Amended and Restated Condensed Interim Consolidated Financial Statements
(Expressed in United States Dollars)
CENTR BRANDS CORP.
For the three months ended August 31, 2021 and 2020
(Unaudited)
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CENTR BRANDS CORP.
Amended and Restated Condensed Interim Consolidated Statements of Financial Position (Unaudited - Expressed in U.S. Dollars, unless otherwise stated)
August 31, 2021 | May 31, 2021 | |||
(As restated - | ||||
see Note 18) | ||||
Assets | ||||
Current assets: | ||||
Cash | $ 3,133,217 | $ | 832,047 | |
Accounts receivable | 562,933 | 153,427 | ||
Inventories (note 3) | 1,272,919 | 1,119,298 | ||
Prepaid expenses and other assets | 315,615 | 254,084 | ||
5,284,684 | 2,358,856 | |||
Property and equipment (note 4) | 30,654 | 16,221 | ||
Right-of-use assets (note 5) | 2,063 | 4,201 | ||
$ 5,317,401 | $ 2,379,278 | |||
Liabilities and Shareholders' Deficiency | ||||
Current liabilities: | ||||
Accounts payable and accrued liabilities (note 6) | $ 718,900 | $ | 772,825 | |
Due to related parties (note 12) | 692,071 | 622,112 | ||
Lease liability - current portion (note 5) | 3,724 | 6,205 | ||
1,414,695 | 1,401,142 | |||
Loans payable (note 7) | 31,680 | 33,189 | ||
Warrants liability (note 8) | 3,983,607 | 4,573,585 | ||
5,429,982 | 6,007,916 | |||
Shareholders' deficiency: | ||||
Share capital (note 9) | 17,330,468 | 13,004,027 | ||
Reserves (note 10) | 1,423,818 | 2,537,792 | ||
Deficit | (18,866,867) | (19,170,457) | ||
(112,581) | (3,628,638) | |||
$ 5,317,401 | $ 2,379,278 | |||
Subsequent events (Note 17)
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
Approved on behalf of the Board: | ||
"Joseph Meehan" | Director | |
"Arjan Chima" | Director |
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CENTR BRANDS CORP.
Amended and Restated Condensed Interim Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)
(Unaudited - Expressed in U.S. Dollars, unless otherwise stated)
For the three months ended August 31, 2021, and 2020
2021 | 2020 | |||
(As restated - | ||||
see Note 18) | ||||
Sales | $ | 920,116 | $ | 133,414 |
Cost of sales | 458,213 | 93,022 | ||
Gross profit | 461,903 | 40,392 | ||
Expenses: | ||||
General and administrative (note 11) | 1,270,458 | 670,073 | ||
Share-based compensation (note 10) | 119,090 | 63,830 | ||
Marketing | 83,515 | 75,847 | ||
Loss from operations | (1,011,160) | (769,358) | ||
Other income (expenses): | ||||
Gain on revaluation of warrants liability (note 8) | 1,325,781 | - | ||
Other expense | (11,031) | (16,745) | ||
Net income (loss) and comprehensive income (loss) | $ | 303,590 | $ | (786,103) |
Net income (loss) per share: | ||||
Basic (note 16) | $ | 0.00 | $ | (0.01) |
Diluted (note 16) | $ | 0.00 | $ | (0.01) |
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
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CENTR BRANDS CORP.
Amended and Restated Condensed Interim Consolidated Statements of Changes in Shareholders' Deficiency (Unaudited - Expressed in U.S Dollars, unless otherwise stated)
For the three months ended August 31, 2021, and 2020
Share capital | ||||||||||||||
(As restated - see Note 18) | Common shares | Reserves | ||||||||||||
Notes | Shares | Amount | Warrants | RSUs/Options | Total | Deficit | Total | |||||||
Balance, May 31, 2021 | 77,086,044 | $ | 13,004,027 | $ | - | $ | 2,537,792 | $ | 2,537,792 | $ | (19,170,457) | $ | (3,628,638) | |
Share-based compensation | 10 | - | - | - | 119,090 | 119,090 | - | 119,090 | ||||||
Warrants exercised | 8, 9(b) | 561,400 | 727,004 | - | - | - | - | 727,004 | ||||||
Shares issued in private placement | 9(b) | 3,140,852 | 2,564,134 | - | - | - | - | 2,564,134 | ||||||
Shares issuance cost | 9(b) | - | (197,761) | - | - | - | - | (197,761) | ||||||
Shares issued on vesting of restricted | ||||||||||||||
share units | 9(b), 10(b) | 4,950,000 | 1,233,064 | - | (1,233,064) | (1,233,064) | - | - | ||||||
Net Income for the period | - | - | - | - | - | 303,590 | 303,590 | |||||||
Balance, August 31, 2021 | 85,738,296 | $ | 17,330,468 | $ | - | $ | 1,423,818 | $ | 1,423,818 | $ | (18,866,867) | $ | (112,581) | |
Share capital | ||||||||||||||
Common shares | Reserves | |||||||||||||
Notes | Shares | Amount | Warrants | RSUs/Options | Total | Deficit | Total | |||||||
Balance, May 31, 2020 | 63,223,601 | $ | 4,862,661 | $ | 11,683 | $ | 427,788 | $ | 439,471 | $ | (4,925,101) | $ | 377,031 | |
Share-based compensation | 10 | - | - | - | 63,830 | 63,830 | - | 63,830 | ||||||
Loss for the period | - | - | - | - | - | (786,103) | (786,103) | |||||||
Balance, August 31, 2020 | 63,223,601 | $ | 4,862,661 | $ | 11,683 | $ | 491,618 | $ | 503,301 | $ | (5,711,204) | $ | (345,242) |
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
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CENTR BRANDS CORP.
Amended and Restated Condensed Interim Consolidated Statements of Cash Flows (Unaudited - Expressed in U.S. Dollars, unless otherwise stated)
Three months ended August 31, 2021, and 2020
(As restated - see Note 18) | 2021 | 2020 | |||
Cash provided by (used in): | |||||
Operating activities: | |||||
Net income (loss) for the period | $ | 303,590 | $ | (786,103) | |
Adjustments for non-cash items: | |||||
Depreciation | 5,689 | 7,298 | |||
Share-based compensation | 119,090 | 63,830 | |||
Gain on revaluation of warrants | (1,325,781) | - | |||
Foreign exchange | (1,509) | - | |||
Changes in non-cash working capital: | |||||
Accounts receivable | (409,506) | (30,286) | |||
Inventory | (153,621) | 67,075 | |||
Prepaid expense | (61,531) | (24,901) | |||
Accounts payable and accrued liabilities | (53,925) | 109,307 | |||
Due to related parties | 69,959 | 135,994 | |||
Interest paid | - | (414) | |||
Net cash used in operating activities | (1,507,545) | (458,170) | |||
Financing activities: | |||||
Net proceeds from issuance of common shares and warrants | 3,829,180 | - | |||
Payment of lease liability | (2,481) | (2,053) | |||
Net cash provided by (used in) financing activities | 3,826,699 | (2,053) | |||
Investing activities: | |||||
Purchase of property and equipment | (17,984) | - | |||
Net cash used in investing activities | (17,984) | - | |||
Increase (decrease) in cash | 2,301,170 | (460,223) | |||
Cash, beginning of period | 832,047 | 513,774 | |||
Cash, end of period | $ | 3,133,217 | $ | 53,521 | |
The accompanying notes form an integral part of these condensed interim consolidated financial statements.
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