Kaizen Discovery : Consolidated financials statements as at June 30, 2023

Kaizen Discovery Inc.

Condensed Interim Consolidated Financial Statements

Table of contents

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 shareholders' equity

3

Condensed interim consolidated statements of cash flows

4

Notes to the condensed interim consolidated financial statements

5-12

June 30,

December 31,

Notes

2023

2022

Assets

Current assets

Cash

$

593

$

867

Short-term financial assets

6

139

Receivables

30

15

Prepaid expenses and deposits

12

285

282

Total current assets

914

1,303

Non-current assets

Other assets

44

44

Property, plant and equipment

55

63

Mineral properties

3

3,336

3,419

Total assets

$

4,349

$

4,829

Liabilities

Current liabilities

Accounts payable and accrued liabilities

12

$

447

$

207

Provision

57

57

Promissory note

4

1,002

-

Total current liabilities

1,506

264

Non-current liabilities

Non-current provision

5

-

467

Total liabilities

$

1,506

$

731

Shareholders' equity

Share capital

6

$

62,980

$

62,916

Share-based payment reserve

10

4,772

4,696

Other reserves

452

452

Share purchase warrants

6

1,291

1,291

Accumulated other comprehensive loss

(596)

(519)

Accumulated deficit

(66,056)

(64,738)

Total shareholders' equity

$

2,843

$

4,098

Total liabilities and shareholders' equity

$

4,349

$

4,829

Three months ended

Six months ended

June 30,

June 30,

Notes

2023

2022

2023

2022

Operating expenses

Exploration expenses

8

$

(800)

$

(2,001)

$

(1,047)

$

(2,941)

Administrative expenses

9

(836)

(402)

(1,224)

(1,154)

Loss from operations

(1,636)

(2,403)

(2,271)

(4,095)

Other income (expenses)

Interest income

5

14

13

24

Loss on foreign exchange

(15)

(14)

(18)

(67)

Interest expense

(2)

(2)

(2)

(13)

Depreciation expense

(3)

(3)

(7)

(6)

Other (expense) income

5, 7

-

(7)

967

572

Loss before income taxes

(1,651)

(2,415)

(1,318)

(3,585)

Income taxes

-

-

-

-

Net loss for the period

$

(1,651)

$

(2,415)

$

(1,318)

$

(3,585)

Other comprehensive (loss) income

Items that will not be reclassified subsequently to loss:

Change in fair value of marketable securities

-

(8)

-

5

Items that may be reclassified subsequently to loss:

Currency translation adjustment

(73)

97

(77)

46

Total other comprehensive (loss) income for the period

$

(73)

$

89

$

(77)

$

51

Total comprehensive loss for the period

$

(1,724)

$

(2,326)

$

(1,395)

$

(3,534)

Loss per share (basic and diluted)

$

(0.03)

$

(0.04)

$

(0.02)

$

(0.05)

Weighted average number of basic and diluted shares outstanding

65,942,992

65,828,426

65,919,572

65,828,426

Accumulated

Share-based

Share

other

Notes

Number of

Share

payment

Other

purchase

comprehensive

Accumulated

shares

capital

reserve

reserves

warrants

(loss) income

deficit

Total

Balance at January 1, 2022

65,828,426

$

62,916

$

4,103

$

452

$

1,291

$

(744)

$

(60,167)

$

7,851

Net loss for the period

-

-

-

-

-

-

(3,585)

(3,585)

Other comprehensive income

-

-

-

-

-

51

-

51

Share-based payments

-

-

436

-

-

-

-

436

Balance at June 30, 2022

65,828,426

$

62,916

$

4,539

$

452

$

1,291

$

(693)

$

(63,752)

$

4,753

Balance at January 1, 2023

65,828,426

$

62,916

$

4,696

$

452

$

1,291

$

(519)

$

(64,738)

$

4,098

Net loss for the period

-

-

-

-

-

-

(1,318)

(1,318)

Settlement of restricted share units

10

114,566

64

(67)

-

-

-

-

(3)

Other comprehensive loss

-

-

-

-

-

(77)

-

(77)

Share-based payments

-

-

143

-

-

-

-

143

Balance at June 30, 2023

65,942,992

$

62,980

$

4,772

$

452

$

1,291

$

(596)

$

(66,056)

$

2,843