Annual report pursuant to Section 13 and 15(d)

SEGMENT INFORMATION

v3.22.1
SEGMENT INFORMATION
 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):
Consumer Products
Segment		 Specialty Pharmaceutical Segment Totals
Year ended December 31, 2021:      
Product sales, net $ 20,048  $ —  $ 20,048 
Gross profit $ 8,616  $ —  $ 8,616 
Research and development 492  693  1,185 
Selling, general and administrative 20,783  5,094  25,877 
Operating loss $ (12,659) $ (5,787) $ (18,446)
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)
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.