Discover How to Make $26,208 Profit per Month with High Ticket Affiliate Programs
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Rather, we seek to highlight the promotion of the THC Group and Cannabis Cup brands through its merchandising efforts and through licensing arrangements. Prior to hosting events, THC Group receives all required licensing as may be required under state and local law.
These efforts include a change in the strategy roll-out of the Cannabis Cup Events and festivals along with a reorganization of the upcoming scheduling for the season. We anticipate that in , the THC Group will produce a total of approximately 28 Cannabis Cup Events and other festivals both in the United States and internationally.
The Company intends to develop and drive traffic and revenues of its events and festivals by dedicating capital and additional corporate resources to target the growing number of cannabis enthusiasts to our events at increasingly sizeable venues. We believe that changing our strategic approach will restore historical financial performance and profitability margins, with the aim of increasing revenues, gross margins and profit above its historical average and peak.
As legalization of cannabis for both medical and recreational markets continue to develop, we believe that a strategic shift to larger developed markets and accessibility to sponsor events in higher population density urban locations for our events and festivals will present attractive opportunities.
We typically book artists, secure festival sites, provide for third-party production services, sell tickets and advertise the events to attract fans. We also provide or arrange for third parties to provide operational services as needed such as concessions, merchandising and security. We earn revenue primarily from the sale of tickets to the Cannabis Cup Events and other festivals, sponsorship revenue, the sale of entry fees into Cannabis Cup competitions, and through general advertising.
For each Cannabis Cup Event, we rent a third-party venue. Revenue is generally influenced by the number of events, popularity of musical entertainment, volume of ticket sales, ticket prices and the number of participants in the Cannabis Cup competitions. Event costs such as artist fees and production service expenses are included in direct operating expenses and are typically substantial in relation to the revenue.
As a result, significant increases or decreases in promotion revenue do not typically result in comparable changes to operating income. We also generate revenue primarily from the sale of concessions, parking, premium seating, rental income, venue sponsorships and ticket rebates or service charges earned on tickets sold through our third-party ticketing service providers under ticketing agreements. At our Cannabis Cup Events, we outsource the sale of concessions and we receive a share of the net revenue from the concessionaire, which is recorded in revenue with no significant associated direct operating expenses.
We utilize a sales force that creates and maintains relationships with sponsors through a combination of strategic, international, national and local opportunities that allow businesses to reach customers through the Cannabis Cup and other festival events, including advertising on our websites, co-sponsorship arrangements and commercial vendor booths. We drive increased advertising scale to further monetize the Cannabis Cup and other festival event platform through branded media content, corporate sponsorship and vendor booths.
We work with our corporate co-sponsorship clients to help create marketing programs that drive their business goals and connect their brands directly with the Cannabis Cup audiences and fans of the High Times brand. While the Cannabis Cup Events operate year-round, we generally experience higher revenue during the second and third quarters due to the seasonal nature of shows at our outdoor festivals, which primarily occur from May through October.
On April 30, , the parties agreed to extend the maturity date of the Bio Cup Note to June 30, World Cannabis Conference. Feria Del Canamo, S.
Billed as part trade show and part research conference, Spannabis has returned to Barcelona for its seventh edition of the celebration in March The World Cannabis Conference, which hosts scientific, medical and political personalities, as well as relevant agents of the cannabis sector, also includes its own award ceremony crowning the best cannabis and cannabis-related products in the region, attracts tens of thousands of consumers from across the globe annually. Other Business Opportunities. Branded merchandise is sold by its licensees directly through online distribution channels.
We generate revenue primarily from licensing its branded properties, including trademarks and media content, to third parties for use on consumer merchandise. Further, we sell our branded merchandise through its direct to consumer internet shopping sites and e-commerce stores.
Significant costs include costs of goods sold and distribution expenses, operating labor and retail occupancy costs, product development and marketing. Our e-commerce websites currently include The Our licensing operations cover a diverse range of products and live event categories. High Times Group earns royalties or participate in revenue sharing arrangements with strategic partners, both of which are usually based on a fixed percentage of the wholesale or retail selling price of the products or services.
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High Times Group is in discussions for the development of branding opportunities, which it will seek to structure as a joint venture, partnership, licensing and royalty agreement. Below is a sampling of the product licensing, category opportunities the High Times Group is exploring:. Intellectual Property. In addition, we also use common law marks that have not been, or due to their nature are unable to be, registered, including without limitation:.
