v3.26.1
Note 6 - Capital Assets
 12 Months Ended
May 31, 2026
Notes to Financial Statements  
Property, Plant, and Equipment [Text Block]

6.

Capital assets

 

Capital assets consisted of the following:

 

  

May 31,

  

May 31,

 
  

2026

  

2025

 

Land

 $59,764  $44,529 

Production facility

  464,415   407,650 

Equipment

  283,778   280,585 

Leasehold improvement

  32,954   20,415 

Finance lease, right-of-use assets

  117,976   40,308 

Construction in progress

  10,009   11,241 
  $968,896  $804,728 

Less: accumulated amortization

  (288,671)  (236,295)

Total

 $680,225  $568,433 

 

The Company performs ongoing impairment assessments whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. During the fiscal years ended  May 31, 2026 and May 31, 2025, after completing an assessment for indicators of impairment, it was determined that the asset groups were recoverable and as a result there were $nil impairments during the respective fiscal years.

 

Assets held for sale consisted of the following:

 

  

May 31,

  

May 31,

 
  

2026

  

2025

 

Production facilities

 $—  $5,800 

Equipment

  979   — 

Leasehold improvements

  493   — 

Operating lease, right-of-use assets

  977   — 

Total

 $2,449  $5,800 

 

As of May 31, 2025, the Company classified $5,800 of the Fort Collins, CO partially vacant warehouse facility from its Cannabis reporting segment as assets held for sale. During the fiscal year ended May 31, 2026, the Company completed the sale of the Fort Collins asset group. The loss on the disposition of the Fort Collins asset group was recorded in the consolidated statement of net loss and comprehensive loss.

 

Additionally, during the fiscal year ended May 31, 2026, the Company classified the assets of Atwater Brewing, with a carrying value of $2,449 from its Beverage reporting unit, as assets held for sale. These assets were acquired on September 1, 2024 as part of the transaction referred to as “Craft Acquisition II.” Following management’s assessment of facility utilizations, it was determined that such assets would be held for sale. Assets held for sale are measured at the lower of carrying amount and the fair value less costs to sell and are no longer depreciated. Changes in the carrying amount are recorded in the consolidated statement of net loss and comprehensive loss.