Empatho : Interim Financial Report

EMPATHO HOLDINGS INC. (FORMERLY SHANE RESOURCES LTD.)

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIOD ENDED APRIL 30, 2022

(IN CANADIAN DOLLARS - UNAUDITED)

NOTICE TO READER

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

The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by management and approved by the Audit Committee and Board of Directors of the Company.

The Company's independent auditors have not performed a review of these condensed consolidated interim financial statements in accordance with the standards established by the Canadian Institute of Chartered Accountants for a review of condensed consolidated interim financial statements by an entity's auditors.

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EMPATHO HOLDINGS INC. (FORMERLY SHANE RESOURCES LTD.)

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

APRIL 30, 2022

CONTENTS

	Page
Condensed Consolidated Interim Statement of Financial Position	1
Condensed Consolidated Interim Statement of Loss and Comprehensive Loss	2
Condensed Consolidated Interim Statement of Changes in Shareholders' Equity	3
Condensed Consolidated Interim Statement of Cash Flow	4
Notes to the Condensed Consolidated Interim Financial Statements	5

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EMPATHO HOLDINGS INC. (FORMERLY SHANE RESOURCES LTD.)

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

(All Amounts are in Canadian Dollars - Unaudited)

As at

			April 30,	Oct. 31,
			2022	2021
		Notes	$	$
ASSETS
CURRENT
Cash			108,050	231,201
Restricted cash			-	3,017,740
Amounts receivable and prepaids		57,445	137,420
TOTAL ASSETS			165,495	3,386,361
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities	9	962,275	1,431,346
Subscription receipt liability		6 (v)	2,014	3,138,000
TOTAL LIABILITIES			964,289	4,569,346
SHAREHOLDERS' DEFICIT
Capital stock		6	5,216,773	1,132,188
Contributed surplus		6	904,016	180,739
Accumulated deficit			(6,919,583)	(2,495,912)
			(798,794)	(1,182,985)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT		165,495	3,386,361
Nature of Operations and Going Concern (Note 1)
Subsequent events (Note 10)
APPROVED ON BEHALF OF THE BOARD
(signed) "Yan Namer"	Yan Namer
	Chief Executive Officer
(signed) "Andre Peschong"	Andre Peschong
	Chair of the Audit Committee

See the accompanying notes to the condensed consolidated interim financial statements

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EMPATHO HOLDINGS INC. (FORMERLY SHANE RESOURCES LTD.)

CONDENSED CONSOLIDATED INTERIM STATEMENT OF LOSS AND COMPREHENSIVE LOSS

(All Amounts are in Canadian Dollars - Unaudited)

		Three months ended	Six months ended
		April 30	April 30
		2022	2021	2022	2021
	Notes	$	$	$	$
EXPENSES
Consulting fees	9	167,587	-	301,049	-
Research and development		567,850	56,183	1,257,258	56,183
General and administrative		143,119	69,593	250,520	77,967
Professional fees		28,287	36,758	144,676	73,839
Investor relations		177,634	-	342,666	-
Listing expense	5	-	-	2,110,814	-
Foreign exchange		5,985	-	16,687	-
NET LOSS AND COMPREHENSIVE	1,090,462	162,534	4,423,670	207,989
LOSS FOR THE PERIOD
NET LOSS PER SHARE -		$ 0.02	$ 0.01	$ 0.07	$ 0.01
Basic and diluted
WEIGHTED AVERAGE
NUMBER OF SHARES		72,552,003	14,725,000	67,621,969	14,725,000
OUTSTANDING - Basic
and diluted

See the accompanying notes to the condensed consolidated interim financial statements

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EMPATHO HOLDINGS INC. (FORMERLY SHANE RESOURCES LTD.) CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT

(All Amounts are in Canadian Dollars - Unaudited)

		Number of			Contributed	Accumulated	Shareholders'
		Common Shares	Capital Stock	Surplus		Deficit		Deficit
Balance, November 20, 2020	-	$	-	$	-	$	-	$	-
Issuance of common shares, net of costs	34,200,000		610,427		-		-		610,427
Net loss for the period	-		-		-		(207,989)		(207,989)
Balance, April 30, 2021	34,200,000		610,427		-		(207,989)		402,438
Issuance of common shares, net of costs	17,600,000		521,761		-		-		521,761
Issuance of warrants	-		-		180,739		-		180,739
Net loss for the period	-		-		-		(2,287,923)		(2,287,923)
Balance, October 31, 2021	51,800,000	1,132,188		180,739		(2,495,912)		(1,182,985)
Shares issued for RTO transaction	8,200,003	2,050,000		8,602		-		2,050,000
Shares issued for subscription receipts	12,552,000	2,034,585		714,675		-		2,749,260
Net loss for the period	-		-		-		(4,423,670)		(4,423,670)
Balance, April 30, 2022		72,552,003	$ 5,216,773	$	904,016	$	(6,919,583)	$	(798,794)

See the accompanying notes to the condensed consolidated interim financial statements

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