0001477932-21-002796 | 10-K | XBRL Viewer

INCOME TAXES (Details 2) - CAD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 2) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Deferred income tax assets
Operating losses carried forward	$ 14,295	$ 7,893	$ 1,417
Tax values of property and equipment in excess of carrying value including impairment	3,099	2,330	3,505
Deferred rent	0	0	1,762
Stock options	3,587	3,763	3,843
Financing fees and IPO-related costs	3	5	588
Lease inducements	0	0	634
Lease liability	197	23,942	0
Liabilities subject to compromise	21,454	0	5,357
Other	791	953	665
Total deferred income tax assets	43,426	38,886	17,771
Deferred income tax liabilities
Right-of-use asset	(191)	(9,444)	0
Unrealized foreign exchange gain related to intercompany advances	(8)	(109)	(212)
Deferred income tax liabilities	(199)	(9,553)	(212)
Net	43,227	29,333	17,559
Unrecognized deferred income tax asset	(43,227)	(29,333)	(17,559)
Net deferred income tax assets (liabilities)	$ 0	$ 0	$ 0

SELLING, GENERAL AND ADMINISTRATION EXPENSES

12 Months Ended

Jan. 30, 2021

18 - SELLING, GENERAL AND ADMINISTRATION EXPENSES

Included in selling, general and administration expenses are the following expenses:

	For the year ended
	January 30,			February 1,		February 2,
	2021			2020		2019
	$			$		$
Wages, salaries and employee benefits		20,222			65,288		68,324
Depreciation of property and equipment		2,399			5,411		6,904
Amortization of intangible assets		2,053			1,934		1,298
Amortization right-of-use asset		3,041			12,051		—
Impairment of property and equipment and right-of-use assets		2,561			17,780		9,960
Loss on disposal of property and equipment		—			100		151
Marketing expenses		4,693			7,282		6,248
IT expenses		3,986			4,022		3,735
Credit card fees		2,770			3,030		2,915
Professional fees		1,713			2,002		1,743
Stores supplies		2,023			5,768		5,101
Stock-based compensation		820			813		211
Recovery of provision for onerous contracts		—			—		552
Executive separation cost related to salary		—			—		1,280
Strategic review and proxy contest		—			—		3,593
ERP project termination		—			—		2,496
Government emergency wage subsidy		(4,494	)		—		—
Other selling, general and administration		4,677			9,825		11,211
		46,464			135,306		125,722

RELATED PARTY DISCLOSURES (Tables)

12 Months Ended

Jan. 30, 2021

RELATED PARTY DISCLOSURES

Summary of transactions with key management personnel

For the Year Ended

January 30,

February 1,

February 2,

2021

2020

2019

Wages, salaries ,bonus and director fees

1,895

2,784

2,706

Termination benefits

—

110

1,025

Stock-based compensation

670

669

101

Total compensation earned by key management personnel

2,565

3,563

3,832

INCOME TAXES (Details 1) - CAD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 1) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Income tax provision (recovery)
Current	$ 0	$ (1,500)	$ (187)
Deferred	0	0	5,069
Income tax recovery - effective tax rate	$ 0	$ (1,500)	$ 4,882

MANAGEMENT OF CAPITAL (Details Narrative) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019	Feb. 03, 2018
Statement [Line Items]
Current Liabilities	$ 112,178	$ 44,080
Cash in hand	30,197	$ 46,338	$ 42,074	$ 63,484
Estimate For Allowed Claims [Member]
Statement [Line Items]
Cash in hand	30,200
CCAA claims [Member]
Statement [Line Items]
Current Liabilities	$ 100,600

EARNINGS PER SHARE (Details) - CAD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
EARNINGS PER SHARE
Net loss for basic EPS	$ (55,932)	$ (31,197)	$ (33,539)
Weighted average number of shares outstanding:
Basic	26,168,848	26,056,332	25,967,836
Fully diluted	26,168,848	26,056,332	25,967,836
Net income (loss) per share: Basic	$ (2.14)	$ (1.20)	$ (1.29)
Net income (loss) per share: Diluted	$ (2.14)	$ (1.20)	$ (1.29)

SELLING GENERAL AND ADMINISTRATION EXPENSES (Details) - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
SELLING GENERAL AND ADMINISTRATION EXPENSES (Tables)
Wages, salaries and employee benefits	$ 20,222	$ 65,288	$ 68,324
Depreciation of property and equipment	2,399	5,411	6,904
Marketing Expenses	4,693	7,282	6,248
Professional fees	1,713	2,002	1,743
Credit and fees	2,770	3,030	2,915
IT expenses	3,986	4,022	3,735
Stores Supplies	2,023	5,768	5,101
Depreciation of property and equipment	2,399	5,411	6,904
Amortization of intangible assets	2,053	1,934	1,298
Amortization right-of-use asset	3,041	12,051	0
Loss on disposal of property and equipment	0	100	151
Impairment of property, equipment and right-of-use assets	2,561	17,780	9,960
Recovery of provision for onerous contracts	0	0	552
Stock-based compensation	820	813	211
Executive and employee separation costs related to salary	0	0	1,280
Strategic review and proxy contest costs	0	0	3,593
ERP project termination	0	0	2,496
Government emergency wage subsidy	(4,494)	0	0
Other selling, general and administration	4,677	9,825	11,211
Selling, general and administrative expense	$ 46,464	$ 135,306	$ 125,722

MANAGEMENT OF CAPITAL (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Cash	$ 30,197	$ 46,338
Shareholder's (deficiency) equity [Excluding Accumulated other comprehensive income]	(33,154)	22,142
Total capital under management	$ (2,957)	$ 68,480

INCOME TAXES (Tables)

12 Months Ended

Jan. 30, 2021

INCOME TAXES (Tables)

Schedule of the reconciliation of the statutory income tax rate to the effective tax rate

	For the year ended
	January 30,						February 1,						February 2,
	2021						2020						2019
	%			$			%			$			%			$
Income tax provision (recovery) — statutory rate		26.4			(14,737	)		26.8			(8,747	)		26.9			(7,700	)
Increase (decrease) in provision for income tax (recovery) resulting from:
Non-deductible items		(0.1	)		39			(0.7	)		232			(1.3	)		378
Effect of substantively enacted income tax rate changes		(0.7	)		400			(1.2	)		394			—			—
Unrecognized deferred income tax assets		(25.4	)		14,209			(25.2	)		8,232			(15.0	)		4,306
Write-down of deferred income tax assets		—			—			—			—			(18.2	)		5,194
Provision for uncertain tax assets		—			—			4.6			(1,500	)		(9.4	)		2,700
Other		(0.2	)		89			0.3			(111	)		—			4
Income tax provision (recovery) — effective tax rate		(0	)		—			4.6			(1,500	)		(17.0	)		4,882

Schedule of the breakdown of the income tax provision (recovery)

	For the Year Ended
	January 30,		February 1,			February 2,
	2021		2020			2019
	$		$			$
Income tax provision (recovery)
Current		-		(1,500	)		(187	)
Deferred		-		-			5,069
		-		(1,500	)		4,882

Schedule of deferred income tax assets and liabilities

	For the Year Ended
	January 30,			February 1,			February 2,
	2021			2020			2019

Deferred income tax assets
Operating losses carried forward		14,295			7,893			1,417
Tax values of property and equipment in excess of carrying value including impairment		3,099			2,330			3,505
Deferred rent		-			-			1,762
Stock options		3,587			3,763			3,843
Financing fees and IPO-related costs		3			5			588
Lease inducements		-			-			634
Lease liabilities		197			23,942			-
Liabilities subject to compromise		21,454			-			5,357
Other		791			953			665
Total deferred income tax assets		43,426			38,886			17,771

Deferred income tax liabilities
Right-of-use asset		(191	)		(9,444	)		-
Unrealized foreign exchange gain related to intercompany advances		(8	)		(109	)		(212	)
Total deferred income tax liabilities		(199	)		(9,553	)		(212	)
Total deferred income tax assets, net		43,227			29,333			17,559
Unrecognized deferred income tax asset		(43,227	)		(29,333	)		(17,559	)
Net deferred income tax assets		-			-			-

Schedule of deferred income tax asset

	For the Year Ended
	January 30,			February 1,			February 2,
	2021			2020			2019

Balance net, beginning of year		-			-			5,194
Deferred rent		-			(1,762	)		101
Canadian and U.S. operating losses carried forward		6,402			6,476			158
Property and equipment, including store impairment		769			(1,175	)		1,952
Stock options		(176	)		(80	)		442
Financing fees and IPO-related costs		(2	)		(583	)		(609	)
Foreign exchange gain on derivative financial instrument		-			-			(62	)
Unrealized foreign exchange gain on intercompany advances		101			103			(99	)
Right-of-use asset		9,253			(9,444	)		-
Lease liabilities		(23,745	)		23,942			-
Lease inducement		-			(634	)		120
Unrecognized deferred income tax asset		(13,894	)		(11,774	)		(7,770	)
Provisions for onerous contracts		-			(5,357	)		544
Liabilities subject to compromise		21,454			-			-
Other		(162	)		288			29
Deferred income tax assets net, end of year		-			-			-

FINANCE COSTS

12 Months Ended

Jan. 30, 2021

16 - FINANCE COSTS

	For the Year Ended
	January 30,		February 1,			February 2,
	2021		2020			2019
	$		$			$
Accretion on provisions		—		—			251
Interest and penalty on provision for uncertain tax position		—		(250	)		1,300
Interest on lease liabilities		3,229		6,962			—
Other finance costs		44		39			63
		3,273		6,751			1,614

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	12 Months Ended
	Jan. 30, 2021 USD ($)
Statement [Line Items]
Leases of office equipment	$ 5
January 1, 2019 [Member]
Statement [Line Items]
Description for redemption of points earned under loyalty and reward program	Under the old program, points were redeemed for free tea or free beverages, depending on the number of points a customer has obtained over a limited collection period, typically a three-month period. Free tea offers were issued at the end of each collection period and redeemable within 60 days thereafter. Free beverage offers were issued at the end of the calendar collection period and redeemable within 60 days thereafter.
Computer software [member]
Statement [Line Items]
Amortization percentage, rate	30.00%

LEASE LIABILITIES (Tables)

12 Months Ended

Jan. 30, 2021

Schedule of right-of-use assets and lease liabilities

	Right-of-Use			Lease
	Assets			Liability
	$			$
Balance, February 1, 2020		35,082			88,664
Additions		1,987			1,987
Amortization expense		(3,041	)		—
Impairment of right-of-use assets		(26,793	)		—
Gain on modification of lease liability		(6,684	)		(81,805	)
Loss on disposal		(397	)		—
Interest expense		—			3,230
Payments		—			(6,007	)
Transfer to liabilities subject to compromise					(6,207	)
CTA		503			889
Balance, January 30, 2021		657			751

Presented as:
Current		—			396
Non-Current		—			355

Schedule of maturity analysis of future

	February 1,
	2020
	$
Within one year		428
After one year but no more than five years		375
More than five years		—
		803

Schedule of impairment

Stores

permanently

closed $

Stores

that remain

open $

Total $

Right-of-use assets

24,433

2,360

26,793

DEFERRED REVENUE

12 Months Ended

Jan. 30, 2021

12 - DEFERRED REVENUE

	January 30,		February 1,
	2021		2020
	$		$
Gift cards liability		4,642		4,899
Loyalty program		1,548		1,953
Subscription Box Liability		890		0
		7,080		6,852

During the year, the Company recorded gift card breakage income of $74 [February 1, 2020 - $1,294, February 2, 2019 - $242]. Gift card breakage is included in sales in the consolidated statement of loss.

RELATED PARTY DISCLOSURES (Details) - Key Management Personnel [Member] - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Wages, salaries ,bonus and director fees	$ 1,895	$ 2,784	$ 2,706
Termination benefits	0	110	1,025
Stock-based compensation	670	669	101
Total compensation earned by key management personnel	$ 2,565	$ 3,563	$ 3,832

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jan. 30, 2021

Schedule of property and equipment

	Leasehold			Furniture and			Computer
	improvements			equipment			hardware			Total
	$			$			$			$
Cost
Balance, February 2, 2019		84,142			13,910			5,878			103,930
Acquisitions		746			211			75			1,032
Disposals		—			(131	)		—			(131	)
Cumulative translation adjustment		285			32			11			328
Balance, February 1, 2020		85,173			14,022			5,964			105,159
Acquisitions		237			150			47			434
Disposals		(78,001	)		(11,987	)		(4,251	)		(94,239	)
Cumulative translation adjustment		712			49			12			773
Balance, January 30, 2021		8,121			2,234			1,772			12,127

	Leasehold			Furniture and			Computer
	improvements			equipment			hardware			Total
	$			$			$			$
Accumulated depreciation and impairment
Balance, February 2, 2019		65,874			10,001			4,267			80,142
Depreciation		4,032			854			525			5,411
Impairment		1,587			—			—			1,587
Disposals		—			(31	)		—			(31	)
Cumulative translation adjustment		278			29			6			313
Balance, February 1, 2020		71,771			10,853			4,798			87,422
Depreciation		1,582			517			300			2,399
Impairment		10,665			1,990			512			13,167
Disposals		(78,001	)		(11,782	)		(4,084	)		(93,867	)
Cumulative translation adjustment		573			93			31			697
Balance, January 30, 2021		6,590			1,671			1,557			9,818

Leasehold

Furniture and

Computer

improvements

equipment

hardware

Total

Net Carrying Value

Balance, February 1, 2020

13,402

3,169

1,166

17,737

Balance, January 30, 2021

1,531

563

215

2,309

RESTRUCTURING PLAN ACTIVITIES, NET (Details Narrative) $ in Thousands	12 Months Ended
	Jan. 30, 2021 CAD ($)
Gain on modification of lease	$ 75,100
Reduction in right-of-use assets	6,700
Reduced in lease liabilities	$ 81,800

INTANGIBLE ASSETS

12 Months Ended

Jan. 30, 2021

9 - INTANGIBLE ASSETS

	Computer
	software			Other		Total
	$			$		$
Cost
Balance, February 2, 2019		11,915			101		12,016
Acquisitions		2,594			—		2,594
Cumulative translation adjustment		2			—		2
Balance, February 1, 2020		14,511			101		14,612
Acquisitions		479			—		479
Disposals		(2,418	)		—		(2,418	)
Cumulative translation adjustment		(54	)		—		(54	)
Balance, January 30, 2021		12,518			101		12,619

	Computer
	software			Other			Total
	$			$			$
Accumulated amortization
Balance, February 2, 2019		6,336			2			6,338
Amortization		1,934			—			1,934
Cumulative translation adjustment		3			(2	)		1
Balance, February 1, 2020		8,273			—			8,273
Amortization		2,053			—			2,053
Disposals		(1,628	)		—			(1,628	)
Cumulative translation adjustment		(8	)		—			(8	)
Balance, January 30, 2021		8,690			—			8,690

Computer

software

Other

Total

Net Carrying Value

Balance, February 1, 2020

6,238

101

6,339

Balance, January 30, 2021

3,828

101

3,929

Amortization expense is reported in the consolidated statement of loss and comprehensive loss under selling, general and administration expenses (Note 18).

