The Buried
Footnote Forensic Linguistics Analysis
on Corporate Disclosure Documents
Year-over-Year Drift CGC
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Certainty language minus hedging language in Risk Factors. Positive = assertive, negative = hedging-heavy.

10-K 2021-06-01 10-K 2022-05-31 10-K 2023-06-22 10-K 2024-05-30 10-K 2025-05-30

From 2021-06-01 (10-K) to 2025-05-30 (10-K), this metric increased across 5 filings.

Risk-factor drift item_1a vs prior same-form filing, cosine similarity

  • 10-K 2025-05-30 vs 2024-05-30 99.5% boilerplate
  • 10-K 2024-05-30 vs 2023-06-22 82.4% noticeable change
  • 10-K 2023-06-22 vs 2022-05-31 80.8% noticeable change
  • 10-K 2022-05-31 vs 2021-06-01 99.5% boilerplate

Auditor changes auditor of record vs prior filing

  • KPMG LLP → PKF O’Connor Davies, LLP
    10-K 2024-05-30

Filing-timing anomalies filing lag vs the issuer's historical cadence

  • 10-K 2023-06-22 filed 83d after period end vs a 61.5d average (2 prior filings) +21.5d

Non-GAAP reconciliation expansion growth in adjusted-figure add-backs vs prior filing

  • 10-K 2025-05-30 1 → 9 add-backs (+8)
    new: Acquisition Related Costs Asset Impairment AND Restructuring Costs Change OF 344 Million Related TO Charges Associated WITH THE Settlement OF OUR DEBT Change OF 478 Million Related TO FAIR Value Changes ON Acquisition Related Contingent Consideration AND Other Depreciation AND Amortization Expense Income Taxes Other Income Expense NET Share Based Compensation Stock Based Compensation
  • 10-K 2023-06-22 18 → 5 add-backs (+-13)
    new: Inventory Write Downs AND Other Charges Other Impairments Ownership Changes
  • 10-K 2022-05-31 13 → 18 add-backs (+5)
    new: A Reduction IN Costs Attributable TO THE Restructuring Actions THAT WERE Initiated IN THE Fourth Quarter OF Fiscal 2020 AND Continued Through Fiscal 2021 AND Fiscal 2022 Acquisition Related Costs IN Fiscal 2021 WERE 135 Million AS Compared TO 208 Million IN Fiscal 2020 Asset Impairment AND Restructuring Costs Recorded IN Operating Expenses IN Fiscal 2021 WERE 5344 Million Charges Totaling 118 Million Related TO THE FLOW Through OF Inventory STEP UP Associated WITH THE Acquisition OF Supreme Cannabis IN THE First Quarter OF Fiscal 2022 Depreciation AND Amortization Expense WAS 716 Million IN Fiscal 2021 Inventory Write Downs Inventory Write Downs Recorded IN THE Second AND Fourth Quarters OF Fiscal 2022 Primarily IN Relation TO Excess Canadian Cannabis Inventory Losses Recorded IN THE Second Quarter OF Fiscal 2020 OF 108 Million Related TO A Legal Dispute WITH A Third Party Supplier AND 88 Million Associated WITH Additional Reserves ON Onerous Lease Obligations Lower Production Output Operating Costs Relating TO Facilities Payroll Subsidies IN THE Amount OF 110 Million Received FROM THE Canadian Government Restructuring Charges Totaling 1237 Million Relating TO Inventory Write Downs AND Other Charges Resulting Primarily FROM Strategic Changes TO OUR Business Share Based Compensation Related TO Acquisition Milestones WAS 81 Million IN Fiscal 2021 Unfavorable Product MIX

Auditor’s report opinion, going-concern & control flags, critical audit matters

  • 10-K 2025-05-30 unqualified going concern emphasis of matter 3 CAMs · auditor since 2023
    • Emphasis of Matter
    • Fair value measurement of financial instruments and equity method investments carried at fair value
    • Goodwill impairment assessment of the Storz & Bickel reporting unit
  • 10-K 2024-05-30 unqualified going concern 3 CAMs · auditor since 2023
    • Going Concern
    • Fair value measurement of the Acreage, TerrAscend, Wana, and Jetty financial instruments
    • Goodwill impairment assessment of the Storz & Bickel reporting unit
  • 10-K 2023-06-22 unqualified going concern material weakness 4 CAMs · auditor since 2019
    • Restatement of Previously Issued Financial Statements
    • Fair value measurement of the Acreage financial instrument
    • Goodwill impairment assessment of the Storz & Bickel reporting unit
    • Consolidation of Canopy USA under the variable interest entity model
  • 10-K 2022-05-31 unqualified 1 CAM · auditor since 2019
    • Fair value measurement of the liability arising from the Acreage financial instrument
  • 10-K 2021-06-01 unqualified 2 CAMs · auditor since 2019
    • Fair value measurement of the liability arising from the Acreage financial instrument
    • Fair value measurement of the Tranche B Warrants

Balance-sheet trends inventory, receivables, reserves & impairment vs prior year

  • Inventory building faster than sales FY 2025-03-31
    inventory +25% vs revenue -9% · DIO 130.4→185.6 days
  • Doubtful-accounts allowance eroding FY 2025-03-31
    allowance +22%→+3% of receivables, which grew +6%
  • Goodwill impairment charge FY 2024-03-31
    $42.08M charge · +3% of assets
  • Goodwill impairment charge FY 2023-03-31
    $1.73B charge · +71% of assets
  • Goodwill impairment charge FY 2022-03-31
    $40.75M charge · +1% of assets

Balance-sheet language forensic risk vocabulary shifting in MD&A / financials vs prior year

  • Inventory risk language
    density 0.71→1.14 / 10k chars (18→42 mentions) · new: excess inventory
  • Receivables risk language
    density 0.12→0.4 / 10k chars (2→8 mentions) · new: credit loss, expected credit loss

Revenue-recognition drift rev-rec policy language change vs prior filing

  • 10-K 2024-05-30 73% similar to prior acquisition context
    + Performance Obligations+ Right OF Return+ Variable Consideration
  • 10-K 2023-06-22 74% similar to prior accounting-standard adoption
    − Performance Obligations− Right OF Return− Variable Consideration