Annual report pursuant to Section 13 and 15(d)

SEGMENT INFORMATION

v3.20.4
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATIONThe Company operates in two distinct business segments: a consumer products segment in manufacturing, marketing and selling hemp-based CBD products to a range of market sectors; and a specialty pharmaceutical segment focused on developing and commercializing novel therapeutics utilizing CBD. The Company’s segments maintain separate financial information for which operating results are evaluated on a regular basis by the Company’s senior management in deciding how to allocate resources and in assessing performance. The Company evaluates its consumer products segment based on net product sales, gross profit and operating income or loss. The Company currently evaluates its specialty pharmaceutical segment based on the progress of its clinical development programs.
The following table presents information by reportable operating segment for the years ended December 31, 2020 and 2019 (in thousands):
Consumer Products
Segment		 Specialty Pharmaceutical Segment Consolidated Totals
Year ended December 31, 2020:      
Product sales, net $ 24,429  $ —  $ 24,429 
Gross profit $ 11,009  $ —  $ 11,009 
Research and development 678  2,265  2,943 
Selling, general and administrative 30,547  111  30,658 
Operating loss $ (20,216) $ (2,376) $ (22,592)
Year ended December 31, 2019:
Product sales, net $ 53,696  $ —  $ 53,696 
Gross profit $ 35,088  $ —  $ 35,088 
Research and development 2,106  3,771  5,877 
Selling, general and administrative 46,405  46  46,451 
Operating loss $ (13,423) $ (3,817) $ (17,240)
The Company's specialty pharmaceutical segment includes goodwill of $2.8 million as of December 31, 2020 and 2019. In addition, the Company's intangible assets of $3.7 million and $3.8 million as of December 31, 2020 and 2019, respectively, are included in the specialty pharmaceutical segment. All other assets are included in the consumer products segment as of December 31, 2020 and 2019. The majority of the Company's sales are to U.S. based customers.