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Loans Receivable, net | 6 Months Ended
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Jun. 30, 2024
Receivables [Abstract] |
Loans Receivable, net | Loans Receivable, net Loans receivable, net consists of the following:
|  | As of June 30, 2024 |  | As of December 31, 2023
GrowCo Credit Facility |  | $ | 4,875 |  |  | $ | 5,034 |
Add: Current portion of accrued interest |  | — |  |  | 507 |
Total current portion of loans receivable, net |  | 4,875 |  |  | 5,541 |
GrowCo Credit Facility |  | 57,271 |  |  | 53,638 |
Mucci Promissory Note |  | 13,929 |  |  | 13,379 |
Cannasoul Collaboration Loan |  | 1,692 |  |  | 1,771 |
Add: Long-term portion of accrued interest |  | 273 |  |  | 248 |
Total long-term portion of loans receivable, net |  | 73,165 |  |  | 69,036 |
Total loans receivable, net |  | $ | 78,040 |  |  | $ | 74,577 |
Cronos GrowCo Credit Facility On August 23, 2019, the Company, as lender, and Cronos GrowCo, as borrower, entered into a senior secured credit agreement for an aggregate principal amount of C$100,000 (the “GrowCo Credit Facility”). The GrowCo Credit Facility is secured by substantially all present and after-acquired personal and real property of Cronos GrowCo. In August 2021, the GrowCo Credit Facility was amended to increase the aggregate principal amount available to C$105,000. In June 2024, the GrowCo Credit Facility was amended to increase the aggregate principal amount available by C$70,000 by providing a second secured non-revolving credit facility (“Term Loan B”). The funds from Term Loan B will be used to expand Cronos GrowCo’s purpose-built cannabis facility and will mature 10 years after the commencement of sales from the expansion area, following which, principal will be repaid on a quarterly basis. Interest on Term Loan B is payable on a quarterly basis until maturity beginning after the first borrowing under Term Loan B. Prior to July 1, 2024, only C$12,000 of the C$70,000 increased principal availability could be drawn, which Cronos GrowCo drew in full on June 20, 2024. As of June 30, 2024 and December 31, 2023, Cronos GrowCo had drawn C$116,000 and C$104,000 ($84,833 and $78,532, respectively), respectively from the GrowCo Credit Facility. The interest rate on the outstanding borrowings is the Canadian Prime Rate plus 1.25%, with interest payments due quarterly. Principal payments of C$1,000 commenced in March 2022 and are currently C$1,667, due quarterly. For the three months ended June 30, 2024, Cronos GrowCo repaid C$1,667 ($1,216) in principal and C$1,920 ($1,401) in interest related to the GrowCo Credit Facility. For the six months ended June 30, 2024, Cronos GrowCo repaid C$3,333 ($2,447) in principal and C$3,862 ($2,835) in interest related to the GrowCo Credit Facility. As of June 30, 2024, Cronos GrowCo had repaid an aggregate C$14,833 ($10,848) and C$24,384 ($17,832) in principal and interest, respectively, under the terms of the GrowCo Credit Facility. Beginning in the third quarter of 2024, the results of Cronos GrowCo will be consolidated into the results of the Company, and the Cronos GrowCo Credit Facility will be reclassified as an intercompany transaction and eliminated upon consolidation. For more information, see Note 12 “Subsequent Events.” Mucci Promissory Note On June 28, 2019, the Company entered into a promissory note receivable agreement (the “Mucci Promissory Note”) for C$16,350 (approximately $11,957) with the Cronos GrowCo joint venture partner (“Mucci”). The Mucci Promissory Note is secured by a general security agreement covering all the assets of Mucci. On September 30, 2022, the Mucci Promissory Note was amended and restated to increase the interest rate from 3.95% to the Canadian Prime Rate plus 1.25%, change the interest payments from quarterly to annual, and defer Mucci’s initial cash interest payment from September 30, 2022 to July 1, 2023. On June 20, 2024, the Mucci Promissory Note was amended and restated. As a