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Field Trip Health & Wellness Ltd. – ‘6-K’ for 6/30/22 – ‘EX-99.2’

On:  Monday, 8/29/22, at 7:40pm ET   ·   As of:  8/30/22   ·   For:  6/30/22   ·   Accession #:  1104659-22-95728   ·   File #:  0-56470

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 8/30/22  Field Trip Health & Wellness Ltd. 6-K         6/30/22    4:1.1M                                   Toppan Merrill/FA

Current, Quarterly or Annual Report by a Foreign Issuer   —   Form 6-K   —   SEA’34

Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Current, Quarterly or Annual Report by a Foreign    HTML     13K 
                Issuer                                                           
 2: EX-99.1     Miscellaneous Exhibit                               HTML    304K 
 3: EX-99.2     Miscellaneous Exhibit                               HTML    691K 
 4: EX-99.3     Miscellaneous Exhibit                               HTML     29K

‘EX-99.2’   —   Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]

  tm2224401-1_nonfiling - none - 8.9219138s  
​
 
 Exhibit 99.2​
SPINCO
UNAUDITED CONDENSED INTERIM COMBINED CARVE-OUT FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2022 AND 2021
(Expressed in Canadian Dollars, unless otherwise noted)
1
​
 
SPINCO
UNAUDITED INTERIM COMBINED CARVE-OUT STATEMENTS OF FINANCIAL POSITION
(Expressed in Canadian Dollars)
​ ​
Notes
​ ​
As at
June 30, 2022
​ ​
As at
March 31, 2022
​
​ ​ ​ ​ ​ ​
$
​ ​
$
​
ASSETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
CURRENT ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Cash
​ ​ ​ ​ ​ ​
​
4,128,462
 ​ ​ ​ ​
​
1,998,665
 ​ ​
Restricted cash
​ ​ ​ ​ ​ ​
​
451,096
 ​ ​ ​ ​
​
776,551
 ​ ​
Accounts receivable
​ ​
4
​ ​ ​
​
1,466,315
 ​ ​ ​ ​
​
1,053,077
 ​ ​
Other assets
​ ​
5
​ ​ ​
​
569,453
 ​ ​ ​ ​
​
614,023
 ​ ​
TOTAL CURRENT ASSETS
​ ​ ​ ​ ​ ​ ​ 6,615,326 ​ ​ ​ ​ ​ 4,442,316 ​ ​
NON-CURRENT ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Property, plant and equipment
​ ​
6
​ ​ ​
​
3,334,343
 ​ ​ ​ ​
​
4,462,175
 ​ ​
Intangible assets
​ ​
7
​ ​ ​
​
450,941
 ​ ​ ​ ​
​
483,354
 ​ ​
Right-of-use assets
​ ​
8
​ ​ ​
​
27,096,677
 ​ ​ ​ ​
​
27,285,334
 ​ ​
Other non-current assets
​ ​
5
​ ​ ​
​
697,513
 ​ ​ ​ ​
​
675,022
 ​ ​
TOTAL NON-CURRENT ASSETS
​ ​ ​ ​ ​ ​ ​ 31,579,474 ​ ​ ​ ​ ​ 32,905,885 ​ ​
TOTAL ASSETS
​ ​ ​ ​ ​ ​ ​ 38,194,800 ​ ​ ​ ​ ​ 37,348,201 ​ ​
LIABILITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
CURRENT ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Accounts payable and accrued liabilities
​ ​
9
​ ​ ​
​
3,908,433
 ​ ​ ​ ​
​
4,048,880
 ​ ​
Deferred revenue
​ ​ ​ ​ ​ ​
​
416,784
 ​ ​ ​ ​
​
278,717
 ​ ​
Current portion of lease obligations
​ ​
8
​ ​ ​
​
2,595,602
 ​ ​ ​ ​
​
2,306,823
 ​ ​
TOTAL CURRENT LIABILITIES
​ ​ ​ ​ ​ ​ ​ 6,920,819 ​ ​ ​ ​ ​ 6,634,420 ​ ​
NON-CURRENT ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Loan payable
​ ​ ​ ​ ​ ​
​
32,295
 ​ ​ ​ ​
​
31,163
 ​ ​
Lease obligations
​ ​
8
​ ​ ​
​
26,749,728
 ​ ​ ​ ​
​
26,714,233
 ​ ​
TOTAL NON-CURRENT LIABILITIES
​ ​ ​ ​ ​ ​ ​ 26,782,023 ​ ​ ​ ​ ​ 26,745,396 ​ ​
TOTAL LIABILITIES
​ ​ ​ ​ ​ ​ ​ 33,702,842 ​ ​ ​ ​ ​ 33,379,816 ​ ​
NET INVESTMENT ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Investment
​ ​ ​ ​ ​ ​
​
4,725,866
 ​ ​ ​ ​
​
3,284,738
 ​ ​
Accumulated other comprehensive income (loss)
​ ​ ​ ​ ​ ​
​
(233,908)
 ​ ​ ​ ​
​
683,647
 ​ ​
TOTAL NET INVESTMENT
​ ​ ​ ​ ​ ​ ​ 4,491,958 ​ ​ ​ ​ ​ 3,968,385 ​ ​
TOTAL LIABILITIES AND NET INVESTMENT
​ ​ ​ ​ ​ ​ ​ 38,194,800 ​ ​ ​ ​ ​ 37,348,201 ​ ​
Subsequent events (Note 21)
​ Approved on behalf of the Board of Directors: ​
​ /s/ Joseph del Moral ​ ​ /s/ Ronan Levy ​
​
​
Director
​ ​
​
Director
​
The accompanying notes are an integral part of these Unaudited Condensed Interim Combined Carve-out Financial Statements.
2
​
 
SPINCO
UNAUDITED INTERIM COMBINED CARVE-OUT STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Expressed in Canadian Dollars)
​ ​
Notes
​ ​
For the Three Months
Ended
June 30, 2022
​ ​
For the Three Months
Ended
June 30, 2021
​
​ ​ ​ ​ ​ ​
$
​ ​
$
​
REVENUE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Patient services
​ ​ ​ ​ ​ ​
​
1,824,404
 ​ ​ ​ ​
​
867,400
 ​ ​
Total revenue
​ ​ ​ ​ ​ ​ ​ 1,824,404 ​ ​ ​ ​ ​ 867,400 ​ ​
OPERATING EXPENSES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
General and administration
​ ​
12
​ ​ ​
​
6,336,476
 ​ ​ ​ ​
​
5,603,922
 ​ ​
Occupancy costs
​ ​
13
​ ​ ​
​
1,227,952
 ​ ​ ​ ​
​
376,615
 ​ ​
Sales and marketing
​ ​
14
​ ​ ​
​
669,898
 ​ ​ ​ ​
​
1,064,127
 ​ ​
Research and development
​ ​
15
​ ​ ​
​
44,305
 ​ ​ ​ ​
​
66,938
 ​ ​
Depreciation and amortization
​ ​
16
​ ​ ​
​
1,204,670
 ​ ​ ​ ​
​
615,483
 ​ ​
Patient services expense
​ ​
17
​ ​ ​
​
2,513,949
 ​ ​ ​ ​
​
1,845,625
 ​ ​
Total operating expenses
​ ​ ​ ​ ​ ​ ​ 11,997,250 ​ ​ ​ ​ ​ 9,572,710 ​ ​
OTHER INCOME (EXPENSES) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Interest income
​ ​
18
​ ​ ​
​
8,621
 ​ ​ ​ ​
​
7,625
 ​ ​
Interest expense
​ ​
19
​ ​ ​
​
(406,403)
 ​ ​ ​ ​
​
(146,587)
 ​ ​
Foreign exchange gain (loss)
​ ​ ​ ​ ​ ​
​
2,333,950
 ​ ​ ​ ​
​
(301,064)
 ​ ​
Government assistance
​ ​ ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
12,102
 ​ ​
Net loss before income taxes
​ ​ ​ ​ ​ ​ ​ (8,236,678) ​ ​ ​ ​ ​ (9,133,234) ​ ​
Income taxes
​ ​ ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​
Net loss after income taxes
​ ​ ​ ​ ​ ​ ​ (8,236,678) ​ ​ ​ ​ ​ (9,133,234) ​ ​
Exchange gain (loss) from translation of foreign subsidiaries
​ ​ ​ ​ ​ ​
​
(917,555)
 ​ ​ ​ ​
​
104,067
 ​ ​
COMPREHENSIVE LOSS
​ ​ ​ ​ ​ ​ ​ (9,154,233) ​ ​ ​ ​ ​ (9,029,167) ​ ​
NET LOSS PER SHARE ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Basic and diluted
​ ​
11
​ ​ ​
​
(0.16)
 ​ ​ ​ ​
​
(0.19)
 ​ ​
The accompanying notes are an integral part of these Unaudited Condensed Interim Combined Carve-out Financial Statements.
