Cafe : COFE - March 31 2022 - Quarterly Financial Report

CAFÉ HOLDINGS, INC.

Condensed Consolidated Quarterly Financial Statements and Footnotes

March 31, 2022

(unaudited)

CAFÉ HOLDINGS INC.

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

and Subsidiaries

Consolidated Balance Sheets

(unaudited)

				March 31,					December 31,
ASSETS			2022						2021
Current assets:
Cash	$	152,137	$	-
Prepaid expense			2,917						-
Other receivables			234,834						-
Assets attributable to disputed operations			-						3,217,090
Total current assets				389,888						3,217,090
Other non-current receivable			1,120,000						-
Total assets		$	1,509,888			$	3,217,090
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Loan from shareholder	$	151,254	$	200,000
Liabilities attributable to discontinued operations			15,633,489						15,633,489
Accounts payable and accrued expenses			331,414						622,000
Liabilities attributable to disputed operations			-						2,257,489
Total current liabilities			16,116,156						18,712,978
Total liabilities			16,116,156						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 March 31, 2022 and December 31, 2021,
respectively, and 20,179,231 and 20,179,231 shares conditionally issuable, at
March 31, 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 March 31, 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 March 31, 2022 and December 31, 2021,
respectively)			-						-
Accumulated other comprehensive loss			91,063						91,063
Accumulated deficit			(42,248,499)						(43,138,119)
Total Café Holdings, Inc. shareholders' deficit			(38,248,235)						(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 March 31, 2022
and December 31, 2021, respectively)			23,158,096						23,158,096
Non-controlling interest			483,871						483,871
Total liabilities and shareholders' deficit	$	1,509,888			$	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 Three Months Ended March 31,

(unaudited)

		2022			2021
Revenue, net	$	-	$	-
Operating expenses		301,505			-
Operating loss		(301,505)			-
Other income (expense)
Gain on settlement		1,191,125			-
Net income	$	889,620	$	-
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 Coffee smiths Colle ctive , Inc.)

and Subsidiarie s

C onde nsed Consolidate d Statement of Shareholde rs' De ficit

March 31, 2022 (u nau 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					P aid-in					Income			Cont rolling				Accumulat ed		T otal
		Quant it y			Amount			Quant it y			Amount			Quantit y			Amount				Quant it y			Amount				Capit al					(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		$(42,725,119)		$ (15,082,888)
Net loss for the period ended
March 31, 2021	-				-		-				-		-	-	-				-		-					-	-	-	-
Balance, March 31, 2021		-			$	-				-			$	-				187,835,928			$ 189,827				20,179,231			$	20,179				$3,699,194			$	91,063			$ 23,641,967			$(42,725,119)		$ (15,082,888)
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
March 31, 2022	-				-		-				-		-	-	-				-		-					-	-	889,620	889,620
Balance, March 31, 2022		-		$	-				-		$	-			187,835,928			$ 189,827			20,179,231			$	20,179				$3,699,194			$	91,063		$ 23,641,967			$(42,248,499)		$ (14,606,269)

See accompanying notes to unaudited condensed consolidated financial statem ents.

CAFÉ HOLDINGS INC.

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

and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31,

(unaudited)

		2022			2021
Cash flows from operating activities:
Net income attributable to common shareholders	$	889,620	$	-
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		(1,120,000)			-
Accounts payable		(290,587)			-
Net cash provided by operating activities		200,883			-
Cash flows from (used in) financing activities:
Repayment on shareholder loan		(48,746)			-
Net cash used in financing activities		(48,746)			-
Net increase in cash		152,137			-
Cash at beginning of period		-			-
Cash at end of period	$	152,137	$	-
Supplemental disclosure of cash flow information:
Cash paid for interest	$	-	$	-
Cash paid for taxes	$	-	$	-

See accompanying notes to unaudited condensed consolidated financial statements.