AirIQ : Q2 2022 Financial Statements

Consolidated Condensed Interim Financial Statements (Unaudited)

AirIQ Inc.

For the Three Months Ended September 30, 2022

Notice to Reader:

The following consolidated condensed interim financial statements have been prepared by Management of AirIQ Inc. and have not been reviewed by the Company's external auditors.

AirIQ Inc.

CONSOLIDATED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(in thousands of Canadian dollars)

	September 30, 2022	March 31, 2022
	$	$
ASSETS
Current assets	2,111
Cash and cash equivalents (note 14)	1,900
Prepaid expenses and deposits	117	82
Trade and other receivables (notes 12 and 14)	684	433
Inventory (note 5)	442	515
Total current assets	3,354	2,930
Non-current assets	765
Software (note 6)	719
Rental units (note 6)	901	841
Property and equipment (note 6)	16	21
Right-of-use asset (note 13)	35	46
Total non-current assets	1,717	1,627
Total assets	5,071	4,557
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	568
Accounts payable and accrued liabilities (notes 12, 13 and 14)	736
Deferred revenues (note 7)	717	522
Lease obligations (note 13)	20	26
Total current liabilities	1,305	1,284
Non-current liabilities	85
Deferred revenues (note 7)	78
Lease obligations (note 13)	21	28
Total non-current liabilities	106	106
Total liabilities	1,411	1,390
Shareholders' equity	91,296	91,355
Share capital (note 9(a))
Other paid-in capital (note 9(b))	4,448	4,448
Contributed surplus (note 9(c))	2,801	2,791
Deficit	(94,885)	(95,427)
Total shareholders' equity	3,660	3,167
Total liabilities and shareholders' equity	5,071	4,557

Commitments and contingencies (note 13)
Authorized for issue on behalf of the Board:	"Vernon Lobo"	"Geoffrey Rotstein"
See accompanying notes	Director	Director

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AirIQ Inc.

CONSOLIDATED CONDENSED INTERIM STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(UNAUDITED)

(in thousands of Canadian dollars except per share amounts)

	Three Months Ended		Six Months Ended
	September 30th			September 30th
	2022	2021			2022		2021
	$	$			$		$
Revenues	959				1,910
Recurring revenue	859				1,661
Hardware and other revenue	210	320			491		600
Total revenues	1,169	1,179			2,401		2,261
Direct cost of sales (notes 5 and 6)	461	494			950		913
Gross profit	708	685			1,451		1,348
Expenses	177				378
Sales and marketing	182				356
Research and development	29	30			59		57
General and administration	276	213			488		394
Total expenses (note 11 and 18)	482	425			925		807
Income before other expenses	226	260			526		541
Other expenses	1				2
Interest expense (note 13(b))	1				2
Interest income	(6)	(1)			(8)		(1)
Depreciation and amortization (notes 6 and 13(a))	81	76			160		150
Foreign exchange loss (gain)	(141)	(47)			(180)		(18)
Stock-based compensation (note 10(a))	9	-			10		2
Total other expenses (income)	(56)	29			(16)		135
Net income and comprehensive income for the year	282	231			542		406
Net income per share (note 17)
Basic	0.01	-	$	0.02	$	0.01
Diluted	0.01	-	$	0.02	$	0.01

See accompanying notes

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AirIQ Inc.

CONSOLIDATED CONDENSED INTERIM STATEMENTS OF

CASH FLOWS (UNAUDITED)

(in thousands of Canadian dollars)

	3 months ended	6 months ended
	September 30	September 30
	2022	2021	2022	2021
	$	$	$	$
Cash flows from operating activities	282		542
Net income for the period	231	406
Adjustments to reconcile profit to net cash used in operating activities	9		10
Stock-based compensation (note 10(a))	-	2
Depreciation of property, plant and equipment (note 6)	137	107	268	208
Depreciation of right-of-use asset (note 13)	6	6	11	12
Interest expense	1	1	2	1
Changes in non-cash balances related to operations	69		(251)
Trade and other receivables	297	87
Inventory	102	77	73	(27)
Prepaid expenses and deposits	(6)	(2)	(37)	(23)
Accounts payable and accrued liabilities	(224)	(239)	(168)	(190)
Deferred revenue	70	220	202	433
Total cash inflows from operating activities	446	698	652	910
Cash flows from investing activities	(118)		(189)
Software (note 6)	(103)	(167)
Rental units (note 6)	(89)	(126)	(180)	(222)
Total cash outflows from investing activities	(207)	(229)	(369)	(389)
Cash flows from financing activities	(7)		(13)
Lease payments (note 13)	(6)	(13)
Proceeds from exercise of stock options	-	-	-	23
Repurchase of common shares under NCIB (note 9)	(15)	(29)	(59)	(85)
Total cash outflows from financing activities	(22)	(35)	(72)	(75)
Net change in cash and cash equivalents	217	434	211	446
Cash and cash equivalents at beginning of period	1,894	1,841	1,900	1,829
Cash and cash equivalents at end of period	2,111	2,275	2,111	2,275
Supplementary disclosure	2,111		2,111
Cash	2,275	2,275

See accompanying notes

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AirIQ Inc.

CONSOLIDATED CONDENSED INTERIM

STATEMENTS OF CHANGES IN EQUITY (DEFICIENCY)

(UNAUDITED)

	(in thousands of Canadian dollars)
		Other
	Share	paid-in	Contributed
	capital	capital	surplus	Deficit	Total
	$	$	$	$	$
Balance March 31, 2021	91,461	4,448	2,805	(95,994)	2,720
Income for the period	-	-	-	406	406
Proceeds from exercise of stock options	41	-	(18)	-	23
Stock based compensation	-	-	2	-	2
Common shares repurchased under NCIB	(85)	-	-	-	(85)
Balance as at September 30, 2021	91,417	4,448	2,789	(95,588)	3,066
Income for the period	-	-	-	161	161
Proceeds from exercise of stock options	-	-	-	-	-
Stock based compensation	-	-	2	-	2
Common shares repurchased under NCIB	(62)	-	-	-	(62)
Balance as at March 31, 2022	91,355	4,448	2,791	(95,427)	3,167
Income for the period	-	-	-	542	542
Proceeds from exercise of stock options	-	-	-	-	-
Stock based compensation	-	-	10	-	10
Common shares repurchased under NCIB	(59)	-	-	-	(59)
Balance as at September 30, 2022	91,296	4,448	2,801	(94,885)	3,660

See accompanying notes

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