BLOCKCHAINK2 CORP.
Interim Consolidated Financial Statements
For the three months and nine months ended June 30, 2022 and 2021
(Expressed in Canadian dollars)
BLOCKCHAINK2 CORP.
August 29, 2022
Management's Report to the Shareholders
Management is responsible for the reliability and integrity of these financial statements. The accompanying interim consolidated financial statements have been prepared by management in accordance with International Accounting Standards ("IAS") 34 - Interim Financial Reporting and are in accordance with International Financial Reporting Standards ("IFRS"). The interim consolidated financial statements are presented in Canadian Dollars.
The accompanying interim consolidated financial statements have been prepared using policies and procedures established by management and reflect fairly the Corporation's financial position, results of operations and changes in financial position, within reasonable limits of materiality and within the framework of the accounting policies outlined in the notes to the financial statements. Management has established and maintains a system of internal controls which is designed to provide reasonable assurance that assets are safeguarded from loss or unauthorized use and financial information is reliable and accurate.
The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control. The Board is assisted in exercising its responsibilities through the Audit Committee of the Board, which is composed of a majority of non-management directors. The Audit Committee meets periodically with management and the auditors to satisfy itself that management's responsibilities are properly discharged.
The following interim consolidated financial statements are unaudited and have not been reviewed by the Corporation's auditor.
BLOCKCHAINK2 CORP.
Interim Consolidated Statements of Financial Position As at June 30, 2022 and September 30, 2021 (Expressed in Canadian dollars)
June 30, | September 30, | |||
2022 | 2021 | |||
(Unaudited) | (Audited) | |||
Assets | ||||
Current assets: | ||||
Cash | $ | 101,131 | $ | 573,813 |
Receivables | 22,107 | 11,576 | ||
Inventory | 16,611 | 7,773 | ||
Prepaid expenses (note 5) | 8,821 | 13,739 | ||
148,670 | 606,901 | |||
Non-current assets: | ||||
Note receivable (note 6) | 31,912 | 41,264 | ||
Investment in Envexergy Inc. (note 7) | 1,223,136 | 1,223,136 | ||
Intangible assets (note 8) | 21,000 | - | ||
1,276,048 | 1,264,400 | |||
$ | 1,424,718 | $ | 1,871,301 | |
Liabilities and Shareholders' Equity | ||||
Current liabilities: | ||||
Trade payables (note 12) | $ | 427,173 | $ | 276,660 |
Loans payable - short term (notes 9 and 12) | 421,202 | 19,785 | ||
848,375 | 296,445 | |||
Non-current liabilities: | ||||
Loans payable (note 9) | 75,237 | 65,802 | ||
923,612 | 362,247 | |||
Shareholders' Equity | ||||
Share capital (note 10) | 47,263,590 | 47,263,590 | ||
Contributed surplus (note 10) | 13,034,684 | 13,034,684 | ||
Accumulated foreign currency translation (note 10) | 1,443,557 | 1,451,235 | ||
Deficit | (61,213,538) | (60,287,001) | ||
Non-controlling interest (note 14) | (27,187) | 46,546 | ||
501,106 | 1,509,054 | |||
$ | 1,424,718 | $ | 1,871,301 |
Going concern (note 2)
Subsequent event (note 19)
See accompanying notes to the interim consolidated financial statements.
Approved for issuance by the Board of Directors on August 29, 2022
Signed "D Lindsay Wu"
D Lindsay Wu, Director
Signed "Sergei Stetsenko"
Sergei Stetsenko, Director
BLOCKCHAINK2 CORP.
