Registration of securities issued in business combination transactions

SEGMENT INFORMATION

v3.23.3
SEGMENT INFORMATION
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
SEGMENT INFORMATION    
SEGMENT INFORMATION

NOTE 16 - 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 Cultivation and Distribution - The Company operates a cultivation facility in Oakland, California and distributes flower grown from the facility to other manufacturers or to its own retail cannabis dispensaries in California under the Korova brand.

 

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

  

 

 

(in thousands)

 

 

(in thousands)

 

 

 

Total Revenue

 

 

% of Total Revenue

 

 

Total Revenue

 

 

% of Total Revenue

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Segment

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cannabis Retail

 

 $ 8,415

 

 

 $ 11,140

 

 

 

 95.7 %

 

 

 70.5 %

 

 $ 16,885

 

 

 $ 23,653

 

 

 

 93.6 %

 

 

 68.3 %

Cannabis Cultivation & Distribution

 

 

 382

 

 

 

 4,661

 

 

 

 4.3 %

 

 

 29.5 %

 

 

 1,152

 

 

 

 10,997

 

 

 

 6.4 %

 

 

 31.7 %

Total

 

 $ 8,797

 

 

 $ 15,801

 

 

 

 100.0 %

 

 

 100.0 %

 

 $ 18,037

 

 

 $ 34,650

 

 

 

 100.0 %

 

 

 100.0 %

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

 

 

 

(in thousands)

 

 

 

Three Months Ended June 30, 2023

 

 

Three Months Ended June 30, 2022

 

 

 

Cannabis Retail

 

 

Cannabis Cultivation & Distribution

 

 

Corporate & Other

 

 

Total

 

 

Cannabis Retail

 

 

Cannabis Cultivation & Distribution

 

 

Corporate & Other

 

 

Total

 

Total Revenues

 

 $ 8,415

 

 

 $ 382

 

 

 $ -

 

 

 $ 8,797

 

 

 $ 11,140

 

 

 $ 4,661

 

 

 $ -

 

 

 $ 15,801

 

Cost of Goods Sold

 

 

 3,963

 

 

 

 234

 

 

 

 -

 

 

 

 4,197

 

 

 

 5,430

 

 

 

 2,284

 

 

 

 -

 

 

 

 7,714

 

Gross Profit

 

 

 4,452

 

 

 

 148

 

 

 

 -

 

 

 

 4,600

 

 

 

 5,710

 

 

 

 2,377

 

 

 

 -

 

 

 

 8,087

 

Gross Profit %

 

 

 52.9 %

 

 

 38.7 %

 

 

 

 

 

 

 

 

 

 

 51.3 %

 

 

 51.0 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General & Administrative Expenses

 

 

 2,852

 

 

 

 312

 

 

 

 4,907

 

 

 

 8,071

 

 

 

 6,427

 

 

 

 3,886

 

 

 

 7,847

 

 

 

 18,160

 

Impairment Expense

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 55,726

 

 

 

 55,726

 

(Gain) Loss on Disposal of Assets

 

 

 -

 

 

 

 -

 

 

 

 (1,739 )

 

 

 (1,739 )

 

 

 542

 

 

 

 -

 

 

 

 (1 )

 

 

 541

 

Income (Loss) from Operations

 

 

 1,600

 

 

 

 (164 )

 

 

 (3,168 )

 

 

 (1,732 )

 

 

 (1,259 )

 

 

 (1,509 )

 

 

 (63,572 )

 

 

 (66,340 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income (Expense)

 

 

 48

 

 

 

 -

 

 

 

 (235 )

 

 

 (187 )

 

 

 -

 

 

 

 (11 )

 

 

 (427 )

 

 

 (438 )

Gain on Settlement of Liabilities

 

 

 110

 

 

 

 -

 

 

 

 -

 

 

 

 110

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Unrealized Gain on Investments

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 963

 

 

 

 963

 

Other Income (Expense)

 

 

 (31 )

 

 

 9

 

 

 

 264

 

 

 

 242

 

 

 

 (71 )

 

 

 112

 

 

 

 189

 

 

 

 230

 

Total Other Income (Expense), Net

 

 

 127

 

 

 

 9

 

 

 

 29

 

 

 

 165

 

 

 

 (71 )

 

 

 101

 

 

 

 725

 

 

 

 755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Provision for Income Taxes

 

 $ 1,727

 

 

 $ (155 )

 

 $ (3,139 )

 

 $ (1,567 )

 

 $ (1,330 )

 

 $ (1,408 )

