0001656472-24-000102 | 10-Q | XBRL Viewer

Restructuring

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

In the first quarter of 2022, the Company initiated a strategic plan to realign the business around its brands, centralize functions and evaluate the Company’s supply chain (the “Realignment”). As part of the Realignment, on February 28, 2022, the Board approved plans to leverage the Company’s strategic partnerships to improve supply chain efficiencies and reduce manufacturing overhead by exiting its production facility in Stayner, Ontario, Canada (the “Peace Naturals Campus”). On February 27, 2023, the Board approved revisions to the Realignment, which were expected to result in the Company maintaining select components of its operations at the Peace Naturals Campus, namely distribution warehousing, certain research and development activities and manufacturing of certain of the Company’s products, while seeking to sell and lease back all or some of the Peace Naturals Campus or to lease certain portions of the Peace Naturals Campus to third parties. In the third quarter of 2023, the Board approved revisions to the Realignment to wind-down operations at Cronos Fermentation, list the Company’s Winnipeg, Manitoba facility (the “Cronos Fermentation Facility”) for sale, and implement additional organization-wide cost reductions as the Company continues its Realignment initiatives. The Realignment initiatives were intended to position the Company to drive profitable and sustainable growth over time.

On November 26, 2023, the Company entered into an agreement with Future Farmco Canada Inc. for the sale and leaseback of the Peace Naturals Campus. This agreement was subsequently terminated pursuant to its terms during the second quarter of 2024. The Company is continuing to evaluate its strategic options for the Peace Naturals Campus, which may include continuing and expanding operations at the facility.

During the first quarter of 2024, the Company ceased operations at Cronos Fermentation and performed an assessment under ASC 360 of the recoverability of the carrying value of the Cronos Fermentation assets, and determined the carrying value of the assets was not fully recoverable. The fair value was estimated using a combination of the market and income approaches. As a result of this analysis, an impairment loss on long-lived assets of $1,631 was recorded to the condensed consolidated statements of net loss and comprehensive loss in the nine months ended September 30, 2024. In addition, the Cronos Fermentation assets were classified as held-for-sale in the first quarter of 2024 at a fair value less costs to sell of $19,398 and continue to be classified as held-for-sale as of September 30, 2024. During the third quarter of 2024, the Company adjusted its sales strategy for the Cronos Fermentation assets to market the assets to a broader buyer pool, which resulted in the recognition of a loss on held-for-sale assets of $10,422 on the condensed consolidated statements of net income (loss) and comprehensive income (loss) in both the three and nine months ended September 30, 2024.

During the three and nine months ended September 30, 2024, the Company incurred nil and $630 of restructuring costs in its continuing operations in connection with the Realignment. Charges related thereto include shutdown costs at the Cronos Fermentation Facility, as well as employee-related costs such as severance and other termination benefits. During both the three and nine months ended September 30, 2023, the Company incurred $1,423 of restructuring costs in its continuing operations in connection with the Realignment. Charges related thereto include employee-related costs such as severance and other termination benefits. Restructuring costs incurred in the Company’s discontinued operations during the three and nine months ended September 30, 2023 is presented in Note 3 “Discontinued Operations.”

The following table summarizes the Company’s restructuring activity for the three and nine months ended September 30, 2024:


	Accrual as of June 30, 2024		Expenses		Payments/Write-offs		Accrual as of September 30, 2024
Employee Termination Benefits	$	24	$	—	$	(24)	$	—

Other Restructuring Costs	547		—		(547)		—
Total	$	571	$	—	$	(571)	$	—


	Accrual as of December 31, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2024
Employee Termination Benefits	$	150	$	62	$	(212)	$	—

Other Restructuring Costs	—		568		(568)		—
Total	$	150	$	630	$	(780)	$	—


	Accrual as of June 30, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	61	$	1,420	$	(947)	$	534

Other Restructuring Costs	—		3		(3)		—
Total	$	61	$	1,423	$	(950)	$	534


	Accrual as of December 31, 2022		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	403	$	1,420	$	(1,289)	$	534

Other Restructuring Costs	21		3		(24)		—
Total	$	424	$	1,423	$	(1,313)	$	534

Background, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Revenue by Major Product Category

The following tables present the Company’s revenue by major product category for continuing operations:


	Three months ended September 30,
	2024		2023
Cannabis flower	$	26,328	$	17,414
Cannabis extracts	7,789		7,268
Other	147		128
Net revenue	$	34,264	$	24,810


	Nine months ended September 30,
	2024		2023
Cannabis flower	$	64,514	$	44,556
Cannabis extracts	22,580		18,495
Other	220		275
Net revenue	$	87,314	$	63,326

Schedule of Revenue from External Customers by Geographic Areas

Net revenue attributed to a geographic region based on the location of the customer were as follows for continuing operations:


	Three months ended September 30,
	2024		2023
Canada	$	24,067	$	18,738
Israel	7,259		5,673

Other countries	2,938		399
Net revenue	$	34,264	$	24,810


	Nine months ended September 30,
	2024		2023
Canada	$	62,781	$	46,767
Israel	20,565		16,160

Other countries	3,968		399
Net revenue	$	87,314	$	63,326

Property, plant and equipment, net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 299,492	$ 199,238
Less: accumulated depreciation	(28,116)	(30,707)
Less: accumulated impairment charges	(108,860)	(109,063)
Total	162,516	59,468
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	6,656	2,764
Building and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	198,016	168,498
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	70,719	21,322
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,700	3,385
Construction in progress
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 21,401	$ 3,269

Goodwill and Intangible Assets, net - Schedule of Estimated Future Amortization of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2024 (3 months)	$ 360
2025	1,275
2026	719
2027	215
2028	28
2029	24
Thereafter	126
Net	$ 2,747	$ 19,578

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Operating activities
Net loss	$ 7,324	$ (2,484)	$ (1,772)	$ (19,257)	$ (3,919)	$ (29,526)
Adjustments to reconcile net loss to cash used in operating activities:
Share-based compensation					6,513	6,840
Depreciation and amortization					6,811	6,933
Impairment loss on long-lived assets					16,350	205
Impairment loss on other investments	0		0		25,650	0
Loss from investments					4,103	7,103
Changes in expected credit losses on long-term financial assets					1,026	(1,339)
Revaluation of equity method investment	(32,469)		0		(32,469)	0
Revaluation of loan receivable	(11,804)		0		(11,804)	0
Loss on held-for-sale assets	10,422		0		10,422	0
Inventory step-up recorded to cost of sales					7,116	0
Foreign currency transaction gain	7,432		(8,816)		(12,370)	(3,999)
Other non-cash operating activities, net					(11)	(1,904)
Changes in operating assets and liabilities:
Accounts receivable, net					(5,402)	6,976
Interest receivable					(1,018)	(14,601)
Other receivables					1,658	25
Prepaids and other current assets					(1,217)	1,074
Inventory					7,162	976
Accounts payable					(9,102)	(7,595)
Income taxes payable					(9)	(32,728)
Accrued liabilities					1,633	1,910
Cash flows provided by (used in) operating activities					11,123	(59,650)
Investing activities
Purchase of short-term investments					0	(537,186)
Proceeds from short-term investments					187,166	380,765
Cash acquired in business combinations					5,993	0
Dividends received from equity method investment					0	1,301
Dividend proceeds					0	346
Advances on loans receivable					(8,822)	0
Proceeds from repayment on loans receivable					5,290	14,151
Purchase of property, plant and equipment					(8,868)	(1,287)
Purchase of intangible assets					(578)	(344)
Other investing activities					0	862
Cash flows provided by (used in) investing activities					180,181	(141,392)
Financing activities
Withholding taxes paid on share-based awards					(918)	(812)
Cash flows used in financing activities					(918)	(812)
Effect of foreign currency translation on cash and cash equivalents					2,357	8,866
Net change in cash and cash equivalents					192,743	(192,988)
Cash and cash equivalents, beginning of period		$ 669,291		$ 764,644	669,291	764,644	$ 764,644
Cash and cash equivalents, end of period	$ 862,034		$ 571,656		862,034	571,656	$ 669,291
Supplemental cash flow information
Interest paid					0	0
Interest received					38,965	22,203
Income taxes paid					$ 621	$ 33,013

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 8,349	$ (1,644)	$ (2,649)	$ (29,173)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Property, plant and equipment, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Property, Plant and Equipment [Line Items]
Depreciation expense included in operating expenses	$ 2,552	$ 1,158	$ 3,861	$ 3,766
Realignment
Property, Plant and Equipment [Line Items]
Impairment loss on long-lived assets			$ 1,631
Realignment \| Disposal Group, Held-for-sale, Not Discontinued Operations \| Cronos Fermentation
Property, Plant and Equipment [Line Items]
Current assets of discontinued operations					$ 19,398

Income (Loss) per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Income (Loss) per Share

Basic and diluted income (loss) per share from continuing and discontinued operations are calculated as follows (in thousands, except share and per share amounts):


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Basic income (loss) per share computation
Net income (loss) from continuing operations attributable to the shareholders of Cronos Group	$	8,349	$	(1,462)	$	(2,649)	$	(24,935)
Weighted-average number of common shares outstanding for computation for basic income (loss) per share	382,285,589		381,100,005		381,963,097		380,900,334
Basic income (loss) from continuing operations per share	$	0.02	$	(0.00)	$	(0.01)	$	(0.07)


Loss from discontinued operations attributable to the shareholders of Cronos Group	$	—	$	(182)	$	—	$	(4,238)
Weighted-average number of common shares outstanding for computation of basic loss from discontinued operations per share	382,285,589		381,100,005		381,963,097		380,900,334
Basic loss from discontinued operations per share	$	—	$	(0.00)	$	—	$	(0.01)


Diluted income (loss) per share computation
Net income (loss) from continuing operations attributable to the shareholders of Cronos Group	$	8,349	$	(1,462)	$	(2,649)	$	(24,935)



Weighted-average number of common shares outstanding used in the computation of basic income (loss) per share	382,285,589		381,100,005		381,963,097		380,900,334


Dilutive effect of RSUs	3,408,093		—		—		—

Dilutive effect of Top-up Rights – market price	290,725		—		—		—
Weighted-average number of common shares for computation of diluted income (loss) from continuing operations per share(i)	385,984,407		381,100,005		381,963,097		380,900,334
Diluted income (loss) from continuing operations per share	$	0.02	$	(0.00)	$	(0.01)	$	(0.07)

Loss from discontinued operations attributable to the shareholders of Cronos Group	$	—	$	(182)	$	—	$	(4,238)
Weighted-average number of common shares for computation of diluted loss from discontinued operations per share	385,984,407		381,100,005		381,963,097		380,900,334
Diluted loss from discontinued operations per share	$	0.00	$	(0.00)	$	0.00	$	(0.01)

(i)In computing diluted loss per share, incremental common shares are not considered in periods in which a net loss is reported as the inclusion of the common share equivalents would be anti-dilutive.

Share-based Compensation - Summary of Changes in RSUs (Details) - Restricted share units - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Weighted-average grant date fair value
Balance at beginning of period (in dollars per share)	$ 3.77	$ 4.63
Granted (in dollars per share)	2.95	2.65
Vested and issued (in dollars per share)	3.51	5.13
Cancellation and forfeitures (in dollars per share)	2.99	3.65
Balance at end of period (in dollars per share)	$ 3.53	$ 3.86
Number of awards
Balance at beginning of period (in shares)	7,381,541	5,725,470
Granted (in shares)	2,503,835	2,883,500
Vested and issued (in shares)	(1,364,864)	(764,056)
Cancellation and forfeitures (in shares)	(125,616)	(510,342)
Balance at end of period (in shares)	8,394,896	7,334,572
Vesting period	3 years
Minimum
Number of awards
Cliff period	3 years
Maximum
Number of awards
Cliff period	5 years

Share-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 2,262	$ 1,957	$ 6,513	$ 6,823
Stock options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	34	35	101	1,141
RSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 2,228	$ 1,922	$ 6,412	$ 5,682

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Loss Contingency [Abstract]
Commitments and Contingencies	Commitments and Contingencies (a)Commitments There have been no material changes in the information regarding commitments as disclosed in the Company’s Annual Report. (b)Contingencies The Company is subject to various legal proceedings in the ordinary course of its business and in connection with its marketing, distribution and sale of its products. Many of these legal proceedings are in the early stages of litigation and seek damages that are unspecified or not quantified. Although the outcome of these matters cannot be predicted with certainty, the Company does not believe these legal proceedings, individually or in the aggregate, will have a material adverse effect on its financial condition but could be material to its results of operations for a quarterly period depending, in part, on its results for that quarter. (i)Class action complaints relating to restatement of 2019 interim financial statements On March 11 and 12, 2020, two alleged shareholders of the Company separately filed two putative class action complaints in the U.S. District Court for the Eastern District of New York against the Company and its Chief Executive Officer and former Chief Financial Officer. The court consolidated the cases, and the consolidated amended complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5, promulgated thereunder, against all defendants, and Section 20(a) of the Exchange Act against the individual defendants. The consolidated amended complaint generally alleges that certain of the Company’s prior public statements about revenue and internal controls were incorrect based on the Company’s disclosures relating to the Audit Committee of the Board of Directors’ review of the appropriateness of revenue recognized in connection with certain bulk resin purchases and sales of products through the wholesale channel. The consolidated amended complaint does not quantify a damage request. The defendants moved to dismiss on February 8, 2021. On November 17, 2023, the court entered an order granting the motion and dismissed the case with prejudice. On December 1, 2023, the shareholder plaintiffs sought reconsideration of the dismissal, requesting that the court instead dismiss the action without prejudice and permit the plaintiffs to seek leave to further amend the complaint. The reconsideration motion is pending. On June 3, 2020, an alleged shareholder filed a Statement of Claim, as amended on August 12, 2020, in the Ontario Superior Court of Justice in Toronto, Ontario, Canada, seeking, among other things, an order certifying the action as a class action on behalf of a putative class of shareholders and damages of an unspecified amount. The Amended Statement of Claim named (i) the Company, (ii) its Chief Executive Officer, (iii) former Chief Financial Officer, (iv) former Chief Financial Officer and Chief Commercial Officer, and (v) current and former members of the Board as defendants and alleged breaches of the Ontario Securities Act, oppression under the Ontario Business Corporations Act and common law misrepresentation. The Amended Statement of Claim generally alleged that certain of the Company’s prior public statements about revenue and internal controls were misrepresentations based on the Company’s March 2, 2020 disclosure that the Audit Committee of the Board of Directors was conducting a review of the appropriateness of revenue recognized in connection with certain bulk resin purchases and sales of products through the wholesale channel, and the Company’s subsequent restatement. The Amended Statement of Claim did not quantify a damage request. On June 28, 2021, the Court dismissed motions brought by the plaintiff for leave to commence a claim for misrepresentation under the Ontario Securities Act and for certification of the action as a class action. The plaintiff appealed the Court’s dismissal of the motions only with respect to the Company, the Chief Executive Officer, and the now former Chief Financial Officer; the remaining defendants were dismissed from the matter with prejudice and the Company and all individual defendants agreed not to seek costs from plaintiff in connection with the dismissal of the motions. On September 26, 2022, the Court of Appeal for Ontario reversed the Superior Court’s dismissal of the leave and certification motions, granted the plaintiff leave to proceed to bring a claim for misrepresentation under the Ontario Securities Act, and remitted the certification motion back to the Superior Court. On April 11, 2023, the plaintiff filed a Fresh as Amended Statement of Claim, which reflected the dismissal of the defendants for which an appeal was not sought, the removal of the claims for oppression under the Ontario Business Corporations Act and common law misrepresentation, as well as shortening the proposed class period. On October 10, 2023, the Superior Court certified the action on behalf of a class of persons or entities who acquired shares in the secondary market, including on the TSX and Nasdaq, during the period from May 9, 2019 to March 30, 2020, other than certain excluded persons. (ii)Regulatory reviews relating to restatements On October 24, 2022, the Company announced regulatory settlements as follows: SEC Settlement On October 24, 2022, the SEC issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8(a) of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21(c) of the Exchange Act, Making Findings, and Imposing a Cease-and-Desist Order (the “Settlement Order”) resolving the Restatements. The Company agreed to settle with the SEC, without admitting or denying the allegations described in the Settlement Order. The Settlement Order fully and finally disposed of the investigation of the Company by the SEC into the Restatements without the payment of any civil penalty or other amount. The Settlement Order required the Company to cease and desist from committing or causing any violations and any future violations of Section 17(a) of the Securities Act, Sections 10(b), 13(a), 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 13a-13, 13a-15(a), 13a-16 and 12b-20 thereunder. As a result of the Settlement Order, the Company (i) lost its status as a well-known seasoned issuer for a period of three years, (ii) is unable to rely on the private offering exemptions provided by Regulations A and D under the Securities Act for a period of five years and (iii) is unable to rely on the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 for a period of three years. OSC Settlement On October 24, 2022, the Ontario Capital Markets Tribunal approved a settlement agreement (the “Settlement Agreement”) between the Company and the staff of the Ontario Securities Commission (the “OSC”), resolving the Restatements. Pursuant to the terms of the Settlement Agreement, which fully and finally disposed the investigation of the Company by the OSC, Cronos agreed to pay a total of C$1.34 million to fully settle the matter, and acknowledged that it had failed to comply with the requirement under Section 77 of the Ontario Securities Act to file interim financial reports in the manner set out therein and had acted in a manner contrary to the public interest. (iii)Litigation and regulatory inquiries relating to marketing, distribution, import and sale of products On April 17, 2023, a group of plaintiffs led by the Green Leaf (Ale Yarok) political party filed a Statement of Claim and Request for Approval of a Class Action on behalf of a purported class of Israeli cannabis consumers in the District Court of Tel Aviv, Israel, against 26 cannabis-related parties, including three Cronos Israel entities. The Statement of Claim alleges that the defendants violated certain laws relating to the marketing of medical cannabis products, including marketing to unlicensed cannabis consumers. The lawsuit seeks a total of ILS 420 million. The Cronos Israel defendants moved to dismiss the action on August 13, 2023. The court granted the motion (and similar motions filed by other defendants) on May 16, 2024, dismissing the plaintiffs’ petition for class certification without prejudice and their individual claims with prejudice, and ordering the plaintiffs to pay ILS 10 thousand to each of the defendants for costs. On July 14, 2024, the plaintiffs appealed to the Supreme Court of Israel seeking to overturn both the dismissal of plaintiffs’ individual claims and the award of costs. The appeal is pending. On January 18, 2024, the Company was notified that the Trade Levies Commissioner of the Israel Ministry of Economy and Industry initiated a public investigation of alleged dumping of medical cannabis imports from Canada into Israel. On July 9, 2024, the Commissioner announced a preliminary determination proposing to impose an anti-dumping duty on Canadian licensed producers. Under the proposal, the Company would have been subject to a proposed duty of 369%. The Commissioner determined not to impose a provisional duty at that time pending the conclusion of the Ministry’s investigation. The Company responded to requests for information from the Ministry. On July 25, 2024, a group of cannabis cultivators filed an administrative petition in the District Court of Jerusalem, Israel against the Trade Levies Commissioner and certain Israeli and Canadian businesses. The administrative petition seeks a court order requiring the Trade Levies Commissioner to impose a temporary duty on cannabis imported from Canada during the pendency of the investigation until the date on which a final determination is made by the Ministry whether to impose a duty. On September 9, 2024, the Company filed a motion to join the litigation; the court granted the Company’s motion on September 23, 2024. On November 10, 2024, the Trade Levies Commissioner published final findings under which the Company would be subject to a proposed duty of 175%. A provisional duty is not being imposed at this time. The Commissioner’s findings will now be evaluated by an ad hoc advisory committee, which is expected to make recommendations to the Ministers of Economy and Finance and the Finance Committee of the Knesset of whether to impose a duty. The Company cannot predict the outcome of the ad hoc committee’s review or the determinations of the Ministers of Economy or Finance, or the Finance Committee of the Knesset. We expect litigation and regulatory proceedings relating to the marketing, distribution, import and sale of our products to increase.

