v3.26.1
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2026
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. During the first quarter of 2026, the Company realigned our structure toward a unified cannabis operating model, including changes and additions to our leadership team, to gain operational efficiencies and better align our resources with customer and market opportunities. As a result of the reorganization, the Company revised its reportable segment structure to reflect how the Chief Executive Officer, as chief operating decision maker ("CODM"), manages the business, allocates resources, and assesses performance.

Therefore, the Company's operations are now organized, managed and classified into one reportable segment - Cannabis. The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Other.

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

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. The Cannabis segment, which is comprised of the previously reported Canadian Cannabis, U. S. Cannabis, and Cannabis - Netherlands segments, produces and supplies cannabis and CBD-based health and wellness products to be sold to consumers via provincial governments, coffee shops, licensed providers, and direct to consumers in the United States.

Other is comprised of the previously reported Produce and Clean Energy segments and includes operations that are not reported in the Company’s Cannabis segment.

Corporate expenses reflect the operations costs that are not allocated to the Company's operating units.

The accounting policies of the Cannabis segment are the same as those described in the summary of business, basis of presentation and significant accounting policies. The Company evaluates segment performance based on segment operating income (loss).

The CODM uses segment operating income (loss) to allocate resources (including employees, property, and financial or capital resources), predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances and current-to-prior year variances on a monthly basis for the operating income (loss) when making decisions about allocating capital and personnel to the Cannabis segment.

Discontinued operations are not included in the applicable reportable segment.

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 March 31, 2026

 

 

Cannabis

 

 

Segment Totals

 

 

Other

 

 

Corporate

 

 

Total

 

Sales to external customers

$

49,744

 

 

$

49,744

 

 

$

494

 

 

$

—

 

 

$

50,238

 

Cost of sales

 

(28,436

)

 

 

(28,436

)

 

 

(816

)

 

 

—

 

 

 

(29,252

)

Selling, general and administrative expenses

 

(14,820

)

 

 

(14,820

)

 

 

(512

)

 

 

(610

)

 

 

(15,942

)

Segment operating income (loss)

$

6,488

 

 

$

6,488

 

 

$

(834

)

 

$

(610

)

 

$

5,044

 

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

 

Other expense, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(647

)

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

 

 

 

 

 

 

 

 

 

 

 

 

$

4,397

 

 

 

For the Three Months Ended March 31, 2025

 

 

Cannabis

 

 

Segment Totals

 

 

Other

 

 

Corporate

 

 

Total

 

Sales to external customers

$

39,227

 

 

$

39,227

 

 

$

453

 

 

$

—

 

 

$

39,680

 

Cost of sales

 

(23,958

)

 

 

(23,958

)

 

 

(1,543

)

 

 

—

 

 

 

(25,501

)

Selling, general and administrative expenses

 

(11,736

)

 

 

(11,736

)

 

 

(743

)

 

 

(2,140

)

 

 

(14,619

)

Segment operating income (loss)

$

3,533

 

 

$

3,533

 

 

$

(1,833

)

 

$

(2,140

)

 

$

(440

)

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

 

Other expense, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(688

)

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

 

 

 

 

 

 

 

 

 

 

 

 

$

(1,128

)
(1)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(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 summarize 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, 2026

 

Cannabis

 

Segment Totals

 

Other

 

Corporate

 

Consolidated Totals

 

 

Interest income

 

222

 

 

222

 

 

105

 

 

281

 

 

608

 

 

Interest expense

 

239

 

 

239

 

 

284

 

 

—

 

 

523

 

 

Depreciation and amortization

 

3,331

 

 

3,331

 

 

785

 

 

15

 

 

4,131

 

^

Share based compensation

 

77

 

 

77

 

 

—

 

 

299

 

 

376

 

^

Other significant noncash items:

 

 

 

 

 

 

 

 

 

 

 

Non-cash lease expense

 

190

 

 

190

 

 

—

 

 

54

 

 

244

 

 

Expenditures for segment assets

 

7,981

 

 

7,981

 

 

1,246

 

 

—

 

 

9,227

 

 

 

 

For the Three Months Ended March 31, 2025

 

Cannabis

 

Segment Totals

 

Other

 

Corporate

 

Consolidated Totals

 

 

Interest income

 

51

 

 

51

 

 

—

 

 

24

 

 

75

 

 

Interest expense

 

191

 

 

191

 

 

510

 

 

—

 

 

701

 

 

Depreciation and amortization

 

2,938

 

 

2,938

 

 

1,457

 

 

44

 

 

4,439

 

^

Share based compensation

 

48

 

 

48

 

 

13

 

 

84

 

 

145

 

^

Other significant noncash items:

 

 

 

 

 

 

 

 

 

 

 

Non-cash lease expense

 

156

 

 

156

 

 

—

 

 

40

 

 

196

 

 

Expenditures for segment assets

 

1,232

 

 

1,232

 

 

17

 

 

—

 

 

1,249

 

 

The following tables summarize our total assets by reportable segment:

 

 

March 31, 2026

 

 

December 31, 2025

 

Assets

 

 

 

 

 

 

Cannabis

 

$

330,926

 

 

$

335,428

 

Total assets for reportable segment

 

$

330,926

 

 

$

335,428

 

Other

 

 

49,199

 

 

 

49,038

 

Corporate

 

 

20,759

 

 

 

38,630

 

Consolidated total assets from continuing operations

 

$

400,884

 

 

$

423,096

 

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

 

March 31, 2026

 

 

December 31, 2025

 

United States

 

$

34,021

 

 

$

36,039

 

Canada

 

 

337,811

 

 

 

363,702

 

Netherlands

 

 

29,052

 

 

 

23,355

 

 

$

400,884

 

 

$

423,096

 

 

 

 

 

 

 

 

Long-lived assets from continuing operations

 

March 31, 2026

 

 

December 31, 2025

 

United States

 

$

26,786

 

 

$

28,970

 

Canada

 

 

216,279

 

 

 

218,582

 

Netherlands

 

 

25,890

 

 

 

21,107

 

 

$

268,955

 

 

$

268,659