v3.26.1
Note 25 - Segment Reporting
9 Months Ended
Feb. 28, 2026
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 25. Segment reporting

 

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 wellness and better-for-you foods and beverages. 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 three months ended

  

For the nine months ended

 
  

February 28,

  

February 28,

  

February 28,

  

February 28,

 
  

2026

  

2025

  

2026

  

2025

 

Beverage

                

Net beverage revenue

 $42,558  $55,921  $148,380  $174,974 

Beverage costs

  28,977   35,986   97,741   106,961 

Beverage gross profit

  13,581   19,935   50,639   68,013 

Cannabis

                

Net cannabis revenue

  64,828   54,274   196,871   181,175 

Cannabis costs

  38,858   32,275   121,497   111,804 

Cannabis gross profit

  25,970   21,999   75,374   69,371 

Distribution

                

Distribution revenue

  82,963   61,493   242,286   197,175 

Distribution costs

  72,951   55,936   213,293   175,281 

Distribution gross profit

  10,012   5,557   28,993   21,894 

Wellness

                

Wellness revenue

  16,383   14,092   46,203   43,450 

Wellness costs

  10,992   9,572   31,289   29,791 

Wellness gross profit

  5,391   4,520   14,914  $13,659 

Total

                

Total revenue

  206,732   185,780   633,740   596,774 

Total costs

  151,778   133,769   463,820   423,837 

Total gross profit

 $54,954  $52,011  $169,920  $172,937 

 

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 three months ended

  

For the nine months ended

 
  

February 28,

  

February 28,

  

February 28,

  

February 28,

 
  

2026

  

2025

  

2026

  

2025

 

Gross profit

 $54,954  $52,011  $169,920  $172,937 

Operating expenses:

                

General and administrative

  50,228   39,246   142,456   129,356 

Selling

  10,617   13,905   35,321   41,757 

Amortization

  5,106   23,182   13,393   67,913 

Marketing and promotion

  8,692   6,793   28,828   28,079 

Research and development

  62   85   181   250 

Change in fair value of contingent consideration

        (15,000)   

Impairment of intangible assets and goodwill

     699,235      699,235 

Other than temporary change in fair value of convertible notes receivable

     20,000      20,000 

Litigation costs, net of recoveries

  621   2,758   2,497   5,254 

Restructuring costs

  4,087   6,133   5,921   17,249 

Transaction costs (income), net

  1,927   605   2,896   2,563 

Total operating expenses

  81,340   811,942   216,493   1,011,656 

Operating loss

  (26,386)  (759,931)  (46,573)  (838,719)

Interest expense, net

  (4,965)  (8,378)  (17,035)  (25,986)

Non-operating income (expense), net

  8,092   (24,022)  (386)  (44,631)

Loss before income taxes

  (23,259)  (792,331)  (63,994)  (909,336)

Income tax expense (recovery), net

  1,974   1,203   3,235   4,125 

Net loss

 $(25,233) $(793,534) $(67,229) $(913,461)

 

Channels of Cannabis revenue were as follows:

 

  

For the three months ended

  

For the nine months ended

 
  

February 28,

  

February 28,

  

February 28,

  

February 28,

 
  

2026

  

2025

  

2026

  

2025

 

Revenue from Canadian medical cannabis

 $5,979  $5,839  $18,359  $18,773 

Revenue from Canadian adult-use cannabis

  52,570   49,315   179,085   165,627 

Revenue from wholesale cannabis

  1,165   3,893   6,666   15,993 

Revenue from international cannabis

  24,121   13,935   57,668   40,991 

Less excise taxes

  (19,007)  (18,708)  (64,907)  (60,209)

Total

 $64,828  $54,274  $196,871  $181,175 

 

Geographic net revenue:

 

  

For the three months ended

  

For the nine months ended

 
  

February 28,

  

February 28,

  

February 28,

  

February 28,

 
  

2026

  

2025

  

2026

  

2025

 

USA

 $51,683  $64,420  $173,482  $200,053 

Canada

  48,221   45,930   160,561   158,555 

EMEA

  104,955   72,386   293,363   229,312 

Rest of World

  1,873   3,044   6,334   8,854 

Total

 $206,732  $185,780  $633,740  $596,774 

 

Geographic capital assets:

 

  February 28,  May 31, 
  2026  2025 

USA

 $188,500  $200,003 

Canada

  251,645   267,458 

EMEA

  98,571   97,371 

Rest of World

  4,292   3,601 

Total

 $543,008  $568,433 

 

Major customers are defined as customers that are materially significant to the Company’s annual revenues. For the three and nine months ended February 28, 2026 and 2025, there were no major customers representing a material contribution to our quarterly revenues.