Mijem Newcomm Tech : Interim financial statements/report

Mijem Newcomm Tech Inc.

Interim Condensed Consolidated Financial Statements For the three months ended October 31, 2023 and 2022

To our Shareholders

The accompanying unaudited interim condensed consolidated financial statements of Mijem Newcomm Tech Inc. ("MNTI") have been prepared by and are the responsibility of MNTI management in accordance with International Accounting Standards ("IAS") 34, Interim Financing Reporting as issued by the International Accounting Standards Board. These unaudited interim condensed consolidated financial statements do not include all the information and notes required by International Financial Reporting Standards ("IFRS") for annual financial statements and should be read in conjunction with Mijem Newcomm Tech Inc.'s annual financial statements and notes for July 31, 2023.

Mijem Newcomm Tech Inc.

Interim Condensed Consolidated Statements of Financial Position

As at October 31, 2023 and July 31, 2023

Expressed in Canadian Dollars

As at	Note	October 31, 2023	July 31, 2023
		$	$
ASSETS
Current:		1,904
Cash		21,403
Short-term investment		5,000	5,000
Government remittances recoverable		11,739	17,479
Prepaid expenses		1,637	2,247
TOTAL ASSETS		20,280	46,129
LIABILITIES
Current:
Accounts payable and accrued liabilities	6	246,317	240,245
Promissory Note Payable	7	18,791	-
TOTAL LIABILITIES		265,108	240,245
SHAREHOLDERS' EQUITY (DEFICIENCY)
Share capital	7	6,271,777	6,271,777
Warrants reserve	7	117,874	117,874
Options reserve	7	11,781	-
Contributed surplus	7	936,927	936,927
Deficit		(7,583,187)	(7,520,694)
TOTAL SHAREHOLDERS' EQUITY (DEFICIENCY)		(244,828)	(194,116)
		20,280	46,129

These interim condensed consolidated financial statements were approved for issue on Dec 21st, 2023 by the board of directors and signed on its behalf by:

"Phuong Dinh"	"Alex Pekurar"
Director	Director

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

Mijem Newcomm Tech Inc.

Interim Condensed Consolidated Statements of Loss and Comprehensive Loss

For the Three Months Ended October 31, 2023 and 2022

Expressed in Canadian Dollars

	Note	2023	2022
		$		$
EXPENSES		220
Advertising and promotion		85,820
Corporate management		12,240	80,654
Salaries		(4,652)	77,268
Research and development		-	95,287
Share based compensation	7	11,781	25,366
Interest		284	-
Professional fees		8,244	22,880
Regulatory fees		3,927	8,374
Communication		4,090	7,175
Amortization of intangible assets		-	1,991
Office and sundry expense		6,349	1,575
Bank charges		667	857
Insurance		19,193	32,645
Rent		150	150
Depreciation of equipment		-	132
TOTAL EXPENSES		62,493	440,174
LOSS BEFORE THE FOLLOWING ITEMS		(62,493)	(440,174)
Interest income		-	1,410
Gain (loss) on disposal of equipment		-	29
Revaluation of cryptocurrency		-	(412)
Foreign currency translation loss		-	(569)

NET LOSS AND COMPREHENSIVE LOSS	(62,493)
Basic and diluted loss per share	(0.0022)
Weighted average number of basic common shares
outstanding	27,787,636

(439,716)

(0.0158)

27,787,636

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

Mijem Newcomm Tech Inc.

Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Deficiency)

For the Three Months Ended October 31, 2023 and 2022

Expressed in Canadian Dollars

		Number of	Share capital	Warrant	Option	Contributed	Deficit	Total
	Note	shares	capital	reserve	reserve	surplus
			$	$	$	$	$	$
As at July 31,2022		27,787,636	6,271,777	117,874	377,746	501,333	(6,750,106)	518,624
Share based compensation	7	-	-	-	25,366	-	-	25,366
Expiry of options	7	-	-	-	(37,381)	37,381	-	-
Net loss and comprehensive loss for the year		-	-	-	-	-	(439,716)	(439,716)
As at October 31,2022		27,787,636	6,271,777	117,874	365,731	538,714	(7,189,822)	104,274
As at July 31, 2023		27,787,636	6,271,777	117,874	-	936,927	(7,520,694)	(194,116)
Share based compensation	7	-	-	-	11,781	-	-	11,781
Net loss and comprehensive loss for the year		-	-	-	-	-	(62,493)	(62,493)
As at October 31, 2023		27,787,636	6,271,777	117,874	11,781	936,927	(7,583,187)	(244,828)

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

Mijem Newcomm Tech Inc.

