Flora Growth Corp. (FLGC): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of Flora Growth Corp.'s (FLGC) dramatic late-2025 pivot, and honestly, it's a wild ride from cannabis to a decentralized AI treasury strategy. This isn't your typical shift; they're now balancing a pharma distribution arm, which brought in $9.7 million in Q3 2025 revenue, with a core focus on compounding $55.3 million in $0G Tokens for their new digital asset holdings. As someone who's seen a few market shifts, I can tell you this Business Model Canvas lays out exactly how they plan to connect European pharma sales with cutting-edge blockchain exposure. Dive in below to see the nine blocks defining this high-risk, high-reward structure.

Flora Growth Corp. (FLGC) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances Flora Growth Corp., soon to be known as ZeroStack, has locked in as of late 2025 to execute its major pivot into a Digital Asset Treasury Company. These partnerships are the engine for the new strategy, moving beyond the legacy cannabis CPG business.

Strategic Investment and Treasury Foundation

The cornerstone of the new direction is the $401 million funding package, which includes a specific $22.88 million strategic investment from DeFi Dev Corp. (DFDV). This deal, expected to close around September 26, 2025, is priced at $25.19 per share for the PIPE (Private Investment in Public Equity) component. The total funding is split between $35 million in cash and $366 million in in-kind digital assets, primarily $0G tokens.

The core digital asset treasury strategy centers on 0G, the AI-first blockchain, with $0G designated as the primary reserve asset. This positions Flora Growth Corp. to offer institutional investors equity exposure to the foundational infrastructure of decentralized AI. The $0G token valuation in the deal implies a fully diluted valuation (FDV) of $3 billion for the project, based on a $3.00 value per token contributed in-kind.

The company has already executed on acquiring the asset:

• Initial purchase: 772,200 $0G tokens at an average price of $2.59.
• Second purchase: 880,025 $0G tokens at an average price of $2.27.

As of October 21, 2025, Flora Growth Corp. held 123,418,360 $0G tokens, equating to approximately $231 million in total $0G equivalents. The company also noted it will hold a small portion of its treasury in SOL tokens.

Institutional Custody and Beverage Production

To secure the new digital asset treasury, Flora Growth Corp. appointed BitGo Trust Company, Inc. ('BitGo') as the institutional custodian on October 16, 2025. This move emphasizes security and regulatory compliance for the $0G holdings.

In the legacy cannabis sector, the Peak USA JV with Althea Group Holdings targets the U.S. hemp-derived beverage market through a 50/50 joint venture structure. Each partner contributed $250,000 in initial operating capital. Peak Processing Solutions brings manufacturing know-how, claiming a 40% market share in Canadian cannabis beverages. The U.S. market they are targeting was valued at USD$966.92 million in 2024 and is projected to reach USD$19.06 billion by 2028.

Here's a look at the initial product focus for the Peak USA JV:

Product Line	Flavor Examples	THC Content
Melo seltzers	Wild Berries, Grapefruit, Strawberry	5mg
Cloud Cola sodas	Vintage Cola, Root Beer, Orange Creamsicle	10mg

The JV is actively negotiating with liquor distributors in key U.S. states.

International Pharmaceutical Distribution via Phatebo GmbH

Flora Growth Corp.'s wholly owned subsidiary, Phatebo GmbH, is central to its European pharmaceutical distribution arm. This infrastructure, established through the acquisition of Franchise Global Health Inc., provides a foothold in Germany and the European Union. Phatebo GmbH is described as a leading distributor of export pharmaceuticals and medical cannabis products.

The distribution network capabilities include:

• Serving over 1,200+ pharmacies in Germany.
• Distributing pharmaceutical products across 28 countries.
• Holding the first German medical cannabis import and distribution license, granted in 2017.

For context on the scale of this segment, Franchise Global Health reported revenues of approximately CA$30.1 million (US$23.4 million) for the six months ended June 30, 2022. The German legal cannabis recreation market has a potential value estimated at $4.2 billion upon legalization, with the total European market forecasted at $10.2 billion.

Finance: Finance needs to reconcile the $231 million Q3 2025 $0G equivalent value against the legacy segment's 2022 financial data for the next valuation model update by next Tuesday.

