| Segment Reporting Disclosure [Text Block] |
Our Company’s Chief Operating Decision Maker (“CODM”) is the Chairman of the Board of Directors and Chief Executive Officer. The CODM uses segment gross profit for the purpose of resource allocation, assessment of segment performance against determined targets, and in deciding whether to implement cost saving targets. The Company operates in four segments. 1) cannabis operations, which encompasses the production, distribution, sale, co-manufacturing and advisory services of both medical and adult-use cannabis, 2) beverage operations, which encompasses the production, marketing and sale of beverage products, 3) distribution operations, which encompasses the purchase and resale of pharmaceuticals products to customers, and 4) wellness products, which encompasses hemp foods and cannabidiol (“CBD”) products. This structure is in line with how our CODM assesses our performance and allocates resources.
Operating segments have not been aggregated and no asset information is provided for the segments because the Company’s CODM does not receive asset information by segment on a regular basis.
The following tables reconcile the Company’s segment gross profit to consolidated U.S. GAAP results:
| | | For the year ended May 31, | |
| | | 2025 | | | 2024 | | | 2023 | |
| Beverage | | | | | | | | | | | | |
| Net beverage revenue | | $ | 240,595 | | | $ | 202,094 | | | $ | 95,093 | |
| Beverage costs | | | 147,591 | | | | 113,522 | | | | 48,770 | |
| Beverage gross profit | | | 93,004 | | | | 88,572 | | | | 46,323 | |
| Cannabis | | | | | | | | | | | | |
| Net cannabis revenue | | | 249,001 | | | | 272,798 | | | | 220,430 | |
| Cannabis costs | | | 150,005 | | | | 182,594 | | | | 162,755 | |
| Cannabis gross profit | | | 98,996 | | | | 90,204 | | | | 57,675 | |
| Distribution | | | | | | | | | | | | |
| Distribution revenue | | | 271,228 | | | | 258,740 | | | | 258,770 | |
| Distribution costs | | | 241,896 | | | | 230,596 | | | | 231,309 | |
| Distribution gross profit | | | 29,332 | | | | 28,144 | | | | 27,461 | |
| Wellness | | | | | | | | | | | | |
| Wellness revenue | | | 60,485 | | | | 55,310 | | | | 52,831 | |
| Wellness costs | | | 41,247 | | | | 38,879 | | | | 37,330 | |
| Wellness gross profit | | | 19,238 | | | | 16,431 | | | | 15,501 | |
| Total | | | | | | | | | | | | |
| Total revenue | | | 821,309 | | | | 788,942 | | | | 627,124 | |
| Total costs | | | 580,739 | | | | 565,591 | | | | 480,164 | |
| Total gross profit | | $ | 240,570 | | | $ | 223,351 | | | $ | 146,960 | |
Segment costs are comprised of cost of goods sold which include product costs, salaries and an allocation of overhead costs.
The following table reconciles the total segment gross profit to the Company’s consolidated totals:
| | | For the year ended May 31, | |
| | | 2025 | | | 2024 | | | 2023 | |
| Gross profit | | $ | 240,570 | | | $ | 223,351 | | | $ | 146,960 | |
| | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | |
| General and administrative | | | 167,324 | | | | 167,358 | | | | 165,159 | |
| Selling | | | 56,039 | | | | 37,233 | | | | 34,840 | |
| Amortization | | | 88,616 | | | | 84,752 | | | | 93,489 | |
| Marketing and promotion | | | 37,048 | | | | 41,933 | | | | 30,937 | |
| Research and development | | | 284 | | | | 635 | | | | 682 | |
| Change in fair value of contingent consideration | | | — | | | | (15,790 | ) | | | 855 | |
| Impairment of intangible assets and goodwill | | | 2,096,139 | | | | — | | | | 934,000 | |
| Other than temporary change in fair value of convertible notes receivable | | | 21,661 | | | | 42,681 | | | | 246,330 | |
| Litigation costs, net of recoveries | | | 17,347 | | | | 8,251 | | | | (505 | ) |
| Restructuring costs | | | 34,283 | | | | 15,581 | | | | 9,245 | |
| Transaction costs (income), net | | | 4,534 | | | | 15,462 | | | | 1,613 | |
| Total operating expenses | | | 2,523,275 | | | | 398,096 | | | | 1,516,645 | |
| Operating loss | | | (2,282,705 | ) | | | (174,745 | ) | | | (1,369,685 | ) |
| Interest expense, net | | | (29,952 | ) | | | (36,433 | ) | | | (13,587 | ) |
| Non-operating income (expense), net | | | 10,284 | | | | (37,842 | ) | | | (66,909 | ) |
| Loss before income taxes | | | (2,302,373 | ) | | | (249,020 | ) | | | (1,450,181 | ) |
| Income tax (recovery) expense | | | (121,017 | ) | | | (26,616 | ) | | | (7,181 | ) |
| Net loss | | $ | (2,181,356 | ) | | $ | (222,404 | ) | | $ | (1,443,000 | ) |
Channels of cannabis revenue were as follows:
| | | For the year ended May 31, | |
| | | 2025 | | | 2024 | | | 2023 | |
| Revenue from Canadian medical cannabis | | $ | 24,998 | | | $ | 25,211 | | | $ | 25,000 | |
| Revenue from Canadian adult-use cannabis | | | 224,048 | | | | 266,846 | | | | 214,319 | |
| Revenue from wholesale cannabis | | | 18,207 | | | | 25,340 | | | | 1,436 | |
| Revenue from international cannabis | | | 63,356 | | | | 53,295 | | | | 43,559 | |
| Less excise taxes | | | (81,608 | ) | | | (97,894 | ) | | | (63,884 | ) |
| Total | | $ | 249,001 | | | $ | 272,798 | | | $ | 220,430 | |
There was $1,460 of cannabis advisory services revenue for the fiscal year ended May 31, 2025, compared to $1,500 associated with the HEXO commercial transaction agreements for the fiscal year ended May 31, 2024.
Geographic net revenue:
| | | For the year ended May 31, | |
| | | 2025 | | | 2024 | | | 2023 | |
| USA | | $ | 273,695 | | | $ | 233,141 | | | $ | 123,284 | |
| Canada | | | 212,860 | | | | 243,722 | | | | 201,361 | |
| EMEA | | | 323,350 | | | | 296,450 | | | | 284,567 | |
| Rest of World | | | 11,404 | | | | 15,629 | | | | 17,912 | |
| Total | | $ | 821,309 | | | $ | 788,942 | | | $ | 627,124 | |
Geographic capital assets:
| | | May 31, | | | May 31, | |
| | | 2025 | | | 2024 | |
| USA | | $ | 200,003 | | | $ | 141,314 | |
| Canada | | | 267,458 | | | | 313,359 | |
| EMEA | | | 97,371 | | | | 99,921 | |
| Rest of World | | | 3,601 | | | | 3,653 | |
| Total | | $ | 568,433 | | | $ | 558,247 | |
Major customers are defined as customers that each individually account for greater than 10% of the Company’s annual revenues. For the fiscal years ended May 31, 2025, 2024 and 2023, there were no major customers representing greater than 10% of our annual revenues.
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