Annual reports filed by certain Canadian issuers pursuant to Section 15(d) and Rule 15d-4

INVENTORY

v3.22.1
INVENTORY
12 Months Ended
Dec. 31, 2021
INVENTORY  
INVENTORY

5. INVENTORY

The Company’s inventory includes the following:

    

December 31, 

    

December 31, 

2021

2020

Materials, supplies, and packaging

$

12,805,219

$

3,530,275

Work in process

56,857,874

10,454,491

Finished goods

 

23,125,175

 

8,934,839

Incremental costs to acquire cannabis inventory in a business combination, net

574,717

Total inventory, net

$

93,362,985

$

22,919,605

Inventory reserve as of December 31, 2021 and 2020 was $2,267,192 and $nil, respectively.

Amount of inventory included in cost of goods sold during the years ended December 31, 2021 and 2020, was $156,063,649 and $62,205,497, respectively. There were no inventory write-downs taken during the years ended.

For the years ended December 31, 2021 and 2020, $43,863,688 and $nil, respectively, of expenses relating to the incremental costs to acquire cannabis inventory in a business combination is recognized in cost of sales on the statements of operations. This relates to the one-time adjustment of cannabis inventory from acquiree historical cost to fair value as part of the purchase price allocation.