UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the month of May 2024

 

Commission File Number: 001-41408

 

BYND CANNASOFT ENTERPRISES INC.

(Translation of registrant’s name into English)

 

7000 Akko Road

Kiryat Motzkin

Israel

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F ☒ Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ☐ No ☒

 

If “Yes” marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________

 

 

 

 

 

 

On May 15, 2024, BYND Cannasoft Enterprises Inc. (the “Company”) issued its unaudited consolidated financial statements and the related management discussion and analysis for the quarter ended March 31, 2024, in accordance with the rules and regulations of the British Columbia Securities Commission.

 

The financial statements and related management discussion and analysis are attached hereto as Exhibit 99.1 and 99.2, respectively, and are incorporated herein by reference.

 

EXHIBIT INDEX

 

Exhibit No.   Description of Exhibit
     
99.1   Consolidated Financial Statements for the three months ended March 31, 2024
99.2   Management Discussion and Analysis
99.3   Certification of Annual Filings — CEO
99.4   Certification of Annual Filings — CFO

 

2 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

May 15, 2024

 

  BYND CANNASOFT ENTERPRISES INC.
     
  By: /s/ Yftah Ben Yaackov
  Name: Yftah Ben Yaackov
  Title: Chief Executive Officer

 

3 

 

false 2024-03-31 Q1 --12-31 0001888151 0001888151 2024-01-01 2024-03-31 0001888151 2024-03-31 0001888151 2023-12-31 0001888151 2023-01-01 2023-03-31 0001888151 ifrs-full:IssuedCapitalMember 2022-12-31 0001888151 BCAN:SharesToBeIssuedMember 2022-12-31 0001888151 BCAN:SharePurchaseWarrantsReserveMember 2022-12-31 0001888151 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2022-12-31 0001888151 ifrs-full:ReserveOfSharebasedPaymentsMember 2022-12-31 0001888151 ifrs-full:ReserveOfInsuranceFinanceIncomeExpensesFromInsuranceContractsIssuedExcludedFromProfitOrLossThatWillBeReclassifiedToProfitOrLossMember 2022-12-31 0001888151 ifrs-full:RetainedEarningsMember 2022-12-31 0001888151 2022-12-31 0001888151 ifrs-full:IssuedCapitalMember 2023-12-31 0001888151 BCAN:SharesToBeIssuedMember 2023-12-31 0001888151 BCAN:SharePurchaseWarrantsReserveMember 2023-12-31 0001888151 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2023-12-31 0001888151 ifrs-full:ReserveOfSharebasedPaymentsMember 2023-12-31 0001888151 ifrs-full:ReserveOfInsuranceFinanceIncomeExpensesFromInsuranceContractsIssuedExcludedFromProfitOrLossThatWillBeReclassifiedToProfitOrLossMember 2023-12-31 0001888151 ifrs-full:RetainedEarningsMember 2023-12-31 0001888151 ifrs-full:IssuedCapitalMember 2023-01-01 2023-03-31 0001888151 BCAN:SharesToBeIssuedMember 2023-01-01 2023-03-31 0001888151 BCAN:SharePurchaseWarrantsReserveMember 2023-01-01 2023-03-31 0001888151 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2023-01-01 2023-03-31 0001888151 ifrs-full:ReserveOfSharebasedPaymentsMember 2023-01-01 2023-03-31 0001888151 ifrs-full:ReserveOfInsuranceFinanceIncomeExpensesFromInsuranceContractsIssuedExcludedFromProfitOrLossThatWillBeReclassifiedToProfitOrLossMember 2023-01-01 2023-03-31 0001888151 ifrs-full:RetainedEarningsMember 2023-01-01 2023-03-31 0001888151 ifrs-full:IssuedCapitalMember 2024-01-01 2024-03-31 0001888151 BCAN:SharesToBeIssuedMember 2024-01-01 2024-03-31 0001888151 BCAN:SharePurchaseWarrantsReserveMember 2024-01-01 2024-03-31 0001888151 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2024-01-01 2024-03-31 0001888151 ifrs-full:ReserveOfSharebasedPaymentsMember 2024-01-01 2024-03-31 0001888151 ifrs-full:ReserveOfInsuranceFinanceIncomeExpensesFromInsuranceContractsIssuedExcludedFromProfitOrLossThatWillBeReclassifiedToProfitOrLossMember 2024-01-01 2024-03-31 0001888151 ifrs-full:RetainedEarningsMember 2024-01-01 2024-03-31 0001888151 ifrs-full:IssuedCapitalMember 2023-03-31 0001888151 BCAN:SharesToBeIssuedMember 2023-03-31 0001888151 BCAN:SharePurchaseWarrantsReserveMember 2023-03-31 0001888151 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2023-03-31 0001888151 ifrs-full:ReserveOfSharebasedPaymentsMember 2023-03-31 0001888151 ifrs-full:ReserveOfInsuranceFinanceIncomeExpensesFromInsuranceContractsIssuedExcludedFromProfitOrLossThatWillBeReclassifiedToProfitOrLossMember 2023-03-31 0001888151 ifrs-full:RetainedEarningsMember 2023-03-31 0001888151 2023-03-31 0001888151 ifrs-full:IssuedCapitalMember 2024-03-31 0001888151 BCAN:SharesToBeIssuedMember 2024-03-31 0001888151 BCAN:SharePurchaseWarrantsReserveMember 2024-03-31 0001888151 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2024-03-31 0001888151 ifrs-full:ReserveOfSharebasedPaymentsMember 2024-03-31 0001888151 ifrs-full:ReserveOfInsuranceFinanceIncomeExpensesFromInsuranceContractsIssuedExcludedFromProfitOrLossThatWillBeReclassifiedToProfitOrLossMember 2024-03-31 0001888151 ifrs-full:RetainedEarningsMember 2024-03-31 0001888151 BCAN:BeyondSolutionLtdMember BCAN:ShareExchangeAgreementMember 2021-03-29 0001888151 BCAN:BeyondSolutionLtdMember BCAN:FormerShareholderMember BCAN:ShareExchangeAgreementMember 2021-03-29 0001888151 BCAN:ZigiCarmelInitiativesAndInvestmentsLtdMember BCAN:FormerShareholderMember BCAN:ShareExchangeAgreementMember 2022-09-22 0001888151 BCAN:ZigiCarmelInitiativesAndInvestmentsLtdMember BCAN:FormerShareholderMember 2022-09-22 0001888151 BCAN:ZigiCarmelInitiativesAndInvestmentsLtdMember BCAN:FormerShareholderMember BCAN:PostReverseSplitMember 2022-09-22 0001888151 2024-03-15 2024-03-15 0001888151 BCAN:BeyondSolutionLtdMember ifrs-full:RelatedPartiesMember BCAN:ShareExchangeAgreementMember 2024-03-31 0001888151 2022-12-29 2022-12-31 0001888151 BCAN:ZigiCarmelInitiativesAndInvestmentsLtdMember BCAN:FormerShareholderMember BCAN:ShareExchangeAgreementMember BCAN:PostReverseSplitMember 2022-09-22 0001888151 BCAN:ZigiCarmelInitiativesAndInvestmentsLtdMember 2022-09-22 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:ComputerSoftwareMember 2022-12-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:LicencesMember 2022-12-31 0001888151 ifrs-full:GrossCarryingAmountMember BCAN:PatentMember 2022-12-31 0001888151 ifrs-full:GrossCarryingAmountMember 2022-12-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:ComputerSoftwareMember 2023-01-01 2023-12-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:LicencesMember 2023-01-01 2023-12-31 0001888151 ifrs-full:GrossCarryingAmountMember BCAN:PatentMember 2023-01-01 2023-12-31 0001888151 ifrs-full:GrossCarryingAmountMember 2023-01-01 2023-12-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:ComputerSoftwareMember 2023-12-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:LicencesMember 2023-12-31 0001888151 ifrs-full:GrossCarryingAmountMember BCAN:PatentMember 2023-12-31 0001888151 ifrs-full:GrossCarryingAmountMember 2023-12-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:ComputerSoftwareMember 2024-01-01 2024-03-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:LicencesMember 2024-01-01 2024-03-31 