- Definition

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 720
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147483359/720-20-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Business Combination - Supplemental Proforma Results (Details) - Cronos Growing Company Inc. - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Business Acquisition [Line Items]
Net revenue	$ 34,264	$ 31,249	$ 94,788	$ 76,258
Gross profit	(3,540)	3,686	14,124	(881)
Operating expenses	37,266	27,036	82,715	77,107
Other income	(6,002)	17,416	8,892	74,788
Net income (loss) attributable to Cronos Group	$ (29,447)	$ (3,914)	$ (39,578)	$ (10,786)

Share-based Compensation - Stock Options Narrative (Details) - Stock options	9 Months Ended
	Sep. 30, 2024
2020 Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
2018 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 35
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Goodwill and Intangible Assets, net

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, net

(a) Goodwill

As a result of the Cronos GrowCo Transaction, the Company preliminarily recorded goodwill of $36,421, none of which is deductible for income tax purposes. The goodwill recognized was primarily attributable to the ability to secure a long-term supply of cannabis and to take advantage of growth opportunities from the expansion of Cronos GrowCo’s cultivation and processing facilities. See Note 2 “Business Combination” for additional information.

Goodwill is comprised of the following items as of September 30, 2024 and December 31, 2023:


	September 30, 2024
	Cost		Accumulated impairment charges		Net
Peace Naturals	$	1,035	$	—	$	1,035
Cronos GrowCo	36,993		—		36,993
	$	38,028	$	—	$	38,028


	As of December 31, 2023
	Cost		Accumulated impairment charges		Net
Peace Naturals	$	1,057	$	—	$	1,057
	$	1,057	$	—	$	1,057

(b) Intangible assets, net

In the third quarter of 2024, the Company determined that it was no longer utilizing and had no current plans to utilize the intellectual property associated with its exclusive licenses with Ginkgo Bioworks Holdings, Inc. (“Ginkgo”). As a result, the remaining net book value of $14,258 was impaired and recorded to impairment loss on long-lived assets on the condensed consolidated statements of income (loss) and comprehensive income (loss) in both the three and nine months ended September 30, 2024.

Intangible assets, net are comprised of the following items as of September 30, 2024 and December 31, 2023:


	Useful life (in years)	As of September 30, 2024
		Cost		Accumulated amortization		Accumulated impairment charges		Net
Software	5	$	7,156	$	(4,538)	$	(76)	$	2,542
Health Canada licenses	17	8,287		(1,775)		(6,512)		—
Ginkgo exclusive licenses	10	27,736		(5,655)		(22,081)		—
Israeli codes(i)	20	276		(71)		—		205
Total definite-lived intangible assets		43,455		(12,039)		(28,669)		2,747
Lord Jones® brand	N/A	64,000		—		(62,500)		1,500
Trademarks	N/A	142		—		(142)		—
Total intangible assets		$	107,597	$	(12,039)	$	(91,311)	$	4,247


	Useful life (in years)	As of December 31, 2023
		Cost		Accumulated amortization		Accumulated impairment charges		Net
Software	5	$	6,860	$	(3,508)	$	(78)	$	3,274
Health Canada licenses	17	8,463		(1,813)		(6,650)		—
Ginkgo exclusive licenses	10	28,326		(4,276)		(7,968)		16,082
Israeli codes(i)	20	284		(62)		—		222
Total definite-lived intangible assets		43,933		(9,659)		(14,696)		19,578
Lord Jones® brand	N/A	64,000		—		(62,500)		1,500
Trademarks	N/A	142		—		(142)		—
Total intangible assets		$	108,075	$	(9,659)	$	(77,338)	$	21,078

(i)The Israeli codes were transferred by non-controlling interests to Cronos Israel in exchange for their equity interests in the Cronos Israel entities.

As of September 30, 2024, the estimated future amortization of definite-lived intangible assets is as follows:


	As of September 30, 2024
Remainder of 2024 (3 months)	$	360
2025	1,275
2026	719
2027	215
2028	28
2029	24
Thereafter	126
	$	2,747

Impairment of Intangible Assets

Accumulated impairment charges on intangible assets, net consist of:


	As of December 31, 2023		Impairment charges		Foreign exchange effect		As of September 30, 2024
Software	$	(78)	$	—	$	2	$	(76)
Health Canada licenses	(6,650)		—		138		(6,512)
Ginkgo exclusive license	(7,968)		(14,258)		145		(22,081)
Lord Jones® brand	(62,500)		—		—		(62,500)
Trademarks	(142)		—		—		(142)
	$	(77,338)	$	(14,258)	$	285	$	(91,311)


	As of December 31, 2022		Impairment charges		Foreign exchange effect		As of December 31, 2023
Software	$	(76)	$	—	$	(2)	$	(78)
Health Canada licenses	(6,498)		—		(152)		(6,650)
Ginkgo exclusive license	(4,434)		(3,366)		(168)		(7,968)
Lord Jones® brand	(62,500)		—		—		(62,500)
Trademarks	(142)		—		—		(142)
	$	(73,650)	$	(3,366)	$	(322)	$	(77,338)

Loans Receivable, net - Schedule of Expected Credit Loss Allowances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 12,434	$ 12,168	$ 11,789	$ 13,066
Increase (decrease)	(11,799)	(193)	(10,778)	(1,339)
Foreign exchange effect	(23)	(299)	(399)	(51)
Ending balance	612	11,676	612	11,676
Gain on revaluation of loan receivable	11,804	0	11,804	0
General and Administrative Expense
Allowance for Loan and Lease Losses [Roll Forward]
Increase (decrease)	5		1,026
Cronos Growing Company Inc.
Allowance for Loan and Lease Losses [Roll Forward]
Gain on revaluation of loan receivable	11,804		11,804
GrowCo Credit Facility \| Loans Receivable
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	11,838	11,579	11,176	12,455
Increase (decrease)	(11,804)	(199)	(10,794)	(1,348)
Foreign exchange effect	(34)	(283)	(382)	(10)
Ending balance	0	11,097	0	11,097
Mucci Promissory Note \| Loans Receivable
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	90	86	89	89
Increase (decrease)	1	2	4	(3)
Foreign exchange effect	1	(2)	(1)	0
Ending balance	92	86	92	86
Cannasoul Collaboration Loan \| Loans Receivable
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	506	503	524	522
Increase (decrease)	4	4	12	12
Foreign exchange effect	10	(14)	(16)	(41)
Ending balance	$ 520	$ 493	$ 520	$ 493

Property, plant and equipment, net (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following:


	As of
		September 30, 2024		December 31, 2023
Cost
Land		$	6,656		$	2,764
Building and leasehold improvements		198,016			168,498
Machinery and Equipment		70,719			21,322
Furniture and fixtures		2,700			3,385
Construction in progress		21,401			3,269
Total Cost		299,492			199,238
Less: accumulated depreciation		(28,116)			(30,707)
Less: accumulated impairment charges		(108,860)			(109,063)
Total		$	162,516		$	59,468

The following table presents details of the property, plant and equipment acquired on July 1, 2024, in the Cronos GrowCo Transaction by major category:


	Fair value at date of Cronos GrowCo Transaction
Land	$	4,557
Building and leasehold improvements	49,356
Machinery and Equipment	53,573
Furniture and fixtures	580
Construction in progress	11,534
Total	$	119,600

Inventory, net (Tables)

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory, net

Inventory, net is comprised of the following items:


	As of September 30, 2024		As of December 31, 2023
Raw materials	$	5,133	$	4,795
Work-in-progress	27,470		10,593
Finished goods	14,387		14,819
Supplies and consumables	260		288
Total	$	47,250	$	30,495

Discontinued Operations

9 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

In the second quarter of 2023, the Company exited its then-existing U.S. hemp-derived cannabinoid product operations. Accordingly, the net loss of the U.S. operations for the three and nine months ended September 30, 2023 are reported separately as loss from discontinued operations on the condensed consolidated statements of net income (loss) and comprehensive income (loss). There was no activity in discontinued operations for the three and nine months ended September 30, 2024.

The following table presents the major components comprising loss from discontinued operations in the condensed consolidated statements of operations for the three and nine months ended September 30, 2023:


	Three months ended September 30,			Nine months ended September 30,
		2023
Net revenue		$	—		$	1,029
Cost of sales		—			2,044
Inventory write-down(i)		—			839
Gross profit		—			(1,854)
Operating expenses
Sales and marketing		—			518
Research and development		—			20
General and administrative		190			926
Restructuring costs		28			562
Share-based compensation		(4)			17
Depreciation and amortization		—			13

Impairment loss on long-lived assets(ii)		—			205
Total operating expenses		214			2,261
Interest income		1			9
Other, net(iii)		31			(132)
Total other income (loss)		32			(123)
Loss before income taxes		(182)			(4,238)
Income tax expense (benefit)		—			—
Net loss from discontinued operations		$	(182)		$	(4,238)

(i)For the nine months ended September 30, 2023, Inventory write-down relates to the disposal of obsolete inventory as a result of the exit of the U.S. operations.

(ii)During the nine months ended September 30, 2023, as a result of the exit of the U.S. operations, the Company recognized an impairment charge of $205 related to the right-of-use lease assets associated with the Company’s former U.S. manufacturing facility in Los Angeles, California.

(iii)For the three and nine months ended September 30, 2023, Other, net related to loss on disposal of assets that were part of the U.S. operations.

The following tables present the Company’s discontinued operations revenue by major product category:


	Three months ended September 30,		Nine months ended September 30,
	2023
Cannabis extracts	—		1,029
Net revenue	$	—	$	1,029

The following tables summarize the Company’s discontinued operations restructuring activity for the three and nine months ended September 30, 2023:


	Accrual as of June 30, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	219	$	28	$	(169)	$	78

Other Restructuring Costs	92		—		(92)		—
Total	$	311	$	28	$	(261)	$	78


	Accrual as of December 31, 2022		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	—	$	470	$	(392)	$	78

Other Restructuring Costs	—		92		(92)		—
Total	$	—	$	562	$	(484)	$	78

The Company had no assets or liabilities presented in the condensed consolidated balance sheets related to its discontinued operations as of both September 30, 2024 and December 31, 2023.

For the nine months ended September 30, 2024, there were no purchases of property plant and equipment related to discontinued operations. For the nine months ended September 30, 2023, purchases of property plant and equipment related to discontinued operations were $67.

Discontinued Operations - Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Reserve [Roll Forward]
Expenses	$ 0	$ 1,423	$ 630	$ 1,423
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment
Restructuring Reserve [Roll Forward]
Accrual, Beginning Balance		311		0
Expenses		28		562
Payments/Write-offs		(261)		(484)
Accrual, Ending Balance		78		78
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment \| Employee termination benefits
Restructuring Reserve [Roll Forward]
Accrual, Beginning Balance		219		0
Expenses		28		470
Payments/Write-offs		(169)		(392)
Accrual, Ending Balance		78		78
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment \| Other restructuring costs
Restructuring Reserve [Roll Forward]
Accrual, Beginning Balance		92		0
Expenses		0		92
Payments/Write-offs		(92)		(92)
Accrual, Ending Balance		$ 0		$ 0

Goodwill and Intangible Assets, net - Impairment Charges on Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Finite-lived Intangible Assets [Roll Forward]
Beginning balance		$ (14,696)
Ending balance	$ (28,669)	(28,669)	$ (14,696)
Intangible Assets [Roll Forward]
Beginning balance		(77,338)	(73,650)
Impairment charges		(14,258)	(3,366)
Foreign exchange effect		285	(322)
Ending balance	(91,311)	(91,311)	(77,338)
Lord Jones brand
Indefinite-Lived Intangible Assets [Roll Forward]
Beginning balance		(62,500)	(62,500)
Impairment charges		0	0
Ending balance	(62,500)	(62,500)	(62,500)
Trademarks
Indefinite-Lived Intangible Assets [Roll Forward]
Beginning balance		(142)	(142)
Impairment charges		0	0
Ending balance	(142)	(142)	(142)
Software
Finite-lived Intangible Assets [Roll Forward]
Beginning balance		(78)	(76)
Impairment charges		0	0
Foreign exchange effect		2	(2)
Ending balance	(76)	(76)	(78)
Health Canada licenses
Finite-lived Intangible Assets [Roll Forward]
Beginning balance		(6,650)	(6,498)
Impairment charges		0	0
Foreign exchange effect		138	(152)
Ending balance	(6,512)	(6,512)	(6,650)
Ginkgo exclusive licenses
Finite-lived Intangible Assets [Roll Forward]
Beginning balance		(7,968)	(4,434)
Impairment charges	(14,258)	(14,258)	(3,366)
Foreign exchange effect		145	(168)
Ending balance	$ (22,081)	$ (22,081)	$ (7,968)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets Measured on Recurring Basis

The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis:


	September 30, 2024
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	862,034	$	—	$	—	$	862,034

Other investments(i)	2,900		—		—		2,900
Derivative liabilities	—		—		192		192


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	669,291	$	—	$	—	$	669,291
Short-term investments	192,237		—		—		192,237
Other investments(i)	9,601		—		—		9,601
Derivative liabilities	—		—		102		102

(i)As of September 30, 2024 and December 31, 2023, the Company’s influence on Vitura is deemed non-significant and the investment is considered an equity security with a readily determinable fair value. See Note 5 “Investments” for additional information.

