| Summary of Effect of Restatement Items |
The following tables present the effect of the Restatement Items on the Company’s consolidated balance sheet as of March 31,
2025 and March 31, 2024 (in thousands, except number of shares and per share data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2025 |
|
|
|
As Previously
Reported |
|
|
Restatement
Adjustment |
|
|
As Restated |
|
Warrant derivative liability |
|
$ |
- |
|
|
$ |
8,647 |
|
|
$ |
8,647 |
|
Total current liabilities |
|
|
94,404 |
|
|
|
8,647 |
|
|
|
103,051 |
|
Total liabilities |
|
|
430,488 |
|
|
|
8,647 |
|
|
|
439,135 |
|
Share capital |
|
|
8,796,406 |
|
|
|
(14,001 |
) |
|
|
8,782,405 |
|
Additional paid-in capital |
|
|
2,618,417 |
|
|
|
(47,472 |
) |
|
|
2,570,945 |
|
Deficit |
|
|
(10,928,145 |
) |
|
|
52,826 |
|
|
|
(10,875,319 |
) |
Total Canopy Growth Corporation shareholders’ equity |
|
|
487,213 |
|
|
|
(8,647 |
) |
|
|
478,566 |
|
Total shareholders’ equity |
|
|
487,213 |
|
|
|
(8,647 |
) |
|
|
478,566 |
|
Total liabilities and shareholders’ equity |
|
|
917,701 |
|
|
|
- |
|
|
|
917,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
|
|
As Previously
Reported |
|
|
Restatement
Adjustment |
|
|
As Restated |
|
Warrant derivative liability |
|
$ |
- |
|
|
$ |
99,941 |
|
|
$ |
99,941 |
|
Total current liabilities |
|
|
234,715 |
|
|
|
99,941 |
|
|
|
334,656 |
|
Total liabilities |
|
|
799,823 |
|
|
|
99,941 |
|
|
|
899,764 |
|
Share capital |
|
|
8,244,301 |
|
|
|
(24,979 |
) |
|
|
8,219,322 |
|
Additional paid-in capital |
|
|
2,602,148 |
|
|
|
(38,551 |
) |
|
|
2,563,597 |
|
Deficit |
|
|
(10,330,030 |
) |
|
|
(36,411 |
) |
|
|
(10,366,441 |
) |
Total Canopy Growth Corporation shareholders’ equity |
|
|
500,368 |
|
|
|
(99,941 |
) |
|
|
400,427 |
|
Total shareholders’ equity |
|
|
500,507 |
|
|
|
(99,941 |
) |
|
|
400,566 |
|
Total liabilities and shareholders’ equity |
|
|
1,300,330 |
|
|
|
- |
|
|
|
1,300,330 |
|
The correction of the warrant classification misstatement described above resulted in a decrease in share capital and additional paid-in capital with a corresponding increase in warrant derivative liability. Additionally, the warrant derivative liability is recorded at fair value in the consolidated statements of operations and comprehensive loss and due to the changes in fair value, the correction resulted in changes to the deficit balance. The following tables present the effect of the Restatement Items on the Company’s consolidated statement of operations and comprehensive loss for the years ended March 31, 2025 and 2024 (in thousands, except number of shares and per share data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, 2025 |
|
|
|
As Previously
Reported |
|
|
Restatement
Adjustment |
|
|
As Restated |
|
Net revenue |
|
$ |
268,995 |
|
|
$ |
- |
|
|
$ |
268,995 |
|
Gross margin |
|
|
79,511 |
|
|
|
- |
|
|
|
79,511 |
|
Operating loss from continuing operations |
|
|
(117,143 |
) |
|
|
- |
|
|
|
(117,143 |
) |
Other income (expense), net |
|
|
(479,854 |
) |
|
|
89,237 |
|
|
|
(390,617 |
) |
Loss from continuing operations before income taxes |
|
|
(596,997 |
) |
|
|
89,237 |
|
|
|
(507,760 |
) |
Net loss from continuing operations |
|
|
(604,138 |
) |
|
|
89,237 |
|
|
|
(514,901 |
) |
Net loss |
|
|
(598,115 |
) |
|
|
89,237 |
|
|
|
(508,878 |
) |
Net loss attributable to Canopy Growth Corporation |
|
|
(598,115 |
) |
|
|
89,237 |
|
|
|
(508,878 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share - continuing operations |
|
$ |
(5.62 |
) |
|
$ |
0.83 |
|
|
$ |
(4.79 |
) |
Basic and diluted loss per share |
|
$ |
(5.56 |
) |
|
$ |
0.83 |
|
|
$ |
(4.73 |
) |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
|
(604,138 |
) |
|
|
89,237 |
|
|
|
(514,901 |
) |
Comprehensive loss from continuing operations |
|
|
(591,018 |
) |
|
|
89,237 |
|
|
|
(501,781 |
) |
Comprehensive loss |
|
|
(584,995 |
) |
|
|
89,237 |
|
|
|
(495,758 |
) |
Comprehensive loss attributable to Canopy Growth Corporation |
|
|
(584,995 |
) |
|
|
89,237 |
|
|
|
(495,758 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, 2024 |
|
|
|
As Previously
Reported |
|
|
Restatement
Adjustment |
|
|
As Restated |
|
Net revenue |
|
$ |
297,146 |
|
|
$ |
- |
|
|
$ |
297,146 |
|
Gross margin |
|
|
80,882 |
|
|
|
- |
|
|
|
80,882 |
|
Operating loss from continuing operations |
