| 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 |
|
|