v3.25.1
SEGMENTS
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENTS
13. SEGMENTS
The Company has two operating segments, each its own reportable segment, based on its major lines of business: the Cultivation and Gardening segment, composed of the Company's hydroponic and organic gardening business; and the Storage Solutions segment, composed of the Company's benching, racking, and storage solutions business.
In addition to sales by operating segment, which represent the Company's principal lines of business, the chief operating decision maker ("CODM") evaluates the Company's operations by regularly reviewing sales by major product line, including proprietary brands, non-proprietary brands, and commercial fixtures, and by product type, including consumable and durable products. Profit measures are evaluated for each reportable segment based on income from operations with identifiable expenses allocated to each reporting unit from which the expense line item was derived.
The CODM compares actual results to prior year and current year budgeted income statements to identify areas for improvement and make capital allocation decisions. The CODM uses gross profit measures to evaluate pricing decisions and product mix, also reviewing proprietary brand versus non-proprietary brand sales to assess the Company’s progress with key performance initiatives. The Company's CODM is the chief executive officer.
Disaggregated revenue by segment is presented in the following tables:

Three Months Ended March 31,
Net sales20252024
Cultivation and Gardening
Proprietary brand sales$9,883 $9,726 
Non-proprietary brand sales21,028 33,382 
Total Cultivation and Gardening30,911 43,108 
Storage Solutions
Commercial fixture sales4,792 4,780 
Total Storage Solutions4,792 4,780 
Total$35,703 $47,888 

Three Months Ended March 31,
Net sales20252024
Cultivation and Gardening
Consumables$23,055 $30,181 
Durables7,856 12,927 
Total Cultivation and Gardening30,911 43,108 
Storage Solutions
Durables4,792 4,780 
Total Storage Solutions4,792 4,780 
Total$35,703 $47,888 
Selected information by segment is presented in the following tables for the three months ended:

March 31, 2025
Cultivation & GardeningStorage SolutionsCorporateTotal
Net sales$30,911 $4,792 $— $35,703 
Cost of sales23,007 2,989 — 25,996 
Gross profit7,904 1,803 — 9,707 
Operating expenses
Store operations and other operational expenses:
Employee costs2,661 747 — 3,408 
Facilities2,756 394 — 3,150 
External service providers95 14 — 109 
Other segment items (1)
1,857 268 — 2,125 
Total store operations and other operational expenses7,369 1,423 — 8,792 
Other operating expenses
Selling, general, and administrative— — 7,112 7,112 
Estimated credit losses— — 92 92 
Depreciation and amortization— — 3,585 3,585 
Total operating expenses7,369 1,423 10,789 19,581 
Income (loss) from operations535 380 (10,789)(9,874)
Other income— — 497 497 
Net income (loss) before taxes$535 $380 $(10,292)$(9,377)
(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.

March 31, 2024
Cultivation & GardeningStorage SolutionsCorporateTotal
Net sales$43,108 $4,780 $— $47,888 
Cost of sales32,783 2,741 — 35,524 
Gross profit10,325 2,039 — 12,364 
Operating expenses
Store operations and other operational expenses:
Employee costs3,654 771 — 4,425 
Facilities3,480 358 — 3,838 
External service providers529 11 — 540 
Other segment items (1)
1,598 233 — 1,831 
Total store operations and other operational expenses9,261 1,373 — 10,634 
Other operating expenses
Selling, general, and administrative— — 7,908 7,908 
Estimated credit recoveries— — (488)(488)
Depreciation and amortization— — 3,742 3,742 
Total operating expenses9,261 1,373 11,162 21,796 
Income (loss) from operations1,064 666 (11,162)(9,432)
Other income— — 593 593 
Net income (loss) before taxes$1,064 $666 $(10,569)$(8,839)
(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.


The Company does not evaluate segments by assets or capital expenditures as it is not practical and does not inform any of its decision making processes. The CODM neither reviews nor requests this information.