UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
for the quarterly period ended
for the transition period from ____________ to ____________.
Commission file number:
(Exact name of registrant as specified in its charter)
| ||
(State of incorporation) | (IRS Employer Identification No.) | |
(Address of principal executive offices) (Zip Code) | ||
( | ||
(Registrant’s Telephone Number, Including Area Code) |
Securities registered pursuant to Section 12(b) of the Act:
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company” and “emerging growth company” in rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ |
☑ | Smaller reporting company | ||
Emerging growth company |
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of November 10, 2020, there were
GENERAL CANNABIS CORP
FORM 10-Q
TABLE OF CONTENTS
3 | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 23 | |
30 | ||
30 | ||
32 | ||
32 | ||
32 | ||
32 | ||
32 | ||
32 | ||
32 | ||
33 | ||
34 |
2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GENERAL CANNABIS CORP
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2020 | ||||||
(Unaudited) | December 31, 2019 | |||||
ASSETS |
|
|
|
| ||
Current assets |
|
|
|
| ||
Cash and cash equivalents | $ | | $ | | ||
Accounts receivable, net of allowance of $ |
| |
| | ||
Current portion of notes receivable, net of allowance of $ |
| |
| | ||
Inventories, net | | — | ||||
Prepaid expenses and other current assets |
| |
| | ||
Assets of discontinued operations |
| |
| | ||
Total current assets |
| |
| | ||
Note receivable, net |
| — |
| | ||
Right-of-use operating lease asset | | — | ||||
Property and equipment, net |
| |
| | ||
Investment |
| |
| | ||
Intangible assets, net | | — | ||||
Goodwill | | — | ||||
Assets of discontinued operations |
| — |
| | ||
Total assets | $ | | $ | | ||
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
| ||
Current liabilities |
|
|
|
| ||
Accounts payable and accrued expenses | $ | | $ | | ||
Interest payable |
| |
| | ||
Income tax payable | | — | ||||
Customer deposits |
| |
| | ||
Operating lease liability, current | | — | ||||
Accrued stock payable |
| |
| | ||
Current portion of notes payable (net of discount) |
| |
| | ||
Related party note payable (net of discount) |
| — |
| | ||
Warrant derivative liability |
| |
| | ||
Stock put liability | | — | ||||
Liabilities of discontinued operations | | | ||||
Total current liabilities |
| |
| | ||
Operating lease liability, non-current | | — | ||||
Long-term notes payable | | — | ||||
Related party long-term note payable | | — | ||||
Total liabilities | | | ||||
Commitments and contingencies (Note 10) | ||||||
Stockholders’ deficit |
|
|
|
| ||
Preferred stock, | ||||||
Common Stock, $ | | | ||||
Additional paid-in capital |
| |
| | ||
Accumulated deficit |
| ( |
| ( | ||
Total stockholders’ deficit |
| ( |
| ( | ||
Total liabilities and stockholders’ deficit | $ | | $ | |
See Notes to condensed consolidated financial statements.
