| 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”), Baker, and CAC), (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. During the three months ended September 30, 2023, the Company completed the CGSF/SFNY Divestiture. See Note 11 — Notes Payable and “Significant Developments in the Quarter” under Item 2 —Management’s Discussion and Analysis of Financial Condition for additional information.
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
11,738 |
|
$ |
33,010 |
|
$ |
— |
|
$ |
— |
|
$ |
44,748 |
Inter-segment revenue |
|
|
— |
|
|
(193) |
|
|
— |
|
|
— |
|
|
(193) |
Net revenue |
|
$ |
11,738 |
|
$ |
32,817 |
|
$ |
— |
|
$ |
— |
|
$ |
44,555 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
190 |
|
|
— |
|
|
190 |
Depreciation and amortization |
|
|
655 |
|
|
3,236 |
|
|
— |
|
|
— |
|
|
3,891 |
Wages and benefits |
|
|
1,884 |
|
|
1,518 |
|
|
1,305 |
|
|
— |
|
|
4,707 |
Impairment loss |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Interest expense |
|
|
1,817 |
|
|
680 |
|
|
3,872 |
|
|
— |
|
|
6,369 |
Loan receivable losses |
|
|
— |
|
|
— |
|
|
1 |
|
|
13 |
|
|
14 |
Net loss |
|
$ |
(4,365) |
|
$ |
(1,311) |
|
$ |
(3,456) |
|
$ |
469 |
|
$ |
(8,663) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
12,175 |
|
$ |
28,799 |
|
$ |
— |
|
$ |
— |
|
$ |
40,974 |
Inter-segment revenue |
|
|
— |
|
|
(487) |
|
|
— |
|
|
— |
|
|
(487) |
Net revenue |
|
$ |
12,175 |
|
$ |
28,312 |
|
$ |
— |
|
$ |
— |
|
$ |
40,487 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
418 |
|
|
115 |
|
|
533 |
Depreciation and amortization |
|
|
672 |
|
|
3,712 |
|
|
13 |
|
|
197 |
|
|
4,594 |
Wages and benefits |
|
|
1,912 |
|
|
1,159 |
|
|
1,810 |
|
|
— |
|
|
4,881 |
Impairment loss |
|
|
— |
|
|
— |
|
|
175 |
|
|
— |
|
|
175 |
Interest expense |
|
|
1,350 |
|
|
402 |
|
|
2,398 |
|
|
— |
|
|
4,150 |
Loan losses |
|
|
— |
|
|
— |
|
|
133 |
|
|
— |
|
|
133 |
Net loss |
|
$ |
(4,513) |
|
$ |
(1,739) |
|
$ |
(9,297) |
|
$ |
(142) |
|
$ |
(15,691) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
37,624 |
|
$ |
91,256 |
|
$ |
— |
|
$ |
— |
|
$ |
128,880 |
Inter-segment revenue |
|
|
— |
|
|
(462) |
|
|
— |
|
|
— |
|
|
(462) |
Net revenue |
|
$ |
37,624 |
|
$ |
90,794 |
|
$ |
— |
|
$ |
— |
|
$ |
128,418 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
(641) |
|
|
(1,234) |
|
|
(1,875) |
Depreciation and amortization |
|
|
2,270 |
|
|
9,720 |
|
|
642 |
|
|
100 |
|
|
12,732 |
Wages and benefits |
|
|
6,004 |
|
|
4,126 |
|
|
6,232 |
|
|
— |
|
|
16,362 |
Impairment loss |
|
|
3,256 |
|
|
16 |
|
|
1,126 |
|
|
737 |
|
|
5,135 |
Interest expense |
|
|
4,550 |
|
|
1,943 |
|
|
9,366 |
|
|
68 |
|
|
15,927 |
Loan losses |
|
|
— |
|
|
— |
|
|
666 |
|
|
4,936 |
|
|
5,602 |
Net income (loss) |
|
$ |
(27,400) |
|
$ |
(6,801) |
|
$ |
(11,656) |
|
$ |
3,991 |
|
$ |
(41,866) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2022 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
35,657 |
|
$ |
95,507 |
|
$ |
— |
|
$ |
— |
|
$ |
131,164 |
Inter-segment revenue |
|
|
— |
|
|
(1,270) |
|
|
— |
|
|
— |
|
|
(1,270) |
Net revenue |
|
$ |
35,657 |
|
$ |
94,237 |
|
$ |
— |
|
$ |
— |
|
$ |
129,894 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
1,912 |
|
|
633 |
|
|
2,545 |
Depreciation and amortization |
|
|
1,967 |
|
|
11,121 |
|
|
40 |
|
|
584 |
|
|
13,712 |
Wages and benefits |
|
|
5,163 |
|
|
3,579 |
|
|
7,642 |
|
|
— |
|
|
16,384 |
Impairment loss |
|
|
697 |
|
|
6,669 |
|
|
175 |
|
|
— |
|
|
7,541 |
Interest expense |
|
|
2,038 |
|
|
1,242 |
|
|
7,447 |
|
|
— |
|
|
10,727 |
Loan losses |
|
|
— |
|
|
— |
|
|
1,154 |
|
|
— |
|
|
1,154 |
Net loss |
|
$ |
(7,674) |
|
$ |
(17,488) |
|
$ |
(8,574) |
|
$ |
(643) |
|
$ |
(34,379) |
Geographic Areas
The following table presents financial information relating to geographic areas in which the Company operated for the three and nine months ended September 30, 2023 and 2022:
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Three Months Ended September 30, 2023 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
38,803 |
|
$ |
5,752 |
|
$ |
- |
|
$ |
44,555 |
Gross profit |
|
|
6,292 |
|
|
1,668 |
|
|
- |
|
|
7,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
36,599 |
|
$ |
3,806 |
|
$ |
82 |
|
$ |
40,487 |
Gross profit |
|
|
8,392 |
|
|
1,111 |
|
|
34 |
|
|
9,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
113,210 |
|
$ |
15,193 |
|
$ |
15 |
|
$ |
128,418 |
Gross profit |
|
|
16,689 |
|
|
4,103 |
|
|
4 |
|
|
20,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2022 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
119,876 |
|
$ |
9,686 |
|
$ |
332 |
|
$ |
129,894 |
Gross profit |
|
|
26,982 |
|
|
2,720 |
|
|
133 |
|
|
29,835 |
|