Village Farms次季銷售增6.8%至6398萬美元 大麻業務國際出口倍增

10-Q
 
 
 
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 
 

  
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
WASHINGTON D.C. 20549 
 
FORM 10-Q 
 
(Mark One) 

 
 
 
 
 

 
 ☒

 Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. 

 

 For the quarterly period ended June 30, 2026 
 

 
 
 
 
 

 
 ☐

 Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. 

 

 For the transition period from to 
Commission File Number 001-38783 
 
VILLAGE FARMS INTERNATIONAL, INC. 
(Exact name of Registrant as Specified in its Charter) 
 
 

 
 
 
 
 
 

 
 Ontario

 

 98-1007671

 

 
 (State or other Jurisdiction of
Incorporation or Organization)

 

 (I.R.S. Employer
Identification No.)

 

 90 Colonial Parkway
Lake Mary, Florida
32746
(Address of Principal Executive Offices) (Zip Code) 
(407) 936-1190 
Issuer’s phone number, including area code 
N/A 
(Former name, former address and former fiscal year, if changed since last report)
 
Securities registered pursuant to Section 12(b) of the Act: 
 

 
 
 
 
 
 
 
 

 
 Title of each class

 

 Trading Symbol(s)

 

 Name of each exchange on which registered

 

 
 Common Shares, without par value

 

 VFF

 

 The Nasdaq Stock Market LLC

 

 Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Not Applicable ☐ 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “small reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
 

 
 
 
 
 
 
 
 
 
 

 
 Large accelerated filer

 

 ☐

 

 Accelerated filer

 

 ☒

 

 
  

  

  

  

 

 
 Non-accelerated filer

 

 ☐

 

 Smaller reporting company

 

 ☒

 

 
  

  

  

  

 

 
 Emerging growth company

 

 ☐

 

  

 

  

 

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ 
As of August 7, 2026, 122,286,297 common shares of the registrant were outstanding. 
 

 

 
  
 

 TABLE OF CONTENTS 
 

 
 
 
 
 
 
 
 

 
 

  

  

 Page

 

 
 PART I - FINANCIAL INFORMATION

  

  

 

 
 Item 1.

  

 Financial Statements

  

  

 

 
  

  

 Condensed Consolidated Statements of Financial Position

  

 2

 

 
  

  

 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) 

  

 3

 

 
  

  

 Condensed Consolidated Statements of Changes in Shareholders’ Equity and Mezzanine Equity

  

 4

 

 
  

  

 Condensed Consolidated Statements of Cash Flows 

  

 6

 

 
  

  

 Notes to Condensed Consolidated Financial Statements 

  

 7

 

 
 Item 2.

  

 Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

 20

 

 
 Item 3.

  

 Quantitative and Qualitative Disclosures About Market Risk 

  

 35

 

 
 Item 4.

  

 Controls and Procedures 

  

 35

 

 
  

 

 
 PART II - OTHER INFORMATION 

  

 37

 

 
 Item 1.

  

 Legal Proceedings 

  

 37

 

 
 Item 1A.

  

 Risk Factors 

  

 37

 

 
 Item 2.

  

 Unregistered Sale of Securities and Use of Proceeds

  

 37

 

 
 Item 3.

  

 Defaults Upon Senior Securities

  

 37

 

 
 Item 4.

  

 Mine Safety Disclosures

  

 37

 

 
 Item 5.

  

 Other Information

  

 37

 

 
 Item 6.

  

 Exhibits 

  

 38

 

 
  

  

  

  

  

 

 
  

  

 Signatures 

  

 39

 

  
 
 

 

 
  

 Forward Looking Statements 
 
As used in this Quarterly Report on Form 10-Q, the terms “Village Farms”, “Village Farms International”, the “Company”, “we”, “us”, “our” and similar references refer to Village Farms International, Inc. and our consolidated subsidiaries, and the term “Common Shares” refers to our common shares, no par value. Our financial information is presented in U.S. dollars and all references in this Quarterly Report on Form 10-Q to “$” means U.S. dollars and all references to “C$” means Canadian dollars.
 
