Cognetivity Neurosciences : Q1 2023

COGNETIVITY NEUROSCIENCES LTD.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the periods ended April 30, 2022 and 2021

(EXPRESSED IN CANADIAN DOLLAR)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS

The accompanying unaudited condensed interim financial statements of Cognetivity Neurosciences Ltd. for the three months ended April 30, 2022, 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 indication that an auditor has not reviewed the financial statements.

The accompanying unaudited interim 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 interim financial statements in accordance with standards established by the Canadian Institute of Chartered Professional Accountants for a review of the interim financial statements by an entity's auditor.

Cognetivity Neurosciences Ltd.

Interim Condensed Consolidated Statements of Financial Position (Expressed in Canadian dollars)

As at	Note	April 30, 2022	January 31, 2022
ASSETS		$	$
Current
Cash		270,172	1,377,039
Interest and tax receivable		178,772	210,292
Loan receivable	5	223,478	221,476
Prepaids		129,534	47,303
Total Current Assets		801,956	1,856,110
Equipment	6	73,803	63,395
Intangible assets	7	101,114	85,325
TOTAL ASSETS		976,873	2,004,830
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities		1,771,927	1,753,793
Due to related parties	10	32,414	2,360,787
Share to be issued	13	88,534	146,020
Loan Facility	11	-	1,294,608
		1,892,875	5,555,208
Non-Current Liabilities	11
Loan Facility	1,233,002	-
Due to related parties	10	2,125,000	2,125,000
Total Liabilities		5,250,877	7,680,208
SHAREHOLDERS' EQUITY	9
Common shares	15,604,945	12,879,760
Reserves	9	5,352,261	5,393,046
Deficit		(25,449,444)	(23,964,858)
Accumulative other comprehensive income (loss)		218,234	16,674
Total Shareholders' Equity (Deficiency)		(4,274,004)	(5,675,378)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	976,873	2,004,830

Nature of operations and going concern (Note 1)

Subsequent events (Note 18)

Approved on Behalf of the Board of Directors on June 29, 2022:

"Sina Habibi"	Director	"David Velisek"	Director
Sina Habibi		David Velisek

The accompanying notes are integral to these interim condensed consolidated financial statements

Cognetivity Neurosciences Ltd.

Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Expressed in Canadian dollars)

		For the Periods Ended April 30,
	Notes	2022	2021
		$	$
Expenses
Accretion expenses	8	22,317	5,521
Consulting fees		334,614	170,932
Depreciation	7	6,477	4,790
Foreign exchange loss (gain)		(12,453)	184
General and administration		56,336	25,524
Marketing and advertising		239,922	269,302
Professional fees		55,703	18,147
Rent		48,972	31,735
Research and development		110,057	129,768
Salaries and benefits		673,109	313,184
Share-based payment	9	(70,783)	41,279
Transfer agent and regulatory		16,677	11,453
Travel		19,701	2,182
		(1,500,649)	(1,024,001)
Other Income (Expense)
Interest income (expense)		2,005	(2,348)
Other income	12	14,058	149,732
Net loss		(1,484,586)	(876,617)
Other Comprehensive Loss (Income)
Items that will be reclassified subsequently to loss (income)
Unrealized gain (loss) on foreign exchange translation		201,560	13,565
Comprehensive Loss		(1,283,026)	(863,052)
Basic and diluted loss per common share		(0.02)	(0.01)
Weighted average number of common shares outstanding -
Basic and diluted		73,057,477	70,720,605

The accompanying notes are integral to these interim condensed consolidated financial statements

Cognetivity Neurosciences Ltd.

Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Deficiency) (Expressed in Canadian dollars)

	Common Share	Equity
			Portion of				Shareholders'
	Number of		Convertible				Equity
	Shares		Debentures	Reserves	AOCI	Deficit	(Deficiency)
	#	$	$	$	$	$	$
Balance - January 31, 2021	70,487,707	9,873,571	34,851	1,821,894	(29,874)	(10,837,531)	862,911
Shares issued from warrant exercised	334,946	149,415	-	(45,120)	-	-	104,294
Shares issued from option exercised	50,000	38,318	-	(16,818)	-	-	21,500
Shares issued for services	115,132	75,000	-	0	-	-	75,000
Stock options granted and vested	-	-	-	35,966	-	-	35,966
Issuance of restricted share units	-	-	-	5,313	-	-	5,313
Net loss and comprehensive loss for the period	-	-	-	-	13,565	(876,617)	(863,052)
Balance - April 30, 2021	70,987,785	10,136,304	34,851	1,801,235	(16,309)	(11,714,148)	241,933
Balance - January 31, 2022	79,402,556	12,879,760	-	5,393,046	16,674	(23,964,858)	(5,675,378)
Shares issued from private placement, net of share issuance costs	4,812,416	2,454,332	-	192,497	-	-	2,646,829
Shares issued from debt settlement	48,462	15,750	-	-	-	-	15,750
Shares issued for services	217,656	92,603	-	-	-	-	92,603
Stock options granted and vested	-	-	-	(48,459)	-	-	(48,459)
Conversion of restricted share units to Common shares	300,000	162,500	-	(162,500)	-	-	-
Net loss and comprehensive loss for the period	-	-	-	-	201,560	(1,484,586)	(1,283,026)
Balance - April 30, 2022	84,781,090	15,604,945	-	5,352,261	218,234	(25,449,444)	(4,274,004)

The accompanying notes are integral to these interim condensed consolidated financial statements