Segmented Information

12 Months Ended

Dec. 31, 2024

23.

Segmented Information

Operations by reportable segment for the year ending December 31, 2024 are as follows:

Schedule of Reportable Segment

	Wholesale Concentrates			Retail			Corporate & Other			Total
	Year Ended December 31, 2024
	Wholesale Concentrates			Retail			Corporate & Other			Total
Net revenue	$	24,586,764		$	3,908,683		$	-		$	28,495,447
Cost of sales		17,544,172			2,011,107			-			19,555,279
Gross profit		7,042,592			1,897,576			-			8,940,168

Operating expenses
Advertising and promotion		176,777			236,856			27,233			440,866
Depreciation and amortization		1,731,522			117,032			52,265			1,900,819
Wages and salaries		2,041,058			847,036			2,990,555			5,878,649
Office and general expenses		1,706,632			541,955			734,900			2,983,487
Research and development expenses		18,739			-			244			18,983
Legal and professional fees		307,950			54,066			1,011,899			1,373,915
Insurance expenses		2,197			45,989			386,952			435,138
Excise and other taxes		55,450			-			-			55,450
Lease expenses		60,124			(17,000	)		672,994			716,118
Loss on impairment of goodwill, intangible and long-lived assets		-			2,414,485			246,899			2,661,384
Other gains (losses)		-			(6,415	)		7,812			1,397
Travel and business development		80,175			18,401			361,231			459,807
Total operating expenses		6,180,624			4,252,405			6,492,984			16,926,013

Loss from operations		861,968			(2,354,829	)		(6,492,984	)		(7,985,845	)

Other expense
Interest expense		1,257,809			201,376			3,696,103			5,155,288
Loss (gain) on extinguishment of debt		-			-			2,935,029			2,935,029
Change in fair value of contingent consideration		-			-			(855,000	)		(855,000	)
Change in fair value derivative liability		12,727			-			6,100,758			6,113,485
Other expense (income)		(8,902	)		-			(11,474	)		(20,376	)
Total other expense		1,261,634			201,376			11,865,416			13,328,426

Loss before provision for income taxes		(399,666	)		(2,556,205	)		(18,358,400	)		(21,314,271	)

Provision for income taxes		333			-			3,306,920			3,307,243
Net loss and comprehensive loss		(399,989	)		(2,556,205	)		(21,665,320	)		(24,621,514	)

Foreign currency translation		-			-			7,314			7,314
Net loss and comprehensive loss attributable to non-controlling interest		-			-			-			-
Net loss and comprehensive loss attributable to shareholders of Leef Brands, Inc.	$	(399,989	)	$	(2,556,205	)	$	(21,672,634	)	$	(24,628,828	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Leef Brands Inc. S-1