SOL Global Investments : 2023 Q1 Financial Statement

SOL Global Investments Corp.

UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

For the three-month period ended February 28, 2023 and the three-month period ended February 28, 2022

(Expressed in Canadian Dollars)

NOTE TO READER

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 the financial statements have not been reviewed by an auditor.

The management of SOL Global Investments Corp (the "Company" or "SOL Global"). are responsible for the preparation of the accompanying unaudited condensed interim financial statements ("Financial Statements"). These Financial Statements have been prepared in accordance with International Financial Reporting Standards and are considered by management to present fairly the financial position, operating results and cash flows of the Company.

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. These Financial Statements include all adjustments, consisting of normal and recurring items, that management considers necessary for a fair presentation of the financial position, results of operations and cash flows.

SOL Global Investments Corp.

Unaudited Interim Condensed Statements of Financial Position

(Expressed in Canadian Dollars)

	Notes	February 28	November 30,
As at		2023	2022
		$	$
ASSETS
Cash		111,566	71,924
Other receivables	6	1,339,038	318,335
Investments	4	132,960,045	145,023,703
Convertible debentures	4	160,035	2,260,370
Prepaid expenses	5	32,732	32,732
Promissory notes receivable	4	1,979,607	2,519,842
Other assets		342,278	342,278
Income tax recovery	10	3,900,957	-
Right of use asset	16	1,777,195	1,922,948
Leasehold Improvements	17	622,877	632,661
Total assets		143,226,330	153,124,793
LIABILITIES
Accounts payable and accrued liabilities	11	19,118,258	17,573,512
Severance payable	12	29,064,125	29,049,126
Promissory notes payable	13	1,329,207	1,312,107
Lease obligation	16	2,643,301	2,616,169
Income tax payable	10	39,835,361	39,835,361
Term Loan	14	9,328,192	9,081,370
Debenture	14	10,886,326	11,826,333
Total Liabilities		112,204,770	111,293,978
SHAREHOLDERS' EQUITY
Capital stock	7	128,889,904	128,889,904
Contributed surplus (deficit)		(6,255,159)	(6,255,159)
DSU/PSU share reserve	9	578,052	578,052
Retained earnings		(92,191,237)	(81,381,982)
Total shareholders' equity		31,021,560	41,830,815
Total liabilities and shareholders' equity		143,226,330	153,124,793

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

Nature and Continuance of Operations (note 1)

Basis of presentation (note 2)

Commitments and Contingencies (notes 15)

On behalf of the Board of Directors, on May 1, 2023:
/s/ Arena Prado-Acosta	/s/ Mehdi Azodi
Director	Director

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SOL Global Investments Corp.

Unaudited Interim Condensed Statements of Income/(Loss) and Comprehensive Income/(Loss)

(Expressed in Canadian Dollars)

		Three-month	Three-month
		period ended	period ended
		Feb 28, 2023	Feb 28, 2022
	Note	$	$
Revenue
Net change in fair value of investments	4	(12,810,470)	(81,591,643)
Interest and other income	4	680,712	525,367
Foreign exchange (loss) gain		(15,027)	(43,712)
Total revenue		(12,144,785)	(81,109,988)
Expenses
Salaries and consulting		679,109	1,377,134
Share-based compensation		-	9,113
General and administrative		639,231	847,111
Interest expense		593,769	871,201
Financing expense		526,782	1,355,077
Professional fees and transaction costs		126,536	1,118,208
Total expenses		2,565,427	5,577,844
Income (loss) before income taxes		(14,710,212)	(86,687,832)
Deferred income tax (recovery) expense		-	-
Current income taxes(recovery) expense		(3,900,957)	(12,284,477)
Net income (loss) and comprehensive income (loss)		(10,809,255)	(74,403,355)
Net income (loss) per share, basic	8	(0.20)	(1.67)
Net income (loss) per share, diluted	8	(0.20)	(1.67)
Weighted average number of shares outstanding - basic	8	54,441,981	44,611,129
Weighted average number of shares	8	54,441,981	44,611,129
outstanding -diluted

The accompanying notes are an integral part of these financial statements

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SOL Global Investments Corp.

Unaudited Interim Condensed Statements of Shareholders' Equity

(Expressed in Canadian Dollars)

						Retained
		Number of		Contributed	DSU/PSU	Earnings
	Note	Common Shares	Share Capital	Surplus (deficit)	Reserve	(Deficit)	Total
			$	$	$	$	$
Balance, December 1, 2021		52,018,533	134,948,223	6,982,615	9,424,751	215,638,069	366,993,658
Share-based compensation	9	-	-	9,112	-	-	9,112
Net income (loss) and comprehensive income (loss)						(74,403,355)	(74,403,355)
Common shares repurchased	7	(7,407,404)	(16,788,362)	(13,211,638)	-	-	(30,000,000)
Balance, February 28, 2022		44,611,129	118,159,861	(6,219,911)	9,424,751	141,234,714	262,599,415
Balance, December 1, 2022		54,441,981	128,889,904	(6,255,159)	578,052	(81,381,982)	41,830,815
Net income (loss) and comprehensive income (loss)		-	-	-	-	(10,809,255)	(10,809,255)
Balance, February 28, 2023		54,441,981	128,889,904	(6,255,159)	578,052	(92,191,237)	31,021,560

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