| SEGMENT INFORMATION |
SEGMENT INFORMATIONThe Company operates in two distinct business segments: (i) a consumer products segment in developing, manufacturing, marketing and selling hemp extracts and other proven science-backed, natural ingredients and products to a range of market sectors; and (ii) 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 nine months ended September 30, 2022 and 2021 (in thousands):
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Consumer Products
Segment |
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Specialty Pharmaceutical Segment |
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Consolidated Totals |
| Three months ended September 30, 2022: |
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| Product sales, net |
$ |
3,751 |
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$ |
— |
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$ |
3,751 |
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| Gross profit |
$ |
1,562 |
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$ |
— |
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$ |
1,562 |
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| Research and development expense |
44 |
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— |
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|
44 |
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| Selling, general and administrative expense |
2,409 |
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|
1 |
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2,410 |
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| Operating loss |
$ |
(891) |
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|
$ |
(1) |
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$ |
(892) |
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| Three months ended September 30, 2021: |
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| Product sales, net |
$ |
5,107 |
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$ |
— |
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$ |
5,107 |
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| Gross profit |
$ |
2,358 |
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$ |
— |
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$ |
2,358 |
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| Research and development expense |
126 |
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|
284 |
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|
410 |
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| Selling, general and administrative expense |
4,918 |
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10 |
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4,928 |
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| Operating loss |
$ |
(2,686) |
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$ |
(294) |
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$ |
(2,980) |
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Consumer Products
Segment |
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Specialty Pharmaceutical Segment |
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Consolidated Totals |
| Nine months ended September 30, 2022: |
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| Product sales, net |
$ |
12,336 |
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$ |
— |
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$ |
12,336 |
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| Gross profit |
$ |
3,988 |
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$ |
— |
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$ |
3,988 |
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| Research and development expense |
246 |
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|
21 |
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|
267 |
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| Selling, general and administrative expense |
8,401 |
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|
42 |
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|
8,443 |
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| Operating loss |
$ |
(4,659) |
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$ |
(63) |
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$ |
(4,722) |
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| Nine months ended September 30, 2021: |
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| Product sales, net |
$ |
15,079 |
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$ |
— |
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$ |
15,079 |
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| Gross profit |
$ |
7,006 |
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$ |
— |
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$ |
7,006 |
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| Research and development expense |
380 |
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|
441 |
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|
821 |
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| Selling, general and administrative expense |
15,732 |
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|
56 |
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$ |
15,788 |
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| Operating loss |
$ |
(9,106) |
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$ |
(497) |
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$ |
(9,603) |
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