LENDIFIED HOLDINGS INC. Lendified Holdings Inc.
Condensed Interim Consolidated Financial Statements
For the three and nine months ended September 30, 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 | September 30, | December 31, | |
Note | 2021 | 2020 | |
(audited) | |||
Assets | |||
Current | |||
Cash | $1,007,358 | $547,555 | |
Cash in-trust | 766,772 | 656,700 | |
Current portion of restricted cash | 6(iii)(iv) | - | 1,035,858 |
Current portion of loans receivable | 4 | 1,434,348 | 4,489,760 |
Accounts receivable | 57,818 | 263,454 | |
Prepaid expenses and deposits | 115,588 | 123,774 | |
Total current assets | 3,381,884 | 7,117,101 | |
Loans receivable | 4 | 732,424 | 271,556 |
Restricted cash | 6(iii)(iv) | - | 26,898 |
Property and equipment | - | 4,462 | |
Intangible assets | - | 4,545 | |
Long term investment | 200,839 | 200,837 | |
Total assets | $4,315,147 | $7,625,399 | |
Liabilities | |||
Current | |||
Accounts payable and accrued liabilities | 12 | $2,855,695 | $5,144,325 |
Current portion of loans payable | 6, 15(ii) | 7,384,572 | 15,612,971 |
Lease liabilities | 5 | 129,696 | 129,696 |
Convertible shareholder debt | 7 | - | 3,394,634 |
Deferred revenue | 3,783 | 3,783 | |
Total current liabilities | 10,373,746 | 24,285,409 | |
Loans payable | 6, 15(ii) | - | 365,142 |
Derivative liability | 6, 14 | - | 169,673 |
Total liabilities | 10,373,746 | 24,820,224 | |
Shareholders' deficiency | |||
Share capital | 8 | 37,641,397 | 29,048,634 |
Contributed surplus | 7,809,750 | 6,603,032 | |
Deficit | (51,509,746) | (52,846,491) | |
Total shareholders' deficiency | (6,058,599) | (17,194,825) | |
Total liabilities and shareholders' deficiency | $4,315,147 | $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 Income and Comprehensive Income (Unaudited) (All amounts stated in Canadian dollars)
Three Months | Three Months | Nine Months | Nine Months | ||||||
Ended | Ended | Ended | Ended | ||||||
September 30, September 30, | September 30, | September 30, | |||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||
Finance income | |||||||||
Interest income | $ | 358,773 | $ | 1,145,811 | $ | 1,432,103 | $ | 4,399,882 | |
Financing related expenses | |||||||||
Interest and financing costs | 10 | 106,227 | 393,628 | 504,697 | 1,630,944 | ||||
Provision for credit losses (recovery) | 4 | (450,358) | (595,488) | (1,261,241) | 2,481,123 | ||||
Total financing related expenses | (344,131) | (201,860) | (756,544) | 4,112,067 | |||||
Financing margin | 702,904 | 1,347,671 | 2,188,647 | 287,815 | |||||
Other income | - | - | - | 20,222 | |||||
Operating expenses | |||||||||
Advertising and promotion | 16,557 | 13,135 | 77,761 | 123,611 | |||||
Office and general | 4,096 | 9,135 | 33,610 | 192,950 | |||||
Professional fees | 12 | 366,708 | 714,146 | 492,850 | 1,506,117 | ||||
Interest and financing costs for corporate operations | 10 | 398,361 | 364,138 | 1,219,483 | 2,326,201 | ||||
Salaries and benefits | 9,12 | 350,497 | 328,422 | 784,799 | 1,352,133 | ||||
Technology and development | 27,775 | 63,259 | 115,006 | 304,376 | |||||
Fair value adjustment on financial instruments | 14 | (65,997) | 68,487 | (18,281) | (1,210,874) | ||||
Listing expenses | - | - | - | 565,131 | |||||
Non-cash loss on completion of reverse takeover | - | - | - | 964,255 | |||||
Loss on extinguishment of bridge loan warrants | - | - | - | 677,213 | |||||
Amortization and depreciation | 720 | 8,310 | 9,007 | 64,848 | |||||
Total operating expenses | 1,098,717 | 1,569,032 | 2,714,235 | 6,865,961 | |||||
