EX-99.1 2 fs20260630q12027.htm EX-99.1
AURORA CANNABIS INC.
Interim Condensed Consolidated Financial Statements
(Unaudited)
For the three months ended June 30, 2026 and 2025
(in Canadian Dollars)

Table of Contents

Interim Condensed Consolidated Statements of Financial Position | 3
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss | 4
Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity | 6
Interim Condensed Consolidated Statements of Cash Flows | 7
Notes to the Interim Condensed Consolidated Financial Statements |

Note 1 | Nature of Operations | 8 |  | Note 8 | Property, Plant and Equipment | 12 |  |  |  |
Note 2 | Basis of Presentation and Measurement | 8 |  | Note 9 | Share Capital | 13 |  |  |  |
Note 3 | Business Combination | 9 |  | Note 10 | Share-Based Compensation | 13 |  |  |  |
Note 4 | Discontinued Operations | 10 |  | Note 11 | Loss Per Share | 16 |  |  |  |
Note 5 | Biological Assets | 10 |  | Note 12 | Segmented Information | 17 |  |  |  |
Note 6 | Inventory | 11 |  | Note 13 | Supplemental Cash Flow Information | 18 |  |  |  |
Note 7 | Assets Held for Sale | 11 |  | Note 14 | Fair Value of Financial Instruments | 19 |  |  |  |
|  |  |  | Note 15 | Subsequent Event | 19 |  |  |  |

AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited)

($ thousands) | Note | June 30, 2026 | March 31, 2026
|  | $ | $
Assets |  |  |
Current assets |  |  |
Cash and cash equivalents |  | 69,307 |  | 64,690 |
Restricted cash | 13 | 49,086 |  | 47,791 |
Short-term investments |  | 30,722 |  | 52,213 |
Accounts receivable |  | 41,091 |  | 44,578 |
Biological assets | 5 | 24,000 |  | 20,213 |
Inventory | 6 | 163,543 |  | 154,862 |
Prepaids and other current assets |  | 12,564 |  | 11,120 |
Assets held for sale | 7 | 3,136 |  | 1,986 |
|  | 393,449 |  | 397,453 |
Property, plant and equipment | 8 | 146,752 |  | 123,688 |
Long-term investments |  | 12,533 |  | 12,113 |
Deposits and other long-term assets |  | 2,267 |  | 3,618 |
Lease receivable |  | 3,246 |  | 3,665 |
Intangible assets |  | 32,731 |  | 31,441 |
Goodwill |  | 27,342 |  | 26,651 |
Deferred tax assets |  | 2,557 |  | 2,458 |
Total assets |  | 620,877 |  | 601,087 |
Liabilities |  |  |
Current liabilities |  |  |
Accounts payable and accrued liabilities |  | 56,830 |  | 50,592 |
Income taxes payable |  | 7,439 |  | 6,959 |
Deferred revenue |  | 799 |  | 1,270 |
Lease liabilities - current portion |  | 5,875 |  | 5,729 |
Provisions |  | 2,486 |  | 2,380 |
|  | 73,429 |  | 66,930 |
Lease liabilities |  | 16,809 |  | 18,130 |
Derivative liabilities |  | 2,892 |  | 3,697 |
Other long-term liabilities |  | 569 |  | 498 |
Deferred tax liabilities |  | 47 |  | — |
Total liabilities |  | 93,746 |  | 89,255 |
Shareholders’ equity |  |  |
Share capital | 9 | 7,027,979 |  | 7,007,226 |
Contributed surplus |  | 158,807 |  | 160,108 |
Accumulated other comprehensive loss |  | (213,714) |  | (213,594) |
Accumulated deficit |  | (6,445,941) |  | (6,441,908) |
Total shareholders’ equity |  | 527,131 |  | 511,832 |
Total liabilities and shareholders’ equity |  | 620,877 |  | 601,087 |

See accompanying notes to these interim condensed consolidated financial statements.
3

AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)

|  |  | Three months ended June 30,
($ thousands) | Note |  |  | 2026 | 2025(1)
|  |  |  | $ | $
Revenue |  |  |  | 70,757 |  | 80,508
Excise taxes |  |  |  | (3,203) |  | (6,432)
Net revenue | 12 |  |  | 67,554 | 74,076
Cost of sales | 6 |  |  | 38,362 |  | 35,227
Gross profit before fair value adjustments |  |  |  | 29,192 | 38,849
Loss on changes in fair value of inventory and biological assets sold | 5, 6 |  |  | 32,272 |  | 31,437
Gain on changes in fair value of biological assets | 5 |  |  | (38,702) |  | (26,116)
Gross profit |  |  |  | 35,622 | 33,528
Operating expenses |  |  |  |  |
General and administration |  |  |  | 24,602 | 26,872
Sales and marketing |  |  |  | 15,591 | 14,455
Business development costs | 3 |  |  | 1,589 | 361
Research and development |  |  |  | 941 | 829
Depreciation and amortization | 8 |  |  | 937 | 767
Share-based compensation | 10 |  |  | 693 | 2,186
|  |  |  | 44,353 | 45,470
Other income (expenses) |  |  |  |
Interest and other income |  |  |  | 1,241 | 1,823
Finance and other costs |  |  |  | (464) | (486)
Foreign exchange gain (loss) |  |  |  | 2,881 | (86)
Other gains |  |  |  | 1,443 | 434
|  |  |  | 5,101 | 1,685
Loss before income tax (expense) recovery |  |  |  | (3,630) | (10,257)
Income tax (expense) recovery |  |  |  |  |
Current |  |  |  | (502) | 173
Deferred, net |  |  |  | 99 | (102)
|  |  |  | (403) | 71
Net loss from continuing operations |  |  |  | (4,033) | (10,186)
Net loss from discontinued operations, net of tax | 4 |  |  | — | (9,679)
Net loss |  |  |  | (4,033) | (19,865)

(1) A djusted for discontinued operations (Note 4).
See accompanying notes to these interim condensed consolidated financial statements.
4

AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)

|  |  | Three months ended June 30,
($ thousands) | Note |  |  | 2026 | 2025(1)
|  |  |  | $ | $
Net loss from continuing operations |  |  |  | (4,033) | (10,186)
Net loss from discontinued operations, net of tax | 4 |  |  | — | (9,679)
Net loss |  |  |  | (4,033) | (19,865)
Other comprehensive loss that may be reclassified to net loss |  |  |  |  |
Foreign currency translation loss |  |  |  | (120) | (685)
Total other comprehensive loss |  |  |  | (120) | (685)
Comprehensive loss from continuing operations |  |  |  | (4,153) | (10,871)
Comprehensive loss from discontinued operations | 4 |  |  | — | (9,679)
Comprehensive loss |  |  |  | (4,153) | (20,550)
Net loss from continuing operations attributable to: |  |  |  |  |
Common shareholders |  |  |  | (4,033) | (10,186)
Non-controlling interests |  |  |  | — | —
Net loss from discontinued operations attributable to: | 4 |  |  |  |
Common shareholders |  |  |  | — | (5,023)
Non-controlling interests |  |  |  | — | (4,656)
Comprehensive loss attributable to: |  |  |  |  |
Common shareholders |  |  |  | (4,153) | (15,894)
Non-controlling interests |  |  |  | — | (4,656)
Net loss per share - basic |  |  |  |  |
Continuing operations | 11 |  |  | (0.07) |  | (0.18) |
Discontinued operations | 11 |  |  | — |  | (0.09) |
Total operations | 11 |  |  | (0.07) |  | (0.27) |
Net loss per share - diluted |  |  |  |  |
Continuing operations | 11 |  |  | (0.07) |  | (0.18) |
Discontinued operations | 11 |  |  | — |  | (0.09) |
Total operations | 11 |  |  | (0.07) | (0.27) |

(1) Adjusted for discontinued operations (Note 4).
See accompanying notes to these interim condensed consolidated financial statements.
5

AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity
(Unaudited)

|  | Share Capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
($ thousands) | Note | Common Shares | Amount |  |  |  |  |  |  | Contributed Surplus |  |  |  |  |  | Accumulated Other Comprehensive Loss | Accumulated Deficit |  | Total
|  | # | $ |  |  |  |  |  |  | $ |  |  |  |  |  | $ | $ |  | $
Balance, March 31, 2026 |  | 58,947,593 |  | 7,007,226 |  |  |  |  |  |  |  | 160,108 |  |  |  |  |  |  | (213,594) |  | (6,441,908) |  |  | 511,832 |
Shares issued for business combination | 3 | 2,417,180 |  | 11,627 |  |  |  |  |  |  |  | — |  |  |  |  |  |  | — |  | — |  |  | 11,627 |
Shares issued through equity financing | 9(b) | 1,577,330 |  | 6,844 |  |  |  |  |  |  |  | (284) |  |  |  |  |  |  | — |  | — |  |  | 6,560 |
Share issuance costs | 9(b) | — |  | (233) |  |  |  |  |  |  |  | — |  |  |  |  |  |  | — |  | — |  |  | (233) |
Shares issued under share-based compensation plans | 10 | 367,958 |  | 2,515 |  |  |  |  |  |  |  | (2,515) |  |  |  |  |  |  | — |  | — |  |  | — |
Share-based compensation | 10 | — |  | — |  |  |  |  |  |  |  | 1,498 |  |  |  |  |  |  | — |  | — |  |  | 1,498 |
Comprehensive loss |  | — |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  |  | (120) |  | (4,033) |  |  | (4,153) |
Balance, June 30, 2026 |  | 63,310,061 |  | 7,027,979 |  |  |  |  |  |  |  | 158,807 |  |  |  |  |  |  | (213,714) |  | (6,445,941) |  |  | 527,131 |

|  | Share Capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
($ thousands) | Note | Common Shares | Amount |  |  |  |  |  |  | Contributed Surplus |  |  |  |  |  | Accumulated Other Comprehensive Loss | Accumulated Deficit | Non-Controlling Interests (Note 4) | Total
|  | # | $ |  |  |  |  |  |  | $ |  |  |  |  |  | $ | $ | $ | $
Balance, March 31, 2025 |  | 56,234,231 |  | 6,991,154 |  |  |  |  |  |  |  | 158,970 |  |  |  |  |  |  | (215,208) |  | (6,367,745) |  | 41,420 |  | 608,591 |
Share issuance costs |  | — |  | (73) |  |  |  |  |  |  |  | — |  |  |  |  |  |  | — |  | — |  | — |  | (73) |
Exercise of stock options |  | 3,968 |  | 46 |  |  |  |  |  |  |  | (16) |  |  |  |  |  |  | — |  | — |  | — |  | 30 |
Shares issued under share-based compensation plans | 10 | 14,461 |  | 287 |  |  |  |  |  |  |  | (287) |  |  |  |  |  |  | — |  | — |  | — |  | — |
Share-based compensation | 10 | — |  | — |  |  |  |  |  |  |  | 1,805 |  |  |  |  |  |  | — |  | — |  | — |  | 1,805 |
Put option liability |  | — |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  |  | — |  | (1,119) |  | — |  | (1,119) |
Comprehensive loss |  | — |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  |  | (685) |  | (15,209) |  | (4,656) |  | (20,550) |
Balance, June 30, 2025 |  | 56,252,660 |  | 6,991,414 |  |  |  |  |  |  |  | 160,472 |  |  |  |  |  |  | (215,893) |  | (6,384,073) |  | 36,764 |  | 588,684 |

See accompanying notes to these interim condensed consolidated financial statements.
6

AURORA CANNABIS INC.
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited)

