Exhibit 99.1

AURORA CANNABIS INC.

Condensed Consolidated Interim Financial Statements

(Unaudited)

For the three months ended June 30, 2023 and 2022

(in Canadian Dollars)

Table of Contents

Nature of Operations (Note 1)

Commitments and Contingencies (Note 16)

Subsequent Events (Note 21)

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements.

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements.

⁽¹⁾ Comparative information has been re-presented due to discontinued operations see Note 6(b).

(Continued)

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements.

⁽¹⁾ Comparative information has been re-presented due to discontinued operations see Note 6(b).

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements.

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements.

Supplemental cash flow information (Note 15)

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements.

⁽¹⁾ Comparative information has been re-presented due to discontinued operations see Note 6(b).

Note 1 Nature of Operations

Aurora Cannabis Inc. (the “Company” or “Aurora”) was incorporated under the Business Corporations Act (British Columbia) on December 21, 2006 as Milk Capital Corp. Effective October 2, 2014, the Company changed its name to Aurora Cannabis Inc. The Company’s shares are listed on the Nasdaq Global Select Market (“Nasdaq”) and the Toronto Stock Exchange (“TSX”) under the trading symbol “ACB”, and on the Frankfurt Stock Exchange (“FSE”) under the trading symbol “21P1”.

The Company’s head office and principal address is 3498 - 63 Avenue, Leduc, Alberta, Canada, T9E 0G8. The Company’s registered and records office address is Suite 1700, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8.

The Company’s principal strategic business lines are focused on the production, distribution and sale of cannabis related products in Canada and internationally. Aurora currently conducts the following key business activities in the jurisdictions listed below:

Note 2 Significant Accounting Policies and Judgments

(a)       Basis of Presentation and Measurement

The condensed interim consolidated interim financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and International Accounting Standards 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”), and interpretations of the IFRS Interpretations Committee (“IFRIC”). Unless otherwise noted, all amounts are presented in thousands of Canadian dollars, except share and per share data.

The condensed consolidated interim financial statements are presented in Canadian dollars and are prepared in accordance with the same accounting policies, critical estimates and methods described in the Company’s annual consolidated financial statements, except for the adoption of new accounting policies (Note 2(d)). Given that certain information and footnote disclosures, which are included in the annual audited consolidated financial statements, have been condensed or excluded in accordance with IAS 34, these condensed consolidated interim financial statements should be read in conjunction with our annual audited consolidated financial statements as at and for the year ended March 31, 2023, including the accompanying notes thereto.

(b)       Basis of Consolidation

The condensed interim consolidated financial statements include the financial results of the Company and its subsidiaries. Subsidiaries include entities which are wholly-owned as well as entities over which Aurora has the authority or ability to exert power over the investee’s financial and/or operating decisions (i.e. control), which in turn may affect the Company’s exposure or rights to the variable returns from the investee. The consolidated interim financial statements include the operating results of acquired or disposed entities from the date control is obtained or the date control is lost, respectively. All intercompany balances and transactions are eliminated upon consolidation.

The Company’s principal subsidiaries during the three months ended June 30, 2023 are as follows:

All shareholdings are of ordinary shares or other equity. Other subsidiaries, while included in the consolidated financial statements, are not material and have not been reflected in the table above.

(c) Discontinued operations

The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting occurs when the disposal of a component or a group of components of the Company represents a strategic shift that will have an impact on the Company’s operations and financial results, and where the operations and cash flows can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company.

The results of discontinued operations are excluded from both continuing operations and business segment information in the condensed consolidated interim financial statements and the notes to the consolidated financial statements, unless otherwise noted, and are presented net of tax in the consolidated statements of loss and comprehensive income (loss) for the current and comparative periods. Refer to Note 6(b) Discontinued Operations.

Amendments to IAS 1: Classification of Liabilities as Current or Non-current

The amendment clarifies the requirements relating to determining if a liability should be presented as current or non-current in the statement of financial position. Under the new requirement, the assessment of whether a liability is presented as current or non-current is based on the contractual arrangements in place as at the reporting date and does not impact the amount or timing of recognition. The amendment applies retrospectively for annual reporting periods beginning on or after January 1, 2023. There were no changes to the Company’s current period or comparative period upon adoption.

