Segment Reporting

3 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

14. Segment Reporting

ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s CODM for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the CODM, reviews operation results by the revenue of different products or services. Based on management’s assessment, the Company has determined that it has four operating segments as defined by ASC 280, consisting of wholesale, retail, liquor business and medical product business for the three months ended June 30, 2020. For the three months ended June 30, 2019, the Company determined it has two operation segments consisting of wholesale and retail.

The primary financial measures used by the Company to evaluate performance of individual operating segments are sales and income before income tax provision.

The following table presents summary information by segment for the three months ended June 30, 2020 and 2019, respectively:

	For the three months ended June 30, 2020
	US wholesale		US retail		Liquor Products			Mask products			Total
Net sales	$	4,227,311	$	17,089,552	$	192,749		$	24,303		$	21,533,915
Cost of sales (including retail occupancy cost)		2,761,865		12,645,555		70,554			12,283			15,490,257
Gross profit	$	1,465,446	$	4,443,997	$	122,195		$	12,020		$	6,043,658
Interest expense, net	$	910	$	360,316	$	-		$	-		$	361,226
Depreciation and amortization	$	50,313	$	480,604	$	78,431		$	101,157		$	710,505
Capital expenditures	$	-	$	196,987	$	6,795		$	468,118		$	671,900
Segment income (loss) before income tax provision	$	353,414	$	3,399,266	$	(49,088	)	$	(106,122	)	$	3,597,470
Income tax provision	$	-	$	-	$	-		$	-		$	-
Segment assets	$	15,084,531	$	91,828,072	$	10,857,470		$	3,578,753		$	121,348,826

	Three months ended June 30, 2019
	Wholesale			Retail			Total
Net sales	$	4,532,105		$	19,295,677		$	23,827,782
Cost of sales		3,193,655			13,905,013			17,098,668
Retail occupancy costs		-			1,930,619			1,930,619
Gross profit	$	1,338,450		$	3,460,045		$	4,798,495
Interest expense, net	$	(3,040	)	$	(606,705	)	$	(609,745	)
Depreciation and amortization	$	326,843		$	2,592,644		$	2,354,881
Capital expenditures	$	-		$	479,396		$	479,396
Segment income (loss) before income tax provision	$	365,856		$	(3,831,919	)	$	(3,466,063	)
Income tax provision (benefit)	$	10,338		$	(108,275	)	$	(97,937	)
Segment assets	$	17,638,285		$	91,914,715		$	109,553,000