EX-99.2 3 nept-ex992.htm EX-99.2 nept-40f_20180930.htm

Exhibit 99.2

Consolidated Interim Financial Statements of

(Unaudited)

neptune WELLNESS SOLUTIONS Inc.

(formerly Neptune Technologies and Bioressources Inc. (note 1))

For the three-month and six-month periods ended September 30, 2018 and 2017

 

 


 

 

neptune WELLNESS SOLUTIONS inc.

Consolidated Interim Financial Statements

(Unaudited)

For the three-month and six-month periods ended September 30, 2018 and 2017

Financial Statements

 

 

 

 

 

 

 


 

neptune WELLNESS SOLUTIONS inc.

Consolidated Interim Statements of Financial Position

(Unaudited)

As at September 30, 2018 and March 31, 2018

 

 

 

September 30,

 

 

March 31,

 

 

 

2018

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

18,053,767

 

 

$

24,287,107

 

Short-term investment (note 8)

 

 

2,350,000

 

 

 

2,350,000

 

Trade and other receivables

 

 

4,939,099

 

 

 

5,590,847

 

Tax credits receivable

 

 

36,840

 

 

 

49,597

 

Prepaid expenses

 

 

737,037

 

 

 

372,944

 

Inventories (note 5)

 

 

6,166,097

 

 

 

5,261,329

 

Other financial asset (note 14 (a)(ii))

 

 

7,945

 

 

 

19,090

 

 

 

 

32,290,785

 

 

 

37,930,914

 

 

 

 

 

 

 

 

 

 

Restricted short-term investment

 

 

60,000

 

 

 

60,000

 

Property, plant and equipment (note 6)

 

 

45,421,737

 

 

 

41,809,576

 

Intangible assets (note 7)

 

 

5,053,636

 

 

 

5,307,634

 

Goodwill

 

 

6,750,626

 

 

 

6,750,626

 

Tax credits recoverable

 

 

152,464

 

 

 

152,464

 

Other financial asset (note 14 (a)(i))

 

 

8,611,618

 

 

 

6,585,740

 

Total assets

 

$

98,340,866

 

 

$

98,596,954

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Trade and other payables

 

$

8,793,414

 

 

$

6,747,889

 

Loans and borrowings (note 8)

 

 

4,038,967

 

 

 

4,661,356

 

Deferred revenues

 

 

252,985

 

 

 

109,954

 

 

 

 

13,085,366

 

 

 

11,519,199

 

 

 

 

 

 

 

 

 

 

Deferred lease inducements

 

 

237,423

 

 

 

267,101

 

Long-term payable

 

 

199,970

 

 

 

249,714

 

Deferred tax liabilities

 

 

119,744

 

 

 

27,170

 

Total liabilities

 

 

13,642,503

 

 

 

12,063,184

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Share capital (note 9)

 

 

130,690,622

 

 

 

128,483,507

 

Warrants (note 9 (d))

 

 

648,820

 

 

 

648,820

 

Contributed surplus

 

 

37,448,213

 

 

 

36,355,549

 

Accumulated other comprehensive income

 

 

2,540,292

 

 

 

525,559

 

Deficit

 

 

(86,629,584

)

 

 

(79,479,665

)

Total equity

 

 

84,698,363

 

 

 

86,533,770

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (note 15)

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$

98,340,866

 

 

$

98,596,954

 

 

See accompanying notes to unaudited consolidated interim financial statements.

 

 

 

 

 

 

 

1


 

NEPTUNE WELLNESS SOLUTIONS INC.

Consolidated Interim Statements of Earnings and Comprehensive Income (Loss)

(Unaudited)

 

For the three-month and six-month periods ended September 30, 2018 and 2017

 

 

 

 

Three-month periods ended

 

Six-month periods ended

 

 

 

 

September 30,

2018

 

 

September 30,

2017

 

 

September 30,

2018

 

 

September 30,

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from sales (note 4)

 

$

6,583,406

 

 

$

6,548,458

 

 

$

11,481,555

 

 

$

12,845,484

 

Royalty revenues

 

 

488,049

 

 

 

246,461

 

 

 

758,174

 

 

 

480,249

 

Total revenues

 

 

7,071,455

 

 

 

6,794,919

 

 

 

12,239,729

 

 

 

13,325,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (note 5)

 

 

(4,714,171

)

 

 

(4,667,053

)

 

 

(8,389,213

)

 

 