 

 $ (62,847 )

 

 $ (65,585 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets (Liabilities)

 

 $ 18,231

 

 

 $ 4,456

 

 

 $ 15,573

 

 

 $ 38,260

 

 

 $ 51,162

 

 

 $ (73 )

 

 $ 129,166

 

 

 $ 180,255

 

 

 

(in thousands)

 

 

 

Six Months Ended June 30, 2023

 

 

Six Months Ended June 30, 2022

 

 

 

Cannabis Retail

 

 

Cannabis Cultivation & Distribution

 

 

Corporate & Other

 

 

Total

 

 

Cannabis Retail

 

 

Cannabis Cultivation & Distribution

 

 

Corporate & Other

 

 

Total

 

Total Revenues

 

 $ 16,885

 

 

 $ 1,152

 

 

 $ -

 

 

 $ 18,037

 

 

 $ 23,653

 

 

 $ 10,997

 

 

 $ -

 

 

 $ 34,650

 

Cost of Goods Sold

 

 

 7,768

 

 

 

 974

 

 

 

 -

 

 

 

 8,742

 

 

 

 12,311

 

 

 

 8,139

 

 

 

 -

 

 

 

 20,450

 

Gross Profit

 

 

 9,117

 

 

 

 178

 

 

 

 -

 

 

 

 9,295

 

 

 

 11,342

 

 

 

 2,858

 

 

 

 -

 

 

 

 14,200

 

Gross Profit %

 

 

 54.0 %

 

 

 15.5 %

 

 

 

 

 

 

 

 

 

 

 48.0 %

 

 

 26.0 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General & Administrative Expenses

 

 

 5,310

 

 

 

 467

 

 

 

 7,891

 

 

 

 13,668

 

 

 

 11,452

 

 

 

 8,486

 

 

 

 16,153

 

 

 

 36,091

 

Impairment Expense

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 55,726

 

 

 

 55,726

 

(Gain) Loss on Disposal of Assets

 

 

 -

 

 

 

 -

 

 

 

 (1,739 )

 

 

 (1,739 )

 

 

 542

 

 

 

 -

 

 

 

 (199 )

 

 

 343

 

Income (Loss) from Operations

 

 

 3,807

 

 

 

 (289 )

 

 

 (6,152 )

 

 

 (2,634 )

 

 

 (652 )

 

 

 (5,628 )

 

 

 (71,680 )

 

 

 (77,960 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 -

 

 

 

 -

 

 

 

 (1,211 )

 

 

 (1,211 )

 

 

 -

 

 

 

 (176 )

 

 

 (2,028 )

 

 

 (2,204 )

Gain on Extinguishment of Debt

 

 

 -

 

 

 

 -

 

 

 

 3,026

 

 

 

 3,026

 

 

 

 -

 

 

 

 -

 

 

 

 542

 

 

 

 542

 

Gain on Settlement of Liabilities

 

 

 110

 

 

 

 -

 

 

 

 -

 

 

 

 110

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Realized Loss on Investments

 

 

 -

 

 

 

 -

 

 

 

 (61 )

 

 

 (61 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Unrealized Gain on Investments

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 963

 

 

 

 963

 

Other Income (Expense)

 

 

 (317 )

 

 

 324

 

 

 

 264

 

 

 

 271

 

 

 

 (397 )

 

 

 527

 

 

 

 728

 

 

 

 858

 

Total Other Income (Expense), Net

 

 

 (207 )

 

 

 324

 

 

 

 2,018

 

 

 

 2,135

 

 

 

 (397 )

 

 

 351

 

 

 

 205

 

 

 

 159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Provision for Income Taxes

 

 $ 3,600

 

 

 $ 35

 

 

 $ (4,134 )

 

 $ (499 )

 

 $ (1,049 )

 

 $ (5,277 )

 

 $ (71,475 )

 

 $ (77,801 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets (Liabilities)

 

 $ 18,231

 

 

 $ 4,456

 

 

 $ 15,573

 

 

 $ 38,260

 

 

 $ 51,162

 

 

 $ (73 )

 

 $ 129,166

 

 

 $ 180,255

 

NOTE 20 – 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 Cultivation and Distribution – The Company operates distribution centers in California that distribute its own branded products as well as third party products to its retail dispensaries and to other non-affiliated medical marijuana and/or adult use cannabis dispensaries.