Flora Growth Corp. (FLGC) - Canvas Business Model: Key Activities

You're looking at a company in the middle of a radical pivot, so the key activities reflect a massive shift in focus. Flora Growth Corp., which is set to rebrand as ZeroStack, is now prioritizing digital asset management over its legacy CPG operations. Still, the pharmaceutical distribution arm remains a core, albeit secondary, activity as of late 2025.

Digital asset treasury management: acquiring and compounding $0G Tokens

This is the primary engine now. Flora Growth Corp. is actively building a treasury backed by the $0G token, the fuel for the 0G Decentralized AI Network. The firm appointed BitGo Trust Company, Inc. as custodian for this treasury on October 16, 2025, signaling a serious commitment to institutional-grade security for this new asset class. This activity is underpinned by significant capital raises, including a September 2025 announcement of a $401 million funding commitment, which kicked off with a $22.88 million strategic investment from DeFi Development Corp..

The execution of this strategy involves continuous acquisition and compounding. As of October 21, 2025, the company disclosed a second purchase of 880,025 $0G tokens at an average price of $2.27 each. This brought the total reported holdings to 123,418,360 $0G tokens. Based on a reported $0G value of $1.87 on October 20, 2025, this digital asset base was valued at approximately $231 million in $0G equivalents. This digital asset base is now a far larger, more volatile asset than the remaining cannabis operations.

The reported metrics reflecting this treasury focus include:

• Total $0G Tokens Held: 123,418,360
• Approximate Treasury Value (as of Oct 20, 2025): $231 million
• Reported Partially Adjusted Share Count: 9,940,399
• Reported $0G Per Share (ZGPS): 12.42, equating to $23.22 per share
• Solana (SOL) Tokens Held: 95,333 (valued at $22.88M)

The strategy is clearly long-term holding and staking to generate native yield, not short-term trading. What this estimate hides, however, is the potential dilution if Note Shares are included, which would raise the adjusted share count to approximately ~15,125,761.

International pharmaceutical distribution and logistics via Phatebo

The Commercial & Wholesale segment, driven by the wholly owned subsidiary Phatebo GmbH in Germany, remains a key operational activity, focusing on Europe and international pharmaceutical distribution. While the strategic emphasis has shifted, Phatebo's performance contributes directly to the top line. For the third quarter ending September 30, 2025, the company reported total revenue of $9.75 million. This segment, along with the House of Brands, contributed to a trailing twelve-month revenue of $57.61 million as of September 30, 2025.

The revenue contribution from this area has seen fluctuations in 2025:

Period Ending	Reported Revenue	Comparison Point
Q3 2025	$9.75 million	Below consensus estimate of $12.50 million
Q2 2025	$14.8 million	Down 5.7% year-over-year
Q1 2025	$11.8 million	Down from $18.0 million in Q1 2024
FY 2024	$59.51 million	Down -21.78% from the prior year

The company explicitly noted that lower sales from Phatebo contributed to the Q1 2025 revenue decline.

Global CPG brand management and e-commerce operations (JustCBD, Vessel)

The House of Brands segment, which includes JustCBD and Vessel, is managed through e-commerce operations, though sales in this area have faced headwinds. Lower sales from these brands were cited as a primary reason for the overall revenue decrease in the fiscal year ended December 31, 2024. Furthermore, the U.S. market saw a decrease in sales, particularly from JustCBD, in Q1 2025.

Despite the overall revenue challenges in the legacy business, specific e-commerce events show consumer engagement. For instance, the company reported sales of $600,000 across the JustCBD and Vessel brands during the Black Friday and Cyber Monday weekend in 2024, driven by strategic promotions. To diversify this segment in 2025, Flora Growth acquired United Beverage Distribution Inc., specializing in cannabis-infused drinks, and launched the THC beverage brand Melo.

Regulatory compliance and licensing for global cannabis/pharma markets

Compliance is a critical, non-revenue-generating activity, especially given the company's dual focus and past issues. A major action was the 1-for-39 reverse stock split executed in 2025 to address non-compliance with the NASDAQ minimum bid price requirement of $1.00 per share. The company regained compliance with the NASDAQ minimum bid requirement in August 2025.

Key compliance and licensing efforts involve:

• Appointing BitGo for institutional-grade custody of the $0G treasury, emphasizing security and regulatory controls.
• Engaging in regulatory advocacy, particularly concerning EU expansion efforts.
• The company is actively divesting from legacy cannabis operations to focus on the less regulated, high-growth digital asset space.

