IM Cannabis : 30/09/2021 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

IM CANNABIS CORP.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2021

UNAUDITED

IM CANNABIS CORP.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2021

CANADIAN DOLLARS IN THOUSANDS

UNAUDITED

INDEX
	Page
Condensed Interim Consolidated Statements of Financial Position	3	- 4
Condensed Interim Consolidated Statements of Profit or Loss and Other
Comprehensive Income	5	- 6
Condensed Interim Consolidated Statements of Changes in Equity		7
Condensed Interim Consolidated Statements of Cash Flows	8 - 10
Notes to Condensed Interim Consolidated Financial Statements	11	- 37

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IM CANNABIS CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Canadian Dollars in thousands

			September 30,		December 31,
				2021			2020
	Note		Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	17,116	$	8,885
Restricted bank deposit				1			18
Trade receivables				16,143			5,501
Advances to suppliers				3,270			3,602
Other accounts receivable				10,396			689
Investments				1,019			-
Loans receivable				2,672			-
Biological assets	4			2,712			78
Inventories	5			23,920			8,370
				77,249			27,143
NON-CURRENT ASSETS:
Property, plant and equipment, net				29,387			5,532
Investments				2,341			2,341
Derivative assets				46			-
Right-of-use assets, net				17,190			935
Deferred tax assets				342			769
Intangible assets, net	3			28,631			1,092
Goodwill	3			120,201			304
				198,138			10,973
Total assets			$	275,387	$	38,116

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

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IM CANNABIS CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Canadian Dollars in thousands

			September 30,		December 31,
				2021			2020
	Note	Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Bank loans			$	5,806	$	-
Trade payables				9,959			2,605
Other accounts payable and accrued expenses	3			11,074			3,497
Accrued purchase consideration	3			5,594			-
Current maturities of lease liabilities				1,248			167
				33,681			6,269
NON-CURRENT LIABILITIES:
Warrants measured at fair value	6			6,524			16,540
Lease liabilities				16,918			823
Long term loans				378			-
Employee benefit liabilities, net				437			371
Deferred tax liability, net				6,470			1,503
				30,727			19,237
Total liabilities				64,408			25,506
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF
THE COMPANY:	7
Share capital and premium				235,940			37,040
Translation reserve				1,165			1,229
Reserve from share-based payment transactions				10,342			5,829
Retained earnings (accumulated deficit)				(37,870)			(33,001)
Total equity attributable to equity holders of the Company				209,577			11,097
Non-controlling interests				1,402			1,513
Total equity				210,979			12,610
Total liabilities and equity			$	275,387	$	38,116

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

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IM CANNABIS CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Canadian Dollars in thousands

			Nine months ended				Three months ended
			September 30,				September 30,
			2021			2020				2021				2020
						Unaudited
Revenues	$	34,272	$	10,990	$	14,393	$	5,893
Cost of revenues		26,163			4,972				11,513				2,531
Gross profit before fair value adjustments		8,109			6,018				2,880				3,362
Fair value adjustments:
Unrealized change in fair value of biological assets		5,484			9,042				1,123				2,287
Realized fair value adjustments on inventory sold in the period		(7,608)			(5,099)				(2,478)				(2,268)
Total fair value adjustments		(2,124)			3,943				(1,355)				19
Gross profit		5,985			9,961				1,525				3,381
General and administrative expenses		22,634			7,223				10,246				2,197
Selling and marketing expenses		4,654			2,334				2,169				1,150
Research and development expenses		10			135				4				1
Share-based compensation		5,354			2,131				3,351				704
Total operating expenses		32,652			11,823				15,770				4,052
Operating loss		(26,667)			(1,862)				(14,245)				(671)
Finance income		21,617			427				8,224				1,186
Finance expense		)805(			(6,402)				-				-
Finance income (expenses), net		20,812			(5,975)				8,224				1,186
Income (loss) before income taxes		(5,855)			(7,837)				(6,021)				515
Income tax expense (benefit)		175			921				(365)				(223)
Net income (loss)		(6,030)			(8,758)				(5,656)				738
Other comprehensive income (loss) that will not be reclassified
to profit or loss in subsequent periods:
Re-measurement gain on defined benefit plans		-			(32)				-				1
Exchange differences on translation to presentation currency		(350)			639				888				(399)
Total other comprehensive income (loss) that will not be
reclassified to profit or loss in subsequent periods		(350)			607				888				(398)
Other comprehensive income (loss) that will be reclassified to
profit or loss in subsequent periods:
Adjustments arising from translating financial statements of
foreign operation		288			(95)				29				(35)
Total other comprehensive income (loss) that will be reclassified
to profit or loss in subsequent periods		288			(95)				29				(35)
Total other comprehensive income (loss)	$	(62)		$	512		$	917		$	(433)
Total comprehensive income (loss)		$	(6,092)		$	(8,246)		$	(4,739)		$	305

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

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