On February 27, 2019, the Company entered into a joint venture with Nature Crisp, LLC (“Nature Crisp”) to form VF Hemp for the objective of outdoor cultivation of high percentage CBD hemp and CBD extraction in multiple states throughout the United States. VF Hemp is 65% owned by the Company and 35% owned by Nature Crisp. Under the terms of the VF Hemp Joint Venture Agreement, the Company will lend up to approximately US$15 million to VF Hemp for start-up costs and working capital.

The Company accounts for its investment in VF Hemp, in accordance with ASC 323, using the equity method. The Company has determined that VF Hemp is a VIE, however it does not consolidate VF Hemp because the Company is not the primary beneficiary. Although the Company was able to exercise significant influence over the operating and financial policies of VF Hemp through its 65% ownership interest and joint power arrangement with Nature Crisp, the Company shares joint control of the Board of Directors and therefore is not the primary beneficiary. The Company’s maximum exposure to loss as a result of its involvement with VF Hemp relates directly to the recovery of the outstanding loan to VF Hemp of $3,545.

On March 25, 2019, the Company entered into a Grid Loan Agreement (the “Grid Loan”) with VF Hemp. The Grid Loan has a maturity date of March 25, 2022 and bears simple interest at the rate of 8% per annum, calculated monthly. During the fourth quarter of 2020, VF Hemp wrote its inventory to net realizable value and recognized a loss of $5,163. As a result of the inventory write-down, the Company also recognized an impairment of $3,791 on the outstanding grid loan with VF Hemp. As of December 31, 2020, the balance of the grid loan was $3,545 (note 14).

The Company is not legally obligated for the debts, obligations or liabilities of VF Hemp.

	December 31, 2020			December 31, 2019
Current assets
Inventory	$	4,035		$	9,308
Other current assets		302			546
Non-current assets		937			1,476
Current liabilities		(1,472	)		(1,788	)
Non-current liabilities		(13,697	)		(13,323	)
Net assets	$	(9,895	)	$	(3,781	)
Reconciliation of net assets:
Accumulated retained earnings	$	(3,791	)	$	(3,791	)
Net loss for the year ended December 31, 2020		(6,114	)		—
Contributions from joint venture partners		10			10
Net assets	$	(9,895	)	$	(3,781	)

	December 31, 2020			December 31, 2019
Revenue	$	348		$	106
Cost of sales		(482	)		(121	)
Depreciation		(244	)		(111	)
General and administrative expenses		(631	)		(869	)
Interest expense		(345	)		(440	)
Write down of inventory		(5,038	)		(2,356	)
Other		278			—
Net loss	$	(6,114	)	$	(3,791	)

On May 21, 2019, the Company entered into a joint venture with Arkansas Valley Hemp, LLC (“AV Hemp”) for the objective of outdoor cultivation of high percentage CBD hemp and CBD extraction in Colorado. The joint venture, AVGG Hemp, was 60% owned by the Company, 35% owned by AV Hemp, and 5% owned by VF Hemp. Subsequent to year end, all of the hemp was destroyed by a severe windstorm. As a result of the loss, the Company wrote off its $1,184 loan to AVGG Hemp during the year ended December 31, 2019.

During 2020 the Company acquired minority interests in two international companies in order to leverage its experience and expand into international cannabis and CBD opportunities. In July 2020, the Company invested $226, for an approximate 16% minority interest ownership in DutchCanGrow Inc. (“DCG”), a Netherlands-based cannabis enterprise. In August 2020, the Company invested $1,000 for a 6.6% minority interest ownership in Australia-based Altum International Pty Ltd (“Altum”), with an option to increase its ownership in Altum on similar terms. On February 8, 2021, the Company exercised an option to increase the equity investment of Altum from 6.6% to just under 10%. Altum is a cannabinoid platform with a focus on the distribution and marketing of CBD products in the Asia-Pacific region.