Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

Note 20: SEGMENT INFORMATION

Reportable Segments

Operating segments are components of the Company that combine similar business activities, with activities grouped to facilitate the evaluation of business units and allocation of resources by the Company’s board and management. As of December 31, 2021, the Company had two reportable segments:

• THC Cannabis – Production and cultivation of THC cannabis, manufacturing and distribution of cannabis products to own dispensaries and third-party retail customers, ancillary services supporting wholesale operations, and retail sales direct to end consumers

• CBD Wellness – Pure Ratios which encompasses the production and sale of CBD products to third-party customers

The results of each segment are regularly reviewed by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker, to assess the performance of the segment and make decisions regarding the allocation of resources. The Company’s chief operating decision maker uses revenue and adjusted EBITDA as measure of segment performance. The accounting policies of each segment are the same as those set out under the summary of significant accounting policies in Note 2. There are no intersegment sales or transfers. All revenues are derived from customers domiciled in the United States and all assets are located in the United States.

The below table presents revenues by type for the years ended December 31, 2021 and 2020:

	2021		2020
Net Revenues
THC Cannabis	$	102,262	$	50,041
CBD Wellness		2,304		7,594
Corporate		—		—
Total Net Revenues	$	104,566	$	57,635
Depreciation and Amortization
THC Cannabis	$	5,087	$	3,982
CBD Wellness		15		79
Corporate		—		—
Total Depreciation and amortization	$	5,102	$	4,061
Assets
THC Cannabis	$	238,933	$	186,899
CBD Wellness		805		2,198
Corporate		15,801		15,659
Total Assets	$	255,539	$	204,756

Goodwill assigned to the THC Cannabis segment as of December 31, 2021 and December 31, 2020 was $23,155. Intangible assets, net assigned to the THC Cannabis segment as of December 31, 2021 and December 31, 2020 was $26,246 and $28,790, respectively.

The Company did not have any Goodwill or intangible assets assigned to the CBD Wellness segment as of December 31, 2021 and December 31, 2020.