| 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 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.
Schedule of segment information
| |
|
Cannabis and Medical Marijuana Segment |
|
|
Facility Operations Related |
|
|
Corporate and Eliminations |
|
|
Consolidated |
|
| Three months ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
$ |
8,473 |
|
|
$ |
1,860,146 |
|
|
$ |
- |
|
|
$ |
1,868,619 |
|
| Operating income (loss) |
|
|
8,080 |
|
|
|
(232,777 |
) |
|
|
(439,064 |
) |
|
|
(663,761 |
) |
| Interest income |
|
|
- |
|
|
|
- |
|
|
|
13,391 |
|
|
|
13,391 |
|
| Interest expense |
|
|
- |
|
|
|
10,386 |
|
|
|
9,176 |
|
|
|
19,562 |
|
| Property additions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Depreciation and amortization |
|
|
- |
|
|
|
17,750 |
|
|
|
- |
|
|
|
17,750 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
$ |
10,330 |
|
|
$ |
1,362,308 |
|
|
$ |
- |
|
|
$ |
1,372,638 |
|
| Operating income (loss) |
|
|
8,324 |
|
|
|
(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 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months ended June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net revenue |
|
$ |
17,491 |
|
|
$ |
3,700,027 |
|
|
$ |
- |
|
|
$ |
3,717,518 |
|
| Operating income (loss) |
|
|
13,571 |
|
|
|
(45,627 |
) |
|
|
(600,329 |
) |
|
|
(632,385 |
) |
| Interest income |
|
|
- |
|
|
|
- |
|
|
|
27,744 |
|
|
|
27,744 |
|
| Interest expense |
|
|
- |
|
|
|
21,180 |
|
|
|
16,589 |
|
|
|
37,769 |
|
| Property additions |
|
|
- |
|
|
|
27,902 |
|
|
|
- |
|
|
|
27,902 |
|
| Depreciation and amortization |
|
|
- |
|
|
|
32,596 |
|
|
|
1,044 |
|
|
|
33,640 |
|
| Total assets |
|
|
859,439 |
|
|
|
3,806,899 |
|
|
|
1,480,319 |
|
|
|
6,146,657 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
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:
Reconciliation of revenue from segments to consolidated
| |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| |
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
| |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| Operating loss |
|
$ |
(663,761 |
) |
|
$ |
(307,290 |
) |
|
$ |
(632,385 |
) |
|
$ |
(472,035 |
) |
| Employee retention credits |
|
|
1,350,161 |
|
|
|
- |
|
|
|
1,350,161 |
|
|
|
- |
|
| Gain (loss) on investments |
|
|
929 |
|
|
|
(11,423 |
) |
|
|
(40,251 |
) |
|
|
(6,574 |
) |
| Interest income |
|
|
13,391 |
|
|
|
16,245 |
|
|
|
27,744 |
|
|
|
32,735 |
|
| Interest expense |
|
|
(19,562 |
) |
|
|
(15,114 |
) |
|
|
(37,769 |
) |
|
|
(27,185 |
) |
| Gain on asset disposals |
|
|
30,287 |
|
|
|
2,074 |
|
|
|
56,455 |
|
|
|
1,432 |
|
| EIDL Advance |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,000 |
|
| Other income |
|
|
1,897 |
|
|
|
2,450 |
|
|
|
1,897 |
|
|
|
1,398 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|