Annual report pursuant to Section 13 and 15(d)

Note 19 - Segment Information

v3.24.1.u1
Note 19 - Segment Information
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 19 – SEGMENT INFORMATION

 

The Company operates in two segments:

 

(i) Cannabis Retail – Either independently or in conjunction with third parties, the Company operates medical marijuana and adult use cannabis dispensaries in California. All retail dispensaries offer a broad selection of medical and adult use cannabis products including flower, concentrates and edibles.

 

(ii) Cannabis Distribution – The Company operates a distribution center in California that distribute its own branded products as well as third party products to its retail dispensaries in California under the Korova brand. Refer to "Note 18 - Discontinued Operations" for information on the Company's cultivation facilities.

 

For the periods presented, revenue by reportable segments are as follows:

 

    (in thousands)  
   

Year Ended December 31,

  

Segment

  

2023

    

2022

    

2023

    

2022

  
   

Total Revenue

    

% of Total Revenue

  

Cannabis Retail

   $ 33,041     $ 39,937       99.4 %     76.8 %

Cannabis Distribution

     188       12,078       0.6 %     23.2 %

Total

   $ 33,229     $ 52,015       100.0 %     100.0 %

 

For the periods presented, operations by reportable segments are as follows:

 

    (in thousands)  
   

Year Ended December 31, 2023

    

Year Ended December 31, 2022

  
   

Cannabis Retail

    

Cannabis Distribution

    

Corporate and Other

    

Total

    

Cannabis Retail

    

Cannabis Distribution

    

Corporate and Other

    

Total

  

Total Revenues

   $ 33,041     $ 188     $ —     $ 33,229     $ 39,937     $ 12,078     $ —     $ 52,015  

Cost of Goods Sold

     15,297       268       —       15,565       19,586       14,289       —       33,875  

Gross Profit (Loss)

     17,744       (80 )     —       17,664       20,351       (2,211 )     —       18,140  

Gross Margin %

     53.7 %     -42.6 %                 51.0 %     -18.3 %            
                                                                 

Selling, General & Administrative Expenses

     14,186       1,105       14,972       30,263       17,513       9,535       25,636       52,684  

Impairment Expense

     —       —       —       —       —       —       163,698       163,698  

Loss (Gain) on Sale Of Assets

     1,540       —       67       1,607       (2,663 )     (2,390 )     (8,379 )     (13,432 )

Income (Loss) from Operations

     2,018       (1,185 )     (15,039 )     (14,206 )     5,501       (9,356 )     (180,955 )     (184,810 )
                                                                 

Other Income (Expense):

                                                                

Interest Expense

     (445 )     —       (3,332 )     (3,777 )     —       (170 )     (4,003 )     (4,173 )

Gain on Extinguishment of Debt

     —       —       5,441       5,441       —       —       542       542  

Income from Employer Retention Credit

     —       —       1,232       1,232       —       —       —       —  

Realized Loss on Investments

     —       —       (61 )     (61 )     —       —       —       —  

Unrealized Gain on Investments

     —       —       667       667       —       —       210       210  

Other Income

     9       63       929       1,001       210       737       590       1,537  

Total Other Income (Loss)

     (436 )     63       4,876       4,503       210       567       (2,661 )     (1,884 )
                                                                 

Income (Loss) Before Provision for Income Taxes

   $ 1,582     $ (1,122 )   $ (10,163 )   $ (9,703 )   $ 5,711     $ (8,789 )   $ (183,616 )   $ (186,694 )
                                                                 

Total Assets

   $ 14,040     $ 938     $ 17,093     $ 32,071     $ 18,716     $ 1,343     $ 20,451     $ 40,510