Amendments to IAS 12: Income Taxes

The amendment clarifies how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments are effective for annual periods beginning on or after January 1, 2023. There was no material impact as a result of adopting these amendments.

Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The amendment narrowed the scope of certain recognition exemptions so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. An entity applies the amendments to transactions that occur on or after the beginning of the earliest comparative period presented. It also, at the beginning of the earliest comparative period presented, recognizes deferred tax for all temporary differences related to leases and decommissioning obligations and recognizes the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date. The amendment is effective for annual periods beginning on or after January 1, 2023 with early application permitted. The Company early adopted these amendments with the adoption of IFRS 16, Leases and therefore there are no changes to the current and comparative periods presented in the consolidated financial statements. The Company has not had any decommissioned obligations to account for hereunder.

IFRS 17 - Insurance Contracts

IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. The standard is effective for annual periods beginning on or after January 1, 2023. The Company does not currently have any contracts to be accounted for under this standard. The Company, however has a wholly owned captive insurance entity that is required to adopt this standard when reporting on a standalone basis. The impact of the captive insurance company adopting IFRS 17 was immaterial to the Company’s consolidated financial statements.

Amendments to IAS 16: Leases

The amendment clarifies how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in

IFRS 15: Revenue to be accounted for as a sale. The amendment is effective for annual periods beginning on or after January 1, 2024. The Company does not have any sale-leaseback transactions.

The following IFRS standards have been recently issued by the IASB. Pronouncements that are irrelevant or not expected to have a significant impact have been excluded.

Amendments to IAS 1: Covenants

The amendment that clarify how an entity classifies debt and other financial liabilities as current or non-current in particular circumstances. The amendments are effective for annual periods beginning on or after January 1, 2024. Management is currently evaluating the potential impact of this standard on the Company’s consolidated financial statements.

Note 3 Biological Assets

The following is a breakdown of biological assets:

The changes in the carrying value of biological assets during the period are as follows:

a) Indoor cannabis production facilities

The following inputs and assumptions are all categorized within Level 3 on the fair value hierarchy and were used in determining the fair value of indoor cannabis biological assets:

The following table highlights the sensitivities and impact of changes in significant assumptions on the fair value of biological assets grown at indoor cannabis production facilities:

As of June 30, 2023, the weighted average fair value less cost to complete and cost to sell a gram of dried cannabis produced at the Company’s indoor cannabis cultivation facilities was $3.24 per gram (March 31, 2023 - $2.43 per gram).

During the three months ended June 30, 2023, the Company’s indoor cannabis biological assets produced 9,585 kilograms of dried cannabis (June 30, 2022 - 16,109 kilograms). As at June 30, 2023, it is expected that the Company’s indoor cannabis biological assets will yield approximately 9,501 kilograms (March 31, 2023 - 7,667 kilograms) of dried cannabis when harvested and the weighted average stage of growth for indoor biological assets was 46% (March 31, 2023 - 44%).

b) Plant propagation production facilities

The following table highlights the sensitivities and impact of changes in significant assumptions on the fair value of biological assets grown at plant propagation production facilities:

As of June 30, 2023, the weighted average fair value less cost to complete and cost to sell per propagation plant was $2.06 per plant (March 31, 2023 - $2.35).

During the three months ended June 30, 2023, biological assets relating to the plant propagation segment was expensed to cost of goods sold was $14.6 million (three months ended June 30, 2022 - nil), which included $1.7 million (three months ended June 30, 2022 - nil) of non-cash expense related to the changes in fair value of biological assets sold.

Note 4 Inventory

The following is a breakdown of inventory:

During the three months ended June 30, 2023, inventory expensed to cost of goods sold was $64.4 million (three months ended June 30, 2022 - $67.6 million), which included $15.9 million (three months ended June 30, 2022 - $22.5 million) of non-cash expense related to the changes in fair value of inventory sold.

During the three months ended June 30, 2023, the Company recognized $10.4 million (three months ended June 30, 2022 - $15.3 million) in changes in fair value of inventory sold and $8.9 million (three months ended June 30, 2022 - $11.3 million) recognized in cost of sales in the condensed consolidated statements of loss and comprehensive loss.

