Exhibits
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Interim Financial Statements
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Interim MD&A
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52-109FV2 - Certification of Interim Filings - CEO
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52-109FV2 - Certification of Interim Filings - CFO
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/s/ Gadi Levin
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Gadi Levin
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Chief Financial Officer
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Page
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Consolidated Statements of Financial Position
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3
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Consolidated Statements of Comprehensive Profit and Loss
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4
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Consolidated Statements of Changes in Equity
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5
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Consolidated Statements of Cash Flows
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6
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Notes to Interim Consolidated Financial Statements
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7 - 10
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September 30,
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December 31,
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|||||||
2016
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2015
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|||||||
ASSETS
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||||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$
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37
|
$
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124
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||||
Loan receivable
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25
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25
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||||||
Other receivables and prepaid expenses
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1
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14
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||||||
Deferred Expenses (Note 3)
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72
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-
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||||||
Total current assets
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135
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163
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||||||
Total assets
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$
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135
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$
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409
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||||
LIABILITIES AND EQUITY
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||||||||
CURRENT LIABILITIES:
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||||||||
Trade payables
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$
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11
|
$
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60
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||||
Other accounts payable and accrued liabilities
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154
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65
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||||||
Total current liabilities
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165
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125
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||||||
NON-CURRENT LIABILITIES
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||||||||
Warrant liability
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112
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112
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||||||
Total liabilities
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277
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237
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||||||
DEFICIT:
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||||||||
Share capital (Note 4)
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-
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-
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||||||
Additional paid-in capital (Note 4)
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34,060
|
34,060
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||||||
Accumulated deficit
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(34,202
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)
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(34,134
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)
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||||
Total deficit
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(142
|
)
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(74
|
)
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||||
Total liabilities and deficit
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$
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135
|
$
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163
|
Nine months ended
September 30,
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Three months ended
September 30,
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|||||||||||||||
2016
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2015
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2016
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2015
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|||||||||||||
Unaudited
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||||||||||||||||
Expenses:
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||||||||||||||||
General and administrative expenses
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71
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214
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20
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25
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||||||||||||
Total expenses
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71
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214
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20
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25
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||||||||||||
Operating loss
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(71
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)
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(214
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)
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(20
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)
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(25
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)
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||||||||
Foreign exchange gain (loss)
|
3
|
(39
|
)
|
1
|
5
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|||||||||||
Loss before income tax expense
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(68
|
)
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(253
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)
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(19
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)
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(20
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)
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||||||||
Income tax expense
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-
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-
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-
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-
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||||||||||||
Net comprehensive loss
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$
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(68
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)
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$
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(253
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)
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$
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(19
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)
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$
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(20
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)
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||||
Basic and diluted net loss per share attributable to equity holders of the parent
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$
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(0.00
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)
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$
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(0.02
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)
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$
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(0.00
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)
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$
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(0.00
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)
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||||
Weighted average number of ordinary shares used in computing basic and diluted net loss per share
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17,112,021
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14,524,816
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17,112,021
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17,112,021
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||||||||||||
Number of shares
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Share
capital
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Additional paid-in
capital
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Accumulated
deficit
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Total
Equity
(Deficit)
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||||||||||||||||
Balance as of January 1, 2015
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12,292,022
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$
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-
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$
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34,051
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$
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(33,865
|
)
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$
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186
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||||||||||
Shares issued in private placement, net
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4,820,000
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-
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7
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-
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7
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|||||||||||||||
Share-based compensation
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-
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-
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2
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-
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2
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|||||||||||||||
Net loss and comprehensive loss for the nine months
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-
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-
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-
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(253
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)
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(253
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)
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|||||||||||||
Balance as of September 30, 2015
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17,112,022
|
$
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-
|
$
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34,281
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$
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(34,118
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)
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$
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(163
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)
