v3.26.1
Segmented Information
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Segment Reporting [Abstract]    
Segmented Information

 

20. Segmented Information

 

Operations by reportable segment for the three months ending March 31, 2026 and 2025 are as follows:

 

   Wholesale Concentrates   Retail   Corporate &
Other		   Total 
   Three Months Ended March 31, 2026 
   Wholesale Concentrates   Retail   Corporate &
Other		   Total 
Net revenue  $8,490,773   $886,229   $-   $9,377,002 
Cost of sales   4,283,813    468,539    -    4,752,352 
Gross profit   4,206,960    417,690    -    4,624,650 
                     
Operating expenses                    
Advertising and promotion   8,722    17,894    7,721    34,337 
Depreciation and amortization   235,183    2,321    47,986    285,490 
Wages and salaries   418,669    215,426    1,055,595    1,689,690 
Office and general expenses   440,639    69,434    91,518    601,591 
Research and development expenses   2,081    -    -    2,081 
Legal and professional fees   39,653    30,000    224,643    294,296 
License and compliance   (4,956)   9,327    1,335    5,706 
Insurance expenses   7,945    8,073    82,069    98,087 
Excise and other taxes   46,600    8,551    15    55,166 
Lease expenses   122,583    60,977    679    184,239 
Travel and business development   45,267    2,256    42,777    90,300 
Total operating expenses   1,362,386    424,259    1,554,338    3,340,983 
                     
Income (loss) from operations   2,844,574    (6,569)   (1,554,338)   1,283,667 
                     
Other expense                    
Interest expense   266,110    550    50,174    316,834 
Change in fair value derivative liability   -    -    390,405    390,405 
Other expense (income)   -    -    28,101    28,101 
Total other expense   266,110    550    468,680    735,340 
                     
Income (loss) before provision for income taxes   2,578,464    (7,119)   (2,023,018)   548,327 
                     
Provision for income taxes   1,206    -    973,374    974,580 
Net income (loss) and comprehensive income (loss)   2,577,258    (7,119)   (2,996,392)   (426,253)
                     
Foreign currency translation   -    -    -    - 
Net loss and comprehensive loss attributable to non-controlling interest   -    -    -    - 
Net income (loss) and comprehensive income (loss) attributable to shareholders of Leef Brands, Inc.  $2,577,258   $(7,119)  $(2,996,392)  $(426,253)

 

 

   Wholesale Concentrates   Retail   Corporate &
Other		   Total 
   Three Months Ended March 31, 2025 
   Wholesale Concentrates   Retail   Corporate &
Other		   Total 
Net revenue  $8,380,413   $1,017,848   $-   $9,398,261 
Cost of sales   5,922,610    1,402,361    -    7,324,971 
Gross profit   2,457,803    (384,513)   -    2,073,290 
                     
Operating expenses                    
Advertising and promotion   30,878    49,317    58,968    139,163 
Depreciation and amortization   243,393    26,507    24,603    294,503 
Wages and salaries   431,504    246,538    1,202,717    1,880,759 
Office and general expenses   552,555    120,634    124,228    797,417 
Research and development expenses   8,628    -    -    8,628 
Legal and professional fees   139,382    14,501    334,056    487,939 
License and compliance   12,760    -    -    12,760 
Insurance expenses   2,717    (5,637)   102,491    99,571 
Excise and other taxes   48,437    -    -    48,437 
Lease expenses   (30,097)   -    188,499    158,402 
Travel and business development   40,074    1,073    12,109    53,256 
Total operating expenses   1,480,231    452,933    2,047,671    3,980,835 
                     
Income (loss) from operations   977,572    (837,446)   (2,047,671)   (1,907,545)
                     
Other expense                    
Interest expense   325,735    49,561    217,205    592,501 
Change in fair value derivative liability   -    -    (3,538,440)   (3,538,440)
Other expense (income)   -    -    51,505    51,505 
Total other expense   325,735    49,561    (3,269,730)   (2,894,434)
                     
Income (loss) before provision for income taxes   651,837    (887,007)   1,222,059    986,889 
                     
Provision for income taxes   -    -    721,113    721,113 
Net income (loss) and comprehensive income (loss)   651,837    (887,007)   500,946    265,776 
                     
Foreign currency translation   -    -    -    - 
Net income (loss) and comprehensive income (loss) attributable to shareholders of Leef Brands, Inc.  $651,837   $(887,007)  $500,946   $265,776 

 

 

22. Segmented Information

 

Operations by reportable segment for the years ending December 31, 2025 and 2024 are as follows:

 

   Wholesale Concentrates   Retail   Corporate &
Other		   Total 
   Year Ended December 31, 2025 
   Wholesale Concentrates   Retail   Corporate &
Other		   Total 
Net revenue  $31,303,107   $3,484,489   $-   $34,787,596 
Cost of sales   21,903,649    2,401,308    -    24,304,957 
Gross profit   9,399,458    1,083,181    -    10,482,639 
                     
