v3.25.2
SEGMENTS
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENTS
14. 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 June 30,Six Months Ended June 30,
Net sales2025202420252024
Cultivation and Gardening
Proprietary brand sales$10,503 $9,931 $20,386 $19,657 
Non-proprietary brand sales22,358 36,179 43,386 69,561 
Total Cultivation and Gardening32,861 46,110 63,772 89,218 
Storage Solutions
Commercial fixture sales8,102 7,426 12,894 12,206 
Total Storage Solutions8,102 7,426 12,894 12,206 
Total$40,963 $53,536 $76,666 $101,424 

Three Months Ended June 30,Six Months Ended June 30,
Net sales2025202420252024
Cultivation and Gardening
Consumables$25,627 $33,677 $48,682 $63,858 
Durables7,234 12,433 15,090 $25,360 
Total Cultivation and Gardening32,861 46,110 63,772 $89,218 
Storage Solutions
Durables8,102 7,426 12,894 $12,206 
Total Storage Solutions8,102 7,426 12,894 $12,206 
Total$40,963 $53,536 $76,666 $101,424 

Selected information by segment is presented in the following tables for the three and six months ended:
Three Months Ended June 30, 2025
Cultivation & GardeningStorage SolutionsCorporateTotal
Net sales$32,861 $8,102 $— $40,963 
Cost of sales24,696 4,673 — 29,369 
Gross profit8,165 3,429 — 11,594 
Operating expenses
Store operations and other operational expenses:
Employee costs2,480 692 — 3,172 
Facilities2,645 402 — 3,047 
External service providers247 2 — 249 
Other segment items (1)
1,220 179 — 1,399 
Total store operations and other operational expenses6,592 1,275 — 7,867 
Other operating expenses
Selling, general, and administrative— — 6,151 6,151 
Estimated credit losses— — 163 163 
Depreciation and amortization— — 2,687 2,687 
Total operating expenses6,592 1,275 9,001 16,868 
Income (loss) from operations1,573 2,154 (9,001)(5,274)
Other income— — 463 463 
Net income (loss) before income taxes
$1,573 $2,154 $(8,538)$(4,811)
(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.

Six Months Ended June 30, 2025
Cultivation & GardeningStorage SolutionsCorporateTotal
Net sales$63,772 $12,894 $— $76,666 
Cost of sales47,703 7,662 — 55,365 
Gross profit16,069 5,232 — 21,301 
Operating expenses
Store operations and other operational expenses:
Employee costs5,141 1,439 — 6,580 
Facilities5,401 796 — 6,197 
External service providers342 16 — 358 
Other segment items (1)
3,077 447 — 3,524 
Total store operations and other operational expenses13,961 2,698 — 16,659 
Other operating expenses
Selling, general, and administrative— — 13,263 13,263 
Estimated credit losses— — 255 255 
Depreciation and amortization— — 6,272 6,272 
Total operating expenses13,961 2,698 19,790 36,449 
Income (loss) from operations2,108 2,534 (19,790)(15,148)
Other income— — 960 960 
Net income (loss) before income taxes
$2,108 $2,534 $(18,830)$(14,188)
(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.
Three Months Ended June 30, 2024
Cultivation & GardeningStorage SolutionsCorporateTotal
Net sales$46,110 $7,426 $— $53,536 
Cost of sales35,174 3,941 — 39,115 
Gross profit10,936 3,485 — 14,421 
Operating expenses
Store operations and other operational expenses:
Employee costs3,598 755 — 4,353 
Facilities3,358 284 — 3,642 
External service providers301 16 — 317 
Other segment items (1)
1,670 228 — 1,898 
Total store operations and other operational expenses8,927 1,283 — 10,210 
Other operating expenses
Selling, general, and administrative— — 7,104 7,104 
Estimated credit losses— — 6 6 
Depreciation and amortization— — 3,615 3,615 
Total operating expenses8,927 1,283 10,725 20,935 
Income (loss) from operations2,009 2,202 (10,725)(6,514)
Other income— — 713 713 
Net income (loss) before income taxes
$2,009 $2,202 $(10,012)$(5,801)
(1) Other segment items for each reportable segment include travel expenses, transaction fees, and other miscellaneous expenses.

Six Months Ended June 30, 2024
Cultivation & GardeningStorage SolutionsCorporateTotal
Net sales$89,218 $12,206 $— $101,424 
Cost of sales67,957 6,682 — 74,639 
Gross profit21,261 5,524 — 26,785 
Operating expenses
Store operations and other operational expenses:
Employee costs7,252 1,526 — 8,778 
Facilities6,838 642 — 7,480 
External service providers830 27 — 857 
Other segment items (1)
3,268 461 — 3,729 
Total store operations and other operational expenses18,188 2,656 — 20,844 
Other operating expenses
Selling, general, and administrative— — 15,012 15,012 
Estimated credit recoveries— — (482)(482)
Depreciation and amortization— — 7,357 7,357 
Total operating expenses18,188 2,656 21,887 42,731 
Income (loss) from operations3,073 2,868 (21,887)(15,946)
Other income— — 1,306 1,306 
Net income (loss) before income taxes
$3,073 $2,868 $(20,581)$(14,640)
(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.