Segment Information | Segment Information The tables below set forth our condensed consolidated results of operations by segment. The Company’s condensed consolidated financial results for these periods are not necessarily indicative of the consolidated financial results that the Company will achieve in future periods . Segment data was as follows for the three and six months ended June 30, 2022 and 2021: Three months ended June 30, 2022 United States Rest of World Corporate Total Cannabis flower $ — $ 15,739 $ — $ 15,739 Cannabis extracts 1,459 5,582 — 7,041 Other — 281 — 281 Net revenue $ 1,459 $ 21,602 $ — $ 23,061 Share of income from equity method investments $ — $ 5,197 $ — $ 5,197 Total assets $ 430,455 $ 285,902 $ 615,856 $ 1,332,213 Depreciation and amortization $ 87 $ 1,324 $ — $ 1,411 Adjusted EBITDA (3,877) (8,995) (5,927) (18,799) Three months ended June 30, 2021 United States Rest of World Corporate Total Cannabis flower $ — $ 11,597 $ — $ 11,597 Cannabis extracts 2,227 1,531 — 3,758 Other — 267 — 267 Net revenue $ 2,227 $ 13,395 $ — $ 15,622 Share of loss from equity method investments $ — $ (1,115) $ — $ (1,115) Total assets $ 473,828 $ 386,805 $ 741,850 $ 1,602,483 Depreciation and amortization 68 975 — 1,043 Adjusted EBITDA (10,711) (32,605) (6,443) (49,759) Six months ended June 30, 2022 United States Rest of World Corporate Total Cannabis flower $ — $ 34,364 $ — $ 34,364 Cannabis extracts 3,787 9,570 — 13,357 Other — 373 — 373 Net revenue $ 3,787 $ 44,307 $ — $ 48,094 Share of income from equity method investments $ — $ 5,197 $ — $ 5,197 Total assets $ 430,455 $ 285,902 $ 615,856 $ 1,332,213 Depreciation and amortization 183 2,521 — 2,704 Adjusted EBITDA (10,963) (12,420) (14,316) (37,699) Six months ended June 30, 2021 United States Rest of World Corporate Total Cannabis flower $ — $ 21,031 $ — $ 21,031 Cannabis extracts 4,668 2,234 — 6,902 Other — 300 — 300 Net revenue $ 4,668 $ 23,565 $ — $ 28,233 Share of loss from equity method investments $ — $ (2,758) $ — $ (2,758) Total assets $ 473,828 $ 386,805 $ 741,850 $ 1,602,483 Depreciation and amortization 139 1,639 — 1,778 Adjusted EBITDA (20,221) (54,789) (11,323) (86,333) The following tables set forth a reconciliation of net income (loss) as determined in accordance with U.S. GAAP to Adjusted EBITDA for the periods indicated: Three months ended June 30, 2022 United States Rest of World Corporate Total Net loss $ (4,498) $ (8,759) $ (7,081) $ (20,338) Interest income, net (426) (3,349) — (3,775) Income tax benefit — (308) — (308) Share of income from equity method investments — (5,197) — (5,197) Gain on revaluation of derivative liabilities (iii) — (3,410) — (3,410) Loss on revaluation of financial instruments (v) — 2,112 — 2,112 Foreign currency transaction loss — 2,852 — 2,852 Other, net (vii) — (2) — (2) Restructuring costs (ix) 292 978 — 1,270 Share-based compensation (x) 473 2,143 — 2,616 Financial statement review costs (xi) — — 1,154 1,154 Depreciation and amortization 282 3,945 — 4,227 Adjusted EBITDA $ (3,877) $ (8,995) $ (5,927) $ (18,799) Three months ended June 30, 2021 United States Rest of World Corporate Total Net income (loss) $ (247,847) $ 79,627 $ (11,133) $ (179,353) Interest income, net (20) (2,273) — (2,293) Share of loss from equity method investments — 1,115 — 1,115 Impairment loss on goodwill and indefinite-lived intangible assets (i) 234,914 — — 234,914 Impairment loss on long-lived assets (ii) 1,214 — — 1,214 Gain on revaluation of derivative liabilities (iii) — (115,248) — (115,248) Transaction costs (iv) — — 2,758 2,758 Gain on revaluation of financial instruments (v) — (77) — (77) Other, net (vii) — (1,050) — (1,050) Loss from discontinued operations (viii) — 561 — 561 Share-based compensation (x) 822 1,743 — 2,565 Financial statement review costs (xi) — — 1,932 1,932 Depreciation and amortization 206 2,997 — 3,203 Adjusted EBITDA $ (10,711) $ (32,605) $ (6,443) $ (49,759) Six months ended June 30, 2022 United States Rest of World Corporate Total Net loss $ (26,714) $ (6,745) $ (19,532) $ (52,991) Interest income, net (455) (5,366) — (5,821) Income tax expense — 54 — 54 Share of income from equity method investments — (5,197) — (5,197) Impairment loss on long-lived assets (ii) — 3,493 — 3,493 Gain on revaluation of derivative liabilities (iii) — (13,829) — (13,829) Gain on revaluation of financial instruments (v) — (2,156) — (2,156) Impairment loss on other investment (vi) 11,238 — — 11,238 Foreign currency transaction loss — 4,724 — 4,724 Other, net (vii) — (137) — (137) Restructuring costs (ix) 1,345 3,009 — 4,354 Share-based compensation (x) 2,909 3,393 — 6,302 Financial statement review costs (xi) — — 5,216 5,216 Depreciation