Interim Condensed Consolidated Statements of Cash Flow

For the Three Months Ended October 31, 2023 and 2022

Expressed in Canadian Dollars
	Three Months
Note	2023			2022
CASH FLOW FROM OPERATING ACTIVITIES	$			$
Net loss and comprehensive loss	(62,493)			(439,716)
Items not affecting cash from operating activities:	11,781
Share based compensation			25,366
Accrued interest expense	57			-
Depreciation of equipment	-			132
Loss (gain) on disposal of equipment	-			(29)
Proceeds from the sale of equipment	-			72
Amortization of intangible assets	-			1,991
Revaluation of cryptocurrency	-			412
	(50,656)			(411,772)
Net changes in non-cash working capital:	5,740
Government remittances recoverable			(29,932)
Prepaid expenses	610			15,935
Accounts payable and accrued liabilities	6,073			57,499
Cash flows for operating activites	(38,233)			(368,694)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on promissory notes payable	18,734			-
Cash flows from financing activities	18,734			-
NET INCREASE (DECREASE) IN CASH FOR THE YEAR	(19,499)			(368,694)
CASH, BEGINNING OF THE YEAR	21,403			429,883
CASH, END OF THE YEAR	1,904			61,189

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

Mijem Newcomm Tech Inc.

Notes to the Interim Condensed Consolidated Financial Statements

October 31, 2023 and 2022

(Expressed in Canadian Dollars, except per share amounts)

1. Nature of Operations and Going Concern
   Mijem Newcomm Tech Inc. ("MNTI") (together with its subsidiary, the "Company") is a company incorporated under the Canada Business Corporations Act and domiciled in the Province of Ontario. The address of the Company's registered office is 401 Bay St., Suite 2704, Toronto, Ontario M5H 2Y4. The Company's primary business is the development and monetization of online and mobile applications.
   These consolidated financial statements have been prepared in accordance with accounting principles that apply to a going concern. This presupposes that the Company will continue its operations in the foreseeable future and that it will be able to realize its assets and discharge its liabilities in the normal course of operations.
   The Company has an accumulated deficit of $7,583,187 as of October 31, 2023 (July 31, 2023 - $7,520,694), incurred a net loss of $62,493 for the three months ended October 31, 2023 (October 31, 2022- $439,716) and negative cash flows from operating and financing activities of $19,499 for the three months ended October 31, 2023 (October 31, 2022 - $368,694).
   The Company's continuation as a going concern is dependent upon successful results from the development and monetization of the Company's online and mobile applications and its ability to attain profitable operations and/or raise capital sufficient to meet current and future obligations, all of which are uncertain. These material uncertainties cast doubt about the ability of the Company to continue as a going concern. Management intends to finance operating costs over the next twelve months with a combination of issuance of debt and/or common shares.
   The carrying amount of assets, liabilities, revenue, and expenses presented in these financial statements have not been adjusted as would be required if the going concern assumption was not appropriate.
2. Basis of Preparation
3. 1. Statement of compliance
      These consolidated financial statements have been prepared in accordance with International Financial Reporting. Standards ("IFRS) as issued by the International Accounting Standards Board ("IASB") and interpretations of the IFRS Interpretations Committee. The policies in these consolidated financial statements are based on IFRS issued and outstanding as of December 21, 2023 the date these consolidated financial statements were authorized and issued by the board of directors. The board of directors has the power to amend the consolidated financial statements after issue.
   2. Basis of consolidation
      The consolidated financial statements comprise the financial statements of the Company, and its wholly owned subsidiary Mijem Inc. Mijem Inc. is domiciled in the Province of Ontario. All intercompany transactions and balances between and among the Company and its subsidiary have been eliminated on consolidation. Where necessary, adjustments are made to assets, liabilities, and results of subsidiary to bring their accounting policies into line with those used by the Company. Subsidiaries are entities controlled by the Company. The financial statements of the subsidiary are included in the consolidated financial statements from the date that control commences until the date that control ceases. The Company controls an entity if it has power to direct the activities of the entity that significantly affects its returns ("the relevant activities"), has exposure or rights to variable returns from its involvement with the entity and has the ability to use its power to affect those returns.
      Profit or loss and each component of other comprehensive income ("OCI") are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of the subsidiary to bring their accounting policies into line with the Company's accounting policies. All intra-group assets and liabilities, equity, income, expenses, and cash flows relating to transactions between the Company and its subsidiary are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

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Mijem Newcomm Tech Inc.

Notes to the Interim Condensed Consolidated Financial Statements

October 31, 2023 and 2022

(Expressed in Canadian Dollars, except per share amounts)

1. Basis of measurement
   These consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair value.
2. Functional and presentation currency
   The consolidated financial statements are presented in Canadian dollars, which is also the functional currency of the Company and its subsidiary. All financial information presented has been rounded to the nearest dollar except where indicated otherwise.

