Cleantek Industries : 2022 Q3 Interim Financial Statements

Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2022

Cleantek Industries Inc.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)

As at

		September 30	December 31
(Canadian $000's)	Note	2022	2021
ASSETS
Current assets
Cash and cash equivalents		616	1,871
Accounts receivable		2,687	1,931
Prepaids		227	383
Other assets		221	586
Total current assets		3,751	4,771
Non-current assets
Property and equipment	3	11,041	11,279
Intangible assets	4	504	459
Right-of-use assets		556	647
Total non-current assets		12,101	12,385
Total assets		15,852	17,156
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities		2,415	2,825
Current portion of long-term debt	5	2,091	1,045
Current portion of lease liabilities		328	366
Total current liabilities		4,834	4,236
Non-current liabilities
Long-term debt	5	8,778	7,444
Lease liabilities		324	431
Provisions		57	57
Total non-current liabilities		9,159	7,932
Total liabilities		13,993	12,168
Shareholders' equity (deficit)
Share capital	6	68,466	68,466
Contributed surplus		2,895	2,524
Accumulated other comprehensive income		(140)	160
Accumulated deficit		(69,362)	(66,162)
Total shareholders' equity (deficit)		1,859	4,988
Total liabilities and shareholders' equity (deficit)		15,852	17,156

Going concern	2b)
Commitments and contingencies	13
Subsequent events	14

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

2022 Q3 Condensed Consolidated Interim Financial Statements Cleantek Industries Inc. 2

Cleantek Industries Inc.

CONSOLIDATED STATEMENTS OF NET LOSS (Unaudited)

For the periods

		Three months ended	Nine months ended
		September 30	September 30
(Canadian $000's, except per share amounts)	Note	2022	2021	2022	2021
Revenue	8	3,391	2,045	9,663	6,447
Direct operating expenses	9	1,360	945	4,089	2,996
Gross profit		2,031	1,100	5,574	3,451
Other expenses
General and administrative	9	2,391	951	5,607	2,591
Depreciation and amortization	3,4	675	413	2,527	1,912
Research expense (recovery)		-	(13)	-	(701)
Share-based compensation	7	76	196	371	523
Finance costs, net	10	324	175	862	1,129
(Gain) loss on disposal of long-lived assets		-	(115)	(148)	(112)
Foreign exchange (gain) loss		(412)	106	(445)	28
		3,054	1,713	8,774	5,370
Loss before income taxes		(1,023)	(613)	(3,200)	(1,919)
Income tax (recovery) expense
Current		-	-	-	-
Deferred		-	(216)	-	(711)
		-	(216)	-	(711)
Net loss		(1,023)	(397)	(3,200)	(1,208)
Loss per share ($)
Basic and diluted	11	$(0.04)	$(0.02)	$(0.12)	$(0.07)

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

Cleantek Industries Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

For the periods

		Three months ended	Nine months ended
		September 30	September 30
(Canadian $000's)	Note	2022	2021	2022	2021
Net loss		(1,023)	(397)	(3,200)	(1,208)
Other comprehensive loss
Foreign currency translation gain (loss)		(295)	(76)	(300)	15
Total comprehensive loss		(1,318)	(321)	(3,500)	(1,193)

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

2022 Q3 Condensed Consolidated Interim Financial Statements Cleantek Industries Inc. 3

Cleantek Industries Inc.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) (Unaudited)

		Share	Contributed	Accumulated other	Accumulated
		Comprehensive
(Canadian $000's)	Note	capital	surplus	income (loss)	deficit	Total
At January 1, 2021		51,708	1,080	141	(60,207)	(7,278)
Net loss for the period		-	-	-	(1,208)	(1,208)
Share-based compensation expense	7	-	523	-	-	523
Share issuance - in cash for	6	165	-	-	-	165
Cleantek
Share conversions	6	355	-	-	-	355
Foreign currency translation loss		-	-	15	-	15
At September 30, 2021		52,228	1,603	156	(61,415)	(7,428)
At January 1, 2022		68,466	2,524	160	(66,162)	4,988
Net loss for the period		-	-	-	(3,200)	(3,200)
Share-based compensation expense	7	-	371	-	-	371
Foreign currency translation loss		-	-	(300)	-	(300)
At September 30, 2022		68,466	2,895	(140)	(69,362)	1,859

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

2022 Q3 Condensed Consolidated Interim Financial Statements Cleantek Industries Inc. 4

Cleantek Industries Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

For the periods

		Three months ended	Nine months ended
		September 30	September 30
(Canadian $000's)	Note	2022	2021	2022	2021
Cash (used in)/provided by:
Operating activities
Net loss		(1,023)	(397)	(3,200)	(1,208)
Adjustments for:
Depreciation and amortization	3,4	675	413	2,527	1,912
Share-based compensation expense	7	76	196	371	523
Finance costs	10	324	175	862	1,129
(Gain) loss on disposal of long-lived assets		-	(115)	(148)	(112)
Unrealized (gain) loss on foreign exchange		(445)	-	(445)	-
Deferred income tax expense (recovery)		-	(216)	-	(711)
Changes in non-cash working capital	12	260	194	(593)	(496)
Net cash flow from (used in) operating activities		(133)	(138)	(626)	1,037
Investing activities
Additions to property and equipment	3	(1,266)	-	(1,946)	(214)
Additions to intangible assets	4	(44)	(32)	(90)	(95)
Proceeds on disposal of long-lived assets		-	1	100	46
Changes in non-cash working capital	12	(3)	-	(57)	-
Net cash flow used in investing activities		(1,313)	(31)	(1,993)	(263)
Financing activities
Proceeds from long-term debt, net of revolving debt
repayments		1,822	-	3,056	-
Repayment of long-term debt	5	(370)	(729)	(804)	(1,014)
Proceeds from convertible notes - debentures		-	350	-	730
Repayments of lease liabilities		(62)	(36)	(175)	(171)
Payments of cash interest		(277)	(200)	(731)	(635)
Proceeds from issuance of share capital	6	-	-	-	165
Net cash flow from financing activities		1,113	(615)	1,346	(925)
Increase (decrease) in cash and cash equivalents		(333)	(784)	(1,273)	(151)
Effect of foreign exchange on cash and
cash equivalents		13	(79)	18	18
Cash and cash equivalents, beginning of period		936	1,169	1,871	597
Cash and cash equivalents, end of period		616	464	616	464

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

2022 Q3 Condensed Consolidated Interim Financial Statements Cleantek Industries Inc. 5