Segment Information

9 Months Ended

Sep. 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, which on July 15, 2022 was exchanged for a NeuCourt SAFE security investment that will be carried at cost, and the investment in NeuCourt that are included in the Corporate, Other, and Eliminations section below.

	Cannabis and Medical Marijuana Segment		Facility Operations Related			Corporate and Eliminations			Consolidated
Three months ended September 30, 2022
Net revenue	$	20,168	$	1,910,131		$	-		$	1,930,299
Operating income (loss)		19,507		(314,565	)		(126,983	)		(422,041	)
Interest income		-		-			12,887			12,887
Interest expense		-		10,564			9,719			20,283
Property additions		-		18,334			-			18,334
Depreciation and amortization		-		17,687			520			18,207
Three months ended September 30, 2021
Net revenue	$	9,972	$	1,482,649		$	-		$	1,492,624
Operating income (loss)		6,426		196,565			(116,664	)		86,327
Interest income		-		-			16,269			16,269
Interest expense		-		9,831			7,333			16,714
Property additions		-		92,013			1,264			93,277
Depreciation and amortization		-		13,570			1,461			15,031
Nine months ended September 30, 2022
Net revenue	$	37,659	$	5,610,158		$	-		$	5,647,817
Operating income (loss)		33,079		(360,192	)		(727,315	)		(1,054,428	)
Interest income		-		5			40,632			40,632
Interest expense		-		31,743			26,309			58,052
Property additions		-		46,236			-			46,236
Depreciation and amortization		-		50,283			1,564			51,847
Total assets		737,847		3,536,780			1,566,378			5,841,005
Nine months ended September 30, 2021
Net revenue	$	31,176	$	4,154,711		$	-		$	4,185,887
Operating income (loss)		20,876		11,062			(417,644	)		(385,706	)
Interest income		-		-			49,003			49,003
Interest expense		-		27,421			16,478			43,899
Property additions		-		107,290			1,264			108,554
Depreciation and amortization		-		29,923			4,382			34,305
Total assets		396,907		1,997,786			2,391,748			4,786,441

Note 19 – Segment Information (continued)

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 September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Operating loss	$	(422,041	)	$	86,327		$	(1,054,428	)	$	(385,706	)
Employee retention credits		-			-			1,350,161			-
Gain (loss) on investments		590			(2,427	)		(39,661	)		(8,001	)
Interest income		12,887			16,269			40,632			49,003
Interest expense		(20,283	)		(16,714	)		(58,052	)		(43,899	)
Gain on asset disposals		-			(671	)		56,455			761
Paycheck protection program loan forgiveness		-			-			-			10,000
Other income		56,128			4,032			58,026			4,429
Income before income taxes	$	(372,719	)	$	86,816		$	353,133		$	(373,413	)