Through D&C Distributors LLC, we are in the business of selling proprietary
plastic medical grade containers under the registered trademark “Medtainer®"
that can store pharmaceuticals, herbs, teas and other solids or liquids, some
of which can grind solids and shred herbs. We have received child safety certification
for our 20-dram container and we are focusing our marketing efforts on drug
stores and drug store chains, veterinarians and veterinary distributors and
other distributors and end users. Through D&C Printing LLC, we are in the
business of private labeling and branding for purchasers of containers and other
products.
Through D&C Distributors LLC and and D&C Printing LLC, we are in the
business of selling and distributing patented containers that can store, grind
and shred pharmaceuticals, herbs, teas and other solids or liquids that are
described under the caption “Description of Business – Products
– The Medtainer®.” We provide custom printing of labeling for
our products and products manufactured by others, as described under the caption,
“Description of Business – Printing.”
We market directly to businesses through our phone room to the retail public
through internet sales and, and to wholesalers and other businesses who resell
our products to other businesses and end users.
Some of our products can be utilized for marijuana-related purposes. In light
of the facts that the possession and use of marijuana have been legalized, subject
to varying restrictions, in many states and that several other states are considering
such legalization, we believe that our products may be of interest to a large
number of users of marijuana in and we advertise our products on our website
and elsewhere as suitable for that purpose. However, since we do not seek information
from our customers who are end users as to how they intend to utilize our products
and have no similar knowledge respecting end users of products sold through
our distributor, we are unable to determine the extent of its use in connection
with the storage and grinding of marijuana or any other purpose. We believe
that marketing these products subjects us to the following risks.
The use of marijuana for medical and recreational use is lawful in many states,
but under United States federal law and the laws of the other states, the possession,
use, cultivation, storage, processing and/or transfer of marijuana is illegal.
Federal and state law enforcement authorities have prosecuted persons engaged
in these activities. While we do not believe that we engage in any of these
activities, any of these law enforcement authorities might bring an action against
us in connection with the engagement of others in them, including, but not limited,
to a claim of aiding and abetting their criminal activities. Such an action
would have a material and adverse effect on our business and operations.
· Under United States federal law, it is unlawful to sell or offer for
sale, to use the mails or any other facility of interstate commerce to transport
or to import or export drug paraphernalia. The term “drug paraphernalia”
includes any equipment, product or material of any kind which is primarily intended
or designed for use in manufacturing, compounding, converting, concealing, producing,
processing, preparing, injecting, ingesting, inhaling, or otherwise introducing
into the human body a controlled substance. One of the factors that these authorities
may consider in determining whether our products are drug paraphernalia are
our national and local advertising concerning its use and we have advertised
our products as usable for marijuana-related purposes. However, we do not believe
that our products were designed or are intended for any of these purposes or
that our products are drug paraphernalia, as defined in federal law, and we
are promoting our products primarily to be used for other purposes. If federal
authorities were to take a different view, they might bring a criminal action
against us. Such an action would have a material and adverse effect on our business
and operations. During the administration of President Barack H. Obama, enforcement
of such federal law was relaxed, but there have been indications that the administration
of President Donald J. Trump may enforce it differently. We are presently unable
to predict what effect, if any, this change, if it occurs, would have on us
or our business.
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