| Summarized financial information |
Summarized
financial information concerning the Companys reportable segments is shown in the following tables. Total assets at September
30, 2017 and 2016 exclude intercompany receivable balances eliminated in consolidation.
| |
|
For
the Three Months Ended September 30, 2017 |
|
| |
|
Herbs
and
Produce
Products
|
|
|
Cannabis
Dispensary, Cultivation and Production |
|
|
Eliminations
and
Other
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Revenues |
|
$ |
1,432,500 |
|
|
$ |
8,673,560 |
|
|
$ |
15,315 |
|
|
$ |
10,121,375 |
|
| Cost
of Goods Sold |
|
|
1,192,251 |
|
|
|
6,594,186 |
|
|
|
- |
|
|
|
7,786,437 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
Profit |
|
|
240,249 |
|
|
|
2,079,374 |
|
|
|
15,315 |
|
|
|
2,334,938 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling,
General and Administrative Expenses |
|
|
874,141 |
|
|
|
2,822,488 |
|
|
|
2,541,481 |
|
|
|
6,238,110 |
|
| |
|
|
|
|
|
|
|
|
|
. |
|
|
|
|
|
| Loss
from Operations |
|
|
(633,892 |
) |
|
|
(743,114 |
) |
|
|
(2,526,166 |
) |
|
|
(3,903,172 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of Debt Discount |
|
|
- |
|
|
|
- |
|
|
|
(490,068 |
) |
|
|
(490,068 |
) |
| Impairment
of Property |
|
|
- |
|
|
|
- |
|
|
|
(138,037 |
) |
|
|
(138,037 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(1,373,538 |
) |
|
|
(1,373,538 |
) |
| Loss
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
(1,475,900 |
) |
|
|
(1,475,900 |
) |
| Interest
(Expense) Income |
|
|
- |
|
|
|
51 |
|
|
|
(119,701 |
) |
|
|
(119,650 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Other Income (Expense) |
|
|
- |
|
|
|
51 |
|
|
|
(3,597,244 |
) |
|
|
(3,597,193 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
Before Provision for Income Taxes |
|
$ |
(633,892 |
) |
|
$ |
(743,063 |
) |
|
$ |
(6,123,410 |
) |
|
$ |
(7,500,365 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Assets at September 30, 2017 |
|
$ |
6,914,892 |
|
|
$ |
68,290,922 |
|
|
$ |
12,151,701 |
|
|
$ |
87,357,515 |
|
| |
|
For
the Three Months Ended September 30, 2016 |
|
| |
|
Herbs
and
Produce
Products
|
|
|
Cannabis
Dispensary, Cultivation and Production |
|
|
Eliminations
and
Other
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Revenues |
|
$ |
2,138,260 |
|
|
$ |
4,769,912 |
|
|
$ |
42,193 |
|
|
$ |
6,950,365 |
|
| Cost
of Goods Sold |
|
|
1,921,093 |
|
|
|
3,747,841 |
|
|
|
25,355 |
|
|
|
5,694,289 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
Profit |
|
|
217,167 |
|
|
|
1,022,071 |
|
|
|
16,838 |
|
|
|
1,256,076 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling,
General and Administrative Expenses |
|
|
642,441 |
|
|
|
1,920,468 |
|
|
|
3,379,727 |
|
|
|
5,942,636 |
|
| |
|
|
|
|
|
|
|
|
|
. |
|
|
|
|
|
| Loss
from Operations |
|
|
(425,274 |
) |
|
|
(898,397 |
) |
|
|
(3,362,889 |
) |
|
|
(4,686,560 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of Debt Discount |
|
|
- |
|
|
|
- |
|
|
|
(610,089 |
) |
|
|
(610,089 |
) |
| Loss from Derivatives Issued with Debt Greater than
Debt Carrying Value |
|
|
- |
|
|
|
- |
|
|
|
(867,000 |
) |
|
|
(867,000 |
) |
| Gain
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
771,000 |
|
|
|
771,000 |
|
| Interest
Expense |
|
|
- |
|
|
|
(250 |
) |
|
|
(159,383 |
) |
|
|
(159,633 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Other Income (Expense) |
|
|
- |
|
|
|
(250 |
) |
|
|
(865,472 |
) |
|
|
(865,722 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
Before Provision for Income Taxes |
|
$ |
(425,274 |
) |
|
$ |
(898,647 |
) |
|
$ |
(4,228,361 |
) |
|
$ |
(5,552,282 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Assets at September 30, 2016 |
|
$ |
