Personas Social Incorporated : Interim Consolidated Financial Statements - September

2021

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Personas Social Incorporated (formerly, Peeks Social Ltd.)

For the Nine Months Ended September 30, 2021 and the Ten Months Ended September 30, 2020

(Expressed in Canadian Dollars)

Personas Social Incorporated (formerly, Peeks Social Ltd.)

Interim Consolidated Statements of Financial Position

As At September 30, 2021 and December 31, 2020

(Expressed in Canadian Dollars)

	September 30,	December 31,
	2021	2020
Assets
Current assets
Cash	$94,879	$87,241
Trade receivables, net of expected credit losses (Note 13)	207,821	246,164
Other receivables and deposits	84,949	320,904
Lease receivable (Note 5)	204,435	182,810
Prepaid expenses and deposits	95,939	91,002
Total current assets	$688,023	$928,121
Non-current assets
Prepaid expenses	57,271	51,213
Lease receivable (Note 5)	280,403	436,551
Property and equipment (Note 6)	856,383	920,439
Intangible asset (Note 14)	20,800	-
Goodwill (Note 4)	5,768,390	5,768,390
Total Non-current assets	$6,983,247	$7,176,593
Total assets	$7,671,270	$8,104,714
Liabilities
Current liabilities
Trade payables and accrued liabilities (Notes 7 and 16)	$3,637,912	$3,158,036
Customer deposits	1,494,729	1,399,669
Due to related parties (Note 11)	1,456,668	1,926,921
Secured notes and convertible debt (Note 10)	250,000	250,000
Lease liabilities (Note 15)	392,357	350,854
Total current liabilities	$7,231,666	$7,085,480
Non-current liabilities
Long term deposit	76,018	67,977
Lease liabilities (Note 15)	1,073,159	1,372,841
Government Assistance (Note 8)	75,326	63,509
Provision (Note 16)	86,200	86,200
Total Non-current liabilities	$1,310,703	$1,590,527
Total liabilities	$8,542,369	$8,676,007
Shareholders' Equity (Deficiency)
Share capital (Note 9)	$32,879,525	$32,591,185
Contributed surplus	2,137,135	2,603,696
Warrants reserve (Note 9)	81,854	862,245
Deficit	(35,969,611)	(36,628,419)
	$(871,099)	$(571,293)
Total liabilities and shareholders' equity (deficiency)	$7,671,270	$8,104,714
Nature of operations and going concern (Note 1)
Related party transactions (Note 11)
Legal proceedings, contingencies and provisions (Note 16)
Contingency (Note 18)
See accompanying notes
Approved on behalf of the Board
Mark Itwaru, Director	William Lavin, Director

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Personas Social Incorporated (formerly, Peeks Social Ltd.)

Interim Consolidated Statements of Loss and Comprehensive Loss

For the Three & Nine Months Ended September 30, 2021 and the Three & Ten Months Ended September 30, 2020

(Expressed in Canadian Dollars)

	Three	Three	Nine	Ten
	Months Ended	Months Ended	Months Ended	Months Ended
	September 30,	September 30,	September 30,	September 30,
	2021	2020	2021	2020
Revenue
Tipping revenue	$685,201	$748,471	$2,129,316	$2,049,448
Virtual currency revenue	258,347	288,371	781,808	785,568
	943,548	1,036,842	2,911,124	2,835,016
Cost of Revenue	528,729	578,830	1,736,209	1,647,901
Gross Margin	414,819	458,012	1,174,915	1,187,115
Expenses
Wages and benefits	158,415	272,144	580,469	1,241,299
General and administrative	115,269	175,585	365,639	618,712
Stock-based compensation	-	-	-	790,293
(Note 9)
Advertising and promotion	11,044	52,179	77,039	147,294
Consulting fees (Note 11)	13,714	114,600	61,134	474,056
Professional fees	26,623	168,633	190,605	372,741
Insurance	32,400	29,700	102,669	81,143
Rent	65,217	61,032	195,652	229,657
Depreciation (Note 6)	47,450	42,482	134,901	146,555
	470,132	916,355	1,708,108	4,101,750
Net Loss before under	(55,313)	(458,343)	(533,193)	(2,914,635)
noted items
Unrealised Gain on Intangible	10,706	-	10,706	-
Asset	-
Other income	-	200,774	387,223
Interest income	-		-	1,306
Lease interest income	18,536	24,979	60,652	88,873
Lease interest expense	(55,390)	(67,755)	(175,849)	(236,616)
Interest expense	(9,375)	(9,375)	(28,125)	(45,567)
Loss on foreign exchange	116	2,210	(30,097)	(50,248)
Accretion expense	(1,620)	(591)	(4,674)	(1,887)
	(37,027)	(50,532)	33,387	143,084
Net loss and
comprehensive loss for the	$(92,340)	$(508,874)	$(499,806)	$(2,771,551)
year
Net loss per share
Basic	$(0.0003)	(0.002)	$(0.0015)	(0.009)
Diluted	$(0.0003)	(0.002)	$(0.0015)	(0.009)
Weighted average
number of common
shares outstanding
Basic	324,908,040	322,039,125	324,908,040	322,039,125
Diluted	324,908,040	322,039,125	324,908,040	322,039,125

See accompanying notes

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Personas Social Incorporated (formerly, Peeks Social Ltd.)

