1CM INC. LEVIATHAN NATURAL PRODUCTS INC.
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
For the Three and Nine Months Ended May 31, 2022 and 2021
(Expressed in Canadian Dollars)
LEVIATHAN NATURAL PRODUCTS INC.
NOTICE TO READER
Pursuant to National Instrument 51-102, Part 4, Subsection 4.3(3a) issued by the Canadian Securities Administrators, if the auditor of the Company has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating the financial statements have not been reviewed by the auditor.
The accompanying unaudited condensed interim consolidated financial statements of the Company for the three and nine months ended May 31, 2022 have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor, Clearhouse LLP, has not performed a review of the unaudited condensed interim consolidated financial statements for the three and nine months ended May 31, 2022.
Toronto,Ontario
July 29, 2022
1
LEVIATHAN NATURAL PRODUCTS INC. | ||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
AS AT MAY 31, 2022 AND AUGUST 31, 2021 | ||||
(Amounts Expressed in Canadian Dollars) | ||||
May 31 | August 31 | |||
2022 | 2021 | |||
(Unaudited) | (Audited) | |||
Assets | ||||
Current Assets | ||||
Cash | $ | 4,105,130 | $ | 162,459 |
Other receivable | 33,636 | 108,286 | ||
Inventory (Note 5) | 262,364 | 292,002 | ||
Prepaid expenses | 92,600 | 104,804 | ||
HST recoverable | 109,393 | 151,558 | ||
4,603,123 | 819,109 | |||
Investment property (Note 6) | 4,425,000 | 4,425,000 | ||
Investment | 25,000 | 25,000 | ||
License (Note 7) | 67,744 | 107,881 | ||
Property, plant & equipment (Note 8) | 3,793,517 | 3,945,135 | ||
Total Assets | $ | 12,914,384 | $ | 9,322,125 |
Liabilities | ||||
Current Liabilities | ||||
Accounts payable & accrued liabilities | $ | 1,148,130 | $ | 908,470 |
Deferred revenue | 324,937 | 605,670 | ||
Current portion of long-term debt (Note 9 and 13) | 6,254,818 | 1,694,841 | ||
7,727,885 | 3,208,981 | |||
Long-term debt (Note 9) | 7,271,535 | 10,566,636 | ||
Total Liabilities | 14,999,420 | 13,775,617 | ||
Non-Controlling Interest (Note 11) | (392,278) | (601,868) | ||
Equity | ||||
Share capital (Note 10(a)) | 36,749,202 | 31,138,597 | ||
Warrants (Note 10(c)) | - | 2,477,380 | ||
Options (Note 10(b)) | 2,369,614 | 2,230,123 | ||
Deficit | (40,546,703) | (39,417,531) | ||
Accumulated other comprehensive loss | (264,871) | (280,193) | ||
Total Equity | (1,692,758) | (3,851,624) | ||
Total Equity and Non-Controlling Interest | (2,085,036) | (4,453,492) | ||
Total Liabilities, Equity and Non-Controlling Interest | $ | 12,914,384 | $ | 9,322,125 |
Going Concern (Note 1), Contingencies (Note 15), Subsequent Events (Note 17) | ||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements. |
2
LEVIATHAN NATURAL PRODUCTS INC. | |||||||||||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (DEFICIT) | |||||||||||||||
FOR THE NINE MONTHS ENDED MAY 31, 2022 AND 2021 | |||||||||||||||
(Unaudited - Amounts Expressed in Canadian Dollars) | |||||||||||||||
Accumulated | Total | Non- | Total Equity and | ||||||||||||
Number of | Other | ||||||||||||||
Share Capital | Warrants | Options | Deficit | Shareholders' | Controlling Non-Controlling | ||||||||||
Shares | Comprehensive | ||||||||||||||
Equity | Interest | Interest | |||||||||||||
Loss | |||||||||||||||
Balance, August 31, 2020 | 84,743,603 | $ 31,138,597 | $2,477,380 | $1,963,008 | $ | (36,676,401) | $ | (259,792) | $ | (1,357,208) | $ | (244,615) | $ | (1,601,823) | |
Vesting of stock options (Note 10(b)) | - | - | - | 67,944 | - | - | 67,944 | - | 67,944 | ||||||
Net and comprehensive loss for the period | - | - | - | - | (2,785,538) | 17,843 | (2,767,695) | (216,798) | (2,984,493) | ||||||
Balance, May 31, 2021 | 84,743,603 | $ 31,138,597 | $2,477,380 | $2,030,952 | $ | (39,461,939) | $ | (241,949) | $ | (4,056,959) | $ | (461,413) | $ | (4,518,372) | |
