VIVO CANNABIS INC. VIVO CANNABIS INC.
CONDENSED UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020
(In Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW
The accompanying condensed interim consolidated financial statements for VIVO Cannabis Inc. (the "Company") have been prepared by management. Pursuant to subsection 4.3(3)(a) of National Instrument 51-102 Continuous Disclosure Requirements, the Company advises that the accompanying condensed interim consolidated financial statements, which are the responsibility of management, are unaudited and have not been reviewed by the Company's auditor. The Company's auditor has not performed a review of the accompanying condensed interim consolidated 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.
VIVO CANNABIS INC.
Condensed Interim Consolidated Statements of Financial Position (Unaudited) (Expressed in Canadian dollars)
June 30, | December 31, | |||
2020 | ||||
As at | 2021 | (audited) | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 15,715,136 | $ | 5,702,983 |
Other financial assets (note 9 & 13) | 588,454 | 7,048,944 | ||
Accounts receivable (note 13) | 3,636,168 | 2,523,659 | ||
Inventories (note 3) | 10,893,634 | 12,623,038 | ||
Biological assets (note 4) | 1,419,767 | 2,015,573 | ||
Prepaid expenses | 1,103,736 | 1,670,268 | ||
33,356,895 | 31,584,465 | |||
Property, plant and equipment (note 5) | 41,146,618 | 43,621,537 | ||
Right-of-use assets | 393,790 | 473,037 | ||
Intangible assets (note 6) | 112,110,799 | 114,000,346 | ||
Goodwill | 12,336,947 | 12,336,947 | ||
$ | 199,345,049 | $ | 202,016,332 | |
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities (note 13) | $ | 6,199,861 | $ | 7,056,880 |
Current portion of lease liabilities | 135,809 | 135,809 | ||
6,335,670 | 7,192,689 | |||
Convertible debentures (note 11 & 13) | 4,556,215 | 5,265,934 | ||
Deferred revenue (note 8) | 8,800,000 | 8,800,000 | ||
Lease liabilities (note 13) | 341,431 | 414,172 | ||
Deferred income taxes | 33,001,740 | 33,199,750 | ||
53,035,056 | 54,872,545 | |||
Shareholders' equity | ||||
Share capital (note 7) | 288,806,101 | 282,308,066 | ||
Contributed surplus (note 7) | 21,226,086 | 21,190,895 | ||
Warrant reserve (note 7) | 3,076,251 | 1,335,900 | ||
Deficit | (166,785,274) | (157,757,071) | ||
Accumulated other comprehensive income | (13,171) | 65,997 | ||
146,309,993 | 147,143,787 | |||
$ | 199,345,049 | $ | 202,016,332 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Nature of operations (note 1)
Going concern (note 2(a))
Commitments and contingencies (note 8)
Subsequent events (note 18)
Approved and authorized for issue by the Board of Directors on August 16, 2021
"Ray Laflamme" | "Eric Shipman" | |
Director | Director |
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VIVO CANNABIS INC.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited) (Expressed in Canadian dollars)
For the 3 months ended | For the 6 months ended | |||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||
(as restated Note | (as restated | |||||
2(g)) | Note 2(g)) | |||||
Net revenue (note 15) | $ | 6,432,538 | 9,975,121 | $ | 11,935,996 | 18,714,389 |
Cost of sales and production | ||||||
Cost of inventory sold (note 3) | (3,733,138) | (5,616,251) | (6,479,156) | (9,868,867) | ||
Production salaries and wages | (936,145) | (1,267,883) | (1,854,976) | (2,183,047) | ||
Production amortization and depreciation (notes 5) | (950,317) | (854,667) | (1,827,698) | (1,673,702) | ||
Production supplies and expense | (425,855) | (605,122) | (578,950) | (1,229,667) | ||
Revenues less cost of sales and production before fair value adjustments | 387,083 | 1,631,198 | 1,195,216 | 3,759,106 | ||
Realized gain on biological transformation (note 4) | (2,126,426) | (2,486,997) | (4,461,856) | (7,727,978) | ||
Increase in fair value due to biological transformation (note 4) | 1,619,359 | 3,057,361 | 3,814,870 | 6,262,784 | ||