|  |  | Three months ended June 30,
($ thousands) | Note |  |  | 2026 | 2025(1)
|  |  |  | $ | $
Operating activities |  |  |  |  |
Net loss from continuing operations |  |  |  | (4,033) |  | (10,186) |
Adjustments for non-cash items: |  |  |  |  |
Unrealized gain on changes in fair value of biological assets | 5 |  |  | (38,702) |  | (26,116) |
Changes in fair value of inventory and biological assets sold | 5, 6 |  |  | 32,272 |  | 31,437 |
Depreciation of property, plant and equipment |  |  |  | 3,872 |  | 4,004 |
Amortization of intangible assets |  |  |  | 93 |  | 164 |
Share-based compensation | 10 |  |  | 693 |  | 2,186 |
Net interest accrual and accretion |  |  |  | (112) |  | (394) |
Deferred tax (recovery) expense |  |  |  | (99) |  | 102 |
Other (gains) losses |  |  |  | (1,443) |  | 230 |
Foreign exchange gain |  |  |  | (3,358) |  | (241) |
Deferred compensation amortization |  |  |  | 951 |  | 951 |
Net cash provided by (used in) operating activities from continuing operations before changes in non-cash working capital |  |  |  | (9,866) |  | 2,137 |
Changes in non-cash working capital | 13 |  |  | 5,420 |  | 5,542 |
Net cash provided by (used in) operating activities from continuing operations |  |  |  | (4,446) |  | 7,679 |
Net cash provided by operating activities from discontinued operations |  |  |  | — |  | 2,442 |
Net cash provided by (used in) operating activities |  |  |  | (4,446) |  | 10,121 |
Investing activities |  |  |  |  |
Purchase of property, plant and equipment and intangible assets |  |  |  | (5,410) |  | (4,875) |
Proceeds from sale of short-term investments |  |  |  | 21,491 |  | — |
Acquisition of business, net of cash acquired | 3 |  |  | (14,842) |  | — |
Net cash provided by (used in) investing activities from continuing operations |  |  |  | 1,239 |  | (4,875) |
Net cash used in investing activities from discontinued operations |  |  |  | — |  | (159) |
Net cash provided by (used in) investing activities |  |  |  | 1,239 |  | (5,034) |
Financing activities |  |  |  |  |
Net principal payments of lease liabilities |  |  |  | (1,236) |  | (1,193) |
Proceeds from issuance of Common Shares | 9(b) |  |  | 6,844 |  | — |
Share issuance costs | 9(b) |  |  | (233) |  | — |
Proceeds from stock option exercise |  |  |  | — |  | 30 |
Net cash provided by (used in) financing activities from continuing operations |  |  |  | 5,375 |  | (1,162) |
Net cash used in financing activities from discontinued operations |  |  |  | — |  | (2,160) |
Net cash provided by (used in) financing activities |  |  |  | 5,375 |  | (3,322) |
Effect of foreign exchange on cash and cash equivalents |  |  |  | 2,449 |  | 474 |
Increase in cash and cash equivalents |  |  |  | 4,617 |  | 2,239 |
Cash and cash equivalents, beginning of period |  |  |  | 64,690 |  | 137,921 |
Cash and cash equivalents, end of period |  |  |  | 69,307 |  | 140,160 |

(1) Adjusted for discontinued operations (Note 4).
See accompanying notes to these interim condensed consolidated financial statements.
7

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 1 Nature of Operations
Aurora Cannabis Inc.’s (the “Company” or “Aurora”) principal strategic business lines are focused on the production, distribution and sale of medical cannabis products in Canada and internationally. The Company currently conducts the following key business activities in the jurisdictions specified below:
•Production, distribution and sale of medical cannabis products and, on a very limited basis, consumer cannabis products in Canada, pursuant to the Cannabis Act;
•Production and distribution of wholesale medical cannabis in the European Union (“EU”) pursuant to the German Medicinal Products Act and German Narcotic Drugs Act; and
•Distribution of wholesale medical cannabis in various international markets, including Australia and New Zealand.
The Company’s head office and principal address is 2207 90B St. SW, Edmonton, Alberta, Canada, T6X 0J9. The Company’s registered and records office address is Suite 1700, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8.
The Company’s shares are listed on the Nasdaq Capital 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”.
Note 2 Basis of Presentation and Measurement
The Company’s unaudited interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). Unless otherwise noted, all amounts are presented in thousands of Canadian dollars, except share and per share data. The accounting policies applied in the preparation of the interim condensed consolidated financial statements are consistent with those used in the annual audited consolidated financial statements for the year ended March 31, 2026.
The interim condensed consolidated financial statements do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with the Company’s audited annual consolidated financial statements for the year ended March 31, 2026.
These interim condensed consolidated financial statements were authorized for issue by the Audit Committee of the Board of Directors on August 4, 2026.
(a) Material Accounting Policies and Judgments
Preparation of these interim condensed consolidated financial statements requires management to make certain judgments, estimates and assumptions based on existing knowledge that affect the application of accounting policies and reported amounts and disclosures. Actual results could differ from these estimates and assumptions. Management has, to the extent reasonable, incorporated known facts and circumstances into estimates made, however actual results could differ from those estimates and those differences could be material. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
(b) Adoption of New Accounting Pronouncements
On April 1, 2026, the Company adopted the amendments to IFRS 9, Financial Instruments, and IFRS 7, Financial Instruments: Disclosures, relating to the classification and measurement requirements of financial instruments recognized within those standards. These amendments include, among others:
•Clarify that a financial liability is to be derecognized on the 'settlement date' and introduces an accounting policy to derecognize financial liabilities settled through an electronic payment system before settlement date if certain conditions are met; and
•Require additional disclosures for financial assets and liabilities with contractual terms that reference a contingent event and equity instruments classified at fair value through other comprehensive income.
The Company uses the settlement date to derecognize financial liabilities for electronic payments. The other amendments did not have an impact upon adoption.
(c) New Accounting Pronouncements Not Yet Adopted
IFRS 18, Presentation and Disclosures in Financial Statements, replaces IAS 1, Presentation of Financial Statements for reporting periods beginning on or after January 1, 2027, including for interim financial statements with retrospective application. IFRS 18 introduces a specified structure for the income statement by requiring income and expenses to be presented into the three defined categories of operating, investing and financing, and by specifying certain defined totals and subtotals.
Where company-specific measures related to the income statement are provided, IFRS 18 requires companies to disclose explanations around these measures, which are referred to as management defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation and disaggregation which apply to the primary financial statements and the notes. The Company intends to adopt IFRS 18 upon its mandatory effective date and is currently assessing the impact of the Standard on its consolidated financial statements. The Company expects that its consolidated statements of loss and comprehensive loss will require further disaggregation, including the addition of new subtotals not currently presented and the potential for additional categories of operating expenses requiring disclosure on the face of the consolidated
8

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
statements of loss and comprehensive loss. The Company also expects its consolidated statements of cash flows will be impacted by the application of IFRS 18, since it applies the indirect method for presenting its consolidated statements of cash flows, whereby net income will no longer be the starting point, which is expected to be replaced by operating profit. Further, management will be required to disclose in the notes to the consolidated financial statements certain performance measures currently disclosed and reconciled in management’s discussion and analysis.
Note 3 Business Combination
Safari Flower Company
On April 14, 2026 (the “acquisition date”), a wholly-owned subsidiary of the Company acquired 100% of the shares of Safari Flower Company (“Safari”). The purchase consideration comprises cash consideration of $15.0 million, subject to customary post-closing adjustments, and the issuance of 2,417,180 Common Shares with a fair value on the acquisition date of $11.6 million. Included in the cash consideration is $2.0 million that is contingent upon satisfying European Union Good Manufacturing Practice ("EU-GMP") certification conditions, or is otherwise repayable to the Company. The acquisition of Safari provides the Company with incremental EU-GMP certified cultivation and manufacturing capacity that is closely aligned with its existing operations. The additional capacity will be used to supply EU-GMP certified flower to the Company’s key international markets, including Germany, Australia, Poland, and the United Kingdom, and support further market expansion.
The acquisition has been accounted for as a business combination, and the results of Safari have been consolidated with those of the Company, commencing on the acquisition date.
Transaction costs of $1.0 million were expensed to business development costs in the interim condensed consolidated statements of loss and comprehensive loss and are part of operating cash flows in the interim condensed consolidated statements of cash flows.
The following table sets forth the provisional calculation of the purchase price and the provisional allocation of the purchase price based on the estimated fair values of the identifiable assets acquired and liabilities assumed on the acquisition date. The purchase consideration and certain elements of the purchase price allocation are provisional pending finalization of customary post-closing adjustments, including a working capital adjustment.

