Digital Asset Technologies Inc. — Interim / Quarterly Report 2020

Mar 16, 2021

The unaudited condensed interim consolidated financial statements of Eat Beyond Global Holdings Inc. for the three and nine months ended September 30, 2020 and 2019 (Q3 2020 Financial Statements) have been amended and restated in order to correct for certain disclosure deficiencies as described in Note 11.

EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.)

CONDENSED INTERIM FINANCIAL STATEMENTS (Expressed in Canadian dollars)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS

The accompanying unaudited condensed interim financial statements of Eat Beyond Global Holdings Inc. (“the Company”) for the period from the date of incorporation on September 9, 2019 to September 30, 2020, have been prepared by the management of the Company and approved by the Company’s Audit Committee and the Company’s Board of Directors.

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

The accompanying unaudited condensed interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor has not performed a review of these condensed interim financial statements in accordance with standards established by CPA Canada for a review of the condensed interim financial statements by an entity’s auditor.

Amended and Restated

EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) Condensed Interim Statement of Financial Position

(Expressed in Canadian Dollars)

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September 30, December 31,
As at Note 2020 2019
$ $
(note 11)
Assets
Current assets:
Cash 3 2,250,834 132,513
Prepaid expenses 945 -
Marketable securities 4 713,263 -
2,965,042 132,513
Non-current assets:
Convertible note receivable 4 250,000 -
Total assets 3,215,042 132,513
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liablities 5,6 136,674 -
Total liabilities 136,674 -
Shareholders’ equity:
Share capital 7 1,547,260 151,400
Reserves 7 83,100 -
Special warrants 7 1,681,320 -
Deficit (233,312) (44,512)
Total shareholders' equity 3,078,368 106,888
Total liabilities and shareholders' equity 3,215,042 106,888
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Nature of operations and going concern (Note 1) Subsequent events (Note 10)

These condensed interim financial statements were approved by the Board of Directors on March 15, 2021

“Alexander Somjen”

Alexander Somjen, Director

“Ravinder Kang”

Ravinder Kang, Director

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

Amended and Restated

EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.)

Condensed Interim Statement of Loss and Comprehensive Loss (Expressed in Canadian Dollars)

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Period from Period from
Three months incorporation on Nine months incorporation on
ended September 9, 2019 ended to September 9, 2019
September 30, to September 30, September 30, to September 30,
Note 2020 2019 2020 2019
$ $ $ $
(Note 11) (Note 11)
Expenses
Marketing and promotion 24,461 - 110,455 -
Professional fees 36,250 - 161,639 -
Consulting fees 6 60,756 - 114,831 -
Regulatory and filing 3,675 - 3,675 -
Travel - - 5,414 -
Office and administration 90 - 561 -
125,232 - 396,575 -
Loss (Gain) from other items
Loss (Gain) on fair value of marketable securities 4 89,045 - (163,263) -
Loss and comprehensive loss 214,277 - 233,312 -
Loss per common share
0.01 - 0.03 -
– basic and diluted
Weighted average number of common shares outstanding –basic and diluted 15,518,584 - 9,047,392 -
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The accompanying notes are an integral part of these condensed interim financial statements.

Amended and Restated

EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.)

Condensed Interim Statements of Changes in Shareholders’ Equity

(Expressed in Canadian Dollars)

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Share capital
Number of Special
Amount Reserves Deficit Total Equity
Note Shares Warrants
Balance, September 09, 2019 (date of – – – – – –
incorporation)
Common shares issued for cash 2,312,500 31,250 - - - 31,250
Share issuance costs - cash - - - - - -
Share issuance costs - warrants - - - - - -
Special warrants issued for cash - - - - - -
Special warrants converted to common shares - - - - - -
Loss and comprehensive loss - - - - - -
Balance, September 30, 2019 2,312,500 31,250 - - - 31,250
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	Share capital
Note	Number of Shares Amount Reserves Special Warrants Deficit Total Equity
Balance, December 31, 2019 Common shares issued for cash 7 Share issuance costs - cash Share issuance costs - warrants Special warrants issued for cash Special warrants converted to common shares Loss and comprehensive loss	$ $ $ $ $ 3,515,500 151,400 – – – 151,400 12,003,010 1,616,855 - - - 1,616,855 - (150,505) - - - (150,505) - (83,100) 83,100 - - - - - - 1,693,930 - 1,693,930 252,200 12,610 - (12,610) - - - - - -(233,312) (233,312)
Balance, September 30, 2020	15,770,710 1,547,260 83,100 1,681,320 (233,312) 3,078,368