and amortization 714 6,337 — 7,051 Adjusted EBITDA $ (10,963) $ (12,420) $ (14,316) $ (37,699) Six months ended June 30, 2021 United States Rest of World Corporate Total Net loss $ (259,939) $ (62,520) $ (18,519) $ (340,978) Interest income, net (23) (4,599) — (4,622) Share of loss from equity method investments — 2,758 — 2,758 Impairment loss on goodwill and indefinite-lived intangible assets (i) 234,914 — — 234,914 Impairment loss on long-lived assets (ii) 2,955 — — 2,955 Loss on revaluation of derivative liabilities (iii) — 1,626 — 1,626 Transaction costs (iv) — — 3,259 3,259 Loss on revaluation of financial instruments (v) — 123 — 123 Other, net (vii) — (1,034) — (1,034) Loss from discontinued operations (viii) — 582 — 582 Share-based compensation (x) 1,567 3,497 — 5,064 Financial statement review costs (xi) — — 3,937 3,937 Depreciation and amortization 305 4,778 — 5,083 Adjusted EBITDA $ (20,221) $ (54,789) $ (11,323) $ (86,333) (i) For the three and six months ended June 30, 2021, impairment on goodwill and indefinite-lived intangible assets relates to impairment on goodwill and indefinite-lived intangible assets related to the Company’s U.S. segment. (ii) For the six months ended June 30, 2022, impairment loss on long-lived assets related to the Company’s decision to seek a sublease for leased office space in Toronto, Ontario, Canada during the first quarter of 2022. For the three months ended June 30, 2021, impairment loss on long-lived assets relates to an impairment on property, plant and equipment in the U.S. segment. For the six months ended June 30, 2021, impairment loss on long-lived assets relates to the aforementioned impairment loss on property, plant and equipment as well as an impairment loss on leased premises in the U.S. segment from the first quarter of 2021. See Note 13 “ Impairment Loss on Long-lived Assets .” (iii) For the three and six months ended June 30, 2022 and 2021, (gain) loss on revaluation of derivative liabilities represents the fair value changes on the derivative liabilities. See Note 6 “ Derivative Liabilities .” (iv) For the three and six months ended June 30, 2021, transaction costs represent legal, financial and other advisory fees and expenses incurred in connection with various strategic investments. These costs are included in general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss). (v) For the three and six months ended June 30, 2022, (gain) loss on revaluation of financial instruments related primarily to the Company’s equity securities in Cronos Australia. For three and six months ended June 30, 2021, (gain) loss on revaluation of financial instruments related primarily to revaluations of financial liabilities resulting from DSUs. (vi) For the six months ended June 30, 2022, impairment loss on other investments related to the PharmaCann Option for the difference between its fair value and carrying amount. See Note 3 “ Investments. ” (vii) For the three and six months ended June 30, 2022, other, net related to (gain) loss on disposal of assets. For the three and six months ended June 30, 2021, other, net primarily related to gain recorded on sale of the Company’s Winnipeg facility previously designated as held-for-sale in the first quarter of 2021. (viii) For the three and six months ended June 30, 2021, loss from discontinued operations related to the discontinuance of Original B.C. Ltd. (“OGBC”). (ix) For the three and six months ended June 30, 2022, restructuring costs related to the employee-related severance costs and other restructuring costs associated with the Realignment, including the planned exit of the Stayner Facility. See Note 7 “ Restructuring. ” (x) For the three and six months ended June 30, 2022 and 2021, share-based compensation related to the vesting expenses of share-based compensation awarded to employees under the Company’s share-based award plans as described in Note 8 “ Share-based Compensation .” (xi) For the three and six months ended June 30, 2022 and 2021, financial statement review costs include costs and reserves taken related to the restatements of the Company’s 2019 and second quarter 2021 interim financial statements, costs related to the Company’s responses to requests for information from various regulatory authorities relating to such restatements and legal costs defending shareholder class action complaints brought against the Company as a result of the 2019 restatement. 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, 2022 2021 2022 2021 Canada $ 14,388 $ 10,664 $ 27,965 $ 18,246 Israel 7,214 2,310 16,342 4,828 United States 1,459 2,227 3,787 4,668 Other countries — 421 — 491 Net revenue $ 23,061 $ 15,622 $ 48,094 $ 28,233 |