LQWD FINTECH CORP.
Condensed Consolidated Interim Financial Statements
First Quarter ended May 31, 2022
Unaudited
(Expressed in Canadian dollars)
1
LQWD FINTECH CORP.
Condensed Consolidated Interim Statements of Financial Position
(Expressed in Canadian Dollars)
May 31, | February 28, | |||
2022 | 2022 | |||
Assets | ||||
Current: | ||||
Cash and cash equivalents | $ | 962,854) | $ | 871,449) |
Amounts receivable | 35,293) | 39,696) | ||
Digital currencies (Note 8) | 5,658,989) | 8,295,599) | ||
Prepaid expenses | 21,273) | 47,636) | ||
6,678,409) | 9,254,380) | |||
Non-Current: | ||||
Intangible assets (Note 5) | 4,961,817) | 5,649,733) | ||
Goodwill | 2,838,279) | 2,838,279) | ||
Property and equipment (Note 6) | 159,498) | 178,250) | ||
Restricted cash | 65,148) | 65,135) | ||
$ | 14,703,151) | $ | 17,985,777) | |
Liabilities and Equity | ||||
Current: | ) | |||
Accounts payable and accrued liabilities | $ | 449,953) | $ | 400,775) |
Current portion of lease liability | 52,394) | 51,992) | ||
502,347) | 452,767) | |||
Non-Current: | ||||
Long term portion of lease liability | 65,982) | 77,362) | ||
568,329) | 530,129) | |||
Shareholders' equity | ||||
Capital stock (Note 7(b)) | 55,853,279) | 55,823,279) | ||
Contributed surplus (Note 7(d)) | 8,225,131) | 7,802,520) | ||
Deficit | (49,943,588) | (46,170,151) | ||
14,134,822) | 17,455,648) | |||
$ | 14,703,151) | $ | 17,985,777) |
Nature of operations and going concern (Note 1)
Subsequent events (13)
See accompanying notes.
These financial statements are authorized for issue by the Board of Directors on August 2, 2022.
"Giuseppe (Pino) Perone"
…………………………………………………Director
Giuseppe (Pino) Perone
"Ashley Garnot"
…………………………………………………Director
Ashley Garnot
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LQWD FINTECH CORP.
Condensed Consolidated Interim Statements of Comprehensive Loss
(Expressed in Canadian Dollars)
For the three months ended May 31, | 2022 | 2021 | ||
Revenue | $ | 4,878) | $ | 35,210) |
General and administrative expenses | ||||
Amortization of intangible assets | 687,916) | 46,001) | ||
Amortization of property and equipment | 14,895) | 194) | ||
Audit and accounting | 12,500) | 5,000) | ||
Bank charges | 1,287) | 1,260) | ||
Consulting fees | 118,816) | 23,000) | ||
Insurance | 296) | -) | ||
Legal | 985) | 174,436) | ||
Marketing | 98,225) | 75,906) | ||
Office and administration | 13,302) | 3,130) | ||
Office rent | 7,171) | 548) | ||
Platform administration | 17,499) | 26,856) | ||
Research and development | 111,704) | 3,545) | ||
Salaries and benefits | 88,900) | 27,605) | ||
Share-based compensation | 422,611) | 55,264) | ||
Shareholder relations | 8,935) | 4,375) | ||
Transfer and filing fees | 1,723) | 67,578) | ||
Travel and entertainment | 2,067) | 398) | ||
(1,608,832) | (515,096) | |||
Other items | ||||
Foreign exchange | (19,083) | (15,698) | ||
Interest and accretion income | 428) | 233) | ||
Loss on revaluation (Note 8) | (2,146,971) | -) | ||
Write-off of property and equipment (Note 6) | (3,857) | -) | ||
(2,169,483) | (15,465) | |||
Net loss for the period | (3,773,437) | (495,351) | ||
Other comprehensive income | ||||
Change in revaluation reserve (Note 8) | -) | (89,533) | ||
Comprehensive loss for the period | $ | (3,773,437) | $ | (584,884) |
Loss per share, basic and diluted | $ | (0.04) | $ | (0.02) |
Weighted average number of common shares outstanding | 97,709,329) | 31,027,572) | ||
