Li FT Power : 2024 Q1 Financial Report

Li-FT POWER LTD.

Condensed Interim Consolidated Financial Statements

For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

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Li-FT POWER LTD.

Condensed Interim Consolidated Statements of Financial Position As at February 29, 2024 and November 30, 2023

(Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

				February 29,	November 30,
		Note	2024		2023
Assets		$		$
Current
Cash and cash equivalents	4	6,590		17,737
Amounts receivable	5	1,927		2,581
Prepaid expenditures	6	2,676		4,631
Total current assets		11,193		24,949
Non-current
Right-of-use leased assets		166		449
Exploration and evaluation properties	8	247,058		236,304
Equipment		359		11
Total Assets		258,776		261,713
Liabilities and Shareholders' Equity
Current
Accounts payable and accrued liabilities	9	2,376		2,238
Lease liabilities		64		183
Flow-through share premium liability	12	2,408		5,885
Total current liabilities		4,848		8,306
Non-current
Lease liabilities		114		131
Deferred income tax liability		9,827		8,084
Total Liabilities		14,789		16,521
Share capital	10	239,912		239,912
Share-based payment reserve	10	3,263		2,547
Retained earnings		812		2,733
Total Equity		243,987		245,192
Total Liabilities and Shareholders' Equity		258,776		261,713
Going concern (Note 2)
Subsequent events (Note 16)
Approved and authorized for issuance by the Board of directors on April 25, 2024 by:
/s/ Kenneth Scott				/s/ Iain Scarr
Kenneth Scott, Director			Iain Scarr, Director

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

statements.

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Li-FT POWER LTD.

Condensed Interim Consolidated Statements of Net Loss and Comprehensive Loss For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

		Three months ended
		February 29,	February 28,
	Note	2024	2023
		$	$
Operating expenses
Amortization		52	-
Director fees	11	23	-
Filing fees		56	28
Investor relations		2,652	51
Management, consulting fees and salaries		251	320
Office expenses		70	26
Professional fees		41	63
Project evaluation		-	19
Share-based payments	10	653	-
Travel expense		94	42
Loss from operations		(3,892)	(549)
Other (expenses) income
Finance expenses and other		(6)	(2)
Foreign exchange gain (loss)		80	(8)
Interest income		162	50
Loss before income taxes		(3,656)	(509)
Deferred income tax recovery		1,735	-
Net loss and comprehensive loss for the period		(1,921)	(509)
Net loss per share, basic and diluted		(0.05)	(0.02)
Weighted average shares outstanding, basic, and		40,864,177	30,465,063
diluted

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

statements.

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Li-FT POWER LTD.

Condensed Interim Consolidated Statement of Changes in Shareholders' Equity For the three months ended February 29, 2024 and February 28, 2023

(Unaudited - Expressed in thousands of Canadian dollars, except share and per share amounts)

				(Accumulated
	Number of		Share-based	deficit)/
	common	Share	payment	retained
	shares	capital	reserve	earnings	Total
		$	$	$	$
Balance, November 30, 2022	18,465,063	12,225	5	(816)	11,414
Shares issued for exploration and	18,000,000	198,000	-	-	198,000
evaluation properties (Note 10)
Net loss and comprehensive loss for the				(509)	(509)
period	-	-	-
Balance, February 28, 2023	36,465,063	210,224	5	(1,325)	208,905

Balance, November 30, 2023

40,864,177

239,912

2,547

2,733 245,192

Share-based payments (Note 10)

Net loss and comprehensive loss for the period

-	-	716	-	716
-	-	-	(1,921)	(1,921)

Balance, February 29, 2024	40,864,177	239,912	3,263	812 243,987

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

statements.

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Li-FT POWER LTD.

Condensed Interim Consolidated Statements of Cash Flows

For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

	February 29, 2024	February 28, 2023
	$
Cash flows from operating activities	$
Net loss for the period	(1,921)	(509)
Adjustments for:
Amortization	52	-
Share-based payments (Note 10)	653	-
Deferred income tax recovery	(1,735)	-
Changes in non-cash working capital items:
Decrease (increase) in amounts receivable	654	(12)
Decrease (increase) in prepaid expenditures	527	(28)
Increase (decrease) in accounts payable and	30	61
accrued liabilities
Total cash used in operating activities	(1,740)	(488)
Cash flows from investing activities
Exploration and evaluation expenditures	(9,155)	(727)
Equipment purchases	(247)	-
Acquisition of subsidiary, net of cash received	-	10,375
Total cash used in investing activities	(9,402)	9,648
Cash flows from financing activities
Interest paid on lease liability	(5)	-
Proceeds from loan received	-	505
Total cash provided by financing activities	(5)	505
Change in cash and cash equivalents	(11,147)	9,665
Cash and cash equivalents, beginning	17,737	5,442
Cash and cash equivalents, end	6,590	15,107
Supplemental information / non-cash flow items
Share-based compensation relating to exploration and	716	-
evaluation properties
Change in prepaid expenses relating to exploration	1,428	-
and evaluation properties
Change in accounts payable and accrued liabilities	108	-
relating to exploration and evaluation properties
Interest received in cash	125	-
Shares issued for exploration and evaluation	-	198,000
acquisitions

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

statements.

