SIGMA LITHIUM CORPORATION
(FORMERLY SIGMA LITHIUM RESOURCES
CORPORATION)
CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED
JUNE 30, 2021 AND 2020
(EXPRESSED IN CANADIAN DOLLARS)
(UNAUDITED)
MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING
The accompanying unaudited condensed interim consolidated financial statements of Sigma Lithium Corporation (formerly Sigma Lithium Resources Corporation) (the "Company") are the responsibility of management and have been approved by the Board of Directors ("Board").
The unaudited condensed interim consolidated financial statements have been prepared by management in accordance with International Accounting Standards 34 Interim Financial Reporting of International Financial ReportingStandards as issued by the International Accounting Standards Board. When alternative accounting methods exist, management has chosen those it deems most appropriate in the circumstances. Financial statements are not exact since they include certain amounts based on estimates and judgments. Management has determined such amounts on a reasonable basis in order to ensure that the financial statements are presented fairly, in all material respects.
The Board is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the financial statements. The Board carries out this responsibility principally through its Audit Committee.
The Audit Committee is appointed by the Board, and the majority of its members are independent directors. The Audit Committee meets at least four times a year with management, as well as the external auditors, to discuss internal controls over the financial reporting process, auditing matters and financial reporting issues, to satisfy itself that each party is properly discharging its responsibilities, and to review the quarterly and the annual reports, the consolidated financial statements and the external auditors' reports. The Audit Committee reports its findings to the Board for consideration when approving the consolidated financial statements for issuance to the shareholders. The Audit Committee also considers, for review by the Board and approval by the shareholders, the engagement or reappointment of the external auditors.
"Calvyn Gardner" | "Guilherme Guimarães" |
Chairman and Chief Executive Officer | Chief Financial Officer |
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Sigma Lithium Corporation
(Formerly Sigma Lithium Resources Corporation)
Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian Dollars)
(Unaudited)
June 30, | December 31, | |||
2021 | 2020 | |||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents (note 4) | $ | 40,576,508 | $ | 13,543,024 |
Receivables and other assets (notes 5 and 12) | 582,534 | 503,420 | ||
Total current assets | 41,159,042 | 14,046,444 | ||
Non-current assets | ||||
Receivables and other assets (notes 5 and 12) | 124,104 | 111,098 | ||
Exploration and evaluation assets (note 7) | 3,203,346 | 18,354,148 | ||
Property, plant and equipment (note 6) | 23,194,434 | 686,308 | ||
Total assets | $ | 67,680,926 | $ | 33,197,998 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ | 351,220 | $ | 1,953,633 |
Revolving credit facility (note 8) | 1,378,353 | 2,683,880 | ||
Payroll and other taxes | 435,753 | 267,666 | ||
Note payable (note 10) | 280,173 | 1,941,349 | ||
Lease liability (notes 11 and 12) | 9,713 | 9,082 | ||
Other liabilities | - | 72,127 | ||
Total current liabilities | 2,455,212 | 6,927,737 | ||
Long-term liabilities | ||||
Deferred revenue (note 9) | 4,007,100 | 4,007,100 | ||
Note payable (note 10) | - | 262,696 | ||
Lease liability (notes 11 and 12) | 240,762 | 243,117 | ||
Total liabilities | 6,703,074 | 11,440,650 | ||
Shareholders' equity | ||||
Share capital (note 13) | 92,646,319 | 53,910,946 | ||
Contributed surplus | 11,780,884 | 3,930,885 | ||
Accumulated other comprehensive loss | (2,828,689) | (2,858,091) | ||
Accumulated deficit | (40,620,662) | (33,226,392) | ||
Total shareholders' equity | 60,977,852 | 21,757,348 | ||
Total liabilities and shareholders' equity | $ | 67,680,926 | $ | 33,197,998 |
The accompanying notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.
