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Segment and Geographic Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information

12. 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 from gross margin to operating income or loss. 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: Cannabis-Canada, Cannabis-U.S., Cannabis - Netherlands (previously Leli), Produce, and Clean Energy. 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 Cannabis - Netherlands segment produces and supplies cannabis products in the Netherlands, supplying designated coffee shops. The Produce segment, subsequent to the Transaction, produces premium quality tomatoes. 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 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 income (loss) from operations.

For all of its reportable segments, the CODM uses segment operating income (loss) 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 income (loss) when making decisions about allocating capital and personnel to the segments. The CODM also uses segment income (loss) to assess the performance for each segment by comparing the results with one another.

Discontinued operations are not included in the applicable reportable segments.

The following tables reflect the reconciliation of segment revenue and significant segment expenses from continuing operations reconciled to the consolidated income (loss) from continuing operations before income taxes and equity method investments:

 

For the Three Months Ended September 30, 2025

 

 

Produce(4)

 

 

Cannabis Canada

 

 

Cannabis U.S.

 

 

Clean
Energy

 

 

Cannabis Netherlands

 

 

Total

 

Sales to external customers

$

12,841

 

 

$

46,583

 

 

$

3,337

 

 

$

393

 

 

$

3,587

 

 

$

66,741

 

Cost of sales

 

(10,833

)

 

 

(20,628

)

 

 

(1,348

)

 

 

(66

)

 

 

(1,928

)

 

 

(34,803

)

Selling, general and administrative expenses

 

(217

)

 

 

(9,140

)

 

 

(2,425

)

 

 

(22

)

 

 

(702

)

 

 

(12,506

)

Segment operating income (loss)

$

1,791

 

 

$

16,815

 

 

$

(436

)

 

$

305

 

 

$

957

 

 

$

19,432

 

Reconciliation of segment operating income (loss) to income from continuing operations before taxes and income from equity method investments(1)

 

Other expense, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(806

)

Other corporate expenses (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,093

)

Income from continuing operations before taxes and income from equity method investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

15,533

 

 

 

For the Three Months Ended September 30, 2024

 

 

Produce

 

 

Cannabis Canada

 

 

Cannabis U.S.

 

 

Clean
Energy

 

 

Cannabis Netherlands

 

 

Total

 

Sales to external customers

$

14,340

 

 

$

36,463

 

 

$

3,943

 

 

$

192

 

 

$

—

 

 

$

54,938

 

Cost of sales

 

(12,930

)

 

 

(26,864

)

 

 

(1,443

)

 

 

(64

)

 

 

—

 

 

 

(41,301

)

Selling, general and administrative expenses

 

(715

)

 

 

(7,983

)

 

 

(2,692

)

 

 

(1

)

 

 

(385

)

 

 

(11,776

)

Segment operating income (loss)

$

695

 

 

$

1,616

 

 

$

(192

)

 

$

127

 

 

$

(385

)

 

$

1,861

 

Reconciliation of segment operating income (loss) to loss from continuing operations before taxes and income from equity method investments(1)

 

Other income, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

181

 

Goodwill and intangible asset impairments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Other corporate expenses (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,789

)

Loss from continuing operations before taxes and income from equity method investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(747

)

 

 

For the Nine Months Ended September 30, 2025

 

 

Produce(4)

 

 

Cannabis Canada

 

 

Cannabis U.S.

 

 

Clean
Energy

 

 

Cannabis Netherlands

 

 

Total

 

Sales to external customers

$

21,442

 

 

$

125,938

 

 

$

11,082

 

 

$

1,302

 

 

$

6,556

 

 

$

166,320

 

Cost of sales

 

(20,277

)

 

 

(70,040

)

 

 

(4,064

)

 

 

(219

)

 

 

(3,260

)

 

 

(97,860

)

Selling, general and administrative expenses

 

(1,802

)

 

 

(26,506

)

 

 

(7,405

)

 

 

(23

)

 

 

(1,698

)

 

 

(37,434

)

Segment operating (loss) income

$

(637

)

 

$

29,392

 

 

$

(387

)

 

$

1,060

 

 

$

1,598

 

 

$

31,026

 

Reconciliation of segment operating income (loss) to income from continuing operations before taxes and income from equity method investments(1)

 

Other income, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,021

 

Other corporate expenses (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,195

)

Income from continuing operations before taxes and income from equity method investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

26,852

 

 

 

For the Nine Months Ended September 30, 2024

 

 

Produce

 

 

Cannabis Canada

 

 

Cannabis U.S.

