v3.25.2
Note 6 - Capital Assets
12 Months Ended
May 31, 2025
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

6.

Capital assets

 

Capital assets consisted of the following:

 

  

May 31,

  

May 31,

 
  

2025

  

2024

 

Land

 $44,529  $45,577 

Production facility

  407,650   369,630 

Equipment

  280,585   258,532 

Leasehold improvement

  20,415   19,377 

Finance lease, right-of-use assets

  40,308   43,993 

Construction in progress

  11,241   10,713 
  $804,728  $747,822 

Less: accumulated amortization

  (236,295)  (189,575)

Total

 $568,433  $558,247 

 

The Company performs ongoing impairment assessments whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. During the fiscal years ended May 31, 2025 and May 31, 2024, after completing an assessment for indicators of impairment, it was determined that the asset groups were recoverable and as a result there were $nil impairments during the respective fiscal years.

 

Assets held for sale consisted of the following:

 

  

May 31,

  

May 31,

 
  

2025

  

2024

 

Land

 $  $954 

Production facilities

  5,800   24,682 

Equipment

     6,438 
  $5,800  $32,074 

 

During the fiscal year ended  May 31, 2024, the Company classified $32,074 of the following assets from its Cannabis reporting segment as assets held for sale, including its Quebec cultivation facility, the Fort Collins, CO partially vacant warehouse facility, and the Broken Coast former cultivation facility located in Duncan, B.C. Following an assessment of facility capacity utilization, it was determined that these facilities would be exited and held for sale. 

 

During the fiscal year ended May 31, 2025, the Company sold the former Broken Coast cultivation facility. Additionally, due to a change in circumstance in the Company's intention to sell our Quebec cultivation facility, the asset was subsequently reclassified as capital assets as the Company has made alternative plans for its utilization. The asset was then remeasured at the lower of its carrying amount before being classified as held for sale less the amortization that would have occurred and the fair value on the date the decision not to proceed with a sale was made. Changes in the carrying amount were recorded in the consolidated statement of net loss and comprehensive loss as amortization in cost of goods sold. 

 

As of  May 31, 2025, the Fort Collins, CO partially vacant warehouse facility is classified as held for sale.