| Segment Reporting Disclosure [Text Block] |
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 Distribution – The Company operates a distribution center in California that distributes its own branded products as well as third party products to its retail 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 |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Cannabis Retail |
|
$ |
3,756 |
|
|
$ |
2,122 |
|
|
|
99.0 |
% |
|
|
93.6 |
% |
|
$ |
5,510 |
|
|
$ |
3,568 |
|
|
|
98.9 |
% |
|
|
86.1 |
% |
| Cannabis Distribution |
|
|
39 |
|
|
|
145 |
|
|
|
1.0 |
% |
|
|
6.4 |
% |
|
|
59 |
|
|
|
578 |
|
|
|
1.1 |
% |
|
|
13.9 |
% |
| Total |
|
$ |
3,795 |
|
|
$ |
2,267 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
$ |
5,569 |
|
|
$ |
4,146 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
For the periods presented, results of operations by reportable segments are as follows:
| |
|
(in thousands) |
|
| |
|
Three Months Ended June 30, 2024 |
|
|
Three Months Ended June 30, 2023 |
|
| |
|
Cannabis |
|
|
Cannabis |
|
|
Corporate & |
|
|
|
|
|
|
Cannabis |
|
|
Cannabis |
|
|
Corporate & |
|
|
|
|
|
| |
|
Retail |
|
|
Distribution |
|
|
Other |
|
|
Total |
|
|
Retail |
|
|
Distribution |
|
|
Other |
|
|
Total |
|
| Total Revenues |
|
$ |
3,756 |
|
|
$ |
39 |
|
|
$ |
— |
|
|
$ |
3,795 |
|
|
$ |
2,122 |
|
|
$ |
145 |
|
|
$ |
— |
|
|
$ |
2,267 |
|
| Cost of Goods Sold |
|
|
1,896 |
|
|
|
307 |
|
|
|
— |
|
|
|
2,203 |
|
|
|
954 |
|
|
|
132 |
|
|
|
— |
|
|
|
1,086 |
|
| Gross Profit |
|
|
1,860 |
|
|
|
(268 |
) |
|
|
— |
|
|
|
1,592 |
|
|
|
1,168 |
|
|
|
13 |
|
|
|
— |
|
|
|
1,181 |
|
| Gross Profit % |
|
|
49.5 |
% |
|
|
(687.2 |
)% |
|
|
|
|
|
|
|
|
|
|
55.0 |
% |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, General & Administrative |
|
|
2,368 |
|
|
|
66 |
|
|
|
3,897 |
|
|
|
6,331 |
|
|
|
112 |
|
|
|
229 |
|
|
|
5,360 |
|
|
|
5,701 |
|
| Impairment Expense |
|
|
— |
|
|
|
— |
|
|
|
1,709 |
|
|
|
1,709 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| (Gain) Loss on Disposal of Assets |
|
|
174 |
|
|
|
(40 |
) |
|
|
— |
|
|
|
134 |
|
|
|
— |
|
|
|
— |
|
|
|
67 |
|
|
|
67 |
|
| Loss from Operations |
|
|
(682 |
) |
|
|
(294 |
) |
|
|
(5,606 |
) |
|
|
(6,582 |
) |
|
|
1,056 |
|
|
|
(216 |
) |
|
|
(5,427 |
) |
|
|
(4,587 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense |
|
|
(349 |
) |
|
|
— |
|
|
|
(401 |
) |
|
|
(750 |
) |
|
|
— |
|
|
|
— |
|
|
|
(114 |
) |
|
|
(114 |
) |
| Gain on Extinguishment of Debt |
|
|
— |
|
|
|
— |
|
|
|
15,182 |
|
|
|
15,182 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Change in Fair Value of Derivative Liability |
|
|
— |
|
|
|
— |
|
|
|
(130 |
) |
|
|
(130 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Income from Employer Retention Credit |
|
|
— |
|
|
|
— |
|
|
|
361 |
|
|
|
361 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Unrealized Loss on Investments |
|
|
— |
|
|
|
— |
|
|
|
(770 |
) |
|
|
(770 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other Income (Expense) |
|
|
141 |
|
|
|
— |
|
|
|
(58 |
) |
|
|
83 |
|
|
|
(300 |
) |
|
|
— |
|
|
|
264 |
|
|
|
(36 |
) |
| Total Other Income (Expense), Net |
|
|
(208 |
) |
|
|
— |
|
|
|
14,184 |
|
|
|
13,976 |
|
|
|
(300 |
) |
|
|
— |
|
|
|
150 |
|
|
|
