6. Inventory

Inventory is comprised of:


	Capitalized		Fair value		May 31,		May 31,
	cost		adjustment		2019		2018
Harvested cannabis	$	10,039	$	13,214	$	23,253	$	12,331
Harvested cannabis trim		2,830		2,959		5,789		2,277
Cannabis oil		11,300		8,301		19,601		6,578
Softgel capsules		422		342		764		—
Distribution inventory		32,944		—		32,944		—
Other inventory items		9,178		—		9,178		964
	$	66,713	$	24,816	$	91,529	$	22,150

During the year ended May 31, 2019, the Company recorded $35,548 (2018 - $8,692) of production costs. Included in production costs for the year ended May 31, 2019 is $1,682 of cannabis oil conversion costs (2018 - $241), $142 related to the cost of accessories (2018 - $236), and amortization of $4,133 (2018 - $1,715). The Company also included $4,723 of amortization which remains in inventory for the year ended May 31, 2019 (2018 - $978) related to capital assets utilized in production. During the year ended May 31, 2019, the Company expensed $27,724 (2018 –$10,327) of fair value adjustments on the growth its biological assets included in inventory sold.

The Company holds 6,309.9 kilograms of harvested cannabis (May 31, 2018 – 3,221.3 kgs), 1,908.0 kilograms of harvested cannabis trim (May 31, 2018 – 702.0 kgs) and 28,458.1 litres of cannabis oils or 4,949.2 kilograms equivalent in various stages of production (May 31, 2018 – 7,724.7 litres or 1,716.6 kilograms equivalent), 982.0 litres of cannabis oils used in softgel capsules or 218.2 kilograms equivalent at May 31, 2019 (May 31, 2018 – nil).