BEVCANNA ENTERPRISES INC. BEVCANNA ENTERPRISES INC.
Condensed Interim Consolidated Financial Statements
(unaudited)
For the nine months ended September 30, 2021 and 2020
(Expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
Under National Instrument 51-102 "Continuous Disclosure Obligations", if an auditor has not performed a review of the interim financial statements, the financial statements must be accompanied by a notice indicating that they have not been reviewed by an auditor.
The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by CPA (Chartered Professional Accountants) Canada for a review of interim financial statements by an entity's auditor.
November 29, 2021
BevCanna Enterprises Inc.
Condensed Interim Consolidated Statements of Financial Position (unaudited) (Expressed in Canadian dollars)
September 30, | December 31, | ||
Notes | 2021 | 2020 | |
ASSETS | $ | $ | |
Current | |||
Cash | 655,563 | 1,034,539 | |
Amounts receivable | 3 | 978,760 | 429,547 |
Inventory | 4 | 752,542 | - |
Marketable securities | 5 | 191,482 | - |
Prepaid expenses and deposits | 6 | 3,097,114 | 944,423 |
Due from related parties | 16 | 1,437,374 | - |
7,112,835 | 2,408,509 | ||
Note receivable | 7 | 127,493 | - |
Property and equipment | 8 | 17,363,523 | 5,693,361 |
Right of use asset | 9 | 7,824 | - |
Licence agreement | 10 | - | 9,234,223 |
Intangible assets | 11 | 22,194,134 | 3,788,831 |
Goodwill | 11,12 | 36,766,344 | 3,209,198 |
83,572,153 | 24,334,122 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Liabilities | |||
Current | |||
Trade payable and accrued liabilities | 13 | 2,755,307 | 1,732,761 |
Deferred revenue | 21,948 | - | |
Due to related parties | 16 | 64,319 | 66,342 |
Contingent liability | 24 | 125,000 | - |
Promissory note | 15 | 2,384,082 | - |
Non-Current | 5,350,656 | 1,799,103 | |
Convertible debentures | 17 | 426,449 | 510,090 |
CEBA loan | 18 | 97,625 | 24,787 |
Lease obligation | 14 | 8,098 | - |
Deferred income tax liability | 11 | 3,931,378 | - |
Shareholders' equity | 4,463,550 | 534,877 | |
Share capital | 19 | 93,812,618 | 44,834,949 |
Common shares held in treasury | (312,500) | - | |
Obligation to issue shares | 19 | 1,000,000 | 2,046,500 |
Reserve | 19,20,21 | 24,607,686 | 6,524,418 |
Accumulated other comprehensive income | (5,129) | 3,374 | |
Deficit | (45,310,368) | (31,409,099) | |
Non-controlling interest | (34,360) | - | |
73,757,947 | 22,000,142 | ||
83,572,153 | 24,334,122 | ||
Nature of operations and going concern (Note 1) |
Commitments and contingencies (Note 24)
Subsequent events (Notes 21 & 26)
Approved and authorized for issue on behalf of the Board of Directors on November 29, 2021
"Marcello Leone" | "John Campbell" | |
Director, Marcello Leone | Director, John Campbell |
The accompanying notes are an integral part of these condensed interim consolidated financial statements
3
BevCanna Enterprises Inc.
Condensed Interim Consolidated Statements of Comprehensive Loss (unaudited) (Expressed in Canadian dollars)
Three months ended | Nine months ended | ||||
September 30, | September 30, | ||||
Notes | 2021 | 2020 | 2021 | 2020 | |
Revenue | $ | $ | $ | $ | |
1,101,347 | 94,010 | 2,237,880 | 94,010 | ||
Cost of revenue | (745,179) | 134,290 | (1,818,790) | 134,290 | |
Gross profit (loss) | 356,168 | (40,280) | 419,090 | (40,280) | |
Administration expenses | |||||
Amortization | 8,9,10,11 | 606,345 | 314,311 | 1,881,955 | 942,899 |
Filing, listing and compliance | 76,341 | 13,786 | 146,976 | 38,196 | |
Investors relations | 352,165 | 679,244 | 1,694,445 | 720,437 | |
Marketing | 296,464 | 23,292 | 1,130,993 | 120,392 | |
Management fee | 16 | 135,000 | 60,000 | 405,000 | 195,500 |
Legal fee | 135,591 | 151,059 | 382,491 | 419,242 | |
Plant operations, facilities and office | 267,603 | 18,037 | 657,781 | 48,409 | |
Professional and consulting fee | 867,384 | (144,380) | 3,146,244 | 652,505 | |
Rent | 7,000 | - | 17,500 | 57,788 | |
Research and development (recovery) | (23,859) | 706 | (3,618) | 165,698 | |
Salaries | 232,256 | 53,712 | 596,514 | 236,572 | |
Share-based payments | 16,20 | 288,475 | 671,265 | 387,800 | 1,644,095 |
Travel | 2,968 | 1,771 | 6,321 | 16,963 | |
Other expenses (income): | 3,243,733 | 1,842,803 | 10,450,402 | 5,258,696 | |
Accretion expense | 17,18 | 8,725 | - | 32,281 | - |
Finance cost | 566,115 | 14,595 | 691,251 | 40,591 | |
Foreign exchange loss (gain) | 7,013 | (3,851) | 1,567 | 689 | |
Loss (gain) on marketable securities | 5 | 192,484 | 20,887 | 394,233 | 106,704 |
Loss on acquisition | 11 | - | - | - | 207,353 |
Loss (gain) on debt settlement | 19 | (130,104) | 9,413 | (213,983) | (170,446) |
Government grant | - | - | (11,574) | - | |
Gain on disposal of assets | - | - | (228) | - | |
644,233 | (59,604) | 893,547 | 184,891 | ||
Net loss for the period | (3,531,798) | (1,823,479) | (10,924,859) | (5,483,867) | |
Other comprehensive income | |||||
Item that may be reclassified | |||||
subsequently to income or loss: | |||||
Exchange differences on the | |||||
translation of foreign operation | 4,875 | - | (8,503) | - | |
Comprehensive loss | (3,526,923) | (1,823,479) | (10,933,362) | (5,483,867) | |
Total comprehensive loss attributable to: | |||||
Shareholders of BevCanna | (3,513,638) | (1,823,479) | (10,899,002) | (5,483,867) | |
Non-controlling interest | (13,285) | - | (34,360) | - | |
Loss per share (basic and diluted) | (0.02) | (0.03) | (0.07) | (0.08) | |
Weighted average number of shares | |||||
outstanding (basic and diluted) | 175,695,414 | 63,442,805 | 163,060,119 | 69,496,557 | |
The accompanying notes are an integral part of these condensed interim consolidated financial statements
4
BevCanna Enterprises Inc.