TRADE AND OTHER PAYABLES (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Trade payable and accrued liabilities	$ 1,891	$ 16,582
Income taxes payable	1,244	1,244
Wages, salaries and employee benefits payable	1,017	2,968
Total	$ 4,152	$ 20,794

MANAGEMENT OF CAPITAL

12 Months Ended

Jan. 30, 2021

MANAGEMENT OF CAPITAL

24 - MANAGEMENT OF CAPITAL

The Company’s capital is composed of cash and shareholders’ (deficiency) equity as follows:

	January 30,			February 1,
	2021			2020
	$			$
Cash		30,197			46,338
Shareholder's (deficiency) equity [Excluding Accumulated other comprehensive income]		(33,154	)		22,142
Total capital under management		(2,957	)		68,480

The Company’s objectives in managing capital are to ensure sufficient liquidity to pursue its organic growth, to establish a strong capital base so as to maintain investor, creditor and market confidence and to provide an adequate return to shareholders.

The Company’s primary uses of capital are to finance non‑cash working capital and transformative investments in infrastructure and information technology. Furthermore, in light of implementing the Restructuring Plan, the Company expects to use cash on hand to pay for professional fees and for the settlement of obligations upon acceptance, if any, of a plan of arrangement that will be presented to creditors.

The Company traditionally funded its requirements from its cash on hand and internally-generated cash flows. The Company does not have any long-term financing debt (other than lease liabilities). As at January 30, 2021, the Company recognized $100.6 million of liabilities subject to compromise as current liabilities as part of the CCAA claims process described in note 13. The timing and quantum of claims that will be allowed by the Court and ultimately paid to the Company’s creditors is currently not possible to determine.

The Board does not establish quantitative return on capital criteria for management, but rather promotes year-over-year sustainable profitable growth. The Company is not subject to any externally imposed capital requirements.

EARNINGS PER SHARE (Tables)

12 Months Ended

Jan. 30, 2021

EARNINGS PER SHARE

Schedule of reconciliation of basic and diluted EPS

	For the year ended
	January 30,			February 1,			February 2,
	2021			2020			2019
	$			$			$
Net loss for basic EPS		(55,932	)		(31,197	)		(33,539	)
Weighted average number of shares outstanding:
Basic		26,168,848			26,056,332			25,967,836
Fully diluted		26,168,848			26,056,332			25,967,836
Net loss per share:
Basic		(2.14	)		(1.20	)		(1.29	)
Fully diluted		(2.14	)		(1.20	)		(1.29	)

ACCOUNTS AND OTHER RECEIVABLES

12 Months Ended

Jan. 30, 2021

6 - ACCOUNTS AND OTHER RECEIVABLES

	January 30,		February 1,
	2021		2020

Credit card and cash clearing receivables		706		849
Trade receivables		1,232		2,072
Loan to a Company controlled by one of the Company executive employees				2,026
Other receivables		4,219		1,115
		6,157		6,062

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jan. 30, 2021

Cash

Cash on the consolidated balance sheet comprises cash at banks and on hand.

Trade receivables

Trade receivables primarily represent amounts due from wholesale customers and are accounted for at amortized cost, less any provision for doubtful accounts which is based on management’s best estimate of expected credit losses.

Government assistance

The Company qualifies for the CEWS under the COVID-19 Economic Response Plan of the Government of Canada. Government assistance, including wage subsidies, is recognized when there is a reasonable assurance that the assistance will be received and that the Company will comply with all relevant conditions. Government assistance related to incurred expenses is recorded as a reduction of the related expenses.

Inventory valuation

Inventories are measured at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. Costs include the cost of purchase and transportation costs that are directly incurred to bring the inventories to their present location, and duty. Net realizable value is the estimated selling price of inventory in the ordinary course of business, less any estimated selling costs. Cost also includes realized gains and losses on forward contracts designated as cash flow hedges of U.S. inventory purchases, if any.

Property and equipment

Property and equipment are initially recorded at cost and are depreciated over their useful economic life. Cost includes expenditures that are directly attributable to the acquisition of the asset, including any costs directly related to bringing the asset to a working condition for its intended use. The residual values, useful lives and methods of depreciation of property and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. All repair and maintenance costs are recognized in net loss as incurred.

Depreciation of an asset begins once it becomes available for use. Depreciation is charged to income on the following bases:

Furniture and equipment		20% declining balance
Computer hardware		30% declining balance

Leasehold improvements are depreciated on a straight‑line basis over the lesser of the useful economic life and the lease term.

Any gain or loss arising on the disposal or derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of net loss when the asset is derecognized.

Intangible assets

Intangible assets consist of computer software, trademarks and patents.

Intangible assets are initially recorded at cost. Intangible assets with finite lives are amortized over their useful economic life. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the consolidated statement of loss as the expense category that is consistent with the function of the intangible assets.

Any gain or loss arising on the disposal or derecognition of the intangible asset (calculated as the difference between the net disposal proceeds and the carrying amount of the intangible asset) is included in our consolidated statement of loss when the intangible asset is derecognized.

When computer software is not an integral part of a related item of computer hardware, the software is treated as an intangible. Computer software is amortized on the basis of its estimated useful life using the declining method at the rate of 30%.

Leases assets

On February 3, 2019, the Company adopted IFRS 16, “Leases” using the modified retrospective method.

Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are initially measured at cost, which includes the initial amount of lease liabilities adjusted for any initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

The right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term. In addition the right-of-use assets are subject to impairment and adjusted for any remeasurement of lease liabilities, to the extent that there is a balance of right-of-use asset at the time the change in lease liability occurs. Amortization expense is recorded in selling, general and administrative expense.

Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. Interest accretion is recorded as interest expense in finance costs. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. The Company has elected to apply the practical expedient to not separate the lease component and its associated non-lease component.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value (i.e., below US $5,000). Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

Impairment

i.	Impairment of financial assets

The Company applies the expected credit loss model to its trade receivables. It requires a credit loss to be reflected in profit and loss immediately after an asset or receivable is acquired and subsequent changes in expected credit losses at each reporting date reflecting the change in credit risk. The Company applies the simplified approach for trade receivables and calculates expected credit losses based on lifetime expected credit losses.

ii.

Impairment of non‑financial assets

The Company assesses all non-financial assets, at each reporting date, for indications that the carrying amount may not be recoverable. If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash‑generating unit’s (“CGU”) fair value less costs of disposal and its value in use. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value of money. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or corporate assets. The discount rate applied to an asset or CGU is the weighted average cost of capital (“WACC”). Management considers factors such as risk-free rate, equity risk premium, size premium, specific business risk premium and cost of debt to derive the WACC.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover the lease term.

Based on the management of operations, the Company has defined each of the commercial premises in which it carries out its activities as a CGU, although where appropriate these premises are aggregated at a district or regional level to form a CGU. For non-financial assets that can be reasonably and consistently allocated to individual stores, the store level is used as the CGU for impairment testing. For all other non-financial assets, the corporate level is used as the group of CGUs.

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment may no longer exist or may have decreased and if there has been a change in the assumptions used to determine the asset’s recoverable amount. The reversal is limited to the extent that an asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized. Such reversal is recognized in the consolidated statement of loss.

Provisions

Provisions are recognized when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in our consolidated statement of loss, net of any reimbursement. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre‑tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Liabilities subject to Compromise

As a result of the Initial Order obtained on July 8, 2020 and subsequent amendments (Note 1), the payment of liabilities owing as of July 8, 2020 is stayed, and the outstanding liabilities, as well as any additional outstanding claims by creditors are subject to compromise pursuant to a plan of arrangement that is expected to be presented to creditors. Obligations for goods and services provided to the Company after the filing date of July 8, 2020 are discharged based on negotiated terms and conditions.

Liabilities subject to compromise represent the liabilities that will ultimately be subject to the plan of arrangement (“allowed claims”) and compromise to the Company’s creditors, and include disclaimed leases, trade and other payables, and severance costs, as further described in note 13. Trade and other payables, and severance costs represent the Company’s legal obligation. Disclaimed leases are measured at the Company’s best estimate of liabilities that will ultimately be subject to the plan of arrangement (“allowed claims”). The measurement of liabilities subject to compromise is measured at the reporting date based on an analysis of the nature and carrying value of the underlying liabilities, proof of claim, as well as the stage of advancement of the claims identification, resolution and barring process.

Liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determination of secured status of certain claims, the determination as to the value of any collateral securing claims, proof of claims or other events, and is therefore subject to significant estimation uncertainty. Changes to the provision in future periods may be material and will be recorded through earnings.

Share capital

i.	Common shares

Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares are recognized as a deduction from equity, net of any tax effects.

Common shares are classified as equity if they are non‑redeemable or redeemable only at the Company’s option, and any dividends are discretionary. Dividends thereon are recognized as distributions within equity on approval by the Company’s Board of Directors.

Stock-based compensation

The Company has a stock option plan for employees and directors from which options to purchase common shares are issued (the “Plan”). Options may not be granted with an exercise price of less than the fair value of the underlying shares at the grant date. The awards have no cash settlement alternatives. The vesting requirements are typically service‑based and the options normally have a contractual life of seven years.

The fair value of stock‑based compensation awards granted to employees is measured at the grant date using the Black Scholes option pricing model. Measurement inputs include the share price of the underlying shares on the measurement date, the exercise price of the option, the expected volatility (based on weighted average historical volatility of comparable companies adjusted for changes expected based on publicly available information), the weighted average expected life of the option (based on historical experience), expected dividends, and the risk‑free interest rate (based on government bonds).

The value of the compensation expense is recognized over the vesting period of the stock options as an expense included in selling and general administration expenses, with a corresponding increase to contributed surplus in equity. The amount recognized as an expense is adjusted to reflect the Company’s best estimate of the number of awards that will ultimately vest. No expense is recognized for awards that do not ultimately vest.

Any consideration paid by plan participants on the exercise of stock options and the previously recognized compensation cost of the options exercised included in contributed surplus are credited to share capital.

Under the Company’s 2015 Omnibus Equity Incentive Plan (the “2015 Omnibus Plan”), selected employees and directors are granted RSUs where each RSU has a value equal to one common share. The compensation expense is recorded at the fair value of the Company’s common shares at the grant date over the vesting period (generally one to three years) with a corresponding credit to contributed surplus for equity-settled RSUs and a corresponding credit to a liability for cash-settled RSUs. RSUs may be settled in shares, cash, or a combination of cash or shares upon vesting at the discretion of the Company. Cash settled RSUs are revalued at each reporting date to reflect their fair value at that date. Fair value is determined using the closing price of the Company’s common shares on the NASDAQ Global Market prior to the date of the grant. The Company has not issued any cash settled awards to date.

Revenue recognition

Revenue is recognized when control of goods has been transferred at the amount of consideration to which the Company expects to be entitled. Revenue is recognized on e-commerce sales when merchandise is delivered to the consumer. Revenue from retail sales is recorded upon delivery to the customer. Revenues are recorded net of discounts, rebates, estimated returns, sales taxes and amounts deferred related to the issuance of Frequent Steeper points.

Revenue from the Company's wholesale business is recognized upon receipt of products by the customer. Wholesale revenue is recorded net of estimates of returns, discounts, operational chargebacks, and certain advertising allowances. Estimates for operational chargebacks are based on actual customer notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company's historical estimates of these amounts have not differed materially from actual results.

Gift card breakage

Gift cards sold are recorded as deferred revenue and revenue is recognized at the time of redemption or in accordance with the Company’s accounting policy for breakage. Breakage income represents the estimated value of gift cards that is not expected to be redeemed by customers and is determined in proportion to the pattern of rights exercised by the customer. Gift card breakage is included in sales in the consolidated statement of loss.

ii.

Loyalty program

The Frequent Steeper loyalty and rewards program allows customers to earn points when they purchase products in the Company’s retail stores and on the Company’s website. The Company introduced a new Loyalty program on January 1, 2019 that enhanced some features and removed expiry of points. Under the old program, points were redeemed for free tea or free beverages, depending on the number of points a customer has obtained over a limited collection period, typically a three-month period. Free tea offers were issued at the end of each collection period and redeemable within 60 days thereafter. Free beverage offers were issued at the end of the calendar collection period and redeemable within 60 days thereafter.

The new program launched on January 1, 2019, allows customers to earn points when they purchase products at the Company’s retail stores and on the Company’s website. Points are converted into offers to receive loose-leaf teas which must be redeemed within 60 days. Free beverage offers are issued once a customer has purchased 10 beverages which must be redeemed within 60 days.

Consideration is allocated between the loyalty program awards and the goods on which the awards were earned, based on their relative stand-alone selling prices. The fair value of Frequent Steeper points and offers are determined based on the estimated selling price of the loose-leaf tea, net of points and offers we expect will not be redeemed. The fair value of beverage offers is determined based on the estimated selling price of the beverage, net of beverage offers that are not expected to be redeemed. The relative selling price of points and offers issued are recorded as deferred revenue. Offers for loose-leaf tea and beverage offers are recognized as revenue on the earlier of redemption and expiry. On an ongoing basis, the Company monitors historical redemption rates. Frequent Steeper redemptions are included with total sales in our consolidated statement of net loss.

iii. Subscription box

Revenue is recognized at a point in time, which is upon delivery of subscription boxes, as it meets the criteria to satisfy the performance obligation. Deferred revenue is recognized for consideration received in advance of the delivery of subscription boxes.

Finance income

Interest income is recognized as interest accrues using the effective interest method.

Income taxes

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in our consolidated statement of loss except to the extent that they relate to items recognized directly in equity or in other comprehensive loss.

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered or paid. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. 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.

The Company uses the liability method of accounting for deferred income taxes, which requires the establishment of deferred tax assets and liabilities for all temporary differences caused when the tax bases of assets and liabilities differ from their carrying amounts reported in the consolidated financial statements. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the temporary differences when they reverse, based on tax rates that have been enacted or substantively enacted at the end of the reporting period. The Company recognizes deferred income tax assets for unused tax losses and deductible temporary differences only to the extent that, in management’s opinion, it is probable that future taxable income will be available against which they can be utilized. Deferred income tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority and the Company intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

Earnings per share

Basic earnings per share is calculated using the weighted average number of shares outstanding during the year.

The diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to include additional shares issued from the assumed conversion of preferred shares and the exercise of stock options and RSUs, if dilutive. For stock options, the number of additional shares is calculated by assuming that the proceeds from such exercises, as well as the amount of unrecognized stock-based compensation which is considered to be assumed proceeds, are used to purchase common shares at the average market price during the reporting period.

Financial instruments

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. A financial asset or liability is recognized initially (at settlement date) at its fair value plus, in the case of a financial asset or liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the instrument. Financial assets and liabilities carried at fair value through profit or loss are initially recognized at fair value and transaction costs are expensed in the consolidated statements of loss.

After initial recognition, financial assets are measured at amortized cost or fair value. Where assets are measured at fair value, gains and losses are either recognized entirely in profit or loss (“FVTPL”) or recognized in other comprehensive income (“FVOCI”).

The Company classifies its financial assets and liabilities according to their characteristics and management's choices and intentions related thereto for the purposes of ongoing measurement.

