NEXTLEAF SOLUTIONS LTD. Nextleaf Solutions Ltd.
Condensed Interim Consolidated Financial Statements
For the three months ended
December 31, 2021
Unaudited - Prepared by Management
(Expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The accompanying unaudited condensed interim consolidated financial statements of Nextleaf Solutions Ltd. ("the Company") for the three months ended December 31, 2021 and December 31, 2020, have been prepared by the management of the Company and approved by the Company's Audit Committee and the Company's Board of Directors.
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 an auditor has not reviewed the financial statements.
The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by CPA Canada for a review of the condensed interim financial statements by an entity's auditor.
Condensed Interim Consolidated Statements of Financial Position
Unaudited - Prepared by Management
(Expressed in Canadian Dollars)
As at December 31, 2021 and September 30, 2021
Note
December 31, | September 30, |
2021 | 2021 |
$ | $ |
Assets Current assets
Cash
Receivables and prepayments Inventory
1,818,042
915,385
3,9 4
1,057,997 1,221,174
1,799,972 1,824,066
4,676,011
3,960,625
Non-current assets
Deposits
Property and equipment Intangible assets
5 6
83,043 4,495,826 391,192 4,970,061
57,751 4,693,175 481,204 5,232,130
Total assets
9,646,072 9,192,755
Liabilities and shareholders' equity Current liabilities
Accounts payable and accrued liabilities Customer deposits
Lease liability - current Convertible debenture
9
2,420,280 2,476,946
42,500 42,500
5 7
35,300 35,300
1,457,735 3,955,815
2,852,122 5,406,868
Non-current liabilities
Lease liability Government loan
5 15
310,234 318,634
40,000 40,000
350,234
358,634
Total liabilities
4,306,049
5,765,502
Shareholders' equity
Share capital Reserves Deficit
8 8
25,084,645 22,341,574
4,150,389 4,085,276
(23,895,011)
(22,999,597)
Total shareholders' equity
Total liabilities and shareholders' equity
5,340,023 9,646,072
3,427,253 9,192,755
Nature of operations and going concern 1
Other receivables and contingency 16
Approved on behalf of the Board of Directors on February 28, 2022:
"Paul Pedersen"
Director
"Charles Ackerman"
Director
4
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
Unaudited - Prepared by Management
(Expressed in Canadian Dollars)
For the three months ended December 31, 2021, and December 31, 2020
Three months ended
December 31, | December 31, | ||
2021 | 2020 | ||
Note | $ | $ | |
Revenue | |||
Cannabis concentrate sales | 423,782 | 1,256,589 | |
Product sales | 725,565 | - | |
1,149,347 | 1,256,589 | ||
Cost of sales | 805,928 | 1,197,000 | |
Gross margin | 343,419 | 59,589 | |
Expenses | |||
Accretion/interest on convertible debenture | 7 | 252,953 | - |
Administrative expenses | 81,913 | 86,438 | |
Amortization | 6 | 90,012 | 87,252 |
Depreciation | 5 | 3,340 | 3,340 |
Finance costs, net | 5 | 8,778 | 6,761 |
Investor relations and marketing | 228,123 | 118,424 | |
Professional fees and consulting | 9 | 258,155 | 184,712 |
Research and operational supplies | 15,947 | 24,493 | |
Share-based payments | 8,9 | - | 51,554 |
Salaries and fees | 9 | 346,572 | 341,870 |
(1,285,793) | (904,844) | ||
Government assistance | 15 | 22,473 | 57,798 |
Loss provision on receivables | 16 | - | (124,053) |
22,473 | (66,255) | ||
Loss and comprehensive loss for the period | (919,901) | (911,510) | |
Loss per share | |||
Weighted average number of common shares outstanding: | |||
Basic # | 126,917,098 | 120,809,447 | |
Diluted # | 126,917,098 | 120,809,447 | |
Basic loss per share | (0.01) | (0.01) | |
Diluted loss per share | (0.01) | (0.01) | |
5 |
Condensed Interim Consolidated Statements of Cash Flows
Unaudited - Prepared by Management
(Expressed in Canadian Dollars)
For the three months ended December 31, 2021 and December 31, 2020
December 31, | December 31, | |
2021 | 2020 | |
Note | $ | $ |
(919,901) | (911,510) | |
252,953 | - | |
90,012 | 87,252 | |
150,943 | 226,341 | |
8,778 | 6,761 | |
- | 51,554 | |
- | 11,200 | |
- | 124,053 | |
163,177 | 537,485 | |
71,771 | 184,809 | |
(25,292) | - | |
50,894 | (906,254) | |
(156,665) | (588,309) | |
(108,831) | (84,247) | |
- | (2,732) | |
(108,831) | (86,979) | |
(17,178) | (16,278) | |
(1,647,340) | - | |
2,832,671 | - | |
1,168,153 | (16,278) | |
902,657 | (691,566) | |
915,385 | 988,675 | |
1,818,042 | 297,109 | |
6 |
Operating activities | |
Loss for the period | |
Adjustments for: | |
Accretion/interest on convertible debenture | |
Amortization | |
Depreciation | 5 |
Finance costs | |
Share-based payments | |
Shares issued for services | |
Loss provision on receivables | |
Non-cash working capital items: | |
Receivables and prepayments | |
Inventory | |
Deposits | |
Accounts payable and accrued liabilities | |
Investing activities | |
Purchases of property and equipment | |
Payments for intangible assets | |
Financing activities | |
Lease payments | 5 |
Repayment of convertible debenture | 7 |
Issuance of units/common shares, net of share issue costs | |
Change in cash | |
Cash, beginning of period | |
Cash, end of period | |
Supplemental cash flow information | 11 |
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Nextleaf Solutions Ltd. published this content on 25 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2022 16:46:27 UTC.
