This is too much fun.Subsequent Event Subsequent to year end, $1,000,000 was advanced to the Company by a director. The loan bears interest at 15%, is secured by certain inventory of the Company and is due in full on or before November 15, 2023.
Below is the inventory description, and further below are a few of the legal regulations pertaining to physical ownership in Canada.
The genius of management and the board. They entered into an agreement secured by inventory that they cannot legally sell or transfer to the individual director to act as security according to my read of the possession regulations. How does the company come up with the million etc when this is called? and the GST liability?
I have no clue. How the board and the auditors let this occur? I again have no clue.
As at August 31, 2022, the Company’s inventory consisted of approximately 1,439,000 grams of dried cannabis awaiting release for sale (2021 – 443,000). The cost of inventory is recognized as a separate asset upon harvest and subsequently included in cost of sales when sold. For the year ended August 31, 2022, cost of sales recognized was representative of approximately 1,013,000 grams (2021 – 2,076,000). During the year ended August 31, 2022, the Company recognized an impairment of $1,437,000 related to its harvested cannabis inventory due to the capitalized costs exceeding the estimated net realizable value of that inventory. The impairment loss has been included in the cost of sales on the consolidated statements of comprehensive income (loss).
And the quick search of legal rules re how much you can own.
Individuals who have attained the legal age of possession in their province can legally possess the following:
- Up-to 30 grams of legal cannabis, dried, or the following equivalents:
- 150 grams of fresh cannabis
- 450 grams of edible product
- 17,100 grams of liquid product
- 5 grams of concentrates (solid or liquid)
- 30 cannabis plant seeds
- Share up-to 30 grams with other adults.
- Purchase fresh and dried cannabis, and cannabis oils from authorized provincial or territorial retailers.
- Grow for personal use up-to 4 plants per residence (not per person) from licensed seeds or seedlings.
- Make cannabis products, such as food and drinks, at home as long as organic solvents are not used to create concentrated products.Penalties for possession over the legal amount
Penalties for possession over the legal amount
Under the Act, the penalty for possession of cannabis in public over the limit is:
- tickets (fines) for small amounts
- up-to 5 years in prison for large amounts