Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.8.0.1
SEGMENT INFORMATION
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
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