0001888151 ifrs-full:GrossCarryingAmountMember BCAN:PatentMember 2024-01-01 2024-03-31 0001888151 ifrs-full:GrossCarryingAmountMember 2024-01-01 2024-03-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:ComputerSoftwareMember 2024-03-31 0001888151 ifrs-full:GrossCarryingAmountMember ifrs-full:LicencesMember 2024-03-31 0001888151 ifrs-full:GrossCarryingAmountMember BCAN:PatentMember 2024-03-31 0001888151 ifrs-full:GrossCarryingAmountMember 2024-03-31 0001888151 ifrs-full:ComputerEquipmentMember 2022-12-31 0001888151 ifrs-full:VehiclesMember 2022-12-31 0001888151 BCAN:FurnitureAndEquipmentMember 2022-12-31 0001888151 BCAN:CapitalWorkInProgressMember 2022-12-31 0001888151 ifrs-full:ComputerEquipmentMember 2023-01-01 2023-12-31 0001888151 ifrs-full:VehiclesMember 2023-01-01 2023-12-31 0001888151 BCAN:FurnitureAndEquipmentMember 2023-01-01 2023-12-31 0001888151 BCAN:CapitalWorkInProgressMember 2023-01-01 2023-12-31 0001888151 2023-01-01 2023-12-31 0001888151 ifrs-full:ComputerEquipmentMember 2023-12-31 0001888151 ifrs-full:VehiclesMember 2023-12-31 0001888151 BCAN:FurnitureAndEquipmentMember 2023-12-31 0001888151 BCAN:CapitalWorkInProgressMember 2023-12-31 0001888151 ifrs-full:ComputerEquipmentMember 2024-01-01 2024-03-31 0001888151 ifrs-full:VehiclesMember 2024-01-01 2024-03-31 0001888151 BCAN:FurnitureAndEquipmentMember 2024-01-01 2024-03-31 0001888151 BCAN:CapitalWorkInProgressMember 2024-01-01 2024-03-31 0001888151 ifrs-full:ComputerEquipmentMember 2024-03-31 0001888151 ifrs-full:VehiclesMember 2024-03-31 0001888151 BCAN:FurnitureAndEquipmentMember 2024-03-31 0001888151 BCAN:CapitalWorkInProgressMember 2024-03-31 0001888151 ifrs-full:ComputerEquipmentMember 2023-01-01 2023-03-31 0001888151 ifrs-full:CostOfSalesMember 2024-01-01 2024-03-31 0001888151 ifrs-full:CostOfSalesMember 2023-01-01 2023-03-31 0001888151 BCAN:ResearchAndDevelopmentMember 2024-01-01 2024-03-31 0001888151 BCAN:ResearchAndDevelopmentMember 2023-01-01 2023-03-31 0001888151 BCAN:ProfessionalFeesMember 2024-01-01 2024-03-31 0001888151 BCAN:ProfessionalFeesMember 2023-01-01 2023-03-31 0001888151 ifrs-full:SellingGeneralAndAdministrativeExpenseMember 2024-01-01 2024-03-31 0001888151 ifrs-full:SellingGeneralAndAdministrativeExpenseMember 2023-01-01 2023-03-31 0001888151 2020-12-31 0001888151 2020-01-01 2020-12-31 0001888151 2023-12-21 2023-12-21 0001888151 BCAN:PostReverseSplitMember 2023-12-21 2023-12-21 0001888151 BCAN:DecemberTwentyTwentyThreeWarrantsMember 2024-03-27 2024-03-27 0001888151 BCAN:SeriesAWarrantsMember 2024-03-13 2024-03-14 0001888151 BCAN:SeriesAWarrantsMember BCAN:PostReverseSplitMember 2024-03-13 2024-03-14 0001888151 BCAN:SeriesBWarrantsMember 2024-03-13 2024-03-14 0001888151 BCAN:SeriesBWarrantsMember BCAN:PostReverseSplitMember 2024-03-13 2024-03-14 0001888151 2024-03-27 2024-03-27 0001888151 BCAN:AprilTwentyTwentyFourAWarrantsAndBWarrantsMember 2024-03-27 2024-03-27 0001888151 BCAN:AprilTwentyTwentyFourBWarrantsMember 2024-03-27 2024-03-27 0001888151 BCAN:DerivativeWarrantLiabilityMember 2024-01-01 2024-03-31 0001888151 BCAN:DerivativeWarrantLiabilityMember ifrs-full:BottomOfRangeMember 2024-01-01 2024-03-31 0001888151 BCAN:DerivativeWarrantLiabilityMember ifrs-full:TopOfRangeMember 2024-01-01 2024-03-31 0001888151 BCAN:TwoDirectorsMember 2024-01-04 0001888151 BCAN:TwoDirectorsMember BCAN:PostReverseSplitMember 2024-01-04 0001888151 BCAN:TwoDirectorsMember 2024-01-03 2024-01-04 0001888151 BCAN:FiveDirectorsMember 2024-01-10 0001888151 BCAN:FiveDirectorsMember BCAN:PostReverseSplitMember 2024-01-10 0001888151 BCAN:FiveDirectorsMember 2024-01-10 2024-01-10 0001888151 BCAN:ConsultantMember 2024-01-15 2024-01-16 0001888151 BCAN:ConsultantMember BCAN:PostReverseSplitMember 2024-01-15 2024-01-16 0001888151 BCAN:ConsultantMember 2024-02-04 2024-02-05 0001888151 BCAN:ConsultantMember BCAN:PostReverseSplitMember 2024-02-04 2024-02-05 0001888151 BCAN:ConsultantMember 2024-03-04 2024-03-05 0001888151 BCAN:ConsultantMember BCAN:PostReverseSplitMember 2024-03-04 2024-03-05 0001888151 2024-03-13 2024-03-14 0001888151 2024-03-14 0001888151 BCAN:PostReverseSplitMember 2024-03-14 0001888151 ifrs-full:OrdinarySharesMember 2024-03-31 0001888151 BCAN:PreFundedWarrantsMember 2024-03-31 0001888151 BCAN:SeriesAWarrantsMember 2024-03-31 0001888151 BCAN:TwoDirectorsMember 2023-01-03 0001888151 BCAN:TwoDirectorsMember BCAN:PostReverseSplitMember 2023-01-03 0001888151 BCAN:FourDirectorsMember 2024-01-10 2024-01-10 0001888151 BCAN:FourDirectorsMember BCAN:PostReverseSplitMember 2024-01-10 2024-01-10 0001888151 BCAN:PostReverseSplitMember 2024-01-16 2024-01-16 0001888151 BCAN:PostReverseSplitMember BCAN:OnTheDateMember 2024-01-16 2024-01-16 0001888151 BCAN:PostReverseSplitMember BCAN:EveryMonthMember 2024-01-16 2024-01-16 0001888151 ifrs-full:ShareOptionsMember 2022-12-31 0001888151 ifrs-full:ShareOptionsMember 2023-01-01 2023-12-31 0001888151 ifrs-full:ShareOptionsMember 2023-12-31 0001888151 ifrs-full:ShareOptionsMember 2024-01-01 2024-03-31 0001888151 ifrs-full:ShareOptionsMember 2024-03-31 0001888151 BCAN:StockOptionsOneMember 2024-03-31 0001888151 BCAN:StockOptionsOneMember 2024-01-01 2024-03-31 0001888151 BCAN:StockOptionsTwoMember 2024-03-31 0001888151 BCAN:StockOptionsTwoMember 2024-01-01 2024-03-31 0001888151 BCAN:SoftwareDevelopmentRevenueMember 2024-01-01 2024-03-31 0001888151 BCAN:SoftwareDevelopmentRevenueMember 2023-01-01 2023-03-31 0001888151 BCAN:SoftwareLicensingRevenueMember 2024-01-01 2024-03-31 0001888151 BCAN:SoftwareLicensingRevenueMember 2023-01-01 2023-03-31 0001888151 BCAN:SoftwareSupportRevenueMember 2024-01-01 2024-03-31 0001888151 BCAN:SoftwareSupportRevenueMember 2023-01-01 2023-03-31 0001888151 BCAN:CloudHostingRevenueMember 2024-01-01 2024-03-31 0001888151 BCAN:CloudHostingRevenueMember 2023-01-01 2023-03-31 0001888151 BCAN:RevenueTransferredOverTimeMember 2024-01-01 2024-03-31 0001888151 BCAN:RevenueTransferredOverTimeMember 2023-01-01 2023-03-31 0001888151 BCAN:RevenueTransferredAtPointInTimeMember 2024-01-01 2024-03-31 0001888151 BCAN:RevenueTransferredAtPointInTimeMember 2023-01-01 2023-03-31 0001888151 BCAN:CustomerOneMember 2024-01-01 2024-03-31 0001888151 BCAN:CustomerOneMember 2023-01-01 2023-03-31 0001888151 BCAN:TwoDirectorsMember BCAN:EventsOccurringAfterReportingDateMember 2024-04-05 0001888151 BCAN:TwoDirectorsMember BCAN:EventsOccurringAfterReportingDateMember 2024-04-05 2024-04-05 0001888151 BCAN:DirectorAndConsultantMember BCAN:EventsOccurringAfterReportingDateMember 2024-04-08 0001888151 BCAN:ConsultantMember BCAN:EventsOccurringAfterReportingDateMember 2024-04-09 0001888151 BCAN:EventsOccurringAfterReportingDateMember BCAN:SeriesAWarrantsMember 2024-05-15 0001888151 BCAN:EventsOccurringAfterReportingDateMember BCAN:SeriesAWarrantsMember 2024-04-01 2024-05-15 0001888151 BCAN:EventsOccurringAfterReportingDateMember BCAN:SeriesBWarrantsMember 2024-04-01 2024-05-15 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure BCAN:Integer iso4217:CAD iso4217:ILS BCAN:ILSPShares iso4217:CAD xbrli:shares

