Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.4
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
We define our segments as those operations whose results are regularly reviewed by our CODM to analyze performance and allocate resources. Therefore, segment information is prepared on the same basis that management reviews financial information for operational decision-making purposes. Our CODM is a committee comprised of our CEO and our CFO.
We determined we had two operating segments as of September 30, 2023, which are the same as our reportable segments: (1) Consumer Goods and (2) Industrial Goods. These operating segments align with how we manage our business as of the third quarter of 2023. The accounting policies of the reportable segments are the same as those described in "Note 2 - Summary of Significant Accounting Policies."
The Consumer Goods segment focuses on serving consumers across wholesale, retail and e-commerce operations—through both our proprietary Greenlane Brands, including Eyce, DaVinci, Groove, Marley Natural, Keith Haring and Higher Standards, as well as lifestyle products and accessories from leading brands, such as Storz and Bickel, PAX, and many more. The Consumer Goods segment forms a central part of our growth strategy, especially as it relates to scaling our own portfolio of higher-margin Greenlane Brands.

The Industrial Goods segment focuses on serving the premier brands, operators, and retailers through our wholesale operations by providing ancillary products essential to their growth, such as customizable packaging and supply products, which includes our vaporization solutions offering including CCELL branded products.

Our CODM allocates resources to, and assesses the performance of, our two operating segments based on the operating segments' net sales and gross profit. The following table sets forth information by reportable segment for the three and nine months ended September 30, 2023 and 2022, respectively. There were no material intersegment sales during the three and nine months ended September 30, 2023 and 2022, respectively.
For the three months ended
September 30, 2023		 For the three months ended
September 30, 2022
(in thousands) Consumer Goods Industrial Goods Total Consumer Goods Industrial Goods Total
Net sales $ 5,988  $ 5,812  $ 11,800  $ 8,565  $ 20,115  $ 28,680 
Cost of sales 4,197  4,474  8,671  7,937  15,774  23,711 
Gross profit $ 1,791  $ 1,338  $ 3,129  $ 628  $ 4,341  $ 4,969 
For the nine months ended
September 30, 2023		 For the nine months ended
September 30, 2022
(in thousands) Consumer Goods Industrial Goods Total Consumer Goods Industrial Goods Total
Net sales $ 19,823  $ 35,561  $ 55,384  $ 41,617  $ 73,513  $ 115,130 
Cost of sales 13,942  28,220  42,162  35,104  60,990  96,094 
Gross profit $ 5,881  $ 7,341  $ 13,222  $ 6,513  $ 12,523  $ 19,036 
The following table sets forth specific asset categories which are reviewed by our CODM in the evaluation of operating segments:
As of September 30, 2023 As of December 31, 2022
(in thousands) Consumer Goods Industrial Goods Total Consumer Goods Industrial Goods Total
Accounts receivable, net $ 1,129  $ 796  $ 1,925  $ 967  $ 5,501  $ 6,468 
Inventories, net $ 15,032  $ 7,606  $ 22,638  $ 19,259  $ 21,384  $ 40,643 
Vendor deposits $ 2,205  $ 1,146  $ 3,351  $ 3,269  $ 3,027  $ 6,296