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. This Quarterly Report on Form 10-Q also contains "forward-looking information" within the meaning of applicable Canadian securities laws. We refer to such forward-looking statements and forward-looking information collectively as "forward-looking statements". Forward-looking statements may relate to the Company's future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, expansion plans, litigation, projected production, projected costs, capital expenditures, financial results, tariffs, taxes, plans and objectives of or involving the Company or statements regarding the anticipated benefits from the closing of the transaction involving Verdexa (formally Vanguard Food LP). Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable or produce industry, the cannabis industry and market and our energy segment are forward-looking statements. In some cases, forward-looking information can be identified by such terms as "can", "outlook", "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "try", "estimate", "predict", "potential", "continue", "likely", "schedule", "objectives", or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts. The forward-looking statements in this Quarterly Report on Form 10-Q are subject to risks that may include, but are not limited to: our limited operating history in the cannabis and cannabinoids industry, including that of Pure Sunfarms, Corp. (“Pure Sunfarms”), Rose LifeScience Inc. (“Rose” or “Rose LifeScience”), Balanced Health Botanicals, LLC (“Balanced Health”) and Village Farms International B.V ("VFN"); the limited operational history of the Delta RNG Project in our energy segment; the legal status of the cannabis business of Pure Sunfarms, Rose, and VFN and the hemp business of Balanced Health and uncertainty regarding the legality and regulatory status of cannabis and cannabinoid (CBD) products in the United States; risks relating to the implementation and enforcement of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extension Act, 2026, which may materially and adversely affect our CBD business in the United states; risks relating to operation of our collaboration with Verdexa; risks relating obtaining additional financing on acceptable terms, including our dependence upon credit facilities and dilutive transactions; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; our market position and competitive position; our ability to leverage current business relationships for future business involving hemp and cannabinoids; the ability of Pure Sunfarms and Rose to cultivate and distribute cannabis in Canada as well as exports; risks related to the start-up of international production at our Netherlands operations under VFN; existing and new governmental regulations, including risks related to regulatory compliance and regarding obtaining and maintaining licenses required under the Cannabis Act (Canada), the Criminal Code and other Acts, S.C. 2018, C. 16 (Canada) for our Canadian operational facilities, and changes in our regulatory requirements; legal and operational risks relating to expected conversion of our greenhouses to cannabis production in Canada and in the United States; risks related to rules and regulations at the U.S. Federal (Food and Drug Administration and United States Department of Agriculture), state and municipal levels with respect to produce and hemp, cannabidiol-based products commercialization; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; inflationary effects on costs of cultivation and transportation; recessionary effects on demand of our products; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade and the potential for tariffs and other trade restrictions; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; elevated interest rates; and tax risks.
 
The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Although the forward-looking statements contained in this Quarterly Report on Form 10-Q are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company’s control, which may cause the Company’s or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company's filings with securities regulators, including this Quarterly Report on Form 10-Q and the Company’s most recently filed annual report on Form 10-K.
 
When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events or information as of the date on which the statements are made in this Quarterly Report on Form 10-Q. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
 
 

 1

 
  
 

 PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Village Farms International, Inc. 
Condensed Consolidated Statements of Financial Position 
(In thousands of United States dollars, except share data) 
(Unaudited) 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30, 2026

  

  

 December 31, 2025

  

 

 
 ASSETS

  

  

  

  

  

  

 

 
 Current assets

  

  

  

  

  

  

 

 
 Cash and cash equivalents

  

 $

 72,931

  

  

 $

 81,189

  

 

 
 Restricted cash

  

  

 —

  

  

  

 5,063

  

 

 
 Trade receivables, net

  

  

 32,406

  

  

  

 23,151

  

 

 
 Inventories, net

  

  