Note 5 Property, Plant and Equipment

The following summarizes the carrying values of property, plant and equipment for the periods reflected:

The following summarizes the changes in the net book values of property, plant and equipment for the periods presented:

Depreciation relating to manufacturing equipment and production facilities for owned and right-of-use leased assets is capitalized into biological assets and inventory, and is expensed to cost of sales upon the sale of goods. During the three months ended June 30, 2023, the Company recognized $9.8 million (June 30, 2022 - $14.5 million) of depreciation expense of which $5.4 million ( June 30, 2022 - $6.8 million) was reflected in cost of sales.

Note 6 Assets Held for Sale and Discontinued Operations

(a)       Assets and Liabilities Held for Sale

Assets held for sale are comprised of the following:

Whistler Alpha Lake

In connection with the restructuring announced during the year ended June 30, 2022, the Company listed its Whistler Alpha Lake facility for sale. As a result, the Company reclassified property, plant, and equipment of $0.6 million to assets held for sale. During the three months ended June 30, 2023, the facility was sold for net proceeds of $2.3 million. The Company recognized a gain of $1.6 million on disposal, which is recognized in other gains (losses) in the consolidated statements of loss and comprehensive loss (Note 14).

European R&D Facility

During the three months ended June 30, 2023, the Company decided to sell a European R&D Facility. As a result, the Company reclassified the related property, plant, and equipment of $2.2 million to assets held for sale.

Growery

During the three months ended June 30, 2023, the Company made the decision to exit the agreement with its partners in Growery B.V (“Growery”), one of the license holders entitled to participate in the Netherlands’ still-pending Controlled Cannabis Supply Chain Experiment. As a result, the Company reclassified the related assets from property, plant, and equipment of $6.7 million to assets held for sale.

During the three months ended June 30, 2023, the Company formally made the decision to close its Aurora Nordic facility (“Nordic”), located in Denmark due to a number of operational and regulatory challenges.

In connection with the closures of Nordic and Growery, the Company has reported these as discontinued operations as the operations and cash flows can be clearly distinguished, operationally and for financial reporting purposes from the rest of the Company.

The following table summarizes the Company's consolidated discontinued operations for the respective periods:

Note 7 Intangible Assets and Goodwill

The following is a continuity schedule of intangible assets and goodwill:

The following summarizes the changes in the net book value of intangible assets and goodwill for the periods presented:

As at June 30, 2023, $20.7 million and $21.4 million indefinite life intangibles were allocated to the group of cash generating units (“CGUs”) that comprise the Canadian Cannabis Segment and European Cannabis Segment, respectively (March 31, 2023 - $20.7 million and $21.9 million respectively).

Note 8 Convertible Debentures

On January 24, 2019, the Company issued $460.6 million (US$345.0 million) in aggregate principal amount of Convertible Senior Notes due 2024 (“Senior Notes”) issued at par value. Holders may convert all or any portion of the Senior Notes at any time. The Senior Notes are unsecured, mature on February 28, 2024 and bear cash interest semi-annually at a rate of 5.5% per annum. The initial conversion rate for the Senior Notes is 11.53 Common Shares per US$1,000 principal amount of Senior Notes, equivalent to an initial conversion price of approximately US$86.72 per Common Share. As of June 30, 2023, $70.0 million (US$52.8 million) principal amount of the Senior Notes are outstanding.

In accordance with IFRS 9, the equity conversion option embedded in the Senior Notes was determined to be a derivative liability, which has been recognized separately at its fair value. Subsequent changes in the fair value of the equity conversion option are recognized through profit and loss (i.e. FVTPL). The equity conversion option was classified as an option liability as it can be settled through the issuance of a variable number of shares, cash or a combination thereof, based on the exchange rate and or trading price at the time of settlement.

