GATEKEEPER SYSTEMS INC.
Consolidated Financial Statements
For the Nine Months Ended May 31, 2023
MANAGEMENT'S COMMENTS ON
UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the unaudited condensed interim financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim consolidated financial statements of Gatekeeper Systems Inc. (the "Company") have been prepared by and are the responsibility of the Company's management. The unaudited condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards and reflect management's best estimates and judgment based on information currently available.
The Company's independent auditor has not performed a review of these unaudited condensed interim consolidated financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of unaudited condensed interim consolidated financial statements by an entity's auditor.
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GATEKEEPER SYSTEMS INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT
(expressed in Canadian dollars) | May 31, | August 31, | ||
2023 | 2022 | |||
ASSETS | ||||
Current Assets | ||||
Cash (note 6) | $ | 894,349 | $ | 2,604,229 |
Trade and other receivables (note 7) | 7,733,659 | 8,629,697 | ||
Inventories (note 8) | 6,878,917 | 8,490,594 | ||
Prepaid expenses and other current assets | 365,315 | 364,402 | ||
Income tax receivable | 94,895 | - | ||
Non-Current Assets | 15,967,135 | 20,088,922 | ||
Property, plant and equipment (note 10) | 1,106,700 | 1,179,904 | ||
Intangible asset (note 11) | 10,005 | 10,618 | ||
Goodwill (note 9) | 155,380 | 149,760 | ||
Deferred tax asset (note 19) | 1,497,000 | 1,587,000 | ||
Total Assets | $ | 18,736,220 | $ | 23,016,204 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities | ||||
Line of credit (note 12) | $ | 1,628,703 | $ | 3,536,593 |
Trade and other payables and accrued liabilities (note 13) | 1,269,591 | 4,807,812 | ||
Bonus payable (note 5 and 23) | - | 280,000 | ||
Lease obligations - current (note 14) | 188,912 | 189,618 | ||
Unearned revenue | 94,188 | 78,061 | ||
Non-Current Liabilities | 3,277,604 | 8,892,084 | ||
Bonus payable - long term (note 5 and 23) | - | 840,000 | ||
Lease obligations - long term (note 14) | 612,259 | 738,025 | ||
Total Liabilities | 3,793,653 | 10,470,109 | ||
Shareholders' Equity | ||||
Share capital (note 15) | 17,041,553 | 17,003,700 | ||
Other capital reserves (notes 16 and 17) | 2,458,517 | 2,289,321 | ||
Accumulated other comprehensive loss | 61,830 | 6,208 | ||
Deficit | (4,619,333) | (6,753,134) | ||
14,942,567 | 12,546,095 | |||
Total Liabilities and Shareholders' Equity | $ | 18,736,220 | $ | 23,016,204 |
DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS (note 1) | ||||
COMMITMENTS AND CONTINGENCIES (note 24) | ||||
APPROVED ON BEHALF OF | ||||
THE BOARD OF DIRECTORS | ||||
"Colin Sutherland" | "Douglas Dyment" | |||
(signed) | (signed) | |||
Director | Director |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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GATEKEEPER SYSTEMS INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS ENDED
(expressed in Canadian dollars) | ||||||||
Three months ended | Nine months ended | |||||||
May 31, | May 31, | May 31, | May 31, | |||||
2023 | 2022 | 2023 | 2022 | |||||
Revenues | $ | 5,933,125 | $ | 4,388,520 | $ | 20,503,956 | $ | 10,192,417 |
Cost of Sales | 2,986,140 | 2,577,924 | 11,465,274 | 5,681,271 | ||||
Gross Profit | 2,946,985 | 1,810,596 | 9,038,682 | 4,511,146 | ||||
Operating Expenses | ||||||||
General and administrative (note 18a) | 1,084,531 | 964,510 | 2,997,762 | 2,652,918 | ||||
