Cloud DX : TSXV-CDX & OTCQB-CDXFF) Quarterly Report

Cloud DX Inc.

(formerly Roosevelt Capital Group Inc.)

Condensed Interim

Consolidated Financial

Statements

For the Three and Nine Months Ended September 30, 2021 and 2020

(Unaudited - Expressed in Canadian Dollars)

Cloud DX Inc.

(formerly Roosevelt Capital Group Inc.)

Condensed Interim Consolidated Financial Statements

For the Three and Nine Months ended September 30, 2021 and 2020 (Unaudited - Expressed in Canadian Dollars)

Table of Contents

Condensed Interim Consolidated Statement of Financial Position	1
Condensed Interim Consolidated Statements of Operations and	2
Comprehensive Loss
Condensed Interim Consolidated Statements of Changes in	3
Shareholders' Equity (Deficiency)	4
Condensed Interim Consolidated Statements of Cash Flow
Notes to the Condensed Interim Consolidated Financial Statements	5-18

Cloud DX Inc.

(formerly Roosevelt Capital Group Inc.)

Condensed Interim Consolidated Statement of Financial Position As at September 30, 2021 and December 31, 2020

(Unaudited - Expressed in Canadian dollars)

		September 30,	December 31,
	Note	2021	2020
		$	$
Assets
Current Assets
Cash and cash equivalents		317,129	637,560
Restricted cash	6	60,000	-
Trade and other receivables	7	433,587	418,954
Marketable securities	12	-	433,251
Inventories	8	928,300	560,098
Prepaid expenses and deposits		244,702	309,615
Contract assets		2,740	-
		1,986,458	2,359,478
Non-Current Assets
Intangible assets	9	433,778	544,950
Property, plant and equipment	10	126,369	97,726
Asset in progress	11	26,905	64,867
Right of use asset	16	1,214,737	755,477
Total Assets		3,788,247	3,822,498
Liabilities and Shareholders' Equity (Deficiency)
Current Liabilities
Accounts payable and accrued liabilities		1,282,039	1,569,730
Deferred income		468,811	937,585
Lease liabilities	16	216,508	138,403
Advances from related parties	20	105,534	256,403
Current portion of conversion feature on convertible debt	5, 18	-	639,994
Current portion of convertible debt	5, 18	-	1,888,857
		2,072,892	5,430,972
Non-current Liabilities
Lease liabilities	16	1,070,380	638,464
Loan payable	19	289,532	-
Conversion feature on convertible debt	5, 18	-	542,423
Convertible debt	5,18	-	1,501,043
Total Liabilities		3,432,804	8,112,902
Shareholders' Equity (Deficiency)
Share capital	13	30,260,087	19,082,662
Deficit	13	(37,089,548)	(28,301,185)
Share based payment reserve	14	5,932,510	4,913,049
Warrant reserve		1,195,318	9,512
Accumulated other comprehensive loss		57,076	5,558
		355,443	(4,290,404)
		3,788,247	3,822,498

Approved on behalf of the Board of Directors on November 16, 2021

(signed) Robert Kaul, Chief Executive Officer and Director	(signed) William Charnetski, Director
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Cloud DX Inc.

(formerly Roosevelt Capital Group Inc.)

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss For the Three and Nine Months Ended September 30, 2021 and 2020

(Unaudited - expressed in Canadian dollars)

