Quarterly report pursuant to Section 13 or 15(d)

Note 23 - Segment Information

v3.10.0.1
Note 23 - Segment Information
6 Months Ended
Jun. 30, 2018
Notes  
Note 23 - Segment Information

Note 23 – 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 fair value of securities investments in GW Pharmaceuticals plc (GWPH), [Kush Bottles, Inc., and Solis Tek, Inc.] stock, the fair value of membership interests of Electrum, convertible notes receivables and accrued interest from NeuCourt, the notes receivable from G Farma, the contractual interest in the G Farma legal recovery, finance leases to G Farma and Pueblo West, 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

Facility Operations Related

Corporate and Eliminations

Consolidated

Three months ended June 30, 2018

 

Net revenue

$

336,604

$

894,656

$

-

$

1,231,260

Operating income (loss)

 

92,273

(4,295)

(272,794)

(184,816)

Interest income

 

20,488

1

23,031

43,520

Interest expense

 

181

4,729

(1,039)

3,871

Property additions

 

-

-

2,399

2,399

Depreciation and amortization

 

-

2,593

1,763

4,356

 

Three months ended June 30, 2017

 

Net revenue

$

4,760

$

759,789

$

-

$

764,549

Operating income (loss)

 

4,374

26,023

(307,689)

(277,292)

Interest income

 

12,694

2

22,618

35,314

Interest expense

 

-

4,601

(1,134)

3,467

Property additions

 

-

-

3,134

3,134

Depreciation and amortization

 

-

3,323

782

4,105

 

 

 

Cannabis and Medical Marijuana Segment

Facilities Operations Related

Corporate and Eliminations

Consolidated

Six months ended June 30, 2018

 

Net sales

$

497,132

$

1,750,327

$

-

$

2,247,459

Operating income (loss)

 

133,869

22,193

(560,949)

(404,887)

Interest income

 

17,322

1

65,263

82,586

Interest expense

 

181

9,991

(2,173)

7,999

Property additions

 

-

-

2,399

2,399

Total assets

 

3,600,349

 

1,147,566

 

3,225,400

 

7,973,315

Depreciation and amortization

 

-

5,185

3,471

8,656

 

Six months ended June 30, 2017

 

Net sales

$

4,760

$

1,497,932

$

-

$

1,502,692

Operating income (loss)

 

4,075

79,948

(740,709)

(661,686)

Interest income

 

17,322

3

46,283

63,608

Interest expense

 

-

9,785

(2,268)

7,517

Property additions

 

-

-

3,134

3,134

Total assets

 

3,029,207

 

1,119,991

 

3,247,402

 

7,396,600

Depreciation and amortization

 

-

6,646

1,407

8,054

 

 

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 June 30,

Six Months Ended June 30,

 

 

2018

2017

2018

2017

Operating loss

$

(184,816)

$

(277,292)

$

(404,887)

$

(661,686)

Gain (loss) on investments

 

66,606

-

118,197

-

Interest income

 

43,520

35,314

82,586

63,608

Interest expense

 

(3,871)

(3,467)

(7,999)

(7,517)

Other expense

 

2,380

-

2,380

500

 

Income before income taxes

$

(76,181)

$

(245,445)

$

(209,723)

$

(605,095)