| Disclosure of reconciliation of changes in biological assets |
The changes in the carrying value of biological assets as at August 31, 2022 and August 31, 2021 are as follows:
| | | | | | | | | | | | | | | | | | | CAPITALIZED COST | | BIOLOGICAL ASSET FAIR VALUE ADJUSTMENT | | AMOUNT | Balance, August 31, 2020 | $ | 4,779 | | | $ | 615 | | | $ | 5,394 | | | | | | | | | Unrealized gain on change in fair value of biological assets | — | | | 31,726 | | | 31,726 | | | Production costs capitalized | 34,218 | | | — | | | 34,218 | | | Transfer to inventory upon harvest | (33,232) | | | (25,984) | | | (59,216) | | Balance, August 31, 2021 | $ | 5,765 | | | $ | 6,357 | | | $ | 12,122 | | Acquisition through business combination (Note 27) | 37 | | | 146 | | | 183 | | | Unrealized gain on changes in fair value of biological assets | — | | | 40,001 | | | 40,001 | | | Production costs capitalized | 48,502 | | | — | | | 48,502 | | | Transfer to inventory upon harvest | (45,551) | | | (37,289) | | | (82,840) | | Balance, August 31, 2022 | $ | 8,753 | | | $ | 9,215 | | | $ | 17,968 | |
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| Disclosure of detailed information about unobservable inputs and their impact on fair value |
Management believes the most significant unobservable inputs and their impact on fair value are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | SIGNIFICANT INPUTS & | WEIGHTED AVERAGE INPUT | | | | EFFECT ON FAIR VALUE | | ASSUMPTIONS | August 31, 2022 | | August 31, 2021 | | SENSITIVITY | | August 31, 2022 | | August 31, 2021 | Average selling price per gram | $ | 1.49 | | | $ | 2.54 | | | Increase or decrease by 10% per gram | | $ | 1,766 | | | $ | 1,212 | | Expected average yield per plant | 132 | grams | | 129 | grams | | Increase or decrease by 10 grams | | $ | 1,339 | | | $ | 937 | |
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