 

Exhibit 99.1

 

BYND CANNASOFT ENTERPRISES INC.

 

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

FOR THREE MONTHS ENDED MARCH 31, 2024

 

(EXPRESSED IN CANADIAN DOLLARS)

 

(UNAUDITED)

 

- 1 -
 

 

NOTICE TO READER

 

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the condensed consolidated interim financial statements have not been reviewed by an auditor.

 

The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management.

 

The Company’s independent auditors have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of these condensed consolidated interim financial statements. Readers are cautioned that these statements may not be appropriate for their intended purposes.

 

May 15, 2024

 

- 2 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Consolidated Interim Statements of the Financial Position

(Expressed in Canadian dollars)

(Unaudited)

 

 

As at  Notes 

March 31, 2024

   December 31, 2023 
            
Assets             
Cash     $9,172,068   $3,113,934 
Accounts receivable  5   203,886    189,434 
Prepaid expenses      90,654    25,372 
Total Current Assets      9,466,608    3,328,740 
              
Intangible assets  6   33,463,103    33,463,103 
Property and equipment  7   7,033    9,525 
Total Assets     $42,936,744   $36,801,368 
              
Liabilities and Shareholders’ Equity             
Liabilities             

Trade payables and accrued liabilities

  8  $362,670   $258,515 
Related Parties  9   364,843    450,048 
Deferred revenue  14   99,661    131,794 
Long term loan – current portion  10   47,509    46,680 
Total Current Liabilities      874,683    887,037 
              
Long term loan  10   26,834    38,427 
Derivative warrants liabilities  11   37,386,626    958,146 
Liabilities for employee benefits  12   94,964    91,533 
Total Liabilities     $38,383,107   $1,975,143 
              
