4Front Ventures (FFNTF) 10-Q 15 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 15, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	000-56075
Entity Registrant Name	4Front Ventures Corp.
Entity Incorporation, State or Country Code	A1
Entity Tax Identification Number	83-4168417
Entity Address, Address Line One	7010 E. Chauncey Lane
Entity Address, Address Line Two	Suite 235
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85054
City Area Code	602
Local Phone Number	633-3067
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		648,583,519
Entity Central Index Key	0001783875
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Subordinate Voting Share
Document Information [Line Items]
Title of 12(b) Security	Class A Subordinate Voting Shares, no par value
Trading Symbol	FFNTF
ADR
Document Information [Line Items]
Title of 12(b) Security	Class A Subordinate Voting Shares, no par value
Trading Symbol	FFNT

CONDENSED CONSOLIDATED INTERIM

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash	$ 5,350	$ 15,190
Accounts receivable, net	10,141	7,391
Other receivables	245	77
Current portion of lease receivables	3,900	3,810
Inventory	25,365	25,592
Prepaid expenses and other assets	2,442	1,207
Total current assets	47,443	53,267
Property, plant, and equipment, net	55,482	56,906
Lease receivables	4,851	5,611
Intangible assets, net	29,531	30,927
Goodwill	53,926	53,955
Right-of-use assets	135,577	138,451
Deposits	3,696	5,615
TOTAL ASSETS	330,506	344,732
Current liabilities:
Accounts payable	14,724	12,701
Accrued expenses and other current liabilities	13,069	14,265
Taxes payable	41,194	36,577
Current portion of contract liabilities	639	369
Current portion of lease liability	3,638	4,479
Current portion of notes payable and accrued interest	7,946	9,059
Total current liabilities	81,210	77,450
Convertible notes	15,398	14,843
Notes payable and accrued interest from related party	50,451	49,807
Long term notes payable	10,744	10,456
Long term accounts payable	1,733	1,362
Contract liabilities	2,000	2,000
Construction finance liability	16,000	16,000
Deferred tax liability	7,614	8,278
Lease liability	137,530	136,185
TOTAL LIABILITIES	322,680	316,381
SHAREHOLDERS' EQUITY
Subordinate Voting Shares (no par value, unlimited shares authorized, 649,859,727 and 643,416,275 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively)	305,699	304,602
Additional paid-in capital	60,645	59,411
Deficit	(358,621)	(335,755)
Equity attributable to 4Front Ventures Corp.	7,723	28,258
Non-controlling interest	103	93
TOTAL SHAREHOLDERS' EQUITY	7,826	28,351
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 330,506	$ 344,732

CONDENSED CONSOLIDATED INTERI_2

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (unaudited) (Parenthetical) - shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, shares issued (in shares)	649,859,727	643,416,275
Common stock, shares outstanding (in shares)	649,859,727	643,416,275

CONDENSED CONSOLIDATED INTERI_3

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUE
Revenue from sale of goods	$ 27,696	$ 25,488	$ 55,066	$ 48,571
Real estate income	3,000	2,951	6,006	5,916
Total revenues	30,696	28,439	61,072	54,487
Cost of goods sold	(21,100)	(16,123)	(40,488)	(28,717)
Gross profit	9,596	12,316	20,584	25,770
OPERATING EXPENSES
Selling and marketing expenses	6,748	6,384	13,786	11,493
General and administrative expenses	7,533	6,556	15,389	14,210
Depreciation and amortization	866	1,123	1,736	1,970
Share-based compensation	214	390	1,234	1,428
Transaction and restructuring related expenses	17	2,009	17	2,009
Total operating expenses	15,378	16,462	32,162	31,110
Loss from operations	(5,782)	(4,146)	(11,578)	(5,340)
Other income (expense)
Interest income	7	0	21	2
Interest expense	(3,075)	(3,418)	(6,271)	(6,038)
Change in fair value of derivative liability	0	1,774	0	3,074
Gain on contingent consideration payable	0	2,393	0	2,393
Loss on litigation settlement	0	0	(3)	0
Other	(663)	(107)	(8)	(51)
Total other income (expense), net	(3,731)	642	(6,261)	(620)
Net loss before income taxes	(9,513)	(3,504)	(17,839)	(5,960)
Income tax expense	(1,951)	(3,042)	(5,017)	(6,480)
Net loss	(11,464)	(6,546)	(22,856)	(12,440)
Net income attributable to non-controlling interest	5	5	10	10
Net loss attributable to shareholders	$ (11,469)	$ (6,551)	$ (22,866)	$ (12,450)
Basic loss per share (in dollar per share)	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.02)
Diluted loss per share (in dollar per share)	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.02)
Weighted average number of shares outstanding, basic (in shares)	646,690,827	636,653,975	644,415,447	628,175,765
Weighted average number of shares outstanding, diluted (in shares)	646,690,827	636,653,975	644,415,447	628,175,765

CONDENSED CONSOLIDATED INTERI_4

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Total	New England Cannabis Corporation	Island Global Holdings, Inc.	Total 4Front Ventures Corp. Shareholders' Equity	Total 4Front Ventures Corp. Shareholders' Equity New England Cannabis Corporation	Total 4Front Ventures Corp. Shareholders' Equity Island Global Holdings, Inc.	Share Capital	Share Capital New England Cannabis Corporation	Share Capital Island Global Holdings, Inc.	Additional Paid-In Capital	Deficit	Non-Controlling Interest
Beginning balance (in shares) at Dec. 31, 2021							594,181,604
Beginning balance at Dec. 31, 2021	$ 37,532			$ 37,460			$ 274,120			$ 52,197	$ (288,857)	$ 72
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for pursuant to acquisition (in shares)								28,571,428
Shares issued for pursuant to acquisition		$ 18,200			$ 18,200			$ 18,200
Share-based compensation	1,038			1,038						1,038
Conversion of notes to equity (in shares)							6,235,512
Conversion of notes to equity	3,122			3,122			$ 3,122
Shares issued with exercise of warrants (in shares)							88,659
Shares issued with exercise of warrants	50			50			$ 50
Net loss	(5,894)			(5,899)							(5,899)	5
Ending balance (in shares) at Mar. 31, 2022							629,077,203
Ending balance at Mar. 31, 2022	54,048			53,971			$ 295,492			53,235	(294,756)	77
Beginning balance (in shares) at Dec. 31, 2021							594,181,604
Beginning balance at Dec. 31, 2021	37,532			37,460			$ 274,120			52,197	(288,857)	72
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(12,440)
Ending balance (in shares) at Jun. 30, 2022							637,912,894
Ending balance at Jun. 30, 2022	54,902			54,820			$ 302,502			53,625	(301,307)	82
Beginning balance (in shares) at Mar. 31, 2022							629,077,203
Beginning balance at Mar. 31, 2022	54,048			53,971			$ 295,492			53,235	(294,756)	77
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for pursuant to acquisition (in shares)									8,783,716
Shares issued for pursuant to acquisition			$ 6,245			$ 6,245			$ 6,245
Share-based compensation	390			390						390
Warrants issued for Island pursuant to acquisition	732			732			$ 732
Shares issued with exercise of stock options (in shares)							51,975
Shares issued with exercise of stock options	33			33			$ 33
Net loss	(6,546)			(6,551)							(6,551)	5
Ending balance (in shares) at Jun. 30, 2022							637,912,894
Ending balance at Jun. 30, 2022	$ 54,902			54,820			$ 302,502			53,625	(301,307)	82
Beginning balance (in shares) at Dec. 31, 2022	643,416,275						643,416,275
Beginning balance at Dec. 31, 2022	$ 28,351			28,258			$ 304,602			59,411	(335,755)	93
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	1,020			1,020						1,020
Net loss	(11,392)			(11,397)							(11,397)	5
Ending balance (in shares) at Mar. 31, 2023							643,416,275
Ending balance at Mar. 31, 2023	$ 17,979			17,881			$ 304,602			60,431	(347,152)	98
Beginning balance (in shares) at Dec. 31, 2022	643,416,275						643,416,275
Beginning balance at Dec. 31, 2022	$ 28,351			28,258			$ 304,602			59,411	(335,755)	93
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued to settle payables (in shares)	6,443,452
Net loss	$ (22,856)
Ending balance (in shares) at Jun. 30, 2023	649,859,727						649,859,727
Ending balance at Jun. 30, 2023	$ 7,826			7,723			$ 305,699			60,645	(358,621)	103
Beginning balance (in shares) at Mar. 31, 2023							643,416,275
Beginning balance at Mar. 31, 2023	17,979			17,881			$ 304,602			60,431	(347,152)	98
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued for pursuant to acquisition (in shares)							2,380,952
Shares issued for pursuant to acquisition	447			447			$ 447
Share-based compensation	214			214						214
Shares issued to settle payables (in shares)							4,062,500
Shares issued to settle payables	650			650			$ 650
Net loss	$ (11,464)			(11,469)							(11,469)	5
Ending balance (in shares) at Jun. 30, 2023	649,859,727						649,859,727
Ending balance at Jun. 30, 2023	$ 7,826			$ 7,723			$ 305,699			$ 60,645	$ (358,621)	$ 103

