Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.23.1
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information  
Note 11 - Segment Information

Management, including the Company’s Interim Chief Executive Officer and Interim Chief Operating Officer who are considered the Company’s Chief Operating Decision Maker (“CODM”) (as defined in the FASB ASC Topic 280 Segment Reporting), assesses segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, amortization of intangibles, write-downs and other charges, interest income, interest expense, accretion expense and tax (provision) recovery are not allocated to the segments.
The Company divides its reportable operating segments primarily by geographic region. The Company has two reportable operating segments: Eastern Region and Western Region. The Eastern Region includes the Company’s operations in Florida, Maryland, Massachusetts, New York, New Jersey, and Vermont. The Western Region includes the Company’s operations in Arizona and Nevada as well as its assets and investments in Colorado. The two geographic regions are looked at separately by the CODM and Company’s management as the operations within those regions are in different stages of development. The operations comprising the Western Region are more established than those in the Eastern Region. Most of the Company’s financial and operational growth is being driven by the Eastern Region. Both the Eastern Region and the Western Region segments generate revenues from the sale of cannabis products through retail dispensaries as well as wholesale supply agreements.
The “Other” category in the disclosure below comprises items not separately identifiable to the two reportable operating segments and are not part of the measures used by the Company when assessing the reportable operating segments’ results. It also includes items related to operating segments of the Company that did not meet the quantitative thresholds under ASC
280-10-50-12
to be considered reportable operating segments, nor did they meet the aggregation criteria under ASC
280-10-50-11
to qualify for aggregation with one of the two reportable operating segments of the Company. All inter-segment profits are eliminated upon consolidation.

Reportable Segments
 
 
  
Year Ended December 31,
 
 
  
2022
 
 
2021 (Revised)
 
Revenues
  
 
Eastern Region
    $ 96,478     $ 128,979  
Western Region
      65,644       72,424  
Other
(1)
      1,091       1,615  
    
 
 
    
 
 
  
Total
   
$
163,213
 
  
$
203,018
 
    
 
 
    
 
 
  
 
 
 
 
 
 
 
 
 
Gross profit (loss)
                 
Eastern Region
    $ 52,108     $ 83,108  
Western Region
      21,910       27,877  
Other
      414       (1,457 ) 
    
 
 
    
 
 
  
Total
   
$
74,432
 
  
$
109,528
 
    
 
 
    
 
 
  
 
 
 
 
 
 
 
 
 
Depreciation and amortization
                 
Eastern Region
    $ 16,743     $ 16,885  
Western Region
      11,820       11,235  
Other
      532       807  
    
 
 
    
 
 
  
Total
   
$
29,095
 
  
$
28,927
 
    
 
 
    
 
 
  
 
 
 
 
 
 
 
 
 
(Recoveries), write-downs and other charges, net
                 
Eastern Region
    $ (620 )   $ 95  
Western Region
      —         —    
Other
      (226 )      (48 )
    
 
 
    
 
 
  
Total
   
$
(846
 )
 
  
$
47
 
 
 
 
 
 
 
 
 
 
Impairment loss
 
 
 
 
 
 
 
 
Eastern Region
 
$
 695
 
 
$
 127
 
Western Region
 
 
29,856
 
 
 
— 
 
Other
 
 
—  
 
 
 
7,240
 
Total
 
$
30,551
 
 
$
7,367
 
 
 
 
 
 
 
 
 
 
Net (loss) income
                 
Eastern Region
    $ (4,981 )    $ 7,886  
Western Region
      (38,019 )      (2,792 ) 
Other
      (406,391 )      (82,584 ) 
    
 
 
    
 
 
  
Total
   
$
(449,391
 )
 
  
$
(77,490
) 
    
 
 
    
 
 
  
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
                 
Eastern Region
    $ 5,954     $ 17,384  
Western Region
      982       2,024  
Other
      3       32  
    
 
 
    
 
 
  
Total
   
$
6,939
 
  
$
19,440
 
    
 
 
    
 
 
  
 
 
 
 
 
 
 
 
 
Purchase of
intangible assets

                 
Eastern Region
    $ —       $ 100  
Western Region
      —         —    
Other
      113       859  
    
 
 
    
 
 
  
Total
   
$
113
 
  
$
959
 
    
 
 
    
 
 
  
 
(1)
Revenues from segments below the quantitative thresholds are attributable to an operating segment of the Company that includes revenue from the sale of CBD products throughout the United States. This segment has never met any of the quantitative thresholds for determining reportable segments nor does it meet the qualitative criteria for aggregation with the Company’s reportable segments.

 
 
  
As of December 31,
 
 
  
2022
 
  
2021

(Revised)
 
Assets
  
  
Eastern Region
  
$
226,458
 
  
$
222,350
 
Western Region
  
 
60,896
 
  
 
106,485
 
Other
  
 
16,113
 
  
 
16,154
 
  
 
 
 
  
 
 
 
Total
  
$
303,467
 
  
$
344,989
 
  
 
 
 
  
 
 
 
Major Customers
Major customers are defined as customers that each individually accounted for greater than 10% of the Company’s annual revenues. For the years ended December 31, 2022 and 2021, no sales were made to any one customer that represented in excess of 10% of the Company’s total revenues.
Geographic Information
As of December 31, 2022 and 2021, substantially all of the Company’s assets were located in the United States and all of the Company’s revenues were earned in the United States.
Disaggregated Revenues
The Company disaggregates revenues into categories that depict how the nature, amount, timing and uncertainty of the revenues and cashflows are affected by economic factors. For the years ended December 31, 2022 and 2021, the Company disaggregated its revenues as follows:
 
 
  
Year Ended December 31,
 
 
  
2022
 
  
2021
 
Revenue
  
  
iAnthus branded products
  
$
86,626
 
  
$
117,617
 
Third party branded products
  
 
66,959
 
  
 
64,267
 
Wholesale/bulk/other products
  
 
9,628
 
  
 
21,134
 
  
 
 
 
  
 
 
 
Total
  
$
163,213
 
  
$
203,018