Provisional purchase consideration |  |  |
|  |  | $
Cash consideration (a) |  |  | 13,103 |
Common shares issued |  |  | 11,627 |
Total fair value of consideration |  |  | 24,730 |
Provisional purchase price allocation |  |  |
Cash and cash equivalents |  |  | 158 |
Accounts receivable |  |  | 293 |
Biological assets |  |  | 585 |
Inventory |  |  | 917 |
Prepaid expenses and other current assets |  |  | 526 |
Property, plant and equipment |  |  | 22,517 |
Intangible asset(b) |  |  | 800 |
|  |  | 25,796 |
Accounts payable and accrued liabilities |  |  | 1,019 |
Deferred tax liability |  |  | 47 |
Total identifiable net assets at fair value |  |  | 24,730 |
Net cash outflows |  |  |
Cash consideration paid(a) |  |  | 15,000 |
Cash and cash equivalents acquired |  |  | (158) |
Acquisition of business, net of cash acquired |  |  | 14,842 |

a.Cash consideration paid of $15.0 million is subject to a customary post-closing working capital adjustment, which was provisionally determined to be a reduction of $0.7 million and recognized in accounts receivable in the interim condensed consolidated statements of financial position as at June 30, 2026.
In respect of the $2.0 million contingent cash consideration, the fair value of the contingent consideration was determined to be $0.7 million based on the Company’s expectation, as at the acquisition date, of the satisfaction of conditions under the agreement. The Company will revalue the contingent consideration at each reporting date, with any changes recognized in the consolidated statements of loss and comprehensive loss (see Note 14). As at June 30, 2026, the fair value of the contingent consideration remains at $0.7 million.
9

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
b.The Company has acquired an existing GMP license which is classified as an intangible asset and measured at fair value. The fair value of the license was determined to be $0.8 million based on its incremental discounted cash flows. For the three months ended June 30, 2026, the Company has recognized $0.1 million in the interim condensed consolidated statements of loss and comprehensive loss in respect of amortization for the GMP license.
From the acquisition date, Safari has contributed $2.8 million of revenue and $1.7 million of net profit before tax from continuing operations. If the acquisition had been completed on April 1, 2026, the additional financial impact was immaterial.
Note 4 Discontinued Operations
Bevo
On February 17, 2026, the Company disposed of its 50.1% controlling interest in Bevo Agtech Inc. (“Bevo”), the sole parent of Bevo Farms Ltd., resulting in the Company no longer controlling Bevo and, accordingly, classifying the operations of Bevo as discontinued operations. Prior to the divestiture, Bevo comprised the Company’s plant propagation operating segment and constituted a cash generating unit.
The following table summarizes the financial results of Bevo presented as discontinued operations for the prior period:

|  | Three months ended June 30,
|  | 2025
|  | $
Revenue |  | 23,947 |
Cost of sales |  | 26,828 |
Loss on changes in fair value of inventory and biological assets sold |  | 5,237 |
Gain on changes in fair value of biological assets |  | (2,542) |
Gross loss |  | (5,576) |
Operating expenses |  | (2,720) |
Other expenses |  | (1,314) |
Income tax expense |  | (69) |
|  | (4,103) |
Net loss |  | (9,679) |

Note 5 Biological Assets
The changes in the carrying value of biological assets during the period are as follows:

| Note | $ |
Balance, March 31, 2026 |  | 20,213 |  |
Production costs capitalized |  | 16,655 |  |
Biological assets acquired through business combinations | 3 | 585 |  |
Gain on changes in fair value of biological assets |  | 38,702 |  |
Transferred to inventory upon harvest |  | (52,667) |  |
Other |  | 512 |  |
Balance, June 30, 2026 |  | 24,000 |  |

As of June 30, 2026, the weighted average fair value less cost to complete and cost to sell a gram of dried cannabis produced at the Company’s cannabis cultivation facilities was $3.17 per gram (March 31, 2026 – $3.22 per gram) and the stage of completion of cannabis was 46% (March 31, 2026 – 42%).
During the three months ended June 30, 2026, the Company’s cannabis biological assets produced 14,986 kilograms of dried cannabis (three months ended June 30, 2025 – 11,690 kilograms).
10

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 6 Inventory

| June 30, 2026 | March 31, 2026
| Capitalized cost | Fair value adjustment | Carrying value | Capitalized cost | Fair value adjustment | Carrying value
| $ | $ | $ | $ | $ | $
Harvested cannabis |  |  |  |  |  |
Work-in-process | 60,984 |  | 54,137 |  | 115,121 |  | 58,021 |  | 51,713 |  | 109,734 |
Finished goods | 16,523 |  | 12,819 |  | 29,342 |  | 14,173 |  | 11,800 |  | 25,973 |
| 77,507 |  | 66,956 |  | 144,463 |  | 72,194 |  | 63,513 |  | 135,707 |
Extracted cannabis |  |  |  |  |  |
Work-in-process | 3,248 |  | 1,814 |  | 5,062 |  | 3,768 |  | 1,916 |  | 5,684 |
Finished goods | 7,954 |  | 719 |  | 8,673 |  | 7,370 |  | 655 |  | 8,025 |
| 11,202 |  | 2,533 |  | 13,735 |  | 11,138 |  | 2,571 |  | 13,709 |
Supplies and consumables | 4,634 |  | — |  | 4,634 |  | 4,701 |  | — |  | 4,701 |
Merchandise and accessories | 711 |  | — |  | 711 |  | 745 |  | — |  | 745 |
Ending balance | 94,054 |  | 69,489 |  | 163,543 |  | 88,778 |  | 66,084 |  | 154,862 |