Classifications that the Company has used for financial assets include:

	(a)	Amortized Cost – non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. This includes trade receivables and the loan to a Company controlled by one of the Company’s executive employees, and these are recorded at amortized cost with gains and losses recognized in net income in the period that the asset is no longer recognized or becomes impaired; and

	(b)	FVTPL – financial assets which are classified as fair value through profit and loss. This includes cash and derivative financial instruments

Classifications that the Company has used for financial liabilities include:

(a)

Amortized cost – non-derivative financial liabilities measured at amortized cost with gains and losses recognized in net loss in the period that the liability is no longer recognized. This includes Trade and other payables

Foreign currency translation

Revenues, expenses and non-monetary assets and liabilities denominated in foreign currencies are recorded at the rate of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing at the balance sheet date. Unrealized and realized translation gains and losses are reflected in our statement of loss.

The assets and liabilities of the Company’s U.S. wholly owned subsidiary, whose functional currency is the U.S. dollar, are translated into Canadian dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at average exchange rates for the year. Differences arising from the exchange rate changes are included in OCI in the cumulative translation account.

part of the net investment in the foreign operation, are recognized in other OCI in the cumulative translation account and reclassified from equity to our consolidated statement of loss on disposal of the net investment.

INVENTORIES (Tables)

12 Months Ended

Jan. 30, 2021

INVENTORIES (Tables)

Schedule of Inventory

	January 30,		February 1,
	2021		2020
	$		$
Finished goods		17,478		18,590
Goods in transit		3,123		2,059
Packaging		2,867		1,714
		23,468		22,363

SEGMENT INFORMATION

12 Months Ended

Jan. 30, 2021

SEGMENT INFORMATION

22 - SEGMENT INFORMATION

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses. As a result of the Restructuring Plan which led to the closure of all but 18 retail stores, the CODM has changed the way in which they evaluate the business. The Company has reviewed its operations and determined that each its operating segments are geographic components. The Company has concluded that it has two operating segments, Canada and the U.S., that derive their revenues from the online, retail and wholesale sale of tea, tea accessories and food and beverages. The Company’s Chief Executive and Brand Officer and President, Chief Financial and Operations Officer (the chief operating decision makers or “CODM”) make decisions about resources to be allocated to the segments and assesses performance, and for which discrete financial information is available. In the prior year the operating segments were the retail premises, and the reportable segments were Canada and US. As a result, there is no impact on prior period information as reportable segments were previously Canada and US.

The Company derives revenue from the following products:

	For the year ended
	January 30,		February 1,		February 2,
	2021		2020		2019
	$		$		$
Tea		103,620		148,846		152,761
Tea accessories		16,255		34,003		44,436
Food and beverages		1,811		13,613		15,556
		121,686		196,462		212,753

Property and equipment, right-of-use assets and intangible assets by country are as follows:

	January 30,		February 1,
	2021		2020
	$		$
Canada		6,895		52,116
US		-		7,042
Total		6,895		59,158

Results from operating activities before corporate expenses per country are as follows:

For the year ended

January 30, 2021

Canada

Consolidated

Sales

92,537

29,159

121,686

Cost of sales

55,902

16,051

71,953

Gross profit

36,635

13,098

49,733

Selling, general and administration expenses (allocated)

18,923

4,467

23,390

Impairment of property and equipment and right-of-use assets

2,561

—

2,561

Results from operating activities before corporate expenses

15,151

8,631

23,782

Selling, general and administration expenses (non-allocated)

20,513

Restructuring plan activities, net

56,327

Results from operating activities

(53,058

)

Finance costs

3,273

Finance income

(399

)

Net loss before income taxes

(55,932

)

For the year ended

February 1, 2020

Canada

Consolidated

Sales

152,892

43,570

196,462

Cost of sales

68,958

18,928

87,886

Gross profit

83,934

24,642

108,576

Selling, general and administration expenses (allocated)

65,536

19,520

85,056

Impairment of property and equipment and right-of-use assets

12,087

5,693

17,780

Results from operating activities before corporate expenses

6,311

(571

)

5,740

Selling, general and administration expenses (non-allocated)

32,470

Results from operating activities

(26,730

)

Finance costs

6,751

Finance income

(784

)

Net loss before income taxes

(32,697

)

For the year ended

February 2, 2019

Canada

Consolidated

Sales

169,430

43,323

212,753

Cost of sales

89,604

25,170

114,774

Gross profit

79,826

18,153

97,979

Selling, general and administration expenses (allocated)

57,901

18,175

76,076

Impairment of property and equipment and right-of-use assets

7,720

2,240

9,960

Impact of onerous contracts

2,034

(1,482

)

552

Results from operating activities before corporate expenses

12,171

(780

)

11,391

Selling, general and administration expenses (non-allocated)

39,134

Results from operating activities

(27,743

)

Finance costs

1,614

Finance income

(700

)

Net loss before income taxes

(28,657

)

FINANCIAL RISK MANAGEMENT (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019	Feb. 03, 2018
Statement [Line Items]
Trade and other payables	$ 4,200	$ 20,400
Purchase obligations	14,100		$ 11,500
Purchase obligations, Advances	6,800
Cash in hand	30,197	$ 46,338	$ 42,074	$ 63,484
Estimate For Allowed Claims [Member]
Statement [Line Items]
Cash in hand	$ 30,200
Change in assets and liabilities due currency translation, percentage	5.00%
Increase (decrease) in net loss due to change in exchange rate	$ 287

LEASE LIABILITIES (Details 2) $ in Thousands	12 Months Ended
LEASE LIABILITIES (Details 2) $ in Thousands	Jan. 30, 2021 CAD ($)
Within one year	$ 428
After one year but not more than five years	375
More than five years	0
Cash flow from lease liability	$ 803

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

12 Months Ended

Jan. 30, 2021

5 - SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the consolidated financial statements in conformity with IFRS requires the Company to make judgments, apart from those involving estimation, in applying accounting policies that affect the recognition and measurement of assets, liabilities, revenues, and expenses. Actual results may differ from the judgments made by the Company. Information about judgments that have the most significant effect on recognition and measurement of assets, liabilities, revenues, and expenses as well as information about significant estimates are discussed in the following section.

Key sources of estimation uncertainty

Liabilities subject to compromise

As a result of the termination of leases pursuant to the Restructuring Plan, included in liabilities subject to compromise is a liability related to disclaimed leases of $75.3 million, determined at the reporting date based on an analysis of the nature and carrying value of the underlying liabilities, proof of claim, as well as well as the stage of advancement of the claims identification, resolution and barring process.

Liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determination of secured status of certain claims, the determination as to the value of any collateral securing claims, proof of claims or other events, and is therefore subject to significant estimation uncertainty, as proceedings are in a preliminary stage. Changes to the provision in future periods may be material and will be recorded through earnings.

Recoverability and impairment of non-financial assets

The temporary store closures as a result of COVID-19, as well as the permanent closure of a majority of our retail stores resulting from the Restructuring Plan, and the related reduction in operating income during fiscal 2020 are considered to be indicators of impairment and the Company performed an assessment of recoverability for the property and equipment and right-of-use assets associated with its retail locations.

Key judgments in applying accounting principles

Estimating the incremental borrowing rate of leases

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity and asset-specific estimates (such as the subsidiary’s stand-alone credit rating).

Critical judgements in applying accounting policies

Going concern uncertainty

In assessing whether the going concern assumption is appropriate and whether there are material uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern, management must estimate future cash flows for a period of at least twelve months following the end of the reporting period by considering relevant available information about the future. In addition, management must make assumptions about what actions it will take to right-size the business. Given that it is difficult to adequately predict future cash flows given the inherent uncertainties concerning the formal restructuring process and the impact of the COVID-19 pandemic, management has concluded that there are material uncertainties related to events or conditions that raise substantial doubt upon the Company’s ability to continue as a going concern for at least the next twelve months.

ii.

Impairment of non‑financial assets

Management is required to make significant judgments in determining if individual commercial premises in which it carries out its activities are individual CGUs, or if these units should be aggregated at a district or regional level to form a CGU. The significant judgments applied by management in determining if stores should be aggregated in a given geographic area to form a CGU include the determination of expected customer behavior, the allocation basis of e-commerce sales to CGUs, and whether customers could interchangeably shop in any of the stores in a given area and whether management views the cash inflows of the stores in the group as interdependent.

iii.

Income taxes

The Company may be subject to audits related to tax risks, and uncertainties exist with respect to the interpretation of tax regulations, changes in tax laws, and the amount and timing of future taxable income. Differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and income tax expense already recorded. The Company establishes provisions if required, based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the entity and the responsible tax authority, which may arise on a wide variety of issues.

iv.

Determination of the lease term of leases with renewal options

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has the option, under some of its leases to lease the assets for additional terms of one to five years. The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal, including store performance, expected future performance and past business practice. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business strategy).

SHARE CAPITAL (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Share Capital - 26,234,582 Common shares (February 1, 2020 - 26,086,162)	$ 113,167	$ 112,843

INCOME TAXES

12 Months Ended

Jan. 30, 2021

17 - INCOME TAXES

A reconciliation of the statutory income tax rate to the effective tax rate is as follows:

	For the year ended
	January 30,						February 1,						February 2,
	2021						2020						2019
	%			$			%			$			%			$
Income tax provision (recovery) — statutory rate		26.4			(14,737	)		26.8			(8,747	)		26.9			(7,700	)
Increase (decrease) in provision for income tax (recovery) resulting from:
Non-deductible items		(0.1	)		39			(0.7	)		232			(1.3	)		378
Effect of substantively enacted income tax rate changes		(0.7	)		400			(1.2	)		394			—			—
Unrecognized deferred income tax assets		(25.4	)		14,209			(25.2	)		8,232			(15.0	)		4,306
Write-down of deferred income tax assets		—			—			—			—			(18.2	)		5,194
Provision for uncertain tax assets		—			—			4.6			(1,500	)		(9.4	)		2,700
Other		(0.2	)		89			0.3			(111	)		—			4
Income tax provision (recovery) — effective tax rate		(0	)		—			4.6			(1,500	)		(17.0	)		4,882

A breakdown of the income tax provision (recovery) on the consolidated statement of loss is as follows:

	For the Year Ended
	January 30,		February 1,			February 2,
	2021		2020			2019
	$		$			$
Income tax provision (recovery)
Current		-		(1,500	)		(187	)
Deferred		-		-			5,069
		-		(1,500	)		4,882

In fiscal 2018, in connection with a Canada Revenue Agency transfer pricing audit, the Company recorded a provision of $4.0 million comprised of $2.7 million and $1.3 million for taxes and interest, respectively. In fiscal 2019 the Company revised its estimate for this uncertain tax position to $1.2 million and $1.0 million for taxes and interest, respectively. In 2020, the Company further revised its estimate for this uncertain tax position to $359 for interest. This is classified in trade and other payables within liabilities subject to compromise (note 13).

The tax effects of temporary differences and net operating losses that give rise to deferred income tax assets and lease liabilities are as follows:

	For the Year Ended
	January 30,			February 1,			February 2,
	2021			2020			2019

Deferred income tax assets
Operating losses carried forward		14,295			7,893			1,417
Tax values of property and equipment in excess of carrying value including impairment		3,099			2,330			3,505
Deferred rent		-			-			1,762
Stock options		3,587			3,763			3,843
Financing fees and IPO-related costs		3			5			588
Lease inducements		-			-			634
Lease liabilities		197			23,942			-
Liabilities subject to compromise		21,454			-			5,357
Other		791			953			665
Total deferred income tax assets		43,426			38,886			17,771

Deferred income tax liabilities
Right-of-use asset		(191	)		(9,444	)		-
Unrealized foreign exchange gain related to intercompany advances		(8	)		(109	)		(212	)
Total deferred income tax liabilities		(199	)		(9,553	)		(212	)
Total deferred income tax assets, net		43,227			29,333			17,559
Unrecognized deferred income tax asset		(43,227	)		(29,333	)		(17,559	)
Net deferred income tax assets		-			-			-

As at January 30, 2021, the Company’s Canadian operations have accumulated losses amounting to $32.5 million [February 1, 2020 — $20.2 million; February 2, 2019 — $12.0 million], which begin to expire in 2039. As at January 30, 2021, the Company’s U.S. subsidiary has accumulated losses amounting to US$26.6 million [February 1, 2020 — US$17.4 million; February 2, 2019 — US$13.9 million], of which US$13.9 million expire during the years ending in 2033 to 2037. The remaining accumulated losses amounting to US$12.7 million have an indefinite carry forward period.

Based upon the projections for future taxable income management believes it is no longer probable the Company will realize the benefits of these operating tax losses carried forward and other deductible temporary differences. Therefore, a full valuation allowance of $43,227 was recorded against the net deferred income tax asset.

The changes in the net deferred income tax asset were as follows for the fiscal year:

	For the Year Ended
	January 30,			February 1,			February 2,
	2021			2020			2019

Balance net, beginning of year		-			-			5,194
Deferred rent		-			(1,762	)		101
Canadian and U.S. operating losses carried forward		6,402			6,476			158
Property and equipment, including store impairment		769			(1,175	)		1,952
Stock options		(176	)		(80	)		442
Financing fees and IPO-related costs		(2	)		(583	)		(609	)
Foreign exchange gain on derivative financial instrument		-			-			(62	)
Unrealized foreign exchange gain on intercompany advances		101			103			(99	)
Right-of-use asset		9,253			(9,444	)		-
Lease liabilities		(23,745	)		23,942			-
Lease inducement		-			(634	)		120
Unrecognized deferred income tax asset		(13,894	)		(11,774	)		(7,770	)
Provisions for onerous contracts		-			(5,357	)		544
Liabilities subject to compromise		21,454			-			-
Other		(162	)		288			29
Deferred income tax assets net, end of year		-			-			-

RESTRUCTURING PLAN ACTIVITIES NET (Details) $ in Thousands	12 Months Ended
RESTRUCTURING PLAN ACTIVITIES NET (Details) $ in Thousands	Jan. 30, 2021 CAD ($)
Gain on modification of lease liabilities	$ (75,121)
Disclaimed leases	76,281
Loss on disposal of property and equipment and right-of-use assets	37,399
Trade and other payables	4,991
Store closure related costs	4,158
Severance costs	4,840
Professional fees	2,840
Loss on disposal of property and equipment, right-of-use assets and intangible	1,559
Interest and penalties related to unpaid occupancy charges	1,282
Restructuring plan activities, net	$ 56,327

LEASE LIABILITIES (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Variable lease payments	$ 985
Expenses related to leases of low-value assets	18
Impairment of right-of-use assets	26,793	$ 16,193	$ 0
Canada Segment [Member]
Statement [Line Items]
Impairment of right-of-use assets	20,804		0
U. S. Segment [Member]
Statement [Line Items]
Impairment of right-of-use assets	$ 5,989		$ 0

