Annual report pursuant to Section 13 and 15(d)

Note 24 - Segment Information

v3.19.1
Note 24 - Segment Information
12 Months Ended
Dec. 31, 2018
Notes  
Note 24 - Segment Information

Note 24 – Segment Information

 

The Company is operating, 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), KushCo. Holdings, Inc. (KSHB), previously Kush Bottles, Inc., 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

 

Trash Management

 

Corporate and Eliminations

 

Consolidated

2018

 

 

 

 

 

 

 

 

Net sales

$

1,647,735

$

3,633,798

$

-

$

5,281,533

Operating income (loss)

 

431,971

 

17,395

 

(1,036,796)

 

(587,430)

Interest income

 

83,398

 

4

 

84,803

 

168,205

Interest expense

 

377

 

19,658

 

(2,628)

 

17,407

Total assets

 

4,571,778

 

1,228,783

 

2,292,102

 

8,092,663

Property additions

 

-

 

13,484

 

12,256

 

25,740

Depreciation and amortization

 

-

 

12,493

 

8,269

 

20,762

 

 

 

 

 

 

 

 

 

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

 

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes for the years ended December 31, 2018 and 2017, as presented in the consolidated income statements:

 

 

 

2018

 

2017

Operating loss

$

(587,430)

$

(1,210,511)

Interest income

 

168,205

 

737,584

Interest expense

 

(17,407)

 

(73,462)

Realized gain (loss) on investments

 

23,984

 

(164,590)

Gain (loss) on equipment disposals

 

(2,738)

 

-

Other income

 

14,357

 

5,036

Income before income taxes

$

(401,029)

$

(705,943)