Investment In Joint Ventures And Minority Interests

6 Months Ended

Jun. 30, 2021

Equity Method Investments And Joint Ventures [Abstract]

Investment in Joint Ventures and Minority Interests

9	INVESTMENT IN JOINT VENTURES AND MINORITY INTERESTS

Village Fields Hemp USA LLC

The Company’s equity losses from VF Hemp for the three months ended June 30, 2021 and 2020 were ($86) and ($113), respectively, and for the six months ended June 30, 2021 and 2020 were ($213) and ($415), respectively. The Company’s maximum exposure to loss as a result of its involvement with VF Hemp is directly related to the recovery of the $3,344 loan outstanding to VF Hemp.

The Company’s share of the joint venture consisted of the following:

Balance, January 1, 2020	$	—
Share of net loss		(3,975	)
Losses applied against joint venture note receivable		3,975
Balance, December 31, 2020	$	—
Balance, January 1, 2021	$	—
Share of net loss		(213	)
Losses applied against joint venture note receivable		213
Balance, June 30, 2021	$	—

Summarized financial information of VF Hemp:

	June 30, 2021			December 31, 2020
Current assets
Inventory	$	4,035		$	4,035
Other current assets		202			302
Non-current assets		758			937
Current liabilities		(1,508	)		(1,472	)
Non-current liabilities		(13,709	)		(13,697	)
Net assets	$	(10,222	)	$	(9,895	)
Reconciliation of net assets:
Accumulated retained earnings	$	(9,905	)	$	(3,791	)
Net loss		(327	)		(6,114	)
Contributions from joint venture partners		10			10
Net assets	$	(10,222	)	$	(9,895	)

During the six months ended June 30, 2021, the Company exercised a portion of its option to make an additional equity investment in Australia-based Altum International Pty Ltd (“Altum”). In February 2021, the Company exercised 204,000 options at a price of $2.45 per option, thereby increasing its ownership to just under 10.0%. In May 2021, the Company exercised the remaining 204,570 options at a price of $2.45 per option, thereby further increasing its ownership to 12.2%.