TABLE OF CONTENTS
Condensed Interim Consolidated Statements of Financial Position | 3 |
Condensed Interim Consolidated Statements of Comprehensive Loss | 4 |
Condensed Interim Consolidated Statements of Changes in Equity | 5 |
Condensed Interim Consolidated Statements of Cash Flows | 6 |
Notes to the Condensed Interim Consolidated Financial Statements | 7-19 |
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AVANT BRANDS INC.
Condensed Interim Consolidated Statements of Financial Position
As at May 31, 2022 and November 30, 2021
(Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts)
Note | May 31, 2022 | November 30, 2021 | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 8,932 | $ | 14,313 | |
Accounts receivable | 4 | 4,700 | 2,348 | ||
Prepaid expenses | 5 | 872 | 1,210 | ||
Biological assets | 6 | 1,752 | 1,948 | ||
Inventory | 7 | 8,143 | 6,171 | ||
Marketable Securities | 14 | 176 | |||
24,413 | 26,166 | ||||
Property, plant and equipment | 8 | 16,890 | 17,069 | ||
Goodwill | 9 | 182 | 182 | ||
Intangible assets | 9 | 2,463 | 3,202 | ||
Investment in associate | 10 | 5,987 | 3,951 | ||
Total assets | $ | 49,935 | $ | 50,570 | |
Liabilities | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 16 | $ | 3,071 | $ | 2,073 |
Lease liabilities | 11 | 355 | 322 | ||
3,426 | 2,395 | ||||
Lease liabilities | 11 | 106 | 301 | ||
Total liabilities | 3,532 | 2,696 | |||
Shareholders' equity | |||||
Share capital | 12 | 93,956 | 92,744 | ||
Contributed surplus | 13 | 8,533 | 6,877 | ||
Accumulated deficit | (56,086) | (51,747) | |||
Total shareholders' equity | 46,403 | 47,874 | |||
Total liabilities and shareholders' equity | $ | 49,935 | $ | 50,570 |
Nature and continuance of operations (Note 1)
Commitments and contingencies (Note 18)
Subsequent events (Note 19)
Approved on behalf of the Board on July 13, 2022: | |
/s/ Duane Lo, Director | /s/ Derek Sanders, Director |
The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements
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AVANT BRANDS INC.
Condensed Interim Consolidated Statements of Comprehensive Loss
For the three-month and six-month periods ended May 31, 2022 and May 31, 2021
(Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts)
Three months ended May 31 | Six months ended May 31 | ||||||||
Note | 2022 | 2021 | 2022 | 2021 | |||||
Revenue | $ | 4,456 | $ | 2,904 | $ | 9,070 | 5,133 | ||
Excise taxes | (382) | (446) | (799) | (705) | |||||
Net revenue | 14 | 4,074 | 2,458 | 8,271 | 4,428 | ||||
Cost of sales | 3,139 | 1,497 | 6,382 | 2,657 | |||||
Gross margin before fair value changes | 935 | 961 | 1,889 | 1,771 | |||||
Unrealized gain on changes in fair value of biological assets | 544 | 1,241 | 1,366 | 2,933 | |||||
Change in fair value of biological assets realized through inventory sold | (629) | (873) | (1,710) | (1,637) | |||||
Gross margin | 850 | 1,329 | 1,545 | 3,067 | |||||
Operating expenses | |||||||||
Administration and general | 188 | 36 | 257 | 124 | |||||
Business fees and licenses | 214 | 158 | 433 | 331 | |||||
Consulting fees | 156 | 181 | 292 | 181 | |||||
Depreciation and amortization | 8,9 | 421 | 202 | 841 | 487 | ||||
Marketing and advertising | 156 | 72 | 276 | 228 | |||||
Professional fees | 535 | 358 | 757 | 485 | |||||
Salaries and wages | 605 | 382 | 1,105 | 825 | |||||
Share based payments | 13 | 2,977 | 49 | 2,999 | 125 | ||||
