Exhibit 99.1

 

FIELD TRIP HEALTH LTD.

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in Canadian Dollars, unless otherwise noted)

FIELD TRIP HEALTH LTD.

Condensed Interim Consolidated Statements of Financial Position 

(unaudited)

			As at September 30, 2021			As at March 31, 2021
(Expressed in Canadian Dollars)	Notes		$			$
ASSETS
CURRENT
Cash and cash equivalents				22,388,946			38,469,057
Funds held in trust				-			795,516
Restricted cash				619,127			588,041
Short-term investments				65,137,088			72,552,870
Accounts receivable		4		2,464,223			813,761
Other assets		5		5,450,422			2,890,197
TOTAL CURRENT ASSETS				96,059,806			116,109,442
NON-CURRENT
Property, plant and equipment		6		3,653,145			2,198,817
Intangible assets				522,447			427,124
Right-of-use assets		7		18,789,741			7,182,358
Other non-current assets		5		887,715			532,264
TOTAL NON-CURRENT ASSETS				23,853,048			10,340,563
TOTAL ASSETS				119,912,854			126,450,005
LIABILITIES AND EQUITY
CURRENT
Accounts payable and accrued liabilities		8		8,579,794			5,348,110
Deferred revenue				129,400			42,318
Current portion of lease obligations		7		1,583,092			1,070,435
TOTAL CURRENT LIABILITIES				10,292,286			6,460,863
NON-CURRENT
Loan payable				33,200			23,112
Lease obligations		7		18,068,984			6,403,372
TOTAL LIABILITIES				28,394,470			12,887,347
EQUITY
Share capital		9		131,698,471			130,784,175
Warrant reserve		10		6,196,905			6,370,660
Share-based payment reserve		11		4,945,416			1,832,224
Accumulated other comprehensive income (loss)				(21,030	)		327,302
Retained deficit				(51,301,378	)		(25,751,703	)
TOTAL EQUITY				91,518,384			113,562,658
TOTAL LIABILITIES AND EQUITY				119,912,854			126,450,005

The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements.

Approved on behalf of the Board of Directors:

/s/ Joseph Del Moral	/s/ Helen Boudreau
Director	Director

FIELD TRIP HEALTH LTD.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

(unaudited)

			3 months ended September 30, 2021			3 months ended September 30, 2020			6 months ended September 30, 2021			6 months ended September 30, 2020
(Expressed in Canadian Dollars)	Notes		$			$			$			$
REVENUE
Patient services				907,816			94,532			1,775,216			118,131
Total revenue				907,816			94,532			1,775,216			118,131
OPERATING EXPENSES
General and administration		13		8,917,717			2,092,593			16,260,688			3,366,948
Occupancy costs		14		536,495			111,877			913,110			175,660
Sales and marketing		15		1,315,434			281,185			2,379,561			435,940
Research and development		16		2,102,787			806,536			3,555,901			1,601,898
Depreciation and amortization		17		848,712			269,578			1,464,195			479,338
Patient services		18		1,917,451			248,408			3,375,272			321,665
Total operating expenses				15,638,596			3,810,177			27,948,727			6,381,449
OTHER INCOME(EXPENSES)
Interest income		19		111,934			2,589			243,549			4,838
Interest expense		20		(256,522	)		(60,962	)		(403,109	)		(98,195	)
Other income (expense)		21		1,856,088			(158,426	)		783,396			(534,673	)
Net loss before and after income taxes				(13,019,280	)		(3,932,444	)		(25,549,675	)		(6,891,348	)
OTHER COMPREHENSIVE INCOME
Exchange (loss)/gain from translation of foreign subsidiaries				(452,399	)		30,067			(348,332	)		65,861
NET LOSS AND COMPREHENSIVE LOSS				(13,471,679	)		(3,902,377	)		(25,898,007	)		(6,825,487	)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:
Shareholders of Field Trip Health Ltd.				(13,471,679	)		(3,902,377	)		(25,898,007	)		(6,823,584	)
Non-controlling interest				-			-			-			(1,903	)
				(13,471,679	)		(3,902,377	)		(25,898,007	)		(6,825,487	)
NET LOSS PER SHARE
Basic and diluted		12		(0.23	)		(0.16	)		(0.44	)		(0.28	)

The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements.

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FIELD TRIP HEALTH LTD.

