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Segment Information | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information Segment reporting is prepared on the same basis that the Company’s chief operating decision makers (the “CODMs”) manage the business, make operating decisions and assess the Company’s performance. The Company determined that it has the following two reportable segments: United States and Rest of World. The United States operating segment consists of the manufacture and distribution of hemp-derived CBD infused products. The Rest of World operating segment is involved in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for the medical and adult-use markets. These two segments represent the geographic regions in which the Company operates and the different product offerings within each geographic region. The results of each segment are regularly reviewed by the CODMs to assess the performance of the segment and make decisions regarding the allocation of resources. The CODMs review operating income (loss) as the measure of segment profit or loss to evaluate performance of and allocate resources for its reportable segments. Operating income (loss) is defined as net revenue less cost of sales and operating expenses. Reporting by operating segments follows the same accounting policies as those used to prepare the consolidated financial statements. The operating segments are presented in accordance with the same criteria used for internal reporting prepared for the CODMs. Intersegment transactions are recorded at the stated values as agreed to by the segments. Segment data was as follows for the three months ended June 30, 2020:
| Three months ended June 30, 2020 |  |  |  |  |  |
| United States |  | Rest of World |  | Corporate |  | Total
Consolidated statements of net income (loss) and comprehensive income (loss) |  |  |  |  |  |  |
Net revenue |  |  |  |  |  |  |
Cannabis flower | $ | — |  |  | $ | 5,674 |  |  | $ | — |  |  | $ | 5,674 |
Cannabis extracts | 2,174 |  |  | 1,917 |  |  | — |  |  | 4,091 |
Other | — |  |  | 118 |  |  | — |  |  | 118 |
Net revenue | $ | 2,174 |  |  | $ | 7,709 |  |  | $ | — |  |  | $ | 9,883 |
Share of loss from investments in equity accounted investees | $ | — |  |  | $ | 794 |  |  | $ | — |  |  | $ | 794 |
Interest income | 8 |  |  | 3,811 |  |  | (2) |  |  | 3,817 |
Interest expense | — |  |  | (83) |  |  | — |  |  | (83) |
Interest income, net | $ | 8 |  |  | $ | 3,728 |  |  | $ | (2) |  |  | $ | 3,734 |
Impairment loss on goodwill and intangible assets | 40,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 40,000 |
Depreciation and amortization | 36 |  |  | 654 |  |  | (6) |  |  | 684 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |
Net income (loss) | (47,762) |  |  | (52,899) |  |  | (7,042) |  |  | (107,703) |
Segment data was as follows for the six months ended June 30, 2020:
| Six months ended June 30, 2020 |  |  |  |  |  |
| United States |  | Rest of World |  | Corporate |  | Total
Consolidated statements of net income (loss) and comprehensive income (loss) |  |  |  |  |  |  |
Net revenue |  |  |  |  |  |  |
Cannabis flower | $ | — |  |  | $ | 8,415 |  |  | $ | — |  |  | $ | 8,415 |
Cannabis extracts | 4,350 |  |  | 5,317 |  |  | — |  |  | 9,667 |
Other | — |  |  | 233 |  |  | — |  |  | 233 |
Net revenue | $ | 4,350 |  |  | $ | 13,965 |  |  | $ | — |  |  | $ | 18,315 |
Share of loss from investments in equity accounted investees | $ | — |  |  | $ | 1,966 |  |  | $ | — |  |  | $ | 1,966 |
Interest income | 13 |  |  | 11,562 |  |  | — |  |  | 11,575 |
Interest expense | — |  |  | (90) |  |  | — |  |  | (90) |
Interest income, net | $ | 13 |  |  | $ | 11,472 |  |  | $ | — |  |  | $ | 11,485 |
