AnalytixInsight : Interim Financial Report

AnalytixInsight Inc.

Condensed Consolidated Interim Financial Statements (Expressed in Canadian dollars)

For the three and nine months ended September 30, 2021 and 2020

AnalytixInsight Inc.

Condensed consolidated interim statements of financial position (Expressed in Canadian dollars)

(unaudited)

	Notes		September 30, 2021		December 31, 2020
ASSETS
Current
Cash		$	6,950,475	$	1,669,621
Restricted deposits			57,627		57,586
Accounts and other receivables	3		276,749		349,788
Prepaid expenses			119,544		146,418
Total current assets			7,404,395		2,223,413
Equipment	4		99,204		188,307
Intangible assets	5		-		107,276
Goodwill	5		-		687,116
Investment in associate	6		4,317,799		2,315,666
Other investment	9		60,000		60,000
Total assets		$	11,881,398	$	5,581,778
LIABILITIES
Current
Accounts payable and accrued liabilities	10	$	316,883	$	337,530
Lease liability	13		84,797		106,716
Deferred revenue			87,451		64,967
Loan payable	14		201,814		-
Total current liabilities			690,945		509,213
Lease liability	13		22,809		80,457
Loan payable	14		40,000		40,000
Total liabilities			753,754		629,670
SHAREHOLDERS' EQUITY
Share capital	7		28,550,960		21,444,232
Reserves	8		4,481,841		2,108,862
Deficit			(22,117,355)		(18,830,172)
Currency translation reserve			212,198		229,186
Total shareholders' equity			11,127,644		4,952,108
Total liabilities and shareholders' equity		$	11,881,398	$	5,581,778
Nature of operations and going concern	1
Commitments and contingencies	11

Approved by the Board of Directors on November 19, 2021.

"Prakash Hariharan"	"Chaith Kondragunta"
Prakash Hariharan -	Director	Chaith Kondragunta - Director

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

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AnalytixInsight Inc.

Condensed consolidated interim statements of loss and comprehensive loss (Expressed in Canadian dollars)

(unaudited)

			Three months ended		Nine months ended
	Notes		September 30,		September 30,
			2021		2020		2021		2020
REVENUE	12	$	703,799	$	900,505	$	2,430,961	$	2,295,885
Services
TOTAL REVENUE			703,799		900,505		2,430,961		2,295,885
Cost of sales			583,693		606,668		1,770,601		1,708,755
Amortization	5		(205)		123,542		106,673		376,752
Gross profit			120,311		170,295		553,687		210,378
EXPENSES
Consulting and compensation	10		531,827		460,664		1,344,239		1,155,064
Professional fees			101,641		62,651		240,374		133,141
General and administration			77,557		117,697		242,447		260,179
Selling and marketing			126,720		94,024		236,265		196,862
Travel			82,044		52,802		156,284		197,269
Depreciation	4		28,795		19,469		88,953		83,662
Share-based compensation	8		688,176		190,969		797,890		190,969
TOTAL EXPENSES			1,636,760		998,276		3,106,452		2,217,146
Loss before other items			(1,516,449)		(827,981)		(2,552,765)		(2,006,768)
OTHER ITEMS
Interest expense			(2,233)		(17,014)		(8,306)		(26,571)
Other income			2,483		-		2,493		-
Share of (loss) income from investment in associate	6		(27,600)		109,895		(110,047)		432,478
Foreign exchange gain			9,615		(1,150)		13,104		12,386
Other tax expense			-		(707)		-		(707)
Impairment of goodwill	5		(677,120)		-		(677,120)		-
Net loss before tax			(2,211,304)		(736,957)		(3,332,641)		(1,589,182)
Income and other tax expense			-		-		-		-
Net loss for the period			(2,211,304)		(736,957)		(3,332,641)		(1,589,182)
Other comprehensive (loss) gain
Foreign currency translation			2,230		(113,977)		(16,988)		67,397
Loss and comprehensive loss for the period		$	(2,209,074)	$	(850,934)	$	(3,349,629)	$	(1,521,785)
Weighted average number of shares outstanding - basic
and diluted			96,037,611	78,062,912		86,977,257		77,958,447
Basic and diluted loss per share		$	(0.02)	$	(0.01)	$	(0.04)	$	(0.02)

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

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AnalytixInsight Inc.

