8 unchanged sentences
The COVID-19 pandemic has severely restricted the level of economic activity around the world and in all countries in which we or our affiliates operate (including the U.S., Canada, Australia, Colombia, and Israel).
−Removed: In response to the COVID-19 pandemic the governments of many countries, states, cities and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations and advising or requiring individuals to limit or forego their time outside of their homes.
−Removed: Temporary closures of businesses have been ordered and numerous other businesses have temporarily closed voluntarily.
+Added: In response to the COVID-19 pandemic the governments of many countries, states, cities and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations, ordering temporary closures of businesses and advising or requiring individuals to limit or forego their time outside of their homes.
+Added: Numerous businesses have temporarily closed voluntarily or closed permanently.
+Added: Although some preventative or protective actions have been eased or lifted in varying degrees by different governments of various countries, states and cities, the continued spread of COVID-19 and increase in infection rates have caused, and may continue to cause, some jurisdictions to reinstitute such actions, including rolling back reopening plans.
The duration and ultimate impact of the COVID-19 pandemic, including the extent to which the virus may re-emerge following the current outbreak, are highly uncertain.
−Removed: The effects of the COVID-19 pandemic had a material impact on the growth of revenues and sales during the six months ended June 30, 2020 related to the Company’s U.S.
−Removed: With the U.S.
−Removed: currently in an economic contraction and a significant number of temporary closures impacting many of the Company’s customers’ stores, the U.S.
+Added: The effects of the COVID-19 pandemic had a material impact on the growth of revenues and sales during the nine months ended September 30, 2020 related to the Company’s U.S.
+Added: With segments of the U.S.
+Added: economy currently in an economic contraction, and a significant number of the Company’s customers’ stores continuing to be challenged by remaining temporarily closed or closing permanently, the U.S.
segment is experiencing slower than expected revenue growth.
5 unchanged sentences
We have experienced minor delays in shipping and the increased global demand on shipping and transport services, in addition to customs and border control policies put in place in response to COVID-19 that require shipments to undergo quarantine periods, may cause us to experience delays or increased costs in the future which could impact our ability to obtain materials or deliver our products in a timely manner, could otherwise disrupt our operations and could have an adverse effect on our business, financial condition and results of operations.
−Removed: In various provinces in Canada, cannabis retailers have been reducing opening hours, staff onsite and reducing the number of customers allowed in-store for cannabis retailers that continue to be open.
+Added: In various provinces in Canada, cannabis retailers have been reducing opening hours, staff onsite and the number of customers allowed in-store for cannabis retailers that continue to be open.
Further, retailers of our products in the U.S.
23 unchanged sentences
Based on the forecast of the U.S.
−Removed: segment at this time, there was an indication that fair value of the goodwill and intangible asset may not exceed carrying value.
+Added: segment at that time, there was an indication that fair value of the goodwill and intangible asset may not exceed carrying value.
In the second quarter of 2020, we performed an interim impairment test due to the triggering events noted above.
The Company incurred $35 million of impairment charges on the U.S.
−Removed: reporting unit and $5 million on the Lord Jones ™ brand.
+Added: reporting unit and $5 million on the Lord Jones ™ brand during the second quarter of 2020.
It is possible that estimates in the Company’s financial statements will continue to change in the near-term as a result of the COVID-19 pandemic and the effect of any such changes could be material, which could result in, among other things, further impairment of goodwill and intangible assets.
We have been and may in the future be required to write down inventory due to downward pressure on market prices, which could have a material adverse effect on our results of operations or financial position.
−Removed: At the end of each reporting period, management performs an assessment of inventory obsolescence to measure inventory at the lower of cost and net realizable value.
+Added: At the end of each reporting period, management performs an assessment of inventory obsolescence, prices and demand to measure inventory at the lower of cost and net realizable value.
Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.
1 unchanged sentence
As a result of this assessment, inventory write-downs may occur from period to period.
−Removed: Due to continued pricing pressures in the Canadian marketplace, we may incur further inventory write-downs in the future.We have had a series of inventory write-downs due to price compression in the cannabis market.
+Added: Due to continued pricing pressures in the Canadian marketplace, we may incur further inventory write-downs in the future.
+Added: We have had a series of inventory write-downs due to price compression in the cannabis market.
We expect these write-downs to continue as pricing pressures remain elevated.
4 unchanged sentences
Effective internal controls are necessary for us to provide timely, reliable and accurate financial reports, identify and proactively correct any deficiencies, material weaknesses or fraud and meet our reporting obligations.
−Removed: As disclosed in Part I, Item 4, we have commenced remediation efforts to improve our internal control over financial reporting.
+Added: As disclosed in Part I, Item 4, we have been conducting remediation efforts to improve our internal control over financial reporting.
Remediation efforts place a significant burden on management and add increased pressure on our financial reporting resources and processes.
−Removed: If we are unable to successfully remediate our existing material weaknesses, or any additional material weaknesses in our internal control over financial reporting are identified, in a timely manner, the accuracy of our financial reporting and our ability to timely file with the SEC may be adversely impacted.
+Added: If we are unable to successfully remediate our existing material weaknesses in a timely manner, or any additional material weaknesses in our internal control over financial reporting are identified, the accuracy of our financial reporting and our ability to timely file with the SEC may be adversely impacted.
In addition, if our remedial efforts are insufficient, or if additional material weaknesses or significant deficiencies in our internal controls occur in the future, we could be required to further restate our financial results, which could materially and adversely affect our business, results of operations and financial condition, restrict our ability to access the capital markets, require us to expend significant resources to correct the material weaknesses or deficiencies, subject us to regulatory investigations and penalties, harm our reputation, cause a decline in investor confidence or otherwise cause a decline in our stock price.
+Added: If we are a passive foreign investment company for U.S.
+Added: federal income tax purposes in any year, certain adverse tax rules could apply to U.S.
+Added: Holders of our common shares
+Added: As previously disclosed, we will be classified as a passive foreign investment company (“PFIC”) for any taxable year for U.S.
+Added: federal income tax purposes if for a taxable year, (i) 75% or more of our gross income is passive income, or (ii) 50% or more of the value of our assets either produce passive income or are held for the production of passive income, based on the quarterly average of the fair market value of such assets.
+Added: The determination of PFIC status depends on interpretive rules and computational conventions that are often unclear.
+Added: In particular, in making our determination, we are relying on the application of certain “look-through” rules, taking into account certain intercompany items.
+Added: There is, however, no direct legal authority applying these look-through rules to our particular situation (including whether they apply and, if so, to what extent, and how they apply to intercompany items).
+Added: Likewise, in light of the volatility of our common share price, we intend to take the position that the spot trading price of our stock at each quarter end, as adjusted by liabilities, does not dictate the determination of the fair market value of our assets.
+Added: Based on current business plans and financial expectations, an independent valuation report in respect of our assets, and the application of certain look-through rules (including the taking into account of certain intercompany items), we do not expect to be a PFIC for the current taxable year ending December 31, 2020 and do not expect to become a PFIC in the foreseeable future.
+Added: However, PFIC status is determined annually and depends upon the composition of our gross income and assets, both of which are subject to change.
+Added: Moreover, there can be no assurance that the IRS or a court will agree with our interpretation of fair market value or its computation, or with our interpretation of the PFIC rules (including the “look-through” rules and the scope of their application, including in respect of intercompany items).
+Added: Therefore, there can be no assurance as to our PFIC status for the current taxable year or for future taxable years, nor any assurance that the IRS or a court will agree with our determination of our PFIC status.
Unregistered Sales of Equity Securities and Use of Proceeds.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.