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Note 10 - Non-Controlling Interest
3 Months Ended
Jun. 30, 2019
Noncontrolling Interest [Abstract]  
Note 10 - Non-Controlling Interest

Note 10 – Non-Controlling Interest

 

On February 12, 2018, the Company’s wholly-owned subsidiary, GB Sciences Louisiana, LLC (“GBLA"), issued members’ equity interests equal to 15% in GBLA to Wellcana Group, LLC (“Wellcana”) for $3 million. Under the GBSLA operating agreement, Wellcana had an option to make additional capital contributions for the purchase of up to an additional 35% membership interest in GBLA, at the rate of 5% membership interest per $1 million contributed. To date, Wellcana has made additional cash contributions of $7.0 million and its non-controlling interest in GBSLA increased to 49.99%. The capital contributions have been used to fund the buildout of the Petroleum Drive facility and to pay for the operating costs of GBLA.

 

The Company maintains a majority interest in GBLA and continues to exercise control over the management and operations of GBLA. Accordingly, GBLA is consolidated in the Company’s condensed consolidated financial statements for the three months ended June 30, 2019. The net loss attributable to the non-controlling interest in GBLA was $132,216 for the three months ended June 30, 2019.