Consolidated Statements of Comprehensive Loss
For the three and nine months ended June 30, 2022 and 2021 (Unaudited - Expressed in Canadian dollars)
Three Months Ended | Nine Months Ended | |||||||
June 30, | June 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Sales | $ | 23,162 | $ | 8,777 | $ | 59,179 | $ | 106,794 |
Cost of sales | (9,531) | (1,978) | (30,983) | (68,650) | ||||
Gross profit | 13,631 | 6,799 | 28,196 | 38,144 | ||||
Expenses | ||||||||
Advertising and promotion | 4,962 | 6,836 | 64,537 | 18,296 | ||||
Consulting fees (note 12) | 114,675 | 39,716 | 304,766 | 80,666 | ||||
Directors' fees (note 12) | 76,840 | 74,047 | 227,888 | 229,285 | ||||
Filing and listing fees | 19,562 | 28,499 | 52,055 | 61,697 | ||||
Foreign exchange loss (gain) | 6,216 | (587) | (378) | (1,846) | ||||
General and administrative | 15,949 | 11,746 | 57,287 | 35,268 | ||||
Investor relations | - | 303 | - | 113,423 | ||||
Professional fees (note 12) | 15,902 | 24,748 | 157,493 | 75,218 | ||||
Salaries (note 12) | 45,679 | 74,453 | 180,103 | 115,043 | ||||
Selling expenses | 498 | 555 | 2,618 | 1,555 | ||||
Share-based compensation | - | 72,000 | - | 985,485 | ||||
Travel | 1,109 | 1,882 | 8,117 | 5,278 | ||||
(303,192) | (334,198) | (1,054,486) | (1,719,368) | |||||
Other items | ||||||||
Accretion (note 9) | (7,390) | (4,419) | (15,582) | (15,346) | ||||
Change in fair value of note receivable | ||||||||
(note 6) | 31,625 | 3,891 | 42,272 | 3,891 | ||||
24,235 | (528) | 26,690 | (11,455) | |||||
Net loss for the period | (265,326) | (327,927) | (999,600) | (1,692,679) | ||||
Other comprehensive loss | ||||||||
Item that will be recognized in profit or loss: | ||||||||
Exchange loss on translation | (454) | (129) | (7,678) | (7,043) | ||||
Comprehensive loss for the period | $ | (265,780) | $ | (328,056) | $ | (1,007,278) | $ | (1,699,722) |
Net loss for the period attributable to: | ||||||||
Common shareholders of the | ||||||||
Corporation | $ | (258,986) | $ | (313,939) | $ | (926,537) | $ | (1,651,193) |
Non-controlling interest (note 14) | (6,340) | (13,988) | (73,063) | (41,486) | ||||
$ | (265,326) | $ | (327,927) | $ | (999,600) | $ | (1,692,679) | |
Comprehensive loss for the period | ||||||||
attributable to: | ||||||||
Common shareholders of the | ||||||||
Corporation | $ | (258,947) | $ | (313,463) | $ | (933,545) | $ | (1,652,713) |
Non-controlling interest (note 14) | (6,833) | (14,593) | (73,733) | (47,009) | ||||
$ | (265,780) | $ | (328,056) | $ | (1,007,278) | $ | (1,699,722) | |
Loss per share for the period: | ||||||||
Basic and diluted (note 11) | $ | (0.02) | $ | (0.02) | $ | (0.06) | $ | (0.10) |
See accompanying notes to the interim consolidated financial statements. |
BLOCKCHAINK2 CORP.
Interim Consolidated Statements of Shareholders' Equity For the nine months ended June 30, 2022 and 2021 (Unaudited - Expressed in Canadian dollars)
2022 | 2021 | |||
Share capital | ||||
Balance, beginning of period | $ | 47,263,590 | $ | 47,039,893 |
Issued to officers pursuant to their employment contracts | - | 72,000 | ||
Issued pursuant to options exercised | - | 65,644 | ||
Fair value of exercised options transferred from contributed surplus | - | 86,053 | ||
Balance, end of period | 47,263,590 | 47,263,590 | ||
Contributed surplus | ||||
Balance, beginning of period | 13,034,684 | 12,207,252 | ||
Share-based compensation | - | 913,485 | ||
Fair value of exercised options transferred to contributed surplus | - | (86,053) | ||
Balance, end of period | 13,034,684 | 13,034,684 | ||
Accumulated foreign currency translation | ||||
Balance, beginning of period | 1,451,235 | 1,456,192 | ||
Loss on translation | (7,678) | (7,043) | ||
Balance, end of period | 1,443,557 | 1,449,149 | ||
Deficit | ||||
Balance, beginning of period | (60,287,001) | (58,081,407) | ||
Net loss for the period | (926,537) | (1,651,193) | ||
Balance, end of period | (61,213,538) | (59,732,600) | ||
Non-controlling interest | ||||
Balance, beginning of period | 46,546 | 65,041 | ||
Net loss for the period | (73,063) | (41,486) | ||
Loss on translation | (670) | (3,752) | ||
Balance, end of period | (27,187) | 19,803 | ||
Shareholders' equity | $ | 501,106 | $ | 2,034,626 |
See accompanying notes to the interim consolidated financial statements.
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Blockchaink2 Corp. published this content on 30 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2022 18:29:10 UTC.