Pool Safe : Q2 2021 Financials

CONSOLIDATED INTERIM CONDENSED

FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED

JUNE 30, 2021 AND 2020

(EXPRESSED IN CANADIAN DOLLARS)

Notice to Reader

The accompanying unaudited condensed interim financial statements of Pool Safe Inc. (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed interim financial statements have not been reviewed by the Company's auditors.

POOL SAFE INC.

CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(EXPRESSED IN CANADIAN DOLLARS)

INDEX	PAGE
Consolidated Interim Condensed Statements of Financial Position	1
Consolidated Interim Condensed Statements of Operations and Comprehensive Loss	2
Consolidated Interim Condensed Statements of Changes in Equity	3
Consolidated Interim Condensed Statements of Cash Flows	4
Notes to the Consolidated Interim Condensed Financial Statements	5

Pool Safe Inc.

Consolidated Condensed Interim Statements of Financial Position

(Expressed in Canadian Dollars - Unaudited)

			June 30,		December 31,
AS AT	Note		2021		2020
ASSETS
Current
Cash and cash equivalents		$	240,935	$	34,742
Receivables	5		83,056		31,102
Inventory	6		185,357		131,832
			509,348		197,676
Patent design and costs	8		-		-
Equipment	7		236,245		264,100
Revenue share assets	9		201,953		208,352
TOTAL ASSETS		$	947,546	$	670,128
LIABILITIES AND EQUITY
Current
Trade payables and other liabilities	10	$	159,992	$	136,273
Current portion of lease liability	11		37,630		39,215
Promissory notes	14		-		67,000
Current portion of credit line	13		359,399		267,585
Current portion of convertible debenture	12		-		454,588
Total current liabilities			557,021		964,661
Lease liability	11		86,051		102,210
Long term portion of loans payable	13		530,553		131,971
Total liabilities			1,173,625		1,198,842
Going concern	2(a)
Subsequent event	23
Shareholders' Equity
Share capital	15		4,033,337		3,339,590
Warrants			140,373		115,775
Equity component of convertible debentures			-		68,647
Reserves			337,782		337,782
Accumulated deficit			(4,737,571)		(4,390,508)
Total equity			(226,079)		(528,714)
TOTAL LIABILITIES AND EQUITY		$	947,546	$	670,128

These consolidated financial statements are approved on behalf of the Board of Directors:

(Signed) "David Berger"

Director

(Signed) "Steven Glaser"

Director

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

1

Pool Safe Inc.

Consolidated Condensed Interim Statements of Operations and

Comprehensive Loss

(Expressed in Canadian Dollars - Unaudited)

		Three Months Ended	Six Months Ended
		June 30,	June 30,
		2021	2020	2021	2020
		$	$	$	$
Revenue		50,679	31,629	63,481	74,188
Cost of Sales		140,708	13,680	182,774	72,577
Gross Profit		(90,029)	17,949	(119,293)	1,611
Expenses
Selling, general and administrative	22	59,988	13,219	78,385	115,026
Stock-based compensation		-	486	-	2,368
Professional fees		28,410	3,290	33,550	10,790
Regulatory		12,228	26,073	18,452	47,983
Advertising and promotion		1,109	4,009	2,283	14,241
Depreciation and amortization		770	3,919	1,540	7,839
Foreign exchange loss (gain)		-	(387)	6	(394)
Government grant and subsidy - CEBA		(25,736)	-	(53,000)	-
Interest and accretion expense		108,267	53,128	146,554	114,131
		185,036	103,737	227,770	311,984
Net loss and comprehensive loss		(275,065)	(85,788)	(347,063)	(310,373)
Weighted average shares outstanding, basic		83,672,889	72,021,239	79,329,229	69,566,572
Basic loss per share		(0.00)	(0.00)	(0.00)	(0.00)

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

2

Pool Safe Inc.

Consolidated Condensed Interim Statements of Changes in Shareholders' Equity

(Expressed in Canadian Dollars - Unaudited)

				Equity		Share-
				portion of		based
	Number	Share		convertible		payments	Accumulated
	of shares	capital	Warrants	debenture		reserve	deficit	Total
Balance at December 31, 2019	65,251,239	$ 3,074,649	$107,446	$30,300	$334,928	$(3,812,761)	$ (265,438)
Warrants expired	-	-	(21,600)		-	-	21,600	-
Units issued via private placement	6,320,000	212,441	58,059		-	-	-	270,500
Units issued for convertible debt term extension	450,000	22,500	42,451		-	-	-	64,951
Stock-based compensation	-	-	-		-	2,368	-	2,368
Net loss	-	-	-		-	-	(310,373)	(310,373)
Balance at June 30, 2020	72,021,239	3,309,590	186,356	30,300	337,296	(4,101,534)	(237,992)
Warrants expired	-	-	(70,581)		-	-	70,581	-
Units issued for convertible debt term extension	-	-	-	38,347	-	-	38,347
Units issued via private placement	-	30,000	-		-	-	-	30,000
Stock-based compensation	-	-	-		-	486	-	486
Net loss	-	-	-		-	-	(359,555)	(359,555)
Balance at December 31, 2020	72,021,239	3,339,590	115,775	68,647	337,782	(4,390,508)	(528,714)
Shares issued for convertible debt term extension	3,162,000	63,240	-		-	-	-	63,240
Shares issued for debt	14,046,510	630,507		(68,647)	-	-	561,860
Warrants issued for debt financing	-	-	24,598		-	-	-	24,598
Net loss	-	-	-		-	-	(347,063)	(347,063)
Balance at June 30, 2021	89,229,750	$ 4,033,337	$ 140,373	$	-	$ 337,782	$ (4,462,506)	$ (226,079)

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

3