Village Farms International, Inc. Segments Disclosure
15. 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. We believe that segment operating (loss) income is a useful measure because it allows management, analysts, investors, and other interested parties to evaluate the profitability of our business operations before the effects of certain expenses that directly arise from non-operating activities (other income/expense), financing decisions (interest), and tax strategies (income taxes).
Segment reporting is prepared on the same basis that the Company’s , who is the CODM, manages the business, makes operating decisions and assesses performance. Management has determined that the Company operates in five reportable segments: Cannabis-Canada, Cannabis-U.S., Cannabis - Netherlands (previously Leli), Produce, and Clean Energy. The Cannabis-Canada segment produces and supplies cannabis products to be sold to provincial governments across Canada, exports to other countries, and other licensed providers. The Cannabis-U.S. segment develops and sells high-quality, CBD-based health and wellness products including ingestible, edible and topical applications in the United States, where it is legal to do so. The Cannabis - Netherlands segment produces and supplies cannabis products in the Netherlands, to be sold to designated coffee shops. The Produce segment, subsequent to the Transaction, produces premium quality tomatoes in Delta, British Columbia, sold through the Vanguard Food Holding, LLC group. The Clean Energy business receives a royalty representing a portion of the renewable natural gas that is sold to one customer pursuant to a long-term contract.
The accounting policies of the segments are the same as those described in the summary of business, basis of presentation and significant accounting policies. The Company evaluates performance for all of its reportable segments based on segment operating income (loss) from operations.
For all of its reportable segments, the The CODM considers budget-to-actual variances on a monthly basis for the operating income (loss) when making decisions about allocating capital and personnel to the segments and to assess the performance for each segment by comparing the results with one another.
Discontinued operations are not included in the applicable reportable segments.
The following tables reflect the reconciliation of segment revenue, measures of segments profit or loss, and significant segment expenses reconciled to the consolidated income (loss) before income taxes:
|
For the Year Ended December 31, 2025 |
|
|||||||||||||||||||||
|
Produce |
|
|
Cannabis Canada |
|
|
Cannabis U.S. |
|
|
Clean |
|
|
Cannabis Netherlands |
|
|
Total |
|
||||||
Sales to external customers |
$ |
26,295 |
|
|
|
163,710 |
|
|
|
14,439 |
|
|
|
1,635 |
|
|
|
9,858 |
|
|
|
215,937 |
|
Cost of sales |
|
(25,438 |
) |
|
|
(92,172 |
) |
|
|
(5,416 |
) |
|
|
(274 |
) |
|
|
(4,955 |
) |
|
|
(128,255 |
) |
Selling, general and administrative expenses |
|
(2,792 |
) |
|
|
(34,872 |
) |
|
|
(9,585 |
) |
|
|
(48 |
) |
|
|
(2,849 |
) |
|
|
(50,146 |
) |
Segment operating (loss) income |
$ |
(1,935 |
) |
|
$ |
36,666 |
|
|
$ |
(562 |
) |
|
$ |
1,313 |
|
|
$ |
2,054 |
|
|
$ |
37,536 |
|
Reconciliation of segment operating (loss) income to net loss before taxes and loss from equity method investments |
|
||||||||||||||||||||||
Other income, net (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,187 |
|
|||||
Other impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(217 |
) |
|||||
Other corporate expenses (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,147 |
) |
|||||
Income before taxes and income from equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
31,359 |
|
|||||
|
For the Year Ended December 31, 2024 |
|
|||||||||||||||||||||
|
Produce |
|
|
Cannabis Canada |
|
|
Cannabis U.S. |
|
|
Clean |
|
|
Cannabis Netherlands |
|
|
Total |
|
||||||
Sales to external customers |
$ |
28,909 |
|
|
$ |
148,856 |
|
|
$ |
17,390 |
|
|
$ |
752 |
|
|
$ |
— |
|
|
$ |
195,907 |
|
Cost of sales |
|
(25,450 |
) |
|
|
(118,172 |
) |
|
|
(6,355 |
) |
|
|
(129 |
) |
|
|
— |
|
|
|
(150,106 |
) |
Selling, general and administrative expenses |
