Company: CGC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001193125-25-270960
Chunk: 13

Company: Canopy Growth Corp
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 13
---
 The results reported in these condensed interim consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for an entire fiscal year. The policies set out below are consistently applied to all periods presented, unless otherwise noted.Based on the Company’s cash and cash equivalents of $298,058 and the current portion of long-term debt of $1,847 as of September 30, 2025, along with financing actions taken during the period and projected future cash flows, the Company concludes that it has sufficient liquidity to meet its short-term obligations. As a result, the conditions that previously raised substantial doubt about the Company’s ability to continue as a going concern have been resolved.Principles of consolidationThese condensed interim consolidated financial statements include the accounts of the Company and all entities in which the Company either has a controlling voting interest or is the primary beneficiary of a variable interest entity. All intercompany accounts and transactions have been eliminated on consolidation.Variable interest entitiesA variable interest entity (“VIE”) is an entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to control the entity’s activities or do not substantially participate in the gains and losses of the entity. Upon inception of a contractual agreement, and thereafter, if a reconsideration event occurs, the Company performs an assessment to determine whether the arrangement contains a variable interest in an entity and whether that entity is a VIE. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Under ASC 810 – Consolidations, where the Company concludes that it is the primary beneficiary of a VIE, the Company consolidates the accounts of that VIE.