Revenue less cost of sales and production and fair value adjustments | (119,984) | 2,201,562 | 548,230 | 2,293,912 | ||
Expenses | ||||||
General and administrative | 4,149,020 | 4,469,194 | 8,125,375 | 9,805,171 | ||
Sales and marketing | 196,177 | 218,070 | 301,242 | 408,414 | ||
Amortization and depreciation (notes 3, 5 & 6) | 1,078,205 | 1,114,300 | 2,156,575 | 2,222,357 | ||
Stock-based payments (notes 7, 10 & 11) | 97,445 | 587,805 | 207,300 | 943,480 | ||
Finance expense (notes 11 & 13) | 242,832 | 1,193,905 | 459,338 | 2,706,435 | ||
Loss (gain) gain on sale of property and equipment | 39,445 | - | 39,445 | - | ||
Loss on change in fair value of derivative liability | - | 10,796 | - | 10,796 | ||
Loss (gain) on other financial assets (note 9) | (27,000) | (621,174) | (1,297,432) | 2,078,769 | ||
Foreign exchange loss | 27,546 | 19,899 | 39,840 | 46,357 | ||
Other income | (8,512) | (47,901) | (70,265) | (120,569) | ||
5,795,168 | 6,944,894 | 9,961,428 | 18,101,210 | |||
Loss from operations before income taxes | (5,915,152) | (4,743,332) | (9,413,198) | (15,807,298) | ||
Income tax expense - current (note 17) | (2,615) | 304,167 | (186,985) | 721,538 | ||
Income tax recovery - deferred (note 17) | (431,711) | (412,797) | (198,010) | (833,230) | ||
Net loss | (5,480,826) | (4,634,702) | (9,028,203) | (15,695,606) | ||
Other comprehensive income (loss) | ||||||
Amounts that may be reclassified subsequently to profit or loss: | ||||||
Foreign exchange translation gain (loss) | 27,250 | 126,209 | (79,168) | 96,069 | ||
Comprehensive loss | $ | (5,453,576) | (4,508,493) | $ | (9,107,371) | (15,599,537) |
Net loss per share | ||||||
Earnings per share, basic and diluted | $ | (0.01) | (0.02) | $ | (0.03) | (0.05) |
Weighted average shares outstanding, basic and diluted | 370,896,867 | 295,888,654 | 358,557,421 | 295,888,645 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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VIVO CANNABIS INC.
Condensed Interim Consolidated Statements of Changes in Shareholders' (Deficiency) Equity (Unaudited)
(Expressed in Canadian dollars)
Other | ||||||||
Common | Contributed | Warrant | Comprehensive | |||||
Shares | Surplus | Reserve | Deficit | Loss | Total | |||
Balance, January 1, 2021 | $282,308,066 | $21,190,895 | $1,335,900 | $ (157,757,071) | $65,997 | $147,143,787 | ||
Stock-based payments (note 7) | - | 207,299 | - | - | - | 207,299 | ||
Issuance of unit (note 7) | 6,095,361 | - | 1,954,639 | - | - | 8,050,000 | ||
Net loss for the period | - | - | - | (9,028,203) | - | (9,028,203) | ||
Conversion of debentures (note 11) | 1,081,248 | (172,108) | - | - | - | 909,140 | ||
Issuance Costs | (681,358) | - | (213,559) | - | - | (894,917) | ||
Conversion of warrants (note 7) | 2,784 | - | (729) | - | - | 2,055 | ||
Foreign exchange translation | - | - | - | - | (79,168) | (79,168) | ||
Balance, June 30, 2021 | $288,806,101 | $21,226,086 | $3,076,251 | $(166,785,274) | $ (13, 171) | $146,309,993 | ||
Other | ||||||||
Contributed | Warrant | Comprehensive | ||||||
Common Shares | Surplus | Reserve | Deficit | Loss | Total | |||
Balance, January 1, 2020 | $275,676,482 | $ 17,287,440 | $ 4,030,657 | $ (102,099,860) | $4,976 | $ 194,899,695 | ||
Stock-based payments (note 7) | 43,238 | 609,242 | - | - | - | 652,480 | ||
Expiry of warrants (note 7) | (264,377) | 4,173,146 | (3,908,769) | - | - | - | ||
Net loss for the period | - | - | - | (15,695,606) | - | (15,695,606) | ||
Adjustment on redemption of | - | - | - | (329,340) | ||||
convertible note | - | (329,340) | ||||||
Foreign exchange translation | - | - | - | - | 96,069 | 96,069 | ||
Balance, June 30, 2020 | $275,455,343 | $21,740,488 | $121,888 | $(117,795,466) | $101,045 | $179,623,298 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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VIVO Cannabis Inc. published this content on 16 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2021 08:02:03 UTC.