3. Summary of Significant Accounting Policies

1. Cash and cash equivalents
   Cash and cash equivalents include all cash and all highly liquid investments with original maturities of three months or less.
2. Financial instruments
   Classification
   The Company determines the classification of financial instruments at initial recognition and classifies its financial instruments in the following measurement categories:
3. • Those to be measured subsequently at fair value (either through profit or loss ("FVTPL") or through other comprehensive income ("FVOCI");
   • Those to be measured at amortized cost.

The classification of debt instruments is driven by the Company's business model for managing the financial assets and their contractual cash flow characteristics. Assets that are held to collect contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has opted to measure them at FVTPL.

Financial instruments with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

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Mijem Newcomm Tech Inc.

Notes to the Interim Condensed Consolidated Financial Statements

October 31, 2023 and 2022

(Expressed in Canadian Dollars, except per share amounts)

Measurement

Financial instruments at amortized cost

Financial instruments at amortized cost are initially recognized at fair value, and subsequently carried at amortized cost less any impairment.

Currently, the Company classifies accounts payable and accrued as financial liabilities at amortized cost.

Financial instruments at FVTLP

Financial instruments are initially recorded at fair value and transaction costs are expensed in the consolidated statements of loss and comprehensive loss. Financial instruments at FVTPL are subsequently measured at fair value, with gains and loss on disposition and unrealized gains and loss from changes in fair value are recognized in the consolidated statement of loss and comprehensive loss. The effective portion of gains and losses on financial instruments designed as hedges is included in the statements of comprehensive loss in the period in which it arises. When management has opted to recognize a financial liability at FVTPL, any changes associated with the Company's own credit risk will be recognized in other comprehensive income (loss).

Currently, the Company classifies cash and short-term investments as FVTPL.

Financial instruments at FVOCI

Currently, the Company does not have any instruments classified as FVOCI.

Business model assessment

The Company makes an assessment of the objective of a business model in which an asset is held at a portfolio level because this best reflects the way the business is managed, and information is provided to management. The information considered includes:

• the stated policies and objectives for the portfolio and the operation of those policies in practice. In particular, whether management's strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realizing cash flows through the sale of assets;
• how the performance of the portfolio is evaluated and reported to the Company's management;
• the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;
• how managers of the business are compensated - e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and
• the frequency, volume and timing of sales in prior periods, the reasons for such sales and its expectation about future sales activity. However, information about sales activity is not considered in isolation, but as part of an overall assessment of the Company's stated objective for managing the financial assets is achieved and how cash flows are realized.

Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of the contractual cash flows such that it would not meet this condition. In making the assessment, the Company considers:

• contingent events that would change the amount and timing of cash flows;
• leverage features;
• prepayment and extension terms;
• terms that limit the Company's claim to cash flows from specified assets (e.g. non-recourse asset arrangements); and
• features that modify consideration of the time value of money - e.g. periodical rest of interest

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Mijem Newcomm Tech Inc.

Notes to the Interim Condensed Consolidated Financial Statements

October 31, 2023 and 2022

(Expressed in Canadian Dollars, except per share amounts)

Reclassifications

The Company would only reclassify a financial asset when the Company changes its business model for managing the financial asset. All reclassifications are recorded at fair value at the date of reclassification, which becomes the new carrying value.

Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Company changes its business model for managing financial assets.

Derecognition Financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognized) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) cumulative gain or loss that had been recognized in other comprehensive income ("OCI") is recognized in profit or loss.

Financial liabilities

The Company derecognizes financial liabilities only when its obligation under the financial liabilities are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid or payable, including any non-cash assets transferred or liabilities assumed, is recognized in the statements of loss and comprehensive loss.

Modifications of financial assets and financial liabilities Financial assets

If the terms of a financial asset are modified, the Company evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, then the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognized, and a new financial asset is recognized at fair value.

If the cash flows of the modified asset carried at amortized cost are not substantially different, then the modification does not result in derecognition of the financial asset. In this case, the Company recalculates the gross carrying amount of the financial asset and recognizes the amount arising from adjusting the gross carrying amount as a modification gain or loss in profit or loss. If such a modification is carried out because of financial difficulties of the borrower, then the gain or loss is presented together with impairment losses. In other cases, it is presented as interest income.

Financial liabilities

The Company derecognizes a financial liability when its terms are modified, and the cash flows of the modified liability are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in profit or loss.

Offsetting

Financial assets and financial liabilities are offset, and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

Income and expenses are presented on a net basis only when permitted under IFRS, or for gains and losses arising from a group of similar transactions.

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