Ceapro : Interim Financial Statements Q3 2021

Unaudited Condensed Interim Consolidated Financial Statements for the Third Quarter Ended September 30, 2021 and 2020

Ceapro Inc.

Notice of No Auditor Review of Condensed Interim Consolidated Financial Statements

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), 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 condensed interim consolidated financial statements of Ceapro Inc. (the "Company") have been prepared by and are the responsibility of the Company's management.

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

CEAPRO INC.

Condensed Interim Consolidated Balance Sheets

Unaudited

	September 30,	December 31,
	2021	2020
	$	$
ASSETS
Current Assets
Cash and cash equivalents	7,410,214	5,369,029
Trade receivables	2,716,058	2,019,723
Other receivables	39,522	102,224
Inventories (note 3)	1,532,271	1,210,079
Prepaid expenses and deposits	133,760	348,845
Total Current Assets	11,831,825	9,049,900
Non-Current Assets
Investment tax credits receivable	607,700	607,700
Deposits	82,124	82,124
Licences (note 4)	16,292	18,514
Property and equipment (note 5)	17,776,791	18,591,189
Deferred tax assets	874,304	874,304
Total Non-Current Assets	19,357,211	20,173,831
TOTAL ASSETS	31,189,036	29,223,731
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	1,097,645	1,067,622
Current portion of lease liabilities (note 6)	286,608	250,658
Current portion of CAAP loan (note 8)	80,811	72,263
Total Current Liabilities	1,465,064	1,390,543
Non-Current Liabilities
Long-term lease liabilities (note 6)	2,432,682	2,648,917
Deferred tax liabilities	874,304	874,304
Total Non-Current Liabilities	3,306,986	3,523,221
TOTAL LIABILITIES	4,772,050	4,913,764
Equity
Share capital (note 7 (b))	16,557,401	16,511,067
Contributed surplus (note 7 (e))	4,676,456	4,682,393
Retained earnings	5,183,129	3,116,507
Total Equity	26,416,986	24,309,967
TOTAL LIABILITIES AND EQUITY	31,189,036	29,223,731
See accompanying notes
Approved on Behalf of the Board
SIGNED: "John Zupancic"
SIGNED: "Dr. Ulrich Kosciessa"
Director	Director

CEAPRO INC.

Condensed Interim Consolidated Statements of Net Income and Comprehensive Income

Unaudited

	Quarters		Nine Months
Ended September 30,	Ended September 30,
2021	2020	2021	2020

	$	$	$	$
Revenue (note 14)	4,522,980	3,475,625	13,633,354	12,414,970
Cost of goods sold	1,573,655	1,814,080	5,787,608	5,794,573
Gross margin	2,949,325	1,661,545	7,845,746	6,620,397
Research and product development	1,403,186	478,993	3,050,544	1,381,332
General and administration	766,605	791,217	2,431,659	2,494,514
Sales and marketing	4,957	12,395	34,557	89,830
Finance costs (note 11)	37,684	43,066	169,938	189,258
Income from operations	736,893	335,874	2,159,048	2,465,463
Other (expenses) income (note 10)	138,381	(144,251)	(92,426)	(70,746)
Income before tax	875,274	191,623	2,066,622	2,394,717
Income taxes	-	-	-	-
Total comprehensive income for the period	875,274	191,623	2,066,622	2,394,717
Net income per common share (note 17):
Basic	0.01	0.00	0.03	0.03
Diluted	0.01	0.00	0.03	0.03
Weighted average number of common shares outstanding
(note 17):
Basic	77,684,017	77,610,113	77,669,747	77,585,679
Diluted	78,740,532	78,700,415	78,694,469	78,039,105

See accompanying notes

CEAPRO INC.

Condensed Interim Consolidated Statements of Changes in Equity

Unaudited

	Contributed	Retained
Share capital	surplus	earnings	Total equity
$	$	$	$

Balance December 31, 2020

Share-based payments (note 7 (c) & (d)) Share options exercised

Net income for the period

16,511,067	4,682,393	3,116,507	24,309,967
-	13,672	-	13,672
46,334	(19,609)	-	26,725
-	-	2,066,622	2,066,622

Balance September 30, 2021

16,557,401

4,676,456

5,183,129

26,416,986

Balance December 31, 2019

Share-based payments (note 7 (c) & (d)) Share options exercised

Restricted share units vested (note 7 (d)) Net income for the period

16,401,677	4,650,090	1,260,407	22,312,174
-	122,902	-	122,902
4,909	(1,896)	-	3,013
101,412	(101,412)	-	-
-	-	2,394,717	2,394,717

Balance September 30, 2020

16,507,998

4,669,684

3,655,124

24,832,806

See accompanying notes