SEDAR Interim Financial Statements

[
  {
    "companyName": "Eat Well Investment Group Inc.",
    "reportingPeriodEnd": "2024-09-30",
    "reportStatus": "Unaudited",
    "auditorName": null,
    "auditorKeyMatters": [],
    "balanceSheet": {
      "cash": { "2024-09-30": 1056403, "2023-12-31": 4276888 },
      "accountsReceivable": { "2024-09-30": 12086878, "2023-12-31": 9254288 },
      "inventory": { "2024-09-30": 6661801, "2023-12-31": 5964743 },
      "prepaidExpensesAndOtherCurrentAssets": { "2024-09-30": 986624, "2023-12-31": 920324 },
      "debenture": { "2024-09-30": 1, "2023-12-31": 1 },
      "totalCurrentAssets": { "2024-09-30": 20791707, "2023-12-31": 20416244 },
      "propertyPlantAndEquipmentNet": { "2024-09-30": 11272900, "2023-12-31": 12025758 },
      "intangibleAssetsNet": { "2024-09-30": 15428817, "2023-12-31": 18021780 },
      "goodwill": { "2024-09-30": 13875298, "2023-12-31": 13875298 },
      "privateInvestmentsAtFairValueThroughProfitOrLoss": { "2024-09-30": 1166663, "2023-12-31": 1166663 },
      "investmentsInMarketableSecurities": { "2024-09-30": 1, "2023-12-31": 1 },
      "totalAssets": { "2024-09-30": 62535386, "2023-12-31": 65505744 },
      "accountsPayable": { "2024-09-30": 6109054, "2023-12-31": 6783203 },
      "accruedLiabilities": { "2024-09-30": 6928826, "2023-12-31": 2125522 },
      "interestPayable": { "2024-09-30": 1604816, "2023-12-31": 247915 },
      "loansPayableCurrentPortion": { "2024-09-30": 11424840, "2023-12-31": 11662188 },
      "totalCurrentLiabilities": { "2024-09-30": 26067536, "2023-12-31": 20818828 },
      "futureIncomeTaxLiability": { "2024-09-30": 5388066, "2023-12-31": 6120148 },
      "loansPayableLongTermPortion": { "2024-09-30": 21246170, "2023-12-31": 22340410 },
      "totalLiabilities": { "2024-09-30": 52701772, "2023-12-31": 49279386 },
      "shareCapital": { "2024-09-30": 57763690, "2023-12-31": 57763690 },
      "commitmentToIssueShares": { "2024-09-30": 41620369, "2023-12-31": 41620369 },
      "contributedSurplus": { "2024-09-30": 9350265, "2023-12-31": 9350265 },
      "accumulatedOtherComprehensiveIncome": { "2024-09-30": 193135, "2023-12-31": 70276 },
      "deficit": { "2024-09-30": -100122177, "2023-12-31": -93076383 },
      "totalEatWellInvestmentGroupShareholdersEquity": { "2024-09-30": 8805282, "2023-12-31": 15728217 },
      "nonControllingInterestInSubsidiary": { "2024-09-30": 1028332, "2023-12-31": 498141 },
      "totalShareholdersEquity": { "2024-09-30": 9833614, "2023-12-31": 16226358 },
      "derivedMetrics": {
        "cashPerShare": 0.0062,
        "workingCapitalPerShare": -0.0311
      }
    },
    "incomeStatement": {
      "nineMonthsEnded2024-09-30": {
        "sales": 35393160,
        "costOfSales": 32113352,
        "grossProfit": 3279808,
        "realizedGainOnInvestment": 0,
        "unrealizedLossOnInvestment": 0,
        "netInvestmentGainLoss": 0,
        "grossMargin": 3279808,
        "generalAndAdministrative": 566006,
        "wagesAndSalaries": 2850290,
        "employeeBenefits": 301792,
        "professionalFees": 469420,
        "salesAndMarketingExpenses": 157465,
        "corporateInsurance": 609609,
        "corporateDevelopment": 0,
        "shareholderCosts": 0,
        "shareBasedCompensation": 0,
        "depreciationExpense": 324425,
        "amortizationExpense": 2592963,
        "totalOperatingExpenses": 7871969,
        "netOperatingLoss": -4592161,
        "lossGainOnForeignExchange": -153178,
        "interestIncomeAndOtherIncome": 4599,
        "interestExpense": -2167500,
