Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information

Note 17 – Segment Information

 

Continuing Operations

 

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 historic residual operations segment, which included the cost basis of our former membership interests of Electrum, the former contractual interest in the Electrum legal recovery, the settlement payments receivable from G Farma and its co-defendants, the former finance lease payments receivable from Pueblo West to Partner II, the operation of subsidiaries Mentor IP and Partner I, and 2) its classic energy segment which will consist of the Company’s operations and investment in the classic energy space. The classic energy segment includes the fair value of securities investments in (i) oil and gas through Exxon Mobil Corp. (XOM) stock, Occidental Petroleum Corp. (OXY) stock, and Chevron Corp. (CVX) stock, (ii) uranium through Cameco Corp. (CCJ) stock, and (iii) coal through Arch Resources, Inc. (ARCH) stock. Additionally, the Company formerly 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, which on July 15, 2022, was exchanged for a NeuCourt SAFE security investment that will be carried at cost, and the investment in NeuCourt that is included in the Corporate, Other, and Eliminations section below. Segment information for our current operating segments is as follows:

 

    Energy Segment     Historic Segment     Corporate and Eliminations     Consolidated  
Three months ended September 30, 2024                                
Net revenue   $ -     $ -     $ -     $ -  
Operating income (loss)     -       (180 )     (154,099 )     (154,279 )
Interest and dividend income     4,458       -       35,169       39,627  
Interest expense     -       -       -       -  
Property additions     -       -       -       -  
Depreciation and amortization     -       -       269       269  
                                 
Three months ended September 30, 2023                                
Net revenue   $ -     $ -     $ -     $ -  
Operating income (loss)     -       (181 )     (144,873 )     (145,054 )
Interest and dividend income     -       -       10,729       10,729  
Interest expense     -       -       4,529       4,529  
Property additions     -       -       -       -  
Depreciation and amortization     -       -       427       427  
                                 
Nine months ended September 30, 2024                                
Net revenue   $ -     $ -     $ -     $ -  
Operating income (loss)     -       (810 )     (636,761 )     (637,571 )
Interest and dividend income     16,013       -       120,123       136,136  
Interest expense     -       -       -       -  
Property additions     -       -       -       -  
Depreciation and amortization     -       -       807       807  
Total assets     627,438       1,924       2,858,425       3,487,787  
                                 
Nine months ended September 30, 2023                                
Net revenue   $ -     $ -     $ (291 )   $ (291 )
Operating income (loss)     -       (1,124 )     (434,158 )     (435,282 )
Interest and dividend income     -       -       27,563       27,563  
Interest expense     -       -       13,580       13,580  
Property additions     -       -       2,291       2,291  
Depreciation and amortization     -       -       1,092       1,092  
Total assets     -       652       1,811,270       1,811,922  

 

 

Note 17 – Segment Information (continued)

 

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes for the three and nine months ended September 30, 2024 and 2023, as presented in the unaudited condensed consolidated income statements:

 

    2024     2023     2024     2023  
    Three Months Ended
September 30,		     Nine months Ended
September 30,		  
    2024     2023     2024     2023  
Operating income (loss)   $ (154,279 )   $ (145,054 )   $ (637,571 )     (435,282 )
Unrealized gain (loss) on investments     (42,563 )     939     (270,133 )     715
Interest income     39,627       10,729       136,136       27,563  
Interest expense     -       (4,529 )     -       (13,580 )
Other income     -       1       -       1,291  
                                 
Income before income taxes   $ (157,215 )   $ (137,914 )   $ (771,568 )     (419,293 )

 

Discontinued Operation – Facilities Operations Segment

 

As disclosed in Note 3 of the consolidated financial statements, we sold our entire 51% ownership interest in WCI on October 4, 2023 for $6,000,000. Following our sale of WCI, we received no new income from WCI and had no further involvement or continuing influence over its operations. Consequently, our facilities operations segment was eliminated at the time of sale. Additionally, the results of operations associated with our facilities operations segment were excluded from our continuing operations and presented as a discontinued operation in our consolidated financial statements. WCI worked with business park owners, governmental centers, and apartment complexes to reduce their facility-related operating costs. The WCI segment is now reported as a discontinued operation. See Note 3 of the consolidated financial statements for detailed financial information on our former facilities operations segment.