Emergence Global Enterprises : Q2 Interim Financial Statement

EMERGENCE GLOBAL ENTERPRISES INC.

(FORMERLY VELOCITY DATA INC.)

Consolidated Financial Statements

For the six-month period ended April 30, 2022 and 2021

(Expressed in United States dollars)

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EMERGENCE GLOBAL ENTERPRISES INC.

(FORMERLY VELOCITY DATA INC.)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in United States dollars)

As at		April 30,	October 31,
		2022	2021
Note		$	$
Assets
Current assets
Cash and Cash Equivalents		84,334	207,695
Inventory	5	311,221	520,855
Accounts Receivable		336,894	87,367
Prepaid Expenses / Other Assets		554,027	162,232
Current assets		1,286.476	978,149
Non-current assets
Property and Equipment	4	140,884	142,275
Goodwill	3	3,875,121	3,937,117
Total assets		5,302,481	5,057,541
Liabilities and shareholders' deficit
Current liabilities
Accounts Payable and Accrued Liabilities		407,494	336,214
Loans Payable	6	1,377,240	853,135
Due to Related Parties	7	344,465	274,108
Total Current liabilities		2,129,199	1,463,457
Non-Current Liabilities
Loans Payable	7	301,852	776,434
Total liabilities		2,431,051	2,239,891
Shareholders' deficit
Share Capital	8	5,217,998	4,819,690
Share-Based Payment Reserve		222,564	225,156
Accumulated Other Comprehensive Income (Loss)		196,226	177,125
Accumulated Deficit		(2,765,358)	(2,404,211)
Total shareholders' deficit		2,871,430	2,817,760
Total liabilities and shareholders' deficit		5,302,051	5,057,651

Nature of operations and going concern (Note 1)

Approved and authorized for issuance by the Board of Directors on June 23, 2022

Joe Byrne, CEO

Diego Felipe Rodriguez, CFO

(The accompanying notes are an integral part of these consolidated financial statements.)

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EMERGENCE GLOBAL ENTERPRISES INC.

(FORMERLY VELOCITY DATA INC.)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Expressed in United States dollars)

	For the six-month period ended	April 30,	April 30,
				2022	2021
				$	$
	Revenue	685,916	417,183
	Cost of sales	415,837	322,166
	Gross Profit		270,079	95,017
	Expenses
	209,457	148,749
	Selling, General and Administrative Expenses
	Total Expenses	209,457	148,749
	Loss Before Other Income (Expense)		60,622	(53.732)
	Other Income/ (Expense)
	Insurance Claim	22,837	-
	Interest Expense		(1.032)	(3,050)
	Total other Income (Expense)	21,805	(56,802)
	Net Income/ Loss from Continuing Operations	-	(56,802)
	Net Loss from Discontinuing Operation	-	-
	Net income (loss) for the year	82,427	(56,802)
	Other comprehensive Income (Loss)
	Foreign Currency Translation Income (Loss)	-	(14,222)
	Comprehensive Income (Loss) for the year	82,427	(71,024)
	Net Income/ (loss) Per Share - Basic and Diluted	0.00	0.00
	Weighted Average Number of Common Shares Outstanding	46,070,230	17,675,922

(The accompanying notes are an integral part of these consolidated financial statements.)

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EMERGENCE GLOBAL ENTERPRISES INC. (FORMERLY VELOCITY DATA INC.)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Expressed in United States dollars)

Share Capital

Number of

shares$

Accumulated

Share-	Other
Based
Comprehensive
Payment e	Income (loss)	Deficit	Total
Reserve	$	$	$
$

Balance as at October 31, 2020	16,156,971	985,994	225,156	(29,341)	(2,121,571)	(939,762)
Shares issued for acquisition of	4,525,000	3,833,696	-	-	-	3,833,696
subsidiary
Foreign exchange translation gain (loss)	-	-	-	206,466	-	206,466
Net income (loss) for the year	-	-	-	-	(282,640)	(282,640)
Balance as at October 31, 2021	20,681,971	4,819,690	225,156	177,125	(2,404,211)	2,817,760
Shares Issued	57,660,777	390,308	225,156			390,308
Foreign exchange translation gain (loss)	-	-	-	0	-	-
Net income (loss)	-	-	-		82,847	82,847
Balance as at April 30, 2022	78,342,748	5,217,998	225,156	177,125	(2,765,358)	3,290,915

(The accompanying notes are an integral part of these consolidated financial statements.)

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EMERGENCE GLOBAL ENTERPRISES INC. (FORMERLY VELOCITY DATA INC.)

CASH FLOW STATEMENT

For the six months ended April 30, 2022 and 2021 (Expressed in United States dollars)

For the period ended	April 30,	April 30,
	2022	2021
	$	$
Operating activities
Net income (loss)	82,427	(76,789)
Items not affecting cash:
Net Assets from Acquisitions	-	172,229
Depreciation		-
Changes in non-cash operating working capital:
Inventory	(357,994)	(545,453)
Accounts receivable	(311,838)	(21,885)
Prepaid expenses / Other	-	9,082
Accounts payable and accrued expenses	370,075	46,264
Due to related parties	302,984	121,783
Net cash flows provided by operating activities	3,227	(340,943)
Investing activities
Proceeds of Financing Activities	10,671	0
Net cash flows provided by financing activities	10,671	0
Financing activities
Proceed from loan payables	83,633	619,423
Net cash flows provided by (used in) operating activities	83,633	278,480
Effect of foreign exchange rate changes on cash	-	(57,550)
Net increase (decrease) in cash during the year	(8.651)	220,930
Cash, beginning of reporting period	92,985	3,345
Cash, end of reporting period	84,334	224,275

(The accompanying notes are an integral part of these consolidated financial statements)

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