Quarterly report pursuant to Section 13 or 15(d)

Note 23 - Segment Information

v3.10.0.1
Note 23 - Segment Information
9 Months Ended
Sep. 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. (KSHB), Generation Alpha, Inc. (GNAL), previously Solis Tek, Inc., and GB Sciences, Inc. (GBLX) stock, the cost basis of membership interests of Electrum, the fair value of convertible notes receivables and accrued interest from NeuCourt, the notes receivable from G Farma, the contractual interest in the G Farma legal recovery, the equity in G Farma Equity Entities, 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 had a certain small cancer related legacy investment until March 2018 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 September 30, 2018

 

 

 

 

 

 

 

 

Net revenue

$

101,407

$

930,214

$

-

$

1,031,621

Operating income (loss)

 

32,257

 

3,173

 

(238,527)

 

(203,097)

Interest income

 

18,850

 

1

 

22,727

 

41,578

Interest expense

 

-

 

4,713

 

(1,125)

 

3,588

Property additions

 

-

 

13,484

 

1,658

 

15,142

Depreciation and amortization

 

-

 

3,369

 

2,059

 

5,428

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2017

 

 

 

 

 

 

 

 

Net revenue

$

5,040

$

810,062

$

-

$

815,102

Operating income (loss)

 

4,654

 

65,309

 

(256,944)

 

(186,981)

Interest income

 

71,219

 

1

 

22,688

 

93,908

Interest expense

 

-

 

4,567

 

(1,133)

 

3,434

Property additions

 

-

 

-

 

4,775

 

4,775

Depreciation and amortization

 

-

 

1,461

 

1,088

 

2,549

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2018

 

 

 

 

 

 

 

 

Net sales

$

598,539

$

2,680,541

$

-

$

3,279,080

Operating income (loss)

 

151,566

 

2,382

 

(761,932)

 

(607,984)

Interest income

 

62,759

 

2

 

61,403

 

124,164

Interest expense

 

181

 

14,704

 

(3,298)

 

11,587

Property additions

 

-

 

13,484

 

4,057

 

17,541

Total assets

 

4,270,527

 

1,150,657

 

2,736,576

 

8,157,760

Depreciation and amortization

 

-

 

8,554

 

5,530

 

14,084

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2017

 

 

 

 

 

 

 

 

Net sales

$

9,800

$

2,307,994

$

-

$

2,317,794

Operating income (loss)

 

8,729

 

140,257

 

(997,654)

 

(848,668)

Interest income

 

88,541

 

4

 

68,971

 

157,516

Interest expense

 

-

 

14,353

 

(3,402)

 

10,951

Property additions

 

-

 

-

 

7,909

 

7,909

Total assets

 

3,122,165

 

1,168,649

 

3,057,673

 

7,348,487

Depreciation and amortization

 

-

 

8,106

 

2,496

 

10,602

 

 

 

 

 

 

 

 

 

 

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,

 

 

2018

 

2017

 

2018

 

2017

Operating loss

$

(203,097)

$

(186,981)

$

(607,984)

$

(848,668)

Gain (loss) on investments

 

237,657

 

(163,445)

 

118,197

 

(163,445)

Interest income

 

41,578

 

93,908

 

82,586

 

157,516

Interest expense

 

(3,588)

 

(3,434)

 

(7,999)

 

(10,951)

Other expense

 

-

 

-

 

2,380

 

500

 

 

 

 

 

 

 

 

 

Income before income taxes

$

72,550

$

(259,952)

$

(137,173)

$

(865,048)