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, and other derivative assets.
+Added: The Company’s financial assets include cash and cash equivalents, accounts receivables, notes receivable, investments in unconsolidated entities, an SBH purchase option, and other derivative assets.
Financial liabilities include accounts payable and accrued and other current liabilities, cultivation liabilities, notes payable, lease obligations, convertible debenture, and derivative liability.
5 unchanged sentences
Observable direct or indirect inputs other than Level 1 inputs;
−Removed: Unobservable inputs (i.e.
−Removed: not derived from market data).
+Added: Unobservable inputs (i.e., not derived from market data).
The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on the fair value measurement of the item.
2 unchanged sentences
The Company’s derivative liabilities are subject to a level 2 valuation.
−Removed: The Company’s SBH purchase option, other derivative assets, and convertible debenture are subject to a level 3 valuation.
−Removed: The basis of the valuation of the derivative financial assets and liabilities are fair value.
−Removed: Refer to the "fair value" note for additional analysis of fair value instruments.
+Added: The Company’s SBH purchase option, other derivative assets, and investment in unconsolidated entity are subject to a level 3 valuation.
+Added: The basis of the valuation of the derivative financial assets and liabilities, as well as the investment in an unconsolidated entity, are fair value.
+Added: Refer to the "Fair Value Measurements" 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: In November 11, 2022, the Company entered into a subscription agreement with BAT Group for $56.8 million convertible debenture.
+Added: On November 11, 2022, the Company entered into a subscription agreement with BAT Group for $56.8 million convertible debenture.
The debenture was denominated in Canadian Dollars ("CAD" or "C$") C$75.3 million per the subscription agreement and translated to USD on the transaction date.
2 unchanged sentences
See additional discussion of foreign currency translation related to the convertible debenture within note "Debt".
−Removed: 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.
+Added: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.
The Company’s accounts receivable and accounts payable are non-interest bearing.
1 unchanged sentence
The Company does not have any debt instruments outstanding with variable interest rates at December 31, 2023 and December 31, 2022 (see note "Debt").
−Removed: 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.
+Added: Changes in market interest rates cause the fair value of long-term debt with fixed interest rates to fluctuate;
+Added: however, does not impact net income as the Company records debt at amortized cost, and the carrying value does not change as interest rates change.
Credit risk refers to the risk that a counterparty will default on its contractual obligation, resulting in financial loss to the Company.
4 unchanged sentences
Liquidity risk is the risk that the Company will not be able to meet its obligations as they become due.
−Removed: The Company manages liquidity risk by evaluating working capital and forecasting long-term financial liabilities as well as forecast cash inflows and outflows from business operations.
+Added: The Company manages liquidity risk by evaluating working capital and forecasting long-term financial liabilities, as well as forecasting cash inflows and outflows from business operations.
The Company’s cash and cash equivalents balances at December 31, 2023, and December 31, 2022, were $47,820 and $66,963, respectively.
Net working capital at December 31, 2023, and December 31, 2022, was $54,526 and $82,334, respectively.
+Added: * * * * * * *
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.