SEGMENT INFORMATION (Details 2) - CAD ($) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details 2) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Sales	$ 121,686	$ 196,462	$ 212,753
Cost of sales	71,953	87,886	114,774
Gross profit	49,733	108,576	97,979
Results from operating activities	(53,058)	(26,730)	(27,743)
Net Income (loss) before income taxes	(55,932)	(32,697)	(28,657)
Operating Segments [Member] \| Consolidated Segments [Member]
Statement [Line Items]
Sales	121,686	196,462	212,753
Cost of sales	71,953	87,886	114,774
Gross profit	49,733	108,576	97,979
Selling, general and administration expenses (allocated)	23,390	85,056	76,076
Impairment of property, equipment and right-of-use assets	2,561	17,780	9,960
Impact on onerous contracts			552
Results from operating activities before corporate expenses	23,782	5,740	11,391
Selling, general and administration expenses (non-allocated)	20,513	32,470	39,134
Restructuring plan activities, net	56,327
Results from operating activities	(53,058)	(26,730)	(27,743)
Finance costs	3,273	6,751	1,614
Finance income	(399)	(784)	(700)
Net Income (loss) before income taxes	(55,932)	(32,697)	(28,657)
Operating Segments [Member] \| Canada Segment [Member]
Statement [Line Items]
Sales	92,537	152,892	169,430
Cost of sales	55,902	68,958	89,604
Gross profit	36,635	83,934	79,826
Selling, general and administration expenses (allocated)	18,923	65,536	57,901
Impairment of property, equipment and right-of-use assets	2,561	12,087	7,720
Impact on onerous contracts			2,034
Results from operating activities before corporate expenses	15,151	6,311	12,171
Operating Segments [Member] \| United States Segment [Member]
Statement [Line Items]
Sales	29,159	43,570	43,323
Cost of sales	16,061	18,928	25,170
Gross profit	13,099	24,642	18,153
Selling, general and administration expenses (allocated)	4,467	19,520	18,175
Impairment of property, equipment and right-of-use assets	0	5,693	2,240
Impact on onerous contracts			(1,482)
Results from operating activities before corporate expenses	$ 8,632	$ (571)	$ (780)

INVENTORIES (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Finished goods	$ 17,478	$ 18,590
Goods in transit	3,123	2,059
Packaging	2,867	1,714
Total	$ 23,468	$ 22,363

LIABILITIES SUBJECT TO COMPROMISE (Details) $ in Thousands	12 Months Ended
LIABILITIES SUBJECT TO COMPROMISE (Details) $ in Thousands	Jan. 30, 2021 CAD ($)
Discrimed And Modified Lease [Member]
Statement [Line Items]
Balance, January 30, 2021	$ 75,310
Trade and Other Payables [member]
Statement [Line Items]
Balance, January 30, 2021	20,699
Severance Costs [member]
Statement [Line Items]
Balance, January 30, 2021	4,541
Liabilities Subject To Compromise [Member]
Statement [Line Items]
Balance, January 30, 2021	$ 100,550

TRADE AND OTHER PAYABLES (Tables)

12 Months Ended

Jan. 30, 2021

Schedule of trade and other payables

	January 30,		February 1,
	2021		2020
	$		$
Trade payable and accrued liabilities		1,891		16,582
Income taxes payable		1,244		1,244
Wages, salaries and employee benefits payable		1,017		2,968
		4,152		20,794

CONSOLIDATED BALANCE SHEETS - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Current
Cash	$ 30,197	$ 46,338
Accounts and other receivables	6,157	6,062
Inventories	23,468	22,363
Income tax receivable	55	1,196
Prepaid expenses and deposits	14,470	4,542
Total current assets	74,347	80,501
Property and equipment	2,309	17,737
Intangible assets	3,929	6,339
Right-of-use assets	657	35,082
Total assets	81,242	139,659
LIABILITIES AND EQUITY
Trade and other payables	4,152	20,794
Deferred revenue	7,080	6,852
Liabilities subject to compromise	100,550	0
Current portion of lease liabilities	396	16,434
Total current liabilities	112,178	44,080
Non-current portion of lease liabilities	355	72,230
Total liabilities	112,533	116,310
Commitments and contingencies	0	0
Equity
Share capital	113,167	112,843
Contributed surplus	1,747	1,577
Deficit	(148,068)	(92,278)
Accumulated other comprehensive income	1,863	1,207
Total equity (deficiency)	(31,291)	23,349
Total liabilities and equity	$ 81,242	$ 139,659

DEFERRED REVENUE (Tables)

12 Months Ended

Jan. 30, 2021

Schedule of deferred revenue

	January 30,		February 1,
	2021		2020
	$		$
Gift cards liability		4,642		4,899
Loyalty program		1,548		1,953
Subscription Box Liability		890		0
		7,080		6,852

ACCOUNTS AND OTHER RECEIVABLES (Tables)

12 Months Ended

Jan. 30, 2021

Schedule of accounts and other receivables

	January 30,		February 1,
	2021		2020

Credit card and cash clearing receivables		706		849
Trade receivables		1,232		2,072
Loan to a Company controlled by one of the Company executive employees				2,026
Other receivables		4,219		1,115
		6,157		6,062

BASIS OF PREPARATION and GOING CONCERN UNCERTAINTY (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020
Statement [Line Items]
Total current liabilities	$ 112,178	$ 44,080
Going Concern Uncertainty [Member]
Statement [Line Items]
Total current liabilities	112,200
Cash held and accounts other receivables	36,400
Net Income (loss)	$ (55,900)

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Details Narrative) $ in Thousands	12 Months Ended
	Jan. 30, 2021 CAD ($)
Estimate for allowed claim	$ 75,300

SHARE CAPITAL

12 Months Ended

Jan. 30, 2021

SHARE CAPITAL

15. SHARE CAPITAL

Authorized

An unlimited number of common shares.

Issued and Outstanding

	January 30,		February 1,
	2021		2020
	$		$
Share Capital - 26,234,582 Common shares (February 1, 2020 - 26,086,162)		113,167		112,843

	Common
	shares
	#
Number of shares in issuance
Balance, February 2, 2019		26,011,817
Issuance of common shares upon exercise of options		18,500
Issuance of common shares upon vesting of restricted stock units		55,845
Balance, February 1, 2020		26,086,162
Issuance of common shares upon exercise of options		4,000
Issuance of common shares upon vesting of restricted stock units		144,420
Balance, January 30, 2021		26,234,582

During the year ended January 30, 2021, 4,000 stock options were exercised for common shares, for cash proceeds of $4 [February 1, 2020 – 18,500 stock options for cash proceeds of $14, February 2, 2019 – 51,720 stock options for cash proceeds of $82 and 36,415 common shares for a non-cash settlement of $121]. The carrying value of common shares during the year ended January 30, 2021 includes $1 [February 1, 2020 - $7] which corresponds to a reduction in the contributed surplus associated to options exercised during the period.

In addition, during the year ended January 30, 2021, 144,420 common shares [February 1, 2020 – 55,845, February 2, 2019 —74,728] were issued in relation to the vesting of restricted stock units (“RSU”), resulting in an increase in share capital of $319, net of tax [February 1, 2020 - $303, February 2, 2019 – $663].

Stock‑Based Compensation

The 2015 Omnibus Plan provides for awards of stock options, stock appreciation rights (“SARs”), restricted stock, unrestricted stock, stock units (including restricted stock units, “RSUs”), performance awards, deferred share units, elective deferred share units and other awards convertible into or otherwise based on the Company’s common shares. Eligibility for stock options intended to be incentive stock options (“ISOs”) is limited to the Company’s employees. Dividend equivalents may also be provided in connection with an award under the 2015 Omnibus Plan. The maximum term of stock options and SARs is seven years. The options vest evenly over a period of 36 or 48 months, with some options vesting monthly and some options vesting annually. There are no cash settlement alternatives.

The maximum number of the Company’s common shares that are available for issuance under the 2015 Omnibus Plan is 2,940,000 shares. Common shares issued under the 2015 Omnibus Plan may be shares held in treasury or authorized but unissued shares of the Company not reserved for any other purpose. As at January 30, 2021, 1,200,323 common shares remain available for issuance under the 2015 Omnibus Plan.

No options were granted for the year ended January 30, 2021 [February 1, 2020 – nil].

A summary of the status of the Company’s stock option plan and changes during the year is presented below.

For the year ended

January 30,

February 1,

2021

2020

Weighted

average

Options

exercise

Options

exercise

outstanding

price

outstanding

price

Outstanding, beginning of year

76,350

8.96

137,540

7.17

Issued

—

Exercised

(4,000

)

0.77

(18,500

)

0.77

Forfeitures

(54,860

)

10.40

(42,690

)

6.72

Outstanding, end of year

17,490

6.32

76,350

8.96

Exercisable, end of year

17,490

6.32

75,475

8.90

The weighted average share price at the date of exercise for options exercised during the year ended January 30, 2021 was $0.87 [February 1, 2020 — $2.28].

The following tables summarize information about the stock options outstanding at January 30, 2021 and February 1, 2020:

Weighted

Number of

Number

average

Weighted

options

Weighted

outstanding at

contractual

average

exercisable at

average

January 30,

remaining

exercise

February 1,

exercise

2021

life

price

2020

price

Range of exercise prices

(years)

$3.33 - $4.31

14,000

0.8

4.30

14,000

4.30

$14.39 - $17.99

3,490

2.2

14.39

3,490

14.39

As at January 30, 2021

17,490

1.1

6.32

17,490

6.32

				Weighted				Number of
		Number		average		Weighted		options		Weighted
		outstanding at		contractual		average		exercisable at		average
		February 1,		remaining		exercise		February 1,		exercise
		2020		life		price		2020		price
Range of exercise prices		#		(years)		$		#		$
$	0.77		4,000		0.4		0.77		4,000		0.73
$3.33 - $4.31			14,000		1.8		4.30		14,000		4.30
$8.76 - $10.28			53,225		4.1		10.28		53,225		10.28
$14.39 - $17.99			5,125		3.2		13.39		4,250		14.39
As at February 1, 2020			76,350		3.4		8.96		75,475		8.90

A summary of the status of the Company’s RSU plan and changes during the years ended January 30, 2021 and February 1, 2020 is presented below.

For the year ended

January 30,

February 1,

2021

2020

Weighted

average

RSUs

fair value

RSUs

fair value

outstanding

per unit (1)

outstanding

per unit (1)

Outstanding, beginning of year

749,522

5.26

270,976

5.26

Granted

1,177,222

1.44

804,710

1.93

Forfeitures

(351,205

)

(1.71

)

(188,685

)

3.17

Vested

(121,920

)

(1.54

)

(78,465

)

5.41

Vested, withheld for tax

(147,518

)

(2.16

)

(59,014

)

5.51

Outstanding, end of period

1,306,101

1.70

749,522

2.17

(1) Weighted average fair value per unit as at date of grant.

During the year ended January 30, 2021, the Company recognized a stock-based compensation expense of $820 [February 1, 2020 - $813, February 2, 2019 — $211].

CONSOLIDATED STATEMENTS OF EQUITY - CAD ($) $ in Thousands	Total	Share Capital [Member]	Contributed Surplus [Member]	Deficit [Member]	Accumulated other comprehensive income loss
Balance, amount at Feb. 02, 2019	$ 54,123	$ 112,519	$ 1,400	$ (61,293)	$ 1,497
Statement [Line Items]
Net loss for the twelve months ended February 1, 2020	(31,197)	0	0	(31,197)	0
Other comprehensive loss	(290)	0	0	0	(290)
Total comprehensive loss	(31,487)	0	0	(31,197)	(290)
Issuance of common shares	14	21	(7)	0	0
Common shares issued on vesting of restricted stock units	(114)	303	(629)	212	0
Stock-based compensation expense	813	0	813	0	0
Balance, amount at Feb. 01, 2020	23,349	112,843	1,577	(92,278)	1,207
Statement [Line Items]
Net loss for the twelve months ended February 1, 2020	(55,932)	0	0	(55,932)	0
Total comprehensive loss	(55,276)	0	0	(55,932)	656
Issuance of common shares	4	5	(1)	0	0
Common shares issued on vesting of restricted stock units	(188)	319	(649)	142	0
Stock-based compensation expense	820	0	820	0	0
Other comprehensive income	656	0	0	0	656
Balance, amount at Jan. 30, 2021	$ (31,291)	$ 113,167	$ 1,747	$ (148,068)	$ 1,863

- Definition

The amount of change in equity resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

+ References + Details

- Definition

The amount of residual interest in the assets of the entity after deducting all its liabilities.

+ References + Details

FINANCE COSTS (Tables)

12 Months Ended

Jan. 30, 2021

Summary of finance costs

	For the Year Ended
	January 30,		February 1,			February 2,
	2021		2020			2019
	$		$			$
Accretion on provisions		—		—			251
Interest and penalty on provision for uncertain tax position		—		(250	)		1,300
Interest on lease liabilities		3,229		6,962			—
Other finance costs		44		39			63
		3,273		6,751			1,614

CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
Sales	$ 121,686	$ 196,462	$ 212,753
Cost of sales	71,953	87,886	114,774
Gross profit	49,733	108,576	97,979
Selling, general and administration expenses	46,464	135,306	125,722
Restructuring plan activities, net	56,327	0	0
Results from operating activities	(53,058)	(26,730)	(27,743)
Finance costs	3,273	6,751	1,614
Finance income	(399)	(784)	(700)
Loss before income taxes	(55,932)	(32,697)	(28,657)
Provision for (recovery of) income tax	0	(1,500)	4,882
Net loss	(55,932)	(31,197)	(33,539)
Items to be reclassified subsequently to income:
Realized net loss on forward exchange contracts reclassified to inventory	0	0	230
Provision for income tax recovery	0	0	(63)
Cumulative translation adjustment	656	(290)	(425)
Other comprehensive income (loss), net of tax	656	(290)	(258)
Total comprehensive loss	$ (55,276)	$ (31,487)	$ (33,797)
Net loss per share:
Basic	$ (2.14)	$ (1.20)	$ (1.29)
Fully diluted	$ (2.14)	$ (1.20)	$ (1.29)
Weighted average number of shares outstanding
Basic	26,168,848	26,056,332	25,967,836
Fully Diluted	26,168,848	26,056,332	25,967,836

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Jan. 30, 2021	Apr. 26, 2021	Aug. 01, 2020
Cover [Abstract]
Entity Registrant Name	DAVIDsTEA Inc.
Entity Central Index Key	0001627606
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--02-02
Entity Well Known Seasoned Issuer	No
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jan. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		26,255,769
Entity Public Float			$ 13,200,483
Document Annual Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

MANAGEMENT OF CAPITAL (Tables)

12 Months Ended

Jan. 30, 2021

Summary of capital composed of shareholders

	January 30,			February 1,
	2021			2020
	$			$
Cash		30,197			46,338
Shareholder's (deficiency) equity [Excluding Accumulated other comprehensive income]		(33,154	)		22,142
Total capital under management		(2,957	)		68,480

PROPERTY AND EQUIPMENT

12 Months Ended

Jan. 30, 2021

8 - PROPERTY AND EQUIPMENT

	Leasehold			Furniture and			Computer
	improvements			equipment			hardware			Total
	$			$			$			$
Cost
Balance, February 2, 2019		84,142			13,910			5,878			103,930
Acquisitions		746			211			75			1,032
Disposals		—			(131	)		—			(131	)
Cumulative translation adjustment		285			32			11			328
Balance, February 1, 2020		85,173			14,022			5,964			105,159
Acquisitions		237			150			47			434
Disposals		(78,001	)		(11,987	)		(4,251	)		(94,239	)
Cumulative translation adjustment		712			49			12			773
Balance, January 30, 2021		8,121			2,234			1,772			12,127

	Leasehold			Furniture and			Computer
	improvements			equipment			hardware			Total
	$			$			$			$
Accumulated depreciation and impairment
Balance, February 2, 2019		65,874			10,001			4,267			80,142
Depreciation		4,032			854			525			5,411
Impairment		1,587			—			—			1,587
Disposals		—			(31	)		—			(31	)
Cumulative translation adjustment		278			29			6			313
Balance, February 1, 2020		71,771			10,853			4,798			87,422
Depreciation		1,582			517			300			2,399
Impairment		10,665			1,990			512			13,167
Disposals		(78,001	)		(11,782	)		(4,084	)		(93,867	)
Cumulative translation adjustment		573			93			31			697
Balance, January 30, 2021		6,590			1,671			1,557			9,818

Leasehold

Furniture and

Computer

improvements

equipment

hardware

Total

Net Carrying Value

Balance, February 1, 2020

13,402

3,169

1,166

17,737

Balance, January 30, 2021

1,531

563

215

2,309

For the year ended January 30, 2021, an assessment of impairment indicators was performed which caused the Company to review the recoverable amount for certain CGUs with an indication of impairment. CGUs reviewed included stores that were permanently closed as part of the Restructuring Plan and the remaining stores that are expected to perform below the Company’s previous projection.

