| NOTE 14. SEGMENT INFORMATION |
The
Company’s operating and reportable segments are currently organized around the following products that it offers as part
of its core business strategy:
| |
· |
Herbs
and Produce Products – Includes herbs and leafy greens that are grown using classic Dutch hydroponic farming
methods. |
| |
|
|
| |
· |
Cannabis
Dispensary, Cultivation and Production – Includes cannabis-focused retail, cultivation and production. |
Summarized
financial information concerning the Company’s reportable segments is shown in the following tables. Total asset amounts
at March 31, 2018 and March 31, 2017 exclude intercompany receivable balances eliminated in consolidation.
| |
|
For
the Three Months Ended
March
31, 2018 (Unaudited)
|
|
| |
|
Herbs
and Produce Products |
|
|
Cannabis
Dispensary, Cultivation and Production |
|
|
Eliminations
and Other |
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Revenues |
|
$ |
1,283,901 |
|
|
$ |
7,314,554 |
|
|
$ |
16,911 |
|
|
$ |
8,615,366 |
|
| Cost
of Goods Sold |
|
|
1,263,117 |
|
|
|
5,704,809 |
|
|
|
- |
|
|
|
6,967,926 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
Profit |
|
|
20,784 |
|
|
|
1,609,745 |
|
|
|
16,911 |
|
|
|
1,647,440 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling,
General and Administrative Expenses |
|
|
942,367 |
|
|
|
4,003,707 |
|
|
|
3,476,474 |
|
|
|
8,422,548 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
from Operations |
|
|
(921,583 |
) |
|
|
(2,393,962 |
) |
|
|
(3,459,563 |
) |
|
|
(6,775,108 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of Debt Discount |
|
|
- |
|
|
|
- |
|
|
|
(468,317 |
) |
|
|
(468,317 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(4,731,246 |
) |
|
|
(4,731,246 |
) |
| Gain
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
2,281,000 |
|
|
|
2,281,000 |
|
| Interest
Expense |
|
|
- |
|
|
|
(397 |
) |
|
|
(259,224 |
) |
|
|
(259,621 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Other Income (Expense) |
|
|
- |
|
|
|
(397 |
) |
|
|
(3,177,787 |
) |
|
|
(3,178,184 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
Before Provision for Income Taxes |
|
$ |
(921,583 |
) |
|
$ |
(2,394,359 |
) |
|
$ |
(6,637,350 |
) |
|
$ |
(9,953,292 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Assets at March 31, 2018 |
|
$ |
6,086,415 |
|
|
$ |
72,403,323 |
|
|
$ |
29,354,695 |
|
|
$ |
107,844,433 |
|
| |
|
For
the Three Months Ended
March
31, 2017 (Unaudited)
|
|
| |
|
Herbs
and
Produce
Products
|
|
|
Cannabis
Dispensary, Cultivation and Production |
|
|
Eliminations
and
Other
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Revenues |
|
$ |
917,143 |
|
|
$ |
5,887,038 |
|
|
$ |
20,275 |
|
|
$ |
6,824,456 |
|
| Cost
of Goods Sold |
|
|
969,815 |
|
|
|
5,495,578 |
|
|
|
- |
|
|
|
6,465,393 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
Profit |
|
|
(52,672 |
) |
|
|
391,460 |
|
|
|
20,275 |
|
|
|
359,063 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling,
General and Administrative Expenses |
|
|
659,063 |
|
|
|
2,627,005 |
|
|
|
3,100,232 |
|
|
|
6,386,300 |
|
| |
|
|
|
|
|
|
|
|
|
. |
|
|
|
|
|
| Loss
from Operations |
|
|
(711,735 |
) |
|
|
(2,235,545 |
) |
|
|
(3,079,957 |
) |
|
|
(6,027,237 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of Debt Discount |
|
|
- |
|
|
|
- |
|
|
|
(610,616 |
) |
|
|
(610,616 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(1,039,458 |
) |
|
|
(1,039,458 |
) |
| Gain
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
1,610,750 |
|
|
|
1,610,750 |
|
| Interest
Expense |
|
|
- |
|
|
|
- |
|
|
|
(157,833 |
) |
|
|
(157,833 |
) |
| Loss
on Fair Market Valuation of Contingent Consideration |
|
|
- |
|
|
|
(4,348,761 |
) |
|
|
- |
|
|
|
(4,348,761 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Other Income (Expense) |
|
|
- |
|
|
|
(4,348,761 |
) |
|
|
(197,157 |
) |
|
|
(4,545,918 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
Before Provision for Income Taxes |
|
$ |
(711,735 |
) |
|
$ |
(6,584,306 |
) |
|
$ |
(3,277,114 |
) |
|
$ |
(10,573,155 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Assets at March 31, 2017 |
|
$ |
7,133,499 |
|
|
$ |
59,367,012 |
|
|
$ |
11,077,191 |
|
|
$ |
77,577,702 |
|
|