During the three months ended June 30, 2026, inventory expensed to cost of sales was $70.6 million (three months ended June 30, 2025 – $72.6 million), which included $32.3 million (three months ended June 30, 2025 – $31.4 million) related to the changes in fair value of inventory sold.
During the three months ended June 30, 2026, the Company recognized $13.9 million in inventory provisions and net realizable value adjustments (three months ended June 30, 2025 – $12.9 million) consisting of cost of sales of $7.8 million (three months ended June 30, 2025 – $5.9 million) and changes in fair value of inventory sold of $6.1 million (three months ended June 30, 2025 – $7.0 million). As at June 30, 2026, the inventory provision was $24.3 million (March 31, 2026 – $27.3 million).
Note 7 Assets Held for Sale
Assets held for sale are comprised of the following:

| Note |  | Land | Equipment |  | Total
|  |  | $ | $ |  | $
Balance, March 31, 2026 |  |  | 1,615 | 371 |  | 1,986
Transfer from property, plant and equipment | 8 |  | 1,104 |  | — |  |  | 1,104 |
Foreign exchange |  |  | 46 |  | — |  |  | 46 |
Balance, June 30, 2026 |  |  | 2,765 | 371 |  | 3,136

Land
During the three months ended June 30, 2026, the Company listed for sale excess land resulting in a transfer of $1.1 million, representing its net book value, from property, plant and equipment to assets held for sale.
During the year ended March 31, 2026, the Company listed land for sale, which was reclassified to assets held for sale and measured at its carrying value. On July 22, 2026, the land was sold and the Company received $2.2 million in cash, net of transaction costs of $0.1 million.
Equipment
Equipment reclassified to assets held for sale as at March 31, 2026 relates to equipment used exclusively in the Company's consumer channel, which is winding down. Upon its reclassification, the equipment was measured at its fair value less costs to dispose.
11

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 8 Property, Plant and Equipment
The following summarizes the carrying values of property, plant and equipment:

| June 30, 2026 | March 31, 2026
| Cost | Accumulated depreciation |  | Net book value | Cost | Accumulated depreciation (1) |  | Net book value
| $ | $ |  | $ | $ | $ |  | $
Owned assets |  |  |  |  |  |  |  |
Land | 12,151 |  | — |  |  | 12,151 |  | 12,052 |  | — |  |  | 12,052 |
Buildings | 139,677 |  | (57,942) |  |  | 81,735 |  | 110,125 |  | (48,885) |  |  | 61,240 |
Construction in progress | 22,166 |  | (514) |  |  | 21,652 |  | 17,464 |  | (514) |  |  | 16,950 |
Computer software & equipment | 21,622 |  | (20,497) |  |  | 1,125 |  | 21,351 |  | (20,351) |  |  | 1,000 |
Furniture & fixtures | 7,071 |  | (5,875) |  |  | 1,196 |  | 7,024 |  | (5,755) |  |  | 1,269 |
Production & other equipment | 83,030 |  | (66,994) |  |  | 16,036 |  | 82,455 |  | (64,672) |  |  | 17,783 |
Total owned assets | 285,717 |  | (151,822) |  |  | 133,895 |  | 250,471 |  | (140,177) |  |  | 110,294 |
Right-of-use leased assets |  |  |  |  |  |  |  |
Land | — |  | — |  |  | — |  | 1,990 |  | (1,990) |  |  | — |
Buildings | 35,573 |  | (23,017) |  |  | 12,556 |  | 35,487 |  | (22,295) |  |  | 13,192 |
Production & other equipment | 5,762 |  | (5,461) |  |  | 301 |  | 4,499 |  | (4,297) |  |  | 202 |
Total right-of-use lease assets | 41,335 |  | (28,478) |  |  | 12,857 |  | 41,976 |  | (28,582) |  |  | 13,394 |
Total property, plant and equipment | 327,052 |  | (180,300) |  |  | 146,752 |  | 292,447 |  | (168,759) |  |  | 123,688 |

(1) Comparative amounts have been re-presented to conform to current year presentation, with impairment no longer shown separately, as such amounts are not material.
The following summarizes the changes in the net book values of property, plant and equipment for the three months ended June 30, 2026:

| Balance, March 31, 2026 | Additions | Additions from business combination (2) |  | Other (1) | Depreciation |  |  | Foreign currency translation | Balance, June 30, 2026
| $ | $ | $ |  | $ | $ |  |  | $ | $
Owned assets |  |  |  |  |  |  |  |  |  |
Land | 12,052 |  | — |  | 880 |  |  | (781) |  | — |  |  |  | — |  | 12,151 |
Buildings | 61,240 |  | 48 |  | 20,803 |  |  | 519 |  | (974) |  |  |  | 99 |  | 81,735 |
Construction in progress | 16,950 |  | 4,669 |  | — |  |  | (20) |  | — |  |  |  | 53 |  | 21,652 |
Computer software & equipment | 1,000 |  | 205 |  | — |  |  | 9 |  | (282) |  |  |  | 193 |  | 1,125 |
Furniture & fixtures | 1,269 |  | 19 |  | — |  |  | (26) |  | (166) |  |  |  | 100 |  | 1,196 |
Production & other equipment | 17,783 |  | 15 |  | 834 |  |  | (984) |  | (1,829) |  |  |  | 217 |  | 16,036 |
Total owned assets | 110,294 |  | 4,956 |  | 22,517 |  |  | (1,283) |  | (3,251) |  |  |  | 662 |  | 133,895 |
Right-of-use leased assets |  |  |  |  |  |  |  |  |
Buildings | 13,192 |  | — |  | — |  |  | — |  | (718) |  |  |  | 82 |  | 12,556 |
Production & other equipment | 202 |  | 145 |  | — |  |  | — |  | (51) |  |  |  | 5 |  | 301 |
Total right-of-use lease assets | 13,394 |  | 145 |  | — |  |  | — |  | (769) |  |  |  | 87 |  | 12,857 |
Total property, plant and equipment | 123,688 |  | 5,101 |  | 22,517 |  |  | (1,283) |  | (4,020) |  |  |  | 749 |  | 146,752 |

(1) Includes reclassification of construction in progress when associated projects are complete, transfers to assets held for sale (Note 7) and reclassifications between asset classes.
(2) Refer to Note 3 - Business Combination.
12

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Depreciation relating to manufacturing equipment and production facilities for owned and right-of-use leased assets is capitalized to inventory and is expensed to cost of sales upon the sale of goods. During the three months ended June 30, 2026, the Company recognized $4.0 million (three months ended June 30, 2025 – $6.0 million) of depreciation expense for manufacturing equipment and production facilities, of which $2.5 million (three months ended June 30, 2025 – $2.8 million) was expensed to cost of sales.
Note 9 Share Capital
(a) Shares Issued and Outstanding
At June 30, 2026, 63,310,061 Common Shares (March 31, 2026 – 58,947,593) were issued and outstanding. During the three months ended June 30, 2026, 2,417,180 Common Shares were issued in connection with the acquisition of Safari (Note 3) and 1,577,330 Common Shares were issued under the ATM program (Note 9(b)).
(b) At-The-Market Equity Program (“ATM Program”)
On February 4, 2026, the Company filed a prospectus supplement, establishing a new ATM Program that allows the Company to issue and sell up to U.S.$100 million of Common Shares in the capital of the Company from treasury to the public.

