Full Press Release Details
AURORA CANNABIS INC.
Condensed Consolidated Interim Financial Statements
For the three and nine months ended March 31,
(in Canadian Dollars)
| Condensed Consolidated Interim Statements of Financial Position | 3 |
| Condensed Consolidated Interim Statements of Comprehensive Loss | 4 |
| Condensed Consolidated Interim Statements of Changes in Equity | 6 |
| Condensed Consolidated Interim Statements of Cash Flows | 8 |
| Notes to the Condensed Consolidated Interim Financial Statements |
| Note 1 | Nature of Operations | 9 | Note 15 | Convertible Debentures | 24 | |
| Note 2 | Significant Accounting Policies and Judgments | 9 | Note 16 | Loans and Borrowings | 24 | |
| Note 3 | Accounts Receivable | 12 | Note 17 | Lease Liabilities | 26 | |
| Note 4 | Government Grant | 13 | Note 18 | Share Capital | 26 | |
| Note 5 | Strategic Investments | 13 | Note 19 | Share-Based Compensation | 28 | |
| Note 6 | Marketable Securities and Derivatives | 15 | Note 20 | Loss Per Share | 30 | |
| Note 7 | Investments in Associates and Joint Ventures | 17 | Note 21 | Other Gains (Losses) | 31 | |
| Note 8 | Biological Assets | 17 | Note 22 | Supplemental Cash Flow Information | 31 | |
| Note 9 | Inventory | 18 | Note 23 | Commitments and Contingencies | 31 | |
| Note 10 | Property, Plant and Equipment | 19 | Note 24 | Revenue | 34 | |
| Note 11 | Assets Held for Sale and Discontinued Operations | 20 | Note 25 | Segmented Information | 35 | |
| Note 12 | Business Combinations | 21 | Note 26 | Fair Value of Financial Instruments | 36 | |
| Note 13 | Non-Controlling Interests | 21 | Note 27 | Financial Instruments Risk | 37 | |
| Note 14 | Intangible Assets and Goodwill | 22 | Note 28 | Subsequent Events | 39 |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Financial Position
As at March 31, 2021 and June 30, 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars)
| Notes | March 31, 2021 | June 30, 2020 | ||||||||
| $ | $ | |||||||||
| Assets | ||||||||||
| Current | ||||||||||
| Cash and cash equivalents | 470,238 | 162,179 | ||||||||
| Restricted cash | 16 | 50,000 | - | |||||||
| Accounts receivable | 3, 4, 27(a) | 73,401 | 54,110 | |||||||
| Income taxes receivable | 27 | - | ||||||||
| Marketable securities | 6(a) | 6,694 | 7,066 | |||||||
| Derivatives | 6(b) | 10,563 | 11,791 | |||||||
| Biological assets | 8 | 21,695 | 35,435 | |||||||
| Inventory | 9 | 101,219 | 121,827 | |||||||
| Prepaids and other current assets | 18,708 | 22,137 | ||||||||
| Assets held for sale | 11(a) | 21,675 | 6,194 | |||||||
| 774,220 | 420,739 | |||||||||
| Property, plant and equipment | 10 | 677,385 | 946,380 | |||||||
| Derivatives | 6(b) | 63,121 | 41,791 | |||||||
| Deposits | 3,734 | 12,329 | ||||||||
| Loan receivable | 10,513 | 3,643 | ||||||||
| Investments in associates and joint ventures | 7 | 313 | 18,114 | |||||||
| Intangible assets | 14 | 383,504 | 412,267 | |||||||
| Goodwill | 14 | 922,567 | 927,882 | |||||||
| Total assets | 2,835,357 | 2,783,145 | ||||||||
| Liabilities | ||||||||||
| Current | ||||||||||
| Accounts payable and accrued liabilities | 27(b) | 51,899 | 95,574 | |||||||
| Income taxes payable | 71 | - | ||||||||
| Deferred revenue | 24 | 4,088 | 3,505 | |||||||
| Convertible debentures | 15 | 33,913 | 32,110 | |||||||
| Loans and borrowings | 16 | 33,191 | 113,921 | |||||||
| Lease liabilities | 17 | 6,090 | 6,587 | |||||||
| Contingent consideration payable | 26 | 256 | 19,054 | |||||||
| Deferred gain on derivatives | - | 20 | ||||||||
| Provisions | 23(b)(v) | 2,000 | 1,485 | |||||||
