Inter Rock Minerals : Financial Statements 2021 Q2

Condensed Consolidated Interim

Financial Statements

Unaudited

Expressed in United States dollars

For the six months ended June 30, 2021

NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed consolidated interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by, and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these financial statements.

INTER-ROCK MINERALS INC.

August 23, 2021

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Inter-Rock Minerals Inc.

Condensed Consolidated Interim Balance Sheets

As at

(Expressed in thousands of United States Dollars)

UNAUDITED		June 30,	December 31,
Note	2021	2020
		$	$
ASSETS
Current assets
Cash		3,140	2,072
Accounts receivable		4,924	6,353
Inventories	6	3,138	2,535
Prepaid expenses and other assets		871	584
TOTAL CURRENT ASSETS		12,073	11,544
Non-current assets
Properties, plant and equipment	7	6,523	6,397
Intangible assets	8	1,527	1,691
Goodwill	8	1,809	1,809
TOTAL ASSETS		21,932	21,441
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities		4,911	4,786
Current portion of long term debt	9	1,773	2,598
Current portion of lease obligations	10	474	561
TOTAL CURRENT LIABILITIES		7,158	7,945
Non-current liabilities
Long term debt	9	1,824	1,434
Lease obligations	10	815	999
Deferred income tax liability		294	294
Asset retirement obligation	11	75	75
Series A preferred shares	12	3,417	3,417
TOTAL LIABILITIES		13,583	14,164
Equity
Share capital	13	5,792	5,794
Contributed surplus		315	315
Retained earnings		2,242	1,168
TOTAL EQUITY		8,349	7,277
TOTAL LIABILITIES AND EQUITY		21,932	21,441

Financial Commitments (Note 19)

Subsequent Events (Note 20)

The accompanying notes are an integral part of these consolidated financial statements.

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Inter-Rock Minerals Inc.

Condensed Consolidated Interim Statements of Net and Comprehensive Income

(Expressed in thousands of United States Dollars except for outstanding shares and per share amounts)

	For the three months ended	For the six months ended
UNAUDITED	Note	June 30,	June 30,	June 30,	June 30,
2021	2020	2021	2020
		$	$	$	$
REVENUE	5,17	17,860	14,187	35,709	28,864
COST OF SALES
Operating costs	5	15,233	12,285	30,671	24,350
GROSS PROFIT		2,627	1,902	5,038	4,514
OPERATING EXPENSES
Selling, general and administrative	5	1,713	1,462	3,193	2,844
Amortization and depletion	7	315	344	663	682
Amortization of intangible assets	8	82	82	164	164
INCOME BEFORE FINANCING COSTS		517	14	1,018	824
FINANCING COSTS
Gain on debt forgiveness	9	(318)	-	(318)	-
Interest on Series A preferred shares	12	28	-	28	-
Interest on debt and lease obligations	9,10	66	83	131	165
INCOME BEFORE INCOME TAXES		741	(69)	1,177	659
INCOME TAXES
Current		73	-	103	50
NET INCOME AND COMPREHENSIVE INCOME	668	(69)	1,074	609
Basic income per share	14	0.03	0.00	0.05	0.03
Diluted income per share	14	0.02	0.00	0.03	0.02
Weighted average number of shares
outstanding
Basic		22,312,811	22,438,811	22,312,811	22,438,811
Diluted		39,449,811	39,575,791	39,449,811	39,575,791

The accompanying notes are an integral part of these consolidated financial statements.

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Inter-Rock Minerals Inc.

Condensed Consolidated Interim Statements of Changes in Equity

As at and for the periods ended June 30th

(Expressed in thousands of United States Dollars)

	Share
	Capital	Contributed	Retained
	(Note 13)	Surplus	Earnings	Total
	$	$	$	$
Balance, December 31, 2019	5,864	315	(610)	5,569
Shares purchased for cancellation	(45)	-	-	(45)
Net income and comprehensive income	-	-	609	609
BALANCE, JUNE 30, 2020	5,819	315	(1)	6,133
Balance, December 31, 2020	5,794	315	1,168	7,277
Shares purchased for cancellation	(2)	-	-	(2)
Net income and comprehensive income	-	-	1,074	1,074
BALANCE, JUNE 30, 2021	5,792	315	2,242	8,349

The accompanying notes are an integral part of these consolidated financial statements.

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