LUXXFOLIO HOLDINGS INC.
Amended Interim Condensed Consolidated Financial Statements For the three and nine months ended May 31, 2022 and 2021 (Expressed in US Dollars)
(Unaudited)
Dated: August 11, 2022
NOTICE OF NO AUDITOR REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Under National Instrument 51‐102, Part 4, subsection 4.3(3)(a) continuous disclosure requirement, if any auditor has not performed a review of the interim condensed consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited interim condensed consolidated financial statements 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 interim condensed consolidated financial statements.
LUXXFOLIO HOLDINGS INC.
Interim Condensed Consolidated Statements of Financial Position (unaudited) (Expressed in US Dollars)
As at | May 31, 2022 | August 31, 2021 | ||
Assets | ||||
Current assets | ||||
Cash | $ | 191,381 | $ | 313,604 |
Accounts receivable and GST receivable | 134,968 | 64,508 | ||
Prepaid expenses | 2,515 | 248,288 | ||
Digital Assets - Held in Custody (note 5) | 1,667,593 | 1,281,962 | ||
1,996,457 | 1,908,362 | |||
Non‐current assets | ||||
Investment in private company | 10,000 | 10,000 | ||
Deposits on equipment (note 6) | 7,713,378 | 8,758,725 | ||
Plant and equipment - net (note 7) | 14,519,242 | 3,229,102 | ||
Goodwill (note 11) | 4,438,142 | 4,622,303 | ||
26,680,762 | 16,620,130 | |||
Total assets | $ | 28,677,219 | $ | 18,528,492 |
Liabilities and shareholders' equity | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities (note 8) | $ | 850,774 | $ | 541,919 |
Deferred income | 152,752 | ‐ | ||
Short‐term debt | 11,970 | ‐ | ||
Current portion of the long‐term debt | 7,436,784 | 4,215,043 | ||
8,452,280 | 4,756,962 | |||
Non‐current liabilities | ||||
Long‐term debt (note 9) | 4,948,976 | 4,742,497 | ||
13,401,256 | 9,499,459 | |||
Shareholders' equity | ||||
Common shares (note 10) | 19,336,719 | 8,763,996 | ||
Special warrants (note 10) | ‐ | 2,187,866 | ||
Contributed surplus (note 10) | 805,393 | 214,805 | ||
Warrant reserves (note 10) | 1,361,998 | 1,477,963 | ||
Accumulated deficit | (6,228,147) | (3,626,177) | ||
Accumulated other comprehensive income | ‐ | 10,580 | ||
15,275,963 | 9,029,033 | |||
Total liabilities and shareholders' equity | $ | 28,677,219 | $ | 18,528,492 |
Going Concern - Note 2. The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Approved on behalf of the Board: | |
Signed: "Kelly Klatik" | Signed: "Brad Farquhar" |
____________________________ | ______________________________ |
Kelly Klatik, Director | Brad Farquhar, Director |
LUXXFOLIO HOLDINGS INC.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) (Expressed in US Dollars)
For the three | For the three | For the nine | For the nine | |||||
months ended | months ended | months ended | months ended | |||||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |||||
Revenue | ||||||||
Bitcoin mining | $ | 2,746,473 | $ | ‐ | $ | 8,913,587 | $ | ‐ |
Hosting revenue | 152,752 | ‐ | 458,542 | ‐ | ||||
Total revenues | 2,899,225 | ‐ | 9,372,129 | ‐ | ||||
Operating expenses | ||||||||
Advertising | ‐ | ‐ | 27,454 | ‐ | ||||
Consulting (note 8) | 75,169 | 141,171 | 685,788 | 151,295 | ||||
Depreciation (note 7) | 1,869,693 | ‐ | 4,011,751 | ‐ | ||||
Electricity | 626,206 | ‐ | 1,537,422 | ‐ | ||||
General and administration | 125,201 | 152,747 | 555,869 | 160,072 | ||||
Interest (note 9) | 495,824 | 34,816 | 1,366,016 | 54,812 | ||||
Insurance (note 8) | 59,927 | ‐ | 119,577 | ‐ | ||||
Compensation | 269,487 | ‐ | 643,042 | ‐ | ||||
Management fees (note 8) | 33,381 | 60,000 | 132,240 | 64,500 | ||||
Professional fees | 20,517 | 1,009 | 318,588 | 5,445 | ||||
Rent (note 8) | 15,288 | 8,000 | 49,533 | 11,000 | ||||
Supplies and maintenance | 49,502 | ‐ | 201,892 | ‐ | ||||
Total operating expenses | 3,640,195 | 397,743 | 9,649,172 | 447,124 | ||||
Other expenses | ||||||||
Share‐based payments (note 10) | 249,789 | 186,228 | 925,547 | 206,464 | ||||
Amortization of financing fees | 30,902 | 3,375 | 88,496 | 6,749 | ||||
Realized loss on digital assets | 421,670 | ‐ | 661,950 | ‐ | ||||
Unrealized loss on digital assets | 738,660 | ‐ | 765,346 | ‐ | ||||
Total other expenses | 1,441,021 | 189,603 | 2,441,339 | 213,213 | ||||
Net income (loss) | $ | (2,181,991) | $ | (587,346) | $ | (2,718,382) | $ | (660,337) |
Basic and diluted net loss per share | $ | (0.03) | $ | (0.02) | $ | (0.04) | $ | (0.03) |
Weighted average number of shares outstanding: | ||||||||
Basic and diluted | 74,217,944 | 32,696,471 | 68,389,153 | 24,453,690 |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
LUXXFOLIO HOLDINGS INC.
