Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

8. Segment Information

The Company’s operating subsidiaries manufacture, distribute and sell two lines of consumer products, dissolvable tobacco and dietary supplements. These products constitute the Company’s reportable segments.

Star Scientific’s chief operating decision maker reviews the income from the operating companies to evaluate segment performance and allocate resources. The income from the Company’s operating segments excludes general corporate expenses and amortization of intangibles. Interest and other debt expense, net, and provision for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by the Company’s chief operating decision maker.

	Six months ended June 30
	2011			2010
	$ thousands
Revenues:
Dissolvable tobacco	$	241		$	484
Dietary supplement		177			—
Total revenue		418			484
Operating losses:
Dissolvable tobacco		(1,443	)		(1,612	)
Dietary supplement		(2,486	)		(3,439	)
Depreciation and amortization		(184	)		(135	)
Corporate expenses		(6,850	)		(13,091	)
Operating losses		(10,963	)		(18,277	)
Interest (expense) income-net		(114	)		(153	)
Miscellaneous (expense) income-net		(5	)		4
Income tax benefit		—			—
Net losses	$	(11,082	)	$	(18,426	)

The following table provides allocation of assets by segment.

	June 30,		December 31,
	2011		2010
	$ thousands
Net assets:
Dissolvable tobacco		1,623		2,039
Dietary supplement		4,935		4,451
Corporate—includes $16,183 and $13,193 in cash, respectively		16,864		13,795
Total net assets		23,422		20,285