The information included in this Form 8-K is presented for informational purposes only in connection with the change in segment presentation as described above and does not amend or restate the Company’s previously issued consolidated financial statements included in the Annual Report or Quarterly Report. The change in segment presentation has no impact on the Company’s historical consolidated balance sheets, statement of operations and comprehensive loss, statements of changes in shareholders' equity or statements of cash flows. This filing does not reflect any subsequent information or events occurring after the filing dates of the Original Reports, other than adjustments to retrospectively recast the Company's segment presentation. Therefore, this Current Report on Form 8-K should be read in conjunction with the Original Reports, as filed.
Operating Segment
The Company manages its operations through state-level operating segments, focused on the production and sale of cannabis products and regularly monitors for changes in facts and circumstances that may affect its determination of operating segments. The Company has three reportable segments consisting of New Jersey, Maryland, and Pennsylvania. Operations in other states did not meet the quantitative threshold and are presented within All other segments. The Chief Operating Decision Maker (“CODM”) was determined to be the Chief Executive Officer of the Company. The CODM regularly evaluates the performance of the three reportable segments using gross profit and gross profit margin as its closest measures to GAAP. The CODM monitors these metrics to assess the efficiency of the Company’s production and distribution processes, as well as the effectiveness of pricing strategies.
The following tables summarize financial information for the Company's reportable segments:
|
|
For the Year Ended December 31, 2025 |
|
|||||||||||||||||
|
|
New Jersey |
|
|
Maryland |
|
|
Pennsylvania |
|
|
All other segments |
|
|
Total |
|
|||||
|
|
(In thousands) |
|
|||||||||||||||||
Revenue, net |
|
$ |
101,466 |
|
|
$ |
74,574 |
|
|
$ |
64,593 |
|
|
$ |
19,925 |
|
|
$ |
260,558 |
|
Cost of sales (1) |
|
|
41,273 |
|
|
|
31,369 |
|
|
|
39,899 |
|
|
|
11,693 |
|
|
$ |
124,234 |
|
Gross Profit |
|
$ |
60,193 |
|
|
$ |
43,205 |
|
|
$ |
24,694 |
|
|
$ |
8,232 |
|
|
$ |
136,324 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94,303 |
|
||||
Interest and accretion expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,291 |
|
||||
Other expense (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
753 |
|
||||
Income from continuing operations before provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,977 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit margin (2) |
|
|
59.3 |
% |
|
|
57.9 |
% |
|
|
38.2 |
% |
|
|
41.3 |
% |
|
|
52.3 |
% |
|
|
For the Year Ended December 31, 2024 |
|
|||||||||||||||||
|
|
New Jersey |
|
|
Maryland |
|
|
Pennsylvania |
|
|
All other segments |
|
|
Total |
|
|||||
|
|
(In thousands) |
|
|||||||||||||||||
Revenue, net |
|
$ |
122,263 |
|
|
$ |
64,828 |
|
|
$ |
62,427 |
|
|
$ |
18,560 |
|
|
$ |
268,078 |
|
Cost of sales (1) |
|
|
44,351 |
|
|
|
35,444 |
|
|
|
42,540 |
|
|
|
9,876 |
|
|
$ |
132,211 |
|
Gross Profit |
|
$ |
77,912 |
|
|
$ |
29,384 |
|
|
$ |
19,887 |
|
|
$ |
8,684 |
|
|
$ |
135,867 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
96,946 |
|
||||
Interest and accretion expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,339 |
|
||||
Other expense (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
339 |
|
||||
Income from continuing operations before provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,243 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross profit margin (2) |
|
|
63.7 |
% |
|
|
45.3 |
% |
|
|
31.9 |
% |
|
|
46.8 |
% |
|
|
50.7 |
% |