AURORA CANNABIS INC
For the period ended Mar 31, 2025. Filed Jun 18, 2025.
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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.
FY2025 · Filed Jun 18, 2025
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Contents
EX-99.5 · (b)Commitments
(b)Commitments
The Company has various lease commitments related to various 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 25(b) and loans and borrowing repayments in Note 12, the Company has $4.2 million in future capital commitments and $10.0 million purchase commitment payments, which are due over the next 12 months and $16.5 million which are due in one to three years.
Note 22 Revenue
Accounting PolicyThe Company generates revenue primarily from the sale of cannabis, cannabis related products, plant propagation and provision of services. The Company uses the following five-step contract-based analysis of transactions to determine if, when and how much revenue can be recognized: 1. Identify the contract with a customer;2. Identify the performance obligation(s) in the contract;3. Determine the transaction price;4. Allocate the transaction price to the performance obligation(s) in the contract; and5. Recognize revenue when or as the Company satisfies the performance obligation(s).Revenue from the sale of cannabis is generally recognized when control over the goods has been transferred to the customer. Payment for medical sales is typically due prior to shipment. Payment for wholesale transactions is due within a specified time period as permitted by the underlying agreement and the Company’s credit policy upon the transfer of goods to the customer. All other payment terms are from 30-60 days, primarily from sales in the EU and Australia. The Company generally satisfies its performance obligation and transfers control to the customer upon delivery and acceptance by the customer. Revenue is recorded at the estimated amount of consideration to which the Company expects to be entitled. Revenue from plant propagation is recognized at a point in time when control of the goods is transferred to the customer, at an amount which reflects the consideration to which the Company expects to be entitled to in exchange for those goods. The Company goods consist of propagation seedlings and bedding plants. The sale is completed upon delivery as the Company bears the responsibility of transportation and related costs. For bill-and-hold arrangements, revenue is recognized before delivery but only upon transfer of control of the good to the customer. Control is transferred to the customer when the substance of the bill-and-hold arrangement is substantive, the Company cannot sell the goods to another customer, the goods can be identified separately and are ready for physical transfer to the customer.Service revenues, including patient referral services, are recognized over a period of time as performance obligations are completed. Payment of the transaction price for patient counselling is typically due prior to the services being rendered and therefore, the transaction price is recognized as a contract liability, or deferred revenue, when payment is received. Contract liabilities are subsequently recognized into revenue as or when the Company fulfills its performance obligation.Effective October 17, 2018, Canada Revenue Agency (“CRA”) began levying an excise tax on the sale of medical and consumer cannabis products. The Company becomes liable for these excise duties when cannabis products are delivered to the customer. The excise taxes payable is the higher of (i) a flat-rate duty which is imposed when a cannabis product is packaged, and (ii) an ad valorem duty that is imposed when a cannabis product is delivered to the customer. Effective May 1, 2019, excise tax calculated on edible cannabis products, cannabis extracts and cannabis topicals will prospectively be calculated as a flat rate based on the quantity of total tetrahydrocannabinol (THC) contained in the final product. There were no changes in the legislation in calculating excise taxes for fresh cannabis, dried cannabis, seeds and plants. Where the excise tax has been billed to customers, the Company has reflected the excise tax as part of revenue in accordance with IFRS 15. Net revenue from sale of goods, as presented on the consolidated statements of comprehensive income (loss), represents revenue from the sale of goods less applicable excise taxes. Given that the excise tax payable/paid to CRA cannot be reclaimed and is not always billed to customers, the Company recognizes that the excise tax is an operating cost that affects gross margin to the extent that it is not recovered from its customers.For certain sale of goods in which the Company earns a manufacturing fee, the Company records net revenue as an agent on the basis that the Company does not control pricing or bear inventory or credit risk.
The Company generates revenue from the transfer of goods at a point-in-time from the revenue streams below. Net revenue from sale of goods is reflected net of actual returns and estimated variable consideration for future returns and price adjustments of $0.2 million for the year ended March 31, 2025 (year ended March 31, 2024 – $1.2 million). The estimated variable consideration is based on historical experience and management’s expectation of future returns and price adjustments. As of March 31, 2025, the net return liability for the estimated variable consideration was $0.2 million (March 31, 2024 – $1.2 million) and is included in deferred revenue on the consolidated statements of financial position.
| Year ended March 31, 2025 | Medical | Consumer | Wholesale bulk cannabis | Total cannabis | Plant propagation | Total |
|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | $ | |
| Canada | 107,432 | 40,033 | 4,436 | 151,901 | 18,558 | 170,459 |
| Australia | 53,661 | — | — | 53,661 | — | 53,661 |
| Europe | 83,349 | — | — | 83,349 | — | 83,349 |
| U.S. | — | — | — | — | 35,824 | 35,824 |
| Total net revenue | 244,442 | 40,033 | 4,436 | 288,911 | 54,382 | 343,293 |
| Year Ended March 31, 2024 | Medical | Consumer | Wholesale bulk cannabis | Total cannabis | Plant propagation | Total |
| $ | $ | $ | $ | $ | $ | |
| Canada | 103,068 | 46,958 | 2,403 | 152,429 | 12,801 | 165,230 |
| Australia | 31,680 | — | — | 31,680 | — | 31,680 |
| Europe | 40,769 | — | — | 40,769 | — | 40,769 |
| U.S. | — | — | — | — | 31,958 | 31,958 |
| Total net revenue | 175,517 | 46,958 | 2,403 | 224,878 | 44,759 | 269,637 |
Note 23 Segmented Information
Accounting PolicyOperating segments are components of the Company that engage in business activities which generate revenues and incur expenses (including intercompany revenues and expenses related to transactions conducted with other components of the Company). The operations of an operating segment are distinct and the operating results are regularly reviewed by the chief operating decision maker (“CODM”) for the purposes of resource allocation decisions and assessing its performance. Reportable segments are Operating segments whose revenues or profit/loss or total assets exceed ten percent or more of those of the combined entity.Key measures used by the CODM to assess performance and make resource allocation decisions include net revenue, gross profit, general and administrative expenses, and sales and marketing expenses. The Company’s operating results are divided into two reportable segments plus corporate.
