BIGG Digital Assets : Q3 2021 FS

BIGG DIGITAL ASSETS INC.

Condensed Consolidated Interim Financial Statements For the Nine Months ended September 30, 2021 and 2020

(Expressed in Canadian dollars)

NOTICE TO READER

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed consolidated interim financial statements of BIGG Digital Assets Inc. as at September 30, 2021 and 2020, notes to unaudited condensed consolidated interim financial statements and related Management's Discussion and Analysis have been prepared by and are the responsibility of management.

The Company's independent auditor has not performed a review of these interim financial statements in accordance with the standards established by the CPA Canada for a review of interim financial statements by an entity's auditor.

BIGG DIGITAL ASSETS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION Expressed in Canadian dollars

				September 30,	December 31,
					2021		2020
	As at				(Unaudited)		(Audited)
	ASSETS
	Current
	Cash		$	48,830,215	$ 12,778,242
	Restricted cash (Note 3)				82,500		82,500
	Amounts receivable				416,564		1,065,596
	Investment tax credits receivable			175,325		175,325
	Digital currency inventory (Note 4)			83,141,679		9,715,508
	Prepaids				296,149		206,111
	Total current assets				132,942,432		24,023,282
	Digital currencies (Note 5)				6,658,620		3,827,003
	Marketable securities (Note 6)				949,819		3,827,003
	Intangible assets (Note 7)				419,566		505,213
	Goodwill (Note 8)				1,071,851		1,071,851
	Right-of-use asset (Note 9)				63,087		-
	Equipment (Note 11)				256,620		162,238
	Total assets		$	142,361,995	$ 29,589,587
	LIABILITIES AND EQUITY
	Current
	Accounts payable and accrued liabilities (Note 13)	$	875,009	$	642,449
	Deferred revenue				205,228		331,955
	Customer deposits - cash				7,692,548		6,367,983
	Customer deposits - digital currency			61,141,925		6,367,983
	Lease liability (Note 10)				24,909		-
	Contingent liabilities (Notes 16(a),18)			36,000		-
	Total current liabilities				69,975,619		14,843,160
	Non-Current
	Lease liability (Note 10)				42,572		-
	Total liabilities				70,018,191		14,843,160
	Equity
	Share capital (Note 12)				95,546,434		41,986,720
	Equity reserves (Note 12)				11,893,945		7,080,614
	Accumulated other comprehensive income			4,908,494		2,678,749)
	Deficit				(40,005,069)	(36,999,656)
	Total equity				72,343,804		14,746,427
	Total liabilities and equity		$	142,361,995	$ 29,589,587
Nature of operations (Note 1)
Subsequent events (Note 18)
	On behalf of the Board:
	"Mark Binns"	Director	"Lance Morginn"		Director

