Quarterly report [Sections 13 or 15(d)]

Note 20 - Segment Information

v3.25.1
Note 20 - Segment Information
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
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 distributes its own branded products under the Korova brand as well as third party products to retail dispensaries in California through a licensed distributor. 

 

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)

                  
   

Total Revenue

    

% of Total Revenue

  
   

Three Months Ended March 31,

  

Segment

  

2025

    

2024

    

2025

    

2024

  

Cannabis Retail

   $ 2,170     $ 1,754       96.9 %     98.9 %

Cannabis Distribution

     70       20       3.1 %     1.1 %

Total

   $ 2,240     $ 1,774       100.0 %     100.0 %
 

 

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

 

   

(in thousands)

  
   

Three Months Ended March 31, 2025

    

Three Months Ended March 31, 2024

  
   

Cannabis

    

Cannabis

    

Corporate &

            

Cannabis

    

Cannabis

    

Corporate &

          
   

Retail

    

Distribution

    

Other

    

Total

    

Retail

    

Distribution

    

Other

    

Total

  

Total Revenues

   $ 2,170     $ 70     $ —     $ 2,240     $ 1,754     $ 20     $ —     $ 1,774  

Cost of Goods Sold

     972       77       —       1,049       945       31       —       976  

Gross Profit

     1,198       (7 )     —       1,191       809       (11 )     —       798  

Gross Profit %

     55.2 %     (10.0 )%     0.0 %           46.1 %     (55.0 )%     0.0 %      
                                                                 

Selling, General & Administrative Expenses

     1,503       57       932       2,492       1,725       52       2,608       4,385  

Loss from Operations

     (305 )     (64 )     (932 )     (1,301 )     (916 )     (63 )     (2,608 )     (3,587 )
                                                                 

Other Income (Expense):

                                                                

Interest Expense

     (217 )     —       (15 )     (232 )     (162 )     —       (215 )     (377 )

Change in Fair Value of Derivative Liability

     —       —       516       516       —       —       —       —  

Unrealized Gain on Investments

     —       —       —       —       —       —       417       417  

Other Income

     —       —       700       700       5       —       60       65  

Total Other Income (Expense), Net

     (217 )     —       1,201       984       (157 )     —       262       105  
                                                                 

Income (Loss) Before Provision for Income Taxes

   $ (522 )   $ (64 )   $ 269     $ (317 )   $ (1,073 )   $ (63 )   $ (2,346 )   $ (3,482 )
                                                                 

Total Assets

   $ 22,414     $ 451     $ 900     $ 23,765     $ 13,121     $ 894     $ 17,948     $ 31,963