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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment and Geographic Information | 14. SEGMENT AND GEOGRAPHIC INFORMATION The Company regularly monitors its reportable segments to determine if changes in facts and circumstances would indicate whether changes in the determination or aggregation of operating segments are necessary. In the fourth quarter of 2024, the Company determined that Leli had met the quantitative threshold to be a reportable segment. In addition, during the fourth quarter of 2024, the CODM changed the segment profit measure to operating income or loss from gross margin. We believe that segment operating (loss) income is a more useful measure because it allows management, analysts, investors, and other interested parties to evaluate the profitability of our business operations before the effects of certain expenses that directly arise from non-operating activities (other income/expense), financing decisions (interest), and tax strategies (income taxes). These changes have been applied to all periods presented. Segment reporting is prepared on the same basis that the Company’s Chief Executive Officer, who is the CODM, manages the business, makes operating decisions and assesses performance. Management has determined that the Company operates in five reportable segments: Produce, Cannabis-Canada, Cannabis-U.S., Clean Energy, and Leli (previously Cannabis - Netherlands). The Produce segment produces, markets and sells premium quality tomatoes, bell peppers and cucumbers. The Cannabis-Canada segment produces and supplies cannabis products to be sold to other licensed providers and provincial governments across Canada and internationally. The Cannabis-U.S. segment develops and sells high-quality, CBD-based health and wellness products including ingestible, edible and topical applications. The Energy business receives a royalty representing a portion of the natural gas that is sold to one customer pursuant to it's long-term contract. The Leli segment produces and supplies cannabis products to designated coffee shops in the Netherlands. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance for all of its reportable segments based on segment operating (loss) income from operations. For all of its reportable segments, the chief operating decision maker uses segment operating (loss) income to allocate resources (including employees, property, and financial or capital resources) for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for the (loss) income when making decisions about allocating capital and personnel to the segments. The CODM also uses segment (loss) income to assess the performance for each segment by comparing the results with one another. The following tables reflect the reconciliation of segment revenue, measures of a segments profit or loss, and significant segment expenses reconciled to the consolidated loss before income taxes:
| For the Year Ended December 31, 2024 |
| VF Fresh (Produce) |  |  | Cannabis Canada |  |  | Cannabis U.S. |  |  | Clean Energy |  |  | Leli |  |  | Total |
Sales from external customers | $ | 169,183 |  |  | $ | 148,856 |  |  | $ | 17,390 |  |  | $ | 752 |  |  | $ | — |  |  | $ | 336,181 |
Cost of sales |  | (164,125 | ) |  |  | (118,172 | ) |  |  | (6,355 | ) |  |  | (129 | ) |  |  | — |  |  |  | (288,781 | )
Selling, general and administrative expenses |  | (12,249 | ) |  |  | (34,028 | ) |  |  | (11,990 | ) |  |  | (38 | ) |  |  | (1,555 | ) |  |  | (59,860 | )
Segment operating (loss) income | $ | (7,191 | ) |  | $ | (3,344 | ) |  | $ | (955 | ) |  | $ | 585 |  |  | $ | (1,555 | ) |  | $ | (12,460 | )
Reconciliation of segment operating (loss) income to net loss before taxes and loss from equity method investments |
Other expense, net (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,279 | )
Impairment of goodwill and intangibles |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (11,939 | )
Other impairments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (439 | )
Other corporate expenses (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (11,188 | )
Loss before taxes and loss from equity method investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (37,305 | )
| For the Year Ended December 31, 2023 |
| VF Fresh (Produce) |  |  | Cannabis Canada |  |  | Cannabis U.S. |  |  | Clean Energy |  |  | Leli |  |  | Total |
