| Segment and Geographic Information |
13. 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 its 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 June 30, 2026 |
|
|
Cannabis |
|
|
Segment Totals |
|
|
Other |
|
|
Corporate (3) |
|
|
Total |
|
Sales to external customers |
$ |
53,523 |
|
|
$ |
53,523 |
|
|
$ |
10,454 |
|
|
|
- |
|
|
$ |
63,977 |
|
Cost of sales |
|
(26,246 |
) |
|
|
(26,246 |
) |
|
|
(7,758 |
) |
|
|
- |
|
|
|
(34,004 |
) |
Selling, general and administrative expenses |
|
(15,203 |
) |
|
|
(15,203 |
) |
|
|
(712 |
) |
|
|
(2,896 |
) |
|
|
(18,811 |
) |
Segment operating income (loss) |
$ |
12,074 |
|
|
$ |
12,074 |
|
|
$ |
1,984 |
|
|
$ |
(2,896 |
) |
|
$ |
11,162 |
|
Reconciliation of segment operating income (loss) to income from continuing operations before taxes and income from equity method investments(1) |
|
Other expense, net (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(707 |
) |
Income from continuing operations before taxes and equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
10,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2025 |
|
|
Cannabis |
|
|
Segment Totals |
|
|
Other |
|
|
Corporate (3) |
|
|
Total |
|
Sales to external customers |
$ |
50,842 |
|
|
$ |
50,842 |
|
|
$ |
9,057 |
|
|
|
- |
|
|
$ |
59,899 |
|
Cost of sales |
|
(29,502 |
) |
|
|
(29,502 |
) |
|
|
(8,055 |
) |
|
|
- |
|
|
|
(37,557 |
) |
Selling, general and administrative expenses |
|
(11,606 |
) |
|
|
(11,606 |
) |
|
|
(843 |
) |
|
|
(2,962 |
) |
|
|
(15,411 |
) |
Segment operating income (loss) |
$ |
9,734 |
|
|
$ |
9,734 |
|
|
$ |
159 |
|
|
$ |
(2,962 |
) |
|
$ |
6,931 |
|
Reconciliation of segment operating income (loss) to loss from continuing operations before taxes and income from equity method investments(1) |
|
Other income, net (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,517 |
|
Income from continuing operations before taxes and equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
12,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2026 |
|
|
Cannabis |
|
|
Segment Totals |
|
|
Other |
|
|
Corporate (3) |
|
|
Total |
|
Sales to external customers |
$ |
103,267 |
|
|
$ |
103,267 |
|
|
$ |
10,948 |
|
|
$ |
— |
|
|
$ |
114,215 |
|
Cost of sales |
|
(54,682 |
) |
|
|
(54,682 |
) |
|
|
(8,574 |
) |
|
|
— |
|
|
|
(63,256 |
) |
Selling, general and administrative expenses |
|
(30,023 |
) |
|
|
(30,023 |
) |
|
|
(1,224 |
) |
|
|
(3,506 |
) |
|
|
(34,753 |
) |
Segment operating income (loss) |
$ |
18,562 |
|
|
$ |
18,562 |
|
|
$ |
1,150 |
|
|
$ |
(3,506 |
) |
|
$ |
16,206 |
|
Reconciliation of segment operating income to income from continuing operations before taxes and income from equity method investments(1) |
|
Other expense, net (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,353 |
) |
Income from continuing operations before taxes and equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
14,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2025 |
|
|
Cannabis |
|
|
Segment Totals |
|
|
Other |
|
|
Corporate (3) |
|
|
Total |
|
Sales to external customers |
$ |
90,069 |
|
|
$ |
90,069 |
|
|
$ |
9,510 |
|
|
$ |
— |
|
|
$ |
99,579 |
|
Cost of sales |
|
(53,460 |
) |
|
|
(53,460 |
) |
|
|
(9,597 |
) |
|
|
— |
|
|
