High Sierra Technologies, Inc.

What they do

The company, through its wholly-owned subsidiary High Sierra Technologies, Inc., owns and licenses a portfolio of patent applications and issued patents related to cannabis products modified by removing volatile organic compounds and adding volatile unsaturated hydrocarbons. It has no revenue from operations and relies on raising capital to fund its patent prosecution and administrative costs. The company is also a 50% participant in a joint venture with Hempacco Co, Inc. in Organipure, Inc., a Nevada corporation.

Revenue drivers

• Patent licensing — Potential future revenue from licensing its patented technology, but no licensing revenue has been reported to date.
• Joint venture (Organipure, Inc.) — 50% interest in a joint venture with Hempacco Co, Inc. intended to develop commercial applications, but no revenue has been generated.

Recent performance

For the nine months ended September 30, 2023, the company had total assets of $65,802, total liabilities of $822,612, and a shareholder deficit of $756,810. Cash and equivalents were $17,332 at September 30, 2023. Annual net losses were $323,952 in 2022 and $316,437 in 2021, with no revenue reported in any year. Operating cash flow was negative $219,659 in 2022 and negative $176,519 in 2021.

Strategy

Management states the company's focus is on the intellectual property business of its subsidiary, with an emphasis on the recreational cannabis and industrial hemp industries. It continues to prosecute patent applications in the United States, Canada, and European countries, and has received two issued U.S. patents to date. The company is also pursuing the joint venture with Hempacco Co, Inc. to commercialize its technology. It expects to rely on raising capital to fund operations, as it has no current revenue.

Risks

• No revenue — The company has never generated revenue and has no products or services for sale, making it entirely dependent on future licensing or sale of its intellectual property.
• Negative shareholder equity — As of September 30, 2023, total liabilities exceed total assets by $756,810, indicating a significant deficit that raises substantial doubt about the company's ability to continue as a going concern.
• Patent and regulatory uncertainty — The company's entire business depends on obtaining and enforcing patents in a highly regulated and evolving cannabis and hemp industry, where legal and regulatory changes could adversely affect its ability to monetize its patents.
• Limited trading market — There has been no established trading market in the company's common stock for many years, which may lead to price volatility and limited liquidity for investors.

Outlook

Management does not provide specific forward-looking guidance, but it indicates that it will continue to invest in prosecuting its patent portfolio and developing the joint venture. The company emphasizes the need to raise additional capital to fund operations and pursue its business plan. There is no assurance that any patent will be issued or that the joint venture will generate revenue.