Shareholders’ equity             
Share capital  13  $59,420,609   $59,367,042 
Shares to be issued      53,567    53,567 
Share-based payment reserve      379,218    711,267 
Translation differences reserve      (26,076)   (7,246)
Capital reserve for re-measurement of defined benefit plan  12   13,886    13,764 
Accumulated Deficit      (55,287,567)   (25,312,169)
Total Shareholders’ equity     $4,553,637   $34,826,225 
Total Liabilities and Shareholders’ Equity     $42,936,744   $36,801,368 

 

Nature of operations and going concern (Note 1)

Subsequent events (Note 16)

 

These condensed consolidated interim financial statements were approved for issue by the Board of Directors on May 15, 2024 and signed on its behalf by:

 

“Yftah Ben Yaackov”   “Gabi Kabazo”
Director   Director

 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

 

- 3 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Consolidated Interim Statements of Loss and Comprehensive Loss

(Expressed in Canadian dollars)

(Unaudited)

 

 

For the three months ended  Notes 

March 31, 2024

  

March 31, 2023

 
            
Revenue  14  $308,968   $420,635 
Cost of revenue  15   (243,018)   (103,692)
Gross profit      65,950    316,943 
              
Consulting and marketing      22,884    - 
Research and development      441,401    - 
Depreciation and amortization  7   2,227    3,032 
Share-based compensation       363,437    2,566 
General and administrative expenses      

254,471

    

282,839

 
Professional fees      632,078    676,867 
Total operating expense      1,716,498    965,304 
              
Loss before other income (expense)     $(1,650,548)  $(648,361)
Other income (expense)             
Change in fair value of derivative warrants liabilities  11   (28,977,934)   - 
Foreign exchange gain (loss)      5,095    (53,778)
Finance income (expenses), net      13,743    (5,381)
Other operating income (expense)      (28,959,096)   (59,159)
              
Loss before tax     $(30,609,644)  $(707,520)
Tax expense      (7,673)   (32,913)
Loss for the period     $(30,617,317)  $(740,433)
              
Other comprehensive income (loss)             
Items that may be reclassified to profit or loss             
Exchange differences on translation of foreign operations     $(18,830)  $(15,451)
Remeasurement of a defined benefit plan, net      122    946 
Other comprehensive income (loss) for the period     $(18,708)  $(14,505)
              
Total comprehensive loss     $(30,636,025)  $(754,938)
              
loss per share – basic and diluted*     $(67.59)  $(3.71)
              
Weighted average shares outstanding – basic and diluted      452,981    199,434 

 

*Adjusted to reflect one (1) for one hundred ninety (190) reverse stock split in March 2024 (see Note 1)

 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

 

- 4 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Consolidated Interim Statements of Changes in Shareholders’ Equity

(Expressed in Canadian dollars)

(Unaudited)

 

 

   Number of shares*   Share capital   Shares to be issued   Share purchase warrants reserve   Translation differences reserve   Share-based payment reserve  

Capital reserve for

re-measurement of defined benefit plan

   Accumulated Deficit   Total 
       $   $   $   $   $   $   $   $ 
                                     
Balance at January 1, 2023   199,400    54,806,522    41,875    639,879    15,746    570,446    13,279    (6,817,048)   49,270,699 
Loss for the period   -    -    -    -    -    -    -    (740,433)   (740,433)
Shares issued for services   35    41,875    (41,875)   -    -    -    -    -    - 
Share-based payments   -    -    -    -    -    2,566    -    -    2,566 
Shares to be issued for services   -    -    41,875    -    -    -    -    -    41,875 
Other comprehensive loss for the period   -    -    -    -    (15,451)   -    946    -    (14,505)
Balance at March 31, 2023   199,435    54,848,397    41,875    639,879    295    573,012    14,225    (7,557,481)   48,560,202 
                                              
Balance at January 1, 2024   223,964    59,367,042    53,567    -    (7,246)   711,267    13,764    (25,312,169)   34,826,225 
Cancellation of stock options   -    -    -    -    -    (641,919)   -    641,919    - 
Shares, pre-funded warrants and warrants issued for cash, net   3,021,011    7,450,546    -    -    -    -    -    -    7,450,546 
Allocation to derivative warrants liabilities   -    (7,450,546)   -    -    -    -    -    -    (7,450,546)
Loss for the period   -    -    -    -    -    -    -    (30,617,317)   (30,617,317) 
Shares issued for services   94    53,567    (53,567)   -    -    -    -    -    - 
Share-based payments   -    -    -    -    -    309,870    -    -    309,870 
Shares to be issued for services   -    -    53,567    -    -    -    -    -    53,567 
Other comprehensive loss for the period   -    -    -    -    (18,830)   -    122    -    (18,708)
Balance at March 31, 2024   3,245,069    59,420,609    53,567    -    (26,076)   379,218    13,886    (55,287,567)   4,553,637 

 

*Adjusted to reflect one (1) for one hundred ninety (190) reverse stock split in March 2024 (see Note 1)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

- 5 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Consolidated Interim Statements of Cash Flows

For the three months ended March 31, 2024 and 2023

(Expressed in Canadian dollars)

(Unaudited)

 

 

As at  March 31, 2024   March 31, 2023 
         
Operating activities:          
Loss for the period  $(30,617,317)  $(740,433)
Items not involving cash:          
Finance expense   613    1,006 
Share-based compensation   309,870    2,566 
Depreciation   2,551    3,395 
Change in benefits to employees   3,553    (310)
Change in fair value of derivative warrants liabilities   28,977,934    - 
Shares issued for services   53,567    41,875 
Unrealized foreign exchange loss (gain)   (117,661)   76,562 
Changes in non-cash working capital items:          
Accounts receivables   (14,452)   90,419 
Trade payables and accrued liabilities   104,155    (58,691)
Deferred revenue   (32,133)   (200,907)
Prepaid expenses   (65,282)   174,961 
Related parties   (85,205)   - 
Net cash used in operating activities   (1,479,807)   (609,557)
           
Investing activities:          
Purchase of property and equipment   -    (860)
Investment in intangible assets   -    (107,434)
Net cash used in investing activities   -    (108,294)
           
Financing activities:          
Proceeds from public offering, net   7,450,546    - 
Proceeds (repayment of) from long term loan   (11,621)   (11,709)
Net cash provided by (used in) financing activities   7,438,925    (11,709)
           
Net Increase (Decrease) in cash  $5,959,118   $(729,560)
Effect of foreign exchange rate changes on cash   99,016    (34,071)
Cash at beginning of period   3,113,934    2,392,871 
Cash at end of period  $9,172,068   $1,629,240 
           
Supplemental disclosure of cash flow information          
           
Cash paid during the year for interest  $1,288   $968 

 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

 

- 6 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 1 – NATURE OF OPERATIONS AND GOING CONCERN

 

BYND Cannasoft Enterprises Inc. (the “Company” or “BYND Cannasoft”) is a Canadian company which was amalgamated under the Business Corporations Act (British Columbia) on March 29, 2021. The Company’s registered address is 2264 East 11th Avenue, Vancouver, Canada.

