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Note 25 - Segment Reporting | 3 Months Ended
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Aug. 31, 2025
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | Note 25. Segment reporting Our Company’s Chief Operating Decision Maker (“CODM”) is the Chairman of the Board of Directors and Chief Executive Officer. The CODM uses segment gross profit for the purpose of resource allocation, assessment of segment performance against determined targets, and in deciding whether to implement cost saving targets. The Company operates in four segments. 1) cannabis operations, which encompasses the production, distribution, sale, co-manufacturing and advisory services of both medical and adult-use cannabis, as well as, produce operations which are managed by the cannabis team, 2) beverage operations, which encompasses the production, marketing and sale of beverage products, 3) distribution operations, which encompasses the purchase and resale of pharmaceuticals products to customers, and 4) wellness products, which encompasses wellness and better-for-you foods and beverages. This structure is in line with how our CODM assesses our performance and allocates resources. Operating segments have not been aggregated and no asset information is provided for the segments because the Company’s CODM does not receive asset information by segment on a regular basis. The following tables reconcile the Company’s segment gross profit to consolidated U.S. GAAP results:
|  | For the three months ended |
|  | August 31, |  |  | August 31, |
|  | 2025 |  |  | 2024 |
Beverage |  |  |  |  |  |  |  |
Net beverage revenue |  | $ | 55,739 |  |  | $ | 55,972 |
Beverage costs |  |  | 34,413 |  |  |  | 33,050 |
Beverage gross profit |  |  | 21,326 |  |  |  | 22,922 |
Cannabis |  |  |  |  |  |  |  |
Net cannabis revenue |  |  | 64,511 |  |  |  | 61,249 |
Cannabis costs |  |  | 41,241 |  |  |  | 37,054 |
Cannabis gross profit |  |  | 23,270 |  |  |  | 24,195 |
Distribution |  |  |  |  |  |  |  |
Distribution revenue |  |  | 74,007 |  |  |  | 68,071 |
Distribution costs |  |  | 66,008 |  |  |  | 60,138 |
Distribution gross profit |  |  | 7,999 |  |  |  | 7,933 |
Wellness |  |  |  |  |  |  |  |
Wellness revenue |  |  | 15,244 |  |  |  | 14,752 |
Wellness costs |  |  | 10,370 |  |  |  | 10,096 |
Wellness gross profit |  |  | 4,874 |  |  |  | 4,656 |
Total |  |  |  |  |  |  |  |
Total revenue |  |  | 209,501 |  |  |  | 200,044 |
Total costs |  |  | 152,032 |  |  |  | 140,338 |
Total gross profit |  | $ | 57,469 |  |  | $ | 59,706 |
Segment costs are comprised of cost of goods sold, which include product costs, salaries and an allocation of overhead costs. The following table reconciles the total segment gross profit to the Company’s consolidated totals:
|  | For the three months ended |
|  | August 31, |  |  | August 31, |
|  | 2025 |  |  | 2024 |
Gross profit |  | $ | 57,469 |  |  | $ | 59,706 |
Operating expenses: |  |  |  |  |  |  |  |
General and administrative |  |  | 41,053 |  |  |  | 44,113 |
Selling |  |  | 12,923 |  |  |  | 11,690 |
Amortization |  |  | 3,929 |  |  |  | 21,804 |
Marketing and promotion |  |  | 10,155 |  |  |  | 11,566 |
Research and development |  |  | 41 |  |  |  | 105 |
Change in fair value of contingent consideration |  |  | (15,000 | ) |  |  | — |
Litigation costs, net of recoveries |  |  | 1,007 |  |  |  | 1,595 |
Restructuring costs |  |  | 869 |  |  |  | 4,247 |
Transaction costs (income), net |  |  | 400 |  |  |  | 1,156 |
Total operating expenses |  |  | 55,377 |  |  |  | 96,276 |
Operating income (loss) |  |  | 2,092 |  |  |  | (36,570 | )
Interest expense, net |  |  | (6,696 | ) |  |  | (9,842 | )
Non-operating income (expense), net |  |  | 3,832 |  |  |  | 12,646 |
Loss before income taxes |  |  | (772 | ) |  |  | (33,766 | )
Income tax expense (recovery), net |  |  | (2,285 | ) |  |  | 886 |
Net income (loss) |  | $ | 1,513 |  |  | $ | (34,652 | )
Channels of Cannabis revenue were as follows:
|  | For the three months ended |
|  | August 31, |  |  | August 31, |
|  | 2025 |  |  | 2024 |
Revenue from Canadian medical cannabis |  | $ | 6,146 |  |  | $ | 6,261 |
Revenue from Canadian adult-use cannabis |  |  | 64,067 |  |  |  | 57,235 |
Revenue from wholesale cannabis |  |  | 4,155 |  |  |  | 5,507 |
Revenue from international cannabis |  |  | 13,367 |  |  |  | 12,191 |
Less excise taxes |  |  | (23,224 | ) |  |  | (19,945 | )
Total |  | $ | 64,511 |  |  | $ | 61,249 |
Geographic net revenue:
|  | For the three months ended |
|  | August 31, |  |  | August 31, |
|  | 2025 |  |  | 2024 |
USA |  | $ | 63,961 |  |  | $ | 63,880 |
Canada |  |  | 58,167 |  |  |  | 55,905 |
EMEA |  |  | 85,253 |  |  |  | 77,672 |
Rest of World |  |  | 2,120 |  |  |  | 2,587 |
Total |  | $ | 209,501 |  |  | $ | 200,044 |
Geographic capital assets:
|  | August 31, |  |  | May 31, |
|  | 2025 |  |  | 2025 |
USA |  | $ | 195,436 |  |  | $ | 200,003 |
Canada |  |  | 262,114 |  |  |  | 267,458 |
EMEA |  |  | 99,109 |  |  |  | 97,371 |
Rest of World |  |  | 3,498 |  |  |  | 3,601 |
Total |  | $ | 560,157 |  |  | $ | 568,433 |
Major customers are defined as customers that are materially significant to the Company’s annual revenues. For the three months ended August 31, 2025 and 2024, there were no major customers representing a material contribution to our quarterly revenues.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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