| Other current liabilities | 200 | - | ||||||||
| 131,708 | 272,256 | |||||||||
| Convertible debentures | 15 | 286,121 | 294,928 | |||||||
| Loans and borrowings | 16 | 53,919 | - | |||||||
| Lease liabilities | 17 | 67,684 | 83,701 | |||||||
| Derivative liability | 15, 18(c) | 114,078 | 1,827 | |||||||
| Other long-term liability | 37 | 37 | ||||||||
| Deferred tax liability | 3,722 | 3,946 | ||||||||
| Total liabilities | 657,269 | 656,695 | ||||||||
| Shareholders' equity | ||||||||||
| Share capital | 18 | 6,434,078 | 5,785,395 | |||||||
| Reserves | 139,395 | 145,395 | ||||||||
| Accumulated other comprehensive loss | (205,649 | ) | (187,197 | ) | ||||||
| Deficit | (4,189,736 | ) | (3,592,787 | ) | ||||||
| Total equity attributable to Aurora shareholders | 2,178,088 | 2,150,806 | ||||||||
| Non-controlling interests | 13 | - | (24,356 | ) | ||||||
| Total equity | 2,178,088 | 2,126,450 | ||||||||
| Total liabilities and equity | 2,835,357 | 2,783,145 |
Nature of Operations (Note 1)
Commitments and Contingencies (Note 23)
Subsequent Events (Notes 28)
The accompanying notes are an integral part of these Condensed
Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Comprehensive Loss
Three and nine months ended March 31, 2021 and 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars, except share and per share amounts)
| Three months ended March 31, | Nine months ended March 31, | |||||||||||||||||
| Restated - Note 2(e) and 11(b) | Restated - Note 2(e) and 11(b) | |||||||||||||||||
| Notes | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| $ | $ | $ | $ | |||||||||||||||
| Revenue from sale of goods | 24 | 63,555 | 86,617 | 224,647 | 231,177 | |||||||||||||
| Revenue from provision of services | 24 | 490 | 1,013 | 1,639 | 4,212 | |||||||||||||
| Excise taxes | (8,884 | ) | (14,089 | ) | (35,640 | ) | (32,996 | ) | ||||||||||
| Net revenue | 55,161 | 73,541 | 190,646 | 202,393 | ||||||||||||||
| Cost of sales | 9 | 127,545 | 50,656 | 221,483 | 121,736 | |||||||||||||
| Gross profit before fair value adjustments | (72,384 | ) | 22,885 | (30,837 | ) | 80,657 | ||||||||||||
| Changes in fair value of inventory sold | 29,583 | 14,144 | 38,829 | 48,672 | ||||||||||||||
| Unrealized gain on changes in fair value of biological assets | 8 | (16,506 | ) | (10,904 | ) | (28,175 | ) | (44,735 | ) | |||||||||
| Gross profit | (85,461 | ) | 19,645 | (41,491 | ) | 76,720 | ||||||||||||
| Expense | ||||||||||||||||||
| General and administration | 28,516 | 48,902 | 85,639 | 157,882 | ||||||||||||||
| Sales and marketing | 13,168 | 23,416 | 42,341 | 74,143 | ||||||||||||||
| Acquisition costs | - | 1,300 | 1,104 | 4,323 | ||||||||||||||
| Research and development | 3,398 | 5,601 | 8,414 | 18,424 | ||||||||||||||
| Depreciation and amortization | 10, 14 | 7,180 | 14,948 | 35,260 | 53,665 | |||||||||||||
| Share-based compensation | 19(a)(b)(c) | 5,233 | 8,904 | 18,081 | 53,155 | |||||||||||||
| 57,495 | 103,071 | 190,839 | 361,592 | |||||||||||||||
| Loss from operations | (142,956 | ) | (83,426 | ) | (232,330 | ) | (284,872 | ) | ||||||||||
| Other (expense) income | ||||||||||||||||||
| Legal settlement and contract termination fees | 23(a), (b)(i) | (2,235 | ) | - | (46,307 | ) | - | |||||||||||
| Interest and other income | 1,467 | 1,998 | 4,599 | 4,884 | ||||||||||||||
| Finance and other costs | (16,990 | ) | (6,655 | ) | (50,553 | ) | (48,364 | ) | ||||||||||
| Foreign exchange ("FX") gain (loss) | (7,035 | ) | (12,280 | ) | (135 | ) | (16,181 | ) | ||||||||||
| Other (losses) gains | 21 | 8,319 | 170 | 5,681 | (40,981 | ) | ||||||||||||