Finance: draft 13-week cash view by Friday.

Flora Growth Corp. (FLGC) - Canvas Business Model: Key Resources

You're looking at the core assets Flora Growth Corp. (FLGC), now positioning itself as ZeroStack, relies on to execute its radical pivot toward a decentralized AI treasury model while maintaining legacy operations. These resources are the foundation, so let's detail the hard numbers and tangible assets as of late 2025.

The balance sheet has been dramatically altered by the new treasury strategy, making the digital assets the most significant component of the Key Resources block. As of the end of Q3 2025, Flora Growth Corp. reported $74.0 million in total assets. This surge from $26.2 million at the end of 2024 is directly attributable to the digital asset acquisition.

The company's holdings in the nascent AI infrastructure token are central to the new model. Flora Growth Corp. received $55.3 million in $0G Tokens for the AI treasury as part of its recent funding structure. To give you a clearer picture of the scale of this digital holding relative to the whole company, here is a breakdown of the key asset categories based on the Q3 2025 filings and related data:

Asset Category	Specific Metric/Value	Date/Context
Total Assets	$74.0 million	As of Q3 2025
Digital Asset Treasury Inflow	$55.3 million in $0G Tokens	Reported component of Q3 2025 asset surge
Total $0G Tokens Held	123,418,360 tokens	As of late October 2025
Valuation of $0G Treasury	Approximately $231 million	As of late October 2025
Pharmaceutical Segment Revenue (6 Months)	$16.6 million	Six months ended June 30, 2025, for Phatebo

The company's operational licenses in Europe are critical for its non-crypto revenue stream. You can't run a pharmaceutical distribution business without the proper paperwork, and Flora Growth Corp. has secured key permissions through its German subsidiaries.

• Phatebo GmbH is a leading pharmaceutical distributor based in Hilzingen, Germany.
• TruHC holds a GDP wholesale license in Hamburg, Germany.
• TruHC possesses an EU-GMP processing and production license for medical cannabis.
• TruHC also holds a narcotic license with EU-GMP certified storage.

The established Consumer Packaged Goods (CPG) portfolio provides brand recognition and existing distribution channels, even as the focus shifts. Flora Growth Corp.'s brand roster includes several names you'll recognize from the legacy cannabis space.

• The portfolio consists of JustCBD, Vessel, Melo, Haze, and Australian Vaporizers.
• JustCBD is an established CPG brand with a portfolio exceeding 350 products.
• Vessel services the U.S. and Canada with cannabis accessory and technology products.

Finally, the public listing itself is a key resource, providing regulated access to capital markets, something many private crypto-focused entities lack. Flora Growth Corp. maintains its NASDAQ public listing status under the ticker FLGC. This access was recently secured after a significant corporate action; the company regained compliance with the minimum bid price requirement on August 19, 2025, following a 1-for-39 reverse stock split effective August 3, 2025. That compliance is defintely important for institutional visibility.

Finance: draft 13-week cash view by Friday.

Flora Growth Corp. (FLGC) - Canvas Business Model: Value Propositions

Exposure to Decentralized AI: Direct investment in the high-growth 0G blockchain ecosystem

Flora Growth Corp., preparing to rebrand as ZeroStack, offers investors direct equity-based exposure to the foundational infrastructure of decentralized AI through its accumulation of $0G tokens. This strategic pivot centers on the 0G Network, which has demonstrated capability by successfully training a 107 billion parameter model using distributed clusters over low-throughput internet connections. The commitment to this ecosystem was solidified by a private placement raising over $400 million, which included a substantial allocation of $370 million in 0G tokens and $35 million in cash commitments. As of October 21, 2025, the company held 123,418,360 $0G tokens, valued at approximately $231 million in total $0G equivalents. This investment strategy is supported by key financial partners, with DeFi Development (DFDV) contributing a $22.88 million investment to the offering.

The scale of this digital asset treasury is reflected in the following metrics as of late 2025:

Metric	Value (as of Oct 21, 2025)	Contextual Data
Total $0G Held (Tokens)	123,418,360	$0G per share (ZGPS) was $23.22 (USD).
Total $0G Equivalents Held (USD)	Approx. $231 million	The convertible note issued to DFDV pays 8% annually in SOL tokens.
Q3 2025 Revenue	$9.7 million	Trailing twelve-month revenue as of Sep 30, 2025, was $57.61M.
Stock Price (as of Nov 28, 2025)	$8.26	Market Cap was $6.16M with 747K shares outstanding.

