Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS (Tables)

v3.22.4
ACQUISITIONS (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Business Acquisitions by Acquisition, Contingent Consideration
The table below represents the allocation of the purchase price to the acquired net assets during the year ended December 31, 2022.

  HRG STL Total
Inventory $ 4,170  $ 279  $ 4,449 
Prepaids and other current assets 76  10  86 
Furniture and equipment 148  —  148 
Operating lease right of use asset 666  —  666 
Operating lease liability (666) —  (666)
Customer relationships 2,430  —  2,430 
Trademark 496  —  496 
Non-compete 255  —  255 
Goodwill 5,816  135  5,951 
Total $ 13,391  $ 424  $ 13,815 
The table below represents the consideration paid for the net assets acquired in business combinations.
  HRG STL Total
Cash $ 6,806  $ 424  $ 7,230 
Indemnity stock holdback 875  —  875 
Common stock 5,710  —  5,710 
Total $ 13,391  $ 424  $ 13,815 
The table below represents the allocation of the purchase price to the acquired net assets during the year ended December 31, 2021:
Agron Aquarius 55 Hydro Charcoir San Diego Hydro Grow Warehouse Grow Depot Maine Indoor Garden Downriver
Inventory $ —  $ 957  $ 780  $ 839  $ 1,400  $ 2,450  $ 326  $ 372  $ 824 
Prepaids and other current assets 46  12  29  534  36  30  3  —  3 
Furniture and equipment 29  63  50  —  315  250  25  94  50
Liabilities —  —  —  —  —  (169) —  —  — 
Operating lease right of use asset 98  108  861  —  1,079  641  92  137  273 
Operating lease liability (98) (108) (861) —  (1,079) (641) (92) (137) (273)
Customer relationships 832  339  809  5,712  605  1,256  549  210  634 
Trade name 1,530  485  870  1,099  1,192  2,748  344  353  698 
Non-compete 139  —  26  —  6  94  36  2  16 
Intellectual property —  —  —  2,065  —  —  —  —  — 
Goodwill 8,673  1,702  3,915  6,119  5,728  11,120  866  661  2,126 
Total $ 11,249  $ 3,558  $ 6,479  $ 16,368  $ 9,282  $ 17,779  $ 2,149  $ 1,692  $ 4,351 
Harvest Aquaserene Mendocino CGS Hoagtech All Seasons MMI Total
Inventory $ 1,204  1,696  753  875  751  100  3,530  $ 16,857 
Prepaids and other current assets 7  2  1  1  37  1  —  742 
Furniture and equipment 100  500  160  100  144  25  328  2,233 
Liabilities —  —  —  —  (29) —  (250) (448)
Operating lease right of use asset 3,782  1,177  408  746  1,569  37  2,332  13,340 
Operating lease liability (3,782) (1,177) (408) (746) (1,569) (37) (2,332) (13,340)
Customer relationships 1,016  1,235  575  1,382  493  154  2,964  18,765 
Trade name 1,392  1,231  414  852  428  117  1,039  14,792 
Non-compete —  11  6  11  3  —  238  588 
Intellectual property —  —  —  —  —  —  —  2,065 
Goodwill 4,606  6,976  2,091  4,027  2,105  545  1,202  62,462 
Total $ 8,325  11,651  4,000  $ 7,248  3,932  942  $ 9,051  $ 118,056 
The table below represents the consideration paid for the net assets acquired in business combinations during 2021:
Agron Aquarius 55 Hydro Charcoir San Diego Hydro Grow Warehouse Grow Depot Maine Indoor Garden Downriver
Cash $ 5,973  $ 2,331  $ 5,347  $ 9,902  $ 4,751  $ 8,100  $ 1,738  $ 1,165  $ 3,177 
Common stock 5,276  1,227  1,132  6,466  4,531  9,679  411  527  1,174 
Total $ 11,249  $ 3,558  $ 6,479  $ 16,368  $ 9,282  $ 17,779  $ 2,149  $ 1,692  $ 4,351 
Harvest Aquaserene Mendocino CGS Hoagtech All Seasons MMI Total
Cash $ 5,561  $ 9,860  $ 4,000  $ 5,976  $ 3,932  $ 701  $ 8,270  $ 80,784 
Common stock 2,764  1,791  —  1,272  —  241  781  37,272 
Total $ 8,325  $ 11,651  $ 4,000  $ 7,248  $ 3,932  $ 942  $ 9,051  $ 118,056 
The table below represents the allocation of the purchase price to the acquired net assets during the year ended December 31, 2020:
Canopy Grassroots GrowBiz BGT Hydro Depot Emerald
City		 H2O
Hydro		 Health &
Harvest		 Total
Inventory $ 899  $ 2,348  $ 6,286  $ 1,595  $ 333  $ 150  $ 498  $ 1,054  $ 13,163 
Prepaids and other current assets —  —  —  —  —  —  4  —  4 
Building —  —  —  477  —  —  —  —  477 
Furniture and equipment —  150  200  250  25  10  50  51  736 