3
GENERAL CANNABIS CORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | ||||||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||||
REVENUES |
| ||||||||||||
Service | $ | | $ | | $ | | $ | | |||||
Cultivation sales | | — | | — | |||||||||
Product sales | | | | | |||||||||
Interest | | | | | |||||||||
Total revenues | | | | | |||||||||
COSTS AND EXPENSES | |||||||||||||
Cost of sales | | | | | |||||||||
Selling, general and administrative | | | | | |||||||||
Stock-based compensation expense | | | | | |||||||||
Professional fees | | | | | |||||||||
Depreciation and amortization | | | | | |||||||||
Total costs and expenses | | | | | |||||||||
OPERATING LOSS | ( | ( | ( | ( | |||||||||
OTHER EXPENSE/(INCOME) | |||||||||||||
Amortization of debt discount and equity issuance costs | | | | | |||||||||
Interest expense | | | | | |||||||||
Debt extinguishment | — | | | | |||||||||
Gain on derivative liability | ( | ( | ( | ( | |||||||||
Gain on sale of building | — | — | ( | — | |||||||||
Total other (income) expense, net | ( | | ( | | |||||||||
NET LOSS FROM CONTINUING OPERATIONS | $ | ( | $ | ( | $ | ( | $ | ( | |||||
Gain/(loss) from discontinued operations | | ( | ( | ( | |||||||||
LOSS BEFORE INCOME TAXES | $ | ( | $ | ( | $ | ( | $ | ( | |||||
Provision for income taxes | | — | | — | |||||||||
NET LOSS | $ | ( | $ | ( | $ | ( | $ | ( | |||||
Deemed dividend | — | — | ( | ( | |||||||||
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | ( | $ | ( | $ | ( | $ | ( | |||||
PER SHARE DATA — Basic and diluted | |||||||||||||
Net loss from continuing operations per share | $ | ( | $ | ( | $ | ( | $ | ( | |||||
Net loss from discontinued operations per share | $ | $ | ( | $ | ( | $ | ( | ||||||
Net loss attributable to common stockholders per share | $ | ( | $ | ( | $ | ( | $ | ( | |||||
Weighted average number of common shares outstanding | | | | |
See Notes to condensed consolidated financial statements.
4
GENERAL CANNABIS CORP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended | |||||||
September 30, | |||||||
| 2020 | 2019 | |||||
OPERATING ACTIVITIES |
|
|
|
| |||
Net loss | $ | ( | $ | ( | |||
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
| |||
Amortization of debt discount and equity issuance costs |
| |
| | |||
Depreciation and amortization |
| |
| | |||
Amortization of loan origination fees |
| ( |
| ( | |||
Noncash lease expense | | — | |||||
Bad debt expense | | | |||||
Gain on warrant derivative liability | ( | ( | |||||
Loss on extinguishment of debt | | | |||||
Gain on sale of building | ( | — | |||||
Loss on disposal of assets |
| |
| — | |||
Stock-based compensation |
| |
| | |||
Changes in operating assets and liabilities: |
|
| |||||
Accounts receivable |
| ( |
| ( | |||
Prepaid expenses and other assets |
| ( |
| ( | |||
Inventory |
| ( |
| ( | |||
Income taxes | | — | |||||
Operating lease liabilities | ( | — | |||||
Accounts payable and other current liabilities |
| ( |
| | |||
Net cash used in operating activities: |
| ( |
| ( | |||
INVESTING ACTIVITIES |
|
|
|
| |||
Purchase of property and equipment |
| ( |
| ( | |||
Proceeds on sale of building | | — | |||||
Lending on notes receivable | — | ( | |||||
Net cash provided by (used in) investing activities |
| |
| ( | |||
FINANCING ACTIVITIES |
|
|
|
| |||
Proceeds from sale of common stock and warrants |
| |
| | |||
Proceeds from the exercise of warrants | | — | |||||
Proceeds from exercise of stock options |
| — |
| | |||
Proceeds from notes payable |
| |
| | |||
Payments on notes payable |
| ( |
| ( | |||
Net cash provided by (used in) financing activities |
| |
| ( | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
| |
| ( | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
| |
| | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | | $ | | |||
| |||||||
SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION |
|
|
|
| |||
Cash paid for interest | $ | | $ | | |||
NON-CASH INVESTING & FINANCING ACTIVITIES |
|
|
|
| |||
Deemed dividend from | $ | | $ | | |||
Operating lease right-of-use asset/Operating lease liability |
| |
| | |||
| — |
| | ||||
| |
| — | ||||
| — | ||||||
Debt converted to equity | | — | |||||
Beneficial conversion feature | | — | |||||
Cashless exercise | | — | |||||
Issuance of common stock to an employee | | — | |||||
Stock issued in connection with SevenFive Farm acquisition | | — |
See Notes to condensed consolidated financial statements.
