1933 INDUSTRIES INC.
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three and nine months ended April 30, 2022 and 2021
(Expressed in Canadian Dollars)
(Unaudited)
Notice of Disclosure of Non-Auditor Review of the Condensed Interim Consolidated Financial Statements for the Three and Nine Months Ended April 30, 2022 and 2021.
Pursuant to subsection 4.3(3)(a) of National Instrument 51-102 - Continuous Disclosure Obligations, issued by the Canadian Securities Administrators, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim consolidated financial statements of 1933 Industries Inc. (the "Company" or "1933 Industries") for the interim period ended April 30, 2022 and 2021, have been prepared in accordance with the International Accounting Standard 34 - Interim Financial Reporting as issued by the International Accounting Standards Board, and are the responsibility of the Company's management.
The Company's independent auditors, MNP LLP, have not performed a review of these condensed interim consolidated financial statements.
June 29, 2022
1933 INDUSTRIES INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian dollars) - Unaudited
As at | Note | April 30, 2022 | July 31, 2021 |
$ | $ | ||
ASSETS | |||
Current | |||
Cash | 966,053 | 4,405,849 | |
Receivables | 4 | 1,737,056 | 934,109 |
Inventory | 5 | 7,466,085 | 4,199,850 |
Biological assets | 6 | 904,916 | 865,953 |
Loan receivable | 7 | 620,968 | - |
Prepaid expenses and deposits | 8 | 887,726 | 743,455 |
12,582,804 | 11,149,216 | ||
Property and equipment | 9 | 16,677,759 | 18,677,577 |
Goodwill | 10 | 4,465,341 | 15,527,023 |
Total assets | 33,725,904 | 45,353,816 | |
LIABILITIES | |||
Current | |||
Accounts payable and accrued liabilities | 3,137,629 | 1,381,208 | |
Income tax payable | 1,227,246 | 488,899 | |
Current portion of lease liability | 11 | 431,255 | 459,553 |
Warrant liability | 12 | - | 380,146 |
Current portion of convertible debentures | 13 | 4,482,729 | - |
9,278,859 | 2,709,806 | ||
Lease liability | 11 | 13,173,081 | 13,176,655 |
Convertible debentures | 13 | - | 4,234,819 |
Total liabilities | 22,451,940 | 20,121,280 | |
Shareholders' equity | |||
Share capital | 14 | 81,855,012 | 81,817,159 |
Reserves | 14(d) | 10,152,909 | 10,145,449 |
Accumulated other comprehensive loss | (1,156,057) | (1,320,710) | |
Deficit | (78,807,037) | (64,649,281) | |
Equity attributable to shareholders of the Company | 12,044,827 | 25,992,617 | |
Non-controlling interest | 15 | (770,863) | (760,081) |
Total shareholders' equity | 11,273,964 | 25,232,536 | |
Total liabilities and shareholders' equity | 33,725,904 | 45,353,816 |
Events after the reporting period (note 23)
Approved on behalf of the Board of Directors and authorized for issuance on June 29, 2022:
"Signed" | "Signed" | |
Brian Farrell, Director | Paul Rosen, Director |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
3
1933 INDUSTRIES INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF (LOSS) INCOME For the three and nine months ended April 30, 2022 and 2021
(Expressed in Canadian dollars, except share numbers) - Unaudited
Three months ended | Nine months ended | ||||
Note | 2022 | 2021 | 2022 | 2021 | |
$ | $ | $ | $ | ||
Revenues | 22 | 4,256,280 | 3,370,510 | 9,930,426 | 9,464,852 |
Cost of sales | 5 | 2,474,488 | 2,527,492 | 6,385,625 | 6,217,990 |
Gross margin, excluding fair value | |||||
adjustments | 1,781,792 | 843,018 | 3,544,801 | 3,246,862 | |
Fair value adjustment on sale of | |||||
inventory | 6 | (604,400) | 334,784 | (1,716,877) | (471,017) |
Fair value adjustment on biological | |||||
assets | 6 | 833,301 | 1,289,352 | 2,756,157 | 2,115,003 |
Gross margin | 2,010,693 | 2,467,154 | 4,584,081 | 4,890,848 | |
Expenses (income) | |||||
General and administration | 18,20 | 447,021 | 413,114 | 1,144,374 | 1,436,109 |
License fees, taxes, and insurance | 1,080,836 | 208,321 | 2,617,880 | 1,348,047 | |