As of June 30, 2023, the conversion option had a fair value of $nil (March 31, 2023 - $nil) and the Company recognized an unrealized gain of $nil for the three months ended June 30, 2023 (three months ended June 30, 2022 - $3.1 million) on the derivative liability. The fair value of the conversion option was determined based on the Kynex valuation model with the following assumptions: share price of US$0.53 (March 31, 2023 - US$0.70), volatility of 84% (March 31, 2023 - 84%), implied credit spread of 420 bps (March 31, 2023 - 397 bps), and assumed stock borrow rate of 10% (March 31, 2023 - 10%). As of June 30, 2023, the Company has accrued interest payable of $16.9 million (March 31, 2023 - $16.9 million) on the Senior Notes.

During the three months ended June 30, 2023 the Company repurchased a total of $76.9 million (US$57.0 million) (three months ended June 30, 2022 - $155.3 million (US$113.9 million) ) in principal amount of the Senior Notes at a total cost, including accrued interest, of $75.7 million (US $56.2 million) (three months ended June 30, 2022 - $149.2 million (US $115.3 million)) and recognized a loss of $5.9 million (three months ended June 30, 2022 - $18.3 million) within other gains (losses) in the statements of loss and comprehensive loss.

The convertible senior notes, were repurchased at a 2.3% average discount to par value, for aggregate cash consideration of approximately $61.9 million (U.S$46.0 million) and the issuance of 18,691,770 Common Shares.

Note 9 Loans and Borrowings

Through its acquisition of Bevo Farms Ltd (“Bevo”), a 50.1% owned subsidiary in the plant propagation business during fiscal 2023, the Company acquired a term loan and revolver, together, the credit facilities (the “Credit Agreement”).

The changes in the carrying value of current and non-current term loan credit facilities are as follows:

On April 11, 2023, the Credit Agreement was amended to reduce the amounts available to be drawn from the Term Loan by $9.7 million to $38.1 million and increase the amounts available to be drawn from the Revolver by $4.0 million to $12.0 million. Additionally, there were changes to the financial covenants. There were nominal costs incurred for the amendments.

The term loans consist of the following access to funds under the credit facility:

Under the terms of the Credit Agreement, the Company is subject to certain customary financial and non-financial covenants and restrictions. In addition, the Credit Agreement is secured by a first-ranking security interest over substantially all the property of Bevo Farms Ltd. and its subsidiaries. As at June 30, 2023, the Company was in compliance with all covenants relating to the Credit Agreement.

Term loan

As at June 30, 2023, advances under the Term Loan were made in two tranches, with interest payments based on prime rate plus a margin. Interest is due monthly and the principal balance is repayable in equal quarterly installments of 1/60th of the amount borrowed. As at June 30, 2023, the borrowing rate was 4.905%. Each tranche is scheduled to mature on January 21, 2025. Any remaining principal balance will be due at maturity. During the three months ended June 30, 2023, total interest expense of $0.6 million was recognized as finance and other costs in the condensed consolidated interim statements of loss and comprehensive loss. As at June 30, 2023, the total term loan payable is $37.1 million.

Revolver

The Revolver provides available aggregate borrowings of up to $12.0 million. Interest payments are based on prime plus a margin that ranges between 0.25% and 1.75%. As at June 30, 2023, $7.3 million was drawn from the revolver loan.

Total loans and borrowings principal repayments as at June 30, 2023 are as follows:

Note 10 Lease liabilities

The changes in the carrying value of current and non-current lease liabilities are as follows:

Note 11 Share Capital

The authorized share capital of the Company is comprised of the following:

At June 30, 2023, 366,542,893 Common Shares (March 31, 2023 - 345,269,310) were issued and fully paid.

A summary of warrants outstanding is as follows:

In accordance with IAS 32 - Financial Instruments: Presentation, the June 2022 Offering Warrants were determined to be derivative liabilities as the proceeds receivable upon exercise may vary due to fluctuations in the foreign exchange rates. The June 2022 Offering Warrants are recognized at their fair values based on quoted market prices with gains and losses recognized in other gains (losses) (Note 14) on the condensed consolidated statements of comprehensive loss.

In accordance with IAS 32 - Financial Instruments: Presentation, the November 2020 and January 2021 Offering Warrants, which are denominated in U.S. Dollars, were determined to be derivative liabilities as the proceeds receivable upon exercise may vary due to fluctuations in the foreign exchange rates. The Offering Warrants are recognized at their fair values based on quoted market prices with gains and losses recognized in other (losses) gains (Note 14) on the condensed consolidated statements of comprehensive loss.

