Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.21.2
Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information

Note 19 – 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 generally has 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, and the operation of subsidiaries in the cannabis and medical marijuana sector; 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 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, 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 that its legal services would likely be more useful to users outside of the cannabis space. 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 and Eliminations     Consolidated  
Three months ended September 30, 2021                                
Net revenue   $ 9,972     $ 1,482,649     $ -     $ 1,492,624  
Operating income (loss)     6,426       196,565       (116,664 )     86,327  
Interest income     -       -       16,269       16,269  
Interest expense     -       9,381       7,333       16,714  
Property additions     -       92,013       1,264       93,277  
Depreciation and amortization     -       13,570       1,461       15,031  
                                 
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  
                                 
Nine months ended September 30, 2021                                
Net revenue   $ 31,176     $ 4,154,711     $ -     $ 4,185,887  
Operating income (loss)     20,876       11,062       (417,644 )     (385,706 )
Interest income     -       -       49,003       49,003  
Interest expense     -       27,421       (23,032 )     4,389  
Property additions     -       107,290       1,264       108,554  
Depreciation and amortization     -       29,923       4,382       34,305  
Total assets     396,907       1,997,786       2,153,940       4,548,633  
                                 
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  

 

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:

 

Schedule of reconciliation of revenue from segments to consolidated

    2021     2020     2021     2020  
    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
    2021     2020     2021     2020  
Operating loss   $ 86,327     $ (414,979 )   $ (385,706 )   $ (856,578 )
Gain (loss) on investments     (2,427 )     (2,758 )     (9,001 )     (8,676 )
Interest income     16,269       24,968       49,003       65,504  
Interest expense     (16,714 )     (8,513 )     (43,899 )     (22,697 )
Gain on equipment disposals     (671 )     3,372       761       3,372  
EIDL Advance     -       -       -       10,000  
Other income     4,032       7,994       15,429       24,352  
                                 
Income before income taxes   $ 86,816     $ (389,916 )   $ (373,413 )   $ (784,723 )