EverGen Infrastructure : Q2 2022 Financial Statements

Unaudited Interim Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2022 and 2021

EverGen Infrastructure Corp.

Unaudited Interim Condensed Consolidated Financial Statements

All amounts in Canadian $000s, unless otherwise indicated

NOTICE OF NO REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited interim condensed consolidated financial statements of EverGen Infrastructure Corp. for the three and six months ended June 30, 2022 have been prepared by and are the responsibility of the Company's management.

Under National Instrument 51-102, continuous disclosure obligations, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The Company's independent auditor has not performed a review of these interim financial statements in accordance with standards established for a review of interim financial statements by an entity's auditor.

EverGen Infrastructure Corp.

Unaudited Interim Condensed Consolidated Financial Statements

All amounts in Canadian $000s, unless otherwise indicated

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

		June 30,	December 31,
As at	Notes	2022	2021
Current assets
Cash and cash equivalents		17,379	19,597
Restricted cash	3	17	2,688
Accounts receivable	4	1,929	2,122
Prepaid expenses and other assets		843	612
		20,168	25,019
Property, plant and equipment	5	19,805	17,007
Intangible assets	6	23,400	24,376
Goodwill		14,208	14,208
Equity accounted investments	7	1,000	-
Total assets		78,581	80,610
Current liabilities
Accounts payable and accrued liabilities		2,245	3,197
Loans payable	8	700	700
Lease liabilities	9	384	298
Deferred revenue		36	-
Contingent consideration		279	279
		3,644	4,474
Loans payable	8	5,408	5,758
Lease liabilities	9	3,669	2,999
Deferred tax		5,376	6,007
Total liabilities		18,097	19,238
Shareholders' equity
Share capital	10b	60,304	60,597
Share warrants		3,484	3,484
Contributed surplus	10a	1,572	1,477
Accumulated deficit	10b	(4,876)	(4,186)
Total shareholders' equity		60,484	61,372
Total liabilities and shareholders' equity		78,581	80,610

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. Subsequent events note 19

On behalf of the board of directors:
Signed: "Chase Edgelow"	Signed: "Mary Hemmingsen"
Chase Edgelow, Director	Mary Hemmingsen, Director

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EverGen Infrastructure Corp.

Unaudited Interim Condensed Consolidated Financial Statements

All amounts in Canadian $000s, unless otherwise indicated

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Unaudited)

(Thousands of Canadian Dollars and shares, except per share amounts)

		Three months ended	Six months ended
		June 30,	June 30,	June 30,	June 30,
	Notes	2022	2021	2022	2021
Revenue	11	2,359	3,349	3,786	4,934
Cost of goods sold		1,065	866	1,771	1,463
Gross profit		1,294	2,483	2,015	3,471
Operating costs		1,081	421	1,582	643
General and administrative expenses	12	1,011	441	1,847	1,687
Depreciation and amortization	5,6	757	672	1,490	1,264
Share-based payment expense	10a	277	332	52	745
Finance costs - net	13	117	123	229	230
Contingent consideration loss		-	867	-	867
Other (income) expense - net	14	(921)	(32)	(1,793)	35
Net loss before income tax expense (recovery)		(1,028)	(341)	(1,392)	(2,000)
Income tax expense (recovery)
Current		70	85	4	3
Deferred		(552)	(251)	(631)	(670)
Net loss and comprehensive loss		(546)	(175)	(765)	(1,333)
Loss per share - basic and diluted		($0.04)	($0.02)	($0.06)	($0.14)
Weighted average number of common shares
outstanding		13,357	9,819	13,362	9,222

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

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EverGen Infrastructure Corp.

Unaudited Interim Condensed Consolidated Financial Statements

All amounts in Canadian $000s, unless otherwise indicated

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

(Thousands of Canadian Dollars and shares)

		Share	Share	Share	Share	Share	Share	Contributed	Accumulated
		capital	capital	warrants	warrants	rights	rights	surplus	deficit	Total
	Notes	#	$	#	$	#	$	$	$	$
Balance, December 31, 2021		13,367	60,597	2,682	3,484	-	-	1,477	(4,186)	61,372
Net loss for the period		-	-	-	-	-	-	-	(765)	(765)
Repurchase of common shares	10b	(60)	(293)	-	-	-	-	-	75	(218)
Share-based payment expense	10a	-	-	-	-	-	-	52	-	52
Capitalized share-based expense		-	-	-	-	-	-	43	-	43
Balance, June 30, 2022		13,307	60,304	2,682	3,484	-	-	1,572	(4,876)	60,484
Balance, December 31, 2020		8,203	32,790	340	1,068	462	32	252	(2,233)	31,909
Net loss for the period		-	-	-	-	-	-	-	(1,333)	(1,333)
Share-based payment expenses		-	-	-	-	-	-	745	-	745
Common shares issued on private placements		375	2,320	-	-	-	-	-	-	2,320
Common shares issued in exchange for
consulting services relating to acquisitions		50	250	-	-	-	-	(250)	-	-
Special Warrant Financing		1,059	7,225	530	1,250	-	-	-	-	8,475
Issuance in exchange for advisor services in
connection with Special Warrant Financing		13	95	-	-	-	-	-	-	95
Broker Options issued for broker services in
connection with Special Warrant Financing		-	-	23	41	-	-	-	-	41
Broker Unit Warrants issued for broker services
in connection with Special Warrant
Financing brokered private placement		-	-	11	44	-	-	-	-	44
Common shares issued as consideration for
acquisitions		125	1,000	-	-	-	-	-	-	1,000
Common shares issued on satisfaction of share
rights		462	32	-	-	(462)	(32)	-	-	-
Finder Warrants issued for services in
connection with Special Warrant Financing
non-brokered private placement		-	-	7	12	-	-	-	-	12
Share issue cost, net of tax		-	(843)	-	-	-	-	-	-	(843)
Balance, June 30, 2021		10,287	42,869	911	2,415	-	-	747	(3,566)	42,465

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

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