CANNTAB THERAPEUTICS LIMITED CANNTAB THERAPEUTICS LIMITED
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED NOVEMBER 30, 2021 AND 2020
(Stated in $CAD)
(Unaudited - Prepared by Management)
NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS
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 external auditor has not performed a review of these financial statements in accordance with standards established by CPA Canada for a review of interim financial statements by an entity's auditor.
CANNTAB THERAPEUTICS LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT NOVEMBER 30, 2021 AND MAY 31, 2021
(Stated in $CAD)
(Unaudited - Prepared by Management)
November 30 | May 31 | ||||||
ASSETS | 2021 | 2021 | |||||
Current: | $ | 331,746 | |||||
Cash and cash equivalents (Note 5) | $ | 1,490,863 | |||||
Accounts receivable | (Note 6) | 58,316 | 207,363 | ||||
Inventories (Note 7) | 1,347,052 | 1,720,646 | |||||
Prepaid expenses and deposits | 68,151 | 95,945 | |||||
Long term: | 1,805,265 | 3,514,817 | |||||
1,769,467 | |||||||
Plant and equipment | 2,065,988 | ||||||
Right-of-use assets | 398,075 | 490,932 | |||||
Intangible assets | 297,637 | 289,107 | |||||
$ | 4,270,444 | $ | 6,360,844 | ||||
LIABILITIES | |||||||
Current: | $ | 60,000 | |||||
Bank loan payable | $ | 60,000 | |||||
Accounts payable and accrued liabilities | (Note 8) | 858,999 | 1,421,108 | ||||
Current portion of lease liabilities | 193,272 | 183,884 | |||||
Long term: | 1,112,271 | 1,664,992 | |||||
254,955 | |||||||
Lease liabilities | 353,997 | ||||||
Debentures payable | (Note 9) | 1,113,998 | 968,032 | ||||
Derivative liabilities | (Note 9) | 838,491 | 1,105,065 | ||||
SHAREHOLDERS' EQUITY | 3,319,715 | 4,092,086 | |||||
12,667,140 | |||||||
Common shares (Note 10) | 11,606,235 | ||||||
Shares to be issued (Note 10(a)) | - | 813,750 | |||||
Contributed surplus | 3,120,413 | 2,859,042 | |||||
Accumulated deficit | (14,836,824) | (13,010,269) | |||||
950,729 | 2,268,758 | ||||||
$ | 4,270,444 | $ | 6,360,844 |
Going concern (Note 2(c)
Subsequent events (Note 15)
The accompanying notes form an integral part of these unaudited interim condensed consolidated financial statements
Approved on behalf of the Board:
"Richard Goldstein"Director | "Vitor Fonseca"Director |
Page 1 of 19
CANNTAB THERAPEUTICS LIMITED
INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF NET LOSS AND
COMPREHENSIVE LOSS
THREE AND SIX MONTHS ENDED NOVEMBER 30, 2021 AND 2020
(Stated in $CAD)
(Unaudited - Prepared by Management)
Three months | Six months | Three months | Six months | ||||||||||
ended | ended | ended | ended | ||||||||||
November 30 | November 30 | November 30 | November 30 | ||||||||||
Revenue | 2021 | 2021 | 2020 | 2020 | |||||||||
$ | 170,850 | $ | 205,361 | ||||||||||
Tablet sales | $ | 378,000 | $ | 378,000 | |||||||||
Cost of sales | 81,600 | 104,640 | |||||||||||
Change in fair value of inventory sold | 286,356 | 286,356 | |||||||||||
Gross profit | 89,250 | 100,721 | 91,644 | 91,644 | |||||||||
Expenses | 283,401 | 591,098 | |||||||||||
Employee compensation and benefits | 209,679 | 371,879 | |||||||||||
Professional and consulting fees | 103,794 | 425,239 | 189,483 | 455,146 | |||||||||
Marketing and regulatory expenses | 76,277 | 133,561 | 38,531 | 84,394 | |||||||||
General and administrative | 59,484 | 116,994 | 44,153 | 80,515 | |||||||||
Research and development | 34,573 | 64,147 | 54,215 | 69,513 | |||||||||
Share based compensation | 252,598 | 276,777 | 72,324 | 356,274 | |||||||||
Interest and accretion | 127,482 | 248,972 | 8,849 | 16,233 | |||||||||
Depreciation of plant and equipment | 111,836 | 321,726 | |||||||||||
and right-of-use assets | 77,064 | 153,197 | |||||||||||
Amortization of intangible assets | 7,983 | 15,336 | 7,115 | 15,254 | |||||||||
1,057,428 | 2,193,850 | 701,413 | 1,602,405 | ||||||||||
Loss from operations | (968,178) | (2,093,129) | (609,769) | (1,510,761) | |||||||||
Other expenses/(income) | |||||||||||||
(Gain) loss on derivative liabilities | 254,559 | (266,574) | |||||||||||
(Note 9) | - | - | |||||||||||
Net loss and comprehensive loss | $ | (1,222,737) | $ | (1,826,555) | $ | (609,769) | $ | (1,510,761) | |||||
Basic and diluted loss per share (Note | $ | (0.03) | $ | (0.05) | |||||||||
10(c)) | $ | (0.02) | $ | (0.05) |
The accompanying notes form an integral part of these unaudited interim condensed consolidated financial statements
Page 2 of 19
CANNTAB THERAPEUTICS LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
PERIOD FROM JUNE 1, 2020 TO NOVEMBER 30, 2021
