| 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. |
During 2019, the San Leandro retail dispensary commenced operations and the associated operating segment is now included in the Cannabis Dispensary, Cultivation and Production reportable segment. Additionally, during 2019, a real estate operating segment held assets that were reclassified as held for sale, as they met the requirements for such classification under ASC 360. As the assets are no longer utilized for cannabis retail operations, the related operating segment is now included in the Real Estate and Construction reportable segment. Prior period information has been revised to conform to the current period presentation. Summarized financial information concerning the Companys reportable segments is shown in the following tables.
Total asset amounts at June 30, 2019 and 2018 exclude intercompany receivable balances eliminated in consolidation.
|
|
For the Three Months Ended June 30, 2019
(Unaudited) (in thousands)
|
|
|
|
Herbs and
Produce Products
|
|
|
Cannabis Dispensary, Cultivation and Production |
|
|
Real
Estate
|
|
|
Eliminations
and Other
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
$ |
1,816 |
|
|
$ |
10,076 |
|
|
$ |
17 |
|
|
$ |
(1,537 |
) |
|
$ |
10,372 |
|
Cost of Goods Sold |
|
|
1,599 |
|
|
|
4,749 |
|
|
|
- |
|
|
|
(891 |
) |
|
|
5,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
217 |
|
|
|
5,327 |
|
|
|
17 |
|
|
|
(646 |
) |
|
|
4,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
|
|
1,241 |
|
|
|
5,561 |
|
|
|
308 |
|
|
|
4,938 |
|
|
|
12,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations |
|
|
(1,024 |
) |
|
|
(234 |
) |
|
|
(291 |
) |
|
|
(5,584 |
) |
|
|
(7,133 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Subsidiaries |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of Property and Equipment |
|
|
- |
|
|
|
(114 |
) |
|
|
- |
|
|
|
(396 |
) |
|
|
(510 |
) |
Interest Income (Expense) |
|
|
- |
|
|
|
141 |
|
|
|
(695 |
) |
|
|
(3,507 |
) |
|
|
(4,061 |
) |
Other Income / (Loss) |
|
|
- |
|
|
|
18 |
|
|
|
6 |
|
|
|
998 |
|
|
|
1,022 |
|
Gain on Interest in Joint Venture |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
350 |
|
|
|
350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
- |
|
|
|
45 |
|
|
|
(689 |
) |
|
|
(2,555 |
) |
|
|
(3,199 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(1,024 |
) |
|
$ |
(189 |
) |
|
$ |
(980 |
) |
|
$ |
(8,139 |
) |
|
$ |
(10,332 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets at June 30, 2019 |
|
$ |
6,902 |
|
|
$ |
106,251 |
|
|
$ |
22,812 |
|
|
$ |
8,252 |
|
|
$ |
144,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Held for Sale at June 30, 2019 |
|
$ |
- |
|
|
$ |
2,471 |
|
|
$ |
8,651 |
|
|
$ |
- |
|
|
$ |
11,122 |
|
|
|
For the Six Months Ended June 30, 2019 (Unaudited) (in thousands) |
|
|
|
Herbs and Produce Products |
|
|
Cannabis Dispensary, Cultivation and Production |
|
|
Real Estate |
|
|
Eliminations and Other |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
$ |
3,120 |
|
|
$ |
17,079 |
|
|
$ |
34 |
|
|
$ |
(2,503 |
) |
|
$ |
17,730 |
|
Cost of Goods Sold |
|
|
2,502 |
|
|
|
7,992 |
|
|
|
- |
|
|
|
(1,684 |
) |
|
|
8,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
618 |
|
|
|
9,087 |
|
|
|
34 |
|
|
|
(819 |
) |
|
|
8,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
|
|
2,322 |
|
|
|
10,407 |
|
|
|
357 |
|
|
|
10,478 |
|
|
|
23,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations |
|
|
(1,704 |
) |
|
|
(1,320 |
) |
|
|
(323 |
) |
|
|
(11,297 |
) |
|
|
(14,645 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Subsidiaries |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of Assets |
|
|
- |
|
|
|
(114 |
) |
|
|
- |
|
|
|
(396 |
) |
|
|
(510 |
) |
Interest Income (Expense) |
|
|
- |
|
|
|
- |
