AMARC RESOURCES LTD.
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED
MARCH 31, 2023, 2022, and 2021
(Expressed in Canadian Dollars)
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Amarc Resources Ltd.,
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Amarc Resources Ltd. ('the Company'), which comprise the consolidated statements of financial position as at March 31, 2023 and 2022 and the consolidated statements of (income) loss, comprehensive income (loss), changes in (deficiency) equity and cash flows for each of the years in the three year period ended March 31, 2023, and a summary of significant accounting policies and other explanatory information (collectively referred to as the 'consolidated financial statements'). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as at March 31, 2023 and 2022 and its financial performance and its cash flows for each of the years in the three year period ended March 31, 2023, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Without modifying our opinion, we draw attention to Note 1 in the consolidated financial statements which indicates that the Company has no current source of revenue, has incurred losses from inception and is dependent upon its ability to secure new sources of financing. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that casts significant doubt as to the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
This issue also constitutes, from our perspective, a critical audit matter that was communicated to the audit committee and that: (i) relates to accounts or disclosures that are material to the consolidated financial statements; and (ii) involved, on our part, especially challenging, subjective, or complex judgements. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating this critical audit matter, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
The principal considerations for our determination that the going concern uncertainty was a critical audit matter were: (i) that the formal reporting of such uncertainty involves a significant disclosure, the absence of which could constitute a material misstatement to a financial statement reader and, (ii) that, at the same time, it involves on our part the use of a high level of subjective judgement as we are required to consider the possible impact of future events that cannot currently be known and which in all likelihood will not be directly linked to any particular current or future financial results and reporting, or the lack thereof.
Addressing this matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures also included, among others, (i) obtaining and evaluating management's assessment of the Company's ability to remain a going concern; (ii) determining based on all other evidence available to us whether management's assessment appeared to be fair and reasonable in the circumstances and, (iii) considering whether the resultant disclosure of these matters herein was consistent with the foregoing, in the context of the Company's overall business activities, objectives and financial history.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ('PCAOB') and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free of material misstatement, whether due to fraud or error. The Company is not required to have, nor were we engaged to perform, an audit of internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
A critical audit matter was communicated above under 'Going Concern'.
CHARTERED PROFESSIONAL ACCOUNTANTS
Vancouver, Canada
July 25, 2023
We have served as the Company's auditor since 1995.
Amarc Resources Ltd.
Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)
March 31, | March 31, | ||
2023 | 2022 | ||
Note | ($) | ($) | |
ASSETS | |||
Current assets | 3 | 5,131,510 | 370,784 |
Cash | |||
Amounts receivable and other assets | 6 | 218,351 | 48,817 |
Marketable securities | 4 | 139,284 | 311,293 |
Non-curr nt sets | 5 | 5,489,145 | 730,894 |
Restricted cash | 539,834 | 178,550 | |
Right-of-use asset | 13 | 62,208 | 82,384 |
Total assets | 6,091,187 | 991,828 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities | 8 | 1,180,863 | 413,278 |
Accounts payable and accrued liabilities | |||
Advanced contributions received | 7 | 4,124,349 | - |
Balances due to related parties | 11 | 530,512 | 472,303 |
Lease liability | 13 | 20,696 | 17,125 |
5,856,420 | 902,706 | ||
Non-current liabilities | 9 | 648,005 | 644,642 |
Director's loan | |||
Lease liability | 13 | 52,207 | 72,903 |
Total liabilities | |||
6,556,632 | 1,620,251 | ||
Shareholders' deficiency | 10 | 65,228,921 | 65,228,921 |
Share capital | |||
Reserves | 10 | 4,289,896 | 4,094,335 |
Accumulated deficit | (69,984,262) | (69,951,679) | |
(465,445) | (628,423) | ||
Total liabilities and shareholders' deficiency | 6,091,187 | 991,828 | |
Nature of operations and going concern (note 1)
Events after the reporting period (note 16)
The accompanying notes are an integral part of these consolidated financial statements.