6,725,967 |
|
|
$ |
2,390,233 |
|
|
$ |
60,849,033 |
|
|
$ |
69,965,233 |
|
| |
|
For
the Nine Months Ended September 30, 2017 |
|
| |
|
Herbs
and
Produce
Products
|
|
|
Cannabis
Dispensary, Cultivation and Production |
|
|
Eliminations
and
Other
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Revenues |
|
$ |
4,126,710 |
|
|
$ |
20,609,917 |
|
|
$ |
52,077 |
|
|
$ |
24,788,704 |
|
| Cost
of Goods Sold |
|
|
3,487,795 |
|
|
|
17,100,535 |
|
|
|
- |
|
|
|
20,588,330 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
Profit |
|
|
638,915 |
|
|
|
3,509,382 |
|
|
|
52,077 |
|
|
|
4,200,374 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling,
General and Administrative Expenses |
|
|
2,389,203 |
|
|
|
7,659,968 |
|
|
|
8,604,526 |
|
|
|
18,653,697 |
|
| |
|
|
|
|
|
|
|
|
|
. |
|
|
|
|
|
| Loss
from Operations |
|
|
(1,750,288 |
) |
|
|
(4,150,586 |
) |
|
|
(8,552,449 |
) |
|
|
(14,453,323 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of Debt Discount |
|
|
- |
|
|
|
- |
|
|
|
(1,616,338 |
) |
|
|
(1,616,338 |
) |
| Impairment
of Property |
|
|
- |
|
|
|
- |
|
|
|
(138,037 |
) |
|
|
(138,037 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(4,052,133 |
) |
|
|
(4,052,133 |
) |
| Gain
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
1,122,050 |
|
|
|
1,122,050 |
|
| Interest
(Expense) Income |
|
|
- |
|
|
|
51 |
|
|
|
(408,044 |
) |
|
|
(407,993 |
) |
| 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) |
|
|
- |
|
|
|
565,575 |
|
|
|
(5,092,502 |
) |
|
|
(4,526,927 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
Before Provision for Income Taxes |
|
$ |
(1,750,288 |
) |
|
$ |
(3,585,011 |
) |
|
$ |
(13,644,951 |
) |
|
$ |
(18,980,250 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Assets at September 30, 2017 |
|
$ |
6,914,892 |
|
|
$ |
68,290,922 |
|
|
$ |
12,151,701 |
|
|
$ |
87,357,515 |
|
| |
|
For
the Nine Months Ended September 30, 2016 |
|
| |
|
Herbs
and
Produce
Products
|
|
|
Cannabis
Dispensary, Cultivation and Production |
|
|
Eliminations
and
Other
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Revenues |
|
$ |
9,413,121 |
|
|
$ |
8,669,092 |
|
|
$ |
116,228 |
|
|
$ |
18,198,441 |
|
| Cost
of Goods Sold |
|
|
8,758,524 |
|
|
|
6,557,137 |
|
|
|
65,203 |
|
|
|
15,380,864 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
Profit |
|
|
654,597 |
|
|
|
2,111,955 |
|
|
|
51,025 |
|
|
|
2,817,577 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling,
General and Administrative Expenses |
|
|
1,798,051 |
|
|
|
3,772,056 |
|
|
|
7,663,781 |
|
|
|
13,233,888 |
|
| |
|
|
|
|
|
|
|
|
|
. |
|
|
|
|
|
| Loss
from Operations |
|
|
(1,143,454 |
) |
|
|
(1,660,101 |
) |
|
|
(7,612,756 |
) |
|
|
(10,416,311 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of Debt Discount |
|
|
- |
|
|
|
- |
|
|
|
(922,621 |
) |
|
|
(922,621 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(920,797 |
) |
|
|
(920,797 |
) |
| Loss from Derivatives Issued with Debt Greater than
Debt Carrying Value |
|
|
- |
|
|
|
- |
|
|
|
(1,355,000 |
) |
|
|
(1,355,000 |
) |
| Loss on
Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
(595,700 |
) |
|
|
(595,700 |
) |
| Interest
Expense |
|
|
- |
|
|
|
- |
|
|
|
(276,193 |
) |
|
|
(276,193 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Other Income (Expense) |
|
|
- |
|
|
|
- |
|
|
|
(4,070,311 |
) |
|
|
(4,070,311 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
Before Provision for Income Taxes |
|
$ |
(1,143,454 |
) |
|
$ |
(1,660,101 |
) |
|
$ |
(11,683,067 |
) |
|
$ |
(14,486,622 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Assets at September 30, 2016 |
|
$ |
6,725,967 |
|
|
$ |
2,390,233 |
|
|
$ |
60,849,033 |
|
|
$ |
69,965,233 |
|
|