Travel | 70 | 15 | 108 | 35 | |||||
5,322 | 1,453 | 7,068 | 2,821 | ||||||
Net (loss) income from operations | (4,472) | (124) | (5,523) | 246 | |||||
Other income (expense) | |||||||||
Canadian emergency wage subsidy | - | 383 | - | 898 | |||||
Financing costs | (11) | (18) | (23) | (55) | |||||
Equity income (loss) on investment in associate | 10 | 652 | (146) | 1,233 | (276) | ||||
Non-refundable deposit | - | 25 | - | 25 | |||||
Gain on the sale of assets | 6 | - | 6 | - | |||||
Gain on legal settlement | 26 | - | 130 | - | |||||
Loss on marketable securities | (45) | - | (162) | - | |||||
Loss on extinguishment of debt | - | (1,024) | - | (1,024) | |||||
Interest and accretion | - | (640) | - | (1,103) | |||||
Net loss from continuing operations | (3,844) | (1,544) | (4,339) | (1,289) | |||||
Net (loss) income from discontinued operations | - | (132) | - | 430 | |||||
Net loss and comprehensive loss | $ | (3,844) | $ | (1,676) | (4,339) | $ | (859) | ||
Loss per common share | |||||||||
Basic and fully diluted | $ | (0.02) | $ | (0.01) | $ | (0.02) | $ | (0.00) | |
Weighted average shares outstanding | |||||||||
Basic and fully diluted | 201,370,479 | 187,257,377 | 200,941,504 | 182,008,595 |
The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements
4
AVANT BRANDS INC.
Condensed Interim Consolidated Statements of Changes in Equity
For the six-month periods ended May 31, 2022 and May 31, 2021
(Unaudited, Expressed in Thousands of Canadian Dollars Except Share Amounts)
Attributable to equity holders of the Company | ||||||||||||
Share | Subscriptions | Contributed | ||||||||||
Shares | capital | received | Surplus | Deficit | Total | |||||||
Balance at November 30, 2021 | 199,591,886 | $ | 92,744 | $ | - | $ | 6,877 | $ | (51,747) | $ | 47,874 | |
Net loss for the period | - | - | - | - | (4,339) | (4,339) | ||||||
Shares issued for contingent | ||||||||||||
consideration for acquisitions | 1,000,000 | 280 | - | (280) | - | - | ||||||
Share units released | 758,275 | 222 | - | (355) | - | (133) | ||||||
Shares issued for services | 2,627,500 | 710 | - | - | - | 710 | ||||||
Share-based compensation | - | - | - | 2,291 | - | 2,291 | ||||||
Balance at May 31, 2022 | 203,977,661 | $ | 93,956 | $ | - | $ | 8,533 | $ | (56,086) | $ | 46,403 | |
Balance at November 30, 2020 | 140,723,195 | $ | 62,214 | $ | 85 | $ | 6,526 | $ | (40,405) | $ | 28,420 | |
Net loss for the period | - | - | - | - | (859) | (859) | ||||||
Units issued from financing | 42,500,000 | 24,600 | - | 1,150 | - | 25,750 | ||||||
Share issuance cost | (2,212) | 660 | - | (1,552) | ||||||||
Shares issued for contingent | ||||||||||||
consideration for acquisitions | 795,454 | 438 | - | - | (438) | - | ||||||
Share-based compensation | - | - | - | 125 | - | 125 | ||||||
Exercise of warrants | 9,519,591 | 3,840 | - | (785) | - | 3,055 | ||||||
Exercise of stock options | 2,225,500 | 1,296 | (85) | (452) | - | 759 | ||||||
Shares issued for debt settlement | 3,650,646 | 2,336 | - | (556) | - | 1,780 | ||||||
Balance at May 31, 2021 | 199,414,386 | $ | 92,512 | $ | - $ | 6,668 | $ | (41,702) | $ | 57,478 |
The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements
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Avant Brands Inc. published this content on 13 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 July 2022 23:43:03 UTC.