| Reportable Segments and Revenue |
19. Reportable Segments and Revenue
The Company operates in four reportable segments: (i) cannabis segment (SVH, Standard Farms, LLC (“Standard Farms PA”), Standard Farms Ohio, LLC (“Standard Farms OH”), and Baker), (ii) accessories (Jupiter), (iii) corporate, and (iv) other (White Haven RE, LLC, SFNY, and CGSF). The cannabis segment includes production, cultivation, extraction and sale of cannabis products and accessories including the manufacturing and distribution of electronic, non-nicotine (i.e., cannabis) devices and systems. The corporate segment represents all corporate level and unallocated items and includes the Company’s operating expenses and intercompany eliminations.
Information related to each segment is set out below. Segment net loss is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.
The following tables present the operating results of the Company’s segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2023 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
|
12,925 |
|
$ |
28,833 |
|
$ |
— |
|
$ |
— |
|
$ |
41,758 |
Inter-segment revenue |
|
|
— |
|
|
(159) |
|
|
— |
|
|
— |
|
|
(159) |
Net revenue |
|
$ |
12,925 |
|
$ |
28,674 |
|
$ |
— |
|
$ |
— |
|
$ |
41,599 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
(1,072) |
|
|
(1,286) |
|
|
(2,358) |
Depreciation and amortization |
|
|
821 |
|
|
3,246 |
|
|
628 |
|
|
17 |
|
|
4,712 |
Wages and benefits |
|
|
1,899 |
|
|
1,335 |
|
|
2,637 |
|
|
— |
|
|
5,871 |
Impairment loss |
|
|
3,208 |
|
|
16 |
|
|
986 |
|
|
737 |
|
|
4,947 |
Interest expense |
|
|
1,377 |
|
|
621 |
|
|
3,400 |
|
|
68 |
|
|
5,466 |
Loan receivable losses |
|
|
— |
|
|
— |
|
|
277 |
|
|
4,923 |
|
|
5,200 |
Net loss |
|
$ |
(16,387) |
|
$ |
(2,840) |
|
$ |
(4,587) |
|
$ |
(4,523) |
|
$ |
(28,337) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2022 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
12,223 |
|
$ |
35,084 |
|
$ |
— |
|
$ |
— |
|
$ |
47,307 |
Inter-segment revenue |
|
|
— |
|
|
(252) |
|
|
— |
|
|
— |
|
|
(252) |
Net revenue |
|
$ |
12,223 |
|
$ |
34,832 |
|
$ |
— |
|
$ |
— |
|
$ |
47,055 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
525 |
|
|
261 |
|
|
786 |
Depreciation and amortization |
|
|
647 |
|
|
3,709 |
|
|
13 |
|
|
191 |
|
|
4,560 |
Wages and benefits |
|
|
1,719 |
|
|
1,252 |
|
|
3,364 |
|
|
— |
|
|
6,335 |
Impairment loss |
|
|
— |
|
|
6,669 |
|
|
— |
|
|
— |
|
|
6,669 |
Interest expense |
|
|
601 |
|
|
602 |
|
|
2,593 |
|
|
— |
|
|
3,796 |
Loan losses |
|
|
— |
|
|
— |
|
|
504 |
|
|
— |
|
|
504 |
Net income (loss) |
|
$ |
(1,940) |
|
$ |
(11,048) |
|
$ |
6,103 |
|
$ |
(169) |
|
$ |
(7,054) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2023 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
25,886 |
|
$ |
58,246 |
|
$ |
— |
|
$ |
— |
|
$ |
84,132 |
Inter-segment revenue |
|
|
— |
|
|
(269) |
|
|
— |
|
|
— |
|
|
(269) |
Net revenue |
|
$ |
25,886 |
|
$ |
57,977 |
|
$ |
— |
|
$ |
— |
|
$ |
83,863 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
(831) |
|
|
(1,234) |
|
|
(2,065) |
Depreciation and amortization |
|
|
1,615 |
|
|
6,484 |
|
|
642 |
|
|
100 |
|
|
8,841 |
Wages and benefits |
|
|
4,120 |
|
|
2,608 |
|
|
4,927 |
|
|
— |
|
|
11,655 |
Impairment loss |
|
|
3,256 |
|
|
16 |
|
|
1,126 |
|
|
737 |
|
|
5,135 |
Interest expense |
|
|
2,733 |
|
|
1,263 |
|
|
5,494 |
|
|
68 |
|
|
9,558 |
Loan losses |
|
|
— |
|
|
— |
|
|
665 |
|
|
4,923 |
|
|
5,588 |
Net income (loss) |
|
$ |
(23,035) |
|
$ |
(5,490) |
|
$ |
(8,200) |
|
$ |
3,522 |
|
$ |
(33,203) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2022 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
23,482 |
|
$ |
66,708 |
|
$ |
— |
|
$ |
— |
|
$ |
90,190 |
Inter-segment revenue |
|
|
— |
|
|
(783) |
|
|
— |
|
|
— |
|
|
(783) |
Net revenue |
|
$ |
23,482 |
|
$ |
65,925 |
|
$ |
— |
|
$ |
— |
|
$ |
89,407 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
1,494 |
|
|
518 |
|
|
2,012 |
Depreciation and amortization |
|
|
1,295 |
|
|
7,409 |
|
|
27 |
|
|
387 |
|
|
9,118 |
Wages and benefits |
|
|
3,251 |
|
|
2,420 |
|
|
5,832 |
|
|
— |
|
|
11,503 |
Impairment loss |
|
|
697 |
|
|
6,669 |
|
|
— |
|
|
— |
|
|
7,366 |
Interest expense |
|
|
688 |
|
|
840 |
|
|
5,049 |
|
|
— |
|
|
6,577 |
Loan losses |
|
|
— |
|
|
— |
|
|
1,021 |
|
|
— |
|
|
1,021 |
Net income (loss) |
|
$ |
(3,161) |
|
$ |
(15,749) |
|
$ |
723 |
|
$ |
(501) |
|
$ |
(18,688) |
Geographic Areas
The following table presents financial information relating to geographic areas in which the Company operated for the three and six months ended June 30, 2023 and 2022:
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|
|
For the three months ended June 30, 2023 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
36,232 |
|
$ |
5,361 |
|
$ |
6 |
|
$ |
41,599 |
Gross profit |
|
|
2,607 |
|
|
1,433 |
|
|
- |
|
|
4,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2022 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
43,370 |
|
$ |
3,585 |
|
$ |
100 |
|
$ |
47,055 |
Gross profit |
|
|
9,963 |
|
|
940 |
|
|
42 |
|
|
10,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2023 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
74,407 |
|
$ |
9,441 |
|
$ |
15 |
|
$ |
83,863 |
Gross profit |
|
|
10,397 |
|
|
2,435 |
|
|
4 |
|
|
12,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2022 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
83,277 |
|
$ |
5,880 |
|
$ |
250 |
|
$ |
89,407 |
Gross profit |
|
|
18,590 |
|
|
1,609 |
|
|
99 |
|
|
20,298 |
|