Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

Note 8 - Segment Information

 

During the three months ended March 31, 2026, the Company reassessed its reportable segments in accordance with ASC 280, Segment Reporting. Previously, the Company reported its operations under two reportable segments based on geographic regions: Eastern and Western. The Eastern Region included 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. Following a review of the Company's operating performance, growth profile, and capital allocation strategy, management determined that the quantitative thresholds under ASC 280-10-50-12 were no longer met under the prior segmentation, and that disaggregating operations based on market maturity and growth profile better reflects how the Chief Operating Decision Maker ("CODM") evaluates performance and allocates resources.

 

Effective January 1, 2026, the Company changed its reportable segments to Established and Emerging, defined as follows:

 

The Established region reflects matured markets with limited growth opportunities and a lower allocation of capital investment in the short-term. This region includes operations in Arizona, Massachusetts, and Florida. The Emerging region reflects new markets with strong growth opportunities and/or those receiving higher capital investments. This region includes operations in New Jersey, Maryland, New York, Illinois, and Pennsylvania. While the change in presentation reflects a reclassification of operating units into new segments, there were no changes to the underlying measurement or allocation of revenues, expenses, or assets. Prior periods are now conformed to the current period presentation. While the CODM continues to review the operating performance (i.e. EBITDA) at a state-level, the revised reportable regions better segments how capital allocation and growth opportunities are identified and monitored.

 

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.

The table below presents results by segment for the three months ended March 31, 2026 and 2025:

Reportable Segments

 

Three Months Ended March 31,

 

2026

 

2025

Revenues, net of discounts

 

 

 

 

 

Established Region

$

14,987

 

$

20,609

Emerging Region

 

18,523

 

 

17,512

Total

$

33,510

 

$

38,121

Gross profit

 

 

 

 

 

Established Region

$

7,509

 

$

11,317

Emerging Region

 

8,412

 

 

7,561

Total

$

15,921

 

$

18,878

Operating expenses:

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

Established Region

$

5,896

 

$

7,184

Emerging Region

 

4,133

 

 

4,467

Other

 

4,291

 

 

5,167

Total

$

14,320

 

$

16,818

Depreciation and amortization

 

 

 

 

 

Established Region

$

2,517

 

$

2,765

Emerging Region

 

1,480

 

 

1,342

Other

 

112

 

 

112

Total

$

4,109

 

$

4,219

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

 

 

 

 

 

Established Region

$

50

 

$

(59)

Emerging Region

 

(267)

 

 

(90)

Total

$

(217)

 

$

(149)

Income (loss) from operations

 

 

 

 

 

Established Region

$

(954)

 

$

1,427

Emerging Region

 

3,066

 

 

1,842

Other

 

(4,403)

 

 

(5,279)

Total

$

(2,291)

 

$

(2,010)

Other income (expenses), net

 

 

 

 

 

Established Region

$

118

 

$

31,434

Emerging Region

 

(431)

 

 

1,234

Other

 

(4,710)

 

 

(21,499)

Total

$

(5,023)

 

$

11,169

Income tax (benefit) expense

 

 

 

 

 

Established Region

$

2,056

 

$

1,418

Emerging Region

 

338

 

 

384

Other

 

4,601

 

 

2,207

Total

$

6,995

 

$

4,009

Net income (loss)

 

 

 

 

 

Established Region

$

(2,892)

 

$

31,443

Emerging Region

 

2,297

 

 

2,692

Other

 

(13,714)

 

 

(28,985)

Total

$

(14,309)

 

$

5,150

 

Supplemental segment disclosures:

 

 

 

 

 

 

Three Months Ended March 31,

 

2026

 

2025

Purchase of property, plant and equipment

 

 

 

 

 

Established Region

$

1,383

 

$

1,294

Emerging Region

 

2,005

 

 

3,232

Other

 

4

 

 

250

Total

$

3,392

 

$

4,776

Purchase of other intangible assets

 

 

 

 

 

Established Region

$

4

 

$

—

Other

 

43

 

 

126

Total

$

47

 

$

126

 

 

As of March 31,

 

As of December 31,

 

 

2026

 

 

2025

Assets

 

 

 

 

 

Established Region

$

160,526

 

$

160,437

Emerging Region

 

80,749

 

 

77,950

Other

 

14,563

 

 

17,599

Total

$

255,838

 

$

255,986

Major Customers

Major customers are defined as customers that each individually account for greater than 10% of the Company’s annual revenues. For the three months ended March 31, 2026 and 2025, no sales were made to any one customer that represented in excess of 10% of the Company’s total revenues.

Geographic Information

As of March 31, 2026 and 2025, 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 three months ended March 31, 2026 and 2025, the Company disaggregated its revenues as follows:

 

 

Three Months Ended March 31,

 

2026

 

2025

Revenues, net of discounts

 

 

 

 

 

iAnthus branded products

$

13,279

 

$

17,514

Third party branded products

 

12,253

 

 

15,792

Wholesale/bulk/other products

 

7,978

 

 

4,815

Total

$

33,510

 

$

38,121