(Stated in $CAD)
(Unaudited - Prepared by Management)
Common shares | Shares to | Contributed | Accumulated | ||||||||||||||
Note | Number | Amount | be issued | surplus | deficit | Total | |||||||||||
As at June 1, 2020 | 32,757,601 | $ | 9,843,783 | $ | - | $ | 2,275,446 | $ | (8,590,487) | $ | 3,528,742 | ||||||
Net loss and comprehensive loss | - | - | - | - | (1,510,761) | (1,510,761) | |||||||||||
Share based compensation | - | - | - | 356,274 | - | 356,274 | |||||||||||
Exercise of broker warrants | 10(a) | 109,523 | 83,216 | - | (28,455) | - | 54,761 | ||||||||||
Shares issued on equipment purchases | 10(a) | 2,584,313 | 1,318,000 | - | - | - | 1,318,000 | ||||||||||
As at November 30, 2020 | 35,451,437 | 11,244,999 | - | 2,603,265 | (10,101,248) | 3,747,016 | |||||||||||
Net loss and comprehensive loss | - | - | - | - | (2,909,021) | (2,909,021) | |||||||||||
Share based compensation | - | - | - | 276,500 | - | 276,500 | |||||||||||
Exercise of broker warrants | 7,000 | 3,500 | - | - | - | 3,500 | |||||||||||
Exercise of stock options | 100,000 | 69,978 | - | (44,978) | - | 25,000 | |||||||||||
Exercise of share purchase warrants | 380,000 | 287,758 | - | (2,758) | - | 285,000 | |||||||||||
Proceeds on shares to be issued | - | - | 813,750 | - | - | 813,750 | |||||||||||
Issuance of broker warrants in connection with debenture offering | - | - | - | 27,013 | - | 27,013 | |||||||||||
As at May 31, 2021 | 35,938,437 | 11,606,235 | 813,750 | 2,859,042 | (13,010,269) | 2,268,758 | |||||||||||
Net loss and comprehensive loss | - | - | - | - | (1,826,555) | (1,826,555) | |||||||||||
Share based compensation | - | - | - | 276,777 | - | 276,777 | |||||||||||
Exercise of share purchase warrants | 10(a) | 1,384,000 | 1,048,045 | (813,750) | (10,044) | - | 224,251 | ||||||||||
Exercise of special warrants | 10(a) | 12,500 | 12,860 | - | (5,360) | - | 7,500 | ||||||||||
As at November 30, 2021 | 37,334,937 | $ | 12,667,140 | $ | - | $ | 3,120,415 | $ | (14,836,824) | $ | 950,731 |
The accompanying notes form an integral part of these unaudited interim condensed consolidated financial statements
Page 3 of 19
CANNTAB THERAPEUTICS LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED NOVEMBER 30, 2021 AND 2020
(Stated in $CAD)
(Unaudited - Prepared by Management)
Operating activities | 2021 | 2020 | |||||
Net loss and comprehensive loss | $ | (1,826,555) | $ | (1,510,761) | |||
Add (deduct) items not affecting cash: | 276,777 | ||||||
Share based compensation | 356,274 | ||||||
Depreciation of plant and equipment and right-of-use assets | 321,726 | 153,197 | |||||
Amortization of intangible assets | 15,336 | 15,254 | |||||
Interest accretion on debentures | 145,966 | - | |||||
(Gain) loss on derivative liabilities | (266,574) | - | |||||
Change in non-cash working capital items | (1,333,324) | (986,036) | |||||
149,047 | |||||||
Accounts receivable | (425,691) | ||||||
Inventories | 16,121 | (149,743) | |||||
Prepaid expenses and deposits | 27,794 | 83,649 | |||||
Accounts payable and accrued liabilities | (166,554) | (33,748) | |||||
Investing activities | (1,306,916) | (1,511,569) | |||||
(30,431) | |||||||
Purchase of plant and equipment | (128,979) | ||||||
Purchase of intangible assets | (23,866) | (53,875) | |||||
Financing activities | (54,297) | (182,854) | |||||
224,250 | |||||||
Proceeds on exercise of share purchase warrants | - | ||||||
Proceeds on exercise of special warrants | 7,500 | - | |||||
Repayment of lease liabilities | (29,654) | (53,240) | |||||
Proceeds on exercise of broker compensation warrants | - | 54,761 | |||||
202,096 | 1,521 | ||||||
Change in cash and cash equivalents | (1,159,117) | (1,692,902) | |||||
Cash and cash equivalents, beginning of period | 1,490,863 | 2,090,438 | |||||
Cash and cash equivalents, end of period | $ | 331,746 | $ | 397,536 | |||
Non-cash transactions: | $ | - | |||||
Shares issued on asset purchases (Note 10(a)) | $ | 1,318,000 | |||||
Depreciation capitalized into inventory | 98,082 | 95,477 | |||||
Inventory pricing settlement with MediPharm | (Note 4(e)) | 456,440 | - | ||||
Prepaid rent deposit applied against lease liabilities | - | 10,000 | |||||
$ | 554,522 | $ | 1,423,477 |
The accompanying notes form an integral part of these unaudited interim condensed consolidated financial statements
Page 4 of 19
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Canntab Therapeutics Ltd. published this content on 01 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 February 2022 05:31:01 UTC.
