Agent: This was the heart of the 11/05 QA relevant

Agent: This was the heart of the 11/05 Q&A relevant now. The rest was more or less the Q3 summary by Benz, a discussion and Dharmanol and Canna-Loz, and a restatement of points made in the 09/12/2013 Q&A SKTO conference call.  

From 11/05/2013 conference call.

"At no point does SK3 or its subsidiaries ever own the medicines.

We have management contracts in place to provide various managerial services and licenses to collectives that own or manufacture the medicines.

Our management contracts are a) with retail managed collectives that sell directly to patients and b) with wholesale managed collectives that take the raw material, that contains the medicine, and manufacture it into finished products, licensed in respect to manufacturing and marketing, and then sell these finished products to other dispensaries.

The wholesale managed collectives pay us a license fee for the intellectual property rights of products and processes for the creation of products such as Dharmanol and Canna-Loz, which license includes the right to use the name of the product and the formula for producing it.

Now, a great deal of time, effort and expertise have gone into developing these production methods so that they result in consistent products.

The beauty behind this whole thing, Darrell, is that we're exploiting these assets as licensors and consultants in the industry."

Benz: "We are a long term play and are managing to that long term."

For Q3 (July 1 - Sept 30, 2013)

$17,527,592 in consulting, licensing and management fees

$4,510,893 net income pre-tax or $.0076/sh

O/S (inferred) 593,538,552 shares

Balance sheet

$129,865 cash and cash eqivalents

Receivables: net $22,569,699 after a reserve for $12,706,300 was established