        "gainOnSaleOfSubsidiary": 0,
        "financingAndTransactionCosts": 0,
        "writeOffOfDebenture": 0,
        "gainOnDisposalOfFixedAssets": 4996,
        "otherIncomeExpense": -2311083,
        "lossBeforeTaxes": -6903244,
        "provisionForIncomeTaxes": 387641,
        "lossFromContinuingOperations": -6515603,
        "lossFromDiscontinuedOperations": 0,
        "netLoss": -6515603,
        "foreignCurrencyTranslation": 122859,
        "comprehensiveLoss": -6392744,
        "lossAttributableToOwnersOfParent": -7045794,
        "lossAttributableToNonControllingInterest": 530191,
        "basicEarningsPerShareContinuingOperations": 0.04,
        "dilutedEarningsPerShareContinuingOperations": 0.04,
        "basicEarningsPerShareTotal": 0.04,
        "dilutedEarningsPerShareTotal": 0.04,
        "weightedAverageSharesOutstandingBasic": 169661148,
        "weightedAverageSharesOutstandingDiluted": 169661148
      },
      "nineMonthsEnded2023-09-30": {
        "sales": 45706615,
        "costOfSales": 41044343,
        "grossProfit": 4662272,
        "realizedGainOnInvestment": 705,
        "unrealizedLossOnInvestment": -11207284,
        "netInvestmentGainLoss": -11206579,
        "grossMargin": -6544307,
        "generalAndAdministrative": 566450,
        "wagesAndSalaries": 2853686,
        "employeeBenefits": 367226,
        "professionalFees": 2374569,
        "salesAndMarketingExpenses": 103508,
        "corporateInsurance": 443522,
        "corporateDevelopment": 36915,
        "shareholderCosts": 13797,
        "shareBasedCompensation": 855517,
        "depreciationExpense": 289619,
        "amortizationExpense": 2592963,
        "totalOperatingExpenses": 10497772,
        "netOperatingLoss": -17042079,
        "lossGainOnForeignExchange": 109304,
        "interestIncomeAndOtherIncome": 3362,
        "interestExpense": -3821086,
        "gainOnSaleOfSubsidiary": 6257413,
        "financingAndTransactionCosts": -616606,
        "writeOffOfDebenture": -1517884,
        "gainOnDisposalOfFixedAssets": 3309,
        "otherIncomeExpense": 417812,
        "lossBeforeTaxes": -16624267,
        "provisionForIncomeTaxes": 226059,
        "lossFromContinuingOperations": -16398208,
        "lossFromDiscontinuedOperations": -587616,
        "netLoss": -16985824,
        "foreignCurrencyTranslation": -9113,
        "comprehensiveLoss": -16994937,
        "lossAttributableToOwnersOfParent": -17056652,
        "lossAttributableToNonControllingInterest": 70828,
        "basicEarningsPerShareContinuingOperations": 0.10,
        "dilutedEarningsPerShareContinuingOperations": 0.10,
        "basicEarningsPerShareTotal": 0.10,
        "dilutedEarningsPerShareTotal": 0.10,
        "weightedAverageSharesOutstandingBasic": 165701693,
        "weightedAverageSharesOutstandingDiluted": 165701693
      }
    },
    "cashFlowStatement": {
      "nineMonthsEnded2024-09-30": {
        "netLoss": -6515603,
        "realizedGainOnInvestment": 0,
        "unrealizedLossOnInvestment": 0,
        "shareBasedCompensation": 0,
        "depreciationAndAmortization": 3367970,
        "financeAndTransactionCosts": 0,
        "gainOnSaleOfSubsidiary": 0,
        "unrealizedFX": 0,
        "gainOnDisposalOfFixedAssets": -4996,
        "writeOffOfDebenture": 0,
        "accountsReceivable": -2832590,
        "inventory": -697058,
        "prepaidExpenses": -66300,
        "deferredTaxLiability": -732082,
        "accountsPayable": -674149,
        "accruedExpenses": 4803304,
        "interestPayable": 1356901,
