Company: CGC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000950170-25-015839
Chunk: 94

Company: Canopy Growth Corp
Filing Date: 2025-02-07
Form: 10-Q
Item: Item 1
Chunk 94
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    9
    %

    Share-based compensation

    14,531

    10,127

    4,404

    43
    %

    Acquisition, divestiture, and other costs

    16,300

    24,373

    (8,073
    )

    (33
    %)

    Depreciation and amortization

    31,651

    41,881

    (10,230
    )

    (24
    %)

    Loss on asset impairment and restructuring

    22,135

    2,452

    19,683

    803
    %

    Restructuring costs recorded in cost of goods sold

    -

    (689
    )

    689

    100
    %

    Adjusted EBITDA
     
    $
    (14,256
    )
     
    $
    (43,831
    )
     
    $
    29,575

    67
    %

The Adjusted EBITDA loss in the nine months ended December 31, 2024 was $14.3 million, as compared to an Adjusted EBITDA loss of $43.8 million in the nine months ended December 31, 2023. The year-over-year decrease in Adjusted EBITDA loss is primarily attributable to the year-over-year increase in our gross margin and the year-over-year decrease in our selling, general and administrative expenses.

Part 3 – Financial Liquidity and Capital Resources

The Interim Financial Statements have been prepared in accordance with generally accepted accounting principles on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

In our condensed interim consolidated financial statements for the quarterly period ended December 31, 2023, we raised substantial doubt about our ability to continue as a going concern for at least twelve months from the issuance of those condensed interim consolidated financial statements, due to certain material debt obligations coming due in the short-term, recurring losses from operations and additional required financing to fund our business and operations.

As of the filing of the Annual Report, we were able to successfully mitigate the substantial doubt by completing several balance sheet actions as further described in the Annual Report. During the nine months ended December 31, 2024, we completed additional actions and established our at-the-market equity program (the “ATM Program”), issued and sold an aggregate of