$LEEEF

Leef Brands Inc.

CIK:0001711141|SEC Filings

Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net revenue	$ 7,274,908	$ 8,691,656	$ 16,651,910	$ 18,089,917
Cost of sales	4,864,545	7,201,635	9,616,897	14,526,606
Gross profit	2,410,363	1,490,021	7,035,013	3,563,311
Operating expenses
Advertising and promotion	21,904	62,061	56,241	201,224
Depreciation and amortization	350,235	304,107	635,725	598,611
Wages and salaries	2,155,828	1,943,497	3,845,518	3,824,256
Office and general expenses	705,705	733,569	1,307,296	1,530,986
License and compliance	31,603	13,506	37,309	26,266
Research and development expenses	6,281	10,570	8,362	19,198
Legal and professional fees	644,399	338,269	938,695	826,208
Insurance expenses	110,358	121,780	208,445	221,351
Excise and other taxes	59,801	59,142	114,967	107,579
Lease expenses	186,296	183,333	370,535	341,735
Travel and business development	126,310	93,346	216,610	146,601
Total operating expenses	4,398,720	3,863,180	7,739,703	7,844,015
Loss from operations	(1,988,357)	(2,373,159)	(704,690)	(4,280,704)
Other (income) expense
Interest expense	242,195	579,387	559,029	1,171,888
Change in fair value derivative liability	(1,581,817)	(566,681)	(1,191,412)	(4,105,121)
Other (income) expense	(18,037)	(60,557)	10,064	(9,052)
Total other income	(1,357,659)	(47,851)	(622,319)	(2,942,285)
Net loss before provision for income taxes	(630,698)	(2,325,308)	(82,371)	(1,338,419)
Provision for income taxes	704,050	607,891	1,678,630	1,329,004
Net loss and comprehensive loss	(1,334,748)	(2,933,199)	(1,761,001)	(2,667,423)
Less: Preferred stock dividends	137,491		137,491
Net loss and comprehensive loss applicable to common shareholders	$ (1,472,239)	$ (2,933,199)	$ (1,898,492)	$ (2,667,423)
Loss per common share - basic	$ (0.01)	$ (0.02)	$ (0.01)	$ (0.02)
Loss per common share - diluted	$ (0.01)	$ (0.02)	$ (0.01)	$ (0.02)
Weighted average common shares outstanding - basic	290,003,245	175,442,331	275,008,957	175,085,129
Weighted average common shares outstanding - diluted	290,003,245	175,442,331	275,008,957	175,085,129

Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2026	Mar. 31, 2026	Jun. 30, 2025	Mar. 31, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
Cash Flows from Operating Activities
Net loss and comprehensive loss	$ (1,334,748)	$ (426,253)	$ (2,933,199)	$ 265,776	$ (1,761,001)	$ (2,667,423)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization					1,224,999	1,104,515
Share based compensation					1,189,620	1,083,885
Lease cost, net of repayment					6,839	37,749
Amortization of debt discounts					351,957	498,912
Change in fair value of derivative liability	(1,581,817)		(566,681)		(1,191,412)	(4,105,121)	$ (8,934,632)
Unrealized loss (gain) on crypto asset					85,974	(40,337)
Changes in operating assets and liabilities
Accounts receivable, net					(96,160)	176,772
Prepaid expenses and deposits					(829,928)	(514,145)
Inventory					(2,837,059)	(173,981)
Other assets					4,540	19,502
Accounts payable and other accrued liabilities					(1,162,567)	885,135
Related party payables					(168,413)	492,523
Uncertain tax positions					1,512,529	1,168,626
Net cash used in operating activities					(3,670,082)	(2,033,388)
Cash Flows from Investing Activities
Equipment purchase					(1,640,028)	(487,880)
Proceeds from sale of crypto currency						403,622
Investment in intangible asset						(300,000)
Cash acquired from acquisition					201,277
Net cash used in investing activities					(1,438,751)	(384,258)
Cash Flows from Financing Activities
Issuance of preferred and common shares, net of issuance costs					9,075,207
Dividend Paid					(66,073)
Consideration payable					(340,000)
Repayment of notes					(450,061)	(165,729)
Proceeds from issuance of related party note payable						749,630
Cash repayments of related party notes payable					(350,000)	(10,000)
Net cash provided by financing activities					7,869,073	573,901
Net increase (decrease) in Cash					2,760,240	(1,843,745)
Effect of foreign exchange translation						(343)
Cash, beginning of period		$ 2,190,722		$ 2,731,979	2,190,722	2,731,979	2,731,979
Cash, end of period	$ 4,950,962		$ 887,891		4,950,962	887,891	2,190,722
Supplemental disclosure of cash flow information
Cash paid for interest					62,521	20,900
Other non-cash investing and financing activities
Common shares issued for earnout consideration						935,618
Financed equipment						433,112	433,112
Non-cash note repayment						50,423	$ 50,423
Reclass of accrued interest						67,500
Related party note issued in exchange for crypto currency						405,650
Related party note additions						245,050
Modification of notes payable and warrants					217,255
Recognition of derivative liability for warrants and preferred share conversion feature issued					4,611,761
Payment to vendor using cryptocurrency					258,495
Payment for related party note payable using cryptocurrency					$ 268,716
Shares returned to treasury					30,742
Issuance of preferred dividend shares					$ 32,354

Interim Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash	$ 4,950,962	$ 2,190,722
Accounts receivable, net	2,212,582	1,592,653
Inventory, net	7,146,535	3,350,889
Prepaid expenses and deposits	1,545,020	505,438
Deferred costs and other current assets	512,656	508,987
Total current assets	16,367,755	8,148,689
Non-current assets
Property and equipment, net	25,554,412	25,041,313
Right of use assets, net	1,689,020	1,678,072
Goodwill	6,053,307
Intangible assets, net	2,335,747	1,122,199
Assets held for sale	400,000	400,000
Other assets	12,605	12,605
Total assets	52,412,846	36,402,878
Current liabilities
Accounts payable and other accrued liabilities	4,322,541	4,768,534
Related party payables	1,129,641	1,916,770
Current portion of notes payable	1,956,438	1,001,395
Current portion of related party consideration payable		340,000
Lease liabilities, short term	277,229	160,285
Taxes payable	6,177	161,770
Total current liabilities	7,692,026	8,348,754
Non-current liabilities
Lease liabilities, net of current portion	1,559,963	1,659,120
Notes payable, net of current	8,628,069	9,783,361
Derivative liabilities, long term	12,531,203	8,893,600
Uncertain tax positions	22,767,064	15,219,548
Deferred tax liability	1,274,077	766,796
Total liabilities	54,452,402	44,671,179
Stockholders’ Deficit
Common stock; no par value; unlimited shares authorized; 305,556,473 and 257,947,996 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
Additional paid-in capital	137,360,450	131,445,688
Accumulated other comprehensive loss	(336,879)	(336,879)
Accumulated deficit	(141,275,602)	(139,377,110)
Total stockholders’ deficit	(2,039,556)	(8,268,301)
Total liabilities and stockholders’ deficit	52,412,846	36,402,878
Series A-1 Preferred Stock [Member]
Stockholders’ Deficit
Series A-1 Preferred stock; no par value; unlimited shares authorized; 11,204,376 and 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	$ 2,212,475