SOL Global Investments : 2023 Q2 Financial Statement

SOL Global Investments Corp.

UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

For the three and six-month period ended May 31, 2023 and the three and six-month period ended May 31, 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	May 31	November 30,
As at		2023	2022
		$	$
ASSETS
Cash		354,365	71,924
Other receivables	6	2,173,204	318,335
Investments	4	132,223,436	145,023,703
Convertible debentures	4	324,263	2,260,370
Prepaid expenses	5	46,382	32,732
Promissory notes receivable	4	1,908,019	2,519,842
Other assets		-	342,278
Income tax recovery	10	3,778,724	-
Right of use asset	16	1,631,030	1,922,948
Leasehold Improvements	17	613,093	632,661
Total assets		143,052,516	153,124,793
LIABILITIES
Accounts payable and accrued liabilities	11	19,024,121	17,573,512
Severance payable	12	28,324,998	29,049,126
Promissory notes payable	13	1,346,646	1,312,107
Lease obligation	16	2,669,546	2,616,169
Income tax payable	10	41,335,361	39,835,361
Term Loan	14	9,577,726	9,081,370
Debenture	14	11,159,926	11,826,333
Total Liabilities		113,438,324	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		(93,598,605)	(81,381,982)
Total shareholders' equity		29,614,192	41,830,815
Total liabilities and shareholders' equity		143,052,516	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 (note 15)

Subsequent events (note 21)

On behalf of the Board of Directors, on July 25, 2023:

/s/ Jason Batista	/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	Six-month	Six-month
			period	period	period	period
			ended	ended	ended	ended
		Note	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
			$	$	$	$
	Revenue
	Net change in fair value of investments	4	2,453,918	(97,912,198)	(10,356,552)	(179,503,841)
	Interest and other income	4	306,747	1,195,760	987,459	1,721,127
	Foreign exchange (loss) gain		(3,285)	524,142	(18,312)	480,430
	Total revenue		2,757,380	(96,192,296)	(9,387,405)	(177,302,284)
	Expenses
	Salaries and consulting	18	560,089	4,507,416	1,239,198	5,884,550
	Severance expense	12	-	24,000,000	-	24,000,000
	Share-based compensation	9	-	32,336	-	41,449
	General and administrative		159,491	845,127	798,722	1,692,238
	Interest expense	14	562,464	440,762	1,156,233	1,795,839
	Financing expense		28,807	1,389,272	555,589	2,507,480
	Professional fees and transaction costs		995,654	666,619	1,122,190	1,537,820
	Total expenses		2,306,505	31,881,532	4,871,932	37,459,376
	Income (loss) before income taxes		450,875	(128,073,828)	(14,259,337)	(214,761,660)
	Deferred income tax (recovery) expense		-	-	-	-
	Current income taxes(recovery) expense		1,619,482	(41,405,938)	(2,042,714)	(53,690,415)
	Net income (loss) and comprehensive		(1,168,607)	(86,667,890)	(12,216,623)	(161,071,245)
	income (loss)
	Net income (loss) per share, basic	8	(0.02)	(1.90)	(0.22)	(3.54)
	Net income (loss) per share, diluted	8	(0.02)	(1.90)	(0.22)	(3.54)
	Weighted average number of shares	8	54,441,981	45,695,430	54,441,981	45,485,988
	outstanding - basic
	Weighted average number of shares	8	54,441,981	45,695,430	54,441,981	45,485,988
	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	-	-	18,226	-	-	18,226
New DSUs issued		-	-	-	23,222	-	23,222
DSU/PSU exercised		5,042,000	2,867,621	-	(2,867,621)	-	-
Net income (loss) and comprehensive income (loss)						(161,071,245)	(161,071,245)
Common shares repurchased	7	(7,407,404)	(16,788,362)	(13,211,638)	-	-	(30,000,000)
Balance, May 31, 2022		49,653,129	121,027,482	(6,210,797)	6,580,352	54,566,824	175,963,861
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)		-	-	-	-	(12,216,623)	(12,216,623)
Balance, May 31, 2023		54,441,981	128,889,904	(6,255,159)	578,052	(93,598,605)	29,614,192

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