5
GENERAL CANNABIS CORP
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS’ (DEFICIT) EQUITY
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
Common Stock | Additional | Accumulated | ||||||||||||
Shares | Amount | Paid-in Capital | Deficit | Total | ||||||||||
June 30, 2020 |
| |
| $ | |
| $ | |
| $ | ( |
| $ | ( |
Sale of common stock, net of issuance costs | |
| |
| |
| — |
| | |||||
Stock option granted to employees and consultants |
| — |
| — |
| |
| — |
| | ||||
Net loss |
| — |
| — |
| — |
| ( |
| ( | ||||
September 30, 2020 |
| | $ | | $ | | $ | ( | $ | ( | ||||
Common Stock | Additional | Accumulated | ||||||||||||
Shares | Amount | Paid-in Capital | Deficit | Total | ||||||||||
June 30, 2019 | |
| $ | |
| $ | |
| $ | ( |
| $ | ( | |
Warrants issued with the | — |
| — |
| |
| — |
| | |||||
Common stock issued upon exercise of stock options | |
| |
| |
| — |
| | |||||
Stock options granted to employees and consultants | — |
| — |
| |
| — |
| | |||||
Net loss | — |
| — |
| — |
| ( |
| ( | |||||
September 30, 2019 | | $ | | $ | | $ | ( | $ | ( |
See Notes to condensed consolidated financial statements.
6
GENERAL CANNABIS CORP
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS’ (DEFICIT) EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
| Common Stock | Additional | Accumulated | |||||||||||
| Shares |
| Amount |
| Paid-in Capital |
| Deficit |
| Total | |||||
January 1, 2020 | | $ | | $ | | $ | ( | $ | ( | |||||
Sale of common stock, net of issuance costs | |
| |
| |
| — |
| | |||||
Common stock issued upon conversion of debt | |
| |
| |
| — |
| | |||||
Common stock issued for acquisition of SevenFive Farm | |
| |
| |
| — |
| | |||||
Stock options granted to employees and consultants | — | — | | — | | |||||||||
Beneficial conversion feature | — | — | | — | | |||||||||
Warrants exercised | | | | — | | |||||||||
Warrants issued with the | — | — | | — | | |||||||||
Cashless exercise of warrants | |
| |
| |
| — |
| | |||||
Net loss | — |
| — |
| — |
| ( |
| ( | |||||
September 30, 2020 | | $ | | $ | | $ | ( | $ | ( | |||||
Common Stock | Additional | Accumulated | ||||||||||||
Shares |
| Amount |
| Paid-in Capital |
| Deficit |
| Total | ||||||
January 1, 2019 | | $ | | $ | | $ | ( | $ | | |||||
Sale of common stock, net of issuance costs | |
| |
| |
| — |
| | |||||
Warrants issued with the | — | — | | — | | |||||||||
Common stock issued for property and equipment | |
| |
| |
| — |
| | |||||
Common stock issued upon exercise of stock options | |
| |
| |
| — |
| | |||||
Stock options granted to employees and consultants | — |
| — |
| |
| — |
| | |||||
Net loss | — |
| — |
| — |
| ( |
| ( | |||||
September 30, 2019 | | $ | | $ | | $ | ( | $ | ( |
See Notes to condensed consolidated financial statements.
7
GENERAL CANNABIS CORP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. NATURE OF OPERATIONS, HISTORY AND PRESENTATION
Nature of Operations
General Cannabis Corp, a Colorado Corporation (the “Company,” “we,” “us,” “our,” or “GCC”) (formerly, Advanced Cannabis Solutions, Inc.), was incorporated on June 3, 2013, and provides services and products to the regulated cannabis industry. We currently trade on the OTCQB® Venture Market. As of September 30, 2020, our operations are segregated into the following
Operations Consulting and Products (“Operations Segment”)
Through Next Big Crop (“NBC”), we deliver comprehensive consulting services to the cannabis industry that include obtaining licenses, compliance, cultivation, retail operations, logistical support, facility design and construction, and expansion of existing operations. During the three and nine months ended September 30, 2020,
NBC oversees our wholesale equipment and supply business, operated under the name “GC Supply,” which provides turnkey sourcing and stocking services to cultivation, retail and infused products manufacturing facilities. Our products include building materials, equipment, consumables and compliance packaging. There are generally multiple suppliers for the products we sell; however, there are a limited number of manufacturers of certain high-tech cultivation equipment. NBC also provides operational support for our internal cultivation.
