Highlander Silver Corp. — Interim / Quarterly Report 2020

Feb 14, 2020

Lido Minerals Ltd.

(formerly Commonwealth Cannabis Corp.)

Unaudited Condensed Interim Financial Statements

For the Three Months Ended December 31, 2019

(Expressed in Canadian dollars)

Lido Minerals Ltd. (formerly Commonwealth Cannabis Corp.)

Condensed Interim Statements of Financial Position

(Unaudited)

	As at	As at
	December 31,2019	September 30, 2019
	$	$
Assets
Current Assets
Cash	660,837	743,813
Sales tax receivable	7,554	5,105
Prepaid Expense (Note 6)	20,135	-
Investment(Note 5)	125,000	125,000
Total Current and Total Assets	813,526	873,918
Liabilities
Current liabilities
Accounts payable	848	5,298
Accrued liabilities	-	3,780
Total Current and Total Liabilities	848	9,078
Shareholders’ equity
Share capital (Note 4)	1,332,600	1,332,600
Deficit	(519,922)	(467,760)
Total Shareholders’ Equity	812,678	864,840
Total liabilities and shareholders’ equity	813,526	873,918

Nature and Continuance of Operations (Note 1)

Approved on behalf of the Board on February 14, 2020:

“Carl Chow”Carl Chow, CEO and Director	“Lucas Birdsall”
	Lucas Birdsall, CFO and Director

The accompanying notes are integral to these financial statements.

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Lido Minerals Ltd. (formerly Commonwealth Cannabis Corp.) Condensed Interim Statement of Comprehensive Loss (Unaudited)

	Three Months ended	Three Months ended	Three Months ended	Three Months ended
	December 31, 2019		December 31, 2018
		$		$
Expenses
Administration (Note 6)		49,719		33,810
Professional fees		2,443		17,801
Net and comprehensive loss		(52,162)		(51,611)
Basic and diluted loss per common share	$	(0.00)	$	(0.34)
Weighted average number of common shares outstanding
(Note 4)		11,035,054		151,054

The accompanying notes are integral to these financial statements.

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Lido Minerals Ltd. (formerly Commonwealth Cannabis Corp.) Condensed Interim Statements of Changes in Shareholders’ Equity (Unaudited)

	Share	Capital
			Special
	Number	Amount	Warrants	Deficit	Total
		$	$	$	$
Balance, September 30, 2018	151,054	11,000	442,800	(33,042)	420,758
Special Warrants Issued (Note 4)	-	-	23,600	-	23,600
Net and comprehensive loss	-	-	-	(51,611)	(51,611)
Balance, December 31, 2018	151,054	11,000	466,400	(84,653)	392,747
Shares issued for private placement (Note 4)	8,552,000	855,200	-	-	855,200
Special warrants exercised (Note 4)	2,332,000	466,400	(466,400)	-	-
Net and comprehensive loss	-	-	-	(383,107)	(383,107)
Balance, September 30, 2019	11,035,054	1,332,600	-	(467,760)	864,840
Net and comprehensive loss	-	-	-	(52,162)	(52,162)
Balance, December 31, 2019	11,035,054	1,332,600	-	(519,922)	812,678

The accompanying notes are integral to these financial statements.

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Lido Minerals Ltd. (formerly Commonwealth Cannabis Corp.)

Condensed Interim Statements of Cash Flows

(Unaudited)

	Three Months Ended	Three Months Ended
	December 31, 2019	December 31, 2018
	$	$
Net and comprehensive loss	(52,162)	(51,611)
Operating Activities:
Changes in non-cash working capital items:
Sales tax receivable	(2,449)	(1,027)
Prepaid Expense	(20,135)	-
Accountspayable and accrued liabilities	(8,230)	2,683
Cash flows used in operatingactivities	(82,976)	(49,955)
Financing Activities:
Proceeds from private placement	-	23,600
Loans receivable	-	(144,010)
Cash flowsprovided byfinancingactivities	-	(120,410)
Change in cash	(82,976)	170,365
Cash,beginning	743,813	423,173
Cash,ending	660,837	252,808

The accompanying notes are integral to these financial statements.

