v3.25.2
OPERATING SEGMENT
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
OPERATING SEGMENT OPERATING SEGMENT
Segment information
The Company has determined that it operates in a single operating and reportable segment, which is the production and sale of hemp-based CBD wellness products, which makes up substantially all of the revenue at this time. This is consistent with how the chief operating decision maker (the "CODM") allocates resources and assesses performance. The Company’s CODM is the executive operations committee that includes the chief executive officer, the chief financial officer, the chief operations officer and the chief people officer. The majority of Company’s products have similar characteristics due to the same raw material ingredient (CBD and derivatives), similar nature of cultivation process, the type of customer and the regulatory nature of the industry.
The CODM assesses performance for this segment and decides how to allocate resources based on pre-tax net income/(loss) that is reported on the consolidated statement of operations. The measure of segment assets is reported on the consolidated balance sheets as total
assets. For the three months ended June 30, 2025 and 2024, the segment's revenues and pre-tax net loss were $12,806 and $12,289; and $6,290 and $11,011, respectively. Additionally, for the six months ended June 30, 2025 and 2024, the segment's revenues and pre-tax net loss were $25,068 and $24,413; and $12,502 and $20,629, respectively. There are no differences between segment revenues, pre-tax net loss and the Company's consolidated revenues and pre-tax net loss.
General Information
Factors used to Identify Reportable Segments: The Company operates as a single reportable segment, focusing primarily on the production and sale of hemp-based CBD wellness products.
Products and Services: The Company's revenue is primarily derived from the production and sale of hemp-based CBD wellness products.
Chief Operating Decision Maker (CODM): The Company's Chief Executive Officer, Chief Financial Officer, Chief Operations Officer, Chief Revenue Officer and Chief People Officer.
Measure of Segment Profit or Loss and Total Assets: The CODM evaluates performance and allocates resources based on pre-tax net income/(loss), as presented in the accompanying financial statements. The measure of segment assets is reported on the balance sheet as total consolidated assets.
Significant Segment Expenses
The following significant expenses are regularly reviewed by the CODM for the three months ended June 30, 2025 and 2024 : Cost of goods sold $6,816 and $9,707, respectively; Selling, general, and administrative expenses $10,062 and $14,727, respectively; Change in fair value of financial instruments $1,543 and $1,140, respectively; and Depreciation and Amortization $512 and $2,489, respectively.
The CODM reviewed the following for the six months ended June 30, 2025 and 2024 : Cost of goods sold $12,848 and $14,920, respectively; Selling, general, and administrative expenses $21,640 and $30,007 respectively; Change in fair value of financial instruments $1,669 and $720, respectively; and Depreciation and Amortization $2,961 and $4,982, respectively.
Reconciliation to Consolidated Financial Statements
As the Company operates as a single reportable segment, the amounts presented above align directly with the consolidated totals in the financial statements.

Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Product Revenue
$12,731$12,215$24,918$24,028
Service Revenue7574150385
Total Revenue$12,806$12,289$25,068$24,413
Cost of goods sold
6,8169,70712,84814,920
Gross profit
$5,990$2,582$12,220$9,493
Gross profit %
46.8 %21.0 %48.7 %38.9 %
Selling, general, and administrative expenses
10,06214,72721,64030,007
Operating loss$(4,072)$(12,145)$(9,420)$(20,514)
Change in fair value of financial instruments(1,543)1,140(1,669)(720)
Other income (expense), net
(675)(6)(1,413)605
Loss before provision for income taxes
$(6,290)$(11,011)$(12,502)$(20,629)
Other segment information
Depreciation/Amortization2,961 4,982 
Total assets87,976 129,794 
Long-term liabilities73,047 93,966