|  |  | US$ equivalent
|  | Three months ended June 30 |  | Three months ended June 30
|  | 2026 | 2025 |  | 2026 | 2025
Gross proceeds |  | $ | 6,844 |  | $ | — |  |  | $ | 4,889 |  | $ | — |
Commission |  | $ | 162 |  | $ | — |  |  | $ | 98 |  | $ | — |
Net proceeds |  | $ | 6,682 |  | $ | — |  |  | $ | 4,791 |  | $ | — |
Weighted average gross price |  | $ | 4.29 |  | $ | — |  |  | $ | 3.09 |  | $ | — |
Number of shares issued |  | 1,577,330 |  | — |  |  | 1,577,330 |  | — |

In addition, during the three months ended June 30, 2026, the Company sold 52,658 shares for gross proceeds of $0.2 million which were subsequently settled on July 2, 2026. As at June 30, 2026, the obligation to issue shares resulted in an increase in contributed surplus in the interim condensed consolidated statements of changes in shareholders’ equity with a corresponding increase to accounts receivable on the interim condensed consolidated statements of financial position. During the three months ended June 30, 2026, the Company incurred $0.2 million (three months ended June 30, 2025 – $nil) in transaction costs directly related to the ATM Program, which were recognized in the interim condensed consolidated statements of changes in shareholders’ equity.
Note 10 Share-Based Compensation
(a) Stock Options
The Option Plan provides the right for directors, officers, employees and consultants to purchase shares at a specified price (exercise price) in the future. The stock options have a service requirement of three years, vest 1/3 on each grant date anniversary over the three years and are amortized on an accelerated basis over that period. Stock options expire after five years.
A summary of stock options outstanding is as follows:

| Stock options | Weighted average exercise price
| # | $
Balance, March 31, 2026 | 1,992,445 |  | 12.74
Granted | 369,370 |  | 4.22 |
Expired | (25,896) |  | 86.30 |
Balance, June 30, 2026 | 2,335,919 |  | 10.58

The following table summarizes the stock options that are outstanding as at June 30, 2026:

Exercise Price | Expiry Date | Weighted average remaining life | Options outstanding | Options exercisable
$ |  |  | # | #
4.22 - 7.91 | June 23, 2028 - June 18, 2031 | 3.35 | 1,966,495 |  | 1,055,328 |
16.70 - 48.60 | February 28, 2027 - September 23, 2027 | 1.21 | 302,867 |  | 302,867 |
82.20 - 112.40 | September 30, 2026 - November 30, 2026 | 0.26 | 66,557 |  | 66,557 |
|  |  | 2,335,919 |  | 1,424,752 |

During the three months ended June 30, 2026, stock option expense of $0.6 million (three months ended June 30, 2025 – $0.7 million) was recognized in share-based compensation in the interim condensed consolidated statements of loss and comprehensive loss.
13

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Stock options granted during the periods presented below were fair valued based on the following weighted average assumptions:

| Three months ended June 30,
| 2026 | 2025
Risk-free annual interest rate (1) | 2.86 | % | 2.66 | %
Expected annual dividend yield | — | % | — | %
Expected stock price volatility (2) | 85.53 | % | 91.41 | %
Expected life of options (years) (3) | 3.3 | 3.1
Forfeiture rate | 7.98 | % | 8.78 | %
Fair value | $ | 2.46 |  | $ | 3.50 |
Exercise price | $ | 4.22 |  | $ | 5.90 |

(1)The risk-free rate is based on Canada government bonds with a remaining term equal to the expected life of the options.
(2)Volatility was estimated by using the Company’s historical share price over a commensurate period of the expected life.
(3)The expected life in years represents the period of time that options granted are expected to be outstanding, based on historical actuals.
(b) Restricted Share Units (“RSUs”)
The RSU Plan was designed to provide certain executive officers and other key employees of the Company and its subsidiaries with the opportunity to acquire RSUs of the Company in order to enable them to participate in the long-term success of the Company and to promote a greater alignment of their interests with the interests of the shareholders. Under the terms of the RSU Plan, officers, employees and consultants of the Company may be granted RSUs that are released as Common Shares upon completion of the vesting period. Each RSU gives the participant the right to receive one common share of the Company. The RSUs have a service requirement of three years, vest 1/3 on each grant date anniversary over the three years and are amortized on an accelerated basis over that period. RSUs expire after three years.
A summary of the RSUs outstanding is as follows:

| RSUs |
| # |
Balance, March 31, 2026 | 1,023,746 |  |
Issued | 1,043,203 |  |
Vested | (401,854) |  |
Forfeited | (53,340) |  |
Balance, June 30, 2026 | 1,611,755 |  |

During the three months ended June 30, 2026, RSU expens e of $0.7 million (three months ended June 30, 2025 – $0.9 million) was recognized in the interim condensed consolidated statements of loss and comprehensive loss.
(c) Deferred Share Units (“DSUs”)
Under the terms of the Company’s Non-Employee Directors Deferred Share Unit Plan (the “DSU Plan”), non-employee directors of the Company may be granted DSUs. Each non-employee director is entitled to redeem their DSUs for a period of 180 days following their termination date, being the date of their retirement from the Board. The DSUs can be redeemed, at the Company’s sole discretion, for (i) cash (Note 10(e)); (ii) Common Shares issued from treasury; (iii) Common Shares purchased in the open market; or (iv) any combination of the foregoing. DSUs are issued in recognition of past service for non-employee directors and are expensed immediately at fair value to share-based compensation expense in the interim condensed consolidated statements of loss and comprehensive loss. DSUs vest immediately upon grant and have no expiry date.
14

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
A summary of the DSUs outstanding is as follows:

| DSUs (1) |
| # |
Balance, March 31, 2026 | 322,638 |  |
Issued | 36,228 |  |
Balance, June 30, 2026 | 358,866 |  |

(1)Includes DSUs issued under cash settlement plan (Note 10(e)).
During the three months ended June 30, 2026, DSU expense of $nil (three months ended June 30, 2025 – $0.1 million) was recognized in share-based compensation in the interim condensed consolidated statements of loss and comprehensive loss.
(d) Performance Share Units (“PSUs”)
Under the terms of the Company’s Performance Share Unit Plan (the “PSU Plan”), officers, employees and consultants of the Company may be granted PSUs that are released as Common Shares equal to the market price of Common Shares on the entitlement date, multiplied by the number of performance share units being settled. In each case, upon the three year cliff vesting date, the performance share units are subject to performance conditions multiplied by the achieved performance ratio. If the performance criteria are not met at the time of vesting, the PSUs will expire. The PSUs are amortized on a straight line basis over the three year period and expire after three years.
A summary of the PSUs outstanding is as follows:

| PSUs(1) |
| # |
Balance, March 31, 2026 | 1,651,009 |  |
Granted | 1,203,737 |  |
Vested | (39,084) |  |
Forfeited | (33,355) |  |
Expired | (34,460) |  |
Balance, June 30, 2026 | 2,747,847 |  |