Impairment loss on goodwill and intangible assets | 40,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 40,000 |
Depreciation and amortization | 69 |  |  | 1,302 |  |  | — |  |  | 1,371 |
Income tax expense | — |  |  | — |  |  | — |  |  | — |
Net income (loss) | (57,567) |  |  | 39,257 |  |  | (13,712) |  |  | (32,022) |
Consolidated balance sheets |  |  |  |  |  |  |
Total assets | $ | 250,470 |  |  | $ | 348,569 |  |  | $ | 1,311,248 |  |  | $ | 1,910,287 |
Investments in equity accounted investees | — |  |  | 933 |  |  | — |  |  | 933 |
Goodwill | 178,414 |  |  | 1,322 |  |  | — |  |  | 179,736 |
Purchase of property, plant and equipment, net | 219 |  |  | 13,125 |  |  | — |  |  | 13,344 |
Sources of net revenue for the three and six months ended June 30, 2020 and 2019 were as follows:
| Three months ended June 30, |  |  |  | Six months ended June 30, |  |  |  |  |  |
| 2020 |  | 2019 |  | 2020 |  | 2019 |  |  |  |
Cannabis flower | 5,674 |  |  | 6,096 |  |  | $ | 8,415 |  |  | $ | 7,921 |  |  |  |  |
Cannabis extracts | 4,091 |  |  | 1,535 |  |  | 9,667 |  |  | 2,638 |  |  |  |  |
Other | 118 |  |  | 22 |  |  | 233 |  |  | 98 |  |  |  |  |
Net revenue | $ | 9,883 |  |  | $ | 7,653 |  |  | $ | 18,315 |  |  | $ | 10,657 |  |  |  |  |
Net revenue attributed to a geographic region based on the location of the customer were as follows:
| Three months ended June 30, |  |  |  | Six months ended June 30, |  |  |  |  |  |
| 2020 |  | 2019 |  | 2020 |  | 2019 |  |  |  |
Canada | 7,416 |  |  | 7,340 |  |  | $ | 13,507 |  |  | $ | 10,323 |  |  |  |  |
United States | 2,174 |  |  | — |  |  | 4,350 |  |  | — |  |  |  |  |
Other countries | 293 |  |  | 313 |  |  | 458 |  |  | 334 |  |  |  |  |
Total | $ | 9,883 |  |  | $ | 7,653 |  |  | $ | 18,315 |  |  | $ | 10,657 |  |  |  |  |
Property, plant and equipment assets were physically located in the following geographic regions:
| As of June 30, 2020 |  | As of December 31, 2019
Canada | $ | 140,357 |  |  | $ | 141,021 |
United States | 2,253 |  |  | 2,103 |
Other countries | 21,680 |  |  | 18,685 |
Total | $ | 164,290 |  |  | $ | 161,809 |
The Company sells products through a limited number of major customers. Major customers are defined as customers that each individually accounted for greater than 10% of the Company’s revenues and greater than 10% of accounts receivable. United States During the three and six months ended June 30, 2020, the U.S. segment had no major customers. As of June 30, 2020, $46 (December 31, 2019 – $12) in expected credit losses has been recognized on receivables from contracts with customers. Rest of World During the three months ended, June 30, 2020, the Rest of World segment earned a total net revenue before excise taxes of $7,040 from four major customers, BC Liquor Distribution Branch, Alberta Gaming, Liquor and Cannabis Commission, Ontario Cannabis Retail Corporation, and Société Québécoise du Cannabis accounting for 26%, 19%, 16% and 12% of the Company’s total revenues, respectively (three months ended June 30, 2019 – $4,118 from one major customer accounting for 54% of the Company’s total revenues). During the six months ended, June 30, 2020, the Rest of World segment earned a total net revenue before excise taxes of $11,819 from the same four major customers as mentioned above, representing 19%, 22%, 13%, and 13% of the Company’s total revenues, respectively (six months ended June 30, 2019 – $5,800 from two major customers, together accounting for 54% of the Company’s total revenues). As of June 30, 2020, $34 (December 31, 2019 – $124) in expected credit losses has been recognized on receivables from contracts with customers.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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