As a result, an impairment loss of $13,167 related to store leasehold improvements, furniture and equipment and computer hardware was recorded [February 1, 2020 - $1,587, February 2, 2019 — $9,926 related to store leasehold improvements, furniture and equipment and computer hardware]. The impairment was recorded in the Canada and U.S. segments for $13,167 and nil, respectively [February 1, 2020 – $1,535 and $52, February 2, 2019 - $7,686 and $2,240, respectively]. Impairment losses related to closed stores of $12,966 is reported under Restructuring plan activities, net (note 19), while impairment losses of $201 related to stores expected to remain open are reported in under selling, general and administration expenses (Note 18).

The impairment loss taken related to the stores that remain open was determined by comparing the carrying amount of the CGU’s net assets with their respective recoverable amounts based on value in use for 7 of the 18 stores. This value in use of $791 [February 1, 2020 – $6,466] was determined based on management’s best estimate of expected future cash flows from use over the remaining lease terms. This determination considered historical experience as well as current economic conditions, including the expected reopening date and the timeframe to foot traffic recovery in those location, and was then discounted using a pre‑tax discount rate of 13.0% for the first quarter of 2020 [February 1, 2020 – 12.1%]

For the year ended January 30, 2021, the depreciation expense was $2,399 [February 1, 2020 - $5,411, February 2, 2019 —$6,904]; with $1,838 recorded in the Canada segment [February 1, 2020 - $4,659, February 2, 2019 — $5,825], $53 recorded in the U.S. segment [February 1, 2020 - $219, February 2, 2019 — $520], and $508 recorded in corporate selling, general and administration expenses [February 1, 2020 - $533, February 2, 2019 — $559]. Depreciation expense is reported in the consolidated statement of loss and comprehensive loss under selling, general and administration expenses (Note 18).

SHARE CAPITAL (Details Narrative) - CAD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Stock-based compensation expense	$ 820	$ 813	$ 211
Stock options exercised, shares	4,000	18,500	51,720
Weighted average share price	$ 0.87	$ 2.28
Common shares	36,415
Non-cash settlement	$ 121
Carrying value	1	$ 7
Proceeds from stock options exercised	4	14	$ 82
Common shares issued on vesting of restricted stock units, value	$ (188)	$ (114)
Restricted Stock Units (RUS) [Member]
Statement [Line Items]
Common shares issued on vesting of restricted stock units, shares	144,420	55,845	74,728
Common shares issued on vesting of restricted stock units, value	$ 319	$ 303	$ 663
Options [member]
Statement [Line Items]
Reduction in the contributed surplus	$ 1	$ 200	$ 323
2015 Omnibus Plan [Member]
Statement [Line Items]
Maximum number of shares available for issuance	294,000
Shares reserved for future issuance	1,200,323

GUARANTEES

12 Months Ended

Jan. 30, 2021

25 - GUARANTEES

Some agreements to which the Company is party include indemnification provisions that may require the Company to make payments to a third party for breach of fundamental representation and warranty terms in the agreements, with respect to matters such as corporate status, title of assets, environmental issues, consents to transfer, employment matters, litigation, taxes payable and other potential material obligations. The maximum potential amount of future payments that the Company could be required to make under these indemnification provisions is not reasonably quantifiable as certain indemnifications are not subject to a monetary limitation. As at January 30, 2021, management does not believe that these indemnification provisions would require any material cash payment by the Company, and insurance coverage, estimated by management to be reasonable and sufficient, exists in order to minimize the previously mentioned risks.

The Company indemnifies its directors and officers against claims reasonably incurred and resulting from the performance of their services to the Company, and maintains liability insurance for its directors and officers.

TRADE AND OTHER PAYABLES (Details Narrative) $ in Thousands	12 Months Ended
TRADE AND OTHER PAYABLES (Details Narrative) $ in Thousands	Jan. 30, 2021 CAD ($)
Advances to suppliers	$ 6,800

SHARE CAPITAL (Details 3) - $ / shares	12 Months Ended
SHARE CAPITAL (Details 3) - $ / shares	Jan. 30, 2021	Feb. 01, 2020
Statement [Line Items]
Number outstanding (in shares)	17,490	76,350
Weighted average contractual remaining life (in years)	1 year 1 month 6 days	3 years 4 months 24 days
Weighted average exercise price, outstanding (in dollars per share)	$ 6.32	$ 8.96
Number of options exercisable (in shares)	17,490	75,475
Weighted average exercise price, exercisable (in dollars per share)	$ 6.32	$ 8.90
Share Based Compensation Plan Share Options Price Range One [Member]
Statement [Line Items]
Number outstanding (in shares)	14,000	4,000
Weighted average contractual remaining life (in years)	9 months 18 days	4 months 24 days
Weighted average exercise price, outstanding (in dollars per share)	$ 4.30	$ 0.77
Number of options exercisable (in shares)	14,000	4,000
Weighted average exercise price, exercisable (in dollars per share)	$ 4.30	$ 0.73
Exercise price (in dollars per share)		$ 0.77
Share Based Compensation Plan Share Options Price Range Two [Member]
Statement [Line Items]
Number outstanding (in shares)	3,490	14,000
Weighted average contractual remaining life (in years)	2 years 2 months 12 days	1 year 9 months 18 days
Weighted average exercise price, outstanding (in dollars per share)	$ 14.39	$ 4.30
Number of options exercisable (in shares)	3,490	14,000
Weighted average exercise price, exercisable (in dollars per share)	$ 14.39	$ 4.30
Share Based Compensation Plan Share Options Price Range Two [Member] \| Minimum [Member]
Statement [Line Items]
Exercise price (in dollars per share)	3.33	3.33
Share Based Compensation Plan Share Options Price Range Two [Member] \| Maximum [Member]
Statement [Line Items]
Exercise price (in dollars per share)	4.31	$ 4.31
Share Based Compensation Plan Share Options Price Range Three [Member]
Statement [Line Items]
Number outstanding (in shares)		53,225
Weighted average contractual remaining life (in years)		4 years 1 month 6 days
Weighted average exercise price, outstanding (in dollars per share)		$ 10.28
Number of options exercisable (in shares)		53,225
Weighted average exercise price, exercisable (in dollars per share)		$ 10.28
Share Based Compensation Plan Share Options Price Range Three [Member] \| Minimum [Member]
Statement [Line Items]
Exercise price (in dollars per share)	14.39	8.76
Share Based Compensation Plan Share Options Price Range Three [Member] \| Maximum [Member]
Statement [Line Items]
Exercise price (in dollars per share)	$ 17.99	$ 10.28
Share Based Compensation Plan Share Options Price Range Four [Member]
Statement [Line Items]
Number outstanding (in shares)		5,125
Weighted average contractual remaining life (in years)		3 years 2 months 12 days
Weighted average exercise price, outstanding (in dollars per share)		$ 13.39
Number of options exercisable (in shares)		4,250
Weighted average exercise price, exercisable (in dollars per share)		$ 14.39
Share Based Compensation Plan Share Options Price Range Four [Member] \| Minimum [Member]
Statement [Line Items]
Exercise price (in dollars per share)		14.39
Share Based Compensation Plan Share Options Price Range Four [Member] \| Maximum [Member]
Statement [Line Items]
Exercise price (in dollars per share)		$ 17.99

SHARE CAPITAL (Details 2) - $ / shares	12 Months Ended
SHARE CAPITAL (Details 2) - $ / shares	Jan. 30, 2021	Feb. 01, 2020
Options outstanding
Outstanding, beginning of year	76,350	137,540
Issued (in shares)	0	0
Exercised (in shares)	(4,000)	(18,500)
Forfeitures (in shares)	(54,860)	(42,690)
Outstanding, end of period	17,490	76,350
Exercisable, end of period	17,490	75,475
Weighted average exercise price
Weighted average exercise price, beginning	$ 8.96	$ 7.17
Issued (in dollars per share)	0	0
Exercised (in dollars per share)	0.77	0.77
Forfeitures (in dollars per share)	10.40	6.72
Weighted average exercise price, ending	6.32	8.96
Weighted average exercise price, exercisable	$ 6.32	$ 8.90

TRADE AND OTHER PAYABLES

12 Months Ended

Jan. 30, 2021

TRADE AND OTHER PAYABLES

11 - TRADE AND OTHER PAYABLES

	January 30,		February 1,
	2021		2020
	$		$
Trade payable and accrued liabilities		1,891		16,582
Income taxes payable		1,244		1,244
Wages, salaries and employee benefits payable		1,017		2,968
		4,152		20,794

Included in prepaid expenses and deposits are advances to suppliers of $6.8 million.

RELATED PARTY DISCLOSURES (Details Narrative) - CAD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 30, 2020	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Merchandise purchased from related party		$ 139	$ 124	$ 241
Infrastructure and administrative services		508	533	559
Perpetual license right		0	200
Consulting services		$ 53	237	0
Reimbursement for related party cost				957
Revolving loan interest rate description		The Company agreed to lend to Squish an amount of up to $4.0 million, amended on September 13, 2019 to reflect a maximum amount available under the facility of $2.0 million
Accrued interest		$ 0	$ 0	$ 10
Squish [Member]
Statement [Line Items]
Secured loan agreement amount		$ 4,000
Earned in first quarter	$ 19
Accrued interest	45
Loan amount repaid	$ 2,000

CORPORATE INFORMATION (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Selling, general and administrative expenses	$ 46,464	$ 135,306	$ 125,722
Canada Emergency Wage Subsidy [Member]
Statement [Line Items]
Selling, general and administrative expenses	$ 4,500

INCOME TAXES (Details) - CAD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statutory income tax rate reconciliation, percent
Income tax recovery - statutory rate (as a percent)	26.40%	26.80%	26.90%
Non-deductible items (as a percent)	(0.10%)	(0.70%)	(1.30%)
Effect of substantively enacted income tax rate changes (as a percent)	(0.70%)	(1.20%)
Unrecognized deferred income tax asset (as a percent)	(25.40%)	25.20%	15.00%
Write-down of deferred income tax asset (as a percent)			(18.20%)
Provision for uncertain tax position (as a percent)		4.60%	(9.40%)
Other (as a percent)	(0.20%)	0.30%	0.00%
Income tax provision (recovery) - effective tax rate (as a percent)	(0.00%)	4.60%	(17.00%)
Statutory income tax rate reconciliation, amount
Income tax provision - statutory rate	$ (14,737)	$ (8,747)	$ (7,700)
Non-deductible items	39	232	378
Effect of substantively enacted income tax rate changes	400	394	0
Unrecognized deferred income tax asset	14,209	8,232	4,306
Write-down of deferred income tax asset	0		5,194
Provision for uncertain tax position		(1,500)	2,700
Other	89	(111)	4
Income tax recovery - effective tax rate	$ 0	$ (1,500)	$ 4,882

INTANGIBLE ASSETS (Details) - CAD ($) $ in Thousands	12 Months Ended
INTANGIBLE ASSETS (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Cost
Balance, at beginning of the period	$ 14,612	$ 12,016
Acquisitions	434	1,032
Cumulative translation adjustment	(54)	2
Disposals	(2,418)
Balance, at end of the period	12,619	14,612
Accumulated amortization
Amortization	2,053	1,934
Disposal	(1,628)
Accumulated amortization, beginning balance	8,273	6,338
Accumulated amortization, ending balance	8,690	8,273
Accumulated amortization, Cumulative translation adjustment	(8)	1
Net Carrying Value
Net carrying value, Balance	3,929	6,339
Computer software [member]
Cost
Balance, at beginning of the period	14,511	11,915
Acquisitions	479	2,594
Cumulative translation adjustment	(54)	2
Disposals	(2,418)
Balance, at end of the period	12,518	14,511
Accumulated amortization
Amortization	2,053	1,934
Disposal	(1,628)
Accumulated amortization, beginning balance	8,273	6,336
Accumulated amortization, ending balance	8,690	8,273
Accumulated amortization, Cumulative translation adjustment	(8)	3
Net Carrying Value
Net carrying value, Balance	3,828	6,238
Other Intangible Assets [Member]
Cost
Balance, at beginning of the period	101	101
Acquisitions	0	0
Cumulative translation adjustment	0	0
Disposals	0
Balance, at end of the period	101	101
Accumulated amortization
Amortization	0	0
Disposal	0
Accumulated amortization, beginning balance	0	2
Accumulated amortization, ending balance	0	0
Accumulated amortization, Cumulative translation adjustment	0	(2)
Net Carrying Value
Net carrying value, Balance	$ 101	$ 101

RELATED PARTY DISCLOSURES

12 Months Ended

Jan. 30, 2021

RELATED PARTY DISCLOSURES

21 - RELATED PARTY DISCLOSURES

Loan to a Company controlled by one of the Company’s executive employees

During the second quarter of 2019, the Company entered into a secured loan agreement with Oink Oink Candy Inc., doing business as “Squish”, as borrower, and Rainy Day Investments Ltd. (“RDI”), as guarantor pursuant to which the Company agreed to lend to Squish an amount of up to $4.0 million, amended on September 13, 2019 to reflect a maximum amount available under the facility of $2.0 million. RDI has guaranteed all of Squish’s obligations to the Company and, as security in full for the guarantee, has given a movable hypothec (or lien) in favour of the Company on its shares of DAVIDsTEA. Squish is a company controlled by Sarah Segal, an officer of DAVIDsTEA. RDI, the principal shareholder of DAVIDsTEA, is controlled by Herschel Segal, Executive Chairman, Interim Chief Executive Officer and a director of DAVIDsTEA. The Company and Squish previously entered into a Collaboration and Shared Services Agreement pursuant to which they collaborate on and share various services and infrastructure.

During the first quarter of 2020, the loan of $2.0 million and accrued interest of $45, including $19 which was earned in the first quarter, was fully repaid.