 46,669

  

  

  

 41,519

  

 

 
 Other receivables

  

  

 1,397

  

  

  

 324

  

 

 
 Prepaid expenses and deposits

  

  

 6,923

  

  

  

 3,191

  

 

 
 Total current assets

  

  

 160,326

  

  

  

 154,437

  

 

 
 Non-current assets

  

  

  

  

  

  

 

 
 Property, plant and equipment, net

  

  

 190,058

  

  

  

 185,712

  

 

 
 Investments

  

  

 6,276

  

  

  

 6,276

  

 

 
 Goodwill

  

  

 42,775

  

  

  

 44,365

  

 

 
 Intangibles, net

  

  

 21,137

  

  

  

 23,647

  

 

 
 Deferred tax asset

  

  

 564

  

  

  

 694

  

 

 
 Right-of-use assets

  

  

 5,388

  

  

  

 4,066

  

 

 
 Other assets

  

  

 1,943

  

  

  

 3,899

  

 

 
 Total assets

  

 $

 428,467

  

  

 $

 423,096

  

 

 
 LIABILITIES

  

  

  

  

  

  

 

 
 Current liabilities

  

  

  

  

  

  

 

 
 Trade payables

  

 $

 17,587

  

  

 $

 15,747

  

 

 
 Current maturities of long-term debt

  

  

 5,249

  

  

  

 4,885

  

 

 
 Accrued sales taxes

  

  

 7,068

  

  

  

 8,695

  

 

 
 Accrued liabilities

  

  

 16,699

  

  

  

 13,960

  

 

 
 Lease liabilities - current

  

  

 1,169

  

  

  

 1,198

  

 

 
 Income tax payable

  

  

 —

  

  

  

 12,151

  

 

 
 Other current liabilities

  

  

 2,836

  

  

  

 1,950

  

 

 
 Total current liabilities

  

  

 50,608

  

  

  

 58,586

  

 

 
 Non-current liabilities

  

  

  

  

  

  

 

 
 Long-term debt

  

  

 34,713

  

  

  

 28,769

  

 

 
 Deferred tax liability

  

  

 17,329

  

  

  

 18,494

  

 

 
 Lease liabilities - non-current

  

  

 5,058

  

  

  

 3,855

  

 

 
 Other non-current liabilities

  

  

 2,111

  

  

  

 3,330

  

 

 
 Total liabilities

  

  

 109,819

  

  

  

 113,034

  

 

 
 MEZZANINE EQUITY

  

  

  

  

  

  

 

 
 Redeemable non-controlling interest

  

  

 6,447

  

  

  

 10,164

  

 

 
 SHAREHOLDERS’ EQUITY

  

  

  

  

  

  

 

 
 Common shares, no par value per share - unlimited shares authorized;
121,844,464 shares issued and outstanding at June 30, 2026 and 115,722,312 common shares issued and outstanding at December 31, 2025.

  

  

 407,031

  

  

  

 392,380

  

 

 
 Additional paid in capital

  

  

 24,931

  

  

  

 29,374

  

 

 
 Accumulated other comprehensive loss

  

  

 (17,248

 )

  

  

 (9,281

 )

 

 
 Retained earnings

  

  

 (102,513

 )

  

  

 (112,575

 )

 

 
 Total shareholders’ equity

  

  

 312,201

  

  

  

 299,898

  

 

 
 Total liabilities, mezzanine equity and shareholders’ equity

  

 $

 428,467

  

  

 $

 423,096

  

 

 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

 2

 
  
 

 Village Farms International, Inc. 
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(In thousands of United States dollars, except per share data) 
(Unaudited) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended June 30,

  

  

 Six Months Ended June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Sales

  

 $

 63,977

  

  

 $

 59,899

  

  

 $

 114,215

  

  

 $

 99,579

  

 

 
 Cost of sales

  

  

 (34,004

 )

  

  

 (37,557

 )

  

  

