Note 1  Nature of the Business MJ Holdings, Inc. (the Company) is a holding company whose subsidiaries provide cultivation management, infrastructure, and consulting services to the regulated cannabis industry, in addition to holding, and managing third party Nevada state issued cultivation and production licenses. In April 2018, the State of Nevada finalized and approved the provisional Medical Marijuana Establishment Registration Certificate (the Certificate) held by our wholly owned subsidiary, Red Earth, LLC (Red Earth). The Certificate, when perfected, will allow the Company to commence legal marijuana cultivation activities in the State of Nevada. HDGLV, LLC (HDGLV), a wholly owned subsidiary of Red Earth, holds a triple-net leasehold interest, with an option to buy, in a 17,298 square-foot building, which we expect will be the home to our indoor cultivation facility. Phase 1 of this facility was completed in July of 2018. We received final approval from the State of Nevada, Department of Taxation with respect to the Certificate, and Red Earth was issued a Business License by the City of Las Vegas during the quarter ended September 30, 2018. We expect to complete additional modifications and open the facility in January of 2019. In April 2018, the Company entered into a management agreement with a Nevada company (the Licensed Operator) that holds a license, for the legal cultivation of marijuana for sale under the laws of the State of Nevada. The Licensed Operator has engaged us to develop, manage, and operate a licensed cultivation facility on property owned by the Licensed Operator. At our sole cost and expense, we completed the construction of a 120,000 square-foot outdoor grow facility, including the construction of an 8,000 square-foot building and installation of required security fencing, meeting the State of Nevada building codes and regulations. Operation of this facility commenced in August, 2018. The Company will account for the biological assets at LCM (lower of cost or market) as inventory in accordance with ASC 905 Agriculture. At September 30, 2018 the seedlings were in an immature state. See Note 4 Prepayments and deposits, Management Agreement. In order to develop and manage the three-acre outdoor facility, the Company entered into a management services agreement with a Nevada limited liability company (the Manager) to provide operational oversight and cultivation management for the Companys proposed three-acre outdoor cultivation facility. The term of the agreement is for three years. The Manager is entitled to receive compensation equal to twelve percent of the gross yield sales from each harvest with six percent payable in the form of cash and six percent payable in the form of the Companys common stock. The Manager is entitled to bonus compensation equal to 2 percent of gross yield sales in excess of $10,000,000 but less than $12,500,000; three and one-half percent of the gross yield sales in excess of $12,500,000 but less than $15,000,000; and, five percent of any gross yield sales in excess of $15,000,000. All bonus are payable in the form of the Companys common stock. In September of 2018 the Company, through its wholly owned subsidiary, Red Earth applied for five Recreational Marijuana Establishment Licenses to operate up to five retail marijuana stores within the state of Nevada. The Companys goal is to open a store within the City of Las Vegas, as well as additional dispensaries in Washoe County near Lake Tahoe, in North Las Vegas, unincorporated Clark County and Henderson, Nevada. The Company was advised on December 6, 2018 that none of the applications resulted in the grant of a dispensary license. We intend to grow our business through the acquisition of existing companies and/or through the development of new opportunities that can provide a 360-degree spectrum of infrastructure (dispensaries), cultivation/production management, and consulting services in the regulated cannabis industry.