis and a thorough command of workflow best practices, product strategies, sustainability opportunities governed by a core understanding or regulatory barriers and/or opportunities.
35	35	* Cannabis Business Monitoring. The regulated commercial cannabis industry is constantly growing and shifting, and the ongoing monitoring of a cannabis business allows it to remain responsive to evolving consumer demands and state regulations as well as potential operations problems. The company offer fully-integrated business analysis solutions. The company's monitoring services include sales tracking, market assessment, loss prevention strategies, review of operational efficiency and workflow recommendations. Additionally, its services include Strength, Weakness, Opportunity and Threat (“SWOT”) analysis, where the company analyze client operations to pinpoint strengths, weaknesses, opportunities and threats. The company's SWOT analyses allow clients to focus their efforts and resources on the most critical areas along these dimensions.
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37		-==== Equipment and Supplies ====
	35	+== Equipment and Supplies ==
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39	39	In addition to professional consulting services, the company operate an equipment and supplies division for customers in the cannabis industry. The company's Group Purchasing Organization, American Cultivator CO., enables customers to procure commonly used cultivation supplies at competitive prices. The company's major product offerings include the following:
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44	44	* The Cultivation Cube™. The Cultivation Cube™ is a self-contained, scalable cultivation system that is compliant with regulatory guidelines. The Cultivation Cube™ allows commercial cannabis cultivation operations to maximize space, yield and profit through an innovative design that provides a fully integrated growing solution. The Cultivation Cube utilizes more lights per square foot than traditional grow systems, which translates to profit increases per square foot. The Cultivation Cube™ is also stackable, which allows customers to achieve vertical gains and effectively doubles productive square-footage. It is an ideal solution for commercial-scale cultivation within limited space, with numerous advantages over other traditional grow systems, including: (1) flexibility to fit customer build-out sites; (2) efficient speed-to-market with fast delivery and set-up; (3) increased security with limited access units; (4) risk mitigation through precision environmental controls; and, (5) is compatible with lean manufacturing principles and operations.
45	45	* Other Products. The company offer its clients a diverse array of commonly utilized product offerings from across all areas of the regulated cannabis industry, including cultivation operations, medicinal and recreational cannabis dispensary operations, and infused-products. Examples of products available through American Cultivator Co. include HID Ballasts, reflectors, MH and HPS bulbs, T5 fixtures, mediums, nutrients and fertilizers, growing containers, flood tables, reservoirs, and various other supplies, including cleaning products and office supplies. The company also offer a Group Purchasing Organization (“GPO”) focused on disposables to creates purchasing power by leveraging groups of businesses to obtain discounts from vendors based on the collective buying power of the GPO.
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47		-**Sales and Marketing**
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49	49	The company sell its services and products throughout the United States in states that have implemented regulated cannabis programs as well as Canada. The company intend to expand its offerings as more new countries, states and jurisdictions as they adopt state-regulated or Federal programs.
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51		-**Research and Development**
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53	53	As a component of its equipment and supplies offerings, from time-to-time the company design and develop its own proprietary products to meet demand in markets where current offerings are insufficient. These products include, but are not limited to: The Satchel™, Cultivation Cube™, So-Hum Living Soils™ and the HDCS™. Costs associated with the development of new products are expensed as occurred as research and development operating expenses. During the year ended December 31, 2016, its research and development costs were $2,553 as compared to $51,115 for the fiscal year ended December 31, 2015.
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55		-**Significant Customers**
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57	57	For the year ended December 31, 2016 and December 31, 2015, in the aggregate, three customers, respectively, accounted for 45.66% and 74% of the Company’s total revenues for each respective period.
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59	59	On a geographical basis, for the year ended December 31, 2016, approximately 92% and 4.72% of its total revenues were generated from the United States and Canada, respectively. For the year ended December 31, 2015, approximately 91% and 9% of its total revenues for the period were generated from the United States and Canada, respectively.
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61		-**Intellectual Property**
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63	63	On March 29, 2016, the U.S. Patent and Trademark Office issued patent number 9,296,524 B2 for The Satchel™, its child-proof exit package solution for the regulated cannabis industry. The company may file for additional patent protection as the company deem appropriate to protect new products. The company also had trademark applications pending to protect its branding and logos. These pending applications included trademarks for American Cannabis Company (stylized and/or with design logo), American Cannabis Consulting (stylized and/or with design logo), the design and colors used in its leaf logo, the Cultivation Cube (stylized and/or with design logo), its slogan (“Growing the Next Frontier”), and two word marks and the logo associated with SoHum Living Soil.