|
(2,949 |
) |
|
|
(34,028 |
) |
|
|
(11,990 |
) |
|
|
(38 |
) |
|
|
(1,555 |
) |
|
|
(50,560 |
) |
Segment operating income (loss) |
$ |
510 |
|
|
$ |
(3,344 |
) |
|
$ |
(955 |
) |
|
$ |
585 |
|
|
$ |
(1,555 |
) |
|
$ |
(4,759 |
) |
Reconciliation of segment operating (loss) income to net loss before taxes and loss from equity method investments |
|
||||||||||||||||||||||
Other expense, net (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,279 |
) |
|||||
Impairment of goodwill and intangibles |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,939 |
) |
|||||
Other impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(439 |
) |
|||||
Other corporate expenses (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,188 |
) |
|||||
Loss before taxes and loss from equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(29,604 |
) |
|||||
|
For the Year Ended December 31, 2023 |
|
|||||||||||||||||||||
|
Produce |
|
|
Cannabis Canada |
|
|
Cannabis U.S. |
|
|
Clean |
|
|
Cannabis Netherlands |
|
|
Total |
|
||||||
Sales to external customers |
$ |
28,749 |
|
|
$ |
114,030 |
|
|
$ |
20,330 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
163,109 |
|
Cost of sales |
|
(30,044 |
) |
|
|
(78,090 |
) |
|
|
(7,002 |
) |
|
|
(21 |
) |
|
|
— |
|
|
|
(115,157 |
) |
Selling, general and administrative expenses |
|
(1,838 |
) |
|
|
(29,275 |
) |
|
|
(13,118 |
) |
|
|
(32 |
) |
|
|
(1,265 |
) |
|
|
(45,528 |
) |
Segment operating (loss) income |
$ |
(3,133 |
) |
|
$ |
6,665 |
|
|
$ |
210 |
|
|
$ |
(53 |
) |
|
$ |
(1,265 |
) |
|
$ |
2,424 |
|
Reconciliation of segment operating (loss) income to net loss before taxes and loss from equity method investments |
|
||||||||||||||||||||||
Other expense, net (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,843 |
) |
|||||
Impairment of goodwill and intangibles |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,020 |
) |
|||||
Other corporate expenses (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,186 |
) |
|||||
Loss before taxes and loss from equity method investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(25,625 |
) |
|||||
(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 summarizes our interest income, interest expense, depreciation and amortization, other significant non-cash items, and expenditures for capital assets by operating segment:
|
For the Year Ended December 31, 2025 |
|
||||||||||||||||||||||
|
Produce |
|
Cannabis Canada |
|
Cannabis U.S. |
|
Clean |
|
Cannabis Netherlands |
|
Segment Totals |
|
Corporate |
|
Consolidated Totals |
|
||||||||
Interest income |
$ |
65 |
|
$ |
412 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
477 |
|
$ |
686 |
|
$ |
1,163 |
|
Interest expense |
$ |
1,571 |
|
$ |
1,133 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
2,704 |
|
$ |
- |
|
$ |
2,704 |
|
Depreciation and amortization |
$ |
3,881 |
|
$ |
10,826 |
|
$ |
192 |
|
$ |
- |
|
$ |
1,351 |
|
$ |
16,250 |
|
$ |
129 |
|
$ |
16,379 |
|
Share based compensation |
$ |
18 |
|
$ |
380 |
|
$ |
81 |
|
$ |
- |
|
$ |
5 |
|
$ |
484 |
|
$ |
1,257 |
|
$ |
1,741 |
|
Other significant noncash items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-cash lease expense |
$ |
105 |
|
$ |
84 |
|
$ |
762 |
|
$ |
- |
|
$ |
- |
|
$ |
951 |
|
$ |
- |
|
$ |
951 |
|
Inventory and other impairments |
$ |
- |
|
$ |
- |
|
$ |
217 |
|
$ |
- |
|
$ |
- |
|
$ |
217 |
|
$ |
- |
|
$ |
217 |
|
Expenditures for segment assets |
$ |
766 |
|
$ |
5,811 |
|
$ |
17 |
|
$ |
- |
|
$ |
11,625 |
|
$ |
18,219 |
|
$ |
- |
|
$ |
18,219 |
|
|
For the Year Ended December 31, 2024 |
|
||||||||||||||||||||||
|
Produce |
|
Cannabis Canada |
|
Cannabis U.S. |
|
Clean |
|
Cannabis Netherlands |
|
Segment Totals |
|
Corporate |
|
Consolidated Totals |
|
||||||||
Interest income |
$ |
4 |
|
$ |
484 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
488 |
|
$ |
426 |
|
$ |
914 |
|
Interest expense |
$ |
2,237 |
|
$ |
1,112 |
|
$ |
- |
|
$ |
16 |
|
$ |
- |
|
$ |
3,365 |
|
$ |
- |
|
$ |
3,365 |
|
Depreciation and amortization |
$ |
3,258 |
|
$ |
11,790 |
|
$ |
204 |
|
$ |
- |
|
$ |
1,275 |
|
$ |
16,527 |
|
$ |
196 |
|
$ |
16,723 |
|
Share based compensation |
$ |
- |
|
$ |