Schedule of Fair Value of Assets Measured on Nonrecurring Basis

The following tables present information about the Company’s assets that are measured at fair value on a non-recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:


	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Other investments(i)	$	—	$	—	$	25,650	$	25,650

(i)On June 14, 2021, the Company purchased an option to acquire 473,787 shares of Class A Common Stock of PharmaCann, a vertically integrated cannabis company in the United States, at an exercise price of $0.0001 per share, representing approximately 10.5% of PharmaCann’s issued and outstanding capital stock on a fully diluted basis as of the date of the PharmaCann Option, for an aggregate purchase price of approximately $110,392. As of September 30, 2024 and December 31, 2023, based on updated information provided by PharmaCann in the first quarter, the Company’s ownership percentage in PharmaCann on a fully diluted basis was approximately 5.8% and 6.6%. In the second quarter of, 2024, the PharmaCann Option was impaired to zero. See Note 5 “Investments.”

Discontinued Operations - Major Components Comprising Loss from Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Operating expenses
Net loss from discontinued operations	$ 0	$ (182)	$ 0	$ (4,238)
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue		0		1,029
Cost of sales		0		2,044
Inventory write-down		0		839
Gross profit		0		(1,854)
Operating expenses
Sales and marketing		0		518
Research and development		0		20
General and administrative		190		926
Restructuring costs		28		562
Share-based compensation		(4)		17
Depreciation and amortization		0		13
Impairment loss on long-lived assets		0		205
Total operating expenses		214		2,261
Interest income		1		9
Other, net		31		(132)
Total other income (loss)		32		(123)
Loss before income taxes		(182)		(4,238)
Income tax expense (benefit)		0		0
Net loss from discontinued operations		$ (182)		(4,238)
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment \| Facility in Los Angeles, California
Operating expenses
Impairment loss on long-lived assets				$ 205

Investments (Tables)

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Investments in Associates and Joint Ventures

A reconciliation of the carrying amount of the investments in equity method investees, net is as follows:


	Ownership interest	As of September 30, 2024		As of December 31, 2023

Cronos GrowCo(i)	50%	$	—	$	19,488

		$	—	$	19,488

(i)The Company obtained control of Cronos GrowCo on July 1, 2024, and, as a result, the investment in Cronos GrowCo is now accounted for as an intercompany transaction and eliminated upon consolidation from the business combination date onwards.

The following is a summary of the Company’s share of net income from equity investments accounted for under the equity method of accounting:


	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Cronos GrowCo(i)	$	—	$	1,057	$	2,365	$	831

	$	—	$	1,057	$	2,365	$	831

Schedule of Gain on Revaluation of Other Investments

The following table summarizes the Company’s other investments activity:


	As of June 30, 2024		Unrealized loss		Impairment charges		Foreign exchange effect		As of September 30, 2024
PharmaCann	$	—	$	—	$	—	$	—	$	—
Vitura	3,168		(371)		—		103		2,900
	$	3,168	$	(371)	$	—	$	103	$	2,900


	As of December 31, 2023		Unrealized loss		Impairment charges		Foreign exchange effect		As of September 30, 2024
PharmaCann	$	25,650	$	—	$	(25,650)	$	—	$	—
Vitura	9,601		(6,468)		—		(233)		2,900
	$	35,251	$	(6,468)	$	(25,650)	$	(233)	$	2,900


	As of June 30, 2023		Unrealized loss		Impairment charges		Foreign exchange effect		As of September 30, 2023
PharmaCann	$	49,000	$	—	$	—	$	—	$	49,000
Vitura	18,925		(5,204)		—		(578)		13,143
	$	67,925	$	(5,204)	$	—	$	(578)	$	62,143


	As of December 31, 2022		Unrealized loss		Impairment charges		Foreign exchange effect		As of September 30, 2023
PharmaCann	$	49,000	$	—	$	—	$	—	$	49,000
Vitura	21,993		(7,933)		—		(917)		13,143
	$	70,993	$	(7,933)	$	—	$	(917)	$	62,143

Loans Receivable, net

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Loans Receivable, net

Loans receivable, net consists of the following:


	As of September 30, 2024		As of December 31, 2023

GrowCo Credit Facility(i)	$	—	$	5,034
Add: Current portion of Mucci Promissory Note accrued interest	233		507
Total current portion of loans receivable, net	233		5,541
GrowCo Credit Facility(i)	—		53,638
Mucci Promissory Note	14,081		13,379
Cannasoul Collaboration Loan	1,706		1,771
Add: Long-term portion of accrued interest	299		248
Total long-term portion of loans receivable, net	16,086		69,036
Total loans receivable, net(i)	$	16,319	$	74,577

(i)The Company obtained control of Cronos GrowCo on July 1, 2024, and, as a result, the loans receivable from Cronos GrowCo are now accounted for as intercompany transactions and eliminated upon consolidation from the business combination date onwards.

Cronos GrowCo Credit Facility

On August 23, 2019, the Company, as lender, and Cronos GrowCo, as borrower, entered into a senior secured credit agreement for an aggregate principal amount of C$100,000 (the “GrowCo Credit Facility”). The GrowCo Credit Facility is secured by substantially all present and after-acquired personal and real property of Cronos GrowCo. In August 2021, the GrowCo Credit Facility was amended to increase the aggregate principal amount available to C$105,000.

In June 2024, the GrowCo Credit Facility was amended to increase the aggregate principal amount available by C$70,000 by providing a second secured non-revolving credit facility (“Term Loan B”). The funds from Term Loan B will be used to expand Cronos GrowCo’s purpose-built cannabis facility and Term Loan B will mature 10 years after the commencement of sales from the Phase 2 Expansion area. Principal will be repaid under Term Loan B on a quarterly basis after the commencement of sales from the Phase 2 Expansion area. Interest on Term Loan B is payable on a quarterly basis until maturity beginning after the first borrowing under Term Loan B. Prior to July 1, 2024, only C$12,000 of the C$70,000 increased principal availability could be drawn, which Cronos GrowCo drew in full on June 20, 2024.

As of June 30, 2024 and December 31, 2023, Cronos GrowCo had drawn C$116,000 and C$104,000 ($84,833 and $78,532, respectively), respectively from the GrowCo Credit Facility. For the six months ended June 30, 2024, Cronos GrowCo repaid C$3,333 ($2,447) in principal and C$3,862 ($2,835) in interest related to the GrowCo Credit Facility. As of June 30, 2024, Cronos GrowCo had repaid an aggregate C$14,833 ($10,848) and C$24,384 ($17,832) in principal and interest, respectively, under the terms of the GrowCo Credit Facility.

As a result of the Cronos GrowCo Transaction on July 1, 2024, the existing loans receivable under the GrowCo Credit Facility were remeasured at their fair value and effectively settled. We recorded a gain of $11,804 to revaluation gain on loan receivable on the condensed consolidated statements of net income (loss) and comprehensive income (loss) in the three and nine months ended September 30, 2024, from remeasuring our outstanding loans receivable with GrowCo. For more information, see Note 2 “Business Combination.”

Mucci Promissory Note

On June 28, 2019, the Company entered into a promissory note receivable agreement (the “Mucci Promissory Note”) for C$16,350 (approximately $12,089) with the Cronos GrowCo joint venture partner (“Mucci”). The Mucci Promissory Note is secured by a general security agreement covering all the assets of Mucci. On September 30, 2022, the Mucci Promissory Note was amended and restated to increase the interest rate from 3.95% to the Canadian Prime Rate plus 1.25%, change the interest payments from quarterly to annual, and defer Mucci’s initial cash interest payment from September 30, 2022 to July 1, 2023. On June 20, 2024, the Mucci Promissory Note was amended and restated. As a result, interest accrued on the Mucci Promissory Note between July 1, 2023 and July 1, 2024 was capitalized as part of the principal balance. As of July 1, 2024, interest is accrued and to be paid in cash beginning on July 1, 2025.

Prior to July 1, 2022, interest accrued on the Mucci Promissory Note was capitalized as part of the principal balance. As of July 1, 2022, interest was accrued and to be paid in cash beginning on July 1, 2023. Prior to 2023, there were no repayments of principal or interest on the Mucci Promissory Note. For the three and nine months ended September 30, 2023, Mucci made a payment of C$1,750 (approximately $1,322) under the Mucci Promissory Note, with C$1,187 ($897) related to accrued interest and C$563 ($425) related to outstanding principal. For the three and nine months ended September 30, 2024, there were no repayments of principal or interest on the Mucci Promissory Note.

Cannasoul Collaboration Loan

As of both September 30, 2024 and December 31, 2023, Cannasoul Lab Services Ltd. has received ILS 8,297 (approximately $2,175 and $2,294, respectively), from the Cannasoul Collaboration Loan.

Expected credit loss allowances on the Company’s long-term financial assets for the nine months ended September 30, 2024 and 2023 were comprised of the following items:


	As of June 30, 2024		Increase (decrease)(ii)		Foreign exchange effect		As of September 30, 2024
GrowCo Credit Facility(i)	$	11,838	$	(11,804)	$	(34)	$	—

Mucci Promissory Note	90		1		1		92
Cannasoul Collaboration Loan	506		4		10		520
	$	12,434	$	(11,799)	$	(23)	$	612


	As of December 31, 2023		Increase (decrease)(ii)		Foreign exchange effect		As of September 30, 2024
GrowCo Credit Facility(i)	$	11,176	$	(10,794)	$	(382)	$	—

Mucci Promissory Note	89		4		(1)		92
Cannasoul Collaboration Loan	524		12		(16)		520
	$	11,789	$	(10,778)	$	(399)	$	612


	As of June 30, 2023		Increase (decrease)(iii)		Foreign exchange effect		As of September 30, 2023
GrowCo Credit Facility	$	11,579	$	(199)	$	(283)	$	11,097

Mucci Promissory Note	86		2		(2)		86
Cannasoul Collaboration Loan	503		4		(14)		493
	$	12,168	$	(193)	$	(299)	$	11,676


	As of December 31, 2022		Increase (decrease)(iii)		Foreign exchange effect		As of September 30, 2023
GrowCo Credit Facility	$	12,455	$	(1,348)	$	(10)	$	11,097

Mucci Promissory Note	89		(3)		—		86
Cannasoul Collaboration Loan	522		12		(41)		493
	$	13,066	$	(1,339)	$	(51)	$	11,676

(ii)During the three and nine months ended September 30, 2024, $5 and $1,026, respectively, were recorded as increases to general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss) as a result of adjustments to our expected credit losses. During both the three and nine months ended September 30, 2024, $11,804 was recorded as a gain on revaluation of loans receivable on the condensed consolidated statements of net income (loss) and comprehensive income (loss) from remeasuring our outstanding loans receivable with Cronos GrowCo as a result of the Cronos GrowCo Transaction.

(iii)During the three and nine months ended September 30, 2023, $193 and $1,339, respectively, were recorded as decreases to general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss) as a result of adjustments to our expected credit losses.

Goodwill and Intangible Assets, net (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Goodwill is comprised of the following items as of September 30, 2024 and December 31, 2023:


	September 30, 2024
	Cost		Accumulated impairment charges		Net
Peace Naturals	$	1,035	$	—	$	1,035
Cronos GrowCo	36,993		—		36,993
	$	38,028	$	—	$	38,028


	As of December 31, 2023
	Cost		Accumulated impairment charges		Net
Peace Naturals	$	1,057	$	—	$	1,057
	$	1,057	$	—	$	1,057

Schedule of Definite-Lived Intangible Assets

Intangible assets, net are comprised of the following items as of September 30, 2024 and December 31, 2023:


	Useful life (in years)	As of September 30, 2024
		Cost		Accumulated amortization		Accumulated impairment charges		Net
Software	5	$	7,156	$	(4,538)	$	(76)	$	2,542
Health Canada licenses	17	8,287		(1,775)		(6,512)		—
Ginkgo exclusive licenses	10	27,736		(5,655)		(22,081)		—
Israeli codes(i)	20	276		(71)		—		205
Total definite-lived intangible assets		43,455		(12,039)		(28,669)		2,747
Lord Jones® brand	N/A	64,000		—		(62,500)		1,500
Trademarks	N/A	142		—		(142)		—
Total intangible assets		$	107,597	$	(12,039)	$	(91,311)	$	4,247


	Useful life (in years)	As of December 31, 2023
		Cost		Accumulated amortization		Accumulated impairment charges		Net
Software	5	$	6,860	$	(3,508)	$	(78)	$	3,274
Health Canada licenses	17	8,463		(1,813)		(6,650)		—
Ginkgo exclusive licenses	10	28,326		(4,276)		(7,968)		16,082
Israeli codes(i)	20	284		(62)		—		222
Total definite-lived intangible assets		43,933		(9,659)		(14,696)		19,578
Lord Jones® brand	N/A	64,000		—		(62,500)		1,500
Trademarks	N/A	142		—		(142)		—
Total intangible assets		$	108,075	$	(9,659)	$	(77,338)	$	21,078

(i)The Israeli codes were transferred by non-controlling interests to Cronos Israel in exchange for their equity interests in the Cronos Israel entities.

Accumulated impairment charges on intangible assets, net consist of:


	As of December 31, 2023		Impairment charges		Foreign exchange effect		As of September 30, 2024
Software	$	(78)	$	—	$	2	$	(76)
Health Canada licenses	(6,650)		—		138		(6,512)
Ginkgo exclusive license	(7,968)		(14,258)		145		(22,081)
Lord Jones® brand	(62,500)		—		—		(62,500)
Trademarks	(142)		—		—		(142)
	$	(77,338)	$	(14,258)	$	285	$	(91,311)


	As of December 31, 2022		Impairment charges		Foreign exchange effect		As of December 31, 2023
Software	$	(76)	$	—	$	(2)	$	(78)
Health Canada licenses	(6,498)		—		(152)		(6,650)
Ginkgo exclusive license	(4,434)		(3,366)		(168)		(7,968)
Lord Jones® brand	(62,500)		—		—		(62,500)
Trademarks	(142)		—		—		(142)
	$	(73,650)	$	(3,366)	$	(322)	$	(77,338)

Schedule of Indefinite-Lived Intangible Assets

Intangible assets, net are comprised of the following items as of September 30, 2024 and December 31, 2023:


	Useful life (in years)	As of September 30, 2024
		Cost		Accumulated amortization		Accumulated impairment charges		Net
Software	5	$	7,156	$	(4,538)	$	(76)	$	2,542
Health Canada licenses	17	8,287		(1,775)		(6,512)		—
Ginkgo exclusive licenses	10	27,736		(5,655)		(22,081)		—
Israeli codes(i)	20	276		(71)		—		205
Total definite-lived intangible assets		43,455		(12,039)		(28,669)		2,747
Lord Jones® brand	N/A	64,000		—		(62,500)		1,500
Trademarks	N/A	142		—		(142)		—
Total intangible assets		$	107,597	$	(12,039)	$	(91,311)	$	4,247


	Useful life (in years)	As of December 31, 2023
		Cost		Accumulated amortization		Accumulated impairment charges		Net
Software	5	$	6,860	$	(3,508)	$	(78)	$	3,274
Health Canada licenses	17	8,463		(1,813)		(6,650)		—
Ginkgo exclusive licenses	10	28,326		(4,276)		(7,968)		16,082
Israeli codes(i)	20	284		(62)		—		222
Total definite-lived intangible assets		43,933		(9,659)		(14,696)		19,578
Lord Jones® brand	N/A	64,000		—		(62,500)		1,500
Trademarks	N/A	142		—		(142)		—
Total intangible assets		$	108,075	$	(9,659)	$	(77,338)	$	21,078

(i)The Israeli codes were transferred by non-controlling interests to Cronos Israel in exchange for their equity interests in the Cronos Israel entities.

