Full Press Release Details
AURORA CANNABIS INC.
Condensed Consolidated Interim Financial Statements
For the three and six months ended December
(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 | Lease Liabilities | 21 | |
| Note 2 | Significant Accounting Policies and Judgments | 9 | Note 16 | Share Capital | 21 | |
| Note 3 | Restructuring Provision | 12 | Note 17 | Share-Based Compensation | 22 | |
| Note 4 | Accounts Receivable | 12 | Note 18 | Loss per share | 24 | |
| Note 5 | Government Grant | 12 | Note 19 | Other Gains (Losses) | 25 | |
| Note 6 | Investments | 12 | Note 20 | Supplemental Cash Flow Information | 25 | |
| Note 7 | Marketable Securities and Derivatives | 14 | Note 21 | Commitments and Contingencies | 26 | |
| Note 8 | Investments in Associates and Joint Ventures | 16 | Note 22 | Revenue | 27 | |
| Note 9 | Biological Assets | 16 | Note 23 | Segmented Information | 28 | |
| Note 10 | Inventory | 17 | Note 24 | Fair Value of Financial Instruments | 30 | |
| Note 11 | Property, Plant and Equipment | 18 | Note 25 | Financial Instruments Risk | 31 | |
| Note 12 | Assets Held for Sale and Discontinued Operations | 19 | Note 26 | Asset Acquisition and Non-controlling Interests | 33 | |
| Note 13 | Intangible Assets and Goodwill | 20 | Note 27 | Subsequent Events | 33 | |
| Note 14 | Convertible Debentures | 21 |
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Financial
As at December 31, 2021 and June 30, 2021
(Unaudited - Amounts reflected in thousands of Canadian dollars)
| Notes | December 31, 2021 | June 30, 2021 | ||||||||||
| $ | $ | |||||||||||
| Assets | ||||||||||||
| Current | ||||||||||||
| Cash and cash equivalents | 332,404 | 421,457 | ||||||||||
| Restricted cash | 20 | 51,349 | 19,394 | |||||||||
| Accounts receivable | 4, 5, 25(a) | 50,109 | 56,261 | |||||||||
| Income taxes receivable | - | 221 | ||||||||||
| Marketable securities | 7(a) | 1,677 | 3,751 | |||||||||
| Biological assets | 9 | 31,970 | 20,250 | |||||||||
| Inventory | 10 | 117,560 | 117,471 | |||||||||
| Prepaids and other current assets | 11,802 | 11,169 | ||||||||||
| Assets held for sale | 12(a) | 7,568 | 15,918 | |||||||||
| 604,439 | 665,892 | |||||||||||
| Property, plant and equipment | 11 | 574,031 | 606,093 | |||||||||
| Derivatives | 7(b) | 36,737 | 59,382 | |||||||||
| Deposits | 2,613 | 3,538 | ||||||||||
| Loan receivable | 13,080 | 10,096 | ||||||||||
| Investments in associates and joint ventures | 8 | 6,440 | 289 | |||||||||
| Lease receivable | 4,679 | 4,256 | ||||||||||
| Intangible assets | 13 | 354,960 | 367,448 | |||||||||
| Goodwill | 13 | 888,405 | 887,737 | |||||||||
| Total assets | 2,485,384 | 2,604,731 | ||||||||||
| Liabilities | ||||||||||||
| Current | ||||||||||||
| Accounts payable and accrued liabilities | 25(b) | 52,802 | 57,944 | |||||||||
| Income taxes payable | 396 | - | ||||||||||
| Deferred revenue | 22 | 5,510 | 4,169 | |||||||||
| Convertible debentures | 14 | 38,334 | 34,749 | |||||||||
| Lease liabilities | 15 | 6,267 | 6,188 | |||||||||
| Contingent consideration payable | 227 | 374 | ||||||||||
| Provisions | 3 | 2,477 | 2,077 | |||||||||
| Other current liabilities | 16,852 | 10,874 | ||||||||||
| 122,865 | 116,375 | |||||||||||
| Convertible debentures | 14 | 310,419 | 293,182 | |||||||||
| Lease liabilities | 15 | 59,431 | 65,431 | |||||||||
| Derivative liability | 14, 16(c) | 37,894 | 91,939 | |||||||||
| Other long-term liability | 119 | 104 | ||||||||||
| Total liabilities | 530,728 | 567,031 | ||||||||||
| Shareholders' equity | ||||||||||||
| Share capital | 16 | 6,429,089 | 6,424,296 | |||||||||