The following summarizes the warrant derivative liabilities:

The following table summarizes the warrants that remain outstanding as at June 30, 2023:

Note 12 Share-Based Compensation

A summary of stock options outstanding is as follows:

The following table summarizes the stock options that are outstanding as at June 30, 2023:

During the three months ended June 30, 2023, the Company recorded aggregate share-based compensation expense of $0.5 million (three months ended June 30, 2022 - $1.3 million) for all stock options granted and vested during the period. This expense is reflected in the share-based compensation line on the condensed consolidated statements of comprehensive loss.

Stock options granted during the respective periods highlighted below were fair valued based on the following weighted average assumptions:

The weighted average fair value of stock options granted during the three months ended June 30, 2023 was $0.41 per option (three months ended June 30, 2022 - $1.25 per option).

A summary of the RSUs and DSUs outstanding are as follows:

During the three months ended June 30, 2023, the Company recorded share-based compensation of $1.6 million (three months ended June 30, 2022 - $1.8 million) for RSUs and DSUs granted and vested during the period. This expense is included in the share-based compensation line on the condensed consolidated statements of comprehensive loss.

The weighted average fair value of RSUs and DSUs granted in the three months ended June 30, 2023 was $0.76 per unit (three months ended June 30, 2022 - $2.53 per unit).

The following table summarizes the RSUs and DSUs that are outstanding as at June 30, 2023:

A summary of the PSUs outstanding is as follows:

The following table summarizes the PSUs that are outstanding as at June 30, 2023:

During the three months ended June 30, 2023, the Company recorded share-based compensation of $0.2 million (three months ended June 30, 2022 - $1.4 million), for PSUs granted during the period. This expense is included in the share-based compensation line on the condensed consolidated statements of comprehensive loss.

PSUs granted during the respective periods highlighted below were fair valued based on the following weighted average assumptions:

The weighted average fair value of PSUs granted during the three months ended June 30, 2023 was $0.76 per unit (three months ended June 30, 2022 - $4.53 per unit).

(d) Cash Settled DSUs and PSUs

On June 23, 2023, the Company issued 296,052 DSUs and 3,957,593 PSUs that will be settled in cash, pursuant to the Performance Share Unit and Restricted Share Unit Long-Term Cash Settled Plan and Non-Employee Directors Deferred Share Unit Cash Plan, respectively. The DSUs and RSUs issued under these plans are included in the continuities above.

The DSUs subject to cash settlement are classified as a derivative liability. They are initially measured at fair value and recorded as a derivative liability in the consolidated statements of financial position. DSUs are issued in recognition of past service for Directors and are therefore recorded at the full amount to share-based compensation expense in the consolidated statements of loss and comprehensive loss. The DSUs are remeasured each reporting period with the difference going through share-based compensation expense. Upon settlement, the DSU’s are remeasured and the derivative liability is extinguished at the remeasured amount. During the three months ended June 30, 2023, the Company recognized $0.2 million as both the derivative liability and share-based compensation expense in respect of the cash settled DSUs.

The PSUs subject to cash settlement are classified as a derivative liability. They are initially measured at fair value using a Monte Carlo simulation model and recorded as a derivative liability in the consolidated statements of financial position. The PSUs have a service requirement of three years and are amortized ratably over that period. The PSUs are remeasured each reporting period with the change in value reflected in the share-based compensation expense. As at June 30, 2023, the Company recognized a derivative liability for a nominal amount with an equal amount recognized as share based compensation expense in the condensed consolidated statements of loss and comprehensive loss.

Note 13 Loss Per Share

The following is a reconciliation of basic and diluted loss per share:

Basic and diluted loss per share

Diluted loss per share is the same as basic loss per share as the issuance of shares on the exercise of convertible debentures, RSU, DSU, PSU, warrants and share options are anti-dilutive.