Condensed Interim Consolidated Statements of Changes in Equity (unaudited)

		Share Capital					Warrant Reserve			Share-Based Payment Reserve			Accumulated Other Comprehensive (Loss) Income			Retained Deficit			Non- controlling   Interest		Shareholders' Equity
(Expressed in Canadian Dollars)	Notes	# Shares		$			$			$			$			$			$		$
Balance, April 1, 2021			57,297,238		130,784,175			6,370,660			1,832,224			327,302			(25,751,703	)		-		113,562,658
Net loss			-		-			-			-			-			(25,549,675	)		-		(25,549,675	)
Exchange loss from translation of foreign subsidiaries			-		-			-			-			(348,332	)		-			-		(348,332	)
Total comprehensive income (loss)			-		-			-			-			(348,332	)		(25,549,675	)		-		(25,898,007	)
Share issuance	9		187,500		281,250			-			-			-			-			-		281,250
Share issuance cost			-		(61,307	)		-			-			-			-			-		(61,307	)
Share-based payments	11		-		-			-			3,186,773			-			-			-		3,186,773
Warrants exercised	10		168,885		511,525			(173,755	)		-			-			-			-		337,770
Stock options exercised	11		137,340		182,828			-			(73,581	)		-			-			-		109,247
Balance, September 30, 2021			57,790,963		131,698,471			6,196,905			4,945,416			(21,030	)		(51,301,378	)		-		91,518,384

		Share Capital					Warrant Reserve		Share-Based Payment Reserve			Accumulated Other Comprehensive (Loss) Income			Retained Deficit			Non- controlling   Interest			Shareholders' Equity
		# Shares		$			$		$			$			$			$			$
Balance, April 1, 2020			20,941,923		12,781,270			-		330,703			(50,041	)		(2,641,920	)		8,344			10,428,356
Net loss			-		-			-		-			-			(6,893,283	)		1,935			(6,891,348	)
Exchange gain from translation of foreign subsidiaries			-		-			-		-			65,861			-			59			65,920
Total comprehensive income (loss)			-		-			-		-			65,861			(6,893,283	)		1,994			(6,825,428	)
Share issuance	9		7,065,063		12,762,929			-		-			-			-			-			12,762,929
Share issuance cost			-		(1,016,651	)		-		-			-			-			-			(1,016,651	)
Share-based payments	11		-		-			-		1,403,044			-			-			-			1,403,044
Stock options exercised	11		9,000,900		504,140			-		(504,050	)		-			-			-			90
Purchase of non-controlling interest			-		-			-		-			553			9,785			(10,338	)		-
Balance, September 30, 2020			37,007,886		25,031,688			-		1,229,697			16,373			(9,525,418	)		-			16,752,340

The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements.

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 3

FIELD TRIP HEALTH LTD.

Condensed Interim Consolidated Statements of Cash Flows (unaudited)

		6 months ended September 30, 2021			6 months ended September 30, 2020
(Expressed in Canadian dollars)	Notes	$			$
OPERATING ACTIVITIES
Net loss			(25,549,675	)		(6,891,348	)
Items not involving cash:
Depreciation and amortization	17		1,464,195			479,338
Share-based payments	11		3,468,023			1,403,044
Interest income	19		(243,549	)		(4,838	)
Interest expense	20		403,109			98,195
Unrealized foreign exchange gain (loss)			(833,768	)		29,999
Government assistance - CEBA loan			(12,103	)		(18,681	)
Net change in non-cash working capital			(1,410,316	)		(865,007	)
			(22,714,084	)		(5,769,298	)
Interest received			45,803			81
CASH RELATED TO OPERATING ACTIVITIES			(22,668,281	)		(5,769,217	)
INVESTING ACTIVITIES
Proceeds from maturing short-term investments			8,048,970			-
Acquisition of property, plant and equipment	6		(1,157,565	)		(988,892	)
Development of intangible assets			(171,004	)		(200,076	)
Refundable security deposit paid for right-of-use assets			(328,658	)		(62,573	)
CASH RELATED TO INVESTING ACTIVITIES			6,391,743			(1,251,541	)
FINANCING ACTIVITIES
Proceeds on issuance of common shares			-			12,762,929
Share issuance cost paid			-			(1,016,651	)
Proceeds from exercise of stock options			109,247			90
Proceeds from exercise of warrants			337,770			-
Repayment of principal of lease obligations	7		(386,509	)		(362,573	)
Repayment of interest of lease obligations	7		(400,918	)		(98,062	)
Loan received			20,000			40,000
CASH RELATED TO FINANCING ACTIVITIES			(320,410	)		11,325,733
Net change in cash during the period			(16,596,948	)		4,304,975
Effect of exchange rate on changes in cash			(247,593	)		46,292
Cash, beginning of the period			39,852,614			9,690,758
CASH, END OF PERIOD			23,008,073			14,042,025
Represented by:
Cash			22,388,946			13,823,577
Restricted cash			619,127			218,448
CASH, END OF PERIOD			23,008,073			14,042,025
Composed of:
Cash			10,570,027			14,042,025
Cash equivalents			12,438,046			-

The accompanying notes are an integral part of these Condensed Interim Consolidated Financial Statements.

