Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.2
Segment Reporting
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTINGWe 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 and 4 brick and mortar locations; with two in the
United States, one in Spain and one in the Netherlands. We define our segments as those operations whose results our Chief Operating Decision Makers ("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.
On August 31, 2021, we completed our acquisition of KushCo, see "Note 3 - Business Acquisitions" for additional details. The assignment of goodwill recognized from this business combination to reporting units has not yet been completed as of the date of these financial statements. We expect to make a determination relating to the application of the segment reporting disclosure requirements applicable to KushCo during the fourth quarter of 2021.
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, 2021, 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 and services 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, 2021 and 2020. We eliminate intersegment revenues in consolidation.
Three Months Ended September 30, Nine Months Ended
September 30,
(in thousands) 2021 2020 2021 2020
Revenue from external customers:
United States $ 37,501  $ 28,984  $ 96,862  $ 82,482 
Canada 982  4,447  4,955  12,362 
Europe 2,831  2,333  8,221  7,188 
Corporate and other —  —  —  — 
$ 41,314  $ 35,764  $ 110,038  $ 102,032 
Intercompany revenues:
United States $ 4,092  $ 3,865  $ 10,129  $ 9,273 
Canada —  17  16  55 
Europe 608  561  2,058  1,653 
Corporate and other —  —  —  — 
$ 4,700  $ 4,443  $ 12,204  $ 10,981 
Income (loss) before income taxes:
United States $ (18,969) $ (10,757) $ (25,378) $ (27,353)
Canada (94) 321  (730) 626 
Europe (2,186) (3,187) (2,679) (4,320)
Corporate and other (7,464) 50  (13,494) (5,650)
$ (28,712) $ (13,573) $ (42,280) $ (36,697)