| 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) |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
| |
|
Total Revenue |
|
|
% of Total Revenue |
|
|
Total Revenue |
|
|
% of Total Revenue |
|
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| Cannabis Retail |
|
$ |
4,777 |
|
|
$ |
4,283 |
|
|
|
98.6 |
% |
|
|
98.1 |
% |
|
$ |
10,328 |
|
|
$ |
9,793 |
|
|
|
97.8 |
% |
|
|
98.6 |
% |
| Cannabis Distribution |
|
|
70 |
|
|
|
81 |
|
|
|
1.4 |
% |
|
|
1.9 |
% |
|
|
237 |
|
|
|
140 |
|
|
|
2.2 |
% |
|
|
1.4 |
% |
| Total |
|
$ |
4,847 |
|
|
$ |
4,364 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
$ |
10,565 |
|
|
$ |
9,933 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
A reconciliation of the reportable segments' results of operations to the consolidated statements of operations is as follows, in which "Corporate & Other" represents non-cash income/expense and corporate expenditures unrelated to revenue-generating operations.
| |
|
(in thousands) |
|
| |
|
Three Months Ended September 30, 2025 |
|
|
Three Months Ended September 30, 2024 |
|
| |
|
Cannabis |
|
|
Cannabis |
|
|
Corporate & |
|
|
|
|
|
|
Cannabis |
|
|
Cannabis |
|
|
Corporate & |
|
|
|
|
|
| |
|
Retail |
|
|
Distribution |
|
|
Other |
|
|
Total |
|
|
Retail |
|
|
Distribution |
|
|
Other |
|
|
Total |
|
| Total Revenues |
|
$ |
4,777 |
|
|
$ |
70 |
|
|
$ |
— |
|
|
$ |
4,847 |
|
|
$ |
4,283 |
|
|
$ |
81 |
|
|
$ |
— |
|
|
$ |
4,364 |
|
| Cost of Goods Sold |
|
|
2,504 |
|
|
|
21 |
|
|
|
— |
|
|
|
2,525 |
|
|
|
1,974 |
|
|
|
(58 |
) |
|
|
— |
|
|
|
1,916 |
|
| Gross Profit |
|
|
2,273 |
|
|
|
49 |
|
|
|
— |
|
|
|
2,322 |
|
|
|
2,309 |
|
|
|
139 |
|
|
|
— |
|
|
|
2,448 |
|
| Gross Profit % |
|
|
47.6 |
% |
|
|
70.0 |
% |
|
|
|
|
|
|
|
|
|
|
53.9 |
% |
|
|
171.6 |
% |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, General & Administrative |
|
|
3,332 |
|
|
|
3 |
|
|
|
483 |
|
|
|
3,818 |
|
|
|
2,563 |
|
|
|
111 |
|
|
|
1,615 |
|
|
|
4,289 |
|
| Loss on Disposal of Assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
327 |
|
|
|
359 |
|
| Income (Loss) from Operations |
|
|
(1,059 |
) |
|
|
46 |
|
|
|
(483 |
) |
|
|
(1,496 |
) |
|
|
(286 |
) |
|
|
28 |
|
|
|
(1,942 |
) |
|
|
(2,200 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Income (Expense) |
|
|
(486 |
) |
|
|
— |
|
|
|
5 |
|
|
|
(481 |
) |
|
|
(207 |
) |
|
|
— |
|
|
|
(458 |
) |
|
|
(665 |
) |
| Change in Fair Value of Derivative Liability |
|
|
— |
|
|
|
— |
|
|
|
(78 |
) |
|
|
(78 |
) |
|
|
— |
|
|
|
— |
|
|
|
(550 |
) |
|
|
(550 |
) |
| Provision from Employee Retention Credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(361 |
) |
|
|
(361 |
) |
| Unrealized Gain on Investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
520 |
|
|
|
520 |
|
| Other Income (Loss) |
|
|
2 |
|
|
|
— |
|
|
|
(43 |
) |
|
|
(41 |
) |
|
|
61 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
60 |
|
| Total Other Expense, Net |
|
|
(484 |
) |
|
|
— |
|
|
|
(116 |
) |
|
|
(600 |
) |
|
|
(146 |
) |
|
|
— |
|
|
|
(850 |
) |
|