 (63,256

 )

  

  

 (63,057

 )

 

 
 Gross profit

  

  

 29,973

  

  

  

 22,342

  

  

  

 50,959

  

  

  

 36,522

  

 

 
 Selling, general and administrative expenses

  

  

 (18,811

 )

  

  

 (15,411

 )

  

  

 (34,753

 )

  

  

 (30,030

 )

 

 
 Interest expense

  

  

 (477

 )

  

  

 (814

 )

  

  

 (1,000

 )

  

  

 (1,516

 )

 

 
 Interest income

  

  

 343

  

  

  

 109

  

  

  

 951

  

  

  

 184

  

 

 
 Foreign exchange (loss) gain

  

  

 (597

 )

  

  

 1,792

  

  

  

 (1,145

 )

  

  

 1,708

  

 

 
 Other income (loss)

  

  

 24

  

  

  

 4,430

  

  

  

 (159

 )

  

  

 4,451

  

 

 
 Income before taxes and equity method investment income

  

  

 10,455

  

  

  

 12,448

  

  

  

 14,853

  

  

  

 11,319

  

 

 
 Provision for income taxes

  

  

 (3,262

 )

  

  

 (2,503

 )

  

  

 (4,930

 )

  

  

 (3,486

 )

 

 
 Equity method investment income, net of tax

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Income from continuing operations

  

  

 7,193

  

  

  

 9,945

  

  

  

 9,923

  

  

  

 7,833

  

 

 
 Income from discontinued operations, net of tax

  

  

 —

  

  

  

 16,294

  

  

  

 —

  

  

  

 11,291

  

 

 
 Income including non-controlling interests

  

  

 7,193

  

  

  

 26,239

  

  

  

 9,923

  

  

  

 19,124

  

 

 
 Less: net (income) loss attributable to non-controlling interests, net of tax

  

  

 (48

 )

  

  

 258

  

  

  

 139

  

  

  

 670

  

 

 
 Net income attributable to Village Farms International, Inc. shareholders

  

 $

 7,145

  

  

 $

 26,497

  

  

 $

 10,062

  

  

 $

 19,794

  

 

 
 Basic income per share attributable to Village Farms International, Inc. shareholders from:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Continuing operations

  

 $

 0.06

  

  

 $

 0.09

  

  

 $

 0.09

  

  

 $

 0.08

  

 

 
 Discontinued operations

  

  

 -

  

  

  

 0.15

  

  

  

 -

  

  

  

 0.10

  

 

 
 Basic income per share attributable to Village Farms International, Inc. shareholders

  

 $

 0.06

  

  

 $

 0.24

  

  

 $

 0.09

  

  

 $

 0.18

  

 

 
 Diluted income per share attributable to Village Farms International, Inc. shareholders from:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Continuing operations

  

 $

 0.06

  

  

 $

 0.10

  

  

 $

 0.08

  

  

 $

 0.08

  

 

 
 Discontinued operations

  

  

 -

  

  

  

 0.14

  

  

  

 -

  

  

  

 0.10

  

 

 
 Diluted income per share attributable to Village Farms International, Inc. shareholders

  

 $

 0.06

  

  

 $

 0.24

  

  

 $

 0.08

  

  

 $

 0.18

  

 

 
 Weighted average number of common shares used
   in the computation of net income (loss) per share (in thousands):

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Basic

  

  

 116,192

  

  

  

 112,347

  

  

  

 115,728

  

  

  

 112,342

  

 

 
 Diluted

  

  

 124,721

  

  

  

 112,736

  

  

  

 125,824

  

  

  

 112,607

  

 

 
 Income including non-controlling interests

  

 $

 7,193

  

  

 $

 26,239

  

  

 $

 9,923

  

  

 $

 19,124

  

 

 
 Other comprehensive income (loss):

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Foreign currency translation adjustment

  

  

 (4,665

 )

  

  

 9,870

  

  

