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.
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BIGG Digital Assets Inc. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 01:10:02 UTC.