SEDAR Interim Financial Statements

[
  {
    "companyName": "DIAMOND ESTATES WINES & SPIRITS INC.",
    "reportingPeriodEnd": "2025-12-31",
    "reportStatus": "Unaudited",
    "auditorName": null,
    "auditorKeyMatters": [],
    "balanceSheet": {
      "cash": 0,
      "accountsReceivable": 4074929,
      "inventories": 15656037,
      "prepaidExpenses": 857535,
      "mortgageReceivable": 0,
      "currentPortionOfFinanceLeaseReceivable": 60860,
      "derivativeAsset": 185736,
      "totalCurrentAssets": 20835097,
      "assetsHeldForSale": 4407049,
      "financeLeaseReceivable": 132412,
      "propertyPlantAndEquipment": 16837753,
      "rightOfUseAssets": 878621,
      "intangibleAssets": 4716373,
      "totalAssets": 47807305,
      "accountsPayableAndAccruedLiabilities": 5271669,
      "termLoansPayable": 12686115,
      "currentPortionOfLeaseLiabilities": 201964,
      "debenturesPayable": 4354492,
      "derivativeLiability": 0,
      "totalCurrentLiabilities": 22514240,
      "liabilitiesHeldForSale": 829254,
      "leaseLiabilities": 414058,
      "totalLiabilities": 23757552,
      "commonShares": 54216785,
      "contributedSurplus": 4817170,
      "accumulatedDeficit": -34984202,
      "totalShareholdersEquity": 24049753,
      "cashPerShare": 0.0,
      "workingCapitalPerShare": -0.0283
    },
    "incomeStatement": {
      "revenue": 25027336,
      "costOfSales": 10394680,
      "grossProfit": 14632656,
      "employeeCompensationAndBenefits": 4536085,
      "generalAndAdministrative": 3027233,
      "advertisingAndPromotion": 1999715,
      "commissions": 1272899,
      "deliveryAndWarehousing": 977549,
      "interestAndAccretion": 1574994,
      "shareBasedCompensation": 731075,
      "depreciationOfPropertyPlantAndEquipmentAndRouAssets": 203434,
      "amortizationOfIntangibleAssets": 157499,
      "totalExpenses": 14480483,
      "incomeLossBeforeUndernotedItems": 152173,
      "changeInFairValueOfDerivativeAssetLiability": 758868,
      "perigonConsideration": -403418,
      "regulatoryComplianceCosts": -353853,
      "gainLossOnDispositionOfIntangibleAssets": -231199,
      "restructuringCharge": -275913,
      "lossOnDeRecognitionOfRouAssets": 0,
      "impairmentProvisionAssetsHeldForSale": 0,
      "gainOnModificationOfDebenturesPayable": 567707,
      "netIncomeLossAndComprehensiveIncomeLoss": 214365,
      "basicAndFullyDilutedIncomeLossPerShare": 0.0,
      "weightedAverageSharesOutstanding": 66599415
    },
    "cashFlowStatement": {
      "netIncomeLossAndComprehensiveIncomeLoss": 214365,
      "depreciationPropertyPlantAndEquipmentAndRightOfUseAssets": 1114038,
      "amortizationOfIntangibleAssets": 157499,
      "lossOnDeRecognitionOfRouAsset": 0,
      "amortizationOfDeferredFinancingCosts": 25833,
      "gainOnModificationOfDebenturesPayable": -567707,
      "changeInFairValueOfDerivativeLiability": -758868,
      "perigonContingentConsideration": 403418,
      "lossGainOnDispositionOfIntangibleAssets": 231199,
      "shareBasedCompensation": 731075,
      "impairmentProvisionAssetsHeldForSale": 0,
      "fairValuePurchasePriceAccountingAdjustmentOnEwgInventory": 0,
      "accretionOnDebenturesPayable": 463334,
      "interestExpense": 1111660,
      "interestPaid": -818625,
      "itemsNotAffectingCash": 2307221,
      "changeInAccountsReceivable": 3227693,
      "changeInInventories": -1193369,
      "changeInPrepaidExpenses": -107644,
      "changeInAccountsPayableAndAccruedLiabilities": -360562,
      "changeInNonCashWorkingCapitalItems": 3873339,
      "cashFromOperatingActivities": 3873339,
      "purchaseOfPropertyPlantAndEquipmentAndIntangibleAssets": -224676,
      "downpaymentOnAcquisitionOfRightOfUseAssets": -30597,
      "paymentsReceivedUnderFinanceLeaseReceivable": 43466,
      "cashFromInvestingActivities": -211807,
      "proceedsOnMortgageReceivable": 500000,
      "netProceedsFromIssuanceOfCommonShares": 0,
      "deferredFinancingCosts": -20000,
      "repaymentOfLeaseLiabilities": -294190,
      "netDrawsAgainstRepaymentsOfRevolvingTermLoans": 470373,
      "repaymentOfDebenturesPayableAndAccruedCouponInterest": -505600,
      "repaymentOnNonRevolvingTermLoans": -1312115,
      "repaymentOfNewNonRevolvingTermLoan": -2500000,
      "cashFromFinancingActivities": -3661532,
      "changeInCash": 0,
      "cashBeginningOfPeriod": 0,
      "cashEndOfPeriod": 0
    },
    "investmentsAndOtherAssets": [
      {
        "type": "Finance Lease Receivable",
        "description": "Long-term finance lease receivable",
        "ownershipPercentage": null,
        "value": 132412,
        "notes": "Part of long-term assets"
      },
      {
        "type": "Mortgage Receivable",
        "description": "Vendor take-back mortgage from sale of Queenston Mile Vineyard",
        "ownershipPercentage": null,
        "value": 0,
        "notes": "Fully paid off in April 2025"
      },
      {
        "type": "Derivative Asset",
        "description": "Derivative asset related to 2025 Replacement Debentures",
        "ownershipPercentage": null,
        "value": 185736,
        "notes": "Recognized due to conversion price exceeding market price"
      }
    ],
    "shareStructure": {
      "authorizedShares": null,
      "issuedShares": 67818329,
      "classesOfShares": ["Common shares"],
      "warrants": [],
      "options": [
        {
          "number": 600000,
          "exercisePrice": 0.19,
          "expiryDate": "2030-10-23"
        },
        {
          "number": 650000,
          "exercisePrice": 0.19,
          "expiryDate": "2030-10-30"
        }
      ],
      "rightsConvertibleInstruments": "Debentures convertible into 21,154,545 common shares; coupon interest convertible into 6,120,194 common shares"
    },
    "managementCompensation": {
      "currency": "CAD",
      "periods": {
        "nineMonthsEndedDecember312025": {
          "shareBasedCompensation": 731075
        },
        "nineMonthsEndedDecember312024": {
          "shareBasedCompensation": 225925
        }
      },
      "namedIndividuals": [],
      "otherRelatedPartyTransactions": []
    },
    "subsequentEvents": [
      {
        "eventDate": "2026-01",
        "description": "Issued 187,501 DSUs in settlement of $31,875 of previously accrued deferred directors compensation",
        "impactValue": 31875
      },
      {
        "eventDate": "2026-01",
        "description": "Lassonde Industries Inc. acquired a 10.0% unsecured convertible debenture with principal amount of $1,304,000 from a third party",
        "impactValue": 1304000
      }
    ]
  }
]