		Nine Months Ended	Three Months Ended
		Sept. 30,	Sept. 30,	Sept. 30,	Sept. 30,
	Note	2021	2020	2021	2020
		$	$	$	$
Revenue
Subscription	21	347,363	284,126	82,023	100,823
Product Sales	21	308,966	512,103	42,596	101,601
Professional services	21	115,084	13,351	-	4,280
Other	21	5,000	-	-	-
		776,413	809,580	124,619	206,704
Cost of inventories sold		237,302	554,845	62,270	119,927
Gross Profit		539,111	254,735	62,349	86,777
Operating Expenses
Advertising and promotion		397,147	43,044	109,244	29,265
Amortization and depreciation		285,858	251,238	114,755	83,805
Bad debt expense		20,805	-	7,299	-
Dues and memberships		272,249	187,184	85,704	50,929
Insurance		101,615	22,991	45,679	9,823
Office		442,684	464,700	146,057	225,318
Professional fees		906,130	641,542	456,610	491,002
Research		328,335	306,565	109,705	91,554
Salaries, wages and benefits		4,325,535	2,491,504	1,476,804	1,068,967
Share based compensation	14	967,432	278,005	18,485	109,602
Travel and entertainment		14,220	20,600	10,643	427
Other general and
administrative		66,159	18,849	6,629	(8,426)
		8,128,169	4,726,222	2,587,614	2,152,266
Operating loss		(7,589,058)	(4,471,487)	(2,525,265)	(2,065,489)
Other (expenses)/income:
Foreign exchange gain/(loss)		5,359	48,039	(14,843)	90,798
Interest income (expense)		(562,136)	(401,984)	(37,306)	(206,668)
Government funding and grant		861,253	515,217	199,997	251,161
income
Gain on marketable securities	12	207,887	88,856	4,958	361,891
Fair value loss	18	(77,345)	(533,782)	(1,848)	(531,006)
Listing expense	5	(1,634,323)	-	(1,974)	-
		(1,199,305)	(283,654)	148,984	(33,824)
Loss before income taxes		(8,788,363)	(4,755,141)	(2,376,281)	(2,099,313)
Income taxes		-	-	-	-
Net loss		(8,788,363)	(4,755,141)	(2,376,281)	(2,099,313)
Other comprehensive		51,518	99,737	71,745	(327,812)
income/(loss)
Comprehensive loss		(8,736,845)	(4,655,404)	(2,304,536)	(2,427,125)
Basic and diluted weighted		61,631,699	41,380,229	72,886,650	43,917,615
average number of shares:
Basic and diluted loss per share:	13	(0.14)	(0.12)	(0.03)	(0.06)

Outstanding number of shares has been retroactively adjusted to reflect a share exchange in connection with the Transaction of 22.3783 resulting issuer shares for every 1 share of Cloud DX, Inc. See Note 5.

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Cloud DX Inc.

(formerly Roosevelt Capital Group Inc.)

Condensed Interim Consolidated Statement of Changes in Shareholders' Equity (Deficiency) For the Nine Months ended September 30, 2021 and 2020

(Unaudited - expressed in Canadian dollars)

	Number of	Common	Share based	Warrant	Other
	Common	comprehensive	(Deficit)	Total Shareholders'
	Shares	reserve	reserve
	Shares	income/(loss)
Note		$	$	$	$	$	Equity (Deficiency)
							$
Balance at December 31, 2019	1,621,130	16,343,731	4,577,848	-	(411,862)	(22,488,923)	(1,979,206)
Issuance of Capital	236,198	1,618,309					1,618,309
Conversion of Debt	101,181	1,128,411					1,128,411
Share based compensation	4,000	11,030	266,975				278,005
Issuance costs		(18,819)					(18,819)
Net and comprehensive loss for					99,737	(4,755,141)	(4,655,404)
the period
Balance at September 30, 2020	1,962,509	19,082,662	4,844,823	-	(312,125)	(27,244,064)	(3,628,704)

Balance at December 31, 2020		1,962,509	19,082,662	4,913,049	9,512	5,558	(28,301,185)	(4,290,404)
Reverse takeover transaction	5	3,740,415	1,557,823	52,029	19,426			1,629,278
Private placement	13	12,190,000	4,928,620		1,166,380			6,095,000
Conversion of debt	18	11,826,254	5,467,014					5,467,014
Share exchange	13	42,375,218	172,865					172,865
Issuance costs	13		(948,897)					(948,897)
Stock based compensation				967,432				967,432
Net and comprehensive loss for		-	-	-	-	51,518	(8,788,363)	(8,736,845)
the period
Balance at September 30, 2021		72,094,396	30,260,087	5,932,510	1,195,318	57,076	(37,089,548)	355,443

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