Lendified : Interim financial statements/report - English May 2021

Lendified Holdings Inc.

Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2021 and 2020

(Unaudited)

Notice of No Auditors' Review of Condensed Interim Consolidated Financial Statements

The accompanying unaudited condensed interim consolidated financial statements of Lendified Holdings Inc. (the "Company") have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with standards established by Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)

Condensed Interim Consolidated Statements of Financial Position (Unaudited) (All amounts stated in Canadian dollars)

As at		March 31,	December 31,
	Note	2021	2020
			(audited)
Assets
Current
Cash		$149,443	$547,555
Cash in-trust		268,013	656,700
Current portion of restricted cash	6(iii)(iv)	892,625	1,035,858
Current portion of loans receivable	4	3,476,329	4,489,760
Accounts receivable		26,106	263,454
Prepaid expenses and deposits		88,670	123,774
Total current assets		4,901,186	7,117,101
Loans receivable	4	333,076	271,556
Restricted cash	6(iii)(iv)	36,121	26,898
Property and equipment		2,180	4,462
Intangible assets		2,272	4,545
Long term investment		200,839	200,837
Total assets		$5,475,674	$7,625,399
Liabilities
Current
Accounts payable and accrued liabilities	12	$5,222,407	$5,144,325
Current portion of loans payable	6	13,353,055	15,612,971
Current portion of lease liabilities	5	129,696	129,696
Convertible shareholder debt	7	3,503,772	3,394,634
Deferred revenue		3,783	3,783
Total current liabilities		22,212,713	24,285,409
Lease liabilities	5	-	-
Loans payable	6	385,106	365,142
Derivative liability	6, 14	436,377	169,673
Total liabilities		23,034,196	24,820,224
Shareholders' deficiency
Share capital	8	29,048,633	29,048,634
Contributed surplus		6,778,183	6,603,032
Deficit		(53,385,338)	(52,846,491)
Total shareholders' deficiency		(17,558,522)	(17,194,825)
Total liabilities and shareholders' deficiency		$5,475,674	$7,625,399
Going concern (Note 1)
Subsequent events (Note 16)
On behalf of the Board:
"Peter Ostapchuk" (signed)		""Guy Charette" (signed)
Director, Chair of Audit Committee	Director, Chair of Board of Directors
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Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

(Unaudited) (All amounts stated in Canadian dollars)

Three months ended			March 31,		March 31,
	Note		2021		2020
Finance income
Interest income		$	593,046	$	1,658,583
Financing related expenses
Interest and financing costs	10		208,524		770,222
Provision for credit losses	4		(337,569)		1,118,991
Total financing related expenses			(129,045)		1,889,213
Financing margin			722,091		(230,630)
Other income			-		35
Operating expenses
Advertising and promotion			53,935		62,662
Office and general			14,793		62,312
Professional fees	12		60,462		30,676
Interest and financing costs for corporate operations	10		450,085		1,149,288
Salaries and benefits	12		352,075		590,059
Technology and development			58,330		136,546
Fair value adjustment on financial instruments	14		266,704		74,852
Amortization and depreciation			4,554		46,109
Total operating expenses			1,260,938		2,152,503
Loss from continued operations			(538,847)		(2,383,099)
Net loss from discontinued operations			-		(792,477)
Net loss and comprehensive loss for the period		$	(538,847)	$	(3,175,576)
Weighted average number of
shares outstanding
Basic		190,292,639		32,597,542
Diluted		190,292,639		32,597,542
Basic and diluted loss per share
Continuing operations		$	(0.00)	$	(0.07)
Discontinued operations			n/a	$	(0.02)

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Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)

Condensed Interim Consolidated Statements of Changes in Shareholders' Deficiency

(Unaudited) (All amounts stated in Canadian dollars)

	Common Shares Class A Shares	Class B Shares Class C Shares		Contributed		Deficit		Total
		Surplus
December 31, 2019	$	-	$	-	$	4,409,875	$	5,040,045	$	4,518,555	$	(40,754,607)	$	(26,786,132)
Exchange of shares (Note 8)		-		9,449,920		(4,409,875)		(5,040,045)		-		-		-
Puttable Class B share conversion (Note 8)		-		1,012,600										1,012,600
Conversion of convertible debenture (Note 8)		-		12,612,331		-		-		(421,359)		-		12,190,972
Share-basedpayments-options (Note 9)		-		-		-		-		(746)		-		(746)
Net loss and comprehensive loss for the period		-		-		-		-		-		(3,175,576)		(3,175,576)
March 31, 2020	$	-	$	23,074,851	$	-	$	-	$	4,096,450	$	(43,930,183)	$	(16,758,882)
December 31, 2020 (audited)	$	29,048,634	$	-	$	-	$	-	$	6,603,032	$	(52,846,491)	$	(17,194,825)
Share-basedpayments-options (Note 9)		-		-		-		-		175,150		-		175,150
Net loss and comprehensive loss for the period		-		-		-		-		-		(538,847)		(538,847)
March 31, 2021	$	29,048,634	$	-	$	-	$	-	$	6,778,182	$	(53,385,338)	$	(17,558,522)

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Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)

Condensed Interim Consolidated Statements of Cash Flows

(Unaudited) (All amounts stated in Canadian dollars)

Cash flows from operating activities

Net loss and comprehensive loss for the period from continuing operations

Adjustments to reconcile net loss to net cash provided by operating activities:

Amortization and depreciation Share-based payments Provision for credit losses

Fair value adjustment on derivative liabilities Financing fees paid

Amortization of financing fees

Accretion on convertible shareholder debt Changes in non-cash working capital balances:

Restricted cash Cash in-trust Loans receivable Accounts receivable

Prepaid expenses and deposits Accounts payables and accrued liabilities Loans payable

Deferred revenue

Cashflows from operating activities - continuing operations Cashflows from discontinued operations

Net cash (used) in operating activities

Cash flows from investing activities

Additions to intangible assets

Repayment from (advances to) shareholder

Cashflows from investing activities - continuing operations Cashflows from discontinued operations

Net cash (used) in investing activities

Cash flows from financing activities

Issuance of debt

Repayment of debt

Principal repaid on lease liabilities

Issuance of derivative liabilities

Cashflows from financing activities - continuing operations Cashflows from discontinued operations

Net cash (used) in financing activities

Increase (decrease) in cash during the period

Cash, beginning of year

Cash, end of period

Supplementary cash flow information (Note 14)

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	March 31,	March 31,
	2021	2020
$	(538,847)	$ (3,175,576)
	4,554	80,077
	175,150	(746)
	(337,569)	373,273
	266,704	74,852
	-	(138,344)
	13,034	109,529
	129,100	249,373
	134,010	81,691
	388,687	-
	1,289,480	(188,751)
	237,348	(44,556)
	35,104	(212,527)
	78,080	1,330,881
	(2,038,306)	(1,975,978)
	-	12,917
	(163,471)	(3,423,886)
	-	-
	(163,471)	(3,423,886)
	-	(7,000)
	-	(988)
	-	(7,988)
	-	-
	-	(7,988)

1,538,301

(343,780)-

• (36,615)

1. 237,499

	(234,642)	1,739,185
	(234,642)	1,739,185
	(398,113)	(1,692,689)
	547,555	2,956,595
$	149,443	$ 1,263,906

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