Inter Rock Minerals : Financial Statements 2022 Q3

Condensed Consolidated Interim Financial Statements

Unaudited

Expressed in United States dollars

For the nine months ended September 30, 2022

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 16, 2022

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Inter-Rock Minerals Inc.

Condensed Consolidated Interim Balance Sheets (Expressed in thousands of United States Dollars)

		September 30,	December 31,
UNAUDITED	Note	2022	2021
		$	$
ASSETS
Current assets
Cash		3,796	2,266
Accounts receivable		7,885	5,161
Inventories	7	3,015	1,624
Prepaid expenses and other assets		672	1,110
Assets held for sale		-	6,595
Total Current Assets		15,368	16,756
Non-current assets
Deferred tax asset		-	262
Properties, plant and equipment	8	2,420	2,354
Intangible assets	9	1,126	1,368
Goodwill	9	1,808	1,808
Total Assets		20,722	22,548
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities		6,169	4,345
Current portion of long term debt	10	481	1,316
Current portion of lease obligations	11	225	330
Liabilities held for sale		-	3,837
Total Current Liabilities		6,875	9,828
Non-current liabilities
Long term debt	10	3	280
Lease obligations	11	279	422
Deferred tax liability		672	-
Asset retirement obligation	12	26	26
Series A preferred shares	13	3,417	3,417
Total Liabilities		11,272	13,973
Equity
Share capital	14	5,791	5,791
Contributed surplus		315	315
Retained earnings		3,344	2,469
Total Equity		9,450	8,575
Total Liabilities and Equity		20,722	22,548

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 nine months ended
		September 30,	September 30,	September 30,	September 30,
		2022	2021	2022	2021
UNAUDITED	Note		(restated)		(restated)
		$	$	$	$
REVENUE	6,18	26,426	15,591	68,152	49,340
COST OF SALES
Operating costs	6	23,133	13,440	59,897	42,966
GROSS PROFIT		3,293	2,151	8,255	6,374
OPERATING EXPENSES
Gain on sale of asset	5	-	-	(393)	-
Selling, general and administrative	6	1,632	1,373	4,854	4,043
Amortization and depletion	8	124	138	419	407
Amortization of intangible assets	9	81	82	242	246
INCOME BEFORE FINANCING COSTS		1,456	558	3,133	1,678
FINANCING COSTS
Gain on debt forgiveness		-	-	-	(318)
Interest on Series A preferred shares	13	36	28	70	56
Interest on debt and lease obligations	10,11	15	41	67	129
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES		1,405	489	2,996	1,811
INCOME TAXES
Current		188	97	570	200
		188	97	570	200
NET INCOME AND COMPREHENSIVE INCOME
FROM CONTINUING OPERATIONS		1,217	392	2,426	1,611
NET (LOSS) AND COMPREHENSIVE (LOSS)
FROM DISCONTINUED OPERATIONS	5	-	(25)	-	(170)
NET INCOME AND COMPREHENSIVE INCOME		1,217	367	2,426	1,441
Basic income per share	15	0.05	0.02	0.11	0.06
Diluted income per share	15	0.03	0.01	0.06	0.04
Weighted average number of shares outstanding
Basic		22,303,311	22,312,811	22,303,311	22,312,811
Diluted		39,440,291	39,449,811	39,440,291	39,449,811

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

(Expressed in thousands of United States Dollars)

	Share
	Capital	Contributed	Retained
	(Note 14)	Surplus	Earnings	Total
	$	$	$	$
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
Balance, December 31, 2021	5,791	315	2,469	8,575
Prior year cumulative subsidiary losses	-	-	(1,551)	(1,551)
Net income and comprehensive income	-	-	2,426	2,426
Balance, September 30, 2022	5,791	315	3,344	9,450

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

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