Sales from external customers | $ | 151,243 |  |  | $ | 114,030 |  |  | $ | 20,330 |  |  | $ | — |  |  | $ | — |  |  | $ | 285,603 |
Cost of sales |  | (151,064 | ) |  |  | (78,090 | ) |  |  | (7,002 | ) |  |  | (21 | ) |  |  | — |  |  |  | (236,177 | )
Selling, general and administrative expenses |  | (10,625 | ) |  |  | (29,275 | ) |  |  | (13,118 | ) |  |  | (32 | ) |  |  | (1,265 | ) |  |  | (54,315 | )
Segment operating (loss) income | $ | (10,446 | ) |  | $ | 6,665 |  |  | $ | 210 |  |  | $ | (53 | ) |  | $ | (1,265 | ) |  | $ | (4,889 | )
Reconciliation of segment operating (loss) income to net loss before taxes and loss from equity method investments |
Other income, net (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,727 |
Impairment of goodwill and intangibles |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (14,020 | )
Other corporate expenses (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (11,186 | )
Loss before taxes and loss from equity method investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (27,368 | )
| For the Year Ended December 31, 2022 |
| VF Fresh (Produce) |  |  | Cannabis Canada |  |  | Cannabis U.S. |  |  | Clean Energy |  |  | Leli |  |  | Total |
Sales from external customers | $ | 160,388 |  |  | $ | 109,882 |  |  | $ | 23,302 |  |  | $ | — |  |  | $ | — |  |  | $ | 293,572 |
Cost of sales |  | (177,777 | ) |  |  | (80,494 | ) |  |  | (7,643 | ) |  |  | (161 | ) |  |  | — |  |  |  | (266,075 | )
Selling, general and administrative expenses |  | (12,004 | ) |  |  | (31,608 | ) |  |  | (16,305 | ) |  |  | (58 | ) |  |  | (275 | ) |  |  | (60,250 | )
Segment operating (loss) income | $ | (29,393 | ) |  | $ | (2,220 | ) |  | $ | (646 | ) |  | $ | (219 | ) |  | $ | (275 | ) |  | $ | (32,753 | )
Reconciliation of segment operating (loss) income to net loss before taxes and loss from equity method investments |
Other expense, net (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,407 | )
Write off of joint venture loan |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (592 | )
Impairment of goodwill and intangibles |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (43,299 | )
Other corporate expenses (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (12,015 | )
Loss before taxes and loss from equity method investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (94,066 | )
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. (2) Other income (expense), net is comprised of Interest expense, interest income, foreign exchange (loss) gain, other income (expense). (3) Other corporate expenses are comprised of expenses related to centralized corporate functions such as accounting, treasury, information technology, legal, human services, and internal audit expenses. The following tables summarizes our interest income, interest expense, depreciation and amortization, other significant non-cash items, and expenditures for capital assets by operating segment:
| For the Year Ended December 31, 2024 |
| VF Fresh (Produce) |  | Cannabis Canada |  | Cannabis U.S. |  | Clean Energy |  | Leli |  | Segment Totals |  | Corporate |  | Consolidated Totals |
Interest income |  | 4 |  |  | 484 |  |  | — |  |  | — |  |  | — |  |  | 488 |  |  | 426 |  |  | 914 |
Interest expense |  | 2,237 |  |  | 1,112 |  |  | — |  |  | 16 |  |  | — |  |  | 3,365 |  |  | — |  |  | 3,365 |
Depreciation and amortization |  | 5,373 |  |  | 11,790 |  |  | 204 |  |  | — |  |  | 1,275 |  |  | 18,642 |  |  | 196 |  |  | 18,838 |
Share based compensation |  | — |  |  | 166 |  |  | 79 |  |  | — |  |  | — |  |  | 245 |  |  | 3,502 |  |  | 3,747 |
Other significant noncash items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-cash lease expense |  | 1,798 |  |  | 86 |  |  | 518 |  |  | — |  |  | — |  |  | 2,402 |  |  | — |  |  | 2,402 |
Impairments of goodwill and intangibles |  | — |  |  | — |  |  | 11,939 |  |  | — |  |  | — |  |  | 11,939 |  |  | — |  |  | 11,939 |
Inventory and other impairments |  | — |  |  | 10,522 |  |  | 439 |  |  | — |  |  | — |  |  | 10,961 |  |  | — |  |  | 10,961 |
Expenditures for segment assets |  | 3,724 |  |  | 261 |  |  | 37 |  |  | — |  |  | 6,061 |  |  | 10,083 |  |  | — |  |  | 10,083 |
| For the Year Ended December 31, 2023 |
| VF Fresh (Produce) |  | Cannabis Canada |  | Cannabis U.S. |  | Clean Energy |  | Leli |  | Segment Totals |  | Corporate |  | Consolidated Totals |