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FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

1. NATURE OF OPERATIONS

Field Trip Health Ltd. (the “Group”, the “Company” or “Field Trip”) was formed on September 30, 2008, pursuant to an amalgamation under the Business Corporations Act (Alberta). Prior to October 1, 2020, the Company’s operations were conducted through Field Trip Psychedelics Inc. (“FTP”). FTP was incorporated under the laws of the province of Ontario, Canada as Field Trip Ventures Inc. on April 2, 2019. On October 10, 2019, the Company amended its name to Field Trip Psychedelics Inc. The Company’s registered office and head office is located at 30 Duncan Street, Suite 401, Toronto, ON, M5V 2C3.

On October 1, 2020, FTP completed a reverse takeover transaction (the “Transaction”) with Newton Energy Corporation (“Newton”) and Newton’s wholly-owned subsidiary Newton Energy Subco Limited (“Newton Subco”). The Transaction constituted a Reverse Takeover under applicable securities law and was structured as a three-cornered amalgamation, which resulted in FTP becoming a wholly-owned subsidiary of Newton by amalgamating with Newton Subco, and the security holders of FTP becoming security holders of Newton. As a result, the consolidated statements of financial position are presented as a continuance of FTP and the comparative figures presented are those of FTP. Immediately prior to the closing of the Transaction, Newton filed an Article of Amendment to change its name from Newton Energy Corporation to “Field Trip Health Ltd.”

Field Trip is a leader in the development and delivery of psychedelic-assisted therapies (“PAT”). PAT are utilized in the treatment of mental health and mood disorders, such as severe depression, anxiety and post-traumatic stress disorder.

The Company’s primary focus is to develop proprietary, competitive and differentiated psychedelic-assisted therapies (both through novel psychedelic molecules and innovation in therapeutic protocols), which achieve the best patient outcomes in the treatment of mood disorders. Field Trip currently takes an integrated approach, combining novel psychedelic drug development, optimized therapeutic protocols and digital tools in combination to achieve Field Trip’s ultimate goal of successfully commercializing novel PAT therapeutics and therapies.

Structurally, our research and development strategies are established by our Field Trip Discovery (“FT Discovery’’) division, which is then executed through contract research and manufacturing organizations for molecule development and clinical research and through FT Health (defined below) for therapeutic protocol innovation. FT Discovery is conducting preclinical research into its first novel psychedelic molecule, FT-104, in addition to its new drug development pipeline program, the FT-200 Group.

Our Field Trip Health (“FT Health”) division operates Clinics (as defined below) across North America and Europe providing Ketamine-assisted psychotherapy (“KAP”) under various programs. The Clinics operated by FT Health primarily operate as patient treatment centres for the treatment of mental health and mood disorders, while also providing our medical and therapeutic teams with opportunities to: (i)  develop hands-on knowledge and experience to  further improve on the existing  therapeutic protocols to optimize and customize the safe and effective delivery of PAT; (ii) identify new indications with existing and novel psychedelic medicines, such as FT-104 and future pipeline drugs under well-controlled conditions; and (iii) conduct clinical research studies for FT Discovery and other third parties. In addition, FT Health conducts research to drive therapeutic protocol research and innovation.

In support of the FT Health business, our Field Trip Digital (“FT Digital”) division develops digital tools such as the mobile application, “Trip”, and the patient application, “Portal”, to support and enhance the patient outcomes and experience. Further, our Field Trip Training division offers programs including both didactic and experiential training to therapists and medical professionals who wish to learn about KAP.

Field Trip also conducts botanical research in partnership with the University of the West Indies (“UWI”) through Field Trip Natural Products Inc. (“FTNP”). FTNP’s research program comprises the cultivation, as well as the identification and isolation of new substances contained in psilocybin mushrooms and other related fungi (the “Psilocybin Research”). Pursuant to a research agreement with UWI (the “Research Agreement”), the Company has leased a custom-built research and cultivation facility on the university campus (the “Jamaica Facility”).

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FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

 

Exchange Listings

On June 7, 2021 Field Trip’s Common Shares and warrants commenced trading on the TSX under the ticker symbols “FTRP” and “FTRP.WT” respectively. In connection with the TSX listing, the Common Shares and warrants were delisted from the Canadian Securities Exchange (“CSE”).

On July 23, 2021, Field Trip announced that it has received conditional approval from The NASDAQ Stock Market LLC (“NASDAQ”) to list its issued and outstanding common shares on the NASDAQ Global Select Market and on July 27, 2021, the Company received final approval from NASDAQ to list its common shares on the NASDAQ Global Select Market. The Company’s shares began trading at market open on July 29, 2021 with the ticker symbol FTRP.

The Company’s common stock will continue to trade in Canada on the TSX Exchange under its current symbol FTRP; and concurrent with the listing of Field Trip’s common shares on NASDAQ in the US, the shares ceased to be quoted on the OTCQX.

2. BASIS OF PREPARATION

Statement of Compliance

The condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”) and interpreted by the IFRS Interpretations Committee (“IFRIC”). Accordingly, certain information and footnote disclosure normally included in the annual financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the IASB, have been omitted or condensed.