CONDENSED CONSOLIDATED INTERI_5

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (22,856)	$ (12,440)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,878	4,689
Equity based compensation	1,234	1,428
Change in fair value of derivative liability	0	(3,074)
Accretion of lease liability	3,378	2,803
Change in contingent consideration payable	0	(2,393)
Accretion of debt discount	185	0
Accrued interest on convertible debenture and interest	452	564
Accrued interest on notes payable	4,671	3,614
Interest accrued - lease receivable	670	432
Deferred taxes	(663)	(965)
Adjustment to goodwill	29	0
Changes in operating assets and liabilities:
Accounts receivable, net	(2,750)	(3,022)
Other receivables	(168)	256
Prepaid expenses and other assets	(538)	(318)
Inventory	227	(5,302)
Accounts payable	3,044	4,260
Accrued expenses and other current liabilities	(1,195)	679
Contract liabilities	270	0
Taxes payable	4,617	5,683
Deposits	319	222
NET CASH USED IN OPERATING ACTIVITIES	(4,196)	(2,884)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for asset acquisitions and business combinations, net of cash received	(250)	(24,540)
Proceeds from note receivable	0	109
Purchases of property and equipment	(460)	(2,249)
NET CASH USED IN INVESTING ACTIVITIES	(710)	(26,680)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of contingent consideration	0	(412)
Proceeds from issuance of construction financing liability	0	16,000
Proceeds from the exercise of warrants	0	50
Proceeds from the exercise of stock options	0	33
Repayments of notes payable	(4,934)	(2,656)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(4,934)	13,015
NET DECREASE IN CASH	(9,840)	(16,549)
CASH, BEGINNING OF PERIOD	15,190	22,581
CASH, END OF PERIOD	5,350	6,032
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	114	3,174
Cash paid for income taxes	1,064	2,100
Non-cash investing and financing activities:
Issuance of equity for business combinations	0	24,445
Issuance of warrants for business acquisition	0	732
ROU assets and lease liabilities acquired through business acquisition	0	10,227
Issuance of equity for asset acquisition	447	0
Shares issued to settle payables	650	0
Property, plant and equipment acquired through business combination	0	17,452
Issuance of note payable for business combination	0	12,000
Note payable acquired through business combination	0	245
Inventory acquired through business combination	0	3,285
Issuance of Debt to acquire property and equipment	0	14
Inventory acquired through issuance of note payable	0	163
Note payable issued to satisfy accrued expenses	0	961
Termination of new right-of-use assets and lease liabilities	$ 0	$ 2,020

Nature of Operations

Nature of Operations	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	NATURE OF OPERATIONS 4Front Ventures Corp. (“4Front” or the “Company”) exists pursuant to the provisions of the British Columbia Corporations Act. The Company operates the business through two segments: THC Cannabis and CBD Wellness. As of June 30, 2023, the Company's THC Cannabis segment consists o f six dispensaries and seven production and cultivation facilities across Illinois, Michigan, Massachusetts, and California. Also, as part of its THC Cannabis segment, the Company leases real estate and sells equipment, supplies, and intellectual property to cannabis producers in the state of Washington. The Company’s CBD Wellness segment sells non-THC hemp derived products across the United States. The unaudited condensed consolidated interim financial statements include the accounts of 4Front and all entities in which the Company either has a controlling voting interest or is the primary beneficiary of a variable interest entity in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company has prepared these statements pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC) and U.S. GAAP. Certain information related to the organization, significant accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted. In the opinion of management, the financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. Operating results for interim periods are not necessarily indicative of results you can expect for a full year. These financials should be read in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Going Concern As of June 30, 2023, the Company had cash and cash equivalents of $5.4 million and working capital deficit of $33.8 million. The Company incurred net losses of $11.5 million and $6.5 million for the three months ended June 30, 2023 and 2022, respectively, and $22.9 million and $12.4 million for the six months ended June 30, 2023 and 2022, respectively. The conditions described above raise substantial doubt with respect to the Company’s ability to meet its obligations for at least one year from the issuance of these consolidated financial statements, and therefore, to continue as a going concern. The Company plans to continue to fund its operations through cash generated from sales and is deploying its capital reserves to acquire and develop assets capable of producing additional revenues and earnings over both the immediate and near term. Capital reserves are being utilized for capital expenditures and improvements in existing facilities, product development and marketing, as well as customer, supplier and investor and industry relations. The Company has raised capital as needed, however there is no guarantee the Company will be able to continue to raise funds in the same manner it has historically. Management's Estimates and Assumptions The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. We cannot predict what future laws and regulations might be passed that could have a material effect on our results of operations. We assess the impact of significant changes in laws and regulations on a regular basis and update the assumptions and estimates used to prepare our financial statements when we deem it necessary. Actual results may differ from these estimates. The most critical and subjective areas are discussed in detail in the notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. There have been no changes to the Company's accounting policies since the Annual Report. New Accounting Pronouncements Accounting Standard Updates Issued but Not Yet Adopted In June 2022, the FASB issued ASU 2022-03, "Fair Value Measurements - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820) ". ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. It also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted and the amendments in the ASU should be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. The Company is currently assessing the impact of adopting ASU 2022-03 on the consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, “ Leases (Topic 842) – Common Control Arrangement s”, which require that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset. It also requires such leasehold improvements to be accounted for as a transfer between entities under common control through an adjustment to entity if, and when, the lessee no longer controls the use of the underlying asset. ASU 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of adopting ASU 2023-01 on the consolidated financial statements.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventory	INVENTORY The Company’s inventories are summarized in the table below: June 30, 2023 December 31, 2022 Raw materials - unharvested cannabis $ 4,032 $ 2,688 Raw materials - harvested and purchased cannabis 7,372 7,956 Packaging and other non-finished goods 27 2,468 Work in process - manufactured and purchased extracts 3,276 3,635 Finished goods 10,658 8,845 Total inventory $ 25,365 $ 25,592

Property, Plant, and Equipment

Property, Plant, and Equipment	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property, Plant, and Equipment	PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment and related depreciation are summarized in the table below: June 30, 2023 December 31, 2022 Land $ 774 $ 774 Buildings & improvements 13,446 13,784 Construction in process 2,657 82 Furniture, equipment & other 18,916 19,296 Leasehold improvements 36,297 36,287 Total $ 72,090 $ 70,223 Less: accumulated depreciation (16,608) (13,317) Total property, plant, and equipment, net $ 55,482 $ 56,906 Depreciation expense for the three months ended June 30, 2023 and 2022 was $1.8 million and $2.2 million, respectively, of which $1.6 million and $1.8 million, respectively, is included in cost of goods sold. Depreciation expense for the six months ended June 30, 2023 and 2022 was $3.5 million and $3.4 million, respectively, of which $3.1 million and $2.7 million, respectively, is included in cost of goods sold. Unless specifically excluded in the LI Lending note, all property, plant, and equipment is secured by LI Lending as collateral on the LI Lending note (Note 7). On October 27, 2022, the Company amended its lease agreement for the Company’s facility located in Matteson, Illinois by creating an option to increase the tenant improvement allowance for the facility between $15.0 million and $19.9 million. On November 10, 2022, the Company exercised its option and entered into a Second Amendment to Lease Agreement, increasing the tenant improvement allowance under the lease by $19.9 million; extending the term of the lease to 20 years after the amendment; increasing the base rent by $0.2 million per month (abated until April 1, 2023); and increasing the security deposit by $2.2 million, to be funded pro rata out of draws on the tenant improvement allowance.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	INTANGIBLE ASSETS AND GOODWILL Intangible Assets Intangible assets and related amortization are summarized in the table below: Licenses Customer Relationships Non-Compete Agreements Know-How Tradenames and Trademarks Total Gross Carrying Amount, June 30, 2023 and December 31, 2022 $ 25,662 $ 2,900 $ 249 $ 9,700 $ 2,022 $ 40,533 Accumulated Amortization, December 31, 2022 $ — $ (2,393) $ (249) $ (6,628) $ (336) $ (9,606) Amortization Expense — (290) — (970) (136) (1,396) Accumulated Amortization, June 30, 2023 $ — $ (2,683) $ (249) $ (7,598) $ (472) $ (11,002) During the six months ended June 30, 2023, the Company entered into an agreement to acquire a dispensary license from Euphoria, LLC. Refer to Note 5 for further details on the transaction. Goodwill Balance, December 31, 2022 $ 53,955 Adjustment to Acquisitions (29) Balance, June 30, 2023 $ 53,926 Impairment of Intangible Assets and Goodwill Goodwill as of June 30, 2023 is related to the THC Cannabis segment in which there is no accumulated impairment within this segment. Goodwill related to the CBD Wellness segment has an accumulated impairment charge of $13.4 million, which represented the entire balance and occurred during the year ended December 31, 2020. As of June 30, 2023 and December 31, 2022, all goodwill and intangibles are attributable to the THC Cannabis segment.