Interest income |  | 9 |  |  | 157 |  |  | 24 |  |  | — |  |  | — |  |  | 190 |  |  | 828 |  |  | 1,018 |
Interest expense |  | 2,332 |  |  | 2,177 |  |  | — |  |  | — |  |  | — |  |  | 4,509 |  |  | — |  |  | 4,509 |
Depreciation and amortization |  | 5,136 |  |  | 9,123 |  |  | 335 |  |  | — |  |  | 1,081 |  |  | 15,675 |  |  | 251 |  |  | 15,926 |
Share based compensation |  | — |  |  | 61 |  |  | 317 |  |  | — |  |  | — |  |  | 378 |  |  | 2,733 |  |  | 3,111 |
Other significant noncash items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-cash lease expense |  | 1,407 |  |  | 118 |  |  | 578 |  |  | — |  |  | — |  |  | 2,103 |  |  | — |  |  | 2,103 |
Impairments of goodwill and intangibles |  | — |  |  | — |  |  | 14,020 |  |  | — |  |  | — |  |  | 14,020 |  |  | — |  |  | 14,020 |
Expenditures for segment assets |  | 4,428 |  |  | 914 |  |  | 218 |  |  | — |  |  | 958 |  |  | 6,518 |  |  | — |  |  | 6,518 |
| For the Year Ended December 31, 2022 |
| VF Fresh (Produce) |  | Cannabis Canada |  | Cannabis U.S. |  | Clean Energy |  | Leli |  | Segment Totals |  | Corporate |  | Consolidated Totals |
Interest income |  | 1 |  |  | 11 |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 195 |  |  | 207 |
Interest expense |  | 1,471 |  |  | 1,769 |  |  | — |  |  | 4 |  |  | — |  |  | 3,244 |  |  | — |  |  | 3,244 |
Depreciation and amortization |  | 5,044 |  |  | 7,376 |  |  | 564 |  |  | — |  |  | — |  |  | 12,984 |  |  | — |  |  | 12,984 |
Share based compensation |  | — |  |  | 1,373 |  |  | 305 |  |  | — |  |  | — |  |  | 1,678 |  |  | 2,309 |  |  | 3,987 |
Other significant noncash items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-cash lease expense |  | 1,190 |  |  | 69 |  |  | 539 |  |  | — |  |  | — |  |  | 1,798 |  |  | — |  |  | 1,798 |
Impairments of goodwill and intangibles |  | — |  |  | — |  |  | 43,299 |  |  | — |  |  | — |  |  | 43,299 |  |  | — |  |  | 43,299 |
Inventory Impairments |  | — |  |  | 11,038 |  |  | — |  |  | — |  |  | — |  |  | 11,038 |  |  | — |  |  | 11,038 |
Expenditures for segment assets |  | 2,520 |  |  | 11,783 |  |  | (11 | ) |  | — |  |  | — |  |  | 14,292 |  |  | — |  |  | 14,292 |
The following tables summarizes our total assets by operating segment for the years ended December 31:
|  | 2024 |  |  | 2023 |
Assets |  |  |  |  |  |
Produce |  | $ | 97,332 |  |  | $ | 94,695 |
Cannabis - Canada |  |  | 266,433 |  |  |  | 320,942 |
Cannabis - United States |  |  | 6,728 |  |  |  | 21,861 |
Clean Energy |  |  | 360 |  |  |  | 2 |
Leli |  |  | 11,093 |  |  |  | 6,145 |
Total assets for reportable segments |  | $ | 381,946 |  |  | $ | 443,645 |
Corporate |  |  | 7,360 |  |  |  | 20,344 |
Consolidated total |  | $ | 389,306 |  |  | $ | 463,989 |
For years ended December 31, 2024, 2023 and 2022, approximately 50%, 54% and 51%, respectively, of the Company’s total sales were in the United States and approximately 48%, 44%, and 48%, respectively, of the Company's total sales were in Canada. In 2024, the Company had two customers that individually represented more than 10% of total sales, comprising of 14.1% and 10.2%. In 2023, the Company had one customer that individually represented more than 10% of total sales, comprising of 11.9%. In 2022, the Company had one customer that individually represented more than 10% of total sales, comprising of 14.6%. As of December 31, 2024, the Company’s trade receivables included two customers that represented more than 10% of the balance of trade receivables, representing 26.7% and 13.4% of the balance. As of December 31, 2023, the Company’s trade receivables included two customers that represented more than 10% of the balance of trade receivables, representing 21.1% and 10.2% of the balance, respectively. The Company’s primary operations are in the United States and Canada. The following tables summarizes our assets by geographic location for the years ended December 31:
Total assets |  | 2024 |  |  | 2023 |
United States |  | $ | 87,894 |  |  | $ | 100,345 |
Canada |  |  | 290,319 |  |  |  | 357,499 |
Netherlands |  |  | 11,093 |  |  |  | 6,145 |
|  | $ | 389,306 |  |  | $ | 463,989 |
Long-lived assets |  | 2024 |  |  | 2023 |
United States |  | $ | 43,686 |  |  | $ | 60,553 |
Canada |  |  | 219,735 |  |  |  | 245,523 |
Netherlands |  |  | 9,866 |  |  |  | 6,145 |
|  | $ | 273,287 |  |  | $ | 312,221 |

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