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Segment and Geographic Information
 12 Months Ended
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