(150 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (Loss) Before Provision for Income Taxes |
|
$ |
(890 |
) |
|
$ |
(294 |
) |
|
$ |
8,578 |
|
|
$ |
7,394 |
|
|
$ |
756 |
|
|
$ |
(216 |
) |
|
$ |
(5,277 |
) |
|
$ |
(4,737 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
25,622 |
|
|
$ |
599 |
|
|
$ |
12,030 |
|
|
$ |
38,251 |
|
|
$ |
18,331 |
|
|
$ |
4,456 |
|
|
$ |
15,573 |
|
|
$ |
38,360 |
|
| |
|
(in thousands) |
|
| |
|
Six Months Ended June 30, 2024 |
|
|
Six Months Ended June 30, 2023 |
|
| |
|
Cannabis |
|
|
Cannabis |
|
|
Corporate & |
|
|
|
|
|
|
Cannabis |
|
|
Cannabis |
|
|
Corporate & |
|
|
|
|
|
| |
|
Retail |
|
|
Distribution |
|
|
Other |
|
|
Total |
|
|
Retail |
|
|
Distribution |
|
|
Other |
|
|
Total |
|
| Total Revenues |
|
$ |
5,510 |
|
|
$ |
59 |
|
|
$ |
— |
|
|
$ |
5,569 |
|
|
$ |
3,568 |
|
|
$ |
578 |
|
|
$ |
— |
|
|
$ |
4,146 |
|
| Cost of Goods Sold |
|
|
2,841 |
|
|
|
338 |
|
|
|
— |
|
|
|
3,179 |
|
|
|
1,703 |
|
|
|
250 |
|
|
|
— |
|
|
|
1,953 |
|
| Gross Profit |
|
|
2,669 |
|
|
|
(279 |
) |
|
|
— |
|
|
|
2,390 |
|
|
|
1,865 |
|
|
|
328 |
|
|
|
— |
|
|
|
2,193 |
|
| Gross Profit % |
|
|
48.4 |
% |
|
|
(472.9 |
)% |
|
|
|
|
|
|
|
|
|
|
52.3 |
% |
|
|
56.7 |
% |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, General & Administrative Expenses |
|
|
3,927 |
|
|
|
118 |
|
|
|
6,505 |
|
|
|
10,550 |
|
|
|
1,104 |
|
|
|
337 |
|
|
|
7,781 |
|
|
|
9,222 |
|
| Impairment Expense |
|
|
— |
|
|
|
— |
|
|
|
1,709 |
|
|
|
1,709 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| (Gain) Loss on Disposal of Assets |
|
|
174 |
|
|
|
(40 |
) |
|
|
— |
|
|
|
134 |
|
|
|
— |
|
|
|
— |
|
|
|
67 |
|
|
|
67 |
|
| Income (Loss) from Operations |
|
|
(1,432 |
) |
|
|
(357 |
) |
|
|
(8,214 |
) |
|
|
(10,003 |
) |
|
|
761 |
|
|
|
(9 |
) |
|
|
(7,848 |
) |
|
|
(7,096 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense |
|
|
(349 |
) |
|
|
— |
|
|
|
(778 |
) |
|
|
(1,127 |
) |
|
|
— |
|
|
|
— |
|
|
|
(294 |
) |
|
|
(294 |
) |
| Gain on Extinguishment of Debt |
|
|
— |
|
|
|
— |
|
|
|
15,182 |
|
|
|
15,182 |
|
|
|
— |
|
|
|
— |
|
|
|
3,026 |
|
|
|
3,026 |
|
| Change in Fair Value of Derivative Liability |
|
|
— |
|
|
|
— |
|
|
|
(130 |
) |
|
|
(130 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Income from Employer Retention Credit |
|
|
— |
|
|
|
— |
|
|
|
361 |
|
|
|
361 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Realized Loss on Investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(61 |
) |
|
|
(61 |
) |
| Unrealized Gain on Investments |
|
|
— |
|
|
|
— |
|
|
|
(353 |
) |
|
|
(353 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other Income (Expense) |
|
|
146 |
|
|
|
— |
|
|
|
2 |
|
|
|
148 |
|
|
|
(300 |
) |
|
|
— |
|
|
|
264 |
|
|
|
(36 |
) |
| Total Other Income (Expense), Net |
|
|
(203 |
) |
|
|
— |
|
|
|
14,284 |
|
|
|
14,081 |
|
|
|
(300 |
) |
|
|
— |
|
|
|
2,935 |
|
|
|
2,635 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (Loss) Before Provision for Income Taxes |
|
$ |
(1,635 |
) |
|
$ |
(357 |
) |
|
$ |
6,070 |
|
|
$ |
4,078 |
|
|
$ |
461 |
|
|
$ |
(9 |
) |
|
$ |
(4,913 |
) |
|
$ |
(4,461 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
25,622 |
|
|
$ |
599 |
|
|
$ |
12,030 |
|
|
$ |
38,251 |
|
|
$ |
18,331 |
|
|
$ |
4,456 |
|
|
$ |
15,573 |
|
|
$ |
38,360 |
|
|