Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.21.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2021 and 2020 (in thousands):
Consumer Products
Segment		 Specialty Pharmaceutical Segment Consolidated Totals
Three months ended June 30, 2021:
Product sales, net $ 5,128  $ —  $ 5,128 
Gross profit $ 2,290  $ —  $ 2,290 
Research and development expense 126  99  225 
Selling, general and administrative expense 5,565  10  5,575 
Operating loss $ (3,401) $ (109) $ (3,510)
Three months ended June 30, 2020:
Product sales, net $ 5,396  $ —  $ 5,396 
Gross profit $ 2,322  $ —  $ 2,322 
Research and development expense 152  594  746 
Selling, general and administrative expense 6,180  53  6,233 
Operating loss $ (4,010) $ (647) $ (4,657)

Consumer Products
Segment		 Specialty Pharmaceutical Segment Consolidated Totals
Six months ended June 30, 2021:
Product sales, net $ 9,972  $ —  $ 9,972 
Gross profit 4,648  —  4,648 
Research and development expense 254  157  411 
Selling, general and administrative expense 10,835  25  10,860 
Operating loss $ (6,441) $ (182) $ (6,623)
Six months ended June 30, 2020:
Product sales, net $ 13,666  $ —  $ 13,666 
Gross profit 6,330  —  $ 6,330 
Research and development expense 457  1,798  2,255 
Selling, general and administrative expense 13,990  62  $ 14,052 
Operating loss $ (8,117) $ (1,860) $ (9,977)
The Company's specialty and pharmaceutical segment includes goodwill of $2.8 million and intangible assets of $3.7 million as of June 30, 2021 and December 31, 2020. All other assets are included in the consumer products segment as of June 30, 2021 and December 31, 2020. The majority of the Company's sales are to U.S. based customers.