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Note 25 - Segment Reporting
 3 Months Ended
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.