Checking out these 10-Qs, I see a gross margin of 186% as the company had netted cost of sales vs. the unrealized gain in fair value of biological assets AKA their plants growing. Can anyone tell me how do you find out the “true” margins of something like this?
I’ve taken screenshots of the IS, MD&A and inventory notes for reference: http://imgur.com/a/UhJtu
I would remove the unrealized gain from the gross margin calculation. This is similar to when an oil refiner has an unrealized gain or loss on their inventory. Over the long run they should even each other out.