Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.2.2
Segment Information
 9 Months Ended
Sep. 30, 2022
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 NASDAQ, an investment in note receivable from a non-affiliated party, the fair value of convertible notes receivable and accrued interest from NeuCourt, which on July 15, 2022 was exchanged for a NeuCourt SAFE security investment that will be carried at cost, and the investment in NeuCourt that are included in the Corporate, Other, and Eliminations section below.

 

    Cannabis and Medical Marijuana Segment     Facility Operations Related     Corporate and Eliminations     Consolidated  
Three months ended September 30, 2022                        
Net revenue   $ 20,168     $ 1,910,131     $ -     $ 1,930,299  
Operating income (loss)     19,507       (314,565 )     (126,983 )     (422,041 )
Interest income     -       -       12,887       12,887  
Interest expense     -       10,564       9,719       20,283  
Property additions     -       18,334       -       18,334  
Depreciation and amortization     -       17,687       520       18,207  
                                 
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     -       9,831       7,333       16,714  
Property additions     -       92,013       1,264       93,277  
Depreciation and amortization     -       13,570       1,461       15,031  
                                 
Nine months ended September 30, 2022                                
Net revenue   $ 37,659     $ 5,610,158     $ -     $ 5,647,817  
Operating income (loss)     33,079       (360,192 )     (727,315 )     (1,054,428 )
Interest income     -       5       40,632       40,632  
Interest expense     -       31,743       26,309       58,052  
Property additions     -       46,236       -       46,236  
Depreciation and amortization     -       50,283       1,564       51,847  
Total assets     737,847       3,536,780       1,566,378       5,841,005  
                                 
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       16,478       43,899  
Property additions     -       107,290       1,264       108,554  
Depreciation and amortization     -       29,923       4,382       34,305  
Total assets     396,907       1,997,786       2,391,748       4,786,441  

 

 

Note 19 – Segment Information (continued)

 

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:

 

    2022     2021     2022     2021  
    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
    2022     2021     2022     2021  
Operating loss   $ (422,041 )   $ 86,327     $ (1,054,428 )   $ (385,706 )
Employee retention credits     -       -       1,350,161       -  
Gain (loss) on investments     590       (2,427 )     (39,661 )     (8,001 )
Interest income     12,887       16,269       40,632       49,003  
Interest expense     (20,283 )     (16,714 )     (58,052 )     (43,899 )
Gain on asset disposals     -       (671 )     56,455       761  
Paycheck protection program loan forgiveness     -       -       -       10,000  
Other income     56,128       4,032       58,026       4,429  
                                 
Income before income taxes   $ (372,719 )   $ 86,816     $ 353,133     $ (373,413 )