Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.1
Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information

Note 18 – 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 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 March 31, 2022                                
Net revenue   $ 9,017     $ 1,839,881     $ -     $ 1,848,898  
Operating income (loss)     5,491       187,150       (161,265 )     31,376  
Interest income     -       -       14,353       14,353  
Interest expense     -       10,386       7,821       18,207  
Property additions     -       27,902       -       27,902  
Depreciation and amortization     -       15,368       522       15,890  
Total assets     879,789       2,411,343       1,545,786       4,836,918  
                                 
Three months ended March 31, 2021                                
Net revenue   $ 10,871     $ 1,309,753     $ -     $ 1,320,624  
Operating income (loss)     6,125       (3,946 )     (166,922 )     (164,743 )
Interest income     -       -       16,489       16,489  
Interest expense     -       8,498       3,572       12,070  
Property additions     -       6,595       1,264       7,859  
Depreciation and amortization     -       7,960       1,461       9,421  
Total assets     1,005,990       2,124,769       1,644,546       4,775,305  

 

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:

 

    2022     2021  
    Three Months Ended
March 31,		  
    2022     2021  
Operating income (loss)   $ 31,376     $ (164,743 )
Gain (loss) on investment in securities     (42,680 )     4,849
Paycheck Protection Program Loan forgiveness     -     10,000  
Interest income     14,353       16,489  
Interest expense     (18,207 )     (12,070 )
Gain (loss) on ROU asset disposal     26,168       (643 )
Other Income (expense)     1,500       (1,053 )
                 
Income before income taxes   $ 12,510     $ (147,171 )