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

Amended and Restated

EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) Condensed Interim Statement of Cash Flows (Expressed in Canadian Dollars)

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Period from
For the nine incorporation on
months ended September 9 to
September 30, September 30,
2020 2019
$ $
(note 11)
Cash used in operating activities:
Loss and comprehensive loss (233,312) -
Adjustments for:
Gain on fair value of marketable securities (163,263) -
Changes in non-cash working capital:
Trades payables and accrued liabilities 124,674 -
Prepaid expenses (945) -
Net cash used in operating activities (272,846) -
Financing activities
Proceeds from common share issuances 1,616,855 31,250
Proceeds from special warrant issuances 1,693,930 -
Share issue costs (138,505) -
Net cash provided by financing activities 3,172,280 31,250
Investing activities
Marketable securities (550,000) -
Convertible note receivable (250,000) -
Net cash used in investing activities (800,000) -
Change in cash 2,099,434 31,250
Cash, beginning of period - -
Cash, end of period 2,250,834 31,250
Supplemental cash flow information:
Share issuance costs - finders warrants issued 83,100 -
-
Share issuance costs included in accounts payable 12,000
Special Warrant issuance cost - finders warrants issued 12,610 -
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The accompanying notes are an integral part of these condensed interim financial statements.

EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

Amended and Restated

1. NATURE OF OPERATIONS AND GOING CONCERN

Eat Beyond Global Holdings Inc. (the “Company”) was incorporated on September 9, 2019 under the laws of the Province of British Columbia, Canada by a Certificate of Incorporation issued pursuant to the provisions of the Business Corporations Act (British Columbia) and changed its name from 1222554 B.C. Ltd. to Eat Beyond Global Holdings Inc. on September 17, 2019. The Company’s head office and principal address is Suite 1570 – 505 Burrard Street, Vancouver BC, V7X 1M5. The registered and records office is 1500-1055 West Georgia Street, Vancouver, BC, V6E 4N7.

The Company is an investment company primarily focusing on investments in the plant-based protein and meat alternative food industry. The Company’s investments may include the acquisition of equity, debt or other securities of publicly traded or private companies or other entities, financing in exchange for pre-determined royalties or distributions and the acquisition of all or part of one or more businesses, portfolios or other assets, in each case that the Company believes will enhance value for the shareholders of the Company in the long term.

These condensed interim financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. As at September 30, 2020, the Company is not able to finance day to day activities through operations and has an accumulated deficit of $233,312. The continuing operations of the Company are dependent upon its ability to develop a viable business and to attain profitable operations.

In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time.

These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. Management intends to finance operating costs through the issuance of common shares. If the Company is unable to continue as a going concern, the net realizable value of its assets may be materially less than the amounts on its statement of financial position.

2. SUMMARY SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

Statement of compliance

These condensed interim financial statements, including comparatives, have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), Interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”) and in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting. The financial statements were authorized for issued by the board of directors of the Company on March 12, 2021.

Basis of measurement

These condensed interim financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value. In addition, these condensed interim financial statements have been prepared using the accrual basis of accounting except for cash flow information. The condensed interim financial statements are presented in Canadian dollars, unless otherwise noted.

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EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

Amended and Restated

2. SUMMARY SIGNIFICANT ACCOUNTING (continued)

Significant estimates and assumptions

The preparation of condensed interim financial statements in accordance with IFRS requires the Company to make estimates and assumptions concerning 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.

Estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods include the fair value measurements for financial instruments and the recoverability and measurement of deferred tax assets and liabilities.

Significant judgements

The preparation of condensed interim 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 condensed interim 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; and

• the classification of financial instruments.

Cash and cash equivalents

Cash is comprised of cash on hand and cash held in trust accounts. Cash equivalents are short-term, highly liquid investments with maturities within three months when acquired. The Company did not have any cash equivalents as of September 30, 2020.

Financial instruments

Financial instruments are accounted for in accordance with IFRS 9, “Financial Instruments: Classification and Measurement”. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

On initial recognition, financial assets are recognized at fair value and are subsequently classified and measured at: (i) amortized cost; (ii) fair value through other comprehensive income (“FVTOCI”); or (iii) fair value through profit or loss (“FVTPL”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at fair value net of transaction costs that are directly attributable to its acquisition except for financial assets at FVTPL where transaction costs are expensed. All financial assets not classified and measured at amortized cost or FVTOCI are measured at FVTPL. On initial recognition of an equity instrument that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income.

The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership

The classification determines the method by which the financial assets are carried on the statement of financial position subsequent to inception and how changes in value are recorded. Marketable securities are measured at FVTPL. Cash, receivables and convertible note receivables are measured at amortized cost.

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EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

Amended and Restated

2. SUMMARY SIGNIFICANT ACCOUNTING (continued)

Impairment of financial assets

IFRS 9 uses the expected credit loss (“ECL”) model. The credit loss model groups receivables based on similar credit risk characteristics and days past due in order to estimate bad debts. The ECL model applies to the Company’s receivables.

Impairment

An ‘expected credit loss’ impairment model requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to estimated present value of the future cash flows associated with the asset, discounted at the financial asset’s original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period.

In subsequent periods, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.

Financial liabilities

Financial liabilities are designated as either: (i) fair value through profit or loss; or (ii) amortized cost. All financial liabilities are classified and subsequently measured at amortized cost except for financial liabilities at FVTPL. The classification determines the method by which the financial liabilities are carried on the statement of financial position subsequent to inception and how changes in value are recorded. Trade payables are classified as and carried on the statement of financial position at amortized cost.

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains and losses on derecognition are generally recognized in profit and loss.

Loss per share

Basic loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is determined by adjusting net loss and the weighted average number of common shares outstanding for the effects of dilutive instruments such as options granted to employees and warrants outstanding. The weighted average number of diluted shares is calculated in accordance with the treasury stock method. The treasury stock method assumes that the proceeds received from the exercise of all potentially dilutive instruments are used to repurchase common shares at the average market price during the period.

Income taxes

Income tax expense comprises current and deferred tax. Income tax is recognized in the statement of loss and comprehensive loss, except to the extent that it relates to items recognized in other comprehensive loss or directly in equity. In this case the income tax is also recognized in other comprehensive loss or directly in equity, respectively.

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EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

Amended and Restated

2. SUMMARY SIGNIFICANT ACCOUNTING (continued)

Current income tax

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is recognized on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that future taxable income will be available to allow all or part of the temporary differences to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted and are expected to apply by the end of the reporting period. Deferred tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Share capital

Common shares issued by the Company are classified as equity. Costs directly attributable to the issue of common shares, share purchase warrants and share options are recognized as deduction from equity, net any related income tax effects.

Warrants issued in equity financing transactions

The Company engages in equity financing transactions to obtain the funds necessary to continue operations. These equity financing transactions may involve issuance of common shares or units. A unit comprises a certain number of common shares and a certain number of share purchase warrants. Depending on the terms and conditions of each equity financing agreement, the warrants are exercisable into additional common shares prior to expiry at a price stipulated by the agreement. Warrants that are part of units are valued based on the residual value method and included in share capital with the common shares that were concurrently issued. Warrants that are issued as payment for an agency fee or other compensatory transactions costs are accounted for as share-based payments.

