Gross profit of $11.1 Million for 2020 for Auxly !!! Auxly realized a gross profit of $11.1 million for 2020, compared to a gross loss of $3.7 million in 2019. Cannabis gross profits for the year ended December 31, 2020 were $9.7 million resulting in a 21% margin (27% before impairment and fair value adjustments), with research and other gross profits of $1.4 million and a related margin of 34%. Impairment of inventory of $3.4 million was $0.2 million greater than 2019 and relates primarily to the charges related to the cessation of Inverell operations and approximately $1.1 million of aged Cannabis 2.0 Products associated with the SKU rationalization undertaken in the third quarter of 2020.
Auxly realized a gross loss of $3.7 million for the year ended December 31, 2019 following fair value adjustments. The gross loss for the year ended December 31, 2019 was primarily comprised of inventory related adjustments of approximately $4.1 million (a $1.8 million impairment of inventory associated with final Inverell biomass product qualification and grading, a $1.4 million impairment of inventory associated with spoilage and obsolescence in mass production of Cannabis 2.0 Products at Dosecann, a $0.1 million realized fair value loss on other inventories, and a $0.8 million unrealized fair value loss on biological asset transformation), partially offset by KGK revenues less expenses of $0.5 million and Cannabis Product revenues less expenses of $0.1 million, net of $0.2 million of excise taxes.