Cielo Waste : July 31 2021 Financial Statements

CIELO WASTE SOLUTIONS CORP.

Unaudited Condensed Consolidated Interim Financial Statements

For the three months ended July 31, 2021 and 2020

TO THE SHAREHOLDERS OF CIELO WASTE SOLUTIONS CORP.

In accordance with National Instrument 51-102, Part 4, subsection 4.3(3)(a), the Company discloses the unaudited condensed consolidated interim financial statements for the period ended July 31, 2021 were prepared by management and were not reviewed by Cielo's independent auditor.

Cielo Waste Solutions Corp.

Unaudited Condensed Consolidated Statements of Financial Position

(In Canadian Dollars)	Note	July 31, 2021	April 30, 2021
Assets
Current Assets
Cash		14,105,580	17,176,212
Accounts receivable		717,660	530,460
Prepaid expenses		1,094,122	376,500
Inventory		543,975	342,225
		16,461,337	18,425,397
Non-current Assets
Property, plant and equipment	5	29,714,682	26,623,622
Right-of-use assets		173,371	143,236
		29,888,053	26,766,858
Total Assets		46,349,390	45,192,255
Liabilities
Current Liabilities
Accounts payable and accrued liabilities		3,533,460	4,134,553
Other current liabilities	14	3,000,000	-
Deferred revenue and fees		3,750,000	3,750,000
Short-term warrant liability	8	-	10,169,563
Current portion of lease liability		100,095	59,307
Current portion of long-term debt	6	1,000,000	1,000,000
		11,383,555	19,113,423
Non-current Liabilities
Royalty payable		889,219	889,219
Lease liability		109,170	120,757
Long term loans payable	6	60,000	60,000
Convertible debentures	7	-	503,585
		1,058,389	1,573,561
Total Liabilities		12,441,944	20,686,984
Shareholders' Equity
Share capital	8	92,074,928	79,672,607
Contributed surplus	8	3,317,146	3,278,486
Deficit		(61,484,628)	(58,445,822)
Total Shareholders' Equity		33,907,446	24,505,271
Total Liabilities and Shareholders' Equity		46,349,390	45,192,255

Going concern (note 3), Commitments (note 12), and Subsequent events (note 14)

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

Cielo Waste Solutions Corp.

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Cielo Waste Solutions Corp.

Unaudited Condensed Consolidated Statements of Loss and Comprehensive Loss

		Three months ended July 31,
(In Canadian Dollars)	Note	2021	2020
Restated (note 13)
Incidental sales		-	4,200
Cost of sales		-	(4,200)
Gross profit		-	-
Expenses and other income
Financing costs	9	121,613	188,808
General and administrative		1,556,488	539,568
Research and development		1,682,280	143,060
Share based compensation	8	95,465	202,168
Depreciation and amortization		57,710	45,968
Fair value change of warrant	8	(492,378)	156,641
Other (income) expenses		17,628	-
Loss before income taxes		(3,038,806)	(1,276,213)
Income taxes		-	-
Net and comprehensive loss		(3,038,806)	(1,276,213)
Loss per share
Basic		(0.005)	(0.005)
Diluted		(0.005)	(0.005)

Restatement of comparative periods (note 13)

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

Cielo Waste Solutions Corp.

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Cielo Waste Solutions Corp.

Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity

				Total
		Contributed		Shareholders'
(In Canadian Dollars)	Share Capital	Surplus	Deficit	Equity
Balance, April 30, 2020 (Restated - Note 13)	20,941,031	3,725,559	(18,736,848)	5,929,742
Shares issued on debt conversion	1,365,000	-	-	1,365,000
Shares issued on prepaid interest and warrants	416,480	397,188	-	813,668
on convertible debenture issuance
Fair value of finders' warrants	-	56,334	-	56,334
RSU vesting	-	55,926	-	55,926
Share issuance costs	(1,995)	-	-	(1,995)
Share based compensation	-	146,242	-	146,242
Net loss for the period	-	-	(1,276,213)	(1,276,213)
Balance, July 31, 2021	22,720,516	4,381,249	(20,013,061)	7,088,704
Balance, April 30, 2021	79,672,607	3,278,486	(58,445,822)	24,505,271
Shares issued on debt conversion	709,500	-	-	709,500
Shares issued for warrant exercise	11,631,157	(35,009)	-	11,596,148
Shares issued for option exercise	66,296	(21,796)	-	44,500
Share based compensation	-	95,465	-	95,465
Share issuance costs	(4,632)	-	-	(4,632)
Net loss for the period	-	-	(3,038,806)	(3,038,806)
Balance, July 31, 2021	92,074,928	3,317,146	(61,484,628)	33,907,446

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

Cielo Waste Solutions Corp.

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