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (unaudited)
(Expressed in US Dollars)
Number of | Contri‐ | Accumu | ||||||||||||||
common | Common | Special | buted | Warrant | ‐lated | |||||||||||
Note | shares | shares | warrants | surplus | reserves | Deficit | OCI | Total | ||||||||
Balance, August 31, 2020 | 17,647,415 | $ | 1,636,540 | $ | 122,626 | $ | ‐ | $ | 51,894 | $ | (1,735,868) | $ | 693 | $ | 75,885 | |
Issuance of common shares | 9,772,060 | 1,577,411 | ‐ | ‐ | ‐ | ‐ | ‐ | 1,577,411 | ||||||||
Issuance of special warrants | ‐ | ‐ | 65,561 | ‐ | ‐ | ‐ | ‐ | 65,561 | ||||||||
Issuance of share purchase warrants | ‐ | ‐ | ‐ | ‐ | 59,560 | ‐ | ‐ | 59,560 | ||||||||
Share‐based compensation | ‐ | ‐ | ‐ | 111,467 | ‐ | ‐ | ‐ | 111,467 | ||||||||
Exercise of special warrants | 5,000,000 | 189,995 | (189,995) | ‐ | ‐ | ‐ | ‐ | |||||||||
Exercise of share purchase warrants | 526,000 | 134,675 | ‐ | ‐ | (51,296) | ‐ | ‐ | 83,379 | ||||||||
Expired share purchase warrants | ‐ | ‐ | ‐ | ‐ | (2,345) | 2,345 | ‐ | ‐ | ||||||||
Currency translation adjustment | ‐ | 225,907 | 1,808 | ‐ | 1,747 | (162,483) | ‐ | 66,979 | ||||||||
Net income (loss) | ‐ | ‐ | ‐ | ‐ | ‐ | (527,341) | ‐ | (527,341) | ||||||||
Balance, May 31, 2021 | 32,945,475 | 3,764,528 | $ | ‐ | $ | 111,467 | $ | 59,560 | $ | (2,423,347) | $ | 693 | $ | 1,512,901 | ||
Issuance of special warrants | ‐ | ‐ | 2,187,866 | ‐ | 64,349 | ‐ | ‐ | 2,252,215 | ||||||||
Issuance of units | 470,000 | 126,655 | ‐ | ‐ | 3,725 | ‐ | ‐ | 130,380 | ||||||||
Issuance of share purchase warrants | ‐ | ‐ | ‐ | ‐ | 665,073 | ‐ | ‐ | 665,073 | ||||||||
Finder's fees | ‐ | (40,787) | ‐ | ‐ | ‐ | ‐ | ‐ | (40,787) | ||||||||
Acquisition of WestBlock | 16,000,000 | 5,073,299 | ‐ | ‐ | 685,258 | ‐ | ‐ | 5,758,557 | ||||||||
Share‐based compensation | ‐ | ‐ | ‐ | 103,338 | ‐ | ‐ | ‐ | 103,338 | ||||||||
Currency translation adjustment | ‐ | (159,699) | ‐ | ‐ | (2) | 97,911 | (178,623) | (240,413) | ||||||||
Revaluation of cryptocurrencies | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 188,510 | 188,510 | ||||||||
Net income (loss) | ‐ | ‐ | ‐ | ‐ | ‐ | (1,300,741) | ‐ | (1,300,741) | ||||||||
Balance, August 31, 2021 | 49,415,475 | $ | 8,763,996 | $ | 2,187,866 | $ | 214,805 | $ | 1,477,963 | $ | (3,626,177) | $ | 10,580 | $ | 9,029,033 | |
Issuance of units | 10 | 13,600,000 | 6,824,023 | ‐ | ‐ | 265,965 | ‐ | ‐ | 7,089,988 | |||||||
Issuance of compensation options | 10 | ‐ | ‐ | ‐ | ‐ | 311,373 | ‐ | ‐ | 311,373 | |||||||
Conversion of special warrants | 10 | 8,118,912 | 2,187,866 | (2,187,866) | ‐ | ‐ | ‐ | ‐ | ‐ | |||||||
Exercise of share purchase warrants | 10 | 2,583,554 | 1,416,754 | ‐ | ‐ | (603,532) | ‐ | ‐ | 813,222 | |||||||
Expired share purchase warrants | 10 | ‐ | ‐ | ‐ | ‐ | (89,676) | 89,676 | ‐ | ‐ | |||||||
Asset purchase of Blackcloud | 10 | 500,003 | 327,366 | ‐ | ‐ | ‐ | ‐ | ‐ | 327,366 | |||||||
Share‐based compensation | 10 | ‐ | ‐ | ‐ | 590,504 | ‐ | (22,360) | ‐ | 568,144 | |||||||
Currency translation adjustment | ‐ | (183,286) | ‐ | 84 | (95) | 49,096 | (10,580) | (144,781) | ||||||||
Net income (loss) | ‐ | ‐ | ‐ | ‐ | ‐ | (2,718,382) | ‐ | (2,718,382) | ||||||||
Balance, May 31, 2022 | 74,217,944 | $ | 19,336,719 | $ | ‐ | $ | 805,393 | $ | 1,361,998 | $ | (6,228,147) | $ | ‐ | $ | 15,275,963 |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
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Luxxfolio Holdings Inc. published this content on 12 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 15:34:01 UTC.