Annual and Q1 Financial Statements
MYDECINE ANNOUCES FILING OF AUDITED AND Q1 FINANCIAL STATEMENTS
Vancouver, British Columbia, July 8, 2024— Mydecine Innovations Group Inc. (the “Company”) (CSE: MYCO) (FSE: 0NF0) (OTC: MYCOF) (AQSE: MYIG) is pleased to confirm that further to its news release dated June 14, 2024, the Company has filed on SEDAR+ its audited financial statements, accompanying management discussion and analysis and related CEO and CFO certifications for the period ended December 31, 2023 (the "Annual Filings") and its interim Q1 financial statements, accompanying management discussion and analysis and related CEO and CFO certifications for the period ended March 31, 2024 (the "Quarterly Filings"). The Annual Filings and Quarterly Filings can be obtained on the Company's SEDAR+ profile at www.sedarplus.ca.
The final results for the year ended 31 December 2023 are set out below.
The Directors of Mydecine take responsibility for this announcement.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
On behalf of the Board of Directors,
MYDECINE INNOVATIONS GROUP INC.
Joshua Bartch
Chief Executive Officer
AQSE Corporate Advisor
Novum Securities Limited Tel: +44 (0)207 399 9400
David Coffman/ George Duxberry
About Mydecine Innovations Group Inc.
Mydecine Innovations Group™ is a biotechnology company developing the next generation of innovative medications and therapies to address mental health disorders such as nicotine addiction and posttraumatic stress disorder (PTSD). The core strategy blends advanced technology with an elaborate infrastructure for drug discovery and development. Mydecine's dedicated multinational team constantly develops new paths for breakthrough treatment solutions in areas with considerable unmet needs. By collaborating with some of the world's leading specialists, the Company aspires to responsibly speed up the development of breakthrough medications to provide patients with safer and more effective treatment solutions. At the same time, Mydecine's approach focuses on the next generation of psychedelic medicine by creating innovative compounds with unmatched therapeutic potential through its clinical trial efforts with worldclass scientific and regulatory expertise.
Learn more at: https://www.mydecine.com/ and follow the company on Twitter, LinkedIn, YouTube, and Instagram.
Forward-looking Information Statement
This news release may contain certain “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian and United States securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the anticipated timing for the filing of the Annual Filings, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations
NEITHER THE CSE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Consolidated Statements of Financial Position
(Expressed In Canadian Dollars)
| As at, | Note | December 31, 2023$ | December 31, 2022 (restated) (Note 17)$ |
| Current assets | |||
| Cash | 37,646 | 11,030 | |
| Other receivables | 4 | - | 86,667 |
| Sales tax receivable | 155,455 | 276,135 | |
| Marketable securities, at fair value through profit and loss | 5 | - | 6,950,019 |
| Prepaids and deposits | 6 | 19,278 | 1,220,349 |
| Total current assets | 212,379 | 8,544,200 | |
| Non-current assets | |||
| Prepaids and deposits | 6 | - | 678,916 |
| Property and equipment | 7 | - | 9,876 |
| Total assets | 212,379 | 9,232,992 | |
| Current liabilities | |||
| Accounts payable and accrued liabilities | 14 | 6,704,267 | 5,333,959 |
| Notes payable | 9 | 209,447 | 85,204 |
| Convertible debentures, net | 8 | 5,213,984 | - |
| Other liability, at fair value through profit and loss | 10 | - | 399,774 |
| Total current liabilities | 12,127,698 | 5,818,937 | |
