Exhibit 99.2
IMMUNOPRECISE ANTIBODIES LTD.
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Unaudited - Expressed in Canadian Dollars)
|
|
|
IMMUNOPRECISE ANTIBODIES LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in Canadian dollars)
(in thousands) |
| Note |
|
| July 31, 2021 $ |
|
| April 30, 2021 $ |
| |||
|
|
|
|
| (unaudited) |
|
| (audited) |
| |||
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
| 40,700 |
|
|
| 41,759 |
|
Amounts receivable |
|
|
|
|
|
| 2,758 |
|
|
| 2,858 |
|
Sales tax receivable |
|
|
|
|
|
| 112 |
|
|
| 491 |
|
Inventory |
|
|
|
|
|
| 1,295 |
|
|
| 1,204 |
|
Unbilled revenue |
|
|
|
|
|
| 665 |
|
|
| 770 |
|
Prepaid expenses |
|
|
|
|
|
| 1,295 |
|
|
| 1,776 |
|
|
|
|
|
|
|
| 46,825 |
|
|
| 48,858 |
|
Restricted cash |
|
|
|
|
|
| 80 |
|
|
| 79 |
|
Deposit on equipment |
|
|
|
|
|
| 82 |
|
|
| 52 |
|
Investment |
|
| 7 |
|
|
| 110 |
|
|
| 111 |
|
Property and equipment |
|
| 8 |
|
|
| 4,057 |
|
|
| 4,024 |
|
Intangible assets |
|
| 9 |
|
|
| 5,531 |
|
|
| 6,058 |
|
Goodwill |
|
|
|
|
|
| 7,752 |
|
|
| 7,777 |
|
Total assets |
|
|
|
|
|
| 64,437 |
|
|
| 66,959 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
| 15 |
|
|
| 2,979 |
|
|
| 3,011 |
| |
Sales tax payable |
|
|
|
|
|
| 26 |
|
|
| 140 |
|
Deferred revenue |
|
|
|
|
|
| 1,257 |
|
|
| 1,111 |
|
Income taxes payable |
|
|
|
|
|
| 56 |
|
|
| 326 |
|
Convertible debentures – liability component |
|
| 12 |
|
|
| 1,342 |
|
|
| — |
|
Leases |
|
| 13 |
|
|
| 956 |
|
|
| 986 |
|
Deferred acquisition payments |
| 5, 6 |
|
|
| — |
|
|
| 498 |
| |
|
|
|
|
|
|
| 6,616 |
|
|
| 6,072 |
|
Convertible debentures – liability component |
|
| 12 |
|
|
| — |
|
|
| 1,531 |
|
Leases |
|
| 13 |
|
|
| 991 |
|
|
| 940 |
|
Deferred income tax liability |
|
|
|
|
|
| 1,392 |
|
|
| 1,492 |
|
|
|
|
|
|
|
| 8,999 |
|
|
| 10,035 |
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
| 14 |
|
|
| 80,876 |
|
|
| 80,102 |
|
Convertible debentures – equity component |
|
| 12 |
|
|
| 110 |
|
|
| 127 |
|
Contributed surplus |
|
| 14 |
|
|
| 8,302 |
|
|
| 7,201 |
|
Accumulated other comprehensive income (loss) |
|
|
|
|
|
| (801 | ) |
|
| (687 | ) |
Deficit |
|
|
|
|
|
| (33,049 | ) |
|
| (29,819 | ) |
|
|
|
|
|
|
| 55,438 |
|
|
| 56,924 |
|
Total liabilities and shareholders’ equity |
|
|
|
|
|
| 64,437 |
|
|
| 66,959 |
|
Nature of operations (Note 1)
Subsequent event (Note 14)
Approved and authorized on behalf of the Board of Directors on September 8, 2021
“James Kuo” Director “Greg Smith” Director
The accompanying notes are an integral part of these condensed interim consolidated financial statements
2
IMMUNOPRECISE ANTIBODIES LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Expressed in Canadian dollars)
|
|
|
|
|
| Three months ended July 31, |
| |||||
| Note |
|
| 2021 $ |
|
| 2020 $ |
| ||||
REVENUE |
|
|
|
|
|
| 4,588 |
|
|
| 3,765 |
|
COST OF SALES |
|
|
|
|
|
| 2,082 |
|
|
| 1,355 |
|
GROSS PROFIT |
|
|
|
|
|
| 2,506 |
|
|
| 2,410 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Advertising |
|
|
|
|
|
| 163 |
|
|
| 33 |
|
Amortization and depreciation |
| 8, 9 |
|
|
| 670 |
|
|
| 678 |
| |
Bad debt expense (recovery) |
|
|
|
|
|
| (3 | ) |
|
| (16 | ) |
Consulting fees |
|
|
|
|
|
| 173 |
|
|
| 37 |
|
Foreign exchange loss (gain) |
|
|
|
|
|
| 14 |
|
|
| 20 |
|
Insurance |
|
|
|
|
|
| 480 |
|
|
| 36 |
|
Interest and bank charges |
|
|
|
|
|
| 79 |
|
|
| 170 |
|
Management fees |
|
| 15 |
|
|
| — |
|
|
| 197 |
|
Office and general |
|
|
|
|
|
| 275 |
|
|
| 148 |
|
Professional fees |
|
|
|
|
|
| 301 |
|
|
| 188 |
|
Rent |
|
|
|
|
|
| 31 |
|
|
| 97 |
|
Repairs and maintenance |
|
|
|
|
|
| 48 |
|
|
| 9 |
|
Research and development |
|
|
|
|
|
| 1,119 |
|
|
| 309 |
|
Salaries and benefits |
|
| 15 |
|
|
| 1,473 |
|
|
| 1,351 |
|
Share-based payments |
| 14, 15 |
|
|
| 1,116 |
|
|
| 97 |
| |
Telephone and utilities |
|
|
|
|
|
| 10 |
|
|
| 13 |
|
Travel |
|
|
|
|
|
| 23 |
|
|
| 17 |
|
|
|
|
|
|
|
| 5,972 |
|
|
| 3,384 |
|
Loss before other income (expenses) and income taxes |
|
|
|
|
|
| (3,466 | ) |
|
| (974 | ) |
OTHER INCOME (EXPENSES) |
|
|
|
|
|
|
|
|
|
|
|
|
Accretion |
| 5, 6, 12 |
|
|
| (24 | ) |
|
| (101 | ) | |
Grant income |
| 16 |
|
|
| — |
|
|
| 568 |
| |
Subsidy income |
| 16 |
|
|
| 1 |
|
|
| 139 |
| |
Interest and other income |
|
|
|
|
|
| 4 |
|
|
| — |
|
Unrealized foreign exchange gain |
|
|
|
|
|
| 443 |
|
|
| — |
|
|
|
|
|
|
|
| 424 |
|
|
| 606 |
|
Loss before income taxes |
|
|
|
|
|
| (3,042 | ) |
|
| (368 | ) |
Income taxes |
|
|
|
|
|
| (188 | ) |
|
| (181 | ) |
NET LOSS FOR THE PERIOD |
|
|
|
|
|
| (3,230 | ) |
|
| (549 | ) |
ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO LOSS |
| |||||||||||
Exchange difference on translating foreign operations |
|
|
|
|
|
| (114 | ) |
|
| 915 |
|
COMPREHENSIVE LOSS FOR THE PERIOD |
|
|
|
|
|
| (3,344 | ) |
|
| 366 |
|
LOSS PER SHARE – BASIC AND DILUTED |
|
|
|
|
|
| (0.17 | ) |
|
| (0.04 | ) |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING |
|
|
| 19,223,643 |
|
|
| 14,483,000 |
|
The accompanying notes are an integral part of these condensed interim consolidated financial statements
3
IMMUNOPRECISE ANTIBODIES LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Expressed in Canadian dollars)
| Number of Shares |
|
| Share Capital $ |
|
| Convertible Debentures – Equity Component $ |
|
| Contributed Surplus $ |
|
| Accumulated Other Comprehensive (Loss) Income $ |
|
| Deficit $ |
|
| Total $ |
| ||||||||
Balance, April 30, 2020 |
|
| 13,984,018 |
|
|
| 34,087 |
|
|
| — |
|
|
| 3,778 |
|
|
| (300 | ) |
|
| (22,479 | ) |
|
| 15,086 |
|
Shares issued pursuant to deferred acquisition payment to IPA Europe |
|
| 132,833 |
|
|
| 511 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 511 |
|
Shares issued pursuant to option exercise |
|
| 36,180 |
|
|
| 237 |
|
|
| — |
|
|
| (99 | ) |
|
| — |
|
|
| — |
|
|
| 138 |
|
Shares issued pursuant to warrant exercise |
|
| 661,100 |
|
|
| 3,567 |
|
|
| — |
|
|
| (53 | ) |
|
| — |
|
|
| — |
|
|
| 3,514 |
|
Convertible debentures |
|
| — |
|
|
| — |
|
|
| 204 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 204 |
|