Asset Acquisitions

Asset Acquisitions	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Asset Acquisitions	ASSET ACQUISITIONS Euphoria, LLC On March 27, 2023, the Company entered into a Membership Interest Purchase Agreement to acquire 100% of the issued and outstanding equity interests in Euphoria, LLC ("Euphoria") for a total purchase price of $4.5 million to be paid in cash, promissory notes, and Class A Subordinate Voting Shares. Euphoria holds a conditional adult use dispensary license in the state of Illinois which shall convert to a state license upon regulatory approval. The transfer of the license is subject to regulatory approval. As of June 30, 2023, the Company has paid $0.3 million in cash and issued 2,308,952 Class A Subordinate Voting Shares valued at $0.4 million based on the closing stock price of the SVS on the issuance date. In certain events as defined in this agreement, such as, but not limited to the inability to obtain regulatory approval, all consideration paid by the Company to the sellers are refundable. The remaining consideration will be due upon regulatory approval at the closing date. In the event of termination by the Company under certain circumstances, the Company shall pay a breakup fee of $3.5 million to the sellers, less any portion of the purchase price already paid. Conversely, in the event of termination by the sellers under certain circumstances, the sellers shall pay a breakup fee of $3.5 million to the Company.

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	LEASES The Company as a Lessor: Lease income for operating and direct financing leases for the periods presented are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Real estate income: Operating leases $ 2,401 $ 2,275 $ 4,785 $ 4,548 Direct financing leases 599 676 1,221 1,368 Total real estate income $ 3,000 $ 2,951 $ 6,006 $ 5,916 The Company leases buildings in Olympia, Washington, Elk Grove, Illinois and Commerce, California that are subleased or partly subleased to a third party. The subleases are classified as operating leases under ASC 842. The underlying assets are presented in the condensed consolidated balances sheets as follows: June 30, 2023 December 31, 2022 Right-of-use assets $ 35,518 $ 36,596 Current portion of lease liability $ 1,655 $ 1,568 Long-term portion of lease liability $ 31,342 $ 31,904 The Company also leases a building in Elma, Washington that is subleased to a third party. This sublease is classified as a finance lease. A reconciliation of the lease receivables is as follows: June 30, 2023 December 31, 2022 Balance, December 31, 2022 $ 9,421 $ 10,378 Interest 1,221 2,673 Lease payments received (1,891) (3,630) Balance, June 30, 2023 8,751 9,421 Less current portion (3,900) (3,810) Long-term lease receivables $ 4,851 $ 5,611

Notes Payable and Convertible N

Notes Payable and Convertible Notes	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Notes Payable and Convertible Notes	NOTES PAYABLE AND CONVERTIBLE NOTES The Company’s notes payable and convertible notes are as follows: Terms June 30, 2023 December 31, 2022 Secured promissory notes dated May 10, 2019, as subsequently amended, with a related party drawn in two tranches: (i) $35.0 million bearing interest at 12.75% and (ii) $10.0 million bearing interest at 14.75%, which mature on May 10, 2024 (2) $ 50,451 $ 49,807 Convertible promissory note dated October 6, 2021, which mature on October 6, 2024 and bear interest at a rate of 6% per annum 15,398 14,843 Unsecured convertible promissory note at $0.50 per share due December 18, 2023 at 12% per annum through May 2023 and 14% per annum through December 2023 3,843 3,554 Promissory note issued for the acquisition of NECC due January 7, 2023 at 10% per annum — 519 Promissory note issued for the acquisition of Island due October 25, 2026 at 6% per annum 10,728 10,431 Secured promissory note due February 28, 2023 at 1.5% monthly interest for three months and 2% monthly interest for three months (1) 2,354 3,230 Unsecured promissory note due September 30, 2023, monthly interest payments at 12% per annum 1,730 1,730 Various 35 51 Total Notes Payable and Convertible Notes $ 84,539 $ 84,165 (1) The Company is in default of the secured promissory note as of June 30, 3023. Management is renegotiating terms of the promissory note as of the date of these consolidated financial statements. (2) The Company has executed an amendment to the LL Lending loan agreement on July 31, 2023 to extend the maturity date to May 1, 2026 and to reduce the interest rate to 12%. In accordance with the conditions specified in ASC 470-10-45-14, the related party loan is classified as a long term liability in the consolidated balance sheet as of June 30, 2023. LI Lending LLC On May 10, 2019, the Company entered into a loan agreement with LI Lending LLC, a related party, for $50.0 million, of which $43.0 million was drawn as of June 30, 2023 in two amounts: (i) $35.0 million bearing interest at a rate of 10.25% and (ii) $10.0 million bear interest at a rate of of 12.25%. The loan matures on May 10, 2024 upon the Company shall pay an exit fee of 20% of the remaining principal balance. In April 2020, the loan was amended to release certain assets previously held as collateral and to make principal prepayments totaling $2.0 million applied to the initial $35.0 million amount, decreasing the principal balance to $33.0 million. In December 2020, the loan was amended to increase the interest rate by 2.5% of which payments of the incremental interest were paid-in-kind until January 1, 2022. The Company was still required to make interest-only payments monthly of 10.25% on the initial $33.0 million and 12.25% on the final $10.0 million of the loan until January 1, 2022, when monthly interest rates were increased to 12.75% for the initial $35.0 million and 14.75% for the final $10.0 million for the remaining term. For the three months ended June 30, 2023 and 2022, the Company recognized accrued interest expense of $1.9 million and $1.5 million , respectively, on the related party loan and made $1.6 million and $1.0 million , respectively, in payments of principal and interest to the related party. For the six months ended June 30, 2023 and 2022, the Company recognized accrued interest expense of $3.7 million and $3.4 million, respectively, on the related party loan and made $3.2 million and $2.5 million, respectively, in payments of principal and interest to the related party. See Note 12 for further discussion of this related party transaction. October 2021 Convertible Note On October 6, 2021, the Company entered into a convertible promissory note for $15.0 million that is exercisable into Class A Subordinate Voting Shares for $1.03 per share at any time at the option of the holder. The notes bear interest at 6% per annum and mature on October 6, 2024 upon which any remaining balance is payable in cash. All accrued and unpaid interest is payable in cash on an annual basis beginning on October 6, 2022. As of June 30, 2023, payments of principal and interest totaling $1.1 million have been made for this loan. As of June 30, 2023 and December 31, 2022, the unamortized discount balance related to the October 2021 Convertible Note was $0.3 million and $0.4 million, respectively, with a remaining amortization period of 1.25 years an d 1.75 years, respectively. For the six months ended June 30, 2023 and 2022 , the Company recognized interest expe nse of $0.5 million an d $0.3 million, respectively, and accretion of debt discount of $0.1 million and $0.1 million , respectively, related to the October 2021 Convertible Note.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Shareholders' Equity	SHAREHOLDERS' EQUITY The Company has authorized an unlimited number of Class A Subordinate Voting Shares (“SVS”) and Class C Multiple Voting Shares (“MVS”), all with no par value. All share classes are included within share capital in the consolidated statements of shareholders’ equity on an as- converted basis. Each share class is entitled to notice of and to attend any meeting of the shareholders, except a meeting of which only holders of another particular class of shares will have the right to vote. All share classes are entitled to receive dividends, as and when declared by the Company, on an as-converted basis, and no dividends will be declared by the Company on any individual class unless the Company simultaneously declares or pays dividends on all share classes. No subdivision or consolidation of any share class shall be made without simultaneously subdividing or consolidating all share classes in the same manner. Voting shares activity for the periods presented is summarized as follows: Class A Subordinate Voting Shares Class C Multiple Voting Shares Total Balance, December 31, 2022 642,140,067 1,276,208 643,416,275 Share capital issuances 6,443,452 — 6,443,452 Balance, June 30, 2023 648,583,519 1,276,208 649,859,727 Class A Subordinate Voting Shares Holders of Class A Subordinate Voting Shares are entitled to one vote in respect of each SVS. Class C Multiple Voting Shares Holders of Class C Multiple Voting Shares are entitled to 800 votes in respect of each MVS. One MVS can convert to one SVS but are not convertible until the aggregate number of MVS held by the Initial Holders (being the MVS holders on their initial issuance) are reduced to a number which is less than 50% of the aggregate number of MVS held by the Initial Holders on the date of completion of the business combination with Cannex. Series June 30, 2023 Class A - Subordinate Voting Shares 648,583,519 Class C - Multiple Voting Shares 1,276,208 Total shares outstanding 649,859,727

