Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.5.0.2
Segment Information
9 Months Ended
Sep. 30, 2016
Segment Information:  
Segment Information

Note 22 – Segment Information

 

The Company is operating an acquisition and investment business. Majority owned subsidiaries of 51% or more are consolidated. The Company has determined that there are two reportable segments; 1) the cannabis and medical marijuana segment which includes the receivable from Bhang of $1,500,000, the convertible note receivable and accrued interest from Electrum, and the operation of subsidiaries in the Cannabis and medical marijuana sector, and 2) the Company’s legacy investment in WCI which works with business park owners, governmental centers, and apartment complexes to reduce their trash related operating costs. The Company also has certain small cancer related legacy investments and an investment in note receivable from a non-affiliated party that is included in the Corporate and Eliminations section below.

 

 

Cannabis and Medical Marijuana Segment

Trash Management

Corporate and Eliminations

Consolidated

Three months ended September 30, 2016

 

Net sales

$

-

$

705,709

$

20,000

$

725,709

Income from operations

 

(61)

(1,488)

(196,871)

(198,420)

Interest income

 

2,694

-

23,715

26,409

Interest expense

 

-

4,043

6,262

10,305

Property additions

 

-

-

-

-

Depreciation and amortization

 

-

5,667

871

6,538

 

Three months ended September 30, 2015

 

Net sales

$

33,156

$

636,107

$

-

$

669,263

Income from operations

 

7,355

11,516

(204,264)

(185,393)

Interest income

 

3,346

-

23,821

27,167

Interest expense

 

649

4,881

(1,384)

4,146

Property additions

 

-

6,613

-

6,613

Depreciation and amortization

 

386

7,564

1,197

9,147

 

Nine months ended September 30, 2016

 

Net sales

$

450

$

2,016,272

$

20,000

$

2,036,722

Income from operations

 

(50,006)

46,446

(687,254)

(690,814)

Interest income

 

8,083

-

80,193

88,276

Interest expense

 

-

12,474

20,066

32,540

Total assets

 

1,606,874

1,097,582

1,545,485

4,249,942

Property additions

 

-

25,509

1,029

26,538

Depreciation and amortization

 

295

16,953

2,570

19,818

 

Nine months ended September 30, 2015

 

Net sales

$

63,465

$

1,808,035

$

-

$

1,871,500

Income from operations

 

200

92,103

(665,134)

(572,831)

Interest income

 

5,814

-

42,040

47,854

Interest expense

 

987

14,660

(3,442)

12,205

Total assets

 

2,201,103

1,095,516

1,721,635

5,018,254

Property additions

 

385

9,959

7,257

17,601

Depreciation and amortization

 

830

21,184

2,564

24,578

 

 

 

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes, as presented in the unaudited condensed consolidated income statements:

 

 

Three Months Ended

September 30,

Nine Months Ended

September 30,

 

2016

2015

2016

2015

Operating loss

$

(198,420)

$

(185,393)

$

(690,814)

$

(572,831)

Interest income

 

26,409

27,167

88,276

47,854

Interest expense

 

(10,305)

(4,146)

(32,540)

(12,205)

Gain (loss) on investments

 

-

556

(22,289)

(2,082)

Gain on conversion of investment in MicroCannaBiz to note receivable

 

-

-

-

35,360

Gain on equipment disposal

 

11,568

 

-

 

11,568

 

-

Other expense

 

9,286

-

9,154

-

 

Income before income taxes

$

(161,462)

$

(161,816)

$

(636,645)

$

(503,904)