Accumulated impairment charges on intangible assets, net consist of:


	As of December 31, 2023		Impairment charges		Foreign exchange effect		As of September 30, 2024
Software	$	(78)	$	—	$	2	$	(76)
Health Canada licenses	(6,650)		—		138		(6,512)
Ginkgo exclusive license	(7,968)		(14,258)		145		(22,081)
Lord Jones® brand	(62,500)		—		—		(62,500)
Trademarks	(142)		—		—		(142)
	$	(77,338)	$	(14,258)	$	285	$	(91,311)


	As of December 31, 2022		Impairment charges		Foreign exchange effect		As of December 31, 2023
Software	$	(76)	$	—	$	(2)	$	(78)
Health Canada licenses	(6,498)		—		(152)		(6,650)
Ginkgo exclusive license	(4,434)		(3,366)		(168)		(7,968)
Lord Jones® brand	(62,500)		—		—		(62,500)
Trademarks	(142)		—		—		(142)
	$	(73,650)	$	(3,366)	$	(322)	$	(77,338)

Schedule of Estimated Future Amortization of Definite-Lived Intangible Assets

As of September 30, 2024, the estimated future amortization of definite-lived intangible assets is as follows:


	As of September 30, 2024
Remainder of 2024 (3 months)	$	360
2025	1,275
2026	719
2027	215
2028	28
2029	24
Thereafter	126
	$	2,747

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

+ Details

Investments - Schedule of Investments in Associates and Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]
Equity method investments, net	$ 0		$ 0			$ 19,488
Share of income from equity method investments	$ 0	$ 1,057	$ 2,365	$ 831
Cronos GrowCo
Schedule of Equity Method Investments [Line Items]
Ownership interest	50.00%		50.00%
Equity method investments, net	$ 0		$ 0		$ 53,542	$ 19,488
Share of income from equity method investments	$ 0	$ 1,057	$ 2,365	$ 831

- Definition

This item represents the carrying amount on the entity's balance sheet of its investment in common stock of an equity method investee. This is not an indicator of the fair value of the investment, rather it is the initial cost adjusted for the entity's share of earnings and losses of the investee, adjusted for any distributions (dividends) and other than temporary impairment (OTTI) losses recognized.

+ References + Details

- Definition

Amount of income (loss) for proportionate share of equity method investee's income (loss).

+ References + Details

Goodwill and Intangible Assets, net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Cost	$ 43,455	$ 43,933
Accumulated amortization	(12,039)	(9,659)
Accumulated impairment charges	(28,669)	(14,696)
Net	2,747	19,578
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Cost	107,597	108,075
Accumulated amortization	(12,039)	(9,659)
Accumulated impairment charges	(91,311)	(77,338)	$ (73,650)
Net	4,247	21,078
Lord Jones brand
Indefinite-lived Intangible Assets [Line Items]
Cost	64,000	64,000
Accumulated impairment charges	(62,500)	(62,500)	(62,500)
Net	1,500	1,500
Trademarks
Indefinite-lived Intangible Assets [Line Items]
Cost	142	142
Accumulated impairment charges	(142)	(142)	(142)
Net	$ 0	$ 0
Software
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	5 years	5 years
Cost	$ 7,156	$ 6,860
Accumulated amortization	(4,538)	(3,508)
Accumulated impairment charges	(76)	(78)	(76)
Net	2,542	3,274
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	$ (4,538)	$ (3,508)
Health Canada licenses
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	17 years	17 years
Cost	$ 8,287	$ 8,463
Accumulated amortization	(1,775)	(1,813)
Accumulated impairment charges	(6,512)	(6,650)	(6,498)
Net	0	0
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	$ (1,775)	$ (1,813)
Ginkgo exclusive licenses
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	10 years	10 years
Cost	$ 27,736	$ 28,326
Accumulated amortization	(5,655)	(4,276)
Accumulated impairment charges	(22,081)	(7,968)	$ (4,434)
Net	0	16,082
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	$ (5,655)	$ (4,276)
Israeli codes
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	20 years	20 years
Cost	$ 276	$ 284
Accumulated amortization	(71)	(62)
Net	205	222
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	$ (71)	$ (62)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, shares issued (in shares)	382,294,707	381,298,853
Common stock, shares outstanding (in shares)	382,294,707	381,298,853

Loans Receivable, net - Schedule of Loan Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current portion of loans receivable, net	$ 233	$ 5,541
Total long-term portion of loans receivable, net	16,086	69,036
Total loans receivable, net	16,319	74,577
Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Add: Current portion of Mucci Promissory Note accrued interest	233	507
Add: Long-term portion of accrued interest	299	248
Loans Receivable \| GrowCo Credit Facility
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current portion of loans receivable, before accrued interest	0	5,034
Long term portion of loans receivable, before accrued interest	0	53,638
Loans Receivable \| Mucci Promissory Note
Accounts, Notes, Loans and Financing Receivable [Line Items]
Long term portion of loans receivable, before accrued interest	14,081	13,379
Loans Receivable \| Cannasoul Collaboration Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Long term portion of loans receivable, before accrued interest	$ 1,706	$ 1,771

Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net revenue, before excise taxes	$ 46,594	$ 33,912	$ 120,639	$ 86,264
Excise taxes	(12,330)	(9,102)	(33,325)	(22,938)
Net revenue	34,264	24,810	87,314	63,326
Cost of sales	30,341	20,124	72,216	52,614
Inventory write-down	312	716	707	716
Gross profit	3,611	3,970	14,391	9,996
Operating expenses
Sales and marketing	5,528	5,296	15,190	16,334
Research and development	1,242	1,246	3,201	4,392
General and administrative	12,760	14,366	34,434	39,673
Restructuring costs	0	1,423	630	1,423
Share-based compensation	2,262	1,957	6,513	6,823
Depreciation and amortization	1,098	1,457	3,237	4,515
Impairment loss on long-lived assets	14,376	0	16,350	0
Total operating expenses	37,266	25,745	79,555	73,160
Operating loss	(33,655)	(21,775)	(65,164)	(63,164)
Other income
Interest income, net	12,460	13,375	40,156	37,021
Share of income from equity method investments	0	1,057	2,365	831
Gain on revaluation of loan receivable	11,804	0	11,804	0
Gain on revaluation of equity method investment	32,469	0	32,469	0
Loss on revaluation of financial instruments	(293)	(5,291)	(6,550)	(7,856)
Impairment loss on other investments	0	0	(25,650)	0
Foreign currency transaction gain (loss)	(7,432)	8,816	12,370	3,999
Loss on held-for-sale assets	(10,422)	0	(10,422)	0
Other, net	(315)	974	(737)	1,011
Total other income	38,271	18,931	55,805	35,006
Income (loss) before income taxes	4,616	(2,844)	(9,359)	(28,158)
Income tax benefit	(2,708)	(1,254)	(5,440)	(2,870)
Income (loss) from continuing operations	7,324	(1,590)	(3,919)	(25,288)
Loss from discontinued operations	0	(182)	0	(4,238)
Net income (loss)	7,324	(1,772)	(3,919)	(29,526)
Net loss attributable to non-controlling interest	(1,025)	(128)	(1,270)	(353)
Net income (loss) attributable to Cronos Group	8,349	(1,644)	(2,649)	(29,173)
Comprehensive income (loss)
Net income (loss)	7,324	(1,772)	(3,919)	(29,526)
Other comprehensive income (loss)
Foreign exchange gain (loss) on translation	12,408	(20,090)	(20,113)	(1,096)
Comprehensive income (loss)	19,732	(21,862)	(24,032)	(30,622)
Comprehensive loss attributable to non-controlling interests	(269)	(41)	(344)	(136)
Comprehensive income (loss) attributable to Cronos Group	$ 20,001	$ (21,821)	$ (23,688)	$ (30,486)
Net income (loss) per share
Basic - continuing operations (in dollars per share)	$ 0.02	$ 0	$ (0.01)	$ (0.07)
Basic - discontinued operations (in dollars per share)	0	0	0	(0.01)
Basic net income (loss) per share attributable to Cronos Group (in dollars per share)	0.02	0	(0.01)	(0.08)
Diluted - continuing operations (in dollars per share)	0.02	0	(0.01)	(0.07)
Diluted - discontinued operations (in dollars per share)	0	0	0	(0.01)
Diluted net income (loss) per share attributable to Cronos Group (in dollars per share)	$ 0.02	$ 0	$ (0.01)	$ (0.08)

Inventory, net - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Jul. 01, 2024	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023
Inventory [Line Items]
Inventory step-up recorded to cost of sales			$ 7,116	$ 0
Cronos Growing Company Inc.
Inventory [Line Items]
Inventory adjustment	$ 17,908
Inventory step-up recorded to cost of sales		$ 7,116	$ 7,116

Restructuring (Tables)

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Schedule of Plan Information and Restructuring-Related Costs

The following tables summarize the Company’s discontinued operations restructuring activity for the three and nine months ended September 30, 2023:


	Accrual as of June 30, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	219	$	28	$	(169)	$	78

Other Restructuring Costs	92		—		(92)		—
Total	$	311	$	28	$	(261)	$	78


	Accrual as of December 31, 2022		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	—	$	470	$	(392)	$	78

Other Restructuring Costs	—		92		(92)		—
Total	$	—	$	562	$	(484)	$	78

The following table summarizes the Company’s restructuring activity for the three and nine months ended September 30, 2024:


	Accrual as of June 30, 2024		Expenses		Payments/Write-offs		Accrual as of September 30, 2024
Employee Termination Benefits	$	24	$	—	$	(24)	$	—

Other Restructuring Costs	547		—		(547)		—
Total	$	571	$	—	$	(571)	$	—


	Accrual as of December 31, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2024
Employee Termination Benefits	$	150	$	62	$	(212)	$	—

Other Restructuring Costs	—		568		(568)		—
Total	$	150	$	630	$	(780)	$	—


	Accrual as of June 30, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	61	$	1,420	$	(947)	$	534

Other Restructuring Costs	—		3		(3)		—
Total	$	61	$	1,423	$	(950)	$	534


	Accrual as of December 31, 2022		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	403	$	1,420	$	(1,289)	$	534

Other Restructuring Costs	21		3		(24)		—
Total	$	424	$	1,423	$	(1,313)	$	534

Restructuring - Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Reserve [Roll Forward]
Expenses	$ 0	$ 1,423	$ 630	$ 1,423
Realignment
Restructuring Reserve [Roll Forward]
Accrual, Beginning Balance	571	61	150	424
Expenses	0	1,423	630	1,423
Payments/Write-offs	(571)	(950)	(780)	(1,313)
Accrual, Ending Balance	0	534	0	534
Employee termination benefits \| Realignment
Restructuring Reserve [Roll Forward]
Accrual, Beginning Balance	24	61	150	403
Expenses	0	1,420	62	1,420
Payments/Write-offs	(24)	(947)	(212)	(1,289)
Accrual, Ending Balance	0	534	0	534
Other restructuring costs \| Realignment
Restructuring Reserve [Roll Forward]
Accrual, Beginning Balance	547	0	0	21
Expenses	0	3	568	3
Payments/Write-offs	(547)	(3)	(568)	(24)
Accrual, Ending Balance	$ 0	$ 0	$ 0	$ 0

Background, Basis of Presentation, and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Net revenue	$ 34,264	$ 24,810	$ 87,314	$ 63,326
Canada
Segment Reporting Information [Line Items]
Net revenue	24,067	18,738	62,781	46,767
Israel
Segment Reporting Information [Line Items]
Net revenue	7,259	5,673	20,565	16,160
Other countries
Segment Reporting Information [Line Items]
Net revenue	2,938	399	3,968	399
Cannabis flower
Segment Reporting Information [Line Items]
Net revenue	26,328	17,414	64,514	44,556
Cannabis extracts
Segment Reporting Information [Line Items]
Net revenue	7,789	7,268	22,580	18,495
Other
Segment Reporting Information [Line Items]
Net revenue	$ 147	$ 128	$ 220	$ 275

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479941/924-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
-Paragraph 5
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic income (loss) per share computation
Net income (loss) from continuing operations attributable to the shareholders of Cronos Group	$ 8,349	$ (1,462)	$ (2,649)	$ (24,935)
Weighted-average number of common shares outstanding for computation for basic income (loss) per share (in shares)	382,285,589	381,100,005	381,963,097	380,900,334
Basic income (loss) from continuing operations per share (in dollars per share)	$ 0.02	$ 0	$ (0.01)	$ (0.07)
Loss from discontinued operations attributable to the shareholders of Cronos Group	$ 0	$ (182)	$ 0	$ (4,238)
Basic loss from discontinued operations per share (in dollars per share)	$ 0	$ 0	$ 0	$ (0.01)
Diluted income (loss) per share computation
Net income (loss) from continuing operations attributable to the shareholders of Cronos Group	$ 8,349	$ (1,462)	$ (2,649)	$ (24,935)
Weighted-average number of common shares outstanding for computation for basic income (loss) per share (in shares)	382,285,589	381,100,005	381,963,097	380,900,334
Dilutive effect of RSUs (in shares)	3,408,093	0	0	0
Dilutive effect of Top-up Rights – market price (in shares)	290,725	0	0	0
Weighted-average number of common shares for computation of diluted income (loss) from continuing and discontinuing operations per share (in shares)	385,984,407	381,100,005	381,963,097	380,900,334
Diluted income (loss) from continuing operations per share (in dollars per share)	$ 0.02	$ 0	$ (0.01)	$ (0.07)
Loss from discontinued operations attributable to the shareholders of Cronos Group	$ 0	$ (182)	$ 0	$ (4,238)
Weighted-average number of common shares for computation of diluted loss from discontinued operations per share (in dollars per share)	385,984,407	381,100,005	381,963,097	380,900,334
Diluted loss from discontinued operations per share (in dollars per share)	$ 0	$ 0	$ 0	$ (0.01)
Total anti-dilutive securities (in shares)	15,065,666	23,340,811	20,926,402	27,399,000

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jul. 01, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Accounts payable	$ 6,532		$ 6,532			$ 12,130
Cronos Growing Company Inc.
Related Party Transaction [Line Items]
Accounts payable					$ 2,913
Manufacturing Services \| Immediate Family Member of Management or Principal Owner
Related Party Transaction [Line Items]
Purchases		$ 406		$ 1,842
Accounts payable	0		0			28
Manufacturing Services \| Related Party
Related Party Transaction [Line Items]
Purchases	410		1,346
Accounts payable	82		82			$ 11
Consulting Arrangement
Related Party Transaction [Line Items]
Transaction amount	220		220
Consulting Arrangement \| Related Party
Related Party Transaction [Line Items]
Accounts payable	665		665
Consulting Arrangement \| Related Party \| Cronos Growing Company Inc.
Related Party Transaction [Line Items]
Accounts payable	$ 444		$ 444

Investments - Revaluation of Other Investments (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other Investments [Roll Forward]
Other investments, beginning balance	$ 3,168		$ 35,251	$ 67,925	$ 35,251	$ 70,993
Unrealized loss	(371)			(5,204)	(6,468)	(7,933)
Impairment charges	0			0	(25,650)	0
Foreign exchange effect	103			(578)	(233)	(917)
Other investments, ending balance	2,900	$ 3,168		62,143	2,900	62,143
PharmaCann
Other Investments [Roll Forward]
Other investments, beginning balance	0		25,650	49,000	25,650	49,000
Unrealized loss	0			0	0	0
Impairment charges	0	(12,916)	(12,734)	0	(25,650)	0
Foreign exchange effect	0			0	0	0
Other investments, ending balance	0	0		49,000	0	49,000
Vitura
Other Investments [Roll Forward]
Other investments, beginning balance	3,168		$ 9,601	18,925	9,601	21,993
Unrealized loss	(371)			(5,204)	(6,468)	(7,933)
Impairment charges	0			0	0	0
Foreign exchange effect	103			(578)	(233)	(917)
Other investments, ending balance	$ 2,900	$ 3,168		$ 13,143	$ 2,900	$ 13,143