Share-based payments |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 97 |
|
|
| — |
|
|
| — |
|
|
| 97 |
|
Comprehensive income (loss) for the period |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 915 |
|
|
| (549 | ) |
|
| 366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance July 31, 2020 |
|
| 14,814,131 |
|
|
| 38,402 |
|
|
| 204 |
|
|
| 3,723 |
|
|
| 615 |
|
|
| (23,028 | ) |
|
| 19,916 |
|
Shares issued pursuant to deferred acquisition payment to UPE |
|
| 203,178 |
|
|
| 1,047 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,047 |
|
Shares issued pursuant to option exercise |
|
| 152,920 |
|
|
| 810 |
|
|
| — |
|
|
| (264 | ) |
|
| — |
|
|
| — |
|
|
| 546 |
|
Shares issued pursuant to warrant exercise |
|
| 1,907,317 |
|
|
| 11,858 |
|
|
| — |
|
|
| (356 | ) |
|
| — |
|
|
| — |
|
|
| 11,502 |
|
Shares issued pursuant to conversion of convertible debentures |
|
| 232,934 |
|
|
| 981 |
|
|
| (77 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 904 |
|
Share-based payments |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,651 |
|
|
| — |
|
|
| — |
|
|
| 2,651 |
|
Shares issued pursuant to bought deal offering of common shares |
|
| 1,858,736 |
|
|
| 27,004 |
|
|
| — |
|
|
| 1,447 |
|
|
| — |
|
|
| — |
|
|
| 28,451 |
|
Comprehensive loss for the period |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,302 | ) |
|
| (6,791 | ) |
|
| (8,093 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, April 30, 2021 |
|
| 19,169,216 |
|
|
| 80,102 |
|
|
| 127 |
|
|
| 7,201 |
|
|
| (687 | ) |
|
| (29,819 | ) |
|
| 56,924 |
|
Shares issued pursuant to deferred acquisition payment to IPA Europe |
|
| 41,488 |
|
|
| 503 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 503 |
|
Shares issued pursuant to option exercise |
|
| 3,500 |
|
|
| 28 |
|
|
| — |
|
|
| (10 | ) |
|
| — |
|
|
| — |
|
|
| 18 |
|
Shares issued pursuant to warrant exercise |
|
| 2,194 |
|
|
| 13 |
|
|
| — |
|
|
| (5 | ) |
|
| — |
|
|
| — |
|
|
| 8 |
|
Shares issued pursuant to conversion of convertible debentures |
|
| 52,940 |
|
|
| 230 |
|
|
| (17 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 213 |
|
Share-based payments |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,116 |
|
|
| — |
|
|
| — |
|
|
| 1,116 |
|
Comprehensive loss for the period |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (114 | ) |
|
| (3,230 | ) |
|
| (3,344 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, July 31, 2021 |
|
| 19,269,338 |
|
|
| 80,876 |
|
|
| 110 |
|
|
| 8,302 |
|
|
| (801 | ) |
|
| (33,049 | ) |
|
| 55,438 |
|
The accompanying notes are an integral part of these condensed interim consolidated financial statements
4
IMMUNOPRECISE ANTIBODIES LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
(in thousands) |
| 2021 $ |
|
| 2020 $ |
| ||
|
|
|
|
|
|
|
| |
Net loss for the period |
|
| (3,230 | ) |
|
| (549 | ) |
Items not affecting cash: |
|
|
|
|
|
|
|
|
Amortization and depreciation |
|
| 957 |
|
|
| 912 |
|
Deferred income taxes |
|
| (95 | ) |
|
| — |
|
Accretion |
|
| 24 |
|
|
| 101 |
|
Foreign exchange |
|
| (429 | ) |
|
| 111 |
|
Share-based payments |
|
| 1,116 |
|
|
| 97 |
|
|
|
| (1,657 | ) |
|
| 672 |
|
Changes in non-cash working capital related to operations: |
|
|
|
|
|
|
|
|
Amounts receivable |
|
| 119 |
|
|
| (1,108 | ) |
Inventory |
|
| (93 | ) |
|
| (199 | ) |
Unbilled revenue |
|
| 106 |
|
|
| (700 | ) |
Prepaid expenses |
|
| 482 |
|
|
| 79 |
|
Accounts payable and accrued liabilities |
|
| (63 | ) |
|
| 551 |
|
Sales and income taxes payable and receivable |
|
| (7 | ) |
|
| 260 |
|
Deferred revenue |
|
| 148 |
|
|
| 853 |
|
Net cash provided by (used in) operating activities |
|
| (965 | ) |
|
| 408 |
|
Investing activities: |
|
|
|
|
|
|
|
|
Purchase of equipment |
|
| (340 | ) |
|
| (11 | ) |
Internally generated development costs |
|
| — |
|
|
| (21 | ) |
Deferred acquisition payment |
|
| — |
|
|
| (519 | ) |
Net cash used in investing activities |
|
| (340 | ) |
|
| (551 | ) |
Financing activities: |
|
|
|
|
|
|
|
|
Proceeds on share issuance, net of transaction costs |
|
| 26 |
|
|
| 3,651 |
|
Repayment of leases |
|
| (236 | ) |
|
| (267 | ) |
Loan repayments |
|
| — |
|
|
| (16 | ) |
Proceeds from convertible debentures, net of transaction costs |
|
| — |
|
|
| 2,202 |
|
Repayment of debentures |
|
| — |
|
|
| (2,000 | ) |
Net cash provided by (used in) financing activities |
|
| (210 | ) |
|
| 3,570 |
|
Increase (decrease) in cash during the period |
|
| (1,515 | ) |
|
| 3,427 |
|
Foreign exchange |
|
| 457 |
|
|
| 29 |
|
Cash – beginning of the period |
|
| 41,838 |
|
|
| 2,691 |
|
Cash – end of the period |
|
| 40,780 |
|
|
| 6,147 |
|
Cash is comprised of: |
|
|
|
|
|
|
|
|
Cash |
|
| 40,700 |
|
|
| 6,062 |
|
Restricted cash |
|
| 80 |
|
|
| 85 |
|
|
|
| 40,780 |
|
|
| 6,147 |
|
Cash paid for interest |
|
| 26 |
|
|
| 62 |
|
Cash paid for income tax |
|
| 548 |
|
|
| 10 |
|
Supplemental cash flow information (Note 18)
The accompanying notes are an integral part of these condensed interim consolidated financial statements
5
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
1. | NATURE OF OPERATIONS |
ImmunoPrecise Antibodies Ltd. (the "Company" or “IPA”) was incorporated under the laws of Alberta on November 22, 1983. The Company is listed on the TSX Venture Exchange (the “Exchange”) as a Tier 2 life science issuer under the trading symbol “IPA”. The Company’s common shares were approved for listing on the NASDAQ Global Market (“Nasdaq”) under the trading ticker symbol “IPA.” Trading on Nasdaq commenced at market open on December 30, 2020. The Company is a supplier of custom hybridoma development services. The address of the Company's corporate office is 3204 – 4464 Markham Street, Victoria, BC, Canada V8Z 7X8.
On November 23, 2020, the Company consolidated its issued and outstanding common shares on the basis of 5 pre-consolidation shares for one post-consolidation share (the “Consolidation”). All references to share and per share amounts in these condensed interim consolidated financial statements have been retroactively restated to reflect the Consolidation.
