Hmm...I see, PVI was generating revenue but PNPL was not.....but PVI was not a subsidiary either, so perhaps that's why, IDK. In this case here, I believe Pineapple Consolidated would be considered a subsidiary of MNAO and they wholly own PNPL Holdings, which contains these revenue generating assets....
Previously, PVI has invested in established cannabis businesses, funded cannabis start-up businesses, managed the aforementioned businesses for a management fee, and in some instances subleased property to these businesses for a profit. However, as of September 1, 2022, PVI shifted its primary focus to being a “non-plant touching” entity through development of cannabis assets and resale of the same for a profit in partnership with its affiliate entities, hemp CBD retail management services for a fee, and leasing and subleasing cannabis retail properties for a profit. PVI no longer operates or partially owns cannabis assets and acts only as a consultant for the purpose of facilitating development of those assets through PNPL Holdings, Inc. PNPL Holdings, Inc. is wholly-owned by Matthew Feinstein and, as such, is a related party to Pineapple, Inc. PVI no longer receives a 10% management fee for these cannabis entities and is now completely a non-plant touching ancillary service provider to the cannabis industry. As of September 30, 2022, PVI carries no ownership of any cannabis assets. However, PVI did own the following cannabis assets as of December 31, 2021 (these portions of ownership were transferred to PNPL Holdings, Inc.):
? Capital Growth Investments, Inc. (“CGI”): 20% as of December 31, 2021 (delivery, cultivation, manufacturing, and distribution) ? Universal Herbal Center, Inc (“UHC”): 20% as of December 31, 2021 (delivery, manufacturing, distribution, and dispensary). ? PNPLXPRESS, Inc. (“PXI”): 10% equity interest as of December 31, 2021 (delivery and dispensary). ? PNPLXPRESS II, Inc (“Northeast LA Dispensary”): 49% equity interest as of December 31, 2021 (delivery and dispensary).
The ownership percentages previously owned by PVI were transferred to PNPL Holdings, Inc. During the nine months ended September 30, 2022, three of the above cannabis assets (CGI, UHC and PXI) generated revenue while PVI held ownership. As noted above, as of September 30, 2022, PVI no longer has any ownership in these entities.
The following represents summarized financial information of PVI as of and for the nine months ended September 30, 2022, and 2021, respectively:
Income statement 2022 2021 Revenue $ 489,145 $ 111,552 Cost of goods sold (756 ) - Gross margin 488,389 111,552 Operating expenses (2,134,478 ) (1,862,676 ) Gain on dispensary equity sale 4,965,510 - Net income (loss) $ 3,319,421 $ (1,751,124 )