        "cashFlowsUsedInOperatingActivitiesOfContinuingOperations": -1994603,
        "cashFlowsUsedInOperatingActivitiesOfDiscontinuingOperations": 0,
        "cashFlowsUsedInOperatingActivities": -1994603,
        "purchasesOfPropertyPlantAndEquipment": -89653,
        "disposalOfPropertyPlantAndEquipment": 72500,
        "saleOfSubsidiary": 0,
        "cashFlowsUsedInInvestingActivities": -17153,
        "principalRepaymentsOnLoans": -1398526,
        "proceedsFromLoans": 66938,
        "feesFromLoans": 0,
        "proceedsFromExerciseOfWarrants": 0,
        "repurchaseOfCommonShares": 0,
        "cashFlowsUsedInFinancingActivitiesOfContinuingOperations": -1331588,
        "cashFlowsUsedInFinancingActivitiesOfDiscontinuingOperations": 0,
        "cashFlowsUsedInFinancingActivities": -1331588,
        "effectsOfChangesInForeignExchangeRatesOnCash": 122859,
        "netChangeInCash": -3220485,
        "cashBeginning": 4276888,
        "cashEnd": 1056403
      },
      "nineMonthsEnded2023-09-30": {
        "netLoss": -16985824,
        "realizedGainOnInvestment": -705,
        "unrealizedLossOnInvestment": 11207284,
        "shareBasedCompensation": 855517,
        "depreciationAndAmortization": 3895832,
        "financeAndTransactionCosts": 616606,
        "gainOnSaleOfSubsidiary": -6257413,
        "unrealizedFX": -318575,
        "gainOnDisposalOfFixedAssets": -3309,
        "writeOffOfDebenture": 1517884,
        "accountsReceivable": 2108637,
        "inventory": -639060,
        "prepaidExpenses": -628558,
        "deferredTaxLiability": -694267,
        "accountsPayable": 1277383,
        "accruedExpenses": 10413,
        "interestPayable": 2375355,
        "cashFlowsUsedInOperatingActivitiesOfContinuingOperations": -1607914,
        "cashFlowsUsedInOperatingActivitiesOfDiscontinuingOperations": -54886,
        "cashFlowsUsedInOperatingActivities": -1662800,
        "purchasesOfPropertyPlantAndEquipment": -1187066,
        "disposalOfPropertyPlantAndEquipment": 132356,
        "saleOfSubsidiary": 799396,
        "cashFlowsUsedInInvestingActivities": -255314,
        "principalRepaymentsOnLoans": -43286566,
        "proceedsFromLoans": 41379997,
        "feesFromLoans": -166606,
        "proceedsFromExerciseOfWarrants": 1068915,
        "repurchaseOfCommonShares": -39750,
        "cashFlowsUsedInFinancingActivitiesOfContinuingOperations": -1096935,
        "cashFlowsUsedInFinancingActivitiesOfDiscontinuingOperations": 52925,
        "cashFlowsUsedInFinancingActivities": -1044010,
        "effectsOfChangesInForeignExchangeRatesOnCash": -9114,
        "netChangeInCash": -2971238,
        "cashBeginning": 6536199,
        "cashEnd": 3564961
      }
    },
    "investmentsAndOtherAssets": [
      {
        "type": "Private equity",
        "description": "Investment in Pata Foods, Inc. (dba Amara) - Series A preferred shares",
        "ownershipPercentage": 28,
        "value": 1166663,
        "notes": "Held at fair value through profit or loss. Ownership reverted to 28% due to missed payments on promissory note. Remaining shares sold in March 2025."
      },
      {
        "type": "Marketable securities",
        "description": "TRxADE Health, Inc. (now Scienture Holdings, Inc.) common shares (5,177 shares of Series B Preferred Stock received from sale of Sapientia)",
        "ownershipPercentage": null,
        "value": 1,
        "notes": "Impaired to nominal value. Unrealized loss of $11,219,149 recognized in 2023. Legal proceedings initiated to recover amounts."
