Li-FT POWER LTD.
Condensed Interim Consolidated Financial Statements
For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
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Li-FT POWER LTD.
Condensed Interim Consolidated Statements of Financial Position As at February 29, 2024 and November 30, 2023
(Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
February 29, | November 30, | |||||
Note | 2024 | 2023 | ||||
Assets | $ | $ | ||||
Current | ||||||
Cash and cash equivalents | 4 | 6,590 | 17,737 | |||
Amounts receivable | 5 | 1,927 | 2,581 | |||
Prepaid expenditures | 6 | 2,676 | 4,631 | |||
Total current assets | 11,193 | 24,949 | ||||
Non-current | ||||||
Right-of-use leased assets | 166 | 449 | ||||
Exploration and evaluation properties | 8 | 247,058 | 236,304 | |||
Equipment | 359 | 11 | ||||
Total Assets | 258,776 | 261,713 | ||||
Liabilities and Shareholders' Equity | ||||||
Current | ||||||
Accounts payable and accrued liabilities | 9 | 2,376 | 2,238 | |||
Lease liabilities | 64 | 183 | ||||
Flow-through share premium liability | 12 | 2,408 | 5,885 | |||
Total current liabilities | 4,848 | 8,306 | ||||
Non-current | ||||||
Lease liabilities | 114 | 131 | ||||
Deferred income tax liability | 9,827 | 8,084 | ||||
Total Liabilities | 14,789 | 16,521 | ||||
Share capital | 10 | 239,912 | 239,912 | |||
Share-based payment reserve | 10 | 3,263 | 2,547 | |||
Retained earnings | 812 | 2,733 | ||||
Total Equity | 243,987 | 245,192 | ||||
Total Liabilities and Shareholders' Equity | 258,776 | 261,713 | ||||
Going concern (Note 2) | ||||||
Subsequent events (Note 16) | ||||||
Approved and authorized for issuance by the Board of directors on April 25, 2024 by: | ||||||
/s/ Kenneth Scott | /s/ Iain Scarr | |||||
Kenneth Scott, Director | Iain Scarr, Director |
The accompanying notes are an integral part of these condensed interim consolidated financial
statements.
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Li-FT POWER LTD.
Condensed Interim Consolidated Statements of Net Loss and Comprehensive Loss For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
Three months ended | |||
February 29, | February 28, | ||
Note | 2024 | 2023 | |
$ | $ | ||
Operating expenses | |||
Amortization | 52 | - | |
Director fees | 11 | 23 | - |
Filing fees | 56 | 28 | |
Investor relations | 2,652 | 51 | |
Management, consulting fees and salaries | 251 | 320 | |
Office expenses | 70 | 26 | |
Professional fees | 41 | 63 | |
Project evaluation | - | 19 | |
Share-based payments | 10 | 653 | - |
Travel expense | 94 | 42 | |
Loss from operations | (3,892) | (549) | |
Other (expenses) income | |||
Finance expenses and other | (6) | (2) | |
Foreign exchange gain (loss) | 80 | (8) | |
Interest income | 162 | 50 | |
Loss before income taxes | (3,656) | (509) | |
Deferred income tax recovery | 1,735 | - | |
Net loss and comprehensive loss for the period | (1,921) | (509) | |
Net loss per share, basic and diluted | (0.05) | (0.02) | |
Weighted average shares outstanding, basic, and | 40,864,177 | 30,465,063 | |
diluted | |||
The accompanying notes are an integral part of these condensed interim consolidated financial
statements.
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Li-FT POWER LTD.
Condensed Interim Consolidated Statement of Changes in Shareholders' Equity For the three months ended February 29, 2024 and February 28, 2023
(Unaudited - Expressed in thousands of Canadian dollars, except share and per share amounts)
(Accumulated | |||||
Number of | Share-based | deficit)/ | |||
common | Share | payment | retained | ||
shares | capital | reserve | earnings | Total | |
$ | $ | $ | $ | ||
Balance, November 30, 2022 | 18,465,063 | 12,225 | 5 | (816) | 11,414 |
Shares issued for exploration and | 18,000,000 | 198,000 | - | - | 198,000 |
evaluation properties (Note 10) | |||||
Net loss and comprehensive loss for the | (509) | (509) | |||
period | - | - | - | ||
Balance, February 28, 2023 | 36,465,063 | 210,224 | 5 | (1,325) | 208,905 |
Balance, November 30, 2023 | 40,864,177 | 239,912 | 2,547 | 2,733 245,192 |
Share-based payments (Note 10)
Net loss and comprehensive loss for the period
- | - | 716 | - | 716 |
- | - | - | (1,921) | (1,921) |
Balance, February 29, 2024 | 40,864,177 | 239,912 | 3,263 | 812 243,987 |
The accompanying notes are an integral part of these condensed interim consolidated financial
statements.
