Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Finite-lived Intangible Assets Amortization Expense The approximate useful lives for amortization of our intangible assets are as follows:
Customer Relationships
3 to 5 Years
Trademarks
2 to 8 Years
Dispensary Licenses 14 years
Schedule of Derivative Liabilities at Fair Value
The following tables present the Company’s financial instruments that are measured and recorded at fair value on the Company’s balance sheets on a recurring basis, and their level within the fair value hierarchy as of December 31, 2020:
Investments as of December 30, 2020: Amount Level 1 Level 2 Level 3
Warrants to acquire shares of HydroFarm $ 10,195  $ —  $ 10,195  $ — 
Shares of HydroFarm 23,850  —  23,850  — 
Option to acquire common shares of Edible Garden: 330  —  —  330 
Total $ 34,375  $   $ 34,045  $ 330 
Schedule of Revenue by Major Customers by Reporting Segments
The table below includes revenue disaggregated by geographic location for the years ended December 31, 2021 and 2020:
(in thousands)
2021 2020
California $ 42,120  $ 6,161 
Oregon 5,553  — 
Total $ 47,673  $ 6,161 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Potentially dilutive securities that are not included in the calculation of diluted net loss per share because their effect is anti-dilutive are as follows (in common equivalent shares):
Year Ended December 31,
2021 2020
Common stock warrants 30,677,637  1,076,555 
Common stock options 88,251,380  17,492,830 
118,929,017  18,569,385 
Schedule of Error Corrections and Prior Period Adjustments The January 1, 2021 cumulative effect adjustment to the Company’s financial position was as follows (in thousands):
As Reported Cumulative Effect Adjustment As Reported
December 31, 2020 January 1, 2021
Additional Paid-In Capital $ 275,060  $ 1,071  $ 276,131 
Accumulated Deficit $ 219,803  $ (1,059) $ 218,744 
Debt Discount $ 50  $ (12) $ 38