| Reserves | 143,708 | 141,500 | ||||||||||
| Accumulated other comprehensive loss | (211,328 | ) | (207,011 | ) | ||||||||
| Deficit | (4,407,311 | ) | (4,321,085 | ) | ||||||||
| Total equity attributable to Aurora shareholders | 1,954,158 | 2,037,700 | ||||||||||
| Non-controlling interests | 26 | 498 | - | |||||||||
| Total equity | 1,954,656 | 2,037,700 | ||||||||||
| Total liabilities and equity | 2,485,384 | 2,604,731 |
Nature of Operations (Note 1)
Commitments and Contingencies (Note 21)
Subsequent Events (Note 27)
The accompanying notes are an integral part of these Condensed
Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Comprehensive
Three and six months ended December 31, 2021 and 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars,
except share and per share amounts)
| Three months ended December 31, | Six months ended December 31, | |||||||||||||||||||
| Recasted Note 2(d) | Recasted Note 2(d) | |||||||||||||||||||
| Notes | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Revenue from sale of goods | 22 | 68,417 | 79,025 | 137,894 | 160,873 | |||||||||||||||
| Revenue from provision of services | 22 | 543 | 550 | 992 | 1,149 | |||||||||||||||
| Excise taxes | (8,374 | ) | (11,902 | ) | (18,192 | ) | (26,756 | ) | ||||||||||||
| Net revenue | 60,586 | 67,673 | 120,694 | 135,266 | ||||||||||||||||
| Cost of sales | 10 | 71,653 | 50,506 | 105,016 | 95,954 | |||||||||||||||
| Gross (loss) profit before fair value adjustments | (11,067 | ) | 17,167 | 15,678 | 39,312 | |||||||||||||||
| Changes in fair value of inventory sold | 25,304 | 29,566 | 37,946 | 48,228 | ||||||||||||||||
| Unrealized gain on changes in fair value of biological assets | 9 | (41,951 | ) | (24,612 | ) | (53,296 | ) | (56,149 | ) | |||||||||||
| Gross profit | 5,580 | 12,213 | 31,028 | 47,233 | ||||||||||||||||
| Expense | ||||||||||||||||||||
| General and administration | 28,698 | 27,823 | 59,003 | 56,917 | ||||||||||||||||
| Sales and marketing | 14,263 | 14,138 | 29,718 | 29,132 | ||||||||||||||||
| Acquisition costs | 209 | - | 384 | 1,104 | ||||||||||||||||
| Research and development | 1,625 | 2,432 | 5,296 | 5,015 | ||||||||||||||||
| Depreciation and amortization | 11, 13 | 12,678 | 13,962 | 25,048 | 27,910 | |||||||||||||||
| Share-based compensation | 17(a)(b)(c) | 3,900 | 5,987 | 6,747 | 12,848 | |||||||||||||||
| 61,373 | 64,342 | 126,196 | 132,926 | |||||||||||||||||
| Loss from operations | (55,793 | ) | (52,129 | ) | (95,168 | ) | (85,693 | ) | ||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Legal settlement and contract termination fees | 21(a), (b)(i) | (117 | ) | (800 | ) | (206 | ) | (44,072 | ) | |||||||||||
| Interest and other income | 2,461 | 2,046 | 2,912 | 2,983 | ||||||||||||||||
| Finance and other costs | (15,904 | ) | (18,850 | ) | (31,244 | ) | (33,474 | ) | ||||||||||||
| Foreign exchange ("FX") loss | (2,355 | ) | (527 | ) | (1,907 | ) | 6,900 | |||||||||||||
| Other gains (losses) | 19 | 1,019 | 5,509 | 44,165 | (5,194 | ) | ||||||||||||||
| Restructuring charges | 3 | (541 | ) | - | (1,874 | ) | (210 | ) | ||||||||||||
| Impairment of deposits | - | (10,266 | ) | - | (10,266 | ) | ||||||||||||||
| Impairment of property, plant and equipment | 11, 12(a) | (4,281 | ) | (221,643 | ) | (4,281 | ) | (222,302 | ) | |||||||||||
| Impairment of intangible assets and goodwill | 13 | - | (395 | ) | - | (3,777 | ) | |||||||||||||
| (19,718 | ) | (244,926 | ) | 7,565 | (309,412 | ) | ||||||||||||||
| Loss from operations before taxes and discontinued operations | (75,511 | ) | (297,055 | ) | (87,603 | ) | (395,105 | ) | ||||||||||||
| Income tax recovery (expense) | ||||||||||||||||||||
