Mydecine Innovations Group Inc - Annual and Q1 Financial Statements

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08/07/2024 07:00

Mydecine Innovations Group Inc - Annual and Q1 Financial Statements PR Newswire

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

contact@mydecineinc.com

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)
	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/.

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