ImagineAR : Interim Financial Report for Period Ended May 31, 2022

IMAGINEAR INC.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED MAY 31, 2022 AND 2021

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED - PREPARED BY MANAGEMENT)

NOTICE OF NO AUDITOR REVIEW

The accompanying unaudited condensed interim financial statements of Imagination Park Technology have been prepared by and are the responsibility of management and have approved by the Board of Directors.

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

IMAGINEAR INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED - PREPARED BY MANAGEMENT)

		May 31,		August 31,
		2022		2021
ASSETS
Current
Cash	$	963,000	$	4,205,362
Receivables (Note 5)		301,633		67,240
Prepaid expenses (Note 6)		74,087		42,911
Total current assets		1,338,720		4,315,513
Intangible asset (Note 11)		49,892		-
Reclamation bonds (Note 7)		-		5,040
Right of use asset (Note 10)		12,403		8,303
Total assets	$	1,401,015	$	4,328,856
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities (Notes 8 and 15)	$	294,644	$	402,487
Deferred revenue (Note 9)		47,548		16,340
Subscriptions received in advance		13,032		13,032
Lease liabilities (Note 10)		12,478		7,900
Total current liabilities		367,702		439,759
Loan payable (Note 12)		40,000		40,000
Total liabilities		407,702		479,759
Shareholders' equity
Capital stock (Note 14)		34,388,295		34,358,920
Reserves (Note 14)		7,122,975		6,912,274
Deficit		(40,517,957)		(37,422,097)
Total shareholders' equity		993,313		3,849,097
Total liabilities and shareholders' equity	$	1,401,015	$	4,328,856

Nature and continuance of operations (Note 1)

Subsequent events (Note 19)

"Alen Paul Silverrstieen"		"Mike Tunnicliffe"
Director		Director

See accompanying notes to the condensed interim consolidated financial statements.

IMAGINEAR INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED - PREPARED BY MANAGEMENT)

		Three Months Ended		Nine Months Ended
				May 31,				May 31,
		2022		2021		2022		2021
REVENUE
Licensing income	$	-	$	-	$	176,237	$	-
Services income		93,097		99,260		128,531		264,229
Recovery (cost) of sales		-		-		(98,839)		-
		93,097		99,260		205,929		264,229
EXPENSES
Accretion of convertible debentures (Note 13)		-		250		-		1,260
Consulting, director and management fees (Note 15)		596,026		296,311		1,012,454		618,634
Depreciation (Note 10)		17,769		5,537		23,996		19,037
Foreign exchange loss		5,336		211		13,480		38,019
Interest		245		116		730		3,122
Office and miscellaneous		40,348		62,453		151,164		165,520
Professional fees		64,737		106,375		220,154		206,128
Share-based compensation (Notes 14 and 15)		43,413		1,053,733		210,701		2,425,341
Shareholder communications and promotion		124,857		352,334		300,199		682,020
Software (Note 16)		213,910		483,474		1,376,534		1,025,025
Transfer agent and filing fees		4,679		9,211		12,538		17,696
Travel and accommodation		14,589		5,231		34,181		6,878
Wages and salaries		26,663		24,518		90,328		81,207
		(1,152,572)		(2,399,754)		(3,446,459)		(5,289,887)
OTHER
Bad debt expenses		(13)		-		(6,332)		-
Forgiveness of debt		9,375		14,047		9,375		14,047
Write-off of reclamation bond		-		-		(5,040)		-
Write-off of accounts payable (Notes 8 and 15)		-		-		146,667		-
		9,362		14,047		144,670		14,047
Net loss and comprehensive loss for the period	$	(1,050,113)	$	(2,286,447)	$	(3,095,860)	$	(5,011,611)
Basic and diluted net loss per common share	$	(0.01)	$	(0.01)	$	(0.02)	$	(0.03)
Weighted average number of common shares
outstanding - basic and diluted		203,601,826		199,945,272		203,496,712		192,349,415

See accompanying notes to the condensed interim consolidated financial statements.

IMAGINEAR INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED - PREPARED BY MANAGEMENT)

For the nine months ended,

May 31,

		2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$	(3,095,860)	$	(5,011,611)
Items not affecting cash:
Depreciation		23,997		19,037
Share-based compensation		210,701		2,425,341
Accretion interest on convertible debentures		-		3,122
Accretion interest on lease liabilities		730		1,260
Forgiveness of lease liabilities		-		(14,047)
Shares for services		9,375		335,000
Write-off of reclamation bond		5,040		-
Write-down of accounts payable		(146,667)		-
Change in non-cash working capital items:
Receivables		(234,393)		(70,310)
Prepaid expenses		(31,176)		32,443
Accounts payable and accrued liabilities		38,824		(61,058)
Deferred revenue		31,208		65,590
Cash used in operating activities		(3,188,221)		(2,275,233)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from options exercised		-		91,550
Proceeds from warrants exercised		20,000		2,829,633
Cash provided by financing activities		20,000		2,921,183
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible asset		(64,458)		-
Repayment of lease liabilities		(9,683)		(7,452)
Cash used in investing activities		(74,141)		(7,452)
Change in cash		(3,242,362)		638,498
Cash, beginning of period		4,205,362		4,659,437
Cash, end of period	$	963,000	$	5,297,935
Cash paid for taxes during the period	$	-	$	-
Cash paid for interest during the period	$	-	$	-

Supplemental disclosure with respect to cash flows (Note 19)

See accompanying notes to the condensed interim consolidated financial statements.