Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 16: 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 of directors and management. As of June 30, 2022, 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; and 

• 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 net loss as measure of segment performance. 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, depreciation and amortization, and net (income) loss by type for the three and six months ended June 30, 2022 and 2021, as well as assets by type as of June 30, 2022 and December 31, 2021:

	Three Months Ended June 30,					Six Months Ended June 30,
	2022			2021		2022			2021
Net Revenues
THC Cannabis	$	28,195		$	26,396	$	53,978		$	48,544
CBD Wellness		244			725		509			1,547
Corporate		—			—		—			—
Total Net Revenues		28,439			27,121		54,487			50,091
Depreciation and Amortization
THC Cannabis		1,123			833		1,970			1,589
CBD Wellness		—			—		—			16
Corporate		—			28		—			30
Total Depreciation and Amortization		1,123			861		1,970			1,635
Net (Income) Loss
THC Cannabis		3,846			1,003		4,102			3,841
CBD Wellness		(104	)		817		(119	)		820
Corporate		2,809			4,403		8,467			12,651
Total Net Loss	$	6,551		$	6,223	$	12,450		$	17,312

Assets	June 30, 2022		December 31, 2021
THC Cannabis	$	318,795	$	238,933
CBD Wellness		781		805
Corporate		881		15,801
Total Assets	$	320,457	$	255,539

Goodwill assigned to the THC Cannabis segment as of June 30, 2022 and December 31, 2021 was $42,037 and $23,155, respectively. Intangible assets, net assigned to the THC Cannabis segment as of June 30, 2022 and December 31, 2021 were $54,239 and $26,246, respectively.

The Company did not have any Goodwill or intangible assets assigned to the CBD Wellness segment as of June 30, 2022 and December 31, 2021.