(8,755,035

)

Other cost of sales - impairment loss on inventories (notes 4 and 6)

 

 

 

 

 

(1,719,362

)

 

 

 

 

 

(1,719,362

)

 

 

 

 

(4,714,171

)

 

 

(6,386,415

)

 

 

(8,389,213

)

 

 

(10,474,397

)

Gross margin

 

 

2,357,284

 

 

 

408,504

 

 

 

3,850,516

 

 

 

2,851,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

 

(1,663,946

)

 

 

(3,179,261

)

 

 

(3,389,310

)

 

 

(5,017,216

)

Research tax credits and grants

 

 

(25,156

)

 

 

65,757

 

 

 

24,743

 

 

 

109,686

 

 

 

 

 

(1,689,102

)

 

 

(3,113,504

)

 

 

(3,364,567

)

 

 

(4,907,530

)

Selling, general and administrative expenses

 

 

(3,488,948

)

 

 

(4,012,955

)

 

 

(7,341,692

)

 

 

(7,650,003

)

Other income - net gain on sale of assets (note 4)

 

 

 

 

 

23,871,077

 

 

 

 

 

 

23,871,077

 

Income (loss) from operating activities

 

 

(2,820,766

)

 

 

17,153,122

 

 

 

(6,855,743

)

 

 

14,164,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

69,984

 

 

 

23,373

 

 

 

134,180

 

 

 

47,065

 

Finance costs (note 10)

 

 

(124,042

)

 

 

(1,074,140

)

 

 

(335,782

)

 

 

(1,784,942

)

Change in fair value of derivative assets and liabilities

 

 

 

 

 

21,806

 

 

 

 

 

 

309,711

 

 

 

 

 

(54,058

)

 

 

(1,028,961

)

 

 

(201,602

)

 

 

(1,428,166

)

Income (loss) before income taxes

 

 

(2,874,824

)

 

 

16,124,161

 

 

 

(7,057,345

)

 

 

12,736,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) recovery

 

 

(175,123

)

 

 

(6,895

)

 

 

(92,574

)

 

 

13,197

 

Net income (loss)

 

 

(3,049,947

)

 

 

16,117,266

 

 

 

(7,149,919

)

 

 

12,749,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on investment (note 14 (a)(i))

 

 

4,710,166

 

 

 

(9,740

)

 

 

2,025,878

 

 

 

(41,395

)

 

Net change in unrealized (losses) gains on derivatives

   designated as cash flow hedges (note 14 (a)(ii))

 

 

(5,403

)

 

 

16,213

 

 

 

(11,145

)

 

 

37,182

 

Total other comprehensive income (loss)

 

 

4,704,763

 

 

 

6,473

 

 

 

2,014,733

 

 

 

(4,213

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss)

 

$

1,654,816

 

 

$

16,123,739

 

 

$

(5,135,186

)

 

$

12,745,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity holders of the Corporation

 

$

(3,049,947

)

 

$

19,073,861

 

 

$

(7,149,919

)

 

$

17,528,255

 

Non-controlling interest

 

 

 

 

 

(2,956,595

)

 

 

 

 

 

(4,778,344

)

Net income (loss)

 

$

(3,049,947

)

 

$

16,117,266

 

 

$

(7,149,919

)

 

$

12,749,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity holders of the Corporation

 

$

1,654,816

 

 

$

19,080,334

 

 

$

(5,135,186

)

 

$

17,524,042

 

Non-controlling interest

 

 

 

 

 

(2,956,595

)

 

 

 

 

 

(4,778,344

)

Total comprehensive income (loss)

 

$

1,654,816

 

 

$

16,123,739

 

 

$

(5,135,186

)

 

$

12,745,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) per share

 

$

(0.04

)

 

$

0.24

 

 

$

(0.09

)

 

$

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of common shares (note 12)

 

 

79,399,624

 

 

 

78,629,292

 

 

 

79,141,424

 

 

 

78,475,045

 

Diluted weighted average number of common shares (note 12)

 

 

79,399,624

 

 

 

78,967,880

 

 

 

79,141,424

 

 

 

78,802,277

 

 

See accompanying notes to unaudited consolidated interim financial statements.

 

2


 

NEPTUNE WELLNESS SOLUTIONS INC.