These condensed interim consolidated financial statements should be read in conjunction with the most recent audited annual consolidated financial statements of the Company, including the notes thereto, for the fiscal years ended March 31, 2021 and 2020.

These condensed interim consolidated financial statements were approved for issue by the Board of Directors on November 15, 2021.

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FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

Basis of Presentation

These consolidated financial statements have been prepared on a going concern basis, under the historical cost convention, except for certain financial instruments that are measured at fair value, as detailed in the Group’s accounting policies in the most recent audited annual consolidated financial statements.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and the methods of computation, as well as the use of estimates and judgments described in the Company’s annual consolidated financial statements have been applied consistently to all periods presented in these condensed interim consolidated statements unless otherwise indicated. The accounting policies have been applied consistently by all subsidiaries and professional medical corporations (“PCs”).

Use of Estimates and Judgments

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of these condensed interim consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates and such differences could be material. The Group reviews its estimates and underlying assumptions on an ongoing basis. Revisions are recognized in the period in which the estimates are revised and may impact future periods. The significant accounting estimates and judgments have been set out in Notes 2 and 3 to the Company’s consolidated financial statements for the fiscal years ended March 31, 2021 and 2020. There have been no significant changes in estimates and judgments in the six months ended September 30, 2021.

Impact of Coronavirus

While the precise impact of the recent novel coronavirus (“COVID-19”) outbreak remains unknown, it has introduced uncertainty and volatility in Canadian and global economies. Depending on the length and severity of the pandemic, COVID-19 could impact the Company’s operations, could cause delays relating to regulatory approvals, postpone research activities and limit the Company’s ability to raise funds depending on COVID-19’s effect on capital markets. The Company is not currently aware of any changes in laws, regulations or guidelines, including tax and accounting requirements, arising from COVID-19 which would be reasonably anticipated to materially affect the Company’s business. The Group is monitoring developments and preparing for any impacts related to COVID-19.

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FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

4. ACCOUNTS RECEIVABLE

	September 30, 2021		March 31, 2021
As at	$		$
Trade receivables		256,203		21,253
Sales tax receivable		761,349		768,981
Other receivables		1,446,671		23,527
		2,464,223		813,761

Trade receivables relates to amounts receivable from patients for treatments completed at the Clinics. Other receivables relate to refunds owed to Field Trip for marketing materials and insurance prepaids.

During the six months ended September 30, 2021 and 2020, no expected credit loss allowance was recorded for accounts receivable. No receivables were written off during these periods.

5. OTHER ASSETS

	September 30, 2021			March 31, 2021
As at	$			$
Prepaid expenses		5,332,635			2,810,369
Lease security deposits		938,242			539,028
Prepaid additional (non-lease) rent		15,424			22,543
Shareholder loans receivable		51,836			50,521
		6,338,137			3,422,461
Less amounts due within one year		(5,450,422	)		(2,890,197	)
Non-current balance		887,715			532,264

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FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

6. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

	Leasehold Improvements			Furniture & Fixtures			Computer Equipment			Medical & Laboratory Equipment			Construction in Progress		Total
Cost	$			$			$			$			$		$
Balance, April 1, 2021		1,243,119			334,600			447,753			276,949			252,732		2,555,153
Additions		420,278			179,735			277,560			65,064			838,222		1,780,859
Foreign currency translation adjustment		7,953			64			3,523			3,657			718		15,915
Balance, September 30, 2021		1,671,350			514,399			728,836			345,670			1,091,672		4,351,927
Accumulated depreciation
Balance, April 1, 2021		(228,264	)		(32,817	)		(71,050	)		(24,205	)		-		(356,336	)
Depreciation expense		(166,016	)		(44,038	)		(93,590	)		(30,729	)		-		(334,373	)
Foreign currency translation adjustment		(4,362	)		(1,047	)		(1,609	)		(1,055	)		-		(8,073	)
Balance, September 30, 2021		(398,642	)		(77,902	)		(166,249	)		(55,989	)		-		(698,782	)
Net book value as at
September 30, 2021		1,272,708			436,497			562,587			289,681			1,091,672		3,653,145
March 31, 2021		1,014,855			301,783			376,703			252,744			252,732		2,198,817

7. LEASES

The Group leases real property for its Toronto office, clinical locations in North America and Europe and the Jamaica Facility. Right-of-use assets (“ROU”) consist of the following:

	Total
Cost	$
Balance, April 1, 2021		8,266,366
Additions		12,354,251
Foreign currency translation adjustment		334,004
Balance, September 30, 2021		20,954,621
Accumulated depreciation
Balance, April 1, 2021		(1,084,008	)
Depreciation expense		(1,054,141	)
Foreign currency translation adjustment		(26,731	)
Balance, September 30, 2021		(2,164,880	)
Net book value as at
September 30, 2021		18,789,741
March 31, 2021		7,182,358

