Starrex International : Financial Statements for the Period Ending September 30, 2021

Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2021 and 2020

(Unaudited) (expressed in U.S. dollars)

Management's Responsibility for

Condensed Interim Consolidated Financial Statements

The accompanying unaudited condensed interim consolidated financial statements of Starrex International Ltd. (the "Company" or "Starrex") are the responsibility of the Board of Directors.

The unaudited condensed interim consolidated financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the audited consolidated financial statements as at December 31, 2020. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the end of the reporting period. In the opinion of management, the unaudited condensed interim consolidated financial statements have been prepared within acceptable limits of materiality and are in accordance with International Accounting Standard 34 Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards appropriate in the circumstances.

Management has established processes, which are in place to provide it sufficient knowledge to support management representations that it has exercised reasonable diligence that (i) the unaudited condensed interim consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the unaudited condensed interim consolidated financial statements and (ii) the unaudited condensed interim consolidated financial statements fairly present in all material respects the financial condition, financial performance and cash flows of the Company, as of the date of and for the periods presented by the unaudited condensed interim consolidated financial statements.

The Board of Directors is responsible for reviewing and approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the unaudited condensed interim consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

(Signed): "Dr. Deborah Merritt"

Chief Financial Officer

Toronto, Canada

November 29, 2021

NOTICE TO READER

The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of management. These unaudited condensed interim consolidated financial statements as at, and for the three and nine months ended September 30, 2021 and 2020, have not been reviewed by the Company's auditors.

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Starrex International Ltd.

Condensed Interim Consolidated Statements of Financial Position (Unaudited) (Expressed in U.S. dollars)

	September 30,		December 31,
		2021		2020
ASSETS
Current Assets
Cash	$	2,114,403	$	1,493,600
Accounts receivable		1,197,793		938,049
Prepaid expenses		187,263		109,596
		3,499,459		2,541,245
Non-current assets
Property and equipment, net of depreciation (Note 6)		276,820		62,120
Intangible assets (Note 7)		935,933		1,052,386
Goodwill		915,288		915,288
Right-of-use assets (Note 8)		323,201		126,568
Total Assets	$	5,950,701	$	4,697,607
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	$	870,935	$	967,861
Contract liabilities (Note 10)		930,066		741,874
Current portion of lease liabilities (Note 8)		117,464		113,490
		1,918,465		1,823,225
Non-current Liabilities
Lease liabilities (Note 8)		208,635		25,486
Total liabilities	$	2,127,100	$	1,848,711
Capital and reserves
Share capital (Note 12)		7,707,501		7,519,769
Contributed surplus (Note 13)		390,136		491,118
Accumulated other comprehensive income		(261,534)		(261,534)
Deficit		(4,012,502)		(4,900,457)
Total equity		3,823,601		2,848,896
Total liabilities and equity	$	5,950,701	$	4,697,607

Commitment (Note 18)

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

On Behalf of the Board:

Signed: Matthew D. Hill		Signed: Scott M. Reeves
Chairman		Director

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Starrex International Ltd.

Condensed Interim Consolidated Statements of Income and Comprehensive Income For the periods ended September 30, 2021 and 2020

(Unaudited) (Expressed in U.S. dollars)

		Three Months Ended		Nine Months Ended
		2021	September 30		2021	September 30
			2020			2020
Income	$5,366,494			$	15,889,659
Revenue from contracts with customers (Note 11)		4,879,901	$12,013,452
Expenses	3,594,692				10,675,251
Transaction costs	3,213,662		7,757,409
Payroll expense		753,077		762,883		2,073,808	1,772,626
General and administrative		479,552		259,018		1,397,028		976,024
Professional fees		111,202		83,822		298,950		206,531
Management and corporate services (Note 9)		52,640		52,640		157,920		157,920
Depreciation and amortization (Notes 6, 7 and 8)		83,436		77,856		262,239		264,551
Shareholder services		2,534		2,309		16,909		8,688
Government, regulatory and filing fees		5,968		5,908		19,296		17,282
Share-based payments (Note 13)		-		53,053		-		53,053
Interest expense (Notes 8 and 15)		3,675		3,231		6,761		17,827
	5,086,776		4,514,382		14,908,162	11,231,911
Income before provision for income taxes		279,718		365,519		981,497		781,541
Income tax expense		37,281		15,638		93,542		46,083
Net income and comprehensive income for the period	$ 242,437	$	349,881	$	887,955	$ 735,458
Basic net income per share	$	0.02	$	0.02	$	0.06	$	0.05
Diluted net income per share	$	0.02	$	0.02	$	0.06	$	0.05
Basic weighted average number
of common shares outstanding (Note 14)	15,691,429	15,552,525		15,691,429	15,552,525
Diluted weighted average number
of common shares outstanding (Note 14)	15,873,505	15,552,525		15,873,505	15,552,525

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

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Starrex International Ltd.

Condensed Interim Consolidated Statements of Changes in Equity For the nine-monthperiods ended September 30, 2021 and 2020 (Unaudited) (Expressed in U.S. dollars)

									Accumulated
									Other
	Number of				Contributed			Comprehensive
	Shares		Value		Surplus		Deficit		Income		Total
Balance, December 31, 2019	15,552,525		7,519,769		297,427		(6,712,786)		(261,534)		842,876
Options granted (Note 13)	-		-		316,666		-		-		316,666
Options expired (Note 13)	-		-		(58,958)		58,958		-		-
Net income for the period	-		-		-		735,458		-		735,458
Balance, September 30, 2020	15,552,525	$	7,519,769	$	555,135	$	(5,918,370)	$	(261,534)	$	1,895,000
Balance, December 31, 2020	15,552,525	$	7,519,769	$	491,118	$	(4,900,457)	$	(261,534)	$	2,848,896
Options exercised (Note 13)	200,000		187,732		(100,982)		-		-		86,750
Net income for the period	-		-		-		887,955		-		887,955
Balance, September 30, 2021	15,752,525	$	7,707,501	$	390,136	$	(4,012,502)	$	(261,534)	$	3,823,601

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

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