|
|
|
(973 |
) |
|
|
(6,016 |
) |
|
|
(6,989 |
) |
Other Income / (Loss) |
|
|
- |
|
|
|
54 |
|
|
|
6 |
|
|
|
1,010 |
|
|
|
1,070 |
|
Gain on Interest in Joint Venture |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,949 |
|
|
|
5,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
- |
|
|
|
(60 |
) |
|
|
(967 |
) |
|
|
547 |
|
|
|
(480 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(1,704 |
) |
|
$ |
(1,380 |
) |
|
$ |
(1,290 |
) |
|
$ |
(10,750 |
) |
|
$ |
(15,125 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets at June 30, 2019 |
|
$ |
6,902 |
|
|
|
106,251 |
|
|
|
22,812 |
|
|
|
8,252 |
|
|
|
144,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Held for Sale at June 30, 2019 |
|
$ |
- |
|
|
$ |
2,471 |
|
|
$ |
8,651 |
|
|
$ |
- |
|
|
$ |
11,122 |
|
|
|
For the Three Months Ended June 30, 2018
(Unaudited)(in thousands)
|
|
|
|
Herbs and Produce Products |
|
|
Cannabis Dispensary, Cultivation and Production |
|
|
Real Estate |
|
|
Eliminations and Other |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
$ |
1,696 |
|
|
$ |
7,151 |
|
|
$ |
11 |
|
|
$ |
(140 |
) |
|
$ |
8,718 |
|
Cost of Goods Sold |
|
|
1,106 |
|
|
|
4,040 |
|
|
|
- |
|
|
|
(100 |
) |
|
|
5,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
590 |
|
|
|
3,111 |
|
|
|
11 |
|
|
|
(40 |
) |
|
|
3,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
|
|
995 |
|
|
|
4,340 |
|
|
|
76 |
|
|
|
4,451 |
|
|
|
9,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations |
|
|
(405 |
) |
|
|
(1,229 |
) |
|
|
(65 |
) |
|
|
(4,491 |
) |
|
|
(6,190 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income (Expense) |
|
|
- |
|
|
|
- |
|
|
|
(346 |
) |
|
|
(3,330 |
) |
|
|
(3,676 |
) |
Other Income / (Loss) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
- |
|
|
|
(0 |
) |
|
|
(346 |
) |
|
|
(3,330 |
) |
|
|
(3,676 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(405 |
) |
|
$ |
(1,229 |
) |
|
$ |
(411 |
) |
|
$ |
(7,821 |
) |
|
$ |
(9,866 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets at June 30, 2018 |
|
$ |
6,321 |
|
|
$ |
71,592 |
|
|
$ |
- |
|
|
$ |
31,878 |
|
|
$ |
109,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Held for Sale at June 30, 2018 |
|
$ |
- |
|
|
$ |
904 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
904 |
|
|
|
For the Six Months Ended June 30, 2018 |
|
|
|
Herbs and Produce Products |
|
|
Cannabis Dispensary, Cultivation and Production |
|
|
Real Estate |
|
|
Eliminations and Other |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
$ |
2,980 |
|
|
$ |
14,213 |
|
|
$ |
28 |
|
|
$ |
113 |
|
|
$ |
17,334 |
|
Cost of Goods Sold |
|
|
2,405 |
|
|
|
7,960 |
|
|
|
- |
|
|
|
174 |
|
|
|
10,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
575 |
|
|
|
6,253 |
|
|
|
28 |
|
|
|
(61 |
) |
|
|
6,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and Administrative Expenses |
|
|
1,937 |
|
|
|
9,766 |
|
|
|
365 |
|
|
|
8,087 |
|
|
|
20,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Operations |
|
|
(1,362 |
) |
|
|
(3,513 |
) |
|
|
(337 |
) |
|
|
(8,148 |
) |
|
|
(13,360 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
- |
|
|
|
- |
|
|
|
(588 |
) |
|
|
(8,014 |
) |
|
|
(8,602 |
) |
Other Income / (Loss) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense) |
|
|
- |
|
|
|
- |
|
|
|
(588 |
) |
|
|
(8,014 |
) |
|
|
(8,602 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(1,362 |
) |
|
$ |
(3,513 |
) |
|
$ |
(925 |
) |
|
$ |
(16,162 |
) |
|
$ |
(21,962 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets at June 30, 2018 |
|
$ |
6,321 |
|
|
$ |
71,592 |
|
|
$ |
- |
|
|
$ |
31,878 |
|
|
$ |
109,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Held for Sale at June 30, 2018 |
|
$ |
- |
|
|
$ |
904 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
904 |
|
|