SEGMENTS

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENTS

SEGMENTS

An operating segment is defined as a component of a reporting entity that engages in business activities from which it recognizes revenues and incurs expenses with discrete financial information available that is evaluated regularly by the Chief Operating Decision Maker ("CODM") of the operating segment. The CODM utilizes this financial information to decide how to allocate resources to, and in assessing performance of, the operating segment. Management evaluates segment performance primarily based on operating segment gross profit.

The Company has identified the following operating segments related to fiscal years 2023 and 2022:

•Equipment systems - Operating segment that acts as an experienced vendor providing value-added reselling to clients when selling vetted best-in-call commercial horticulture lighting solutions, rolling and automated container benching systems, specialty fans, fertigation/irrigation systems, environmental control systems, and microbial mitigation and odor reduction systems.

•Services - Operating segment that generates revenue by providing clients with design-build service offerings that include architectural, interior, and engineering design, construction management, as well as services for the operational stages of the facility. The Company's in-house architectural, interior design, engineering, construction and cultivation design services integrate design with pre-construction services and thereby reduce project schedule and capital investments.

•Construction design-build - Operating segment that engages as a general contractor to provide all the additional necessary parts to deliver clients' projects, from the initial estimate and bid process, to subcontractor selection, and management of all construction details.

In addition to the operating segments identified above, the Company recognizes other revenues and incurs costs at the corporate level where it develops and oversees the implementation of company-wide strategic initiatives and provides support to our operating segments by centralizing certain administrative functions. Corporate management is responsible for, among other things: evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of the Company's operating segments. Corporate costs include general and administrative expenses related to operating our corporate headquarters.

The Company's operating segments follow the same accounting policies used for our consolidated financial statements as described in Note 1 – Summary of Significant Accounting Policies. The results of each operating segment are not necessarily indicative of the results that would have occurred had the operating segment been an independent, stand-alone entity during the periods presented, nor are they indicative of the results to be expected in future periods.

The following tables present financial information relating to our operating segments for the fiscal years ended December 31, 2023 and 2022:

	Year Ended December 31, 2023
	Equipment			Services			Construction			Corporate/ Other			Total
Revenues	$	12,720,873		$	11,919,920		$	44,561,782		$	717,473		$	69,920,048
Cost of revenues	11,081,532			7,222,964			41,194,900			517,986			60,017,382
Gross profit	$	1,639,341		$	4,696,956		$	3,366,882		$	199,487		$	9,902,666
Gross profit %	13		%	39		%	8		%	28		%	14		%
Intangible asset amortization	$	—		$	411,680		$	644,500		$	—		$	1,056,180
Business development	$	—		$	—		$	—		$	—		$	—
Income (Loss) before income taxes	$	(3,360,659)		$	(1,414,727)		$	(177,618)		$	(20,390,448)		$	(25,343,452)
Total assets	$	2,800,367		$	17,604,751		$	31,310,180		$	(2,202,231)		$	49,513,067
	Year Ended December 31, 2022
	Equipment			Services			Construction			Corporate/ Other			Total
Revenues	$	33,119,480		$	13,084,647		$	19,080,747		$	1,009,825		$	66,294,699
Cost of revenues	28,776,022			6,239,013			18,392,077			732,065			54,139,177
Gross profit	$	4,343,458		$	6,845,634		$	688,670		$	277,760		$	12,155,522
Gross profit %	13		%	52		%	4		%	28		%	18		%
Intangible asset amortization	$	10,547		$	500,451		$	548,781		$	—		$	1,059,779
Business development	$	3,299,864		$	—		$	—		$	—		$	3,299,864
Income (Loss) before income taxes	$	(3,966,953)		$	645,181		$	(1,960,111)		$	(10,956,108)		$	(16,237,991)
Total assets	$	12,338,461		$	21,023,989		$	20,819,338		$	6,112,699		$	60,294,487