Thunderbird Entertainment : Q1 2022 Interim Financial Statements

Thunderbird Entertainment Group Inc.

Unaudited Interim Condensed Consolidated

Financial Statements

For the Three Months Ended September 30, 2021 and 2020

Notice of No Auditor Review of Interim Financial Statements

In accordance with National Instrument 51-102, Continuous Disclosure Obligations, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these interim financial statements, they must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor.

The Company's external auditors, PricewaterhouseCoopers LLP, have not performed a review of these interim financial statements.

THUNDERBIRD ENTERTAINMENT GROUP INC.

Unaudited Interim Condensed Consolidated Statements of Financial Position

		As at September		As at June 30,
(in thousands of Canadian dollars)	Notes	30, 2021		2021
ASSETS
Current
Cash and cash equivalents	$	24,754	$	22,420
Trade receivables and other	5	74,669		62,939
Income taxes recoverable		1,206		1,320
Current portion of lease receivable	11	169		167
		100,798		86,846
Long-term trade receivables and other	5	2,368		2,845
Investment in content	6	17,848		21,933
Deferred tax assets		7,807		7,871
Property and equipment	7	26,929		25,957
Long-term lease receivable	11	1,303		1,344
Goodwill and intangible assets	8	13,280		13,348
Total Assets	$	170,333	$	160,144
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities	$	10,329	$	8,400
Income taxes payable		1,427		1,649
Interim production financing	9	38,431		32,845
Deferred revenue	15	20,779		21,198
Current portion of lease obligations	11	5,316		4,718
Redeemable preferred shares	12	576		576
		76,858		69,386
Long-term lease obligations	11	20,592		20,303
Deferred tax liabilities		6,573		6,525
Total Liabilities		104,023		96,214
Shareholders' Equity
Preferred shares	12	82		82
Common shares	13	67,879		67,528
Accumulated other comprehensive income		183		177
Contributed surplus	13	4,561		4,424
Deficit		(6,395)		(8,281)
Total Shareholders' Equity		66,310		63,930
Total Liabilities and Shareholders' Equity	$	170,333	$	160,144
Commitments and Contingencies - Note 19
Subsequent Events - Note 23
Approved on behalf of the Board:
"Jennifer Twiner McCarron"	"Marni Wieshofer"
Jennifer Twiner McCarron, Director	Marni Wieshofer, Lead Director

See accompanying notes to the interim condensed consolidated financial statements.

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THUNDERBIRD ENTERTAINMENT GROUP INC.

Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income

		Three months ended September 30,
(in thousands of Canadian dollars except for share data)	Notes		2021		2020
Revenue	15	$	35,072	$	19,790
Expenses
Direct operating	21		24,843		11,681
Distribution and marketing			218		179
General and administrative	21		4,079		3,582
Share-based compensation	13		275		119
Amortization of property and equipment and intangible assets	21		2,557		2,314
Finance costs, net	22		582		209
Foreign exchange gain			(246)		(141)
			32,308		17,943
Income before income taxes			2,764		1,847
Income tax expense			878		378
Net income from continuing operations			1,886		1,469
Loss from discontinued operation	4		-		(80)
Loss from discontinued operation			-		(80)
Net income for the period			1,886		1,389
Other comprehensive income (loss)
Items that may be subsequently reclassified to net income (loss)
Foreign currency translation adjustment			6		(3)
Loss on translation of discontinued operation	4		-		(44)
			6		(47)
Comprehensive income for the period		$	1,892	$	1,342
Basic income per share - continuing operations	13	$	0.039	$	0.031
Basic loss per share - discontinued operation	13	$	-	$	(0.002)
Total basic income per share		$	0.039	$	0.029
Diluted income per share - continuing operations	13	$	0.037	$	0.030
Diluted loss per share - discontinued operation	13	$	-	$	(0.002)
Total diluted income per share		$	0.037	$	0.028

See accompanying notes to the interim condensed consolidated financial statements.

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THUNDERBIRD ENTERTAINMENT GROUP INC.

Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity

						Accumulated
						other
		Preferred		Common		comprehensive		Warrants		Contributed
(in thousands of Canadian dollars)	Notes	shares		shares		income		reserve		surplus		Deficit		Total
Balance at June 30, 2020	$	132	$	62,634	$	259	$	168	$	4,486	$	(14,018)	$	53,661
Comprehensive income (loss)		-		-		(47)		-		-		1,389		1,342
Share based compensation	13	-		-		-		-		119		-		119
Exercise of options	13	-		1,886		-		-		(626)		-		1,260
Exercise of warrants		-		7		-		(1)		-		-		6
Balance at September 30, 2020	$	132	$	64,527	$	212	$	167	$	3,979	$	(12,629)	$	56,388
Balance at June 30, 2021	$	82	$	67,528	$	177	$	-	$	4,424	$	(8,281)	$	63,930
Comprehensive income		-		-		6		-		-		1,886		1,892
Share-based compensation	13	-		-		-		-		275		-		275
Exercise of options	13	-		351		-		-		(138)		-		213
Balance at September 30, 2021	$	82	$	67,879	$	183	$	-	$	4,561	$	(6,395)	$	66,310

See accompanying notes to the interim condensed consolidated financial statements.

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