| Restructuring charges | (801 | ) | - | (1,011 | ) | - | ||||||||||||
| Impairment of deposits | - | - | (10,266 | ) | - | |||||||||||||
| Impairment of property, plant and equipment | 10, 11(a) | (4,548 | ) | (17,600 | ) | (226,850 | ) | (62,497 | ) | |||||||||
| Impairment of investment in associates | - | (28,176 | ) | - | (74,402 | ) | ||||||||||||
| Impairment of intangible assets and goodwill | 14 | - | - | (3,777 | ) | (920,926 | ) | |||||||||||
| (21,823 | ) | (62,543 | ) | (328,619 | ) | (1,158,467 | ) | |||||||||||
| Loss from operations before taxes and discontinued operations | (164,779 | ) | (145,969 | ) | (560,949 | ) | (1,443,339 | ) | ||||||||||
| Income tax recovery (expense) | ||||||||||||||||||
| Current | 10 | 432 | 235 | 5,134 | ||||||||||||||
| Deferred, net | 119 | 12,009 | (3,884 | ) | 13,739 | |||||||||||||
| 129 | 12,441 | (3,649 | ) | 18,873 | ||||||||||||||
| Net loss from continuing operations | (164,650 | ) | (133,528 | ) | (564,598 | ) | (1,424,466 | ) | ||||||||||
| Net loss from discontinued operations, net of tax | - | (5,811 | ) | (2,366 | ) | (19,554 | ) | |||||||||||
| Net loss | (164,650 | ) | (139,339 | ) | (566,964 | ) | (1,444,020 | ) |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Comprehensive Loss
Three and nine months ended March 31, 2021 and 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars, except share and per share amounts)
| Three months ended March 31, | Nine months ended March 31, | |||||||||||||||||
| Restated - Note 2(e) and 11(b) | Restated - Note 2(e) and 11(b) | |||||||||||||||||
| Notes | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| $ | $ | $ | $ | |||||||||||||||
| Other comprehensive (loss) income ("OCI") that will not be reclassified to net loss | ||||||||||||||||||
| Deferred tax recovery | 229 | (888 | ) | 229 | 2,197 | |||||||||||||
| Unrealized loss on marketable securities | 6(a) | 1,431 | (14,314 | ) | (12,669 | ) | (44,869 | ) | ||||||||||
| 1,660 | (15,202 | ) | (12,440 | ) | (42,672 | ) | ||||||||||||
| Other comprehensive (loss) income that may be reclassified to net loss | ||||||||||||||||||
| Share of income (loss) from investment in associates | 7 | 1 | (102 | ) | 251 | (125 | ) | |||||||||||
| Foreign currency translation loss | (2,396 | ) | 3,669 | (6,263 | ) | (1,828 | ) | |||||||||||
| (2,395 | ) | 3,567 | (6,012 | ) | (1,953 | ) | ||||||||||||
| Total other comprehensive loss | (735 | ) | (11,635 | ) | (18,452 | ) | (44,625 | ) | ||||||||||
| Comprehensive loss from continuing operations | (165,385 | ) | (144,635 | ) | (583,588 | ) | (1,468,615 | ) | ||||||||||
| Comprehensive loss from discontinued operations | - | (6,339 | ) | (1,828 | ) | (20,030 | ) | |||||||||||
| Comprehensive loss | (165,385 | ) | (150,974 | ) | (585,416 | ) | (1,488,645 | ) | ||||||||||
| Net loss from continuing operations attributable to: | ||||||||||||||||||
| Aurora Cannabis Inc. | (164,650 | ) | (133,560 | ) | (563,134 | ) | (1,402,343 | ) | ||||||||||
| Non-controlling interests | - | 32 | (1,464 | ) | (22,123 | ) | ||||||||||||
| Net loss from discontinued operations attributable to: | ||||||||||||||||||
| Aurora Cannabis Inc. | 11(b) | - | (5,811 | ) | (2,366 | ) | (19,554 | ) | ||||||||||
| Non-controlling interests | - | - | - | - | ||||||||||||||
| Comprehensive loss attributable to: | ||||||||||||||||||
| Aurora Cannabis Inc. | (165,385 | ) | (150,526 | ) | (584,747 | ) | (1,466,035 | ) | ||||||||||
| Non-controlling interests | - | (448 | ) | (669 | ) | (22,610 | ) | |||||||||||
