AURORA CANNABIS INC
For the period ended Mar 31, 2026. Filed Jun 11, 2026.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2026 · Filed Jun 11, 2026
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Contents
EX-99.5 · (b)Commitments
(b)Commitments
In the normal course of business, the Company is obligated to make future payments, including contractual obligations and non-cancellable commitments. The Company has various lease commitments related to office space, production equipment, vehicles, facilities and warehouses expiring up to June 2033. The Company has certain leases with optional renewal terms that the Company may exercise at its option.
In addition to lease liability commitments disclosed in (Note 11) the Company has capital commitments payable over the next five years (Note 22(b).
Note 21 Fair Value of Financial Instruments
| Accounting PolicyFair Value HierarchyFinancial instruments recorded at fair value are classified using a hierarchy that categorizes into three levels the inputs to valuation techniques used to measure fair value. The three levels of hierarchy are:Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; andLevel 3 - Inputs for the asset or liability that are not based on observable market data.The individual fair values attributed to the different components of a financing transaction, notably marketable securities, derivative financial instruments, convertible debentures and loans, are determined using valuation techniques. The Company uses judgment to select the methods used to make certain assumptions and derive estimates. Significant judgment is also used when attributing fair values to each component of a transaction upon initial recognition, measuring fair values for certain instruments on a recurring basis and disclosing the fair values of financial instruments subsequently carried at amortized cost. These valuation estimates could be significantly different because of the use of judgment and the inherent uncertainty in estimating the fair value of instruments that are not quoted or observable in an active market.Financial instruments are measured either at fair value through profit or loss (“FVTPL”) or at amortized cost. The table below lists the valuation methods used to determine fair value of each financial instrument. | |
| Fair Value Method | |
| Financial Instruments Measured at Fair Value | |
| Short-term investments | Closing market price or net asset value of the investment funds as of the measurement date (Level 2) |
| Preferred shares | Scenario-based discounted cash flow methodology (Level 3) |
| Royalty receivable | Monte Carlo simulation (Level 3) |
| Derivative liabilities | Closing market price (Level 1) or Black-Scholes, Binomial, Monte-Carlo & FINCAD valuation model (Level 2 or 3) |
| Financial Instruments Measured at Amortized Cost | |
| Cash and cash equivalents, restricted cash, accounts receivable | Carrying amount (approximates fair value due to short-term nature) |
| Accounts payable and accrued liabilities | Carrying amount (approximates fair value due to short-term nature) |
| Lease receivable, lease liabilities, and other long term liabilities | Carrying value discounted at the effective interest rate approximates fair value |
The carrying values of the financial instruments as at March 31, 2026 are summarized in the following table:
| Amortized cost | FVTPL | Total | |
|---|---|---|---|
| $ | $ | $ | |
| Financial Assets | |||
| Cash and cash equivalents | 64,690 | — | 64,690 |
| Restricted cash | 47,791 | — | 47,791 |
| Short-term investments | — | 52,213 | 52,213 |
| Accounts receivable, excluding sales taxes and lease receivable | 42,990 | — | 42,990 |
| Lease receivable | 5,253 | — | 5,253 |
| Preferred shares | — | 10,560 | 10,560 |
| Royalty receivable | — | 1,553 | 1,553 |
| Financial Liabilities | |||
| Accounts payable and accrued liabilities | 50,592 | — | 50,592 |
| Lease liabilities | 23,859 | — | 23,859 |
| Derivative liabilities | — | 3,697 | 3,697 |
| Other long term liabilities | 498 | — | 498 |
The following is a summary of financial instruments measured at fair value segregated based on the various levels of inputs:
| Note | Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|---|
| $ · $ · $ · $ | |||||
| Short-term investments | — | 52,213 | — | 52,213 | |
| Preferred shares | 6(b) | — | — | 10,560 | 10,560 |
| Royalty receivable | 6(b) | — | — | 1,553 | 1,553 |
| Other long term liability | 498 | — | — | 498 | |
| Derivative liabilities | 13(e) | 1,387 | 2,310 | — | 3,697 |
| Marketable securities (1) | 554 | — | — | 554 | |
| Other long term liability | 498 | — | 47,597 | 48,095 | |
| Derivative liabilities | 13(e) | 3,111 | 2,420 | — | 5,531 |
(1) Marketable securities have been aggregated with prepaids and other current assets on the statement of financial position in the comparative period
Short term investments are highly liquid, invested in funds composed of high grade fixed rate or floating rate corporate debt securities, with no fixed maturity date. The interest and dividends earned are recorded to interest and other income and changes in fair value are recorded to other gains (loss) in other income (expenses) on the consolidated statements of income (loss) and comprehensive income (loss).
Derivative liabilities include both DSUs classified as level 1 and PSUs classified as level 2. The PSUs are based on the Company performance relative to its peers and uses historical trends to predict future performance as well as potential outcomes.
The preferred shares are initially measured at fair value and remeasured at fair value through profit and loss at each reporting period. The fair value of the preferred shares was determined based onscenario-based discounted cash flow methodology, using level 3 inputs. Significant assumptions and estimates used in the valuation model include Bevo’s projected cash flows until the year 2080, the probability of a liquidation event as defined in the agreement and the discount rate.
The royalty receivable was initially measured at fair value and is remeasured at fair value through profit and loss at each reporting period. The fair value of the royalty receivable was determined based on a Monte Carlo simulation model using level 3 inputs. Significant assumptions and estimates used in the valuation model include the forecasted cash flows as defined in the agreements, for the Bevo Sky and Sun facilities, discount rate and growth rate. As at March 31, 2026, the royalty receivable was$1.6 million recorded on the consolidated statements of financial position and consolidated statements of profit (loss) and comprehensive profit (loss).
As at March 31, 2025, other long term liability includes the put option arising from the acquisition of Bevo. The put option was fair valued at $47.6 million using a Monte Carlo simulation model. The determination relies on forecasted information, of which the significant assumptions used within the model are revenue, cost of sales and operating expenses. As at March 31, 2026, the Bevo put option was derecognized through the disposition of Bevo (Note 6), which was recorded in other long-term liability in the consolidated statements of financial position. The change during the year ended March 31, 2026 of $47.6 million (year ended March 31, 2025 – $2.1 million) is recorded in deficit in the consolidated statements of changes in equity.
There were no changes in the nature, characteristics and risks of financial instruments that would result in a change in classification of financial assets and financial liabilities disclosed above. There were no transfers between fair value measurement hierarchy levels during the year ended March 31, 2026.
Note 22 Financial Instruments Risk
The Company is exposed to a variety of financial instrument related risks. The Board mitigates these risks by assessing, monitoring and approving the Company’s risk management processes.
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