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Li-FT Power Ltd.

Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

1. NATURE OF OPERATIONS
   Li-FT Power Ltd. (the "Company") was incorporated under the Business Corporations Act (British Columbia) on May 28, 2021. The Company is an exploration stage company engaged in the acquisition, exploration, and development of mineral properties with a focus on lithium. The Company is listed on the Toronto Stock Exchange - Venture ("TSX-V") with the symbol "LIFT", on the OTC QX with the symbol "LIFFF" and on the Frankfurt Stock Exchange with the symbol "WS0".
   The head office of the Company and principal address is 1218 - 1030 West Georgia Street, Vancouver, BC V6E 2Y3. The registered address and records office of the Company is located at 2080-777 Hornby Street, Vancouver, BC V6Z 1S4.
2. BASIS OF PRESENTATION AND GOING CONCERN
   These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 - Interim Financial Reporting, under International Financial Reporting Standards issued by the International Accounting Standards Board ("IFRS"). These condensed interim consolidated financial statements follow the same accounting policies and methods of application as the most recent audited annual financial statements of the Company. These condensed interim consolidated financial statements do not contain all of the information required for full annual financial statements. Accordingly, these condensed interim consolidated financial statements should be read in conjunction with the Company's audited annual consolidated financial statements for the year ended November 30, 2023, which were on a going concern basis, which assumes that the Company will be able to meet its obligations and continue its operations for the next twelve months. Realization values may be substantially different from carrying values as shown in these condensed interim consolidated financial statements and do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. The Company has incurred losses from inception and does not currently have the financial resources to sustain its operations and exploration programs. These factors may cast significant doubt upon the Company's ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business. Although the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company (Note 16 - subsequent events provides the details of financing which completed in March 2024).
   The unaudited condensed interim consolidated financial statements are presented in Canadian dollars, which is also the Company's and its subsidiaries' functional currency, except where otherwise indicated. All values are rounded to the nearest thousand dollars, except per share values.
   The condensed interim consolidated financial statements of the Company for the interim period ended February 29, 2024, were approved, and authorized for issue by the Board of Directors on April 25, 2024.
   Basis of Consolidation
   For the current financial year beginning on December 1, 2023, these condensed interim consolidated financial statements include the accounts of the Company, and its Canadian subsidiaries as follows:

Subsidiary	Ownership	Jurisdiction	Nature of Operations
	interest
Yellowknife Lithium Ltd.	100%	BC, Canada	Mineral exploration
EREX International Ltd.	100%	BC, Canada	Mineral exploration

Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the condensed interim consolidated financial statements.

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Li-FT Power Ltd.

Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

1. BASIS OF PRESENTATION AND GOING CONCERN (continued) Future accounting standards and interpretations
   Accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have significant impact on the Company's financial statements.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
   The preparation of interim financial statements in accordance with IFRS requires management to make estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the interim financial statements, and the reported amount of revenues and expenses during the period. The Company's most significant accounting judgements relate to the going concern assessments, ongoing viability of its exploration and evaluation properties, determining if an acquisition is a business combination or an asset acquisition, and the assumptions used to estimate share-based compensation.

1. SIGNIFICANT JUDGEMENT

1. Going concern

In preparation of these condensed interim consolidated financial statements on a going concern basis, as disclosed in Note 2, management's critical judgement is that the Company will be able to meet its obligations and continue its operations for the next twelve months. Actual amounts could differ from these estimates.

(b) Impairment indicators for exploration and evaluations properties

Management must also determine if there are indicators that its rights to explore its exploration and evaluation properties have expired or may expire in the future, that future exploration and evaluation plans are not warranted, or that the development of the properties or portions thereof is unlikely to recover existing exploration and evaluation costs. Should any of these indicators be present, the exploration and evaluation properties could be impaired.

(c) Business combination or asset acquisition

With each acquisition, the Company has to determine whether it should be accounted for as a business combination or an asset acquisition. As dictated by IFRS 3, the components of a business must include inputs, processes and outputs. Management has assessed its acquisition and has concluded that it did not include all the necessary components of a business. As such, it was recorded as an asset acquisition, being the purchase of exploration and evaluation properties and/or working capital.