| Non-current liabilities | |||
| Convertible debentures, net | 8 | - | 4,696,974 |
| Total liabilities | 12,127,698 | 10,515,911 | |
| Shareholders’ equity (deficiency) | |||
| Share capital | 11 | 126,123,011 | 115,918,379 |
| Contributed surplus | 11 | 16,787,778 | 16,787,778 |
| Equity portion of convertible debentures | 8 | 285,756 | 175,756 |
| Deficit | (155,111,864) | (134,164,832) | |
| Total shareholders’ equity (deficiency) | (11,915,319) | (1,282,919) | |
| Total liabilities and shareholders’ equity (deficiency) | 212,379 | 9,232,992 |
Consolidated Statements of Loss and Comprehensive Loss
(Expressed In Canadian Dollars)
| For the years ended, | Note | December 31, 2023 | December 31, 2022 (restated)(Note 17) |
| Expenses | |||
| Finance cost | 8,9 | 1,302,738 | 911,594 |
| Corporate development | 544,366 | 2,574,487 | |
| Depreciation – property and equipment | 7 | 9,876 | 128,861 |
| Consulting fees | 4,405,681 | 5,119,275 | |
| Director and management fees | 13 | 943,680 | 821,594 |
| Foreign exchange loss (gain) | 1,553 | 175,669 | |
| Insurance | 55,079 | 926,848 | |
| Office and miscellaneous | 51,234 | 175,374 | |
| Professional fees | 1,208,116 | 1,059,559 | |
| Regulatory and filing fees | 155,947 | 133,193 | |
| Research and development | 1,083,853 | 3,513,106 | |
| Salaries | 13 | 1,090,568 | 1,518,704 |
| Total expenses | 10,852,691 | 17,058,264 | |
| Other income (expenses) | |||
| Change in fair value of derivative liabilities, at fair value through profit and loss | 10 | - | 974,536 |
| Realized loss on marketable securities, at fair value through profit and loss | 5 | (5,139,452) | - |
| Revaluation of marketable securities, at fair value through profit and loss | 5 | - | 960,957 |
| Impairment loss on loan receivable | 5 | (1,285,365) | - |
| Other income | 5 | 26,667 | 93,656 |
| Change in fair value of financial liability | 10 | - | (399,774) |
| Gain on settlement of financial liability | 10 | 53,107 | - |
| Forgiveness of accounts payable | 702 | - | |
| Loss on prepaids | 6 | (3,750,000) | - |
| Loss on disposal of equipment | 7 | - | (316,208) |
| Total other income (expenses) | (10,094,341) | 1,313,167 | |
| Loss from continuing operations | (20,947,032) | (15,745,097) | |
| Income from discontinued operations | 1,4 | - | 6,495,405 |
| Net loss and comprehensive loss for the year | (20,947,032) | (9,249,692) | |
| Net loss per share – Basic and diluted from continuing operations | (0.68) | (1.07) | |
| Weighted average number of shares outstanding – Basic and diluted | 30,696,926 | 8,647,471 | |
Consolidated Statements of Shareholders’ Equity (Deficiency)
(Expressed In Canadian Dollars)
| Note | Number of Shares |
Share Capital |
Contributed Surplus |
Equity Component of Convertible Debentures |
Deficit | Total Shareholders’ Equity (Deficiency) |
||||||
| Balance, December 31, 2021 | 5,218,600 | $ | 107,662,388 | $ | 17,288,315 | $ | 175,756 | $ | (124,915,140) | $ | 211,319 | |
| Shares issued for financing | 11 | 8,645,577 | 7,247,840 | 318,127 | - | - | 7,565,967 | |||||
| Share issuance cost | 11 | - | (814,738) | 156,819 | - | - | (657,919) | |||||
| Share issued for debt settlements | 11 | 950,263 | 541,650 | - | - | - | 541,650 | |||||
| MindLeap Health Inc.’s – anti dilution clause | 11 | 53,175 | 305,756 | - | - | - | 305,756 | |||||
| Neuropharm Inc.’s – anti dilution clause | 11 | 10,397 | 544,001 | (544,001) | - | - | - | |||||
| Performance Warrants exercised | 11 | 17,600 | 431,482 | (431,482) | - | - | - | |||||
| Net loss for the year | - | - | - | - | (9,249,692) | (9,249,692) | ||||||
| Balance, December 31, 2022 (restated) (Note 17) | 14,895,612 | $ | 115,918,379 | $ | 16,787,778 | $ | 175,756 | $ | (134,164,832) | $ | (1,282,919) | |