Related party transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control, and related parties may be individuals, including immediate family members of the individual, or corporate entities, including the Company’s whollyowned subsidiaries. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

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EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

Amended and Restated

2. SUMMARY SIGNIFICANT ACCOUNTING (continued)

Accounting standards and interpretations issued but not yet adopted

Certain pronouncements issued by the IASB or IFRIC that are effective for accounting periods beginning on or after January 1, 2020 are either not applicable or are not expected to have a significant impact on the Company's condensed interim financial statements. These updates are not applicable or consequential to the Company and have been omitted from discussion herein.

3. CASH

	September 30,	December 31,
	2020	2019
	$	$
Cash	1,191,059	1,113
Funds held in trust	1,059,775	131,400
	2,250,834	132,513

4. INVESTMENTS

Marketable securities

On March 6, 2020, the Company subscribed $400,000 to a non-brokered placement in Greenspace Brands Inc. for 6,153,846 common shares at a price of $0.065 per share.

On June 8, 2020, the Company subscribed $50,000 to an initial public offering in The Very Good Food Company Inc. for 200,000 common shares at a price of $0.25 per share.

On August 31, 2020, the Company subscribed $100,000 to a non-brokered placement in Good Natured Products Inc. for 714, 284 units at a price of $0.14 per unit.

Marketable securities are fair valued at the end of each reporting period. The carrying values are marked to market and the resulting gain or loss from marketable securities are recorded against earnings. A continuity of the Company’s marketable securities is as follows:

	September 30,	December 31,
	2020	2019
	$	$
Balance, beginning	-
Investment in marketable securities	550,000	-
Gain on fair value of marketable securities	163,263	-
Balance,ending	713,263	-

Convertible note receivable

On September 29, 2020, the Company loaned $250,000 through a convertible note (“Note”) to Nabati Foods Inc. (“Nabati”). The Note earns interest at 10% per annum, payable annually, with a five-year maturity. At any time prior to maturity, the Company has the right to convert all or any portion of the Note into fully paid and non-assessable Class A voting shares of Nabati.

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EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.)

Amended and Restated

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	September 30,	December 31,
	2020	2019
	$	$
Accounts payable	14,500	-
Accrued liabilities	122,174	-
	136,674	-

6. RELATED PARTY TRANSACTIONS

Key management compensation

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 Company entered into the following transactions with related parties during the period from incorporation on September 9, 2019 to September 30, 2020.

	September 30,	December 31,
	2020	2019
	$	$
Consulting fees paid to a company controlled by CEO	25,725	-
Consultingfeespaid to a companycontrolled bya former Director	-	15,000
	25,725	15,000

Consulting fees are recognized in the statement of loss and comprehensive loss. As at September 30, 2020, there were no amounts due to related parties.

7. SHARE CAPITAL

Authorized share capital

Unlimited number of common shares without par value

Common shares

On February 5, 2020, the Company issued 5,000,000 units at $0.005 per unit for gross proceeds of $25,000, of which 500,000 units were issued to a company controlled by a director. Each unit is comprised of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share of the Company at $0.05 per share for a period of 24 months from the date of issuance.

On February 13, 2020, the Company issued 7,325,000 units at $0.02 per share for gross proceeds of $146,500, of which 475,000 units were issued to a company controlled by a director. Each unit is comprised of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share of the Company at $0.05 per share for a period of 24 months from the date of issuance.

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EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

Amended and Restated

7. SHARE CAPITAL (continued)

On March 18, 2020, the Company issued 2,693,510 common shares (“Shares”) at $0.50 per share for gross proceeds of $1,346,755. The Company incurred $87,273 of cash finders’ fees and issued 174,545 finders’ warrants with a fair value of $45,700. Each finders’ warrant entitles the holders to acquire one common share at an exercise price of $0.50 for two years from the grant date.