Note 14 Other (Losses) Gains

Note 15 Supplemental Cash Flow Information

The changes in non-cash working capital are as follows:

Additional supplementary cash flow information is as follows:

Included in restricted cash as of June 30, 2023 is $3.4 million (June 30, 2022 - $3.4 million) attributed to collateral held for letters of credit and

corporate credit cards, $6.0 million (June 30, 2022 - nil) related to the Bevo acquisition, $20.5 million (June 30, 2022 - $15.0 million) for self- insurance, $0.1 million (June 30, 2022 - $0.2 million) attributed to international subsidiaries, and $35.6 million (June 30, 2022 - $32.4 million) of funds reserved for the segregated cell program for insurance coverage.

Note 16 Commitments and Contingencies

From time to time, the Company and/or its subsidiaries may become defendants in legal actions and the Company intends to take appropriate action with respect to any such legal actions, including by defending itself against such legal claims as necessary. Other than the claims described below, as of the date of this report, Aurora is not aware of any other material or significant claims against the Company.

On November 21, 2019, a purported class action proceeding was commenced in the United States District Court for the District of New Jersey against the Company and certain of its current and former directors and officers on behalf of persons or entities who purchased, or otherwise acquired, publicly traded Aurora securities between October 23, 2018 and February 6, 2020. An amended complaint was filed on September 21, 2020 which alleges, inter alia, that the Company and certain of its current and former officers and directors violated the federal securities laws by making false or misleading statements, materially overstated the demand and potential market for the Company’s consumer cannabis products; that the Company’s ability to sell products had been materially impaired by extraordinary market oversupply, that the Company’s spending growth and capital commitments were slated to exceed our revenue growth; that the Company had violated German law mandating that companies receive special permission to distribute medical products exposed to regulated irradiation techniques, and that the foregoing, among others, had negatively impacted the Company’s business, operations, and prospects and impaired the Company’s ability to achieve profitability. A motion to dismiss was filed on November 20, 2020 and granted by the court on July 7, 2021, however, the plaintiffs were given an opportunity to file a second amended complaint no later than September 7, 2021. Pursuant to the July 7, 2021 order, the plaintiffs filed a second amended complaint on September 7, 2021 which included new allegations pertaining to certain alleged financial misrepresentation and improper revenue recognition by the Company. The Company subsequently filed a motion to dismiss on December 6, 2021 and a reply to plaintiffs’ opposition on March 25, 2022. Again, on a judgement dated September 23, 2022 the Court granted the second motion to dismiss the case in favour the Company. The motion was granted without prejudice. The plaintiff’s counsels re-filed a third statement of claim on November 7, 2022 and the re-stated claim was received by Aurora formally on November 8, 2022. The Company filed a third further motion to dismiss on January 6, 2023, to which the plaintiffs have filed an opposition brief and the Company subsequently filed a reply. While this matter is ongoing, the Company disputes the allegations and intends to continue to vigorously defend against the claims. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, the Company is currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from the matters described above.

The Company and its subsidiary, ACE, have been named in a purported class action proceeding which commenced on June 16, 2020 in the Province of Alberta in relation to the alleged mislabeling of cannabis products with inaccurate THC/CBD content. The class action involves a number of other parties including Aleafia Health Inc., Hexo Corp, Tilray Canada Ltd., among others, and alleges that upon laboratory testing, certain cannabis products were found to have lower THC potency than the labeled amount, suggesting, among other things, that plastic containers may be leeching cannabinoids. While this matter is ongoing, the Company disputes the allegations and intends to vigorously defend against the claims. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, the Company is currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from the matter described above.

A claim was commenced by a party to a former term sheet on June 15, 2020 with the King's Bench of Alberta against Aurora and a former officer alleging a claim of breach of obligations under said term sheet, with the plaintiff seeking $18.0 million in damages. While this matter is ongoing, the Company believes the action to be without merit and intends to defend the claim.

On August 10, 2020, a purported class action lawsuit was filed with the King's Bench of Alberta against Aurora and certain executive officers in the Province of Alberta on behalf of persons or entities who purchased, or otherwise acquired, publicly traded Aurora securities and suffered losses as a result of Aurora releasing statements containing misrepresentations during the period of September 11, 2019 and December 21, 2019. Chambers appointment has been scheduled for January 2024. The Company disputes the allegations and intends to vigorously defend against the claims. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, the Company is currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from the matter described above.

