Resverlogix : Financial Statement Q2 2023

Condensed Interim Consolidated Financial Statements

For the three and six months ended June 30, 2023 and 2022

Notice of No Auditor Review of Unaudited Condensed Interim Consolidated Financial Statements

The accompanying unaudited condensed interim consolidated financial statements of Resverlogix Corp. (the "Company") as at June 30, 2023 and for the period then ended have been prepared by and are the responsibility of the Company's management. The Company's Audit Committee and Board of Directors have reviewed and approved these unaudited condensed interim consolidated financial statements. In accordance with National Instrument 51 - 102, the Company discloses that its auditors have not reviewed the accompanying unaudited condensed interim consolidated financial statements for the periods ended June 30, 2023 and 2022.

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Condensed Interim Consolidated Statements of Financial Position

As at: (unaudited)

						June 30,	December 31,
In thousands of US dollars		Notes	2023		2022
Assets
Current assets:
Cash			$	75	$	40
Prepaid expenses and deposits				162		146
Investment tax credit receivable				139		176
Other assets					25		8
Clinical supplies				2,371		2,371
Due from Zenith Capital Corp.				-		147
Total current assets				2,772		2,888
Non-current assets:
Property and equipment				30		66
Right-of-use assets				164		360
Intangible assets				2,325		2,205
Clinical supplies				2,596		2,596
Total non-current assets				5,115		5,227
Total assets			$	7,887	$	8,115
Liabilities
Current liabilities:
Trade and other payables		$	14,143	$	14,095
Accrued interest		7		1,377		1,021
Promissory notes		5		775		196
Due to Zenith Capital Corp.		6		1,489		-
Lease liabilities				231		437
Warrant liability		9 (e)	377		813
Debt			7		5,842		5,858
Derivative liability		7		553		314
Total current liabilities				24,787		22,734
Non-current liabilities:
Other long-term liability		10		1,032		962
Royalty preferred shares		8		49,300		43,700
Total liabilities				75,119		67,396
Shareholders' deficiency:
Share capital			9 (a)	333,155		331,422
Contributed surplus				54,468		54,983
Deficit			(454,855)		(445,686)
Total shareholders' deficiency				(67,232)		(59,281)
Total liabilities and shareholders' deficiency	$	7,887	$	8,115
Going concern (note 3)	Commitments and contingencies (note 11)	Subsequent event (note 12)
Signed on behalf of the Board:
Signed:		"Kenneth Zuerblis"	Director	Signed: "Kelly McNeill"	Director

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

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Condensed Interim Consolidated Statements of Comprehensive Loss

For the three and six months ended June 30 (unaudited)

			Three months ended		Six months ended
			June 30,			June 30,
In thousands of US dollars	Notes		2 0 2 3		2022		2 0 2 3		2022
Ex penses:
Research and development, net	10	$	648	$	1,130	$	1,383	$	2,657
of recoveries
Investment tax credits			(15)		(19)		(30)		(39)
Net research and development			633		1,111		1,353		2,618
Pre-commercialization, general and	10		810		926		1,682		5,367
administrative, net of recoveries
			1,443		2,037		3,035		7,985
Finance (income) costs:
Gain on change in fair value of	9 (e)		(511)		(1,721)		(541)		(2,302)
warrant liability
Loss (gain) on change in fair value of	8		2,800		(600)		5,600		(3,900)
royalty preferred shares
(Gain) loss on change in fair value of	7		(259)		109		239		4
derivative liability
Loss (gain) on payables extinguishment	9 (c)		6		10		(12)		10
Interest, fees and accretion			504		589		806		906
Financing costs			2		8		7		22
Foreign exchange loss (gain)			26		(33)		28		2
Net finance costs (income)			2,568		(1,638)		6,127		(5,258)
Loss before income taxes			4,011		399		9,162		2,727
Income taxes			3		4		7		8
Net and total comprehensive loss		$	4,014	$	403	$	9,169	$	2,735

Net loss per share (note 9 (f))
Basic	$	0 .01	$	0.00	$	0 .03	$	0.01
Diluted		0 .01		0.00		0 .03		0.01

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

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Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficiency)

For the six months ended June 30 (unaudited)

								Total
		Share	Con tribu ted			Shareholders'
In thousands of US dollars		Capital		Su rplu s		Deficit	Deficien cy
Balan ce, December 31, 2021	$	326,885	$	55,321	$	(442,076)	$	(59,870)
Common shares issued in connection		801		-		-		801
with private placements
Common shares issued in connection		644		(600)		-		44
with long term incentive plan
Common shares issued in connection		92		-		-		92
with exercise of warrants
Share issue cost		(13)		-		-		(13)
Share-based payment transactions		-		1,665		-		1,665
Net and total comprehensive loss		-		-		(2,735)		(2,735)
Balan ce, Ju n e 30, 2022	$	328,409	$	56,386	$	(444,811)	$	(60,016)
Balan ce, December 31, 2022	$	331,422	$	54,983	$	( 445,686)	$	( 59,281)
Common shares issued in connection		172		-		-		172
with private placements
Common shares issued in connection		1,568		( 1,434)		-		134
with long term incentive plan
Share issue cost		( 7)		-		-		( 7)
Share-based payment transactions		-		919		-		919
Net and total comprehensive loss		-		-		( 9,169)		( 9,169)
Balan ce, Ju n e 30, 2023	$	333,155	$	54,468	$	( 454,855)	$	( 67,232)

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

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