IM Cannabis Corp. Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

INVENTORIES

INVENTORIES

6 Months Ended

Jun. 30, 2022

Classes of current inventories [abstract]

INVENTORIES [Text Block]

NOTE 5:-

INVENTORIES

The following is a breakdown of inventory as of June 30, 2022:

	June 30, 2022
	Capitalized costs		Fair valuation adjustment, net		Carrying value
Work in progress:
Bulk cannabis	$	15,728	$	-	$	15,728
Other products		973		-		973
Finished goods:
Packaged dried cannabis		8,329		-		8,329
Other cannabis products		1,199		-		1,199
Other products		418		-		418

Balance as of June 30, 2022	$	26,647	$	-	$	26,647

The following is a breakdown of inventory as of December 31, 2021:

	December 31, 2021
	Capitalized costs		Fair valuation adjustment, net		Carrying value
Work in progress:
Bulk cannabis	$	14,113	$	3,336	$	17,449
Other cannabis products		1,074		-		1,074
Finished goods:
Packaged dried cannabis		8,974		270		9,244
Other cannabis products		744		-		744
Other products		880		-		880

Balance as of December 31, 2021	$	25,785	$	3,606	$	29,391

During the six months ended June 30, 2022 and 2021, inventory expensed to cost of revenue of cannabis products was $35,970 and $12,219, respectively, which included $2,517 and $5,130 of non-cash expense, respectively, related to the changes in fair value of inventory sold.

During the three months ended June 30, 2022 and 2021, inventory expensed to cost of revenue of cannabis products was $15,997 and $7,606, respectively, which included $1,654 and $3,188 of non-cash expense, respectively, related to the changes in fair value of inventory sold.

Cost of revenues in the six and three months ended June 30, 2022 and 2021, also include production overhead not allocated to costs of inventories produced and recognized as an expense as incurred.