| Net loss per share - basic and diluted | ||||||||||||||||||
| Continuing operations | 20 | ($ | 0.85 | ) | ($ | 1.34 | ) | ($ | 3.53 | ) | ($ | 15.26 | ) | |||||
| Discontinued operations | 20 | $ | - | ($ | 0.06 | ) | ($ | 0.01 | ) | ($ | 0.21 | ) | ||||||
| Total operations | 20 | ($ | 0.85 | ) | ($ | 1.40 | ) | ($ | 3.53 | ) | ($ | 15.47 | ) |
The accompanying notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Changes in Equity
Nine months ended March 31, 2021
(Unaudited - Amounts reflected in thousands of Canadian dollars, except share amounts)
| Share Capital | Reserves | AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Note | Common Shares | Amount | Share-Based Compensation | Compensation Options/ Warrants | Convertible Notes | Change in Ownership Interest | Total Reserves | Fair Value | Deferred Tax | Associate OCI Pick-up | Foreign Currency Translation | Total AOCI | Retained Earnings (Deficit) | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||
| # | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2020 | 115,228,811 | 5,785,395 | 188,803 | 42,973 | 419 | (86,800 | ) | 145,395 | (194,637 | ) | 18,919 | (27 | ) | (11,452 | ) | (187,197 | ) | (3,592,787 | ) | (24,356 | ) | 2,126,450 | ||||||||||||||||||||||||||||||||||||||||
| Shares released for earn out payments | 18(b) | 2,691,759 | 35,902 | - | (15,791 | ) | - | - | (15,791 | ) | - | - | - | - | - | - | - | 20,111 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares issued for services | 73,712 | 1,005 | - | - | - | - | - | - | - | - | - | - | - | - | 1,005 | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued through equity financing | 18(b) | 78,559,118 | 612,101 | - | - | - | - | - | - | - | - | - | - | - | - | 612,101 | ||||||||||||||||||||||||||||||||||||||||||||||
| Equity financing transaction costs | - | (26,253 | ) | - | - | - | - | - | - | - | - | - | - | - | - | (26,253 | ) | |||||||||||||||||||||||||||||||||||||||||||||
| Deferred tax on transaction costs | - | 3,777 | - | - | - | - | - | - | - | - | - | - | - | - | 3,777 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exercise of stock options | 19(a) | 32,167 | 351 | (187 | ) | - | - | - | (187 | ) | - | - | - | - | - | - | - | 164 | ||||||||||||||||||||||||||||||||||||||||||||
| Exercise of warrants | 18(c) | 491,500 | 9,748 | - | (675 | ) | - | - | (675 | ) | - | - | - | - | - | - | - | 9,073 | ||||||||||||||||||||||||||||||||||||||||||||
| Exercise of RSUs and DSUs | 19(b) | 122,671 | 6,423 | (6,423 | ) | - | - | - | (6,423 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation (1) | 19 | - | - | 15,797 | 1,279 | - | - | 17,076 | - | - | - | - | - | - | - | 17,076 | ||||||||||||||||||||||||||||||||||||||||||||||
| Shares returned to treasury | (50,282 | ) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
| Change in ownership interests in subsidiaries | 13 | 830,287 | 5,629 | - | - | - | - | - | - | - | - | - | - | (31,449 | ) | 25,820 | - | |||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) for the period | - | - | - | - | - | - | - | (12,669 | ) | 229 | 251 | (6,263 | ) | (18,452 | ) | (565,500 | ) | (1,464 | ) | (585,416 | ) | |||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2021 | 197,979,743 | 6,434,078 | 197,990 | 27,786 | 419 | (86,800 | ) | 139,395 | (207,306 | ) | 19,148 | 224 | (17,715 | ) | (205,649 | ) | (4,189,736 | ) | - | 2,178,088 |
As at March 31, 2021, there were no common
shares in held escrow (June 30, 2020 - 50,282 common shares). These securities were originally deposited in escrow on November 30,