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2024	Nov. 07, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-38403
Entity Registrant Name	CRONOS GROUP INC.
Entity Incorporation, State or Country Code	Z4
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	4491 Concession Rd 12
Entity Address, City or Town	Stayner
Entity Address, State or Province	ON
Entity Address, Postal Zip Code	L0M 1S0
City Area Code	416
Local Phone Number	504-0004
Title of 12(b) Security	Common Shares, no par value
Trading Symbol	CRON
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		382,294,707
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001656472
Current Fiscal Year End Date	--12-31

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions (a)Vendor Agreement In November 2022, the Company entered into an agreement with an external vendor whereby the vendor would provide certain manufacturing services to the Company. The vendor then subcontracted out a portion of those services to another company whose chief executive officer is an immediate family member of an executive of the Company. The Company purchased $406 and $1,842 of products and services under this subcontracted agreement for the three and nine months ended September 30, 2023. The Company had $0 and $28 in outstanding payables related to the subcontracted agreement as of September 30, 2024 and December 31, 2023, respectively. In November 2023, the Company negotiated a direct contract with the related-party vendor. During the three and nine months ended September 30, 2024, the Company purchased $410 and $1,346 of products and services under this agreement and had outstanding accounts payable related to the agreement of $82 and $11 as of September 30, 2024 and December 31, 2023, respectively. (b)Consulting Agreement In connection with the Cronos GrowCo Transaction, Cronos GrowCo entered into a consulting services agreement with a consulting firm managed by a member of the group of investors holding the remaining 50% ownership of Cronos GrowCo, pursuant to which the consulting firm provides management services to Cronos GrowCo. During both the three and nine months ended September 30, 2024, the Company incurred $220 of expense under this agreement. As of September 30, 2024, the Company had $665 in outstanding payables related to this agreement, which included $444 that were acquired in the Cronos GrowCo Transaction.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

Commitments and Contingencies (Details) ₪ in Thousands, $ in Thousands	May 16, 2024 ILS (₪)	Apr. 17, 2023 ILS (₪) defendant	Oct. 24, 2022 CAD ($)	Mar. 12, 2020 shareholder complaint
U.S. District Court of Eastern District of New York Vs. Cronos \| Pending Litigation
Loss Contingencies [Line Items]
Number of alleged shareholders \| shareholder				2
Number of putative class action complaints \| complaint				2
OSC Settlement \| Settled Litigation
Loss Contingencies [Line Items]
Payments for legal settlements \| $			$ 1,340
Green Leaf Vs. Cronos
Loss Contingencies [Line Items]
Number of defendants \| defendant		26
Damages sought \| ₪		₪ 420,000
Amount awarded to other party \| ₪	₪ 10
Green Leaf Vs. Cronos \| Cronos Group, Inc.
Loss Contingencies [Line Items]
Number of defendants \| defendant		3

Share-based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-based Compensation

(a)Share-based award plans

The Company has granted stock options, restricted share units (“RSUs”) and deferred share units (“DSUs”) to employees and non-employee directors under the 2018 Stock Option Plan dated June 28, 2018 (the “2018 Stock Option Plan”), the Employment Inducement Award Plan #1 (the “Employment Inducement Award Plan”), the 2020 Omnibus Equity Incentive Plan dated March 29, 2020 (the “2020 Omnibus Plan”) and the DSU Plan dated August 10, 2019 (the “DSU Plan”). The Company can no longer make grants under the 2018 Stock Option Plan or the Employment Inducement Award Plan.

The following table summarizes the total share-based compensation expense associated with the Company’s stock options and RSUs for the three and nine months ended September 30, 2024 and 2023:


	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Stock options	$	34	$	35	$	101	$	1,141
RSUs	2,228		1,922		6,412		5,682
Total share-based compensation	$	2,262	$	1,957	$	6,513	$	6,823

(b)Stock options

Vesting conditions for grants of options are determined by the Compensation Committee of the Company’s Board of Directors. The typical vesting for stock option grants made under the 2020 Omnibus Plan is annual vesting over three to five years with a maximum term of ten years. The typical vesting for stock option grants made under the 2018 Stock Option Plan is quarterly vesting over three to five years with a maximum term of seven years. The 2018 Stock Option Plan did not, and the 2020 Omnibus Plan does not, authorize grants of options with an exercise price below fair market value.

The following is a summary of the changes in stock options for the nine months ended September 30, 2024 and 2023:


	Weighted-average exercise price (C$) (i)		Number of options	Weighted-average remaining contractual term (years)
Balance as of December 31, 2023	$	14.50	2,103,201	1.84


Cancellation, forfeiture and expiry of options	19.05		(1,385,937)
Balance as of September 30, 2024	$	5.63	717,264	3.90
Exercisable as of September 30, 2024	$	6.39	535,469	3.42


	Weighted-average exercise price (C$) (i)		Number of options	Weighted-average remaining contractual term (years)
Balance as of December 31, 2022	$	10.57	5,350,600	0.73
Issuance of options	2.96		188,317

Cancellation, forfeiture and expiry of options	7.75		(3,435,716)
Balance as of September 30, 2023	$	14.50	2,103,201	2.09
Exercisable as of September 30, 2023	$	16.02	1,845,841	1.50

(i)The weighted-average exercise price reflects the conversion of foreign currency-denominated stock options translated into C$ using the average foreign exchange rate as of the date of issuance.

The following table summarizes stock options outstanding:


	As of September 30, 2024	As of December 31, 2023
2020 Omnibus Plan	702,264	702,264
2018 Stock Option Plan	15,000	1,400,937

Total stock options outstanding	717,264	2,103,201

Restricted share units

The following is a summary of the changes in RSUs for the nine months ended September 30, 2024 and 2023:


	Weighted-average grant date fair value (C$)(ii)		Number of RSUs
Balance as of December 31, 2023	$	3.77	7,381,541
Granted(i)	2.95		2,503,835
Vested and issued	3.51		(1,364,864)
Cancellation and forfeitures	2.99		(125,616)
Balance as of September 30, 2024	$	3.53	8,394,896


	Weighted-average grant date fair value (C$)(ii)		Number of RSUs
Balance as of December 31, 2022	$	4.63	5,725,470
Granted(i)	2.65		2,883,500
Vested and issued	5.13		(764,056)
Cancellation and forfeitures	3.65		(510,342)
Balance as of September 30, 2023	$	3.86	7,334,572

(i)RSUs granted in the period vest annually in equal installments over a three-year period from either the grant date or after a three or five year “cliff-period.” All RSUs are subject to such holder’s continued employment through each vesting date. The vesting of such RSUs is not subject to the achievement of any performance criteria.

(ii)The weighted-average grant date fair value reflects the conversion of foreign currency-denominated RSUs translated into C$ using the foreign exchange rate as of the date of issuance.

(d)Deferred share units

The following is a summary of the changes in DSUs for the nine months ended September 30, 2024 and 2023:


	Financial liability		Number of DSUs
Balance as of December 31, 2023	$	1,092	521,679
Granting and vesting of DSUs	450		193,965
DSU liabilities settled	(359)		(155,383)
Loss on revaluation	59		—
Balance as of September 30, 2024	$	1,242	560,261


	Financial liability		Number of DSUs
Balance as of December 31, 2022	$	674	265,732
Granting and vesting of DSUs	450		255,947

Gain on revaluation	(82)		—
Balance as of September 30, 2023	$	1,042	521,679

Background, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	Basis of presentation These condensed consolidated interim financial statements of Cronos are unaudited. They have been prepared in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) for interim financial information and with applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) relating to interim financial statements. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for any other reporting period. These condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”). Certain prior period amounts have been reclassified to conform to the current year presentation of our condensed consolidated interim financial statements. These reclassifications had no effect on the reported results of operations and ending shareholders’ equity.
Discontinued Operations	Discontinued Operations In the second quarter of 2023, the Company exited its U.S. hemp-derived cannabinoid product operations. The exit of the U.S. operations represented a strategic shift that had a major effect on the Company’s operations and financial results, and as such, qualifies for reporting as discontinued operations in our condensed consolidated statements of net income (loss) and comprehensive income (loss). Prior period amounts have been reclassified to reflect the discontinued operations classification of the U.S. operations.
Segment information	Segment information Segment reporting is prepared on the same basis that the Company’s chief operating decision maker (the “CODM”) manages the business, makes operating decisions and assesses the Company’s performance. Prior to the second quarter of 2023, the Company reported results for two reportable segments, the U.S. and Rest of World. In the second quarter of 2023, as a result of the Company’s exit of its then-existing U.S. operations, the Company determined that it has one operating segment and therefore one reportable segment, which is comprised of operations in Canada and Israel and is involved in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for the medical and adult-use markets. All prior period segment disclosure information has been reclassified to conform to the current reporting structure in this Form 10-Q. These reclassifications had no effect on our consolidated financial statements in any period presented.
Concentration of risk	Concentration of risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company is exposed to credit risk from its operating activities, primarily accounts receivable and other receivables, and its investing activities, including cash held with banks and financial institutions, short-term investments and loans receivable. The Company’s maximum exposure to this risk is equal to the carrying amount of these financial assets, which amounted to $911,713 and $966,442 as of September 30, 2024 and December 31, 2023, respectively. An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on the days past due for groupings of various customer segments with similar loss patterns. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Accounts receivable are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan and a failure to make contractual payments for a period of greater than 120 days past due.
New accounting pronouncement not yet adopted and Adoption of new accounting pronouncements	New accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 enhances reportable segment disclosures by requiring disclosures such as significant segment expenses, information on the CODM and disclosures for entities with a single reportable segment. Additionally, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and we expect to adopt ASU 2023-07 retrospectively. The Company does not expect the adoption of ASU 2023-07 to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the existing income tax disclosures to provide additional information to better assess how an entity’s operations, related tax risks and tax planning, and operational opportunities affect its tax rate and prospects for future cash flows. ASU 2023-09 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and we expect to adopt ASU 2023-09 prospectively. The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial statements. (h)Adoption of new accounting pronouncements On January 1, 2024, the Company adopted ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered in measuring fair value. The amendments also require additional disclosures for equity securities subject to contractual sale restrictions. The adoption of ASU 2022-03 did not have a material impact on the Company’s condensed consolidated interim financial statements.

- Definition

Disclosure of accounting policy for segment reporting.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
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-Section 50
-Paragraph 29
-Subparagraph (a)
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

+ Details

Property, plant and equipment, net - Schedule of Property Plant and Equipment Acquisition by Major Category (Details) - Cronos Growing Company Inc. $ in Thousands	Jul. 01, 2024 USD ($)
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 119,600
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment	4,557
Building and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	49,356
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment	53,573
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment	580
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 11,534

Share-based Compensation - Summary of the Changes in Options (Details) - $ / shares	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Weighted average exercise price
Balance at beginning of period (in dollars per share)	$ 14.50	$ 10.57	$ 10.57
Issuance of options (in dollars per share)		2.96
Cancellation, forfeiture and expiry of options (in dollars per share)	19.05	7.75
Balance at end of period (in dollars per share)	5.63	14.50	$ 14.50	$ 10.57
Weighted average exercise price of options exercisable (in dollars per share)	$ 6.39	$ 16.02
Number of options
Balance at beginning of period (in shares)	2,103,201	5,350,600	5,350,600
Issuance of options (in shares)		188,317
Cancellation, forfeiture and expiry of options (in shares)	(1,385,937)	(3,435,716)
Balance at end of period (in shares)	717,264	2,103,201	2,103,201	5,350,600
Exercisable (in shares)	535,469	1,845,841
Weighted-average remaining contractual term (years)
Outstanding	3 years 10 months 24 days	2 years 1 month 2 days	1 year 10 months 2 days	8 months 23 days
Exercisable	3 years 5 months 1 day	1 year 6 months

Background, Basis of Presentation, and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Background, Basis of Presentation, and Summary of Significant Accounting Policies

(a)Background

Cronos Group Inc. (“Cronos” or the “Company”) is incorporated in the province of British Columbia under the Business Corporations Act (British Columbia) with principal executive offices at 4491 Concession Rd 12, Stayner, Ontario, L0M 1S0. The Company’s common shares are listed on the Toronto Stock Exchange (“TSX”) and Nasdaq Global Market (“Nasdaq”) under the ticker symbol “CRON.”

Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos’ diverse international brand portfolio includes Spinach®, PEACE NATURALS® and Lord Jones®.

(b)Basis of presentation

These condensed consolidated interim financial statements of Cronos are unaudited. They have been prepared in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) for interim financial information and with applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) relating to interim financial statements. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for any other reporting period.

These condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”).

Certain prior period amounts have been reclassified to conform to the current year presentation of our condensed consolidated interim financial statements. These reclassifications had no effect on the reported results of operations and ending shareholders’ equity.

(c)Discontinued Operations

In the second quarter of 2023, the Company exited its U.S. hemp-derived cannabinoid product operations. The exit of the U.S. operations represented a strategic shift that had a major effect on the Company’s operations and financial results, and as such, qualifies for reporting as discontinued operations in our condensed consolidated statements of net income (loss) and comprehensive income (loss). Prior period amounts have been reclassified to reflect the discontinued operations classification of the U.S. operations. For more information, see Note 3 “Discontinued Operations.”

(d)Segment information

Segment reporting is prepared on the same basis that the Company’s chief operating decision maker (the “CODM”) manages the business, makes operating decisions and assesses the Company’s performance. Prior to the second quarter of 2023, the Company reported results for two reportable segments, the U.S. and Rest of World. In the second quarter of 2023, as a result of the Company’s exit of its then-existing U.S. operations, the Company determined that it has one operating segment and therefore one reportable segment, which is comprised of operations in Canada and Israel and is involved in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for the medical and adult-use markets. All prior period segment disclosure information has been reclassified to conform to the current reporting structure in this Form 10-Q. These reclassifications had no effect on our consolidated financial statements in any period presented.

(e)Revenue recognition

The following tables present the Company’s revenue by major product category for continuing operations:


	Three months ended September 30,
	2024		2023
Cannabis flower	$	26,328	$	17,414
Cannabis extracts	7,789		7,268
Other	147		128
Net revenue	$	34,264	$	24,810


	Nine months ended September 30,
	2024		2023
Cannabis flower	$	64,514	$	44,556
Cannabis extracts	22,580		18,495
Other	220		275
Net revenue	$	87,314	$	63,326

Net revenue attributed to a geographic region based on the location of the customer were as follows for continuing operations:


	Three months ended September 30,
	2024		2023
Canada	$	24,067	$	18,738
Israel	7,259		5,673

Other countries	2,938		399
Net revenue	$	34,264	$	24,810


	Nine months ended September 30,
	2024		2023
Canada	$	62,781	$	46,767
Israel	20,565		16,160

Other countries	3,968		399
Net revenue	$	87,314	$	63,326

(f)Concentration of risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company is exposed to credit risk from its operating activities, primarily accounts receivable and other receivables, and its investing activities, including cash held with banks and financial institutions, short-term investments and loans receivable. The Company’s maximum exposure to this risk is equal to the carrying amount of these financial assets, which amounted to $911,713 and $966,442 as of September 30, 2024 and December 31, 2023, respectively.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on the days past due for groupings of various customer segments with similar loss patterns. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Accounts receivable are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan and a failure to make contractual payments for a period of greater than 120 days past due. As of September 30, 2024 and December 31, 2023, the Company had $14 and $3, respectively, in expected credit losses that have been recognized on receivables from contracts with customers.

As of September 30, 2024, the Company assessed that there is a concentration of credit risk, as 29% of the Company’s accounts receivable were due from one customer with an established credit history with the Company. As of December 31, 2023, 37% of the Company’s accounts receivable were due from one customer with an established credit history with the Company.