On April 23, 2020, the Company issued 500,000 common shares (“Shares”) at $0.50 per share for gross proceeds of $250,000. The Company incurred $17,500 of cash finders’ fees and issued 35,000 finders’ warrants with a fair value of $9,100. Each finders’ warrant entitles the holders to acquire one common share at an exercise price of $0.50 for two years from the grant date.

Special warrants

On March 17, 2020, the Company issued 252,200 Special Warrants at $0.05 per Special Warrant for total gross proceeds of $12,610. Each Special Warrant will entitle the holder to receive one common share of the Company at no additional consideration on the exercise or deemed exercise of each Special Warrant. All unexercised Special Warrants will be deemed to be exercised on the earlier of: (a) the date that is four months and a day following the closing date, and (b) the third business day after a receipt is issued for a (final) prospectus by the securities regulatory authorities in each of the Provinces of Canada where the Special Warrants are sold qualifying the Shares to be issued upon the exercise of the Special Warrants. On July 18, 2020, the Company issued 252,200 common shares on conversion of the Special Warrants.

On August 12, 2020, the Company issued 3,362,640 Special Warrants at $0.50 per Special Warrant for gross proceeds of $1,681,320. The Company incurred $45,732 of cash finders’ fees and issued 108,614 finders’ warrants with a fair value of $28,300. Each finders’ warrant entitles the holders to acquire one common share at an exercise price of $0.50 for two years from the grant date. Each Special Warrant will entitle the holder to receive one common share of the Company at no additional consideration on the exercise or deemed exercise of each Special Warrant. All unexercised Special Warrants will be deemed to be exercised on the earlier of: (a) the date that is four months and a day following the closing date, and (b) the third business day after a receipt is issued for a (final) prospectus by the securities regulatory authorities in each of the Provinces of Canada where the Special Warrants are sold qualifying the Shares to be issued upon the exercise of the Special Warrants.

Warrants

The following is a summary of the Company’s warrants for period from incorporation on September 9, 2019 to September 30, 2020:

			Weighted
		Number of	average
		warrants	exerciseprice
			$
Balance, September	9, 2019	-	-
Issued		12,643,159	0.06
Balance,September	30,2020	12,643,159	0.06

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EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

Amended and Restated

7. SHARE CAPITAL (continued)

As at September 30, 2020, the Company had the following warrants outstanding:

			Weighted
		Number of	average life
Date of expiry	Exerciseprice	warrants	(years)
	$
February 5, 2022	0.05	5,000,000	1.35
February 13, 2022	0.05	7,325,000	1.37
March 18, 2022	0.50	174,545	1.46
April 23, 2022	0.50	35,000	1.56
August 12,2022	0.50	108,614	1.87
	0.06	12,643,159	1.37

The fair value of the warrants granted for the period ended September 30, 2020 was estimated using the Black-Scholes Option Pricing Model with the following weighted average assumptions:

	September 30, 2020
Risk-free interest rate	0.29% - 0.69%
Estimated life (years)	2
Expected volatility	100%
Expected dividend yield	0%
Forfeiture rate	0%

8. CAPITAL MANAGEMENT

The Company's objectives when managing capital are to safeguard its ability to continue as a going concern in order to pursue its operations and to maintain a flexible capital structure, which optimizes the costs of capital at an acceptable risk. The Company considers its capital for this purpose to be its shareholders' equity.

The Company's primary source of capital is through the issuance of equity. The Company manages and adjusts its capital structure when changes in economic conditions occur. To maintain or adjust the capital structure, the Company may seek additional funding. The Company may require additional capital resources to meet its administrative overhead expenses in the long term. The Company believes it will be able to raise capital as required in the long term but recognizes there will be risks involved that may be beyond its control. There are no external restrictions on the management of capital.

9. FINANCIAL INSTRUMENTS

The Company thoroughly examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include interest rate risk, credit risk, liquidity risk, and currency risk and price risk. Fair value measurements of financial instruments are required to be classified using a fair value hierarchy that reflects the significance of inputs in making the measurements. The levels of the fair value hierarchy are defined as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;

Level 3 – Inputs for the asset or liability that are not based on observable market data.