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FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

Lease obligations consist of the following:

	Total
	$
As at April 1, 2021		7,473,807
Additions during the period		12,242,481
Foreign currency translation adjustment		322,297
Payments during the period		(787,427	)
Interest expense during the period		400,918
		19,652,076
Less amounts due within one year		(1,583,092	)
Long-term balance		18,068,984

The Group’s future cash outflows may change due to variable lease payments, renewal options, termination options, residual value guarantees and leases not yet commenced to which the Group is committed that are not reflected in the lease obligations. The following is a maturity analysis for undiscounted lease payments that are reflected in the lease obligations as at September 30, 2021:

	Total
	$
Less than 1 year		2,632,636
1 to 2 years		2,806,656
2 to 3 years		2,734,117
3 to 4 years		2,835,457
4 to 5 years		2,869,214
Beyond 5 years		11,476,809
		25,354,889

The Group is committed for estimated additional variable (non-lease) rent payment obligations as follows:

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FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

The Group is committed for estimated additional variable (non-lease) rent payment obligations as follows:

	Additional Rent Payments		< 1 year		1-2 years		2-3 years		3-4 years		4-5 years		More than 5 years
	$		$		$		$		$		$		$
Total		3,457,669		533,734		533,177		429,361		421,647		404,543		1,135,207

These additional (non-lease) rent payments are variable, and therefore have not been included in the right-of-use asset or lease obligations. 

In addition to variable rent payments, the Company has committed to base and variable rent payments at its Canadian and United States clinics that have been excluded from right-of-use asset and lease obligation balances, as the leases have been executed but have not yet commenced.

	Additional Rent Payments		< 1 year		1-2 years		2-3 years		3-4 years		4-5 years		More than 5 years
	$		$		$		$		$		$		$
Total		11,020,270		470,375		951,851		1,031,660		1,059,287		1,091,690		6,415,407

8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

As at	September 30, 2021		March 31, 2021
	$		$
External services		4,156,144		3,284,448
Personnel costs		2,301,333		1,072,578
Research and development		897,101		199,776
Construction costs		659,592		326,131
IT and technology		117,857		64,540
Sales and marketing		172,371		98,280
Others		275,396		302,357
		8,579,794		5,348,110

9. SHARE CAPITAL

Share Capital Issued as at September 30, 2021

	Number of		Amount
Class of Shares	Shares Issued		$
Class A Common Shares (i - v)		57,790,963		131,698,471
		57,790,963		131,698,471

(i) On June 22, 2021, Field Trip issued the second instalment of the Jamaica Facility shares under the SPA, being a total of 150,000 shares (see Note 11).

(ii) On June 22, 2021, 144,377 FTP Compensation Warrants were exercised at a price of $2.00 for gross proceeds of $288,755.

(iii) On July 9, 2021, 24,508 FTP Compensation Warrants were exercised at a price of $2.00 for gross proceeds of $49,015.

(iv) On September 30, 2021, Field Trip issued the first quarterly instalment of the Jamaica Facility shares under the SPA, being a total of 37,500 shares (Note 11).

(v) During the six months ended September 30, 2021, 137,340 options were exercised for gross proceeds of $109,247.

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 11

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

Share Capital Reserved for Issuance

A summary of shares reserved for issuance is as per below:

	As at		As at
Class of Shares	September 30, 2021		March 31, 2021
Common Share Stock Options		6,308,327		5,150,798
Warrants		2,071,090		2,071,090
FTP Compensation Warrants		174,384		343,269
Compensation Warrants		1,034,868		1,034,868
Jamaica Facility Shares (Note 11)		412,500		600,000
		10,001,169		9,200,025

10. WARRANTS

The following is a schedule of the warrants outstanding:

	FTP
	Compensation			Compensation
	Warrants			Warrants		Warrants		Total Warrants			Amount
	#			#		#		#			$
Balance, March 31, 2021		343,269			1,034,868		2,071,090		3,449,227			6,370,660
Exercised		(168,885	)		-		-		(168,885	)		(173,755	)
Balance, September 30, 2021		174,384			1,034,868		2,071,090		3,280,342			6,196,905

The weighted average remaining life for warrants outstanding as at September 30, 2021 was 1.0 years (March 31, 2021 – 1.4 years). The weighted average market fair value of shares purchased through warrant exercises during the six months ended September 30, 2021 was $2.

11. SHARE-BASED PAYMENTS

As at September 30, 2021, the number of Common Shares available for issuance under the Stock Option Plan pursuant to options not intended as incentive stock options (“ISO”) was 2,360,316. The number of Common Shares available for issuance under the Stock Option Plan pursuant to ISOs was 6,476,000.

