Quantitative and Qualitative Disclosures About Market Risk
−Removed: The Company’s financial assets include cash and cash equivalents, accounts receivables, notes receivable, and SBH Purchase Option.
−Removed: Financial liabilities include accounts payable and accrued and other current liabilities, cultivation liabilities, notes payable, lease obligations and warrant financial liabilities.
+Added: The Company’s financial assets include cash and cash equivalents, accounts receivables, notes receivable, and SBH purchase option, and other derivative assets.
+Added: Financial liabilities include accounts payable and accrued and other current liabilities, cultivation liabilities, notes payable, lease obligations, convertible debenture, and derivative liability.
The carrying amounts of current assets and liabilities approximate their fair value due to their short period to maturity.
−Removed: The derivative financial liabilities are measured at fair value through profit or loss ("FVTPL").
+Added: The derivative financial assets and liabilities are measured at fair value through profit or loss ("FVTPL").
The fair value measurement of the Company’s financial and non-financial assets and liabilities utilizes market observable inputs and data as far as possible.
7 unchanged sentences
The Company's cash and cash equivalents are subject to a level 1 valuation.
−Removed: The Company’s warrant financial liabilities are subject to a level 2 valuation.
−Removed: The basis of the valuation of the warrant financial liabilities is fair value.
−Removed: The financial liabilities are revalued each period using the Black-Scholes valuation model and quoted market rates.
−Removed: This valuation technique maximizes the use of observable market data where it is available and relies as little as possible on entity specific estimates.
+Added: The Company’s derivative liabilities are subject to a level 2 valuation.
+Added: The Company’s SBH purchase option, other derivative assets, and convertible debenture are subject to a level 3 valuation.
+Added: The basis of the valuation of the derivative financial assets and liabilities are fair value.
+Added: Refer to the "fair value" note for additional analysis of fair value instruments.
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the Company’s income or the value of it holding financial instruments.
1 unchanged sentence
The transactions are primarily denominated in USD, the functional currency.
−Removed: As a result of the acquisition of Abacus, the Company has a wholly-owned subsidiary that transacts in the New Israeli Sheckel (“NIS”).
−Removed: Since the acquisition on June 11, 2020, the impact of foreign currency exchange is immaterial to the consolidated financial statements.
−Removed: Therefore, the Company does not have material exposure to foreign exchange rate risk.
+Added: In November 11, 2022, the Company entered into a subscription agreement with BAT Group for $56.8 million convertible debenture.
+Added: The debenture was denominated in Canadian Dollars ("CAD" or "C$") C$75.3 million per the subscription agreement and translated to USD on the transaction date.
+Added: The Company remeasures the debenture and the derivatives associated with the debenture at each balance sheet date using the CAD to USD exchange rate as of that balance sheet date.
+Added: The Company recognizes the resulting foreign currency gain or loss within the statement of operation during the period.
+Added: See additional discussion of foreign currency translation related to the convertible debenture within note "Debt".
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to change in market interest rates.
1 unchanged sentence
Financial assets and financial liabilities with variable interest rates expose the Company to cash flow interest rate risk.
−Removed: The Company does not have any debt instruments outstanding with variable interest rates at December 31, 2021 (note 8).
+Added: The Company does not have any debt instruments outstanding with variable interest rates at December 31, 2022 and December 31, 2021(see note "Debt").
Changes in market interest rates cause the fair value of long-term debt with fixed interest rates to fluctuate but does not impact net income as the Company records debt at amortized cost and the carrying value does not change as interest rates change.
9 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.