(1)Includes PSUs issued under cash settlement plan (Note 10(e)).
Duri ng the three months ended June 30, 2026, a PSU recovery of $0.6 million (three months ended June 30, 2025 – expense of $0.5 million) was recognized in share-based compensation in the interim condensed consolidated statements of loss and comprehensive loss.
The PSUs granted during the periods presented below were fair valued based on the following weighted average assumptions:

|  | Three months ended June 30,
|  |  | 2026 | 2025
Risk-free annual interest rate (1) |  |  | 2.78 | % | 2.58 | %
Dividend yield |  |  | — | % | — | %
Expected stock price volatility (2) |  |  | 71.50 | % | 74.99 | %
Expected stock price volatility of peer group (2) |  |  | 74.94 | % | 83.40 | %
Expected life of PSUs (years) (3) |  |  | 3.00 | 3.00
Forfeiture rate |  |  | 26.65 | % | 16.61 | %
Equity correlation against peer group (4) |  |  | 72.47 | % | 37.63 | %

(1)The risk-free rate is based on Canada government bonds with a remaining term equal to the expected life of the PSUs.
(2)Volatility was estimated by using the Company’s historical share price over a commensurate period of the expected life.
(3)The expected life in years represents the period of time that the PSUs granted are expected to be outstanding.
(4)The equity correlation is estimated by using 1-year historical equity correlations for the Company and the peer group of companies.
(e) Cash Settled DSUs and PSUs
During the three months ended June 30, 2026, the Company issued 36,228 DSUs and 1,203,737 PSUs, which will be settled in cash, pursuant to the DSU Plan and PSU Plan, respectively. The DSUs and PSUs issued under these plans are included in the continuities above.
15

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
The DSUs subject to cash settlement are classified as a derivative liability in the interim condensed consolidated statements of financial position and are initially measured at fair value. These DSUs are remeasured at each reporting period with changes in fair value recognized in share-based compensation expense. Upon settlement, the DSUs are remeasured and the derivative liability is extinguished at the remeasured amount. As at June 30, 2026, the related derivative liability was $1.3 million (March 31, 2026 – $1.3 million).
The PSUs subject to cash settlement are classified as a derivative liability in the interim condensed consolidated statements of financial position. They are initially measured at fair value using a Monte Carlo simulation model, which is classified as level 2 on the fair value hierarchy. These PSUs have a service requirement of three years and are amortized ratably over that period. These PSUs are remeasured at fair value each reporting period, with the changes in fair value recognized in share-based compensation expense. As at June 30, 2026, the related derivative liability was $1.5 million (March 31, 2026 – $2.3 million).
Note 11 Loss per Share
The following is a reconciliation of basic loss per share:

|  | Three months ended June 30, |
|  |  | 2026 | 2025 |
​ |  |  |  |  |
Net loss from continuing operations attributable to common shareholders |  |  | $ | (4,033) |  | $ | (10,186) |  |
Net loss from discontinued operations attributable to common shareholders |  |  | $ | — |  | $ | (5,023) |  |
Net loss attributable to common shareholders |  |  | $ | (4,033) |  | $ | (15,209) |  |
Weighted average number of Common Shares outstanding |  |  | 61,678,703 |  | 56,243,178 |  |
Basic loss per share, continuing operations |  |  | $ | (0.07) |  | $ | (0.18) |  |
Basic loss per share, discontinued operations |  |  | $ | — |  | $ | (0.09) |  |
Basic loss per share |  |  | $ | (0.07) |  | $ | (0.27) |  |

The following is a reconciliation of diluted loss per share:

|  | Three months ended June 30, |  |
|  |  | 2026(1) | 2025 |  |
​ |  |  |  |  |  |
Net loss from continuing operations attributable to common shareholders |  |  | $ | (4,033) |  | $ | (10,186) |  |  |
Net loss from discontinued operations attributable to common shareholders |  |  | $ | — |  | $ | (5,023) |  |  |
Net loss attributable to common shareholders |  |  | $ | (4,033) |  | $ | (15,209) |  |  |
Weighted average number of Common Shares outstanding |  |  | 61,678,703 |  | 56,243,178 |  |  |
Dilutive shares outstanding (1) |  |  |  |  |  |
RSUs |  |  | 32,243 |  | 174,444 |  |  |
PSUs |  |  | 13,663 |  | 289,126 |  |  |
DSUs |  |  | 28,555 |  | 56,755 |  |  |
|  |  | 74,461 |  | 520,325 |  |  |
Weighted average dilutive Common Shares |  |  | 61,753,164 |  | 56,763,503 |  |  |
Diluted loss per share, continuing operations(1) |  |  | $ | (0.07) |  | $ | (0.18) |  |  |
Diluted loss per share, discontinued operations(1) |  |  | $ | — |  | $ | (0.09) |  |  |
Diluted loss per share |  |  | $ | (0.07) |  | $ | (0.27) |  |  |

(1)Diluted loss per share is not applicable when the impact will decrease loss per share or increase earnings per share.
16

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 12 Segmented Information
The Company defines an operating segment on the same basis that it uses to evaluate performance internally and to allocate resources by the Chief Operating Decision Makers (“CODMs”).
As at June 30, 2026, the Company has one reportable operating segment, Cannabis. The Cannabis operating segment comprises the Canadian, European, Australian and New Zealand cash generating units (“CGU”).
The Company’s core business is vertically integrated, comprised of cultivation, manufacturing, packaging and distribution of cannabis products, in addition to ancillary support services such as research and development and patient counselling. The Company’s sales channels are defined as medical (Canada, Europe, Australia, New Zealand and rest of world), Canadian consumer and wholesale (bulk). The cultivation and manufacturing facilities that support the revenue channels are interchangeable. As a result, disaggregated financial information reviewed by the CODMs is limited to revenue and cost of sales. Therefore, the Company has determined that there is one reportable operating segment. There is no aggregation of operating segments.
Key measures used by the CODMs to assess performance and make resource allocation decisions include net revenue and gross profit based on standard costing for each revenue channel.
The following tables summarize the Company’s net revenue and non-current assets by geographic location:

| Three months ended June 30,
| 2026 | 2025
| $ | $
Net Revenue |  |
Canada | 24,217 |  | 36,982 |
Europe | 32,110 |  | 24,950 |
Australia | 10,354 |  | 10,951 |
New Zealand | 873 |  | 1,193 |
Total net revenue | 67,554 |  | 74,076 |