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (unaudited) (Expressed in Canadian dollars)
Accumulated | |||||||||
Common | other | Non- | |||||||
shares held | Obligation to | comprehensive | controlling | ||||||
Common shares | in treasury | Reserve | issue shares | income | Deficit | interest | Total | ||
Number of | |||||||||
shares | Amount ($) | $ | $ | $ | $ | $ | $ | $ | |
Balance, December 31, 2019 | 47,914,886 | 24,751,580 | (300,858) | 5,220,238 | 1,000,000 | - | (17,164,267) | - | 13,506,693 |
Shares issued for cash | 1,638,914 | 473,700 | - | - | (225,000) | - | - | - | 248,700 |
Shares issued for services | 1,000,000 | 460,000 | - | - | - | - | - | - | 460,000 |
Shares issued for debt settlement | 8,084,374 | 2,890,866 | - | - | - | - | - | - | 2,890,866 |
Shares issued for acquisition | 40,941,176 | 11,472,353 | - | - | - | - | - | - | 11,472,353 |
Share issuance costs | - | (42,964) | - | - | - | - | - | - | (42,964) |
Shares issued for options exercised | 453,000 | 161,225 | - | (11,735) | - | - | - | - | 149,490 |
Share-based payments | - | - | - | 547,596 | - | - | - | - | 547,596 |
Shares transferred for debt settlement | - | - | 300,858 | - | - | - | - | - | 300,858 |
Funds received for private placement | - | - | - | - | 340,500 | - | - | - | 340,500 |
Net loss | - | - | - | - | - | - | (3,660,388) | - | (3,660,388) |
Balance, September 30, 2020 | 100,032,350 | 40,166,760 | - | 5,756,099 | 1,115,500 | - | (22,648,134) | - | 24,390,225 |
Balance, December 31, 2020 | 110,467,627 | 44,834,949 | - | 6,524,418 | 2,046,500 | 3,374 | (31,409,099) | - | 22,000,142 |
Shares issued for cash | 2,433,333 | 2,596,666 | - | 1,003,333 | (696,250) | - | - | - | 2,903,750 |
Shares issued for debt settlement | 2,608,175 | 1,321,352 | - | - | - | - | - | - | 1,321,352 |
Shares issued for services | 121,127 | 105,750 | - | - | - | - | - | - | 105,750 |
Shares issued for options exercised | 8,324,000 | 5,639,574 | - | (2,148,074) | (350,250) | - | - | - | 3,141,250 |
Shares issued for warrants exercised | 3,085,500 | 2,897,250 | - | (1,510,500) | - | - | - | - | 1,386,750 |
Conversion of convertible debt | 20,000 | 18,754 | - | (3,754) | - | - | - | - | 15,000 |
Shares issued for acquisitions | 50,000,000 | 36,398,323 | (4,497,570) | 20,429,335 | - | - | - | - | 52,330,088 |
Share-based payments | - | - | - | 387,800 | - | - | - | - | 387,800 |
Convertible debt early repurchase | - | - | - | (74,872) | - | - | - | - | (74,872) |
Shares acquired from treasury | - | - | 4,497,570 | - | - | - | (3,010,770) | - | 1,486,800 |
Reacquired common shares | - | - | (312,500) | - | - | - | - | - | (312,500) |
Translation difference | - | - | - | - | - | (9,141) | - | - | (9,141) |
Net loss | - | - | - | - | - | - | (10,890,499) | (34,360) | (10,924,859) |
Balance, September 30, 2021 | 177,059,762 | 93,812,618 | (312,500) | 24,607,686 | 1,000,000 | (5,767) | (45,310,368) | (34,360) | 73,757,947 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements
5
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Bevcanna Enterprises Inc. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 18:30:03 UTC.