166 |
|
$ |
79 |
|
$ |
- |
|
$ |
- |
|
$ |
245 |
|
$ |
3,502 |
|
$ |
3,747 |
|
Other significant noncash items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-cash lease expense |
$ |
127 |
|
$ |
86 |
|
$ |
518 |
|
$ |
- |
|
$ |
- |
|
$ |
731 |
|
$ |
- |
|
$ |
731 |
|
Impairments of goodwill and intangibles |
$ |
- |
|
$ |
- |
|
$ |
11,939 |
|
$ |
- |
|
$ |
- |
|
$ |
11,939 |
|
$ |
- |
|
$ |
11,939 |
|
Inventory and other impairments |
$ |
- |
|
$ |
10,522 |
|
$ |
439 |
|
$ |
- |
|
$ |
- |
|
$ |
10,961 |
|
$ |
- |
|
$ |
10,961 |
|
Expenditures for segment assets |
$ |
809 |
|
$ |
261 |
|
$ |
37 |
|
$ |
- |
|
$ |
6,061 |
|
$ |
7,168 |
|
$ |
- |
|
$ |
7,168 |
|
|
For the Year Ended December 31, 2023 |
|
||||||||||||||||||||||
|
Produce |
|
Cannabis Canada |
|
Cannabis U.S. |
|
Clean |
|
Cannabis Netherlands |
|
Segment Totals |
|
Corporate |
|
Consolidated Totals |
|
||||||||
Interest income |
$ |
9 |
|
$ |
157 |
|
$ |
24 |
|
$ |
- |
|
$ |
- |
|
$ |
190 |
|
$ |
828 |
|
$ |
1,018 |
|
Interest expense |
$ |
2,318 |
|
$ |
2,177 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
4,495 |
|
$ |
- |
|
$ |
4,495 |
|
Depreciation and amortization |
$ |
625 |
|
$ |
11,790 |
|
$ |
204 |
|
$ |
- |
|
$ |
1,275 |
|
$ |
13,894 |
|
$ |
196 |
|
$ |
14,090 |
|
Share based compensation |
$ |
- |
|
$ |
61 |
|
$ |
317 |
|
$ |
- |
|
$ |
- |
|
$ |
378 |
|
$ |
2,733 |
|
$ |
3,111 |
|
Other significant noncash items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-cash lease expense |
$ |
497 |
|
$ |
118 |
|
$ |
578 |
|
$ |
- |
|
$ |
- |
|
$ |
1,193 |
|
$ |
- |
|
$ |
1,193 |
|
Impairments of goodwill and intangibles |
$ |
- |
|
$ |
- |
|
$ |
14,020 |
|
$ |
- |
|
$ |
- |
|
$ |
14,020 |
|
$ |
- |
|
$ |
14,020 |
|
Expenditures for segment assets |
$ |
1,514 |
|
$ |
914 |
|
$ |
218 |
|
$ |
- |
|
$ |
958 |
|
$ |
3,604 |
|
$ |
- |
|
$ |
3,604 |
|
The following tables summarizes our total assets by operating segment for the years ended December 31:
|
|
2025 |
|
|
2024 |
|
||
Assets |
|
|
|
|
|
|
||
Produce |
|
$ |
48,831 |
|
|
$ |
51,983 |
|
Cannabis - Canada |
|
|
306,886 |
|
|
|
266,433 |
|
Cannabis - United States |
|
|
5,187 |
|
|
|
6,728 |
|
Clean Energy |
|
|
207 |
|
|
|
360 |
|
Cannabis Netherlands |
|
|
23,355 |
|
|
|
11,093 |
|
Total assets for reportable segments |
|
$ |
384,466 |
|
|
$ |
336,597 |
|
Corporate |
|
|
38,630 |
|
|
|
7,360 |
|
Consolidated total |
|
$ |
423,096 |
|
|
$ |
343,957 |
|
For years ended December 31, 2025, 2024 and 2023, approximately 7%, 24% and 30%, respectively, of the Company’s total sales were in the United States and approximately 71%, 73%, and 67%, respectively, of the Company's total sales were in Canada. In 2025, the Company had three customers that individually represented more than 10% of total sales, comprising of 18.2%, 13.5%, and 10.2%. In 2024, the Company had two customers that individually represented more than 10% of total sales, comprising of 14.1% and 10.2%. In 2023, the Company had one customer that individually represented more than 10% of total sales, comprising of 11.9%.
As of December 31, 2025, the Company’s trade receivables included two customers that represented more than 10% of the balance of trade receivables, representing 19.4% and 14.5% of the balance. As of December 31, 2024, the Company’s trade receivables included two customers that represented more than 10% of the balance of trade receivables, representing 26.7% and 13.4% of the balance.
The Company’s primary operations are in the United States and Canada. The following tables summarizes our assets by geographic location for the years ended December 31:
Total assets |
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
36,039 |
|
|
$ |
46,922 |
|
Canada |
|
|
363,702 |
|
|
|
285,942 |
|
Netherlands |
|
|
23,355 |
|
|
|
11,093 |
|
|
|
$ |
423,096 |
|
|
$ |
343,957 |
|
|
|
|
|
|
|
|
||
Long-lived assets |
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
28,970 |
|
|
$ |
26,930 |
|
Canada |
|
|
218,582 |
|
|
|
216,061 |
|
Netherlands |
|
|
21,107 |
|
|
|
9,866 |
|
|
|
$ |
268,659 |
|
|
$ |
252,857 |
|
|
|
|
|
|
|
|
||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 13, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.