  

 (8,196

 )

  

  

 10,835

  

 

 
 Comprehensive loss including non-controlling interests

  

  

 2,528

  

  

  

 36,109

  

  

  

 1,727

  

  

  

 29,959

  

 

 
 Comprehensive loss (income) attributable to non-controlling interests

  

  

 72

  

  

  

 (239

 )

  

  

 418

  

  

  

 100

  

 

 
 Comprehensive income attributable to Village Farms International, Inc. shareholders

  

 $

 2,600

  

  

 $

 35,870

  

  

 $

 2,145

  

  

 $

 30,059

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

 

  
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 

 3

 
  
 

 Village Farms International, Inc. 
Condensed Consolidated Statements of Changes in Shareholders’ Equity and Mezzanine Equity 
(In thousands of United States dollars, except for shares outstanding) 
(Unaudited) 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended June 30, 2026

  

 

 
  

  

 Number of Common
Shares (in thousands)

  

  

 Common Shares

  

  

 Additional Paid in Capital

  

  

 Accumulated Other Comprehensive Loss

  

  

 Retained Earnings

  

  

 Total Shareholders’
Equity

  

  

 Mezzanine Equity

  

 

 
 Balance April 1, 2026

  

  

 114,048

  

  

 $

 392,898

  

  

 $

 23,382

  

  

 $

 (12,654

 )

  

 $

 (109,658

 )

  

 $

 293,968

  

  

 $

 9,819

  

 

 
 Net proceeds from issuance of common shares

  

  

 7,500

  

  

  

 14,054

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 14,054

  

  

  

 —

  

 

 
 Shares repurchased

  

  

 (149

 )

  

  

 —

  

  

  

 (419

 )

  

  

 —

  

  

  

 —

  

  

  

 (419

 )

  

  

 —

  

 

 
 Share-based compensation

  

  

 —

  

  

  

 —

  

  

  

 293

  

  

  

 —

  

  

  

 —

  

  

  

 293

  

  

  

 —

  

 

 
 Shares issued on vesting of restricted share awards, net of tax witholding

  

  

 356

  

  

  

 —

  

  

  

 (394

 )

  

  

 —

  

  

  

 —

  

  

  

 (394

 )

  

  

 —

  

 

 
 Shares issued on exercise of options

  

  

 89

  

  

  

 79

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 79

  

  

  

 —

  

 

 
 Acquisition of redeemable non-controlling interest

  

  

 —

  

  

  

 —

  

  

  

 2,069

  

  

  

 —

  

  

  

 —

  

  

  

 2,069

  

  

  

 (3,349

 )

 

 
 Cumulative translation adjustment

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (4,594

 )

  

  

 —

  

  

  

 (4,594

 )

  

  

 (71

 )

 

 
 Net income

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 7,145

  

  

  

 7,145

  

  

  

 48

  

 

 
 Balance at June 30, 2026

  

  

 121,844

  

  

 $

 407,031

  

  

 $

 24,931

  

  

 $

 (17,248

 )

  

 $

 (102,513

 )

  

 $

 312,201

  

  

 $

 6,447

  

 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended June 30, 2025

  

 

 
  

  

 Number of Common
Shares (in thousands)

  

  

 Common Shares

  

  

 Additional Paid in Capital

  

  

 Accumulated Other
Comprehensive (Loss) income

  

  

 Retained Earnings

  

  

 Total Shareholders’
Equity

  

  

 Mezzanine Equity

  

 

 
 Balance at April 1, 2025

  

  

 112,337

  

  

 $

 387,349

  

  

 $

 30,749

  

  

 $

 (18,042

 )

  

 $

 (151,719

 )

  

 $

 248,337

  

  

 $

 9,616

  

 

 
 Share-based compensation

  

  

 306

  

  

  

 —

  

  

  

 123

  

  

  

 —

  

  

  

 —

  

  

  

 123

  

  

 —

  

