Quarterly report pursuant to Section 13 or 15(d)

Note 21 - Segment Information

v3.20.2
Note 21 - Segment Information
9 Months Ended
Sep. 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 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, 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 it will not become a cannabis legal services company. 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.

 

 

 

Cannabis and

Medical

Marijuana

Segment

 

Facility

Operations

Related

 

Corporate,

Other and

Eliminations

 

Consolidated

Three months ended September 30, 2020

 

 

 

 

 

 

 

 

Net revenue

$

11,730

$

1,219,800

$

-

$

1,231,530

Operating income (loss)

 

4,516

 

(230,490)

 

(189,005)

 

(414,979)

Interest income

 

8

 

-

 

24,960

 

24,968

Interest expense

 

-

 

9,517

 

(1,004)

 

8,513

Property additions

 

-

 

6,490

 

2,581

 

9,071

Depreciation and amortization

 

-

 

3,892

 

2,038

 

5,930

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2019

 

 

 

 

 

 

 

 

Net revenue

$

13,312

$

1,058,025

$

-

$

1,071,337

Operating income (loss)

 

(38,426)

 

9,276

 

(280,397)

 

(309,547)

Interest income

 

30

 

4

 

21,507

 

21,541

Interest expense

 

-

 

7,214

 

(1,134)

 

6,080

Property additions

 

-

 

-

 

-

 

-

Depreciation and amortization

 

-

 

2,653

 

2,932

 

5,585

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2020

 

 

 

 

 

 

 

 

Net revenue

$

36,297

$

3,503,563

$

-

$

3,539,860

Operating income (loss)

 

(16,624)

 

(174,878)

 

(665,076)

 

(856,578)

Interest income

 

-

 

-

 

65,504

 

65,504

Interest expense

 

-

 

25,829

 

(3,132)

 

22,697

Property additions

 

-

 

23,231

 

7,593

 

30,824

Depreciation and amortization

 

-

 

10,190

 

4,679

 

14,869

Total assets

 

2,095,569

 

1,955,675

 

702,561

 

4,753,805

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2019

 

 

 

 

 

 

 

 

Net revenue

$

145,564

$

3,031,519

$

-

$

3,177,083

Operating income (loss)

 

(734,818)

 

67,162

 

(784,471)

 

(1,452,127)

Interest income

 

19,745

 

10

 

67,251

 

87,006

Interest expense

 

-

 

19,857

 

(3,402)

 

16,455

Property additions

 

-

 

8,159

 

-

 

8,159

Depreciation and amortization

 

-

 

7,959

 

8,796

 

16,755

Total assets

 

2,661,427

 

1,662,764

 

945,089

 

5,269,280

 

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

September 30,

 

Nine Months Ended

September 30,

 

 

2020

 

2019

 

2020

 

2019

Operating loss

$

(414,979)

$

(309,547)

$

(856,578)

$

(1,452,127)

Gain (loss) on investments

 

(2,758)

 

(45,638)

 

(8,676)

 

(1,747,608)

Interest income

 

24,968

 

21,541

 

65,504

 

87,006

Interest expense

 

(8,513)

 

(6,080)

 

(22,697)

 

(16,455)

Gain on equipment disposals

 

3,372

 

-

 

3,372

 

1,500

EIDL Advance

 

-

 

-

 

10,000

 

-

Other income

 

7,994

 

-

 

24,352

 

11,340

 

 

 

 

 

 

 

 

 

Income before income taxes

$

(389,916)

$

(339,724)

$

(784,723)

$

(3,116,344)