The condensed interim consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern. This assumes the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its obligations in the normal course of operations. The Company has incurred operating losses since inception, including $3.2 million for the three months ended July 31, 2021 and has accumulated a deficit of $33.0 million as of July 31, 2021. The Company has $40.7 million cash on hand as of July 31, 2021 which will sustain its existing operations through at least 2022. The Company may need to raise additional funds in order to funds its strategic goals and there can be no assurances that sufficient funding, including adequate financing, will be available. The ability of the Company to arrange additional financing in the future depends in part, on the prevailing capital market conditions and profitability of its operations.
In March 2020, there was a global pandemic outbreak of COVID-19. The actual and threatened spread of the virus globally has had a material adverse effect on the global economy and specifically, the regional economies in which the Company operates. The pandemic could result in delays in the course of business and could have a negative impact on the Company’s ability to raise new capital. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time. Accordingly, the condensed interim consolidated financial statements do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities, contingent obligations and commitments other than in the normal course of business and at amounts different from those in the condensed interim consolidated financial statements.
2. | BASIS OF PRESENTATION |
| (a) | Statement of compliance |
These condensed interim consolidated financial statements have been prepared in conformity with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, using the same accounting policies as detailed in the Company’s audited annual financial statements for the year ended April 30, 2021. They do not include all the information required for complete annual financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”) and therefore should be read together wit the audited annual financial statements for the year ended April 30, 2021.
These condensed interim consolidated financial statements were approved by the Board of Directors.
| (b) | Basis of measurement |
These condensed interim consolidated financial statements have been prepared on the historical cost basis. In addition, these condensed interim consolidated financial statements have been prepared using the accrual basis of accounting, except for cashflow information.
6
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
| (c) | Basis of consolidation |
These condensed interim consolidated financial statements include the financial statements of the Company and the following subsidiaries which are wholly owned and subject to control by the Company:
| % Equity Interest - July 31, 2021 |
|
| % Equity Interest - April 30, 2021 |
|
| Country of Incorporation |
| Functional Currency | |
ImmunoPrecise Antibodies (Canada) Ltd. |
| 100% |
|
| 100% |
|
| Canada |
| Canadian dollar |
ImmunoPrecise Antibodies (USA) Ltd. ("IPA USA") |
| 100% |
|
| 100% |
|
| USA |
| US dollar |
ImmunoPrecise Antibodies (N.D.) Ltd. |
| 100% |
|
| 100% |
|
| USA |
| US dollar |
ImmunoPrecise Antibodies (MA) LLC |
| 100% |
|
| 100% |
|
| USA |
| US dollar |
Talem Therapeutics LLC ("Talem") |
| 100% |
|
| 100% |
|
| USA |
| US dollar |
U-Protein Express B.V. (“U-Protein”) |
| 0% |
|
| 0% |
|
| Netherlands |
| Euro |
ImmunoPrecise Netherlands B.V. |
| 100% |
|
| 100% |
|
| Netherlands |
| Euro |
ImmunoPrecise Antibodies (Europe) B.V. ("IPA Europe", formerly ModiQuest Research B.V.) |
| 100% |
|
| 100% |
|
| Netherlands |
| Euro |
Immulease B.V. ("Immulease") |
| 0% |
|
| 0% |
|
| Netherlands |
| Euro |
ImmunoPrecise Antibodies (Quebec), Ltd. |
| 100% |
|
| 100% |
|
| Canada |
| Canadian dollar |
9438-9244 Quebec, Inc. |
| 100% |
|
| 100% |
|
| Canada |
| Canadian dollar |
Control is achieved when the Company has the power to, directly or indirectly, govern the financial and operating policies of an entity so as to obtain benefits from its activities. Subsidiaries are fully consolidated from the date on which control is obtained and continue to be consolidated until the date that such control ceases. Intercompany balances, transactions and unrealized intercompany gains and losses are eliminated upon consolidation.
The Company incorporated new subsidiaries ImmuoPrecise Antibodies (Quebec), Ltd and 9438-9244 Quebec Inc on March 30, 2021.
The Company merged U-Protein Express B.V. and Immulease B.V. into ImmunoPrecise Antibodies (Europe) B.V., a wholly owned subsidiary of ImmunoPrecise Netherlands B.V., on January 1, 2021.
| (d) | Functional and presentation currency |
The functional currency of a company is the currency of the primary economic environment in which the company operates. The presentation currency for a company is the currency in which the company chooses to present its financial statements. The presentation currency of the Company is the Canadian dollar.
Entities whose functional currencies differ from the presentation currency are translated into Canadian dollars as follows: assets and liabilities – at the closing rate as at the reporting date, and income and expenses – at the average rate of the period. All resulting changes are recognized in other comprehensive income as cumulative translation differences.
Transactions in foreign currencies are translated into the functional currency at exchange rates at the date of the transactions. Foreign currency monetary assets and liabilities are translated at the functional currency exchange rate at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. All gains and losses on translation of these foreign currency transactions are included in profit or loss.
7
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
When the Company disposes of its entire interest in a foreign operation, or loses control, joint control, or significant influence over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive income related to the foreign operation are recognized in profit or loss. If an entity disposes of part of an interest in a foreign operation which remains a subsidiary, a proportionate amount of foreign currency gains or losses accumulated in other comprehensive income related to the subsidiary are reallocated between controlling and non-controlling interests.
3. | ADOPTION OF NEW ACCOUNTING STANDARDS |
The Company has adopted no new accounting standards during the three months ended July 31, 2021.
Standards not yet adopted
Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37)
The amendments to IAS 37 specify which costs an entity includes in determining the cost of fulfilling a contract for the purpose of assessing whether the contract is onerous. Costs that relate directly to a contract can either be incremental costs of fulfilling contracts (an example would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract).
These amendments are effective for reporting periods beginning on or after January 1, 2022.
Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
The amendments to IAS 1 provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date.
These amendments are effective for reporting periods beginning on or after January 1, 2023.
4. | CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS |
The preparation of the condensed interim consolidated financial statements in conformity with IFRS required estimates and judgments that affect the amounts reported in the financial statements. Actual results could differ from these estimates and judgments. Estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised. Significant areas requiring the use of estimates and judgments are as follows:
Functional currency
The Company has used judgment in determining the currency of the primary economic environment in which the entity operates.
Amounts receivable
The Company monitors the financial stability of its customers and the environment in which they operate to make estimates regarding the likelihood that the individual trade receivable balances will be paid. Credit risks for outstanding customer receivables are regularly assessed and allowances are recorded for estimated losses, if required.
Property and equipment
The Company has used estimates in the determination of the expected useful lives of property and equipment.
8
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
Revenue recognition
The percentage-of-completion method requires the use of estimates to determine the stage of completion which is used to determine the recorded amount of revenue, unbilled revenue and deferred revenue on uncompleted contracts. The determination of anticipated revenues includes the contractually agreed revenue and may also involve estimates of future revenues if such additional revenues can be reliably estimated and it is considered probable that they will be recovered. The determination of anticipated costs for completing a contract is based on estimates that can be affected by a variety of factors, including the cost of materials, labour, and sub-contractors. The determination of estimates is based on the Company’s business practices as well as its historical experience.
Impairments
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (“CGU”s). Each asset or CGU is evaluated every reporting period to determine whether there are any indicators of impairment. If any such indicators exist, which is often judgment-based, a formal estimate of recoverable amount is performed and an impairment charge is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of an asset or CGU of assets is measured at the higher of fair value less costs of disposal or value in use. These determinations and their individual assumptions require that management make a decision based on the best available information at each reporting period. The estimates and assumptions are subject to risk and uncertainty; hence, there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reversed with the impact recorded in profit or loss.
The Company performs a goodwill impairment test annually and when circumstances indicate that the carrying value may not be recoverable. For the purposes of impairment testing, goodwill acquired through business combinations has been allocated to two different CGUs. The recoverable amount of each CGU was based on value in use, determined by discounting the future cash flows to be generated from the continuing use of the CGU. The cash flows were projected over a five-year period based on past experience and actual operating results.
The Company performed its annual goodwill impairment test in April 2021 and no impairment was indicated
for the period tested. The values assigned to the key assumptions represented management’s assessment of future trends in the industry and were based on historical data from both internal and external sources. Weighted average costs of capital of 17.02% and 13.10%, respectively, were used in the assessments of the two CGUs.
Determination of segments
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. All operating segments’ results are reviewed by the Company’s
management in order to make decisions regarding the allocation of resources to the segment. Segment results include items directly attributable to a segment as those that can be allocated on a reasonable basis.
