AVIVAGEN INC. Avivagen Inc.
Financial Statements
April 30, 2022
Management's Statement of Responsibility
The financial statements of Avivagen Inc. have been prepared by management in accordance with International Financial Reporting Standards ("IFRS"). Financial statements are not precise, since they include certain amounts based on estimates and judgments. When alternative methods exist, management has chosen those which it deems most appropriate in the circumstances in order to ensure that the financial statements are presented fairly, in all material respects, in accordance with IFRS.
The Board of Directors of Avivagen Inc. ensures that management fulfills its responsibilities for financial reporting and internal control through an Audit Committee. This Committee meets periodically with management and the external auditor to discuss internal controls, auditing matters, and financial reporting issues, and to satisfy itself that each party is properly discharging its responsibilities. The Committee reviews the financial statements and reports to the Board of Directors. The external auditor has full and direct access to the Audit Committee.
Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement, on a cost-effective basis, the disclosure controls and procedures and internal control over financial reporting as defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings (NI 52-109) will result in additional risks to the quality, reliability, transparency and timeliness of annual and interim filings and other reports provided under securities legislation.
In contrast to the certification required for non-venture issuers under NI 52-109, Avivagen Inc. does not include representations relating to the establishment and maintenance of disclosure controls and procedures and internal control over financial reporting, as defined in NI 52-109. In particular, the CEO and CFO filing these financial statements are not making any representations relating to the establishment and maintenance of:
- Controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and/or reported within the time periods specified in securities legislation; and
- A process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's IFRS reporting.
APPROVED BY
(Signed)
Kym Anthony CEO (Signed)
Chris Boland CFO
Avivagen Inc. | Page 1 of 31 |
Unaudited Interim Statements of Financial Position
As at April 30, 2022 and October 31, 2021 (Expressed in Canadian dollars)
Note | April 30, 2022 | October 31, 2021 | |||
(Unaudited) | |||||
Assets | |||||
Current Assets | 13(A)(i) | ||||
Cash and cash equivalents | $ | 1,465,367 | $ | 1,408,291 | |
Trade and other receivables and other assets | 13(A)(ii) | 208,274 | 438,530 | ||
Inventories | 10 | 970,068 | 1,231,775 | ||
Prepaid expenses | 11 | 234,857 | 137,426 | ||
Total Current Assets | 2,878,566 | 3,216,022 | |||
Non-current Assets | 12 | ||||
Equipment and right-of-use assets | 134,971 | 261,752 | |||
Total Non-current Assets | 134,971 | 261,752 | |||
Total Assets | |||||
$ | 3,013,537 | $ | 3,477,774 | ||
Liabilities and Shareholders' Equity (Deficiency) | |||||
Current Liabilities | |||||
Accounts payables and accrued and other liabilities | 13(B)(i) | $ | 1,140,932 | $ | 559,846 |
Investment loss in associate | 14 | 63,775 | 63,775 | ||
Current portion of debt | 13(B)(ii) | 808,161 | 5,390,002 | ||
Total Current Liabilities | 2,012,868 | 6,013,623 | |||
Non-current Liabilities | 13(B)(ii) | ||||
Debt | 4,894,311 | 1,416,816 | |||
Total Non-current Liabilities | 4,894,311 | 1,416,816 | |||
