Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.3.1.900
Segment Information
12 Months Ended
Dec. 31, 2015
Segment Information:  
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)