SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2022

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 17. – SEGMENT AND GEOGRAPHIC INFORMATION

The Company organizes its business into two reportable segments: (1) Tobacco and (2) Hemp/Cannabis. This segment structure reflects the financial information and reports used by the Company’s management, specifically its Chief Operating Decision Maker, to make decisions regarding the Company’s business, including resource allocations and performance assessments. This segment structure reflects the Company’s current operating focus in compliance with ASC 280, Segment Reporting.

The Company defines segment income from operations as revenues, net less cost of goods sold and expenses attributable to segment-specific selling, general, administrative, research, development, and other operating activities. The remaining unallocated operating and other income and expenses are primarily administrative corporate overhead expenses such as corporate personnel costs, equity compensation, investor relations, strategic consulting, research and development costs that apply broadly to the overall plant science platform, and that are not allocated to reportable segments. Unallocated corporate assets consist of cash and cash equivalents, short-term investment securities, prepaid and other assets, property and equipment, and intangible assets. Transactions between the two segments are not significant.

The following table presents revenues, net by segment for fiscal years ended December 31, 2022 and 2021:

	Year Ended
	December 31,
	2022		2021
Tobacco	$	40,501	$	30,905
Hemp/cannabis		21,610		43
Total revenues, net	$	62,111	$	30,948

The following table presents income from continuing operations for the Company’s reportable segments for fiscal years ended December 31, 2022 and 2021:

	Year Ended
	December 31,
	2022		2021
Tobacco	$	5,753	$	2,527
Hemp/cannabis		15,870		624
Total segment operating loss		21,623		3,151
Unallocated operating expenses		35,483		25,261
Operating loss		57,106		28,412
Hemp/cannabis other (income) expense, net		227		-
Unallocated other (income) expense, net		2,902		4,183
Loss before income taxes	$	60,235	$	32,595

(1) In the fourth quarter of 2022, the Company recorded pre-tax charges and other expenses of $4,799 related to the Grass Valley fire. These charges were included in Other operating expenses, net as described in Note 19.

The following table presents depreciation and amortization expense for the Company’s reportable segments for fiscal years ended December 31, 2022 and 2021:

	Year Ended
	December 31,
	2022		2021
Tobacco	$	606	$	546
Hemp/cannabis		1,475		37
Total depreciation and amortization included in segment operating loss		2,081		583
Unallocated depreciation and amortization		777		665
Total depreciation and amortization	$	2,858	$	1,248

The following table presents total assets for the Company’s reportable segments as of December 31, 2022 and 2021:

	Year Ended
	December 31,
	2022		2021
Tobacco	$	15,748	$	10,746
Hemp/cannabis		65,965		2,266
Total reportable segments		81,713		13,013
Unallocated assets		32,938		62,942
Total assets	$	114,651	$	75,954

The following table presents capital expenditures for the Company’s reportable segments for fiscal years ended December 31, 2022 and 2021:

	Year Ended
	December 31,
	2022		2021
Tobacco	$	650	$	461
Hemp/cannabis		2,549		-
Total reportable segments		3,198		461
Unallocated expenditures for long-lived tangible assets		459		286
Total expenditures	$	3,657	$	745

Geographic Area Information

For the years ended December 31, 2022 and 2021, substantially all third-party sales of product are shipped to customers in the United States. Additionally, as of December 31, 2022, and 2021, substantially all long-lived assets are physically located or domiciled in the United States.