Cafe : Quarterly Report - COFE - June 30 2022

CAFÉ HOLDINGS, INC.

Condensed Consolidated Quarterly Financial Statements and Footnotes

June 30, 2022

(unaudited)

CAFÉ HOLDINGS INC.

(f/k/a The Coffeesmiths Collective, Inc.)

and Subsidiaries

Consolidated Balance Sheets

(unaudited)

			June 30,				December 31,
ASSETS			2022					2021
Current assets:
Cash	$	20,008	$	-
Prepaid expense			2,917					-
Other receivables			234,834					-
Assets attributable to disputed operations			-					3,217,090
Total current assets			257,759					3,217,090
Other non-current receivable			1,094,683					-
Total assets		$	1,352,442			$	3,217,090
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Loan from shareholder	$	87,486	$	200,000
Liabilities attributable to discontinued operations			15,633,489					15,633,489
Accounts payable and accrued expenses			331,124					622,000
Liabilities attributable to disputed operations			-					2,257,489
Total current liabilities			16,052,099					18,712,978
Total liabilities			16,052,099					18,712,978
Commitments and contingencies (Note 9)			-					-
Shareholders' deficit:
Common stock, $0.001 par value, 250,000,000 shares authorized, 189,827,928 and
189,827,928 shares issued and outstanding, at June 30, 2022 and December 31, 2021,
respectively, and 20,179,231 and 20,179,231 shares conditionally issuable, at
June 30, 2022 and December 31, 2021, respectively			210,007					210,007
Additional paid-in capital			3,699,194					3,699,194
Class A ordinary shares of DEPT-UK (25,000,000 shares authorized, £1 par value,
0 and 0 shares issued and outstanding as of June 30, 2022 and December 31, 2021,
respectively)			-					-
Class B ordinary shares of DEPT-UK (10,000,000 shares authorized, £1 par value,
0 and 0 shares issued and outstanding as of June 30, 2022 and December 31, 2021,
respectively)			-					-
Accumulated other comprehensive loss			91,063					91,063
Accumulated deficit			(42,341,888)					(43,138,119)
Total Café Holdings, Inc. shareholders' deficit			(38,341,624)					(39,137,855)
Non-controlling interest:
Preference shares of DEPT-UK (25,000,000 shares authorized, £1 par value,
20,431,502 and 20,431,502 shares issued and outstanding as of June 30, 2022
and December 31, 2021, respectively)			23,158,096					23,158,096
Non-controlling interest			483,871					483,871
Total liabilities and shareholders' deficit	$	1,352,442			$	3,217,090

See accompanying notes to unaudited condensed consolidated financial statements.

CAFÉ HOLDINGS INC.

(f/k/a The Coffeesmiths Collective, Inc.)

and Subsidiaries

Condensed Consolidated Statements of Operations

For the Six Months Ended June 30,

(unaudited)

		2022			2021
Revenue, net	$	-	$	-
Operating expenses		431,011			-
Operating loss		(431,011)			-
Other income (expense)
Gain on settlement		1,227,242			-
Net income	$	796,231	$	-
Net loss per share	$	0.00	$	-
Weighted average number of shares
outstanding		189,827,928			189,827,928

See accompanying notes to unaudited condensed consolidated financial statements.

CAFÉ HO LDINGS INC .

(f/k/a The Coffe esmiths Collective , Inc.)

and Subsidiaries

Conde nsed Consolidated State me nt of Shareholders' Deficit

June 30, 2022

(un au di te d)

Accumulat ed

Ot her

																																	Compre-
																							Common Stock			Addit ional				hensive		Non-
		Class A Ordinary Stock			Class B Ordinary Stock			Common Stock		Issuable				Paid-in				Income		Cont rolling			Accumulat ed			T ot al
		Quant it y			Amount				Quant it y			Amount			Quant it y			Amount			Quant it y		Amount			Capital				(Loss)		Int erest			Deficit			Equit y
Balance, December 31, 2020		-			$	-				-			$	-			187,835,928			$ 189,828			20,179,231		$	20,179			$3,699,194			$	91,063		$ 23,641,967			$(42,316,119)			$ (14,673,888)
Net loss for the period ended
June 30, 2021	-				-		-				-	-	-		-			-	-				-	-	-	-
Balance, June 30, 2021		-			$	-				-			$	-			187,835,928			$ 189,827			20,179,231		$	20,179			$3,699,194			$	91,063		$ 23,641,967			$(42,316,119)			$ (14,673,888)
Balance, December 31, 2021	-	$	-		-	$	-	187,835,928	$ 189,827		20,179,231	$	20,179	$3,699,194	$	91,063	$ 23,641,967	$(43,138,119)	$ (15,495,889)
Net loss for the period ended
June 30, 2022	-				-		-				-	-	-		-			-	-				-	-	796,231	796,231
Balance, June 30, 2022		-			$	-			-			$	-			187,835,928			$ 189,827			20,179,231		$	20,179			$3,699,194		$	91,063		$ 23,641,967			$(42,341,888)		$ (14,699,658)

See accompanying notes to unaudited condensed consolidated financial statements.

CAFÉ HOLDINGS INC.

(f/k/a The Coffeesmiths Collective, Inc.)

and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30,

(unaudited)

		2022			2021
Cash flows from operating activities:
Net income attributable to common shareholders	$	796,231	$	-
Adjustments to reconcile net income before taxes and non-controlling interest to
net cash provided by operations:
Assets attributable to disputed operations		3,217,090			-
Liabilities attributable to disputed operations		(2,257,489)			-
Changes in operating assets and liabilities:
Prepaid expense		(2,917)			-
Other receivables		(234,834)			-
Other receivables, non-current portion		(1,094,683)			-
Accounts payable		(290,877)			-
Net cash provided by operating activities		132,521			-
Cash flows from (used in) financing activities:
Repayment on shareholder loan		(112,514)			-
Net cash used in financing activities		(112,514)			-
Net increase in cash		20,008			-
Cash at beginning of period		-			-
Cash at end of period	$	20,008	$	-
Supplemental disclosure of cash flow information:
Cash paid for interest	$	-	$	-
Cash paid for taxes	$	-	$	-

See accompanying notes to unaudited condensed consolidated financial statements.