 

 
 Shares issued on exercise of warrants

  

  

 1

  

  

  

 1

  

  

  

 6

  

  

  

 —

  

  

  

 —

  

  

  

 7

  

  

  

  

 

 
 Cumulative translation adjustment

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 9,373

  

  

  

 —

  

  

  

 9,373

  

  

  

 497

  

 

 
 Net income (loss)

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 26,497

  

  

  

 26,497

  

  

  

 (258

 )

 

 
 Balance at June 30, 2025

  

  

 112,644

  

  

 $

 387,350

  

  

 $

 30,878

  

  

 $

 (8,669

 )

  

 $

 (125,222

 )

  

 $

 284,337

  

  

 $

 9,855

  

 

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Six Months Ended June 30, 2026

  

 

 
  

  

 Number of Common
Shares

  

  

 Common Shares

  

  

 Additional Paid in
Capital

  

  

 Accumulated Other
Comprehensive (loss) income

  

  

 Retained Earnings

  

  

 Total Shareholders’ Equity

  

  

 Mezzanine Equity

  

 

 
 Balance January 1, 2026

  

  

 115,722

  

  

 $

 392,380

  

  

 $

 29,374

  

  

 $

 (9,281

 )

  

 $

 (112,575

 )

  

 $

 299,898

  

  

 $

 10,164

  

 

 
 Net proceeds from issuance of common shares

  

  

 7,500

  

  

  

 14,054

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 14,054

  

  

  

 —

  

 

 
 Shares Repurchased

  

  

 (2,214

 )

  

  

 —

  

  

  

 (6,787

 )

  

  

 —

  

  

  

 —

  

  

  

 (6,787

 )

  

  

 —

  

 

 
 Share-based compensation

  

  

 —

  

  

  

 —

  

  

  

 669

  

  

  

 —

  

  

  

 —

  

  

  

 669

  

  

  

 —

  

 

 
 Shares issued on vesting of restricted share awards, net of tax witholding

  

  

 356

  

  

  

 —

  

  

  

 (394

 )

  

  

 —

  

  

  

 —

  

  

  

 (394

 )

  

  

 —

  

 

 
 Shares issued on exercise of warrants

  

  

 221

  

  

  

 389

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 389

  

  

  

 —

  

 

 
 Shares issued on exercise of options

  

  

 259

  

  

  

 208

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 208

  

  

  

 —

  

 

 
 Acquisition of redeemable non-controlling interest

  

  

 —

  

  

  

 —

  

  

  

 2,069

  

  

  

 —

  

  

  

 —

  

  

  

 2,069

  

  

  

 (3,349

 )

 

 
 Cumulative translation adjustment

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (7,967

 )

  

  

 —

  

  

  

 (7,967

 )

  

  

 (229

 )

 

 
 Net income (loss)

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 10,062

  

  

  

 10,062

  

  

  

 (139

 )

 

 
 Balance at June 30, 2026

  

  

 121,844

  

  

 $

 407,031

  

  

 $

 24,931

  

  

 $

 (17,248

 )

  

 $

 (102,513

 )

  

 $

 312,201

  

  

 $

 6,447

  

 

  

 4

 
  
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Six Months Ended June 30, 2025

  

 

 
  

  

 Number of Common
Shares

  

  

 Common Shares

  

  

 Additional Paid in
Capital

  

  

 Accumulated Other
Comprehensive Loss

  

  

 Retained Earnings

  

  

 Total Shareholders’
Equity

  

  

 Mezzanine Equity

  

 

 
 Balance January 1, 2025

  

  

 112,337

  

  

 $

 387,349

  

  

 $

 30,604

  

  

 $

 (18,932

 )

  

 $

 (145,016

 )

  

 $

 254,005

  

  

 $

 9,953

  

 

 
 Share-based compensation

  

  

 306

  

  

  

 —

  

  

  

 268

  

  

 —

  

  

 —

  

