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.
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.
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
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 |
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Exhibit
99.1
BYND
CANNASOFT ENTERPRISES INC.
CONDENSED
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR
THREE MONTHS ENDED MARCH 31, 2024
(EXPRESSED
IN CANADIAN DOLLARS)
(UNAUDITED)
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
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.
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 | |
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
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 | |
Balance | |
| 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 | |
Balance | |
| 3,245,069 | | |
| 59,420,609 | | |
| 53,567 | | |
| - | | |
| (26,076 | ) | |
| 379,218 | | |
| 13,886 | | |
| (55,287,567 | ) | |
| 4,553,637 | |
The
accompanying notes are an integral part of these condensed consolidated financial statements.
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.
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.
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.
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.
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.
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:
SCHEDULE OF CONTINGENT CONSIDERATION
| |
$ | |
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
SCHEDULE OF 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 | |
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.
SCHEDULE OF PATENTS INCLUDE THE FAIR VALUE ATTRIBUTED TO THE PATENTS UPON THE ACQUISITION
| |
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 | |
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
SCHEDULE OF 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 | |
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.
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
SCHEDULE OF 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:
SCHEDULE OF RELATED PARTY TRANSACTIONS
| |
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:
SCHEDULE OF LONG TERM LOAN
| |
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 | |
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. |
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: |
SCHEDULE OF DERIVATIVE WARRANT LIABILITY
| |
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:
SCHEDULE OF CHANGES IN THE WARRANT LIABILITY
| |
| | |
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:
SCHEDULE OF PLAN ASSET (LIABILITY)
| |
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 | ) |
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:
SCHEDULE OF CHANGE IN THE PRESENT VALUE OF THE DEFINED BENEFIT PLAN LIABILITY
| |
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):
SCHEDULE OF MAJOR ASSUMPTIONS IN DETERMINING THE DEFINED BENEFITS PLAN LIABILITY
| |
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.
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:
SCHEDULE OF STOCK OPTIONS OUTSTANDING
| |
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 | |
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:
SCHEDULE OF ADDITIONAL STOCK OPTIONS OUTSTANDING
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:
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS
| |
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
SCHEDULE OF REVENUE FROM SOURCES
| |
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:
SCHEDULE OF REVENUE UNDER TIMING
| |
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 | |
BYND CANNASOFT ENTERPRISES
INC.
Notes to the Condensed
Consolidated Interim Financial Statements