| Current | (82 | ) | 118 | (255 | ) | 225 | ||||||||||||||
| Deferred, net | 450 | (3,285 | ) | 831 | (4,003 | ) | ||||||||||||||
| 368 | (3,167 | ) | 576 | (3,778 | ) | |||||||||||||||
| Net loss from continuing operations | (75,143 | ) | (300,222 | ) | (87,027 | ) | (398,883 | ) | ||||||||||||
| Net gain (loss) from discontinued operations, net of tax | - | 2,298 | - | (433 | ) | |||||||||||||||
| Net loss | (75,143 | ) | (297,924 | ) | (87,027 | ) | (399,316 | ) |
The accompanying notes are an integral part of these Condensed
Consolidated Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Comprehensive
Three and six months ended December 31, 2021 and 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars,
except share and per share amounts)
| Three months ended December 31, | Six months ended December 31, | |||||||||||||||||||
| Recasted Note 2(d) | Recasted Note 2(d) | |||||||||||||||||||
| Notes | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
| Other comprehensive (loss) income ("OCI") that will not be reclassified to net loss | ||||||||||||||||||||
| Unrealized loss on marketable securities | 7(a) | (805 | ) | (6,744 | ) | (1,721 | ) | (14,100 | ) | |||||||||||
| (805 | ) | (6,744 | ) | (1,721 | ) | (14,100 | ) | |||||||||||||
| Other comprehensive (loss) income that may be reclassified to net loss | ||||||||||||||||||||
| Share of income (loss) from investment in associates | 8 | - | (15 | ) | (2 | ) | 250 | |||||||||||||
| Foreign currency translation loss | (286 | ) | (2,191 | ) | (2,594 | ) | (3,867 | ) | ||||||||||||
| (286 | ) | (2,206 | ) | (2,596 | ) | (3,617 | ) | |||||||||||||
| Total other comprehensive loss | (1,091 | ) | (8,950 | ) | (4,317 | ) | (17,717 | ) | ||||||||||||
| Comprehensive loss from continuing operations | (76,234 | ) | (309,172 | ) | (91,344 | ) | (416,600 | ) | ||||||||||||
| Comprehensive loss from discontinued operations | - | 2,298 | - | (433 | ) | |||||||||||||||
| Comprehensive loss | (76,234 | ) | (306,874 | ) | (91,344 | ) | (417,033 | ) | ||||||||||||
| Net loss from continuing operations attributable to: | ||||||||||||||||||||
| Aurora Cannabis Inc. | (74,776 | ) | (300,222 | ) | (86,660 | ) | (397,419 | ) | ||||||||||||
| Non-controlling interests | (367 | ) | - | (367 | ) | (1,464 | ) | |||||||||||||
| Net loss from discontinued operations attributable to: | ||||||||||||||||||||
| Aurora Cannabis Inc. | 12(b) | - | 2,298 | - | (433 | ) | ||||||||||||||
| Comprehensive loss attributable to: | ||||||||||||||||||||
| Aurora Cannabis Inc. | (75,867 | ) | (306,874 | ) | (90,977 | ) | (416,364 | ) | ||||||||||||
| Non-controlling interests | (367 | ) | - | (367 | ) | (669 | ) | |||||||||||||
| Loss per share - basic and diluted | ||||||||||||||||||||
| Continuing operations | 18 | ($0.38 | ) | ($1.78 | ) | ($0.44 | ) | ($2.79 | ) | |||||||||||
| Discontinued operations | 18 | $- | $0.01 | $- | $- | |||||||||||||||
| Total operations | 18 | ($0.38 | ) | ($1.77 | ) | ($0.44 | ) | ($2.79 | ) |
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
Six months ended December 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 | Deficit | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
| # | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2021 | 198,068,923 | 6,424,296 | 200,214 | 27,667 | 419 | (86,800 | ) | 141,500 | (211,327 | ) | 18,919 | 210 | (14,813 | ) | (207,011 | ) | (4,321,085 | ) | - | 2,037,700 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares issued for services | - | 637 | - | - | - | - | - | - | - | - | - | - | - | - | 637 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued through equity financing | 16(b) | - | (444 | ) | - | - | - | - | - | - | - | - | - | - | - | - | (444 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
