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Segment Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information Segment reporting is prepared on the same basis that the Company’s chief operating decision makers (the “CODMs”) manage the business, make operating decisions and assess the Company’s performance. For the years ended December 31, 2020 and December 31, 2019, the Company determined that it has the following two reportable segments: United States and Rest of World. The United States operating segment consists of the manufacture and distribution of hemp-derived CBD infused products. The Rest of World operating segment is involved in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for the medical and adult-use markets. These two segments represent the geographic regions in which the Company operates and the different product offerings within each geographic region. The results of each segment are regularly reviewed by the CODMs to assess the performance of the segment and make decisions regarding the allocation of resources. The CODMs review adjusted earnings (loss) before interest, tax, depreciation and amortization (“Adjusted EBITDA”) as the measure of segment profit or loss to evaluate performance of and allocate resources for its reportable segments. Adjusted EBITDA is defined as earnings before interest, tax, depreciation, non-cash items and items that do not reflect management’s assessment of on-going business performance. Reporting by operating segments follows the same accounting policies as those used to prepare the consolidated financial statements. The operating segments are presented in accordance with the same criteria used for internal reporting prepared for the CODMs. Inter-segment transactions are recorded at the stated values as agreed to by the segments. Segment data was as follows for the year ended December 31, 2020:
|  | United States |  | Rest of World |  | Corporate |  | Total
Consolidated statements of net income (loss) and comprehensive income (loss) |  |  |  |  |  |  |  |
Net revenue |  |  |  |  |  |  |  |
Cannabis flower |  | $ | — |  |  | $ | 27,932 |  |  | $ | — |  |  | $ | 27,932 |
Cannabis extracts |  | 9,495 |  |  | 8,759 |  |  | — |  |  | 18,254 |
Other |  | — |  |  | 533 |  |  | — |  |  | 533 |
Net revenue |  | 9,495 |  |  | 37,224 |  |  | — |  |  | 46,719 |
Share of loss from equity accounted investees |  | — |  |  | (4,510) |  |  | — |  |  | (4,510) |
Interest revenue |  | 16 |  |  | 18,585 |  |  | — |  |  | 18,601 |
Interest expense |  | (34) |  |  | (152) |  |  | — |  |  | (186) |
Interest income (expense), net |  | (18) |  |  | 18,433 |  |  | — |  |  | 18,415 |
Depreciation and amortization |  | 234 |  |  | 2,638 |  |  | — |  |  | 2,872 |
Income tax expense |  | 323 |  |  | 1,024 |  |  | — |  |  | 1,347 |
Loss from discontinued operations |  | — |  |  | (650) |  |  | — |  |  | (650) |
Adjusted EBITDA |  | (28,019) |  |  | (98,349) |  |  | (20,885) |  |  | (147,253) |
Consolidated balance sheets |  |  |  |  |  |  |  |
Total assets |  | 253,745 |  |  | 388,351 |  |  | 1,283,586 |  |  | 1,925,682 |
Investments in equity accounted investees |  | — |  |  | 19,235 |  |  | — |  |  | 19,235 |
Goodwill |  | 178,414 |  |  | 1,108 |  |  | — |  |  | 179,522 |
Purchase of property, plant and equipment |  | 385 |  |  | 31,027 |  |  | — |  |  | 31,412 |
Segment data was as follows for the year ended December 31, 2019:
|  | United States |  | Rest of World |  | Corporate |  | Total
Consolidated statements of net income (loss) and comprehensive income (loss) |  |  |  |  |  |  |  |
Net revenue |  |  |  |  |  |  |  |
Cannabis flower |  | $ | — |  |  | $ | 15,020 |  |  | $ | — |  |  | $ | 15,020 |
Cannabis extracts |  | 3,364 |  |  | 5,338 |  |  | — |  |  | 8,702 |
Other |  | — |  |  | 28 |  |  | — |  |  | 28 |
Net revenue |  | 3,364 |  |  | 20,386 |  |  | — |  |  | 23,750 |
Share of loss from equity accounted investees |  | — |  |  | (2,009) |  |  | — |  |  | (2,009) |