 

The Company currently operates only in Israel and through its subsidiaries (i) develops, markets and sells a proprietary client relationship management software known as “Benefit CRM” and its new Cannabis CRM platform, and (ii) is developing the EZ-G device, a unique, patent pending device that, combined with proprietary software (provisional application), regulates the flow of low-concentration CBD oils into the soft tissues of the female sexual organs, and (iii) manages the construction, licensing and operation of a cannabis farm and indoor cannabis growing facility.

 

On March 29, 2021, the Company completed the business combination transactions with BYND – Beyond Solutions Ltd. (“BYND”). As a result of the business combination transactions, BYND became a wholly owned subsidiary of the Company. This transaction is accounted for as a reverse asset acquisition of the Company by BYND (“RTO”).

 

On March 29, 2021, BYND completed the share exchange agreement with B.Y.B.Y. As a result of the share exchange agreement, BYND holds 74% ownership interest in B.Y.B.Y. One of the former shareholders holds the remaining 26% ownership interest in B.Y.B.Y. in trust for BYND, for the purpose to comply with Israeli Cannabis Laws regarding the ownership of medical cannabis license rights This transaction was accounted for as asset acquisition according to IFRS 2 Share-based Payment.

 

On September 22, 2022, the Company and the former shareholder of Zigi Carmel Initiatives and Investments Ltd. (“ZC”) entered into a share exchange agreement, whereby the Company would acquire 100% ownership interest in ZC from the former shareholder in exchange for 7,920,000 common shares (41,684 common shares post reverse split) of the Company. The share exchange agreement was executed and fully completed on September 22, 2022.

 

Reverse stock split

 

On March 15, 2024, the Company announced a one (1) for one hundred ninety (190) reverse stock split of its outstanding common shares that became effective on March 22, 2024.

 

All shares, stock options, share purchase warrants, RSU’s and per share information in these consolidated financial statements have been restated to reflect the reverse stock split on a retroactive basis.

 

War in Israel

 

On October 7, 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Following the attack, Israel’s government declared war against Hamas.

 

Other terrorist organizations such as the Hezbollah in Lebanon on Israel’s northern border have launched rocket attacks on Israel in support of Hamas. The military campaign against Hamas and other terrorist organizations is ongoing and could escalate in the future into a larger regional conflict. There is no certainty as to the duration, severity, results or implications of the war on the State of Israel generally or on the Company.

 

- 7 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

NOTE 1 – NATURE OF OPERATIONS AND GOING CONCERN (continued)

 

While many of Israeli civilians were draft to reserve duty, the company’s headquarter activity located in Israel remain unharmed. With regards to company’s source of income, during the first month of the war, a few credit card companies reported on a sharp decrease in transactions in Israel. Despite that, the company has not experienced any material impact on its revenues, mainly due the fact that most of the company’s revenue is generated overseas.

 

As of the date of these financial statements, the end of the war is unknown.

 

These condensed interim consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. These financial statements do not reflect the adjustments to the carrying values of assets and liabilities, the reported revenues and expenses, and the statement of financial position classifications used, that would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ESTIMATES AND JUDGMENTS

 

a. Basis of presentation and statement of compliance

 

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Issues Committee (“IFRIC”) applicable to the preparation of interim financial statements, including International Accounting Standard (“IAS”) 34 Interim Financial Reporting.

 

The notes presented in these condensed consolidated interim financial statements include only significant events and transactions occurring since the Company’s last fiscal year end and they do not include all of the information required in the Company’s most recent annual consolidated financial statements. Except as noted below, these condensed consolidated interim financial statements follow the same accounting policies and methods of application as the Company’s annual financial statements and should be read in conjunction with the Company’s annual financial statements for the year ended December 31, 2023, which were prepared in accordance with IFRS as issued by IASB. There have been no significant changes in judgement or estimates from those disclosed in the consolidated financial statements for the year ended December 31, 2023.

 

b. Basis of Consolidation

 

The condensed consolidated interim financial statements incorporate the financial statements of the Company and of its wholly owned subsidiaries, BYND, Zigi Carmel and B.Y.B.Y.. B.Y.B.Y is owned directly through BYND and 24% of the shares of B.Y.B.Y. are held by a related party in trust for the Company for the purpose to comply with Israeli Cannabis Laws regarding the ownership of medical cannabis license rights.

 

- 8 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ESTIMATES AND JUDGMENTS (continued)

 

A subsidiary is an entity over which the Company has control, directly or indirectly, where control is defined as the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. A subsidiary is consolidated from the date upon which control is acquired by the Company and all intercompany transactions and balances have been eliminated on consolidation.

 

c. Basis of Measurement

 

The condensed consolidated interim financial statements were prepared based on the historical costs, except for financial instruments classified as fair value through profit and loss (“FVTPL”) and assets or liabilities for employee benefits, which are stated at their fair value. In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

 

d. Currency of Operation and Currency of Presentation

 

The condensed consolidated interim financial statements are presented in Canadian dollars. The functional currency of the Company is Canadian dollars, and the functional currency of its subsidiaries is the New Israeli Shekel (“NIS”). NIS represents the main economic environment in which the subsidiaries operate.

 

e. Significant estimates and assumptions

 

The preparation of these condensed consolidated interim financial statements in accordance with IFRS requires the Company to use judgment in applying its accounting policies and make estimates and assumptions about reported amounts at the date of the financial statements and in the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised.

 

Income taxes

 

Provisions for income taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these income tax provisions at the end of each reporting period. However, it is possible that at some future date an additional liability could result from audits by tax authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made. Deferred tax assets are recognized when it is determined that the company is likely to recognize their recovery from the generation of taxable income.

 

Useful lives of property and equipment

 

Estimates of the useful lives of property and equipment are based on the period over which the assets are expected to be available for use. The estimated useful lives are reviewed annually and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the relevant assets. In addition, the estimation of the useful lives of the relevant assets may be based on internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in the factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of the equipment would increase the recorded expenses and decrease the non-current assets.