| Deferred tax on transaction costs | - | (831 | ) | - | - | - | - | - | - | - | - | - | - | - | - | (831 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
| Exercise of RSUs and DSUs | 17(b) | 212,928 | 4,539 | (4,539 | ) | - | - | (4,539 | ) | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation (1) | 17 | - | - | 6,747 | - | - | - | 6,747 | - | - | - | - | - | - | - | 6,747 | ||||||||||||||||||||||||||||||||||||||||||||||||
| NCI Contribution | 26 | - | - | - | - | - | - | - | - | - | - | - | - | 434 | 865 | 1,299 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued to treasury | 97,009 | 892 | - | - | - | - | - | - | - | - | - | - | - | - | 892 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive loss for the period | - | - | - | - | - | - | - | (1,721 | ) | - | (2 | ) | (2,594 | ) | (4,317 | ) | (86,660 | ) | (367 | ) | (91,344 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2021 | 198,378,860 | 6,429,089 | 202,422 | 27,667 | 419 | (86,800 | ) | 143,708 | (213,048 | ) | 18,919 | 208 | (17,407 | ) | (211,328 | ) | (4,407,311 | ) | 498 | 1,954,656 |
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
Six months ended December 31, 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars,
except share amounts)
| Share Capital | Reserves | AOCI | Recasted Note 2(d) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | 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 | ) | (3,596,011 | ) | (24,356 | ) | 2,123,226 | ||||||||||||||||||||||||||||||||||||||
| Shares issued for earn out payments | 2,639,172 | 35,152 | - | (15,792 | ) | - | - | (15,792 | ) | - | - | - | - | - | - | - | 19,360 | |||||||||||||||||||||||||||||||||||||||||||
| Shares issued through equity financing | 65,359,118 | 471,154 | - | - | - | - | - | - | - | - | - | - | - | - | 471,154 | |||||||||||||||||||||||||||||||||||||||||||||
| Equity financing transaction costs | - | (16,948 | ) | - | - | - | - | - | - | - | - | - | - | - | - | (16,948 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Shares issued for service | 44,094 | 552 | - | - | - | - | - | - | - | - | - | - | - | - | 552 | |||||||||||||||||||||||||||||||||||||||||||||
| Deferred tax on transaction costs | - | 3,777 | - | - | - | - | - | - | - | - | - | - | - | - | 3,777 | |||||||||||||||||||||||||||||||||||||||||||||
| Exercise of stock options | 5,084 | 30 | (11 | ) | - | - | - | (11 | ) | - | - | - | - | - | - | - | 19 | |||||||||||||||||||||||||||||||||||||||||||
| Exercise of RSUs | 104,404 | 4,633 | (4,633 | ) | - | - | - | (4,633 | ) | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | - | - | 11,568 | 1,280 | - | - | 12,848 | - | - | - | - | - | - | - | 12,848 | |||||||||||||||||||||||||||||||||||||||||||||
| Shares returned to treasury | (50,282 | ) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Change in ownership interests in subsidiaries | 830,287 | 5,629 | - | - | - | - | - | - | - | - | - | - | (31,449 | ) | 25,820 | - | ||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) for the period | - | - | - | - | - | - | - | (14,100 | ) | - | 250 | (3,867 | ) | (17,717 | ) | (397,852 | ) | (1,464 | ) | (417,033 | ) | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2020 | 184,160,688 | 6,289,374 | 195,727 | 28,461 | 419 | (86,800 | ) | 137,807 | (208,737 | ) | 18,919 | 223 | (15,319 | ) | (204,914 | ) | (4,025,312 | ) | - | 2,196,955 |
The accompanying notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
AURORA CANNABIS INC.