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Li-FT POWER LTD.
Condensed Interim Consolidated Statements of Cash Flows
For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
February 29, 2024 | February 28, 2023 | |
$ | ||
Cash flows from operating activities | $ | |
Net loss for the period | (1,921) | (509) |
Adjustments for: | ||
Amortization | 52 | - |
Share-based payments (Note 10) | 653 | - |
Deferred income tax recovery | (1,735) | - |
Changes in non-cash working capital items: | ||
Decrease (increase) in amounts receivable | 654 | (12) |
Decrease (increase) in prepaid expenditures | 527 | (28) |
Increase (decrease) in accounts payable and | 30 | 61 |
accrued liabilities | ||
Total cash used in operating activities | (1,740) | (488) |
Cash flows from investing activities | ||
Exploration and evaluation expenditures | (9,155) | (727) |
Equipment purchases | (247) | - |
Acquisition of subsidiary, net of cash received | - | 10,375 |
Total cash used in investing activities | (9,402) | 9,648 |
Cash flows from financing activities | ||
Interest paid on lease liability | (5) | - |
Proceeds from loan received | - | 505 |
Total cash provided by financing activities | (5) | 505 |
Change in cash and cash equivalents | (11,147) | 9,665 |
Cash and cash equivalents, beginning | 17,737 | 5,442 |
Cash and cash equivalents, end | 6,590 | 15,107 |
Supplemental information / non-cash flow items | ||
Share-based compensation relating to exploration and | 716 | - |
evaluation properties | ||
Change in prepaid expenses relating to exploration | 1,428 | - |
and evaluation properties | ||
Change in accounts payable and accrued liabilities | 108 | - |
relating to exploration and evaluation properties | ||
Interest received in cash | 125 | - |
Shares issued for exploration and evaluation | - | 198,000 |
acquisitions |
The accompanying notes are an integral part of these condensed interim consolidated financial
statements.
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Li-FT Power Ltd.
Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
-
NATURE OF OPERATIONS
Li-FT Power Ltd. (the "Company") was incorporated under the Business Corporations Act (British Columbia) on May 28, 2021. The Company is an exploration stage company engaged in the acquisition, exploration, and development of mineral properties with a focus on lithium. The Company is listed on the Toronto Stock Exchange - Venture ("TSX-V") with the symbol "LIFT", on the OTC QX with the symbol "LIFFF" and on the Frankfurt Stock Exchange with the symbol "WS0".
The head office of the Company and principal address is 1218 - 1030 West Georgia Street, Vancouver, BC V6E 2Y3. The registered address and records office of the Company is located at 2080-777 Hornby Street, Vancouver, BC V6Z 1S4. - BASIS OF PRESENTATION AND GOING CONCERN
These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 - Interim Financial Reporting, under International Financial Reporting Standards issued by the International Accounting Standards Board ("IFRS"). These condensed interim consolidated financial statements follow the same accounting policies and methods of application as the most recent audited annual financial statements of the Company. These condensed interim consolidated financial statements do not contain all of the information required for full annual financial statements. Accordingly, these condensed interim consolidated financial statements should be read in conjunction with the Company's audited annual consolidated financial statements for the year ended November 30, 2023, which were on a going concern basis, which assumes that the Company will be able to meet its obligations and continue its operations for the next twelve months. Realization values may be substantially different from carrying values as shown in these condensed interim consolidated financial statements and do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. The Company has incurred losses from inception and does not currently have the financial resources to sustain its operations and exploration programs. These factors may cast significant doubt upon the Company's ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business. Although the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms acceptable to the Company (Note 16 - subsequent events provides the details of financing which completed in March 2024).