|
(63,057 |
) |
Selling, general and administrative expenses |
|
(23,342 |
) |
|
|
(23,342 |
) |
|
|
(1,586 |
) |
|
|
(5,102 |
) |
|
|
(30,030 |
) |
Segment operating income (loss) |
$ |
13,267 |
|
|
$ |
13,267 |
|
|
$ |
(1,673 |
) |
|
$ |
(5,102 |
) |
|
$ |
6,492 |
|
Reconciliation of segment operating income to loss from continuing operations before taxes and income from equity method investments(1) |
|
Other income, net (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,827 |
|
Income from continuing operations before taxes and equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
11,319 |
|
(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 Six Months Ended June 30, 2026 |
|
|
Cannabis |
|
Segment Totals |
|
Other |
|
Corporate |
|
Consolidated Totals |
|
Interest income |
$ |
414 |
|
$ |
414 |
|
$ |
149 |
|
$ |
388 |
|
$ |
951 |
|
Interest expense |
$ |
468 |
|
$ |
468 |
|
$ |
532 |
|
$ |
- |
|
$ |
1,000 |
|
Depreciation and amortization |
$ |
6,985 |
|
$ |
6,985 |
|
$ |
1,560 |
|
$ |
37 |
|
$ |
8,582 |
|
Share based compensation |
$ |
134 |
|
$ |
134 |
|
$ |
- |
|
$ |
535 |
|
$ |
669 |
|
Other significant noncash items: |
|
|
|
|
|
|
|
|
|
|
Non-cash lease expense |
$ |
377 |
|
$ |
377 |
|
$ |
114 |
|
$ |
- |
|
$ |
491 |
|
Expenditures for segment assets |
$ |
14,215 |
|
$ |
14,215 |
|
$ |
1,247 |
|
$ |
- |
|
$ |
15,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2025 |
|
|
Cannabis |
|
Segment Totals |
|
Other |
|
Corporate |
|
Consolidated Totals |
|
Interest income |
$ |
134 |
|
$ |
134 |
|
$ |
1 |
|
$ |
49 |
|
$ |
184 |
|
Interest expense |
$ |
592 |
|
$ |
592 |
|
$ |
924 |
|
$ |
- |
|
$ |
1,516 |
|
Depreciation and amortization |
$ |
6,055 |
|
$ |
6,055 |
|
$ |
2,273 |
|
$ |
82 |
|
$ |
8,410 |
|
Share based compensation |
$ |
85 |
|
$ |
85 |
|
$ |
19 |
|
$ |
164 |
|
$ |
268 |
|
Other significant noncash items: |
|
|
|
|
|
|
|
|
|
|
Non-cash lease expense |
$ |
534 |
|
$ |
534 |
|
$ |
85 |
|
$ |
- |
|
$ |
619 |
|
Expenditures for segment assets |
$ |
4,581 |
|
$ |
4,581 |
|
$ |
708 |
|
$ |
- |
|
$ |
5,289 |
|
The following tables summarize our total assets by reportable segment:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Assets |
|
|
|
|
|
|
Cannabis |
|
$ |
346,323 |
|
|
$ |
335,428 |
|
Total assets for reportable segment |
|
$ |
346,323 |
|
|
$ |
335,428 |
|
Other |
|
|
46,915 |
|
|
|
49,038 |
|
Corporate |
|
|
35,229 |
|
|
|
38,630 |
|
Consolidated total assets from continuing operations |
|
$ |
428,467 |
|
|
$ |
423,096 |
|
The Company’s primary operations are in the United States, Canada, and the Netherlands. The following tables summarize our assets by geographic location:
|
|
|
|
|
|
|
|
|
Total assets from continuing operations |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
United States |
|
$ |
29,283 |
|
|
$ |
36,039 |
|
Canada |
|
|
367,036 |
|
|
|
363,702 |
|
Netherlands |
|
|
32,148 |
|
|
|
23,355 |
|
|
|
$ |
428,467 |
|
|
$ |
423,096 |
|
|
|
|
|
|
|
|
Long-lived assets from continuing operations |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
United States |
|
$ |
27,300 |
|
|
$ |
28,970 |
|
Canada |
|
|
212,223 |
|
|
|
218,582 |
|
Netherlands |
|
|
28,618 |
|
|
|
21,107 |
|
|
|
$ |
268,141 |
|
|
$ |
268,659 |
|
|