|12 Months Ended|
Dec. 31, 2021
|Segment Reporting [Abstract]|
|SEGMENT INFORMATION||SEGMENT INFORMATION
The 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, 2021 and 2020 (in thousands):
The Company's specialty pharmaceutical segment includes intangible assets of $1.5 million and $3.7 million as of December 31, 2021 and 2020, respectively. In addition, the Company's goodwill of $2.8 million as of December 31, 2020 was included in the specialty pharmaceutical segment. The Company did not have any goodwill as of December 31, 2021. All other assets are included in the consumer products segment as of December 31, 2021 and 2020. The majority of the Company's sales are to U.S. based customers.
The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef