Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 19 – Segment Information

The Company is an operating, acquisition, and investment business. Subsidiaries in which the Company has a controlling financial interest are consolidated. The Company generally has two reportable segments: 1) the cannabis and medical marijuana segment, which includes the cost basis of membership interests of Electrum, the contractual interest in the Electrum legal recovery, and the operation of subsidiaries in the cannabis and medical marijuana sector; and 2) the Company’s long-standing investment in WCI which works with business park owners, governmental centers, and apartment complexes to reduce their facility-related operating costs. The Company also had small investments in securities listed on the NASDAQ, an investment in note receivable from a non-affiliated party, the fair value of convertible notes receivable and accrued interest from NeuCourt, and the investment in NeuCourt that is included in the Corporate, Other, and Eliminations section below. The NeuCourt investments were previously reported as an investment that would be useful in the cannabis space; however, NeuCourt has determined that its legal services would likely be more useful to users outside of the cannabis space. Prior period segment information presented below contains reclassification of NeuCourt investments from the cannabis and medical marijuana segment to the Corporate, other, and eliminations segment.

	Cannabis and Medical Marijuana Segment		Facility Operations Related			Corporate and Eliminations			Consolidated
Three months ended June 30, 2022
Net revenue	$	8,473	$	1,860,146		$	-		$	1,868,619
Operating income (loss)		8,080		(232,777	)		(439,064	)		(663,761	)
Interest income		-		-			13,391			13,391
Interest expense		-		10,386			9,176			19,562
Property additions		-		-			-			-
Depreciation and amortization		-		17,750			-			17,750
Three months ended June 30, 2021
Net revenue	$	10,330	$	1,362,308		$	-		$	1,372,638
Operating income (loss)		8,324		(181,557	)		(134,057	)		(307,290	)
Interest income		-		-			16,245			16,245
Interest expense		-		9,831			5,733			15,114
Property additions		-		7,416			1,264			8,680
Depreciation and amortization		-		8,393			1,461			9,854
Six months ended June 30, 2022
Net revenue	$	17,491	$	3,700,027		$	-		$	3,717,518
Operating income (loss)		13,571		(45,627	)		(600,329	)		(632,385	)
Interest income		-		-			27,744			27,744
Interest expense		-		21,180			16,589			37,769
Property additions		-		27,902			-			27,902
Depreciation and amortization		-		32,596			1,044			33,640
Total assets		859,439		3,806,899			1,480,319			6,146,657
Six months ended June 30, 2021
Net revenue	$	21,200	$	2,672,147		$	-		$	2,693,262
Operating income (loss)		14,450		(185,503	)		(300,982	)		(472,035	)
Interest income		-		-			32,735			32,735
Interest expense		-		17,879			9,306			27,185
Property additions		-		10,235			1,264			16,539
Depreciation and amortization		-		16,353			2,921			19,274
Total assets		394,926		1,944,190			2,188,586			4,527,702

The following table reconciles operating segments and corporate-unallocated operating income (loss) to consolidated income before income taxes, as presented in the unaudited condensed consolidated income statements:

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Operating loss	$	(663,761	)	$	(307,290	)	$	(632,385	)	$	(472,035	)
Employee retention credits		1,350,161			-			1,350,161			-
Gain (loss) on investments		929			(11,423	)		(40,251	)		(6,574	)
Interest income		13,391			16,245			27,744			32,735
Interest expense		(19,562	)		(15,114	)		(37,769	)		(27,185	)
Gain on asset disposals		30,287			2,074			56,455			1,432
EIDL Advance		-			-			-			10,000
Other income		1,897			2,450			1,897			1,398
Income before income taxes	$	713,342		$	(313,058	)	$	725,852		$	(460,229	)