SEGMENTS

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENTS

14.SEGMENTS

The Company conducts and manages its business through two reportable segments, representing the major lines of its cannabis business: Cultivation (Wholesale) and Retail. The Cultivation (Wholesale) segment consists of the

cultivation, production and sale of cannabis products to retail stores. The Retail segment consists of the retailing of cannabis to patients and consumers. Summarized financial information for these segments is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue, net of discounts
Cultivation (Wholesale)	$	80,226	$	57,898	$	200,908	$	166,371
Retail	184,219		172,206		533,860		408,274
Intersegment Eliminations	(36,857)		(23,635)		(81,283)		(48,215)
Total Revenue, net of discounts	227,588		206,469		653,485		526,430
Depreciation and Amortization
Cultivation (Wholesale)	20,727		16,083		59,540		38,365
Retail	15,592		13,481		46,690		27,255
Total Depreciation and Amortization	36,319		29,564		106,230		65,620
Income taxes
Cultivation (Wholesale)	33,450		5,396		45,952		17,173
Retail	35,931		21,690		60,046		49,766
Total Income Taxes	69,381		27,086		105,998		66,939

Goodwill assigned to the Cultivation (Wholesale) segment as of September 30, 2022 and December 31, 2021 was $92,166 and $91,116, respectively. Goodwill assigned to the Retail segment as of September 30, 2022 and December 31, 2021 was $288,242 and $277,014, respectively.

The Company’s assets are aggregated into two reportable segments (Retail and Cultivation). For the purposes of testing goodwill, the Company has identified 13 reporting units. The Company determined its reporting units by first reviewing the operating segments based on the geographic areas in which the Company conducts business (or each market). The markets were then further divided into reporting units based on the market operations (retail and cultivation) which were primarily determined based on the licenses each market holds. Substantially, all revenues are derived from customers domiciled in the United States and substantially all assets are located in the United States.