Other transactions with related parties are measured at the exchange amount, being the consideration established and agreed to by the related parties.

During the year ended January 30, 2021, the Company purchased merchandise for resale from a company controlled by one of its executive employees amounting to $139 [February 1, 2020 — $124; February 2, 2019 — $241]. As of January 30, 2021, an amount of nil was outstanding and presented in Trade and other payables.

The Company also provided infrastructure and administrative services of $90 [February 1, 2020 — $312; February 2, 2019 — nil] to a company controlled by one of its executive employees. As of January 30, 2021, an amount of $43 was outstanding and presented in Accounts and other receivables.

During the year-ended January 30, 2021, the Company purchased perpetual license rights to a reporting data model and associated intellectual property for nil [February 1, 2020 — $200] and spent $53 [February 1, 2020 — $237; February 2, 2019 — nil] for consulting services from a related party of the principal shareholder. As of January 30, 2021, an amount of nil [February 1, 2020 — $28] was outstanding and presented in Trade and other payables.

During the year ended February 2, 2019, the Company reimbursed Rainy Day Investments Ltd. (“Rainy Day Investments”), a controlling shareholder $957 for third-party costs incurred by it in connection with the proxy contest which culminated at the Company’s annual meeting held on June 14, 2018. This reimbursement was approved by the independent members of the Board of Directors of the Company. This amount is included in selling, general and administration expenses.

Transactions with Key Management Personnel

Key management of the Company includes members of the Board as well as members of the Executive Committee. The compensation earned by key management in aggregate was as follows:

For the Year Ended

January 30,

February 1,

February 2,

2021

2020

2019

Wages, salaries ,bonus and director fees

1,895

2,784

2,706

Termination benefits

—

110

1,025

Stock-based compensation

670

669

101

Total compensation earned by key management personnel

2,565

3,563

3,832

SHARE CAPITAL (Details 1) - shares	12 Months Ended
SHARE CAPITAL (Details 1) - shares	Jan. 30, 2021	Feb. 01, 2020
Number of shares in issuance
Balance, beginning of year	26,086,162	26,011,817
Issuance of common shares upon exercise of options	4,000	18,500
Issuance of common shares upon vesting of restricted stock units	144,420	55,845
Balance, end of period	26,234,582	26,086,162

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 30, 2021

14 - COMMITMENTS AND CONTINGENCIES

As at January 30, 2021, the Company has financial commitments in connection with the purchase of goods or services that are enforceable and legally binding on the Company, exclusive of additional amounts based on sales, taxes and other costs. Purchase obligations, net of $6.8 million of advances, which is included in Prepaid expenses and deposits, amounting to $14.1 million (2019 - $11.5 million) is expected to be discharge within 12 months.

EARNINGS PER SHARE

12 Months Ended

Jan. 30, 2021

EARNINGS PER SHARE

20 - EARNINGS PER SHARE

The following reflects the loss and share data used in the basic and diluted EPS computations:

	For the year ended
	January 30,			February 1,			February 2,
	2021			2020			2019
	$			$			$
Net loss for basic EPS		(55,932	)		(31,197	)		(33,539	)
Weighted average number of shares outstanding:
Basic		26,168,848			26,056,332			25,967,836
Fully diluted		26,168,848			26,056,332			25,967,836
Net loss per share:
Basic		(2.14	)		(1.20	)		(1.29	)
Fully diluted		(2.14	)		(1.20	)		(1.29	)

For the years ended January 30, 2021, February 1, 2020, and February 2, 2019, as a result of the net loss during the year, the stock options and RSUs disclosed in Note 15 are anti‑dilutive.

CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
OPERATING ACTIVITIES
Net loss	$ (55,932)	$ (31,197)	$ (33,539)
Items not affecting cash:
Depreciation of property and equipment	2,399	5,411	6,904
Amortization of intangible assets	2,053	1,934	1,298
Amortization of right-of-use assets	3,041	12,051	0
Gain on modification of lease liabilities	(75,121)	0	0
Liabilities subject to compromise	100,550	0	0
Interest on lease liabilities	3,230	6,962	0
Loss on disposal of property and equipment and right-of-use assets	769	100	1,875
Loss on disposal of intangible assets	790	0	0
Impairment of property and equipment and right-of-use assets	39,960	17,780	9,960
Stock-based compensation expense	820	813	211
Deferred rent	0	0	25
Recovery for onerous contracts	0	0	6,282
Amortization of financing fees	0	0	64
Accretion on provisions	0	0	251
Deferred income taxes	0	0	5,069
Sub-total	22,559	13,854	(1,600)
Net change in other non-cash working capital balances related to operations	(33,828)	19,254	(11,628)
Cash flows from (used in) operating activities	(11,269)	33,108	(13,228)
FINANCING ACTIVITIES
Proceeds from issuance of common shares pursuant to exercise of stock options	4	14	82
Payment of lease liabilities	(6,007)	(23,206)	0
Cash flows from (used) in financing activities	(6,003)	(23,192)	82
INVESTING ACTIVITIES
Additions to property and equipment	(433)	(1,032)	(3,898)
Additions to intangible assets	(480)	(2,594)	(4,366)
Repayment (issuance) of loan from a Company controlled by an executive employee	2,045	(2,026)	0
Cash flows from (used in) investing activities	1,132	(5,652)	(8,264)
Increase (decrease) in cash during the year	(16,140)	4,264	(21,410)
Cash, beginning of the year	46,338	42,074	63,484
Cash, end of the year	30,197	46,338	42,074
Cash paid for:
Income taxes (classified as operating activity)	0	0	10
Interest	0	50	0
Cash received for:
Interest1	368	778	650
Income taxes (classified as operating activity)	$ 870	$ 2,948	$ 1,774

LEASE LIABILITIES (Details) - CAD ($) $ in Thousands	12 Months Ended
LEASE LIABILITIES (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Additions	$ 9,253	$ (9,444)	$ 0
Impairment of right-of-use assets	26,793	16,193	0
Interest expense	0	$ 50	$ 0
Right-of-use assets [Member]
Statement [Line Items]
Balance at the beginning	35,082
Additions	1,987
Amortization expense	(3,041)
Impairment of right-of-use assets	26,793
Interest expense	0
Loss on disposal	(397)
Payments	0
Gain on modification of lease liability	(6,684)
CTA	503
Current	0
Balance at the end	657
Transfer to liabilities subject to compromise	0
Non-Current	0
Lease Liability [Member]
Statement [Line Items]
Balance at the beginning	88,664
Additions	1,987
Amortization expense	0
Impairment of right-of-use assets	0
Interest expense	3,230
Loss on disposal	0
Payments	(6,007)
Gain on modification of lease liability	(81,805)
CTA	889
Balance at the end	751
Transfer to liabilities subject to compromise	(6,207)
Non-Current	355
Current, lease liability	$ 396

INCOME TAXES (Details 3) - CAD ($) $ in Thousands	12 Months Ended
INCOME TAXES (Details 3) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Balance, beginning of the year	$ 0	$ 0	$ 5,194
Deferred rent	0	(1,762)	101
Canadian and U.S. operating losses carried forward	6,402	6,476	158
Property and equipment, including store impairment	769	(1,175)	1,952
Stock options	(176)	(80)	442
Financing fees and IPO-related costs	(2)	(583)	(609)
Foreign exchange gain on derivative financial instrument	0	0	(62)
Unrealized foreign exchange gain on intercompany advances	101	103	(99)
Right-of-use asset	9,253	(9,444)	0
Lease liabities	(23,745)	23,942
Lease inducement	0	(634)	120
Unrecognized deferred income tax asset	(13,894)	(11,774)	(7,770)
Provisions for onerous contracts	0	(5,357)	544
Other	(162)	288	29
Liabilities subject to compromise	21,454	0	0
Balance, end of the year	$ 0	$ 0	$ 0

ACCOUNTS AND OTHER RECEIVABLES (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Credit card and cash clearing receivables	$ 706	$ 849
Trade receivables	1,232	2,072
Loan to a Company controlled by one of the Company executive employees	0	2,026
Other receivables	4,219	1,115
Total	$ 6,157	$ 6,062

COMMITMENTS AND CONTINGENCIES (Details Narrative) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2019
Purchase obligations	$ 6,800
Prepaid expenses and deposits	$ 14,100	$ 11,500

BASIS OF PREPARATION and GOING CONCERN UNCERTAINTY

12 Months Ended

Jan. 30, 2021

2 - BASIS OF PREPARATION and GOING CONCERN UNCERTAINTY

The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The accounting policies were consistently applied to all periods presented, other than with respect to the adoption of new accounting standards as disclosed in note 4.

The Company’s fiscal year ends on the Saturday closest to the end of January, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. The years ended January 30, 2021, February 1, 2020 and February 2, 2019 cover a 52-week period.

Going Concern Uncertainty

In December 2019, a novel strain of coronavirus, responsible for COVID-19, was first reported and was subsequently declared a pandemic by the World Health Organization in March 2020. The measures adopted by the federal, provincial and state governments in order to mitigate the spread of the outbreak required the Company to temporarily close all of its retail locations across North America effective March 17, 2020.

On July 8, 2020, the Company announced that it was implementing the Restructuring Plan under applicable laws in both Canada and the United States in order to accelerate its transition to predominantly an online retailer and wholesaler of high-quality tea and accessories. As part of the Restructuring Plan, in July 2020, the Company sent notices to terminate leases for 164 of its stores in Canada and all 42 of its stores in the United States. On August 21, 2020, the Company re-opened 18 of its stores throughout Canada.

Although the Company continues to offer its products directly to consumers through its online store and in supermarkets and drugstores across Canada, it is unlikely that customers will purchase its products at previous volumes through these alternative channels. Furthermore, the duration and impact of the COVID-19 pandemic is unknown and may influence consumer shopping behavior and consumer demand including online shopping. Notwithstanding that the Company expects to emerge from the Restructuring Plan as a leaner organization, there is no assurance that the Restructuring Plan will be successful and that all relevant and required regulatory, creditor and court approvals will be obtained. Furthermore, significant resources are expected to be required to legally emerge from the formal restructuring process that will place increased risk on the Company’s available liquidity, especially considering the Company does not currently have access to any debt or financing arrangements.

For the year ended January 30, 2021, the Company reported a net loss of $55.9 million. The Company’s current liabilities total $112.2 million as at January 30, 2021. As at January 30, 2021, the Company held cash and accounts and other receivables of $36.4 million. The Company does not currently have any third-party financing available with which to meet any future financial obligations.

The Company’s ability to continue as a going concern is dependent on its ability to stabilize its business from unfavorable trend lines, and by focusing on how to grow its product portfolio including sales and customer service execution. The Company expects to transition to a digital-first organization with a leaner, more sustainable physical presence that complements a growing world-class online and grocery business, supported by a right-sized support organization.

Management believes that there is material uncertainty surrounding the Company’s ability to execute the strategy necessary to return to profitability in the current environment, including the unpredictability surrounding the recovery from the COVID-19 pandemic, changes in consumer behavior and the ability to successfully emerge from the Restructuring Plan.

As a result, these events and conditions indicate that a material uncertainty exists that raises substantial doubt about the Company’s ability to continue as a going concern and, therefore, realize its assets and discharge its liabilities in the normal course of business.

These consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue its operations for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. These consolidated financial statements as at and for the year ended January 30, 2021 do not include any adjustments to the carrying amounts and classification of assets, liabilities and reported expenses that may otherwise be required if the going concern basis was not appropriate. Such adjustments could be material.

Basis of consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned U.S. subsidiary, DAVIDsTEA (USA) Inc. The financial statements of the subsidiary are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany transactions, balances and unrealized gains or losses have been eliminated.

Functional and presentation currency

These consolidated financial statements are presented in Canadian dollars, which is the parent Company’s functional currency.

SEGMENT INFORMATION (Tables)

12 Months Ended

Jan. 30, 2021

SEGMENT INFORMATION

Schedule of revenue by product

	For the year ended
	January 30,		February 1,		February 2,
	2021		2020		2019
	$		$		$
Tea		103,620		148,846		152,761
Tea accessories		16,255		34,003		44,436
Food and beverages		1,811		13,613		15,556
		121,686		196,462		212,753

Schedule of property and equipment and intangible assets by country

	January 30,		February 1,
	2021		2020
	$		$
Canada		6,895		52,116
US		-		7,042
Total		6,895		59,158

Schedule of gross profit per country

For the year ended

January 30, 2021

Canada

Consolidated

Sales

92,537

29,159

121,686

Cost of sales

55,902

16,051

71,953

Gross profit

36,635

13,098

49,733

Selling, general and administration expenses (allocated)

18,923

4,467

23,390

Impairment of property and equipment and right-of-use assets

2,561

—

2,561

Results from operating activities before corporate expenses

15,151

8,631

23,782

Selling, general and administration expenses (non-allocated)

20,513

Restructuring plan activities, net

56,327

Results from operating activities

(53,058

)

Finance costs

3,273

Finance income

(399

)

Net loss before income taxes

(55,932

)

For the year ended

February 1, 2020

Canada

Consolidated

Sales

152,892

43,570

196,462

Cost of sales

68,958

18,928

87,886

Gross profit

83,934

24,642

108,576

Selling, general and administration expenses (allocated)

65,536

19,520

85,056

Impairment of property and equipment and right-of-use assets

12,087

5,693

17,780

Results from operating activities before corporate expenses

6,311

(571

)

5,740

Selling, general and administration expenses (non-allocated)

32,470

Results from operating activities

(26,730

)

Finance costs

6,751

Finance income

(784

)

Net loss before income taxes

(32,697

)

For the year ended

February 2, 2019

Canada

Consolidated

Sales

169,430

43,323

212,753

Cost of sales

89,604

25,170

114,774

Gross profit

79,826

18,153

97,979

Selling, general and administration expenses (allocated)

57,901

18,175

76,076

Impairment of property and equipment and right-of-use assets

7,720

2,240

9,960

Impact of onerous contracts

2,034

(1,482

)

552

Results from operating activities before corporate expenses

12,171

(780

)

11,391

Selling, general and administration expenses (non-allocated)

39,134

Results from operating activities

(27,743

)

Finance costs

1,614

Finance income

(700

)

Net loss before income taxes

(28,657

)

SHARE CAPITAL (Tables)

12 Months Ended

Jan. 30, 2021

SHARE CAPITAL

Summary of authorized, issued, and outstanding shares

	January 30,		February 1,
	2021		2020
	$		$
Share Capital - 26,234,582 Common shares (February 1, 2020 - 26,086,162)		113,167		112,843

Summary of stock option plan and periodic changes

	Common
	shares
	#
Number of shares in issuance
Balance, February 2, 2019		26,011,817
Issuance of common shares upon exercise of options		18,500
Issuance of common shares upon vesting of restricted stock units		55,845
Balance, February 1, 2020		26,086,162
Issuance of common shares upon exercise of options		4,000
Issuance of common shares upon vesting of restricted stock units		144,420
Balance, January 30, 2021		26,234,582

Summary of the status of the RSU plan and periodic changes

For the year ended

January 30,

February 1,

2021

2020

Weighted

average

Options

exercise

Options

exercise

outstanding

price

outstanding

price

Outstanding, beginning of year

76,350

8.96

137,540

7.17

Issued

—

Exercised

(4,000

)

