Annual report pursuant to Section 13 and 15(d)

Note 24 - Segment Information

Note 24 - Segment Information

12 Months Ended

Dec. 31, 2017

Note 24 – 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, the fair value of securities investment in GW Pharmaceuticals plc (GWPH) stock, Investment in Kush Bottles, Inc (KSHB) stock, the equity investment in Electrum, convertible notes receivables from Electrum and NeuCourt, the notes receivable from GFarma, the contractual interest in the G Farma legal recovery, 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 facility 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
2017
Net sales	$	15,400	$	3,167,300	$	-	$	3,182,700
Operating income (loss)		(17,414)		130,066		(1,323,163)		(1,210,511)
Interest income		49,664		5		687,915		737,584
Interest Expense		-		19,429		54,033		73,462
Total assets		3,906,978		1,168,171		2,588,785		7,663,934
Property additions		-		6,622		13,815		20,437
Depreciation and amortization		-		11,123		4,583		15,706

		Cannabis and Medical Marijuana Segment		Trash Management		Corporate and Eliminations		Consolidated
2016
Net sales	$	20,450	$	2,740,187	$	608	$	2,761,245
Operating income (loss)		(50,043)		34,485		(880,416)		(895,974)
Interest income		10,958		1		103,877		114,836
Interest Expense		-		17,275		23,350		40,625
Total assets		1,632,055		1,119,407		2,627,137		5,378,599
Property additions		-		29,210		1,029		30,239
Depreciation and amortization		295		21,752		3,715		25,762

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes for the years ended December 31, 2016 and 2015, as presented in the consolidated income statements:

		2017		2016
Operating loss	$	(1,210,511)	$	(895,974)
Interest income		737,584		114,836
Interest Expense		(73,462)		(40,625)
Realized gain (loss) on investments		(164,590)		(42,289)
Gain (loss) on equipment disposals		-		11,568
Other income		5,036		9,143
Income before income taxes	$	(705,943)	$	(843,341)