The Company provides antibody production and related services in one distinct segment.
Life of intangible assets
Intangible assets are amortized based on estimated useful life less their estimated residual value. Significant assumptions are involved in the determination of useful life and residual values and no assurance can be given that actual useful lives and residual values will not differ significantly from current assumptions. Actual useful life and residual values may vary depending on a number of factors including internal technical evaluation, attributes of the assets and experience with similar assets. Changes to these estimates may affect the carrying value of assets, net income (loss) and comprehensive income (loss) in future periods.
9
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
Leases
The Company uses judgement in the determination of lease terms, including any renewal, termination, or purchase options, along with decommissioning or restoration costs. In determination of the present value of the lease payment the Company uses the interest rate implicit in the lease if that rate can be readily determined, and otherwise at the Company’s incremental borrowing rate.
5. | ACQUISITION OF U-PROTEIN |
On August 22, 2017, the Company completed the acquisition of U-Protein whereby the Company acquired all of the issued and outstanding shares of U-Protein for €6.83 million on terms as follows:
| • | €2.7 million (CAD$4.1 million) was paid in cash on closing; |
| • | 606,101 common shares of the Company were issued on closing; and |
| • | €2.0 million in deferred payments over a three-year period. The deferred payments can be made in cash or common shares of the Company at the election of U-Protein shareholders. |
The deferred payments of €2.0 million over a three-year period was fair valued on the date of acquisition using a discounted cash flow model. A rate of 16.2% was used. The changes in the value of the deferred payments during the three months ended July 31, 2021 and the year ended April 30, 2021 are as follows:
| $ |
| ||
Balance, April 30, 2020 |
|
| 932 |
|
Accretion expense |
|
| 89 |
|
Payment |
|
| (1,047 | ) |
Foreign exchange |
|
| 26 |
|
Balance, April 30, 2021 and July 31, 2021 |
|
| — |
|
6. | ACQUISITION OF IPA EUROPE AND IMMULEASE |
On April 5, 2018, the Company acquired all of the issued and outstanding shares of IPA Europe and its sister entity, Immulease, for an aggregate purchase price of €7.0 million on terms as follows:
| • | €2.5 million (CAD$4.0 million) was paid in cash on closing; |
| • | 1,320,080 common shares of the Company were issued on closing; and |
| • | €2.0 million in deferred payments over a three-year period. The deferred payments are made in three equal installments of cash and equity totaling €666,666. |
The deferred payments of €2.0 million over a three-year period was fair valued on the date of acquisition using a discounted cash flow model. A discount rate of 14.0% was used. The changes in value of the deferred payments during the three months ended July 31, 2021 and the year ended April 30, 2021 are as follows:
| $ |
| ||
Balance, April 30, 2020 |
|
| 1,894 |
|
Accretion expense |
|
| 133 |
|
Repayment |
|
| (1,540 | ) |
Foreign exchange |
|
| 11 |
|
Balance, April 30, 2021 |
|
| 498 |
|
Repayment |
|
| (503 | ) |
Foreign exchange |
|
| 5 |
|
Balance, July 31, 2021 |
|
| — |
|
10
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
7. | INVESTMENT |
Investment consists of a 29% (April 30, 2021 – 29%) interest in QVQ Holding B.V. (“QVQ”), which is recorded using the equity method, being the best approximation of the investment’s fair value. Judgment is required as to the extent of influence that the Company has over QVQ. The Company considered the extent of voting power over the entity, the power to participate in financial and operating policy decisions of the entity, representation on the board of directors, material transactions between the entities, interchange of management personnel, and provision of essential technical information. The Company has determined that the Company is not considered to have significant influence over QVQ, as the Company does not have the power to participate in financial and operating policy decisions, does not have representation on the Board of Directors of QVQ, and the majority of the common shares are held by QVQ management.
8. | PROPERTY AND EQUIPMENT |
| Computer Hardware $ |
|
| Furniture & Equipment $ |
|
| Computer Software $ |
|
| Building $ |
|
| Automobile $ |
|
| Leasehold Improvements $ |
|
| Lab Equipment $ |
|
|
Total $ |
| |||||||||
Cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, April 30, 2020 |
|
| 54 |
|
|
| 36 |
|
|
| 50 |
|
|
| 2,384 |
|
|
| 50 |
|
|
| 351 |
|
|
| 3,098 |
|
|
| 6,023 |
|
Additions |
|
| 42 |
|
|
| — |
|
|
| — |
|
|
| 582 |
|
|
| 45 |
|
|
| 2 |
|
|
| 2,001 |
|
|
| 2,672 |
|
Disposals |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (18 | ) |
|
| (18 | ) |
Lease modification |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (188 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (188 | ) |
Foreign exchange |
|
| — |
|
|
| — |
|
|
| (1 | ) |
|
| (48 | ) |
|
| (1 | ) |
|
| — |
|
|
| (33 | ) |
|
| (83 | ) |
Balance, April 30, 2021 |
|
| 96 |
|
|
| 36 |
|
|
| 49 |
|
|
| 2,730 |
|
|
| 94 |
|
|
| 353 |
|
|
| 5,048 |
|
|
| 8,406 |
|
Additions |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 250 |
|
|
| — |
|
|
| — |
|
|
| 232 |
|
|
| 482 |
|
Disposals |
|
| (21 | ) |
|
| (5 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (26 | ) |
Foreign exchange |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1 |
|
|
| (1 | ) |
|
| — |
|
|
| 1 |
|
|
| 1 |
|
Balance, July 31, 2021 |
|
| 75 |
|
|
| 31 |
|
|
| 49 |
|
|
| 2,981 |
|
|
| 93 |
|
|
| 353 |
|
|
| 5,281 |
|
|
| 8,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Depreciation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, April 30, 2020 |
|
| 37 |
|
|
| 18 |
|
|
| 35 |
|
|
| 700 |
|
|
| 7 |
|
|
| 226 |
|
|
| 1,922 |
|
|
| 2,945 |
|
Depreciation |
|
| 24 |
|
|
| 10 |
|
|
| 8 |
|
|
| 711 |
|
|
| 21 |
|
|
| 70 |
|
|
| 800 |
|
|
| 1,644 |
|
Disposals |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (18 | ) |
|
| (18 | ) |
Lease modification |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (42 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (42 | ) |
Foreign exchange |
|
| — |
|
|
| — |
|
|
| (1 | ) |
|
| (35 | ) |
|
| (1 | ) |
|
| — |
|
|
| (110 | ) |
|
| (147 | ) |
Balance, April 30, 2021 |
|
| 61 |
|
|
| 28 |
|
|
| 42 |
|
|
| 1,334 |
|
|
| 27 |
|
|
| 296 |
|
|
| 2,594 |
|
|
| 4,382 |
|
Depreciation |
|
| 6 |
|
|
| 1 |
|
|
| 2 |
|
|
| 184 |
|
|
| 6 |
|
|
| 15 |
|
|
| 238 |
|
|
| 452 |
|
Disposals |
|
| (21 | ) |
|
| (5 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (26 | ) |
Foreign exchange |
|
| (1 | ) |
|
| 1 |
|
|
| (1 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1 | ) |
|
| (2 | ) |
Balance, July 31, 2021 |
|
| 45 |
|
|
| 25 |
|
|
| 43 |
|
|
| 1,518 |
|
|
| 33 |
|
|
| 311 |
|
|
| 2,831 |
|
|