Global Pharma Access: Distribution of pharmaceutical goods in Europe (e.g., Germany)

Flora Growth Corp. provides value through its Commercial & Wholesale segment, which is heavily focused on the distribution of pharmaceutical products internationally, anchored by its subsidiary Phatebo operating in Germany. This segment contributed to the total reported revenue of $59.5 million for the fiscal year ended December 31, 2024. The value proposition here is accessing the regulated European market, specifically Germany, the largest market in Europe, through its Parallel Import (PI) Business. The market context shows significant scale, with German medical cannabis sales expected to reach $450 million in 2024, and the total European patient base estimated at 500,000, with projected growth around 500% over the next five years. The German legal cannabis market is projected to be worth an estimated $4.6 billion by 2034.

Low-Cost Cultivation: Legacy Colombian cannabis operations for wholesale supply

The company maintains a competitive edge via its legacy Colombian cultivation operations, which supply cannabis flower and derivatives for wholesale. This operation is characterized by exceptionally low production costs, reported at less than $0.06 per gram, or 6 cents per gram, of dried flower. This cost advantage is enabled by the facility's location along the equator at an altitude of 1500 meters above sea level, allowing for year-round organic growing and the potential for three or more annual crop cycles. The physical scale of the operation includes a 254-acre facility capable of producing 600 kg of dried cannabis daily. This low-cost structure supports the supply chain for international medical markets, including Germany.

Branded Wellness: Portfolio of CBD, accessories, and THC-infused beverages

The House of Brands segment delivers consumer-facing value through its portfolio, which includes CBD products, accessories, and expansion into THC-infused beverages. For the first quarter of 2025, this segment generated $5.96 million in revenue. The company leverages existing distribution channels, such as relationships with over 1,200 pharmacies. A concrete example of consumer demand was the $600,000 in sales achieved over a single Black Friday and Cyber Monday weekend across the JustCBD and Vessel brands. Furthermore, the food and beverage division, Kasa Wholefoods, has a $10 million distribution agreement with Tropi, which services 130,000 points of distribution across Colombia. The strategic direction includes capitalizing on the THC-infused beverage sector, a category management expects to disrupt traditional alcohol consumption.

Flora Growth Corp. (FLGC) - Canvas Business Model: Customer Relationships

You're looking at the customer relationships for Flora Growth Corp., which, as of late 2025, is rapidly transforming its focus from its legacy cannabis and CPG operations to a decentralized AI treasury model under the planned ZeroStack rebrand. The relationships are now bifurcated: high-touch engagement with new digital asset partners and the wind-down/management of existing B2B and CPG channels.

Investor Relations: High-touch communication for the new digital asset strategy

Investor communication has become intensely high-touch, centered around the September 19, 2025, announcement of a $401 million private investment in public equity (PIPE) offering. This deal, which included $366 million in in-kind digital assets and $35 million in cash commitments, priced shares at $25.19. The relationship management involves clearly articulating the shift to becoming the world's first publicly listed $0G treasury. Key relationship milestones included appointing BitGo as custodian for the $0G Treasury on October 16, 2025, and announcing the purchase of 880,025 $0G tokens on October 21, 2025. The ownership structure shows that institutional investors hold about 6.42% of the shares, while insiders maintain a 16.53% stake. The latest direct communication point was the Q3 2025 earnings release on November 5, 2025.

Here are some key figures related to the shareholder base and capital structure following the major funding event:

Metric	Value (as of late 2025)
Total Funding Secured (Sept 2025)	$401 million
Shares Outstanding (Partially Adjusted)	Approximately 747K (Stock Price $8.26 as of Nov 28, 2025)
Institutional Ownership Percentage	6.42%
Q3 2025 Revenue	$9.75 million

B2B Distribution: Contract-based, dedicated account management for pharma buyers

The Commercial & Wholesale segment, which includes the international pharmaceutical distribution through the subsidiary Phatebo in Germany, represents the established contract-based relationship channel. This business line is crucial as Flora Growth is a prominent distributor of pharmaceutical products in the European Union. Before the strategic pivot, the focus was on leveraging existing relationships with over 1,200 pharmacies in Germany, the largest EU market. While the Q3 2025 report signals a strategic transformation following the sale of its cannabis business, the pharmaceutical distribution arm remains a core part of the new structure. For context on the scale of this segment in the first quarter of 2025, the Commercial & Wholesale segment generated $6.87 million in revenue.

