Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.2
Segment Information
6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Information

Note 16. Segment Information

The Company evaluates its business and allocates resources based on its two reportable business segments: DTC and wholesale. The Company has a non-reportable segment that is comprised of a small business line focused on testing new products to determine if they have long-term viability to grow in the DTC and wholesale distribution channels. Corporate non-segment includes general and administrative expenses, interest expense and other non-segment specific income and expense items. The Company does not report asset information by segment because that information is not used to evaluate Company performance or allocate resources between segments.

The Company evaluates its segments' performance based on Gross Profit (calculated in accordance with GAAP).

The following tables summarize information for the reportable segments for the periods presented (in thousands):

 

 

 

For the Three Months Ended

 

 

 

June 30, 2022

 

 

 

DTC

 

 

Wholesale

 

 

Other non-reportable

 

 

Corporate non-segment

 

 

Total

 

Net revenues

 

$

11,097

 

 

$

6,337

 

 

$

208

 

 

$

 

 

$

17,642

 

Cost of revenues

 

 

5,885

 

 

 

3,916

 

 

 

165

 

 

 

 

 

 

9,966

 

Gross profit

 

 

5,212

 

 

 

2,421

 

 

 

43

 

 

 

 

 

 

7,676

 

Operating expenses

 

 

(4,674

)

 

 

(1,902

)

 

 

 

 

 

(5,235

)

 

 

(11,811

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(123

)

 

 

(123

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

279

 

 

 

279

 

Income (loss) before income taxes

 

$

538

 

 

$

519

 

 

$

43

 

 

$

(5,079

)

 

$

(3,979

)

 

 

 

For the Three Months Ended

 

 

 

June 30, 2021

 

 

 

DTC

 

 

Wholesale

 

 

Other non-reportable

 

 

Corporate non-segment

 

 

Total

 

Net revenues

 

$

12,579

 

 

$

4,789

 

 

$

283

 

 

$

 

 

$

17,651

 

Cost of revenues

 

 

7,562

 

 

 

2,641

 

 

 

124

 

 

 

 

 

 

10,327

 

Gross profit

 

 

5,017

 

 

 

2,148

 

 

 

159

 

 

 

 

 

 

7,324

 

Operating expenses

 

 

(4,758

)

 

 

(1,383

)

 

 

(404

)

 

 

(3,850

)

 

 

(10,395

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(281

)

 

 

(281

)

Change in fair value of warrant liabilities

 

 

 

 

 

 

 

 

 

 

 

(872

)

 

 

(872

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

312

 

 

 

312

 

Income (loss) before income taxes

 

$

259

 

 

$

765

 

 

$

(245

)

 

$

(4,691

)

 

$

(3,912

)

 

 

 

For the Six Months Ended

 

 

 

June 30, 2022

 

 

 

DTC

 

 

Wholesale

 

 

Other non-reportable

 

 

Corporate non-segment

 

 

Total

 

Net revenues

 

$

24,408

 

 

$

11,300

 

 

$

391

 

 

$

 

 

$

36,099

 

Cost of revenues

 

 

13,557

 

 

 

7,136

 

 

 

287

 

 

 

 

 

 

20,980

 

Gross profit

 

 

10,851

 

 

 

4,164

 

 

 

104

 

 

 

 

 

 

15,119

 

Operating expenses

 

 

(8,481

)

 

 

(3,292

)

 

 

(394

)

 

 

(11,559

)

 

 

(23,726

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(146

)

 

 

(146

)

Change in fair value of warrant liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

549

 

 

 

549

 

Income (loss) before income taxes

 

$

2,370

 

 

$

872

 

 

$

(290

)

 

$

(11,156

)

 

$

(8,204

)

 

 

 

For the Six Months Ended

 

 

 

June 30, 2021

 

 

 

DTC

 

 

Wholesale

 

 

Other non-reportable

 

 

Corporate non-segment

 

 

Total

 

Net revenues

 

$

26,852

 

 

$

7,624

 

 

$

640

 

 

$

 

 

$

35,116

 

Cost of revenues

 

 

15,356

 

 

 

4,323

 

 

 

274

 

 

 

 

 

 

19,953

 

Gross profit

 

 

11,496

 

 

 

3,301

 

 

 

366

 

 

 

 

 

 

15,163

 

Operating expenses

 

 

(10,288

)

 

 

(2,205

)

 

 

(887

)

 

 

(5,763

)

 

 

(19,143

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(421

)

 

 

(421

)

Change in fair value of warrant liabilities

 

 

 

 

 

 

 

 

 

 

 

(893

)

 

 

(893

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

608

 

 

 

608

 

Gain on debt forgiveness from Paycheck Protection Program

 

 

 

 

 

 

 

 

 

 

 

1,364

 

 

 

1,364

 

Income (loss) before income taxes

 

$

1,208

 

 

$

1,096

 

 

$

(521

)

 

$

(5,105

)

 

$

(3,322

)