NFT Technologies : Annual Report

NFT Technologies Inc.

Financial Statements

For the Years Ended December 31, 2021, 2020, and 2019 (Expressed in Canadian Dollars, unless otherwise noted)

Table of Contents
INDEPENDENT AUDITOR'S REPORT.................................................................................................
STATEMENTS OF FINANCIAL POSITION ........................................................................................
STATEMENTS OF LOSS AND COMPREHENSIVE LOSS.................................................................
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY..........................................................
STATEMENTS OF CASH FLOWS .......................................................................................................
NOTE 1 - NATURE OF OPERATIONS AND GOING CONCERN ....................................................	8
NOTE 2 - BASIS OF PRESENTATION, STATEMENT OF COMPLIANCE.....................................	8
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES........................................................................	8
NOTE 4 - CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS.........	11
NOTE 5 - DIGITAL ASSETS............................................................................................................	12
NOTE 6 - PROPERTY AND EQUIPMENT......................................................................................	13
NOTE 7 - INVESTMENTS ...............................................................................................................	13
NOTE 8 - SHARE CAPITAL ............................................................................................................	14
NOTE 9 - SHARE-BASEDPAYMENT RESERVE ..........................................................................	14
NOTE 10 - RELATED PARTY TRANSACTIONS AND BALANCES ............................................	17
NOTE 11 - INCOME TAXES............................................................................................................	18
NOTE 12 - FINANCIAL INSTRUMENTS .......................................................................................	18
NOTE 13 - COMMITMENTS...........................................................................................................	20
NOTE 14 - GENERAL AND ADMINISTRATION EXPENSES.......................................................	21
NOTE 15 - SEGMENT REPORTING...............................................................................................	21
NOTE 16 - EVENTS AFTER REPORTING PERIOD.......................................................................	21

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of NFT Technologies Inc.

Opinion

We have audited the financial statements of NFT Technologies Inc. (the "Company"), which comprise the statements of financial position as at December 31, 2021, 2020, and 2019 and the statements of loss and comprehensive loss, changes in shareholders' equity, and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021, 2020, and 2019 and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards.

Basis for Opinion

We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 in the financial statements, which indicates that the Company has generated a net loss of $6,016,100 and has negative cash flow from operations of $4,018,502 during the year ended December 31, 2021 and, as at that date, the Company has an accumulated deficit of $6,016,100. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other Information

Management is responsible for the other information. The other information comprises:

• Management's Discussion and Analysis
• The information, other than the financial statements and our auditor's report thereon, in the Prospectus.

Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

We obtained Management's Discussion and Analysis prior to the date of the auditor's report. If, based on the work we have performed on this information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

We obtained the Prospectus prior to the date of the auditor's report. If, based on the work we have performed on this information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Saturna Group Chartered Professional Accountants LLP

Vancouver, Canada

May 12, 2022

NFT Technologies Inc.

Statements of Financial Position

As at December 31, 2021, 2020, and 2019

Expressed in Canadian Dollars

	Notes		December 31,		December 31,
			2021			2020 and 2019
ASSETS
Current assets
Cash and cash equivalents		$	3,918,120		$	1
Restricted cash			5,000			-
Prepaid expenses			106,740			-
Digital assets	5		433,326			-
Total current assets		$	4,463,186		$	1
Non-current assets
Property and equipment	6		23,495			-
Investments	7,8		246,576			-
Total non-current assets		$	270,071		$	-
Total assets		$	4,733,257		$	1
LIABILITIES
Current liabilities
Trade payables and accrued liabilities	10	$	215,131		$	-
Advances payable			30,575			-
Total liabilities		$	245,706		$	-
SHAREHOLDERS' EQUITY
Share capital	8,9	$	9,214,902		$	1
Share-based payment reserve	9		1,313,749			-
Share subscriptions receivable	9		(25,000)			-
Deficit			(6,016,100)			-
Total shareholders' equity		$	4,487,551		$	1
Total liabilities and shareholders' equity		$	4,733,257		$	1

Going concern (Note 1)

Commitments (Note 13)

Events after reporting period (Note 16)

Approved on behalf of the Board of Directors on May 12, 2022

"Wayne Lloyd"		"Kelly Allin"
Director		Director

The accompanying notes are an integral part of these financial statements