During the three months ended June 30, 2026 and June 30, 2025, no customer contributed 10 per cent or more to the Company’s net revenue.

| Canada | Europe | Australia |  | Total
| $ | $ | $ |  | $
Non-current assets other than financial instruments |  |  |  |  |
June 30, 2026 | 143,484 |  | 37,469 |  | 28,139 |  |  | 209,092 |
March 31, 2026 | 121,500 |  | 36,412 |  | 27,486 |  |  | 185,398 |

The New Zealand CGU has no non-current assets.
17

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 13 Supplemental Cash Flow Information
The changes in non-cash working capital are as follows:

|  | Three months ended June 30,
|  |  | 2026 | 2025(1)
|  |  | $ | $
Accounts receivable |  |  | 3,944 |  | 3,475 |
Biological assets |  |  | (17,418) |  | (15,652) |
Inventory |  |  | 13,030 |  | 8,400 |
Prepaid and other current assets |  |  | 637 |  | (252) |
Accounts payable and accrued liabilities |  |  | 5,065 |  | 10,334 |
Income taxes payable |  |  | 480 |  | (709) |
Deferred revenue |  |  | (471) |  | (23) |
Deferred taxes |  |  | 47 |  | (27) |
Provisions |  |  | 106 |  | (4) |
Changes in non-cash working capital |  |  | 5,420 |  | 5,542 |

(1) Comparative information has been adjusted for discontinued operations (Note 4).
Additional supplementary cash flow information is as follows:

|  | Three months ended June 30,
|  |  | 2026 | 2025
|  |  | $ | $
Property, plant and equipment in accounts payable |  |  | (170) |  | 1,413 |
Right-of-use asset additions |  |  | 145 |  | — |
Amortization of prepaids |  |  | 3,120 |  | 4,870 |
Interest paid |  |  | 354 |  | 1,327 |
Interest received |  |  | (723) |  | (1,320) |

Included in restricted cash as at June 30, 2026 is $2.6 million (March 31, 2026 – $2.6 million) attributed to collateral held for letters of credit and corporate credit cards, $0.1 million (March 31, 2026 – $0.1 million) attributed to international subsidiaries and $46.4 million (March 31, 2026 – $45.1 million) of funds reserved for the segregated cell program for insurance coverage and not held for the purpose of meeting short term cash commitments.
18

AURORA CANNABIS INC.
Notes to the Interim Condensed Consolidated Financial Statements
Three months ended June 30, 2026 and 2025
($ thousands of Canadian dollars, unless otherwise noted)
Note 14 Fair Value of Financial Instruments
The carrying values of the financial instruments as at June 30, 2026 are summarized in the following table:

| Amortized cost | Fair value through profit and loss |  | Total
| $ | $ |  | $
Financial assets |  |  |  |
Cash and cash equivalents | 69,307 |  | — |  |  | 69,307 |
Restricted cash | 49,086 |  | — |  |  | 49,086 |
Short-term investments | — |  | 30,722 |  |  | 30,722 |
Accounts receivable, excluding sales taxes and lease receivable | 37,181 |  | — |  |  | 37,181 |
Contingent consideration receivable(1) | — |  | 1,250 |  |  | 1,250 |
Lease receivable | 4,866 |  | — |  |  | 4,866 |
Preferred shares(2) | — |  | 10,980 |  |  | 10,980 |
Royalty receivable(2) | — |  | 1,553 |  |  | 1,553 |
Financial liabilities |  |  |  |
Accounts payable and accrued liabilities | 56,830 |  | — |  |  | 56,830 |
Lease liabilities | 22,684 |  | — |  |  | 22,684 |
Derivative liabilities | — |  | 2,892 |  |  | 2,892 |
Other long term liabilities | 569 |  | — |  |  | 569 |

(1) Contingent consideration receivable is included in prepaids and other current assets on the interim condensed consolidated statements of financial position.
(2) Preferred shares and royalty receivable is included in long-term investments on the interim condensed consolidated statements of financial position.
The following is a summary of financial instruments measured at fair value segregated based on the various levels of inputs:

| Note | Level 1 | Level 2 | Level 3 | Total
|  | $ | $ | $ | $
As at June 30, 2026 |  |  |  |  |
Contingent consideration receivable(1) | 3 | — |  | — |  | 1,250 |  | 1,250 |
Short-term investments |  | — |  | 30,722 |  | — |  | 30,722 |
Preferred shares |  | — |  | — |  | 10,980 |  | 10,980 |
Royalty receivable |  | — |  | — |  | 1,553 |  | 1,553 |
Derivative liabilities | 10(e) | 1,345 |  | 1,547 |  | — |  | 2,892 |
As at March 31, 2026 |  |  |  |  |
Short-term investments |  | — |  | 52,213 |  | — |  | 52,213 |
Preferred shares |  | — |  | — |  | 10,560 |  | 10,560 |
Royalty receivable |  | — |  | — |  | 1,553 |  | 1,553 |
Derivative liabilities | 10(e) | 1,387 |  | 2,310 |  | — |  | 3,697 |

(1) Contingent consideration receivable is included in prepaids and other current assets on the interim condensed consolidated statements of financial position.
There were no changes in the nature, characteristics and risks of financial instruments that would result in a change in classification of financial assets and financial liabilities disclosed above. There were no transfers between fair value measurement hierarchy levels during the three months ended June 30, 2026.
The preferred shares received as consideration in the disposition of Bevo (Note 4) were initially measured at fair value and are remeasured at fair value through profit and loss at each reporting period. The fair value of the preferred shares was determined based on scenario-based discounted cash flow methodology, using level 3 inputs. Significant assumptions and estimates used in the valuation model include Bevo’s projected cash flows until the year 2080, the probability of a liquidation event as defined in the agreement and the discount rate. As at June 30, 2026, the fair value of the preferred shares was $11.0 million (March 31, 2026 – $10.6 million) recorded on the interim condensed consolidated statements of financial position.
Note 15 Subsequent Event
Subsequent to June 30, 2026, the Board of Directors approved the wind-up of the Company's segregated cell program associated with its self-insurance policy. Upon completion of the wind-up, approximately $46.4 million of restricted cash held within the segregated cell will become unrestricted and reclassified to cash and cash equivalents. The wind-up is expected to be completed by the third quarter of fiscal 2027.
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