• Focus Market: Germany (largest EU market)
• Legacy Network Size: Over 1,200 pharmacies
• Q1 2025 Segment Revenue Contribution: $6.87 million
• Relationship Type: Contract-based distribution agreements

Automated E-commerce: Self-service and direct-to-consumer sales for CPG brands

The relationships here were primarily driven by the House of Brands segment, which included CPG products like those under the JustCBD and Vessel brands. This channel relied on self-service e-commerce platforms for direct-to-consumer (D2C) sales, though the Q3 2025 filings indicate a strategic shift away from the cannabis business, which heavily involved these brands. The last specific segment data point we have shows that the House of Brands contributed $5.96 million to total revenue in Q1 2025. You'd expect dedicated account management here to be minimal, favoring automated, high-volume transaction processing for brand partners and end consumers.

The shift means that while the infrastructure for automated CPG sales existed, the current relationship focus is on managing the transition or divestiture of these CPG customer relationships as the company prioritizes its digital asset treasury.

• Key Brands: JustCBD, Vessel
• Q1 2025 Segment Revenue: $5.96 million
• Primary Interaction Model: Automated Self-Service

Finance: draft the cash flow impact analysis for the divestiture of the House of Brands segment by next Tuesday.

Flora Growth Corp. (FLGC) - Canvas Business Model: Channels

You're looking at how Flora Growth Corp., now pivoting toward its ZeroStack identity, gets its value propositions to its various customer segments. The channels are definitely bifurcated now, moving from a pure CPG/pharma distribution focus to a dual structure involving digital assets.

Digital Asset Treasury: Direct investment from strategic partners and the public market

The primary channel for the new digital asset strategy involves direct investment via a private placement. Flora Growth Corp. completed a $401 million funding package in September 2025 to back its Zero Gravity (0G) coin treasury strategy, which is set to rebrand the company as ZeroStack.

This funding was structured as follows:

• $35 million in cash commitments.
• $366 million in in-kind digital assets, primarily 0G tokens valued at $3.00 per token at the time of the contribution.

The direct investment came from strategic partners like DeFi Development Corp. (DFDV), Hexstone Capital, and Carlsberg SE Asia PTE Ltd. The public market channel is maintained through the existing Nasdaq ticker, FLGC, which the company intends to keep post-rebrand.

International B2B Network: Phatebo's established pharmaceutical distribution channels

The Commercial & Wholesale segment relies heavily on the infrastructure established through the acquisition of Franchise Global Health, specifically its subsidiary Phatebo GmbH. Phatebo acts as a key channel for pharmaceutical and medical cannabis product distribution in Europe and beyond.

The reach of this established B2B channel includes:

• Servicing over 1,200+ pharmacies in Germany.
• Distributing pharmaceutical products across 28 countries.

This network is crucial for moving prescription and over-the-counter pharmaceuticals, connecting Flora Growth's cultivation capabilities to the European medical market.

E-commerce Platforms: Direct-to-consumer sales for JustCBD and Vessel brands

Direct-to-consumer (D2C) sales flow through the company's House of Brands, particularly JustCBD and Vessel, via their respective e-commerce platforms. These digital channels saw significant activity, with the brands reporting $600,000 in sales over the Black Friday and Cyber Monday weekend in 2024.

Here's a look at the recent performance context for these revenue streams:

Metric	Value (As of Late 2025/Latest Report)
Q3 2025 Revenue	$9.75 million
Q1 2025 Revenue	$11.8 million
Fiscal Year 2024 Annual Revenue	$59.51 million

The Vessel brand is specifically highlighted as having the highest gross margins and growth rates within the Flora group of companies. To enhance these D2C channels, the company integrated the Sezzle buy now, pay later (BNPL) platform for U.S. customers.