Warrants

Warrants	6 Months Ended
	Jun. 30, 2023
Warrants and Rights Note Disclosure [Abstract]
Warrants	WARRANTS A reconciliation of the beginning and ending balance of share purchase warrants outstanding is as follows: Number of Warrants Weight-Average Exercise Price Balance, December 31, 2022 6,352,278 $ 0.82 Issued 625,000 $ 0.17 Expired (2,227,303) $ 0.67 Balance, June 30, 2023 4,749,975 $ 0.79 As of June 30, 2023, the Company had the following warrants outstanding: Warrants Outstanding Exercise Price Expiration Date 2,999,975 $ 1.00 April 13, 2024 625,000 * C$ 0.80 October 6, 2024 500,000 * C$ 0.80 October 6, 2025 625,000 C$ 0.23 May 10, 2027 4,749,975 *Represents warrants that were exercisable as of June 30, 2023.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	SHARE-BASED COMPENSATION The Company adopted two equity incentive plans where the Company may grant Class A stock options. Under the terms of the plans, the maximum number of stock options which may be granted are a total of 10% of the number of shares outstanding assuming conversion of all shares to SVS. The exercise price for stock options issued under the plans will be set by the Compensation Committee of the Board of Directors but will not be less than 100% of the fair market value of the Company’s shares on the grant date. Stock options have a maximum term of 10 years from the date of grant. Stock options vest at the discretion of the Board. As of June 30, 2023, the Company had 26,859,765 options exercisable and 74,303,600 options outstanding, with exercise prices ranging from C$0.10 to C$1.63. The following table summarizes the Company’s stock option activity and related information: Number of Options Weighted Average Price CAD$ Weighted Average Years Balance, December 31, 2022 75,626,960 $ 0.86 3.46 Granted 50,158,000 $ 0.20 3.16 Forfeited/Expired (51,481,360) $ 0.83 — Balance, June 30, 2023 74,303,600 $ 0.38 4.01 During the three months ended June 30, 2023 and 2022, the Company recognized share-based compensation of $0.2 million and $0.4 million, respectively. During the six months ended June 30, 2023 and 2022, the Company recognized share-based compensation of $1.2 million and $1.4 million, respectively. In determining the amount of share-based compensation during the periods ended June 30, 2023 and 2022, the Company used the Black-Scholes option pricing model to establish the fair value of options granted with the following key assumptions: Six Months Ended June 30, 2023 2022 Risk-Free Interest Rate 4.05 % 2.42 % Expected Life 3.17 years 5.00 years Expected Annualized Volatility 85.32 % 71.30 % Forfeiture rate — % — % Expected Dividend Yield — % — %

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The following table summarizes the Company's income tax expense: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net loss before income taxes $ (9,513) $ (3,504) $ (17,839) $ (5,960) Income tax expense $ (1,951) $ (3,042) $ (5,017) $ (6,480) The Company has computed its provision for income taxes under the discrete method which treats the year-to-date period as if it were the annual period and determines the income tax expense or benefit on that basis. The discrete method is applied when application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. At this time, there is a high degree of uncertainty in estimating the Company’s annual pre-tax income and significant non-deductible expenses so the Company cannot reliably estimate the annual effective tax rate. Due to its cannabis operations, the Company is subject to the limitations of Internal Revenue Code (“IRC”) Section 280E. Under IRC Section 280E, the Company is only allowed to deduct expenses directly related to sales of its cannabis products. This results in permanent differences between ordinary and necessary business expenses deemed non-allowable under IRC Section 280E for the Company's expenses related to its plant-touching cannabis operations. The effective tax rate for the three and six months ended June 30, 2023 varies from the three and six months ended June 30, 2022 primarily due to the change in nondeductible expenses under IRC Section 280E as a proportion of pre-tax loss during the period. The Company incurs expenses that are not deductible due to IRC Section 280E limitations which results in significant permanent book-to-tax differences that may not necessarily correlate with pre-tax income or loss. The Company files income tax returns in the U.S. and various state jurisdictions and is subject to examination of its income tax returns by tax authorities in these jurisdictions who may challenge any item on these returns. The corporate statute of limitations for these jurisdictions remains open for the 2019 tax year to the present. Prior to July 31, 2019, the Company was treated as a partnership for income tax purposes and tax income and losses generated from operations were passed through to the Company’s individual members.

Related Parties

Related Parties	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Parties	RELATED PARTIESLI Lending LLC Linchpin Investors LLC (“Linchpin”), a subsidiary of the Company, and LI Lending LLC (“LI Lending”) entered into a Construction Loan Agreement dated May 10, 2019, as amended, whereby Linchpin received an up-to $50.0 million loan from LI Lending, of which $43.0 million was drawn as of June 30, 2023 . Mr. Gontmakher, the CEO of the Company, and Roman Tkachenko, a director of the Company, each hold a 14.28% ownership interest in LI Lending. The loan matu

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	CONTINGENCIES (a) Cannabis Industry While marijuana is legal under the laws of several U.S. states (with varying restrictions), the United States Federal Controlled Substances Act classifies all “marijuana” as a Schedule I drug, whether for medical or recreational use. Under U.S. federal law, a Schedule I drug or substance has a high potential for abuse, no accepted medical use in the United States, and a lack of safety for the use of the drug under medical supervision. As such, there is an inherent risk related to the federal government’s position on cannabis. There is additional risk associated with the Company’s business in cannabis that third-party service providers could suspend or withdraw services and regulatory bodies could impose certain restrictions on the issuer’s ability to operate in the U.S. As of June 30, 2023 , Company has not estimated a potential liability related to the possible enforcement of laws against the medical cannabis industry. (b) Legal Matters From time to time, the Company may be involved in certain disputes arising in the ordinary course of business. Such disputes, taken in the aggregate, are not expected to have a material adverse effect on the Company. There are also no proceedings in which any of the Company’s directors, officers, or affiliates is an adverse party or has a material interest adverse to the Company’s interest. On January 26, 2022, Savills, Inc. sued the Company in the U.S. District Court for the Southern District of New York. That lawsuit alleged the Company had breached an alleged agreement with Savills under which the Company was allegedly required to pay Savills a percentage of savings realized under certain incentive programs offered in some jurisdictions, which Savills would assist the Company in obtaining. Savills claimed damages of approximately $19.4 million in connection with its claim that it obtained benefits for the Company allegedly valued at over $129.0 million. The Company denied these allegations, denied the Company had obtained such benefits, disputed Savills’ characterization of the facts, and denied liability. The Company filed a counterclaim against Savills alleging breach of contract by Savills. On August 3, 2022, the parties reached a confidential settlement in principle and agreed to dismissal of all claims, which was finalized on September 12, 2022 and required the Company to pay $0.25 million in five monthly installments beginning in October 2022. In addition to this initial payment, there is a portion of the settlement that is contingent on future tax savings. As of June 30, 2023, this additional contingent amount is not reasonably estimable.

Financial Instruments and Finan

Financial Instruments and Financial Risk Management	6 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Financial Instruments and Financial Risk Management	FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT The fair value of the Company’s cash, accounts receivable, other receivables, accounts payable and accrued expenses approximates carrying value due to their short-term nature. The Company’s lease receivables, long term accounts payable, derivative liabilities, construction finance liability, convertible notes payable, and notes payable approximate fair value due to the instruments bearing market rates of interest. These measurements were identified as Level 1 measurements, due to the proximity of fair value to carrying values. The fair value of stock options granted were estimated based on a Black-Scholes model. The estimated fair value of the derivative liabilities, which represent warrants classified as liabilities, represent Level 3 measurements. In November 2022, the warrants issued in connection with the November 2020 private placement had expired unexercised and, accordingly, the balance of derivative liabilities was nil. As of June 30, 2023 and December 31, 2022, the Company did not have any derivatives valued within the fair value hierarchy. For the three and six months ended June 30, 2022, changes in fair value of the derivative liabilities measured on a recurring basis using significant unobservable inputs (Level 3) were as follows: Three Months Ended Six Months Ended June 30, 2022 Balance, beginning of period $ 2,202 $ 3,502 Change in fair value of derivative liability (1,774) (3,074) Balance, end of period $ 428 $ 428 There were no transfers between fair value levels for the three and six months ended June 30, 2023 and the year ended December 31, 2022. (a) Financial Risk Management The Company is exposed in varying degrees to a variety of financial instruments related risks. The Company's board of directors mitigate these risks by assessing, monitoring and approving the Company’s risk management processes. (b) Credit Risk Credit risk is the risk of loss associated with counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash, accounts receivable, lease receivables, and other receivables. The risk to cash deposits is mitigated by holding these instruments with regulated financial institutions. Accounts receivable, lease receivables, and other receivables credit risk arises from the possibility that principal and interest due may become uncollectible. The Company mitigates this risk by managing and monitoring the underlying business relationships. The Company maintains cash with federally insured financial institutions. A s of June 30, 2023 and December 31, 2022 , the Company exceeded federally insured limits by $1.6 million and $10.1 million, respectively. The Company has historically not experienced any losses in such accounts. As of June 30, 2023 and December 31, 2022 , the Company held an immaterial amount of cash in a Canadian account that is denominated in C$. As of June 30, 2023 and December 31, 2022, the maximum credit exposure related to the carrying amounts of accounts receivable, other receivable, and lease receivables was $19.1 million and $16.9 million, respectively. (c) Liquidity Risk The Company manages liquidity risk through the management of its capital structure. The Company’s approach to managing liquidity is to raise sufficient capital to settle obligations and liabilities when due. The Company has raised capital as needed, however there is no guarantee the company will be able to continue to raise funds in the same manor it has historically. The Company has the following gross contractual obligations as of June 30, 2023, which are expected to be payable in the following respective periods: Less than 1 year 1 to 3 years 3 to 5 years Greater than 5 years Total Accounts payable and accrued liabilities $ 27,793 $ 1,733 $ — $ — $ 29,526 Convertible notes, notes payable and accrued interest 7,946 65,865 10,728 — 84,539 Construction finance liability — 16,000 — — 16,000 Total $ 35,739 $ 83,598 $ 10,728 $ — $ 130,065 (d) Foreign Exchange Risk The Company is exposed to exchange rate fluctuations between United States and Canadian dollars. The Company’s share price is denominated in Canadian dollars. If the Canadian dollar declines against the United States dollar, the United States dollar amounts available to fund the Company through the exercise of stock options or warrants will be reduced. The Company also has bank accounts with balances in Canadian dollars. The value of these bank balances if converted to U.S. dollars will fluctuate. While the Company maintains a head office in Canada where it incurs expenses primarily denominated in Canadian dollars, such expenses are a small portion of overall expenses incurred by the Company. The Company does not have a practice of trading derivatives and does not engage in “natural hedging” for funds held in Canada.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION As of June 30, 2023, the Company had two reportable segments as follows: • THC Cannabis – Cultivation, manufacturing, and distribution of THC cannabis; and • CBD Wellness – Sale of CBD products to third-party consumers. The below table presents financial results of each segment for the three and six months ended June 30, 2023 and 2022, as well as total assets as of June 30, 2023 and December 31, 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net Revenues THC Cannabis $ 30,433 28,195 $ 60,593 $ 53,978 CBD Wellness 263 244 479 509 Total Net Revenues $ 30,696 28,439 $ 61,072 $ 54,487 Net (Income) Loss Attributable to Shareholders THC Cannabis $ 6,813 6,894 $ 13,042 $ 9,361 CBD Wellness 25 (104) 11 (119) Corporate 4,631 (239) 9,813 3,208 Total Net Loss $ 11,469 6,551 $ 22,866 $ 12,450 June 30, 2023 December 31, 2022 Assets THC Cannabis $ 329,295 $ 343,410 CBD Wellness 608 625 Corporate 603 697 Total Assets $ 330,506 $ 344,732