Interim Consolidated Statements of Changes in Shareholders' Equity (Deficiency)

For the Nine Months Ended September 30, 2021 and The Ten Months Ended June 30, 2020

(Expressed in Canadian Dollars)

						Total
	Share Capital	Contributed	Warrants		shareholders'
	Number	Amount	surplus	reserve	Deficit	equity
Balance at December 1, 2019	278,810,019	$31,020,581	$1,763,713	$569,988	$(33,290,013)	$64,269
Net loss and comprehensive loss for the period	-	-	-	-	(2,832,299)	(2,832,299)
Expired options (Note 9)	-	-	(636,002)	-	636,002	-
Expired warrants (Note 9)	-	-	-	(192,541)	192,541	-
Issued for cash (Note 9)	43,029,340	1,436,050	-	651,369	-	2,087,419
Stock-based compensation (Note 9)	-	-	790,292	-	-	790,292
Exercise of warrants (Note 9)	1,200,000	134,553	-	(74,553)	-	60,000
Impact of modifications to warrants (Note 9)	-	-	-	112,770	(112,770)	-
Balance at September 30, 2020	323,039,359	32,591,185	1,918,004	1,067,033	(35,406,540)	169,682
Balance at January 1, 2021	322,589,359	32,591,185	2,603,696	862,245	(36,628,419)	(571,293)
Net loss and comprehensive loss for the period	-	-	-	-	(499,806)	(499,806)
Exercise of options (Note 9)	1,000,000	89,862	(39,862)	-	-	50,000
Expired warrants (Note 9)	-	-	-	(731.913)	731,913	-
Expired options (Note 9)	-	-	(426,700)	-	426,700	-
Exercise of warrants (Note 9)	2,000,000	198,478	-	(48,478)	-	150,000
Total Shareholders' equity (deficiency)	325,589,359	$32,879,525	$2,137,135	$81,854	$(35,969,611)	$(871,099)

See accompanying notes

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Personas Social Incorporated (formerly, Peeks Social Ltd.)

Interim Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2021 and The Ten Months Ended September 30, 2020

(Expressed in Canadian Dollars)

	Nine Months Ended		Ten Months Ended
	September 30, 2021		September 30, 2020
Cash flows generated from (used in) operating activities
Net loss for the period	$(499,806)	$(2,771,551)
Items not affecting cash:
Depreciation (Note 6)	134,901	146,555
AP write-off	-	(803,223)
Gain on reversal of trade payables	-	-
CEBA Income (Note 8)	-	-
Stock-based compensation (Note 9)	-	790,293
Other income	-	416,000
Interest expense	201,282	282,183
Interest income on lease		(88,872)
(60,652)
Accretion of lease deposit	8,041	7,651
Accretion of prepaid lease deposit	(6,058)	(5,764)
Realized gain on sale of investments	-	-
Interest paid on lease	(175,849)	(74,161)
Interest received on lease	60,652	28,317
Changes in non-cash working capital items and operating payables
Trade and other receivables	38,343	(216,342)
Other receivables and deposits	235,955	(162,372)
Prepaid expenses	(4,937)	(100,791)
Intangible asset	(20,800)	-
Accounts payable and accrued liabilities	485,009	86,328
Due to/from related parties	(470,254)	1,076,090
Customer deposits	95,060	(229,570)
Deferred financing costs	-	-

Net cash generated from (used in) operating activities	20,888	(1,619,230)
Cash generated from (used in) financing activities
Issuance of units (Note 9)	-	2,167,067
Proceeds from exercise of warrants	200,000	60,000
Interest paid on loans	(18,750)	(42,082)
Repayment of notes and secured notes	-	(322,100)
Payment of lease liabilities	(258,178)	(245,636)
Net cash generated from (used in) financing activities	(76,928)	1,617,249
Cash generated from investing activities
Cash used in purchase of equipment	(70,844)	-
Payment received on lease receivable	134,522	127,987
Proceeds from sale of short-term investments	-	-
Net cash generated from investing activities	63,678	127,987
Net increase (decrease) in cash	7,638	126,006
Cash, beginning of the period	87,241	19,950
Cash, end of the period	94,879		145,956

Non-cash transactions

Impact of IFRS 16 (Note 2)

Conversion of debentures (Note 9)

Shares issued for services and debt settlement (Note 9)

See accompanying notes

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