BLOCKCHAINK2 CORP.

Interim Consolidated Financial Statements

For the three months and nine months ended June 30, 2022 and 2021

(Expressed in Canadian dollars)

BLOCKCHAINK2 CORP.

August 29, 2022

Management's Report to the Shareholders

Management is responsible for the reliability and integrity of these financial statements. The accompanying interim consolidated financial statements have been prepared by management in accordance with International Accounting Standards ("IAS") 34 - Interim Financial Reporting and are in accordance with International Financial Reporting Standards ("IFRS"). The interim consolidated financial statements are presented in Canadian Dollars.

The accompanying interim consolidated financial statements have been prepared using policies and procedures established by management and reflect fairly the Corporation's financial position, results of operations and changes in financial position, within reasonable limits of materiality and within the framework of the accounting policies outlined in the notes to the financial statements. Management has established and maintains a system of internal controls which is designed to provide reasonable assurance that assets are safeguarded from loss or unauthorized use and financial information is reliable and accurate.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control. The Board is assisted in exercising its responsibilities through the Audit Committee of the Board, which is composed of a majority of non-management directors. The Audit Committee meets periodically with management and the auditors to satisfy itself that management's responsibilities are properly discharged.

The following interim consolidated financial statements are unaudited and have not been reviewed by the Corporation's auditor.

BLOCKCHAINK2 CORP.

Interim Consolidated Statements of Financial Position As at June 30, 2022 and September 30, 2021 (Expressed in Canadian dollars)

June 30,

September 30,

2022

2021

(Unaudited)

(Audited)

Assets

Current assets:

Cash

$

101,131

$

573,813

Receivables

22,107

11,576

Inventory

16,611

7,773

Prepaid expenses (note 5)

8,821

13,739

148,670

606,901

Non-current assets:

Note receivable (note 6)

31,912

41,264

Investment in Envexergy Inc. (note 7)

1,223,136

1,223,136

Intangible assets (note 8)

21,000

-

1,276,048

1,264,400

$

1,424,718

$

1,871,301

Liabilities and Shareholders' Equity

Current liabilities:

Trade payables (note 12)

$

427,173

$

276,660

Loans payable - short term (notes 9 and 12)

421,202

19,785

848,375

296,445

Non-current liabilities:

Loans payable (note 9)

75,237

65,802

923,612

362,247

Shareholders' Equity

Share capital (note 10)

47,263,590

47,263,590

Contributed surplus (note 10)

13,034,684

13,034,684

Accumulated foreign currency translation (note 10)

1,443,557

1,451,235

Deficit

(61,213,538)

(60,287,001)

Non-controlling interest (note 14)

(27,187)

46,546

501,106

1,509,054

$

1,424,718

$

1,871,301

Going concern (note 2)

Subsequent event (note 19)

See accompanying notes to the interim consolidated financial statements.

Approved for issuance by the Board of Directors on August 29, 2022

Signed "D Lindsay Wu"

D Lindsay Wu, Director

Signed "Sergei Stetsenko"

Sergei Stetsenko, Director

BLOCKCHAINK2 CORP.

Consolidated Statements of Comprehensive Loss

For the three and nine months ended June 30, 2022 and 2021 (Unaudited - Expressed in Canadian dollars)

Three Months Ended

Nine Months Ended

June 30,

June 30,

2022

2021

2022

2021

Sales

$

23,162

$

8,777

$

59,179

$

106,794

Cost of sales

(9,531)

(1,978)

(30,983)

(68,650)

Gross profit

13,631

6,799

28,196

38,144

Expenses

Advertising and promotion

4,962

6,836

64,537

18,296

Consulting fees (note 12)

114,675

39,716

304,766

80,666

Directors' fees (note 12)

76,840

74,047

227,888

229,285

Filing and listing fees

19,562

28,499

52,055

61,697

Foreign exchange loss (gain)

6,216

(587)

(378)

(1,846)

General and administrative

15,949

11,746

57,287

35,268

Investor relations

-

303

-

113,423

Professional fees (note 12)

15,902

24,748

157,493

75,218

Salaries (note 12)

45,679

74,453

180,103

115,043

Selling expenses

498

555

2,618

1,555

Share-based compensation

-

72,000

-

985,485

Travel

1,109

1,882

8,117

5,278

(303,192)

(334,198)

(1,054,486)

(1,719,368)

Other items

Accretion (note 9)

(7,390)

(4,419)

(15,582)

(15,346)

Change in fair value of note receivable

(note 6)

31,625

3,891

42,272

3,891

24,235

(528)

26,690

(11,455)

Net loss for the period

(265,326)

(327,927)

(999,600)

(1,692,679)

Other comprehensive loss

Item that will be recognized in profit or loss:

Exchange loss on translation

(454)

(129)

(7,678)

(7,043)

Comprehensive loss for the period

$

(265,780)

$

(328,056)

$

(1,007,278)

$

(1,699,722)

Net loss for the period attributable to:

Common shareholders of the

Corporation

$

(258,986)

$

(313,939)

$

(926,537)

$

(1,651,193)

Non-controlling interest (note 14)

(6,340)

(13,988)

(73,063)

(41,486)

$

(265,326)

$

(327,927)

$

(999,600)

$

(1,692,679)

Comprehensive loss for the period

attributable to:

Common shareholders of the

Corporation

$

(258,947)

$

(313,463)

$

(933,545)

$

(1,652,713)

Non-controlling interest (note 14)

(6,833)

(14,593)

(73,733)

(47,009)

$

(265,780)

$

(328,056)

$

(1,007,278)

$

(1,699,722)

Loss per share for the period:

Basic and diluted (note 11)

$

(0.02)

$

(0.02)

$

(0.06)

$

(0.10)

See accompanying notes to the interim consolidated financial statements.

BLOCKCHAINK2 CORP.

Interim Consolidated Statements of Shareholders' Equity For the nine months ended June 30, 2022 and 2021 (Unaudited - Expressed in Canadian dollars)

2022

2021

Share capital

Balance, beginning of period

$

47,263,590

$

47,039,893

Issued to officers pursuant to their employment contracts

-

72,000

Issued pursuant to options exercised

-

65,644

Fair value of exercised options transferred from contributed surplus

-

86,053

Balance, end of period

47,263,590

47,263,590

Contributed surplus

Balance, beginning of period

13,034,684

12,207,252

Share-based compensation

-

913,485

Fair value of exercised options transferred to contributed surplus

-

(86,053)

Balance, end of period

13,034,684

13,034,684

Accumulated foreign currency translation

Balance, beginning of period

1,451,235

1,456,192

Loss on translation

(7,678)

(7,043)

Balance, end of period

1,443,557

1,449,149

Deficit

Balance, beginning of period

(60,287,001)

(58,081,407)

Net loss for the period

(926,537)

(1,651,193)

Balance, end of period

(61,213,538)

(59,732,600)

Non-controlling interest

Balance, beginning of period

46,546

65,041

Net loss for the period

(73,063)

(41,486)

Loss on translation

(670)

(3,752)

Balance, end of period

(27,187)

19,803

Shareholders' equity

$

501,106

$

2,034,626

See accompanying notes to the interim consolidated financial statements.

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Blockchaink2 Corp. published this content on 30 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2022 18:29:10 UTC.