Friday Dog : Q1 ended March 31, 2022

FRIDAY'S DOG HOLDINGS INC.

(Formerly Cerro Mining Corp.)

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021

(EXPRESSED IN CANADIAN DOLLARS - UNAUDITED - PREPARED BY MANAGEMENT)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

In accordance with National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that an auditor has not reviewed the financial statements.

The accompanying unaudited condensed interim 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 the standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor.

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FRIDAY'S DOG HOLDINGS INC. (Formerly Cerro Mining Corp.)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in Canadian Dollars - Unaudited - Prepared by Management)

	Note	March 31, 2022	December 31, 2021
		$	$
ASSETS
Current
Cash		9,343,452	1,154,872
Receivable		77,056	28,297
Marketable securities	5	1,430	-
Deposit	6	1,573,071	1,092,007
Prepaid expenses		81,598	25,242
		11,076,607	2,300,418
Property and equipment	7	15,985	16,826
		11,092,592	2,317,244
LIABILITIES
Current
Accounts payable and accrued liabilities	8	589,526	325,355
Convertible debentures, net	9	-	5,484,255
Derivative liabilities	9	-	251,484
		589,526	6,061,094
SHAREHOLDERS' DEFICIENCY
Share capital	10	33,123,636	2,838,261
Reserves	10	167,200	167,200
Deficit		(22,787,770)	(6,749,311)
		10,503,066	(3,743,850)
		11,092,592	2,317,244
Nature of Operations and Going Concern (Note 1)

Approved on behalf of the Board of Directors on June 3, 2022:

"Arthur Kwan"

Director

"Ali Sodagar"

Director

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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FRIDAY'S DOG HOLDINGS INC. (Formerly Cerro Mining Corp.)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND

COMPREHENSIVE LOSS

(Expressed in Canadian Dollars - Unaudited - Prepared by Management)

For the three months ended

		March 31,
	Note	2022	2021
		$	$
Expenses
Accretion expenses	9	1,165,093	-
Consulting fees	10, 11	224,776	149,380
Depreciation	7	841	-
Filing fees		3,612	-
Foreign exchange loss		5,624	4,042
General and administration expenses		45,913	2,286
Interest expenses	9	76,142	-
Marketing		309,069	216,946
Product development		158,166	36,874
Professional fees		113,917	150,777
Travel and related		8,262	-
		(2,111,415)	(560,305)
Other income and loss
Gain on revaluation of derivative liabilities	9	251,484	-
Net change in marketable securities	5	(33)	-
Interest income		3,699	-
Listing expenses	4	(14,182,194)	-
Misappropriation of assets	15	-	(317,048)
		(13,927,044)	(317,048)
Net and comprehensive loss for the period		(16,038,459)	(877,353)
Basic and diluted loss per share		(0.31)	(0.04)
Weighted average number of common shares
outstanding		52,220,482	23,882,751

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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FRIDAY'S DOG HOLDINGS INC. (Formerly Cerro Mining Corp.)

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in Canadian Dollars - Unaudited - Prepared by Management)

	For the three months ended
	March 31,
	2022	2021
	$	$
Cash flows used in operating activities
Net loss for the period	(16,038,459)	(877,353)
Items not involving cash
Accretion of discount on convertible debentures	1,165,093	-
Accrued Interest	76,142	-
Depreciation	841	-
Listing expenses	14,182,194	-
Revaluation of derivative liability	(251,484)	-
Advisory warrant included in consulting fees	-	1,948
Net change in marketable securities	33	-
	(865,640)	(875,405)
Changes in non-cash working capital items
Receivable	(23,586)	(7,011)
Deposits	(481,064)	-
Prepaid expenses	(56,356)	(64,306)
Accounts payable	5,190	41,916
	(1,421,456)	(904,806)

Cash flows used in investing activities

Cash acquired from acquisition

Cash flows from financing activities Proceeds from share issuance Share issuance costs Subscriptions received in advance

Net change in cash

Cash, beginning of period

Cash, end of period

547,116	-
547,116	-

9,276,000-

(213,080)-

• 1,780,000
  9,062,9201,780,000

8,188,580875,194

1,154,87215,317

9,343,452890,511

Non-cash transactions
Shares issued for the RTO with Cerro	13,621,965	-
Shares issued for finder fees	875,000	-

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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