The unaudited condensed interim consolidated financial statements are presented in Canadian dollars, which is also the Company's and its subsidiaries' functional currency, except where otherwise indicated. All values are rounded to the nearest thousand dollars, except per share values.
The condensed interim consolidated financial statements of the Company for the interim period ended February 29, 2024, were approved, and authorized for issue by the Board of Directors on April 25, 2024.
Basis of Consolidation
For the current financial year beginning on December 1, 2023, these condensed interim consolidated financial statements include the accounts of the Company, and its Canadian subsidiaries as follows:
Subsidiary | Ownership | Jurisdiction | Nature of Operations |
interest | |||
Yellowknife Lithium Ltd. | 100% | BC, Canada | Mineral exploration |
EREX International Ltd. | 100% | BC, Canada | Mineral exploration |
Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the condensed interim consolidated financial statements.
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Li-FT Power Ltd.
Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
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BASIS OF PRESENTATION AND GOING CONCERN (continued) Future accounting standards and interpretations
Accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have significant impact on the Company's financial statements. - CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of interim financial statements in accordance with IFRS requires management to make estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the interim financial statements, and the reported amount of revenues and expenses during the period. The Company's most significant accounting judgements relate to the going concern assessments, ongoing viability of its exploration and evaluation properties, determining if an acquisition is a business combination or an asset acquisition, and the assumptions used to estimate share-based compensation.
- SIGNIFICANT JUDGEMENT
- Going concern
In preparation of these condensed interim consolidated financial statements on a going concern basis, as disclosed in Note 2, management's critical judgement is that the Company will be able to meet its obligations and continue its operations for the next twelve months. Actual amounts could differ from these estimates.
(b) Impairment indicators for exploration and evaluations properties
Management must also determine if there are indicators that its rights to explore its exploration and evaluation properties have expired or may expire in the future, that future exploration and evaluation plans are not warranted, or that the development of the properties or portions thereof is unlikely to recover existing exploration and evaluation costs. Should any of these indicators be present, the exploration and evaluation properties could be impaired.
(c) Business combination or asset acquisition
With each acquisition, the Company has to determine whether it should be accounted for as a business combination or an asset acquisition. As dictated by IFRS 3, the components of a business must include inputs, processes and outputs. Management has assessed its acquisition and has concluded that it did not include all the necessary components of a business. As such, it was recorded as an asset acquisition, being the purchase of exploration and evaluation properties and/or working capital.
- SIGNIFICANT ESTIMATES
- Share-basedpayments
The Company uses the Black-ScholesOption-Pricing Model to estimate the fair value of options and warrants, which requires the input of subjective assumptions including the expected price volatility of the Company's common shares and the expected life and forfeiture rate of the security. Changes in these subjective input assumptions can materially affect the fair value estimate.
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Li-FT Power Ltd.
Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
4. CASH AND CASH EQUIVALENTS
The Company's cash and cash equivalents as at February 29, 2024 and November 30, 2023 consist of the following amounts:
February 29, | November 30, | ||
2024 | 2023 | ||
$ | $ | ||
Cash | 3,565 | 13,712 | |
Cash equivalents | 3,025 | 4,025 | |
Total Cash and Cash Equivalents | 6,590 | 17,737 |
5. AMOUNTS RECEIVABLE
The Company's amounts receivable as at February 29, 2024 and November 30, 2023 consist of the following amounts:
February 29, | November 30, | ||
2024 | 2023 | ||
$ | $ | ||
Goods and services tax receivable | 1,890 | 1,407 | |
Revenue Quebec exploration tax credit | - | 1,144 | |
Interest receivable | 37 | 30 | |
Total Amount Receivable | 1,927 | 2,581 |
6. PREPAID EXPENDITURES
The Company's prepaid expenditures as at February 29, 2024 and November 30, 2023 consist of the following amounts:
February 29, | November 30, | ||
2024 | 2023 | ||
$ | $ | ||
Cash advance to Operator of Yellowknife exploration (1) | 2,259 | 2,494 | |
Cash advance to Operator of Quebec exploration (1) | 240 | 1,432 | |
Other prepaid expenditures | 177 | 705 | |
Total Prepaid Expenses | 2,676 | 4,631 |
- Balances presented are net of amounts incurred on exploration and evaluation expenditures during the periods.
