TROPIC INTERNATIONAL INC.

CIK:0000844538|SEC Filings

Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - CAD ($)	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Revenue:
Sales	$ 179,085		$ 1,182,265
Production costs:
COGS	79,838		540,051
Amortization - licence agreement (Note 4)	46,868	46,867	140,603	140,600
Royalty			46,073
Patenting costs - the Clinic			7,937	7,813
Total production costs	126,706	46,867	734,664	148,413
Gross margin	52,379	(46,867)	447,601	(148,413)
General and administration:
Consulting fees - management (Note 7)	183,514	5,876	397,821	87,875
Salaries and benefits	74,027		291,592
Amortization - intangible assets (Note 5)	85,805		176,125
Interest on advances from related parties/shareholders (Note 7 and 8)	2,951	3,078	8,814	9,035
Interest on license assignment fee payable (Note 9)	83,600	53,602	207,410	160,097
Advertising and promotion	(631)		75,755	124
Foreign exchange loss	82,871	23,053	91,756	286,189
Office and miscellaneous	111,981	421	284,218	1,234
Professional fees	10,850	51,220	95,758	83,554
Taxes	5,327		17,927
Rent	8,213	1,042	18,491	11,822
Travel and entertainment	2,986	518	51,998	2,087
Trust and filing fees	5,177	8,549	38,386	23,528
Total general and administration	656,671	147,359	1,756,051	665,545
Loss before other item and income taxes	(604,292)	(194,226)	(1,308,450)	(813,958)
Other items:
Other income				2,800
Gain on revaluation of derivative liabilities (Note 11)	7,132	84,164	9,575	130,247
Gain on expiry of warrants				109,808
Discount received				4,172
Write-off of amount receivable				(8,752)
Loss before income taxes	(597,160)	(110,062)	(1,298,875)	(575,683)
Income taxes
Deferred tax recovery	22,309		22,309
Net loss and comprehensive loss	$ (574,851)	$ (110,062)	$ (1,276,566)	$ (575,683)
Loss per share - basic and diluted	$ (0.01)	$ (0.00)	$ (0.02)	$ (0.01)
Weighted-average number of shares outstanding - basic and diluted	57,821,593	57,545,343	57,717,358	57,541,314

Condensed Consolidated Statements of Cash Flows (Unaudited) - CAD ($)	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Cash Flows From Operating Activities
Net loss for the period	$ (574,851)	$ (110,062)	$ (1,276,566)	$ (575,683)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization - intangible assets	85,805		176,125
Amortization - license agreement	46,868	46,867	140,603	140,600
Unrealized foreign exchange on license assignment fee payable			41,615	189,925
Unrealized foreign exchange and expense on due to Clinic				16,311
Write-down of receivables				8,752
Interest accrued on advances from related parties/shareholders	2,951	3,078	8,814	9,035
Interest accrued on license assignment fee payable	83,600	53,602	207,410	160,097
Discount received and other income				(8,755)
Gain on revaluation of derivative liabilities	(7,132)	(84,164)	(9,575)	(130,247)
Gain on expiration of warrants				(109,808)
Deferred tax recovery	(22,309)		(22,309)
Changes in assets and liabilities:
Amounts receivable			225,317	(6,062)
Inventory			(98,077)
Sales tax receivable			(18,206)
Prepaid expenses			15,038	13,976
Accounts payable and accrued liabilities			617,975	332,306
Due to the Clinic			17,985
Net cash provided by (used in) operating activities			26,587	(128,683)
Cash Flows From Investing Activities
Purchase of office equipment			(6,710)
Cash acquired from business combination			82,625
Net cash provided by investing activities			75,915
Cash Flows From Financing Activities
Proceeds from private placements				364,934
Advances from related parties/shareholders, net			(34,530)	(35,713)
Net cash (used in) provided by financing activities			(34,530)	329,221
Increase in cash during the period			67,972	200,538
Cash, beginning of period			14,843	5,664
Cash, end of period	$ 82,815	$ 206,202	82,815	206,202
Non-cash information
Issuance of shares for subscription received in advance			261,692
Warrants at a fair value			$ 88,338

Condensed Consolidated Balance Sheets (Unaudited) - CAD ($)	May 31, 2020	Aug. 31, 2019
Current assets:
Cash	$ 82,815	$ 14,843
Amounts receivable	304,279	6,584
Inventory	1,104,626
Sales tax receivable	112,932	94,726
Prepaid expenses	5,402	20,440
Total current assets	1,610,054	136,593
Advances to Xthetica		86,519
Office equipment	6,710
Patents	4	4
License agreement (Note 4)	796,730	937,333
Intangible assets (Note 5)	1,630,281
Goodwill (Note 5)	186,147
Total assets	4,229,926	1,160,449
Current liabilities:
Accounts payable and accrued liabilities (Note 6)	3,136,956	1,972,567
Advances from related parties/shareholders (Note 7 and 8)	419,044	444,760
License assignment fee and accrued interest payable (Note 9)	1,274,325	1,042,561
Stock purchase warrants (Note 11)	80,539	1,776
Stock subscribed in advance (Note 11)		261,692
Total current liabilities	4,910,864	3,723,356
Deferred tax liability (Note 5)	423,873
Due to the Clinic (Note 4)	282,098	264,113
Total liabilities	5,616,835	3,987,469
Stockholders' deficiency (Note 11):
Common stock	1,306,500	1,133,146
Additional paid-in capital	8,458,365	8,458,365
Purchase consideration (Note 5)	2,543,323
Deficit accumulated during the development stage	(13,695,097)	(12,418,531)
Total stockholders' deficiency	(1,386,909)	(2,827,020)
Total liabilities and stockholders' deficiency	$ 4,229,926	$ 1,160,449