Notes to the Unaudited Interim Financial Statements AvivagenNotes to the Unaudited Interim Financial Statements Avivagen Inc. In Canadian dollars, for the three months ended 31 January 2018 and 2017 Page 6 of 20 1. Corporate information and going concern Avivagen, Inc. (the “Corporation” or “Avivagen”) is domiciled in Canada and its registered office is 100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6. On 8 May 2017, the Board of Directors approved a 10:1 share consolidation (reverse split) which was effective 12 May 2017. The shareholders approved the consolidation on 11 April 2017. The financial statements and notes thereto have been retrospectively restated to reflect the effects of the share consolidation. These financial statements present these results as post-consolidated. The Corporation is a life-sciences company that is developing and commercializing products to replace antibiotics in livestock feeds to optimize the health and growth of the animals by supporting the animal’s own health defences. For companion animals, the Corporation has created two branded lines of OxC-beta™ products, Vivamune™ Vital Health3 Chews and Oximunol™ Chewable Tablets, intended to improve or maintain quality of life in companion animals. Going concern These financial statements have been prepared in accordance with International Financial Reporting Standards applicable to a going concern, which contemplates that the Corporation will be able to realize its assets and discharge its liabilities in the normal course of operations for the foreseeable future. The Corporation has not obtained profitable operations to date. For the three-month period ended 31 January 2018, the Corporation had a net loss from all operations of $(1,241,588) (31 January 2017: $(1,031,996)). Whether and when the Corporation can attain profitability and positive cash flow is uncertain. The accumulated deficit is $(23,695,733) as of 31 January 2018 (31 October 2017: $(22,454,145)). These circumstances cast significant doubt as to the ability of the Corporation to meet its obligations as they come due, and accordingly, the ultimate appropriateness of the use of accounting principles applicable to a going concern. Management is actively pursuing the commercialization of its products and is continuously evaluating the availability of additional debt or equity financing to provide adequate cash resources to carry our its business objectives, and was successful in raising additional equity financing in the fiscal period. Nevertheless, there is no assurance that these ongoing initiatives will continue to be successful. The Corporation’s ability to continue as a going concern is dependent upon the Corporation’s ability to obtain the ongoing support of its lenders and investors, obtain profitable operations, generate significant sales and/or raise additional capital. These financial statements do not reflect adjustments in the carrying values of assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used that would be necessary if the Corporation were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material