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Investment In Joint Ventures And Minority Interests | 9 Months Ended
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Sep. 30, 2021
Equity Method Investments And Joint Ventures [Abstract] |
Investment in Joint Ventures and Minority Interests |
10 | INVESTMENTS IN JOINT VENTURES AND MINORITY INTERESTS
Village Fields Hemp USA LLC The Company’s equity income (losses) from VF Hemp for the three months ended September 30, 2021 and 2020 were $38 and ($137), respectively, and for the nine months ended September 30, 2021 and 2020 were ($175) and ($552), 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 $3,385 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 |  |  | (552 | )
Losses applied against joint venture note receivable |  |  | 552 |
Balance, December 31, 2020 |  | $ | — |
Balance, January 1, 2021 |  | $ | — |
Share of net loss |  |  | (175 | )
Losses applied against joint venture note receivable |  |  | 175 |
Balance, September 30, 2021 |  | $ | — |
Summarized financial information of VF Hemp:
|  | September 30, 2021 |  |  | December 31, 2020 |
Current assets |  |  |  |  |  |  |  |
Inventory |  | $ | 4,035 |  |  | $ | 4,035 |
Other current assets |  |  | 189 |  |  |  | 302 |
Non-current assets |  |  | 857 |  |  |  | 937 |
Current liabilities |  |  | (1,529 | ) |  |  | (1,472 | )
Non-current liabilities |  |  | (13,715 | ) |  |  | (13,697 | )
Net assets |  | $ | (10,163 | ) |  | $ | (9,895 | )
Reconciliation of net assets: |  |  |  |  |  |  |  |
Accumulated retained earnings |  | $ | (9,905 | ) |  | $ | (3,791 | )
Net loss |  |  | (268 | ) |  |  | (6,114 | )
Contributions from joint venture partners |  |  | 10 |  |  |  | 10 |
Net assets |  | $ | (10,163 | ) |  | $ | (9,895 | )
During the nine months ended September 30, 2021, the Company exercised a portion of its options and purchased additional shares in Australia-based Altum International Pty Ltd (“Altum”), bringing the Company’s total investment in Altum to 11.9%. In September 2021, the Company entered into an option agreement whereby the Company received the irrevocable right to acquire an 80% ownership interest (the “Option Agreement”) in Netherlands-based Leli Holland B.V. (“Leli”) upon payment of EUR50,000 (the “Option”). The Option Agreement allows the Company to acquire 80% of Leli’s shares for EUR3,950,000, of which EUR950,000 is due and payable to Leli’s shareholders upon the exercise of the Option and the remainder due in three equal installments subject to the achievement of certain project development milestones. The option is exercisable at the sole discretion of the Company for a period of 5 years. Leli is one of ten applicants selected to receive a license (subject to customary government approval) to legally cultivate and distribute cannabis to retailers when the Dutch government implements its Experiment to Investigate Closed Cannabis Supply Chains (“Dutch Supply Chain Experiment”). The Dutch Supply Chain Experiment is specified by the Dutch government to be approximately 65,000 kilograms of dried flower annually from the ten approved producers during the first year. Leli and Village Farms plan to construct two indoor CEA production facilities, leveraging Leli’s track record managing complex regulatory and approval procedures in the Netherlands at both the federal and local levels and Village Farms’ three-plus decades as a vertically integrated CEA grower, as well as its extensive experience in cultivation, product development and commercialization in the Canadian legal recreational cannabis market. As the majority owner of Leli, the Company will be responsible for the development of the project and product commercialization throughout the fully vertically integrated business model.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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