1. SIGNIFICANT ESTIMATES

1. Share-basedpayments

The Company uses the Black-ScholesOption-Pricing Model to estimate the fair value of options and warrants, which requires the input of subjective assumptions including the expected price volatility of the Company's common shares and the expected life and forfeiture rate of the security. Changes in these subjective input assumptions can materially affect the fair value estimate.

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Li-FT Power Ltd.

Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

4. CASH AND CASH EQUIVALENTS

The Company's cash and cash equivalents as at February 29, 2024 and November 30, 2023 consist of the following amounts:

		February 29,	November 30,
	2024	2023
		$	$
Cash	3,565	13,712
Cash equivalents		3,025	4,025
Total Cash and Cash Equivalents	6,590	17,737

5. AMOUNTS RECEIVABLE

The Company's amounts receivable as at February 29, 2024 and November 30, 2023 consist of the following amounts:

		February 29,	November 30,
	2024	2023
		$	$
Goods and services tax receivable	1,890	1,407
Revenue Quebec exploration tax credit	-	1,144
Interest receivable	37	30
Total Amount Receivable		1,927	2,581

6. PREPAID EXPENDITURES

The Company's prepaid expenditures as at February 29, 2024 and November 30, 2023 consist of the following amounts:

		February 29,	November 30,
	2024	2023
		$	$
Cash advance to Operator of Yellowknife exploration (1)	2,259	2,494
Cash advance to Operator of Quebec exploration (1)	240	1,432
Other prepaid expenditures		177	705
Total Prepaid Expenses	2,676	4,631

1. Balances presented are net of amounts incurred on exploration and evaluation expenditures during the periods.

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Li-FT Power Ltd.

Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

7. ACQUISITION OF YELLOWKNIFE LITHIUM PROJECT

On December 30, 2022, the Company, through a wholly-owned subsidiary, completed its amalgamation with 1361516 B.C. Ltd. (the "Target") and received all the outstanding common shares of this privately held mineral exploration company, which owns the Yellowknife Lithium Project ("YLP") located in the Northwest Territories, in exchange for 18,000,000 common shares of Li-FT Power Ltd. (the "Yellowknife Lithium Transaction"). The Yellowknife Lithium Transaction was conducted by way of an amalgamation arrangement, which ultimately resulted in the Target becoming a wholly-owned subsidiary of Li-FT Power Ltd.

For accounting purposes, the amalgamation with the Target has been recorded as an asset acquisition as the Target is not considered to be a business when applying the guidance within IFRS 3 Business Combinations.

The consideration paid and the fair value of identifiable assets acquired and liabilities assumed from the Target were as follows:

Total Share Consideration paid (Note 10)	$198,000
Assets acquired and liabilities assumed
Cash received	10,375
Loan receivable from Li-FT Power Ltd	755
Accounts payable	(46)
Exploration and evaluation properties (Note 8) - YLP	168,916
Exploration and evaluation properties (Note 8) - Cali	18,000
Net Assets Acquired	$198,000

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Li-FT Power Ltd.

Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)

8. EXPLORATION AND EVALUATION PROPERTIES

Exploration and evaluation properties include the following amounts as at February 29, 2024 and November 30, 2023.

	Yellowknife	Cali	Rupert	Pontax	Moyenne
	Lithium Project	Project	Project	Project	Project	Total
	$	$	$	$	$	$
Balance, November 30, 2022	-	-	9,979	25	-	10,004
Acquisition costs	169,466	18,000	3,025	25	-	190,516
Exploration and evaluation expenditures
Claims, taxes and holding costs	648	-	42	20	1	711
Salaries and share based payments	2,693	118	1,421	471	15	4,718
Drilling, exploration, and technical consultation	18,574	561	2,396	427	22	21,980
Assaying, field supplies and environmental consultation	7,099	89	1,371	235	-	8,794
Travel and other project expenses	518	26	144	37	-	725
Revenue Quebec Exploration Tax Credit	-	-	(1,144)	-	-	(1,144)
Total exploration and evaluation expenditures	29,532	794	4,230	1,190	37	35,784
Balance, November 30, 2023	198,998	18,794	17,234	1,240	37	236,304
Acquisition costs	700	-	-	-	-	700
Exploration and evaluation expenditures
Claims, taxes and holding costs	212	-	2	1	1	216
Salaries and share based payments	1,148	37	42	14	4	1,245
Drilling, exploration, and technical consultation	4,642	8	57	2	2	4,711
Assaying, field supplies and environmental consultation	3,666	20	53	74	-	3,813
Travel and other project expenses	449	-	1	-	-	450
Revenue Quebec Exploration Tax Credit	-	-	(381)	-	-	(381)
Total exploration and evaluation expenditures	10,817	65	(226)	91	7	10,754
Balance, February 29, 2024	209,815	18,859	17,008	1,331	44	247,058

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