3
​
 
SPINCO
UNAUDITED INTERIM COMBINED CARVE-OUT STATEMENTS OF CHANGES IN NET INVESTMENT
(Expressed in Canadian Dollars)
​ ​
Notes
​ ​
Net Investment
​ ​
Accumulated Other
Comprehensive
Income (Loss)
​ ​
Total
​
​ ​ ​ ​ ​ ​
$
​ ​
$
​ ​
$
​
Balance, April 1, 2021
​ ​ ​ ​ ​ ​ ​ 3,284,738 ​ ​ ​ ​ ​ 683,647 ​ ​ ​ ​
​
3,968,385
 ​ ​
Net loss
​ ​ ​ ​ ​ ​ ​ (8,236,678) ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
(8,236,678)
 ​ ​
Exchange loss from translation of foreign subsidiaries
​ ​ ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (917,555) ​ ​ ​ ​
​
(917,555)
 ​ ​
Comprehensive loss
​ ​ ​ ​ ​ ​ ​ (8,236,678) ​ ​ ​ ​ ​ (917,555) ​ ​ ​ ​ ​ (9,154,233) ​ ​
Contribution from Field Trip Health Ltd. and Field Trip Psychedelics Inc.
​ ​ ​ ​ ​ ​ ​ 9,427,810 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
9,427,810
 ​ ​
Share-based payments
​ ​
10
​ ​ ​ ​ 249,996 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
249,996
 ​ ​
Balance, June 30, 2022
​ ​ ​ ​ ​ ​ ​ 4,725,866 ​ ​ ​ ​ ​ (233,908) ​ ​ ​ ​ ​ 4,491,958 ​ ​
(Expressed in Canadian Dollars)
​ ​
Notes
​ ​
Net Investment
​ ​
Accumulated Other
Comprehensive
Income
​ ​
Total
​
​ ​ ​ ​ ​ ​
$
​ ​
$
​ ​
$
​
Balance, April 1, 2020
​ ​ ​ ​ ​ ​ ​ 3,644,245 ​ ​ ​ ​ ​ 327,302 ​ ​ ​ ​
​
3,971,547
 ​ ​
Net loss
​ ​ ​ ​ ​ ​ ​ (9,133,234) ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
(9,133,234)
 ​ ​
Exchange gain from translation of foreign subsidiaries
​ ​ ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 104,067 ​ ​ ​ ​
​
104,067
 ​ ​
Comprehensive income (loss)
​ ​ ​ ​ ​ ​ ​ (9,133,234) ​ ​ ​ ​ ​ 104,067 ​ ​ ​ ​ ​ (9,029,167) ​ ​
Contribution from Field Trip Health Ltd. and Field Trip Psychedelics Inc.
​ ​ ​ ​ ​ ​ ​ 11,339,297 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
11,339,297
 ​ ​
Share-based payments
​ ​
10
​ ​ ​ ​ 1,275,957 ​ ​ ​ ​ ​ — ​ ​ ​ ​
​
1,275,957
 ​ ​
Purchase of non-controlling interest
​ ​ ​ ​ ​ ​ ​ 7,126,265 ​ ​ ​ ​ ​ 431,369 ​ ​ ​ ​
​
7,557,634
 ​ ​
Balance, June 30, 2021
​ ​ ​ ​ ​ ​ ​ 14,252,530 ​ ​ ​ ​ ​ 862,738 ​ ​ ​ ​ ​ 15,115,268 ​ ​
The accompanying notes are an integral part of these Condensed Interim Combined Carve-out Financial Statements.
4
​
 
SPINCO
UNAUDITED INTERIM COMBINED CARVE-OUT STATEMENTS OF CASH FLOWS
(Expressed in Canadian Dollars)
​ ​
Notes
​ ​
For the Three Months
Ended
June 30, 2022
​ ​
For the Three Months
Ended
June 30, 2021
​
​ ​ ​ ​ ​ ​
$
​ ​
$
​
OPERATING ACTIVITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net loss
​ ​ ​ ​ ​ ​
​
(8,236,678)
 ​ ​ ​ ​
​
(9,133,234)
 ​ ​
Items not involving cash: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Depreciation and amortization
​ ​
16
​ ​ ​
​
1,204,670
 ​ ​ ​ ​
​
615,483
 ​ ​
Share-based payments
​ ​
10
​ ​ ​
​
249,996
 ​ ​ ​ ​
​
1,275,957
 ​ ​
Unrealized foreign exchange (gain) loss
​ ​ ​ ​ ​ ​
​
(412,543)
 ​ ​ ​ ​
​
132,061
 ​ ​
Government assistance
​ ​ ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
(12,102)
 ​ ​
Impairment of fixed assets
​ ​
13
​ ​ ​
​
997,524
 ​ ​ ​ ​
​
—
 ​ ​
Interest income
​ ​
18
​ ​ ​
​
(8,621)
 ​ ​ ​ ​
​
(7,625)
 ​ ​
Interest expense
​ ​
19
​ ​ ​
​
406,403
 ​ ​ ​ ​
​
146,587
 ​ ​
Expenses paid by Field Trip Health Ltd. and Field Trip Psychedelics Inc. on behalf of SpinCo
​ ​ ​ ​ ​ ​
​
3,661,177
 ​ ​ ​ ​
​
6,105,947
 ​ ​
Net change in non-cash working capital
​ ​
20
​ ​ ​
​
(398,501)
 ​ ​ ​ ​
​
30,692
 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ (2,536,573) ​ ​ ​ ​ ​ (846,234) ​ ​
Interest received
​ ​ ​ ​ ​ ​
​
3,817
 ​ ​ ​ ​
​
(95,375)
 ​ ​
CASH RELATED TO OPERATING ACTIVITIES
​ ​ ​ ​ ​ ​ ​ (2,532,756) ​ ​ ​ ​ ​ (941,609) ​ ​
INVESTING ACTIVITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Acquisition of property, plant and equipment
​ ​ ​ ​ ​ ​
​
(56,098)
 ​ ​ ​ ​
​
(692,427)
 ​ ​
Development of intangible assets
​ ​ ​ ​ ​ ​
​
(14,265)
 ​ ​ ​ ​
​
(112,412)
 ​ ​
Refundable security deposit paid for right-of-use assets
​ ​ ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
(264,380)
 ​ ​
CASH RELATED TO INVESTING ACTIVITIES
​ ​ ​ ​ ​ ​ ​ (70,363) ​ ​ ​ ​ ​ (1,069,219) ​ ​
FINANCING ACTIVITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Repayment of principal of lease obligations
​ ​
8
​ ​ ​
​
(836,091)
 ​ ​ ​ ​
​
(339,069)
 ​ ​
Investment from Field Trip Psychedelics Inc.