On January 4, 2021, a civil claim was filed with the King’s Bench of Alberta against Aurora and Hempco by a former landlord regarding unpaid rent in the amount of $8.9 million, representing approximately $0.4 million for rent in arrears and costs, plus $8.5 million for loss of rent and remainder of the term. The Company filed a statement of defense on March 24, 2021. Plaintiffs were to bring a summary judgement application which is being opposed by Aurora and which application will likely not be heard until 2024. Questioning on Affidavits is scheduled to begin in the Fall of 2023. While this matter is ongoing, the Company intends to continue to defend against the claims.

The Company, its subsidiary ACE, and MedReleaf Corp. (which amalgamated with ACE in July 2020) have been named in a purported class action proceeding commenced on November 15, 2022 in the Ontario Superior Court of Justice. The purported class action claims that the Company failed to warn of certain risks purported to be associated with the consumption of cannabis. The Statement of Claim was served upon the Company on November 22, 2022 and a Statement of Defence was filed and served. The next major step in the process is scheduling a timetable for the remaining deliverables of the process, including delivery of the plaintiff’s certification motion record. The plaintiff must either deliver their certification materials or come to an agreement with the Aurora Defendants on a timetable for doing so within one year of commencing the proposed class action. The Court has issued an order allowing the representative plaintiff to remain anonymized in all court documents, including identifying her by “V.T”. The Company disputes the allegations and intends to defend against the claims.

On May 5, 2022, Aurora Cannabis Inc. acquired all issued and outstanding shares of Terrafarma Inc. Terrafarma Inc. is now a wholly owned subsidiary of Aurora Cannabis Inc. Prior to Aurora’s acquisition of Terrafarma, a former employee of Terrafarma commenced a claim for wrongful dismissal seeking damages in the amount $1,046,400 plus additional damages relating to certain options and unpaid bonus. The Company disputes the allegations and intends to defend against the claims.

A claim was commenced by a former employee of Aurora against Aurora Cannabis Enterprises Inc. and another former employee of Aurora (the “Defendant Employee”). The plaintiffs claim that the Defendant Employee entered a lease for a property owned by the plaintiffs in January 2017 and states that Aurora was a guarantor for the Defendant Employee. The claim states that the Defendant Employee left the property and caused damage. The plaintiffs further claim outstanding rent and legal fees. There is no record of any documentation of Aurora being a party to any such relationship. The Defendant Employee has been noted in default by the plaintiff and Aurora has filed and served a Third-Party Notice against the Defendant Employee. The Company disputes the allegations and intends to defend against the claims.

The Company is subject to litigation and similar claims in the ordinary course of our business, including claims related to employment, human resources, product liability and commercial disputes. The Company has received notice of, or are aware of, certain possible claims against us where the magnitude of such claims is negligible, or it is not currently possible for us to predict the outcome of such claims, possible claims or lawsuits due to various factors including: the preliminary nature of some claims; an incomplete factual record; and the unpredictable nature of opposing parties and their demands. Management is of the opinion, based upon legal assessments and information presently available, that it is unlikely that any of these claims would result in liability to the Company, to the extent not provided for through insurance or otherwise, would have a material effect on the consolidated financial statements, other than the claims described above.

In respect of the aforementioned claims, as at June 30, 2023 the Company has recognized total provisions of $1.0 million (March 31, 2023 - $1.0 million) in provisions on the condensed consolidated statements of financial position and a settlement accrual for nil (March 31, 2023 - $1.0 million) in accounts payable and accrued liabilities on the consolidated statements of financial position.

The Company has various lease commitments related to various office space, production equipment, vehicles, facilities and warehouses expiring up to June 2033. The Company has certain leases with optional renewal terms that the Company may exercise at its option.

In addition to lease liability commitments disclosed in Note 20(b) and loans and borrowing repayments in Note 9, the Company has $1.5 million in future capital commitments and purchase commitments payments, which are due over the next 12 months.

