Company: CGC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000950170-25-015839
Chunk: 77

Company: Canopy Growth Corp
Filing Date: 2025-02-07
Form: 10-Q
Item: Item 1
Chunk 77
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 restructuring recorded in the third quarter of fiscal 2025 related primarily to employee restructuring costs, and ongoing holding costs to maintain previously restructured sites.

Comparatively, in the third quarter of fiscal 2024, the loss on asset impairment and restructuring was primarily related to the charges associated with the completion of the This Works Divestiture (as defined below), as $28.1 million of write-downs occurred due to the sale. In addition, there were various incremental impairment losses and other costs associated with the restructuring of our Canadian cannabis operations that were initiated in the three months ended March 31, 2023.

Other

The following table presents other income (expense), net, and income tax (expense) recovery for the three months ended December 31, 2024 and 2023:

    Three months ended December 31,

    (in thousands of Canadian dollars)
     
    2024

    2023

    $ Change

    % Change

    Other income (expense), net

    (97,758
    )

    (171,037
    )

    73,279

    43
    %

    Income tax (expense) recovery

    (316
    )

    1,077

    (1,393
    )

    (129
    %)

Other income (expense), net

Other income (expense), net was an expense amount of $97.8 million in the third quarter of fiscal 2025, as compared to an expense amount of $171.0 million in the third quarter of fiscal 2024. The year-over-year change of $73.3 million is primarily attributable to:

•Change of $70.4 million related to non-cash fair value changes on our Canopy USA related and other financial assets, from an expense amount of $146.7 million in the third quarter of fiscal 2024 to an expense amount of $76.3 million in the third quarter of fiscal 2025. The expense amount recognized in the third quarter of fiscal 2025 is primarily attributable to fair value decreases relating to our investment in:

othe Canopy USA equity method investment in the amount of $140.4 million.

These fair value decreases were partially offset by a fair value increase related to our investment in:

othe Canopy Elevate I LLC, Canopy Elevate II LLC and Canopy Elevate III LLC (collectively, “Elevate”) loan receivable, in the amount of $59.4 million relating