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|||||||||
Net loss and comprehensive loss
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-
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-
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-
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(16
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)
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(16
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)
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|||||||||||||
Balance as of December 31, 2015
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17,112,022
|
$
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-
|
$
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34,060
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$
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(34,134
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)
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$
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(74
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)
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|||||||||
Net loss and comprehensive loss for the nine months
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-
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-
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-
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(68
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)
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(68
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)
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|||||||||||||
Balance as of September 30, 2016
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17,112,022
|
$
|
-
|
$
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34,060
|
$
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(34,202
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)
|
$
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(142
|
)
|
Nine months ended
September 30,
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Three months ended
September 30,
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|||||||||||||||
2016
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2015
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2016
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2015
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|||||||||||||
Unaudited
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||||||||||||||||
Cash flows from operating activities:
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||||||||||||||||
Net loss
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$
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(68
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)
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$
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(253
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)
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(19
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)
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(20
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)
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||||||
Adjustments to reconcile net loss to net cash used in operating activities:
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||||||||||||||||
Loss on sale of fixed assets
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-
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1
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-
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-
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||||||||||||
Share-based payment
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-
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2
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-
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|||||||||||||
-
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3
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-
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-
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|||||||||||||
Changes in asset and liability items:
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||||||||||||||||
(Increase) decrease in other receivables prepaid expenses and deffered expenses
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(59
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)
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57
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10
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17
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|||||||||||
(Decrease) increase in trade payables
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(49
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)
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(159
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)
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(2
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)
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(42
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)
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||||||||
Increase (decrease) in other accounts payable and accrued liabilities
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89
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(16
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)
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11
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20
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|||||||||||
(19
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)
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(118
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)
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19
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(5
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)
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||||||||||
Net cash used in operating activities
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(87
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)
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(368
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)
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-
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(25
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)
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Cash flows from investing activities:
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||||||||||||||||
Proceeds from sale of equipment and other assets
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-
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1
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-
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-
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||||||||||||
Decrease in restricted deposits
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-
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9
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-
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-
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||||||||||||
Net cash provided by investing activities
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-
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10
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-
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-
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||||||||||||
Cash flows from financing activities:
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||||||||||||||||
Proceeds from issue of shares, net of issuance expenses
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-
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228
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-
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-
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||||||||||||
Net cash provided by financing activities
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-
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228
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-
|
-
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||||||||||||
Decrease in cash and cash equivalents
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(87
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)
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(130
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)
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-
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(25
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)
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|||||||||
Cash and cash equivalents at the beginning of the period
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124
|
334
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37
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229
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||||||||||||
Cash and cash equivalents at the end of the period
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$
|
37
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$
|
204
|
$
|
37
|
$
|
204
|
NOTE 1:- |
GENERAL
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a. |
Nature of operations:
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(i) |
Empower Healthcare Corporation ("EHC") is an Oregon based corporation that provides physician services to patients. EHC focuses on pain management services and is a pioneer in the recommendation of cannabis based products to its patients.
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(ii) |
The Hemp & Cannabis Company ("THCC") is an Oregon corporation. THCC owns and leases real estate that was used to cultivate cannabis with state licenses in both Oregon and Washington.
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(iii) |
SMAART Inc. is an Oregon corporation that provides administrative services to SMAART owned companies.
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NOTE 1:- |
GENERAL (CONTINUED)
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a. |
Nature of operations (continued):
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NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES
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NOTE 4:- |
EQUITY
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a. |
Stock Option Plan:
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Number of
options
outstanding
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Weighted average
exercise price
|
|||||||
Balance at December 31, 2015 (audited)
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271,334
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2.85
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||||||
Options forfeited
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(33,334
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)
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10.78
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|||||
Balance at September 30, 2016 (unaudited)
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238,000
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2.34
|
Grant date
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Expiry date
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Grant date fair value
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Exercise price (*)
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Number of options outstanding
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Number of options exercisable
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Average remaining contractual life
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||||||||||||||||
December 1, 2011 (*)
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November 30, 2016
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$
|
3.30
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$
|
5.73
|
2,000
|
2000
|
0.17
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||||||||||||||
August 22, 2012 (*)
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August 21, 2017
|
$
|
1.05
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$
|
2.29
|
236,000
|
236,000
|
0.89
|
||||||||||||||
238,000
|
238,000
|
(*) |
The exercise price is denominated in Canadian dollars and was translated to USD in the table above using the exchange rate on September 30, 2016.
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Issue date
|
Expiry date
|
Grant date fair value
|
Exercise
price (*)
|
Number of warrants
|
||||||||||
May 7, 2015
|
May 6, 2018
|
$
|
0.04
|
$
|
0.03
|
4,820,000
|
(*) |
The exercise price of these warrants is denominated in Canadian dollars and was translated to USD in the table above using the exchange rate as of September 30, 2016.