0.77

(18,500

)

0.77

Forfeitures

(54,860

)

10.40

(42,690

)

6.72

Outstanding, end of year

17,490

6.32

76,350

8.96

Exercisable, end of year

17,490

6.32

75,475

8.90

Summary of stock option outstanding

Weighted

Number of

Number

average

Weighted

options

Weighted

outstanding at

contractual

average

exercisable at

average

January 30,

remaining

exercise

February 1,

exercise

2021

life

price

2020

price

Range of exercise prices

(years)

$3.33 - $4.31

14,000

0.8

4.30

14,000

4.30

$14.39 - $17.99

3,490

2.2

14.39

3,490

14.39

As at January 30, 2021

17,490

1.1

6.32

17,490

6.32

				Weighted				Number of
		Number		average		Weighted		options		Weighted
		outstanding at		contractual		average		exercisable at		average
		February 1,		remaining		exercise		February 1,		exercise
		2020		life		price		2020		price
Range of exercise prices		#		(years)		$		#		$
$	0.77		4,000		0.4		0.77		4,000		0.73
$3.33 - $4.31			14,000		1.8		4.30		14,000		4.30
$8.76 - $10.28			53,225		4.1		10.28		53,225		10.28
$14.39 - $17.99			5,125		3.2		13.39		4,250		14.39
As at February 1, 2020			76,350		3.4		8.96		75,475		8.90

Summary of weighted average fair value

For the year ended

January 30,

February 1,

2021

2020

Weighted

average

RSUs

fair value

RSUs

fair value

outstanding

per unit (1)

outstanding

per unit (1)

Outstanding, beginning of year

749,522

5.26

270,976

5.26

Granted

1,177,222

1.44

804,710

1.93

Forfeitures

(351,205

)

(1.71

)

(188,685

)

3.17

Vested

(121,920

)

(1.54

)

(78,465

)

5.41

Vested, withheld for tax

(147,518

)

(2.16

)

(59,014

)

5.51

Outstanding, end of period

1,306,101

1.70

749,522

2.17

SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details)	Jan. 30, 2021
Furniture and equipments [Member]
Statement [Line Items]
Depreciation percentage rate, declining balance	20.00%
Computer equipment [member]
Statement [Line Items]
Depreciation percentage rate, declining balance	30.00%

FINANCE COSTS (Details) - CAD ($) $ in Thousands	12 Months Ended
FINANCE COSTS (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Accretion on provisions	$ 0	$ 0	$ 251
Interest and penalty on provision for uncertain tax position	0	(250)	1,300
Interest on lease liabilities	3,230	6,962	0
Other finance cost	44	39	63
Total finance cost	$ 3,273	$ 6,751	$ 1,614

INVENTORIES

12 Months Ended

Jan. 30, 2021

7 - INVENTORIES

	January 30,		February 1,
	2021		2020
	$		$
Finished goods		17,478		18,590
Goods in transit		3,123		2,059
Packaging		2,867		1,714
		23,468		22,363

During the year ended January 30, 2021, inventories recognized as cost of sales amounted to $34,463 [February 1, 2020 —$56,310, February 2, 2019 - $63,195]. The cost of inventory includes a write-down of $557 [February 1, 2020 – nil, February 2, 2019 - $703] recorded as a result of net realizable value being lower than cost. Inventory write-downs of nil [February 1, 2020 - $406, February 2, 2019 – nil] recognized in the previous years were reversed.

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 30, 2021

3 - SIGNIFICANT ACCOUNTING POLICIES

Cash

Cash on the consolidated balance sheet comprises cash at banks and on hand.

Trade receivables

Government assistance

Inventory valuation

Property and equipment

Depreciation of an asset begins once it becomes available for use. Depreciation is charged to income on the following bases:

Furniture and equipment		20% declining balance
Computer hardware		30% declining balance

Leasehold improvements are depreciated on a straight‑line basis over the lesser of the useful economic life and the lease term.

Intangible assets

Intangible assets consist of computer software, trademarks and patents.

Leased assets

On February 3, 2019, the Company adopted IFRS 16, “Leases” using the modified retrospective method.

Right-of-use assets

Lease liabilities

Short-term leases and leases of low-value assets

Impairment

Impairment of financial assets

ii.

Impairment of non‑financial assets

Provisions

Liabilities subject to Compromise

Share capital

Common shares

Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares are recognized as a deduction from equity, net of any tax effects.

Stock‑based compensation

Revenue recognition

Gift card breakage

ii.

Loyalty program

iii. Subscription box

Finance income

Interest income is recognized as interest accrues using the effective interest method.

Income taxes

Earnings per share

Basic earnings per share is calculated using the weighted average number of shares outstanding during the year.

Financial instruments

The Company classifies its financial assets and liabilities according to their characteristics and management's choices and intentions related thereto for the purposes of ongoing measurement.

Classifications that the Company has used for financial assets include:

(a) Amortized Cost – non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. This includes trade receivables and the loan to a Company controlled by one of the Company’s executive employees, and these are recorded at amortized cost with gains and losses recognized in net income in the period that the asset is no longer recognized or becomes impaired; and

(b) FVTPL – financial assets which are classified as fair value through profit and loss. This includes cash and derivative financial instruments

Classifications that the Company has used for financial liabilities include:

a) Amortized cost – non-derivative financial liabilities measured at amortized cost with gains and losses recognized in net loss in the period that the liability is no longer recognized. This includes Trade and other payables

Foreign currency translation

Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other OCI in the cumulative translation account and reclassified from equity to our consolidated statement of loss on disposal of the net investment.

LIABILITIES SUBJECT TO COMPROMISE (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Jul. 08, 2020
Statement [Line Items]
Trade and other payables		$ 20,700
Severance costs		$ 4,500
Estimate for allowed claim	$ 75,300
Discrimed And Modified Lease [Member]
Statement [Line Items]
Estimate for allowed claim	$ 75,300

LEASES LIABILITIES

12 Months Ended

Jan. 30, 2021

10 - LEASES LIABILITIES

Set out below are the carrying amounts of the Company’s right-of-use assets and lease liabilities and the movements during the year:

	Right-of-Use			Lease
	Assets			Liability
	$			$
Balance, February 1, 2020		35,082			88,664
Additions		1,987			1,987
Amortization expense		(3,041	)		—
Impairment of right-of-use assets		(26,793	)		—
Gain on modification of lease liability		(6,684	)		(81,805	)
Loss on disposal		(397	)		—
Interest expense		—			3,230
Payments		—			(6,007	)
Transfer to liabilities subject to compromise					(6,207	)
CTA		503			889
Balance, January 30, 2021		657			751

Presented as:
Current		—			396
Non-Current		—			355

The Company also recorded an impairment loss of $26,793 related to the Company’s right-of-use assets [February 1, 2020 - $16,193, February 2, 2019 - nil]. The impairment was recorded in the Canada and U.S. segments for $20,804 and $5,989, respectively.

These impairments are further broken down as follows:

Stores

permanently

closed $

Stores

that remain

open $

Total $

Right-of-use assets

24,433

2,360

26,793

Impairment losses related to stores permanently closed and stores that remain open have been recorded in Restructuring plan activities, net and Selling, general and administration expenses, respectively. Refer to note 8 for further details.

Amortization expense is reported in the consolidated statement of loss and comprehensive loss under Selling, general and administration expenses.

The following table presents a maturity analysis of future contractual undiscounted cash flows from lease liabilities:

	February 1,
	2020
	$
Within one year		428
After one year but no more than five years		375
More than five years		—
		803

The Company has lease contracts that contain variable lease payments primarily based on a percentage of retail sales. The Company recognized variable lease payments of $985 for the year ended January 30, 2021. In addition, expenses related to leases of low-value assets were $18. These expenses are recorded in Selling, general and administrative expenses.

SEGMENT INFORMATION (Details) - CAD ($) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Sales	$ 121,686	$ 196,462	$ 212,753
Tea [Member]
Statement [Line Items]
Sales	103,620	148,846	152,761
Tea Accessories [Member]
Statement [Line Items]
Sales	16,255	34,003	44,436
Food And Beverages [Member]
Statement [Line Items]
Sales	$ 1,811	$ 13,613	$ 15,556

CHANGES IN ACCOUNTING PRINCIPLES

12 Months Ended

Jan. 30, 2021

4 - CHANGES IN ACCOUNTING PRINCIPLES

Recently Issued Accounting Pronouncements

On May 28, 2020, the IASB issued an amendment to IFRS 16, “Leases” to make it easier for lessees to account for COVID-19-related rent concessions such as rent holidays and temporary rent reductions. In April 2021, the IASB extended the relief to cover rent concessions that reduce lease payments due on or before June 30, 2022.

The amendment exempts lessees from having to consider individual lease contracts to determine whether rent concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and allows lessees to account for such rent concessions as if they were not lease modifications. It applies to COVID-19-related rent concessions that reduce lease payments due on or before June 30, 2021.

The amendment is effective as of June 1, 2020 but can be applied immediately in any financial statements—interim or annual—not yet authorized for issue. The Company applied the practical expedient to all rent concessions meeting the criteria as set out in the amendment, as of February 2, 2020. With respect to rent concessions not meeting the definition of a lease modification, the Company elected to account for such concessions by continuing to account for the lease liability and right-of-use asset using the rights and obligations of the existing lease and recognizing a separate lease payable in the period in which the allocated lease cash payment is due. As a result of the Initial Order obtained from the Québec Superior Court on July 8, 2020, any rent concessions provided by landlords are accordingly nullified.

INVENTORIES (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
INVENTORIES (Details Narrative) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Inventories recognized	$ 34,463	$ 56,310	$ 63,195
Reversed inventory write-downs	0	406	0
Inventory includes write-down	$ 557	$ 0	$ 703

LIABILITIES SUBJECT TO COMPROMISE (Tables)

12 Months Ended

Jan. 30, 2021

Schedule of liability subject to compromise

Disclaimed and modified leases

Trade and other payables

Severance

Costs

Liabilities subject to compromise

Balance, January 30, 2021

75,310

20,699

4,541

100,550

FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Jan. 30, 2021

FINANCIAL RISK MANAGEMENT

Summary of foreign exchange exposure

	January 30,		February 1,
	2021		2020
	US$		US$
Cash		630		1,928
Accounts and other receivables		465		455
Prepaid expenses and deposits		5,394		323
Trade and other payables		750		6,090

CORPORATE INFORMATION

12 Months Ended

Jan. 30, 2021

1 - CORPORATE INFORMATION

The consolidated financial statements of DAVIDsTEA Inc. and its wholly-owned subsidiary, DAVIDsTEA (USA) Inc., (collectively, the “Company”) for the year ended January 30, 2021 were authorized for issue in accordance with a resolution of the Board of Directors on April 30, 2021. The Company is incorporated and domiciled in Canada and its shares are publicly traded on the NASDAQ Global Market under the symbol “DTEA”. The registered office is located at 5430, Ferrier Street, Town of Mount-Royal, Quebec, Canada, H4P 1M2.

The Company offers a specialty branded selection of high-quality proprietary loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories and gifts through its e-commerce platform at www.davidstea.com and the Amazon Marketplace, its wholesale customers which include over 2500 grocery stores and pharmacies, and 18 company-owned stores across Canada. We offer primarily proprietary tea blends that are exclusive to DAVIDsTEA, as well as traditional single-origin teas and herbs. Our passion for and knowledge of tea permeates our culture and is rooted in an excitement to explore the taste, health and lifestyle elements of tea. Sales fluctuate from quarter to quarter. Sales are traditionally highest in the fourth fiscal quarter due to the year-end holiday season and tend to be lowest in the second and third fiscal quarters because of lower customer engagement during the summer months.

In March 2020, the outbreak of a novel strain of coronavirus (“COVID-19”) was declared a global pandemic by the World Health Organization and on March 17, 2020, in response to the COVID-19 pandemic, the Company announced the temporary closure of all of its retail stores in Canada and the United States. On August 21, 2020, the Company re-opened 18 stores across Canada.

The Company qualifies for the Canada Emergency Wage Subsidy (“CEWS”) under the COVID-19 Economic Response Plan of the Government of Canada. During the year ended January 30, 2021, the Company recognized payroll subsidies of $4.5 million under this wage subsidy program as a reduction in the associated wage costs which the Company incurred, which was recognized in Selling, general and administration expenses.

CCAA Proceedings

On July 8, 2020, the Company announced that it was implementing a restructuring plan (the “Restructuring Plan”) under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) in order to accelerate its transition to predominantly an online retailer and wholesaler of high-quality tea and accessories and that during the restructuring process, the Company would continue to operate its online business through its e-commerce platform, the Amazon Marketplace and its wholesale distribution channel. Following a careful review of available options to stem the losses from its brick-and-mortar footprint, the Company’s management and Board of Directors determined that the formal Restructuring Plan was the best option in the context of an increasingly challenging retail environment, further exacerbated by the COVID-19 pandemic.

On July 8, 2020, the Company obtained an Initial Order pursuant to the CCAA from the Québec Superior Court in order to implement the Restructuring Plan (the “Initial Order”).

On July 9, 2020, the United States Bankruptcy Court for the District of Delaware entered an order in favor of the Company under Chapter 15 of the United States Bankruptcy Code. The order of the United States Bankruptcy Court provisionally recognized the proceedings under the CCAA and enforced the Initial Order, in effect providing protection to the Company from creditor action against its assets in the United States.

As part of its Restructuring Plan and further to obtaining the Initial Order, the Company, on July 10, 2020, sent notices to terminate leases for 82 of its stores in Canada and all 42 of its stores in the United States. These lease terminations were effective on August 9, 2020.

On July 16, 2020, the Company obtained an Amended and Restated Initial Order from the Québec Superior Court, extending to September 17, 2020 the application of the Initial Order. The Amended and Restated Initial Order also dealt with certain administrative matters, particularly with regards to the lease terminations.

On July 30, 2020, the Company sent notices to terminate leases for an additional 82 of its stores in Canada. These lease terminations were effective on August 29, 2020.

On September 17, 2020, the Québec Superior Court extended the stay of all proceedings against the Company to December 15, 2020 and issued a Claims Process Order establishing the claims procedures for the Company’s creditors under the CCAA. This Order, among other things set November 6, 2020 as the time by which creditors had to submit their claims to PwC, the Court-appointed Monitor.

On December 15, 2020, the Québec Superior Court extended the stay of all proceedings against the Company to March 19, 2021. The Court also approved a retention plan for certain key employees (“KERP”) and created a priority charge over the debtors’ assets for the KERP in addition to extending the Claims Bar Date for certain Canadian employees until December 31, 2020.

On March 19, 2021, the Québec Superior Court extended the stay of all proceedings against the Company to June 4, 2021, and addressed certain administrative matters.

