Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.21.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2021
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 three months ended March 31, 2021 and 2020 (in thousands):
Consumer Products
Segment		 Specialty Pharmaceutical Segment Consolidated Totals
Three months ended March 31, 2021:
Product sales, net $ 4,844  $ —  $ 4,844 
Gross profit $ 2,358  $ —  $ 2,358 
Research and development expense 128  58  186 
Selling, general and administrative expense 5,270  15  5,285 
Operating loss $ (3,040) $ (73) $ (3,113)
Three months ended March 31, 2020:
Product sales, net $ 8,270  $ —  $ 8,270 
Gross profit $ 4,008  $ —  $ 4,008 
Research and development expense 305  1,204  1,509 
Selling, general and administrative expense 7,810  9  7,819 
Operating loss $ (4,107) $ (1,213) $ (5,320)
The Company's specialty and pharmaceutical segment includes goodwill of $2.8 million and intangible assets of $3.7 million as of March 31, 2021 and December 31, 2020. All other assets are included in the consumer products segment as of March 31, 2021 and December 31, 2020. The majority of the Company's sales are to U.S. based customers.