v3.22.1
Segment Reporting
 12 Months Ended
Dec. 31, 2021
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.
Following the completion of the KushCo merger in late August 2021, we reassessed our operating segments based on our new organizational structure. Based on this assessment, we determined we had two operating segments as of December 31, 2021, which are the same as our reportable segments: (1) Consumer Goods, which largely comprises Greenlane's legacy operations
across the United States, Canada, and Europe, and (2) Industrial Goods, which largely comprises KushCo's legacy operations. These changes in operating segments align with how we manage our business as of the fourth quarter of 2021. The accounting policies of the reportable segments are the same as those described in "Note 2 - Summary of Significant Accounting Policies." The segment disclosures below have been retrospectively restated to reflect the change in segments.
The Consumer Goods segment focuses on serving consumers across wholesale, retail and e-commerce operations—through both our proprietary Greenlane Brands, including Eyce, DaVinci, VIBES, Marley Natural, Keith Haring, and Higher Standards, as well as lifestyle products and accessories from leading brands, like PAX, Storz and Bickel, Grenco Science, 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 Greenlane Brand Pollen Gear and vaporization solutions offering which includes 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 years ended December 31, 2021 and 2020. There were no material intersegment sales during the years ended December 31, 2021 and 2020.
For the year ended December 31, 2021 For the year ended December 31, 2020
(in thousands) Consumer Goods Industrial Goods Total Consumer Goods Industrial Goods Total
Net sales $ 110,105  $ 55,955  $ 166,060  $ 122,186  $ 16,118  $ 138,304 
Cost of sales 92,804  45,577  138,381  101,981  13,558  115,539 
Gross profit $ 17,301  $ 10,378  $ 27,679  $ 20,205  $ 2,560  $ 22,765 
The following table sets forth specific asset categories which are reviewed by our CODM in the evaluation of operating segments:
As of December 31, 2021 As of December 31, 2020
(in thousands) Consumer Goods Industrial Goods Total Consumer Goods Industrial Goods Total
Accounts receivable, net $ 3,746  $ 10,944  $ 14,690  $ 5,951  $ 379  $ 6,330 
Inventories, net $ 32,142  $ 34,840  $ 66,982  $ 29,624  $ 6,440  $ 36,064 
Vendor deposits $ 9,675  $ 8,800  $ 18,475  $ 11,271  $ 18  $ 11,289 
The following table sets forth our net sales by major product category:
For the year ended December 31,
(in thousands) 2021 2020
Industrial Vape Products $ 27,845  $ — 
Packaging, Paper & Supplies 25,897  16,118 
Other Industrial Products 2,213  — 
Consumer Products - Greenlane Brands 34,966  29,939 
Consumer Products - 3rd Party Brands 75,139  92,247 
Total net sales $ 166,060  $ 138,304 
The following table sets forth net sales disaggregated by geography:
For the year ended December 31,
(in thousands) 2021 2020
United States $ 140,559  $ 109,660 
Canada 12,516  15,094 
Europe 11,133  10,833 
Other 1,852  2,717 
Total net sales $ 166,060  $ 138,304 
The following table sets forth our long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets:
As of December 31,
(in thousands) 2021 2020
United States $ 29,186  $ 14,308 
Canada 122  248 
Europe 671  750 
Total long-lived assets $ 29,979  $ 15,306 
See "Note 8—Supplemental Financial Statement Information" for goodwill by reportable segment.