The Company sells products to a limited number of major customers. Major customers are defined as customers that each individually accounted for greater than 10% of the Company’s net revenue before excise taxes. During the three months ended September 30, 2024, the Company earned a total net revenue before excise taxes of $21,993 from two major customers, together accounting for 48% of the Company’s total net revenue before excise taxes. During the three months ended September 30, 2023, the Company earned a total net revenue before excise taxes of $22,618 from three major customers, together accounting for 67% of the Company’s total net revenue before excise taxes. During the nine months ended September 30, 2024, the Company earned a total net revenue before excise taxes of $71,846 from three customers, together accounting for 59% of the Company’s total net revenue before excise taxes. During the nine months ended September 30, 2023, the Company earned a total net revenue before excise taxes of $57,398 from three major customers, together accounting for 67% of the Company’s total net revenue before excise taxes.

(g)New accounting pronouncements not yet adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 enhances reportable segment disclosures by requiring disclosures such as significant segment expenses, information on the CODM and disclosures for entities with a single reportable segment. Additionally, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and we expect to adopt ASU 2023-07 retrospectively. The Company does not expect the adoption of ASU 2023-07 to have a material impact on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the existing income tax disclosures to provide additional information to better assess how an entity’s operations, related tax risks and tax planning, and operational opportunities affect its tax rate and prospects for future cash flows. ASU 2023-09 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and we expect to adopt ASU 2023-09 prospectively. The Company does not expect the adoption of ASU 2023-09 to have a material impact on its consolidated financial statements.

(h)Adoption of new accounting pronouncements

On January 1, 2024, the Company adopted ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered in measuring fair value. The amendments also require additional disclosures for equity securities subject to contractual sale restrictions. The adoption of ASU 2022-03 did not have a material impact on the Company’s condensed consolidated interim financial statements. With respect to the adoption of ASU 2022-03, see Note 5 “Investments” for discussion of the contractual restrictions related to the PharmaCann Option (as defined below).

Investments - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				9 Months Ended
	Jun. 14, 2021	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Variable Interest Entity [Line Items]
Gain on revaluation of equity method investment		$ 32,469			$ 0	$ 32,469	$ 0
Sale of stock, price per share (in dollars per share)	$ 0.0001
Sale of stock, percentage of ownership after transaction	10.50%
Purchase of other investments	$ 110,392
Impairment loss on other investments		$ 0			0	$ 25,650	0
PharmaCann
Variable Interest Entity [Line Items]
Ownership interest		5.80%				5.80%		6.60%
Vitura
Variable Interest Entity [Line Items]
Ownership interest		10.00%				10.00%
PharmaCann
Variable Interest Entity [Line Items]
Sale of stock, number of shares issued in transaction (in shares)	473,787
Cronos Growing Company Inc.
Variable Interest Entity [Line Items]
Gain on revaluation of equity method investment		$ 32,469				$ 32,469
PharmaCann
Variable Interest Entity [Line Items]
Impairment loss on other investments		0	$ 12,916	$ 12,734	0	25,650	0
Vitura
Variable Interest Entity [Line Items]
Impairment loss on other investments		$ 0			$ 0	$ 0	$ 0

Goodwill and Intangible Assets, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023	Jul. 01, 2024
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 38,028	$ 38,028	$ 1,057
Ginkgo exclusive licenses
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived	$ 14,258	$ 14,258	$ 3,366
Cronos Growing Company Inc.
Finite-Lived Intangible Assets [Line Items]
Goodwill				$ 36,421

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
-Section 55
-Paragraph 49
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-49

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/exampleRef
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Reference 4: http://www.xbrl.org/2003/role/exampleRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.9-03(10)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

+ Details

Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase of property, plant and equipment	$ 8,868	$ 1,287
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase of property, plant and equipment	$ 0	$ 67

Background, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 segment	Mar. 31, 2023 segment	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Concentration Risk [Line Items]
Number of reportable segments \| segment			1	2
Number of operating segments \| segment			1
Maximum exposure to credit risk					$ 911,713		$ 966,442
Current expected credit loss allowance on accounts receivable	$ 14				14		$ 3
Net revenue, before excise taxes	46,594	$ 33,912			120,639	$ 86,264
Two Major Customers
Concentration Risk [Line Items]
Net revenue, before excise taxes	$ 21,993
Three Major Customers
Concentration Risk [Line Items]
Net revenue, before excise taxes					$ 71,846
Accounts Receivable \| One Customer \| Credit Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage					29.00%		37.00%
Revenue Benchmark \| Two Major Customers \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	48.00%
Revenue Benchmark \| Three Major Customers \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage		67.00%			59.00%	67.00%
Net revenue, before excise taxes		$ 22,618				$ 57,398

Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense

The following table summarizes the total share-based compensation expense associated with the Company’s stock options and RSUs for the three and nine months ended September 30, 2024 and 2023:


	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Stock options	$	34	$	35	$	101	$	1,141
RSUs	2,228		1,922		6,412		5,682
Total share-based compensation	$	2,262	$	1,957	$	6,513	$	6,823

Schedule of the Changes in Options and Options Outstanding

The following is a summary of the changes in stock options for the nine months ended September 30, 2024 and 2023:


	Weighted-average exercise price (C$) (i)		Number of options	Weighted-average remaining contractual term (years)
Balance as of December 31, 2023	$	14.50	2,103,201	1.84


Cancellation, forfeiture and expiry of options	19.05		(1,385,937)
Balance as of September 30, 2024	$	5.63	717,264	3.90
Exercisable as of September 30, 2024	$	6.39	535,469	3.42


	Weighted-average exercise price (C$) (i)		Number of options	Weighted-average remaining contractual term (years)
Balance as of December 31, 2022	$	10.57	5,350,600	0.73
Issuance of options	2.96		188,317

Cancellation, forfeiture and expiry of options	7.75		(3,435,716)
Balance as of September 30, 2023	$	14.50	2,103,201	2.09
Exercisable as of September 30, 2023	$	16.02	1,845,841	1.50

(i)The weighted-average exercise price reflects the conversion of foreign currency-denominated stock options translated into C$ using the average foreign exchange rate as of the date of issuance.

The following table summarizes stock options outstanding:


	As of September 30, 2024	As of December 31, 2023
2020 Omnibus Plan	702,264	702,264
2018 Stock Option Plan	15,000	1,400,937

Total stock options outstanding	717,264	2,103,201

Schedule of Changes in RSUs

The following is a summary of the changes in RSUs for the nine months ended September 30, 2024 and 2023:


	Weighted-average grant date fair value (C$)(ii)		Number of RSUs
Balance as of December 31, 2023	$	3.77	7,381,541
Granted(i)	2.95		2,503,835
Vested and issued	3.51		(1,364,864)
Cancellation and forfeitures	2.99		(125,616)
Balance as of September 30, 2024	$	3.53	8,394,896


	Weighted-average grant date fair value (C$)(ii)		Number of RSUs
Balance as of December 31, 2022	$	4.63	5,725,470
Granted(i)	2.65		2,883,500
Vested and issued	5.13		(764,056)
Cancellation and forfeitures	3.65		(510,342)
Balance as of September 30, 2023	$	3.86	7,334,572

(ii)The weighted-average grant date fair value reflects the conversion of foreign currency-denominated RSUs translated into C$ using the foreign exchange rate as of the date of issuance.

Schedule of Changes in DSUs and Warrants

The following is a summary of the changes in DSUs for the nine months ended September 30, 2024 and 2023:


	Financial liability		Number of DSUs
Balance as of December 31, 2023	$	1,092	521,679
Granting and vesting of DSUs	450		193,965
DSU liabilities settled	(359)		(155,383)
Loss on revaluation	59		—
Balance as of September 30, 2024	$	1,242	560,261


	Financial liability		Number of DSUs
Balance as of December 31, 2022	$	674	265,732
Granting and vesting of DSUs	450		255,947

Gain on revaluation	(82)		—
Balance as of September 30, 2023	$	1,042	521,679

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 862,034	$ 669,291
Short-term investments	0	192,237
Accounts receivable, net	20,480	13,984
Interest receivable	7,190	10,012
Other receivables	5,690	6,341
Current portion of loans receivable, net	233	5,541
Inventory, net	47,250	30,495
Prepaids and other current assets	7,326	5,405
Held-for-sale assets	8,971	0
Total current assets	959,174	933,306
Equity method investments, net	0	19,488
Other investments	2,900	35,251
Non-current portion of loans receivable, net	16,086	69,036
Property, plant and equipment, net	162,516	59,468
Right-of-use assets	1,052	1,356
Goodwill	38,028	1,057
Intangible assets, net	4,247	21,078
Other assets	130	45
Total assets	1,184,133	1,140,085
Current liabilities
Accounts payable	6,532	12,130
Income taxes payable	94	64
Accrued liabilities	31,766	27,736
Current portion of lease obligation	980	994
Derivative liabilities	192	102
Current portion due to non-controlling interests	0	373
Total current liabilities	39,564	41,399
Non-current portion due to non-controlling interests	1,243	1,003
Non-current portion of lease obligation	872	1,559
Deferred tax liability	11,143	0
Total liabilities	52,822	43,961
Shareholders’ equity
Share capital (authorized for issue as of September 30, 2024 and December 31, 2023: unlimited; shares outstanding as of September 30, 2024 and December 31, 2023: 382,294,707 and 381,298,853, respectively)	616,403	613,725
Additional paid-in capital	51,523	48,449
Retained earnings	413,995	416,719
Accumulated other comprehensive gain (loss)	(361)	20,678
Total equity attributable to shareholders of Cronos Group	1,081,560	1,099,571
Non-controlling interests	49,751	(3,447)
Total shareholders’ equity	1,131,311	1,096,124
Total liabilities and shareholders’ equity	$ 1,184,133	$ 1,140,085

Discontinued Operations - Revenue by Major Product Category (Details) - Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue	$ 0	$ 1,029
Cannabis extracts
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue	$ 0	$ 1,029

Business Combination - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 01, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Loans receivable		$ 16,319		$ 16,319			$ 74,577
Equity method investments		0		0			19,488
Gain on revaluation of equity method investment		32,469	$ 0	32,469	$ 0
Gain on revaluation of loan receivable		11,804	0	11,804	0
Inventory step-up recorded to cost of sales				7,116	0
Goodwill		38,028		38,028			1,057
Net revenue, before excise taxes		46,594	33,912	120,639	86,264
Cronos Growing Company Inc.
Business Acquisition [Line Items]
Equity method investments		0		0		$ 53,542	$ 19,488
Gain on revaluation of equity method investment		32,469		32,469
Cronos Growing Company Inc.
Business Acquisition [Line Items]
Loans receivable	$ 51,000
Supply agreement, right to purchase percent	80.00%
Supply agreement, right to purchase forecasted production percent	70.00%
Supply agreement, right to purchase actual production percent	70.00%
Gain on revaluation of equity method investment		32,469		32,469
Gain on revaluation of loan receivable		11,804		11,804
Fair value of noncontrolling interest	$ 53,542
Inventory	31,041
Inventory adjustment	17,908
Inventory step-up recorded to cost of sales		7,116		7,116
Revenue of acquiree since acquisition date		4,268
Loss of acquiree since acquisition date		1,606		1,606
Acquisition-related costs		$ 334		530
Goodwill	$ 36,421
Cronos Growing Company Inc. \| Fair Value Adjustment to Inventory
Business Acquisition [Line Items]
Inventory adjustment			4,583		18,283
Cronos Growing Company Inc. \| Pre-Business Combination Revenue Adjustment
Business Acquisition [Line Items]
Net revenue, before excise taxes			(2,664)	(14,776)	(15,489)
Cost of goods and services sold			$ (4,232)	$ (11,386)	$ (12,147)

Share-based Compensation - Schedule of Stock Options Outstanding (Details) - shares	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding (in shares)	717,264	2,103,201	2,103,201	5,350,600
2020 Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding (in shares)	702,264	702,264
2018 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding (in shares)	15,000	1,400,937

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Inventory, net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 5,133	$ 4,795
Work-in-progress	27,470	10,593
Finished goods	14,387	14,819
Supplies and consumables	260	288
Inventory, net	$ 47,250	$ 30,495

Property, plant and equipment, net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property, plant and equipment, net

Property, plant and equipment, net consisted of the following:


	As of
		September 30, 2024		December 31, 2023
Cost
Land		$	6,656		$	2,764
Building and leasehold improvements		198,016			168,498
Machinery and Equipment		70,719			21,322
Furniture and fixtures		2,700			3,385
Construction in progress		21,401			3,269
Total Cost		299,492			199,238
Less: accumulated depreciation		(28,116)			(30,707)
Less: accumulated impairment charges		(108,860)			(109,063)
Total		$	162,516		$	59,468

During the first quarter of 2024, the Company ceased operations at its Winnipeg, Manitoba facility (“Cronos Fermentation”) and performed an assessment under ASC 360 of the recoverability of the carrying value of the Cronos Fermentation assets, and determined the carrying value of the assets was not fully recoverable. The fair value was estimated using a combination of the market and income approaches. As a result of this analysis, an impairment loss on long-lived assets of $1,631 was recorded to the condensed consolidated statements of net income loss and comprehensive loss in the nine months ended September 30, 2024. In addition, the Cronos Fermentation assets were classified as held-for-sale in the first quarter of 2024 at a fair value less costs to sell of $19,398. For more information, see Note 9, “Restructuring.”

For the three and nine months ended September 30, 2024, depreciation expense on property, plant and equipment was $2,552 and $3,861, respectively. For the three and nine months ended September 30, 2023, depreciation expense on property, plant and equipment was $1,158 and $3,766, respectively. This depreciation expense was included in cost of sales as well as depreciation and amortization in operating expenses on the consolidated statements of net loss and comprehensive loss.

The following table presents details of the property, plant and equipment acquired on July 1, 2024, in the Cronos GrowCo Transaction by major category:


	Fair value at date of Cronos GrowCo Transaction
Land	$	4,557
Building and leasehold improvements	49,356
Machinery and Equipment	53,573
Furniture and fixtures	580
Construction in progress	11,534
Total	$	119,600

For more information, see Note 2 “Business Combination.”

Loans Receivable, net - Narrative (Details) ₪ in Thousands, $ in Thousands		1 Months Ended	3 Months Ended				6 Months Ended		9 Months Ended				12 Months Ended		42 Months Ended	58 Months Ended
	Jun. 20, 2024 CAD ($)	Jun. 30, 2024 CAD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 CAD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 CAD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2024 CAD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 CAD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 CAD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CAD ($)	Dec. 31, 2022 CAD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2024 CAD ($)	Sep. 30, 2024 ILS (₪)	Dec. 31, 2023 ILS (₪)	Sep. 30, 2022	Aug. 31, 2021 CAD ($)	Aug. 23, 2019 CAD ($)	Jun. 28, 2019 USD ($)	Jun. 28, 2019 CAD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Draw downs									$ 8,822		$ 0
Proceeds from repayment on loans receivable									5,290		14,151
Gain on revaluation of loan receivable			$ 11,804		$ 0				11,804		0
GrowCo Credit Facility \| Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Face amount																					$ 105,000,000	$ 100,000,000
Face amount increase		$ 70,000,000
Financing receivable term		10 years					10 years	10 years								10 years	10 years
Draw downs	$ 12,000,000						$ 84,833	$ 116,000,000					$ 78,532	$ 104,000,000
Proceeds from repayment on loans receivable							2,447	3,333,000								$ 10,848	$ 14,833,000
Proceeds from interest on loan receivables							$ 2,835	$ 3,862,000								$ 17,832	$ 24,384,000
Mucci Promissory Note \| Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Face amount																							$ 12,089	$ 16,350,000
Proceeds from repayment on loans receivable					1,322	$ 1,750,000					1,322	$ 1,750,000
Proceeds from interest on loan receivables				$ 0	897	1,187,000				$ 0	897	1,187,000			$ 0
Stated interest rate																							3.95%	3.95%
Basis spread on interest rate																				1.25%
Proceeds from repayment on loan outstanding principal				$ 0	$ 425	$ 563,000				$ 0	$ 425	$ 563,000			$ 0
Cannasoul Collaboration Loan \| Loans Receivable \| Variable Interest Entity, Not Primary Beneficiary \| Cannasoul \| Establishment of a Commercial Cannabis Analytical Testing Laboratory
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collaborative arrangement, installment received			$ 2,175						$ 2,175				$ 2,294					₪ 8,297	₪ 8,297

Goodwill and Intangible Assets, net - Schedule of Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill [Line Items]
Cost	$ 38,028	$ 1,057
Accumulated impairment charges	0	0
Net	38,028	1,057
Peace Naturals
Goodwill [Line Items]
Cost	1,035	1,057
Accumulated impairment charges	0	0
Net	1,035	$ 1,057
Cronos GrowCo
Goodwill [Line Items]
Cost	36,993
Accumulated impairment charges	0
Net	$ 36,993

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

+ Details

Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Financial Information for Discontinued Operations


	Three months ended September 30,			Nine months ended September 30,
		2023
Net revenue		$	—		$	1,029
Cost of sales		—			2,044
Inventory write-down(i)		—			839
Gross profit		—			(1,854)
Operating expenses
Sales and marketing		—			518
Research and development		—			20
General and administrative		190			926
Restructuring costs		28			562
Share-based compensation		(4)			17
Depreciation and amortization		—			13

Impairment loss on long-lived assets(ii)		—			205
Total operating expenses		214			2,261
Interest income		1			9
Other, net(iii)		31			(132)
Total other income (loss)		32			(123)
Loss before income taxes		(182)			(4,238)
Income tax expense (benefit)		—			—
Net loss from discontinued operations		$	(182)		$	(4,238)

(i)For the nine months ended September 30, 2023, Inventory write-down relates to the disposal of obsolete inventory as a result of the exit of the U.S. operations.

