Condensed Interim Consolidated Financial Statements
Bhang Inc.
For the Three and Nine Month Periods ended September 30, 2021 and 2020
(Expressed in United States Dollars)
Unaudited
INDEX | |
Condensed Interim Consolidated Statements of Financial Position | 1 |
Condensed Interim Consolidated Statements of Loss | |
and Comprehensive Loss | 2 |
Condensed Interim Consolidated Statements of Changes in | 3 - 4 |
Shareholders' Equity (Deficiency) | |
Condensed Interim Consolidated Statements of Cash Flows | 5 |
Notes to the Condensed Interim Consolidated | |
Financial Statements | 6 - 43 |
NOTICE TO READER
The accompanying unaudited condensed interim consolidated financial statements have been prepared by the Company's management and the Company's independent auditors have not performed a review of these condensed interim consolidated financial statements
Bhang Inc.
Unaudited Condensed Interim Consolidated Statements of Financial Position
Expressed in United States Dollars
September | December 31, | ||||
30, 2021 | 2020 | ||||
(Unaudited) | (Audited) | ||||
Assets | |||||
Current Assets | |||||
Cash | $ | 154,782 | $ | 69,654 | |
Trade and other receivables, net (note 22(c)) | 189,094 | 246,434 | |||
Inventory (note 7) | 221,173 | 204,736 | |||
Marketable securities (note 9) | 939,369 | - | |||
Prepaid expenses | 265,162 | 169,760 | |||
Contract assets (note 22(c)) | 56,953 | 54,418 | |||
Promissory note receivable (note 10) | 8,772 | - | |||
Total Current Assets | 1,835,305 | 745,002 | |||
Non-Current Assets | |||||
Marketable securities (note 9) | - | 989,509 | |||
Property and equipment (note 11) | 141,915 | 152,667 | |||
Total Assets | $ | 1,977,220 | $ | 1,887,178 | |
Liabilities
Current Liabilities
Accounts payable and accrued liabilities
Contract liability (note 22(c))
Due to shareholder (note 17)
Promissory note - current portion (note 13)
Total Current Liabilities
Non-Current Liabilities
Promissory note (note 13)
Contract liability (note 22(c))
Total Liabilities
Shareholders' Equity (Deficiency)
Share capital (note 18)
Contributed surplus (note 19)
Accumulated other comprehensive loss
Accumulated deficit
Total Liabilities and Shareholders' Equity (Deficit)
Going Concern (Note 1)
Commitments (Note 30)
Contingencies (Note 31)
$ 944,110 $ 1,176,151
304,542 150,242
- 1,191,539
- 5,354
1,248,652 2,523,286
-2,246
750,000 750,000
1,998,652 3,275,532
20,782,895 18,178,610
3,021,074 2,877,652
(104,319) (97,957)
(23,721,082) (22,346,659)
(21,432) (1,388,354)
$ 1,977,220 $ 1,887,178
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
Approved on behalf of the Board
Signed "Jamie Pearson" ,Director | Signed "Stephen Gledhill" | , Director |
-1-
Bhang Inc.
Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss For the three and nine month periods ended September 30, 2021 and 2020
Expressed in United States Dollars
Three Months Ended | Nine Months Ended | ||
September | September | September | September |
30, 2021 | 30, 2020 | 30, 2021 | 30, 2020 |
(notes 32 | (notes 32 | ||
and 33) | and 33) |
Revenue
Product sales (note 21(i) and 28)
Licensing (note 21(i) and 28)
Other (note 28)
Cost of Sales
Gross Profit
Expenses
Wages and salaries (note 21(ii)
Sales and marketing
Professional fees
Publicity and investor relations
Product development
General and administrative (note 24)
Share-based compensation (note 21)
Provision for (recovery of) bad debts
Loss before the undernoted
Interest expense
Interest expense on lease liabilities (note 14) Interest accretion (note 16)
Unrealized loss on marketable securities (note 9) Realized loss on marketable securities (note 9) Loss on debt settlement
Gain on Disposal of Asset (note 11) Foreign exchange gain (loss)
Loss on disposition of investment in Indiva JV (note 8) Government assistance
Net loss for the period from continuing operations Loss from discontinued
operations (note 32)
Net loss for the period
Currency translation adjustment
Comprehensive loss for the period
Net loss per share - basic and diluted
Weighted average number of SVS and MVS outstanding - basic and diluted
$ | 21,322 | $ | 47,459 | $ | 62,017 | $ | 161,903 |
260,689 | 189,164 | 814,976 | 1,075,755 | ||||
1,008 | 6,559 | 4,793 | 22,396 | ||||
283,019 | 243,182 | 881,786 | 1,260,054 | ||||
109,162 | 103,850 | 242,646 | 110,093 | ||||
173,857 | 139,332 | 639,140 | 1,149,961 | ||||
190,004 | 234,577 | 476,159 | 741,549 | ||||
175,347 | 71,378 | 433,306 | 222,823 | ||||
233,866 | 209,014 | 732,491 | 1,129,493 | ||||
3,992 | 5,254 | 11,720 | 14,923 | ||||
30,000 | - | 40,000 | - | ||||
96,972 | 87,281 | 267,197 | 302,600 | ||||
25,303 | 87,269 | 141,788 | 265,620 | ||||
(50,000) | - | (50,000) | - | ||||
705,484 | 694,773 | 2,052,661 | 2,677,008 | ||||
(531,627) | (555,441) | (1,413,521) | (1,527,047) | ||||
- | (41,424) | (17,498) | (56,199) | ||||
- | (166) | - | (659) | ||||
- | - | - | (14,561) | ||||
(249,949) | (23,653) | (58,832) | (31,780) | ||||
- | - | - | (104,008) | ||||
- | (1,675,384) | - | (1,675,384) | ||||
- | - | - | 56,535 | ||||
19,231 | - | 25,542 | (4,686) | ||||
- | (100,000) | - | (100,000) | ||||
73,832 | - | 89,886 | - | ||||
(688,513) | (2,396,068) | (1,374,423) | (3,457,789) | ||||
- | 123,932 | - | 3,316 | ||||
(688,513) | (2,272,136) | (1,374,423) | (3,454,473) | ||||
(42,231) | 13,139 | (6,362) | (14,034) | ||||
$ | (730,744) | $ | (2,258,997) | $ | (1,380,785) | $ | (3,468,507) |
$ | - | $ | (0.02) | $ | (0.01) | $ | (0.03) |
200,487,818 | 147,077,136 | 183,935,158 | 133,254,414 | ||||
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
-2-
Bhang Inc.
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficiency)
For the nine month periods ended September 30, 2021 and 2020
Expressed in United States Dollars
Equity | Accumulated | |||||||||||||||
Share | Portion of | Other | ||||||||||||||
Share Capital | Treasury | Contributed | Subscriptions | Promissory | Comprehensive | Accumulated | ||||||||||
SVS | MVS | Amount | Shares | Surplus | Payable | Notes | Loss | Deficit | Total | |||||||
Balance - January 1, 2020 | 51,512,502 | 61,377.202 | $ 15,782,234 | $ | - | $ | 776,664 | $ | 1,000,000 | $ | 36,995 | $ | (65,903) | $ (18,181,634) | $ | (651,644) |
Proceeds of private placements | ||||||||||||||||
(note 18(ii)) | 3,571,428 | - | 270,075 | - | 106,148 | - | - | - | - | 376,223 | ||||||
Issued in connection with share | ||||||||||||||||
