| Reportable Segments and Revenue |
18. Reportable Segments and Revenue
The Company operates in two reportable segments: (i) cannabis segment (Santé Veritas Holdings, Inc. or “SVH”), Standard Farms PA, Baker, and JJ Blocker, and (ii) accessories (Jupiter). The cannabis segment includes production, cultivation, extraction and sale of cannabis products and accessories including the manufacturing and distribution of electronic, non-nicotine (i.e., cannabis) devices and systems. The accessories segment includes distribution of vapor cartridges and accessory products.
Information related to each segment is set out below. Other segment (income) expenses is primarily made up of income tax expense, insurance expense, and selling expense, as well as various other general and administrative expenses. Segment net loss is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries. The Company has elected not to disclose segment-level asset information, as the Company’s CEO, who is also its CODM, does not review such information to assess the performance of the segment and allocation resources.
The following tables present the operating results of the Company’s segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Total |
Revenue |
|
$ |
2,841 |
|
$ |
7,715 |
|
$ |
— |
|
$ |
10,556 |
Inter-segment revenue |
|
|
— |
|
|
(70) |
|
|
— |
|
|
(70) |
Net revenue |
|
$ |
2,841 |
|
$ |
7,645 |
|
$ |
— |
|
$ |
10,486 |
Cost of goods sold |
|
|
2,930 |
|
|
5,736 |
|
|
— |
|
|
8,666 |
Wages and benefits |
|
|
505 |
|
|
992 |
|
|
887 |
|
|
2,384 |
Professional fees |
|
|
42 |
|
|
274 |
|
|
587 |
|
|
903 |
Depreciation and amortization |
|
|
358 |
|
|
1,961 |
|
|
— |
|
|
2,319 |
Interest expense |
|
|
727 |
|
|
809 |
|
|
6,060 |
|
|
7,596 |
Other segment (income) expenses |
|
|
(1,280) |
|
|
1,421 |
|
|
(2,372) |
|
|
(2,231) |
Net loss from continuing operations |
|
|
(441) |
|
|
(3,548) |
|
|
(5,162) |
|
|
(9,151) |
Net loss from discontinued operations |
|
|
(2,911) |
|
|
— |
|
|
— |
|
|
(2,911) |
Net loss |
|
$ |
(3,352) |
|
$ |
(3,548) |
|
$ |
(5,162) |
|
$ |
(12,062) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Total |
Revenue |
|
$ |
3,306 |
|
$ |
16,310 |
|
$ |
— |
|
$ |
19,616 |
Inter-segment revenue |
|
|
— |
|
|
(637) |
|
|
— |
|
|
(637) |
Net revenue |
|
$ |
3,306 |
|
$ |
15,673 |
|
$ |
— |
|
$ |
18,979 |
Cost of goods sold |
|
|
2,479 |
|
|
12,914 |
|
|
— |
|
|
15,393 |
Wages and benefits |
|
|
359 |
|
|
1,308 |
|
|
1,502 |
|
|
3,169 |
Professional fees |
|
|
57 |
|
|
97 |
|
|
1,101 |
|
|
1,255 |
Depreciation and amortization |
|
|
262 |
|
|
3,212 |
|
|
— |
|
|
3,474 |
Impairment loss |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
Interest expense |
|
|
144 |
|
|
654 |
|
|
4,579 |
|
|
5,377 |
Other segment (income) expenses |
|
|
7,786 |
|
|
1,211 |
|
|
(2,141) |
|
|
6,856 |
Net loss from continuing operations |
|
|
(7,786) |
|
|
(3,723) |
|
|
(5,041) |
|
|
(16,550) |
Net loss from discontinued operations |
