Nova Leap Health : Interim Financial Statements – 2023 Q1

Nova Leap Health Corp.

Unaudited Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2023 and 2022

(United States dollars)

Nova Leap Health Corp.

Unaudited Condensed Interim Consolidated Statements of Financial Position

(United States dollars)
As at	March 31, 2023	December 31, 2022
	$	$
ASSETS
Current assets
Cash and cash equivalents	894,365	1,272,646
Accounts receivable	1,630,685	1,753,285
Government tax credit receivable	452,306	659,495
Prepaid expenses	340,550	292,637
Total current assets	3,317,906	3,978,063
Non-current assets
Property and equipment	1,436,690	1,493,613
Intangible assets	951,220	1,090,510
Goodwill	16,041,906	16,040,114
Deferred income tax asset	1,430,720	1,346,263
Total non-current assets	19,860,536	19,970,500
TOTAL ASSETS	23,178,442	23,948,563
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	1,286,104	1,242,241
Client deposits payable	58,459	57,538
Demand loans (note 3)	995,366	1,378,244
Promissory notes (note 4)	777,948	890,526
Lease liability	323,325	331,288
Government loans	88,672	88,600
Total current liabilities	3,529,874	3,988,437
Non-current liabilities	119,758	117,509
Promissory notes (note 4)
Lease liability	1,094,769	1,160,696
Total non-current liabilities	1,214,527	1,278,205
TOTAL LIABILITIES	4,744,401	5,266,642
SHAREHOLDERS' EQUITY
Share capital (note 5)	18,959,250	18,959,250
Contributed surplus	2,165,773	2,130,911
Accumulated other comprehensive loss	(1,201,324)	(1,215,458)
Deficit	(1,489,658)	(1,192,782)
TOTAL SHAREHOLDERS' EQUITY	18,434,041	18,681,921
TOTAL LIABILITIES AND SHARHOLDERS' EQUITY	23,178,442	23,948,563

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

Subsequent event (note 11)
Approved on behalf of the Board of Directors
"Michael O'Keefe"			"Chris Dobbin"
(signed)	Director (signed)	Director

(1)

Nova Leap Health Corp.

Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

(United States dollars)
For the	Three months ended March 31
	2023	2022
	$	$
Revenues	6,396,076
Service revenues	7,296,609
Operating expenses	4,144,120
Cost of service	4,755,526
	2,251,956	2,541,083
Corporate and administrative expenses	1,632,475
Head office and operations management	1,734,417
General & administrative	533,456	579,104
Amortization and depreciation	234,027	330,888
Stock-based compensation	34,862	95,503
	2,434,820	2,739,912
Loss from operating activities	(182,864)	(198,829)
Other expenses	(11,747)
Foreign exchange loss	(192,563)
Finance expense	(69,455)	(23,945)
Acquisition related and other legal expenses	(106,491)	(19,229)
Other expenses	(2,181)	(10,982)
	(189,874)	(246,719)
Loss before income taxes	(372,738)	(445,548)
Income taxes	84,552
Deferred income tax recovery	211,324
Current income tax expense	(8,690)	(155,450)
	75,862	55,874
Net loss	(296,876)	(389,674)
Items that will be reclassified subsequently to profit or loss	14,134
Foreign exchange gain on translation to presentation currency	225,064
Total comprehensive loss	(282,742)	(164,610)
Net loss per share - basic and diluted (note 6)	$(0.003)	$(0.005)

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

(2)

Nova Leap Health Corp.

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders' Equity

(United States dollars)

				Accumulated
				other		Total
			Contributed	comprehensive		shareholders'
	Common	Share capital	surplus	(loss) income	Deficit	equity
	shares	$	$	$	$	$
Balance at January 1, 2023	86,209,252	18,959,250	2,130,911	(1,215,458)	(1,192,782)	18,681,921
Stock-based compensation	-	-	34,862	-	-	34,862
Net loss for the period	-	-	-	-	(296,876)	(296,876)
Other comprehensive income for the period	-	-	-	14,134	-	14,134
Balance at March 31, 2023	86,209,252	18,959,250	2,165,773	(1,201,324)	(1,489,658)	18,434,041
Balance at January 1, 2022	79,294,807	17,136,284	1,781,804	(80,617)	(357,037)	18,480,434
Stock-based compensation	-	-	95,503	-	-	95,503
Net loss for the period	-	-	-	-	(389,674)	(389,674)
Other comprehensive income for the period	-	-	-	225,064	-	225,064
Balance at March 31, 2022	79,294,807	17,136,284	1,877,307	144,447	(746,711)	18,411,327

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

(3)

Nova Leap Health Corp.

Unaudited Condensed Interim Consolidated Statements of Cash Flows

(United States dollars)	Three months ended March 31
For the
	2023	2022
	$	$
Cash provided by (used in)
Operating activities	(296,876)
Net loss for the period	(389,674)
Adjustments for items not affecting cash:	207,189
Government tax credit receivable	-
Amortization and depreciation	234,027	330,888
Deferred income tax recovery	(84,552)	(211,324)
Stock-based compensation	34,862	95,503
Finance expense	73,013	24,405
Unrealized foreign exchange loss	12,054	181,529
Gain on the sale of assets	(4,861)	(15,000)
Net change in non-cash operating working capital (note 7)	119,471	352,059
Cash provided by operating activities	294,327	368,386
Investing activities	(27,990)	(36,845)
Purchase of property and equipment
Proceeds on the sale of assets	4,861	15,000
Cash used in investing activities	(23,129)	(21,845)
Financing activities
Repayment of demand loans and transaction costs (note 3)	(392,634)	(212,157)
Interest payments on demand loans (note 3)	(25,893)	(44,098)
Repayment of promissory notes and interest (note 4)	(127,500)	(104,500)
Repayment of lease liability and interest	(104,141)	(86,125)
Cash used in financing activities	(650,168)	(446,880)
Effect of foreign exchange rate change on cash and cash equivalents	689	13,720
Decrease in cash and cash equivalents for the period	(378,281)	(86,619)
Cash and cash equivalents - beginning of period	1,272,646	1,733,442
Cash and cash equivalents - end of period	894,365	1,646,823

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

(4)