Devonian Health : Condensed Consolidated Interim Filings for the period ended April 30, 2022

Devonian Health Group Inc.

Interim Consolidated Condensed Financial Statements Nine-month period ended

April 30, 2022

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED ON APRIL 30, 2022

Statement concerning the condensed consolidated interim financial statements

Management has prepared the accompanying interim condensed consolidated financial statements of Devonian Health Group inc. which include the interim consolidated statement of financial position as at April 30, 2022, and the interim consolidated statements of net loss and comprehensive loss, changes in equity and cash flows for the nine-month period ended April 30, 2022. No auditing firm has reviewed or audited these condensed consolidated interim financial statements.

Devonian Health Group Inc.

Interim Consolidated Condensed Statements of Financial Position

As at

Unaudited

		April 30, 2022	July 31, 2021
		$	$
Assets
Current assets
Cash and cash equivalents	9,488,337	344,795
Accounts receivable (note 5)	529,439	318,803
Tax credits receivable (note 6)	-	16,251
Inventories (note 7)	88,865	28,221
Prepaid expenses	59,350	56,155
		10,165,991	664,225
Property, plant, equipment and right-of-use assets (note 8)	2,936,563	3,066,547
Intangible assets (note 9)	5,674,799	6,233,889
Goodwill (notes 3 and 9)	4,643,084	4,643,084
		23,420,437	14,607,745
Liabilities
Current liabilities
Accounts payable (note 10)	1,115,953	1,809,418
Current portion of lease liability	4,598	4,598
		1,120,551	1,814,016
Long-term debt (note 11)	3,574,845	3,570,081
Convertible debentures (note 12)	1,662,441	1,687,532
Lease liability	8,895	12,631
		6,366,732	7,084,260
Shareholders' Equity
Share capital (note 13)	27,572,182	20,208,600
Stock options (note 14)	1,262,669	765,205
Warrants (note 15)	4,811,534	540,421
Contributed surplus	3,452,890	3,387,704
Deficit	(20,045,570)	(17,378,445)
		17,053,705	7,732,893
		23,420,437	14,607,745

Statutes of incorporation and nature of activities (note 1)

Material uncertainty related to going concern (note 2)

Approved by the Board of Directors

_(s)_André Boulet, President and Chief Executive Officer(s)_Érick Shields,_______ Director

The accompanying notes are an integral part of these interim consolidated condensed financial statements.

Devonian Health Group Inc.

Interim Consolidated Condensed Statements of Net Loss and Comprehensive Loss

For the three-month and nine-month periods ended

Unaudited

	For the three-month period,	For the nine-month period
		ended		ended
	April 30,	April 30,	April 30,	April 30,
	2022	2021	2022	2021
	$	$	$	$
Distribution revenues	729,139	255,109	1,693,066	1,139,995
Operating expenses
Cost of sales	448,305	360,675	1,405,275	1,301,813
Research and development expenses	248,019	118,054	510,882	524,361
Administrative expenses	499,650	358,272	2,047,003	1,184,101
Financial expenses (note 18)	228,375	224,979	397,031	633,489
	1,424,349	1,061,980	4,360,191	3,643,764
Loss before other items and income taxes	(695,210)	(806,871)	(2,667,125)	(2,503,769	)
Other items
Canada Emergency Business Loan Grant	-	-	-	45,816
Loss before income taxes	(695,210)	(806,871)	(2,667,125)	(2,457,983	)
Income taxes
Recoverable	-	-	-	-
Net loss and comprehensive loss	(695,210)	(806,871)	(2,667,125)	(2,457,953	)
Net loss per share (note 19)
Basic	(0.006)	(0.01)	(0.02)	(0.03)
Diluted	(0.006)	(0.01)	(0.02)	(0.03)

Additional information to the interim condensed consolidated statements of net loss and comprehensive loss

(notes 2, 4 and 18)

The accompanying notes are an integral part of these interim consolidated condensed financial statements.

Devonian Health Group Inc.

Interim Consolidated Condensed Statements of Changes in Equity

For the periods ended April 30, 2022 and July 31, 2021 and 2020

Unaudited

				Number						Amount
		Stock				Share	Stock		Contributed
	Shares	options	Warrants	Total	capital	options	Warrants	surplus	Deficit	Total
						$	$	$	$	$	$
Balance, as at July 31, 2020	82,522,541	6,228,355	12,689,699	101,440,595		19,021,908	697,085	2,139,324	1,557,978	(14,032,065)	9,384,230
Issuance of shares (note 13)	10,738,147	-	-	10,738,147		1,158,986	-	-	-	-	1,158,968
Share issuance costs:
In cash	-	-	-	-		(35,671)	-	-	-	-	(35,671)
Stock-based compensation (note
14)	-	861,645	-	861,645		-	82,720	-	-	-	82,720
Issuance of warrants (note 15)	-	-	5,654,315	5,654,315		-	-	229,618	-	-	229,618
Warrants exercised (note 15)	200 000	-	(200,000)	-		63,500	-	(13,395)	-	-	50,000
Warrants expired (note 15)	-	-	8,403,361)	8,403,361		-	-	(1,815,126)	1,815,126	-	-
Options expired (note 14)	-	(150,000)	-	(150,000)	-	(14,600)	-	14,600	-	-
Net loss and comprehensive loss
for the year	-	-	-	-		-	-	-	-	(3,346,380)	(3,346,380)
	10,938,147	711,645	(2,949,046)	8,600,746		1,186,692	68,120	(1,598,903)	1,829,726	(3,346,380)	(1,860,745)
Balance, as at July 31, 2021	93,460,688	6,940,000	9,740,653	110,141,341		20,208,600	765,205	540,421	3,387,784	(17,378,445)	7,523,485
Issuance of shares (note 13)	37,677,947	-	-	37,677,947		7,535,147	-	-	-	-	7,535,147
Share issuance costs:
In cash	-	-	-	-		(171,565)	-	-	-	-	(171,565)
Stock-based compensation (note
14)	-	2,220,000	-	2,220,000		-	532,687	-	-	-	532,687
Options cancelled (note 14)	-	(375,000)	-	(375,000)	-	(35,523)	-	35,223	-	-
Issuance of warrants (note 15)	-	-	35,666,394	35,666,394		-	-	4,347,958	-	-	4,347,958
Warrants expired (note 15)	-	-	(943,600)	(943,600)	-	-	(29,963)	29,963	-	-
Warrants exercised (note 15)	-	-	(700,000)	(700,000)	-	-	(46,882)	-	-	(46,882)
	-	-	-	-		-	-	-	-	(2,667,125)	(2,667,125)
	37,647,947	1,845,000	34,022,794	73,545,741		7,363,582	497,464	4,271,113	65,186	(2,667,125)	9,530,220)
Balance, as at April 30, 2022	131,138,635	8,785,000	43,763,447	183,687,082		27,572,182	1,262,669	4,811,534	3,452,890	(20,045,570)	17,053,705

The accompanying notes are an integral part of these interim consolidated condensed financial statements.