Sibannac : Financial

Unaudited Financial Statements & Notes

For the nine months ended May 31, 2022, and May 31, 2021

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Balance Sheet
As of May 31, 2022
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash	$	3,886
Accounts receivable		1,526
Inventory		21,144
Total current assets		26,556
OTHER ASSETS:
Equipment		7,615
Investments		500,000
Website costs		330,210
Note receivable		5,000
Total assets	$	869,381
LIABILITIES
CURRENT
Accounts payable	$	230,268
Accrued compensation to officer and director		54,780
Due to related parties		55,762
Unissued capital stock		126,352
Total current liabilities		467,162
LONG TERM
Debentures payable		324,532
Notes payable		156,500
Accrued interest		104,810
Total Liabilities		1,053,004
STOCKHOLDERS' DEFICIT
Preferred stock		5,100
Common stock		69,324
Additional paid-in capital		3,885,897
Warrants		70,183
Accumulated (deficit)		(4,214,127)
Total stockholders' deficit		(183,623)
Total liabilities and stockholders' deficit	$	869,381

See accompanying notes to these unaudited consolidated financial statements.

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Income Statements (Unaudited)

		For the three months ended		For the nine months ended
		May 31,			May 31,
REVENUES		2022			2021		2022			2021
Total sales revenue	$	2,723	$		22,390	$	6,415	$		151,864
Total cost of sales		0			13,754		2,500			88,429
GROSS PROFIT		2,723			8,636		3,915			63,435
OPERATING EXPENSES
General and administrative		16,886			16,146		44,100			34,765
Sales and marketing		23,640			10,037		39,640			16,132
Professional fees		32,536			95,572		72,384			188,072
Officer and director compensation		46,250			87,104		140,250			149,150
Rent & utilities		23,547			24,153		70,767			69,336
Research and development		240			-		4,740			0
Website development expenses		40,609			133		41,663			7,388
Total operating expenses		183,708			233,145		413,544			464,843
TOAL OPERATING INCOME (LOSS)		(180,985)			(224,509)		(409,629)			(401,408)
OTHER INCOME AND (EXPENSE)
Interest income		0			1,002		0			2,995
Gain from discontinued operations		0			0		2,960			0
Interest expense		(12,714)			(30,842)		(41,128)			(57,758)
Net (loss)	$		$			$		$
(193,699)		(254,349)	(447,797)		(456,171)
(Loss) per share
Basic	$	Nil	$		0.01	$	(0.01)	$		(0.03)
Diluted	$	Nil	$		0.01	$	(0.01)	$		(0.03)

* Unissued common shares are anti-dilutive.

See accompanying notes to these unaudited consolidated financial statements.

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Statement of Changes in Stockholders' Equity

(Unaudited)

Balance at August 31, 2020

Unexercised put option Preferred B issuance for cash Common stock issued for services Common stock issued for debt

Net (loss) for the year ended August 31, 2021 Balance at August 31, 2021

Preferred B issuance for debt Common stock issued for debt Units issued under Regulation A Preferred B converted for common

Net (loss) for 9 months ended May 31, 2022 Balance at May 31, 2022

Preferred		Common		Paid-In	Stock	Unrealized	Accumulated
		Gain
Shares	Amount	Shares	Amount	Capital	Warrants	(Loss)	(Deficit)	Total
5,019,000	$5,019	16,127,194	$16,127	$1,855,920		$71,400	($3,200,395)	($1,251,929)
1,500	2			7,498		(71,400)		(71,400)
7,766,518	7,766				7,500
		439,234				447,000
		2,325,000	2,325	216,763			(565,935)	219,088
							(565,935)
5,020,500	5,021	26,218,712	26,218	2,519,415	0	0	(3,766,330)	(1,215,676)
80,000	80	37,723,001	37,724	399,920				400,000
		882,376	70,183			920,100
(1,000)	(1)	5,325,000	5,325	84,242			159,750
57,693	57	(56)			(447,797)	0
							(447,797)
5,099,500	$5,100	69,324,406	$69,324	$3,885,897	$70,183	$0	($4,214,127)	($183,623)

See accompanying notes to these unaudited consolidated financial statements.

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Statement of Cash Flows

(Unaudited)

		For the three months ended		For the nine months ended
		May 31,			May 31,
OPERATING ACTIVITIES		2022			2021		2022			2021
Net (loss) for the period	$	(193,699)	$		(254,349)	$	(447,797)	$		(456,171)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Common shares issued for services		-			447,000		-			447,000
Issuance of common shares for debt		-			-		445,101			-
Issuance of Preferred B for debt		-			-		-			-
Changes in assets and liabilities:
(Incr)/decr - accounts receivable		-			-		17,861			-
(Incr)/decr - Inventory		-			7,593		2,866			4,446
(Incr)/decr - interest receivable & discount		-			(991)		-			16,587
(Incr)/decr - Note receivable		-			(10,000)		(5,000)			(10,000)
(Incr)/decr - Website costs		23,390			-		-			-
Incr/(decr) in accounts payable		392			486,502		19,030			537,012
Incr/(decr) in accrued compensation		43,750			44,928		89,750			126,658
Incr/(decr) in notes payable		-			10,500		100,000			3,615
Incr/(decr) in accrued interest		12,716			15,843		34,212			42,759
Incr/(decr) in due to related party		(9,500)			58,999		(17,153)			70,884
Incr/(decr) in due to debenture payable		5,500			-		(82,880)			-
Incr/(decr) - unissued common stock		-			-		(352,764)			23,150
Net cash (used in) provided by operating activities		(117,451)			806,025		(196,774)			805,940
INVESTING ACTIVITIES
Purchase of equipment		-			-		-			7,615
Cash used to build website		-			800,000		-			807,300
Net cash (used in) provided by investing activities		-			800,000		-			814,915
FINANCING ACTIVITIES
Cash from investment reduction		-			-		-			15,000
Cash from issuance of Preferred B shares		-			7,500		-			7,500
Cash from Regulation A offering		69,750			-		159,750			-
Net cash (used in) provided by financing activities		69,750			7,500		159,750			22,500
INCREASE (DECREASE) IN CASH		(47,701)			13,525		(37,024)			13,525
CASH, BEGINNING OF PERIOD		51,587			7,215		40,910			7,215
CASH, END OF PERIOD	$	3,886	$		20,740	$	3,886	$		20,740
NON-CASH TRANSACTIONS IN COMMON SHARES
31,666,667 common shares for accrued compensation	$	475,000	$		-	$	475,000	$		-
1,000 preferred B converted to 57,693 common shares	$	-	$		-	$	-	$		-
80,000 preferred B issued for services	$	-	$		-	$	400,000	$		-

See accompanying notes to these unaudited consolidated financial statements.

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