2017 in connection with the acquisition of H2 Biopharma Inc. The escrowed common shares were to be released upon receipt of relevant licenses
to cultivate and sell cannabis, both of which were obtained, and milestones were fully met, during the year ended June 30, 2020. During
the nine months ended March 31, 2021, the Company cancelled and returned to treasury 50,282 escrowed common shares remaining (nine months
ended March 31, 2020 - released 9,989 common shares upon achievement of milestones).
The accompanying notes are an integral part of
these Condensed Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Changes in Equity
Nine months ended March 31, 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars, except share amounts)
| Share Capital | Reserves | AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Shares | Amount | Share-Based Compensation | Compensation Options/ Warrants | Convertible Notes | Change in Ownership Interest | Total Reserves | Fair Value | Deferred Tax | Associate OCI Pick-up | Foreign Currency Translation | Total AOCI | Retained Earnings | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||
| # | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2019 | 84,786,562 | 4,673,118 | 143,947 | 40,495 | 41,685 | (86,800 | ) | 139,327 | (156,249 | ) | 18,295 | 352 | (5,568 | ) | (143,170 | ) | (286,311 | ) | 4,410 | 4,387,374 | ||||||||||||||||||||||||||||||||||||||||
| Shares issued for earn out payments | 352,424 | 11,958 | - | (5,087 | ) | - | - | (5,087 | ) | - | - | - | - | - | - | - | 6,871 | |||||||||||||||||||||||||||||||||||||||||||
| Shares issued through equity financing | 18,193,530 | 535,761 | - | - | - | - | - | - | - | - | - | - | - | - | 535,761 | |||||||||||||||||||||||||||||||||||||||||||||
| Equity financing transaction costs | - | (11,315 | ) | - | - | - | - | - | - | - | - | - | - | - | - | (11,315 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Deferred tax on transaction costs | - | 2,621 | - | - | - | - | - | - | - | - | - | - | - | - | 2,621 | |||||||||||||||||||||||||||||||||||||||||||||
| Conversion of convertible notes | 5,761,260 | 433,177 | - | - | (41,266 | ) | - | (41,266 | ) | - | - | - | - | - | - | - | 391,911 | |||||||||||||||||||||||||||||||||||||||||||
| Deferred tax on convertible notes | - | 1,888 | - | - | - | - | - | - | - | - | - | - | 82 | - | 1,970 | |||||||||||||||||||||||||||||||||||||||||||||
| Exercise of stock options | 92,723 | 6,266 | (3,544 | ) | - | - | - | (3,544 | ) | - | - | - | - | - | - | - | 2,722 | |||||||||||||||||||||||||||||||||||||||||||
| Exercise of warrants | 986 | 102 | - | (29 | ) | - | - | (29 | ) | - | - | - | - | - | - | - | 73 | |||||||||||||||||||||||||||||||||||||||||||
| Exercise of RSUs | 31,300 | 1,595 | (1,595 | ) | - | - | - | (1,595 | ) | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | - | - | 48,068 | 7,049 | - | - | 55,117 | - | - | - | - | - | - | - | 55,117 | |||||||||||||||||||||||||||||||||||||||||||||
| Choom marketable securities transferred to investment in associate | - | - | - | - | - | - | - | 5,225 | - | - | - | 5,225 | (5,225 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Change in ownership interests in subsidiaries | 217,554 | 20,363 | - | - | - | - | - | - | - | - | - | - | (18,263 | ) | (2,100 | ) | - | |||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) for the period | - | - | - | - | - | - | - | (44,869 | ) | 2,197 | (125 | ) | (1,828 | ) | (44,625 | ) | (1,421,897 | ) | (22,123 | ) | (1,488,645 | ) | ||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2020 | 109,436,339 | 5,675,534 | 186,876 | 42,428 | 419 | (86,800 | ) | 142,923 | (195,893 | ) | 20,492 | 227 | (7,396 | ) | (182,570 | ) | (1,731,614 | ) | (19,813 | ) | 3,884,460 |