Management and consulting fees | 18 | 107,000 | 110,580 | 321,677 | 305,227 |
Wages and benefits | 18 | 167,264 | 280,435 | 713,428 | 1,338,825 |
Professional fees | 18 | 425,698 | 349,736 | 972,459 | 880,796 |
Share-based compensation (recovery) | |||||
expense | 14(f) | (17,510) | 315,602 | 8,138 | 930,231 |
Interest expense | 11,13 | 440,046 | 439,994 | 1,335,139 | 1,580,914 |
Accretion expense | 13 | - | 16,625 | 10,434 | 91,377 |
Depreciation | 9 | 97,746 | 49,187 | 291,082 | 975,080 |
Gain on change in fair value of warrant | |||||
liability | 12 | (10,146) | - | (380,146) | - |
Gain on disposal of property and | |||||
equipment | 9 | (527,446) | - | (527,446) | - |
Goodwill impairment | 10 | 11,472,845 | - | 11,472,845 | - |
Interest income | 7 | (14,907) | - | (14,907) | - |
Other income | - | (298,013) | - | (298,013) | |
Foreign exchange (gain) loss | (731) | (1,100) | 44,786 | (55,271) | |
13,667,716 | 1,884,481 | 18,009,743 | 8,533,322 | ||
(Loss) income from continuing | |||||
operations before income taxes | (11,657,023) | 582,673 | (13,425,662) | (3,642,474) | |
Current income tax expense | (718,368) | - | (718,368) | - | |
Net (loss) income from continuing | |||||
operations | (12,375,391) | 582,673 | (14,144,030) | (3,642,474) | |
Net loss from discontinued operations | 21 | - | - | - | (2,493) |
Net (loss) income for the period | (12,375,391) | 582,673 | (14,144,030) | (3,644,967) | |
Net (loss) income from continuing | |||||
operations attributable to: | |||||
Shareholders of the Company | (12,371,044) | 389,107 | (14,157,756) | (3,700,717) | |
Non-controlling interest | (4,347) | 193,566 | 13,726 | 58,243 | |
Net (loss) income attributable to: | |||||
Shareholders of the Company | (12,371,044) | 389,107 | (14,157,756) | (3,703,210) | |
Non-controlling interest | (4,347) | 193,566 | 13,726 | 58,243 | |
Net (loss) income from continuing | |||||
operations per share | |||||
Basic and diluted | (0.03) | 0.00 | (0.03) | (0.01) | |
Net loss from discontinued operations | |||||
per share | |||||
Basic and diluted | - | - | - | (0.00) | |
Net (loss) income per share | |||||
Basic and diluted | (0.03) | 0.00 | (0.03) | (0.01) | |
Weighted average number of shares | |||||
outstanding | |||||
Basic and diluted | 450,699,319 | 365,763,894 | 450,679,522 | 365,763,894 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
4
1933 INDUSTRIES INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS For the three and nine months ended April 30, 2022 and 2021
(Expressed in Canadian dollars) - Unaudited
Three months ended | Nine months ended | |||
2022 | 2021 | 2022 | 2021 | |
$ | $ | $ | $ | |
Net (loss) income for the period | (12,375,391) | 582,673 | (14,144,030) | (3,644,967) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | ||||
(Item that will be | ||||
subsequently reclassified to profit or | ||||
loss) | 140,235 | (1,096,389) | 140,145 | (2,542,959) |
Comprehensive loss for the period | (12,235,156) | (513,716) | (14,003,885) | (6,187,926) |
Comprehensive (loss) income | ||||
attributable to: | ||||
Shareholders of the Company | (12,371,044) | 389,107 | (14,157,756) | (3,703,210) |
Translation adjustment - Shareholders of | ||||
the Company | 137,209 | (1,072,570) | 164,653 | (2,510,024) |
Comprehensive loss attributable to | ||||
shareholders of the Company | (12,233,835) | (683,463) | (13,993,103) | (6,213,234) |
Non-controlling interest | (4,347) | 193,566 | 13,726 | 58,243 |
Translation adjustment -Non-controlling | ||||
interest | 3,026 | (23,819) | (24,508) | (32,935) |
Comprehensive loss attributable to Non- | ||||
controlling interest | (1,321) | 169,747 | (10,782) | 25,308 |
(12,235,156) | (513,716) | (14,003,885) | (6,187,926) |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
1933 Industries Inc. published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2022 22:01:02 UTC.