Selling and marketing (note 18b) | 825,560 | 598,111 | 2,421,301 | 1,619,517 | ||||
Research and development (note 18c) | 608,844 | 566,897 | 1,670,001 | 1,513,727 | ||||
(2,518,935) | (2,129,518) | (7,089,064) | (5,786,162) | |||||
Operating Profit (Loss) | 428,050 | (318,922) | 1,949,618 | (1,275,016) | ||||
Other Income (Expenses) | ||||||||
Interest | 6,063 | 1,161 | 16,140 | 3,978 | ||||
Foreign exchange | 158,375 | (49,722) | 389,520 | 43,851 | ||||
Income tax | (126,299) | - | (126,299) | |||||
Finance costs | (33) | (33) | (108) | (355) | ||||
Write-down of inventory | (5,069) | (400) | (5,070) | (1,485) | ||||
Net income (loss) before income taxes | 461,087 | (367,011) | 2,223,801 | (1,229,027) | ||||
Deferred income tax (expense) recovery (note 19) | (57,000) | (27,000) | (90,000) | 404,000 | ||||
Net income (loss) | 404,087 | (340,011) | 2,133,801 | (825,027) | ||||
Other Comprehensive Income (Loss) | ||||||||
Foreign currency translation differences | 36,876 | 22,251 | 86,052 | 24,152 | ||||
Total Comprehensive Income (Loss) | $ | 440,963 | $ | (317,760) | $ | 2,219,853 | $ | (800,875) |
Basic income (loss) per share | $ | 0.01 | $ | (0.00) | $ | 0.02 | $ | (0.01) |
Weighted Average Number of Shares Outstanding | 91,539,602 | 90,981,629 | 91,539,602 | 90,709,796 | ||||
Diluted loss per share | $ | 0.01 | $ | (0.00) | $ | 0.02 | $ | (0.01) |
Weighted Average Number of Shares Outstanding | 91,539,602 | 90,981,629 | 91,539,602 | 90,709,796 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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GATEKEEPER SYSTEMS INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED
(expressed in Canadian dollars) | ||
May 31, | May 31, | |
2023 | 2022 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 2,133,801 | $ (825,027) |
Items not affecting cash from operations: | ||
Depreciation | 277,867 | 259,870 |
Amortization - intangible assets | - | 613 |
Share-based payments | 181,250 | 183,476 |
Deferred tax expense (recovery) | 90,000 | (404,000) |
Unrealized foreign exchange loss (gain) | (75,566) | (140,835) |
Changes in non-cash working capital balances related to operations: | 167,416 | |
Trade and other receivables | 2,470,406 | |
Inventories | 1,893,378 | (3,824,755) |
Prepaid expenses and other current assets | 4,979 | (153,093) |
Income tax receivable | (94,318) | - |
Trade and other payables and accrued liabilities | (5,224,392) | 1,105,317 |
Bonus payable | (840,000) | - |
Long term bonus payable | (280,000) | - |
Unearned revenue | - | 21,321 |
Net cash provided by (used in) operating activities | 563,339 | (3,609,697) |
Cash Flows used in Investing Activities | ||
Purchase of property, plant and equipment | (173,731) | (202,494) |
Net cash provided by (used in) investing activities | (173,731) | (202,494) |
Cash Flows used in Financing Activities | ||
Draws (repayment) on line of credit | (1,907,890) | 2,663,361 |
Exercise of stock options | 25,800 | 371,951 |
Lease payments | (210,730) | (148,949) |
Net cash provided by (used in) financing activities | (2,092,820) | 2,886,363 |
Foreign Exchange Gain (Loss) on Cash and Cash Equivalents held in USD | (6,669) | 246 |
Increase (Decrease) in Cash and Cash Equivalents | (1,703,211) | (925,828) |
Cash and Cash Equivalents - Beginning of period | 2,604,229 | 3,601,034 |
Cash and Cash Equivalents - End of period | $ 894,349 | $ 2,675,452 |
Supplemental Cash Flow Information (note 25)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Gatekeeper Systems Inc. published this content on 19 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2023 13:34:10 UTC.