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Segment and Geographic Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information

10. 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 chief operating decision-maker (“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 Cannabis - Netherlands (previously Leli).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 across the United States. The Clean Energy business receives a royalty representing a portion of the natural gas that is sold to one customer pursuant to its long-term contract. The Cannabis - Netherlands segment produces and supplies cannabis products in the Netherlands, supplying designated coffee shops.

The accounting policies of the segments are the same as those described in the summary of business, basis of presentation and 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 CODM 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 Three Months Ended March 31, 2025

 

 

VF Fresh
(Produce)

 

 

Cannabis Canada

 

 

Cannabis U.S.

 

 

Clean
Energy

 

 

Cannabis Netherlands

 

 

Total

 

Sales to external customers

$

37,421

 

 

$

34,837

 

 

$

3,904

 

 

$

426

 

 

$

486

 

 

$

77,074

 

Cost of sales

 

(41,703

)

 

 

(22,362

)

 

 

(1,311

)

 

 

(73

)

 

 

(285

)

 

 

(65,734

)

Selling, general and administrative expenses

 

(2,875

)

 

 

(8,762

)

 

 

(2,535

)

 

 

(28

)

 

 

(439

)

 

 

(14,639

)

Segment operating (loss) income

$

(7,157

)

 

$

3,713

 

 

$

58

 

 

$

325

 

 

$

(238

)

 

$

(3,299

)

Reconciliation of segment operating (loss) income to net loss before taxes

 

Other expense, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(693

)

Other corporate expenses (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,140

)

Loss before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(6,132

)

 

 

For the Three Months Ended March 31, 2024

 

 

VF Fresh
(Produce)

 

 

Cannabis Canada

 

 

Cannabis U.S.

 

 

Clean
Energy

 

 

Cannabis Netherlands

 

 

Total

 

Sales to external customers

$

36,094

 

 

$

37,446

 

 

$

4,537

 

 

$

—

 

 

$

—

 

 

$

78,077

 

Cost of sales

 

(32,784

)

 

 

(27,938

)

 

 

(1,842

)

 

 

—

 

 

 

—

 

 

 

(62,564

)

Selling, general and administrative expenses

 

(2,693

)

 

 

(7,704

)

 

 

(3,406

)

 

 

(20

)

 

 

(363

)

 

 

(14,186

)

Segment operating income (loss)

$

617

 

 

$

1,804

 

 

$

(711

)

 

$

(20

)

 

$

(363

)

 

$

1,327

 

Reconciliation of segment operating (loss) income to net loss before taxes

 

Other expense, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,485

)

Other corporate expenses (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,201

)

Loss before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(2,359

)
(1)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(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 noncash items, and expenditures for capital assets by reportable segment:

 

For the Three Months Ended March 31, 2025

 

 

VF Fresh
(Produce)

 

Cannabis Canada

 

Cannabis U.S.

 

Clean
Energy

 

Cannabis Netherlands

 

Segment Totals

 

Corporate

 

Consolidated Totals

 

Interest income

 

—

 

 

51

 

 

—

 

 

—

 

 

—

 

 

51

 

 

24

 

 

75

 

Interest expense

 

515

 

 

191

 

 

—

 

 

—

 

 

—

 

 

706

 

 

—

 

 

706

 

Depreciation and amortization

 

1,991

 

 

2,574

 

 

49

 

 

—

 

 

315

 

 

4,929

 

 

44

 

 

4,973

 

Share based compensation

 

13

 

 

41

 

 

7

 

 

—

 

 

—

 

 

61

 

 

84

 

 

145

 

Other significant noncash items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash lease expense

 

375

 

 

21

 

 

136

 

 

—

 

 

—

 

 

532

 

 

—

 

 

532

 

Expenditures for segment assets

 

1,307

 

 

1,058

 

 

8

 

 

—

 

 

166

 

 

2,539

 

 

—

 

 

2,539

 

 

 

For the Three Months Ended March 31, 2024

 

 

VF Fresh
(Produce)

 

Cannabis Canada

 

Cannabis U.S.

 

Clean
Energy

 

Cannabis Netherlands

 

Segment Totals

 

Corporate

 

Consolidated Totals

 

Interest income

 

2

 

 

50

 

 

—

 

 

—

 

 

—

 

 

52

 

 

154

 

 

206

 

Interest expense

 

572

 

 

345

 

 

—

 

 

—

 

 

—

 

 

917

 

 

—

 

 

917

 

Depreciation and amortization

 

1,334

 

 

2,796

 

 

54

 

 

—

 

 

314

 

 

4,498

 

 

60

 

 

4,558

 

Share based compensation

 

—

 

 

55

 

 

42

 

 

—

 

 

—

 

 

97

 

 

308

 

 

405

 

Other significant noncash items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash lease expense

 

470

 

 

22

 

 

139

 

 

—

 

 

—

 

 

631

 

 

—

 

 

631

 

Expenditures for segment assets

 

1,063

 

 

82

 

 

4

 

 

—

 

 

727

 

 

1,876

 

 

—

 

 

1,876

 

The following tables summarizes our total assets by reportable segment:

 

 

March 31, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

Produce

 

$

86,538

 

 

$

97,332

 

Cannabis - Canada

 

 

264,463

 

 

 

266,433

 

Cannabis - United States

 

 

6,662

 

 

 

6,728

 

Clean Energy

 

 

523

 

 

 

360

 

Cannabis - Netherlands

 

 

12,109

 

 

 

11,093

 

Total assets for reportable segments

 

$

370,295

 

 

$

381,946

 

Corporate

 

 

6,809

 

 

 

7,360

 

Consolidated total

 

$

377,104

 

 

$

389,306

 

The Company’s primary operations are in the United States and Canada. The following tables summarizes our assets by geographic location:

Total assets

 

March 31, 2025

 

 

December 31, 2024

 

United States

 

$

73,492

 

 

$

87,894

 

Canada

 

 

291,503

 

 

 

290,319

 

Netherlands

 

 

12,109

 

 

 

11,093

 

 

$

377,104

 

 

$

389,306

 

 

 

 

 

 

 

 

Long-lived assets

 

March 31, 2025

 

 

December 31, 2024

 

United States

 

$

43,115

 

 

$

43,686

 

Canada

 

 

218,625

 

 

 

219,735

 

Netherlands

 

 

10,490

 

 

 

9,866

 

 

$

272,230

 

 

$

273,287