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We generally rely on trademark, copyright and trade secret laws, and employee and third-party non-disclosure agreements to protect its intellectual property and proprietary rights. We currently own trademark protection for our name and logos in the United States, pursuant to certain trademark and copyright applications and registrations worldwide. Further, we also use common law marks that have not been, or due to their nature are unable to be, registered with the Trade United States Patent and Trademark Office. Although we have been granted registered trademarks by the United States Patent and Trademark Office, there can be no assurance that any trademarks or common law marks relied upon by us, if any, will not be challenged in the future, invalidated or circumvented or that the rights granted thereunder or under licensing agreements will provide competitive advantages to the High Times Group.
There can be no assurance that standard intellectual property confidentiality and assignment agreement with employees, consultants and others will not be breached, that we will have adequate remedies for any breach, or that its trade secrets will not otherwise become known to or independently developed by competitors.
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Furthermore, there can be no assurance that our efforts to protect our intellectual property will prevent others from unlawfully using its trademarks, copyrights and other intellectual property. Our success depends in part, on its continued ability to license its intellectual property.
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An inability to continue to preserve and protect its intellectual property would likely have a material adverse effect on its business, operating results or financial condition. Effective January 1, the prior agreement with Here Publishing Inc. Pride Media Inc. The current allocation for Trans-High Corporation is Parking costs are based on actual costs of spaces used by the Trans-High Corporation employees. The use of the office and cost sharing agreement continues on a month to month basis per Pride Media Inc. The lessor is Here Publishing, Inc. Pride Media, Inc. The lease became effective when the printer was delivered and put into operation in October This lease was terminated as of May 31, and offices were moved into West 45th street, Unit In October as part of the Culture Pub, Inc.
The lease terminates February 29, Government Regulation and Federal Policy of Cannabis. The possession, consumption, production and sale of cannabis is illegal under U. Nonetheless, a number of states have decriminalized cannabis to varying degrees and other states have created exemptions specifically for medical cannabis. Ten states including Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon and Washington have legalized the recreational use of cannabis. Those states as well as 33 other states and the District of Columbia have some type of legal status for medicinal cannabis.
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Variations in laws exist among states that have legalized, decriminalized or created medical cannabis exemptions. While the Company has been operating long before any state legislation, the active enforcement of state laws that prohibit personal cultivation of cannabis could have a material adverse effect on the business, reputation, results of operations, and financial condition of the High Times Group.
Furthermore, as federal law criminalizing the use of marijuana preempts state laws that legalize its use, strict enforcement of federal law regarding marijuana could result in our inability to continue to execute on certain aspects of our business plans. Enforcement of the CSA, including as it relates to cannabis, is subject to prosecutorial discretion and available resources. In the case of cannabis, and particularly in light of the growing legalization of cannabis at the state level, enforcement of the CSA is uncertain and could change rapidly, leaving businesses such as the High Times Group hard pressed to react and operate their businesses.
While cannabis is presently considered a Schedule 1 Controlled Substance under federal law, in Congress enacted an omnibus spending bill which included a provision prohibiting the U.
Department of Justice which includes the Drug Enforcement Administration from using funds appropriated by the spending bill to prevent states from implementing their cannabis laws. This provision was effective only until September 30, and was subsequently renewed by Congress in In order to extend the prohibition, it must be specifically included in the fiscal year Commerce, Justice, and Science CJS Appropriations bill. In USA vs. Department of Justice from spending funds from relevant appropriations acts to prosecute individuals who engage in conduct permitted by state cannabis laws and who strictly comply with such laws.
Department of Justice may prosecute those individuals. As a result, if Congress fails to include the provision prohibiting the U. Department of Justice from using funds appropriated by that bill to prevent states from implementing their cannabis laws, and the federal government decides to strictly enforce federal law with respect to cannabis operations, the High Times Group may have difficulty or may be unable to operate all or aspects of its business. In April , a group of bipartisan lawmakers, consisting of 26 initial sponsors in the U.
House of Representatives and 10 U. Furthermore, recently appointed U. Attorney General William Barr indicated in his confirmation hearings that he would take a hands-off approach toward state-legalized cannabis businesses. Even if the STATES Act passes both houses of Congress and is signed into law by the President, the sale of marijuana will still remain a Schedule 1 Controlled Substance under the CSA and illegal in those states which have not passed permissive legislation on the production, sale and distribution of cannabis for either or both recreational or medical purposes.
In addition, it is unclear to what extent that the STATES Act would improve the ability of cannabis growers, dispensaries and distributors to open bank accounts and otherwise engage in traditional banking activities.