 

 

Clean
Energy

 

 

Cannabis Netherlands

 

 

Total

 

Sales to external customers

$

22,778

 

 

$

114,654

 

 

$

12,777

 

 

$

313

 

 

$

—

 

 

$

150,522

 

Cost of sales

 

(22,129

)

 

 

(84,842

)

 

 

(4,953

)

 

 

(107

)

 

 

—

 

 

 

(112,031

)

Selling, general and administrative expenses

 

(2,274

)

 

 

(24,436

)

 

 

(9,058

)

 

 

(38

)

 

 

(1,089

)

 

 

(36,895

)

Segment operating (loss) income

$

(1,625

)

 

$

5,376

 

 

$

(1,234

)

 

$

168

 

 

$

(1,089

)

 

$

1,596

 

Reconciliation of segment operating income (loss) to loss from continuing operations before taxes and income from equity method investments(1)

 

Other expense, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,238

)

Goodwill and intangible asset impairments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,939

)

Other corporate expenses (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,976

)

Loss from continuing operations before taxes and income from equity method investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(21,557

)
(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.
(4)
Beginning May 31, 2025, as set forth in the Sales, Marketing & Distribution Agreement, the Company entered into a multi-year supply agreement with Village Fresh to provide them with all of the produce from our Delta greenhouses, as such, Village Fresh is the produce segment's sole customer.

The following tables summarize our interest income, interest expense, depreciation and amortization, other significant noncash items, and expenditures for capital assets by reportable segment:

 

For the Nine Months Ended September 30, 2025

 

 

Produce

 

Cannabis Canada

 

Cannabis U.S.

 

Clean
Energy

 

Cannabis Netherlands

 

Segment Totals

 

Corporate

 

Consolidated Totals

 

Interest income

 

1

 

 

243

 

 

—

 

 

—

 

 

—

 

 

244

 

 

300

 

 

544

 

Interest expense

 

1,270

 

 

892

 

 

—

 

 

—

 

 

—

 

 

2,162

 

 

—

 

 

2,162

 

Depreciation and amortization

 

3,086

 

 

8,231

 

 

145

 

 

—

 

 

1,003

 

 

12,465

 

 

107

 

 

12,572

 

Share based compensation

 

26

 

 

290

 

 

72

 

 

—

 

 

3

 

 

391

 

 

891

 

 

1,282

 

Other significant noncash items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash lease expense

 

51

 

 

63

 

 

627

 

 

—

 

 

—

 

 

740

 

 

—

 

 

740

 

Expenditures for segment assets

 

708

 

 

1,943

 

 

10

 

 

—

 

 

4,456

 

 

7,117

 

 

—

 

 

7,117

 

 

 

For the Nine Months Ended September 30, 2024

 

 

Produce

 

Cannabis Canada

 

Cannabis U.S.

 

Clean
Energy

 

Cannabis Netherlands

 

Segment Totals

 

Corporate

 

Consolidated Totals

 

Interest income

 

3

 

 

355

 

 

—

 

 

—

 

 

—

 

 

358

 

 

399

 

 

757

 

Interest expense

 

1,700

 

 

878

 

 

—

 

 

16

 

 

—

 

 

2,594

 

 

—

 

 

2,594

 

Depreciation and amortization

 

2,456

 

 

9,221

 

 

154

 

 

—

 

 

951

 

 

12,782

 

 

152

 

 

12,934

 

Share based compensation

 

—

 

 

126

 

 

66

 

 

—

 

 

—

 

 

192

 

 

3,284

 

 

3,476

 

Other significant noncash items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash lease expense

 

98

 

 

65

 

 

430

 

 

—

 

 

—

 

 

593

 

 

—

 

 

593

 

Expenditures for segment assets

 

792

 

 

191

 

 

35

 

 

—

 

 

4,509

 

 

5,527

 

 

—

 

 

5,527

 

The following tables summarize our total assets by reportable segment:

 

 

September 30, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

Produce

 

$

54,730

 

 

$

51,983

 

Cannabis - Canada

 

 

289,979

 

 

 

266,433

 

Cannabis - United States

 

 

5,530

 

 

 

6,728

 

Clean Energy

 

 

736

 

 

 

360

 

Cannabis - Netherlands

 

 

19,459

 

 

 

11,093

 

Total assets for reportable segments

 

$

370,434

 

 

$

336,597

 

Corporate

 

 

47,950

 

 

 

7,360

 

Consolidated total assets from continuing operations

 

$

418,384

 

 

$

343,957

 

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

Total assets from continuing operations

 

September 30, 2025

 

 

December 31, 2024

 

United States

 

$

38,121

 

 

$

46,922

 

Canada

 

 

360,804

 

 

 

285,942

 

Netherlands

 

 

19,459

 

 

 

11,093

 

 

$

418,384

 

 

$

343,957

 

 

 

 

 

 

 

 

Long-lived assets from continuing operations

 

September 30, 2025

 

 

December 31, 2024

 

United States

 

$

29,623

 

 

$

26,930

 

Canada

 

 

216,144

 

 

 

216,061

 

Netherlands

 

 

15,992

 

 

 

9,866

 

 

$

261,759

 

 

$

252,857