​ ​ ​ ​ ​ ​
​
5,766,633
 ​ ​ ​ ​
​
5,233,350
 ​ ​
Loan received
​ ​ ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
20,000
 ​ ​
CASH RELATED TO FINANCING ACTIVITIES
​ ​ ​ ​ ​ ​ ​ 4,930,542 ​ ​ ​ ​ ​ 4,914,281 ​ ​
Net change in cash during the period
​ ​ ​ ​ ​ ​
​
2,327,423
 ​ ​ ​ ​
​
2,903,453
 ​ ​
Effect of exchange rate on changes in cash
​ ​ ​ ​ ​ ​
​
(523,081)
 ​ ​ ​ ​
​
77,884
 ​ ​
Cash, beginning of the period
​ ​ ​ ​ ​ ​
​
2,775,216
 ​ ​ ​ ​
​
1,892,175
 ​ ​
CASH, END OF THE PERIOD
​ ​ ​ ​ ​ ​ ​ 4,579,558 ​ ​ ​ ​ ​ 4,873,512 ​ ​
Represented by: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Cash
​ ​ ​ ​ ​ ​
​
4,128,462
 ​ ​ ​ ​
​
4,411,333
 ​ ​
Restricted cash
​ ​ ​ ​ ​ ​
​
451,096
 ​ ​ ​ ​
​
462,179
 ​ ​
CASH, END OF THE PERIOD
​ ​ ​ ​ ​ ​ ​ 4,579,558 ​ ​ ​ ​ ​ 4,873,512 ​ ​
The accompanying notes are an integral part of these Unaudited Condensed Interim Combined Carve-out Financial Statements.
5
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements
For the Three Months Ended June 30, 2022 and 2021
1.
NATURE OF OPERATIONS
​
SpinCo (the “Company”) was incorporated under Canada Business Corporations Act on August 3, 2021 as Field Trip Training Inc. and subsequently changed its name to Field Trip Health Holdings Inc. (“FTHH”) on February 10, 2022. SpinCo is a wholly owned subsidiary of Field Trip Health Ltd. (“Field Trip”). The Company’s registered office and head office is located at 30 Duncan Street, Suite 401, Toronto, ON, M5V 2C3.
The Company develops and delivers psychedelic therapies. Psychedelic therapies are utilized in the treatment of mental health and mood disorders, such as severe depression, anxiety and post-traumatic stress disorder.
The Company’s focus is to develop proprietary, competitive and differentiated psychedelic therapies (through innovation in therapeutic protocols), with a view of achieving the best patient outcomes in the treatment of mental health and mood disorders. SpinCo currently takes an integrated approach, combining optimized therapeutic protocols and digital tools in combination to achieve SpinCo’s ultimate goal of successfully commercializing novel psychedelic therapeutics and therapies.
SpinCo’s Health division operates clinics offering psychedelic-assisted psychotherapy treatment programs, including Ketamine Assisted Psychotherapy (“KAP”) in Canada and the USA and psilocybin-assisted therapies in the Netherlands. The clinics provide 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 psychedelic-assisted therapies; (ii) conduct clinical research studies for Reunion and other third parties through its Sites Management Organization service offering.
SpinCo’s Training division offers programs including both didactic and experiential training to therapists and medical professionals who wish to learn about KAP.
In support of the clinics, SpinCo 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.
The Company 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. Pursuant to a research agreement with UWI, the Company has leased a custom-built research and cultivation facility on the university campus (the “Jamaica Facility”).
Field Trip Reorganization
On August 11, 2022, Field Trip completed its previously announced reorganization which resulted in the separation of its Field Trip Discovery and Field Trip Health divisions into two independent companies (the “Spinout Transaction”). The reorganization was completed by way of a Plan of Arrangement (the “Arrangement”). Upon closing, Field Trip transferred the entirety of its clinics in Canada, United States and The Netherlands, its botanical research in Jamaica and part of its corporate operations in Canada and United States (the “Clinic Operations”) to Field Trip Health and Wellness Ltd. (“Field Trip H&W”) (see Note 23 — Subsequent Events for details).
2.
BASIS OF PREPARATION
​
Statement of Compliance
The unaudited condensed interim combined carve-out financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and with International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (“IASB”) and interpreted by the IFRS Interpretations Committee. Accordingly, certain information and footnote disclosure normally included in the annual financial statements prepared in accordance with IFRS, as issued by the IASB, have been omitted or condensed.
These unaudited condensed interim combined carve-out financial statements should be read in conjunction with the most recent audited annual combined carve-out financial statements of the Company, including the notes thereto, for the fiscal years ended March 31, 2022 and 2021.
These unaudited condensed interim combined carve-out financial statements were approved for issue by the Board of Directors on August 29, 2022.
Basis of Presentation
These unaudited condensed interim combined carve-out financial statements have been prepared on a going concern basis, under the historical cost convention, as detailed in the Company’s accounting policies in the most recent audited annual combined carve-out financial statements.
6
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
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 combined carve-out financial statements, have been applied consistently to all periods presented in these condensed interim combined carve-out financial statements. The accounting policies have been applied consistently by all subsidiaries and professional medical corporations.
Use of Estimates and Judgments
The preparation of unaudited condensed interim combined carve-out 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 unaudited condensed interim combined carve-out 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 Company 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 Note 3 to the Company’s combined carve-out financial statements for the fiscal years ended March 31, 2022 and 2021. There have been no significant changes in estimates and judgments in the three months ended June 30, 2022.
4.
ACCOUNTS RECEIVABLE
​
​ ​ ​
As at
June 30, 2022
​ ​
As at
March 31, 2022
​
​ ​ ​
$
​ ​
$
​
Trade receivables
​ ​ ​
​
436,380
 ​ ​ ​ ​
​
250,139
 ​ ​
Sales tax receivable
​ ​ ​
​
944,625
 ​ ​ ​ ​
​
552,508
 ​ ​
Other receivables
​ ​ ​
​
85,310
 ​ ​ ​ ​
​
250,430
 ​ ​
​ ​ ​ ​ ​ 1,466,315 ​ ​ ​ ​ ​ 1,053,077 ​ ​
​
5.