Total Liabilities | |||||
6,907,179 | 7,430,439 | ||||
Shareholders' Equity (Deficiency) | 16 | ||||
Share capital | 34,052,315 | 31,823,290 | |||
Contributed surplus | 9, 17 | 4,352,656 | 4,697,051 | ||
Accumulated deficit | 2 | (42,298,613) | (40,473,006) | ||
Total Shareholders' Equity (Deficiency) | (3,893,642) | (3,952,665) | |||
Total Liabilities and Shareholders' Equity (Deficiency) | |||||
$ | 3,013,537 | $ | 3,477,774 | ||
Going Concern - Note 2 | |||||
Commitments and Contingencies- Note 2 |
Avivagen Inc. | Page 2 of 31 |
Unaudited Interim Statements of Total Comprehensive Loss For the three and six-month periods ended April 30, 2022 and April 30, 2021 (Expressed in Canadian dollars, except share amounts)
Note | 3 months ended | 3 months ended | 6 months ended | 6 months ended | |||||
April 30, 2022 | April 30, 2021 | April 30, 2022 | April 30, 2021 | ||||||
Revenues, net | 4 | $ | 88,438 | $ | 159,614 | $ | 359,595 | $ | 421,601 |
Cost of products sold | 10 | 60,836 | 98,812 | 207,264 | 257,694 | ||||
Gross margin | 27,602 | 60,802 | 152,331 | 163,907 | |||||
Salaries, board fees, and benefits | 10,12 | 402,068 | 398,491 | 789,396 | 787,806 | ||||
Professional fees, impairment, and other | 904,010 | 674,855 | 1,681,364 | 1,209,840 | |||||
Share-based payments | 9 | 27,831 | 123,817 | 72,516 | 171,067 | ||||
Government grants | 5 | (12,500) | (19,155) | (23,500) | (42,430) | ||||
Depreciation of equipment and right-of-use assets | 12 | 20,359 | 34,039 | 46,780 | 67,832 | ||||
Investment loss in associate | 14 | - | 25,000 | - | 40,000 | ||||
Total operating expenses before finance cost and income taxes | 1,341,768 | 1,237,047 | 2,566,556 | 2,234,115 | |||||
Total operating loss before finance cost and income taxes | |||||||||
(1,314,166) | (1,176,245) | (2,414,225) | (2,070,208) | ||||||
Finance cost, net | 6 | (10,489) | 1,021,404 | 442,304 | 1,393,741 | ||||
Total loss before income taxes | |||||||||
(1,303,677) | (2,197,649) | (2,856,529) | (3,463,949) | ||||||
Income taxes | 7 | ||||||||
Current and deferred income tax | - | - | - | - | |||||
Total comprehensive loss for the period | |||||||||
$ | (1,303,677) | $ | (2,197,649) | $ | (2,856,529) | $ | (3,463,949) | ||
Loss per share, basic and diluted | 8 | $ | (0.02) | $ | (0.04) | $ | (0.05) | $ | (0.07) |
Weighted average common shares issued and outstanding | 8 | ||||||||
basic and diluted | 59,464,727 | 54,146,953 | 58,184,275 | 47,853,980 |
Avivagen Inc.
Unaudited Interim Statements of Cash Flows
For the three and six-month periods ended April 30, 2022 and April 30, 2021 (Expressed in Canadian dollars)
Note | |
Cash Flows used in Operating Activities | |
Net loss | |
Items not affecting cash and non-cash adjustments: | 12 |
Depreciation of equipment and right-of-use asset | |
Share-based payments | 9 |
Government grants | 5 |
Finance cost, net of deposit interest | 6 |
Maintenance fees on long-term debt settled in equity | 14 |
Equity investment in associate | |
Net effect of foreign exchange rates on cash and cash equivalents | 15 |
Changes in operating working capital items, including impairment: | 13(A)(ii) |
Trade and other receivables | |
Inventories | 10 |
Prepaid expenses | 11 |
Accounts payable and accrued liabilities | 13(B)(i) |
Impairment of equipment | 12(ii) |
Impairment of inventories | 10 |
Net Cash Flows used in Operating Activities | |
Cash Flows from Investing Activities | |
Net Cash Flows from Investing Activities | |
Cash Flows from Financing Activities | |