Condensed Consolidated Interim Statements of Cash
Six months ended December 31, 2021 and 2020
(Unaudited - Amounts reflected in thousands of Canadian dollars)
| Six months ended December 31, | ||||||||||||
| Recasted Note 2(d) | ||||||||||||
| Notes | 2021 | 2020 | ||||||||||
| $ | $ | |||||||||||
| Operating activities | ||||||||||||
| Net loss from continuing operations | (87,027 | ) | (398,883 | ) | ||||||||
| Adjustments for non-cash items: | ||||||||||||
| Unrealized gain on changes in fair value of biological assets | 9 | (53,296 | ) | (56,149 | ) | |||||||
| Changes in fair value included in inventory sold | 37,946 | 48,228 | ||||||||||
| Depreciation of property, plant and equipment | 11 | 33,788 | 34,063 | |||||||||
| Amortization of intangible assets | 13 | 16,806 | 18,374 | |||||||||
| Share-based compensation | 6,747 | 12,848 | ||||||||||
| Impairment of deposits | - | 10,266 | ||||||||||
| Impairment of property, plant and equipment | 11 | 4,281 | 222,302 | |||||||||
| Impairment of intangible assets and goodwill | 13 | - | 3,777 | |||||||||
| Accrued interest and accretion expense | 14 | 17,207 | 14,386 | |||||||||
| Interest and other income | (370 | ) | (191 | ) | ||||||||
| Deferred tax expense | (831 | ) | 3,778 | |||||||||
| Other (gains) losses | 19 | (32,984 | ) | 5,194 | ||||||||
| Foreign exchange (gain) loss | 1,826 | (20,944 | ) | |||||||||
| Restructuring charges | 400 | - | ||||||||||
| Changes in non-cash working capital | 20 | 11,278 | (66,148 | ) | ||||||||
| Net cash used in operating activities from discontinued operations | - | (3,494 | ) | |||||||||
| Net cash used in operating activities | (44,229 | ) | (172,593 | ) | ||||||||
| Investing activities | ||||||||||||
| Proceeds from disposal of marketable securities | 7 | - | 6,135 | |||||||||
| Loan receivable | (2,984 | ) | (4,826 | ) | ||||||||
| Purchase of property, plant and equipment and intangible assets | (16,818 | ) | (29,661 | ) | ||||||||
| Disposal of property, plant and equipment | 8,374 | 5,546 | ||||||||||
| Acquisition of businesses, net of cash acquired | 1,299 | - | ||||||||||
| Payment of contingent consideration | (150 | ) | - | |||||||||
| Deposits | 925 | (2,813 | ) | |||||||||
| Net cash provided by investing activities from discontinued operations | - | 2,050 | ||||||||||
| Net cash used in investing activities | (9,354 | ) | (23,569 | ) | ||||||||
| Financing activities | ||||||||||||
| Repayment of long-term loans | - | (22,542 | ) | |||||||||
| Repayment of convertible debenture | 14 | (6,126 | ) | - | ||||||||
| Payments of principal portion of lease liabilities | 15 | (4,178 | ) | (2,509 | ) | |||||||
| Restricted cash | 2(d) | (31,955 | ) | (50,000 | ) | |||||||
| Financing fees | - | (1,389 | ) | |||||||||
| Shares issued for cash, net of share issue costs | 1,085 | 493,438 | ||||||||||
| Net cash used in financing activities from discontinued operations | - | (331 | ) | |||||||||
| Net cash (used in) provided by financing activities | (41,174 | ) | 416,667 | |||||||||
| Effect of foreign exchange on cash and cash equivalents | 5,704 | 1,702 | ||||||||||
| (Decrease) increase in cash and cash equivalents | (89,053 | ) | 222,207 | |||||||||
| Cash and cash equivalents, beginning of period | 421,457 | 162,179 | ||||||||||
| Cash and cash equivalents, end of period | 332,404 | 384,386 |
Supplemental cash flow information (Note 20)
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 Nasdaq Global Select Market ("Nasdaq") 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 500 - 10355 Jasper Avenue, Edmonton, Alberta, Canada, T5J 1Y6. The Company's registered and records office address is Suite 1500
- 1055 West Georgia Street, Vancouver, British Columbia 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:
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" ("IAS 34") 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 (Note 2(d)) and estimates
for restructuring provisions (Note 3). 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 condensed consolidated interim financial
statements should be read in conjunction with our annual audited consolidated financial statements as at and for the year ended June 30,
2021, including the accompanying notes thereto.
Estimation Uncertainty
In March 2020, the World Health Organization declared
the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has impacted revenue in the Canadian consumer market, particularly in
Ontario, as governments imposed retail access restrictions to curbside pickup at points during the pandemic, and have changed their purchasing
patterns to reflect the slow-down in the market. The production and sale of medical and consumer cannabis have been recognized as essential
services across Canada. All of the Company's facilities in Canada and internationally continue to be operational and the Company
continues to work closely with local, national and international government authorities to ensure that the Company is following the required
protocols and guidelines related to COVID-19 within each region.
Due to the rapid developments and uncertainty surrounding
COVID-19, it is not possible to predict the impact that COVID-19 will have on the Company's business, financial position and operating
results in the future. In addition, it is possible that estimates in the Company's financial statements will change in the near
term as a result of COVID-19 and the effect of any such changes could be material, which could result in, among other things, impairment
of long-lived assets including intangibles and goodwill. The Company is closely monitoring the impact of the pandemic on all aspects of
The condensed consolidated interim financial statements
include the financial results of the Company and its subsidiaries. Subsidiaries include entities which are wholly-owned as well as entities
over which Aurora has the authority or ability to exert power over the investee's financial and/or operating decisions (i.e. control),
which in turn may affect the Company's exposure or rights to the variable returns from the investee. The condensed consolidated