OTHER ASSETS
​
​ ​ ​
As at
June 30, 2022
​ ​
As at
March 31, 2022
​
​ ​ ​
$
​ ​
$
​
Prepaid expenses
​ ​ ​
​
549,596
 ​ ​ ​ ​
​
594,767
 ​ ​
Lease security deposits
​ ​ ​
​
701,946
 ​ ​ ​ ​
​
678,854
 ​ ​
Prepaid additional (non-lease) rent
​ ​ ​
​
15,424
 ​ ​ ​ ​
​
15,424
 ​ ​
​ ​ ​ ​ ​ 1,266,966 ​ ​ ​ ​ ​ 1,289,045 ​ ​
Less amounts due within one year
​ ​ ​
​
(569,453)
 ​ ​ ​ ​
​
(614,023)
 ​ ​
Non-current balance
​ ​ ​ ​ 697,513 ​ ​ ​ ​ ​ 675,022 ​ ​
7
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
6.
PROPERTY, PLANT AND EQUIPMENT
​
Cost
​ ​
Leasehold
Improvements
​ ​
Furniture &
Fixtures
​ ​
Computer
Equipment
​ ​
Medical &
Laboratory
Equipment
​ ​
Construction
in Progress
​ ​
Total
​
​ ​ ​
$
​ ​
$
​ ​
$
​ ​
$
​ ​
$
​ ​
$
​
Balance, April 1, 2022
​ ​ ​ ​ 2,652,290 ​ ​ ​ ​ ​ 627,200 ​ ​ ​ ​ ​ 963,801 ​ ​ ​ ​ ​ 416,833 ​ ​ ​ ​ ​ 962,640 ​ ​ ​ ​ ​ 5,622,764 ​ ​
Additions
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 37,567 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 10,114 ​ ​ ​ ​ ​ 47,681 ​ ​
Impairment charge
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (997,524) ​ ​ ​ ​ ​ (997,524) ​ ​
Foreign currency translation adjustment
​ ​ ​ ​ 41,248 ​ ​ ​ ​ ​ 12,515 ​ ​ ​ ​ ​ 20,500 ​ ​ ​ ​ ​ 12,273 ​ ​ ​ ​ ​ 24,770 ​ ​ ​ ​ ​ 111,306 ​ ​
Balance, June 30, 2022
​ ​ ​ ​ 2,693,538 ​ ​ ​ ​ ​ 639,715 ​ ​ ​ ​ ​ 1,021,868 ​ ​ ​ ​ ​ 429,106 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 4,784,227 ​ ​
Accumulated depreciation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Balance, April 1, 2022
​ ​ ​ ​ (625,016) ​ ​ ​ ​ ​ (134,859) ​ ​ ​ ​ ​ (307,993) ​ ​ ​ ​ ​ (92,721) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (1,160,589) ​ ​
Depreciation expense
​ ​ ​ ​ (129,349) ​ ​ ​ ​ ​ (31,823) ​ ​ ​ ​ ​ (84,552) ​ ​ ​ ​ ​ (21,207) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (266,931) ​ ​
Foreign currency translation adjustment
​ ​ ​ ​ (11,628) ​ ​ ​ ​ ​ (2,917) ​ ​ ​ ​ ​ (4,785) ​ ​ ​ ​ ​ (3,034) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (22,364) ​ ​
Balance, June 30, 2022
​ ​ ​ ​ (765,993) ​ ​ ​ ​ ​ (169,599) ​ ​ ​ ​ ​ (397,330) ​ ​ ​ ​ ​ (116,962) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (1,449,884) ​ ​
Net book value as at ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
June 30, 2022
​ ​ ​ ​ 1,927,545 ​ ​ ​ ​ ​ 470,116 ​ ​ ​ ​ ​ 624,538 ​ ​ ​ ​ ​ 312,144 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 3,334,343 ​ ​
March 31, 2022
​ ​ ​ ​ 2,027,274 ​ ​ ​ ​ ​ 492,341 ​ ​ ​ ​ ​ 655,808 ​ ​ ​ ​ ​ 324,112 ​ ​ ​ ​ ​ 962,640 ​ ​ ​ ​ ​ 4,462,175 ​ ​
On April 28, 2022, the Company announced its decision to defer the opening of new clinics to a future date. As construction will not continue, the benefits will not be realized and an amount of $997,524 was written off during the quarter ended Jun 30, 2022 (March 31, 2022 — Nil).
7.
INTANGIBLE ASSETS
​
Cost
​ ​
Field Trip
Health Website
​ ​
Field Trip
Health Portal
​ ​
Trip App
​ ​
Total
​
​ ​ ​
$
​ ​
$
​ ​
$
​ ​
$
​
Balance, April 1, 2022
​ ​ ​ ​ 182,905 ​ ​ ​ ​ ​ 251,263 ​ ​ ​ ​ ​ 278,282 ​ ​ ​ ​ ​ 712,450 ​ ​
Additions
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 14,264 ​ ​ ​ ​ ​ 14,264 ​ ​
Balance, June 30, 2022
​ ​ ​ ​ 182,905 ​ ​ ​ ​ ​ 251,263 ​ ​ ​ ​ ​ 292,546 ​ ​ ​ ​ ​ 726,714 ​ ​
Accumulated amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Balance, April 1, 2022
​ ​ ​ ​ (88,599) ​ ​ ​ ​ ​ (70,599) ​ ​ ​ ​ ​ (69,898) ​ ​ ​ ​ ​ (229,096) ​ ​
Amortization expense
​ ​ ​ ​ (11,400) ​ ​ ​ ​ ​ (16,568) ​ ​ ​ ​ ​ (18,709) ​ ​ ​ ​ ​ (46,677) ​ ​
Balance, June 30, 2022
​ ​ ​ ​ (99,999) ​ ​ ​ ​ ​ (87,167) ​ ​ ​ ​ ​ (88,607) ​ ​ ​ ​ ​ (275,773) ​ ​
Net book value as at ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
June 30, 2022
​ ​ ​ ​ 82,906 ​ ​ ​ ​ ​ 164,096 ​ ​ ​ ​ ​ 203,939 ​ ​ ​ ​ ​ 450,941 ​ ​
March 31, 2022
​ ​ ​ ​ 94,306 ​ ​ ​ ​ ​ 180,664 ​ ​ ​ ​ ​ 208,384 ​ ​ ​ ​ ​ 483,354 ​ ​
8
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
8.
LEASES
​
The Company leases real property for its Toronto office, clinical locations in North America and The Netherlands and its research facility in Jamaica. Right-of-use assets consist of the following:
Cost
​ ​
Total
​
​ ​ ​
$
​
Balance, April 1, 2022
​ ​ ​ ​ 30,960,968 ​ ​
Foreign currency translation adjustment
​ ​ ​ ​ 782,482 ​ ​
Balance, June 30, 2022
​ ​ ​ ​ 31,743,450 ​ ​
Accumulated depreciation ​ ​ ​ ​ ​ ​ ​
Balance, April 1, 2022
​ ​ ​
​
(3,675,634)
 ​ ​
Depreciation expense
​ ​ ​
​
(891,062)
 ​ ​
Foreign currency translation adjustment
​ ​ ​
​
(80,077)
 ​ ​
Balance, June 30, 2022
​ ​ ​ ​ (4,646,773) ​ ​
Net book value as at ​ ​ ​ ​ ​ ​ ​
June 30, 2022
​ ​ ​ ​ 27,096,677 ​ ​
March 31, 2022
​ ​ ​ ​ 27,285,334 ​ ​
Lease obligations consist of the following:
​ ​ ​
Total
​
​ ​ ​
$
​
As at April 1, 2022
​ ​ ​ ​ 29,021,056 ​ ​
Payments during the period
​ ​ ​ ​ (836,091) ​ ​
Interest expense during the period
​ ​ ​ ​ 405,272 ​ ​
Foreign currency translation adjustment
​ ​ ​ ​ 755,093 ​ ​
​ ​ ​ ​ ​ 29,345,330 ​ ​
Less amounts due within one year
​ ​ ​
​
(2,595,602)
 ​ ​
Long-term balance
​ ​ ​ ​ 26,749,728 ​ ​
The following is a maturity analysis for undiscounted lease payments that are reflected in the lease obligations as at June 30, 2022:
June 30, 2022
​ ​
Total
​
​ ​ ​
$
​
Less than 1 year
​ ​ ​ ​ 4,152,521 ​ ​
1 to 2 years
​ ​ ​ ​ 4,195,087 ​ ​
2 to 3 years
​ ​ ​ ​ 4,351,320 ​ ​
3 to 4 years
​ ​ ​ ​ 4,477,769 ​ ​
4 to 5 years
​ ​ ​ ​ 4,093,669 ​ ​
Beyond 5 years
​ ​ ​ ​ 16,216,048 ​ ​
​ ​ ​ ​ ​ 37,486,414 ​ ​
The Company’s future cash outflows may change due to variable lease payments, renewal options and termination options.
