Business Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Business Segment Information

28. Business Segment Information

The Company has two operating segments based on major product categories: cannabis and hemp. These operating segments are also the Company’s reportable segments.

The cannabis segment cultivates, processes and distributes medical and adult-use cannabis products in a variety of formats, as well as related accessories, on a global basis. The hemp segment processes and distributes a diverse portfolio of hemp-based natural and organic food and wellness products on a global basis.

The results of each segment are regularly reviewed by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker, to assess the performance of the segment and make decisions regarding the allocation of resources. The Company’s chief operating decision maker uses revenue and gross profit as the measure of segment profit or loss. The accounting policies of each segment are the same as those set out under the summary of significant accounting policies in Note 2. There are no intersegment sales or transfers.

	Year ended December 31,
	2020					2019					2018
	Revenue		Gross profit (loss)			Revenue		Gross profit (loss)			Revenue		Gross profit
Cannabis	$	133,605	$	(3,575	)	$	107,147	$	(42,302	)	$	43,130	$	14,275
Hemp		76,877		28,230			59,832		18,806			—		—
Total	$	210,482	$	24,655		$	166,979	$	(23,496	)	$	43,130	$	14,275

No asset information is provided for the segments because the Company’s chief operating decision maker does not receive asset information by segment on a regular basis.

Total revenue and gross profit for the reportable segments is equal to the Company’s consolidated revenue and gross profit.

	Year ended December 31,
	2020			2019			2018
Gross profit (loss) for the segments	$	24,655		$	(23,496	)	$	14,275
General and administrative expenses		(85,883	)		(110,903	)		(48,577	)
Sales and marketing expenses		(54,666	)		(63,813	)		(15,828	)
Research and development expenses		(4,411	)		(9,172	)		(5,864	)
Depreciation and amortization expenses		(13,722	)		(11,607	)		(1,598	)
Impairment of assets		(61,114	)		(112,070	)		—
Acquisition-related income (expenses), net		—			31,427			(248	)
Loss from equity method investments		(5,983	)		(4,504	)		—
Foreign exchange (loss) gain, net		13,169			5,944			(7,234	)
Change in fair value of warrant liability		(100,286	)		—			—
Gain on debt conversion		61,118			—			—
Interest expenses, net		(39,219	)		(34,690	)		(9,110	)
Finance income from ABG		—			764			—
Other (expenses) income, net		(10,333	)		2,501			2,010
Loss before income taxes	$	(276,675	)	$	(329,619	)	$	(72,174	)

Sources of revenue were as follows:

	Year Ended December 31,
	2020		2019		2018
Dried cannabis	$	92,781	$	82,753	$	21,674
Cannabis extracts		39,986		24,139		21,179
Hemp products		76,877		59,832		—
Accessories and other		838		255		277
Total	$	210,482	$	166,979	$	43,130

Channels of revenue were as follows:

	Year Ended December 31,
	2020		2019		2018
Cannabis
Adult-use	$	83,828	$	55,763	$	3,521
Canada - medical		15,489		12,556		18,052
International - medical		33,886		13,378		2,912
Bulk		402		25,450		18,645
Total Cannabis revenue	$	133,605	$	107,147	$	43,130
Hemp		76,877		59,832		—
Total	$	210,482	$	166,979	$	43,130

Revenue attributed to geographic region based on the location of the customer was as follows:

	Year Ended December 31,
	2020		2019		2018
Canada	$	120,581	$	130,291	$	40,209
United States		53,782		23,516		—
Other countries		36,119		13,172		2,921
Total	$	210,482	$	166,979	$	43,130

Revenue includes excise duties of $19,143 for the year ended December 31, 2020 (2019: $13,136 and 2018: $1,200).

Long-lived assets consisting of property and equipment, net of accumulated depreciation, attributed to geographic regions based on their physical location were as follows:

	December 31,
	2020		2019
Canada	$	122,328	$	144,065
Portugal		71,988		36,908
United States		5,182		3,171
Other countries		61		73
Total	$	199,559	$	184,217

Major Customers

Two customers, in the Cannabis segment, accounted for 19% and 11%, respectively, of revenue for the year ended December 31, 2020. One customer, in the Hemp segment, accounted for 15% of revenue for the year ended December 31, 2020. Two customers, one each in the Cannabis and Hemp segments, accounted for 13% each of revenue for the year ended December 31, 2019. One customer, in the Cannabis segment, accounted for 24% of the Company’s revenue for the year ended December 31, 2018.

Three customers accounted for 17%, 16% and 11%, respectively, of the Company’s accounts receivable balance as of December 31, 2020. Two customers accounted for 20% and 10%, respectively, of the Company’s accounts receivable balance as of December 31, 2019. Two customers accounted for 30% and 16%, respectively, of the Company’s accounts receivable balance as of December 31, 2018.