Arch Biopartners : 2023 Q2 Interim Financial Statements

ARCH BIOPARTNERS INC.

Condensed Interim Consolidated

Financial Statements

Six Months Ended March 31, 2023 and 2022

(Unaudited - See Notice Of No Auditor Review)

Index to Condensed Interim Consolidated Financial Statements

Six Months Ended March 31, 2023 and 2022

(Unaudited - See Notice Of No Auditor Review)

	Page
NOTICE OF NO AUDITOR REVIEW	1
FINANCIAL STATEMENTS
Condensed Interim Consolidated Statement of Financial Position	2
Condensed Interim Consolidated Statement of Comprehensive Loss	3
Condensed Interim Consolidated Statement of Changes in Equity	4
Condensed Interim Consolidated Statement of Cash Flow	5
Notes to Condensed Interim Consolidated Financial Statements	6 - 26

NOTICE OF NO AUDITOR REVIEW

To the Shareholders of Arch Biopartners Inc.

The accompanying unaudited condensed interim consolidated financial statements have been prepared by and are the responsibility of the management of the Company.

In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its auditors have not reviewed the unaudited condensed interim consolidated financial statements for the period ended March 31, 2023.

"Richard Muruve" CEO and Director

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Condensed Interim Consolidated Statement of Financial Position

March 31, 2023 and September 30, 2022

(Unaudited - See Notice of No Auditor Review)

			March 31,		September 30,
			2023		2022
ASSETS
CURRENT	$	708,488
Cash	$	506,348
Amounts receivable (Notes 13, 14)			2,966,140		-
Harmonized sales tax receivable			7,308		87,232
Prepaid expenses			11,119		28,061
	$	3,693,055	$	621,641
LIABILITIES
CURRENT	$	3,136,954
Accounts payable and accrued liabilities (Note 10)	$	489,434
Interest payable on deferred convertible debt (Note 7)			65,829		190,000
Deferred Convertible Debt (Note 7)			2,100,000		2,100,000
Promissory note			1,505,548		-
			6,808,331		2,779,434
DEFERRED CONVERTIBLE DEBT (Note 7)			1,000,000		1,000,000
DUE TO SHAREHOLDER (Note 8)			213,914		260,532
PROMISSORY NOTE (Note 15)			1,102,130		1,052,267
			9,124,375		5,092,233
SHAREHOLDERS' EQUITY			15,754,508
Share capital (Note 9)				15,553,049
Contributed surplus (Note 9)			6,658,620		4,700,578
Deficit			(27,844,448)		(24,724,219)
			(5,431,320)		(4,470,592)
	$	3,693,055	$	621,641

ON BEHALF OF THE BOARD
	"Richard Muruve"	Director
	"Andrew Bishop"	Director

See notes to financial statements

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ARCH BIOPARTNERS INC.

Condensed Interim Consolidated Statement of Comprehensive Loss

Six Months Ended March 31, 2023 and 2022

(Unaudited - See Notice of No Auditor Review)

		3 months ended	3 months ended	6 months ended	6 months ended
			March 31,		March 31,		March 31,		March 31,
			2023		2022		2023		2022
REVENUE	$	2,531,421			$	2,966,140
Industry grants (Notes 13, 14)	$	1,123,478	$	1,558,381
EXPENSES			6,466				7,760
Communication				7,490			10,405
Insurance			12,410		833		25,542		833
Interest and bank charges			684		376		1,103		977
Interest on long-term debt			41,319		41,998		83,670		84,967
(Notes 7, 8)
Interest on promissory note			30,205		24,658		55,411		51,562
(Note 15)
Marketing			1,243		2,630		3,337		17,191
Office			5,988		6,586		11,567		11,764
Patent (Note 6)			39,253		2,643		50,682		18,946
Professional fees			76,615		68,865		143,026		110,430
Regulatory and exchange fees			68,380		24,561		70,575		32,488
Research			3,124,461		1,368,048		3,580,527		1,757,496
Share based compensation			-		12,488		1,958,042		24,976
(Note 9)
Transfer agent fee			1,791		2,379		5,483		6,672
Travel			735		766		3,226		3,226
Wages and employee benefits			90,110		48,623		145,176		95,301
			3,499,660		1,612,944		6,145,127		2,227,234
LOSS FROM
OPERATIONS			(968,239)		(489,466)		(3,178,987)		(668,853)
FOREIGN EXCHANGE GAIN
(LOSS)			5,815		1,760		58,758		6,396
NET COMPREHENSIVE LOSS	$	(962,424)	$	(487,706)	$	(3,120,229)	$	(662,457)
BASIC AND FULLY DILUTED
LOSS PER SHARE	$	(0.015)	$	(0.008)	$	(0.050)	$	(0.011)
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING			62,398,815		62,067,105		62,370,421		62,013,835

See notes to financial statements

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