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Segment Information
 12 Months Ended
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 StatesRest of WorldCorporateTotal
Consolidated statements of net income (loss) and comprehensive income (loss)
Net revenue
Cannabis flower$— $27,932 $— $27,932 
Cannabis extracts9,495 8,759 — 18,254 
Other— 533 — 533 
Net revenue9,495 37,224 — 46,719 
Share of loss from equity accounted investees— (4,510)— (4,510)
Interest revenue16 18,585 — 18,601 
Interest expense(34)(152)— (186)
Interest income (expense), net(18)18,433 — 18,415 
Depreciation and amortization234 2,638 — 2,872 
Income tax expense323 1,024 — 1,347 
Loss from discontinued operations— (650)— (650)
Adjusted EBITDA(28,019)(98,349)(20,885)(147,253)
Consolidated balance sheets
Total assets253,745 388,351 1,283,586 1,925,682 
Investments in equity accounted investees— 19,235 — 19,235 
Goodwill178,414 1,108 — 179,522 
Purchase of property, plant and equipment385 31,027 — 31,412 
Segment data was as follows for the year ended December 31, 2019:
United StatesRest of WorldCorporateTotal
Consolidated statements of net income (loss) and comprehensive income (loss)
Net revenue
Cannabis flower$— $15,020 $— $15,020 
Cannabis extracts3,364 5,338 — 8,702 
Other— 28 — 28 
Net revenue3,364 20,386 — 23,750 
Share of loss from equity accounted investees— (2,009)— (2,009)
Interest revenue6 29,207 — 29,213 
Interest expense— (1,244)— (1,244)
Interest income, net6 27,963 — 27,969 
Depreciation and amortization46 2,044 — 2,090 
Income tax expense— — — — 
Loss from discontinued operations— (363)— (363)
Adjusted EBITDA(1,703)(84,826)(11,779)(98,308)
Consolidated balance sheets
Total assets293,985 309,854 1,486,603 2,090,442 
Investments in equity accounted investees— 557 — 557 
Goodwill213,414 1,078 — 214,492 
Purchase of property, plant and equipment259 38,405 — 38,664 
Segment data was as follows for the year ended December 31, 2018:
United StatesRest of WorldCorporateTotal
Consolidated statements of net income (loss) and comprehensive income (loss)
Net revenue
Cannabis flower$— $9,210 $— $9,210 
Cannabis extracts— 2,732 — 2,732 
Other— 179 — 179 
Net revenue— 12,121 — 12,121 
Share of loss from equity accounted investees— (723)— (723)
Interest revenue— 220 — 220 
Interest expense— (139)— (139)
Interest income, net— 81 — 81 
Depreciation and amortization— 807 — 807 
Income tax expense— — — — 
Loss from discontinued operations— (894)— (894)
Adjusted EBITDA— (10,357)— (10,357)
Consolidated balance sheets
Total assets— 183,471 — 183,471 
Investments in equity accounted investees— 2,960 — 2,960 
Goodwill— 1,314 — 1,314 
Purchase of property, plant and equipment— 88,308 — 88,308 
Adjusted EBITDA is reconciled to net income (loss) as follows for the years ended December 31, 2020, 2019 and 2018:
(in thousands of U.S. dollars)Year ended December 31, 2020
USROWCorporate
Expenses		Total
Net income (loss)$(77,368)$32,671 $(30,573)$(75,270)
Adjustments
Interest expense (income), net18 (18,433)— (18,415)
Income tax expense323 1,024 — 1,347 
Impairment loss on goodwill and intangible assets40,000 — — 40,000 
Financing and transaction costs40 — — 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 payments8,714 6,647 — 15,361 
Adjusted EBIT(28,253)(105,160)(20,885)(154,298)
Adjustments
Depreciation and amortization234 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
USROWCorporate
Expenses		Total
Net income (loss)$(3,070)$1,180,241 $(11,597)$1,165,574 
Adjustments
Interest income, net(6)(27,963)— (27,969)
Impairment loss on goodwill and intangible assets— — — — 
Repurposing charges— 7,268 — 7,268 
Financing and transaction costs117 32,091 — 32,208 
Gain on revaluation of derivative liabilities— (1,276,819)— (1,276,819)
Gain on disposal of other investments— (16,277)— (16,277)
Share of loss from equity accounted investees— 2,009 — 2,009 
Loss from discontinued operations— 363 — 363 
Other loss (income)182 (197)(182)(197)
Share-based payments900 10,719 — 11,619 
Adjusted EBIT(1,877)(88,565)(11,779)(102,221)
Adjustments
Depreciation and amortization174 3,739 — 3,913 
Adjusted EBITDA$(1,703)$(84,826)$(11,779)$(98,308)

(in thousands of U.S. dollars)Year ended December 31, 2018
Net income (loss)$(21,817)
Adjustments
Interest income, net(81)
Loss (gain) on disposal of other investments(164)
Share of loss (income) from equity accounted investees723 
Loss from discontinued operations894 
Share-based payments8,151 
Adjusted EBIT(12,294)
Adjustments
Depreciation and amortization1,937 
Adjusted EBITDA$(10,357)

Sources of net revenue were as follows:
Year ended December 31,
20202019
Cannabis flower$27,932 $15,020 
Cannabis extracts18,254 8,702 
Other533 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,
20202019
Canada$34,538 $20,202 
United States9,495 3,364 
Other countries2,686 184 
Total$46,719 $23,750 
Property, plant and equipment assets were physically located in the following geographic regions:
As of December 31,
20202019
Canada$162,163 $139,160 
United States2,293 2,103 
Other countries23,143 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).