| Segment Information |
The Company is operating an acquisition and investment business. Majority owned subsidiaries of 51% or more are consolidated. The Company has determined that beginning in January 2014 there are two reportable segments, which are 1) the cannabis and medical marijuana segment which includes the receivable from Bhang of $1,500,000, the convertible note receivable and accrued interest from Electrum, 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 trash related operating costs. The Company also has certain small cancer related legacy investments 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
|
| 2015
|
|
|
|
|
|
|
|
|
| Net sales
| $
| 98,533
| $
| 2,463,225
| $
| -
| $
| 2,561,758
|
| Income before taxes
|
| (608,833)
|
| 71,578
|
| (224,377)
|
| (761,632)
|
| Interest income
|
| 9,318
|
| -
|
| 65,732
|
| 75,050
|
| Interest expense
|
| -
|
| 18,910
|
| (3,278)
|
| 15,632
|
| Total assets
|
| 1,673,616
|
| 1,131,481
|
| 1,469,964
|
| 4,275,061
|
| Property additions
|
| 2,026
|
| 9,959
|
| 6,036
|
| 18,021
|
| Depreciation and amortization
|
| 1,568
|
| 30,004
|
| 3,783
|
| 35,355
|
|
|
|
|
|
|
|
|
|
|
| 2014
|
|
|
|
|
|
|
|
|
| Net sales
|
| 5,390
|
| 2,144,176
|
| -
|
| 2,149,566
|
| Income before taxes
|
| (69,332)
|
| 76,067
|
| (471,861)
|
| (465,126)
|
| Interest income
|
| 4,942
|
| -
|
| 30,706
|
| 35,648
|
| Interest expense
|
| -
|
| 21,387
|
| (551)
|
| 20,836
|
| Total assets
|
| 1,626,566
|
| 1,106,498
|
| 1,261,326
|
| 3,994,390
|
| Property additions
|
| 44,978
|
| 25,007
|
| 7,103
|
| 77,088
|
| Depreciation and amortization
|
| 3,126
|
| 29,948
|
| 2,450
|
| 35,524
|
The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes for the years ended December 31, 2015 and 2014, as presented in the consolidated income statements: | | | | |
|
|
| 2015
|
| 2014
|
| Operating loss
| $
| (772,213)
| $
| (1,086,198)
|
| Gain recognized on purchase of majority interest in WCI
|
| -
|
| 1,250,000
|
| Decrease in fair value of convertible securities liability
|
| 589,611
|
| -
|
| Interest income
|
| 75,050
|
| 35,648
|
| Interest expense
|
| (15,632)
|
| (20,836)
|
| Goodwill impairment
|
| (466,765)
|
| -
|
| Loan costs
|
| -
|
| (635,851)
|
| Realized gain (loss) on investments
|
| (131,458)
|
| (7,181)
|
| Gain on conversion of investment in MicroCannaBiz to note receivable
|
| 35,360
|
| -
|
| Loss on impairment of MicroCannaBiz note receivable and accrued interest
|
| (76,010)
|
| -
|
| Gain (loss) on equipment disposals
|
| -
|
| (873)
|
| Other income
|
| 424
|
| 165
|
| Income before income taxes
| $
| (761,632)
| $
| (465,126)
|
|