AURORA CANNABIS INC

Operating Segment Impairment

Cannabis Operating Segment (Note 16)

The Cannabis Operating segment is primarily comprised of the Canadian Cannabis CGU, European Cannabis CGU, Australia Cannabis CGU and New Zealand Cannabis CGU. As at March 31, 2026, the recoverable amount was higher than the carrying value and thereforeno impairment was required within the Cannabis Operating segment (March 31, 2025 – $nil). A sensitivity analysis indicated there were no likely possible alternatives that would result in an impairment to the Cannabis Operating segment’s goodwill.

Note 10 Loans and Borrowings

Accounting PolicyLoans and Borrowings are initially recognized at fair value, net of transaction costs incurred. Loans are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or lossover the period of the borrowings using the effective interest method. Loans are derecognized from the consolidated statement of financial position when the obligation specified in the contract is discharged, cancelled, or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss as finance costs. Loans are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

On August 25, 2022, through the acquisition of a 50.1% controlling interest in Bevo, the Company acquired the loans under Bevo’s credit facility. The credit facility includestwo term loans and a revolving credit facility. In addition, in March 2024, the Company entered into an unsecured Pari Passu Creditor Agreement with Bevo, in which participating shareholders of Bevo initially contributed$5.0 million. The Bevo Transaction resulted in the total loans and borrowings being disposed of (Note 6). On closing of the Bevo Transaction, Aurora transferred the shareholder loans owing by Bevo in exchange for $5.5 million in cash. This intercompany loan was previously eliminated on consolidation.

The changes in the carrying value of the total loans and borrowings are as follows:

During theyear ended March 31, 2026, total interest expense for loans and borrowings of $4.7 million (year ended March 31, 2025 – $4.9 million) was recognized as finance and other costs in the consolidated statements of income (loss) and comprehensive income (loss), presented as discontinued operations (Note 6(b)).

Note 11 Lease Liabilities

Accounting PolicyThe Company assesses whether a contract is or contains a lease at inception of the contract. A lease is recognized as a right-of-use asset and corresponding liability at the commencement date. Each lease payment included in the lease liability is apportioned between the repayment of the liability and a finance cost. The finance cost is recognized in “finance and other costs” in the consolidated statements of income (loss) and comprehensive income (loss) over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability. Lease liabilities represent the net present value of fixed lease payments (including in-substance fixed payments); variable lease payments based on an index, rate, or subject to a fair market value renewal condition; amounts expected to be payable by the lessee under residual value guarantees; the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and payments of penalties for terminating the lease, if it is probable that the lessee will exercise that option.The Company’s lease liability is recognized net of lease incentives receivable. The lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be determined, the lessee’s incremental borrowing rate. The period over which the lease payments are discounted is the expected lease term, including renewal and termination options that the Company is reasonably certain to exercise.Subsequently, if there is a change to the expected lease term within the control of the lessee, the lease liability will be remeasured using the updated term and revised discount rate on a prospective basis. Payments associated with short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis in general and administration and sales and marketing expense in the consolidated statements of income (loss) and comprehensive income (loss). Short-term leases are defined as leases with a lease term of 12 months or less. Variable lease payments that do not depend on an index, rate, or subject to a fair market value renewal condition are expensed as incurred and recognized in costs of goods sold, general and administration, or sales and marketing expense, as appropriate given how the underlying leased asset is used, in the consolidated statements of income (loss) and comprehensive income (loss).If the right-of-use asset is subsequently leased to a third party (a “sublease”), the Company will assess the classification of the sublease as to whether it is a finance or operating lease. Subleases that are classified as an operating lease will recognize lease income, while a financing lease will recognize a lease receivable and derecognize the carrying value of the right-of-use asset, with the difference recorded in profit or loss.

The changes in the carrying value of current and non-current lease liabilities are as follows:

For the year ended March 31, 2026, the Company recorded $2.6 million (year ended March 31, 2025 – $2.5 million) related to short-term leases, variable leases, and low-value leases in general and administration expense in the consolidated statements of income (loss) and comprehensive income (loss).

Note 12 Share Capital

Accounting PolicyShare Purchase WarrantsWarrants issued in foreign currencies are classified as derivative liabilities. Upon exercise, in exchange for a fixed amount of common shares, the expected cash receivable is variable due to changes in foreign exchange rates. The Company measures derivative financial liabilities at fair value through profit or loss at initial recognition and in subsequent reporting periods. Fair value gains or losses are recognized in other gains (losses) on the statement of income (loss) and comprehensive income (loss). The fair value of foreign currency share purchase warrants is determined using the quoted market price on the valuation date, which is a Level 1 input. Transaction costs, which are directly attributable to the offering, are allocated to equity and classified as equity financing transaction costs.