Halo Collective Inc. (formerly Halo Labs Inc.) Condensed Interim Consolidated Financial Statements
For the three and six months ended June 30, 2021 and 2020 Expressed in US dollars
Unaudited
Halo Collective Inc. (formerly Halo Labs Inc.)
Condensed Interim Consolidated Financial Statements
For the three and six months ended June 30, 2021 and 2020
Expressed in US dollars
Unaudited
Table of contents
Condensed Interim Consolidated Statements of Financial Position | 3 |
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss | 4 |
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity | 5 |
Condensed Interim Consolidated Statements of Cash Flow | 6 |
Notes to the Condensed Interim Consolidated Financial Statements | 7 |
2
Halo Collective Inc.
Condensed Interim Consolidated Statements of Financial Position
Unaudited, expressed in US dollars
June 30, 2021 December 31, 2020
Assets | |||
Current | |||
Cash | 5,945,479 | 2,758,119 | |
Restricted cash | Note 16 | 538,087 | 921,746 |
Accounts receivable | Note 8 | 3,919,049 | 1,785,372 |
Inventory | Note 9, 10 | 16,555,646 | 10,281,455 |
Biological assets | Note 9 | - | - |
Notes receivable | Note 11 | 1,330,919 | 9,629,553 |
Deposits and pre-paid expenses | Note 12 | 3,635,861 | 3,318,061 |
Total current assets | 31,925,041 | 28,694,306 | |
Long-term | |||
Property, plant and equipment | Note 13 | 19,735,893 | 16,230,987 |
Intangible assets and goodwill | Note 14 | 76,595,047 | 39,640,881 |
Investments and deposits | Note 6 | 15,818,906 | 3,188,071 |
Total long-term assets | 112,149,846 | 59,059,939 | |
Total assets | 144,074,887 | 87,754,245 | |
Liabilities | |||
Short-term liabilities | |||
Accounts payable and accrued liabilities | 8,931,849 | 8,662,179 | |
Debenture liability | Note 16 | 9,236,202 | - |
Other loans | Note 18 | 1,051,297 | 435,839 |
Income tax payable | Note 21 | 588,388 | 580,720 |
Sales & cultivation tax payable | Note 21 | 1,119,414 | 301,257 |
Total current liabilities | 20,927,150 | 9,979,995 | |
Long-term liabilities | |||
Debenture liability | Note 16 | - | 8,398,727 |
Lease liability | Note 7 | 5,425,309 | 3,157,069 |
Other loans | Note 18 | 6,462,732 | 6,598,912 |
Total long-term liabilities | 11,888,041 | 18,154,708 | |
Total Liabilities | 32,815,191 | 28,134,703 | |
Shareholders' equity | |||
Share capital | Note 17 | 199,897,189 | 136,827,655 |
Share capital reserve | Note 17 | 12,111,226 | 8,307,521 |
Convertible debenture equity reserve | Note 15 | 650,219 | 653,557 |
Equity reserve | Note 13 | 7,252,816 | 3,338,204 |
Accumulated other comprehensive income | 1,406,370 | 524,779 | |
Deficit | (110,058,124) | (90,032,174) | |
Total shareholders' equity | 111,259,696 | 59,619,542 | |
Total shareholders' equity and liabilities | 144,074,887 | 87,754,245 |
These notes are an integral part of the Condensed Interim Consolidated Financial Statements
