Condensed Consolidated Interim Financial Statements
For the Three Months Ended May 31, 2022 and May 31, 2021
(Unaudited - Prepared by Management)
(Expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF
INTERIM FINANCIAL STATEMENTS
Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that an auditor has not reviewed the financial statements.
The accompanying unaudited interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
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NEO Battery Materials Ltd.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited - Expressed in Canadian Dollars)
May 31, | February 28, | |||
Assets | 2022 | 2022 | ||
Current Assets: | ||||
Cash and cash equivalents | $ | 535,019 | $ | 1,247,750 |
Marketable securities (Note 4) | 7,252 | 7,910 | ||
Prepaid expenses (Note 5) | 155,571 | 161,865 | ||
Sales tax and other receivables (Note 6) | 57,300 | 21,423 | ||
755,142 | 1,438,948 | |||
Non-Current Assets: | ||||
Deposits | - | 12,597 | ||
Equipment (Note 8) | 344,946 | 180,529 | ||
Exploration and evaluation assets (Note 7) | 1,344 | 1,344 | ||
Prepaid expenses - long term (Note 5) | 209,278 | 31,212 | ||
Right-of-use asset (Note 14) | - | 9,962 | ||
Total Assets | $ | 1,310,710 | $ | 1,674,592 |
Liabilities and Equity | ||||
Current Liabilities: | ||||
Accounts payable and accrued liabilities (Note 13) | $ | 222,453 | $ | 166,119 |
Lease liability - current portion (Note 14) | - | 12,167 | ||
222,453 | 178,286 | |||
Total Liabilities | 222,453 | 178,286 | ||
Shareholders' Equity: | ||||
Share capital (Note 15) | 22,390,351 | 22,311,985 | ||
Reserves (Note 15) | 7,771,420 | 7,792,453 | ||
Accumulated other comprehensive loss | (213,523) | (213,523) | ||
Deficit | (28,859,991) | (28,394,609) | ||
Total Equity | 1,088,257 | 1,496,306 | ||
Total Liabilities and Equity | $ | 1,310,710 | $ | 1,674,592 |
Nature of Operations and Going Concern (Note 1)
Subsequent Events (Note 19)
Approved by the Board of Directors on July 25, 2022:
"Spencer Sung Bum Huh" , Director"Larry Okada", Director
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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NEO Battery Materials Ltd.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
(Expressed in Canadian Dollars)
For Three Months Ended | ||||
May 31, 2022 | May 31, 2021 | |||
Expenses | ||||
Amortization (Note 7) | $ | 13,728 | $ | - |
Amortization of ROU asset (Note 14) | 9,962 | 14,943 | ||
Advertising and marketing | 23,664 | 49,334 | ||
Consulting and management fees (Note 16) | 89,646 | 122,900 | ||
Corporate listing and filing fees | 15,132 | 72,049 | ||
Investor relations | 13,672 | 23,228 | ||
Office and general | 13,123 | 8,764 | ||
Payroll expenses | 87,432 | - | ||
Professional fees (Note 16) | 48,243 | 44,298 | ||
Rent (Note 14) | 43,383 | 16,531 | ||
Research and development (Note 9) | 81,317 | 3,276 | ||
Stock-based compensation | - | 79,024 | ||
Sublease income (14) | (5,925) | (17,433) | ||
Travel | 9,931 | 2,530 | ||
Loss from operations | 443,308 | 419,444 | ||
Other expenses (income) | ||||
Interest expense - lease liability (Note 14) | 1,857 | 4,108 | ||
Interest expense - short-term loans | - | 68,790 | ||
Loss on foreign exchange | 19,559 | 1,328 | ||
Unrealized loss on marketable securities (Note 4) | 658 | 762 | ||
Total other expense | 22,074 | 74,988 | ||
Net loss and comprehensive loss for the period | $ | 465,382 | $ | 494,432 |
Loss per share: | ||||
Basic | $ | 0.00 | $ | 0.00 |
Weighted average number of common shares outstanding | 97,571,934 | 75,264,687 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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NEO Battery Materials Ltd.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Canadian Dollars)
For Three Months Ended | ||||
May 31, 2022 | May 31, 2021 | |||
Operating Activities: | ||||
Net loss for the year | $ | (465,382) | $ | (494,432) |
Adjustment for items which do not involve cash: | ||||
Amortization | 13,728 | - | ||
Amortization of ROU asset | 9,962 | 14,943 | ||
Stock-based compensation | - | 79,024 | ||
Unrealized loss on marketable securities | 658 | 761 | ||
Changes in non-cash working capital components: | ||||
Accounts payable and accrued liabilities | 158,233 | 32,683 | ||
Deposit account | 12,597 | - | ||
Short-term loan interest | - | 68,809 | ||
Prepaid expenses | (93,512) | (108,242) | ||
Sales tax and other receivables | (35,877) | (3,762) | ||
(399,593) | (410,216) | |||
Investing Activities: | ||||
Prepaid expenses - commercial plant design fees | (180,159) | - | ||
Equipment | (178,145) | - | ||
(358,304) | - | |||
Financing Activities: | ||||
Private placement | - | 2,057,000 | ||
Repayment - share subscription | - | (25,000) | ||
Repayment - short-term loan principal and interest | - | (1,359,169) | ||
Exercise of warrants | 53,333 | - | ||
Exercise of options | 4,000 | - | ||
Principal portion of lease liability | (12,167) | (16,320) | ||
45,166 | 656,511 | |||
Net changes in cash and cash equivalents | (712,731) | 246,295 | ||
Cash and cash equivalents - beginning of the period | 1,247,750 | 625,876 | ||
Cash and cash equivalents - end of the period | $ | 535,019 | $ | 872,171 |
Non-cash Activities: | ||||
Prepaid expenses in accounts payable and accrued liabilities | $ | 101,900 | $ | - |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
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NEO Battery Materials Ltd. published this content on 25 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2022 17:45:05 UTC.