|
(996 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (Loss) Before Provision for Income Taxes |
|
$ |
(1,543 |
) |
|
$ |
46 |
|
|
$ |
(599 |
) |
|
$ |
(2,096 |
) |
|
$ |
(432 |
) |
|
$ |
28 |
|
|
$ |
(2,792 |
) |
|
$ |
(3,196 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
44,233 |
|
|
$ |
458 |
|
|
$ |
390 |
|
|
$ |
45,081 |
|
|
$ |
26,388 |
|
|
$ |
574 |
|
|
$ |
11,716 |
|
|
$ |
38,678 |
|
| |
|
(in thousands) |
|
| |
|
Nine Months Ended September 30, 2025 |
|
|
Nine Months Ended September 30, 2024 |
|
| |
|
Cannabis |
|
|
Cannabis |
|
|
Corporate & |
|
|
|
|
|
|
Cannabis |
|
|
Cannabis |
|
|
Corporate & |
|
|
|
|
|
| |
|
Retail |
|
|
Distribution |
|
|
Other |
|
|
Total |
|
|
Retail |
|
|
Distribution |
|
|
Other |
|
|
Total |
|
| Total Revenues |
|
$ |
10,328 |
|
|
$ |
237 |
|
|
$ |
— |
|
|
$ |
10,565 |
|
|
$ |
9,793 |
|
|
$ |
140 |
|
|
$ |
— |
|
|
$ |
9,933 |
|
| Cost of Goods Sold |
|
|
5,220 |
|
|
|
143 |
|
|
|
— |
|
|
|
5,363 |
|
|
|
4,815 |
|
|
|
280 |
|
|
|
— |
|
|
|
5,095 |
|
| Gross Profit |
|
|
5,108 |
|
|
|
94 |
|
|
|
— |
|
|
|
5,202 |
|
|
|
4,978 |
|
|
|
(140 |
) |
|
|
— |
|
|
|
4,838 |
|
| Gross Profit % |
|
|
49.5 |
% |
|
|
39.7 |
% |
|
|
|
|
|
|
|
|
|
|
50.8 |
% |
|
|
(100.0 |
)% |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, General & Administrative Expenses |
|
|
6,830 |
|
|
|
61 |
|
|
|
1,918 |
|
|
|
8,809 |
|
|
|
6,490 |
|
|
|
229 |
|
|
|
8,120 |
|
|
|
14,839 |
|
| Impairment Expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,709 |
|
|
|
1,709 |
|
| (Gain) Loss on Disposal of Assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
206 |
|
|
|
(40 |
) |
|
|
327 |
|
|
|
493 |
|
| Income (Loss) from Operations |
|
|
(1,722 |
) |
|
|
33 |
|
|
|
(1,918 |
) |
|
|
(3,607 |
) |
|
|
(1,718 |
) |
|
|
(329 |
) |
|
|
(10,156 |
) |
|
|
(12,203 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense |
|
|
(1,025 |
) |
|
|
— |
|
|
|
(13 |
) |
|
|
(1,038 |
) |
|
|
(556 |
) |
|
|
— |
|
|
|
(1,236 |
) |
|
|
(1,792 |
) |
| Gain (Loss) on Extinguishment of Debt |
|
|
— |
|
|
|
— |
|
|
|
(174 |
) |
|
|
(174 |
) |
|
|
— |
|
|
|
— |
|
|
|
15,182 |
|
|
|
15,182 |
|
| Change in Fair Value of Derivative Liability |
|
|
— |
|
|
|
— |
|
|
|
191 |
|
|
|
191 |
|
|
|
— |
|
|
|
— |
|
|
|
(680 |
) |
|
|
(680 |
) |
| Unrealized Gain on Investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
167 |
|
|
|
167 |
|
| Other Income |
|
|
2 |
|
|
|
— |
|
|
|
657 |
|
|
|
659 |
|
|
|
207 |
|
|
|
— |
|
|
|
1 |
|
|
|
208 |
|
| Total Other Income (Expense), Net |
|
|
(1,023 |
) |
|
|
— |
|
|
|
661 |
|
|
|
(362 |
) |
|
|
(349 |
) |
|
|
— |
|
|
|
13,434 |
|
|
|
13,085 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (Loss) Before Provision for Income Taxes |
|
$ |
(2,745 |
) |
|
$ |
33 |
|
|
$ |
(1,257 |
) |
|
$ |
(3,969 |
) |
|
$ |
(2,067 |
) |
|
$ |
(329 |
) |
|
$ |
3,278 |
|
|
$ |
882 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
44,233 |
|
|
$ |
458 |
|
|
$ |
390 |
|
|
$ |
45,081 |
|
|
$ |
26,388 |
|
|
$ |
574 |
|
|
$ |
11,716 |
|
|
$ |
38,678 |
|
|