DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

NOTE 4 – DISCONTINUED OPERATIONS

During the six months ended June 30, 2024, the Company ceased operations of its wholly owned subsidiary, MJAI, a retail marijuana dispensary based in Oregon. MJAI focuses on legal recreational and medical marijuana retaliation business. The Company evaluated the evolving trends and economic realities of the marijuana market, taking into consideration the purchase cost and market demand. The Company has determined that there is insufficient profit to be made in the marijuana business. Consequently, the Company took the decision to discontinue MJAI's business activities.

While the Company did not formally sell the MJAI business during the year ended December 31, 2024, operations were effectively discontinued during the second quarter of 2024, and the dispensary has remained closed since that time. Kaya has had no further operating activity or income from MJAI following the closure.

The Company plans to pursue a potential sale of the MJAI business and remaining assets in the first quarter of 2025. As a result of the closure and strategic shift in operations, the MJAI segment is considered a discontinued operation as defined under ASC 205-20, Presentation of Financial Statements – Discontinued Operations. The Company retains ownership of MJAI, and its assets and liabilities remain consolidated in the financial statements. The results of MJAI’s operations have been presented separately from continuing operations for all periods presented in the accompanying consolidated financial statements.

The following table presents the summary of operating results from discontinued operations for the year ended December 31, 2024, and 2023:

Marijuana Holdings Americas, Inc.

Consolidated Statements of Operations


	For The			For The
	Year Ended			Year Ended
	December 31, 2024			December 31, 2023

Net sales	$	28,009		$	196,294

Cost of sales		13,406			81,345

Gross profit		14,603			114,949

Operating expenses:
Salaries and wages		132,031			209,433
General and administrative		36,648			127,190
Total operating expenses		168,679			336,623

Operating loss		(154,076	)		(221,674	)

Other income (expense):
Gain on impairment of right of use assets		—			151,082
Gain on sale of the license		—			208,346
AP forgiveness		—			112,560
Other income (expense)		—			(90,422	)

Total other income (loss)		—			381,566

Net income from discontinued operations before income taxes		(154,076	)		159,892

Provision for Income Taxes		(8,365	)		(23,327	)

Net income (loss) from discontinued operations		(162,441	)		136,565

Although MJAI’s operations ceased during the year 2024, the Company retained control of the subsidiary as of December 31, 2024. Accordingly, MJAI was not deconsolidated, and its assets and liabilities remain included in the Company’s consolidated balance sheet as of December 31, 2024 and 2023.

Cash Flow Disclosures from Discontinued Operations

For the years ended December 31, 2024 and 2023, the MJAI discontinued operation had net cash used in operating activities of $162,441 and net cash provided by operating activities of $136,565, respectively. These amounts are reflected as a separate line item in the Company’s consolidated statements of cash flows. All other MJAI-related cash flows remain included in the consolidated operating, investing, and financing activities, as the Company retains ownership of MJAI’s assets and liabilities.

Kaya Holdings, Inc. 10-K/A