Company: CGC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000950170-25-015839
Chunk: 176

Company: Canopy Growth Corp
Filing Date: 2025-02-07
Form: 10-Q
Item: Item 2
Chunk 176
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 31,

    (in thousands of Canadian dollars)
     
    2024

    2023

    $ Change

    % Change

    Other income (expense), net

    (276,952
    )

    (253,270
    )

    (23,682
    )

    (9
    %)

    Income tax expense

    (6,812
    )

    (13,762
    )

    6,950

    51
    %

Other income (expense), net

Other income (expense), net was an expense amount of $277.0 million in the nine months ended December 31, 2024, as compared to an expense amount of $253.3 million in the nine months ended December 31, 2023. The year-over-year change of $23.7 million is primarily attributable to:

•Change of $48.7 million related to non-cash fair value changes on our Canopy USA related and other financial assets, from an expense amount of $163.9 million in the nine months ended December 31, 2023 to an expense amount of $212.6 million in the nine months ended December 31, 2024. The expense amount recognized in the nine months ended December 31, 2024 is primarily attributable to fair value decreases relating to our investments in:

othe Canopy USA equity method investment in the amount of $230.0 million;

othe Acreage Debt loan receivable, in the amount of $1.2 million, primarily attributable to changes in market conditions and assumptions;

othe Acreage financial instrument, in the amount of $31.8 million. On a quarterly basis, we determine the fair value of the Acreage financial instrument using a probability-weighted expected return model, incorporating several potential scenarios and outcomes associated with the Acreage Amended Arrangement. The fair value decrease in the nine months ended December 31, 2024 is primarily attributable to an increase of approximately 75% in our share price up to the Deconsolidation Date (as defined below), relative to an increase of approximately 46% in Acreage’s share price during that same period. As a result, the model at the Deconsolidation Date reflects both a higher estimated value of the Canopy Growth common shares that were expected to be issued upon Canopy USA’s acquisition of Acreage, and a higher estimated value of the Acreage shares that were expected