Condensed consolidated interim statements of cash flows (Expressed in Canadian dollars)

(unaudited)

			Nine months ended
	Notes		September 30,
			2021		2020
Cash provided by (used in):
Operations:		$	(3,332,641)
Net loss for the period		$	(1,589,182)
Items not involving cash:			88,953
Depreciation	4			93,052
Amortization of intangible assets	5		106,673		376,752
Loss (income) from investment in associate	6		110,047		(432,478)
Share-based compensation	8		797,890		190,969
Impairment of goodwill	5		677,120		-
Net cash from operating activities before changes in working capital			(1,551,958)		(1,360,887)
Change in non-cash operating working capital			118,727		401,894
Net cash flows from operating activities			(1,433,231)		(958,993)
Investing:			(2,112,180)
Investment in Marketwall	6			-
Additions to equipment	4		-		(11,646)
Net cash flows from investing activities			(2,112,180)		(11,646)
Financing:			(79,567)
Payment of principal portion of lease liability	13			(73,179)
Exercise of stock options	7, 8		480,150		-
Exercise of warrants	7, 8		15,113		62,225
Prospectus financing	7		9,257,500		-
Share issuance costs	7		(1,025,488)		-
Loan payable			201,814		216,651
Net cash flows from financing activities			8,849,522		205,697
Effect of exchange rate change on cash			(23,257)		15,098
Change in cash for the period			5,304,111		(764,942)
Cash, beginning of the period			1,669,621		1,354,612
Cash, end of the period		$	6,950,475	$	604,768
Supplementary information:		$	-
Right-of-use asset	4	$	314,253
Broker warrants	7, 8		442,482		-
Broker units	7, 8		123,649		-
Per BS:			6,950,475		1,669,621
Cash Flow Check:		$	-	1,064,853.00

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

4

AnalytixInsight Inc.

Condensed consolidated interim statement of changes in shareholders' equity (Expressed in Canadian dollars)

(unaudited)

	Number of	Share capital	Reserves	Deficit	Currency	Shareholders'
	translation
	shares							reserve		equity
Balance, December 31, 2019	77,751,787	$	19,993,820	$	1,687,466	$ (16,890,938)	$	232,066	$	5,022,414
Warrant exercise	311,125		97,835		(35,610)	-		-		62,225
Other comprehensive gain for the period	-		-		-	-		181,374		181,374
Net loss for the period	-		-		-	(494,525)		-		(494,525)
Balance, September 30, 2020	78,062,912	$	20,091,655	$	1,651,856	$ (17,385,463)	$	413,440	$	4,771,488
Balance, December 31, 2020	81,122,549	$	21,444,232	$	2,108,862	$ (18,830,172)	$	229,186	$	4,952,108
Warrant exercise	22,550		18,423		(3,310)	-		-		15,113
Option expiry	-		-		(45,458)	45,458		-		-
Option exercise	1,680,000		820,972		(340,822)	-		-		480,150
Option grant	-		-		797,889	-		-		797,889
Prospectus financing	13,225,000		7,755,304		1,502,196	-		-		9,257,500
Cost of issue	-		(1,591,619)		-	-		-		(1,591,619)
Broker units			103,648		20,001	-		-		123,649
Broker warrants	-		-		442,483	-		-		442,483
Other comprehensive loss for the period	-		-		-	-		(16,988)		(16,988)
Net loss for the period	-		-		-	(3,332,641)		-		(3,332,641)
Balance, September 30, 2021	96,050,099	$	28,550,960	$	4,481,841	$ (22,117,355)	$	212,198	$	11,127,644

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

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