/s/ Robert A. Dickinson | /s/ Scott D. Cousens |
Robert A. Dickinson | Scott D. Cousens |
Director | Director |
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Amarc Resources Ltd.
Consolidated Statements of (Income) Loss
(Expressed in Canadian Dollars, except for weighted average number of common shares)
Years ended March 31, | |||||||||
Note | 2023 | 2022 | 2021 | ||||||
($) | ($) | ($) | |||||||
enses | 7 | 14,752,416 | 5,386,333 | 1,395,645 | |||||
Exploration and evaluation | |||||||||
Assays and analysis | 873,408 | 310,769 | 152,093 | ||||||
Drilling | 4,814,692 | 980,248 | 146,886 | ||||||
Environmental | 60,957 | 13,975 | - | ||||||
Equipment rental | 623,236 | - | 1,769 | ||||||
Freight | 454,102 | 79,043 | - | ||||||
Geological, including geophysical | 1,751,825 | 1,074,970 | 475,380 | ||||||
Graphics | 5,846 | 99,552 | - | ||||||
Helicopter and fuel | 2,035,711 | 910,699 | 208,347 | ||||||
Property acquisition and assessments costs | 141,538 | 56,699 | 55,436 | ||||||
Site activities | 3,176,489 | 1,077,369 | 182,238 | ||||||
Socioeconomic | 525,645 | 274,109 | 99,527 | ||||||
Technical data | 80,005 | 393,561 | 63,206 | ||||||
Travel and accommodation | 208,962 | 115,339 | 10,763 | ||||||
Administration | 818,856 | 616,970 | 629,974 | ||||||
Legal, accounting and audit | 12(b) | 36,854 | 96,897 | 45,828 | |||||
Office and administration | 308,828 | 324,117 | 416,924 | ||||||
Rent | 26,745 | 14,944 | - | ||||||
Shareholder communication | 345,484 | 140,036 | 123,925 | ||||||
Travel and accommodation | 63,233 | 9,758 | 10,763 | ||||||
Trust and regulatory | 37,712 | 31,218 | 32,534 | ||||||
Equity-settledshare-based compensation | 264,260 | 123,578 | 17,888 | ||||||
Property option proceeds | 7 | (14,773,794) | (5,539,024) | (1,350,891) | |||||
Cost recoveries | 7(d) | - | - | (260,115) | |||||
Gain on sale of mineral property | |||||||||
7(d) | - | - | (1,934,500) | ||||||
Other items | 1,061,738 | 587,857 | (1,501,999) | ||||||
Finance income | 9 | (123,727) | (18,694) | (26,904) | |||||
Interest expense - director's loans | 126,685 | 100,000 | 111,354 | ||||||
Other interest and finance charges | 285 | - | - | ||||||
Accretion expense - office lease | 9,620 | 10,438 | - | ||||||
Interest income | 7 | (15,101) | - | - | |||||
Other fee income | (1,154,570) | (409,486) | - | ||||||
Amortization of right-of-use asset | 9 | 20,176 | 18,493 | - | |||||
Transaction cost - director's loans | 102,554 | 74,642 | 57,881 | ||||||
Loss on sales of marketable securities | 4 | 2,429 | - | - | |||||
Foreign exchange loss | 2,494 | 562 | (1,031) | ||||||
Other comprehensive (income) loss | 32,583 | 363,812 | (1,360,699) | ||||||
Net (income) loss | |||||||||
Items that will not be reclassified subsequ ntly to loss: | 167,890 | 715,125 | 626,438 | ||||||
Change in value of marketable securities | |||||||||
Total other comprehensive (income) loss | 200,473 | 1,078,937 | (734,261) | ||||||
Basic and diluted (income) loss per share | 0.00 | 0.00 | (0.01) | ||||||
Weighted average number of common | 186,602,894 | 181,479,873 | 178,666,081 | ||||||
shares outstanding |
The accompanying notes are an integral part of these consolidated financial statements.
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Amarc Resources Ltd. published this content on 27 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2023 19:23:08 UTC.