| NOTE 17 - 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 September 30, 2018 and 2017 exclude intercompany receivable balances eliminated in consolidation.
| |
|
For
the Three Months Ended September 30, 2018
(Unaudited) |
|
| |
|
Herbs
and Produce Products |
|
|
Cannabis
Dispensary, Cultivation and Production |
|
|
Eliminations
and Other |
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Revenues |
|
$ |
1,183,471 |
|
|
$ |
5,842,131 |
|
|
$ |
57,623 |
|
|
$ |
7,083,225 |
|
| Cost
of Goods Sold |
|
|
782,686 |
|
|
|
4,776,834 |
|
|
|
- |
|
|
|
5,559,520 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
Profit |
|
|
400,785 |
|
|
|
1,065,297 |
|
|
|
57,623 |
|
|
|
1,523,705 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling,
General and Administrative Expenses |
|
|
1,156,272 |
|
|
|
2,829,382 |
|
|
|
5,419,291 |
|
|
|
9,404,945 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
from Operations |
|
|
(755,487 |
) |
|
|
(1,764,085 |
) |
|
|
(5,361,668 |
) |
|
|
(7,881,240 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of Debt Discount |
|
|
- |
|
|
|
- |
|
|
|
(498,961 |
) |
|
|
(498,961 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(4,257,029 |
) |
|
|
(4,257,029 |
) |
| Loss
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
(103,600 |
) |
|
|
(103,600 |
) |
| Share
of Loss in Joint Venture |
|
|
- |
|
|
|
(439,354 |
) |
|
|
- |
|
|
|
(439,354 |
) |
| Interest
Income (Expense) |
|
|
- |
|
|
|
- |
|
|
|
(425,160 |
) |
|
|
(425,160 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Other Income (Expense) |
|
|
- |
|
|
|
(439,354 |
) |
|
|
(5,284,750 |
) |
|
|
(5,724,104 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
Loss |
|
$ |
(755,487 |
) |
|
$ |
(2,203,439 |
) |
|
$ |
(10,646,418 |
) |
|
$ |
(13,605,344 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Assets at September 30, 2018 |
|
$ |
6,152,630 |
|
|
$ |
71,160,430 |
|
|
$ |
37,331,597 |
|
|
$ |
114,644,657 |
|
| |
|
For
the Three Months Ended September 30, 2017
(Unaudited) |
|
| |
|
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 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(1,373,538 |
) |
|
|
(1,373,538 |
) |
| Impairment
of Property |
|
|
- |
|
|
|
- |
|
|
|
(138,037 |
) |
|
|
(138,037 |
) |
| Loss
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
(1,475,900 |
) |
|
|
(1,475,900 |
) |
| Interest
Income (Expense) |
|
|
- |
|
|
|
51 |
|
|
|
(119,701 |
) |
|
|
(119,650 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Other Income (Expense) |
|
|
- |
|
|
|
51 |
|
|
|
(3,597,244 |
) |
|
|
(3,597,193 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
Loss |
|
$ |
(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 Nine Months Ended September 30, 2018 (Unaudited) |
|
| |
|
Herbs
and Produce Products |
|
|
Cannabis
Dispensary, Cultivation and Production |
|
|
Eliminations
and Other |
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Revenues |
|
$ |
3,970,161 |
|
|
$ |
20,360,656 |
|
|
$ |
85,951 |
|
|
$ |
24,416,768 |
|
| Cost
of Goods Sold |
|
|
3,004,497 |
|
|
|
16,032,703 |
|
|
|
- |
|
|
|
19,037,200 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
Profit |
|
|
965,664 |
|
|
|
4,327,953 |
|
|
|
85,951 |
|
|
|
5,379,568 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling,
General and Administrative Expenses |
|
|
3,093,545 |
|
|
|
9,656,613 |
|
|
|
13,079,705 |
|
|
|
25,829,863 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss
from Operations |
|
|
(2,127,881 |
) |
|
|
(5,328,660 |
) |
|
|
(12,993,754 |
) |
|
|
(20,450,295 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization
of Debt Discount |
|
|
- |
|
|
|
- |
|
|
|
(1,384,641 |
) |
|
|
(1,384,641 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(12,115,752 |
) |
|
|
(12,115,752 |
) |
| Gain
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
524,400 |
|
|
|
524,400 |
|
| Share
of Loss in Joint Venture |
|
|
- |
|
|
|
(439,354 |
) |
|
|
- |
|
|
|
(439,354 |
) |
| Interest
Expense |
|
|
- |
|
|
|
(396 |
) |
|
|
(1,015,764 |
) |
|
|
(1,016,160 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Other Income (Expense) |
|
|
- |
|
|
|
(439,750 |
) |
|
|
(13,991,757 |
) |
|
|
(14,431,507 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
Loss |
|
$ |
(2,127,881 |
) |
|
$ |
(5,768,410 |
) |
|
$ |
(26,985,511 |
) |
|
$ |
(34,881,802 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Assets at September 30, 2018 |
|
$ |
6,152,630 |
|
|
$ |
71,160,430 |
|
|
$ |
37,331,597 |
|
|
$ |
114,644,657 |
|
| |
|
For
the Nine Months Ended September 30, 2017 (Unaudited) |
|
| |
|
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 |
) |
| Loss
on Extinguishment of Debt |
|
|
- |
|
|
|
- |
|
|
|
(4,052,133 |
) |
|
|
(4,052,133 |
) |
| Impairment
of Property |
|
|
- |
|
|
|
- |
|
|
|
(138,037 |
) |
|
|
(138,037 |
) |
| Gain
on Fair Market Valuation of Derivatives |
|
|
- |
|
|
|
- |
|
|
|
1,122,050 |
|
|
|
1,122,050 |
|
| Interest
Income (Expense) |
|
|
- |
|
|
|
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 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
Loss |
|
$ |
(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 |
|
|