result, interest accrued on the Mucci Promissory Note between July 1, 2023 and July 1, 2024 was capitalized as part of the principal balance, which increased the loans receivable and decreased interest receivable by $974 on the condensed consolidated balance sheets as of June 30, 2024. As of July 1, 2024, interest is accrued and to be paid in cash beginning on July 1, 2025. Prior to July 1, 2022, interest accrued on the Mucci Promissory Note was capitalized as part of the principal balance. As of July 1, 2022, interest was accrued and to be paid in cash beginning on July 1, 2023. Prior to 2023, there were no repayments of principal or interest on the Mucci Promissory Note. For the three and six months ended June 30, 2023, Mucci made a payment of C$1,750 (approximately $1,322) under the Mucci Promissory Note, with C$1,187 ($897) related to accrued interest and C$563 ($425) related to outstanding principal. For the three and six months ended June 30, 2024, there were no repayments of principal or interest on the Mucci Promissory Note. Cannasoul Collaboration Loan As of both June 30, 2024 and December 31, 2023, Cannasoul Lab Services Ltd. has received ILS 8,297 (approximately $2,198 and $2,294, respectively), from the Cannasoul Collaboration Loan. Expected credit loss allowances on the Company’s long-term financial assets for the six months ended June 30, 2024 and 2023 were comprised of the following items:
| As of April 1, 2024 |  | Increase(i) |  | Foreign exchange effect |  | As of June 30, 2024
GrowCo Credit Facility | $ | 10,740 |  |  | $ | 1,207 |  |  | $ | (109) |  |  | $ | 11,838 |
Mucci Promissory Note | 89 |  |  | 1 |  |  | — |  |  | 90 |
Cannasoul Collaboration Loan | 518 |  |  | 4 |  |  | (16) |  |  | 506 |
| $ | 11,347 |  |  | $ | 1,212 |  |  | $ | (125) |  |  | $ | 12,434 |
| As of January 1, 2024 |  | Increase(i) |  | Foreign exchange effect |  | As of June 30, 2024
GrowCo Credit Facility | $ | 11,176 |  |  | $ | 1,010 |  |  | $ | (348) |  |  | $ | 11,838 |
Mucci Promissory Note | 89 |  |  | 3 |  |  | (2) |  |  | 90 |
Cannasoul Collaboration Loan | 524 |  |  | 8 |  |  | (26) |  |  | 506 |
| $ | 11,789 |  |  | $ | 1,021 |  |  | $ | (376) |  |  | $ | 12,434 |
| As of April 1, 2023 |  | Increase (decrease) |  | Foreign exchange effect |  | As of June 30, 2023
GrowCo Credit Facility | $ | 11,719 |  |  | $ | (379) |  |  | $ | 239 |  |  | $ | 11,579 |
Mucci Promissory Note | 91 |  |  | (7) |  |  | 2 |  |  | 86 |
Cannasoul Collaboration Loan | 514 |  |  | 4 |  |  | (15) |  |  | 503 |
| $ | 12,324 |  |  | $ | (382) |  |  | $ | 226 |  |  | $ | 12,168 |
| As of January 1, 2023 |  | Increase (decrease) |  | Foreign exchange effect |  | As of June 30, 2023
GrowCo Credit Facility | $ | 12,455 |  |  | $ | (1,149) |  |  | $ | 273 |  |  | $ | 11,579 |
Mucci Promissory Note | 89 |  |  | (5) |  |  | 2 |  |  | 86 |
Cannasoul Collaboration Loan | 522 |  |  | 8 |  |  | (27) |  |  | 503 |
| $ | 13,066 |  |  | $ | (1,146) |  |  | $ | 248 |  |  | $ | 12,168 |
(i)During the three and six months ended June 30, 2024, $1,212 and $1,021, respectively, were recorded as increases to general and administrative expenses on the condensed consolidated statements of net loss and comprehensive income (loss) primarily as a result of the increased loans under the GrowCo Credit Facility. During the three and six months ended June 30, 2023, $382 and $1,146, respectively, were recorded as decreases to general and administrative expenses on the condensed consolidated statements of net loss and comprehensive income (loss) as a result of adjustments to our expected credit losses.

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- Definition The entire disclosure for claims held for amounts due a company, excluding disclosure for allowance for credit losses. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Also excludes disclosure for financing receivables. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent + Details
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