Blue Earth Resources : Audited Financial Statements for the Year Ended February 28, 2022

Audited Financial Statements

For the Years Ended February 28, 2022 and 2021

TABLE OF CONTENTS

Report of Independent Registered Public Accounting Firm	1
Balance Sheets	2
Statements of Operations	3
Statements of Changes in Stockholders' Equity (Deficit)	4
Statements of Cash Flows	5
Notes to the Financial Statements	6-21

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of

Blue Earth Resources, Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Blue Earth Resources, Inc. (the "Company") as of February 28, 2022 and 2021, and the related statements of operations, stockholders' deficit and cash flows for each of the years in the two-year period ended February 28, 2022 and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of February 28, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the two- year period ended February 28, 2022, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 the 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 about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its 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 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinion.

Substantial Doubt about the Company's Ability to Continue as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has a history of losses, an accumulated deficit, and has not generated cash from operations to support a meaningful and ongoing business plan. Management's evaluation of the events and conditions and management's plans regarding those matters also are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to that matter.

Rodefer Moss & Co, PLLC

We have served as the Company's auditor since 2022

Kingsport, Tennessee

May 20, 2022

BLUE EARTH RESOURCES, INC.

BALANCE SHEETS

		February 28,		February 28,
		2022		2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	59,513	$	40,779
Restricted cash		400,000		-
Accounts receivable		2,004,706		227,302
Prepaid expenses and other current assets		71,030		33,136
Total current assets		2,535,249		301,217
OTHER ASSETS
Intangibles, net		68,583		72,708
Total assets	$	2,603,832	$	373,925
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable	$	2,024,945	$	287,287
Payroll related liabilities		40,975		53,910
Accrued expenses, related party		1,847		272,912
Total current and total liabilities		2,067,767		614,109
STOCKHOLDERS' EQUITY (DEFICIT)
Series B Convertible Preferred Stock, 10,000,000 shares
authorized, 1,000 shares outstanding as of February 28, 2022
and February 28, 2021		4		4
Series C Convertible Preferred stock, 17,000,000 shares
authorized, 9,364,150 shares outstanding as of February 28, 2022
and February 28, 2021		37,457		37,457
Series D Convertible Preferred Stock, 17,000,000 shares
authorized, 9,614,150 shares outstanding as of February 28, 2022
and February 28, 2021		38,456		38,456
Common stock, $0.004 par, 200,000,000 shares authorized,
76,788,402 and 47,189,252 shares outstanding as of
February 28, 2022 and February 28, 2021, respectively		307,153		188,756
Additional paid-in capital		12,075,450		10,143,606
Accumulated deficit		(11,922,455)		(10,648,463)
Total stockholders' equity (deficit)		536,065		(240,184)
Total liabilities and stockholders' equity (deficit)	$	2,603,832	$	373,925

See accompanying notes to the financial statements.

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BLUE EARTH RESOURCES, INC.

STATEMENTS OF OPERATIONS

		For the Years Ended
		February 28,
		2022		2021
REVENUE
Sales, net	$	28,694,762	$	2,694,945
Direct cost of sales		28,465,157		2,678,898
Gross margin		229,605		16,047
OPERATING EXPENSES:
Selling, general and administrative		1,499,861		720,054
Total operating expenses		1,499,861		720,054
OPERATING LOSS		(1,270,256)		(704,007)
OTHER EXPENSES:
Interest expense		(3,736)		-
Total other expenses		(3,736)		-
NET LOSS	$	(1,273,992)	$	(704,007)
NET LOSS PER COMMON SHARE
Basic and diluted	$	(0.02)	$	(0.02)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic and diluted		62,089,741		34,771,600

See accompanying notes to the financial statements.

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