The accompanying notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Cash Flows
Nine months ended March 31, 2021 and 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars)
| Nine months ended March 31, | ||||||||||
| Restated - Note 2(e) and 11(b) | ||||||||||
| Notes | 2021 | 2020 | ||||||||
| $ | $ | |||||||||
| Operating activities | ||||||||||
| Net loss from continuing operations | (564,598 | ) | (1,424,466 | ) | ||||||
| Adjustments for non-cash items: | ||||||||||
| Unrealized gain on changes in fair value of biological assets | 8 | (28,175 | ) | (44,735 | ) | |||||
| Changes in fair value included in inventory sold | 38,829 | 48,672 | ||||||||
| Depreciation of property, plant and equipment | 10 | 36,227 | 57,634 | |||||||
| Amortization of intangible assets | 14 | 26,670 | 31,127 | |||||||
| Share-based compensation | 18,081 | 53,155 | ||||||||
| Impairment of deposits | 10,266 | - | ||||||||
| Impairment of property, plant and equipment | 10 | 226,850 | 62,497 | |||||||
| Impairment of investment in associate | 7 | - | 74,402 | |||||||
| Impairment of intangible assets and goodwill | 14 | 3,777 | 920,926 | |||||||
| Accrued interest and accretion expense | 15, 16 | 17,466 | 2,921 | |||||||
| Interest and other income | (893 | ) | (1,834 | ) | ||||||
| Deferred tax expense | 3,649 | (19,325 | ) | |||||||
| Other losses | 21 | (5,681 | ) | 40,981 | ||||||
| Foreign exchange (gain) loss | (17,849 | ) | 16,166 | |||||||
| Changes in non-cash working capital | 22 | 8,620 | (96,504 | ) | ||||||
| Net cash used in operating activities from discontinued operations | (3,238 | ) | (9,919 | ) | ||||||
| Net cash used in operating activities | (229,999 | ) | (288,302 | ) | ||||||
| Investing activities | ||||||||||
| Investment in derivatives | - | (2,000 | ) | |||||||
| Proceeds from disposal of marketable securities | 6 | 6,135 | 84,770 | |||||||
| Loan receivable | (6,870 | ) | (3,312 | ) | ||||||
| Purchase of property, plant and equipment and intangible assets | (41,823 | ) | (317,436 | ) | ||||||
| Disposal of property, plant and equipment | 5,766 | 2,100 | ||||||||
| Payment of contingent consideration | - | (1,993 | ) | |||||||
| Deposits | (8,885 | ) | (20,437 | ) | ||||||
| Net cash provided by investing activities from discontinued operations | 1,698 | 11,698 | ||||||||
| Net cash used in investing activities | (43,979 | ) | (246,610 | ) | ||||||
| Financing activities | ||||||||||
| Proceeds from long-term loans | - | 86,394 | ||||||||
| Repayment of long-term loans | (28,792 | ) | (57,354 | ) | ||||||
| Payments of principal portion of lease liabilities | 17 | (4,318 | ) | (12,643 | ) | |||||
| Restricted cash | (50,000 | ) | 46,064 | |||||||
| Financing fees | (1,427 | ) | (1,789 | ) | ||||||
| Shares issued for cash, net of share issue costs | 665,591 | 527,241 | ||||||||
| Net cash used in financing activities from discontinued operations | - | (283 | ) | |||||||
| Net cash provided by financing activities | 581,054 | 587,630 | ||||||||
| Effect of foreign exchange on cash and cash equivalents | 983 | 4,763 | ||||||||
| Increase in cash and cash equivalents | 308,059 | 57,481 | ||||||||
| Cash and cash equivalents, beginning of period | 162,179 | 172,727 | ||||||||
| Cash and cash equivalents, end of period | 470,238 | 230,208 |
Supplemental cash flow information (Note 22)
The accompanying notes are an integral part of these Condensed
Consolidated Interim Financial Statements.
