Avant Brands : Financial Statements - May 31, 2022 Q2

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

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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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