Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information

Note 19 – Segment Information

 

The Company is an operating, acquisition, and investment business. Subsidiaries in which the Company has a controlling financial interest are consolidated. The Company generally has two reportable segments; 1) the cannabis and medical marijuana segment, which includes the cost basis of membership interests of Electrum, the contractual interest in the Electrum legal recovery, and the operation of subsidiaries in the cannabis and medical marijuana sector; and 2) the Company’s long standing 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 small investments in securities listed on the NYSE and NASDAQ, an investment in note receivable from a non-affiliated party, the fair value of convertible notes receivable and accrued interest from NeuCourt, and the investment in NeuCourt that is included in the Corporate, Other, and Eliminations section below. The NeuCourt investments were previously reported as an investment that would be useful in the cannabis space; however, NeuCourt has determined that its legal services would likely be more useful to users outside of the cannabis space. Prior period segment information presented below contains reclassification of NeuCourt investments from the cannabis and medical marijuana segment to the Corporate, other, and eliminations segment.

 

    Cannabis and Medical Marijuana Segment     Facility Operations Related     Corporate and Eliminations     Consolidated  
Three months ended June 30, 2021                                
Net revenue   $ 10,330     $ 1,362,308     $ -     $ 1,372,638  
Operating income (loss)     8324       (181,557 )     (134,057 )     (307,290 )
Interest income     -       -       16,245       16,245  
Interest expense     -       9,831       5,733       15,114  
Property additions     -       7,416       1,264       8,680  
Depreciation and amortization     -       8,393       1,461       9,854  
                                 
Three months ended June 30, 2020                                
Net revenue   $ 12,028     $ 1,146,839     $ -     $ 1,158,867  
Operating income (loss)     (12,235 )     21,436       (214,076 )     (204,875 )
Interest income     681       -       20,452       21,133  
Interest expense     -       6,706       140       6,846  
Property additions     -       13,412       5,012       18,424  
Depreciation and amortization     -       3,658       1,439       5,097  
                                 
Six months ended June 30, 2021                                
Net revenue   $ 21,200     $ 2,672,147     $ -     $ 2,693,262  
Operating income (loss)     14,450       (185,503 )     (300,982 )     (472,035 )
Interest income     -       -       32,735       32,735  
Interest expense     -       17,879       9,306       27,185  
Property additions     -       10,235       1,264       16,539  
Depreciation and amortization     -       16,353       2,921       19,274  
Total assets     394,926       1,944,190       2,188,586       4,527,702  
                                 
Six months ended June 30, 2020                                
Net revenue   $ 24,567     $ 2,283,763     $ -     $ 2,308,330  
Operating income (loss)     (21,140 )     57,886       (478,345 )     (441,599 )
Interest income     1,924       -       38,613       40,537  
Interest expense     -       14,044       140       14,184  
Property additions     -       16,741       5,012       21,753  
Depreciation and amortization     -       6,298       2,641       8,939  
Total assets     2,337,447       1,978,746       614,409       4,935,601  

 

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:

 

    2021     2020     2021     2020  
    Three Months Ended June 30,     Six Months Ended  June 30  
    2021     2020     2021     2020  
Operating loss   $ (307,290 )   $ (204,875 )   $ (472,035 )   $ (441,599 )
Gain (loss) on investments     (11,423 )     4,288       (6,574 )     (5,919 )
Interest income     16,245       21,133       32,735       40,537  
Interest expense     (15,114 )     (6,846 )     (27,185 )     (14,184 )
Gain on equipment disposals     2,074       -       1,432       -  
EIDL Advance     -       10,000       10,000       10,000  
Other income     2,450       4,272       1,398       16,358  
                                 
Income before income taxes   $ (313,058 )   $ (172,028 )   $ (460,229 )   $ (394,807 )