Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.19.1
SEGMENT INFORMATION
3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
NOTE 18. SEGMENT INFORMATION

During 2018, the Company acquired additional real property and determined that a previously insignificant operating segment “Real Estate and Construction” is now significant and is a reportable segment requiring disclosure in accordance with ASC 280. Prior period information below has been revised to conform to current period presentation. We are now organized into three reportable segments:

 

  · 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.
     
  · Real Estate and Construction – Includes building ownership where cannabis dispensary and/or cultivation operations are currently in development.

 

Summarized financial information concerning the Company’s reportable segments is shown in the following tables.

 

Total asset amounts at March 31, 2019 and 2018 exclude intercompany receivable balances eliminated in consolidation. 

 

   

For the Three Months Ended March 31, 2019

(Unaudited)

(in thousands)

 
    Herbs and Produce Products     Cannabis Dispensary, Cultivation and Production     Real Estate    

Eliminations

and Other

    Total  
                               
Total Revenues   $ 1,304     $ 6,813     $ 207     $ (966 )   $ 7,358  
Cost of Goods Sold     903       3,151       92       (792 )     3,354  
                                         
Gross Profit     401       3,662       114       (174 )     4,004  
                                         
Selling, General and Administrative Expenses     1,081       4,236       592       5,539       11,449  
                                         
Loss from Operations     (680 )     (574 )     (478 )     (5,713 )     (7,445 )
                                         
Other Income (Expense):                                        
Amortization of Debt Discount     -       -       -       -       -  
Loss on Extinguishment of Debt     -       -       -       -       -  
Gain/(Loss) on Fair Market Valuation of Derivatives     -       -       -       -       -  
Interest Income (Expense)     -       (141 )     (278 )     (2,508 )     (2,928 )
Other Income / (Loss)     -       36       -       11       48  
Gain on Interest in Joint Venture     -       -       -       5,599       5,599  
                                         
Total Other Income (Expense)     -       (105 )     (278 )     3,102       2,719  
                                         
Net Loss   $ (680 )   $ (679 )   $ (756 )   $ (2,611 )   $ (4,725 )
                                         
Total Assets at March 31, 2019   $ 5,954     $ 99,344     $ 18,120     $ 16,116     $ 139,534  

    

   

For the Three Months Ended March 31, 2018

(Unaudited)

(in thousands)

 
    Herbs and Produce Products     Cannabis Dispensary, Cultivation and Production     Real Estate     Eliminations and Other     Total  
                               
Total Revenues   $ 1,284     $ 7,315     $ -     $ 17     $ 8,615  
Cost of Goods Sold     1,263       4,231       -       -       5,494  
                                         
Gross Profit     21       3,084       -       17       3,122  
                                         
Selling, General and Administrative Expenses     942       5,478       -       3,476       9,897  
                            .          
Loss from Operations     (922 )     (2,394 )     -       (3,460 )     (6,775 )
                                         
Other Income (Expense):                                        
Amortization of Debt Discount     -       -       -       (468 )     (468 )
Loss on Extinguishment of Debt     -       -       -       (4,731 )     (4,731 )
Gain/(Loss) on Fair Market Valuation of Derivatives     -       -       -       2,281       2,281  
Interest Income (Expense)     -       (0 )     -       (259 )     (260 )
Other Income / (Loss)     -       -       -       -       -  
                                         
Total Other Income (Expense)     -       (0 )     -       (3,178 )     (3,178 )
                                         
Net Loss   $ (922 )   $ (2,394 )   $ -     $ (6,637 )   $ (9,953 )
                                         
Total Assets at March 31, 2018   $ 6,086     $ 72,403     $ -     $ 29,355     $ 107,844