| 4,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Book Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30, 2021 |
|
| 35 |
|
|
| 8 |
|
|
| 7 |
|
|
| 1,396 |
|
|
| 67 |
|
|
| 57 |
|
|
| 2,454 |
|
|
| 4,024 |
|
July 31, 2021 |
|
| 30 |
|
|
| 6 |
|
|
| 6 |
|
|
| 1,463 |
|
|
| 60 |
|
|
| 42 |
|
|
| 2,450 |
|
|
| 4,057 |
|
11
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
9. | INTANGIBLE ASSETS |
The intangible assets were acquired as a result of the acquisitions of U-Protein and IPA Europe and are amortized using the straight-line method over their useful lives. The intellectual property has a useful life of 10 years, and the proprietary processes have a useful life of 5 years. The internally generated development costs commence amortization once the development process is ready to be used. The changes in the value of the intangible assets during the three months ended July 31, 2021 and the year ended April 30, 2021 are as follows:
| Internally Generated Development Costs $ |
|
| Intellectual Property $ |
|
| Proprietary Processes $ |
|
| Certifications $ |
|
|
Total $ |
| ||||||
Cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, April 30, 2020 |
|
| 115 |
|
|
| 4,159 |
|
|
| 7,765 |
|
|
| 140 |
|
|
| 12,179 |
|
Costs expensed |
|
| (80 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (80 | ) |
Foreign exchange |
|
| (2 | ) |
|
| (70 | ) |
|
| (130 | ) |
|
| (2 | ) |
|
| (204 | ) |
Balance, April 30, 2021 |
|
| 33 |
|
|
| 4,089 |
|
|
| 7,635 |
|
|
| 138 |
|
|
| 11,895 |
|
Additions |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Foreign exchange |
|
| — |
|
|
| (13 | ) |
|
| (24 | ) |
|
| (1 | ) |
|
| (38 | ) |
Balance, July 31, 2021 |
|
| 33 |
|
|
| 4,076 |
|
|
| 7,611 |
|
|
| 137 |
|
|
| 11,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, April 30, 2020 |
|
| — |
|
|
| 1,054 |
|
|
| 2,840 |
|
|
| — |
|
|
| 3,894 |
|
Amortization |
|
| 1 |
|
|
| 421 |
|
|
| 1,647 |
|
|
| — |
|
|
| 2,069 |
|
Foreign exchange |
|
| — |
|
|
| (30 | ) |
|
| (96 | ) |
|
| — |
|
|
| (126 | ) |
Balance, April 30, 2021 |
|
| 1 |
|
|
| 1,445 |
|
|
| 4,391 |
|
|
| — |
|
|
| 5,837 |
|
Amortization |
|
| 2 |
|
|
| 101 |
|
|
| 402 |
|
|
| — |
|
|
| 505 |
|
Foreign exchange |
|
| — |
|
|
| (4 | ) |
|
| (12 | ) |
|
| — |
|
|
| (16 | ) |
Balance, July 31, 2021 |
|
| 3 |
|
|
| 1,542 |
|
|
| 4,781 |
|
|
| — |
|
|
| 6,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Book Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30, 2021 |
|
| 32 |
|
|
| 2,644 |
|
|
| 3,244 |
|
|
| 138 |
|
|
| 6,058 |
|
July 31, 2021 |
|
| 30 |
|
|
| 2,534 |
|
|
| 2,830 |
|
|
| 137 |
|
|
| 5,531 |
|
10. | DEBENTURES |
On April 5, 2018, the Company completed a nonconvertible debenture (the "Debentures") financing in the principal amount of $4.3 million (the “Offering”). The Debentures were unsecured, bore interest at a rate of 10% per annum, payable semi-annually, and were due eighteen months from the date of issue.
The changes in the value of the Debentures during the three months ended July 31, 2021 and the year ended April 30, 2021 are as follows:
| $ |
| ||
Balance, April 30, 2020 |
|
| 2,000 |
|
Repayment |
|
| (2,000 | ) |
Balance, April 30, 2021 and July 31, 2021 |
|
| — |
|
12
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
11. | LOANS PAYABLE |
On April 5, 2018, the Company assumed loans payable of €60,750 (CAD$94,995) as a result of the acquisition of IPA Europe. On July 7, 2015, IPA Europe entered into a loan agreement in the principal amount of €165,000, maturing on July 31, 2020. The loan was secured by certain equipment, bore an interest rate of 4% per annum and was repayable in monthly installments of €2,250. The interest was owed per month in arrears. The principal outstanding at July 31, 2021 is €nil (CAD$nil) (April 30, 2021 – €nil (CAD$nil)).
On April 5, 2018, the Company assumed loans payable of €56,450 (CAD$88,271) as a result of the acquisition of IPA Europe. On February 1, 2016, IPA Europe entered into a loan agreement in the principal amount of €100,000, maturing on February 28, 2021. The loan is secured by certain equipment, bears an interest rate of 3% per annum and is repayable in monthly installments of €1,675. The interest is owed per month in arrears. The principal outstanding at July 31, 2021 is €nil (CAD$nil) (April 30, 2021 – €nil (CAD$nil)).
On April 15, 2020, the Company was approved for a US$209,000 loan under the Paycheck Protection Program ("PPP") administered by the U.S. Small Business Administration. The loan accrues interest at 1% per annum and is repayable in monthly installments of US$11,761 starting in November 2020 until April 2022. The PPP is a US$349 billion loan program that originated from the U.S. Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP loan has a term of two years, is unsecured, and is guaranteed by the U.S. Small Business Administration. The loan will be forgiven if the proceeds are used by the Company to cover payroll costs (including benefits), with up to 25% allowed for rent and utilities, during the eight-week period following the loan origination date. The Company met the requirements for full loan forgiveness.
| $ |
| ||
Balance, April 30, 2020 |
|
| 312 |
|
Loan repayments and foreign exchange |
|
| (32 | ) |
Loan forgiven |
|
| (280 | ) |
Balance, April 30, 2021 and July 31, 2021 |
|
| — |
|
12. | CONVERTIBLE DEBENTURES |
On May 15, 2020, the Company closed a non-brokered private placement financing by issuing 10% convertible debentures (“New Debentures”) for total proceeds of $2.59 million. On May 27, 2020, the Company issued an additional $35,000 of the 10% New Debentures. In total, the Company issued $2.6 million of the New Debentures. The New Debentures are unsecured, bear interest at a rate of 10% per year and payable at maturity. The maturity date is May 15, 2022 for $2.59 million of the New Debentures and May 22, 2022 for $35,000 of the New Debentures. The principal amount of the New Debentures may be convertible, at the option of the holder, into units of the Company at a conversion price of $4.25 per share. The Company may force convert the principal amount of the New Debentures at $4.25 per share if the average closing price is equal to or greater than $7.50 for 20 trading days.
In advance of the closing of the New Debentures, the Company had received $313,268 of the proceeds as at April 30, 2020.
The fair value of the New Debentures at the time of issue was calculated as the discounted cash flows assuming a 15% effective interest rate. The fair value of the equity component was determined at the time of issue as the difference between the face value and the fair value of the New Debentures. On initial recognition, the Company bifurcated $2.4 million to the carrying value of the New Debentures and $213,623 to the equity component.
Under the financing, the Company paid finder’s cash commissions totaling $82,580 and incurred legal and filing fees of $29,331. The transaction costs were allocated pro-rata based on the carrying values of the New Debentures and the equity component, with $102,811 allocated to the New Debentures and $9,100 allocated to the equity component.
