Freedom Leaf Inc (OTCMKTS:FRLF) Now Has Political Capital

Freedom Leaf Inc (OTCMKTS:FRLF) has taken on a new growth strategy.The company has already announced further expansion in overseas markets in Europe and may just not stop there.According the CEO, the company intend to enter new markets and new products to ensure that it remains at the forefront of the therapeutic cannabinoid industry.Take a look at its recent price movement: FRLF Daily ChartBrief HistoryFreedom Leaf, Inc. was established in Nevada under the name Arkadia International, Inc. in February 2013. It is a leading go-to resource in the cannabis, medical marijuana, and industrial hemp industry. The company is also involved in mergers and acquisitions and business consulting in the marijuana industry, including incubation/acceleration and spin offs of new marijuana/hemp related companies.The company’s major publication is Freedom Leaf Magazine, tagged as ‘The Good News in Marijuana Reform.’ The company produces a portfolio of news, print and digital multi-media verticals, websites, blogs and web advertising, for the ever-changing emerging cannabis, medical marijuana and industrial hemp industry.In October 2014, the Company experienced a change in control. Richard C. Cowan acquired a majority of the issued and outstanding common stock of the Company in accordance with stock purchase agreements by and between Mr. Cowan and Vladimir and Galina Shekhtman. On the closing date, October 3, 2014, pursuant to the terms of the Stock Purchase Agreement, Cowan purchased from the Sellers 6.9 million shares of the Company's outstanding restricted common stock for $100,000, representing 93%.In November of the same year, it entered into a merger agreement with Freedom Leaf Inc. which was a private company being that the company's sole officer and director Clifford J. Perry, were the owners of record of all of the issued share capital of Freedom Leaf Inc. Pursuant to the Merger Agreement, they recived an aggregate of 83.4 million shares (48.1%) of the common stock (consisting of a new issuance of shares and Mr. Perry's transfer of all of his shares), merging Freedom Leaf Inc with Arkadia International. As a result, Freedom Leaf Inc. became the new company name.In the same period, the Company's Board of Directors declared a twelve for one forward stock split of all outstanding shares of the Company's common stock. As the stock split was approved by FINRA, the common share and per common share data in the consolidated financial statements and related notes were retroactively adjusted to account for the effect of the stock split. The total number of authorized common shares and the par value thereof were not changed by the split.Recent DevelopmentsFreedom Leaf, Inc. announced recently Paul Pelosi Jr. was appointed as its new Chairman of Freedom Leaf's Board of Directors. Mr. Pelosi’s roles would be to guide FRLF in corporate governance, sustainable revenue generation, and investor relations. The company plans to launch an initiative to become the model for corporate governance in the cannabis and hemp sector.Mr. Paul Pelosi Jr. has experience in advising companies on corporate governance, sustainability, and public policy. Mr. Pelosi graduated Cum Laude from Georgetown University with a Bachelor of Arts, and holds an MBA with an emphasis in International Business. Previously, Mr. Pelosi has served as the President of the SF Commission on the Environment and was the founding member of Cisco Systems Connected Urban Development team.Mr. Pelosi is also currently Executive Director of the Corporate Governance Initiative (CGI), an organization that is committed to assisting companies adhere to a system of guidelines, practices, and procedures by which a company is directed and controlled. The Corporate Governance Initiative also helps companies create policies to find better balance between the interests of a company's many stakeholders, such as shareholders, management, patrons, providers, investors, government and the public.Freedom Leaf, Inc. declared that its model for for 2018 will be focused on shaping revenue strategy and monitoring performance of its core and ancillary businesses and investments. As revenue is the key to any successful enterprise, its concentration on revenue generation is expected to move the company toward a major revenue increase with the launch of the Hempology brands and Green Market Europe.Financial PerformanceIn its recently published financial reports, the company announced revenues of $0.8 million in 2017, compared to $0.1 million for the same period in 2016. This increase in revenue was attributable to increased sales related to increased magazine subscriptions and licensing fees.In the breakdown of its operating costs, direct costs of sales were down to $0.11 million compared to $0.13 million for the same period in 2016. As a percent of revenue, direct costs of revenue were 15.2% and 111.7%, respectively, for 2017 and 2016.Within the year, general and administrative expenses were lowered to $1.4 million compared to $2.69 million for the same period in 2016. The increase was due to the increase in operations and stock-based compensation ($0.75 million compared to $2.26 million for years 2017 and 2016, respectively).In total, Fireleaf Inc. generated net losses of $0.91 million for the year ended June 2017, compared to $3 million for the same period in 2016.For the 2017 period, the company had cash and cash equivalents of barely $2,498. Most of its cash needs in the past were funded through a combination of cash flows from operating activities and proceeds from private placements of its securities and loans. Its main cash requirements are generally for selling, general and administrative activities. However, the cash balance is unlikely to be adequate to finance other cash requirements for expected operational activities, capital improvements, and partial repayment of debt through the next 12 months.ConclusionAlthough the company may not yet be raking the large profits investors may want to see, it is clear from its continuous expansion the level of belief that its partners have put in the company and it is just matter of time before it begins to produce results.We will be updating our subscribers as soon as we know more. For the latest updates on FRLF, sign up below!Disclosure: We have no position in FRLF and have not been compensated for this article.