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Li-FT Power Ltd.
Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
7. ACQUISITION OF YELLOWKNIFE LITHIUM PROJECT
On December 30, 2022, the Company, through a wholly-owned subsidiary, completed its amalgamation with 1361516 B.C. Ltd. (the "Target") and received all the outstanding common shares of this privately held mineral exploration company, which owns the Yellowknife Lithium Project ("YLP") located in the Northwest Territories, in exchange for 18,000,000 common shares of Li-FT Power Ltd. (the "Yellowknife Lithium Transaction"). The Yellowknife Lithium Transaction was conducted by way of an amalgamation arrangement, which ultimately resulted in the Target becoming a wholly-owned subsidiary of Li-FT Power Ltd.
For accounting purposes, the amalgamation with the Target has been recorded as an asset acquisition as the Target is not considered to be a business when applying the guidance within IFRS 3 Business Combinations.
The consideration paid and the fair value of identifiable assets acquired and liabilities assumed from the Target were as follows:
Total Share Consideration paid (Note 10) | $198,000 |
Assets acquired and liabilities assumed | |
Cash received | 10,375 |
Loan receivable from Li-FT Power Ltd | 755 |
Accounts payable | (46) |
Exploration and evaluation properties (Note 8) - YLP | 168,916 |
Exploration and evaluation properties (Note 8) - Cali | 18,000 |
Net Assets Acquired | $198,000 |
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Li-FT Power Ltd.
Notes to the Condensed Interim Consolidated Financial Statements For the three months ended February 29, 2024 and February 28, 2023 (Unaudited - Expressed in thousands of Canadian dollars unless otherwise noted)
8. EXPLORATION AND EVALUATION PROPERTIES
Exploration and evaluation properties include the following amounts as at February 29, 2024 and November 30, 2023.
Yellowknife | Cali | Rupert | Pontax | Moyenne | ||
Lithium Project | Project | Project | Project | Project | Total | |
$ | $ | $ | $ | $ | $ | |
Balance, November 30, 2022 | - | - | 9,979 | 25 | - | 10,004 |
Acquisition costs | 169,466 | 18,000 | 3,025 | 25 | - | 190,516 |
Exploration and evaluation expenditures | ||||||
Claims, taxes and holding costs | 648 | - | 42 | 20 | 1 | 711 |
Salaries and share based payments | 2,693 | 118 | 1,421 | 471 | 15 | 4,718 |
Drilling, exploration, and technical consultation | 18,574 | 561 | 2,396 | 427 | 22 | 21,980 |
Assaying, field supplies and environmental consultation | 7,099 | 89 | 1,371 | 235 | - | 8,794 |
Travel and other project expenses | 518 | 26 | 144 | 37 | - | 725 |
Revenue Quebec Exploration Tax Credit | - | - | (1,144) | - | - | (1,144) |
Total exploration and evaluation expenditures | 29,532 | 794 | 4,230 | 1,190 | 37 | 35,784 |
Balance, November 30, 2023 | 198,998 | 18,794 | 17,234 | 1,240 | 37 | 236,304 |
Acquisition costs | 700 | - | - | - | - | 700 |
Exploration and evaluation expenditures | ||||||
Claims, taxes and holding costs | 212 | - | 2 | 1 | 1 | 216 |
Salaries and share based payments | 1,148 | 37 | 42 | 14 | 4 | 1,245 |
Drilling, exploration, and technical consultation | 4,642 | 8 | 57 | 2 | 2 | 4,711 |
Assaying, field supplies and environmental consultation | 3,666 | 20 | 53 | 74 | - | 3,813 |
Travel and other project expenses | 449 | - | 1 | - | - | 450 |
Revenue Quebec Exploration Tax Credit | - | - | (381) | - | - | (381) |
Total exploration and evaluation expenditures | 10,817 | 65 | (226) | 91 | 7 | 10,754 |
Balance, February 29, 2024 | 209,815 | 18,859 | 17,008 | 1,331 | 44 | 247,058 |
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Li-FT Power Ltd. published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 15:41:42 UTC.