      }
    ],
    "shareStructure": {
      "authorizedShares": "Unlimited",
      "issuedShares": 169661148,
      "classesOfShares": ["Common Shares"],
      "warrants": [
        { "number": 1000000, "exercisePrice": 0.58, "expiryDate": "2026-07-30" },
        { "number": 3345333, "exercisePrice": 1.00, "expiryDate": "2025-02-15" },
        { "number": 5201995, "exercisePrice": 0.75, "expiryDate": "2024-12-23" },
        { "number": 558847, "exercisePrice": 0.55, "expiryDate": "2024-12-23" }
      ],
      "options": [
        { "number": 4100000, "exercisePrice": 0.56, "expiryDate": "2026-02-26" }
      ],
      "rightsConvertibleInstruments": "Commitment to issue up to 65,031,826 common shares to Novel Agri-Technologies Inc. (net profits interest shares, no set expiry date)."
    },
    "managementCompensation": {
      "currency": "CAD",
      "periods": {
        "nineMonthsEnded2024-09-30": {
          "salaries": 870628,
          "benefits": 9234,
          "professionalFees": 172016,
          "legalFees": 68882,
          "rentExpense": 14893,
          "shareBasedCompensationOnRSUs": 0,
          "shareBasedCompensationOnStockOptions": 0,
          "total": 1135653
        },
        "nineMonthsEnded2023-09-30": {
          "salaries": 862764,
          "benefits": 47509,
          "professionalFees": 591161,
          "legalFees": 632449,
          "rentExpense": 14528,
          "shareBasedCompensationOnRSUs": 83988,
          "shareBasedCompensationOnStockOptions": 15812,
          "total": 2248211
        }
      },
      "namedIndividuals": [
        {
          "name": "Marc Aneed",
          "title": "Former Chief Executive Officer",
          "period": "nineMonthsEnded2024-09-30",
          "components": { "salary": 426281, "bonus": null, "total": 426281 }
        },
        {
          "name": "Marc Aneed",
          "title": "Former Chief Executive Officer",
          "period": "nineMonthsEnded2023-09-30",
          "components": { "salary": 458012, "bonus": null, "total": 458012 }
        },
        {
          "name": "Daniel Brody",
          "title": "Chief Executive Officer and Director",
          "period": "nineMonthsEnded2024-09-30",
          "components": { "salary": 186909, "bonus": null, "total": 186909 }
        },
        {
          "name": "Daniel Brody",
          "title": "Chief Executive Officer and Director",
          "period": "nineMonthsEnded2023-09-30",
          "components": { "salary": 184138, "bonus": null, "total": 184138 }
        },
        {
          "name": "Pat Dunn",
          "title": "Chief Financial Officer (through private corporation Dunn, Pariser & Peyrot)",
          "period": "nineMonthsEnded2024-09-30",
          "components": { "salary": 312364, "bonus": null, "total": 312364 }
        },
        {
          "name": "Pat Dunn",
          "title": "Chief Financial Officer (through private corporation Dunn, Pariser & Peyrot)",
          "period": "nineMonthsEnded2023-09-30",
          "components": { "salary": 675986, "bonus": null, "total": 675986 }
        },
        {
          "name": "Nick Grafton",
          "title": "Director",
          "period": "nineMonthsEnded2024-09-30",
          "components": { "salary": 146250, "bonus": null, "total": 146250 }
        },
        {
          "name": "Nick Grafton",
          "title": "Director",
          "period": "nineMonthsEnded2023-09-30",
          "components": { "salary": 146250, "bonus": null, "total": 146250 }
        }
      ],
      "otherRelatedPartyTransactions": [
        {
          "counterparty": "McMillan LLP",
          "description": "Legal fees (director is partner of McMillan)",
          "amount": 59907,
          "period": "nineMonthsEnded2024-09-30"
        },
        {
          "counterparty": "McMillan LLP",
          "description": "Legal fees (director is partner of McMillan)",
          "amount": 616695,
          "period": "nineMonthsEnded2023-09-30"
        },
        {
          "counterparty": "Daniel Brody",
          "description": "Loan from director (US$330,000 original, consolidated and increased subsequent to period)",
          "amount": 443465,
          "period": "yearEnded2023-12-31"
        },
        {
          "counterparty": "Pat Dunn",
          "description": "Advances to CFO",