9
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
8.
LEASES (Continued)
​
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
​ ​ ​
​
4,481,094
 ​ ​ ​ ​
​
668,271
 ​ ​ ​ ​
​
593,915
 ​ ​ ​ ​
​
556,737
 ​ ​ ​ ​
​
552,315
 ​ ​ ​ ​
​
433,006
 ​ ​ ​ ​
​
1,676,850
 ​ ​
These additional (non-lease) rent payments are variable and, therefore, have not been included in the right-of-use asset or lease obligations.
9.
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
​
​ ​ ​
As at
June 30, 2022
​ ​
As at
March 31, 2022
​
​ ​ ​
$
​ ​
$
​
Trade payables
​ ​ ​ ​ 148,184 ​ ​ ​ ​ ​ 593,849 ​ ​
Accrued liabilities
​ ​ ​ ​ 3,760,249 ​ ​ ​ ​ ​ 3,455,031 ​ ​
​ ​ ​ ​ ​ 3,908,433 ​ ​ ​ ​ ​ 4,048,880 ​ ​
As at June 30, 2022, the Company accrued an amount of $1,090,922 related to personnel costs (March 31, 2022 — $1,967,823) included in accounts payable and accrued liabilities.
10.
SHARE-BASED PAYMENTS
​
Under the Stock Option Plan, Field Trip may grant options to purchase common shares to officers, directors, employees or consultants of the Company or its affiliates. Options issued under the Stock Option Plan are granted for a term not exceeding 10 years from the date of grant. In general, options have vested either immediately upon grant or over a period of four to 10 years.
The following is a schedule of the Field Trip options outstanding as at June 30, 2022 and March 31, 2022:
June 30, 2022
​ ​
Options
​ ​
Range of
Exercise Price
​ ​
Weighted Average
Exercise Price
​
​ ​ ​
#
​ ​
$
​ ​
$
​
Balance, April 1, 2022
​ ​ ​ ​ 4,654,045 ​ ​ ​ ​ ​ 0.50 – 8.25 ​ ​ ​ ​ ​ 3.39 ​ ​
Stock Option Plan – Granted
​ ​ ​ ​ 610,500 ​ ​ ​ ​ ​ 1.04 – 1.33 ​ ​ ​ ​ ​ 1.14 ​ ​
Stock Option Plan – Forfeit
​ ​ ​ ​ (472,854) ​ ​ ​ ​ ​ 0.50 – 7.74 ​ ​ ​ ​ ​ 4.51 ​ ​
Stock Option Plan – Exercised
​ ​ ​ ​ (1,563) ​ ​ ​ ​ ​ 0.50 ​ ​ ​ ​ ​ 0.50 ​ ​
Balance, June 30, 2022
​ ​ ​ ​ 4,790,128 ​ ​ ​ ​ ​ 0.50 – 8.25 ​ ​ ​ ​ ​ 2.99 ​ ​
March 31, 2022
​ ​
Options
​ ​
Range of
Exercise Price
​ ​
Weighted Average
Exercise Price
​
​ ​ ​
#
​ ​
$
​ ​
$
​
Balance, April 1, 2021
​ ​ ​ ​ 4,388,303 ​ ​ ​ ​ ​ 0.50 – 8.25 ​ ​ ​ ​ ​ 2.35 ​ ​
Stock Option Plan – Granted
​ ​ ​ ​ 1,426,286 ​ ​ ​ ​ ​ 1.65 – 7.74 ​ ​ ​ ​ ​ 6.07 ​ ​
Stock Option Plan – Forfeit
​ ​ ​ ​ (738,378) ​ ​ ​ ​ ​ 0.50 – 8.00 ​ ​ ​ ​ ​ 3.92 ​ ​
Stock Option Plan – Exercised
​ ​ ​ ​ (422,166) ​ ​ ​ ​ ​ 0.50 – 2.68 ​ ​ ​ ​ ​ 0.70 ​ ​
Balance, March 31, 2022
​ ​ ​ ​ 4,654,045 ​ ​ ​ ​ ​ 0.50 – 8.25 ​ ​ ​ ​ ​ 3.39 ​ ​
The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model.
10
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
10.
