VIVO CANNABIS INC. VIVO CANNABIS INC.
CONDENSED UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED June 30, 2022 AND 2021
(In Canadian Dollars)
VIVO CANNABIS INC.
Condensed Interim Consolidated Statements of Financial Position (Unaudited) (Expressed in Canadian dollars)
June 30, 2022 | December 31, 2021 | |||
As at | ||||
Assets | ||||
Current assets | ||||
Cash | $ | 4,517,921 | $ | 11,302,941 |
Accounts receivable (note 15) | 4,038,072 | 4,064,248 | ||
Other receivables | 154,716 | 226,363 | ||
Inventories (note 3) | 11,853,180 | 10,748,611 | ||
Biological assets (note 4) | 1,247,315 | 1,388,923 | ||
Prepaid expenses | 1,210,719 | 819,459 | ||
23,021,923 | 28,550,545 | |||
Property, plant and equipment (note 5) | 36,439,667 | 38,476,428 | ||
Right-of-use assets | 258,848 | 328,401 | ||
Intangible assets (note 6) | 439,182 | 46,133,719 | ||
Goodwill (note 7) | - | 4,924,540 | ||
$ | 60,159,620 | $ | 118,413,633 | |
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities (note 14) | $ | 4,256,690 | $ | 4,751,867 |
Current portion of lease liabilities | 156,736 | 164,994 | ||
Current portion of convertible debentures (note 12) | 5,008,363 | 4,775,259 | ||
9,421,789 | 9,692,120 | |||
Deferred revenue (note 9) | 8,800,000 | 8,800,000 | ||
Lease liabilities (note 15) | 253,458 | 323,172 | ||
Deferred income taxes (note 19) | 539,611 | 13,569,436 | ||
19,014,858 | 32,384,728 | |||
Shareholders' equity | ||||
Share capital (note 7) | 289,036,107 | 289,036,107 | ||
Contributed surplus | 21,797,140 | 21,593,745 | ||
Warrant reserve | 2,846,245 | 2,846,245 | ||
Deficit | (272,279,516) | (227,406,074) | ||
Accumulated other comprehensive loss | (255,214) | (41,118) | ||
41,144,762 | 86,028,905 | |||
$ | 60,159,620 | $ | 118,413,633 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Nature of operations (note 1)
Going concern (note 2(a))
Commitments and contingencies (note 8)
Subsequent events (note 19)
Approved and authorized for issue by the Board of Directors on August 15, 2022
"Ray Laflamme" | "Glen A. Huber" |
Director | Director |
2
VIVO CANNABIS INC.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited) (Expressed in Canadian dollars)
For the 3 months ended | For the 6 months ended | |||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||
Net revenue (note 17) | $ | 5,217,126 | $ | 6,432,538 | $ | 12,142,409 | $ | 11,935,996 |
Cost of sales and production | ||||||||
Cost of inventory sold (note 3) | (1,795,933) | (3,733,138) | (6,273,770) | (6,479,156) | ||||
Production salaries and wages | (962,143) | (936,145) | (1,769,971) | (1,854,976) | ||||
Production amortization and depreciation (note 5) | (934,213) | (950,317) | (1,872,158) | (1,827,698) | ||||
Production supplies and expense | (457,145) | (425,855) | (966,540) | (578,950) | ||||
Revenues less cost of sales and production before fair value adjustments | 1,067,692 | 387,083 | 1,259,970 | 1,195,216 | ||||
Realized gain on biological transformation (note 4) | (1,139,639) | (2,126,426) | (2,386,995) | (4,461,856) | ||||
Increase in fair value due to biological transformation (note 4) | 1,861,781 | 1,619,359 | 3,442,185 | 3,814,870 | ||||
Revenue less cost of sales and production and fair value adjustments | 1,789,834 | (119,984) | 2,315,160 | 548,230 | ||||
Expenses | ||||||||
General and administrative | 4,207,505 | 4,149,020 | 8,256,876 | 8,125,375 | ||||
Sales and marketing | 124,280 | 196,177 | 226,599 | 301,242 | ||||
Amortization and depreciation (notes 5 & 6) | 597,688 | 1,078,205 | 1,206,680 | 2,156,575 | ||||
Stock-based payments (notes 11 & 13) | 89,853 | 97,445 | 203,395 | 207,300 | ||||
Finance expense (notes 12 & 14) | 229,090 | 242,832 | 469,224 | 459,338 | ||||
Loss on sale of property and equipment | - | 39,445 | - | 39,445 | ||||
Gain on other financial assets (note 10) | - | (27,000) | - | (1,297,432) | ||||
Foreign exchange loss | 88,335 | 27,546 | 209,590 | 39,840 | ||||
Other income | (1,731) | (8,512) | (8,059) | (70,265) | ||||
Impairment of goodwill (note 8) | 4,924,540 | - | 4,924,540 | - | ||||
Impairment of intangible assets (notes 7 & 8) | 44,729,583 | - | 44,729,583 | - | ||||
54,989,143 | 5,795,168 | 60,218,428 | 9,961,428 | |||||
Loss from operations before income taxes | (53,199,309) | (5,915,152) | (57,903,268) | (9,413,198) | ||||
Income tax recovery - current (note 19) | - | (2,615) | - | (186,985) | ||||
Income tax recovery - deferred (note 19) | (12,624,396) | (431,711) | (13,029,826) | (198,010) | ||||
Net loss | (40,574,913) | (5,480,826) | (44,873,442) | (9,028,203) | ||||
Other comprehensive income (loss) | ||||||||
Amounts that may be reclassified subsequently to profit or loss: | ||||||||
Foreign exchange translation gain (loss) | (277,448) | 27,250 | (214,096) | (79,168) | ||||
Comprehensive loss | $ | (40,852,361) | $ | (5,453,576) | $ | (45,087,538) | $ | (9,107,371) |
Net loss per share | ||||||||
Loss per share, basic and diluted | $ | (0.11) | $ | (0.01) | $ | (0.12) | $ | (0.03) |
Weighted average shares outstanding, basic and diluted | 370,896,867 | 370,896,867 | 370,896,867 | 358,557,421 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
3
VIVO CANNABIS INC.
