SEGMENTED INFORMATION

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENTED INFORMATION [Text Block]

19. SEGMENTED INFORMATION

The Company reports its financial results for the following three operating segments, which are also its reportable segments: commercial and wholesale (primarily FGH and Cosechemos subsidiaries), house of brands (primarily JustCBD, Vessel and Kasa Wholefoods Company subsidiaries), and pharmaceuticals (primarily Grupo Farmaceutico Cronomed and Breeze Laboratory subsidiaries). These segments reflect how the Company's operations are managed, how the Company Chief Executive Officer, who is the chief operating decision maker, allocates resources and evaluates performance, and how the Company's internal management financial reporting is structured.

The Company's operates its manufacturing and distribution business in its United States, Germany, and Colombia subsidiaries. The Company also was engaged in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products through its Colombia Cosechemos subsidiary. Management has defined the reportable segments of the Company based on this internal business unit reporting, which is by major product line, and aggregates similar businesses into the house of brands segment below. The Corporate segment reflects balances and expenses that do not directly influence business unit operations.

Information regarding the Company's segments is summarized as follows:

		For the three months ended			For the three months ended			For the six months ended			For the six months ended
		June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net Sales
Commercial & Wholesale	$	10,797		$	-		$	18,755		$	-
House of Brands		13,000			10,810			26,765			15,793
Pharmaceuticals		-			-			-			-
Eliminations		(2,337	)		(1,867	)		(4,741	)		(2,649	)
	$	21,460		$	8,943		$	40,779		$	13,144
Net Loss
Commercial & Wholesale	$	(6,710	)	$	-		$	(6,737	)	$	-
House of Brands		(28,763	)		(17,354	)		(29,118	)		(18,016	)
Pharmaceuticals		(36	)		-			(81	)		-
Corp & Eliminations		(1,482	)		(5,698	)		(4,242	)		(11,291	)
	$	(36,991	)	$	(23,052	)	$	(40,178	)	$	(29,307	)

 

As at		June 30, 2023		December 31, 2022
Assets
Commercial & Wholesale	$	11,129	$	22,225
House of Brands		16,317		48,950
Pharmaceuticals		1,159		3,313
Corp & Eliminations		1,874		6,499
	$	30,479	$	80,987

Disaggregation of net sales by geographic area:

		For the three months ended		For the three months ended		For the six months ended		For the six months ended
		June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net Sales
United States	$	10,352	$	8,679	$	21,351	$	12,745
Germany		10,797		-		18,755		-
United Kingdom		311		264		673		399
	$	21,460	$	8,943	$	40,779	$	13,144

23. SEGMENTED INFORMATION

Prior to the fourth quarter of the year ended December 31, 2022, the Company had the following four operating segments, which were also its reportable segments: cannabis growth and derivative production, consumer products, pharmaceuticals and nutraceuticals, and beverage and food. Following the acquisition of FGH in December 2022 (Note 9), the Company changed the structure of its internal management financial reporting. Accordingly, in the fourth quarter of the year ended December 31, 2022, the Company began reporting its financial results for the following three operating segments, which are also its reportable segments: commercial and wholesale (primarily FGH and Cosechemos subsidiaries), house of brands (primarily JustCBD, Vessel and Kasa Wholefoods Company subsidiaries), and pharmaceuticals (primarily Grupo Farmaceutico Cronomed and Breeze Laboratory subsidiaries). These segments reflect how the Company's operations are managed, how the Company Chief Executive Officer, who is the chief operating decision maker, allocates resources and evaluates performance, and how the Company's internal management financial reporting is structured.

The Company's operates its manufacturing and distribution business its United States, Germany, and Colombia subsidiaries. The Company also is engaged in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products through its Colombia Cosechemos subsidiary. Management has defined the reportable segments of the Company based on this internal business unit reporting, which is by major product line, and aggregates similar businesses into the house of brands segment below. The Corporate segment reflects balances and expenses that do not directly influence business unit operations and includes the Company's long-term investments.

The following tables show information regarding the Company's segments for the years ended December 31, 2022 and 2021. The 2021 amounts were revised to conform to the Company's current 2022 reportable segments determination.

In 2022, the Company did not have sales to a single customer exceeding 10% of its consolidated revenue. In 2021, the Company had sales to a single customer exceeding 10% of its consolidated revenue. Sales to this customer were $1.3 million and were part of the house of brands reportable segment.

		December 31, 2022			December 31, 2021
Net Sales
Commercial & Wholesale	$	201		$	3
House of Brands		40,531			6,254
Pharmaceuticals		2,543			3,190
Eliminations		(6,104	)		(467	)
	$	37,171		$	8,980
Gross Profit
Commercial & Wholesale	$	(150	)	$	(14	)
House of Brands		13,592			1,256
Pharmaceuticals		972			1,650
Corp & Eliminations		-			(467	)
	$	14,414		$	2,425
Net Income (Loss)
Commercial & Wholesale	$	(1,643	)	$	(1,076	)
House of Brands		(31,764	)		(1,197	)
Pharmaceuticals		(1,229	)		311
Corp & Eliminations		(17,993	)		(19,399	)
	$	(52,629	)	$	(21,361	)

Other significant items:

		Commercial & Wholesale			House of Brands			Pharmaceuticals			Corporate & Eliminations			Consolidated
2022
Stock based compensation	$	-		$	-		$	-		$	3,404		$	3,404
Interest income		(19	)		(20	)		(9	)		(8	)		(56	)
Income taxes		(12	)		(1,393	)		(133	)		-			(1,538	)
Depreciation and amortization		165			2,099			174			191			2,629
Unrealized loss from changes in fair value		-			-			-			593			593
Total assets		22,225			48,950			3,313			6,499			80,987
2021
Stock based compensation	$	-		$	-		$	-		$	1,340		$	1,340
Interest expense		2			8			14			8			32
Income taxes		-			(127	)		29			-			(98	)
Depreciation and amortization		168			208			58			67			501
Unrealized loss from changes in fair value		-			-			-			2,345			2,345
Total assets		3,040			36,912			4,602			40,925			85,479

Disaggregation of net sales and net loss before income taxes by geographic area:

		December 31, 2022		December 31, 2021
Net Sales
United States	$	32,504	$	1,681
Germany		87		-
Colombia		3,578		6,919
United Kingdom		1,002		-
Canada		-		380
	$	37,171	$	8,980

 

		December 31, 2022			December 31, 2021
Net Loss Before Income Taxes
United States	$	(27,867	)	$	(750	)
Germany		(121	)		-
Colombia		(6,059	)		(3,312	)
United Kingdom		(3,120	)		-
Canada		(17,000	)		(17,397	)
	$	(54,167	)	$	(21,459	)

Disaggregation of property, plant and equipment and other long-lived assets by geographic area:

		December 31, 2022		December 31, 2021
Property, Plant and Equipment
United States	$	759	$	117
Germany		459		-
Colombia		3,592		3,633
	$	4,810	$	3,750

 

		December 31, 2022		December 31, 2021
Other Long-lived Assets
United States	$	33,332	$	29,533
Germany		9,969		-
Colombia		800		409
United Kingdom		191		-
Canada		730		3,844
	$	45,022	$	33,786

 

		December 31, 2022		December 31, 2021
Total Assets
United States	$	45,341	$	31,847
Germany		19,382		-
Colombia		8,122		12,439
United Kingdom		559		-
Canada		7,583		41,193
	$	80,987	$	85,479