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NOTE 5:- |
RELATED PARTY TRANSACTIONS
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(i)
|
Empower Healthcare Corporation ("EHC") is an Oregon based corporation that provides physician services to patients. EHC focuses on pain management services and is a pioneer in the recommendation of cannabis based products to its patients.
|
(ii)
|
The Hemp & Cannabis Company ("THCC") is an Oregon corporation. THCC owns and leases real estate that was used to cultivate cannabis with state licenses in both Oregon and Washington.
|
(iii)
|
SMAART Inc. is an Oregon corporation that provides administrative services to SMAART owned companies.
|
Nine Month Period Ended
September 30,
|
Three Month Period Ended September 30,
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|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
U.S. dollars in thousands
|
||||||||||||||||
General and administrative expenses
|
$
|
71
|
$
|
214
|
$
|
20
|
$
|
25
|
||||||||
Nine months ended
September 30,
|
Three months ended
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Unaudited
|
||||||||||||||||
Expenses:
|
||||||||||||||||
General and administrative expenses
|
71
|
214
|
20
|
25
|
||||||||||||
Total expenses
|
71
|
214
|
20
|
25
|
||||||||||||
Operating loss
|
(71
|
)
|
(214
|
)
|
(20
|
)
|
(25
|
)
|
||||||||
Foreign exchange gain (loss)
|
3
|
(39
|
)
|
1
|
5
|
|||||||||||
Loss before income tax expense
|
(68
|
)
|
(253
|
)
|
(19
|
)
|
(20
|
)
|
||||||||
Income tax expense
|
-
|
-
|
-
|
-
|
||||||||||||
Net comprehensive loss
|
$
|
(68
|
)
|
$
|
(253
|
)
|
$
|
(19
|
)
|
$
|
(20
|
)
|
||||
Basic and diluted net loss per share attributable to equity holders of the parent
|
$
|
(0.00
|
)
|
$
|
(0.02
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||||
Weighted average number of ordinary shares used in computing basic and diluted net loss per share
|
17,112,021
|
14,524,816
|
17,112,021
|
17,112,021
|
Quarter ended
|
||||||||||||||||
September 30, 2016
|
June 30, 2016
|
March 31, 2016
|
December 31, 2015
|
|||||||||||||
|
U.S dollars in thousands, except per share data | |||||||||||||||
Revenues
|
$
|
-
|
-
|
-
|
-
|
|||||||||||
Net Profit (loss)
|
$
|
(19
|
)
|
(29
|
)
|
(20
|
)
|
(16
|
)
|
|||||||
Net Profit (loss) per share*
|
$
|
(0.00
|
)
|
(0.00
|
)
|
(0.00
|
)
|
(0.00
|
)
|
|||||||
*Attributable to equity holders of the Company, post share consolidation
|
September 30, 2015
|
June 30, 2015
|
March 31, 2015
|
December 31, 2014
|
|||||||||||||
U.S dollars in thousands, except per share data
|
||||||||||||||||
Revenues
|
$
|
-
|
-
|
-
|
-
|
|||||||||||
Net Profit (loss)
|
$
|
(20
|
)
|
(155
|
)
|
(78
|
)
|
(143
|
)
|
|||||||
Net Profit (loss) per share*
|
$
|
(0.00
|
)
|
(0.01
|
)
|
(0.01
|
)
|
(0.01
|
)
|
|||||||
*Attributable to equity holders of the Company, post share consolidation
|
·
|
Share-based payment transactions;
|
·
|
Impairment of financial assets; and
|
·
|
Warranty liability
|
Financial assets and liabilities | Classification |
|
Cash and cash equivalents
|
Loans and receivables
|
|
Restricted deposits
|
Loans and receivables
|
|
Other receivables
|
Loans and receivables
|
|
Trade payables
|
Other financial liabilities
|
|
Accounts payable and accrued liabilities
|
Other financial liabilities |
|
(i)
|
Interest rate risk
|
(ii)
|
Foreign currency risk
|
1. |
Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Adira Energy Ltd. (the "issuer") for the interim period ended September 30, 2016.
|
2. |
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
i) |
controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
ii) |
a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.
|
1. |
Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Adira Energy Ltd. (the "issuer") for the interim period ended September 30, 2016.
|
2. |
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
i) |
controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
ii) |
a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.
|