SERNOVA CORP. SERNOVA CORP.
INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED
APRIL 30, 2022 AND 2021
(Expressed in Canadian Dollars)
(Unaudited)
NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS
Under National Instrument 51-102 Continuous Disclosure Obligations, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited interim condensed consolidated 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.
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SERNOVA CORP.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian Dollars)
(Unaudited)
April 30, | October 31, | |||
Note | 2022 | 2021 | ||
ASSETS | ||||
Current assets | ||||
Cash | $ | 24,238,375 | $ | 27,874,198 |
Amounts receivable | 4 | 633,310 | 448,947 | |
Prepaid expenses | 259,048 | 4,200 | ||
25,130,733 | 28,327,345 | |||
Non-current assets | ||||
Deposits | 211,548 | 211,548 | ||
Property and equipment, net | 440,606 | 176,325 | ||
Intangible assets, net | 616,769 | 716,785 | ||
Right-of-use asset | 5 | 319,811 | 388,341 | |
1,588,734 | 1,492,999 | |||
$ | 26,719,467 | $ | 29,820,344 | |
LIABILITIES | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | $ | 2,572,600 | $ | 1,358,496 |
Lease liabilities | 5 | 128,191 | 117,375 | |
2,700,791 | 1,475,871 | |||
Non-current liabilities | ||||
Lease liabilities | 5 | 208,933 | 275,979 | |
208,933 | 275,979 | |||
2,909,724 | 1,751,850 | |||
SHAREHOLDERS' EQUITY | ||||
Common shares | 7 | 75,595,698 | 74,010,694 | |
Warrants | 7 | 3,557,344 | 3,693,248 | |
Contributed surplus | 7 | 9,784,274 | 5,113,503 | |
Deficit | (65,127,573) | (54,748,951) | ||
23,809,743 | 28,068,494 | |||
$ | 26,719,467 | $ | 29,820,344 | |
Commitments and Contingencies (Note 11) | ||||
Events After the Reporting Period (Note 15) |
See accompanying notes to the interim condensed consolidated financial statements.
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SERNOVA CORP.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS FOR THE THREE AND SIX MONTHS ENDED APRIL 30, 2022 AND 2021
(Expressed in Canadian Dollars) (Unaudited)
Three months ended April 30, | Six months ended April 30, | ||||||||
Note | 2022 | 2021 | 2022 | 2021 | |||||
EXPENSES | |||||||||
Research and development | 9 | $ | 3,178,035 | $ | 1,111,105 | $ | 6,347,540 | $ | 1,789,385 |
General and administrative | 9 | 1,755,961 | 565,233 | 4,043,445 | 1,052,514 | ||||
4,933,996 | 1,676,338 | 10,390,985 | 2,841,899 | ||||||
OTHER EXPENSE (INCOME) | |||||||||
Interest income | (19,884) | (26,073) | (39,389) | (30,165) | |||||
Finance costs | 15,185 | 5,351 | 31,567 | 323,189 | |||||
Foreign exchange (gain) loss | (9,610) | 11,350 | (4,541) | 24,275 | |||||
(14,309) | (9,372) | (12,363) | 317,299 | ||||||
LOSS AND COMPREHENSIVE LOSS | $ | 4,919,687 | $ | 1,666,966 | $ 10,378,622 | $ | 3,159,198 | ||
Weighted average number of common shares | |||||||||
outstanding - basic and diluted | 262,522,342 | 236,670,373 | 261,978,291 | 214,003,636 | |||||
Basic and diluted loss per common share | 12 | $ | 0.02 | $ | 0.01 | $ | 0.04 | $ | 0.02 |
See accompanying notes to the interim condensed consolidated financial statements.