Proceeds from the issuance of units | 16 |
Share issuance cost | |
Proceeds from the exercise of common share purchase warrants | 13(B)(ii) |
Proceeds from the issuance of debt | |
Proceeds from common shares issued with long-term debt | 13(B)(ii) |
Transaction fees on issuance of and warrants issued with long-term debt | 13(B)(ii) |
Repayment of interest and maintenance fees on debt | 13(B)(ii) |
Repayment of principal on debt | 13(B)(ii) |
Proceeds from government loans and grants | 5, 13(B)(ii) |
Payment of lease liabilities | 13(B)(ii) |
Net Cash Flows from Financing Activities | |
Increase in cash and cash equivalents during the period | 15 |
Net effect of foreign exchange rate changes on cash and cash equivalents | |
Cash and cash equivalents, beginning of period | 13(A)(i) |
Cash and cash equivalents, end of period | 13(A)(i) |
3 months ended | 3 months ended | 6 months ended | 6 months ended | |||||
April 30, 2022 | April 30, 2021 | April 30, 2022 | April 30, 2021 | |||||
$ | (1,303,677) | $ | (2,197,649) | $ | (2,856,529) | $ | (3,463,949) | |
20,359 | 34,039 | 46,780 | 67,832 | |||||
27,831 | 123,817 | 72,516 | 171,067 | |||||
- | (9,155) | (6,000) | (22,430) | |||||
(115,768) | 914,553 | 337,158 | 1,287,129 | |||||
105,280 | 107,560 | 105,280 | 107,560 | |||||
- | 22,952 | - | 37,952 | |||||
1,025 | (12,393) | 3,932 | 4,478 | |||||
(126,901) | (36,488) | 230,256 | 354,945 | |||||
65,567 | (683,333) | (138,293) | (522,817) | |||||
3,681 | (120,037) | (97,431) | (143,540) | |||||
295,517 | (109,495) | 581,086 | (185,406) | |||||
- | - | 80,000 | - | |||||
215,000 | - | 400,000 | - | |||||
(812,086) | (1,965,629) | (1,241,245) | (2,307,179) | |||||
- | - | - | - | |||||
- | - | - | - | |||||
1,663,000 | 7,500,000 | 1,663,000 | 7,500,000 | |||||
(189,324) | (667,671) | (189,324) | (732,671) | |||||
- | 7,400 | - | 7,400 | |||||
4,459,205 | - | 4,459,205 | 350,000 | |||||
1,218,795 | - | 1,218,795 | - | |||||
(216,729) | - | (216,729) | - | |||||
(83,693) | (161,908) | (219,248) | (297,463) | |||||
(5,378,000) | (860,391) | (5,378,000) | (860,391) | |||||
- | - | - | 20,000 | |||||
(12,804) | (93,313) | (35,446) | (93,313) | |||||
1,460,450 | 5,724,117 | 1,302,253 | 5,893,562 | |||||
648,364 | 3,758,488 | 61,008 | 3,586,383 | |||||
(1,025) | 12,393 | (3,932) | (4,478) | |||||
818,028 | 475,193 | 1,408,291 | 664,169 | |||||
$ | 1,465,367 | $ | 4,246,074 | $ | 1,465,367 | $ | 4,246,074 |
Avivagen Inc. | Page 4 of 31 |
Unaudited Interim Statements of Changes in Equity
For the three and six-month periods ended April 30, 2022 and April 30, 2021 (Expressed in Canadian dollars, except for shares outstanding)
Shares Outstanding | Share Capital | Contributed Surplus | Accumulated | Total Shareholders' | ||||||||||
Warrants | Stock Options | Total Contributed | Deficit | Equity (Deficiency) | ||||||||||
Note Reference | 16 | 16 | 17 | 9 | Surplus | |||||||||
Balance as at October 31, 2020 | 41,766,212 | $ | 26,555,348 | $ | 2,340,861 | $ | 1,472,877 | $ | 3,813,738 | $ | (35,136,696) | $ | (4,767,610) | |
Loss for the period | $ | (1,266,300) | $ | (1,266,300) | ||||||||||
Vesting of share-based payments | $ | 47,250 | $ | 47,250 | $ | 47,250 | ||||||||
Issuance cost of share capital | $ | (65,000) | $ | (65,000) | ||||||||||
Balance as at January 31, 2021 | 41,766,212 | $ | 26,490,348 | $ | 2,340,861 | $ | 1,520,127 | $ | 3,860,988 | $ | (36,402,996) | $ | (6,051,660) | |
Loss for the period | $ | (2,197,649) | $ | (2,197,649) | ||||||||||
