Here are the Changes madeEverything here is what has been added
Nothing as been deleted or changed, including the Numbers $ that make up the financials.
(e) Biological assets
While the Company’s biological assets are within the scope of IAS 41 Agriculture, the direct and indirect costs of biological assets are determined using an approach similar to the capitalization criteria outlined in IAS 2 Inventories. They include the direct cost of seeds and growing materials as well as other direct costs such as utilities and supplies used in the growing process. Indirect labour for individuals involved in the growing and quality control process is also included, as well as depreciation on production equipment and overhead costs. Direct and indirect costs of biological assets are capitalized based on standard costing as they are incurred and they are all subsequently recorded within the line item ‘cost of sales’ in profit or loss in the period that the related product is sold. The variance between amount capitalized based on standard costing and actual costs is recorded within the line item ‘cost of sales’ in profit or loss in the period that related costs are incurred. Unrealized fair value gains/losses on growth of biological assets are recorded in a separate line on the face of the consolidated statements of comprehensive loss. Biological assets are measured at their fair value less costs to sell on the consolidated statements of financial position.
(f) Inventory
The direct and indirect costs of inventory initially include the fair value of the biological asset at the time of harvest. They also include subsequent costs such as materials, labour and depreciation expense on equipment involved in packaging, labeling and inspection. All direct and indirect costs related to inventory are capitalized as they are incurred and they are subsequently recorded within ‘cost of sales’ in profit or loss at the time hemp is sold, except for realized fair value amounts included in inventory sold which are recorded as a separate line on the face of the consolidated statements of comprehensive loss. Inventory is measured at lower of cost or net realizable value on the consolidated statements of financial position.
8. Biological Assets
The Company measures its biological assets at their fair value less costs to sell. This is determined using a model which estimates the expected harvest yield in grams for plants currently being cultivated, and then adjusts that amount for the expected selling price per gram and also for any additional costs to be incurred, such as post-harvest costs.
The following significant unobservable inputs, all of which are classified as level 3 on the fair value hierarchy, were used by management as part of this model:
• Estimated selling price – calculated as the weighted average historical selling price for all strains of hemp sold by the Company, which is expected to approximate future selling prices
• Stage of growth – represents the weighted average number of weeks out of the 15 week growing cycle that biological assets have reached as of the measurement date
• Yield by plant – represents the expected number of grams of finished hemp inventory which are expected to be obtained from each harvested hemp plant
• Wastage – represents the weighted average percentage of biological assets which are expected to fail to mature into hemp plants that can be harvested
• Post-harvest costs – calculated as the cost per gram of harvested hemp to complete the sale of hemp plants post harvest, consisting of the cost of direct and indirect materials and labour related to labelling and packaging
The following table quantifies each significant unobservable input, and also provides the impact a 10% increase/decrease in each input would have on the fair value of biological assets.
Estimated selling price $0.45 per gram
Stage of Growth 9 weeks
Average yeild by blant 115 grams
Wastage 1%
Post- Harvest Cost $0.03 per Gram
The Company accretes fair value on a straight line basis according to stage of growth. As a result, a hemp plant that is 50% through its 15 week growing cycle would be ascribed approximately 50% of its harvest date expected fair value (subject to wastage adjustments).
deposit advanced to Kings Garden under the terms of this LOI has been written off and is recorded
*We all knew that was going to happen*
Partnership agreement with Avicanna Inc
*These are some requirments that i was wanting*
• Year 2: 50,000 units
• Year 3: 100,000 units
• Year 4: 120,000 units
• Year 5: 160,000 units