Quarterly report pursuant to Section 13 or 15(d)

Note 21 - Segment Information

v3.20.2
Note 21 - Segment Information
6 Months Ended
Jun. 30, 2020
Notes  
Note 21 - Segment Information Note 21 – 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 has determined that there are 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, the fair value of convertible notes receivable and accrued interest from NeuCourt, the notes receivable from G Farma, the contractual interest in the G Farma legal recovery, the equity in G Farma Equity Entities, finance leases to G Farma and finance leases to Pueblo West, the operation of subsidiaries in the cannabis and medical marijuana sector, and in 2019, included the fair value of cannabis stock securities investments, 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 has a small investment in General Dynamics Corp. (NYSE: GD), an aerospace and defense corporation, 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

 

Facility

Operations

Related

 

Corporate and

Eliminations

 

Consolidated

Three months ended June 30, 2020

 

 

 

 

 

 

 

 

Net revenue

$

12,028

$

1,146,839

$

-

$

1,158,867

Operating income (loss)

 

(12,235)

 

21,436

 

(214,076)

 

(204,875)

Interest income

 

681

 

-

 

20,452

 

21,133

Interest expense

 

-

 

6,706

 

140

 

6,846

Property additions

 

-

 

13,412

 

5,012

 

18,424

Depreciation and amortization

 

-

 

3,658

 

1,439

 

5,097

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2019

 

 

 

 

 

 

 

 

Net revenue

$

12,162

$

1,017,587

$

-

$

1,029,749

Operating income (loss)

 

(84,695)

 

40,707

 

(242,350)

 

(286,338)

Interest income

 

982

 

3

 

21,899

 

22,884

Interest expense

 

-

 

5,851

 

-

 

5,851

Property additions

 

-

 

-

 

-

 

-

Depreciation and amortization

 

-

 

(2,714)

 

2,932

 

218

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2020

 

 

 

 

 

 

 

 

Net revenue

$

24,567

$

2,283,763

$

-

$

2,308,330

Operating income (loss)

 

(21,140)

 

57,886

 

(478,345)

 

(441,599)

Interest income

 

1,924

 

-

 

38,613

 

40,537

Interest expense

 

-

 

14,044

 

140

 

14,184

Property additions

 

-

 

16,741

 

5,012

 

21,753

Depreciation and amortization

 

-

 

6,298

 

2,641

 

8,939

Total assets

 

2,337,447

 

1,978,746

 

619,408

 

4,935,601

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2019

 

 

 

 

 

 

 

 

Net revenue

$

132,252

$

1,973,493

$

-

$

2,105,745

Operating income (loss)

 

(696,392)

 

57,886

 

(504,074)

 

(1,142,580)

Interest income

 

21,628

 

6

 

43,830

 

65,464

Interest expense

 

-

 

10,375

 

-

 

10,375

Property additions

 

-

 

8,159

 

-

 

8,159

Depreciation and amortization

 

-

 

5,306

 

5,864

 

11,170

Total assets

 

2,859,528

 

1,726,522

 

1,071,868

 

5,657,918

 

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:

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

30-Jun

 

 

2020

 

2019

 

2020

 

2019

Operating loss

$

(204,875)

$

(286,338)

$

(441,599)

$

(1,142,580)

Gain (loss) on investments

 

4,288

 

(132,088)

 

(5,919)

 

(1,701,969)

Interest income

 

21,133

 

22,884

 

40,537

 

65,464

Interest expense

 

(6,846)

 

(5,851)

 

(14,184)

 

(10,375)

Gain on equipment disposals

 

-

 

1,500

 

-

 

1,500

EIDL Advance

 

10,000

 

-

 

10,000

 

-

Other income

 

4,272

 

11,340

 

16,358

 

11,340

 

 

 

 

 

 

 

 

 

Income before income taxes

$

(172,028)

$

(388,553)

$

(394,807)

$

(2,776,620)