Cultivation (“Cultivation Segment”)
Through our acquisition of SevenFive Farm ("SevenFive") in May 2020, we operate a licensed light deprivation greenhouse cultivation facility.
During the three and nine months ended September 30, 2020,
Capital Investments (“Investments Segment”)
As a publicly traded company, we believe that we have access to capital that may not be available to businesses operating in the cannabis industry. Accordingly, we may provide debt or equity capital through investing in businesses using cash or shares of our common stock.
Basis of Presentation
The accompanying condensed consolidated financial statements include all accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States of America ("U.S. GAAP") can be condensed or omitted. The condensed consolidated balance sheet for the year ended December 31, 2019 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto of the Company for the year ended December 31, 2019 which were included in the annual report on Form 10-K/A filed by the Company on July 7, 2020.
8
In the opinion of management, these condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and notes thereto of the Company and include all adjustments, consisting only of normal recurring adjustments, considered necessary for the fair presentation of the Company's financial position and operating results. The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the operating results for the year ending December 31, 2020, or any other interim or future periods. Since the date of the Annual Report, there have been no material changes to the Company’s significant accounting policies except for inventories and goodwill and long-lived assets as disclosed below.
Reclassifications
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
Use of Estimates
The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result. In particular, the COVID-19 pandemic has adversely impacted and is likely to further adversely impact the Company's business and markets. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company's business, results of operations and financial condition, including revenues, expenses, reserves and allowances, fair value measurements and asset impairment charges, will depend on future developments that are highly uncertain and difficult to predict. These developments include, but are not limited to, the duration and spread of the pandemic, its severity in our markets and elsewhere, governmental actions to contain the spread of the pandemic and respond to the reduction in global economic activity, and how quickly and to what extent normal economic and operating conditions can resume.
Going Concern
The condensed consolidated financial statements have been prepared on a going concern basis, which assumes we will be able to realize our assets and discharge our liabilities in the normal course of business for at least the twelve months from the date these condensed consolidated financial statements are issued. As of September 30, 2020, our cash balance of approximately $
Summary of Significant Accounting Policies
See our Annual Report on Form 10-K for the year ended December 31, 2019, as amended, for discussion of the Company's significant accounting policies.
9
Inventories
Inventories consist of raw materials, supplies, growing and harvested plants (work-in-process), and finished goods, and are stated at the lower of cost or net realizable value. All direct and indirect costs of growing plants are accumulated until the time of harvest and allocated to the plants during the growing process. All direct and indirect costs of finished goods are accumulated and allocated to the products between the harvest and completion stages. The Company uses an average costing method to allocate costs.
Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale. The Company periodically reviews physical inventory for excess, obsolete, and potentially impaired items, noting none for the period ended September 30, 2020.
Goodwill and Long-Lived Assets
Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill and long-lived intangible assets are tested for impairment at least annually in accordance with the provisions of ASC No. 350, “Intangibles-Goodwill and Other” (“ASC No. 350”). ASC No. 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or on level below an operating segment) on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carry value. Application of the goodwill impairment test requires judgement, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. We test goodwill and long-lived assets annually in April, unless an event occurs that would cause the us to believe the value is impaired at an interim date.
Intangible assets with finite useful lives are amortized over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.
Recently Issued Accounting Standards
FASB ASU 2020-06 – “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”- In June 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Accounting Standards Updates (“ASU”) also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2021, although early adoption is permitted. We are in the process of evaluating the impact of this new guidance on our consolidated financial statements.
FASB ASU 2019-12 – “Income Taxes (Topic 740)” – In December 2019, the FASB issued guidance which simplifies certain aspects of accounting for income taxes. The guidance is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. We do not expect adoption of this ASU to have a material effect on our consolidated financial statements.
