EX-12.1 4 exh12_01.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 12.1

Exhibit 12.1

GENERAL CANNABIS CORP

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


 

 

Nine Months

 

 

 

 

 

 

 

Period From

 

 

Ended

 

 

 

 

 

 

 

June 5, 2013 to

 

 

September 30,

 

Years Ended December 31,

 

December 31,

 

 

2017

 

2016

 

2015

 

2014

 

2013

Earnings:

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss) before equity investment

$

4,255,197

$

(32,799,677)

$

(8,786,277)

$

(6,930,139)

$

(710,962)

Fixed charges

 

1,374,812

 

6,288,589

 

1,753,500

 

1,000,496

 

1,665

Amortization of capitalized interest

 

—

 

—

 

—

 

—

 

—

Pre-tax losses of equity investees

 

—

 

—

 

—

 

—

 

—

Less:

Capitalized interest

 

—

 

—

 

—

 

—

 

—

Preferred dividends

 

—

 

—

 

—

 

—

 

—

Equity investment

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Earnings as adjusted

$

5,630,009

$

(26,511,088)

$

(7,032,777)

$

(5,929,643)

$

(709,297)

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

Interest expense

$

240,380

$

5,476,084

$

300,669

$

244,771

$

871

Interest capitalized

 

—

 

—

 

—

 

—

 

—

Debt-related amortization(a)

 

1,134,432

 

812,505

 

1,452,831

 

755,725

 

794

Interest within rental expense

 

—

 

—

 

—

 

—

 

—

Total fixed charges

$

1,374,812

$

6,288,589

$

1,753,500

$

1,000,496

$

1,665

 

 

 

 

 

 

 

 

 

 

 

Ratio:

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

4.1

 

(b)

 

(c)

 

(d)

 

(e)


(a)

Debt-related amortization includes amortization of debt discount.

(b)

The ratio was less than 1:1 for the year ended December 31, 2016 as earnings were inadequate to cover fixed charges by approximately $26.5 million.

(c)

The ratio was less than 1:1 for the year ended December 31, 2015 as earnings were inadequate to cover fixed charges by approximately $7.0 million.

(d)

The ratio was less than 1:1 for the year ended December 31, 2014 as earnings were inadequate to cover fixed charges by approximately $5.9 million.

(e)

The ratio was less than 1:1 for the period from June 5, 2013 (inception) to December 31, 2013 as earnings were inadequate to cover fixed charges by approximately $0.7 million.