Environmental Waste International : EWI FS June 30 2021

Interim Condensed Consolidated Financial Statements

Environmental Waste International Inc.

For the six months ended June 30, 2021, and 2020 (Unaudited)

Environmental Waste International Inc.

Interim condensed consolidated statements of financial position

[Expressed in Canadian dollars]

[Unaudited]

		June 30,	December 31,
As at		2021	2020
	Note	$	$
Assets
Current
Cash		375,423	619,721
Trade and other receivables		25,987	63,403
Government remittances recoverable		167,859	59,452
Prepaid expenses and sundry		108,990	51,387
		678,259	793,963
Assets held for sale	5	2,615,236	-
Total current assets		3,293,495	793,963
Property and equipment, net	6	29,143	1,007,006
Right-of-use asset	7	133,094	148,010
		3,455,732	1,948,979
Liabilities and shareholders' deficiency
Current
Accounts payable and accrued liabilities	14b	495,289	436,294
Provisions	8	13,900	39,600
Current portion of lease liability	7	18,500	14,285
Current portion of promissory note payable	9c	1,101,775	1,077,904
Current portion of term loan payable	9b	316,156	2,230,344
Current portion of mortgages payable	9e	-	2,253
Contract liability		45,880	63,515
Deferred compensation	9f	278,505	-
Derivative liability	9d	507,616	757,295
		2,777,621	4,621,490
Liabilities directly associated with the assets held for sale	5	2,602,300	-
Total current liabilities		5,379,921	4,621,490
Lease liability	7	127,698	134,351
CEBA loans payable	9a	105,622	67,475
Mortgage payable	9e	-	493,093
Deferred compensation	9f	-	430,000
Total liabilities		5,613,241	5,746,409
Shareholders' deficiency
Capital stock	10a	56,129,455	54,481,040
Contributed surplus	10d	6,756,237	6,760,615
Deficit		(66,027,140)	(65,039,085)
Shareholders' deficiency attributable to equity holders of the parent		(3,141,448)	(3,797,430)
Non-controlling interests	11	983,939	-
Total shareholders' deficiency		(2,157,509)	(3,797,430)
		3,455,732	1,948,979
Going concern	3
Commitment and contingencies	15
Subsequent events	20

The accompanying notes are an integral part of these interim condensed consolidated financial statements

Environmental Waste International Inc.

Interim condensed consolidated statements of income (loss) and comprehensive income (loss)

[Expressed in Canadian dollars]

[Unaudited]

		Three months	Three months	Six months	Six months
		ended	ended	ended	ended
	Note	June 30, 2021	June 30, 2020	June 30, 2021	June 30, 2020
Revenue		36,153	23,873	59,971	65,695
Expenses
Technology development	13	417,833	163,826	484,442	241,131
Selling, marketing and administration	13	235,144	159,552	363,482	373,366
Stock-based compensation	10b	36,540	41,301	72,389	76,707
Depreciation of property and equipment	6	1,644	575	2,778	1,151
Amortization of right-of-use asset	7	7,504	8,586	14,916	17,172
		698,665	373,840	938,007	709,527
Operating loss		(662,512)	(349,967)	(878,036)	(643,832)
Other income (expenses)
Gain on recognition of interest-free loans	9a	-	-	6,254	-
Finance costs	9g	(44,629)	(92,659)	(95,777)	(206,449)
Foreign exchange gain (loss)		(27,911)	49,787	(28,008)	28,545
Change in fair value of derivative	9d	532,767	(222,530)	249,679	1,003,290
		460,227	(265,402)	132,148	825,386
Net income (loss) and comprehensive income (loss)
for the period from continuing operations		(202,285)	(615,369)	(745,888)	181,554
Net loss and comprehensive loss for the period
from discontinued operations	5	(162,807)	(58,730)	(258,228)	(148,767)
Net income (loss) and comprehensive income (loss) for the period		(365,092)	(674,099)	(1,004,116)	32,787
Net loss and comprehensive loss attributable to
non-controlling interests	11	(15,637)	-	(16,061)	-
Net income (loss) attributable to equity holders of the parent		(349,455)	(674,099)	(988,055)	32,787
Income (loss) per share from continuing operations - basic		(0.001)	(0.003)	(0.003)	0.001
Income (loss) per share from continuing operations - diluted		(0.001)	(0.003)	(0.003)	0.001
Loss per share from discontinued operations - basic		(0.001)	(0.000)	(0.001)	(0.001)
Loss per share from discontinued operations - diluted		(0.001)	(0.000)	(0.001)	(0.001)
Weighted average number of shares outstanding
basic		251,645,964	214,424,274	249,620,090	214,390,461
diluted		251,645,964	214,424,274	249,620,090	251,390,362

The accompanying notes are an integral part of these interim condensed consolidated financial statements

Environmental Waste International Inc.