Balance, August 31, 2021 | 84,743,603 | $ 31,138,597 | $2,477,380 | $2,230,123 | $ | (39,417,531) | $ | (280,193) | $ | (3,851,624) | $ | (601,867) | $ | (4,453,492) | |
Vesting of stock options (Note 10(b)) | - | - | - | 216,914 | - | - | 216,914 | - | 216,914 | ||||||
Expiry of stock options (Note10(b)) | - | - | - | (64,462) | 64,462 | - | - | - | - | ||||||
Exercise of stock options (Note10(b)) | 37,500 | 35,461 | - | (12,961) | - | - | 22,500 | - | 22,500 | ||||||
Issuance of shares on exercise of warrants (Note 10(c)) | 751,666 | 575,144 | (124,144) | - | - | - | 451,000 | - | 451,000 | ||||||
Expiry of warrants (Note10(c)) | - | - | (2,353,236) | - | 2,353,236 | - | - | - | - | ||||||
Issuance of shares on private placement (Note 10(a)) | 8,333,333 | 5,000,000 | - | - | - | - | 5,000,000 | 5,000,000 | |||||||
Acquisition of interest in subsidiary (Note 11(i)) | - | - | - | - | (407,135) | - | (407,135) | 375,099 | (32,036) | ||||||
Net and comprehensive loss for the period | - | - | - | - | (3,139,735) | 15,322 | (3,124,413) | (165,510) | (3,289,923) | ||||||
Balance, May 31, 2022 | 93,866,102 | $ 36,749,202 | $ | - | $2,369,614 | $ | (40,546,703) | $ | (264,871) | $ | (1,692,758) | $ | (392,278) | $ | (2,085,036) |
The accompanying notes are an integral part of these interim condensed consolidated financial statements. |
3
LEVIATHAN NATURAL PRODUCTS INC. | ||||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 AND 2021 | ||||||||
(Unaudited - Amounts Expressed in Canadian Dollars) | ||||||||
Three months | Nine months | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Revenue | ||||||||
Sales | $ | 117,939 | $ | 110,969 | $ | 498,636 | $ | 161,391 |
Rent and deferred revenue | 117,360 | 54,997 | 265,593 | 163,995 | ||||
235,299 | 165,966 | 764,229 | 325,386 | |||||
Cost of sales (Note 16) | 279,355 | 254,976 | 770,142 | 370,599 | ||||
(44,056) | (89,010) | (5,913) | (45,213) | |||||
Expenses | ||||||||
Salaries, wages & consulting fees (Note 13) | 180,338 | 247,671 | 793,537 | 904,988 | ||||
Interest, net (Note 9) | 483,656 | 333,480 | 1,416,830 | 970,131 | ||||
Professional fees | 76,932 | 48,205 | 244,173 | 153,113 | ||||
Office & general | 47,042 | 26,994 | 161,743 | 226,988 | ||||
Travel & promotion | 4,700 | 88 | 11,867 | 347 | ||||
Investor relations & fees | 21,556 | 14,594 | 56,558 | 61,880 | ||||
Share based compensation (Note 10(b) and Note 13) | 130,241 | 66,769 | 216,914 | 67,944 | ||||
Rent | (5,057) | 10,498 | 2,396 | 13,681 | ||||
Operational and utilities | 5,578 | 8,997 | 15,817 | 63,300 | ||||
Gain on modification of debt (Note 9(e)) | (9,930) | - | (9,930) | - | ||||
Amortization (Note 8) | 132,369 | 149,813 | 389,427 | 494,750 | ||||
1,067,425 | 907,109 | 3,299,332 | 2,957,122 | |||||
Net Loss | $ | (1,111,481) | $ | (996,119) | $ | (3,305,245) | $ | (3,002,335) |
Other Comprehensive Loss | ||||||||
Foreign currency translation | 5,688 | - | 15,322 | - | ||||
Net Comprehensive Loss | $ | (1,105,793) | $ | (996,119) | $ | (3,289,923) | $ | (3,002,335) |
Net Loss Attributable to: | ||||||||
Non-controlling interest (Note 11) | $ | (29,197) | $ | (71,228) | $ | (165,510) | $ | (216,798) |
Shareholders of the Company | $ | (1,082,283) | $ | (924,891) | $ | (3,139,735) | $ | (2,785,537) |
$ | (1,111,480) | $ | (996,119) | $ | (3,305,245) | $ | (3,002,335) | |
Weighted Average Number of Common Shares Outstanding - Basic and Diluted | 90,852,923 | 84,743,603 | 87,166,450 | 84,743,603 | ||||
(Note 12) | ||||||||
Basic and Fully Diluted Loss per Share | $ | (0.01) | $ | (0.01) | $ | (0.04) | $ | (0.03) |
The accompanying notes are an integral part of these interim condensed consolidated financial statements. |
4
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Leviathan Cannabis Group Inc. published this content on 30 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2022 00:52:01 UTC.