(iii)For the three and nine months ended September 30, 2023, Other, net related to loss on disposal of assets that were part of the U.S. operations.

The following tables present the Company’s discontinued operations revenue by major product category:


	Three months ended September 30,		Nine months ended September 30,
	2023
Cannabis extracts	—		1,029
Net revenue	$	—	$	1,029

Schedule of Discontinued Operations Restructuring Activity

The following tables summarize the Company’s discontinued operations restructuring activity for the three and nine months ended September 30, 2023:


	Accrual as of June 30, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	219	$	28	$	(169)	$	78

Other Restructuring Costs	92		—		(92)		—
Total	$	311	$	28	$	(261)	$	78


	Accrual as of December 31, 2022		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	—	$	470	$	(392)	$	78

Other Restructuring Costs	—		92		(92)		—
Total	$	—	$	562	$	(484)	$	78

The following table summarizes the Company’s restructuring activity for the three and nine months ended September 30, 2024:


	Accrual as of June 30, 2024		Expenses		Payments/Write-offs		Accrual as of September 30, 2024
Employee Termination Benefits	$	24	$	—	$	(24)	$	—

Other Restructuring Costs	547		—		(547)		—
Total	$	571	$	—	$	(571)	$	—


	Accrual as of December 31, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2024
Employee Termination Benefits	$	150	$	62	$	(212)	$	—

Other Restructuring Costs	—		568		(568)		—
Total	$	150	$	630	$	(780)	$	—


	Accrual as of June 30, 2023		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	61	$	1,420	$	(947)	$	534

Other Restructuring Costs	—		3		(3)		—
Total	$	61	$	1,423	$	(950)	$	534


	Accrual as of December 31, 2022		Expenses		Payments/Write-offs		Accrual as of September 30, 2023
Employee Termination Benefits	$	403	$	1,420	$	(1,289)	$	534

Other Restructuring Costs	21		3		(24)		—
Total	$	424	$	1,423	$	(1,313)	$	534

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
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+ Details

Business Combination - Fair Values Of Identifiable Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jul. 01, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill	$ 38,028		$ 1,057
Cronos Growing Company Inc.
Business Acquisition [Line Items]
Cash		$ 5,993
Accounts receivable		2,437
Inventory		31,041
Prepaids and other current assets		795
Goodwill		36,421
Property, plant and equipment		119,600
Accounts payable		(2,913)
Accrued liabilities		(2,757)
Deferred income tax liability		(11,738)
Total purchase price		$ 178,879

Business Combination - Property Plant and Equipment Acquired (Details) - Cronos Growing Company Inc. $ in Thousands	Jul. 01, 2024 USD ($)
Business Acquisition [Line Items]
Property, plant and equipment	$ 119,600
Land
Business Acquisition [Line Items]
Property, plant and equipment	4,557
Building and leasehold improvements
Business Acquisition [Line Items]
Property, plant and equipment	49,356
Machinery and equipment
Business Acquisition [Line Items]
Property, plant and equipment	53,573
Furniture and fixtures
Business Acquisition [Line Items]
Property, plant and equipment	580
Construction in progress
Business Acquisition [Line Items]
Property, plant and equipment	$ 11,534

Business Combination

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Business Combination

On July 1, 2024, the Company obtained majority control of the board of directors of Cronos Growing Company Inc. (“Cronos GrowCo”), a cannabis cultivation company, which qualified as a business combination under ASC 805 (the “Cronos GrowCo Transaction”). Prior to this date, our investment in Cronos GrowCo consisted of an investment accounted for under the equity method and loans receivable from Cronos GrowCo.

Cronos GrowCo was formed under the Canada Business Corporations Act on June 14, 2018, with the objective of cultivating and commercializing cannabis and cannabis products. Cronos GrowCo is licensed to sell certain cannabis products to other license holders in the wholesale channel, as well as to provincial cannabis control authorities. It is also licensed to export dried flower to Israel.

In connection with the Cronos GrowCo Transaction, the Company provided an approximately $51,000 secured non-revolving credit facility to Cronos GrowCo to fund the expansion of Cronos GrowCo’s cultivation and processing facilities (the “Phase 2 Expansion”), and the Company entered into a new supply agreement (the “Supply Agreement”) with Cronos GrowCo. Pursuant to the Supply Agreement, prior to the commencement of sales from Cronos GrowCo’s Phase 2 Expansion area, the Company and its controlled affiliates (other than Cronos GrowCo) have the right, but not the obligation, to purchase an aggregate total quantity of 80% of Cronos GrowCo’s production. Thereafter, the Company and its controlled affiliates (other than Cronos GrowCo) will have the right, but not the obligation, to purchase 70% of Cronos GrowCo’s forecasted production capacity over a given period and 70% of Cronos GrowCo’s actual production in a given month. The Cronos GrowCo Transaction is intended to support the Company’s current and future biomass supply requirements.

As there was no cash consideration paid, the Cronos GrowCo Transaction has been valued with reference to the fair value of our existing equity method investment of $53,542, as well as the effective settlement of various preexisting relationships between the Company and Cronos GrowCo. These preexisting relationships are now classified as intercompany transactions and eliminated upon consolidation. In the three and nine months ended September 30, 2024, we recorded a gain of $32,469 on the condensed consolidated statements of net income (loss) and comprehensive income (loss) from remeasuring our equity method investment in Cronos GrowCo. We also recorded $11,804 to gain on revaluation of loan receivable on the condensed consolidated statements of net income (loss) and comprehensive income (loss) in the three and nine months ended September 30, 2024, from remeasuring our outstanding loans receivable with Cronos GrowCo. Additionally, the consideration also included the effective settlement of various preexisting trade receivables and payables and other related accounts that are now classified as intercompany transactions and eliminated upon consolidation. The effective settlement of the preexisting trade receivables, payables, and related accounts did not result in the recognition of any gain or loss on settlement. As of the date of the Cronos GrowCo Transaction, the fair value of the non-controlling interest in Cronos GrowCo was $53,542. The Company used the income approach to estimate both the fair value of the Company’s equity method investment in Cronos GrowCo and the fair value of the non-controlling interest in Cronos GrowCo. Under the income

approach, significant assumptions used in the discounted cash flow method that required the use of judgment were the discount rate, growth rates and cash flow projections. The Company used the income approach to estimate the fair value of the Company’s loan receivable with Cronos GrowCo. Under the income approach, significant assumptions used that required the use of judgment were the credit spread and interest rate volatility.

The table below summarizes the unaudited provisional estimates of the fair values of the identifiable assets acquired and liabilities assumed in the Cronos GrowCo Transaction. The Company's preliminary estimates and the allocation of the purchase price to the assets acquired and liabilities assumed may change as the Company completes the valuation process, which may result in an adjustment, which could be material, to the preliminary values presented below. The Company expects to complete the purchase price allocation as soon as reasonably possible, but not to exceed one year from the date of completion of the Cronos GrowCo Transaction.


Cash	$	5,993
Accounts receivable	2,437
Inventory	31,041
Prepaids and other current assets	795

Goodwill	36,421
Property, plant and equipment	119,600
Accounts payable	(2,913)
Accrued liabilities	(2,757)
Deferred income tax liability	(11,738)
Total purchase price	$	178,879

The inventory acquired in the Cronos GrowCo Transaction of $31,041 includes a step-up to fair value of $17,908. For both the three and nine months ended September 30, 2024, the Company recognized $7,116 of this inventory step-up into cost of sales on the condensed consolidated statements of income (loss) and comprehensive income (loss).

The following table presents details of the property, plant and equipment acquired by major category:


	Fair value at date of Cronos GrowCo Transaction
Land	$	4,557
Building and leasehold improvements	49,356
Machinery and equipment	53,573
Furniture and fixtures	580
Construction in progress	11,534
Total	$	119,600

The Company’s results of operations for the three and nine months ended September 30, 2024, included three months of the operating results of Cronos GrowCo, which was comprised of revenue of $4,268 and loss before income taxes of $1,606. Business combination-related costs of $334 and $530 were incurred in relation to the Cronos GrowCo Transaction in the three and nine months ended September 30, 2024, respectively, and were reported in general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

As part of the Cronos GrowCo Transaction, the Company preliminarily recorded goodwill of $36,421, none of which is deductible for income tax purposes. The goodwill acquired was primarily attributable to the ability to secure a long-term supply of cannabis and to take advantage of growth opportunities from the expansion of Cronos GrowCo’s cultivation and processing facilities.

The following table presents unaudited supplemental pro forma results for the three and nine months ended September 30, 2024 and 2023, respectively, as if the Cronos GrowCo Transaction had occurred as of January 1, 2023. The unaudited pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the business combination had taken place at such time. The unaudited pro forma results presented below include adjustments such as amortization of inventory step-up, amortization charges for acquired intangible assets, depreciation adjustments for property, plant and equipment that has been revalued, adjustment of interest expense and interest income resulting from the effective settlement of pre-existing debt financing in connection with the Cronos GrowCo Transaction and adjustments for certain business combination-related charges.


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net revenue	$	34,264	$	31,249	$	94,788	$	76,258
Gross profit	(3,540)		3,686		14,124		(881)
Operating expenses	37,266		27,036		82,715		77,107
Other income	(6,002)		17,416		8,892		74,788
Net income (loss) attributable to Cronos Group	$	(29,447)	$	(3,914)	$	(39,578)	$	(10,786)

Material nonrecurring pro forma adjustments directly attributable to the Cronos GrowCo Transactions include the following:

•Acquired inventory fair value step-up of $18,283 is assumed to be recorded at January 1, 2023. As such, historical amortization of the acquired inventory step-up of $7,116 recognized in the historical three month period ended September 30, 2024 was removed from pro forma net income for the three months and nine months ended September 30, 2024. The entire inventory fair value step-up of $18,283 was recognized as an incremental product cost in the nine months ended September 30, 2023, with $4,583 recognized in the three months ended September 30, 2023 as the inventory acquired at the business combination date is expected to turnover within eight months.

•Pre-business combination revenues for sales from Cronos GrowCo to the Company of $2,664 and $15,489 were adjusted out for the three months and nine months ended September 30, 2023, respectively, and $14,776 of pre-business combination revenues were adjusted out for the nine months ended September 30, 2024 as these amounts would have been eliminated in consolidation. Company pre-business combination cost of sales of $4,232 and $12,147 were adjusted out for the three and nine months ended September 30, 2023, respectively, and $11,386 of pre-business combination cost of sales were adjusted out for the nine months ended September 30, 2024, as these amounts would have been eliminated in consolidation.

•The gain on the revaluation of the equity method investment and loan receivable relating to the Cronos GrowCo Transaction of $32,469 and $11,804, respectively, were adjusted out for the three months and nine months ended September 30, 2024 and added into the nine months ended September 30, 2023 as this revaluation is assumed to have occurred on January 1, 2023.

Fair Value Measurements - Schedule of Fair Value of Assets Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 862,034	$ 669,291
Short-term investments		192,237
Other investments	2,900	9,601
Derivative liabilities	192	102
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	862,034	669,291
Short-term investments		192,237
Other investments		9,601
Derivative liabilities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Short-term investments		0
Other investments	0	0
Derivative liabilities	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Short-term investments		0
Other investments	0	0
Derivative liabilities	$ 192	$ 102

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

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- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes liabilities not subject to a master netting arrangement and not elected to be offset.

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+ Details

Restructuring - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Restructuring Cost and Reserve [Line Items]
Loss on held-for-sale assets	$ 10,422	$ 0	$ 10,422	$ 0
Restructuring costs	0	1,423	630	1,423
Realignment
Restructuring Cost and Reserve [Line Items]
Impairment loss on long-lived assets			1,631
Loss on held-for-sale assets	10,422		10,422
Restructuring costs	$ 0	$ 1,423	$ 630	$ 1,423
Realignment \| Disposal Group, Held-for-sale, Not Discontinued Operations \| Cronos Fermentation
Restructuring Cost and Reserve [Line Items]
Current assets of discontinued operations					$ 19,398

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Share-based Compensation - Summary of DSU Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financial liability
Granting and vesting of DSUs	$ 2,262	$ 1,957	$ 6,513	$ 6,823
Deferred Share Units (DSUs)
Financial liability
Balance at beginning of period			1,092	674
Granting and vesting of DSUs			450	450
DSU liabilities settled			(359)
Loss (Gain) on revaluation			59	(82)
Balance at end of period	$ 1,242	$ 1,042	$ 1,242	$ 1,042
Number of awards
Balance at beginning of period (in shares)			521,679	265,732
Granting and vesting of DSUs (in shares)			193,965	255,947
DSU liabilities settled (in shares)			(155,383)
Balance at end of period (in shares)	560,261	521,679	560,261	521,679

Business Combination (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Fair Values Of Identifiable Assets Acquired And Liabilities Assumed


Cash	$	5,993
Accounts receivable	2,437
Inventory	31,041
Prepaids and other current assets	795

Goodwill	36,421
Property, plant and equipment	119,600
Accounts payable	(2,913)
Accrued liabilities	(2,757)
Deferred income tax liability	(11,738)
Total purchase price	$	178,879

The following table presents details of the property, plant and equipment acquired by major category:


	Fair value at date of Cronos GrowCo Transaction
Land	$	4,557
Building and leasehold improvements	49,356
Machinery and equipment	53,573
Furniture and fixtures	580
Construction in progress	11,534
Total	$	119,600

Schedule of Supplemental Pro Forma Results


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net revenue	$	34,264	$	31,249	$	94,788	$	76,258
Gross profit	(3,540)		3,686		14,124		(881)
Operating expenses	37,266		27,036		82,715		77,107
Other income	(6,002)		17,416		8,892		74,788
Net income (loss) attributable to Cronos Group	$	(29,447)	$	(3,914)	$	(39,578)	$	(10,786)

Fair Value Measurements - Schedule of Fair Value of Assets Measured on Nonrecurring Basis (Details) (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 14, 2021	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments		$ 2,900	$ 3,168	$ 35,251	$ 62,143	$ 67,925	$ 70,993
Sale of stock, price per share (in dollars per share)	$ 0.0001
Sale of stock, percentage of ownership after transaction	10.50%
Purchase of other investments	$ 110,392
PharmaCann
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest		5.80%		6.60%
PharmaCann
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Sale of stock, number of shares issued in transaction (in shares)	473,787
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments				$ 25,650
Fair Value, Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments				0
Fair Value, Nonrecurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments				0
Fair Value, Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments				$ 25,650

Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company complies with ASC 820 Fair Value Measurements for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. In general, fair values are determined by:

•Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves.

•Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis:


	September 30, 2024
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	862,034	$	—	$	—	$	862,034

Other investments(i)	2,900		—		—		2,900
Derivative liabilities	—		—		192		192


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	669,291	$	—	$	—	$	669,291
Short-term investments	192,237		—		—		192,237
Other investments(i)	9,601		—		—		9,601
Derivative liabilities	—		—		102		102

There were no transfers between fair value categories during the periods presented.