 

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

 

 

 

(in thousands)

 

 

 

 

 

 

 

Total Revenue

 

 

% of Total Revenue

 

 

 

Year Ended December 31,

 

Segment

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cannabis Retail

 

 $ 39,937

 

 

 $ 24,540

 

 

 

 76.8 %

 

 

 58.3 %

Cannabis Cultivation & Distribution

 

 

 12,078

 

 

 

 17,580

 

 

 

 23.2 %

 

 

 41.7 %

Total

 

 $ 52,015

 

 

 $ 42,120

 

 

 

 100.0 %

 

 

 100.0 %

 

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

 

 

 

(in thousands)

 

 

 

Year Ended December 31, 2022

 

 

 

Cannabis Retail

 

 

Cannabis Cultivation and Distribution

 

 

Corporate and Other

 

 

Total

 

Total Revenues

 

 $ 39,937

 

 

 $ 12,078

 

 

 $ —

 

 

 $ 52,015

 

Cost of Goods Sold

 

 

 19,586

 

 

 

 15,532

 

 

 

 —

 

 

 

 35,118

 

Gross Profit (Loss)

 

 

 20,351

 

 

 

 (3,454 )

 

 

 —

 

 

 

 16,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

 

 17,513

 

 

 

 11,009

 

 

 

 25,634

 

 

 

 54,156

 

Impairment Expense

 

 

 —

 

 

 

 —

 

 

 

 163,698

 

 

 

 163,698

 

(Gain) Loss on Sale Of Assets

 

 

 (2,663 )

 

 

 (3,652 )

 

 

 (879 )

 

 

 (7,194 )

Income (Loss) from Operations

 

 

 5,501

 

 

 

 (10,811 )

 

 

 (188,453 )

 

 

 (193,763 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 —

 

 

 

 (170 )

 

 

 (4,003 )

 

 

 (4,173 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) on Extinguishment of Debt

 

 

 —

 

 

 

 —

 

 

 

 542

 

 

 

 542

 

Unrealized Gain (Loss) on Investments

 

 

 —

 

 

 

 —

 

 

 

 210

 

 

 

 210

 

Other Income (Loss)

 

 

 210

 

 

 

 750

 

 

 

 590

 

 

 

 1,550

 

Total Other Income (Loss)

 

 

 210

 

 

 

 580

 

 

 

 (2,661 )

 

 

 (1,871 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Provision for Income Taxes

 

 $ 5,711

 

 

 $ (10,231 )

 

 $ (191,114 )

 

 $ (195,634 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

 $ 18,716

 

 

 $ 4,344

 

 

 $ 17,448

 

 

 $ 40,508

 

 

 

(in thousands)

 

 

 

Year Ended December 31, 2021

 

 

 

Cannabis Retail

 

 

Cannabis Cultivation and Distribution

 

 

Corporate and Other

 

 

Total

 

Total Revenues

 

 $ 24,540

 

 

 $ 17,580

 

 

 $ —

 

 

 $ 42,120

 

Cost of Goods Sold

 

 

 13,706

 

 

 

 17,395

 

 

 

 —

 

 

 

 31,101

 

Gross Profit

 

 

 10,834

 

 

 

 185

 

 

 

 —

 

 

 

 11,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

 

 12,327

 

 

 

 6,876

 

 

 

 27,111

 

 

 

 46,314

 

Impairment Expense

 

 

 6,171

 

 

 

 —

 

 

 

 —

 

 

 

 6,171

 

(Gain) Loss on Sale Of Assets

 

 

 —

 

 

 

 56

 

 

 

 (3,189 )

 

 

 (3,133 )

Income (Loss) from Operations

 

 

 (7,664 )

 

 

 (6,747 )

 

 

 (23,922 )

 

 

 (38,333 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 (85 )

 

 

 (184 )

 

 

 (1,506 )

 

 

 (1,775 )

Gain (Loss) on Extinguishment of Debt

 

 

 —

 

 

 

 185

 

 

 

 (6,161 )

 

 

 (5,976 )

Gain (Loss) on Investments

 

 

 —

 

 

 

 —

 

 

 

 5,337

 

 

 

 5,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Loss)

 

 

 110

 

 

 

 85

 

 

 

 (628 )

 

 

 (433 )

Total Other Income (Loss)

 

 

 25

 

 

 

 86

 

 

 

 (2,958 )

 

 

 (2,847 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Provision for Income Taxes

 

 $ (7,639 )

 

 $ (6,661 )

 

 $ (26,880 )

 

 $ (41,180 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

 $ 54,846

 

 

 $ (5,565 )

 

 $ 222,543

 

 

 $ 271,824