See accompanying notes. |
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LQWD FINTECH CORP.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in Canadian Dollars)
For the three months ended May 31, | 2022 | 2021 | ||
Operating activities | ||||
Net loss for the period | $ | (3,773,437) | $ | (495,351) |
Items not involving cash: | ||||
Amortization of intangible assets | 687,916) | 46,001) | ||
Amortization of property and equipment | 14,895) | 194) | ||
Interest and accretion | (13) | (40) | ||
Lease liability | (10,978) | -) | ||
Loss on revaluation | 2,146,971) | -) | ||
Share-based compensation | 422,611) | 55,264) | ||
Write-off property and equipment | 3,857) | -) | ||
(508,178) | (393,932) | |||
Changes non-cash working capital: | ||||
Amounts receivable | 4,403) | 7,573 | ||
Prepaid expenses | 26,363) | (841) | ||
Accounts payable and accrued liabilities | 49,178) | (43,172) | ||
79,944) | (36,440) | |||
Cash used in operating activities | (428,234) | (430,372) | ||
Financing activities | ||||
Shares subscribed | -)) | 3,937,990) | ||
Warrants exercised | 30,000) | 116,666) | ||
Cash provided by financing activities | 30,000) | 4,054,656) | ||
Investing activity | ||||
Sale of digital currencies | 486,398) | -) | ||
Cash provided by investing activity | 486,398) | -) | ||
Net inflow of cash and cash equivalents | 91,405( | 3,624,284( | ||
Cash and cash equivalents, beginning of period | 871,449) | 1,836,827) | ||
Cash and cash equivalents, end of period | $ | 962,854) | $ | 5,461,111) |
Supplementary disclosures: | ||||
Interest received | $ | 415) | $ | 193) |
Cash | $ | 945,712) | $ | 194,857) |
Short-term deposits | 17,142) | 266,254) | ||
Restricted cash | -) | 5,000,000) | ||
$ | 962,854) | $ | 5,461,111) |
See accompanying notes.
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LQWD FINTECH CORP.
Condensed Consolidated Interim Statements of Changes in Equity
(Expressed in Canadian Dollars)
Common Shares | |||||||||||||
Revaluation | |||||||||||||
Shares | Reserve | Contributed | |||||||||||
Number | Amount | Subscribed | (Note 6) | Surplus | Deficit | Total | |||||||
Balance, March 1, 2022 | 97,627,807 | $ | 55,823,279) | $ | -) | $ | -) | $ | 7,802,520) | $ | (46,170,151) | $ | 17,455,648) |
Share-based payments | - | -) | -) | -) | 422,611) | -) | 422,611) | ||||||
Net loss for year | - | -) | -) | -) | -) | (3,773,437) | (3,773,437) | ||||||
Warrants exercised | 150,000 | 30,000 | - | - | - | - | 30,000) | ||||||
Balance, May 31, 2022 | 97,777,807 | $ | 55,853,279 | $ | -) | $ | -) | $ | 8,225,131 | $ | (49,943,588) | $ | 14,134,822) |
Balance, March 1, 2021 | 30,683,189 | $ | 23,005,991) | $ | 1,062,010) | $ | 92,083) | $ | 1,900,648) | $ | (23,210,200) | $ | 2,850,532) |
Share-based payments | -) | - | - | -) | 55,264 | -) | 55,264( | ||||||
Shares subscribed | -) | - | 3,937,990 | -) | - | -) | 3,937,990) | ||||||
Net loss for period | -) | - | - | -) | - | (495,351) | (495,351) | ||||||
Revaluation of digital currency | -) | - | - | (89,533) | - | -) | (89,533) | ||||||
Warrants exercised | 583,332) | 116,666 | - | -) | - | -) | 116,666) | ||||||
Balance, May 31, 2021 | 31,266,521) | $ | 23,122,657 | $ | 5,000,000 | $ | 2,550) | $ | 1,955,912 | $ | (23,705,551) | $ | 6,375,568) |
See accompanying notes.
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LQwD FinTech Corp. published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2022 22:21:04 UTC.