| Shares issued for financing | 11 | 8,969,674 | 3,608,499 | - | - | - | 3,608,499 | |||||
| Shares issued for services | 11 | 24,216,667 | 4,570,000 | - | - | - | 4,570,000 | |||||
| Share issued for debt | 11 | 3,818,851 | 1,679,465 | - | - | - | 1,679,465 | |||||
| MindLeap Health Inc.’s – anti dilution clause settlement | 11 | 666,667 | 346,666 | - | - | - | 346,666 | |||||
| Obligation to issue shares | 8 | - | - | - | 110,000 | - | 110,000 | |||||
| Net loss for the year | - | - | - | - | (20,947,032) | (20,947,032) | ||||||
| Balance, December 31, 2023 | 52,567,471 | $ | 126,123,011 | $ | 16,787,778 | $ | 285,756 | $ | (155,111,864) | $ | (11,915,319) |
Consolidated Statements of Cash Flows
(Expressed In Canadian Dollars)
| For the years ended, | Note | December 31, 2023 | December 31, 2022 (restated) (Note 17) | ||
| Cash flows used in | |||||
| Operating activities | |||||
| Net loss for the period from continuing operations | $ | (20,947,032) | $ | (15,745,097) | |
| Items not affecting cash: | |||||
| Depreciation | 7 | 9,876 | 128,861 | ||
| Finance cost | 8,9 | 1,302,738 | 904,782 | ||
| Change in fair value of derivative liability | 10 | - | (974,536) | ||
| Change in fair value of financial liability | 10 | - | 399,774 | ||
| Unrealized foreign exchange gain | (1,484) | 11,020 | |||
| Revaluation of marketable securities | 5 | - | (960,957) | ||
| Realized loss on marketable security | 5 | 5,139,452 | - | ||
| Gain on termination of lease | 7 | - | 316,208 | ||
| Gain on settlement of financial liability | 10 | (53,107) | - | ||
| Loss on prepaids | 6 | 3,750,000 | - | ||
| Impairment of loan receivables | 5 | 1,285,365 | - | ||
| Changes in operating activities from continuing operations | (9,514,192) | (15,919,945) | |||
| Changes in operating activities from discontinued operations | 4 | - | (433,363) | ||
| Changes in operating activities | (9,514,192) | (16,485,980) | |||
| Changes in non-cash working capital items: | |||||
| Accounts receivable | 86,667 | (82,811) | |||
| Prepaids and deposits | 1,879,987 | 3,403,114 | |||
| Sales taxes receivable | 120,680 | (97,128) | |||
| Accounts payable and accrued liabilities | 3,209,773 | 4,702,204 | |||
| Cash used in operating activities | (4,217,085) | (8,427,929) | |||
| Investing activities | |||||
| Sale of marketable securities | 525,202 | - | |||
| Cash disposed on sale of Mindleap | 4 | - | (2,076) | ||
| Lease payments | - | (35,466) | |||
| Net cash used in investing activities | 525,202 | (37,542) | |||
| Financing activities | |||||
| Proceeds from sale of shares, net of cash share issuance cost | 11 | 3,608,499 | 6,908,048 | ||
| Proceeds from note payable | 9 | 110,000 | 175,642 | ||
| Repayment of note | 9 | - | (102,500) | ||
| Net cash provided from financing activities | 3,718,499 | 6,981,190 | |||
| Increase in cash during the year | 26,616 | (1,484,281) | |||
| Cash, beginning of the year | 11,030 | 1,495,311 | |||
| Cash, end of the year | $ | 37,646 | $ | 11,030 | |
| Non-Cash Investing and Financing Activities | |||||
| Marketable securities transferred in lieu of cash for convertible debentures | 8 | $ | - | $ | 550,000 |
| Shares issued to settle debt | 11 | $ | 2,499,467 | $ | 541,650 |
| MindLeap Health Inc.’s – anti dilution clause settlement | 11 | $ | 346,666 | $ | - |
| Sale of subsidiary | 4 | $ | - | $ | 6,928,768 |
This financial information has been extracted from the audited financial statements of the Company for the year ended 31 December 2023. The financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). The Annual Report is available from the Company's website at https://mydecine.com/.