Note 17 Revenue

The Company generates revenue from the transfer of goods and services over time and at a point-in-time from the revenue streams below. Net revenue from sale of goods is reflected net of actual returns and estimated variable consideration for future returns and price adjustments of $0.6 million for the three months ended June 30, 2023 (three months ended June 30, 2022 - $(0.5) million). The estimated variable consideration is based on historical experience and management’s expectation of future returns and price adjustments. As of June 30, 2023, the net return liability for the estimated variable revenue consideration was $1.3 million (March 31, 2023 - $1.6 million) and is included in deferred revenue on the condensed consolidated interim statements of financial position.

Note 18 Segmented Information

Included in net revenue for the three months ended June 30, 2023 are net revenues of approximately $14 million from Customer G (three months ended June 30, 2022 - Customer A - $5 million), each contributing 10% or more to the Company’s net revenue.

Note 19 Fair Value of Financial Instruments

The carrying values of the financial instruments at June 30, 2023 are summarized in the following table:

.

The following is a summary of financial instruments measured at fair value segregated based on the various levels of inputs:

There have been no transfers between fair value categories during the period.

Note 20 Financial Instruments Risk

The Company is exposed to a variety of financial instrument related risks. The Board mitigates these risks by assessing, monitoring and approving the Company’s risk management processes.

Credit risk is the risk of a potential loss to the Company if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company is moderately exposed to credit risk from its cash and cash equivalents, accounts receivable and loans receivable. The risk exposure is limited to their carrying amounts reflected on the consolidated statements of financial position. The risk for cash and cash equivalents is mitigated by holding these instruments with highly rated Canadian financial institutions. Certain restricted funds in the amount of are retained by an insurer under the Segregated Accounts Companies Act governed by the Bermuda Monetary Authority. As the Company does not invest in asset-backed deposits or investments, it does not expect any credit losses. The Company periodically assesses the quality of its investments and is satisfied with the credit rating of the financial institutions and the investment grade of its Guaranteed Investment Certificates (“GICs”). The Company mitigates the credit risk associated with the loans receivable by managing and monitoring the underlying business relationship.

The Company provides credit to certain customers in the normal course of business and has established credit evaluation and monitoring processes to mitigate credit risk. Credit risk is generally limited for receivables from government bodies, which generally have low default risk. Credit risk for non-government wholesale customers is assessed on a case-by-case basis and a provision is recorded where required. As of June 30, 2023, $20.4 million of accounts receivable, net of allowances, are from non-government wholesale customers (March 31, 2023 - $20.9 million). As of June 30, 2023, the Company recognized a $1.6 million provision for expected credit losses (March 31, 2023 - $3.4 million).

The Company’s aging of trade receivables, net was as follows:

The Company’s contractual cash flows from lease receivables is as follows:

The composition of the Company’s accounts payable and accrued liabilities was as follows:

In addition to the commitments outlined in Note 16, the Company has the following undiscounted contractual obligations as at June 30, 2023, which are expected to be payable in the following respective periods:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations associated with its financial liabilities when they are due. The Company manages liquidity risk through the management of its capital structure and resources to ensure that it has sufficient liquidity to settle obligations and liabilities when they are due. Our ability to fund our operating requirements depends on future operating performance and cash flows, which are subject to economic, financial, competitive, business and regulatory conditions, and other factors, some of which are beyond our control. Our primary short-term liquidity needs are to fund our net operating losses, capital expenditures to maintain existing facilities, convertible debenture repayment and lease payments. Our medium-term liquidity needs primarily relate lease payments and our long-term liquidity needs primarily relate to potential strategic plans.

As of June 30, 2023, the Company has access to the following capital resources available to fund operations and obligations:

Based on all of the aforementioned factors, the Company believes that its reduction of operating costs, current liquidity position, and access to the 2023 Shelf Prospectus are adequate to fund operating activities and cash commitments for investing, financing and strategic activities for the foreseeable future. In addition, the Company could access restricted cash of $20.5 million relating to its self insurance policy, if necessary.

Note 21 Subsequent Events

Subsequent to June 30, 2023, the Company repurchased approximately $6.6 million (U.S$5.0 million) aggregate principal amount of convertible senior notes at a 1.5% average discount to par value, with the issuance of 10,274,950 Common Shares.