The last few session have been rather successful for Cannabis Kinetics, Corp. (CANK). The ticker gained a 29.19% in price in a three-day green streak. The penny stock managed to pass the $1.00 mark, closing at $1.04 yesterday.

Cannabis Kinetics' recent success came amid a number of ventures and some changes within the company. CANK disclosed it will change its name to Monarch America, Inc. to associate with the company's Monarch product brand. The venture also disclosed its plans of doing a 3-for-1 forward stock split.

Investors were informed that the company will likely keep them up-to-date via press releases, while the documentation is settled. Until we get a further update from CANK, we can have a more in depth look into the company to better evaluate its long term potential at this stage of its development. The latest 10-Q for the period ended August 31, 2014 provides the following input, which should be looked up:

• Cash: $75.3 thousand
• Total current assets: $78.8 thousand
• Total assets: $138.9 thousand
• Total liabilities: $218.4 thousand
• Net loss: $222 thousand

The company has made an improvement in its asset basis. However, at the same time CANK's liabilities have also gone up and the asset to liability ratio is still negative. The venture has been operating at a loss over the past few periods, incurring a much higher loss compared to the previous fiscal year.

Cannabis Kinetics has issued shares to settle due payments to its directors and officers of the company. On June 25, CANK issued 112.5 thousand shares of common stock to cover $1,125 due for services provided. On June 20, the venture entered into an exchange agreement to convert an aggregate of $8,250 owed to directors and officers into 274,998 shares of series A convertible preferred stock.

The company has raised funds through the issuance of stock to finance its operations. In the last period, CANK has issued a total of 11,401 shares of series B preferred stock for proceeds of $136,804. The share issuance of both common and preferred stock has continued in the current fiscal period, as evidenced in the report.

Debt is another issue around CANK which should be regarded. The company issued a promissory note in the amount of $3 million on August 15 to a related party. The terms of the agreement allow Cannabis Kinetics to borrow in increments of up to $750 thousand.

Another venture which the company has recently taken up is a plan of merger with Colorado-based corporation The Big Tomato. As we await to see the results from CANK's venture initiatives, it may be wise for investors to do their due diligence on the company before investing in CANK shares.