13
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
During the period ended July 31, 2021, the Company recorded accretion expense of $23,860 (April 30, 2021 – $124,381). The changes in the value of the New Debentures during the three months ended July 31, 2021 and the year ended April 30, 2021 are as follows:
| Liability Component $ |
|
| Equity Component $ |
| |||
Balance, April 30, 2020 |
|
| — |
|
|
| — |
|
Proceeds |
|
| 2,413 |
|
|
| 213 |
|
Transaction costs |
|
| (102 | ) |
|
| (9 | ) |
Accretion expense |
|
| 124 |
|
|
| — |
|
Conversion to shares |
|
| (904 | ) |
|
| (77 | ) |
Balance, April 30, 2021 |
|
| 1,531 |
|
|
| 127 |
|
Accretion expense |
|
| 24 |
|
|
| — |
|
Conversion to shares |
|
| (213 | ) |
|
| (17 | ) |
Balance, July 31, 2021 |
|
| 1,342 |
|
|
| 110 |
|
13. | LEASES |
The Company entered into certain equipment and automobile leases expiring between 2021 and 2024 with interest rates of between 8% and 17% per annum. The Company’s obligations under these finance leases are secured by the lessor’s title to the leased assets. The Company also entered into office leases in January 2018, May 2018, May 2019, June 2019, December 2019, and August 2020. With the adoption of IFRS 16, Leases, the Company recognized a lease obligation with regard to the office leases. The terms and the outstanding balances as at July 31, 2021 and April 30, 2021 are as follows:
| July 31, 2021 $ |
|
| April 30, 2021 $ |
| |||
Equipment under lease in monthly instalments of $19,750 with interest rate of 8% per annum and an end date of May 2023. |
|
| 351 |
|
|
| 396 |
|
Automobile under lease in monthly instalments of $1,182 with an interest rate of 8% per annum and an end date of September 2023. |
|
| 28 |
|
|
| 31 |
|
Automobile under lease in monthly instalments of $1,052 with an interest rate of 8% per annum and an end date of August 2024. |
|
| 34 |
|
|
| 37 |
|
Right-of-use asset from office lease repayable in monthly instalments of $6,806 and an interest rate of 8% per annum and an end date of May 2024. |
|
| 211 |
|
|
| 223 |
|
Right-of-use asset from office lease repayable in monthly instalments of $17,746 and an interest rate of 8% per annum and an end date of December 2022. The monthly instalment is adjusted annually based on the consumer price index. |
|
| 284 |
|
|
| 303 |
|
Right-of-use asset from office lease repayable in monthly instalments of $28,760 and an interest rate of 8% per annum and an end date of December 2023. The monthly instalment is adjusted annually based on the consumer price index. |
|
| 756 |
|
|
| 616 |
|
Right-of-use asset from office lease repayable in monthly instalments of $14,480 and an interest rate of 8% per annum and an end date of April 2023. |
|
| 283 |
|
|
| 320 |
|
Current portion |
|
| (956 | ) |
|
| (986 | ) |
Non-current portion |
|
| 991 |
|
|
| 940 |
|
As at July 31, 2021, the Company’s lab equipment and automobile include a net carrying amount of $353,555 (April 30, 2021 – $402,883) for the leased equipment and $60,828 (April 30, 2021 – $66,881) for the leased automobile. The net carrying amount of the right-of-use assets from office lease obligation is $1.5 million (April 30, 2021 – $1.4 million).
14
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
The following is a schedule of the Company’s future minimum lease payments related to the equipment and automobiles under finance lease and the office lease obligation:
| $ |
| ||
2022 |
|
| 808 |
|
2023 |
|
| 968 |
|
2024 |
|
| 333 |
|
2025 |
|
| 11 |
|
Total minimum lease payments |
|
| 2,120 |
|
Less: imputed interest |
|
| (173 | ) |
Total present value of minimum lease payments |
|
| 1,947 |
|
Less: Current portion |
|
| (956 | ) |
Non-current portion |
|
| 991 |
|
14. | SHARE CAPITAL |
| a) | Authorized: |
Unlimited common shares without par value.
| b) | Consolidation: |
On November 23, 2020, the Company consolidated its issued and outstanding common shares on the basis of 5 pre-Consolidation shares for one post-Consolidation share. All references to share and per share amounts in these condensed interim consolidated financial statements have been retroactively restated to reflect the Consolidation.
| c) | Share capital transactions: |
2021 Transactions
On May 1, 2020, the Company issued 132,833 common shares pursuant to the second deferred payment for the acquisition of IPA Europe (Note 6). The common shares were valued at $511,405.
On December 18 and December 31, 2020, the Company issued an aggregate of 203,178 common shares pursuant to the final deferred payment for the acquisition of U-Protein (Note 5). The common shares were valued at $1.0 million.
During the year ended April 30, 2021, the Company issued 189,100 common shares pursuant to the exercise of stock options for total gross proceeds of $683,755. A value of $363,175 was transferred from contributed surplus to share capital as a result. The weighted average share price at the dates the stock options were exercised was $11.70.
During the year ended April 30, 2021, the Company issued 2,568,417 common shares pursuant to the exercise of warrants and finder’s warrants for total gross proceeds of $15.0 million. A value of $409,106 was transferred from contributed surplus to share capital as a result.
During the year ended April 30, 2021, the Company issued 232,934 common shares pursuant to the conversion of $990,000 principal balance of convertible debentures.
On February 8, 2021, the Company closed a public offering of 1,616,293 common shares of the Company at a price of U.S. $13.45 per common share for gross proceeds of U.S. $21.7 million (CAD $27.7 million), net proceeds less underwriting discounts and commissions of U.S. $19.6 million (CAD $24.7 million).
On February 10, 2021, Company also issued an additional 242,443 common shares at the public offering price of U.S. $13.45 per common share for gross proceeds of U.S. $3.3 million (CAD $4.1 million), net proceeds less underwriting discounts and commissions of U.S. $3.0 million (CAD $3.8 million).
15
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
2022 Transactions
On May 3, 2021, the Company issued 41,488 common shares pursuant to the final deferred payment for the acquisition of IPA Europe (Note 6). The common shares were valued at $503,243.
During the three months ended July 31, 2021, the Company issued 3,500 common shares pursuant to the exercise of stock options for total gross proceeds of $17,525. A value of $10,156 was transferred from contributed surplus to share capital as a result. The weighted average share price at the dates the stock options were exercised was $8.05.
During the three months ended July 31, 2021, the Company issued 2,194 common shares pursuant to the exercise of warrants and finder’s warrants for total gross proceeds of $7,679. A value of $4,948 was transferred from contributed surplus to share capital as a result.
During the three months ended July 31, 2021, the Company issued 52,940 common shares with a value of $230,510 pursuant to the conversion of $225,000 principal balance of convertible debentures.
Subsequent Events
Subsequent to July 31, 2021, the Company issued 55,500 common shares pursuant to the exercise of stock options for total gross proceeds of $220,275. A value of $150,087 was transferred from contributed surplus to share capital as a result.
Subsequent to July 31, 2021, the Company issued 22,352 common shares pursuant to the conversion of $95,000 principal balance of convertible debentures.
| d) | Options |
On August 13, 2020, the Company granted 50,000 stock options, exercisable at $7.50 per option, to a consultant of the Company. The options are subject to vesting conditions as follows: one-quarter 3 months after grant date; one-quarter 6 months after grant date, one-quarter 9 months after grant date and one-quarter 12 months after grant date. The fair value of these options was estimated to be $204,749 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $6.85, dividend yield of 0%, expected volatility of 100%, a risk-free interest rate of 0.33%, and an expected life of 3 years.
On September 1, 2020, the Company granted 270,000 stock options, exercisable at $8.50 per option, to officers and an employee of the Company. The options are subject to vesting conditions as follows: one-third 6 months after grant date; one-third 12 months after grant date and one-third 18 months after grant date. The fair value of these options was estimated to be $1,613,117 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $8.15, dividend yield of 0%, expected volatility of 100%, a risk-free interest rate of 0.31%, and an expected life of 5 years.
On January 6, 2021, the Company granted 25,000 stock options, exercisable at $20.30 per option, to directors of the Company. The options are subject to vesting conditions as follows: one-quarter 3 months after grant date; one-quarter 6 months after grant date; one-quarter 9 months after grant date and one-quarter 12 months after grant date. The fair value of these options was estimated to be $292,572 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $20.30, dividend yield of 0%, expected volatility of 71%, a risk-free rate of 0.34%, and an expected life of 5 years.
On January 6, 2021, the Company granted 238,000 stock options, exercisable at $20.30 per option, to employees of the Company. The options are subject to vesting conditions as follows: one-third 6 months after grant date; one-third 12 months after grant date and one-third 18 months after grant date. The fair value of these options was estimated to be $2,785,284 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $20.30, dividend yield of 0%, expected volatility of 71%, a risk-free rate of 0.34%, and an expected life of 5 years.
16
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
On May 9, 2021, the Company granted 10,000 stock options, exercisable at US $7.72 per option, to members of the Company’s strategic board. The options are subject to vesting conditions as follows: one-third one year after grant date; one-third two years after grand date and one-third three years after grant date. The fair value of these options was estimated to be $58,698 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $9.42, dividend yield of 0%, expected volatility of 78%, a risk-free rate of 0.70%, and expected life of 5 years.
On June 13, 2021, the Company granted 43,750 stock options, exercisable at US $7.14 per option, to a consultant of the Company. The options vested immediately. The fair value of these options was estimated to be $236,067 using the Black-Scholes option pricing model and the following assumptions: share price on grant date of $8.63, dividend yield of 0%, expected volatility of 78%, a risk-free rate of 0.71%, and expected life of 3 years.
Expected volatility of all options granted up to September 1, 2020 was based on the historical volatility of similar companies. Expected volatility of options granted subsequent to that date is based on the historical volatility of the company over the prior 2 years.
