Quarterly report pursuant to Section 13 or 15(d)

Segment Information

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Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information

Note 17 – Segment Information

 

Continuing Operations

 

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 historic residual operations segment, which included the cost basis of our former membership interests of Electrum, the former contractual interest in the Electrum legal recovery, the settlement payments receivable from G Farma and its co-defendants, the former finance lease payments receivable from Pueblo West to Partner II, the operation of subsidiaries Mentor IP and Partner I, and 2) its classic energy segment which will consist of the Company’s operations and investment in the classic energy space. The classic energy segment includes the fair value of securities investments in (i) oil and gas through Exxon Mobil Corp. (XOM) stock, Occidental Petroleum Corp. (OXY) stock, and Chevron Corp. (CVX) stock, (ii) uranium through Cameco Corp. (CCJ) stock, and (iii) coal through Arch Resources, Inc. (ARCH) stock. Additionally, the Company formerly 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, 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 is included in the Corporate, Other, and Eliminations section below. Segment information for our current operating segments is as follows:

 

    Energy Segment     Historic Segment     Corporate and Eliminations     Consolidated  
Three months ended March 31, 2024                                
Net revenue   $ -     $ -     $ -     $ -  
Operating income (loss)     -       (188 )     (271,075 )     (271,263 )
Interest income     5,574       -       41,525       47,099  
Interest expense     -       -       -       -  
Property additions     -       -       -       -  
Depreciation and amortization     -       -       269       269  
Total assets     678,850       2,284       3,625,225       4,306,359  
                                 
Three months ended March 31, 2023                                
Net revenue   $ -     $ -     $ -     $ -  
Operating income (loss)     -       (706 )     (170,735 )     (171,441 )
Interest income     -       -       6,659       6,659  
Interest expense     -       -       2,796       2,796  
Property additions     -       -       -       -  
Depreciation and amortization     -       -       238       238  
Total assets     -       812       1,607,618       1,608,430  

 

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes for the three months ended March 31, 2024 and 2023, as presented in the unaudited condensed consolidated income statements:

 

    2024     2023  
    Three Months Ended
March 31,		  
    2024     2023  
Operating loss   $ (271,263 )   $ (171,441 )
Unrealized gain (loss) on investments     31,487       -  
Interest income     47,099       6,659  
Interest expense     -       (2,796 )
Other income              
                 
Income before income taxes   $ (192,677 )   $ (167,578 )

 

 

Note 17 – Segment Information (continued) 

 

Discontinued Operation – Facilities Operations Segment

 

As disclosed in Note 3 of the consolidated financial statements, we sold our entire 51% ownership interest in WCI on October 4, 2023 for $6,000,000. Following our sale of WCI, we received no new income from WCI and had no further involvement or continuing influence over its operations. Consequently, our facilities operations segment was eliminated at the time of sale. Additionally, the results of operations associated with our facilities operations segment were excluded from our continuing operations and presented as a discontinued operation in our consolidated financial statements. WCI worked with business park owners, governmental centers, and apartment complexes to reduce their facility-related operating costs. The WCI segment is now reported as a discontinued operation. See Note 3 of the consolidated financial statements for detailed financial information on our former facilities operations segment.