Certive : Consolidated Interim Financial Statements Q2 Ended November 30, 2021

Certive Solutions Inc.

Condensed Consolidated Interim Financial Statements

(Expressed in U.S. Dollars)

As at and for the six-month period ended November 30, 2021

	Page
CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Interim Statements of Financial Position	4
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss	5
Condensed Consolidated Interim Statements of Cash Flows	6
Condensed Consolidated Interim Statements of Changes in Equity	7
Notes to the Condensed Consolidated Interim Financial Statements	8 - 25

2

No Auditor Review of the Condensed Consolidated Interim Financial Statements

The accompanying unaudited condensed consolidated interim financial statements of Certive Solutions Inc. (the "Company") as at and for the six-month period ended November 30, 2021 have been prepared by management and have not been the subject of a review by the Company's external independent auditors.

Certive Solutions Inc.

Vancouver, British Columbia

January 31, 2022

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Certive Solutions Inc.

Condensed consolidated interim statements of financial position as at: (Unaudited - Expressed in U.S. Dollars)

	Note		November 30, 2021		May 31, 2021
	s
ASSETS
Current assets
Cash		$	4,936	$	1,935
Marketable securities	4		17,412		36,785
Receivables	5		353,816		404,091
Prepayments and other			57,964		40,532
Total current assets			434,128		483,343
Non-current assets
Receivable from sale of KCA	6		91,052		95,801
Software development	7		91,709		130,848
Total assets		$	616,889	$	709,992
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	8	$	2,941,854	$	2,618,380
Convertible debt	11		4,914,156		4,237,090
Short term loans	10		709,856		915,891
Note payable - current portion	11		300,000		300,000
Derivative liability	13		0		230,574
Total current liabilities			8,865,866		8,301,935
Non-current liabilities
Note payable - long term portion	11		150,000		150,000
Total liabilities			9,015,866		8,451,935
Shareholders' deficit
Share capital	12		24,311,081		24,311,081
Reserve - Transaction costs			(655,877)		(655,877)
Reserve - Share options			1,885,357		1,880,841
Reserve - Share warrants			728,387		728,387
Contributed surplus			766,829		766,829
Equity portion of convertible debt			880,728		618,876
Deficit			(36,315,482)		(35,392,080)
Total shareholders' deficit			(8,398,977)		(7,741,943)
Total shareholders' deficit and liabilities		$	616,889	$	709,992
Nature of operations and going concern (Note 1)
Subsequent events (Note 19)

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Certive Solutions Inc.

Condensed consolidated interim statements of loss and comprehensive loss for three and six-months ended: (Unaudited - Expressed in U.S. Dollars)

	Notes		Three-months		Three-months		Six-months		Six-months
			ended		ended		ended		ended
			November 30,		November 30,		November 30,		November 30,
			2021		2020		2021		2020
REVENUE
Lost charge recovery revenue		$	356,353	$	419,005	$	620,189	$	841,902
OPERATING COSTS
Commissions			6,578		5,670		16,336		13,285
Contractors and consulting fees			12,000		13,000		24,450		25,580
Direct payroll and employee benefits			355,918		360,459		718,631		670,565
License fees			-		-		70		150
Total operating costs			(374,496)		(379,129)		759,487		(709,580)
GROSS PROFIT			(18,143)		39,876		(139,298)		132,322
EXPENSES - SG&A
Amortization	7		19,569		27,081		39,139		39,138
Depreciation			-		-		-		5,452
Bad debt expense	5		8,490		65,483		33,723		22,710
Bank charges and interest			219,623		197,595		419,295		383,706
Consulting fees			34,000		22,500		34,000		45,000
Foreign exchange			(50,515)		30,219		(188,760)		146,528
General and administrative			60,863		47,726		121,847		97,096
Professional fees			2,466		2,200		19,992		3,070
Rent			7,902		7,499		15,804		11,249
Salaries and wages	14		225,841		236,053		446,907		478,686
Sales and marketing			3,109		8,224		12,794		16,189
Share-based compensation	12		2,788		2,259		4,516		4,519
Transfer agent and filing fees			17,935		10,779		37,413		17,789
Travel and promotion			629		1,117		629		1,863
Total expenses - SG&A			(552,700)		(658,735)		(997,297)		(1,272,995)
Loss from operations			(570,843)		(618,859)		(1,136,595)		(1,140,673)
Derivative (expense) recovery	13		184,619		(478)		230,574		(20,180)
Unrealized gain (loss) on marketable
securities	4		(13,557)		(859)		(21,829)		(1,167)
PPP loan forgiveness			-		370,702		-		373,910
Recovery of accounts payable			-		11,835		4,448		18,335
Recovery of rent expense			-		-		-		1,552
Other income, net			171,062		381,200		213,193		372,450
Net loss and comprehensive loss for
the period		$	(399,781)	$	(237,659)	$	(923,402)	$	(768,223)
Basic and diluted loss per common
share		$	(0.00)	$	(0.00)	$	(0.01)	$	(0.01)
Weighted average number of common
shares outstanding			144,404,692		139,552,114		144,404,692		139,167,422

The accompanying notes are an integral part of these condensed consolidated interim financial statement. 5