NervGen Pharma : Consolidated financial statements of NervGen Pharma Corp. for the Quarter Ended June 30, 2022

Condensed consolidated interim financial statements of

NervGen Pharma Corp.

(Expressed in Canadian Dollars - Unaudited)

For the six months ended June 30, 2022

NERVGEN PHARMA CORP.

Condensed Consolidated Interim Statements of Financial Position

(Expressed in Canadian dollars)

(Unaudited)
as at		June 30, 2022	December 31, 2021
		$	$
Assets
Current assets		11,649,609
Cash		16,928,857
Accounts receivable		96,807	64,002
Prepaids and deposits (Notes 6, 12)	446,994	427,577
		12,193,410	17,420,436
Non-current assets		15,832
Capital assets		2,691
Right-of-use-asset (Note 9)		322,359	-
Intangible assets (Note 7)		452,278	473,152
		790,469	475,843
		12,983,879	17,896,279
Liabilities
Current liabilities		2,782,661
Accounts payable and accrued liabilities (Note 8, 12)	1,078,080
Current portion of lease liability (Note 9)	83,722	-
		2,866,383	1,078,080
Non-current liabilities		240,968
Lease liability (Note 9)		-
		240,968	134,230
		3,107,351	583,106
Shareholders' Equity		45,256,400
Common shares (Note 10)		42,403,307
Reserves (Note 11)		10,954,865	9,463,514
Deficit		(46,334,737)	(35,048,622)
		9,876,528	16,818,199
		12,983,879	17,896,279
Nature of business (Note 1)		-	#REF!
Commitments (Note 13)
Subsequent events (Note 15)
Approved by the Board
/s/ William J. Radvak	Director	/s/ Glenn A. Ives	Director

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

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NERVGEN PHARMA CORP.

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

(Expressed in Canadian dollars)
(Unaudited)
	For the 3 Months	For the 3 Months	For the 6 Months	For the 6 Months
	Ended	Ended	Ended	Ended
	June 30, 2022	June 30, 2021	June 30, 2022	June 30, 2021
	$	$	$	$
Operating expenses	4,745,546		8,347,609
Research and development (Note 14)	1,576,341	2,322,959
General and administration (Note 14)	1,567,503	1,191,032	2,969,785	2,674,591
Total operating expenses	6,313,049	2,767,373	11,317,394	4,997,550
Interest income	(33,534)	(5,333)	(50,871)	(10,011)
Foreign exchange (gain) loss	39,005	(29,101)	19,592	(7,183)
Net loss and comprehensive loss for the year	(6,318,520)	(2,732,939)	(11,286,115)	(4,980,356)
Basic and diluted net loss per share	(0.13)	(0.07)	(0.24)	(0.14)
Weighted average common shares outstanding (Note 10)	47,301,338	37,646,406	46,769,837	36,560,944

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

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NERVGEN PHARMA CORP.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Canadian dollars) (Unaudited)

		Six Months		Six Months
		Ended		Ended
		June 30, 2022		June 30, 2021
		$		$
Operating activities		(11,286,115)
Net loss for the period			(4,980,356)
Items not involving cash:		20,874
Amortization of intangible asset			19,698
Depreciation		24,733		856
Interest expense		5,073		-
Stock-based compensation		1,628,296		1,623,927
Unrealized foreign exchange		33,037		16,718
Changes in non-cash working capital:		(32,805)
Accounts receivable			4,128
Prepaid expenses		(19,417)		(240,410)
Accounts payable and accrued liabilities		1,704,581		158,444
		(7,921,743)		(3,396,995)
Investing activities		(15,384)
Payments to acquire capital assets			-
Acquisition payments on intangible asset		-		(42,336)
		(15,384)		(42,336)
Financing activities		(25,232)
Repayment of lease liabilities			-
Option and warrant exercises		2,722,463		700,983
Proceeds from issuance of common shares		-		5,037,500
Share issue costs - cash		(6,315)		(521,377)
		2,690,916		5,217,106
Effect of foreign exchange on cash		(33,037)		(16,719)
Net increase (decrease) in cash		(5,279,248)		1,761,056
Cash, beginning of period		16,928,857		5,598,560
Cash, end of period		11,649,609		7,359,616
Cash paid for interest and taxes	$	-	$	-
Non-cash transactions:
Recognition of right-of-use asset		344,849		-
Fair value of options allocated to share capital		102,700		360,905
Fair value of warrants allocated to share capital		34,245		2,242
Finder's/Broker's warrants		-		164,443
Share issue costs in accounts payable and accrued liabilities		-		97,776

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

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NERVGEN PHARMA CORP.

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity

(Expressed in Canadian dollars) (Unaudited)

					Total
	Common Shares			Shareholders'
	Number	Amount	Reserves	Deficit	Equity
		$	$	$	$
Balance December 31, 2020	35,167,875	22,947,031	5,295,229	(22,322,044)	5,920,216
Option exercises	679,930	1,040,835	(360,905)	-	679,930
Warrant exercises	12,887	23,295	(2,242)	-	21,053
Stock-based compensation	-	-	775,997	-	775,997
Loss and comprehensive loss	-	-	-	(2,247,417)	(2,247,417)
Balance March 31, 2021	35,860,692	24,011,161	5,708,079	(24,569,461)	5,149,779
Common share financings (net)	3,250,000	4,093,346	325,000	-	4,418,346
Broker warrants	-	(164,443)	164,443	-	-
Stock-based compensation	-	-	847,930	-	847,930
Loss and comprehensive loss	-	-	-	(2,732,939)	(2,732,939)
Balance June 30, 2021	39,110,692	27,940,064	7,045,452	(27,302,400)	7,683,116
Balance December 31, 2021	46,189,584	42,403,307	9,463,514	(35,048,622)	16,818,199
Warrant exercises	79,969	148,967	(20,634)	-	128,333
Stock-based compensation	-	-	797,101	-	797,101
Loss and comprehensive loss	-	-	-	(4,967,595)	(4,967,595)
Balance March 31, 2022	46,269,553	42,552,274	10,239,981	(40,016,217)	12,776,038
Warrant exercises	1,525,005	2,447,426	(13,611)	-	2,433,815
Option exercises	100,000	256,700	(102,700)	-	154,000
Stock-based compensation	-	-	831,195	-	831,195
Loss and comprehensive loss	-	-	-	(6,318,520)	(6,318,520)
Balance June 30, 2022	47,894,558	45,256,400	10,954,865	(46,334,737)	9,876,528

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

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