Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.10.0.1
SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
NOTE 15 - 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 June 30, 2018 and 2017 exclude intercompany receivable balances eliminated in consolidation.

 

    For the Three Months Ended June 30, 2018
(Unaudited)
 
    Herbs and Produce Products      Cannabis Dispensary, Cultivation and Production      Eliminations and Other      Total   
Total Revenues   $ 1,502,789     $ 7,203,971     $ 11,417     $ 8,718,177  
Cost of Goods Sold     958,694       5,551,060       -       6,509,754  
                                 
Gross Profit     544,095       1,652,911       11,417       2,208,423  
                                 
Selling, General and Administrative Expenses     994,906       2,823,524       4,183,940       8,002,370  
                                 
Loss from Operations     (450,811 )     (1,170,613 )     (4,172,523 )     (5,793,947 )
                                 
Other Income (Expense):                                
Amortization of Debt Discount     -       -       (417,363 )     (417,363 )
Loss on Extinguishment of Debt     -       -       (3,127,477 )     (3,127,477 )
Loss on Fair Market Valuation of Derivatives     -       -       (1,653,000 )     (1,653,000 )
Interest Expense     -       -       (331,379 )     (331,379 )
                                 
Total Other Income (Expense)     -       -       (5,529,219 )     (5,529,219 )
                                 
Net Loss   $ (450,811 )   $ (1,170,613 )   $ (9,701,742 )   $ (11,323,166 )
                                 
Total Assets at June 30, 2018   $ 6,320,906     $ 71,591,669     $ 31,878,438     $ 109,791,013  

    

    For the Three Months Ended June 30, 2017
(Unaudited)
 
    Herbs and Produce Products      Cannabis Dispensary, Cultivation and Production      Eliminations and Other      Total   
Total Revenues   $ 1,777,067     $ 6,049,319     $ 16,487     $ 7,842,873  
Cost of Goods Sold     1,325,729       5,010,771       -       6,336,500  
                                 
Gross Profit     451,338       1,038,548       16,487       1,506,373  
                                 
Selling, General and Administrative Expenses     855,999       2,210,475       2,962,813       6,029,287  
                    .          
Loss from Operations     (404,661 )     (1,171,927 )     (2,946,326 )     (4,522,914 )
                                 
Other Income (Expense):                                
Amortization of Debt Discount     -       -       (515,654 )     (515,654 )
Loss on Extinguishment of Debt     -       -       (1,639,137 )     (1,639,137 )
Gain on Fair Market Valuation of Derivatives     -       -       987,200       987,200  
Interest Expense     -       -       (130,510 )     (130,510 )
Loss on Fair Market Valuation of Contingent Consideration     -       (77,286 )     -       (77,286 )
Gain on Settlement of Contingent Consideration     -       4,991,571       -       4,991,571  
                                 
Total Other Income (Expense)     -       4,914,285       (1,298,101 )     3,616,184  
                                 
Net Income (Loss)   $ (404,661 )   $ 3,742,358     $ (4,244,427 )   $ (906,730 )
                                 
Total Assets at June 30, 2017   $ 7,104,469     $ 60,224,138     $ 9,550,062     $ 76,878,669  

  

   

For the Six Months Ended June 30, 2018

(Unaudited)

 
    Herbs and Produce Products      Cannabis Dispensary, Cultivation and Production      Eliminations and Other      Total   
Total Revenues   $ 2,786,690     $ 14,518,525     $ 28,328     $ 17,333,543  
Cost of Goods Sold     2,221,811       11,255,869       -       13,477,680  
                                 
Gross Profit     564,879       3,262,656       28,328       3,855,863  
                                 
Selling, General and Administrative Expenses     1,937,273       6,827,231       7,660,414       16,424,918  
                                 
Loss from Operations     (1,372,394 )     (3,564,575 )     (7,632,086 )     (12,569,055 )
                                 
Other Income (Expense):                                
Amortization of Debt Discount     -       -       (885,680 )     (885,680 )
Loss on Extinguishment of Debt     -       -       (7,858,723 )     (7,858,723 )
Gain on Fair Market Valuation of Derivatives     -       -       628,000       628,000  
Interest Expense     -       (397 )     (590,603 )     (591,000 )
                                 
Total Other Income (Expense)     -       (397 )     (8,707,006 )     (8,707,403 )
                                 
Net Loss   $ (1,372,394 )   $ (3,564,972 )   $ (16,339,092 )   $ (21,276,458 )
                                 
Total Assets at June 30, 2018   $ 6,320,906     $ 71,591,669     $ 31,878,438     $ 109,791,013  

  

   

For the Six Months Ended June 30, 2017

(Unaudited)

 
    Herbs and Produce Products      Cannabis Dispensary, Cultivation and Production      Eliminations and Other      Total   
Total Revenues   $ 2,694,210     $ 11,936,357     $ 36,762     $ 14,667,329  
Cost of Goods Sold     2,295,544       10,506,349       -       12,801,893  
                                 
Gross Profit     398,666       1,430,008       36,762       1,865,436  
                                 
Selling, General and Administrative Expenses     1,515,062       4,837,480       6,063,045       12,415,587  
                    .          
Loss from Operations     (1,116,396 )     (3,407,472 )     (6,026,283 )     (10,550,151 )
                                 
Other Income (Expense):                                
Amortization of Debt Discount     -       -       (1,126,270 )     (1,126,270 )
Loss on Extinguishment of Debt     -       -       (2,678,595 )     (2,678,595 )
Gain on Fair Market Valuation of Derivatives     -       -       2,597,950       2,597,950  
Interest Expense     -       -       (288,343 )     (288,343 )
Loss on Fair Market Valuation of Contingent Consideration     -       (4,426,047 )     -       (4,426,047 )
Gain on Settlement of Contingent Consideration     -       4,991,571       -       4,991,571  
                                 
Total Other Income (Expense)     -       565,524       (1,495,258 )     (929,734 )
                                 
Net Loss   $ (1,116,396 )   $ (2,841,948 )   $ (7,521,541 )   $ (11,479,885 )
                                 
Total Assets at June 30, 2017   $ 7,104,469     $ 60,224,138     $ 9,550,062     $ 76,878,669