FASB ASU 2018-13 – “Fair Value Measurement (Topic 820)”- In August 2018, the FASB issued new disclosure guidance on fair value measurement. This new guidance modifies the disclosure requirements on fair value measurements, including removal and modifications of various current disclosures as well as some additional disclosure requirements for Level 3 fair value measurements. Some of these disclosure changes must be applied prospectively while others retrospectively depending on requirement. We adopted ASU 2018-13 as of January 1, 2020. There was no material impact to our consolidated financial statements or disclosures.
10
NOTE 2. BUSINESS ACQUISITION
On May 13, 2020, we received approval of the transaction and transfer of the Dalton Adventures, LLC (“Seller”) license from the Colorado Marijuana Enforcement Division. On May 25, 2020, we finalized the acquisition, pursuant to which we had acquired the assets of the Seller that constitute the business of SevenFive Farm, a cultivation facility in Boulder, Colorado, whereby we acquired fixed assets, inventory, a cultivation license and the tradename. The purchase price paid by the Company to the Seller was
We have not completed the allocation of the purchase price. As of September 30, 2020, the condensed consolidated balance sheet includes a preliminary allocation of fixed assets, inventory, intangible assets and goodwill. Management anticipates completing the purchase price allocation as soon as possible, but no later than one year from the acquisition date.
The preliminary purchase price allocation is as follows:
Inventories | $ | | |
Fixed assets |
| | |
Cultivation license |
| | |
Tradename |
| | |
Goodwill |
| | |
$ | |
The accompanying consolidated financial statements include the results of SevenFive from the date of acquisition for financial reporting purposes, May 13, 2020. The pro forma effects of the acquisition on the results of operations as if the transaction had been completed on January 1, 2019, are as follows:
| Three months ended |
| Nine months ended | |||||||||
September 30, | September 30, | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Total revenues | $ | | $ | | $ | | $ | | ||||
Net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | ||||
Net loss per common share: | $ | ( | $ | ( | $ | ( | $ | ( | ||||
Weighted average number of basic and diluted common shares outstanding | | | | |
The unaudited pro-forma results of operations are presented for information purposes only. The unaudited pro-forma results are not intended to present actual results that would have been attained had the acquisition been completed as of January 1, 2019, or to project potential operating results as of any future date or for any future periods.
11
NOTE 3. DISCONTINUED OPERATIONS
Security Segment
On December 26, 2019, our board of directors and management made the strategic decision to investigate a possible buyer for the Security Segment and if no buyer could be found, cease operations of the Security Segment. We transferred all our Colorado security contracts and employees to a company on January 16, 2020, in exchange for which we will receive $
Assets and liabilities of discontinued operations for the Security Segment included the following:
September 30, | December 31, | |||||
| 2020 |
| 2019 | |||
Cash and cash equivalents | $ | | $ | | ||
Accounts receivable, net |
| |
| | ||
Prepaid expenses and other current assets |
| |
| | ||
Current assets discontinued operations | | | ||||
Property and equipment, net | — | | ||||
Noncurrent assets discontinued operations | — | | ||||
Accounts payable and accrued expenses | — | | ||||
Customer deposits | — | | ||||
Current liabilities discontinued operations | — | |
A summary of the discontinued operations for the Security Segment is presented as follows:
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | ||||||
Service revenues | $ | — | $ | | $ | | $ | | |||||
Cost of sales | — | |
| |
| | |||||||
Selling, general and administrative | ( | |
| |
| | |||||||
Professional fees | — | |
| — |
| | |||||||
Depreciation and amortization | — | | | | |||||||||
Total (income) expenses | ( | |
| |
| | |||||||
OPERATING INCOME (LOSS) | | ( |
| ( |
| ( | |||||||
Interest expense, net | — | |
| |
| | |||||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | $ | | $ | ( | $ | ( | $ | ( |
12
The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows. The following table provides selected information on cash flows related to discontinued operations for the Security Segment for the nine months ended September 30, 2020 and 2019.
Nine months ended | |||||||
September 30, | |||||||
| 2020 |
| 2019 | ||||
Receivables | $ | | $ | | |||
Prepaids and other | | ( | |||||
Depreciation and amortization | |