Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.2
Segment Reporting
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
We merchandise vaporizers and other products in the United States, Canada and Europe and we distribute to retailers through our wholesale operations and to consumers through e-commerce activities. We define our segments as those operations whose results our Chief Operating Decision Makers ("CODMs"), a committee comprised of our Chief Executive Officer ("CEO") and our Chief Financial Officer ("CFO"), regularly review 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.
The reportable segments identified are our business activities for which discrete financial information is available and for which operating results are regularly reviewed by our CODMs. As of September 30, 2020, we have three reportable segments: (1) United States, (2) Canada and (3) Europe. The United States operating segment is comprised of our United States operations, the Canadian operating segment is comprised of our Canadian operations, and the European operating segment is comprised of our European operations, currently based in the Netherlands. Corporate and other activities which are not allocated to our reportable segments consist primarily of equity-based compensation expenses and other corporate overhead items. We sell similar products in each of our segments.
The table below provides information on revenues from external customers, intersegment revenues, and income (loss) before income taxes for our reportable segments for the three and nine months ended September 30, 2020 and 2019. We eliminate intersegment revenues in consolidation.
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2020 2019 2020 2019
Revenue from external customers:
United States $ 28,984  $ 38,597  $ 82,482  $ 129,017 
Canada 4,447  6,289  12,362  18,753 
Europe 2,333  —  7,188  — 
Corporate and other —  —  —  — 
$ 35,764  $ 44,886  $ 102,032  $ 147,770 
Intercompany revenues:
United States $ 3,865  $ 1,392  $ 9,273  $ 2,910 
Canada 17  23  55  105 
Europe 561  —  1,653  — 
Corporate and other —  —  —  — 
$ 4,443  $ 1,415  $ 10,981  $ 3,015 
Income (loss) before income taxes:
United States $ (10,757) $ (2,716) $ (27,353) $ (4,967)
Canada 321  458  626  221 
Europe (3,187) —  (4,320) — 
Corporate and other 50  4,360  (5,650) (14,135)
$ (13,573) $ 2,102  $ (36,697) $ (18,881)