NEO Battery Materials : FS Q1 2023 (May 31, 2022)

Condensed Consolidated Interim Financial Statements

For the Three Months Ended May 31, 2022 and May 31, 2021

(Unaudited - Prepared by Management)

(Expressed in Canadian Dollars)

NOTICE OF NO AUDITOR REVIEW OF

INTERIM FINANCIAL STATEMENTS

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

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

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NEO Battery Materials Ltd.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited - Expressed in Canadian Dollars)

		May 31,		February 28,
Assets		2022		2022
Current Assets:
Cash and cash equivalents	$	535,019	$	1,247,750
Marketable securities (Note 4)		7,252		7,910
Prepaid expenses (Note 5)		155,571		161,865
Sales tax and other receivables (Note 6)		57,300		21,423
		755,142		1,438,948
Non-Current Assets:
Deposits		-		12,597
Equipment (Note 8)		344,946		180,529
Exploration and evaluation assets (Note 7)		1,344		1,344
Prepaid expenses - long term (Note 5)		209,278		31,212
Right-of-use asset (Note 14)		-		9,962
Total Assets	$	1,310,710	$	1,674,592
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued liabilities (Note 13)	$	222,453	$	166,119
Lease liability - current portion (Note 14)		-		12,167
		222,453		178,286
Total Liabilities		222,453		178,286
Shareholders' Equity:
Share capital (Note 15)		22,390,351		22,311,985
Reserves (Note 15)		7,771,420		7,792,453
Accumulated other comprehensive loss		(213,523)		(213,523)
Deficit		(28,859,991)		(28,394,609)
Total Equity		1,088,257		1,496,306
Total Liabilities and Equity	$	1,310,710	$	1,674,592

Nature of Operations and Going Concern (Note 1)

Subsequent Events (Note 19)

Approved by the Board of Directors on July 25, 2022:

"Spencer Sung Bum Huh" , Director"Larry Okada", Director

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

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NEO Battery Materials Ltd.

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

(Expressed in Canadian Dollars)

		For Three Months Ended
		May 31, 2022		May 31, 2021
Expenses
Amortization (Note 7)	$	13,728	$	-
Amortization of ROU asset (Note 14)		9,962		14,943
Advertising and marketing		23,664		49,334
Consulting and management fees (Note 16)		89,646		122,900
Corporate listing and filing fees		15,132		72,049
Investor relations		13,672		23,228
Office and general		13,123		8,764
Payroll expenses		87,432		-
Professional fees (Note 16)		48,243		44,298
Rent (Note 14)		43,383		16,531
Research and development (Note 9)		81,317		3,276
Stock-based compensation		-		79,024
Sublease income (14)		(5,925)		(17,433)
Travel		9,931		2,530
Loss from operations		443,308		419,444
Other expenses (income)
Interest expense - lease liability (Note 14)		1,857		4,108
Interest expense - short-term loans		-		68,790
Loss on foreign exchange		19,559		1,328
Unrealized loss on marketable securities (Note 4)		658		762
Total other expense		22,074		74,988
Net loss and comprehensive loss for the period	$	465,382	$	494,432
Loss per share:
Basic	$	0.00	$	0.00
Weighted average number of common shares outstanding		97,571,934		75,264,687

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

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NEO Battery Materials Ltd.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Canadian Dollars)

		For Three Months Ended
		May 31, 2022		May 31, 2021
Operating Activities:
Net loss for the year	$	(465,382)	$	(494,432)
Adjustment for items which do not involve cash:
Amortization		13,728		-
Amortization of ROU asset		9,962		14,943
Stock-based compensation		-		79,024
Unrealized loss on marketable securities		658		761
Changes in non-cash working capital components:
Accounts payable and accrued liabilities		158,233		32,683
Deposit account		12,597		-
Short-term loan interest		-		68,809
Prepaid expenses		(93,512)		(108,242)
Sales tax and other receivables		(35,877)		(3,762)
		(399,593)		(410,216)
Investing Activities:
Prepaid expenses - commercial plant design fees		(180,159)		-
Equipment		(178,145)		-
		(358,304)		-
Financing Activities:
Private placement		-		2,057,000
Repayment - share subscription		-		(25,000)
Repayment - short-term loan principal and interest		-		(1,359,169)
Exercise of warrants		53,333		-
Exercise of options		4,000		-
Principal portion of lease liability		(12,167)		(16,320)
		45,166		656,511
Net changes in cash and cash equivalents		(712,731)		246,295
Cash and cash equivalents - beginning of the period		1,247,750		625,876
Cash and cash equivalents - end of the period	$	535,019	$	872,171
Non-cash Activities:
Prepaid expenses in accounts payable and accrued liabilities	$	101,900	$	-

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

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