	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Other investments(i)	$	—	$	—	$	25,650	$	25,650

There were no transfers between fair value categories during the periods presented.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

Loans Receivable, net (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Schedule of Loans Receivable

Loans receivable, net consists of the following:


	As of September 30, 2024		As of December 31, 2023

GrowCo Credit Facility(i)	$	—	$	5,034
Add: Current portion of Mucci Promissory Note accrued interest	233		507
Total current portion of loans receivable, net	233		5,541
GrowCo Credit Facility(i)	—		53,638
Mucci Promissory Note	14,081		13,379
Cannasoul Collaboration Loan	1,706		1,771
Add: Long-term portion of accrued interest	299		248
Total long-term portion of loans receivable, net	16,086		69,036
Total loans receivable, net(i)	$	16,319	$	74,577

Schedule of Expected Credit Loss Allowances

Expected credit loss allowances on the Company’s long-term financial assets for the nine months ended September 30, 2024 and 2023 were comprised of the following items:


	As of June 30, 2024		Increase (decrease)(ii)		Foreign exchange effect		As of September 30, 2024
GrowCo Credit Facility(i)	$	11,838	$	(11,804)	$	(34)	$	—

Mucci Promissory Note	90		1		1		92
Cannasoul Collaboration Loan	506		4		10		520
	$	12,434	$	(11,799)	$	(23)	$	612


	As of December 31, 2023		Increase (decrease)(ii)		Foreign exchange effect		As of September 30, 2024
GrowCo Credit Facility(i)	$	11,176	$	(10,794)	$	(382)	$	—

Mucci Promissory Note	89		4		(1)		92
Cannasoul Collaboration Loan	524		12		(16)		520
	$	11,789	$	(10,778)	$	(399)	$	612


	As of June 30, 2023		Increase (decrease)(iii)		Foreign exchange effect		As of September 30, 2023
GrowCo Credit Facility	$	11,579	$	(199)	$	(283)	$	11,097

Mucci Promissory Note	86		2		(2)		86
Cannasoul Collaboration Loan	503		4		(14)		493
	$	12,168	$	(193)	$	(299)	$	11,676


	As of December 31, 2022		Increase (decrease)(iii)		Foreign exchange effect		As of September 30, 2023
GrowCo Credit Facility	$	12,455	$	(1,348)	$	(10)	$	11,097

Mucci Promissory Note	89		(3)		—		86
Cannasoul Collaboration Loan	522		12		(41)		493
	$	13,066	$	(1,339)	$	(51)	$	11,676

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Share capital	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Non-controlling interests
Beginning balance (in shares) at Dec. 31, 2022		380,575,403
Beginning balance at Dec. 31, 2022	$ 1,140,964	$ 611,318	$ 42,682	$ 490,682	$ (797)	$ (2,921)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Activities relating to share-based compensation (in shares)		240,518
Activities relating to share-based compensation	2,279	$ 917	1,362
Net income (loss)	(19,257)			(19,169)		(88)
Foreign exchange gain (loss) on translation	2,414				2,334	80
Ending balance (in shares) at Mar. 31, 2023		380,815,921
Ending balance at Mar. 31, 2023	1,126,400	$ 612,235	44,044	471,513	1,537	(2,929)
Beginning balance (in shares) at Dec. 31, 2022		380,575,403
Beginning balance at Dec. 31, 2022	1,140,964	$ 611,318	42,682	490,682	(797)	(2,921)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(29,526)
Foreign exchange gain (loss) on translation	(1,096)
Ending balance (in shares) at Sep. 30, 2023		381,113,564
Ending balance at Sep. 30, 2023	1,116,765	$ 613,290	47,133	461,509	(2,110)	(3,057)
Beginning balance (in shares) at Mar. 31, 2023		380,815,921
Beginning balance at Mar. 31, 2023	1,126,400	$ 612,235	44,044	471,513	1,537	(2,929)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Activities relating to share-based compensation (in shares)		273,436
Activities relating to share-based compensation	2,190	$ 917	1,273
Net income (loss)	(8,497)			(8,360)		(137)
Foreign exchange gain (loss) on translation	16,580				16,530	50
Ending balance (in shares) at Jun. 30, 2023		381,089,357
Ending balance at Jun. 30, 2023	1,136,673	$ 613,152	45,317	463,153	18,067	(3,016)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Activities relating to share-based compensation (in shares)		24,207
Activities relating to share-based compensation	1,954	$ 138	1,816
Net income (loss)	(1,772)			(1,644)		(128)
Foreign exchange gain (loss) on translation	(20,090)				(20,177)	87
Ending balance (in shares) at Sep. 30, 2023		381,113,564
Ending balance at Sep. 30, 2023	$ 1,116,765	$ 613,290	47,133	461,509	(2,110)	(3,057)
Beginning balance (in shares) at Dec. 31, 2023	381,298,853	381,298,853
Beginning balance at Dec. 31, 2023	$ 1,096,124	$ 613,725	48,449	416,719	20,678	(3,447)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Activities relating to share-based compensation (in shares)		712,325
Activities relating to share-based compensation	1,499	$ 1,900	(401)
Net income (loss)	(2,484)			(2,241)		(243)
Foreign exchange gain (loss) on translation	(22,361)				(22,471)	110
Ending balance (in shares) at Mar. 31, 2024		382,011,178
Ending balance at Mar. 31, 2024	$ 1,072,778	$ 615,625	48,048	414,478	(1,793)	(3,580)
Beginning balance (in shares) at Dec. 31, 2023	381,298,853	381,298,853
Beginning balance at Dec. 31, 2023	$ 1,096,124	$ 613,725	48,449	416,719	20,678	(3,447)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3,919)
Foreign exchange gain (loss) on translation	$ (20,113)
Ending balance (in shares) at Sep. 30, 2024	382,294,707	382,294,707
Ending balance at Sep. 30, 2024	$ 1,131,311	$ 616,403	51,523	413,995	(361)	49,751
Beginning balance (in shares) at Mar. 31, 2024		382,011,178
Beginning balance at Mar. 31, 2024	1,072,778	$ 615,625	48,048	414,478	(1,793)	(3,580)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Activities relating to share-based compensation (in shares)		269,547
Activities relating to share-based compensation	1,933	$ 754	1,250	(71)
Net income (loss)	(8,759)			(8,757)		(2)
Foreign exchange gain (loss) on translation	(10,160)				(10,220)	60
Ending balance (in shares) at Jun. 30, 2024		382,280,725
Ending balance at Jun. 30, 2024	1,055,792	$ 616,379	49,298	405,650	(12,013)	(3,522)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Non-controlling interest resulting from business combination	53,542					53,542
Activities relating to share-based compensation (in shares)		13,982
Activities relating to share-based compensation	2,245	$ 24	2,225	(4)
Net income (loss)	7,324			8,349		(1,025)
Foreign exchange gain (loss) on translation	$ 12,408				11,652	756
Ending balance (in shares) at Sep. 30, 2024	382,294,707	382,294,707
Ending balance at Sep. 30, 2024	$ 1,131,311	$ 616,403	$ 51,523	$ 413,995	$ (361)	$ 49,751

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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- Definition

Amount of equity (deficit) attributable to parent and noncontrolling interest. Excludes temporary equity.

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+ Details

Inventory, net

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Inventory, net

Inventory, net is comprised of the following items:


	As of September 30, 2024		As of December 31, 2023
Raw materials	$	5,133	$	4,795
Work-in-progress	27,470		10,593
Finished goods	14,387		14,819
Supplies and consumables	260		288
Total	$	47,250	$	30,495

As a result of the Cronos GrowCo Transaction, the Company recorded a step-up to Cronos GrowCo’s existing inventory of $17,908 to bring the inventory balance acquired by the Company to its fair value. For both the three and nine months ended September 30, 2024, the Company recognized $7,116 of this inventory step-up into cost of sales on the condensed consolidated statements of income (loss) and comprehensive income (loss). For more information, see Note 2 “Business Combination.”

Income (Loss) per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Income (Loss) per Share

Basic and diluted income (loss) per share from continuing and discontinued operations are calculated as follows (in thousands, except share and per share amounts):


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Basic income (loss) per share computation
Net income (loss) from continuing operations attributable to the shareholders of Cronos Group	$	8,349	$	(1,462)	$	(2,649)	$	(24,935)
Weighted-average number of common shares outstanding for computation for basic income (loss) per share	382,285,589		381,100,005		381,963,097		380,900,334
Basic income (loss) from continuing operations per share	$	0.02	$	(0.00)	$	(0.01)	$	(0.07)


Loss from discontinued operations attributable to the shareholders of Cronos Group	$	—	$	(182)	$	—	$	(4,238)
Weighted-average number of common shares outstanding for computation of basic loss from discontinued operations per share	382,285,589		381,100,005		381,963,097		380,900,334
Basic loss from discontinued operations per share	$	—	$	(0.00)	$	—	$	(0.01)


Diluted income (loss) per share computation
Net income (loss) from continuing operations attributable to the shareholders of Cronos Group	$	8,349	$	(1,462)	$	(2,649)	$	(24,935)



Weighted-average number of common shares outstanding used in the computation of basic income (loss) per share	382,285,589		381,100,005		381,963,097		380,900,334


Dilutive effect of RSUs	3,408,093		—		—		—

Dilutive effect of Top-up Rights – market price	290,725		—		—		—
Weighted-average number of common shares for computation of diluted income (loss) from continuing operations per share(i)	385,984,407		381,100,005		381,963,097		380,900,334
Diluted income (loss) from continuing operations per share	$	0.02	$	(0.00)	$	(0.01)	$	(0.07)

Loss from discontinued operations attributable to the shareholders of Cronos Group	$	—	$	(182)	$	—	$	(4,238)
Weighted-average number of common shares for computation of diluted loss from discontinued operations per share	385,984,407		381,100,005		381,963,097		380,900,334
Diluted loss from discontinued operations per share	$	0.00	$	(0.00)	$	0.00	$	(0.01)

For the three months ended September 30, 2024 and 2023, total securities of 15,065,666 and 23,340,811, respectively, were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive. For the nine months ended September 30, 2024 and 2023, total securities of 20,926,402 and 27,399,000, respectively, were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive.

Investments

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments

(a)Equity method investments, net

As a result of the Cronos GrowCo Transaction, the existing equity method investment in Cronos GrowCo was remeasured at its fair value. In both the three and nine months ended September 30, 2024, we recorded a gain of $32,469 on the condensed consolidated statements of net income (loss) and comprehensive income (loss) from remeasuring our equity method investment in Cronos GrowCo. For more information, see Note 2 “Business Combination”

A reconciliation of the carrying amount of the investments in equity method investees, net is as follows:


	Ownership interest	As of September 30, 2024		As of December 31, 2023

Cronos GrowCo(i)	50%	$	—	$	19,488

		$	—	$	19,488

The following is a summary of the Company’s share of net income from equity investments accounted for under the equity method of accounting:


	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Cronos GrowCo(i)	$	—	$	1,057	$	2,365	$	831

	$	—	$	1,057	$	2,365	$	831

(b)Other investments

Other investments consist of investments in common shares and options of two companies in the cannabis industry.

PharmaCann Option

On June 14, 2021, the Company purchased an option (the “PharmaCann Option”) to acquire 473,787 shares of Class A Common Stock of PharmaCann, Inc. (“PharmaCann”), a vertically integrated cannabis company in the United States, at an exercise price of $0.0001 per share, representing approximately 10.5% of PharmaCann’s issued and outstanding capital stock on a fully diluted basis as of the date of the PharmaCann Option, for an aggregate purchase price of approximately $110,392. The PharmaCann Option is classified as an investment in an equity security without a readily determinable fair value. The Company measures the PharmaCann Option at cost less accumulated impairment charges, if any, and subsequently adjusted for observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of September 30, 2024 and December 31, 2023, based on updated information provided by PharmaCann in the third quarter, the Company’s ownership percentage in PharmaCann on a fully diluted basis was approximately 5.8% and 6.6%, respectively. The decrease in the Company’s ownership percentage since acquisition does not materially affect the Company’s rights under the PharmaCann Option. The PharmaCann Option is measured at fair value on a non-recurring basis and is a level 3 asset. See Note 13 “Fair Value Measurements” for more information on the fair value hierarchy. The PharmaCann Option is reported as Other investments on the consolidated balance sheet as of September 30, 2024 and December 31, 2023.

During the first and second quarters of 2024, the Company identified adverse forecast changes in the financial performance of PharmaCann as indicators of impairment related to the PharmaCann Option and conducted analyses comparing the PharmaCann Option’s carrying amount to its estimated fair value. The fair value was estimated using the market approach. Under the market approach, the key assumptions are the selected multiples and the discount for lack of marketability. As a result of these analyses, the Company recorded non-cash impairment charges of $12,734 and $12,916 in the first and second quarters of 2024, respectively, as the difference between the carrying amount of the PharmaCann Option and its estimated fair value, in the condensed consolidated statements of net income (loss) and comprehensive income (loss) for the nine months ended September 30, 2024.

The Company may sell, transfer or dispose of the PharmaCann Option without PharmaCann’s prior written consent, subject to the following conditions: (i) any transferee of any part of the PharmaCann Option must comply with and commit to comply with all regulations issued by a governmental entity applicable to such transferee in all material respects; (ii) any transferee of any part of the PharmaCann Option must agree to be bound by the terms of the Option Purchase Agreement, dated as of June 14, 2021 (the “Option Purchase Agreement”), as a “Purchaser” thereunder; (iii) the Company may not split and/or transfer the PharmaCann Option, in the aggregate, to more than four persons (with certain exceptions); (iv) no transferee may be a Prohibited Assignee (as defined in the Option Purchase Agreement); and (v) subject to certain exceptions, in the event that the Company (or a Permitted Transferee of the whole PharmaCann Option) transfers less than all of the PharmaCann Option to any third party that is not a Permitted Transferee, certain governance and information rights terminate immediately, unless waived by the PharmaCann board of directors in its sole and absolute discretion.

Additionally, in the event of an initial underwritten public offering of PharmaCann’s common stock pursuant to an effective registration statement, to the extent that holders of PharmaCann common stock are subject to any lock-up period imposed by the underwriter in connection therewith, the Company will, if applicable, execute a customary lock-up agreement on the same material

terms and conditions as the other holders of common stock are subject to or as otherwise agreed between PharmaCann and the Company, subject to certain conditions with respect to the duration of the lock-up period.

Vitura Health Limited (formerly known as Cronos Australia)

The Company owns approximately 10% of the outstanding common shares of Vitura Health Limited (“Vitura”). The investment is considered an equity security with a readily determinable fair value. Changes in the fair value of the investment are recorded as gain (loss) on revaluation of financial instruments on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

The following table summarizes the Company’s other investments activity:


	As of June 30, 2024		Unrealized loss		Impairment charges		Foreign exchange effect		As of September 30, 2024
PharmaCann	$	—	$	—	$	—	$	—	$	—
Vitura	3,168		(371)		—		103		2,900
	$	3,168	$	(371)	$	—	$	103	$	2,900


	As of December 31, 2023		Unrealized loss		Impairment charges		Foreign exchange effect		As of September 30, 2024
PharmaCann	$	25,650	$	—	$	(25,650)	$	—	$	—
Vitura	9,601		(6,468)		—		(233)		2,900
	$	35,251	$	(6,468)	$	(25,650)	$	(233)	$	2,900


	As of June 30, 2023		Unrealized loss		Impairment charges		Foreign exchange effect		As of September 30, 2023
PharmaCann	$	49,000	$	—	$	—	$	—	$	49,000
Vitura	18,925		(5,204)		—		(578)		13,143
	$	67,925	$	(5,204)	$	—	$	(578)	$	62,143


	As of December 31, 2022		Unrealized loss		Impairment charges		Foreign exchange effect		As of September 30, 2023
PharmaCann	$	49,000	$	—	$	—	$	—	$	49,000
Vitura	21,993		(7,933)		—		(917)		13,143
	$	70,993	$	(7,933)	$	—	$	(917)	$	62,143