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Fair Value of Financial Instruments | 9 Months Ended
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Dec. 31, 2022
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | 22. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: • Level 1 – defined as observable inputs such as quoted prices in active markets; • Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value measurement is categorized in its entirety by reference to its lowest level of significant input. The Company records cash, accounts receivable, interest receivable and accounts payable, and other accrued expenses and liabilities at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis may include items such as property, plant and equipment, goodwill and other intangible assets, equity and other investments and other assets. The Company determines the fair value of these items using Level 3 inputs, as described in the related sections below. The following table represents our financial assets and liabilities measured at estimated fair value on a recurring basis:
|  | Fair value measurement using |  |  |  |
|  | Quoted |  |  | Significant |  |  |  |  |  |  |
|  | prices in |  |  | other |  |  | Significant |  |  |  |
|  | active |  |  | observable |  |  | unobservable |  |  |  |
|  | markets |  |  | inputs |  |  | inputs |  |  |  |
|  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Total |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments |  | $ | 191,119 |  |  | $ | - |  |  | $ | - |  |  | $ | 191,119 |
Restricted short-term investments |  |  | 12,932 |  |  |  | - |  |  |  | - |  |  |  | 12,932 |
Other financial assets |  |  | 251 |  |  |  | - |  |  |  | 508,813 |  |  |  | 509,064 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Unsecured senior notes |  |  | - |  |  |  | 325,555 |  |  |  | - |  |  |  | 325,555 |
Warrant derivative liability |  |  | - |  |  |  | - |  |  |  | 668 |  |  |  | 668 |
Other liabilities |  |  | - |  |  |  | - |  |  |  | 43,102 |  |  |  | 43,102 |
March 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments |  | $ | 595,651 |  |  | $ | - |  |  | $ | - |  |  | $ | 595,651 |
Restricted short-term investments |  |  | 12,216 |  |  |  | - |  |  |  | - |  |  |  | 12,216 |
Other financial assets |  |  | 490 |  |  |  | - |  |  |  | 787,816 |  |  |  | 788,306 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Unsecured senior notes |  |  | - |  |  |  | 563,958 |  |  |  | - |  |  |  | 563,958 |
Liability arising from Acreage Arrangement |  |  | - |  |  |  | - |  |  |  | 47,000 |  |  |  | 47,000 |
Warrant derivative liability |  |  | - |  |  |  | - |  |  |  | 26,920 |  |  |  | 26,920 |
Other liabilities |  |  | - |  |  |  | - |  |  |  | 70,066 |  |  |  | 70,066 |
The following table summarizes the valuation techniques and significant unobservable inputs in the fair value measurement of significant level 2 financial instruments:
| Financial asset / financial liability |  | Valuation techniques |  | Key inputs
| Unsecured senior notes |  | Senior note pricing model |  | Quoted prices in over-the-counter broker market
The following table summarizes the valuation techniques and significant unobservable inputs in the fair value measurement of significant level 3 financial instruments:
| Financial asset / financial liability |  | Valuation techniques |  | Significant unobservable inputs |  | Relationship of unobservable inputs to fair value
| Acreage financial instrument |  | Probability weighted expected return model |  | Probability of each scenario |  | Change in probability of occurrence in each scenario will result in a change in fair value
|  |  |  |  | Number of common shares to be issued |  | Increase or decrease in value and number of common shares will result in a decrease or increase in fair value
|  |  |  |  | Probability and timing of US legalization |  | Increase or decrease in probability of US legalization will result in an increase or decrease in fair value
|  |  |  |  | Estimated premium on US legalization |  | Increase or decrease in estimated premium on US legalization will result in an increase or decrease in fair value
|  |  |  |  | Control premium |  | Increase or decrease in estimated control premium will result in an increase or decrease in fair value
|  |  |  |  | Market access premium |  | Increase or decrease in estimated market access premium will result in an increase or decrease in fair value
| TerrAscend Exchangeable Shares, TerrAscend Option |  | Put option pricing model |  | Probability and timing of US legalization |  | Increase or decrease in probability of US legalization will result in an increase or decrease in fair value
| Hempco Debenture |  | Discounted cash flow |  | Discount rate |  | Increase or decrease in discount rate will result in a decrease or increase in fair value
| TerrAscend warrants - December 2022 |  | Black-Sholes option pricing model |  | Probability and timing of US legalization |  | Increase or decrease in probability of US legalization will result in an increase or decrease in fair value
| Wana financial instrument - Call |  | Discounted cash flow |  | Expected future Wana cash flows |  | Increase or decrease in expected future Wana cash flows will result in an increase or decrease in fair value
| Option |  |  |  | Discount rate |  | Increase or decrease in discount rate will result in a decrease or increase in fair value
| Wana financial instrument - Deferred Payments |  | Monte Carlo simulation model |  | Probability and timing of US legalization |  | Increase or decrease in probability of US legalization will result in an increase or decrease in fair value
|  |  |  |  | Volatility of Wana equity |  | Increase or decrease in volatility will result in an increase or decrease in fair value
| Jetty financial instrument - |  | Discounted cash flow |  | Expected future Jetty cash flows |  | Increase or decrease in expected future Jetty cash flows will result in an increase or decrease in fair value
| Call Option |  |  |  | Discount rate |  | Increase or decrease in discount rate will result in a decrease or increase in fair value
| Jetty financial instrument - Deferred |  | Monte Carlo simulation model |  | Probability and timing of US legalization |  | Increase or decrease in probability of US legalization will result in an increase or decrease in fair value
| Payments |  |  |  | Volatility of Jetty equity and revenue |  | Increase or decrease in volatility will result in an increase or decrease in fair value
| Warrant derivative liability |  | Monte Carlo simulation model |  | Volatility of Canopy Growth share price |  | Increase or decrease in volatility will result in an increase or decrease in fair value
| BioSteel redeemable noncontrolling interest |  | Discounted cash flow |  | Discount rate |  | Increase or decrease in discount rate will result in a decrease or increase in fair value
|  |  |  |  | Expected future BioSteel cash flows |  | Increase or decrease in expected future BioSteel cash flows will result in an increase or decrease in fair value
| Vert Mirabel redeemable |  | Discounted cash flow |  | Discount rate |  | Increase or decrease in discount rate will result in a decrease or increase in fair value
| noncontrolling interest |  |  |  | Future wholesale price and production levels |  | Increase or decrease in future wholesale price and production levels will result in an increase or decrease in fair value

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- References No definition available. + Details
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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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