Going concern Note 2
Commitments and contingencies Note 22
Subsequent events Note 23
Approved on behalf of the Board of Directors: | |
Kiran Sidhu | Philip van den Berg |
CEO and Director | CFO and Director |
3
Halo Collective Inc. | ||||||||
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss | ||||||||
Unaudited, expressed in US dollars | ||||||||
For the 3 months ending: | For the 6 months ending: | |||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||
Revenue | 9,135,887 | 5,242,961 | 19,074,990 | 9,692,059 | ||||
Cost of finished cannabis inventory sold | Note 9, 10 | 6,595,342 | 4,091,160 | 14,333,875 | 8,422,885 | |||
Gross profit, excluding fair value items | 2,540,545 | 1,151,801 | 4,741,115 | 1,269,174 | ||||
Unrealized fair value (gain) loss on growth of biological assets | Note 10 | (4,850) | - | (171,961) | - | |||
Realized fair value (gain) loss included in the cost of inventory sold | Note 10 | 342,923 | 124,926 | 754,828 | 414,479 | |||
Gross profit | 2,202,472 | 1,026,875 | 4,158,248 | 854,695 | ||||
General and administration | 2,095,046 | 678,929 | 3,712,838 | 1,111,500 | ||||
Salaries | 3,410,036 | 1,000,778 | 5,401,521 | 2,088,345 | ||||
Professional fees | 1,439,291 | 1,434,947 | 4,378,314 | 4,924,807 | ||||
Sales and marketing | 1,445,729 | 949,485 | 2,953,115 | 1,698,342 | ||||
Investor relations | 50,277 | 9,009 | 507,753 | 1,271,103 | ||||
Loss on settlements and contigencies | Note 17, 22 | (72,106) | 210,763 | (72,106) | 272,787 | |||
Share based compensation | Note 17 | 2,564,928 | 705,080 | 3,394,164 | 836,978 | |||
Accretion expense | 322,336 | 288,269 | 630,090 | 590,701 | ||||
Loss on intangible assets | Note 14 | - | 1,350,053 | - | 1,753,766 | |||
Depreciation | Note 13, 14 | 616,136 | 253,907 | 1,228,048 | 508,999 | |||
(Gain) loss on foreign exchange | 768,935 | 2,341 | 1,161,907 | (249,480) | ||||
Interest expense | Note 16, 18 | 812,943 | 296,779 | 1,181,364 | 630,018 | |||
Loss before income taxes | (11,251,079) | (6,153,465) | (20,318,760) | (14,583,171) | ||||
Deferred income tax (recovery) | Note 21 | - | 115,000 | - | 295,000 | |||
Net loss | (11,251,079) | (6,268,465) | (20,318,760) | (14,878,171) | ||||
Other comprehensive income | ||||||||
Unrealized (gain) loss on foreign currency translation | (212,070) | 201,883 | (709,630) | 295,661 | ||||
Comprehensive loss | (11,039,009) | (6,470,348) | (19,609,130) | (15,173,832) | ||||
Net loss per share, basic and diluted: | $ | (0.01) | $ | (0.01) | $ | (0.01) | $ | (0.04) |
Weighted average number of outstanding common shares, basic and | 1,972,343,981 | 429,610,021 | 1,793,910,497 | 373,282,250 | ||||
diluted: | ||||||||
These notes are an integral part of the Condensed Interim Consolidated Financial Statements |
4
Halo Collective Inc.