Interest revenue |  | 6 |  |  | 29,207 |  |  | — |  |  | 29,213 |
Interest expense |  | — |  |  | (1,244) |  |  | — |  |  | (1,244) |
Interest income, net |  | 6 |  |  | 27,963 |  |  | — |  |  | 27,969 |
Depreciation and amortization |  | 46 |  |  | 2,044 |  |  | — |  |  | 2,090 |
Income tax expense |  | — |  |  | — |  |  | — |  |  | — |
Loss from discontinued operations |  | — |  |  | (363) |  |  | — |  |  | (363) |
Adjusted EBITDA |  | (1,703) |  |  | (84,826) |  |  | (11,779) |  |  | (98,308) |
Consolidated balance sheets |  |  |  |  |  |  |  |
Total assets |  | 293,985 |  |  | 309,854 |  |  | 1,486,603 |  |  | 2,090,442 |
Investments in equity accounted investees |  | — |  |  | 557 |  |  | — |  |  | 557 |
Goodwill |  | 213,414 |  |  | 1,078 |  |  | — |  |  | 214,492 |
Purchase of property, plant and equipment |  | 259 |  |  | 38,405 |  |  | — |  |  | 38,664 |
Segment data was as follows for the year ended December 31, 2018:
|  | United States |  | Rest of World |  | Corporate |  | Total
Consolidated statements of net income (loss) and comprehensive income (loss) |  |  |  |  |  |  |  |
Net revenue |  |  |  |  |  |  |  |
Cannabis flower |  | $ | — |  |  | $ | 9,210 |  |  | $ | — |  |  | $ | 9,210 |
Cannabis extracts |  | — |  |  | 2,732 |  |  | — |  |  | 2,732 |
Other |  | — |  |  | 179 |  |  | — |  |  | 179 |
Net revenue |  | — |  |  | 12,121 |  |  | — |  |  | 12,121 |
Share of loss from equity accounted investees |  | — |  |  | (723) |  |  | — |  |  | (723) |
Interest revenue |  | — |  |  | 220 |  |  | — |  |  | 220 |
Interest expense |  | — |  |  | (139) |  |  | — |  |  | (139) |
Interest income, net |  | — |  |  | 81 |  |  | — |  |  | 81 |
Depreciation and amortization |  | — |  |  | 807 |  |  | — |  |  | 807 |
Income tax expense |  | — |  |  | — |  |  | — |  |  | — |
Loss from discontinued operations |  | — |  |  | (894) |  |  | — |  |  | (894) |
Adjusted EBITDA |  | — |  |  | (10,357) |  |  | — |  |  | (10,357) |
Consolidated balance sheets |  |  |  |  |  |  |  |
Total assets |  | — |  |  | 183,471 |  |  | — |  |  | 183,471 |
Investments in equity accounted investees |  | — |  |  | 2,960 |  |  | — |  |  | 2,960 |
Goodwill |  | — |  |  | 1,314 |  |  | — |  |  | 1,314 |
Purchase of property, plant and equipment |  | — |  |  | 88,308 |  |  | — |  |  | 88,308 |
Adjusted EBITDA is reconciled to net income (loss) as follows for the years ended December 31, 2020, 2019 and 2018:
(in thousands of U.S. dollars) |  | Year ended December 31, 2020
|  | US |  | ROW |  | Corporate Expenses |  | Total
Net income (loss) |  | $ | (77,368) |  |  | $ | 32,671 |  |  | $ | (30,573) |  |  | $ | (75,270) |
Adjustments |  |  |  |  |  |  |  |
Interest expense (income), net |  | 18 |  |  | (18,433) |  |  | — |  |  | (18,415) |
Income tax expense |  | 323 |  |  | 1,024 |  |  | — |  |  | 1,347 |
Impairment loss on goodwill and intangible assets |  | 40,000 |  |  | — |  |  | — |  |  | 40,000 |
Financing and transaction costs |  | 40 |  |  | — |  |  | — |  |  | 40 |
Gain on revaluation of derivative liabilities |  | — |  |  | (129,254) |  |  | — |  |  | (129,254) |
Gain on disposal of other investments |  | — |  |  | (4,789) |  |  | — |  |  | (4,789) |
Share of loss from equity accounted investees |  | — |  |  | 4,510 |  |  | — |  |  | 4,510 |
Loss from discontinued operations |  | — |  |  | 650 |  |  | — |  |  | 650 |
Other loss (income) |  | 20 |  |  | 1,814 |  |  | — |  |  | 1,834 |
Review costs related to restatement of 2019 interim financial statements |  | — |  |  | — |  |  | 9,688 |  |  | 9,688 |
Share-based payments |  | 8,714 |  |  | 6,647 |  |  | — |  |  | 15,361 |
Adjusted EBIT |  | (28,253) |  |  | (105,160) |  |  | (20,885) |  |  | (154,298) |
Adjustments |  |  |  |  |  |  |  |
Depreciation and amortization |  | 234 |  |  | 6,811 |  |  | — |  |  | 7,045 |
Adjusted EBITDA |  | (28,019) |  |  | (98,349) |  |  | (20,885) |  |  | (147,253) |
(in thousands of U.S. dollars) |  | Year ended December 31, 2019
