Segment Reporting

3 Months Ended

Mar. 31, 2020

SEGMENT REPORTING

We merchandise vaporizers and other products in the United States, Canada and Europe and we distribute to retailers through our wholesale operations and to consumers through e-commerce activities. We define our segments as those operations whose results our Chief Operating Decision Makers ("CODMs") regularly review to analyze performance and allocate resources. Therefore, segment information is prepared on the same basis that management reviews financial information for operational decision-making purposes.

The reportable segments identified are our business activities for which discrete financial information is available and for which operating results are regularly reviewed by our CODMs. As of March 31, 2020, we have three reportable segments: (1) United States, (2) Canada and (3) Europe. The United States operating segment is comprised of our United States operations, the Canadian operating segment is comprised of our Canadian operations, and the European operating segment is comprised of our European operations, currently based in the Netherlands. Corporate and other activities which are not allocated to our reportable segments consist primarily of equity-based compensation expenses and other corporate overhead items. We sell similar individual products in each of our segments.

The table below provides information on revenues from external customers, intersegment revenues, and income (loss) before income taxes for our reportable segments for the three months ended March 31, 2020 and 2019. We eliminate intersegment revenues in consolidation.


	Three Months Ended March 31,
	2020		2019
	(in thousands)
Revenue from external customers:
United States	$	27,130	$	43,091
Canada	4,405		6,807
Europe	2,333		—
Corporate and other	—		—
	$	33,868	$	49,898
Intercompany revenues:
United States	$	2,244	$	609
Canada	14		41
Europe	384		—
Corporate and other	—		—
	$	2,642	$	650
Income (loss) before income taxes:
United States	$	(14,307)	$	(1,074)
Canada	275		134
Europe	(461)		—
Corporate and other	(2,327)		(16,712)
	$	(16,820)	$	(17,652)