Thankfully, we’re not on the cultivation side of things, so they’re not a huge issue for us. Though I think those kind of things are accounted for through measurement and process inspections and as such don’t fall under “unexplained.”
Losses are tracked on the cannabinoid side of things, so if you’ve got a process that consistently gives you 75% yield (for example mg THC in biomass to mg of THC in distillate) and then you’re dumb enough to have a repeat of that process give you say 25% yield because some went out the back door (or 125% because you brought some in), the regulator might come looking for that 50%.
So, theoretically, small amounts of variance are not an issue, but big ones are.
With cannabinoids in the legal market commanding 2-10x or more than their black market versions, the general thing they watch for is yields that mysteriously increase rather than when some that go missing though. I think two operators have now had their licenses pulled by shifting black market material into the legal supply. I guess when you can buy a pound for well under $800 and it’s selling in the legal market for at least $5/g wholesale, the temptation is pretty big.