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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment and Geographic Information

16

SEGMENT AND GEOGRAPHIC INFORMATION

Segment reporting is prepared on the same basis that the Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, manages the business, makes operating decisions and assesses performance. Management has determined that the Company operates in three segments. The Company’s three segments include Cannabis, Produce and Energy. The Cannabis segment produces and supplies cannabis products to be sold to other licensed providers and provincial governments across Canada and internationally. The Produce segment produces, markets, and sells premium quality tomatoes, bell peppers and cucumbers. The Energy business produces power that it sells per a long-term contract to its one customer.  

For years ended December 31, 2020 and 2019, approximately 79% and 83%, respectively, of the Company’s total sales were in the United States. In 2020 the Company had two customers that individually represented more than 10% of total sales, comprising of 12.7% and 12.5% of sales, respectively. In 2019 the Company had three customers that individually represented more than 10% of its sales, comprising of 11.8%, 10.9% and 10.6% of sales, respectively.

As of December 31, 2020, the Company’s trade receivables had two customers that represented more than 10% of the balance of trade receivables, representing 26.3% of the balance. As of December 31, 2019, the Company’s trade receivables had one customer that represented more than 10% of the balance of trade receivables, representing 16.9% of the balance. The Company believes that its expected credit losses are limited due to the protection afforded to the Company by the Perishable Agricultural Commodities Act (the “PACA”) for its sales in the United States, which represents the majority of the Company’s annual sales and accounts receivable at year end. The PACA protection gives a claim filed under the PACA first lien on all PACA assets (which include cash and trade receivables of the debtor).

The Company’s primary operations are in the United States and Canada. Segment information as of and for the years ended December 31, 2020, 2019 and 2018:

 

 

 

2020

 

 

2019

 

 

2018

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

Produce

 

$

156,891

 

 

$

143,419

 

 

$

148,054

 

Cannabis – Canada

 

 

12,778

 

 

 

—

 

 

 

—

 

Energy – Canada

 

 

417

 

 

 

1,149

 

 

 

1,946

 

 

 

$

170,086

 

 

$

144,568

 

 

$

150,000

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Produce

 

$

1,759

 

 

$

2,543

 

 

$

2,705

 

Cannabis – Canada

 

 

243

 

 

 

—

 

 

 

—

 

Energy – Canada

 

 

54

 

 

 

71

 

 

 

89

 

 

 

$

2,056

 

 

$

2,614

 

 

$

2,794

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

$

623

 

 

$

1,036

 

 

$

311

 

Cannabis – Canada

 

 

2

 

 

 

—

 

 

 

—

 

 

 

$

625

 

 

$

1,036

 

 

$

311

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

Produce

 

$

5,356

 

 

$

6,462

 

 

$

6,155

 

Cannabis – Canada

 

 

822

 

 

 

—

 

 

 

—

 

Energy – Canada

 

 

647

 

 

 

904

 

 

 

872

 

 

 

$

6,825

 

 

$

7,366

 

 

$

7,027

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

Produce

 

$

9,621

 

 

$

(6,667

)

 

$

9,153

 

Cannabis – Canada

 

 

2,193

 

 

 

—

 

 

 

—

 

Energy – Canada

 

 

(854

)

 

 

(678

)

 

 

164

 

 

 

$

10,960

 

 

$

(7,345

)

 

$

9,317

 

 

Total assets

 

2020

 

 

2019

 

United States

 

$

110,107

 

 

$

180,462

 

Canada

 

 

243,924

 

 

 

2,946

 

 

 

$

354,031

 

 

$

183,408

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

2020

 

 

2019

 

United States

 

$

56,011

 

 

$

60,415

 

Canada

 

 

131,009

 

 

 

2,743

 

 

 

$

187,020

 

 

$

63,158