During the three months ended July 31, 2021 the Company has recorded $1.1 million (2020 - $97,273) of share-based payments expense.
The changes in the stock options for the three months ended July 31, 2021 and the year ended April 30, 2021 are as follows:
| Number of options # |
|
| Weighted average exercise price $ |
|
| Weighted average life remaining (years) |
| ||||
Balance, April 30, 2020 (outstanding) |
|
| 1,063,000 |
|
|
| 3.84 |
|
|
| 3.03 |
|
Granted |
|
| 583,000 |
|
|
| 13.73 |
|
|
| — |
|
Exercised |
|
| (189,100 | ) |
|
| 3.62 |
|
|
| — |
|
Forfeited |
|
| (6,000 | ) |
|
| 7.60 |
|
|
| — |
|
Balance, April 30, 2021 (outstanding) |
|
| 1,450,900 |
|
|
| 7.88 |
|
|
| 3.06 |
|
Granted |
|
| 53,750 |
|
|
| 8.73 |
|
|
| — |
|
Exercised |
|
| (3,500 | ) |
|
| 5.01 |
|
|
| — |
|
Balance, July 31, 2021 (outstanding) |
|
| 1,501,150 |
|
|
| 7.93 |
|
|
| 2.83 |
|
Unvested |
|
| (393,334 | ) |
|
| 13.38 |
|
|
| 4.11 |
|
Exercisable, July 31, 2021 |
|
| 1,107,816 |
|
|
| 5.99 |
|
|
| 2.37 |
|
17
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
Details of the options outstanding as at July 31, 2021 are as follows:
| Exercise price $ |
|
| Remaining life (year) |
|
| Options outstanding |
|
| Unvested |
|
| Vested |
| ||||||
December 20, 2021 |
|
| 1.50 |
|
|
| 0.39 |
|
|
| 46,000 |
|
|
| — |
|
|
| 46,000 |
|
September 18, 2022 |
|
| 5.05 |
|
|
| 1.13 |
|
|
| 142,400 |
|
|
| — |
|
|
| 142,400 |
|
January 3, 2023 |
|
| 3.25 |
|
|
| 1.43 |
|
|
| 50,000 |
|
|
| — |
|
|
| 50,000 |
|
February 7, 2023 |
|
| 2.35 |
|
|
| 1.52 |
|
|
| 140,000 |
|
|
| — |
|
|
| 140,000 |
|
April 3, 2023 |
|
| 5.05 |
|
|
| 1.67 |
|
|
| 8,000 |
|
|
| 3,667 |
|
|
| 4,333 |
|
August 13, 2023 |
|
| 7.50 |
|
|
| 2.04 |
|
|
| 50,000 |
|
|
| 12,500 |
|
|
| 37,500 |
|
September 24, 2023 |
|
| 4.75 |
|
|
| 2.15 |
|
|
| 19,000 |
|
|
| — |
|
|
| 19,000 |
|
November 7, 2023 |
|
| 4.10 |
|
|
| 2.27 |
|
|
| 20,000 |
|
|
| — |
|
|
| 20,000 |
|
December 31, 2023 |
|
| 5.00 |
|
|
| 2.42 |
|
|
| 250,000 |
|
|
| — |
|
|
| 250,000 |
|
January 11, 2024 |
|
| 5.00 |
|
|
| 2.45 |
|
|
| 60,000 |
|
|
| — |
|
|
| 60,000 |
|
April 1, 2024 |
|
| 3.85 |
|
|
| 2.67 |
|
|
| 50,000 |
|
|
| 16,667 |
|
|
| 33,333 |
|
June 1, 2024(1) |
|
| 8.91 |
|
|
| 2.84 |
|
|
| 43,750 |
|
|
| — |
|
|
| 43,750 |
|
October 1, 2024 |
|
| 2.38 |
|
|
| 3.17 |
|
|
| 50,000 |
|
|
| — |
|
|
| 50,000 |
|
October 3, 2024 |
|
| 2.50 |
|
|
| 3.18 |
|
|
| 30,000 |
|
|
| — |
|
|
| 30,000 |
|
September 1, 2025 |
|
| 8.50 |
|
|
| 4.09 |
|
|
| 270,000 |
|
|
| 180,000 |
|
|
| 90,000 |
|
January 6, 2026 |
|
| 20.30 |
|
|
| 4.44 |
|
|
| 262,000 |
|
|
| 170,500 |
|
|
| 91,500 |
|
May 9, 2026(2) |
|
| 9.63 |
|
|
| 4.78 |
|
|
| 10,000 |
|
|
| 10,000 |
|
|
| — |
|
|
|
| 7.93 |
|
|
| 2.83 |
|
|
| 1,501,150 |
|
|
| 393,334 |
|
|
| 1,107,816 |
|
| (1) | US $7.14 |
| (2) | US $7.72 |
| e) | Warrants |
The changes in the warrants for the three months ended July 31, 2021 and the year ended April 30, 2021 are as follows:
| Number of warrants # |
|
| Weighted average exercise price $ |
|
| Weighted average life remaining (years) |
| ||||
Balance, April 30, 2020 |
|
| 3,411,500 |
|
|
| 5.25 |
|
|
| 0.91 |
|
Exercised |
|
| (2,533,200 | ) |
|
| 5.88 |
|
|
| — |
|
Balance, April 30, 2021 |
|
| 878,300 |
|
|
| 3.50 |
|
|
| 0.90 |
|
Exercised |
|
| — |
|
|
| — |
|
|
| — |
|
Balance, July 31, 2021 |
|
| 878,300 |
|
|
| 3.50 |
|
|
| 0.65 |
|
Details of the warrants outstanding as at July 31, 2021 are as follows:
| Exercise price $ |
|
| Remaining life (year) |
|
| Warrants outstanding |
| ||||
March 26, 2022 |
|
| 3.50 |
|
|
| 0.65 |
|
|
| 878,300 |
|
18
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
| f) | Finder’s Warrants |
On February 8, 2021, the Company issued 113,139 finder’s warrants, exercisable at US $16.81 per warrant, in connection with the public offering of 1,616,293 common shares. The fair value of these warrants was estimated to be US $994,646 (CAD $1.3 million) using the Black-Scholes option pricing model and the following assumptions: share price on grant date of US $16.81, dividend yield of 0%, expected volatility of 72%, a risk-free rate of 0.39%, and an expected life of 5 years.
On February 10, 2021, the Company issued 16,972 finder’s warrants, exercisable at US $16.81 per warrant, in connection with the public offering over-allotment of 242,443 common shares. The fair value of these warrants was estimated to be US $141,766 (CAD $180,029) using the Black-Scholes option pricing model and the following assumptions: share price on grant date of US $16.81, dividend yield of 0%, expected volatility of 72%, a risk-free rate of 0.39%, and an expected life of 5 years.
The changes in the finder’s warrants for the three months ended July 31, 2021 and the year ended April 30, 2021 are as follows:
| Number of warrants # |
|
| Weighted average exercise price $ |
|
| Weighted average life remaining (years) |
| ||||
Balance, April 30, 2020 |
|
| 81,994 |
|
|
| 3.50 |
|
|
| 1.90 |
|
Issued |
|
| 130,111 |
|
|
| 20.65 |
|
|
| — |
|
Exercised |
|
| (35,217 | ) |
|
| 3.50 |
|
|
| — |
|
Balance, April 30, 2021 |
|
| 176,888 |
|
|
| 3.50 |
|
|
| 3.75 |
|
Exercised |
|
| (2,194 | ) |
|
| 3.50 |
|
|
| — |
|
Balance, July 31, 2021 |
|
| 174,694 |
|
|
| 16.51 |
|
|
| 3.53 |
|
Details of the finder’s warrants outstanding as at July 31, 2021 are as follows:
| Exercise price $ |
|
| Remaining life (year) |
|
| Warrants outstanding |
| ||||
March 26, 2022 |
|
| 3.50 |
|
|
| 0.65 |
|
|
| 44,583 |
|
February 3, 2026(1) |
|
| 20.97 |
|
|
| 4.52 |
|
|
| 130,111 |
|
|
|
| 16.51 |
|
|
| 3.53 |
|
|
| 174,694 |
|
| (1) | US $16.81 |
19
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
15. | RELATED PARTY TRANSACTIONS |
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. Key management consists of Dr. Jennifer Bath, President and CEO; Lisa Helbling, CFO; Dr. Stefan Lang, Chief Business Officer; Dr. Ilse Roodink, Chief Scientific Officer; Dr. Yasmina Abdiche, former Chief Scientific Officer; Charles Wheelock, former Chief Technology Officer; Martin Hessing, a former Director of U-Protein; and Directors of the Company. During the three months ended July 31, 2021 and 2020, the compensation for key management is as follows:
| 2021 $ |
|
| 2020 $ |
| |||
Management fees |
|
| — |
|
|
| 16 |
|
Salaries and other short-term benefits |
|
| 679 |
|
|
| 604 |
|
Severance (included in salaries) |
|
| 8 |
|
|
| 63 |
|
Share-based payments |
|
| 312 |
|
|
| 90 |
|
Director compensation (included in salaries) |
|
| 113 |
|
|
| — |
|
|
|
| 1,112 |
|
|
| 773 |
|
At July 31, 2021, included in accounts payable and accrued liabilities is $435,208 (April 30, 2021 - $1,194,600) due to related parties. The amounts payable are non-interest bearing and unsecured.