Related parties (notes 5, 8, 11 and 12)
Subsequent event (note 8)
Approved on behalf of the Board:
(Signed) "Calvyn Gardner" | , Director | (Signed) "Marcelo Paiva" | , Director |
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Sigma Lithium Corporation
(Formerly Sigma Lithium Resources Corporation)
Condensed Interim Consolidated Statements of Net Loss and Comprehensive income (loss) (Expressed in Canadian Dollars)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Operating expenses | ||||||||
General and administrative expenses (note 17) | $ | 855,184 | $ | 445,626 | $ | 6,947,427 | $ | 870,667 |
Accretion and interest on notes payable (note 10) | 5,460 | 79,919 | 43,282 | 166,460 | ||||
Interest expense on revolving credit facility and | ||||||||
suppliers (note 8) | 57,732 | 22,335 | 125,661 | 57,110 | ||||
Fair value adjustment on restructuring of | - | 124,109 | - | 9,977 | ||||
note payable (note 10) | ||||||||
Foreign exchange loss (gain) | 87,011 | (544,846) | 250,825 | (845,230) | ||||
Depreciation | 13,729 | 14,452 | 27,075 | 31,617 | ||||
Net loss for the period | (1,019,116) | (141,595) | (7,394,270) | (290,601) | ||||
Other comprehensive loss | ||||||||
Amounts that may be reclassified subsequently | ||||||||
to profit and loss | ||||||||
Cumulative translation adjustment | 1,056,722 | (724,454) | 29,402 | (2,444,350) | ||||
Net loss and comprehensive income (loss) for | $ | 37,606 | $ | (866,049) | $ | (7,364,868) | $ | (2,734,951) |
the period | ||||||||
Loss per common share | ||||||||
Equity holders of the Company | ||||||||
Basic and diluted net loss per common | ||||||||
share (note 14) | $ | (0.01) | $ | (0.00) | $ | (0.09) | $ | (0.00) |
Weighted average number of common shares | ||||||||
outstanding - basic and diluted | 87,368,212 | 68,878,891 | 85,062,054 | 68,878,891 |
The accompanying notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.
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Sigma Lithium Corporation
(Formerly Sigma Lithium Resources Corporation)
Condensed Interim Consolidated Statements of Cash Flows (Expressed in Canadian Dollars)
(Unaudited)
Six months ended June 30, | 2021 | 2020 | |
Operating activities | |||
Net loss for the period | $ (7,394,270) | $ | (290,601) |
Adjustments for: | |||
Depreciation | 27,075 | 31,617 | |
Stock-based compensation | 5,511,152 | 211,349 | |
Accretion and interest on notes payable (note 10) | 43,282 | 166,460 | |
Interest expense on credit revolver and suppliers (note 8) | 125,661 | 57,110 | |
Fair value adjustment on restructuring of note payable (note 10) | - | 9,977 | |
Unrealized foreign exchange gain on notes payable (note 10) | (91,578) | (911,914) | |
Unrealized foreign exchange gain | 48,417 | - | |
Provision | - | (9,465) | |
Changes in non-cash working capital items: | |||
Receivables and other assets | (87,767) | 87,091 | |
Accounts payable and other liabilities | (1,650,143) | 864 | |
Other taxes | 154,189 | (85,733) | |
Net cash provided by (used in) operating activities | (3,313,982) | (733,245) | |
Investing activities | |||
Addition to exploration and evaluation assets | (5,365,659) | (568,010) | |
Purchase of property, plant and equipment | (21,027) | - | |
Net cash used in investing activities | (5,386,686) | (568,010) | |
Financing activities | |||
Lease payments (notes 11 and 12) | (18,799) | (18,968) | |
(Repayment)/drawdown of revolving credit facility (note 8) | (1,330,579) | 2,238,151 | |
Payment of note payable (note 10) | (1,875,576) | (868,474) | |
Proceeds from warrants exercised | 132,000 | - | |
Issue of common shares (note 13) | 39,380,157 | - | |
Net cash provided by financing activities | 36,287,203 | 1,350,709 | |
Effect of exchange rate changes on cash held in foreign currency | (553,051) | (2,778) | |
Net increase in cash | 27,033,484 | 46,676 | |
Cash, beginning of period | 13,543,024 | 103,640 | |
Cash, end of period | $ 40,576,508 | $ | 150,316 |
The accompanying notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.
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Sigma Lithium Corporation published this content on 01 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 September 2021 08:11:02 UTC.