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SERNOVA CORP.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED APRIL 30, 2022 AND 2021
(Expressed in Canadian Dollars) (Unaudited)
Note | 2022 | 2021 | ||
CASH PROVIDED BY (USED IN): | ||||
OPERATING ACTIVITIES | ||||
Loss for the period | $ (10,378,622) | $ | (3,159,198) | |
Adjustments for items not affecting cash: | ||||
Amortization and depreciation | 205,761 | 121,249 | ||
Share-based compensation | 7 | 4,711,271 | 79,210 | |
Grants and contributions recognized | 11 | (439,127) | (500,014) | |
Accretion and accrued interest expense | - | 297,388 | ||
Interest on lease liabilities | 5 | 27,770 | - | |
Changes in non-cash working capital balances: | ||||
Amounts receivable | (163,659) | (72,723) | ||
Prepaid expenses | (254,848) | 140,701 | ||
Accounts payable and accrued liabilities | 1,408,359 | 3,168 | ||
(4,883,095) | (3,090,219) | |||
INVESTING ACTIVITIES | ||||
Acquisition of property and equipment | (301,496) | (3,296) | ||
(301,496) | (3,296) | |||
FINANCING ACTIVITIES | ||||
Proceeds from prospectus offering of units, net | 7 | - | 21,334,182 | |
Proceeds from exercise of warrants | 7 | 1,356,850 | 7,540,706 | |
Proceeds from exercise of stock options | 7 | 51,750 | 436,525 | |
Other financing costs | - | (11,807) | ||
Grant contribution receipts | 11 | 224,168 | 630,966 | |
Research collaboration advances | 11 | - | 261,439 | |
Lease liabilities payments | 5 | (84,000) | - | |
1,548,768 | 30,192,011 | |||
CHANGE IN CASH DURING THE PERIOD | (3,635,823) | 27,098,496 | ||
CASH, BEGINNING OF PERIOD | 27,874,198 | 3,949,412 | ||
CASH, END OF PERIOD | $ 24,238,375 | $ | 31,047,908 | |
Cash Flows Supplementary Information (Note 10) |
See accompanying notes to the interim condensed consolidated financial statements.
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SERNOVA CORP.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED APRIL 30, 2022 AND 2021
(Expressed in Canadian Dollars) (Unaudited)
Common Shares | Contributed | |||||||||
Warrants | Surplus | Deficit | Total | |||||||
(Note 7) | (Note 7) | (Note 7) | ||||||||
Balance, October 31, 2021 | 261,133,258 | $ | 74,010,694 | $ | 3,693,248 | $ | 5,113,503 | $ (54,748,951) | $ | 28,068,494 |
Loss and comprehensive loss for the period | - | - | - | - | (10,378,622) | (10,378,622) | ||||
Transactions with owners of the Company, | ||||||||||
recognized directly in equity: | ||||||||||
Exercise of warrants | 1,259,000 | 1,492,754 | (135,904) | - | - | 1,356,850 | ||||
Exercise of stock options | 237,500 | 92,250 | - | (40,500) | - | 51,750 | ||||
Share-based compensation | - | - | - | 4,711,271 | - | 4,711,271 | ||||
Balance, April 30, 2022 | 262,629,758 | $ | 75,595,698 | $ | 3,557,344 | $ | 9,784,274 | $ (65,127,573) | $ | 23,809,743 |
Balance, October 31, 2020 | 208,263,447 | $ | 44,640,757 | $ | 1,549,759 | $ | 5,737,733 | $ (47,783,412) | $ | 4,144,837 |
Loss and comprehensive loss for the period | - | - | - | - | (3,159,198) | (3,159,198) | ||||
Transactions with owners of the Company, | ||||||||||
recognized directly in equity: | ||||||||||
Units financing, net of issuance costs | 19,205,000 | 18,759,912 | 2,350,924 | - | - | 21,110,836 | ||||
Units issued for corporate finance fee in | ||||||||||
conjunction with units financing | 384,100 | (460,920) | - | 460,920 | - | - | ||||
Exercise of warrants | 24,099,116 | 7,746,540 | (205,834) | - | - | 7,540,706 | ||||
Exercise of stock options | 1,975,000 | 761,360 | - | (324,835) | - | 436,525 | ||||
Shares issued upon conversion of convertible | ||||||||||
debentures | 4,000,000 | 1,137,317 | - | (137,317) | - | 1,000,000 | ||||
Shares issued for payment of convertible | ||||||||||
debentures interest | 138,980 | 40,110 | - | - | - | 40,110 | ||||
Share-based compensation | - | - | - | 79,210 | - | 79,210 | ||||
Balance, April 30, 2021 | 258,065,643 | $ | 72,625,076 | $ | 3,694,849 | $ | 5,815,711 | $ (50,942,610) | $ | 31,193,026 |
See accompanying notes to the interim condensed consolidated financial statements.
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Sernova Corp. published this content on 27 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2022 23:20:04 UTC.
