Replies to post #50181 on Sugarmade Inc (SGMD)

[FinancialReviewer]

Any chance you can help me understand the last paragraph? How are they reporting the 313k as income?


"The net asset value of the Company’s variable interest in Indigo Dye Group was approximately $326,812 as of October 1, 2020, the date of deconsolidation. The value of the Company’s variable interest on the date of deconsolidation was based on management’s estimate of the fair value of Indigo at that time. The Company concluded that the market approach was the most appropriate method to determine the fair value of the entity on the date of deconsolidation, given that Indigo raised equity funding from third-party investors around the same period (i.e., level 2 inputs). The Company recognized a gain on deconsolidation of approximately $313,928 with no related tax impact, which is included in other income, net on the consolidated statement of operations. As the Company is not obligated to fund future losses of Indigo, the carrying amount is the Company’s maximum risk of loss."

[remember my name]

That's good news too . Jimmy found away to get 70 percent from a cannabis company
That lease licenses to Sgmd through out Cali and get a 70percent vs 40 profits . Which means
Full recognized revenues . No more zeros .

More of a waiting game but we are still 33 or 40 percent owns of
Budcars . This absolutely means something for a later time .
Ipo budcars or maybe buyout or Exercise the option