SEGMENT INFORMATION

9 Months Ended

Oct. 29, 2022

SEGMENT INFORMATION

10. SEGMENT INFORMATION

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. The Company has two operating segments, Canada, and the U.S., that derive their revenues from various distribution channels including online, retail and wholesale. The Company’s Chief Executive and Brand Officer and President, Chief Financial and Operating Officer (the chief operating decision makers or “CODM”) make decisions about resources to be allocated to the segments and assesses performance, and for which discrete financial information is available.

                The Company derives revenue from the following products:

	For the three-months ended				For the nine-months ended
	October 29,		October 30,		October 29,		October 30,
	2022		2021		2022		2021
	$		$		$		$
Tea		14,084		19,054		45,159		55,192
Tea accessories		1,859		2,723		5,442		8,129
Food and beverages		233		426		1,069		874
		16,176		22,203		51,670		64,195

All property and equipment, right-of-used assets and intangible assets are located in Canada.

Results from operating activities before corporate expenses per country are as follows:   

	For the three-months ended							For the nine-months ended
	October 29, 2022							October 29, 2022
	Canada		US		Consolidated			Canada		US		Consolidated
	$		$		$			$		$		$
Sales		12,899		3,277		16,176			42,302		9,368		51,670
Cost of sales		7,968		1,926		9,894			24,539		5,577		30,116
Gross profit		4,931		1,351		6,282			17,763		3,791		21,554
Selling, general and administration expenses (allocated)		2,818		377		3,195			9,156		1,364		10,520
Results from operating activities before corporate expenses		2,113		974		3,087			8,607		2,427		11,034
Selling, general and administration expenses (non-allocated)						7,730							22,264
Results from operating activities						(4,643	)						(11,230	)
Finance costs						194							532
Finance income						(120	)						(236	)
Net loss before income taxes						(4,717	)						(11,526	)

	For the three-months ended							For the nine-months ended
	October 30, 2021							October 30, 2021
	Canada		US		Consolidated			Canada		US		Consolidated
	$		$		$			$		$		$
Sales		17,948		4,255		22,203			51,124		13,071		64,195
Cost of sales		10,891		2,696		13,587			29,480		7,336		36,816
Gross profit		7,057		1,559		8,616			21,644		5,735		27,379
Selling, general and administration expenses (allocated)		3,129		430		3,559			8,020		1,519		9,539
Results from operating activities before corporate expenses		3,928		1,129		5,057			13,624		4,216		17,840
Selling, general and administration expenses (non-allocated)						6,683							18,982
Restructuring plan activities, net						195							(76,964	)
Results from operating activities						(1,821	)						75,822
Finance costs						71							104
Finance income						(28	)						(118	)
Net (loss) income before income taxes						(1,864	)						75,836