|  | US |  | ROW |  | Corporate Expenses |  | Total
Net income (loss) |  | $ | (3,070) |  |  | $ | 1,180,241 |  |  | $ | (11,597) |  |  | $ | 1,165,574 |
Adjustments |  |  |  |  |  |  |  |
Interest income, net |  | (6) |  |  | (27,963) |  |  | — |  |  | (27,969) |
Impairment loss on goodwill and intangible assets |  | — |  |  | — |  |  | — |  |  | — |
Repurposing charges |  | — |  |  | 7,268 |  |  | — |  |  | 7,268 |
Financing and transaction costs |  | 117 |  |  | 32,091 |  |  | — |  |  | 32,208 |
Gain on revaluation of derivative liabilities |  | — |  |  | (1,276,819) |  |  | — |  |  | (1,276,819) |
Gain on disposal of other investments |  | — |  |  | (16,277) |  |  | — |  |  | (16,277) |
Share of loss from equity accounted investees |  | — |  |  | 2,009 |  |  | — |  |  | 2,009 |
Loss from discontinued operations |  | — |  |  | 363 |  |  | — |  |  | 363 |
Other loss (income) |  | 182 |  |  | (197) |  |  | (182) |  |  | (197) |
Share-based payments |  | 900 |  |  | 10,719 |  |  | — |  |  | 11,619 |
Adjusted EBIT |  | (1,877) |  |  | (88,565) |  |  | (11,779) |  |  | (102,221) |
Adjustments |  |  |  |  |  |  |  |
Depreciation and amortization |  | 174 |  |  | 3,739 |  |  | — |  |  | 3,913 |
Adjusted EBITDA |  | $ | (1,703) |  |  | $ | (84,826) |  |  | $ | (11,779) |  |  | $ | (98,308) |
(in thousands of U.S. dollars) |  |  | Year ended December 31, 2018
Net income (loss) |  |  |  |  | $ | (21,817) |
Adjustments |  |  |  |  |
Interest income, net |  |  |  |  | (81) |
Loss (gain) on disposal of other investments |  |  |  |  | (164) |
Share of loss (income) from equity accounted investees |  |  |  |  | 723 |
Loss from discontinued operations |  |  |  |  | 894 |
Share-based payments |  |  |  |  | 8,151 |
Adjusted EBIT |  |  |  |  | (12,294) |
Adjustments |  |  |  |  |
Depreciation and amortization |  |  |  |  | 1,937 |
Adjusted EBITDA |  |  |  |  | $ | (10,357) |
Sources of net revenue were as follows:
| Year ended December 31,
| 2020 |  | 2019
Cannabis flower | $ | 27,932 |  |  | $ | 15,020 |
Cannabis extracts | 18,254 |  |  | 8,702 |
Other | 533 |  |  | 28 |
Net revenue | $ | 46,719 |  |  | $ | 23,750 |
Net revenue attributed to a geographic region based on the location of the customer were as follows:
| Year ended December 31,
| 2020 |  | 2019 |  |
Canada | $ | 34,538 |  |  | $ | 20,202 |  |  |
United States | 9,495 |  |  | 3,364 |  |  |
Other countries | 2,686 |  |  | 184 |  |  |
Total | $ | 46,719 |  |  | $ | 23,750 |  |  |
Property, plant and equipment assets were physically located in the following geographic regions:
| As of December 31,
| 2020 |  | 2019
Canada | $ | 162,163 |  |  | $ | 139,160 |
United States | 2,293 |  |  | 2,103 |
Other countries | 23,143 |  |  | 18,685 |
Total | $ | 187,599 |  |  | $ | 159,948 |
The Company sells products through a limited number of major customers. Major customers are defined as customers that each individually accounted for greater than 10% of the Company’s annual revenues and greater than 10% of accounts receivable. United States During the years ended December 31, 2020 and December 31, 2019, the Company had no major customers in the U.S. segment. As of December 31, 2020, $65 in expected credit losses has been recognized on receivables from contract with customers (December 31, 2019 – $12). Refer to Note 23(a). Rest of World During the year ended December 31, 2020, the Company earned a total net revenue before excise taxes of $34,295 from four major customers (December 31, 2019 – $7,597; December 31, 2018 – $2,186 from two and one major customers, respectively), accounting for 63% of the Company’s revenues (December 31, 2019 – 32%; December 31, 2018 – 17%). As of December 31, 2020, $9 (December 31, 2019 – $124; December 31, 2018 – $nil) in expected credit losses has been recognized on receivables from contract with customers. Refer to Note 23(a).

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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