Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.23.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
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) (in thousands)
Total Revenue % of Total Revenue Total Revenue % of Total Revenue
Three Months Ended September 30, Nine Months Ended September 30,
Segment 2023 2022 2023 2022 2023 2022 2023 2022
Cannabis Retail $ 8,101  $ 9,252  94.1  % 95.2  % $ 24,986  $ 32,905  93.8  % 74.2  %
Cannabis Cultivation & Distribution 511  469  5.9  % 4.8  % 1,663  11,466  6.2  % 25.8  %
Total $ 8,612  $ 9,721  100.0  % 100.0  % $ 26,649  $ 44,371  100.0  % 100.0  %
For the periods presented, results of operations by reportable segments are as follows:
(in thousands)
Three Months Ended September 30, 2023 Three Months Ended September 30, 2022
Cannabis Retail Cannabis Cultivation & Distribution Corporate & Other Total Cannabis Retail Cannabis Cultivation & Distribution Corporate & Other Total
Total Revenues $ 8,101  $ 511  $ —  $ 8,612  $ 9,252  $ 469  $ —  $ 9,721 
Cost of Goods Sold 3,861  757  —  4,618  3,861  5,902  —  9,763 
Gross Profit 4,240  (246) —  3,994  5,391  (5,433) —  (42)
Gross Profit % 52.3  % (48.1) % 58.3  % (1158.4) %
Selling, General & Administrative Expenses 4,118  245  3,166  7,529  3,840  3,299  5,613  12,752 
Impairment Expense —  —  —  —  —  —  107,972  107,972 
Loss (Gain) on Disposal of Assets 1,541  —  (1) 1,540  169  1,359  1  1,529 
Income (Loss) from Operations (1,419) (491) (3,165) (5,075) 1,382  (10,091) (113,586) (122,295)
Other Income (Expense):
Interest Expense —  —  (944) (944) —  (2) (379) (381)
Loss on Settlement of Liabilities (8) —  (33) (41) —  —  —  — 
Income from Employer Retention Credit —  —  1,232  1,232  —  —  —  — 
Unrealized Gain (Loss) on Investments —  —  1,333  1,333  —  —  (493) (493)
Other Income (Expense) 327  (261) 376  442  (485) 567  (294) (212)
Total Other Income (Expense), Net 319  (261) 1,964  2,022  (485) 565  (1,166) (1,086)
Income (Loss) Before Provision for Income Taxes $ (1,100) $ (752) $ (1,201) $ (3,053) $ 897  $ (9,526) $ (114,752) $ (123,381)
Total Assets (Liabilities) $ 14,925  $ 4,252  $ 17,354  $ 36,531  $ 49,017  $ (9,838) $ 14,671  $ 53,850 
(in thousands)
Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022
Cannabis Retail Cannabis Cultivation & Distribution Corporate & Other Total Cannabis Retail Cannabis Cultivation & Distribution Corporate & Other Total
Total Revenues $ 24,986  $ 1,663  $ —  $ 26,649  $ 32,905  $ 11,466  $ —  $ 44,371 
Cost of Goods Sold 11,629  1,731  —  13,360  16,172  14,041  —  30,213 
Gross Profit 13,357  (68) —  13,289  16,733  (2,575) —  14,158 
Gross Profit % 53.5  % (4.1) % 50.9  % (22.5) %
Selling, General & Administrative Expenses 9,428  712  11,057  21,197  15,292  11,785  21,766  48,843 
Impairment Expense —  —  —  —  —  —  163,698  163,698 
Loss (Gain) on Disposal of Assets 1,541  —  (1,740) (199) 711  1,359  (198) 1,872 
Income (Loss) from Operations 2,388  (780) (9,317) (7,709) 730  (15,719) (185,266) (200,255)
Other Income (Expense):
Interest Expense —  —  (2,155) (2,155) —  (178) (2,408) (2,586)
Gain on Extinguishment of Debt —  —  3,026  3,026  —  —  542  542 
Gain (Loss) on Settlement of Liabilities 102  —  (33) 69  —  —  —  — 
Income from Employer Retention Credit —  —  1,232  1,232  —  —  —  — 
Realized Loss on Investments —  —  (61) (61) —  —  —  — 
Unrealized Gain on Investments —  —  1,333  1,333  —  —  470  470 
Other Income (Expense) 10  63  640  713  (882) 1,094  434  646 
Total Other Income (Expense), Net 112  63  3,982  4,157  (882) 916  (962) (928)
Income (Loss) Before Provision for Income Taxes $ 2,500  $ (717) $ (5,335) $ (3,552) $ (152) $ (14,803) $ (186,228) $ (201,183)
Total Assets (Liabilities) $ 14,925  $ 4,252  $ 17,354  $ 36,531  $ 49,017  $ (9,838) $ 14,671  $ 53,850