14

EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

Amended and Restated

9. FINANCIAL INSTRUMENTS (continued)

Marketable securities are classified as fair value through profit or loss and measured at fair value using level 1 inputs. The fair values of other financial instruments, which include cash, accounts payable and accrued liabilities approximate their carrying values due to the relatively short-term nature of these instruments.

• a) Interest rate risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.

• b) Credit risk: Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its liquid financial assets including cash, which is held with a high-credit financial institution. As such, the Company’s credit exposure is minimal.

• c) Liquidity risk: Liquidity risk arises from the excess of financial obligations over available financial assets due at any point in time. The Company's objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements. The Company addresses its liquidity through equity financing obtained through the sale of common shares. While the Company has been successful in securing financings in the past, there is no assurance that it will be able to do so in the future.

• d) Currency risk: Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange. The Company has minimal exposure to foreign currency transactions during the period ended September 30, 2020 and accordingly the risk is considered low.

• e) Price risk: Equity price risk is the risk of potential loss to the Company’s earnings due to movements in individual equity prices or general movements in the level of the stock market. As at September 30, 2020, the Company's marketable securities of $713,263 are subject to fair value fluctuations. If the fair value of the Company's marketable securities had decreased/increased by 10% with all other variables held constant, loss and comprehensive loss for the period ending September 30, 2020 would have been approximately $71,000 higher/lower.

10. SUBSEQUENT EVENTS

On November 16, 2020, the Company announced the receipt of final approval from the Canadian Securities Exchange (the “CSE”) and the Company’s common shares commenced trading on the CSE on November 17, 2020 under the symbol EATS. The Company also announced that 2,710,000 incentive stock options were granted at a price of $0.50 per share.

Investments

Subsequent to September 30, 2020, the Company has made the following investments:

Eat JUST, Inc. (“JUST”) is a private food technology company that produces plant-based foods, primarily operating in the United States. The Company has made a US$64,720 purchase of warrants in JUST and US$86,253 to exercise the warrants.

TurtleTree Labs Ptd Ltd. (“TurtleTree”) believes it is one of the first biotech companies in the world with the ability to create milk from any mammal. The Company has made a US$150,000 purchase of a SAFE note in TurtleTree.

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EAT BEYOND GLOBAL HOLDINGS INC. (formerly 1222554 B.C. Ltd.) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

Amended and Restated

FOR THE PERIOD ENDED SEPTEMBER 30, 2020 (Expressed in Canadian dollars)

10. SUBSEQUENT EVENTS (continued)

SingCell TX Pte Ltd. (“SingCell”) is building a scalable clean meat manufacturing platform in Singapore to enable global alternative meat companies address APAC and global markets. The Company has made a US$113,878 purchase of convertible notes in SingCell.

Zoglo’s Incredible Food Corp is a leading company offering kosher, plant-based products. The Company participated in a $50,000 private placement.

Plant Power Restaurant Group LLC is known as an innovator in the quick service restaurant field which offers 100% plant-based and biodegradable packaging. The Company has made US$250,000 private placement.

Sire Bioscience Inc. is a life sciences company focused on the cultivation, production and sale of industrial hemp. the Company has made a $50,000 private placement.

On November 16, 2020, the Company shares were approved for listing on the Canadian Securities Exchange and is classified as an investment issuer and commenced trading on November 17, 2020 under the trading symbol “EATS”).

Subsequent to September 30, 2020, the Company granted an aggregate of 2,960,000 stock options to directors, officers and consultants.

On November 17, 2020, 3,362,640 special warrants were converted into 3,362,640 common shares of the Company.

Subsequent to September 30, 2020, 10,794,857 share purchase warrants were exercised for total proceeds of $584,229.

11. COMPARATIVE FIGURES

The condensed interim financial statements have been restated to include comparative figures as at December 31, 2019 and for the three and nine months ended September 30, 2020.

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