Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.26.1
Segment Information
 12 Months Ended
Dec. 31, 2025
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, gross margins, and net income/(loss). For instance, the CODM uses both segment gross profit and segment profit/loss from operations to allocate resources (including labor or capital resources) to each of the geographical locations (entities) in the forecasts. An analysis of the gross profit from the regions enables decisions regarding marketing activities, additional investments or scale back of expansion plans, as well as implementation of cost management strategies.

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, Illinois, and Pennsylvania. The Western Region includes the Company’s operations in Arizona and results from the Nevada business through June 24, 2024 when it was sold and subsequently deconsolidated. 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,

 

 

2025

 

 

2024

 

Revenues, net of discounts

 

 

 

 

 

 

 

Eastern Region(1)

$

 

133,605

 

 

$

 

128,553

 

Western Region(2)

 

 

10,381

 

 

 

 

39,014

 

Total

$

 

143,986

 

 

$

 

167,567

 

Gross profit

 

 

 

 

 

 

 

Eastern Region

$

 

61,025

 

 

$

 

60,219

 

Western Region

 

 

4,672

 

 

 

 

14,895

 

Total

$

 

65,697

 

 

$

 

75,114

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

Eastern Region

$

 

39,531

 

 

$

 

34,555

 

Western Region

 

 

3,474

 

 

 

 

8,360

 

Other

 

 

17,881

 

 

 

 

19,267

 

Total

$

 

60,886

 

 

$

 

62,182

 

Depreciation and amortization

 

 

 

 

 

 

 

Eastern Region

$

 

13,995

 

 

$

 

15,186

 

Western Region

 

 

2,161

 

 

 

 

7,033

 

Other

 

 

1,059

 

 

 

 

462

 

Total

$

 

17,215

 

 

$

 

22,681

 

Write-downs, (recoveries) and other charges, net

 

 

 

 

 

 

 

Eastern Region

$

 

2,814

 

 

$

 

(1,985

)

Western Region

 

 

—

 

 

 

 

429

 

Other

 

 

199

 

 

 

 

320

 

Total

$

 

3,013

 

 

$

 

(1,236

)

Income (loss) from operations

 

 

 

 

 

 

 

Eastern Region

$

 

4,684

 

 

$

 

12,463

 

Western Region

 

 

(963

)

 

 

 

(927

)

Other

 

 

(19,139

)

 

 

 

(20,049

)

Total

$

 

(15,418

)

 

$

 

(8,513

)

Other income (expenses), net

 

 

 

 

 

 

 

Eastern Region

$

 

3,823

 

 

$

 

(868

)

Western Region

 

 

27,994

 

 

 

 

(3,307

)

Other

 

 

(39,565

)

 

 

 

(12,626

)

Total

$

 

(7,748

)

 

$

 

(16,801

)

Income tax (benefit) expense

 

 

 

 

 

 

 

Eastern Region

$

 

9,309

 

 

$

 

10,440

 

Western Region

 

 

2,251

 

 

 

 

8,513

 

Other

 

 

5,478

 

 

 

 

(36,631

)

Total

$

 

17,038

 

 

$

 

(17,678

)

Net income (loss)

 

 

 

 

 

 

 

Eastern Region

$

 

(1,878

)

 

$

 

1,157

 

Western Region

 

 

24,780

 

 

 

 

(12,749

)

Other

 

 

(63,105

)

 

 

 

3,956

 

Total

$

 

(40,203

)

 

$

 

(7,636

)

 

(1)
Eastern region includes revenue from the sale of our new Cheetah brand of products in Illinois and Pennsylvania.
(2)
Western region no longer includes Nevada operations as results were deconsolidated as of June 24, 2024.

Supplemental Segment Disclosures:

 

Year Ended December 31,

 

 

2025

 

 

2024

 

Purchase of property, plant and equipment

 

 

 

 

 

 

 

Eastern Region

$

 

25,288

 

 

$

 

5,232

 

Western Region

 

 

—

 

 

 

 

189

 

Other

 

 

377

 

 

 

 

98

 

Total

$

 

25,665

 

 

$

 

5,519

 

Purchase of other intangible assets

 

 

 

 

 

 

 

Eastern Region

$

 

—

 

 

$

 

20

 

Other

 

 

4,826

 

 

 

 

185

 

Total

$

 

4,826

 

 

$

 

205

 

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2025

 

 

 

2024

 

Assets

 

 

 

 

 

 

 

Eastern Region

$

 

225,124

 

 

$

 

212,007

 

Western Region

 

 

8,454

 

 

 

 

40,124

 

Other

 

 

22,408

 

 

 

 

18,912

 

Total

$

 

255,986

 

 

$

 

271,043

 

 

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, 2025 and 2024, 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, 2025 and 2024, 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, 2025 and 2024, the Company disaggregated its revenues as follows:

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

Revenues, net of discounts

 

 

 

 

 

 

 

iAnthus branded products

$

 

63,168

 

 

$

 

84,904

 

Third party branded products

 

 

55,128

 

 

 

 

64,506

 

Wholesale/bulk/other products

 

 

25,690

 

 

 

 

18,157

 

Total

$

 

143,986

 

 

$

 

167,567