Consolidated Statements of Change in Shareholders' Equity
Unaudited, expressed in US Dollars
Convertible | |||||||||||||||||
conversion | Accumulated | ||||||||||||||||
Common shares | Common shares | Options | Warrants | Equity reserve | option | OCI | Deficit | Total | |||||||||
Shareholders' equity, December 31, 2019 | 280,271,315 | $ | 67,909,461 | $ | 1,649,617 | $ | 3,802,395 | $ | - | $ | 655,090 | $ | (589,124) | $ | (49,135,109) | $ | 24,292,330 |
Share issuance in private placements | 10,227,272 | 711,231 | - | - | - | - | - | - | 711,231 | ||||||||
Shares issued for acquisitions | 107,945,420 | 12,157,990 | - | - | - | - | - | - | 12,157,990 | ||||||||
Shares issued to retire debt | 9,090,909 | 900,002 | - | - | - | - | - | - | 900,002 | ||||||||
Shares issued as finders' fees | 8,187,692 | 759,215 | - | - | - | - | - | - | 759,215 | ||||||||
Shares issued on conversion of debenture | 23,076 | 10,601 | - | - | - | (1,533) | - | - | 9,068 | ||||||||
Share issue costs | - | (11,688) | - | - | - | - | - | - | (11,688) | ||||||||
Share-based compensation for services | 47,426,698 | 4,660,482 | - | 57,851 | - | - | - | - | 4,718,333 | ||||||||
Share-based compensation for staff | 4,562,214 | 451,525 | 831,908 | - | - | - | - | - | 1,283,433 | ||||||||
Shares issued on exercise of warrants and options | - | - | - | - | - | - | - | - | - | ||||||||
Shares issued on conversion of broker warrants | - | - | - | - | - | - | - | - | - | ||||||||
Forfeiture warrants and options | - | - | (142,851) | (73,859) | - | - | - | 216,710 | - | ||||||||
Net loss and other comprehensive loss | - | - | - | - | - | - | (295,661) | (14,878,171) | (15,173,832) | ||||||||
Shareholders equity, June 30, 2020 | 467,734,596 | $ | 87,548,819 | $ | 2,338,674 | $ | 3,786,387 | $ | - | $ | 653,557 | $ | (884,785) | $ | (63,796,570) | $ | 29,646,082 |
Convertible | |||||||||||||||||
Conversion | Accumulated | ||||||||||||||||
Common shares | Common shares | Options | Warrants | Equity reserve | option | OCI | Deficit | Total | |||||||||
Shareholders' equity, December 31, 2020 | 1,413,780,867 | $ | 136,827,655 | $ | 3,892,039 | $ | 4,415,482 | $ | 3,338,204 | $ | 653,557 | $ | 524,779 | $ | (90,032,174) | 59,619,542 | |
Share issuance in private placements | 248,621,440 | 19,529,188 | 954,319 | - | - | - | - | - | 20,483,507 | ||||||||
Shares issued for acquisitions | 458,079,548 | 39,585,658 | - | - | 3,914,612 | - | - | - | 43,500,270 | ||||||||
Shares issued to retire debt | 12,500,001 | 1,183,319 | - | - | - | - | - | - | 1,183,319 | ||||||||
Shares issued as finders' fees | 29,477,446 | 2,773,131 | - | - | - | - | - | - | 2,773,131 | ||||||||
Shares issued on conversion of debenture | 46,153 | 23,684 | - | - | - | (3,338) | - | - | 20,346 | ||||||||
Share issue costs | - | (1,444,632) | - | - | - | - | - | - | (1,444,632) | ||||||||
Share-based compensation for services | 9,038,828 | 788,384 | - | 438,675 | - | - | - | - | 1,227,059 | ||||||||
Share-based compensation for staff | 2,838,307 | 247,563 | 3,011,434 | - | - | - | - | - | 3,258,997 | ||||||||
Shares issued on exercise of warrants and options | 4,286,000 | 383,239 | (135,952) | - | - | - | - | - | 247,287 | ||||||||
Shares issued on conversion of broker warrants | - | - | - | - | - | - | - | - | - | ||||||||
Obligation to issue shares | - | - | - | - | - | - | - | - | - | ||||||||
Reserve for earn-out payments | - | - | - | - | - | - | - | - | - | ||||||||
Forfeiture warrants and options | - | - | (36,825) | (427,946) | - | - | - | 464,771 | - | ||||||||
Net loss and other comprehensive loss | - | - | - | - | - | - | 709,630 | (20,318,760) | (19,609,130) | ||||||||
Shareholders equity, June 30, 2021 | 2,178,668,590 | $ | 199,897,189 | $ | 7,685,015 | $ | 4,426,211 | $ | 7,252,816 | $ | 650,219 | $ | 1,234,409 | $ | (109,886,163) | 111,259,696 |
These notes are an integral part of these Condensed Interim Consolidated Financial Statements
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Halo Companies Inc. published this content on 16 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2021 14:52:07 UTC.