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Unaudited)
(Expressed in Canadian dollars)
Accumulated | ||||||||||||
Other | ||||||||||||
Common | Contributed | Warrant | Comprehensive | |||||||||
Shares | Surplus | Reserve | Deficit | Loss | Total | |||||||
Balance, January 1, 2022 | $ | 289,036,107 | $ | 21,593,745 | $ | 2,846,245 | $ | (227,406,074) | $ | (41,118) | $ | 86,028,905 |
Stock-based payments (note 10 & 12) | - | 203,395 | - | - | - | 203,395 | ||||||
Net loss for the period | - | - | - | (44,873,442) | - | (44,873,442) | ||||||
Foreign exchange translation | - | - | - | - | (214,096) | (214,096) | ||||||
Balance, June 30, 2022 | $ | 289,036,107 | $ | 21,797,140 | $ | 2,846,245 | $ | (272,279,516) | $ | (255,214) | $ | 41,144,762 |
Accumulated | ||||||||||||
Other | ||||||||||||
Common | Contributed | Warrant | Comprehensive | |||||||||
Shares | Surplus | Reserve | Deficit | Income (Loss) | Total | |||||||
Balance, January 1, 2021 | $ | 282,308,066 | $ | 21,190,895 | $ | 1,335,900 | $ | (157,757,071) | $ | 65,997 | $ | 147,143,787 |
Stock-based payments (note 10 & 12) | - | 207,299 | - | - | - | 207,299 | ||||||
Issuance of units (note 7) | 6,095,361 | - | 1,954,639 | - | - | 8,050,000 | ||||||
Net loss for the period | - | - | - | (9,028,203) | - | (9,028,203) | ||||||
Conversion of debentures (note 11) | 1,081,248 | (172,108) | - | - | - | 909,140 | ||||||
Issuance Costs | (451,352) | - | (443,565) | - | - | (894,917) | ||||||
Conversion of warrants (note 7) | 2,784 | - | (729) | - | - | 2,055 | ||||||
Foreign exchange translation | - | - | - | - | (79,168) | (79,168) | ||||||
Balance, June 30, 2021 | $ | 289,036,107 | $ | 21,226,086 | $ | 2,846,245 | $ | (166,785,274) | $ | (13,171) | $ | 146,309,993 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
4
VIVO CANNABIS INC.
Condensed Interim Consolidated Statements of Cash Flows (Unaudited)
(Expressed in Canadian dollars)
For the six months ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Cash flow provided by (used in) operating activities | ||||||||
Net loss | $ | (44,873,442) | $ | (9,028,203) | ||||
Add (deduct) items not involving cash | ||||||||
Accretion and accrued interest expensed | 233,104 | 199,421 | ||||||
Amortization and depreciation | 3,411,732 | 4,372,681 | ||||||
Stock-based payments | 203,395 | 207,299 | ||||||
Impairment of goodwill | 4,924,540 | - | ||||||
Impairment of intangible assets | 44,729,583 | - | ||||||
Increase in fair value due to biological transformation | (3,442,185) | (3,814,870) | ||||||
Realized gain on biological asset transformation | 2,386,995 | 4,461,856 | ||||||
Realized gain on other financial assets | - | (900,690) | ||||||
Unrealized gain on other financial assets | - | (396,742) | ||||||
Deferred income taxes | (13,029,825) | (198,010) | ||||||
Change in non-cash working capital | ||||||||
Accounts receivable | 26,176 | (1,112,509) | ||||||
Other receivables | 71,647 | - | ||||||
Biological assets | 3,583,793 | 8,872,532 | ||||||
Inventory | (3,491,564) | (7,194,308) | ||||||
Prepaid expenses | (391,260) | 566,532 | ||||||
Accounts payable and accrued liabilities | (495,177) | (857,019) | ||||||
Cash flow used in operating activities | (6,152,488) | (4,822,030) | ||||||
Cash flow provided by (used in) financing activities | ||||||||
Issuance of common shares for cash, net of issuance costs | - | 7,157,867 | ||||||
Conversion of warrants | - | (729) | ||||||
Payment of lease liabilities | (77,972) | (72,741) | ||||||
Cash flow provided by (used in) financing activities | (77,972) | 7,084,397 | ||||||
Cash flow provided by (used in) investing activities | ||||||||
Investment in property and equipment | (339,989) | (715,620) | ||||||
Proceeds from disposal of property and equipment | - | 818,252 | ||||||
Interest earned on term deposits | - | (5,164) | ||||||
Proceeds from sale of short-term investments | - | 7,763,086 | ||||||
Cash flow provided by (used in) financing activities | (339,989) | 7,860,554 | ||||||
Effect of foreign exchange rate changes on cash | (214,571) | (110,768) | ||||||
Increase (decrease) in cash | (6,785,020) | 10,012,153 | ||||||
Cash, beginning of period | 11,302,941 | 5,702,983 | ||||||
Cash, ending of period | $ | 4,517,921 | $ | 15,715,136 | ||||
Supplementary cash flow information | ||||||||
Cash interest paid | $ | 166,404 | $ | 166,404 | ||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
VIVO Cannabis Inc. published this content on 19 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 14:53:06 UTC.