Consolidated Interim Statements of Changes in Equity

(Unaudited)

For the six-month periods ended September 30, 2018 and 2017

 

 

 

Attributable to equity holders of the Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Share Capital

 

 

 

 

 

 

 

 

 

 

other comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income (loss)

 

 

 

 

 

 

 

 

 

 

 

Number

 

 

Dollars

 

 

Warrants

 

 

Contributed

surplus

 

 

Investment in

equity instruments

 

 

Cash flow

hedges

 

 

Deficit

 

 

Total

 

Balance at March 31, 2018

 

 

78,804,212

 

 

$

128,483,507

 

 

$

648,820

 

 

$

36,355,549

 

 

$

506,469

 

 

$

19,090

 

 

$

(79,479,665

)

 

$

86,533,770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,149,919

)

 

 

(7,149,919

)

Other comprehensive income (loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,025,878

 

 

 

(11,145

)

 

 

 

 

 

2,014,733

 

Total comprehensive income (loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,025,878

 

 

 

(11,145

)

 

 

(7,149,919

)

 

 

(5,135,186

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with equity holders recorded directly

   in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions by and distribution to equity holders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment transactions  (note 11)

 

 

 

 

 

 

 

 

 

 

 

1,884,327

 

 

 

 

 

 

 

 

 

 

 

 

1,884,327

 

DSU released (note 9 (b))

 

 

135,557

 

 

 

204,050

 

 

 

 

 

 

(204,050

)

 

 

 

 

 

 

 

 

 

 

 

 

Share options exercised (note 9 (a))

 

 

869,674

 

 

 

2,003,065

 

 

 

 

 

 

(587,613

)

 

 

 

 

 

 

 

 

 

 

 

1,415,452

 

Total contributions by and distribution to equity holders

 

 

1,005,231

 

 

 

2,207,115

 

 

 

 

 

 

1,092,664

 

 

 

 

 

 

 

 

 

 

 

 

3,299,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2018

 

 

79,809,443

 

 

$

130,690,622

 

 

$

648,820

 

 

$

37,448,213

 

 

$

2,532,347

 

 

$

7,945

 

 

$

(86,629,584

)

 

$

84,698,363

 

 

See accompanying notes to unaudited consolidated interim financial statements.

3


 

NEPTUNE wellness solutions INC.

Consolidated Interim Statements of Changes in Equity, Continued

(Unaudited)

For the six-month periods ended September 30, 2018 and 2017

 

 

 

Attributable to equity holders of the Corporation

 

 

Attributable to non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Capital

 

 

 

 

 

 

 

 

 

 

other comprehensive

 

 

 

 

 

 

 

 

 

 

Subsidiary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income (loss)

 

 

 

 

 

 

 

 

 

 

warrants,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number

 

 

Dollars

 

 

Warrants

 

 

Contributed

surplus

 

 

Investment in equity instruments

 

 

Cash flow

hedges

 

 

Deficit

 

 

Total

 

 

options

and other

equity

 

 

Non-

controlling

interest

 

 

Total

 

 

Total

equity

 

Balance at March 31, 2017

 

 

77,968,587

 

 

$

127,201,343

 

 

$

648,820

 

 

$

33,335,136

 

 

$

(420,052

)

 

$

(7,298

)

 

$

(97,010,523

)

 

$

63,747,426

 

 

$

3,616,864

 

 

$

7,435,948

 

 

$

11,052,812

 

 

$

74,800,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,528,255

 

 

 

17,528,255

 

 

 

 

 

 

(4,778,344

)

 

 

(4,778,344

)

 

 

12,749,911

 

Other comprehensive income (loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(41,395

)

 

 

37,182

 

 

 

 

 

 

(4,213

)

 

 

 

 

 

 

 

 

 

 

 

(4,213

)

Total comprehensive income (loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(41,395

)

 

 

37,182

 

 

 

17,528,255

 

 

 

17,524,042

 

 

 

 

 

 

(4,778,344

)

 

 

(4,778,344

)

 

 

12,745,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with equity holders recorded

   directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions by and distribution to equity

   holders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment transactions

   (note 11)

 

 

 

 

 

 

 

 

 

 

 

582,128

 

 

 

 

 

 

 

 

 

 

 

 

582,128

 

 

 

330,832

 

 

 

 

 

 

330,832

 

 

 

912,960

 

DSUs released (note 9 (b))

 

 

55,944

 

 

 

80,000

 

 

 

 

 

 

(80,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability settled in shares (note 9 (c))

 

 

630,681

 

 

 

848,070