As at March 31, 2025, the Company hadtwo reportable operating segments: (i) Cannabis and (ii) Plant Propagation. The Company’s identification of operating segment is based on product type. The Cannabis operating segment relates to the cultivation, manufacturing and distribution of cannabis, in addition to ancillary support services such as research and development and patient counselling and the plant propagation segment relates to vegetables propagation and floral cultivation. Additionally, thetwo segments are distinct in terms of their distribution, competition, regulatory environment and margins. There is no aggregation of operating segments.
| Operating Segments | Cannabis | Plant Propagation | Corporate | Total |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Gross revenue | 319,858 | 54,382 | — | 374,240 |
| Excise tax | (30,947) | — | — | (30,947) |
| Net revenue | 288,911 | 54,382 | — | 343,293 |
| Cost of sales | 140,944 | 45,155 | 3,141 | 189,240 |
| Gross profit before fair value adjustments | 147,967 | 9,227 | (3,141) | 154,053 |
| General and administration | 75,598 | 5,934 | 15,725 | 97,257 |
| Sales and marketing | 56,171 | 110 | — | 56,281 |
| Gross revenue | 254,421 | 44,759 | — | 299,180 |
| Excise tax | (29,543) | — | — | (29,543) |
| Net revenue | 224,878 | 44,759 | — | 269,637 |
| Cost of sales | 149,449 | 41,499 | 1,002 | 191,950 |
| Gross profit before fair value adjustments | 75,429 | 3,260 | (1,002) | 77,687 |
| General and administration | 73,057 | 3,252 | 15,016 | 91,325 |
| Sales and marketing | 51,859 | 51 | — | 51,910 |
| Geographical Segments | Canada | EU | Australia | Other | Total |
|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | |
| Non-current assets other than financial instruments | |||||
| March 31, 2025 | 294,204 | 29,751 | 40,908 | — | 364,863 |
| March 31, 2024 | 308,816 | 29,368 | 38,197 | 14,001 | 390,382 |
| Net revenue | 206,283 | 83,349 | 53,661 | — | 343,293 |
| Gross profit before fair value adjustments | 62,660 | 59,602 | 31,791 | — | 154,053 |
| Net revenue | 226,077 | 40,731 | 2,753 | 76 | 269,637 |
| Gross profit (loss) before fair value adjustments | 50,864 | 25,501 | 2,430 | (1,108) | 77,687 |
During the years ended March 31, 2025 and March 31, 2024, no customer contributed 10 per cent or more to the Company’s net revenue.
Note 24 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 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 | |
| Marketable securities | Closing market price of common shares as of the measurement date (Level 1) |
| Derivatives | Closing market price (Level 1) or Black-Scholes, Binomial, Monte-Carlo & FINCAD valuation model (Level 2 or 3) |
| Contingent consideration payable | Discounted cash flow model (Level 3) |
| Other long term liability | Discounted cash flow model (level 3) |
| Derivative liability | Closing market price of warrants (Level 1) or Kynex valuation model (Level 2) |
| 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, long-term liabilities | Carrying amount (approximates fair value due to short-term nature) |
| Lease receivable, loans and borrowings, and lease liabilities. | Carrying value discounted at the effective interest rate approximates fair value |
The carrying values of the financial instruments at March 31, 2025 are summarized in the following table:
| Amortized cost | FVTPL | Total | |
|---|---|---|---|
| $ | $ | $ | |
| Financial Assets | |||
| Cash and cash equivalents | 137,921 | — | 137,921 |
| Restricted cash | 47,407 | — | 47,407 |
| Accounts receivable, excluding sales taxes and lease receivable | 37,798 | — | 37,798 |
| Marketable securities | — | 554 | 554 |
| Lease receivable | 6,841 | — | 6,841 |
| Financial Liabilities | |||
| Accounts payable and accrued liabilities | 73,605 | — | 73,605 |
| Lease liabilities | 42,876 | — | 42,876 |
| Derivative liabilities | — | 5,531 | 5,531 |
| Other long term liabilities | 498 | — | 498 |
| Loans and borrowings | 61,707 | — | 61,707 |
The following is a summary of financial instruments measured at fair value segregated based on the various levels of inputs:
| Notes · Level 1 · Level 2 · Level 3 · Total | |||||||
|---|---|---|---|---|---|---|---|
| $ · $ · $ · $ | |||||||
| Marketable securities | 7 | 554 | — | — | 554 | ||
| Other long term liability | 498 | 47,597 | 48,095 | ||||
| Derivative liabilities | 14(c), 15(e) | 3,111 | 2,420 | — | 5,531 | ||
| Marketable securities | — | 4,036 | — | — | 4,036 | ||
| Derivative asset | — | 760 | — | 760 | |||
| Other long term liability | 591 | — | 45,519 | 46,110 | |||
| Derivative liabilities | 14(c), 15(e) | 1,698 | 611 | — | 2,309 | ||
Other long term liability includes the put option arising from the acquisition of Bevo. The put option is valued 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, 2025, the present value of the amount payable on exercise of the put option was $47.6 million (March 31, 2024 - $45.5 million) which is recorded in other long term liability in the consolidated statements of financial position. The change during the year ended March 31, 2025 of $2.1 million (year ended March 31, 2024 - $2.1 million) is recorded in deficit in the consolidated statements of changes in equity.
Note 25 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.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.