Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.22.0.1
Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information
Note 10—Segment Information
Management, including the Company’s Interim Chief Executive Officer and Interim Chief Operating Officer who, together 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 Company no longer has a presence in New Mexico, as it divested of its investment in the state in October 2020. 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,
  
    
2021
     
2020
 
(Revised)
  
Revenues
                 
Eastern Region
    $ 128,979     $ 91,149  
Western Region
      72,424       57,613  
Other
(1)
      1,615       2,907  
    
 
 
     
 
 
  
Total
   
$
203,018
 
  
$
151,669
 
    
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
Gross profit
                 
Eastern Region
    $ 84,863     $ 57,549  
Western Region
      27,877       24,239  
Other
      (1,457 )     52  
    
 
 
     
 
 
  
Total
   
$
111,283
 
  
$
81,840
 
    
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
Depreciation and amortization
                 
Eastern Region
    $ 16,885     $ 14,346  
Western Region
      11,235       11,054  
Other
      807       789  
    
 
 
     
 
 
  
Total
   
$
28,927
 
  
$
26,189
 
    
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
Asset impairments and write-downs
                 
Eastern Region
    $ 221     $ 23,299  
Western Region
      —         180,283  
Other
      7,193       3,580  
    
 
 
     
 
 
  
Total
   
$
7,414
 
  
$
207,162
 
    
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
Net loss
                 
Eastern Region
    $ 9,128     $ (58,424 ) 
Western Region
      (2,792 )      (159,894 ) 
Other
      (82,584 )      (95,044 ) 
    
 
 
     
 
 
  
Total
   
$
(76,248
) 
  
$
(313,362
) 
    
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
Purchase of property, plant and equipment
                 
Eastern Region
    $ 17,384     $ 12,486  
Western Region
      2,024       780  
Other
      32       169  
    
 
 
     
 
 
  
Total
   
$
19,440
 
  
$
13,435
 
    
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
Purchase of intangibles
                 
Eastern Region
    $ 100     $ 760  
Western Region
      —         —    
Other
      859       61  
    
 
 
     
 
 
  
Total
   
$
 959    
$
 821  
    
 
 
     
 
 
  
(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,
 
 
  
2021
 
  
2020
(Revised)
 
Assets
      
Eastern Region
  
$
224,105
 
  
$
227,237
 
Western Region
  
 
106,485
 
  
 
109,039
 
Other
  
 
16,154
 
  
 
16,857
 
 
  
 
 
 
  
 
 
 
Total
  
$
346,744
 
  
$
353,133
 
 
  
 
 
 
  
 
 
 
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, 2021 and 2020,
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
,
2021
and
2020
, 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
,
2021
and
2020
, the Company disaggregated its revenues as follows:
 
    
Year Ended December 31,
  
    
2021
     
2020
  
Revenue
                  
iAnthus branded products
    $ 117,617      $ 83,688  
Third party branded products
      64,267        48,024  
Wholesale/bulk/other products
      21,134        19,957  
    
 
 
     
 
 
  
Total
   
$
203,018
     
$
151,669