SHARE-BASED PAYMENTS (Continued)
​
Weighted average of option model inputs and fair value for Field Trip options granted during the three months ended June 30, 2022 and June 30, 2021 were as follows:
June 30, 2022
Options
​ ​
Share Price
​ ​
Exercise
Price
​ ​
Risk-free
Interest Rate
​ ​
Expected Life
(years)
​ ​
Volatility
Factor
​ ​
Fair Value
per Option
​
#
​ ​
$
​ ​
$
​ ​
%
​ ​ ​ ​ ​ ​ ​ ​
%
​ ​
$
​
​ ​ 610,500 ​ ​ ​ ​ ​ 1.14 ​ ​ ​ ​ ​ 1.14 ​ ​ ​ ​ ​ 2.9 ​ ​ ​ ​ ​ 10 ​ ​ ​ ​ ​ 100 ​ ​ ​ ​ ​ 0.89 ​ ​
June 30, 2021
Options
​ ​
Share Price
​ ​
Exercise
Price
​ ​
Risk-free
Interest Rate
​ ​
Expected Life
(years)
​ ​
Volatility
Factor
​ ​
Fair Value
per Option
​
#
​ ​
$
​ ​
$
​ ​
%
​ ​ ​ ​ ​ ​ ​ ​
%
​ ​
$
​
​ ​ 669,888 ​ ​ ​ ​ ​ 5.96 ​ ​ ​ ​ ​ 5.96 ​ ​ ​ ​ ​ 1.4 ​ ​ ​ ​ ​ 9.3 ​ ​ ​ ​ ​ 105 ​ ​ ​ ​ ​ 5.19 ​ ​
The following table summarizes the outstanding and exercisable Field Trip options as at June 30, 2022 and March 31, 2022:
June 30, 2022
Exercise Price
Range
​ ​
Options
​ ​
Remaining
Contractual Life
​ ​
Weighted Average
Exercise Price
​ ​
Vested Options
​ ​
Weighted Average
Exercise Price
​
$
​ ​
#
​ ​
(years)
​ ​
$
​ ​
#
​ ​
$
​
​ ​ 0.50 ​ ​ ​ ​ ​ 1,657,532 ​ ​ ​ ​ ​ 7.8 ​ ​ ​ ​ ​ 0.50 ​ ​ ​ ​ ​ 823,904 ​ ​ ​ ​ ​ 0.50 ​ ​
​ ​ 1.08 – 1.33 ​ ​ ​ ​ ​ 590,500 ​ ​ ​ ​ ​ 9.9 ​ ​ ​ ​ ​ 1.14 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
​ ​ 1.65 – 2.35 ​ ​ ​ ​ ​ 633,813 ​ ​ ​ ​ ​ 8.3 ​ ​ ​ ​ ​ 2.00 ​ ​ ​ ​ ​ 240,289 ​ ​ ​ ​ ​ 2.00 ​ ​
​ ​ 2.55 – 3.83 ​ ​ ​ ​ ​ 50,000 ​ ​ ​ ​ ​ 8.9 ​ ​ ​ ​ ​ 2.87 ​ ​ ​ ​ ​ 8,853 ​ ​ ​ ​ ​ 2.68 ​ ​
​ ​ 3.83 – 5.75 ​ ​ ​ ​ ​ 965,497 ​ ​ ​ ​ ​ 8.7 ​ ​ ​ ​ ​ 5.16 ​ ​ ​ ​ ​ 218,889 ​ ​ ​ ​ ​ 4.94 ​ ​
​ ​ 5.75 – 8.25 ​ ​ ​ ​ ​ 892,785 ​ ​ ​ ​ ​ 9.0 ​ ​ ​ ​ ​ 7.20 ​ ​ ​ ​ ​ 150,377 ​ ​ ​ ​ ​ 7.65 ​ ​
​ ​ 0.5 – 8.25 ​ ​ ​ ​ ​ 4,790,127 ​ ​ ​ ​ ​ 8.5 ​ ​ ​ ​ ​ 2.99 ​ ​ ​ ​ ​ 1,442,312 ​ ​ ​ ​ ​ 2.18 ​ ​
March 31, 2022
Exercise Price
Range
​ ​
Options
​ ​
Remaining
Contractual Life
​ ​
Weighted Average
Exercise Price
​ ​
Vested Options
​ ​
Weighted Average
Exercise Price
​
$
​ ​
#
​ ​
(years)
​ ​
$
​ ​
#
​ ​
$
​
​ ​ 0.50 ​ ​ ​ ​ ​ 1,739,617 ​ ​ ​ ​ ​ 8.0 ​ ​ ​ ​ ​ 0.50 ​ ​ ​ ​ ​ 778,632 ​ ​ ​ ​ ​ 0.50 ​ ​
​ ​ 1.65 – 2.35 ​ ​ ​ ​ ​ 680,896 ​ ​ ​ ​ ​ 8.5 ​ ​ ​ ​ ​ 2.00 ​ ​ ​ ​ ​ 235,024 ​ ​ ​ ​ ​ 2.00 ​ ​
​ ​ 2.55 – 3.83 ​ ​ ​ ​ ​ 50,000 ​ ​ ​ ​ ​ 9.2 ​ ​ ​ ​ ​ 2.87 ​ ​ ​ ​ ​ 8,332 ​ ​ ​ ​ ​ 2.68 ​ ​
​ ​ 3.83 – 5.75 ​ ​ ​ ​ ​ 1,016,747 ​ ​ ​ ​ ​ 9.0 ​ ​ ​ ​ ​ 5.13 ​ ​ ​ ​ ​ 232,172 ​ ​ ​ ​ ​ 4.92 ​ ​
​ ​ 5.75 – 8.25 ​ ​ ​ ​ ​ 1,166,785 ​ ​ ​ ​ ​ 9.2 ​ ​ ​ ​ ​ 6.99 ​ ​ ​ ​ ​ 115,729 ​ ​ ​ ​ ​ 7.98 ​ ​
​ ​ 0.5 – 8.25 ​ ​ ​ ​ ​ 4,654,045 ​ ​ ​ ​ ​ 8.6 ​ ​ ​ ​ ​ 3.39 ​ ​ ​ ​ ​ 1,369,889 ​ ​ ​ ​ ​ 2.15 ​ ​
Jamaica Facility Shares
In accordance with a share purchase agreement (“SPA”) between Field Trip and Darwin Inc. executed on June 3, 2020, Field Trip is committed to issue 1,200,000 fully paid-up Field Trip Common Shares to Darwin Inc. (the “Jamaica Facility Shares”). Darwin Inc. will manage the construction and project management of the Jamaica Facility, oversee the operations of the Jamaica Facility and manage government relations.
11
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
10.
SHARE-BASED PAYMENTS (Continued)
​
The 1,200,000 Field Trip common shares will be issued as per the following closing milestones:
•
600,000 upon the commencement of research in the newly renovated research facility, which was met and issued on September 25, 2020;
​
•
150,000 following one year from the initial closing date (June 22, 2021 or the “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. For the period following the Cliff from June 30, 2021 to March 31, 2022, Field Trip issued three quarterly installments, being a total of 112,500 shares. As at June 30, 2022 Field Trip has 337,500 Jamaica Facility Shares still outstanding to be issued.
​
On July 5, 2022, the SPA was amended to provide for the issuance of common shares of Field Trip H&W, adjusted to reflect the Spinout Transaction by dividing the number of shares by 0.859833560 (see Note 23 Subsequent Events — Plan of Arrangement).
Summary of Stock-based Compensation
​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Stock option compensation expense – Stock Option Plan
​ ​ ​ ​ 249,996 ​ ​ ​ ​ ​ 1,195,913 ​ ​
Stock-based compensation expense – Jamaica Facility Shares
​ ​ ​ ​ — ​ ​ ​ ​ ​ 80,044 ​ ​
Stock-based compensation expense
​ ​ ​ ​ 249,996 ​ ​ ​ ​ ​ 1,275,957 ​ ​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Stock option compensation expense – General and administration
​ ​ ​ ​ 215,905 ​ ​ ​ ​ ​ 1,053,645 ​ ​
Stock option compensation expense – Patient service expense
​ ​ ​ ​ 30,201 ​ ​ ​ ​ ​ 92,354 ​ ​
Stock option compensation expense – Research and development
​ ​ ​ ​ 1,523 ​ ​ ​ ​ ​ 77,232 ​ ​
Stock option compensation expense – Sales and marketing
​ ​ ​ ​ 2,367 ​ ​ ​ ​ ​ 52,726 ​ ​
Stock-based compensation expense
​ ​ ​ ​ 249,996 ​ ​ ​ ​ ​ 1,275,957 ​ ​
​
11.
NET LOSS PER SHARE
​
For the three months ended June 30, 2022 and June 30, 2021, basic loss per share and diluted loss per share were the same, as the Company recorded a net loss for both years and the exercise of any potentially dilutive instruments would be anti-dilutive.
Instruments that could potentially dilute basic earnings include common share stock options, warrants, FTP warrants, compensation warrants and shares related to Jamaica Facility Shares (Note 10).
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
Loss attributable to common shares ($)
​ ​ ​
​
(8,236,678)
 ​ ​ ​ ​
​
(9,133,234)
 ​ ​
Dilutive effect on income
​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​
Weighted average number of shares outstanding – basic and diluted (#)
​ ​ ​
​
50,000,000
 ​ ​ ​ ​
​
49,303,441
 ​ ​
Loss per common share, basic and diluted ($)
​ ​ ​ ​ (0.16) ​ ​ ​ ​ ​ (0.19) ​ ​
12
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
12.