Operating expenses                    
Advertising and promotion   70,796    86,186    115,975    272,957 
Depreciation and amortization   558,012    9,465    692,821    1,260,298 
Wages and salaries   1,643,935    903,002    4,988,300    7,535,237 
Office and general expenses   2,288,777    399,597    433,783    3,122,157 
License and compliance   10,066    37,020    (1,432)   45,654 
Research and development expenses   19,696    -    -    19,696 
Legal and professional fees   463,805    118,514    1,088,258    1,670,577 
Insurance expenses   25,832    13,993    396,049    435,874 
Excise and other taxes   263,551    33,984    2,497    300,032 
Lease expenses   400,523    243,909    83,301    727,733 
Loss on impairment of goodwill, intangible and long-lived assets   2,337,264    -    -    2,337,264 
                     
Other losses   2,035    -    -    2,035 
Travel and business development   203,980    3,084    136,973    344,037 
Total operating expenses   8,288,272    1,848,754    7,936,525    18,073,551 
                     
Income (loss) from operations   1,111,186    (765,573)   (7,936,525)   (7,590,912)
                     
Other expense                    
Interest expense   683,429    2,914    1,680,018    2,366,361 
Loss on extinguishment of debt   -    -    13,878,098    13,878,098 
                     
Change in fair value derivative liability   -    -    (8,934,632)   (8,934,632)
Other expense (income)   -    -    210,321    210,321 
Total other expense   683,429    2,914    6,833,805    7,520,148 
                     
Income (loss) before provision for income taxes   427,757    (768,487)   (14,770,330)   (15,111,060)
                     
Provision for income taxes   19,347    -    2,499,268    2,518,615 
Net income (loss) and comprehensive income (loss)   408,410    (768,487)   (17,269,598)   (17,629,675)
                     
Foreign currency translation   (343)   -    -    (343)
Net loss and comprehensive loss attributable to non-controlling interest   -    -    -    - 
Net income (loss) and comprehensive income (loss) attributable to shareholders of Leef Brands, Inc.  $408,753   $(768,487)  $(17,269,598)  $(17,629,332)

 

 

   Wholesale Concentrates   Retail   Corporate &
Other		   Total 
   Year Ended December 31, 2024 
   Wholesale Concentrates   Retail   Corporate &
Other		   Total 
Net revenue  $24,586,764   $3,908,683   $-   $28,495,447 
Cost of sales   18,802,512    2,011,107    -    20,813,619 
Gross profit   5,784,252    1,897,576    -    7,681,828 
                     
Operating expenses                    
Advertising and promotion   176,777    236,856    27,233    440,866 
Depreciation and amortization   871,687    117,032    52,265    1,040,984 
Wages and salaries   2,041,058    847,036    2,990,555    5,878,649 
Office and general expenses   1,415,507    541,955    734,900    2,584,982 
Research and development expenses   18,739    -    244    18,983 
Legal and professional fees   307,950    54,066    1,011,899    1,373,915 
Insurance expenses   2,197    45,989    386,952    435,138 
Excise and other taxes   55,450    -    -    55,450 
Lease expenses   60,124    (17,000)   672,994    716,118 
Loss on impairment of goodwill, intangible and long-lived assets   -    2,414,485    246,899    2,661,384 
Other (gains) losses   -    (6,415)   7,812    1,397 
Travel and business development   80,175    18,401    361,231    459,807 
Total operating expenses   4,922,284    4,252,405    6,492,984    15,667,673 
                     
Income (loss) from operations   861,968    (2,354,829)   (6,492,984)   (7,985,845)
                     
Other expense                    
Interest expense   1,257,809    201,376    3,696,103    5,155,288 
Loss (gain) on extinguishment of debt   -    -    2,935,029    2,935,029 
Change in fair value of contingent consideration   -    -    (855,000)   (855,000)
Change in fair value derivative liability   12,727    -    6,100,758    6,113,485 
Other expense (income)   (8,902)   -    (11,474)   (20,376)
Total other expense   1,261,634    201,376    11,865,416    13,328,426 
                     
Income (loss) before provision for income taxes   (399,666)   (2,556,205)   (18,358,400)   (21,314,271)
                     
Provision for income taxes   323    -    3,306,920    3,307,243 
Net income (loss) and comprehensive income (loss)   (399,989)   (2,556,205)   (21,665,320)   (24,621,514)
                     
Foreign currency translation   -    -    7,314    7,314 
Net loss and comprehensive loss attributable to non-controlling interest   -    -    -    - 
Net income (loss) and comprehensive income (loss) attributable to shareholders of Leef Brands, Inc.  $(399,989)  $(2,556,205)  $(21,672,634)  $(24,628,828)