LEASE LIABILITIES (Details 1) - CAD ($) $ in Thousands	12 Months Ended
LEASE LIABILITIES (Details 1) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Impairment of right-of-use assets	$ 26,793	$ 16,193	$ 0
Right-of-use assets [Member]
Statement [Line Items]
Impairment of right-of-use-assets, stores permanently closed	24,433
Impairment of right-of-use-assets, stores that remain open	2,360
Impairment of right-of-use assets	$ 26,793

FINANCIAL RISK MANAGEMENT

12 Months Ended

Jan. 30, 2021

FINANCIAL RISK MANAGEMENT

23 - FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to a variety of financial risks, including risks related to foreign exchange, interest rate, credit, and liquidity.

Currency Risk — Foreign Exchange 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 rates. Given that a significant amount of its purchases are denominated in U.S. dollars, the Company is exposed to foreign exchange risk. The Company’s foreign exchange risk is largely limited to currency fluctuations between the Canadian and U.S. dollars. The Company is exposed to currency risk through its cash, accounts receivable and accounts payable denominated in U.S. dollars.

Assuming that all other variables remain constant, a revaluation of these monetary assets and liabilities due to a 5% rise or fall in the Canadian dollar against the U.S. dollar would have resulted in an increase or decrease to net loss in the amount of $287.

The Company’s foreign exchange exposure is as follows:

	January 30,		February 1,
	2021		2020
	US$		US$
Cash		630		1,928
Accounts and other receivables		465		455
Prepaid expenses and deposits		5,394		323
Trade and other payables		750		6,090

The Company’s U.S. subsidiary’s transactions are denominated in U.S. dollars.

Market Risk — Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Financial instruments that potentially subject the Company to cash flow interest rate risk include financial assets and liabilities with variable interest rates and consist of cash, and the secured loan receivable from Squish.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company’s approach to managing liquidity risk is to ensure, to the extent possible, that it will always have sufficient liquidity to meet liabilities when due. The Company’s liquidity follows a seasonal pattern based on the timing of inventory purchases and capital expenditures. The Company is exposed to this risk mainly in respect of its trade and other payables, lease and purchase obligations.

As at January 30, 2021, the Company had $30.2 million in cash.

The Company expects to finance its working capital needs and investments in infrastructure through cash flows from operations and cash on hand. The Company expects that its trade and other payables, amounting to $4.2 million (2020 - $20.4 million), will substantially be discharged within 90 days. Purchase obligations, net of $6.8 million of advances, amounting to $14.1 million (2019 - $11.5 million) is expected to be discharge within 12 months. Refer to note 2 for details with respect to the going concern uncertainty.

Credit Risk

The Company is exposed to credit risk resulting from the possibility that counterparties may default on their financial obligations to the Company. The Company’s maximum exposure to credit risk at the reporting date is equal to the carrying value of receivables. Accounts receivable primarily consists of receivables from customers who pay by credit card, receivables from our wholesale channel sales, recoveries of credits from suppliers for returned or damaged products, receivables from other companies for sales of products, gift cards and other services. Credit card payments have minimal credit risk and the limited number of corporate receivables is closely monitored. As a result, expected credit loss on these financial assets is not significant.

Fair Values

Financial assets and financial liabilities are measured on an ongoing basis at fair value or amortized cost. The disclosures in the “Financial instruments” section of Note 3 describe how the categories of financial instruments are measured and how income and expenses, including fair value gains and losses, are recognized.

RESTRUCTURING PLAN ACTIVITIES, NET

12 Months Ended

Jan. 30, 2021

19 - RESTRUCTURING PLAN ACTIVITIES, NET

During the year ended January 30, 2021, the Company, in connection with the termination or modification of leases pursuant to the Restructuring Plan, reduced its lease liabilities by $81.8M million, resulting in a gain on the modification of lease liabilities of $75.1M and a reduction in right-of-use assets of $6.7M.

Included in Restructuring plan activities, net are the following expenses:

		For the year ended
		January 30,
		2021
		$
Gain on modification of lease liabilities			(75,121	)
Disclaimed leases	[Note 13]		76,281
Impairment of property and equipment and right-of-use assets	[Note 10]		37,399
Trade and other payables	[Note 13]		4,991
Store closure related costs			4,158
Severance costs	[Note 13]		4,840
Professional fees			2,840
Loss on disposal of property and equipment, right-of-use assets and intangible assets			1,559
Interest and penalties related to unpaid occupancy charges			1,282
Restructuring plan activities, net			56,327

PROPERTY AND EQUIPMENT (Details) - CAD ($) $ in Thousands	12 Months Ended
PROPERTY AND EQUIPMENT (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Cost
Balance at the beginning	$ 105,159	$ 103,930
Acquisitions	434	1,032
Disposals	(94,239)	(131)
Cumulative translation adjustment	773	328
Balance at the ending	12,127	105,159
Accumulated depreciation and impairment
Accumulated depreciation and impairment, beginning balance	87,422	80,142
Accumulated depreciation	2,399	5,411
Accumulated depreciation, impairment	13,167	1,587
Accumulated depreciation, Disposals	(93,867)	(31)
Accumulated depreciation, Cumulative translation adjustment	697	313
Accumulated depreciation and impairment, ending balance	9,818	87,422
Net carrying value	2,309	17,737
Computer hardware [Member]
Cost
Balance at the beginning	5,964	5,878
Acquisitions	47	75
Disposals	(4,251)	0
Cumulative translation adjustment	12	11
Balance at the ending	1,772	5,964
Accumulated depreciation and impairment
Accumulated depreciation and impairment, beginning balance	4,798	4,267
Accumulated depreciation	300	525
Accumulated depreciation, impairment	512	0
Accumulated depreciation, Disposals	(4,084)	0
Accumulated depreciation, Cumulative translation adjustment	31	6
Accumulated depreciation and impairment, ending balance	1,557	4,798
Net carrying value	215	1,166
Furniture and equipment [Member]
Cost
Balance at the beginning	14,022	13,910
Acquisitions	150	211
Disposals	(11,987)	(131)
Cumulative translation adjustment	49	32
Balance at the ending	2,234	14,022
Accumulated depreciation and impairment
Accumulated depreciation and impairment, beginning balance	10,853	10,001
Accumulated depreciation	517	854
Accumulated depreciation, impairment	1,990	0
Accumulated depreciation, Disposals	(11,782)	(31)
Accumulated depreciation, Cumulative translation adjustment	93	29
Accumulated depreciation and impairment, ending balance	1,671	10,853
Net carrying value	563	3,169
Leasehold improvements [Member]
Cost
Balance at the beginning	85,173	84,142
Acquisitions	237	746
Disposals	(78,001)	0
Cumulative translation adjustment	712	285
Balance at the ending	8,121	85,173
Accumulated depreciation and impairment
Accumulated depreciation and impairment, beginning balance	71,771	65,874
Accumulated depreciation	1,582	4,032
Accumulated depreciation, impairment	10,665	1,587
Accumulated depreciation, Disposals	(78,001)	0
Accumulated depreciation, Cumulative translation adjustment	573	278
Accumulated depreciation and impairment, ending balance	6,590	71,771
Net carrying value	$ 1,531	$ 13,402

PROPERTY AND EQUIPMENT (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Statement [Line Items]
Impairment loss	$ 13,167	$ 1,587	$ 9,926
Value in use	$ 791	$ 6,466
Pre-tax weighted average cost of capital rate	13.00%	12.10%
Depreciation	$ 2,399	$ 5,411	6,904
Corporate selling, general and administration expenses	508	533	559
Impairment losses selling, general and administration expenses	201
Impairment losses on restructuring plan activities	12,966
Canada Segment [Member]
Statement [Line Items]
Impairment loss	13,167	1,535	7,686
Depreciation	1,838	4,659	5,825
United States Segment [Member]
Statement [Line Items]
Impairment loss	0	52	2,240
Depreciation	$ 53	$ 219	$ 520

SELLING GENERAL AND ADMINISTRATION EXPENSES (Tables)

12 Months Ended

Jan. 30, 2021

SELLING GENERAL AND ADMINISTRATION EXPENSES (Tables)

Schedule of selling, general and administrative expenses

	For the year ended
	January 30,			February 1,		February 2,
	2021			2020		2019
	$			$		$
Wages, salaries and employee benefits		20,222			65,288		68,324
Depreciation of property and equipment		2,399			5,411		6,904
Amortization of intangible assets		2,053			1,934		1,298
Amortization right-of-use asset		3,041			12,051		—
Impairment of property and equipment and right-of-use assets		2,561			17,780		9,960
Loss on disposal of property and equipment		—			100		151
Marketing expenses		4,693			7,282		6,248
IT expenses		3,986			4,022		3,735
Credit card fees		2,770			3,030		2,915
Professional fees		1,713			2,002		1,743
Stores supplies		2,023			5,768		5,101
Stock-based compensation		820			813		211
Recovery of provision for onerous contracts		—			—		552
Executive separation cost related to salary		—			—		1,280
Strategic review and proxy contest		—			—		3,593
ERP project termination		—			—		2,496
Government emergency wage subsidy		(4,494	)		—		—
Other selling, general and administration		4,677			9,825		11,211
		46,464			135,306		125,722

SHARE CAPITAL (Details 4) - $ / shares	12 Months Ended
SHARE CAPITAL (Details 4) - $ / shares	Jan. 30, 2021	Feb. 01, 2020
RSUs outstanding
Outstanding, beginning of year	749,522	270,976
Granted	1,177,222	804,710
Forfeitures	(351,205)	(188,685)
Vested	(121,920)	(78,465)
Vested, withheld for tax	(147,518)	(59,014)
Outstanding, end of year	1,306,101	749,522
Weighted average fair value per unit
Outstanding, beginning of year	$ 5.26	$ 5.26
Granted	1.44	1.93
Forfeitures	(1.71)	3.17
Vested	(1.54)	5.41
Vested, withheld for tax	(2.16)	5.51
Outstanding, end of year	$ 1.70	$ 5.26

INCOME TAXES (Details Narrative) - CAD ($) $ in Thousands	1 Months Ended	12 Months Ended
INCOME TAXES (Details Narrative) - CAD ($) $ in Thousands	Feb. 02, 2019	Jan. 30, 2021	Feb. 01, 2020	Jan. 30, 2018
Statement [Line Items]
Uncertain provison tax			$ 359
Provision for transfer pricing audit				$ 4,000
Net net deferred income tax asset	$ 0	$ 43,227
Canadian Operations [Member]
Statement [Line Items]
Accumulated losses	12,000	$ 32,500	$ 20,200
Expire year		2039	2039
U.S. Subsidiary [Member]
Statement [Line Items]
Accumulated losses	$ 13,900	$ 26,600	$ 17,400
Expire year	2033 to 2037	2033 to 2037	2033 to 2037
Remaining accumulated losses amount		$ 12,700
Taxes [Member]
Statement [Line Items]
Provision for transfer pricing audit				2,700
Revised Provision for transfer pricing audit			$ 0	1,200
Interest [Member]
Statement [Line Items]
Provision for transfer pricing audit				1,300
Revised Provision for transfer pricing audit			$ 0	$ 1,000

DEFERRED REVENUE (Details) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Gift cards liability	$ 4,642	$ 4,899
Loyalty program	1,548	1,953
Subscription Box liability	890	0
Deferred revenue	$ 7,080	$ 6,852

RESTRUCTURING PLAN ACTIVITIES, NET (Tables)

12 Months Ended

Jan. 30, 2021

Summary of resconstructing activities

		For the year ended
		January 30,
		2021
		$
Gain on modification of lease liabilities			(75,121	)
Disclaimed leases	[Note 13]		76,281
Impairment of property and equipment and right-of-use assets	[Note 10]		37,399
Trade and other payables	[Note 13]		4,991
Store closure related costs			4,158
Severance costs	[Note 13]		4,840
Professional fees			2,840
Loss on disposal of property and equipment, right-of-use assets and intangible assets			1,559
Interest and penalties related to unpaid occupancy charges			1,282
Restructuring plan activities, net			56,327

FINANCIAL RISK MANAGEMENT (Details) - Estimate For Allowed Claims [Member] - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Statement [Line Items]
Foreign exchange exposure, cash	$ 630	$ 1,928
Foreign exchange exposure, accounts and other receivable	465	455
Foreign exchange exposure, prepaid expense and deposits	5,394	323
Foreign exchange exposure, Trade and other payable	$ 750	$ 6,090

DEFERRED REVENUE (Details Narrative) - CAD ($) $ in Thousands	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Feb. 02, 2019
Goods Or Services Transferred Over Time Gift Cards [Member]
Statement [Line Items]
Deferred revenue recognized	$ 74	$ 1,294	$ 242

SEGMENT INFORMATION (Details 1) - CAD ($) $ in Thousands	Jan. 30, 2021	Feb. 01, 2020
Statement [Line Items]
Property and equipment and intangible assets	$ 6,895	$ 59,158
Canada Segment [Member]
Statement [Line Items]
Property and equipment and intangible assets	6,895	52,116
United States Segment [Member]
Statement [Line Items]
Property and equipment and intangible assets	$ 0	$ 7,042

LIABILITIES SUBJECT TO COMPROMISE

12 Months Ended

Jan. 30, 2021

13 - Liabilities subject to compromise

On September 17, 2020, the Court issued a Claims Process Order establishing the claims procedures for the Company’s creditors under the CCAA. This Order, among other things set November 6, 2020 as the time by which creditors had to submit their claims to PwC.

Obligations for goods and services provided to the Company after the filing date of July 8, 2020 are discharged based on negotiated terms and are excluded from liabilities subject to compromise.

As of January 30, 2021, liabilities subject to compromise are broken down as follows:

Disclaimed and modified leases

Trade and other payables

Severance

Costs

Liabilities subject to compromise

Balance, January 30, 2021

75,310

20,699

4,541

100,550

As a result of the termination of leases pursuant to the Restructuring Plan in the year ended January 30, 2021, the Company has recorded an estimate for allowed claims in the amount of $75.3 million, in Restructuring plan activities, net in the consolidated statement of income (loss) (Note 19). This provision is subject to estimation uncertainty. Trade and other payables representing the payment of liabilities owing as of July 8, 2020, amounted to $20.7 million and severance costs amounting to $4.5 million.

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jan. 30, 2021

Schedule of property and equipment useful life

Furniture and equipment		20% declining balance
Computer hardware		30% declining balance

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jan. 30, 2021

Schedule of intangible assets

	Computer
	software			Other		Total
	$			$		$
Cost
Balance, February 2, 2019		11,915			101		12,016
Acquisitions		2,594			—		2,594
Cumulative translation adjustment		2			—		2
Balance, February 1, 2020		14,511			101		14,612
Acquisitions		479			—		479
Disposals		(2,418	)		—		(2,418	)
Cumulative translation adjustment		(54	)		—		(54	)
Balance, January 30, 2021		12,518			101		12,619

	Computer
	software			Other			Total
	$			$			$
Accumulated amortization
Balance, February 2, 2019		6,336			2			6,338
Amortization		1,934			—			1,934
Cumulative translation adjustment		3			(2	)		1
Balance, February 1, 2020		8,273			—			8,273
Amortization		2,053			—			2,053
Disposals		(1,628	)		—			(1,628	)
Cumulative translation adjustment		(8	)		—			(8	)
Balance, January 30, 2021		8,690			—			8,690

Computer

software

Other

Total

Net Carrying Value

Balance, February 1, 2020

6,238

101

6,339

Balance, January 30, 2021

3,828

101

3,929