GENERAL AND ADMINISTRATION
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Personnel costs
​ ​ ​ ​ 2,207,675 ​ ​ ​ ​ ​ 2,247,031 ​ ​
External services
​ ​ ​ ​ 3,357,341 ​ ​ ​ ​ ​ 1,393,273 ​ ​
Share-based payments (Note 10)
​ ​ ​ ​ 215,905 ​ ​ ​ ​ ​ 1,053,645 ​ ​
Travel and entertainment
​ ​ ​ ​ 163,660 ​ ​ ​ ​ ​ 375,544 ​ ​
IT and technology
​ ​ ​ ​ 424,933 ​ ​ ​ ​ ​ 453,566 ​ ​
Office and general (recovery)
​ ​ ​ ​ (33,038) ​ ​ ​ ​ ​ 80,863 ​ ​
Total general and administration
​ ​ ​ ​ 6,336,476 ​ ​ ​ ​ ​ 5,603,922 ​ ​
​
13.
OCCUPANCY COSTS
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Operating rent expense
​ ​ ​ ​ 128,726 ​ ​ ​ ​ ​ 98,350 ​ ​
Taxes, maintenance, insurance
​ ​ ​ ​ 11,121 ​ ​ ​ ​ ​ 4,754 ​ ​
Minor furniture and fixtures
​ ​ ​ ​ 19,227 ​ ​ ​ ​ ​ 240,860 ​ ​
Utilities and services
​ ​ ​ ​ 71,354 ​ ​ ​ ​ ​ 32,651 ​ ​
Impairment of fixed assets
​ ​ ​ ​ 997,524 ​ ​ ​ ​ ​ — ​ ​
Total occupancy costs
​ ​ ​ ​ 1,227,952 ​ ​ ​ ​ ​ 376,615 ​ ​
​
14.
SALES AND MARKETING
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Brand and public relations
​ ​ ​ ​ 231,717 ​ ​ ​ ​ ​ 367,564 ​ ​
Conference fees
​ ​ ​ ​ 13,820 ​ ​ ​ ​ ​ 14,604 ​ ​
Personnel costs
​ ​ ​ ​ 94,812 ​ ​ ​ ​ ​ 141,604 ​ ​
Share-based payments (Note 10)
​ ​ ​ ​ 2,367 ​ ​ ​ ​ ​ 52,726 ​ ​
External marketing services
​ ​ ​ ​ 245,808 ​ ​ ​ ​ ​ 450,094 ​ ​
Other marketing
​ ​ ​ ​ 81,374 ​ ​ ​ ​ ​ 37,535 ​ ​
Total sales and marketing
​ ​ ​ ​ 669,898 ​ ​ ​ ​ ​ 1,064,127 ​ ​
​
15.
RESEARCH AND DEVELOPMENT
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Personnel costs
​ ​ ​ ​ 37,779 ​ ​ ​ ​ ​ — ​ ​
Share-based payments (Note 10)
​ ​ ​ ​ 1,523 ​ ​ ​ ​ ​ 77,232 ​ ​
Supplies and services
​ ​ ​ ​ 5,003 ​ ​ ​ ​ ​ (10,294) ​ ​
Total research and development
​ ​ ​ ​ 44,305 ​ ​ ​ ​ ​ 66,938 ​ ​
13
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
15.
RESEARCH AND DEVELOPMENT (Continued)
​
The expenditures above relate to research and development activities that do not qualify for capitalization based on the Company’s accounting policies for capitalization of development costs. They have therefore been recognized as an expense during the three months ended June 30, 2022 and June 30, 2021.
16.
DEPRECIATION AND AMORTIZATION
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Property, plant and equipment (Note 6)
​ ​ ​ ​ 266,931 ​ ​ ​ ​ ​ 152,983 ​ ​
Right-of-use asset (Note 7)
​ ​ ​ ​ 891,062 ​ ​ ​ ​ ​ 428,165 ​ ​
Intangible assets (Note 8)
​ ​ ​ ​ 46,677 ​ ​ ​ ​ ​ 34,335 ​ ​
Total depreciation and amortization
​ ​ ​ ​ 1,204,670 ​ ​ ​ ​ ​ 615,483 ​ ​
​
17.
PATIENT SERVICES EXPENSE
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Personnel costs
​ ​ ​ ​ 2,393,423 ​ ​ ​ ​ ​ 1,681,589 ​ ​
Share-based payments (Note 10)
​ ​ ​ ​ 30,201 ​ ​ ​ ​ ​ 92,354 ​ ​
Supplies and services
​ ​ ​ ​ 58,999 ​ ​ ​ ​ ​ 52,565 ​ ​
Payment provider fees
​ ​ ​ ​ 31,326 ​ ​ ​ ​ ​ 19,117 ​ ​
Total patient services expense
​ ​ ​ ​ 2,513,949 ​ ​ ​ ​ ​ 1,845,625 ​ ​
​
18.
INTEREST INCOME
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Interest income on refundable lease deposit
​ ​ ​ ​ 8,621 ​ ​ ​ ​ ​ 4,402 ​ ​
Interest income on bank balances
​ ​ ​ ​ — ​ ​ ​ ​ ​ 3,223 ​ ​
Total interest income
​ ​ ​ ​ 8,621 ​ ​ ​ ​ ​ 7,625 ​ ​
​
19.
INTEREST EXPENSE
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Interest expense on leases
​ ​ ​ ​ (405,272) ​ ​ ​ ​ ​ (145,611) ​ ​
Interest expense on loan
​ ​ ​ ​ (1,131) ​ ​ ​ ​ ​ (976) ​ ​
Total interest expense
​ ​ ​ ​ (406,403) ​ ​ ​ ​ ​ (146,587) ​ ​
14
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
20.
CHANGE IN NON-CASH WORKING CAPITAL
​
​ ​ ​
Three Months Ended
June 30, 2022
​ ​
Three Months Ended
June 30, 2021
​
​ ​ ​
$
​ ​
$
​
Accounts receivable
​ ​ ​ ​ (413,255) ​ ​ ​ ​ ​ 682 ​ ​
Other current assets
​ ​ ​ ​ 53,749 ​ ​ ​ ​ ​ 89,118 ​ ​
Other non-current assets
​ ​ ​ ​ (8,174) ​ ​ ​ ​ ​ (22,806) ​ ​
Accounts payable and accrued liabilities
​ ​ ​ ​ (170,918) ​ ​ ​ ​ ​ (62,066) ​ ​
Deferred revenue
​ ​ ​ ​ 140,097 ​ ​ ​ ​ ​ 25,764 ​ ​
Net change in non-cash working capital
​ ​ ​ ​ (398,501) ​ ​ ​ ​ ​ 30,692 ​ ​
​
21.
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. Factors considered in determining the operating segments include the Company’s business activities, the management structure directly accountable to the CODM, availability of discrete financial information and strategic priorities within the organizational structure.
