CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
March 31, 2023
(unaudited)
Notice to Reader:
As required by National Instrument 51-102, Part 4, subsection 4.3(3)(a), readers are advised that the Company's
independent auditors have not performed a review of the March 31, 2022 condensed consolidated interim financial
statements.
Q1 2023
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Stated in thousands of Canadian dollars) (unaudited)
As at | Note | March 31, 2023 | December 31, 2022 |
$ | $ | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | 19,087 | 21,469 | |
Restricted cash | 7b | 846 | 846 |
Trade and other receivables | 8,273 | 12,976 | |
Inventories | 4 | 23,479 | 22,029 |
Prepaid expenses and deposits | 1,139 | ||
1,016 | |||
52,701 | 58,459 | ||
Other receivables | 39 | 39 | |
Deferred tax assets | 1,203 | 1,082 | |
Property, plant and equipment | 5 | 7,351 | 7,335 |
Intangible assets | 6 | 6,748 | 7,175 |
Goodwill | 3,700 | 3,703 | |
Total assets | 71,742 | 77,793 | |
Liabilities | |||
Current liabilities | |||
Trade and other payables | 8,811 | 10,862 | |
Income taxes payable | 318 | 94 | |
Customer deposits | 4,520 | 4,572 | |
Provisions | 523 | 493 | |
Current lease liabilities | 1,140 | 1,113 | |
Borrowings | 7 | - | 2,265 |
15,312 | 19,399 | ||
Lease liabilities | 4,428 | ||
4,113 | |||
Borrowings | 7 | - | 2,252 |
Total liabilities | 19,425 | 26,079 | |
Shareholders' equity | |||
Share capital | 60,265 | 60,135 | |
Contributed surplus | 5,710 | 5,758 | |
Accumulated other comprehensive income | 9,870 | 9,877 | |
Accumulated deficit | (23,528) | (24,056) | |
Total shareholders' equity | 52,317 | 51,714 | |
Total liabilities and shareholders' equity | 71,742 | 77,793 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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Q1 2023
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(LOSS)
(Stated in thousands of Canadian dollars, except per share amounts) (unaudited)
For the three months ended March 31 | 2023 | 2022 | |
$ | $ | ||
Revenue | 16,864 | 8,891 | |
Cost of sales | 12,036 | 6,199 | |
Gross profit | 4,828 | 2,692 | |
General and administration | 2,336 | 1,595 | |
Sales and marketing | 461 | 352 | |
Product development and support | 903 | 596 | |
Finance charges, net | 7 | 355 | 176 |
Other losses (gains), net | 44 | (201) | |
4,099 | 2,518 | ||
Earnings before income taxes | 729 | 174 | |
Income tax expense (recovery) | |||
Current | 325 | - | |
Deferred | - | ||
(124) | |||
201 | - | ||
Net earnings | 528 | 174 | |
Other comprehensive loss | |||
Translation loss from foreign operations | (7) | (570) | |
Comprehensive income (loss) | 521 | (396) | |
Net earnings per share | |||
Basic from net earnings | 0.02 | 0.01 | |
Diluted from net earnings | 0.02 | 0.01 | |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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Q1 2023
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
(Stated in thousands of Canadian dollars, except per share amounts) (unaudited)
Issued capital | ||||||||
Accumulated | ||||||||
other | ||||||||
Number of | Contributed | comprehensive | Accumulated | |||||
shares | Share capital | surplus | income | deficit | Total equity | |||
# | $ | $ | $ | $ | $ | |||
January 1, 2022 | 28,224,989 | 59,993 | 5,682 | 7,154 | (32,819) | 40,010 | ||
Net earnings | - | - | - | - | 174 | 174 | ||
Translation loss on | ||||||||
foreign operations | - | - | - | (570) | - | (570) | ||
Employee share-based | ||||||||
compensation | - | - | 1 | - | - | 1 | ||
Issuance of common shares | ||||||||
under stock option plan | 20,000 | 22 | (9) | - | - | 13 | ||
Issuance of common shares | ||||||||
under restricted share plan | 7,500 | 5 | - | - | - | 5 | ||
March 31, 2022 | 28,252,489 | 60,020 | 5,674 | 6,584 | (32,645) | 39,633 | ||
January 1, 2023 | 28,391,789 | 60,135 | 5,758 | 9,877 | (24,056) | 51,714 | ||
Net earnings | - | - | - | - | 528 | 528 | ||
Translation loss on | ||||||||
foreign operations | - | - | - | (7) | - | (7) | ||
Employee share-based | ||||||||
compensation | - | - | 4 | - | - | 4 | ||
Issuance of common shares | ||||||||
under stock option plan | 120,000 | 130 | (52) | - | - | 78 | ||
March 31, 2023 | 28,511,789 | 60,265 | 5,710 | 9,870 | (23,528) | 52,317 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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Q1 2023
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Stated in thousands of Canadian dollars) (unaudited)
For the three months ended March 31 | 2023 | 2022 | |
Cash generated from (used in) | $ | $ | |
Operating activities | |||
Net earnings | 528 | 174 | |
Adjustments for: | |||
Depreciation of property, plant and equipment | 450 | 596 | |
Amortization of intangible assets | 6 | 420 | 200 |
Finance charges, net | 355 | 176 | |
Share-based compensation expense | 427 | 254 | |
Income tax expense | 201 | - | |
Changes in non-cash working capital balances | 8 | 998 | (1,530) |
Finance costs paid | (393) | (165) | |
Income taxes paid | (98) | - | |
Changes in restructuring and facility remediation provisions | (7) | (9) | |
Gain on disposal of property, plant and equipment | - | (269) | |
Net cash generated from (used in) operating activities | 2,881 | (573) | |
Investing activities | |||
Purchases of property, plant and equipment | 5 | (471) | (259) |
Proceeds from sale of property, plant and equipment | - | 351 | |
Additions to intangible assets | 6 | - | (358) |
Net cash used in investing activities | (471) | (266) | |
Financing activities | |||
Repayments of borrowings | 7 | (4,553) | - |
Principal elements of lease payments | (284) | (105) | |
Proceeds from issuance of common shares under stock option plan | 78 | 13 | |
Proceeds from issuance of common shares under restricted share plan | - | 5 | |
Changes in restricted cash | 7 | - | 110 |
Net cash (used in) generated from financing activities | (4,759) | 23 | |
Effect of exchange rate changes on cash and cash equivalents | (33) | (143) | |
Decrease in cash and cash equivalents | (2,382) | (959) | |
Cash and cash equivalents - beginning of the period | 21,469 | 11,139 | |
Cash and cash equivalents - end of the period | 19,087 | 10,180 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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McCoy Global Inc. published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 11:16:10 UTC.