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS The Company has evaluated subsequent events through August 15, 2023, which is the date these condensed consolidated interim financial statements were issued, and has concluded that the following subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated interim financial statements. Modification of Lease Agreement On July 7, 2023, the Company amended its lease agreement for the cultivation and production facility in Matteson, Illinois to apply a portion of the security deposit to pay one-half of the monthly base rent for the four month period through November 30, 2023; to defer payment of the $2.2 million increase in security deposit to be funded as draws on the tenant improvement allowance through November 30, 2023; and to make pro rata payments of such deferred payments equal to 1/12 of the aggregate amount, concurrently with monthly base rent installments, for the twelve month period commencing January 1, 2024. Amendment of Senior Secured Debt with LI Lending LLC In July 2023, the Company entered into a definitive agreement with its senior secured lender, LI Lending, LLC (“Lender”) to extend the maturity date of the related party loan to May 1, 2026, to reduce the interest rate to 12.0% per annum beginning May 1, 2024, and to expand the amount of third-party financings allowed under the December 17, 2020 Amended and Restated Loan and Security Agreement (“Loan”) between 4Front and Lender. As compensation for the amendment, the Company shall pay an extension fee of $0.52 million payable in cash on May 1, 2024. In addition, the Company shall issue warrants equal to 33% of the loan balance, approximately $17.06 million, wherein each warrant shall be exercisable into one SVS at an exercise price not less than $0.17 through May 1, 2026. If 4Front obtains a bona fide offer from a third party to refinance the Loan within six months from the amendment date, the Lender will have the option to match the proposed terms of the offer or keep the Loan in force; upon exercise of either option, the Lender's warrant coverage will be reduced to 30% of the Loan balance as of the current maturity date. If 4Front obtains permitted secured debt senior to the Loan up to US$8 million, 75% of the Warrants will become exercisable by cashless exercise. If 4Front obtains permitted secured debt senior to the Loan in excess of US$8 million (up to the US$10 million maximum), 100% of the Warrants will become exercisable by cashless exercise. Under the terms of the amendment, while the related party loan is outstanding, if 4Front unilaterally removes Leonid Gontmakher as its Chief Executive Officer or Karl Chowscano as its President without either cause or Lender consent, the maturity date of the loan will be accelerated to the date that is 30 days after the first unilateral removal. Grant of Restricted Share Units On July 27, 2023, the Company issued a total of 9,853,830 restricted share units ("RSUs"), at a deemed issue price of C$0.165 based on the closing price of its Subordinate Voting Shares, to certain officers and employees of the Company in payment of fiscal year-end 2022 bonus entitlements. The RSUs are fully vested as of the grant date and expire upon the earlier of 18 months following the grant date or the occurrence of certain events.

Nature of Operations (Policies)

Nature of Operations (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Accounting Standard Updates Issued but Not Yet Adopted In June 2022, the FASB issued ASU 2022-03, "Fair Value Measurements - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820) ". ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. It also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted and the amendments in the ASU should be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. The Company is currently assessing the impact of adopting ASU 2022-03 on the consolidated financial statements. In March 2023, the FASB issued ASU 2023-01, “ Leases (Topic 842) – Common Control Arrangement s”, which require that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset. It also requires such leasehold improvements to be accounted for as a transfer between entities under common control through an adjustment to entity if, and when, the lessee no longer controls the use of the underlying asset. ASU 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of adopting ASU 2023-01 on the consolidated financial statements.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Summary of Inventory	The Company’s inventories are summarized in the table below: June 30, 2023 December 31, 2022 Raw materials - unharvested cannabis $ 4,032 $ 2,688 Raw materials - harvested and purchased cannabis 7,372 7,956 Packaging and other non-finished goods 27 2,468 Work in process - manufactured and purchased extracts 3,276 3,635 Finished goods 10,658 8,845 Total inventory $ 25,365 $ 25,592

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment and Related Depreciation	Property, plant, and equipment and related depreciation are summarized in the table below: June 30, 2023 December 31, 2022 Land $ 774 $ 774 Buildings & improvements 13,446 13,784 Construction in process 2,657 82 Furniture, equipment & other 18,916 19,296 Leasehold improvements 36,297 36,287 Total $ 72,090 $ 70,223 Less: accumulated depreciation (16,608) (13,317) Total property, plant, and equipment, net $ 55,482 $ 56,906

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite-Lived Intangible Assets	Intangible assets and related amortization are summarized in the table below: Licenses Customer Relationships Non-Compete Agreements Know-How Tradenames and Trademarks Total Gross Carrying Amount, June 30, 2023 and December 31, 2022 $ 25,662 $ 2,900 $ 249 $ 9,700 $ 2,022 $ 40,533 Accumulated Amortization, December 31, 2022 $ — $ (2,393) $ (249) $ (6,628) $ (336) $ (9,606) Amortization Expense — (290) — (970) (136) (1,396) Accumulated Amortization, June 30, 2023 $ — $ (2,683) $ (249) $ (7,598) $ (472) $ (11,002)
Schedule of Finite-Lived Intangible Assets	Intangible assets and related amortization are summarized in the table below: Licenses Customer Relationships Non-Compete Agreements Know-How Tradenames and Trademarks Total Gross Carrying Amount, June 30, 2023 and December 31, 2022 $ 25,662 $ 2,900 $ 249 $ 9,700 $ 2,022 $ 40,533 Accumulated Amortization, December 31, 2022 $ — $ (2,393) $ (249) $ (6,628) $ (336) $ (9,606) Amortization Expense — (290) — (970) (136) (1,396) Accumulated Amortization, June 30, 2023 $ — $ (2,683) $ (249) $ (7,598) $ (472) $ (11,002)
Summary of Goodwill	Balance, December 31, 2022 $ 53,955 Adjustment to Acquisitions (29) Balance, June 30, 2023 $ 53,926

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Direct Financing Lease, Lease Income	Lease income for operating and direct financing leases for the periods presented are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Real estate income: Operating leases $ 2,401 $ 2,275 $ 4,785 $ 4,548 Direct financing leases 599 676 1,221 1,368 Total real estate income $ 3,000 $ 2,951 $ 6,006 $ 5,916
Balance Sheet Information	The underlying assets are presented in the condensed consolidated balances sheets as follows: June 30, 2023 December 31, 2022 Right-of-use assets $ 35,518 $ 36,596 Current portion of lease liability $ 1,655 $ 1,568 Long-term portion of lease liability $ 31,342 $ 31,904
Summary of Changes in Lease Receivables	A reconciliation of the lease receivables is as follows: June 30, 2023 December 31, 2022 Balance, December 31, 2022 $ 9,421 $ 10,378 Interest 1,221 2,673 Lease payments received (1,891) (3,630) Balance, June 30, 2023 8,751 9,421 Less current portion (3,900) (3,810) Long-term lease receivables $ 4,851 $ 5,611

Notes Payable and Convertible_2

Notes Payable and Convertible Notes (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Debt	The Company’s notes payable and convertible notes are as follows: Terms June 30, 2023 December 31, 2022 Secured promissory notes dated May 10, 2019, as subsequently amended, with a related party drawn in two tranches: (i) $35.0 million bearing interest at 12.75% and (ii) $10.0 million bearing interest at 14.75%, which mature on May 10, 2024 (2) $ 50,451 $ 49,807 Convertible promissory note dated October 6, 2021, which mature on October 6, 2024 and bear interest at a rate of 6% per annum 15,398 14,843 Unsecured convertible promissory note at $0.50 per share due December 18, 2023 at 12% per annum through May 2023 and 14% per annum through December 2023 3,843 3,554 Promissory note issued for the acquisition of NECC due January 7, 2023 at 10% per annum — 519 Promissory note issued for the acquisition of Island due October 25, 2026 at 6% per annum 10,728 10,431 Secured promissory note due February 28, 2023 at 1.5% monthly interest for three months and 2% monthly interest for three months (1) 2,354 3,230 Unsecured promissory note due September 30, 2023, monthly interest payments at 12% per annum 1,730 1,730 Various 35 51 Total Notes Payable and Convertible Notes $ 84,539 $ 84,165 (1) The Company is in default of the secured promissory note as of June 30, 3023. Management is renegotiating terms of the promissory note as of the date of these consolidated financial statements.