  

  

 268

  

  

 —

  

 

 
 Shares issued on exercise of warrants

  

  

 1

  

  

  

 1

  

  

  

 6

  

  

  

 —

  

  

  

 —

  

  

  

 7

  

  

  

  

 

 
 Cumulative translation adjustment

  

 —

  

  

 —

  

  

 —

  

  

  

 10,263

  

  

 —

  

  

  

 10,263

  

  

  

 572

  

 

 
 Net income (loss)

  

 —

  

  

 —

  

  

 —

  

  

 —

  

  

  

 19,794

  

  

  

 19,794

  

  

  

 (670

 )

 

 
 Balance at June 30, 2025

  

  

 112,644

  

  

 $

 387,350

  

  

 $

 30,878

  

  

 $

 (8,669

 )

  

 $

 (125,222

 )

  

 $

 284,337

  

  

 $

 9,855

  

 

 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 

 5

 
  
 

 Village Farms International, Inc. 
Condensed Consolidated Statements of Cash Flows 
(In thousands of United States dollars) 
(Unaudited) 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Six Months Ended June 30,

  

 

 
  

  

 2026

  

  

 2025

  

 

 
 Cash flows provided by (used in) operating activities:

  

  

  

  

  

  

 

 
 Income from continuing operations including non-controlling interests

  

 $

 9,923

  

  

 $

 7,833

  

 

 
 Adjustments to reconcile net income attributable to Village Farms International, Inc. shareholders to net cash used in operating activities of continuing operations:

  

  

  

  

  

  

 

 
 Depreciation and amortization

  

  

 8,582

  

  

  

 8,410

  

 

 
 Amortization of deferred charges

  

  

 139

  

  

  

 47

  

 

 
 Interest expense

  

  

 1,000

  

  

  

 1,516

  

 

 
 Interest paid on long-term debt

  

  

 (757

 )

  

  

 (1,613

 )

 

 
 Unrealized foreign exchange loss (gain)

  

  

 217

  

  

  

 (87

 )

 

 
 Loss on disposal of assets

  

  

 87

  

  

  

 —

  

 

 
 Non-cash lease expense

  

  

 491

  

  

  

 619

  

 

 
 Share-based compensation

  

  

 669

  

  

  

 268

  

 

 
 Deferred income taxes

  

  

 200

  

  

  

 (935

 )

 

 
 Changes in non-cash working capital items

  

  

 (28,435

 )

  

  

 6,207

  

 

 
 Net cash (used in) provided by operating activities from continuing operations

  

  

 (7,884

 )

  

  

 22,265

  

 

 
 Cash flows used in investing activities:

  

  

  

  

  

  

 

 
 Purchases of property, plant and equipment

  

  

 (15,462

 )

  

  

 (5,289

 )

 

 
 Net cash used in investing activities from continuing operations

  

  

 (15,462

 )

  

  

 (5,289

 )

 

 
 Cash flows provided by (used in) financing activities:

  

  

  

  

  

  

 

 
 Proceeds from issuance of common shares

  

  

 15,000

  

  

  

 —

  

 

 
 Issuance costs

  

  

 (958

 )

  

  

 —

  

 

 
 Proceeds from borrowings

  

  

 8,952

  

  

  

 —

  

 

 
 Repayments on borrowings

  

  

 (2,387

 )

  

  

 (4,554

 )

 

 
 Share repurchases

  

  

 (6,787

 )

  

  

 —

  

 

 
 Acquisition of redeemable non-controlling interest

  

  

 (1,280

 )

  

  

  

 

 
 Proceeds from exercise of warrants and options

  

  

 182

  

  

  

 —

  

 

 
 Other financing activities

  

  

 (182

 )

  

  

 (432

 )

 

 
 Net cash provided by (used in) financing activities from continuing operations

  

  

 12,540

  

  

  

 (4,986

 )

 

 
 Discontinued Operations

  

  

  