Income/(loss) from continued operations | (395,813) | (221,361) | (525,588) | (6,557,924) | |||||
Gain/(loss) on settlement of debt | 8(xi) | 1,862,333 | - | 1,862,333 | - | ||||
Net loss from discontinued operations | - | (285,262) | - | (1,185,975) | |||||
Net income/(loss) and comprehensive income/(loss) | $ | 1,466,520 | $ | (506,623) | $ | 1,336,745 | $ | (7,743,899) | |
for the period | |||||||||
Weighted average number of | |||||||||
shares outstanding | |||||||||
Basic | 355,851,688 | 118,017,142 | 246,085,432 | 79,568,831 | |||||
Diluted | 355,851,688 | 118,017,142 | 246,085,432 | 79,568,831 | |||||
Basic and diluted income/(loss) per share | |||||||||
Continuing operations | $ | 0.00 | $ | (0.00) | $ | 0.01 | $ | (0.08) | |
Discontinued operations | n/a | $ | (0.00) | n/a | $ | (0.10) |
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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 | Subscription | Deficit | Total | |||||||||||
Surplus | Receipts | |||||||||||||||
December 31, 2019 | $ | - | $ | - | $ | 4,409,875 | $ | 5,040,045 | $ | 4,518,555 | $ | (40,754,607) | $ | (26,786,132) | ||
Exchange of shares (Note 8(i)(ii)) | - | 9,449,920 | (4,409,875) | (5,040,045) | - | - | - | - | ||||||||
Puttable Class B share conversion (Note 8(iii)) | 1,012,600 | - | - | - | - | - | 1,012,600 | |||||||||
Conversion of convertible debenture (Note 8(iv)) | - | 12,184,997 | - | - | (204,674) | - | - | 11,980,323 | ||||||||
Shares exchanged under Qualifying Transaction | 22,597,517 | (22,597,517) | - | - | - | - | - | - | ||||||||
(Note 8 (vi)) | ||||||||||||||||
Shares and warrants deemed issued related to | 1,767,072 | - | - | - | 123,598 | - | - | 1,890,670 | ||||||||
reverse takeover transaction | ||||||||||||||||
Private placement (Note 8(v)) | 2,508,000 | - | - | - | 492,000 | - | - | 3,000,000 | ||||||||
Private placement (Note 8(viii)) | 689,646 | 266,425 | 956,071 | |||||||||||||
Issuance of shares for listing | 768,413 | - | - | - | - | - | - | 768,413 | ||||||||
Share issuance cost | (1,881,782) | (50,000) | - | - | 89,934 | - | - | (1,841,849) | ||||||||
Share-basedpayments-options (Note 9) | - | - | - | - | (746) | - | - | (746) | ||||||||
Equity component of warrants (Note 6) | - | - | - | - | 1,218,200 | - | - | 1,218,200 | ||||||||
Subscription receipts | - | - | - | - | - | 25,000 | - | 25,000 | ||||||||
Net income/(loss) and comprehensive income/(loss) | - | - | - | - | - | - | (7,743,899) | (7,743,899) | ||||||||
for the period | ||||||||||||||||
September 30, 2020 | $ | 26,448,866 | $ | - | $ | - | $ | - | $ | 6,503,292 | $ | 25,000 | $ | (48,498,506) | $ | (15,521,349) |
December 31, 2020 | $ | 29,048,634 | $ | - | $ | - | $ | - | $ | 6,603,032 | - | $ | (52,846,491) | $ | (17,194,825) | |
Share-basedpayments-options (Note 9) | - | - | - | - | 390,107 | - | - | 390,107 | ||||||||
Private Placement (Note 8(x)) | 1,242,517 | - | - | - | 594,983 | - | - | 1,837,500 | ||||||||
Share issuance cost | (194,188) | - | - | - | - | - | - | (194,188) | ||||||||
Conversion of convertible debenture (Note 8(xi)) | 412,205 | - | - | - | 151,392 | - | - | 563,597 | ||||||||
Shares issued for debt settlement (Note 8(xi)) | 7,105,502 | - | - | - | - | - | - | 7,105,502 | ||||||||
Compensation Warrants | - | - | - | - | 57,438 | - | - | 57,438 | ||||||||
Shares issued for Corporate finance fee | 26,727 | - | - | - | - | - | - | 26,727 | ||||||||
Warrants issued for Corporate finance fee | - | - | - | - | 12,798 | - | - | 12,798 | ||||||||