Retail Distribution: Traditional wholesale and retail points for CPG products

For its Consumer Packaged Goods (CPG) portfolio, which includes JustCBD and Vessel alongside Kasa Wholefoods Company, the channel involves traditional wholesale and retail points. This physical distribution network is extensive, though the revenue contribution relative to the new digital asset focus is less clear in the latest reports.

The established footprint for CPG distribution is reported to cover:

• All 50 states in the U.S..
• 28 countries globally.
• Over 20,000+ points of distribution worldwide.

The company's overall revenue generation from these segments in 2024 was $59.51 million. Finance: draft a memo detailing the expected Q4 2025 revenue split between the House of Brands (e-commerce/retail) and the Commercial & Wholesale segment by next Tuesday.

Flora Growth Corp. (FLGC) - Canvas Business Model: Customer Segments

You're looking at the customer base for Flora Growth Corp. (FLGC), which, as of late 2025, is clearly bifurcated between its legacy operational segments and its massive strategic pivot into the digital asset space. The numbers reflect this transition, showing significant activity in the new AI/Blockchain segment contrasting with the performance of the established consumer and wholesale arms.

AI/Blockchain Investors: Institutional and accredited investors seeking digital asset exposure

This segment represents the most significant recent financial event for Flora Growth Corp., which announced its intention to rebrand as ZeroStack following a massive capital raise centered on the 0G ecosystem. The customer base here is composed of institutional and accredited investors participating in this strategic shift. The private investment in public equity offering (PIPE) secured a total of $401 million in funding as of September 2025.

The composition of this funding highlights the nature of these investors:

• Secured over $366 million in in-kind digital assets ($0G tokens).
• Committed $35 million in cash and equivalent funds.
• The PIPE transaction priced common shares at $25.19 per share.
• The offering was led by DeFi Dev Corp. with a $22.88 million investment.
• Other key participants include Hexstone Capital, Carlsberg SE Asia, Dao5, Abstract ventures, Dispersion Capital, Blockchain Builders Fund, and Salt.

This group is betting on the company's new identity as the first and largest decentralized AI treasury company.

International Pharma Distributors: European wholesalers and pharmacies (e.g., Germany)

This group falls under the Commercial & Wholesale segment, which focuses on the distribution of pharmaceutical products internationally, largely through the German subsidiary, Phatebo. Flora Growth Corp. is a prominent distributor in the European Union and holds a medical cannabis license in Germany. The segment's revenue performance shows its contribution to the overall top line, though it experienced a decline in FY 2024.

Here's a look at the segment revenue contribution from the Q1 2025 report:

Segment	Q1 2025 Revenue (USD)
Commercial & Wholesale	$6.87 million

The company also launched a Parallel Import (PI) Business initially focusing on Germany, the largest market in Europe.

Wellness Consumers: Buyers of CBD, nutraceuticals, and cannabis accessories

These customers are served through the House of Brands pillar, which encompasses various consumer packaged goods. This category includes buyers of CBD products, nutraceuticals, personal care items, and cannabis accessories. The performance of this segment has been variable; lower sales at JustCBD contributed to the overall revenue decrease in Fiscal Year 2024.

The revenue generated by the House of Brands in Q1 2025 was:

Segment	Q1 2025 Revenue (USD)
House of Brands	$5.96 million

The TTM revenue ending September 30, 2025, for Flora Growth Corp. overall was $57.61 million.

THC Beverage Market: Consumers of the new Melo brand in legal US states

This customer group is targeted through the House of Brands, which includes food and beverage products. The company has been involved in the US market, serving all 50 states. However, specific revenue or sales figures directly attributable to the Melo brand for the latest reporting periods (Q2 2025 or Q3 2025) were not explicitly detailed in the available financial summaries, which focused more on the overall segment performance and the AI pivot.

For context on the overall company performance in the latest reported quarter (Q3 2025):

• Q3 2025 Revenue was $9.75 million.
• Q3 2025 Revenue missed estimates by 22.14%.
• Q3 2025 Net Loss was $6.7 million.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

Flora Growth Corp. (FLGC) - Canvas Business Model: Cost Structure

You're looking at the cost side of Flora Growth Corp. (FLGC), now rebranding as ZeroStack, as they pivot hard into the decentralized AI treasury space. This cost structure reflects a mix of traditional operational spending and significant new digital asset investment costs. It's definitely a shift from their prior focus.

