Wildpack Beverage : Quarterly Report - Wildpack 2022 Q2 Interim Financial Statements

WILDPACK BEVERAGE INC.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022, AND JUNE 30, 2021

(Expressed in thousands of United States Dollars)

Notice of Non-review of Condensed Consolidated Interim Financial Statements

The attached condensed consolidated interim financial statements (unaudited) for the three and six months ended June 30, 2022, and June 30, 2021, have been prepared by and are the responsibility of Wildpack Beverage Inc.'s management and have been approved by the Board of Directors. Wildpack Beverage Inc.'s independent auditor has not performed a review of the condensed consolidated interim financial statements (unaudited) for the three and six months ended June 30, 2022.

WILDPACK BEVERAGE INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (Expressed in thousands of United States Dollars, except for share data)

					June 30,	December 31,
				Note	2022	2021
ASSETS
Current assets
	Cash and cash equivalents			$1,253	$1,450
	Cash held in trust			958	958
	Accounts receivable			4,867	3,826
	Sales taxes recoverable			157	326
	Due from related parties	18	‐	58
	Inventories			7,850	10,671
	Prepaid expenses and deposits			388	641
	Notes receivable			21	19
					15,494	17,949
Property, plant, and equipment	9	6,633	5,820
Right‐of‐use assets	11	11,268	12,399
Intangible assets	10	23,035	24,207
Goodwill	6, 7, 8, 10	12,132	12,132
Other deposits			472	357
TOTAL ASSETS			69,034	72,864
LIABILITIES
Current liabilities
	Accounts payable and accrued liabilities			9,125	6,882
	Deferred revenue			1,460	371
	Line of credit	13	948	1,017
	Current portion of long‐term debt	13, 14	32,261	29,987
	Current portion of lease obligations	12	2,034	2,404
					45,828	40,661
Lease obligations	12	9,869	10,448
Long term debt	13, 14	400	391
TOTAL LIABILITIES			56,097	51,500
SHAREHOLDERS' EQUITY
	Share capital	15	36,105	36,001
	Equity reserve	8	675	675
	Contributed surplus			5,015	4,924
	Accumulated deficit			(28,790)	(19,696)
	Accumulated other comprehensive loss			(68)	(540)
TOTAL SHAREHOLDERS' EQUITY			12,937	21,364
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$69,034	$72,864
Nature of operations and going concern	1
Commitments and contingencies	23
On behalf of the Board of Directors:
	"Jeffrey Mason"				"Mitchell Barnard"
Jeffrey Mason		Mitchell Barnard
(Director)		(Director)

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited).

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WILDPACK BEVERAGE INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (UNAUDITED) (Expressed in thousands of United States Dollars, except for share data)

			Three months ended June 30,	Six months ended June 30,
		Note	2022	2021	2022	2021
Sales	16	$8,911	$8,135	$17,440	$14,569
Cost of sales	17	8,511	7,106	17,004	12,454
Gross profit		400	1,029	436	2,115
Operating expenses
	Selling expenses		714	420	1,306	733
	Salaries, wages, and benefits		1,782	365	3,667	813
	Depreciation and amortization	9, 10, 11	963	358	1,890	606
	Office and administrative		390	240	920	555
	Share‐based compensation	15	80	238	181	351
	Professional fees		764	79	933	449
	Bad debt expense		107	6	126	120
	Listing expense	5	‐	748	‐	748
	Other operating expenses (income)		(104)	402	(188)	408
	Operating expenses		4,696	2,856	8,835	4,783
Other expenses (income)
	Bank and finance charges		7	2	21	5
	Interest on long‐term debt	13	1,228	23	2,423	79
	Interest on lease obligations		190	165	393	306
	Gain on derivative liability	14	(522)	‐	(2,142)	‐
	Other expenses (income)		903	190	695	390
NET LOSS BEFORE INCOME TAXES		(5,199)	(2,017)	(9,094)	(3,058)
Deferred income tax expense (recovery)		‐	21	‐	(133)
NET LOSS		$(5,199)	(2,038)	$(9,094)	$(2,925)
Other comprehensive income
	Items that may be reclassified to profit or loss:
	Gain on foreign currency translation		854	55	472	29
TOTAL COMPREHENSIVE LOSS		$(4,345)	$(1,983)	$(8,622)	$(2,896)
Weighted average number of common shares outstanding		101,216,367	49,236,843	101,139,935	49,236,843
Loss per share - basic		$(0.05)	$(0.04)	$(0.09)	$(0.06)
Loss per share - diluted		$(0.05)	$(0.04)	$(0.09)	$(0.06)

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited).

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WILDPACK BEVERAGE INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Expressed in thousands of United States Dollars, except for share data)

		Share capital
										Retained
		Number of			Contributed	Equity		Accumulated		earnings
	Note	shares	Amount		surplus	reserve		OCI		(deficit)		Total
At January 1, 2021		43,306,494	$5,067	$66	$2,695	$(108)	$(5,997)	$1,723
Safe agreements converted into shares	15	8,302,294	4,006		-	(1,239)		-		-	2,767
Amalgamation of Ponderous Panda Capital Corp.	15	5,690,737	2,490		-	(1,456)		-		-	1,034
Private Placement - May 2021	15	9,532,688	4,607	1,056	-		-		-	5,663
Debenture Warrants - June 2021	14	-	-	587	-		-		-	587
Shares issued through option exercises	15	22,646	21	(6)						15
Options granted to employees	15	-	-	351	-		-		-	351
Restricted stock units issued	15	-	-	32	-		-		-	32
Loss for the period		-	-		-	-		-	(2,927)	(2,927)
Other comprehensive loss - cumulative
translation loss		-	-		-	-		29		-		29
At June 30, 2021		66,854,859	$16,191		$2,086	$-		$(79)		$(8,924)		$9,274
At January 1, 2022		100,981,921	$36,001	$4,924	$675	$(540)	$(19,696)	$21,364
Shares issued for restricted stock units	15	274,445	104	(104)	-		-		-		-
Share‐based payments	15	-	-	181	-		-		-	181
Debenture warrants - March 2022	14	-	-	14	-		-		-	14
Loss for the period		-	-		-	-		-	(9,094)	(9,094)
Other comprehensive loss - cumulative
translation loss		-	-		-	-	472		-	472
At June 30, 2022		101,256,366	$36,105		$5,015	$675		$(68)		$(28,790)		$12,937

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited).

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