Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.21.1
Segment Reporting
 12 Months Ended
Dec. 31, 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 CODMs 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 December 31, 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, unrealized gains on equity securities, and other corporate overhead items. We sell similar products in each of our segments. Assets related to our corporate headquarters as well as our cash proceeds from the IPO are not allocated to any of our reportable segments. We sell similar individuals products and services in each of our segments.
The table below provides information on revenues from external customers, intersegment revenues, segment operating income (loss), and depreciation and amortization by reportable segment for the years ended December 31, 2020 and 2019. We eliminate intersegment revenues in consolidation.
For the Year Ended December 31,
(in thousands) 2020 2019
Revenue from external customers:
United States $ 112,543  $ 160,243 
Canada 15,457  22,120 
Europe 10,304  2,643 
$ 138,304  $ 185,006 
Intercompany revenues:
United States $ 11,945  $ 5,624 
Canada 74  143 
Europe 2,497  284 
$ 14,516  $ 6,051 
Income (loss) before income taxes:
United States $ (32,525) $ (10,417)
Canada 743  74 
Europe (3,361) (278)
Corporate and other (12,367) (18,268)
$ (47,510) $ (28,889)
Depreciation and amortization:
United States $ 1,758  $ 2,117 
Canada 32  43 
Europe 233  65 
Corporate and other 497  480 
$ 2,520  $ 2,705 
The table below provides information on total goodwill and intangibles and total assets by reportable segment as of December 31, 2020 and 2019.
As of December 31,
(in thousands) 2020 2019
Total goodwill and intangibles:
United States $ 4,258  $ 13,625 
Canada —  — 
Europe 4,685  4,328 
Corporate and other 282  330 
$ 9,225  $ 18,283 
Total assets:
United States $ 64,037  $ 77,034 
Canada 8,341  10,768 
Europe 15,543  8,809 
Corporate and other 34,729  56,591 
$ 122,650  $ 153,202 
The table below provides information on our revenue by product type:
For the Year Ended December 31,
(in thousands) 2020 2019
Revenues:
Vaporizers and components $ 93,567  $ 144,192 
Customized products and packaging 10,520  12,107 
Functional glass 5,162  6,040 
Tools and appliances 6,838  3,640 
Hemp-derived CBD products 2,455  3,364 
Closed system 3,697  4,094 
Grinders 5,769  3,351 
Papers and wraps 7,219  4,086 
Other 3,077  4,132 
$ 138,304  $ 185,006 
The tables below provides information on our revenue and long-lived assets by geographical area. Our long-lived assets are primarily comprised of property and equipment, net and operating lease ROU assets.
For the Year Ended December 31,
(in thousands) 2020 2019
Revenues:
United States $ 109,660  $ 155,002 
Canada 15,094  22,840 
Europe 10,833  3,628 
Other 2,717  3,536 
$ 138,304  $ 185,006 
As of December 31,
(in thousands) 2020 2019
Long-lived assets:
United States $ 14,308  $ 17,162 
Canada 248  519 
Europe 750  179 
$ 15,306  $ 17,860