Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.24.1
Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information

Note 11 - Segment Information

Management, including the Company’s Chief Executive Officer, who is 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 Company consolidated results from its Vermont business until March 8, 2023 when it was sold and subsequently deconsolidated. 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,

 

 

2023

 

 

2022

 

Revenues, net of discounts

 

 

 

 

 

 

 

Eastern Region

$

 

105,922

 

 

$

 

96,478

 

Western Region

 

 

53,088

 

 

 

 

65,644

 

Other(1)

 

 

227

 

 

 

 

1,091

 

Total

$

 

159,237

 

 

$

 

163,213

 

Gross profit (loss)

 

 

 

 

 

 

 

Eastern Region

$

 

43,839

 

 

$

 

52,108

 

Western Region

 

 

19,609

 

 

 

 

21,910

 

Other

 

 

(279

)

 

 

 

414

 

Total

$

 

63,169

 

 

$

 

74,432

 

Depreciation and amortization

 

 

 

 

 

 

 

Eastern Region

$

 

17,306

 

 

$

 

16,743

 

Western Region

 

 

7,339

 

 

 

 

11,820

 

Other

 

 

498

 

 

 

 

532

 

Total

$

 

25,143

 

 

$

 

29,095

 

Write-downs (recoveries) and other charges, net

 

 

 

 

 

 

 

Eastern Region

$

 

42

 

 

$

 

(620

)

Western Region

 

 

(4

)

 

 

 

—

 

Other

 

 

372

 

 

 

 

(226

)

Total

$

 

410

 

 

$

 

(846

)

Impairment loss

 

 

 

 

 

 

 

Eastern Region

$

 

—

 

 

$

 

695

 

Western Region

 

 

—

 

 

 

 

29,856

 

Other

 

 

—

 

 

 

 

—

 

Total

$

 

—

 

 

$

 

30,551

 

Net loss

 

 

 

 

 

 

 

Eastern Region

$

 

(29,332

)

 

$

 

(4,981

)

Western Region

 

 

(3,200

)

 

 

 

(38,019

)

Other

 

 

(44,089

)

 

 

 

(406,391

)

Total

$

 

(76,621

)

 

$

 

(449,391

)

Purchase of property, plant and equipment

 

 

 

 

 

 

 

Eastern Region

$

 

3,373

 

 

$

 

5,954

 

Western Region

 

 

192

 

 

 

 

982

 

Other

 

 

7

 

 

 

 

3

 

Total

$

 

3,572

 

 

$

 

6,939

 

Purchase of other intangible assets

 

 

 

 

 

 

 

Eastern Region

$

 

2,489

 

 

$

 

—

 

Western Region

 

 

—

 

 

 

 

—

 

Other

 

 

15

 

 

 

 

113

 

Total

$

 

2,504

 

 

$

 

113

 

 

(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. The Company has deconsolidated results from its Vermont and CBD operations as of March 8, 2023 and May 8, 2023, respectively.

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2023

 

 

 

2022

 

Assets

 

 

 

 

 

 

 

Eastern Region

$

 

215,743

 

 

$

 

226,458

 

Western Region

 

 

51,148

 

 

 

 

60,896

 

Other

 

 

10,516

 

 

 

 

16,113

 

Total

$

 

277,407

 

 

$

 

303,467

 

 

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, 2023 and 2022, 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, 2023 and 2022, 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 cash flows are affected by economic factors. For the years ended December 31, 2023 and 2022, the Company disaggregated its revenues as follows:

 

 

Year Ended December 31,

 

 

2023

 

 

2022

 

Revenues, net of discounts

 

 

 

 

 

 

 

iAnthus branded products

$

 

87,545

 

 

$

 

86,626

 

Third party branded products

 

 

61,108

 

 

 

 

66,959

 

Wholesale/bulk/other products

 

 

10,584

 

 

 

 

9,628

 

Total

$

 

159,237

 

 

$

 

163,213