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Lido Minerals Ltd. (formerly Commonwealth Cannabis Corp.) Notes to the Unaudited Condensed Interim Financial Statements December 31, 2019

1. Nature and Continuance of Operations

Lido Minerals Ltd. (formerly Commonwealth Cannabis Corp.) was incorporated as 1093684 B.C. Ltd. (the "Company" or “Lido”) on October 19, 2016 under the laws of British Columbia, Canada. On February 11, 2020 the Company changed its name to Lido Minerals Ltd. The Company’s head office and registered office is located at 600 – 1090 West Georgia Street, Vancouver, BC V6E 3V7.

The Company is a publicly reporting issuer in the Provinces of British Columbia and Alberta. The Company currently operates in the cannabis sector. The Company intends to change its business to exploration and evaluation of mineral properties and intends to file a prospectus with the Canadian Securities Exchange as a resource issuer.

The financial statements have been prepared on the basis of accounting principles applicable to a going concern which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation. The Company’s continuing operations, as intended, and its financial success may be dependent upon the extent to which it can successfully develop its business.

The development of the Company’s business may take many years to be successful and the amount of resulting income, if any, is difficult to determine with any certainty. For the three months ended December 31, 2019, the Company incurred a loss of $52,162 (2018: $51,611) and expects to incur losses in the development of its business, all of which casts material uncertainty about the Company’s ability to continue as a going concern. Management believes its working capital will be sufficient to support operations for the next twelve months.

In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to twelve months from the end of the reporting period. The Company’s continuation as a going concern is dependent upon raising the necessary funds through the selling of investments and issuance of equity or debt sufficient to meet current and future obligations. Management is aware, in making its assessment, of material uncertainties related to events and conditions that may cast significant doubt upon the Company's ability to continue as a going concern as described above, and accordingly, the appropriateness of the use of accounting principles applicable to a going concern. These financial statements do not include any adjustments relating to the realization of assets and liquidation of liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material.

2. Basis of Presentation

Statement of Compliance –

The financial statements for the three months ended December 31, 2019 with comparative figures for the three months ended December 31, 2018 were prepared in accordance with the International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (IASB) and interpretations of the International Financing Reporting Interpretations Committee (“IFRIC”).

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Lido Minerals Ltd. (formerly Commonwealth Cannabis Corp.) Notes to the Unaudited Condensed Interim Financial Statements December 31, 2019

3. Significant Accounting Policies

New accounting standards adopted –

IFRS 16 Leases:

In January 2016, the IASB issued IFRS16 – Leases which replaces IAS 17 – Leases and its associated interpretative guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract on the basis of whether the customer controls the asset being leased. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting remains similar to current accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019. The Company adopted this new standard on October 1, 2019. This new standard did not have any impact on the Company’s financial statements because the Company does not have any leases.

4. Share Capital

Common Shares

Authorized:

Unlimited common shares without par value.

Issued:

On January 31, 2019 the Company issued 8,552,000 common shares at $0.10 per share for total proceeds of $855,200.

Special Warrants

On October 1, 2018, the Company completed a non-brokered private placement of 2,332,000 Special Warrants of the Company at a price of $0.20 per Special Warrant for total proceeds of $466,400.

On February 4, 2019 all outstanding warrants were exercised, for no further consideration, into 2,332,000 of Company’s common shares.

5. Investments

On August 8, 2019, the Company subscribed to 1,000,000 units of Champignon Brands Inc. (“Champignon”), a private company, for cash consideration of $100,000. Each unit consists of one common share and one half of one share purchase warrant. Each whole warrant is exercisable into one common share at $0.15 per share for a period of three years. At December 31, 2019, the fair value of this investment was $125,000, which was based on the fair value of recent share subscriptions by Champignon.

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Lido Minerals Ltd. (formerly Commonwealth Cannabis Corp.)

Notes to the Unaudited Condensed Interim Financial Statements December 31, 2019

6. Related Party Transactions

During the period ended December 31, 2019, the Company paid the following advisory and consulting fees:

• $6,000 (2018: $3,000) to Lucas Birdsall, the CFO and director of the Company;

• $1,500 (2018: $Nil) to Patrick O’Flaherty, an independent director of the Company;

• $16,000 (2018: $Nil) to Obsydia Holdings Ltd. A corporation controlled by Wayne Soo, a Director of the Company; and

• $Nil (2018: $1,000) to a former director.

At December 31, 2019, the Company prepaid $8,400 (2018: $Nil) to Obsydia Holdings Ltd., a corporation controlled by Wayne Soo, a Director of the Company, which is included in prepaid expense.

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