| Reportable Segments and Revenue |
18. Reportable Segments and Revenue
The Company operates in four reportable segments: (i) cannabis segment (SVH), 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). 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 accessories segment includes distribution of vapor cartridges and accessory products. The corporate segment represents all corporate level and unallocated items and includes the Company’s operating expenses and intercompany eliminations. On September 1, 2023, the Company completed the CGSF/SFNY Divestiture, which was included in other for the three and six months ended June 30, 2023.
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 June 30, 2024 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
10,908 |
|
$ |
15,802 |
|
$ |
— |
|
$ |
— |
|
$ |
26,710 |
Inter-segment revenue |
|
|
— |
|
|
(129) |
|
|
— |
|
|
— |
|
|
(129) |
Net revenue |
|
$ |
10,908 |
|
$ |
15,673 |
|
$ |
— |
|
$ |
— |
|
$ |
26,581 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
23 |
|
|
— |
|
|
23 |
Depreciation and amortization |
|
|
649 |
|
|
3,213 |
|
|
— |
|
|
— |
|
|
3,862 |
Wages and benefits |
|
|
1,826 |
|
|
1,310 |
|
|
1,501 |
|
|
— |
|
|
4,637 |
Impairment loss |
|
|
15,728 |
|
|
— |
|
|
— |
|
|
— |
|
|
15,728 |
Interest expense |
|
|
1,580 |
|
|
656 |
|
|
4,556 |
|
|
— |
|
|
6,792 |
Net loss |
|
$ |
(28,080) |
|
$ |
(3,727) |
|
$ |
(4,140) |
|
$ |
— |
|
$ |
(35,947) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 losses |
|
|
— |
|
|
— |
|
|
277 |
|
|
4,923 |
|
|
5,200 |
Net loss |
|
$ |
(16,387) |
|
$ |
(2,840) |
|
$ |
(4,587) |
|
$ |
(4,523) |
|
$ |
(28,337) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Other |
|
Total |
Revenue |
|
$ |
21,297 |
|
$ |
43,171 |
|
$ |
— |
|
$ |
— |
|
$ |
64,468 |
Inter-segment revenue |
|
|
— |
|
|
(383) |
|
|
— |
|
|
— |
|
|
(383) |
Net revenue |
|
$ |
21,297 |
|
$ |
42,788 |
|
$ |
— |
|
$ |
— |
|
$ |
64,085 |
Share-based compensation |
|
|
— |
|
|
— |
|
|
130 |
|
|
— |
|
|
130 |
Depreciation and amortization |
|
|
1,296 |
|
|
6,432 |
|
|
— |
|
|
— |
|
|
7,728 |
Wages and benefits |
|
|
3,678 |
|
|
2,577 |
|
|
2,878 |
|
|
— |
|
|
9,133 |
Impairment loss |
|
|
15,740 |
|
|
— |
|
|
— |
|
|
— |
|
|
15,740 |
Interest expense |
|
|
2,949 |
|
|
1,581 |
|
|
8,305 |
|
|
— |
|
|
12,835 |
Loan losses |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Net income (loss) |
|
$ |
(29,954) |
|
$ |
(6,308) |
|
$ |
(9,334) |
|
$ |
(2) |
|
$ |
(45,598) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (loss) income |
|
$ |
(23,035) |
|
$ |
(5,490) |
|
$ |
(8,200) |
|
$ |
3,522 |
|
$ |
(33,203) |
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, 2024 and 2023:
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
24,408 |
|
$ |
2,142 |
|
$ |
31 |
|
$ |
26,581 |
Gross profit |
|
|
3,754 |
|
|
484 |
|
|
21 |
|
|
4,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
57,764 |
|
$ |
6,281 |
|
$ |
40 |
|
$ |
64,085 |
Gross profit |
|
|
9,348 |
|
|
1,607 |
|
|
21 |
|
|
10,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|