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Summary of Voting Shares Activity	Voting shares activity for the periods presented is summarized as follows: Class A Subordinate Voting Shares Class C Multiple Voting Shares Total Balance, December 31, 2022 642,140,067 1,276,208 643,416,275 Share capital issuances 6,443,452 — 6,443,452 Balance, June 30, 2023 648,583,519 1,276,208 649,859,727
Summary of Share Capital and Equity	Series June 30, 2023 Class A - Subordinate Voting Shares 648,583,519 Class C - Multiple Voting Shares 1,276,208 Total shares outstanding 649,859,727

Warrants (Tables)

Warrants (Tables)	6 Months Ended
	Jun. 30, 2023
Warrants and Rights Note Disclosure [Abstract]
Summary of Warrants Outstanding to Purchase Shares	A reconciliation of the beginning and ending balance of share purchase warrants outstanding is as follows: Number of Warrants Weight-Average Exercise Price Balance, December 31, 2022 6,352,278 $ 0.82 Issued 625,000 $ 0.17 Expired (2,227,303) $ 0.67 Balance, June 30, 2023 4,749,975 $ 0.79
Summary of Warrants Outstanding And Exercisable	As of June 30, 2023, the Company had the following warrants outstanding: Warrants Outstanding Exercise Price Expiration Date 2,999,975 $ 1.00 April 13, 2024 625,000 * C$ 0.80 October 6, 2024 500,000 * C$ 0.80 October 6, 2025 625,000 C$ 0.23 May 10, 2027 4,749,975 *Represents warrants that were exercisable as of June 30, 2023.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity and related information: Number of Options Weighted Average Price CAD$ Weighted Average Years Balance, December 31, 2022 75,626,960 $ 0.86 3.46 Granted 50,158,000 $ 0.20 3.16 Forfeited/Expired (51,481,360) $ 0.83 — Balance, June 30, 2023 74,303,600 $ 0.38 4.01
Summary of Stock Options Values using Black-Scholes Model with Key Assumptions	In determining the amount of share-based compensation during the periods ended June 30, 2023 and 2022, the Company used the Black-Scholes option pricing model to establish the fair value of options granted with the following key assumptions: Six Months Ended June 30, 2023 2022 Risk-Free Interest Rate 4.05 % 2.42 % Expected Life 3.17 years 5.00 years Expected Annualized Volatility 85.32 % 71.30 % Forfeiture rate — % — % Expected Dividend Yield — % — %

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The following table summarizes the Company's income tax expense: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net loss before income taxes $ (9,513) $ (3,504) $ (17,839) $ (5,960) Income tax expense $ (1,951) $ (3,042) $ (5,017) $ (6,480)

Financial Instruments and Fin_2

Financial Instruments and Financial Risk Management (Tables)	6 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Summary of Changes in Fair Value of the Derivative Liabilities Measured on a Recurring Basis	For the three and six months ended June 30, 2022, changes in fair value of the derivative liabilities measured on a recurring basis using significant unobservable inputs (Level 3) were as follows: Three Months Ended Six Months Ended June 30, 2022 Balance, beginning of period $ 2,202 $ 3,502 Change in fair value of derivative liability (1,774) (3,074) Balance, end of period $ 428 $ 428
Schedule of Gross Contractual Obligations	The Company has the following gross contractual obligations as of June 30, 2023, which are expected to be payable in the following respective periods: Less than 1 year 1 to 3 years 3 to 5 years Greater than 5 years Total Accounts payable and accrued liabilities $ 27,793 $ 1,733 $ — $ — $ 29,526 Convertible notes, notes payable and accrued interest 7,946 65,865 10,728 — 84,539 Construction finance liability — 16,000 — — 16,000 Total $ 35,739 $ 83,598 $ 10,728 $ — $ 130,065

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Summary of Revenue By Type	The below table presents financial results of each segment for the three and six months ended June 30, 2023 and 2022, as well as total assets as of June 30, 2023 and December 31, 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net Revenues THC Cannabis $ 30,433 28,195 $ 60,593 $ 53,978 CBD Wellness 263 244 479 509 Total Net Revenues $ 30,696 28,439 $ 61,072 $ 54,487 Net (Income) Loss Attributable to Shareholders THC Cannabis $ 6,813 6,894 $ 13,042 $ 9,361 CBD Wellness 25 (104) 11 (119) Corporate 4,631 (239) 9,813 3,208 Total Net Loss $ 11,469 6,551 $ 22,866 $ 12,450 June 30, 2023 December 31, 2022 Assets THC Cannabis $ 329,295 $ 343,410 CBD Wellness 608 625 Corporate 603 697 Total Assets $ 330,506 $ 344,732

Nature of Operations (Details)

Nature of Operations (Details) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) Dispensary Segment facility	Jun. 30, 2022 USD ($)
Nature Of Operations [Line Items]
Number of operating segments | Segment					2
Cash and cash equivalents	$ 5,400				$ 5,400
Working capital deficit	33,800				33,800
Net loss	$ 11,464	$ 11,392	$ 6,546	$ 5,894	$ 22,856	$ 12,440
THC Cannabis
Nature Of Operations [Line Items]
Number of dispensaries | Dispensary					6
Number of production facilities | facility					7

Inventory - Summary of Inventor

Inventory - Summary of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory [Line Items]
Packaging and other non-finished goods	$ 27	$ 2,468
Work in process - manufactured and purchased extracts	3,276	3,635
Finished goods	10,658	8,845
Total inventory	25,365	25,592
Raw materials - unharvested cannabis
Inventory [Line Items]
Raw materials	4,032	2,688
Raw materials - harvested and purchased cannabis
Inventory [Line Items]
Raw materials	$ 7,372	$ 7,956

Property, Plant, and Equipmen_2

Property, Plant, and Equipment - Summary of Property and Equipment and Related Depreciation (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 72,090	$ 70,223
Less: accumulated depreciation	(16,608)	(13,317)
Total property, plant, and equipment, net	55,482	56,906
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	774	774
Buildings & improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	13,446	13,784
Construction in process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,657	82
Furniture, equipment & other
Property, Plant and Equipment [Line Items]
Property and equipment, gross	18,916	19,296
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 36,297	$ 36,287

Property, Plant, and Equipmen_3

Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Nov. 10, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Oct. 27, 2022
Property, Plant and Equipment [Line Items]
Depreciation expense		$ 1.8	$ 2.2	$ 3.5	$ 3.4
Depreciation in COGS		$ 1.6	$ 1.8	$ 3.1	$ 2.7
IL Grown Medicine, LLC
Property, Plant and Equipment [Line Items]
Tenant improvement allowance, increase	$ 19.9
Remaining lease term	20 years
Increase in base rent	$ 0.2
Increase in security deposit	$ 2.2
IL Grown Medicine, LLC | Minimum
Property, Plant and Equipment [Line Items]
Tenant improvement allowance, increase option						$ 15
IL Grown Medicine, LLC | Maximum
Property, Plant and Equipment [Line Items]
Tenant improvement allowance, increase option						$ 19.9

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Schedule of Indefinite-Lived and Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Roll Forward]
Accumulated amortization, beginning balance	$ (9,606)
Amortization Expense	(1,396)
Accumulated amortization, ending balance	(11,002)
Total
Intangible assets, gross	40,533	$ 40,533
Licenses
Indefinite-Lived Intangible Assets [Roll Forward]
Beginning balance	25,662
Ending balance	25,662
Customer Relationships
Finite-Lived Intangible Assets [Roll Forward]
Beginning balance	2,900
Ending balance	2,900
Accumulated amortization, beginning balance	(2,393)
Amortization Expense	(290)
Accumulated amortization, ending balance	(2,683)
Non-Compete Agreements
Finite-Lived Intangible Assets [Roll Forward]
Beginning balance	249
Ending balance	249
Accumulated amortization, beginning balance	(249)
Amortization Expense	0
Accumulated amortization, ending balance	(249)
Know-How
Finite-Lived Intangible Assets [Roll Forward]
Beginning balance	9,700
Ending balance	9,700
Accumulated amortization, beginning balance	(6,628)
Amortization Expense	(970)
Accumulated amortization, ending balance	(7,598)
Tradenames and Trademarks
Finite-Lived Intangible Assets [Roll Forward]
Beginning balance	2,022
Ending balance	2,022
Accumulated amortization, beginning balance	(336)
Amortization Expense	(136)
Accumulated amortization, ending balance	$ (472)