 

- 9 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ESTIMATES AND JUDGMENTS (continued)

 

e. Significant estimates and assumptions (continued)

 

Convertible debentures

 

The identification of convertible note components is based on interpretations of the substance of the contractual arrangement and therefore requires judgement from management. The separation of the components affects the initial recognition of the convertible debenture at issuance and the subsequent recognition of interest on the liability component. The determination of the fair value of the liability is also based on a number of assumptions, including contractual future cash flows, discount rates and the presence of any derivative financial instruments.

 

Other Significant Judgments

 

The preparation of financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company’s financial statements include:

 

  the assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that may give rise to significant uncertainty;
  the classification of financial instruments;
  the assessment of revenue recognition using the five-step approach under IFRS 15 and the collectability of amounts receivable; and
  the determination of the functional currency of the company.

 

NOTE 3 – RESTATEMENT OF PREVIOUSLY ISSUED FINANCIALS STATEMENT

 

As a result of the findings based on the Company’s ongoing reviews, the Company, in consultation with the Board of Directors, determined that the previously issued Consolidated Balance Sheet presented in the 20-F filed on April 27, 2023, for the year ended December 31, 2022 had a clerical error in relation to software development costs that should be part of intangible assets and not included in capital work in progress, and they would make the necessary accounting corrections and restate such financial statement.

 

This error correction resulted in a decrease to property and equipment of $987,006 at December 31, 2022 and an increase to intangible assets of $987,006 at December 31, 2022.

 

- 10 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 4 – ACQUISITIONS

 

Acquisition of Zigi Carmel

 

On September 22, 2022, the Company and the former shareholder of Zigi Carmel Initiatives and Investments Ltd. (“ZC”) entered into a share exchange agreement, whereby the Company would acquire 100% ownership interest in ZC from the former shareholder in exchange for 7,920,000 common shares (41,684 common shares post reverse split) of BYND. The share exchange agreement was executed and fully completed on September 22, 2022.

 

The acquisition of ZC has been accounted for as asset acquisition according to IFRS 2 Share-based Payment as the acquired assets and liabilities do not constitute a business under IFRS 3 Business Combinations. The transaction price of the acquisition was measured according to the fair value of the common shares given in consideration for the assets and liabilities assumed from the acquisition, with equity increased by the corresponding amount equal to the total fair value of the common shares given. As a result, the acquisition was recorded with the consideration as detailed in the table below:

 

  $ 
Consideration transferred:     
Value allocated to shares issued 7,920,000 shares (41,684 common shares post reverse split) at $5.40 per share   42,768,000 
      
Fair value of assets and liabilities acquired:     
Investments   137,811 
Intangible asset – patents pending   42,768,000 
Shareholder loan   (137,811)
Fair value of assets and liabilities   42,768,000 

 

The intangible asset acquired in the acquisition of ZC is attributed to 2 patents pending for a therapeutic device (the “EZ-G” device) owned by ZC. The company has determined that the patents pending shall not be amortized until they are approved and then will be amortized over the course of their life.

 

NOTE 5 – ACCOUNTS RECEIVABLE

 

  

March 31, 2024

   December 31, 2023 
Trades receivables  $136,455   $119,094 
Income tax advances   30,748    52,003 
Interest receivable   35,810    17,494 
Due from shareholders   873    843 
Accounts receivable  $203,886   $189,434 

 

- 11 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 6 – INTANGIBLE ASSETS

 

The Company’s intangible assets relate to the proprietary Cannabis CRM software the Company is Developing, Patents pending for the EZ-G device (Note 4) as well as the primary growing license for medical cannabis in Israel. The Additions for the Software include cost of wages of the software developers for the time they spend on developing the Cannabis CRM software.

 

The additions for the Patents include the fair value attributed to the Patents upon the acquisition of ZC as well as transaction and other costs in the amount of $193,382.

 

   Software*   License  

Patent

applications

and

technological

know how

   Total 
Cost                
Balance, December 31, 2022  $2,301,580   $850,000   $42,961,382   $1,300,429 
Additions   366,325    -    -    43,871,579 
Impairments   (2,478,491)   (850,000)   (9,498,279)   - 
Translation differences   (108,176)   -    -    (32,385)
Balance, December 31, 2023   81,238    -    33,463,103    33,544,341 
Additions   -    -    -    - 
Translation differences   -    -    -    - 
Balance, March 31, 2024  $81,238   $-    33,463,103   $33,544,341 
 Accumulated depreciation                    
Balance, December 31, 2022  $-   $-    -   $81,406 
Depreciation   81,406    -    -    (168)
Translation differences   (168)   -     -     -  
Balance, December 31, 2023   81,238    -    -    81,238 
Depreciation   -    -    -    - 
Balance, March 31, 2024  $81,238   $-    -   $81,238 
Net book value                    
At December 31, 2023  $-   $-    33,463,103   $33,463,103 
At March 31, 2024  $-   $-    33,463,103   $33,463,103 

 

*Reclassified software development costs from Capital Work in Progress (Note 7) to Intangible Assets – Software (See Note 3)

 

- 12 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 7 – PROPERTY AND EQUIPMENT

 

  

Computers

& Equipment

   Vehicles  

Furniture &

Equipment

  

Capital

Work In

Progress*

   Total 
                     
Cost                         
Balance, January 1, 2023  $29,019   $181,052   $33,310   $327,918   $571,299 
Additions   6,664    -    1,039    704    8,407 
Impairments   -    -    -    (315,711)   (315,711)
Translation differences   (1,519)   (9,419)   (1,735)   (12,911)   (25,584)
Balance, December 31, 2023   34,164    171,633    32,614    -    238,411 
Additions   -    -    -    -    - 
Disposals   -    -    -    -    - 
Translation differences   302    1,701    324    -    2,327 
Balance, March 31, 2024  $34,466   $173,334   $32,938   $-   $240,738 
                          
Accumulated depreciation                         
Balance as of January 1, 2023  $27,588   $169,535   $30,168    -   $227,291 
Depreciation   2,172    9,377    1,897    -    13,446 
Translation differences   (1,439)   (8,839)   (1,573)   -    (11,851)
Balance, December 31, 2023   28,321    170,073    30,492    -    228,886 
Depreciation   829    1,571    151    -    2,551 
Translation differences   276    1,690    302    -    2,268 
Balance, March 31, 2024  $29,426   $173,334   $30,945    -   $233,705 
                          
Net book value                         
At December 31, 2023  $5,843   $1,560   $2,122   $-   $9,525 
At March 31, 2024  $5,040   $-   $1,993   $-   $7,033 

 

*Reclassified software development costs from Capital Work in Progress to Intangible Assets (Note 6) – Software (See Note 3)

 

During the three months ended March 31, 2024, depreciation of $324 (2023 - $363) related to computer and equipment is included in cost of revenue.