Operating lease right to use asset —  1,437  3,641  246  —  140  906  324  6,694 
Operating lease liability —  (1,437) (3,641) (246) —  (140) (906) (324) (6,694)
Customer relationships 2,274  768  1,969  634  148  212  150  255  6,410 
Trade name 1,094  2,140  7,483  1,953  212  —  234  357  13,473 
Non-compete 113  133  372  96  19  14  43  6  796 
Goodwill 4,860  4,461  28,476  4,039  799  614  1,008  1,131  45,388 
Total $ 9,240  $ 10,000  $ 44,786  $ 9,044  $ 1,536  $ 1,000  $ 1,987  $ 2,854  $ 80,447 
The table below represents the consideration paid for the net assets acquired in business combinations during 2020:
Canopy Grassroots GrowBiz BGT Hydro Depot Emerald
City		 H2O
Hydro		 Health &
Harvest		 Total
Cash $ 5,424  $ 7,499  $ 17,487  $ 5,972  $ 988  $ 1,000  $ 1,282  $ 1,750  $ 41,402 
Common stock 3,816  2,501  27,299  3,072  548  —  705  1,104  39,045 
Total $ 9,240  $ 10,000  $ 44,786  $ 9,044  $ 1,536  $ 1,000  $ 1,987  $ 2,854  $ 80,447 
Schedule of revenue and earnings included in consolidated income statement
The following table discloses the date of the acquisition noted above and the revenue and earnings included in the Consolidated Statement of Operations for the year ended December 31, 2022. Revenue and earnings amounts include other proprietary brands now being included under HRG for operations.
  HRG STL Total
Acquisition date February 1, 2022 November 3, 2022
Revenue $ 19,239  $ 178  $ 19,417 
Net Income (loss) $ (629) $ 41  $ (588)
The following table discloses the date of the acquisitions noted above and the revenue and earnings included in the consolidated income statement from the date of acquisition to the period ended December 31, 2021.
Agron Aquarius 55 Hydro Charcoir San Diego Hydro Grow Warehouse LLC Grow Depot Maine Indoor Garden Downriver
Acquisition date 3/19/2021 3/15/2021 3/15/2021 3/12/2021 2/22/2021 2/15/2021 2/1/2021 1/25/2021 3/31/2021
Revenue $ 14,403  $ 9,640  $ 6,017  $ 6,840  $ 7,173  $ 13,147  $ 6,655  $ 6,265  $ 3,663 
Net Income (loss) $ (305) $ 1,679  $ 399  $ 1,039  $ 906  $ 2,175  $ 1,132  $ 1,088  $ 297 
Harvest Aquaserene Mendocino CGS Hoagtech All Seasons MMI Total
Acquisition date
 5/3/21 7/19/21 7/19/21 8/24/21 8/23/21 10/15/21 12/31/21
Revenue
 $ 6,706  $ 2,742  $ 1,455  $ 1,534  $ 1,564  $ 187  $ —  $ 87,991 
Net Income (loss) $ 924  $ 445  $ 106  $ 15  $ 141  $ 52  $ —  $ 10,093 
The following table discloses the date of the acquisitions noted above and the revenue and earnings included in the consolidated income statement from the date of acquisition to the period ended December 31, 2020:
Canopy Grassroots GrowBiz BGT Hydro Depot Emerald
City		 H2O
Hydro		 Health &
Harvest		 Total
Acquisition date 12/23/2020 12/14/2020 11/17/2020 10/20/2020 10/12/2020 8/10/2020 6/16/2020 2/26/2020
Revenue $ 301  $ 532  $ 3,852  $ 1,859  $ 1,245  $ 5,635  $ 2,418  $ 8,995  $ 24,837 
Net Income $ 141  $ 74  $ 736  $ 188  $ 149  $ 1,005  $ 562  $ 1,066  $ 3,921 
Business Acquisition, Pro Forma Information
The following represents the pro forma consolidated income statement as if the acquisitions had been included in the consolidated results of the Company for the entire period for the years ended December 31, 2022, 2021, and 2020.
December 31,
2022 (Unaudited)		 December 31,
2021 (Unaudited)		 December 31,
2020 (Unaudited)
Revenue $ 280,897  $ 441,906  $ 212,782 
Net income (loss) $ (162,156) $ 12,198  $ 4,740 
The following represents the pro forma consolidated income statement as if the acquisitions had been included in the consolidated results of the Company for the entire period for the years ended December 31, 2021 and 2020.
December 31,
2021 (Unaudited)		 December 31,
2020 (Unaudited)
Revenue $ 452,126  $ 310,947 
Net income $ 13,511  $ 18,480 
The following represents the pro forma consolidated income statement as if the acquisitions had been included in the consolidated results of the Company for the entire period for the year ended December 31, 2020.
December 31,
2020 (Unaudited)
Revenue $ 309,486 
Earnings $ 18,308