| SEGMENT INFORMATION |
SEGMENT INFORMATION The Company operates in two segments:
(i) Cannabis Retail – Either independently or in conjunction with third parties, the Company operates medical marijuana and adult use cannabis dispensaries in California. All retail dispensaries offer a broad selection of medical and adult use cannabis products including flower, concentrates, and edibles.
(ii) Cannabis Cultivation and Distribution – The Company operates a cultivation facility in Oakland, California and distributes flower grown from the facility to other manufacturers or to its own retail cannabis dispensaries in California under the Korova brand.
For the periods presented, revenue by reportable segments are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
Total Revenue |
|
% of Total Revenue |
|
Three Months Ended March 31, |
| Segment |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Cannabis Retail |
$ |
7,959 |
|
|
$ |
12,109 |
|
|
91.2 |
% |
|
65.6 |
% |
| Cannabis Cultivation & Distribution |
770 |
|
|
6,336 |
|
|
8.8 |
% |
|
34.4 |
% |
|
|
|
|
|
|
|
|
| Total |
$ |
8,729
|
|
|
$ |
18,445
|
|
|
100.0
|
% |
|
100.0
|
% |
For the periods presented, results of operations by reportable segments are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Three Months Ended March 31, 2023 |
|
Three Months Ended March 31, 2022 |
|
Cannabis Retail |
|
Cannabis Cultivation & Distribution |
|
Corporate & Other |
|
Total |
|
Cannabis Retail |
|
Cannabis Cultivation & Distribution |
|
Corporate & Other |
|
Total |
| Total Revenues |
$ |
7,959 |
|
|
$ |
770 |
|
|
$ |
— |
|
|
$ |
8,729 |
|
|
$ |
12,109 |
|
|
$ |
6,336 |
|
|
$ |
— |
|
|
$ |
18,445 |
|
| Cost of Goods Sold |
3,805 |
|
|
740 |
|
|
— |
|
|
4,545 |
|
|
6,881 |
|
|
5,855 |
|
|
— |
|
|
12,736 |
|
| Gross Profit |
4,154 |
|
|
30 |
|
|
— |
|
|
4,184 |
|
|
5,228 |
|
|
481 |
|
|
— |
|
|
5,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, General & Administrative Expenses |
3,045 |
|
|
164 |
|
|
3,895 |
|
|
7,104 |
|
|
5,025 |
|
|
4,600 |
|
|
8,306 |
|
|
17,931 |
|
| Gain on Disposal of Assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(198) |
|
|
(198) |
|
| Income (Loss) from Operations |
1,109 |
|
|
(134) |
|
|
(3,895) |
|
|
(2,920) |
|
|
203 |
|
|
(4,119) |
|
|
(8,108) |
|
|
(12,024) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense |
(48) |
|
|
— |
|
|
(976) |
|
|
(1,024) |
|
|
— |
|
|
(165) |
|
|
(1,601) |
|
|
(1,766) |
|
| Gain on Extinguishment of Debt |
— |
|
|
— |
|
|
3,026 |
|
|
3,026 |
|
|
— |
|
|
— |
|
|
542 |
|
|
542 |
|
| Gain on Settlement of Liabilities |
587 |
|
|
9 |
|
|
911 |
|
|
1,507 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Loss on Sale of Investments |
— |
|
|
— |
|
|
(61) |
|
|
(61) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Other Income, Net |
225 |
|
|
315 |
|
|
— |
|
|
540 |
|
|
78 |
|
|
415 |
|
|
539 |
|
|
1,032 |
|
| Total Other Income (Loss), Net |
764 |
|
|
324 |
|
|
2,900 |
|
|
3,988 |
|
|
78 |
|
|
250 |
|
|
(520) |
|
|
(192) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (Loss) Before Provision for Income Taxes |
$ |
1,873
|
|
|
$ |
190
|
|
|
$ |
(995) |
|
|
$ |
1,068
|
|
|
$ |
281
|
|
|
$ |
(3,869) |
|
|
$ |
(8,628) |
|
|
$ |
(12,216) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
$ |
19,882
|
|
|
$ |
4,290
|
|
|
$ |
15,294
|
|
|
$ |
39,466
|
|
|
$ |
52,125
|
|
|
$ |
580
|
|
|
$ |
197,097
|
|
|
$ |
249,802
|
|
|