 

As of December 31, 2023 the Company’s Capital work in progress relates to the ongoing investment in the future medical cannabis cultivation facility in Moshav Kochav Michael, Israel which includes permits and design.

 

The Company considered indicators of impairment at December 31, 2023. The Company recorded impairment loss during the year ended December 31, 2023 for the capital work in progress.

 

The impairment for the capital work in progress was done mainly because of recent medical cannabis legislation changes in Israel that have materially affected the value of this asset.

 

- 13 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 8 – TRADE PAYABLES AND ACCRUED LIABILITIES

 

   March 31, 2024   December 31, 2023 
Trades payables  $298,180   $157,705 
VAT, income and dividend taxes payable   9,895    28,027 
Salaries payable   54,595    72,783 
Trade payables and accrued liabilities  $362,670   $258,515 

 

NOTE 9– RELATED PARTY TRANSACTIONS BALANCES

 

Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of members of the Company’s Board of Directors and corporate officers. The remuneration of directors and key management personnel, not including normal employee compensation, made during the three months ended March 31, 2024 and the three months ended March 31, 2023 is set out below:

 

   March 31, 2024   March 31, 2023 
salary (cost of sales)   122,910    20,498 
consulting (research and development)   30,488    - 
consulting (professional fees)   40,963    - 
share based payments   53,567    44,441 
salary (general and administrative expenses)   213,343    146,250 
Total  $461,271   $211,189 

 

As at March 31, 2024, $873 was owed from shareholders of the company (December 31, 2023– $843). Amounts owed were recorded in accounts receivable are non-interest bearing and unsecured.

 

As at March 31, 2024, $364,843 was owed to directors of the Company (December 31, 2023– $450,048). Amounts due are non-interest bearing and unsecured.

 

NOTE 10 – LONG TERM LOAN

 

During the year ended December 31, 2020, the Company secured a term loan with a principal amount of $184,352 (NIS 500,000) from an Israeli bank. The loan bears interest at the rate of 3.14% per annum and matures on September 18, 2025. The loan is subject to 48 monthly payments commencing October 18, 2021. $9,218 (NIS 25,000) was deposited in the bank as security for the loan.

 

The activities of the long term loan during the three month ended March 31, 2024 are as follows:

 

  

March 31, 2024

  

December 31, 2023

 
Balance, opening  $85,107   $135,971 
Repayments   (11,621)   (43,350)
Interest expense, accrued   613    3,333 
Translation difference   244    (8,847)
Balance, ending   74,343    85,107 
Less:          
Long term loan – current portion   47,509    46,680 
Long term loan  $26,834   $38,427 

 

- 14 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 10 – LONG TERM LOAN (continued)

 

The undiscounted repayments for each of the next three years and in the aggregate are:

 

 SCHEDULE OF UNDISCOUNTED REPAYMENTS

Year ended  Amount 
December 31, 2024  $35,493 
December 31, 2025   38,850 
Total  $74,343 

 

NOTE 11 – DERIVATIVE WARRANTS LIABILITIES

 

a. On December 21, 2023, the Company issued 2,884,616 warrants (15,182 warrants at an exercise price of US $98.8 post reverse split) in connection with its December 2023 Registered direct public offering (“December 2023 Warrants”). The warrant includes a cashless exercise provision and repricing adjustments for offerings at a price lower than the existing exercise price of the warrants, stock splits, reclassifications, subdivisions, and other similar transactions and also the exercise price of the warrant is not denominated in the functional currency of the Company, therefore, these warrants were recorded at their fair value as a derivative liability at the time of the grant and revalued at the end of each reporting period.
   
  On March 27, 2024, following the March 2024 Public offering, which included the offering of common shares at a price lower than the exercise price of the December 2023 Warrants, the exercise price of the December 2023 Warrants was reduced to US $1.3643, and each December 2023 Warrant became convertible into 72.42 common shares of the Company.
   
b. On March 14, 2024, the Company issued 134,166,665 Series A Warrants (706,140 A warrants post reverse split) and 268,333,330 Series B Warrants (1,412,280 B warrants post reverse split) in connection with its March 2024 public offering (“March 2024 A Warrants and B Warrants”). The warrants include a cashless exercise provision and repricing adjustments for offerings at a price lower than the existing exercise price of the warrants, stock splits, reclassifications, subdivisions, and other similar transactions and also the exercise price of the warrant is not denominated in the functional currency of the Company, therefore, these warrants were recorded at their fair value as a derivative liability at the time of the grant and revalued at the end of each reporting period.
   
  On March 27, 2024, following the 1:190 reverse stock split, the exercise price of the March 2024 A Warrants and B Warrants was reduced to $1.3643, and each B warrant became convertible into 14.21 common shares of the Company.
   
c. During the period ended March 31, 2024, the Company recorded a loss on the revaluation of the total derivative liabilities of $28,977,934, in the consolidated statements of Operations and Comprehensive Loss.

 

- 15 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 11 – DERIVATIVE WARRANTS LIABILITIES (continued)

 

d. The Company engaged an outside valuation company to calculate the fair value of the derivative warrants based on the Monte Carlo Simulation model with the following assumptions:

 

   March 31, 2024 
Share Price   US $ 1.4 
Exercise Price   US $ Nil- 0.35 
Expected life   2.45- 4.95 years 
Risk-free interest rate   4.23% 
Dividend yield   0.00% 
Expected volatility   80% 
Early exercise threshold   US $ 2.05 

 

The following table presents the changes in the warrant liability during the period:

 

      
Balance as of December 31, 2023  $958,146 
Issuance of March 2024 warrants   35,921,315 
Changes in fair value of warrants   507,165 
Balance as of March 31, 2024  $37,386,626 

 

NOTE 12 – EMPLOYEE BENEFITS

 

The severance pay liability constitutes a defined benefit plan and was calculated using actuarial assumptions. In measuring the present value of the defined benefit obligation and the current service costs the projected unit credit method was used.