|
|
(228,714 |
) |
|
|
- |
|
|
|
(228,714 |
) |
Other income (expense), net |
|
|
(242,641 |
) |
|
|
(36,411 |
) |
|
|
(279,052 |
) |
Loss from continuing operations before income taxes |
|
|
(471,355 |
) |
|
|
(36,411 |
) |
|
|
(507,766 |
) |
Net loss from continuing operations |
|
|
(483,682 |
) |
|
|
(36,411 |
) |
|
|
(520,093 |
) |
Net loss |
|
|
(675,795 |
) |
|
|
(36,411 |
) |
|
|
(712,206 |
) |
Net loss attributable to Canopy Growth Corporation |
|
|
(657,269 |
) |
|
|
(36,411 |
) |
|
|
(693,680 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share - continuing operations |
|
$ |
(6.47 |
) |
|
$ |
(0.48 |
) |
|
$ |
(6.95 |
) |
Basic and diluted loss per share |
|
$ |
(8.79 |
) |
|
$ |
(0.48 |
) |
|
$ |
(9.27 |
) |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
|
(483,682 |
) |
|
|
(36,411 |
) |
|
|
(520,093 |
) |
Comprehensive loss from continuing operations |
|
|
(496,933 |
) |
|
|
(36,411 |
) |
|
|
(533,344 |
) |
Comprehensive loss |
|
|
(689,046 |
) |
|
|
(36,411 |
) |
|
|
(725,457 |
) |
Comprehensive loss attributable to Canopy Growth Corporation |
|
|
(670,520 |
) |
|
|
(36,411 |
) |
|
|
(706,931 |
) |
The correction of the warrant classification misstatement described above resulted in a change in other income (expense), net resulting from the fair value movement of the warrant derivative liability. The valuation of the warrant derivative liability is dependent on various inputs and primarily affected by changes in the share price of Canopy Shares. The following table presents the affect of the Restatement Items on the Company’s consolidated statement of shareholders’ equity for the years ended March 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2025 |
|
|
|
As Previously
Reported |
|
|
Restatement
Adjustment |
|
|
As Restated |
|
Share capital |
|
$ |
8,796,406 |
|
|
$ |
(14,001 |
) |
|
$ |
8,782,405 |
|
Additional paid-in capital - Share-based reserve |
|
|
513,229 |
|
|
|
(9,820 |
) |
|
|
503,409 |
|
Additional paid-in capital - Warrants |
|
|
2,628,137 |
|
|
|
(37,652 |
) |
|
|
2,590,485 |
|
Deficit |
|
|
(10,928,145 |
) |
|
|
52,826 |
|
|
|
(10,875,319 |
) |
Total shareholders’ equity |
|
|
487,213 |
|
|
|
(8,647 |
) |
|
|
478,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
|
|
As Previously
Reported |
|
|
Restatement
Adjustment |
|
|
As Restated |
|
Share capital |
|
$ |
8,244,301 |
|
|
$ |
(24,979 |
) |
|
$ |
8,219,322 |
|
Additional paid-in capital - Share-based reserve |
|
|
514,578 |
|
|
|
(9,820 |
) |
|
|
504,758 |
|
Additional paid-in capital - Warrants |
|
|
2,610,519 |
|
|
|
(28,731 |
) |
|
|
2,581,788 |
|
Deficit |
|
|
(10,330,030 |
) |
|
|
(36,411 |
) |
|
|
(10,366,441 |
) |
Total shareholders’ equity |
|
|
500,507 |
|
|
|
(99,941 |
) |
|
|
400,566 |
|
The following table presents the effect of the Restatement Items on the Company’s consolidated statement of cash flows for the years ended March 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, 2025 |
|
|
|
As Previously
Reported |
|
|
Restatement
Adjustment |
|
|
As Restated |
|
Cashflows from operating activities: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(598,115 |
) |
|
$ |
89,237 |
|
|
$ |
(508,878 |
) |
Net loss from continuing operations |
|
|
(604,138 |
) |
|
|
89,237 |
|
|
|
(514,901 |
) |
Non-cash fair value adjustments and charges related to
settlement of unsecured senior notes |
|
|
413,412 |
|
|
|
(89,237 |
) |
|
|
324,175 |
|
Net cash used in operating activities - continuing operations |
|
|
(165,750 |
) |
|
|
- |
|
|
|
(165,750 |
) |
Net cash used in operating activities |
|
|
(165,750 |
) |
|
|
- |
|
|
|
(165,750 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, 2024 |
|
|
|
As Previously
Reported |
|
|
Restatement
Adjustment |
|
|
As Restated |
|
Cashflows from operating activities: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(675,795 |
) |
|
$ |
(36,411 |
) |
|
$ |
(712,206 |
) |
Net loss from continuing operations |
|
|
(483,682 |
) |
|
|
(36,411 |
) |
|
|
(520,093 |
) |
Non-cash fair value adjustments and charges related to
settlement of unsecured senior notes |
|
|
160,468 |
|
|
|
36,411 |
|
|
|
196,879 |
|
Net cash used in operating activities - continuing operations |
|
|
(228,421 |
) |
|
|
- |
|
|
|
(228,421 |
) |
Net cash used in operating activities |
|
|
(281,950 |
) |
|
|
- |
|
|
|
(281,950 |
) |
|