Inter Rock Minerals : Financial Statements 2021 Q3

Condensed Consolidated Interim

Financial Statements

Unaudited

Expressed in United States dollars

For the nine months ended September 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.

November 24, 2021

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Inter-Rock Minerals Inc.

Condensed Consolidated Interim Balance Sheets

As at

(Expressed in thousands of United States Dollars)

UNAUDITED		September 30,	December 31,
Note	2021	2020
		$	$
ASSETS
Current assets
Cash		2,401	2,072
Accounts receivable		5,183	6,353
Inventories	6	3,506	2,535
Prepaid expenses and other assets		866	584
TOTAL CURRENT ASSETS		11,956	11,544
Non-current assets
Properties, plant and equipment	7	7,437	6,397
Intangible assets	8	1,445	1,691
Goodwill	8	1,809	1,809
TOTAL ASSETS		22,647	21,441
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities		4,669	4,786
Current portion of long term debt	9	2,030	2,598
Current portion of lease obligations	10	463	561
TOTAL CURRENT LIABILITIES		7,162	7,945
Non-current liabilities
Long term debt	9	2,256	1,434
Lease obligations	10	728	999
Deferred income tax liability		294	294
Asset retirement obligation	11	75	75
Series A preferred shares	12	3,417	3,417
TOTAL LIABILITIES		13,932	14,164
Equity
Share capital	13	5,791	5,794
Contributed surplus		315	315
Retained earnings		2,609	1,168
TOTAL EQUITY		8,715	7,277
TOTAL LIABILITIES AND EQUITY		22,647	21,441

Financial Commitments (Note 19)

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)

UNAUDITED

REVENUE

Note

5,17

For the three months ended September 30, September 30,

2021 2020

$$

16,609 12,067

For the nine months ended September 30, September 30,

2021 2020

$$

52,318 40,931

COST OF SALES
Operating costs	5	13,983	9,474	44,654	33,824
GROSS PROFIT		2,626	2,593	7,664	7,107
OPERATING EXPENSES
Selling, general and administrative	5	1,639	1,319	4,832	4,163
Amortization and depletion	7	348	341	1,011	1,023
Amortization of intangible assets	8	82	82	246	246
INCOME BEFORE FINANCING COSTS		557	851	1,575	1,675
FINANCING COSTS
Gain on debt forgiveness	9	-	-	(318)	-
Interest on Series A preferred shares	12	28	28	56	28
Interest on debt and lease obligations	9,10	65	77	196	242
INCOME BEFORE INCOME TAXES		464	746	1,641	1,405
INCOME TAXES
Current		97	77	200	127
NET INCOME AND COMPREHENSIVE INCOME	367	669	1,441	1,278
Basic income per share	14	0.02	0.03	0.06	0.06
Diluted income per share	14	0.01	0.02	0.04	0.03

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 September 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	(60)	-	-	(60)
Net income and comprehensive income	-	-	1,278	1,278
BALANCE, SEPTEMBER 30, 2020	5,804	315	668	6,787
Balance, December 31, 2020	5,794	315	1,168	7,277
Shares purchased for cancellation	(3)	-	-	(3)
Net income and comprehensive income	-	-	1,441	1,441
BALANCE, SEPTEMBER 30, 2021	5,791	315	2,609	8,715

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

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