HNO : Charge Enterprises - Financial Statements - September 30, 2021

/////

Charge Enterprises, Inc.

(Formerly TransWorld Holdings, Inc.

And GoIP Global, Inc.)

and Subsidiaries

CONSOLIDATED FINANCIAL STATEMENTS

For the Nine Months Ended

September 30, 2021

CHARGE ENTERPRISES, INC.

(FORMERLY TRANSWORLD HOLDINGS, INC. AND GOIP GLOBAL, INC.)

AND SUBSIDIARIES

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Financial Statements
Consolidated Balance Sheets at September 30, 2021 (Unaudited) and December 31, 2020	F-1
Consolidated Statements of Operations (Unaudited) for the Three and Nine months ended September 30, 2021 and	F-2
2020
Consolidated Statements of Comprehensive Loss (unaudited) for the Nine months ended September 30, 2021 and	F-3
2020
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Nine months ended September 30,	F-4-F-5
2021 and 2020
Consolidated Statements of Cash Flows (Unaudited) for the Nine months ended September 30, 2021 and 2020	F-6
Notes to Unaudited Consolidated Financial Statements	F-7

-1-

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of Charge Enterprises, Inc.

Results of Review of Interim Financial Information

We have reviewed the consolidated balance sheets of Charge Enterprises, Inc. and subsidiary (the Company) as of September 30, 2021, and the related consolidated statements of operations, comprehensive income (loss), and stockholders equity and cash flows for the nine-months ended September 30, 2021 and 2020, and the related notes (collectively referred to as the interim consolidated financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim consolidated financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)(PCAOB), the balance sheet of the Company at December 31, 2020, and the related statements of operations, comprehensive income (loss), changes in stockholders' equity and cash flows for the year the ended (not presented herein); and in our report dated July 13, 2021 (except for note 5 as to which the date is August 12, 2021), we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2020, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived.

Basis for Review Results

These interim consolidated financial statements are the responsibility of the Company's management. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

s Seligson & Giannattasio, LLP

Seligson & Giannattasio, LLP White Plains, New York November 18, 2021

CHARGE ENTERPRISES, INC.

(FORMERLY TRANSWORLD HOLDINGS, INC. AND GOIP GLOBAL, INC.) AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
		September 30,		December 31,
		2021 (Unaudited)		2020
ASSETS
Current assets:
Cash and cash equivalents	$	9,425,732		$	11,629,303
Accounts receivable, net		52,112,088			64,129,327
Inventory		156,641			-
Deposits and prepaids		625,818			370,081
Other current assets net		466,186			227,307
Investment in marketable securities		12,829,125			3,249,710
Investment in non-marketable securities		100,000			149,262
Accrued revenue		3,337,534			-
Total current assets		79,053,124			79,754,990
Property, plant and equipment, net		1,960,607			1,774,176
Capital lease asset		318,604			-
Right-of-use asset		550,098			-
Non-current assets		-			259,157
Goodwill		14,190,301			17,175,990
Deferred tax asset		6,344,895			443,006
Total assets	$	102,417,629		$	99,407,319
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	63,764,064		$	69,914,181
Accrued liabilities		2,485,380			785,172
Deferred revenue		62,973			3,455,886
Convertible notes payable, net of discount		2,849,149			1,436,144
Convertible notes payable, related parties, net of discount		-			275,984
Line of credit		1,514,476			-
Related party payable		-			189,312
Derivative liabilities		-			749,600
Capital lease liability		246,808			-
Lease liability		154,639			-
Total current liabilities		71,077,489			76,806,279
Non-current liabilities:
Lease liability, non-current		379,552			-
Notes payable, net of discount		10,252,039			-
Convertible notes payable, net of discount		3,920,346			1,947,945
Total liabilities		85,629,426			78,754,224
Mezzanine Equity
Series B (See Note 15) Preferred Stock		6,850,000			-
Commitments and contingencies
Stockholder's Equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized;
Series A: 1,000,000 shares issued and outstanding at September 30, 2021 and
December 31, 2020		1,000			1,000

Common stock, $0.001 par value; 6,800,000,000 shares authorized 152,226,323 and
140,018,383 issued and outstanding at September 30, 2021 and December 31, 2020		152,301			140,018
Common stock to be issued, 6,587,897 and 13,425,750 shares at September 30, 2021 and
December 31, 2020		6,589			13,426
Treasury stock		(76)
Additional paid in capital		98,844,657			72,583,222
Accumulated other comprehensive income (loss)		(27,648)			60,375
Accumulated deficit		(89,038,620)			(52,144,946)
Total stockholders' equity		9,938,203			20,653,095
Total liabilities and stockholders' equity	$	102,417,629		$	99,407,319

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

F-1