Vesting of share-based payments | $ | 123,817 | $ | 123,817 | $ | 123,817 | ||||||||
Maintenance fees on debt settled with common shares | 178,483 | $ | 107,560 | $ | 107,560 | |||||||||
Common shares issued in financing | 15,000,000 | $ | 7,500,000 | $ | 7,500,000 | |||||||||
Investor warrants issued in financing | $ | (1,485,420) | $ | 1,485,420 | $ | 1,485,420 | $ | - | ||||||
Agent warrants issued in financing | $ | (277,031) | $ | 277,031 | $ | 277,031 | $ | - | ||||||
Issuance cost of share capital | $ | (522,561) | $ | (145,110) | $ | (145,110) | $ | (667,671) | ||||||
Warrants exercised in the period | 14,800 | $ | 10,394 | $ | (2,994) | $ | (2,994) | $ | 7,400 | |||||
Warrants expired in the period | $ | (293,664) | $ | (293,664) | $ | 293,664 | $ | - | ||||||
Options expired in the period | $ | (17,196) | $ | (17,196) | $ | 17,196 | $ | - | ||||||
Balance as at April 30, 2021 | 56,959,495 | $ | 31,823,290 | $ | 3,661,544 | $ | 1,626,748 | $ | 5,288,292 | $ | (38,289,785) | $ | (1,178,203) | |
Loss for the period | $ | (1,503,665) | $ | (1,503,665) | ||||||||||
Vesting of share-based payments | $ | 90,095 | $ | 90,095 | $ | 90,095 | ||||||||
Warrants expired in the period | $ | (619,533) | $ | (619,533) | $ | 619,533 | $ | - | ||||||
Options expired in the period | $ | (127,456) | $ | (127,456) | $ | 127,456 | $ | - | ||||||
Balance as at July 31, 2021 | 56,959,495 | $ | 31,823,290 | $ | 3,042,011 | $ | 1,589,387 | $ | 4,631,398 | $ | (39,046,461) | $ | (2,591,773) | |
Loss for the period | $ | (1,426,545) | $ | (1,426,545) | ||||||||||
Vesting of share-based payments | $ | 65,653 | $ | 65,653 | $ | 65,653 | ||||||||
Balance as at October 31, 2021 | 56,959,495 | $ | 31,823,290 | $ | 3,042,011 | $ | 1,655,040 | $ | 4,697,051 | $ | (40,473,006) | $ | (3,952,665) | |
Loss for the period | $ | (1,552,852) | $ | (1,552,852) | ||||||||||
Vesting of share-based payments | $ | 44,685 | $ | 44,685 | $ | 44,685 | ||||||||
Warrants expired in the period | $ | (894,188) | $ | (894,188) | $ | 894,188 | $ | - | ||||||
Balance as at January 31, 2022 | 56,959,495 | $ | 31,823,290 | $ | 2,147,823 | $ | 1,699,725 | $ | 3,847,548 | $ | (41,131,670) | $ | (5,460,832) | |
Loss for the period | $ | (1,303,677) | $ | (1,303,677) | ||||||||||
Maintenance fees on debt settled with common shares | 498,680 | $ | 105,280 | $ | 105,280 | |||||||||
Common shares issued with debentures | 5,678,000 | $ | 1,218,795 | $ | 1,218,795 | |||||||||
Issuance cost of common shares issued with debentures | $ | (59,237) | $ | (59,237) | ||||||||||
Equity portion of agent warrants issued with debentures | $ | (12,377) | $ | 57,662 | $ | 57,662 | $ | 45,285 | ||||||
Common shares issued in financing | 8,315,000 | $ | 1,663,000 | $ | 1,663,000 | |||||||||
Investor warrants issued in financing | $ | (572,508) | $ | 572,508 | $ | 572,508 | ||||||||
Agent warrants issued in financing | $ | (28,625) | $ | 28,625 | $ | 28,625 | ||||||||
Issuance cost of share capital | $ | (85,303) | $ | (44,784) | $ | (44,784) | $ | (130,087) | ||||||
Vesting of share-based payments | $ | 27,831 | $ | 27,831 | $ | 27,831 | ||||||||
Options expired in the period | $ | (136,734) | $ | (136,734) | $ | 136,734 | ||||||||
Balance as at April 30, 2022 | 71,451,175 | $ | 34,052,315 | $ | 2,761,834 | $ | 1,590,822 | $ | 4,352,656 | $ | (42,298,613) | $ | (3,893,642) | |
Avivagen Inc. | Page 5 of 31 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Avivagen Inc. published this content on 17 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 June 2022 12:52:02 UTC.