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Summary of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 53,955
Adjustment to Acquisitions	(29)
Ending balance	$ 53,926

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Additional Information (Details)	Jun. 30, 2023 USD ($)
THC Cannabis
Disclosure Of Intangible Assets And Goodwill [Line Items]
Accumulated impairment	$ 0
CBD Wellness
Disclosure Of Intangible Assets And Goodwill [Line Items]
Accumulated impairment	$ 13,400,000

Asset Acquisitions - Additional

Asset Acquisitions - Additional Information (Details) - Euphoria, LLC - USD ($) $ in Millions		1 Months Ended	6 Months Ended
	Mar. 27, 2023	Apr. 30, 2023	Jun. 30, 2023
Asset Acquisition [Line Items]
Asset acquisition, percentage of voting interests acquired	100%
Total purchase price	$ 4.5
Payments for asset acquisitions			$ 0.3
Asset acquisition, stock consideration (in shares)		2,308,952
Asset acquisition, consideration transferred, equity interest value		$ 0.4
Breakup fee in case of buyer termination	3.5
Breakup fee in case of seller termination	$ 3.5

Leases - Lease Income (Details)

Leases - Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating leases	$ 2,401	$ 2,275	$ 4,785	$ 4,548
Direct financing leases	599	676	1,221	1,368
Total real estate income	$ 3,000	$ 2,951	$ 6,006	$ 5,916

Leases - Summary of Underlying

Leases - Summary of Underlying Assets Leased (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Line Items]
Right-of-use assets	$ 135,577	$ 138,451
Current portion of lease liability	3,638	4,479
Long-term portion of lease liability	137,530	136,185
Building
Leases [Line Items]
Right-of-use assets	35,518	36,596
Current portion of lease liability	1,655	1,568
Long-term portion of lease liability	$ 31,342	$ 31,904

Leases - Summary of Changes in

Leases - Summary of Changes in Lease Receivables (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Sales-type and Direct Financing Leases, Lease Receivable [Roll Forward]
Balance, December 31, 2022	$ 9,421	$ 10,378
Interest	1,221	2,673
Lease payments received	(1,891)	(3,630)
Balance, June 30, 2023	8,751	9,421
Less current portion	(3,900)	(3,810)
Long-term lease receivables	$ 4,851	$ 5,611

Notes Payable and Convertible_3

Notes Payable and Convertible Notes - Summary of Convertible Debt (Details)	Jul. 31, 2023	Jun. 30, 2023 USD ($) tranche $ / shares	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Debt, net amount		$ 84,539,000	$ 84,165,000
Secured promissory notes dated May 10, 2019, as subsequently amended, with a related party drawn in two tranches: (i) $35.0 million bearing interest at 12.75% and (ii) $10.0 million bearing interest at 14.75%, which mature on May 10, 2024
Debt Instrument [Line Items]
Debt instrument, number of tranches | tranche		2
Debt, net amount		$ 50,451,000	49,807,000
Secured Promissory Note, Tranche One
Debt Instrument [Line Items]
Debt instrument, face amount		$ 35,000,000
Interest rate, stated percentage		12.75%
Secured Promissory Note, Tranche Two
Debt Instrument [Line Items]
Debt instrument, face amount		$ 10,000,000
Interest rate, stated percentage		14.75%
Convertible promissory note dated October 6, 2021, which mature on October 6, 2024 and bear interest at a rate of 6% per annum
Debt Instrument [Line Items]
Interest rate, stated percentage		6%
Debt, net amount		$ 15,398,000	14,843,000
Unsecured convertible promissory note at $0.50 per share due December 18, 2023 at 12% per annum through May 2023 and 14% per annum through December 2023
Debt Instrument [Line Items]
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares		$ 0.50
Debt, net amount		$ 3,843,000	3,554,000
Unsecured convertible promissory note at $0.50 per share due December 18, 2023 at 12% per annum through May 2023 and 14% per annum through December 2023 | Interest Rate, Period One
Debt Instrument [Line Items]
Interest rate, stated percentage		12%
Unsecured convertible promissory note at $0.50 per share due December 18, 2023 at 12% per annum through May 2023 and 14% per annum through December 2023 | Interest Rate, Period Two
Debt Instrument [Line Items]
Interest rate, stated percentage		14%
Promissory note issued for the acquisition of NECC due January 7, 2023 at 10% per annum
Debt Instrument [Line Items]
Interest rate, stated percentage		10%
Debt, net amount		$ 0	519,000
Promissory note issued for the acquisition of Island due October 25, 2026 at 6% per annum
Debt Instrument [Line Items]
Interest rate, stated percentage		6%
Debt, net amount		$ 10,728,000	10,431,000
Secured promissory note due February 28, 2023 at 1.5% monthly interest for three months and 2% monthly interest for three months
Debt Instrument [Line Items]
Debt, net amount		$ 2,354,000	3,230,000
Secured promissory note due February 28, 2023 at 1.5% monthly interest for three months and 2% monthly interest for three months | Interest Rate, Period One
Debt Instrument [Line Items]
Interest rate, stated percentage		1.50%
Secured promissory note due February 28, 2023 at 1.5% monthly interest for three months and 2% monthly interest for three months | Interest Rate, Period Two
Debt Instrument [Line Items]
Interest rate, stated percentage		2%
Unsecured promissory note due September 30, 2023, monthly interest payments at 12% per annum
Debt Instrument [Line Items]
Interest rate, stated percentage		12%
Debt, net amount		$ 1,730,000	1,730,000
Various
Debt Instrument [Line Items]
Debt, net amount		35,000	$ 51,000
LI Lending LLC Loan Agreement
Debt Instrument [Line Items]
Debt, net amount		$ 50,500,000
LI Lending LLC Loan Agreement | Subsequent Event
Debt Instrument [Line Items]
Interest rate, stated percentage	12%

Notes Payable and Convertible_4

Notes Payable and Convertible Notes - LI Lending LLC Additional Information (Details) - LI Lending LLC Loan Agreement $ in Millions		1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2020 USD ($)	Dec. 31, 2020	Jun. 30, 2023 USD ($) draw	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) draw	Jun. 30, 2022 USD ($)	Jan. 01, 2022	May 10, 2019 USD ($)
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility								$ 50
Amount drawn			$ 43		$ 43
Number of draws made | draw			2		2
Percentage of exit fee of the principal balance					20%
Increase in interest rate		2.50%
Interest expense, debt			$ 1.9	$ 1.5	$ 3.7	$ 3.4
Repayments of debt			1.6	$ 1	3.2	$ 2.5
LI Lending Facility, Draw One
Debt Instrument [Line Items]
Amount drawn	$ 33		$ 35		$ 35
Interest rate			10.25%		10.25%
Debt prepayment	$ 2
Interest rate on initial loan amount							12.75%
LI Lending Facility, Draw Two
Debt Instrument [Line Items]
Amount drawn			$ 10		$ 10
Interest rate			12.25%		12.25%
Interest rate on final loan amount							14.75%

Notes Payable and Convertible_5

Notes Payable and Convertible Notes - Convertible Notes Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Oct. 06, 2021
Debt Instrument [Line Items]
Loan discount accretion expense	$ 185	$ 0
October 2021 Convertible Note | Convertible Note
Debt Instrument [Line Items]
Debt instrument, face amount				$ 15,000
Debt instrument, convertible, conversion price (in dollars per share)				$ 1.03
Interest rate, stated percentage				6%
Repayments of debt	1,100
Debt instrument, unamortized discount	$ 300		$ 400
Debt instrument, convertible, remaining discount amortization period	1 year 3 months		1 year 9 months
Interest expense, debt	$ 500	300
Loan discount accretion expense	$ 100	$ 100

Shareholders' Equity - Summary

Shareholders' Equity - Summary of Voting Shares Activity (Details)	6 Months Ended
	Jun. 30, 2023 shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	643,416,275
Share capital issuances (in shares)	6,443,452
Ending balance (in shares)	649,859,727
Class A Subordinate Voting Shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	642,140,067
Share capital issuances (in shares)	6,443,452
Ending balance (in shares)	648,583,519
Class C Multiple Voting Shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	1,276,208
Share capital issuances (in shares)	0
Ending balance (in shares)	1,276,208

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 vote
Class A Subordinate Voting Shares
Class Of Stock [Line Items]
Number of votes each shareholder is entitled to for each share	1
Class C Multiple Voting Shares
Class Of Stock [Line Items]
Number of votes each shareholder is entitled to for each share	800
Percentage of shares of one class held as a percentage of shares of another class	50%
Common stock, conversion ratio	1

Shareholders' Equity - Summar_2

Shareholders' Equity - Summary of Share Capital and Equity (Details) - shares	Jun. 30, 2023	Dec. 31, 2022
Class Of Stock [Line Items]
Number of shares outstanding (in shares)	649,859,727	643,416,275
Class A Shares
Class Of Stock [Line Items]
Number of shares outstanding (in shares)	648,583,519
Class C Shares
Class Of Stock [Line Items]
Number of shares outstanding (in shares)	1,276,208