Geographic Information
​ ​
North America
​ ​
Jamaica
​ ​
The Netherlands
​ ​
Total
​
​ ​ ​
$
​ ​
$
​ ​
$
​ ​
$
​
Three months ended June 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Revenue
​ ​ ​ ​ 1,691,942 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 132,462 ​ ​ ​ ​ ​ 1,824,404 ​ ​
Net loss
​ ​ ​ ​ (7,518,183) ​ ​ ​ ​ ​ (109,752) ​ ​ ​ ​ ​ (589,995) ​ ​ ​ ​ ​ (8,236,678) ​ ​
Three months ended June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Revenue
​ ​ ​ ​ 867,400 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 867,400 ​ ​
Net loss
​ ​ ​ ​ (8,083,727) ​ ​ ​ ​ ​ (224,920) ​ ​ ​ ​ ​ (824,587) ​ ​ ​ ​ ​ (9,133,234) ​ ​
As at June 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Total assets
​ ​ ​ ​ 36,127,773 ​ ​ ​ ​ ​ 434,583 ​ ​ ​ ​ ​ 1,623,744 ​ ​ ​ ​ ​ 38,194,800 ​ ​
Total liabilities
​ ​ ​ ​ 32,430,937 ​ ​ ​ ​ ​ 22,322 ​ ​ ​ ​ ​ 1,239,425 ​ ​ ​ ​ ​ 33,702,842 ​ ​
As at March 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Total assets
​ ​ ​ ​ 34,955,297 ​ ​ ​ ​ ​ 453,208 ​ ​ ​ ​ ​ 1,939,696 ​ ​ ​ ​ ​ 37,348,201 ​ ​
Total liabilities
​ ​ ​ ​ 31,893,219 ​ ​ ​ ​ ​ 41,763 ​ ​ ​ ​ ​ 1,444,834 ​ ​ ​ ​ ​ 33,379,816 ​ ​
15
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
22.
FINANCIAL INSTRUMENTS
​
Classification of Financial Instruments
Financial assets and financial liabilities are measured on an ongoing basis at amortized cost. The classification of the financial instruments, as well as their carrying values, are shown in the table below:
​ ​ ​
As at
June 30, 2022
​ ​
As at
March 31, 2022
​
​ ​ ​
$
​ ​
$
​
Financial assets at amortized cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Cash
​ ​ ​
​
4,128,462
 ​ ​ ​ ​
​
1,998,665
 ​ ​
Restricted cash
​ ​ ​
​
451,096
 ​ ​ ​ ​
​
776,551
 ​ ​
Accounts receivable (excluding sales tax receivable)
​ ​ ​
​
521,690
 ​ ​ ​ ​
​
500,569
 ​ ​
Total financial assets
​ ​ ​ ​ 5,101,248 ​ ​ ​ ​ ​ 3,275,785 ​ ​
Financial liabilities at amortized cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Accounts payable and accrued liabilities
​ ​ ​
​
3,908,433
 ​ ​ ​ ​
​
4,048,880
 ​ ​
Loan payable
​ ​ ​
​
32,295
 ​ ​ ​ ​
​
31,163
 ​ ​
Total financial liabilities
​ ​ ​ ​ 3,940,728 ​ ​ ​ ​ ​ 4,080,043 ​ ​
Cash, restricted cash, accounts receivable and accounts payable and accrued liabilities are all short-term in nature and, as such, their carrying values approximate fair values.
23.
SUBSEQUENT EVENTS
​
Plan of Arrangement
On August 11, 2022, Field Trip completed its previously announced reorganization, which resulted in the separation of its Field Trip Discovery and Field Trip Health (“SpinCo”) divisions into two independent companies (the “Spinout Transaction”). The reorganization was completed by way of a Plan of Arrangement (the “Arrangement”). Pursuant to the terms of the Arrangement, each Field Trip share was exchanged for one common share of Reunion and approximately 0.86 common shares of Field Trip H&W.
Field Trip Discovery was renamed Reunion Neuroscience Inc. (“Reunion”) and will remain listed on the NASDAQ Stock Market and Toronto Stock Exchange under the ticker symbol “REUN” on or about August 17, 2022, concurrent with the listing of Field Trip H&W (see below). Reunion will continue to focus on the research and development of novel psychedelic molecules such as RE104.
Field Trip Health was renamed Field Trip Health and Wellness Ltd. (“Field Trip H&W”) and will continue its focus on developing proprietary, competitive and differentiated PAT through innovation in therapeutic protocols, with a view to achieving the best patient outcomes in the treatment of mental health and mood disorders. Upon closing of the Spinout Transaction, Field Trip transferred its Clinic Operations to Field Trip H&W. Concurrent with closing of the Arrangement, Field Trip H&W completed a series of private placement financings, (the “Concurrent Financing”) for gross proceeds of approximately $20 million. The Company also received conditional approval from the TSXV to list the FTHW Shares on or about August 17, 2022 under the symbol “FTHW”. Field Trip H&W will be operated as a separate company with separate management teams and Boards of Directors.
Credit Facility
On July 21, 2022, Field Trip H&W entered into a term sheet with a financial institution to provide a $6,500,000 credit facility (the “Facility”). Subject to negotiation of definitive documents and certain covenants, the Facility may be drawn down in two tranches, being $3,000,000 at closing of the Facility and $3,500,000 following achievement of specific milestones beginning the fiscal quarter ending September 30, 2023.
The Facility bears interest at the higher of Canadian Prime plus 2.30% or 6.00%, and the final payment under the Facility shall be 5.00% of the funded amount, due upon the earlier of maturity or termination of the Facility. The Facility shall be interest-only through September 30, 2023 and this interest-only period may be automatically extended to February 29, 2024 on achievement of the aforementioned milestones. In all cases, the Facility shall amortize in 18 equal payments of principal plus interest following the interest-only period.
16
​
 
SPINCO
Notes to the Unaudited Condensed Interim Combined Carve-out Financial Statements (Continued)
For the Three Months Ended June 30, 2022 and 2021
23.
SUBSEQUENT EVENTS (Continued)
​
Upon closing, Field Trip H&W shall grant the financial institution a warrant to purchase shares equal to 2.0% of the amount of the Facility divided by the lower of the trailing 10-day average Field Trip H&W share price prior to closing or the Field Trip H&W share price on the day immediately prior to closing.
Founder Promissory Note
On July 25, 2022, Field Trip H&W secured a $2,500,000 revolving promissory note (the “Founder Promissory Note”) from the five founders of Field Trip Health Ltd. or companies owned or controlled by them to fund working capital requirements. The Founder Promissory Note may be drawn down subject to certain conditions being met and only after six months have elapsed from the listing of Field Trip H&W’s shares on the TSXV. The Founder Promissory Note bears no interest and will be available to Field Trip H&W until the earlier of (i) Field Trip H&W entering into a third-party credit facility, or (ii) one year from the listing of FTH&W Shares on the TSXV.
Jamaica Facility Shares
On July 11, 2022, Field Trip issued 37,500 shares related to the Jamaica Facility shares. As at August 12, 2022, the Company has 300,000 Jamaica Facility shares still outstanding to be issued. On July 5, 2022, the SPA between Field Trip and Darwin Inc. was amended to provide for the issuance of common shares of Field Trip H&W, adjusted to reflect the Spinout Transaction by dividing the number of shares by 0.859833560.
17

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘6-K’ Filing    Date    Other Filings
2/29/24
9/30/23
Filed as of:8/30/22
Filed on:8/29/22
8/17/22
8/12/228-K12G3
8/11/226-K
7/25/22
7/21/22
7/11/22
7/5/22
For Period end:6/30/22
4/28/22
4/1/22
3/31/22
2/10/22
8/3/21
6/30/21
6/22/21
4/1/21
3/31/21
9/25/20
6/3/20
4/1/20
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