In SummaryLoss per share – Basic fully diluted (0.46), same quarter last year was (0.04). However,
Total Assets,
On October 31, 2021 the Company’s total assets have increased by 23% from July 31, 2021. The following significant activities and events resulted in the net increase of assets during the three months ended October 31, 2021:
• Total assets have increased as the result of the business combination of Redecan and 48North. The Company recognized $198,837 of identified intangible assets acquired as well as $286,850 of Goodwill generated from the transactions.
• The Company’s cash and cash equivalents fell $11,699 See section ‘Liquidity and Capital Resources’)
• The Company’s total restricted cash balance of $285,779 was utilized, as intended, to fund a portion of the purchase price related to the acquisition of Redecan.
• Inventory and Biological assets increased as the result of the Redecan and 48North acquisitions
• Property, plant and equipment increased by $118,882, of which $135,527 was acquired on the business combinations of Redecan and 48North.
• The Company recognized impairments losses of property, plant and equipment of $23,803 due to the cessation of the ongoing KIT project and its assets, as well as the impairment of a redundant cultivation zone (zone 5 B9) and its related equipment.
• The Company made capital contributions of $1,861 to its investments during the period, which were offset by the Company’s share of losses in its joint venture and associates and the impairment of the Company’s investment in Truss LP, resulting in an impairment loss of $26,925 (see section ‘Impairment of investment in Associate’).
Total Liabilities
Current liabilities on October 31, 2021 decreased quarter over quarter due to the following:
• Accounts payable and accrued liabilities decreased by 15% as the result of a change in the Company’s arrangement with Truss LP following the receipt of their cannabis processing license (see ‘HEXO CIB (Cannabis Infused Beverages).
• The Senior secured convertible note decreased by $89,715 on a net basis, due to redemptions repayments during the period (see section ‘Capital Resources’) as well as a gain on fair value.
• Offsetting the reduction was the increase in warrant liabilities by $11,788 due to the issuance of USD denominated warrants in the Company’s August 2021 underwritten public offering and the recognition of a $60,740 deferred tax liability on acquisition of Redecan.
Long term liabilities remained relatively consistent during the period as no long term debt or significant lease liabilities were acquired through acquisition.