 

Plan assets (liability)

 

Information on the Company’s defined benefit pension plans and other defined benefit plans, in aggregate, is summarized as follows:

 

   March 31, 2024   December 31, 2023 
Defined benefit plan liabilities  $(94,964)  $(91,533)
Less: fair value of plan assets or asset ceiling   -    - 
Total  $(94,964)  $(91,533)

 

- 16 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 


 

NOTE 12 – EMPLOYEE BENEFITS (continued)

 

Changes in the present value of the defined benefit plan liability

 

The following are the continuities of the fair value of plan assets and the present value of the defined benefit plan obligations:

 

   March 31, 2024   December 31, 2023 
Balance, opening  $(91,533)  $(86,016)
Recognized in profit this year:          
Interest costs   (1,166)   (4,638)
Current service cost   (1,473)   (5,860)
Recognized in other comprehensive profit:          
Actuary loss for change of assumptions   122    485 
Translation differences   (914)   4,496 
Balance, ending  $(94,964)  $(91,533)

 

The actual amount paid may vary from the estimate based on actuarial valuations being completed, investment performance, volatility in discount rates, regulatory requirements and other factors.

 

Major assumptions in determining the defined benefit plan liability

 

The principal actuarial assumptions used in calculating the Company’s defined benefit plan obligations and net defined benefit plan cost for the year were as follows (expressed as weighted averages):

 

   March 31, 2024   December 31, 2023 
Capitalization rate   3.15%   3.15%
Salary growth rate   0%   0%
Retirement rate   5%   5%

 

NOTE 13 – SHARE CAPITAL

 

Authorized

 

Unlimited number of common shares without par value.

 

Issued

 

As at March 31, 2024 3,245,069 common shares were issued and outstanding.

 

During the three months ended March 31, 2024

 

On January 4, 2024, the Company issued 17,915 common shares (94 common shares post reverse split) to two directors following the vesting of RSU’s with a fair value of $2.99, for a compensation amount of $53,568.

 

On January 10, 2024, the Company granted 410,000 RSUs (2,158 RSUs post reverse split) to five directors of the Company, the RSUs will vest over 4 months and a day.

 

- 17 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 13 – SHARE CAPITAL (continued)

 

On January 16, 2024, the Company granted 60,000 RSUs (316 RSUs post reverse split) to a consultant of the Company, the RSUs will vest over 4 months and a day.

 

On February 5, 2024, the Company granted 39,753 RSUs (209 RSUs post reverse split) to a consultant of the Company, the RSUs will vest over 4 months and a day.

 

On March 5, 2024, the Company granted 60,083 RSUs (316 RSUs post reverse split) to a consultant of the Company, the RSUs will vest over 4 months and a day.

 

On March 14, 2024 the Company announced the closing of an underwritten public offering with gross proceeds to the Company of approximately US$7.0 million, before deducting underwriting discounts and other estimated expenses paid by the Company. The offering was for sale of 116,666,667 units (614,109 units post reverse split), each consisting of one common share or pre-funded warrant, one series A warrants and two series B warrants. The offering price was US$0.06 per unit. As part of this public offering and between March 14, 2024 to March 31, 2024, the Company issued 364,813 common shares, 249,296 common shares following the exercise of pre-funded warrants and 2,406,902 common shares following the cashless exercise of Series A Warrants.

 

During the three months ended March 31, 2023

 

On January 3, 2023, the Company issued 6,727 common shares (35 common shares post reverse split) to two directors following the vesting of RSU’s.

 

Stock options

 

The Company has a stock option plan to grant incentive stock options to directors, officers, employees and consultants. Under the plan, the aggregate number of common shares that may be subject to option at any one time may not exceed 10% of the issued common shares of the Company as of that date, including options granted prior to the adoption of the plan. The exercise price of these options is not less than the Company’s closing market price on the day prior to the grant of the options less the applicable discount permitted by the CSE. Options granted may not exceed a term of five years.

 

A summary of the stock options outstanding for the three months ended March 31, 2024 are summarized as follows:

 

  

Number of

Options

  

Weighted Average

Exercise Price

 
Outstanding at January 1, 2023   3,237    267.9 
Granted during the period   526    402.8 
Exercised during the period   -    - 
           
Outstanding at December 31, 2023   3,763   $286.9 
Granted during the period   3,421    100.7 
Cancelled during the period   (2,974)    320.6 
           
Outstanding at March 31, 2024   4,210    139.7 
Exercisable at March 31, 2024   2,631   $141.9 

 

- 18 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 13 – SHARE CAPITAL (continued)

 

Additional information regarding stock options outstanding as of March 31, 2024, is as follows:

 

Outstanding   Exercisable 

Number of

stock options

   Weighted
average
remaining
contractual
life (years)
   Weighted
Average
Exercise Price
   Number of
stock options
   Weighted
Average
Exercise Price
 
                  
 789    2.00   $155.8    789   $155.8 
 3,421    4.79   $135.9    1,842   $135.9 
                       
 4,210    4.27   $139.67    2,631   $141.9 

 

Details of the fair value of options granted and the assumptions used in the Black-Scholes option pricing model are as follows:

 

   2024   2023 
Weighted average fair value of options granted  $0.57   $1.61 
Risk-free interest rate   3.4%   3.76%
Estimated life (in years)   5    5 
Expected volatility   108.75%   100.64%
Expected dividend yield   0%   0%

 

On January 10, 2024, the Company cancelled 565,000 stock options (2,974 stock options post reverse split) that were previously granted to 4 directors of the Company.

 

On January 16, 2024, the Company granted 650,000 stock options (3,421 stock options post reverse split) to a consultant of the Company, the stock options vest as follows: 150,000 on the date of the grant (789 post reverse split) and 100,000 every month thereafter (526 post reverse split) every month thereafter.

 

NOTE 14 – REVENUE AND DEFERRED REVENUE

 

  

March 31, 2024

  

March 31, 2023

 
Software development  $245,306   $190,702 
Software license   37,806    203,187 
Software supports   12,639    14,109 
Cloud hosting   10,755    11,010 
Others   2,462    1,627 
Revenue  $308,968   $420,635 

 

The Company recognized revenues from contracts with customers in accordance with the following timing under IFRS 15:

 

   March 31, 2024   March 31, 2023 
Revenue recognized over time  $271,162   $217,448 
Revenue recognized at a point of time   37,806    203,187 
Revenue  $308,968   $420,635 

 

- 19 -
 

 

BYND CANNASOFT ENTERPRISES INC.

Notes to the Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2024

(Expressed in Canadian dollars)

(Unaudited)

 

 

NOTE 14 – REVENUE AND DEFERRED REVENUE (continued)

 

Deferred revenue represents contract liabilities for customer payments received related to services yet to be provided subsequent to the reporting date. Significant changes in deferred revenue are as follows:

 

   March 31, 2024   December 31, 2023 
Deferred revenue, beginning  $131,794   $219,068 
Customer payments received attributable to contract liabilities for unearned revenue   5,632    158,711 
Revenue recognized from fulfilling contract liabilities   37,765    245,985