Under the Stock Option Plan, the Group may grant options to purchase common shares to officers, directors, employees or consultants of the Group or its affiliates. Options issued under the Stock Option Plan are granted for a term not exceeding ten years from the date of grant. All options issued to-date have a life of ten years or less. In general, options have vested either immediately upon grant or over a period of one to ten years.

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 12

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

The following is a schedule of the options outstanding as at September 30, 2021 and March 31, 2021:

September 30, 2021

				Range of		Weighted Average
	Options			Exercise Price		Exercise Price
	#			$		$
Balance, April 1, 2021		5,150,798			0.50-8.25		2.29
Stock Option Plan - Granted		1,531,786			5.53-7.74		6.31
Stock Option Plan - Forfeited		(236,917	)		0.50-5.74		2.23
Stock Option Plan - Exercised		(137,340	)		0.50-2.00		0.80
Balance, September 30, 2021		6,308,327			0.50-8.25		3.30

March 31, 2021

				Range of		Weighted Average
	Options			Exercise Price		Exercise Price
	#			$		$
Balance, April 1, 2020		11,377,706			0.00001-0.50		0.10
Stock Option Plan - Granted		3,160,193			0.50-8.25		3.47
Stock Option Plan - Forfeited		(168,334	)		0.50-2.00		0.89
Stock Option Plan - Exercised		(9,218,767	)		0.00001-2.00		0.02
Balance, March 31, 2021		5,150,798			0.50-8.25		2.29

The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model.

Option model inputs for options granted during the six months ended September 30, 2021 were as follows:

September 30, 2021

Options		Grant Date	Share Price	Exercise Price	Risk-free Interest Rate	Expected Life		Volatility Factor	Fair Value per Option
#			$	$	%	(years)		%	$
	1,531,786	April 1, 2021 - September 30, 2021	5.53 – 7.74	5.53 – 7.74	1.2 – 1.5		9.3	98 – 107	4.79 – 6.50

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 13

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

The following table summarizes the outstanding and exercisable options held by directors, officers, employees and consultants as at September 30, 2021 and March 31, 2021:

September 30, 2021

			Outstanding			Exercisable
Exercise Price Range	Options		Remaining Contractual Life	Weighted Average Exercise Price		Vested Options		Weighted Average Exercise Price
$	#		(years)	$		#		$
0.5 – 8.25		6,308,327	8 – 10		3.30		1,297,169		0.92

March 31, 2021

			Outstanding			Exercisable
Exercise Price Range	Options		Remaining Contractual Life	Weighted Average Exercise Price		Vested Options		Weighted Average Exercise Price
$	#		(years)	$		#		$
0.5 - 8.25		5,150,798	8 - 10		2.29		785,241		0.80

Jamaica Facility Shares

Field Trip Psychedelics Inc. is committed to issue 1,200,000 fully paid-up Common Shares to Darwin Inc. (the “Jamaica Facility Shares”). Darwin Inc. shall manage the construction and project management of the Jamaica Facility, oversee of the operations of the Jamaica Facility, and manage government relations.

The 1,200,000 common shares shall be issued as per following closing milestones: 600,000 upon commencement of research in the newly renovated research facility, 150,000 one year from the initial closing date (“Cliff”), and 450,000 on a prorated basis quarterly, commencing on the first calendar quarter following the Cliff and ending on the date that is 36 months following the Cliff.

On September 25, 2020 Field Trip issued the first installment of the Jamaica Facility shares, being a total of 600,000 Common Shares. On June 22, 2021 Field Trip issued the second installment of the Jamaica Facility shares of 150,000 Common Shares. On September 30, 2021, Field Trip issued the first quarterly installment of 37,500 shares following the Cliff.

Summary of Stock-based Compensation

	3 months ended  September 30, 2021		3 months ended  September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
Stock Option Plan		2,013,297		139,887		3,345,386		209,520
Long Term Incentive Options		-		207,489		-		241,524
Jamaica Facility Shares (Note 9)		42,593		364,097		122,637		952,000
Stock-based compensation expense		2,055,890		711,473		3,468,023		1,403,044

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 14

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

	3 months ended  September 30, 2021		3 months ended September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
General and administration		1,706,115		352,718		2,853,486		410,640
Patient service expense		172,632		2,544		264,986		5,076
Research and development		124,164		377,401		243,846		978,595
Sales and marketing		52,979		5,810		105,705		8,733
Stock-based compensation expense		2,055,890		711,473		3,468,023		1,403,044

12. NET LOSS PER SHARE

For the three and six months ended September 30, 2021 and 2020, basic loss per share and diluted loss per share were the same, as the Group recorded a net loss for both periods and the exercise of any potentially dilutive instruments would be anti-dilutive.