|
|
(19,397) |
|
|
— |
|
|
— |
|
|
(19,397) |
Net loss |
|
$ |
(27,183) |
|
$ |
(3,723) |
|
$ |
(5,041) |
|
$ |
(35,947) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Total |
Revenue |
|
$ |
5,642 |
|
$ |
22,001 |
|
$ |
— |
|
$ |
27,643 |
Inter-segment revenue |
|
|
— |
|
|
(226) |
|
|
— |
|
|
(226) |
Net revenue |
|
$ |
5,642 |
|
$ |
21,775 |
|
$ |
— |
|
$ |
27,417 |
Cost of goods sold |
|
|
6,250 |
|
|
16,327 |
|
|
— |
|
|
22,577 |
Wages and benefits |
|
|
941 |
|
|
1,971 |
|
|
1,925 |
|
|
4,837 |
Professional fees |
|
|
93 |
|
|
467 |
|
|
1,267 |
|
|
1,827 |
Depreciation and amortization |
|
|
676 |
|
|
3,923 |
|
|
— |
|
|
4,599 |
Interest expense |
|
|
1,150 |
|
|
1,715 |
|
|
10,833 |
|
|
13,698 |
Other segment (income) expenses |
|
|
(1,593) |
|
|
3,718 |
|
|
(3,833) |
|
|
(1,708) |
Net loss from continuing operations |
|
|
(1,875) |
|
|
(6,346) |
|
|
(10,192) |
|
|
(18,413) |
Net loss from discontinued operations |
|
|
(6,889) |
|
|
— |
|
|
— |
|
|
(6,889) |
Net loss |
|
$ |
(8,764) |
|
$ |
(6,346) |
|
$ |
(10,192) |
|
$ |
(25,302) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
|
Cannabis |
|
Accessories |
|
Corporate |
|
Total |
Revenue |
|
$ |
6,122 |
|
$ |
43,171 |
|
$ |
— |
|
$ |
49,293 |
Inter-segment revenue |
|
|
— |
|
|
(383) |
|
|
— |
|
|
(383) |
Net revenue |
|
$ |
6,122 |
|
$ |
42,788 |
|
$ |
— |
|
$ |
48,910 |
Cost of goods sold |
|
|
4,874 |
|
|
35,028 |
|
|
— |
|
|
39,902 |
Wages and benefits |
|
|
717 |
|
|
2,577 |
|
|
2,879 |
|
|
6,173 |
Professional fees |
|
|
123 |
|
|
330 |
|
|
2,108 |
|
|
2,561 |
Depreciation and amortization |
|
|
523 |
|
|
6,432 |
|
|
— |
|
|
6,955 |
Impairment loss |
|
|
5 |
|
|
— |
|
|
— |
|
|
5 |
Interest expense |
|
|
166 |
|
|
1,580 |
|
|
8,306 |
|
|
10,052 |
Other segment (income) expenses |
|
|
7,279 |
|
|
3,149 |
|
|
(3,957) |
|
|
6,471 |
Net loss from continuing operations |
|
|
(7,565) |
|
|
(6,308) |
|
|
(9,336) |
|
|
(23,209) |
Net loss from discontinued operations |
|
|
(22,389) |
|
|
— |
|
|
— |
|
|
(22,389) |
Net loss |
|
$ |
(29,954) |
|
$ |
(6,308) |
|
$ |
(9,336) |
|
$ |
(45,598) |
Geographic Areas
The following table presents financial information relating to geographic areas in which the Company operated for the three and six months ended June 30, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
9,890 |
|
$ |
550 |
|
$ |
46 |
|
$ |
10,486 |
Gross profit |
|
|
1,686 |
|
|
113 |
|
|
21 |
|
|
1,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
16,806 |
|
$ |
2,142 |
|
$ |
31 |
|
$ |
18,979 |
Gross profit |
|
|
3,081 |
|
|
484 |
|
|
21 |
|
|
3,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
25,718 |
|
$ |
1,568 |
|
$ |
131 |
|
$ |
27,417 |
Gross profit |
|
|
4,459 |
|
|
321 |
|
|
60 |
|
|
4,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
|
US |
|
Canada |
|
Other |
|
Total |
Revenue |
|
$ |
42,589 |
|
$ |
6,281 |
|
$ |
40 |
|
$ |
48,910 |
Gross profit |
|
|
7,380 |
|
|
1,607 |
|
|
21 |
|
|
9,008 |
|