Note 24 - Segment Reporting

3 Months Ended

Aug. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 24. Segment reporting

Information reported to the Chief Operating Decision Maker (“CODM”) for the purpose of resource allocation and assessment of segment performance focuses on the nature of the operations. The Company operates in four reportable segments: (1) cannabis operations, which encompasses the production, distribution, sale, co-manufacturing and advisory services of both medical and adult-use cannabis, (2) beverage alcohol operations, which encompasses the production, marketing and sale of beverage alcohol 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 Chief Operating Decision Maker (“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. 

Segment gross profit from external customers:

	For the three months
	ended August 31,
	2023		2022
Cannabis
Net cannabis revenue	$	70,333	$	58,570
Cannabis costs		50,517		28,861
Gross profit		19,816		29,709
Distribution
Distribution revenue		69,157		60,585
Distribution costs		61,468		54,984
Gross profit		7,689		5,601
Beverage alcohol
Net beverage alcohol revenue		24,162		20,654
Beverage alcohol costs		11,266		10,849
Gross profit		12,896		9,805
Wellness
Wellness revenue		13,297		13,402
Wellness costs		9,502		9,903
Gross profit	$	3,795	$	3,499

Channels of Cannabis revenue were as follows:

	For the three months
	ended August 31,
	2023			2022
Revenue from Canadian medical cannabis	$	6,142		$	6,520
Revenue from Canadian adult-use cannabis		71,195			58,355
Revenue from wholesale cannabis		5,295			392
Revenue from international cannabis		14,252			10,422
Less excise taxes		(26,551	)		(17,119	)
Total	$	70,333		$	58,570

On July 12, 2022, Tilray acquired the HEXO Convertible Note from HTI and also entered into a strategic alliance with HEXO Corp. (“HEXO”) as discussed in Note 7 (Convertible notes receivable) and Note 12 (Convertible debentures payable). In addition, the Company and HEXO entered into various commercial transaction agreements. On June 22, 2023, the Company completed the HEXO Acquisition as described in Note 6 (Business acquisitions), and thus these commercial arrangements were terminated and HEXO's financial results were consolidated in the current period results.    

Included in revenue from Canadian adult-use cannabis is $1,500 of advisory services revenue for the three months ended August 31, 2023 from the aforementioned HEXO commercial transaction agreements, compared to $7,753 in the prior comparative period.

Geographic net revenue:

	For the three months
	ended August 31,
	2023		2022
North America	$	93,521	$	82,192
EMEA		79,704		66,041
Rest of World		3,724		4,978
Total	$	176,949	$	153,211

Geographic capital assets:

	August 31,		May 31,
	2023		2023
North America	$	384,091	$	319,173
EMEA		106,761		107,131
Rest of World		3,767		3,363
Total	$	494,619	$	429,667

Major customers are defined as customers that are materially significant to the Company’s annual revenues. For the three months ended August 31, 2023 and 2022, there were no major customers representing a material contribution to our quarterly revenues.