	3 months ended September 30, 2021			3 months ended  September 30, 2020			6 months ended September 30, 2021			6 months ended September 30, 2020
Loss attributable to common shares ($)		(13,019,280	)		(3,932,444	)		(25,549,675	)		(6,891,348	)
Dilutive effect on income		-			-			-			-
Weighted average number of shares outstanding – basic and diluted (#)		57,382,159			24,896,227			57,750,045			24,958,644
Loss per common share, basic and diluted ($)		(0.23	)		(0.16	)		(0.44	)		(0.28	)

Warrants and options disclosed in Notes 10 and 11 have been excluded from net loss per share as their effect would be anti-dilutive.

13. GENERAL AND ADMINISTRATION

	3 months ended September 30, 2021		3 months ended September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
Personnel costs		3,177,864		889,442		5,986,526		1,578,463
External services		917,428		671,234		1,557,924		1,104,126
Share-based payments (Note 11)		1,706,115		325,718		2,853,486		410,640
Travel and entertainment		437,729		39,613		813,585		48,653
IT and technology		514,392		128,231		967,958		182,679
Office and general		237,287		38,355		318,276		42,387
Listing Expenses		1,926,902		-		3,762,933		-
Total general and administration		8,917,717		2,092,593		16,260,688		3,366,948

Personnel costs include compensation paid to its corporate headquarters and operations staff, as well as medical office administration (“MOA”) staff located at its various clinic locations. External services comprise professional and consulting fees, investor relations and insurance expense.

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 15

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

14. OCCUPANCY COSTS

	3 months ended September 30, 2021		3 months ended September 30, 2020			6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$			$		$
Operating rent expense		14,823		(23,099	)		113,173		10,370
Taxes, maintenance, insurance		62,834		10,592			67,588		17,602
Minor furniture and fixtures		405,120		103,139			645,980		104,422
Utilities and services		53,718		21,245			86,369		43,266
Total occupancy costs		536,495		111,877			913,110		175,660

Operating rent expense comprises additional (non-lease) variable rent payments which are excluded from the right-of-use asset or lease obligations (Note 7).

15. SALES AND MARKETING

	3 months ended September 30, 2021		3 months ended September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
Brand and public relations		396,091		138,257		763,655		200,720
Conference fees		37,548		11,659		52,152		32,051
Personnel costs		166,989		60,747		308,593		92,064
Share-based payments (Note 11)		52,979		5,810		105,705		8,733
External marketing services		648,701		64,712		1,098,795		102,372
Other marketing		13,126		-		50,661		-
Total sales and marketing		1,315,434		281,185		2,379,561		435,940

16. RESEARCH AND DEVELOPMENT

	3 months ended September 30, 2021		3 months ended September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
External services		1,710,322		105,032		2,520,205		107,644
Personnel costs		207,191		199,608		459,917		389,098
Share-based payments (Note 11)		124,164		377,402		243,846		978,595
Supplies and services		61,110		124,494		331,933		126,561
Total research and development		2,102,787		806,536		3,555,901		1,601,898

The expenditures above relate to research and development activities which do not qualify for capitalization based on the Group’s accounting policies for capitalization of development costs. They have therefore been recognised as an expense during the three and six months ended September 30, 2021 and 2020.

External services fees relate primarily to fees paid to third parties to further FT-104 development.

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 16

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

17. DEPRECIATION AND AMORTIZATION

	3 months ended September 30, 2021		3 months ended September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
Property, plant and equipment		181,390		51,199		334,373		84,966
Right-of-use asset		625,976		207,868		1,054,141		374,435
Intangible assets		41,346		10,511		75,681		19,937
Total depreciation and amortization		848,712		269,578		1,464,195		479,338

18. PATIENT SERVICES EXPENSE

	3 months ended September 30, 2021		3 months ended September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
Personnel costs		1,633,141		213,585		2,926,926		280,623
Share-based payments (Note 11)		172,632		2,544		264,986		5,076
Supplies and services		91,652		30,821		144,217		34,314
Payment provider fees		20,026		1,458		39,143		1,652
Total patient services expense		1,917,451		248,408		3,375,272		321,665

Patient services expense is comprised of direct costs incurred by the Clinics to generate patient services revenue.

19. INTEREST INCOME

	3 months ended September 30, 2021		3 months ended September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
Interest income on bank balances		104,643		45		231,203		27
Interest income on refundable lease deposit		6,407		1,916		10,809		3,562
Interest income on shareholders' loan		884		628		1,537		1,249
Total interest income		111,934		2,589		243,549		4,838

20. INTEREST EXPENSE

	3 months ended September 30, 2021		3 months ended September 30, 2020		6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$		$		$
Interest expense on leases		255,307		60,829		400,918		98,062
Interest expense on loan		1,215		133		2,191		133
Total finance expense		256,522		60,962		403,109		98,195

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 17

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

21. OTHER INCOME (EXPENSE)

	3 Months ended  September 30, 2021		3 Months ended  September 30, 2020			6 months ended September 30, 2021		6 months ended September 30, 2020
	$		$			$		$
Foreign exchange gain/(loss)		1,856,088		(197,435	)		771,293		(591,682	)
Government assistance		-		39,009			12,103		57,009
Total other income (expense)		1,856,088		(158,426	)		783,396		(534,673	)

22. SEGMENT REPORTING

Information reported to the Chief Operating Decision Maker (“CODM”) for the purpose of resource allocation and assessment of segment performance focuses on the nature of the operations. The Group operates in three segments:

· Clinical Operations which encompass the Group’s psychedelic assisted psychotherapy clinics across North America, supporting digital tools and training,

· Research which consists of research focused on the development of next-generation psychedelic modules and research of fungi at the Group’s facility in Jamaica, and

· Corporate which encompasses the operations of Field Trip headquarters.