swap (note 18(ii)) | 14,285,714 | - | 967,541 | - | - | - | - | - | - | 967,541 | ||||||
Issued to acquire additional | ||||||||||||||||
interest in joint venture | ||||||||||||||||
(note 18(I)) | 536,016 | - | 80,616 | - | - | - | - | - | - | 80,616 | ||||||
Issued for upon conversion of | ||||||||||||||||
convertible promissory notes | ||||||||||||||||
payable (note 18 (vii)) | 6,666,667 | - | 483,154 | - | 254,408 | - | (36,995) | - | 36,995 | 737,562 | ||||||
Issued for services rendered | ||||||||||||||||
(note 18 (iii)) | 1,855,238 | - | 179,299 | - | - | - | - | - | - | 179,299 | ||||||
Conversion of MVS to SVS | ||||||||||||||||
(note 18(vi)) | 14,084,701 | (14,084.701) | - | - | - | - | - | - | - | - | ||||||
Issued in connection with | ||||||||||||||||
settlement of debt | ||||||||||||||||
(note 18(viii)) | 12,809,524 | - | 1,179,601 | - | 200,801 | - | - | - | - | 1,380,402 | ||||||
Share-based compensation | - | - | 14,134 | - | 276,272 | - | - | - | - | 290,406 | ||||||
(note 19)) | ||||||||||||||||
Issuance costs | - | - | (19,767) | - | - | - | - | - | - | (19,767) | ||||||
Renegotiation of license agreement | ||||||||||||||||
(note 8(b)) | - | - | - | - | - | (1,000,000) | - | - | - | (1,000,000) | ||||||
MVS reacquired upon disposition | - | (2,379.122) | (170,444) | - | - | - | - | - | 154,405 | (16,039) | ||||||
of Red Ace (note 18(ix)) | ||||||||||||||||
Net loss for the period | - | - | - | - | - | - | - | - | (3,454,473) | (3,454,473) | ||||||
Cumulative Translation Reserve | - | - | - | - | - | - | - | (14,034) | - | (14,034) | ||||||
Balance - September 30, 2020 | 105,321,790 | 44,913.379 | $ 18,766,443 | $ | - | $ | 1,614,293 | $ | - | $ | - | $ | (79,937) | $ (21,444,707) | $ | (1,143,908) |
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
-3-
Bhang Inc.
Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficiency)
For the nine month periods ended September 30, 2021 and 2020
Expressed in United States Dollars
Equity | Accumulated | |||||||||||||||
Share | Portion of | Other | ||||||||||||||
Share Capital | Treasury | Contributed | Subscriptions | Promissory | Comprehensive | Accumulated | ||||||||||
SVS | MVS | Amount | Shares | Surplus | Payable | Notes | Loss | Deficit | Total | |||||||
Balance - January 1, 2021 | 104,792,624 | 44,913.379 | $ 18,178,610 | $ | - | $ | 2,877,652 | $ | - | $ | - | $ | (97,957) | $ (22,346,659) | $ | (1,388,354) |
Proceeds of private placements | ||||||||||||||||
(note 18(i)) | 27,240,192 | - | 1,408,416 | - | - | - | - | - | - | 1,408,416 | ||||||
Issued in connection with | ||||||||||||||||
settlement of amount due to | ||||||||||||||||
shareholder (note 18(ii)) | 23,661,623 | - | 1,214,088 | - | - | - | - | - | - | 1,214,088 | ||||||
Cancellation of SVS | ||||||||||||||||
(note 18(iii)) | (170,000) | - | (13,100) | - | 13,100 | - | - | - | - | - | ||||||
Conversion of MVS to SVS | ||||||||||||||||
(note 18 (iv)) | 10,000,000 | (10,000) | - | - | - | - | - | - | - | - | ||||||
Share-based compensation | ||||||||||||||||
(note 19)) | - | - | 11,467 | - | 130,322 | - | - | - | - | 141,789 | ||||||
Issuance costs | - | - | (16,586) | - | - | - | - | - | - | (16,586) | ||||||
Net loss for the period | - | - | - | - | - | - | - | - | (1,374,423) | (1,374,423) | ||||||
Cumulative Translation Reserve | - | - | - | - | - | - | - | (6,362) | - | (6,362) | ||||||
Balance - September 30, 2021 | 165,524,439 | 34,913.379 | $ 20,782,895 | $ | - | $ | 3,021,074 | $ | - | $ | - | $ | (104,319) | $ (23,721,082) | $ | (21,432) |
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
-4-
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Bhang Inc. published this content on 07 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 December 2021 16:41:02 UTC.