Warrants - Summary of Warrants

Warrants - Summary of Warrants Outstanding to Purchase Shares (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of Warrants
Number of warrants, beginning balance (in shares) | shares	6,352,278
Number of warrants, issued (in shares) | shares	625,000
Number of warrants, expired (in shares) | shares	(2,227,303)
Number of warrants, ending balance (in shares) | shares	4,749,975
Weight-Average Exercise Price
Weighted average exercise price, Beginning balance (in dollars per share) | $ / shares	$ 0.82
Weighted average exercise price, Issued (in dollars per share) | $ / shares	0.17
Weighted average exercise price, Expired (in dollars per share) | $ / shares	0.67
Weighted average exercise price, Ending balance (in dollars per share) | $ / shares	$ 0.79

Warrants - Summary of Warrant_2

Warrants - Summary of Warrants Outstanding And Exercisable (Details)	Jun. 30, 2023 $ / shares shares	Jun. 30, 2023 $ / shares shares	Dec. 31, 2022 shares
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	4,749,975	4,749,975	6,352,278
Exercise Price $1.00
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	2,999,975	2,999,975
Warrants purchase price per share (in dollar/canadian dollar per share) | $ / shares	$ 1
Exercise Price $ 0.80
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	625,000	625,000
Warrants purchase price per share (in dollar/canadian dollar per share) | $ / shares		$ 0.80
Exercise Price $ 0.80
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	500,000	500,000
Warrants purchase price per share (in dollar/canadian dollar per share) | $ / shares		$ 0.80
Exercise Price $ 0.23
Class Of Warrant Or Right [Line Items]
Warrants outstanding (in shares)	625,000	625,000
Warrants purchase price per share (in dollar/canadian dollar per share) | $ / shares		$ 0.23

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) plan	Jun. 30, 2022 USD ($)	Jun. 30, 2023 $ / shares shares	Dec. 31, 2022 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of equity incentive plans | plan			2
Exercisable options (in shares) | shares					26,859,765
Outstanding options (in shares) | shares					74,303,600	75,626,960
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Strike price (in dollar per share) | $ / shares					$ 0.10
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Strike price (in dollar per share) | $ / shares					$ 1.63
Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Recognized share-based compensation expense | $	$ 0.2	$ 0.4	$ 1.2	$ 1.4
Class A Stock Options | Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum number of stock options available for grant, percentage of number of outstanding shares			10%
Minimum exercise price of stock options issued, percentage of fair market value of shares on grant date			100%
Awards expiration period			10 years

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Number of Options
Number of options, beginning balance (in shares)	75,626,960
Number of options, granted (in shares)	50,158,000
Number of options, forfeited/ expired (in shares)	(51,481,360)
Number of options, ending balance (in shares)	74,303,600	75,626,960
Weighted Average Price CAD$
Weighted Average Price, Beginning Balance (in dollar per shares)	$ 0.86
Weighted Average Price, Granted (in dollar per shares)	0.20
Weighted Average Price, Forfeited/ Expired (in dollar per shares)	0.83
Weighted Average Price, Ending Balance (in dollar per shares)	$ 0.38	$ 0.86
Weighted Average Years
Weighted average years	4 years 3 days	3 years 5 months 15 days
Weighted average years, granted	3 years 1 month 28 days

Share-Based Compensation - Su_2

Share-Based Compensation - Summary of Stock Options Values using Black-Scholes Model with Key Assumptions (Details) - Share-Based Payment Arrangement, Option	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-Free Interest Rate	4.05%	2.42%
Expected Life	3 years 2 months 1 day	5 years
Expected Annualized Volatility	85.32%	71.30%
Forfeiture rate	0%	0%
Expected Dividend Yield	0%	0%

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Expense and Effective Tax Rates (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Net loss before income taxes	$ (9,513)	$ (3,504)	$ (17,839)	$ (5,960)
Income tax expense	$ (1,951)	$ (3,042)	$ (5,017)	$ (6,480)

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	May 10, 2019
Related Party Transaction [Line Items]
Debt, net amount	$ 84,539	$ 84,165
Chief Executive Officer | LI Lending LLC Loan Agreement
Related Party Transaction [Line Items]
Percentage of ownership interest held	14.28%
Director | LI Lending LLC Loan Agreement
Related Party Transaction [Line Items]
Percentage of ownership interest held	14.28%
LI Lending LLC Note, as Amended
Related Party Transaction [Line Items]
Maximum borrowing capacity under credit facility			$ 50,000
LI Lending LLC Loan Agreement
Related Party Transaction [Line Items]
Maximum borrowing capacity under credit facility			$ 50,000
Long-term line of credit	$ 43,000
Line of credit facility, exit fee	9,000
Amount due at maturity	54,000
Long-term debt, gross	50,600
Debt instrument, unamortized discount	200
Debt, net amount	50,500
Interest payable	$ 7,600

Contingencies - Additional Info

Contingencies - Additional Information (Details) $ in Thousands	Sep. 12, 2022 USD ($) installment	Jan. 26, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss contingency damages sought value		$ 19,400
Loss contingency benefit value		$ 129,000
Litigation settlement, amount	$ 250
Litigation settlement, number of installments | installment	5

Financial Instruments and Fin_3

Financial Instruments and Financial Risk Management - Summary of Changes in Fair Value of the Derivative Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 2,202	$ 3,502
Change in fair value of derivative liability	(1,774)	(3,074)
Balance, end of period	$ 428	$ 428

Financial Instruments and Fin_4

Financial Instruments and Financial Risk Management - Additional information (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Investments, All Other Investments [Abstract]
Cash, uninsured amount	$ 1.6	$ 10.1
Maximum credit exposure	$ 19.1	$ 16.9

Financial Instruments and Fin_5

Financial Instruments and Financial Risk Management - Schedule of Gross Contractual Obligations (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Financial Instruments [Line Items]
Less than 1 year	$ 35,739
1 to 3 years	83,598
3 to 5 years	10,728
Greater than 5 years	0
Total	130,065
Accounts payable and accrued liabilities
Financial Instruments [Line Items]
Less than 1 year	27,793
1 to 3 years	1,733
3 to 5 years	0
Greater than 5 years	0
Total	29,526
Convertible notes, notes payable and accrued interest
Financial Instruments [Line Items]
Less than 1 year	7,946
1 to 3 years	65,865
3 to 5 years	10,728
Greater than 5 years	0
Total	84,539
Construction finance liability
Financial Instruments [Line Items]
Less than 1 year	0
1 to 3 years	16,000
3 to 5 years	0
Greater than 5 years	0
Total	$ 16,000

Segment Information - Additiona

Segment Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information - Summary o

Segment Information - Summary of Revenues By Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total Net Revenues	$ 30,696	$ 28,439	$ 61,072	$ 54,487
Total Net Loss	11,469	6,551	22,866	12,450
Total Assets	330,506		330,506		$ 344,732
Operating Segments | THC Cannabis
Segment Reporting Information [Line Items]
Total Net Revenues	30,433	28,195	60,593	53,978
Total Net Loss	6,813	6,894	13,042	9,361
Total Assets	329,295		329,295		343,410
Operating Segments | CBD Wellness
Segment Reporting Information [Line Items]
Total Net Revenues	263	244	479	509
Total Net Loss	25	(104)	11	(119)
Total Assets	608		608		625
Corporate
Segment Reporting Information [Line Items]
Total Net Loss	4,631	$ (239)	9,813	$ 3,208
Total Assets	$ 603		$ 603		$ 697

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Thousands		1 Months Ended
	Jul. 27, 2023 $ / shares shares	Jul. 31, 2023 USD ($) $ / shares shares	Jul. 07, 2023 USD ($)
Subsequent Event [Line Items]
Modification of lease agreement, portion of security deposit to pay monthly base rent, percentage			50%
Modification of lease agreement, deferred pro rata payments as percentage of aggregate amount			0.0833
Modification of lease agreement, portion of security deposit to pay monthly base rent, period			4 months
Modification of lease agreement, defer payment amount, increase in security deposit to be funded			$ 2,200
Modification of lease agreement, deferred pro rata payments, period			12 months
Debt extension fee		$ 520
Permitted secured debt senior to the Loan up to US$8 million
Subsequent Event [Line Items]
Debt refinance bona fide offer, permitted secured debt senior to the loan amount		$ 8,000
Percentage of warrant exercised by cashless exercise		75%
Permitted secured debt senior to the Loan up to US$10 million
Subsequent Event [Line Items]
Debt refinance bona fide offer, permitted secured debt senior to the loan amount		$ 10,000
Percentage of warrant exercised by cashless exercise		100%
Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Awards issued (in shares) | shares	9,853,830
Awards issue price (in CAD per share) | $ / shares	$ 0.165
Awards expiration period	18 months
Warrants Exercisable Through May1, 2026
Subsequent Event [Line Items]
Warrant issuance amount as percentage of loan balance		33%
Warrant issuance amount		$ 17,060
Number of securities called by each warrant (in shares) | shares		1
Warrants exercise price (in dollar per share) | $ / shares		$ 0.17
Warrant coverage percentage of loan balance upon exercise of option		30%
LI Lending LLC Loan Agreement
Subsequent Event [Line Items]
Interest rate, stated percentage		12%
Debt refinance bona fide offer, period from amendment date		6 months