Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.23.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION 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 Cultivation and Distribution – The Company operates a cultivation facility in Oakland, California and distributes flower grown from the facility to other manufacturers or to its own retail cannabis 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 2023 2022 2023 2022 2023 2022 2023 2022
Cannabis Retail $ 8,415  $ 11,140  95.7  % 70.5  % $ 16,885  $ 23,653  93.6  % 68.3  %
Cannabis Cultivation & Distribution 382  4,661  4.3  % 29.5  % 1,152  10,997  6.4  % 31.7  %
Total $ 8,797  $ 15,801  100.0  % 100.0  % $ 18,037  $ 34,650  100.0  % 100.0  %
For the periods presented, results of operations by reportable segments are as follows:
(in thousands)
Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
Cannabis Retail Cannabis Cultivation & Distribution Corporate & Other Total Cannabis Retail Cannabis Cultivation & Distribution Corporate & Other Total
Total Revenues $ 8,415  $ 382  $ —  $ 8,797  $ 11,140  $ 4,661  $ —  $ 15,801 
Cost of Goods Sold 3,963  234  —  4,197  5,430  2,284  —  7,714 
Gross Profit 4,452  148  —  4,600  5,710  2,377  —  8,087 
Gross Profit % 52.9  % 38.7  % 51.3  % 51.0  %
Selling, General & Administrative Expenses 2,852  312  4,907  8,071  6,427  3,886  7,847  18,160 
Impairment Expense —  —  —  —  —  —  55,726  55,726 
(Gain) Loss on Disposal of Assets —  —  (1,739) (1,739) 542  —  (1) 541 
Income (Loss) from Operations 1,600  (164) (3,168) (1,732) (1,259) (1,509) (63,572) (66,340)
Other Income (Expense):
Interest Income (Expense) 48  —  (235) (187) —  (11) (427) (438)
Gain on Settlement of Liabilities 110  —  —  110  —  —  —  — 
Unrealized Gain on Investments —  —  —  —  —  —  963  963 
Other Income (Expense) (31) 9  264  242  (71) 112  189  230 
Total Other Income (Expense), Net 127  9  29  165  (71) 101  725  755 
Income (Loss) Before Provision for Income Taxes $ 1,727  $ (155) $ (3,139) $ (1,567) $ (1,330) $ (1,408) $ (62,847) $ (65,585)
Total Assets (Liabilities) $ 18,231  $ 4,456  $ 15,573  $ 38,260  $ 51,162  $ (73) $ 129,166  $ 180,255 
(in thousands)
Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
Cannabis Retail Cannabis Cultivation & Distribution Corporate & Other Total Cannabis Retail Cannabis Cultivation & Distribution Corporate & Other Total
Total Revenues $ 16,885  $ 1,152  $ —  $ 18,037  $ 23,653  $ 10,997  $ —  $ 34,650 
Cost of Goods Sold 7,768  974  —  8,742  12,311  8,139  —  20,450 
Gross Profit 9,117  178  —  9,295  11,342  2,858  —  14,200 
Gross Profit % 54.0  % 15.5  % 48.0  % 26.0  %
Selling, General & Administrative Expenses 5,310  467  7,891  13,668  11,452  8,486  16,153  36,091 
Impairment Expense —  —  —  —  —  —  55,726  55,726 
(Gain) Loss on Disposal of Assets —  —  (1,739) (1,739) 542  —  (199) 343 
Income (Loss) from Operations 3,807  (289) (6,152) (2,634) (652) (5,628) (71,680) (77,960)
Other Income (Expense):
Interest Expense —  —  (1,211) (1,211) —  (176) (2,028) (2,204)
Gain on Extinguishment of Debt —  —  3,026  3,026  —  —  542  542 
Gain on Settlement of Liabilities 110  —  —  110  —  —  —  — 
Realized Loss on Investments —  —  (61) (61) —  —  —  — 
Unrealized Gain on Investments —  —  —  —  —  —  963  963 
Other Income (Expense) (317) 324  264  271  (397) 527  728  858 
Total Other Income (Expense), Net (207) 324  2,018  2,135  (397) 351  205  159 
Income (Loss) Before Provision for Income Taxes $ 3,600  $ 35  $ (4,134) $ (499) $ (1,049) $ (5,277) $ (71,475) $ (77,801)
Total Assets (Liabilities) $ 18,231  $ 4,456  $ 15,573  $ 38,260  $ 51,162  $ (73) $ 129,166  $ 180,255