Psyched Wellness : Q2 Interim Financial Report

Psyched Wellness Ltd.

Unaudited Condensed Interim Consolidated Financial Statements

For the Six Months Ended May 31, 2022 and 2021

(Expressed in Canadian Dollars)

Notice to Reader

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the condensed interim consolidated financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements have been prepared by and are the responsibility of the management of Psyched Wellness Ltd.

The Company's independent auditor has not performed a review of these unaudited condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

Psyched Wellness Ltd.

Unaudited Condensed Interim Consolidated Statements of Financial Position

(Expressed in Canadian Dollars)

		As at	As at
		May 31,	November 30,
		2022	2021
Assets	Notes	$	$
Current Assets
Cash		4,162,784	5,530,353
Accounts receivable	4	10,499	55,524
Inventories		45,617	-
Prepaid expenses and deposits	5	72,543	319,575
Total Current Assets		4,291,443	5,905,452
Property and equipment	6	25,714	-
Intangible assets	7	30,333	28,583
Goodwill	8	448,611	448,611
Total Assets		4,796,101	6,382,646
Liabilities
Accounts payable and accrued liabilities	9,14	118,210	178,149
Total Liabilities		118,210	178,149
Shareholders' Equity
Share capital	10	20,938,245	20,451,245
Reserve for restricted share units	11	359,471	-
Contributed surplus	12	2,029,168	1,882,310
Reserve for warrants	13	3,299,362	3,302,535
Accumulated deficit		(21,948,355)	(19,431,593)
Total Shareholders' Equity		4,677,891	6,204,497
Total Liabilities and Shareholders' Equity		4,796,101	6,382,646
Nature of operations and going concern	1
Contingencies	18
Subsequent events	20

Approved on behalf of the Board of Directors:
	"Jeffrey Stevens"		"Janeen Stodulski"
	Jeffrey Stevens, Director	Janeen Stodulski, Director

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

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Psyched Wellness Ltd.

Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

For the Three and Six Months Ended May 31, 2022 and 2021

(Expressed in Canadian Dollars)

		Three months	Three months	Six months	Six months
		ended	ended	ended	ended
		May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Expenses	Notes	$	$	$	$
Stock-based compensation	11,12,14	290,183	486,504	993,329	692,899
Research costs		541,189	138,203	689,007	230,328
Management salaries and consulting fees	14	194,211	197,795	398,221	530,918
Professional fees	14	119,297	117,274	243,309	271,850
Advertising and promotion		96,946	480,750	186,032	913,689
Office and general		74,246	34,231	148,833	94,632
Regulatory compliance		41,505	9,546	49,166	32,815
Total Expenses		(1,357,577)	(1,464,303)	(2,707,897)	(2,767,131)
Other Income
Gain on disposals of properties	17	193,289	-	193,289	-
Property taxes		(413)	(412)	(6,039)	(3,701)
Foreign exchange gain (loss)		1,199	(7,280)	712	(12,438)
Total Other Income (Losses)		194,075	(7,692)	187,962	(16,139)
Net Loss and Comprehensive Loss		(1,163,502)	(1,471,995)	(2,519,935)	(2,783,270)
Weighted Average Number of Outstanding Shares
- Basic and diluted		135,239,695	103,156,539	133,830,354	118,988,302
Loss per Share
- Basic and diluted	10	(0.019)	(0.014)	(0.019)	(0.023)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

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Psyched Wellness Ltd.

Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders' Equity

For the Six Months Ended May 31, 2022 and 2021

(Expressed in Canadian Dollars)

				R e se rve for
		Numbe r of		R e st rict e d	Cont ribut e d	R e se rve for	Accumulat e d
		Share s	Share Capit al	Share Unit s	Surplus	W arrant s	De ficit	T ot al
	Not e s	#	$	$	$	$	$	$
B alance , Nove mbe r 30, 2020		104, 512, 930	16, 902, 091	-	1, 090, 334	117, 383	(14, 933, 777)	3, 176, 031
Issuance of shares from private placement	10,13	21,300,000	3,930,231	-	-	2,672,769	-	6,603,000
Issuance of agent units from private placement	10,13	1,095,365	202,114	-	-	137,449	-	339,563
Issuance of broker warrants from private placement	10,13	-	-	-	-	1,287,542	-	1,287,542
Share issuance costs	10,13	-	(1,239,959)	-	-	(843,239)	-	(2,083,198)
Stock-based compensation	12	-	-	-	692,899	-	-	692,899
Exercise of stock options	10,13	1,787,000	347,904	-	(146,704)	-	-	201,200
Exercise of broker warrants	10,13	1,329,200	202,289	-	-	(69,369)	-	132,920
Net loss for the period		-	-	-	-	-	(2,783,270)	(2,783,270)
B alance , May 31, 2021		130, 024, 495	20, 344, 670	-	1, 636, 529	3, 302, 535	(17, 717, 047)	7, 566, 687
B alance , Nove mbe r 30, 2021		130, 589, 695	20, 451, 245	-	1, 882, 310	3, 302, 535	(19, 431, 593)	6, 204, 497
Stock-based compensation - RSUs	11	-	-	846,471	-	-	-	846,471
Issuance of shares on vesting of RSUs	10,11	4,650,000	487,000	(487,000)	-	-	-	-
Stock-based compensation	12	-	-	-	146,858	-	-	146,858
Expiry of warrants	13	-	-	-	-	(3,173)	3,173	-
Net loss for the period		-	-	-	-	-	(2,519,935)	(2,519,935)
B alance , May 31, 2022		135, 239, 695	20, 938, 245	359, 471	2, 029, 168	3, 299, 362	(21, 948, 355)	4, 677, 891

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

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