Annual report [Section 13 and 15(d), not S-K Item 405]

Note 23 - Segment Information

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Note 23 - Segment Information
12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 23  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 distributes its own branded products under the Korova brand as well as third party products to retail dispensaries in California through a licensed distributor. Refer to "Note 21 - Discontinued Operations" for information on the Company's cultivation operations.

 

The Company's chief operating decision maker ("CODM") is its Chief Executive Officer, who reviews financial information presented on a consolidated basis and by operating segments. The CODM uses revenue, gross profit, operating income, and income (loss) before taxes to assess the Company's financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions related to business growth and operational efficiency, such as product offerings, store expansions, marketing strategies, and financial management. 

 

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

 

    (in thousands)  
   

Year Ended December 31,

 

Segment

 

2024

   

2023

   

2024

   

2023

 
   

Total Revenue

   

% of Total Revenue

 

Cannabis Retail

  $ 12,801     $ 7,440       98.5 %     95.9 %

Cannabis Distribution

    189       316       1.5 %     4.1 %

Total

  $ 12,990     $ 7,756       100.0 %     100.0 %

 

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

 

    (in thousands)  
   

Year Ended December 31, 2024

   

Year Ended December 31, 2023

 
   

Cannabis Retail

   

Cannabis Distribution

   

Corporate and Other

   

Total

   

Cannabis Retail

   

Cannabis Distribution

   

Corporate and Other

   

Total

 

Total Revenues

  $ 12,801     $ 189     $     $ 12,990     $ 7,440     $ 316     $     $ 7,756  

Cost of Goods Sold

    6,286       496             6,782       3,804       144             3,948  

Gross Profit (Loss)

    6,515       (307 )           6,208       3,636       172             3,808  

Gross Profit %

    50.9 %     -162.4 %                 48.9 %     54.4 %            
                                                                 

Selling, General & Administrative Expenses

    8,458       309       9,789       18,556       5,027       1,105       14,870       21,002  

Impairment Expense

                1,709       1,709                          

(Gain) Loss on Disposal of Assets

    (3,190 )     (42 )     (16,207 )     (19,439 )     1,540             67       1,607  

Income (Loss) from Operations

    1,247       (574 )     4,709       5,382       (2,931 )     (933 )     (14,937 )     (18,801 )
                                                                 

Other Income (Expense):

                                                               

Interest Expense

    (792 )           (1,331 )     (2,123 )                 (2,417 )     (2,417 )

Gain on Extinguishment of Debt

                15,133       15,133                   5,441       5,441  

Change in Fair Value of Derivative Liability

                (492 )     (492 )                        

Income from Employer Retention Credit

                                        1,232       1,232  

Gain (Loss) on Investments

                167       167                   (61 )     (61 )

Unrealized Gain on Investments

                                        667       667  

Other Income (Loss)

    227             16       243       (61 )     (39 )     929       829  

Total Other Income (Loss)

    (565 )           13,493       12,928       (61 )     (39 )     5,791       5,691  
                                                                 

Income (Loss) Before Provision for Income Taxes

  $ 682     $ (574 )   $ 18,202     $ 18,310     $ (2,992 )   $ (972 )   $ (9,146 )   $ (13,110 )
                                                                 

Total Assets

  $ 23,361     $ 422     $ 1,037     $ 24,820     $ 14,040     $ 938     $ 17,093     $ 32,071