Aurora Cannabis Inc. (the "Company"
or "Aurora") was incorporated under the Business Corporations Act (British Columbia) on December 21, 2006
as Milk Capital Corp. Effective October 2, 2014, the Company changed its name to Aurora Cannabis Inc. The Company's shares
are listed on the New York Stock Exchange ("NYSE") and the Toronto Stock Exchange ("TSX") under the trading symbol
"ACB", and on the Frankfurt Stock Exchange ("FSE") under the trading symbol "21P".
The Company's head office and principal address
is 4818 31 Street East, Edmonton International Airport, Alberta, Canada, T9E 0V6. The Company's registered and records office address
is Suite 1500 - 1055 West Georgia Street, Vancouver, BC V6E 4N7.
The Company's principal strategic business
lines are focused on the production, distribution and sale of cannabis related products in Canada and internationally. Aurora currently
conducts the following key business activities in the jurisdictions listed below:
The U.S. represents the largest cannabis and hemp-derived
cannabidiol ("CBD") market globally and as such, Aurora continues to evaluate its alternatives to establishing an operating
footprint in the U.S. During the year ended June 30, 2020, the Company acquired Reliva, LLC, a U.S Company based in Massachusetts specialized
in the sale of hemp-derived CBD (Note 12) as an entry into this market. As part of the U.S. market strategy, we are considering how various
state and federal regulations will affect the Company's business prospects. The Company is committed to only engage in activities
which are permissible under both state and federal laws.
During the year ended June 30, 2020, the Company
announced a business transformation plan intended to better align the business financially with the current realities of the cannabis
market in Canada while maintaining a sustainable platform for long-term growth. These actions included the rationalization of selling,
general and administrative expenses through a reduction in corporate and production staff. The Company has also wound down and closed
operations at four Canadian facilities: Aurora Prairie, Aurora Mountain, Aurora Vie, and Aurora Eau.
Accounting Policies and Judgments
of Presentation and Measurement
The condensed consolidated interim financial statements
of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") and International
Accounting Standards 34, "Interim Financial Reporting" ("IAS34") as issued by the International Accounting
Standards Board ("IASB"), and interpretations of the IFRS Interpretations Committee ("IFRIC"). Unless otherwise
noted, all amounts are presented in thousands of Canadian dollars, except share and per share data.
The condensed consolidated interim financial statements
are presented in Canadian dollars and are prepared in accordance with the same accounting policies, critical estimates and methods described
in the Company's annual consolidated financial statements, except for the adoption of new accounting policies and estimates for
provisions (Notes 2(d) and 23(b)(v)), government grant (Note 4), impairment of inventory (Note 9), impairment of property, plant and equipment
(Note 10), impairment testing of cash generating units and goodwill (Note 14), and share purchase warrants (Note 18(c)). Given that certain
information and footnote disclosures, which are included in the annual audited consolidated financial statements, have been condensed
or excluded in accordance with IAS 34, these financial statements should be read in conjunction with our annual audited consolidated financial
statements as at and for the year ended June 30, 2020, including the accompanying notes thereto.
For comparative purposes, the Company has reclassified
certain immaterial items on the comparative consolidated statement of financial position and the consolidated statement of comprehensive
loss to conform with the current period's presentation.
On May 11, 2020, the Company completed a one-for-twelve
(1:12) reverse share split of all of its issued and outstanding common shares ("Share Consolidation"), resulting in a reduction
in the issued and outstanding shares from 1,321,072,394 to 110,089,377. Shares reserved under the Company's equity and incentive
plans were adjusted to reflect the Share Consolidation. All share and per share data presented in the Company's consolidated financial