Digital Asset Acquisition

The most notable cost driver in the near term is the acquisition of $0G Tokens to build out the decentralized AI treasury. This isn't a traditional expense but a strategic capital outlay. As of October 2025, Flora Growth Corp. had made significant purchases:

• October 8, 2025 purchase: 772,200 $0G tokens at an average price of $2.59 per token.
• October 21, 2025 purchase: 880,025 $0G tokens at an average price of $2.27 per token.

The total position as of October 21, 2025, stood at 123,418,360 $0G tokens, reported as approximately $231 million in $0G equivalents, based on a $1.87 per-token value on October 20, 2025. These tokens are intended for long-term holding and staking to generate native yield within the $0G ecosystem.

Operating Expenses

For the quarter ended September 30, 2025, the reported total operating expense was $3.61 million. This is a key figure for understanding the burn rate outside of the digital asset strategy. For context on the trailing twelve months (TTM) ending September 2025, total operating expenses were $26.58 million.

Here's a quick look at the breakdown of operating expenses reported on a TTM basis ending September 2025 (figures in millions USD):

Expense Category	TTM (Sep '25)
Selling, General & Admin	$20.5
Research & Development	$0.42
Other Operating Expenses	$1.25
Total Operating Expenses	$26.58

Consulting/Management

Specific line items for consulting and executive compensation are typically bundled within Selling, General & Administrative expenses, which totaled $20.5 million on a TTM basis ending September 2025. The company's strategic pivot and fundraising activities suggest ongoing, significant management costs associated with this transformation, though a precise dollar amount for just consulting/management is not explicitly itemized in the latest available data points.

Distribution & Logistics

Costs related to global pharmaceutical and CPG supply chains are embedded in the Cost of Revenue and Operating Expenses, reflecting the two core segments: Commercial & Wholesale and House of Brands. The Commercial & Wholesale segment involves international pharmaceutical distribution, primarily through its subsidiary Phatebo operating in Germany. The Cost of Revenue for the TTM ending September 2025 was $45.53 million.

Share-Based Compensation

Share-based compensation represents a significant non-cash cost, often used for executive incentives. While the most recent quarterly data is not explicitly provided for Q3 2025, historical and partial 2025 figures show this component:

• Annual Share-Based Compensation for fiscal year 2022 was $3.4M.
• For the first quarter of 2025 (Q1 2025), the amount was $0.172 million (172 in the source data).

Finance: draft 13-week cash view by Friday.

Flora Growth Corp. (FLGC) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Flora Growth Corp.'s business model as of late 2025, and honestly, it's a story of two very different businesses operating under one ticker symbol.

The operational revenue still comes from the established segments, but the non-operational, asset-based value is now a massive component. The company is defintely signaling a rebrand to ZeroStack, positioning itself as an AI-focused entity, which is an existential shift from its cannabis roots. This shift is reflected in how the revenue streams are now categorized.

The core operational revenue streams are:

• Pharmaceutical Sales: Operational revenue from Phatebo's international distribution, which operates in Germany.
• CPG/Brand Sales: Revenue from JustCBD, Vessel, and Melo products, falling under the House of Brands segment.

The non-operational, asset-based stream is now the most significant in terms of reported asset value:

• Digital Asset Value: Non-operational value appreciation from the $0G token treasury. As of late October 2025, the company held 123,418,360 $0G tokens, valued at approximately $231 million.

Here's a quick look at the key top-line revenue figures reported around the end of the third quarter of 2025:

Metric	Amount
Total Revenue (TTM Sep 30, 2025)	$57.61 million
Q3 2025 Revenue	$9.7 million

To be fair, the operational revenue from the CPG and pharmaceutical sides has seen pressure. For example, the Q3 2025 revenue of $9.7 million was below some analyst estimates of $12.50 million. Still, the company intends to hold the $0G tokens for the long-term and expects to continue to accumulate more as part of its treasury strategy.

The structure of the revenue-generating operations includes:

• Phatebo: Focuses on business-to-business sales of branded pharmaceuticals internationally.
• JustCBD: Generates revenue from over 350 products across direct-to-consumer and wholesale channels.
• Vessel: Services the US and Canada with cannabis accessory and technology products.

Finance: draft the cash flow impact of the $0G token valuation changes for the next board meeting by Monday.