          "amount": 93711,
          "period": "yearEnded2023-12-31"
        },
        {
          "counterparty": "Marc Aneed",
          "description": "Advances to former CEO",
          "amount": 112243,
          "period": "yearEnded2023-12-31"
        }
      ]
    },
    "subsequentEvents": [
      {
        "eventDate": "2024-10-18",
        "description": "Cortland Credit Facility amendment: maximum principal reduced to $11,802,529, maturity extended to December 15, 2024.",
        "impactValue": null
      },
      {
        "eventDate": "2025-02-01",
        "description": "Cortland Credit Facility maturity extended to March 31, 2025.",
        "impactValue": null
      },
      {
        "eventDate": "2025-04-28",
        "description": "Cortland Credit Facility amendment: maximum principal reduced to $12,752,723, interest rate set at greater of 5.05% above prime or 10%, maturity extended to September 30, 2025. No further draws allowed.",
        "impactValue": null
      },
      {
        "eventDate": "2025-10-09",
        "description": "Cortland Credit Facility maturity extended to March 31, 2026.",
        "impactValue": null
      },
      {
        "eventDate": "2026-04-06",
        "description": "Cortland Credit Facility maturity extended to September 30, 2026.",
        "impactValue": null
      },
      {
        "eventDate": "2025-02-11",
        "description": "BDC Loan #1 maturity extended from March 25, 2043 to March 25, 2044. BDC Loan #2 maturity extended from December 25, 2029 to June 25, 2030.",
        "impactValue": null
      },
      {
        "eventDate": "2025-06-26",
        "description": "BDC Loan #1 maturity further extended to August 25, 2044, interest rate increased to 6.20%. BDC Loan #2 maturity further extended to November 25, 2030, interest rate increased to 9.25%.",
        "impactValue": null
      },
      {
        "eventDate": "2026-01-07",
        "description": "BDC Loan #1 maturity extended to November 25, 2044. BDC Loan #2 maturity extended to February 25, 2031.",
        "impactValue": null
      },
      {
        "eventDate": "2024-10-01",
        "description": "Loan from Daniel Brody of US$25,000 at 20% interest per annum, due December 15, 2024.",
        "impactValue": null
      },
      {
        "eventDate": "2024-10-15",
        "description": "Loan from Daniel Brody of US$15,000 at 20% interest per annum, due December 15, 2024.",
        "impactValue": null
      },
      {
        "eventDate": "2024-11-20",
        "description": "Loan from Daniel Brody of US$12,000, non-interest bearing, due December 15, 2024.",
        "impactValue": null
      },
      {
        "eventDate": "2024-12-15",
        "description": "Consolidated loan from Daniel Brody of US$479,393 (including principal, interest, and fees) at 20% interest, due December 15, 2025. 1,000,000 RSUs to be issued.",
        "impactValue": null
      },
      {
        "eventDate": "2026-04-20",
        "description": "Consolidated loan from Daniel Brody of $650,000 at 20% simple interest, due on demand. 1,700,000 RSUs to be issued (total 4,700,000 RSUs).",
        "impactValue": null
      },
      {
        "eventDate": "2024-10-01",
        "description": "Loan from Pat Dunn of US$10,000 at 20% interest, due October 1, 2025.",
        "impactValue": null
      },
      {
        "eventDate": "2024-12-20",
        "description": "Loan from Pat Dunn of US$11,200 at 20% interest, due December 20, 2025.",
        "impactValue": null
      },
      {
        "eventDate": "2025-03-01",
        "description": "Sale of remaining 158,855 Amara shares for gross proceeds of US$1,250,189 (C$1,788,145).",
        "impactValue": 1788145
      },
      {
        "eventDate": "2025-01-06",
        "description": "Filed lawsuit against TRxADE Health, Inc. (Scienture Holdings), Superlatus Inc., and directors seeking collection of proceeds from Sapientia sale. Outcome uncertain.",
        "impactValue": null
      },
      {
        "eventDate": "2025-06-24",
        "description": "Completed non-brokered private placement of 9,000,000 units at $0.10 per unit for gross proceeds of $900,000. Each unit consists of one common share and one warrant exercisable at $0.12 until June 24, 2028.",
        "impactValue": 900000
      }
    ]
  }
]