  

  

  

 

 
 Net cash (used in) provided by operating activities from discontinued operations

  

  

 —

  

  

  

 (6,818

 )

 

 
 Net cash (used in) provided by investing activities from discontinued operations

  

  

 —

  

  

  

 38,710

  

 

 
 Net cash (used in) provided by financing activities from discontinued operations

  

  

 —

  

  

  

 (4,000

 )

 

 
 Net cash flows provided by discontinued operations

  

  

 —

  

  

  

 27,892

  

 

 
 Effect of exchange rate changes on cash and cash equivalents

  

  

 (2,515

 )

  

  

 475

  

 

 
 Net (decrease) increase in cash, cash equivalents and restricted cash

  

  

 (13,321

 )

  

  

 40,357

  

 

 
 Cash, cash equivalents and restricted cash, beginning of period

  

  

 86,252

  

  

  

 24,631

  

 

 
 Cash, cash equivalents and restricted cash, end of period

  

 $

 72,931

  

  

 $

 64,988

  

 

  
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 

 6

 
  

 VILLAGE FARMS INTERNATIONAL, INC. 
Notes to Condensed Consolidated Financial Statements 
(In thousands of United States dollars, except per share amounts, unless otherwise noted) 
1.BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES 

Nature of Business
Village Farms International, Inc. (“VFF” and, together with its subsidiaries, the “Company”, “we”, “us”, or “our”) is a corporation existing under the Ontario Business Corporations Act. VFF’s principal operating subsidiaries as of June 30, 2026 were Pure Sunfarms Corp. (“Pure Sunfarms”), Balanced Health Botanicals, LLC (“Balanced Health”), Village Farms International, B.V. (“VFN”), Village Farms Canada Limited Partnership ("VFCLP"), Village Farms, L.P., and VF Clean Energy, Inc. (“VFCE”). VFF also owns an 86.6% interest in Rose LifeScience Inc. (“Rose”).
The address of the registered office of VFF is 79 Wellington Street West, Suite 3300, Toronto, Ontario, Canada, M5K 1N2.
The address of the principal executive office of VFF is 90 Colonial Center Parkway, Lake Mary, Florida, United States, 32746.
The common shares of the Company (the "Common Shares") are listed on the Nasdaq Capital Market (“Nasdaq”) under the symbol “VFF”.
VFF's wholly owned subsidiary, Pure Sunfarms, is a vertically integrated licensed producer and supplier of cannabis products sold to customers throughout Canada and internationally. Through its 86.6% ownership interest of Rose, the Company has a substantial presence in the Province of Quebec as a cannabis supplier, producer and commercialization expert. The Company’s wholly owned subsidiary, Balanced Health, develops and sells high quality, cannabidiol (“CBD”) based products including ingestible, edible and topical applications within the U.S. Its wholly owned subsidiary, VFN, is a vertically integrated licensed producer and supplier of cannabis products sold to coffee shops in the Netherlands. VFF also owns and operates a sophisticated, highly intensive agricultural greenhouse facility in British Columbia, where it produces premium-quality tomatoes.
Basis of Presentation
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying Condensed Consolidated Statement of Financial Position as of December 31, 2025 is derived from the Company’s audited financial statements as of that date. Because certain information and footnote disclosures have been condensed or omitted, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2025 contained in the Company’s 2025 Annual Report on Form 10-K. In management’s opinion, all normal and recurring adjustments considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented have been included. When necessary, certain prior year amounts have been reclassified to conform with the current period presentation. Interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The Company believes that the disclosures made in these condensed consolidated financial statements are adequate to make the information not misleading.
As of May 30, 2025, the Company determined that certain assets that had been disposed of met the criteria for discontinued operations presentation. For the three and six month periods ended June 30, 2025, the operating results associated with the assets disposed of have been reclassified into income (loss) from discontinued operations, net of tax, in the Condensed Consolidated Statements of Operat