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

BIGG DIGITAL ASSETS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

Expressed in Canadian dollars

		Three months ended		Nine months ended
	September 30,		Sept 30,		Sept 30,		Sept 30,
		2021		2020		2021		2020
Revenue
Product revenue	$	278,614	$	205,543	$	662,269	$	561,136
Service revenue		148,581		46,428		453,946		195,076
Transaction revenue		2,197,804		391,172		9,728,620		745,428
		2,624,999		643,143		10,844,835		1,501,640
Cost of sales		63,574		24,170		144,687		54,780
		2,561,425		618,973		10,700,148		1,446,860
General and Administrative Expenses
Advertising and promotion		1,243,140		157,901		4,425,196		389,418
Amortization (Notes 7,9, 11)		130,050		190,473		425,983		571,774
Bad debt		2,675		75		2,675		715
Consulting (Note 13)		181,083		34,379		299,642		53,874
Director's fees (Note 13)		37,701		4,598		76,400		13,795
Office		440,251		285,637		1,023,797		813,863
Professional fees		239,047		157,877		701,733		308,859
Regulatory and listing fees		20,705		7,946		76,438		28,059
Research and development		203,886		144,161		517,019		846,969
Share-based compensation (Note 13)		2,508,606		167,489		6,096,023		239,207
Shareholder communications		7,562		18,593		37,113		25,721
Travel		18,377		(6)		17,963		8,872
Wages and benefits (Note 13)		1,292,836		679,796		3,844,953		2,285,987
Loss from operating activities		(3,764,494)		(1,229,945)		(6,844,787)		(4,140,252)
Other Income (Expenses)
Interest income		28,010		192		71,970		5,828
Foreign exchange (loss) gain		192,584		(14,638)		(47,935)		21,789
Gain on sale of equity investments		495,000		-		495,000		-
Gain (loss) on sale of digital currencies		34,977		(1,335)		34,977		(1,335)
Unrealized (loss) gain on digital currencies		(574)		241,058		5,360		558,208
Gain (loss) on sale of digital currency inventory		-		18,178		-		(24,989)
Unrealized foreign exchange gain (loss) on digital		(2,788,072)		103,511		(4,203,373)		282,297
currency inventory
Unrealized gain on digital currency inventory		6,829,445		463,679		7,483,374		666,593
Net income (loss) for the period	$	1,026,876		$ (419,300)	$	(3,005,414)	$	(2,631,861)
Other comprehensive income (loss)
Unrealized gains on digital currencies		1,313,651		-		2,226,150		-
Item that may be reclassified to profit or loss
Currency translation adjustment		(3,432)		(5,961)		3,595		(11,012)
Other comprehensive income (loss) for the period		1,310,219		(5,961)		2,229,745		(11,012)
Comprehensive income (loss) for the period	$	2,337,095	$	(425,261)	$	(775,669)	$	(2,642,873)
Basic and diluted loss per common share	$	(0.00)	$	(0.00)	$	(0.01)	$	(0.02)
Weighted average number of common shares		241,684,481		138,070,420		224,708,353		137,943,132
outstanding

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

BIGG DIGITAL ASSETS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (Unaudited)

Expressed in Canadian dollars

	Share Capital
				Cumulative
	Number of		Equity	Translation
	Shares	Amount	Reserves	Adjustment		Deficit		Total
Balance at December 31, 2019	138,292,566	$ 35,627,862	$ 6,510,610	$	(4,690)	$	(34,051,128)	$	8,082,654
Shares issued for private placement	2,282,609	525,000							525,000
Shares issued for fees on private placement	114,130	26,250							26,250
Shares issued on option exercises	278,125	42,645	(18,994)		-		-		23,651
Purchase of common shares for cancellation	(720,000)	(34,450)	-		-		-		(34,450)
Share issue costs	-	(37,976)	-		-		-		(37,976)
Share-based compensation	-	-	239,207		-		-		239,207
Loss for the period	-	-	-		-		(2,631,861)		(2,631,861)
Other comprehensive loss	-	-	-		(11,012)		-		(11,012)
Balance at September 30, 2020	140,247,430	$ 36,149,331	$ 6,730,823	$	(15,702)	$	(36,682,989)	$	6,181,463
		-
Balance at December 31, 2020	169,656,805	$ 41,986,720	$ 7,080,614	$	2,678,749	$	(36,999,656)	$	14,746,427
Shares issued for private placement, net of costs (Note 12)	41,394,500	39,794,963	-		-		-		39,794,963
Shares issued on warrant exercises	26,078,957	12,506,044	(672,654)		-		-		11,833,390
Shares issued on option exercises	5,150,694	1,291,527	(610,038)		-		-		681,489
Share issue costs	-	(32,820)	-		-		-		(32,820)
Share-based compensation	-	-	6,096,023		-		-		6,096,023
Loss for the period	-	-	-		-		(3,005,414)		(3,005,414)
Other comprehensive income	-	-	-		2,229,745		-		2,229,745
Balance at September 30, 2021	242,280,956	$ 95,546,434	$ 11,893,945	$	4,908,494	$	(40,005,070)	$	72,343,804

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