Net income/(loss) and comprehensive income/(loss) | - | - | - | - | - | - | 1,336,745 | 1,336,745 | ||||||||
for the period | ||||||||||||||||
September 30, 2021 | $ | 37,641,397 | $ | - | $ | - | $ | - | $ | 7,809,750 | $ | - | $ | (51,509,746) | $ | (6,058,599) |
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4
Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) (All amounts stated in Canadian dollars)
September 30, | September 30, | ||||
2021 | 2020 | ||||
Cash flows from operating activities | |||||
Net income/(loss) and comprehensive income/(loss) for the period from | $ | 1,336,745 | $ | (6,557,924) | |
continuing operations | |||||
Adjustments to reconcile net loss to net cash provided by operating | |||||
activities: | |||||
Amortization and depreciation | 9,007 | 64,848 | |||
Share-based payments | 390,107 | (746) | |||
Provision for credit losses | (1,261,241) | 2,481,123 | |||
Fair value adjustment on derivative liabilities | (18,281) | (1,210,874) | |||
Loss on extinguishment of bridge loan warrants | - | 677,213 | |||
Gain on settlement of debt | (1,862,333) | - | |||
Financing fees paid | - | (102,026) | |||
Amortization of financing fees | 13,034 | 178,710 | |||
Non-cash loss on completion of reverse takeover | - | 964,255 | |||
Accretion on convertible shareholder debt | 258,422 | 603,945 | |||
Changes in non-cash working capital balances: | |||||
Restricted cash | 1,062,756 | 1,030,700 | |||
Cash in-trust | (110,072) | (548,404) | |||
Loans receivable | 3,855,785 | 6,748,274 | |||
Accounts receivable | 205,636 | (27,716) | |||
Prepaid expenses and deposits | 8,186 | (101,320) | |||
Accounts payables and accrued liabilities | (503,277) | 3,036,603 | |||
Loans payable | (3,890,637) | (11,666,952) | |||
Deferred revenue | - | 3,783 | |||
Cashflows from operating activities - continuing operations | (506,163) | (4,426,508) | |||
Cashflows from discontinued operations | - | (1,156,090) | |||
Net cash (used) in operating activities | (506,163) | (5,582,598) | |||
Cash flows from investing activities | |||||
Advances to shareholder | - | (2,963) | |||
Cash obtained from reverse takeover transaction | - | 926,415 | |||
Cashflows from investing activities - continuing operations | - | 923,452 | |||
Cashflows from discontinued operations | - | (7,000) | |||
Net cash (used) in investing activities | - | 916,452 | |||
Cash flows from financing activities | |||||
Total proceeds from issuance of share capital | 5 | 1,837,500 | 3,981,071 | ||
Proceeds from issuance of convertible shareholder debt | 5 | - | (1,023,435) | ||
Share issuance cost | (97,225) | ||||
Issuance of debt | 200,000 | - | |||
Repayment of debt | (974,311) | - | |||
Principal repaid on lease liabilities | - | (43,970) | |||
Issuance of derivative liabilities | - | 237,499 | |||
Cashflows from financing activities - continuing operations | 965,964 | 3,151,165 | |||
Cashflows from discontinued operations | - | (47,374) | |||
Net cash (used) in financing activities | 965,964 | 3,103,791 | |||
Increase (decrease) in cash during the period | 459,803 | (1,562,355) | |||
Cash, beginning of year | 547,555 | 2,956,595 | |||
Cash, end of the period - assets held for sale | - | 258,466 | |||
Cash, end of period | $ | 1,007,358 | $ | 1,135,774 | |
Supplementary cash flow information (Note 14) | |||||
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Lendified Holdings Inc. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 11:25:03 UTC.