Factors considered in determining the operating segments include the Group’s business activities, the management structure directly accountable to the CODM, availability of discrete financial information and strategic priorities within the organizational structure.

	Clinical Operations			Research			Corporate			Total
Segment Information	$			$			$			$
Three months ended September 30, 2021
Revenue		907,816			-			-			907,816
Net loss		(7,981,236	)		(2,345,978	)		(2,692,066	)		(13,019,280	)
Three months ended September 30, 2020
Revenue		94,532			-			-			94,532
Net loss		(1,609,226	)		(742,275	)		(1,580,943	)		(3,932,444	)
Six months ended September 30, 2021
Revenue		1,775,216			-			-			1,775,216
Net loss		(14,164,830	)		(3,940,583	)		(7,444,262	)		(25,549,675	)
Six months ended September 30, 2020
Revenue		118,131			-			-			118,131
Net loss		(2,066,569	)		(1,469,161	)		(3,355,618	)		(6,891,348	)

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 18

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

	Clinical Operations		Research	Corporate	Total
Segment Information	$		$	$	$
As at September 30, 2021
Total assets		26,506,922	444,172	92,961,760	119,912,854
Total liabilities		21,515,200	27,976	6,851,294	28,394,470
As at March 31, 2021
Total assets		10,973,658	608,469	114,867,878	126,450,005
Total liabilities		7,948,513	118,859	4,819,975	12,887,347

	Canada			United States			Jamaica			Netherlands			Total
Geographic Information	$			$			$			$			$
Three months ended September 30, 2021
Revenue		272,477			596,377			-			38,962			907,816
Net loss		(6,625,243	)		(5,505,748	)		(266,488	)		(621,801	)		(13,019,280	)
Three months ended September 30, 2020
Revenue		78,249			16,283			-			-			94,532
Net loss		(2,810,959	)		(1,069,167	)		(52,318	)		-			(3,932,444	)
Six months ended September 30, 2021
Revenue		553,343			1,182,911			-			38,962			1,775,216
Net loss		(13,974,737	)		(9,637,142	)		(491,408	)		(1,446,388	)		(25,549,675	)
Six months ended September 30, 2020
Revenue		101,848			16,283			-			-			118,131
Net loss		(5,033,348	)		(1,772,541	)		(85,459	)		-			(6,891,348	)
As at September 30, 2021
Total assets		95,228,993			21,924,376			444,173			2,315,312			119,912,854
Total liabilities		8,338,815			18,587,578			27,976			1,440,101			28,394,470
As at March 31, 2021
Total assets		115,396,469			8,351,828			608,469			2,093,239			126,450,005
Total liabilities		5,027,297			6,138,106			118,859			1,603,085			12,887,347

The revenue consists of revenue from external customers only and there is no inter-segment revenue.

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 19

FIELD TRIP HEALTH LTD.

Notes to the Condensed Interim Consolidated Financial Statements

For the three and six months ended September 30, 2021 and 2020

(unaudited)

23. FINANCIAL INSTRUMENTS

Classification of Financial Instruments

Financial assets and financial liabilities are measured on an ongoing basis at fair value or amortized cost. The classification of the financial instruments, as well as their carrying values, are shown in the table below:

	As at		As at
	September 30, 2021		March 31, 2021
	$		$
Cash and cash equivalent (Level 1)		22,388,946		38,469,057
Funds held in trust (Level 1)		-		795,516
Restricted cash (Level 1)		619,127		588,041
Financial assets at fair value through profit and loss		23,008,073		39,852,614

Fair Value

IFRS 13 - Fair Value Measurements requires disclosure of a three-level hierarchy that reflects the significance of the inputs used in making fair value measurements. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets

Level 2 - Observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data

Level 3 - Significant unobservable inputs that are supported by little or no market activity

Short-term investments, accounts receivable, lease security deposits, and accounts payable and accrued liabilities are all short-term in nature and, as such, their carrying values approximate fair values. There have been no transfers between any levels of the fair value hierarchy.

24. COMPARATIVES

Certain comparative figures have been reclassified where necessary to conform with current period presentation.

Field Trip Health Ltd. ▪ Condensed Interim Consolidated Financial Statements (unaudited) Page | 20