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.

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	$	—

	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.