Interim condensed consolidated statements of changes in shareholders' deficiency

[Expressed in Canadian dollars]

[Unaudited]

Six months ended June 30, 2021 and 2020

						Total
						attributable to	Non-
				Contributed		equity holders	controlling
		Capital Stock	surplus	Deficit	of the parent	interests	Total
	Note	#	$	$	$	$	$	$
Balance, December 31, 2019		214,356,649	50,611,761	6,492,500	(62,621,881)	(5,517,620)	-	(5,517,620)
Stock-based compensation	10b	-	-	76,707	-	76,707	-	76,707
Issuance of shares pursuant to private placement	10a	6,153,846	211,921	-	-	211,921	-	211,921
Issuance of warrants pursuant to private placement	10a	-	-	188,079	-	188,079	-	188,079
Share issue costs	10a	-	(5,893)	-	-	(5,893)	-	(5,893)
Net income and comprehensive income for the period		-	-	-	32,787	32,787	-	32,787
Balance, June 30, 2020		220,510,495	50,817,789	6,757,286	(62,589,094)	(5,014,019)	-	(5,014,019)
Stock-based compensation	10b	-	-	81,909	-	81,909	-	81,909
Issuance of shares on conversion of convertible loan	10a	25,114,037	3,449,114	-	-	3,449,114	-	3,449,114
Stock options exercised	10a	1,548,308	223,116	(75,284)	-	147,832	-	147,832
Share issue costs	10a	-	(8,979)	(3,296)	-	(12,275)	-	(12,275)
Net loss and comprehensive loss for the period		-	-	-	(2,449,991)	(2,449,991)	-	(2,449,991)
Balance, December 31, 2020		247,172,840	54,481,040	6,760,615	(65,039,085)	(3,797,430)	-	(3,797,430)
Stock-based compensation	10b	-	-	72,389	-	72,389	-	72,389
Issuance of shares pursuant to private placement	10a	4,110,000	1,233,000	-	-	1,233,000	-	1,233,000
Issuance of shares pursuant to settlement of debt	9f, 10a	677,083	162,500	-	-	162,500	-	162,500
Stock options exercised	10b	1,436,638	205,969	(65,621)	-	140,348	-	140,348
Warrants exercised	10c	250,000	61,146	(11,146)	-	50,000	-	50,000
Issuance of shares in Ellsin Environmental Ltd.	5, 11	-	-	-	-	-	1,000,000	1,000,000
Share issue costs	10a	-	(14,200)	-	-	(14,200)	-	(14,200)
Net loss and comprehensive loss for the period		-	-	-	(988,055)	(988,055)	(16,061)	(1,004,116)
Balance, June 30, 2021		253,646,561	56,129,455	6,756,237	(66,027,140)	(3,141,448)	983,939	(2,157,509)

The accompanying notes are an integral part of these interim condensed consolidated financial statements

Environmental Waste International Inc.

Interim condensed consolidated statements of cash flows

[Expressed in Canadian dollars]

[Unaudited]

		Six months	Six months
		June 30, 2021	June 30, 2020
	Note	$	$
Operating activities
Net income (loss) from continuing operations for the period		(745,888)	181,554
Add items not involving cash
Stock-based compensation	10b	72,389	76,707
Depreciation of property and equipment	6	2,778	1,151
Amortization of right-of-use asset	7	14,916	17,172
Finance costs	9g	95,777	206,449
Gain on recognition of interest-free loan	9a	(6,254)	-
Accretion expense	9a, 9g	4,402	-
Change in fair value of derivative	9d	(249,679)	(1,003,290)
		(811,559)	(520,257)
Changes in non-cash working capital balances related to continuing operations
Trade and other receivables		37,400	17,466
Government remittances recoverable		(108,407)	47,331
Prepaid expenses and sundry		(57,603)	4,067
Accounts payable and accrued liabilities		273,145	93,677
Provisions		(25,700)	(21,000)
Contract liability		(17,635)	(50,006)
		101,200	91,535
Cash used in operating activities from continuing operations		(710,359)	(428,722)
Cash from (used in) operating activities from discontinued operations	5	221,418	(36,941)
Cash used in operating activities		(488,941)	(465,663)
Investing activities
Purchase of property and equipment	6	(15,121)	-
Cash used in investing activities from discontinued operations	5	(518,913)	-
Cash used in investing activities		(534,034)	-
Financing activities
Proceeds from loans payable	9a	40,000	80,000
Proceeds from exercise of stock options	10b	140,348	394,107
Proceeds from exercise of warrants	10c	50,000	-
Share issue costs		(14,200)	-
Repayments of mortgage payable	9e	-	(4,822)
Repayments of lease obligations	7	(2,438)	(17,141)
Cash provided by (used in) financing activities from continuing operations		213,710	452,144
Cash provided by (used in) financing activities from discontinued operations	5	564,967	(13,694)
Cash provided by financing activities		778,677	452,144
Net decrease in cash during the period		(244,298)	(13,519)
Cash, beginning of period		619,721	885,591
Cash, end of period		375,423	872,072
Non-cash transactions
Issuance of shares pursuant to settlement of debt	9f, 10a	162,500	-