Cielo Waste : October 31 2021 Financial Statements (Q2/22)

CIELO WASTE SOLUTIONS CORP.

Unaudited Condensed Consolidated Interim Financial Statements

For the three and six months ended October 31, 2021 and 2020

Cielo Waste Solutions Corp.

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Cielo Waste Solutions Corp.

Unaudited Condensed Consolidated Statements of Financial Position

(In Canadian Dollars)	Note	October 31, 2021	April 30, 2021
Assets
Current Assets
Cash		7,303,010	17,176,212
Accounts receivable		517,566	530,460
Prepaid expenses		900,425	376,500
Inventory		564,417	342,225
Current Assets		9,285,418	18,425,397
Non-current Assets
Property, plant and equipment	6	43,862,494	26,623,622
Right-of-use assets	5	505,623	143,236
		44,368,117	26,766,858
Total Assets		53,653,535	45,192,255
Liabilities
Current Liabilities
Accounts payable and accrued liabilities		2,472,486	4,134,553
Deferred revenue and fees		3,750,000	3,750,000
Short-term warrant liability	9	-	10,169,563
Current portion of lease liability		145,634	59,307
Short-term loans	7	11,076,631	-
Current portion of long-term loans	7	-	1,000,000
Current Liabilities		17,444,751	19,113,423
Non-current Liabilities
Royalty payable		889,219	889,219
Lease liability	5	415,562	120,757
Long-term loans	7	60,000	60,000
Convertible debentures	8	-	503,585
Total non-current liabilities		1,364,781	1,573,561
Total Liabilities		18,809,532	20,686,984
Shareholders' Equity
Share capital	9	97,736,856	79,672,607
Contributed surplus	9	3,433,010	3,278,486
Deficit		(66,325,863)	(58,445,822)
Total Shareholders' Equity		34,844,003	24,505,271
Total Liabilities and Shareholders' Equity		53,653,535	45,192,255

Going Concern (Note 3), Commitments (Note 13), and Subsequent Events (Notes 7, 11)

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

Cielo Waste Solutions Corp.

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Cielo Waste Solutions Corp.

Unaudited Condensed Consolidated Statements of Loss and Comprehensive Loss

			Three months ended October 31,	Six months ended October 31,
					2020				2020
					Restated				Restated
(In Canadian Dollars)	Note		2021		(Note 14)		2021		(Note 14)
Incidental sales			-		-		-		4,200
Cost of sales			-		-		-		(4,200)
Gross profit			-		-		-		-
Expenses and other income
Financing costs	10		851,437		1,155,108		973,050		1,343,916
General and administrative			1,653,244		467,070		3,209,732		1,006,637
Research and development			2,108,547		359,509		3,790,827		502,569
Share based compensation	9		95,465		55,926		190,930		258,094
Depreciation and amortization			102,168		46,155		159,878		92,123
(Gain) on settlement of debt with			(5,618)		-		(5,618)		-
shares & other
Fair value change of warrant	9		-		877,519		(492,378)		1,034,161
liability
Other (income) expenses			35,992		(32,403)		53,620		(32,403)
Loss before income taxes			(4,841,235)		(2,928,884)		(7,880,041)		(4,205,097)
Income taxes			-		-		-		-
Net and comprehensive loss			(4,841,235)		(2,928,884)		(7,880,041)		(4,205,097)
Loss per share
Basic			(0.01)		(0.01)		(0.01)		(0.02)
Diluted			(0.01)		(0.01)		(0.01)		(0.02)

Restatement of comparative periods (Note 14)

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

Cielo Waste Solutions Corp.

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Cielo Waste Solutions Corp.

Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity

				Total
		Contributed		Shareholders'
(In Canadian Dollars)	Share Capital	Surplus	Deficit	Equity
Balance, April 30, 2020 (Restated - Note 14)	20,941,031	3,725,559	(18,736,848)	5,929,742
Shares issued on debt conversion	1,849,250	476,342	-	2,325,592
Shares issued on prepaid interest and	1,256,758	1,227,053	-	2,483,811
warrants on convertible debenture issuance
Shares issued for debt settlement	498,865	79,720	-	578,585
Fair value of finders' warrants	-	122,115	-	122,115
Restricted Share Unit vesting	-	111,852	-	111,852
Share issuance costs	-	(6,626)	-	(6,626)
Share based compensation	-	146,242	-	146,242
Net loss for the period	-	-	(4,205,097)	(4,205,097)
Balance, October 31, 2020	24,545,904	5,882,257	(22,941,945)	7,486,216
Balance, April 30, 2021	79,672,607	3,278,486	(58,445,822)	24,505,271
Shares issued on debt conversion	4,709,500	-	-	4,709,500
Shares issued for warrant exercise	13,323,085	(1,220,687)	-	12,102,398
Shares issued for option exercise	66,296	(21,796)	-	44,500
Share based compensation	-	190,930	-	190,930
Share issuance costs	(34,632)	-	-	(34,632)
Fair value of bonus warrants issued	-	1,206,077	-	1,206,077
Net loss for the period	-	-	(7,880,041)	(7,880,041)
Balance, October 31, 2021	97,736,856	3,433,010	(66,325,863)	34,844,003

Share Capital (Note 9)

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

Cielo Waste Solutions Corp.

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Cielo Waste Solutions Corp.

Unaudited Condensed Consolidated Statements of Cash Flows

			Three months ended		Six months ended
			October 31,		October 31,
					2020					2020
	Note		2021		Restated		2021			Restated
(In Canadian Dollars)			(Note 14)				(Note 14)
Cash (used in) provided by operating activities:
Net loss			(4,841,235)		(2,928,884)		(7,880,041)			(4,205,097)
Adjustments for:
Depreciation and amortization			102,168		46,155		159,878			92,123
(Gain) on settlement of debts with shares & other			(5,618)		-		(5,618)			-
Share based compensation	9		95,465		-		190,930			146,242
Restricted Share Units vesting			-		55,926		-			111,852
Fair value change of warrant liability	9		-		877,519		(492,378)			1,034,161
Other (gain) loss			113,862		-		113,862			-
Financing costs	10		851,436		1,155,108		973,050			1,343,916
Changes in non-cash working capital:
GST and other receivables			200,095		(44,357)		12,894			(76,209)
Prepaids & deposits			(798,621)		411,017		(641,209)			568,077
Inventory			(121,904)		(14,981)		(323,655)			(11,744)
Deferred revenues & deposits			-		-		-			1,000,000
Accounts payable and accrued liabilities			(2,105,129)		(393,966)		(2,492,155)			(1,475,941)
Cash used in operating activities			(6,509,481)		(836,463)		(10,384,442)			(1,472,620)
Cash (used in) provided by financing activities:
Lease liability			(26,784)		(13,977)		(51,989)			(27,860)
Short-term loans			12,000,000		-		12,000,000			-
Payments on long-term loans			(1,000,000)		-		(1,000,000)			(329)
Interest expense			(183,575)		(309,703)		(201,075)			(494,730)
Financing costs			(622,516)		(193,583)		(622,516)			(310,082)
Convertible debentures issued for cash			1,000,000		2,293,000		4,000,000			3,893,142
Share issuance for warrant exercise	9		506,250		-		2,425,213			-
Share issuance for option exercise	9		-		-		44,500			-
Share issuance costs	9		(30,000)		(4,632)		(34,632)			(6,626)
Shares issuance for debt			-		672,152		-			578,585
Cash provided by financing activities			11,643,375		2,443,257		16,559,501			3,632,100
Cash (used in) investing activities:
Additions of property plant and equipment	6		(12,975,619)		(1,241,732)		(16,873,349)			(2,119,879)
Changes in non-cash working capital:
Prepaids & deposits			(5,000)		104,901		(5,000)			108,244
Accounts payable and accrued liabilities			1,044,155		(208,745)		830,088			154,411
Cash used in investing activities			(11,936,464)		(1,345,577)		(16,048,261)			(1,857,224)
Increase (decrease) in cash			(6,802,570)		261,218		(9,873,202)			302,256
Cash and cash equivalents, beginning of period			14,105,580		122,643		17,176,212			81,605
Cash and cash equivalents, end of period			7,303,010		383,861		7,303,010			383,861
Supplemental items:
Cash interest paid			183,575		5,832		201,075			105,951
Restatement of comparative periods (Note 14)
The accompanying notes are an integral part of these financial statements.
Cielo Waste Solutions Corp.										5