Highbank Resources : FS 2022 - 3Q

HIGHBANK RESOURCES LTD.

Condensed Interim Financial Statements For the period ended September 30, 2022 Unaudited - Expressed in Canadian Dollars

NOTICE TO READER

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim financial statements have been prepared by and are the responsibility of the management.

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

HIGHBANK RESOURCES LTD.

Condensed Interim Statements of Financial Position (Unaudited - Expressed in Canadian dollars)

			June 30,	December 31,
	Notes		2022		2021
ASSETS
Current assets
Cash		$	160,417	$	2,204
Accounts receivable			1,436		2,383
Due from related parties	11		1,704		1,704
Prepaid expenses			8,467		5,866
			172,024		12,157
Non-current assets
Property and equipment	4		682		758
Reclamation bond	6		189,500		189,500
Exploration and evaluation assets	5		35,003		3
			225,185		190,261
TOTAL ASSETS		$	397,209	$	202,418
LIABILITIES
Current liabilities
Trade payables and accrued liabilities	7	$	2,299,408	$	2,139,161
Promissory notes	10		3,052,339		2,880,075
Due to related parties	11		1,173,159		1,054,034
Production loan	4, 10		900,000		900,000
Convertible debentures	10		-		-
			7,424,906		6,973,270
Non-current liabilities
Convertible debentures	10		3,031,095		2,592,094
Reclamation obligation	6		94,750		94,750
			3,125,845		2,686,844
TOTAL LIABILITIES			10,550,751		9,660,114
SHAREHOLDERS' EQUITY (DEFICIT)
Share capital	8		17,419,902		17,189,233
Share subscription advance (receivable)			116,330		(6,650)
Equity component of convertible debentures	10		1,207,205		1,207,205
Contributed surplus	9		1,574,095		1,509,658
Deficit			(30,471,074)		(29,357,142)
TOTAL SHAREHOLDERS' EQUITY (DEFICIT)			(10,153,542)		(9,457,696)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)	$	397,209	$	202,418

Nature and continuance of operations (Note 1)

Commitments (Notes 4 and 11)

Contingency (Note 5)

Subsequent events (Note 14)

Approved on behalf of the Board:

"Gary Musil"	"Mark Luchinski"
Director	Director
See accompanying notes to the financial statements

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HIGHBANK RESOURCES LTD.

Condensed Interim Statements of Comprehensive Loss (Unaudited - Expressed in Canadian dollars)

		Three months ended September 30,	Nine months ended September 30,
	Notes		2022		2021		2022		2021
Expenses
Depreciation	4	$	25	$	30	$	76	$	90
Consulting fees	11		7,500		-		7,500		-
Interest and bank charges			30,910		20,920		106,991		90,249
Loan bonus shares	8		-		-		800		800
Management fees	11		15,000		37,500		90,000		112,500
Office and miscellaneous	11		236		153		2,197		1,331
Professional fees			4,573		7,000		26,220		19,807
Regulatory and transfer agent			22,493		2,487		34,519		14,338
Rent	11		2,250		2,250		6,750		6,750
Share-based payment
Directors	9,11		45,177				45,177		-
Consultants			7,529				7,529		-
Shareholder information			206		-		3,386		518
Travel and promotion			-		-		363		1,143
			135,899		70,340		331,508		247,526
Other items
Property maintenance			-		-		2,082		-
Interest on promissory notes, convertible
debentures, and production loan	10, 11		269,775		231,374		780,342		456,147
			269,775		231,374		782,424		456,147
Net and comprehensive loss for the period		$	405,674	$	301,714	$	1,113,932	$	703,673
Weighted average number of common
shares outstanding (basic and diluted)			15,850,889		13,990,662		14,556,972		13,992,289
Basic and diluted net loss per share		$	(0.03)	$	(0.02)	$	(0.08)	$	(0.05)

See accompanying notes to the financial statements

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HIGHBANK RESOURCES LTD.

Condensed Interim Statements of Changes in Shareholders' Equity (Deficit) (Unaudited - Expressed in Canadian dollars)

	Share capital
					Share		Equity
				subscription	component of
	Number of				advance	convertible	Contributed
	shares		Amount	(receivable)	debenture		Surplus	Deficit		Total
Balance at January 1, 2021	13,990,372	$	17,188,433	$	(6,650)	$	-	$	1,509,658	$ (20,922,257)	$	(2,230,816)
Loss for the period	-		-		-		-		-	(703,673)		(703,673)
Bonus shares and finders fee issued	4,000		800		-		-		-	-		800
Equity component of convertible debenture	-		-		-		1,653,705		-	-		1,653,705
Balance at September 30, 2021	13,994,372	$	17,189,233	$	(6,650)	$	1,653,705	$	1,509,658	$ (21,625,930)	$	(1,279,984)
Balance at January 1, 2022	13,994,672	$	17,189,233	$	(6,650)	$	1,207,205	$	1,509,658	$ (29,357,142)	$	(9,457,696)
Loss for the period	-		-		-		-		-	(1,113,932)		(1,113,932)
Shares issued for cash
- private placement	4,700,000		235,000		-		-		-	-		235,000
Share issue costs	-		(18,400)		-		-		-	-		(18,400)
Bonus shares and finders fee issued	16,000		800		-		-		-	-		800
Shares issued for exploration and evaluation asset	500,000		25,000		-		-		-	-		25,000
Fair value of brokers warrants	-		(11,731)						11,731			-
Share-based payment	-		-		-		-		52,706	-		52,706
Share subscriptions advanced	-		-		122,980		-		-	-		122,980
Balance at September 30, 2022	19,210,672	$	17,419,902	$	116,330	$	1,207,205	$	1,574,095	$ (30,471,074)	$	(10,153,542)

See accompanying notes to the financial statements

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