These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties, unless otherwise noted.
16. | GRANT AND SUBSIDY INCOME |
In July 2020, IPA USA and Talem (the “Subgrantee”) were awarded a grant of US$1.5 million by the North Dakota Department of Agriculture through the CARES Act ND Bioscience Group Program for the development of antibody therapeutics against SARS-CoV-2. The total grant project cost is US$2.0 million, for which the Subgrantee must contribute an amount not less than 25% of the grant project cost, or US$500,000. In addition, the Company has been awarded a US$75,000 grant from the state of North Dakota to fund its PolyTope mAb Therapy platform, which the Company is using to developing treatments for the coronavirus (COVID-19) and other pathogens. The Company has recorded a total of nil and $568,135 during the three months ended July 31, 2021 and July 31, 2020, respectively, related to these grants.
The Canadian Emergency Wage and Rent Subsidy programs (CEWS and CERS) were put in place by government of Canada to provide a wage and rent subsidy to eligible employers. This initiative was to help get Canadians hired back quickly as provincial and territorial economies began to reopen, and provide financial relief to companies impacted by COVID-19. The Company recognized subsidy of $1,362 during the three months ended July 31, 2021 and $139,149 during the three months ended July 31, 2020 related to these programs.
The PPP was implemented in the United States to help businesses impacted by COVID-19 keep their workforce employed. Borrowers were eligible for full forgiveness if certain conditions were met. The Company applied for a loan of US$209,000 and the loan was fully forgiven during the year ended April 30, 2021.
17. | SEGMENTED INFORMATION AND ECONOMIC DEPENDENCE |
At July 31, 2021 and April 30, 2021, the Company has one reportable segment, being antibody production and related services.
During the three months ended July 31, 2021, the Company had sales to nil (2020 - nil) customer who in aggregate accounted for more than 10% of revenue.
20
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
The Company’s revenues are allocated to geographic segments for the three months ended July 31, 2021 and 2020 as follows:
(in thousands) |
| 2021 $ |
|
| 2020 $ |
| ||
|
| 1,933 |
|
|
| 1,752 |
| |
Canada |
|
| 434 |
|
|
| 292 |
|
Europe |
|
| 2,023 |
|
|
| 1,284 |
|
Other |
|
| 198 |
|
|
| 437 |
|
|
|
| 4,588 |
|
|
| 3,765 |
|
The Company’s revenues are allocated according to revenue types for the three months ended July 31, 2021 and 2020 as follows:
| 2021 $ |
|
| 2020 $ |
| |||
Project revenue |
|
| 4,299 |
|
|
| 3,473 |
|
Product sales revenue |
|
| 274 |
|
|
| 288 |
|
Cryo storage revenue |
|
| 15 |
|
|
| 4 |
|
|
|
| 4,588 |
|
|
| 3,765 |
|
The Company’s non-current assets are allocated to geographic segments as of July 31, 2021 and April 30, 2021 as follows:
Geographic segmentation of the Company’s net income (loss) for the three months ended July 31, 2021 and 2020 is as follows:
|
|
|
|
|
|
|
|
|
| 2021 $ |
|
| 2020 $ |
| |||
North America - Corporate |
|
| (2,097 | ) |
|
| (680 | ) |
North America |
|
| (1,560 | ) |
|
| (299 | ) |
Netherlands |
|
| 427 |
|
|
| 430 |
|
|
|
| (3,230 | ) |
|
| (549 | ) |
Geographic segmentation of the interest and accretion, and amortization and depreciation for the three months ended July 31, 2021 and 2020 is as follows:
|
|
|
|
|
|
|
|
|
(in thousands) |
| 2021 $ |
|
| 2020 $ |
| ||
North America - Corporate |
|
| 63 |
|
|
| 188 |
|
North America |
|
| 16 |
|
|
| 24 |
|
Netherlands |
|
| 24 |
|
|
| 59 |
|
|
|
| 103 |
|
|
| 271 |
|
21
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
|
|
|
|
|
|
|
| |
Amortization and depreciation (in thousands) |
| 2021 $ |
|
| 2020 $ |
| ||
North America - Corporate |
|
| 19 |
|
|
| 7 |
|
North America |
|
| 193 |
|
|
| 180 |
|
Netherlands |
|
| 745 |
|
|
| 743 |
|
|
|
| 957 |
|
|
| 930 |
|
22
IMMUNOPRECISE ANTIBODIES LTD.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended July 31, 2021 and 2020
(Expressed in Canadian Dollars)
18. | SUPPLEMENTAL CASH FLOW INFORMATION |
The following changes in liabilities arose from financing activities:
|
|
|
|
|
|
|
|
| Non-cash changes |
|
|
|
|
| ||||||||||||||
(in thousands) |
| April 30, 2021 $ |
|
| Cash Flows $ |
|
| Acquisition $ |
|
| Debt forgiven / Settlement / Disposal $ |
|
| Accretion $ |
|
| Foreign exchange movements and change in estimates $ |
|
| July 31, 2021 $ |
| |||||||
Deferred acquisition payments |
|
| 498 |
|
|
| — |
|
|
| — |
|
|
| (503 | ) |
|
| — |
|
|
| 5 |
|
|
| — |
|
Convertible debentures |
|
| 1,531 |
|
|
| — |
|
|
| — |
|
|
| (213 | ) |
|
| 24 |
|
|
| — |
|
|
| 1,342 |
|
Leases |
|
| 1,926 |
|
|
| (236 | ) |
|
| 250 |
|
|
| — |
|
|
| — |
|
|
| 7 |
|
|
| 1,947 |
|
Total |
|
| 3,955 |
|
|
| (236 | ) |
|
| 250 |
|
|
| (716 | ) |
|
| 24 |
|
|
| 12 |
|
|
| 3,289 |
|
|
|
|
|
|
|
|
|
| Non-cash changes |
|
|
|
|
| ||||||||||||||
(in thousands) |
| April 30, 2020 $ |
|
| Cash Flows $ |
|
| Acquisition $ |
|
| Settlement / Disposal $ |
|
| Accretion $ |
|
| Foreign exchange movements and change in estimates $ |
|
| July 31, 2020 $ |
| |||||||
Deferred acquisition payments |
|
| 2,825 |
|
|
| (519 | ) |
|
| — |
|
|
| (511 | ) |
|
| 70 |
|
|
| 111 |
|
|
| 1,976 |
|
Debentures |
|
| 2,000 |
|
|
| (2,000 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Convertible debentures |
|
| 313 |
|
|
| 1,998 |
|
|
| — |
|
|
| — |
|
|
| 31 |
|
|
| — |
|
|
| 2,342 |
|
Loans payable |
|
| 312 |
|
|
| (16 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 296 |
|
Leases |
|
| 1,884 |
|
|
| (267 | ) |
|
| 685 |
|
|
| — |
|
|
| — |
|
|
| 85 |
|
|
| 2,387 |
|
Total |
|
| 7,334 |
|
|
| (804 | ) |
|
| 685 |
|
|
| (511 | ) |
|
| 101 |
|
|
| 196 |
|
|
| 7,001 |
|
23