Carl Data : Q1 Financial Statements for Period Ended September 30, 2021

CARL DATA SOLUTIONS INC.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(Unaudited)

(Expressed in Canadian Dollars)

CONTENTS
Condensed Consolidated Interim Statements of Financial Position	3
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss	4
Condensed Consolidated Interim Statements of Cash Flows	5
Condensed Consolidated Interim Statement of Shareholders' Equity (Deficiency)	6
Notes to the Condensed Consolidated Interim Financial Statements	7-20

NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the unaudited 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 consolidated interim financial statements of Carl Data Solutions Inc. (the "Company") have been prepared by and are the responsibility of the Company's management. The unaudited condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards and reflect management's best estimates and judgment based on information currently available.

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

CARL DATA SOLUTIONS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

Presented in Canadian Dollars - unaudited

		September 30,		June 30,
As at		2021		2021
ASSETS
Current Assets
Cash	$	2,066,322	$	2,903,056
Accounts and other receivables (note 4)		781,148		704,903
Digital currencies (note 5)		1,568		1,568
Prepaid expenses		50,204		57,198
Non-Current Assets		2,899,242		3,666,725
Property, equipment, and right-of-use assets (note 6)		285,163		321,054
Intangible assets (note 7)		60,377		80,503
Goodwill		118,775		118,775
Total Assets	$	3,363,557	$	4,187,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities (note 8)	$	517,698	$	807,978
Current portion of lease liabilities (note 9)		69,754		94,741
Current portion of loans payable (note 10)		42,255		41,735
Convertible notes (note 11)		212,287		198,702
		841,994		1,143,156
Loans payable (note 10)		252,357		263,140
Total Liabilities		1,094,351		1,406,296
Shareholders' Equity
Share capital (note 12)		24,837,032		24,837,032
Reserves (notes 11 and 14)		3,063,657		2,888,060
Equity conversion feature on convertible note (note 11)		70,191		70,191
Foreign currency translation reserve		31,441		27,323
Deficit		(25,733,115)		(25,041,845)
		2,269,206		2,780,761
Total Liabilities and Shareholders' Equity	$	3,363,557	$	4,187,057
Description of Business and Going Concern (note 1)
Subsequent event (note 14)

AUTHORIZED FOR ISSUE ON BEHALF OF THE BOARD ON NOVEMBER 29, 2021

"Kevin Ma"		"Chris Johnston"
Director		Director

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

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CARL DATA SOLUTIONS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS Presented in Canadian Dollars - unaudited

For the three months ended		September 30,		September 30,
	2021		2020
Revenue
Data services (note 17)	$	349,899	$	751,557
Social referral software (note 17)		24,949		38,650
Custom programming service contracts		6,122		23,667
		380,970		813,874
Expenses
Accretion of convertible note (note 11)		13,585		60,451
Amortization of intangible assets (note 7)		20,126		119,627
Bad debts recovery (notes 4 and 18)		(1,151)		(505)
Computer hosting costs		63,920		57,112
Consulting (note 17)		324,855		169,227
Depreciation of property, equipment, and right-of-use assets (note 6)		35,891		82,267
Energy costs		-		16,069
Filing and transfer agent		5,714		3,975
Foreign exchange loss (gain)		1,756		(2,367)
Interest and penalties (notes 10 and 11)		3,594		40,012
Investor relations		2,244		212,500
Marketing		33,677		4,625
Office and miscellaneous (note 17)		54,378		28,068
Professional fees		49,166		32,564
Share-based payments (notes 14 and 17)		175,597		-
Salaries and wages		264,514		232,743
Travel		22,437		2,963
		1,070,303		1,059,331
Operating loss		(689,333)		(245,457)
Other items
Accretion on lease liabilities (note 9)		(1,937)		(28,393)
Gain on modification of lease liabilities (note 9)		-		52,942
Property, equipment, and right-of-use assets written off (note 6)		-		(5,906)
Recovery on write-off of accounts payable		-		23,914
Loss for the period		(691,270)		(202,900)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Foreign exchange loss on translation of subsidiary		4,118		(7,316)
Comprehensive loss for the period	$	(687,152)	$	(210,216)
Weighted Average Number of Common Shares Outstanding
Basic and Diluted		126,424,783		87,027,416
Loss Per Share
Basic and Diluted	$	(0.01)	$	(0.00)

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

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CARL DATA SOLUTIONS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

Presented in Canadian Dollars - unaudited

		September 30,		September 30,
For the three months ended		2021		2020
Cash Flows used in Operating Activities
Loss for the period	$	(691,270)	$	(202,900)
Non-cash items
Amortization of intangible assets		20,126		119,627
Accretion on convertible notes		13,585		60,451
Accretion on lease liabilities		1,937		28,393
Depreciation of property, equipment, and right-of-use assets		35,891		82,267
Gain on modification of lease liabilities		-		(52,942)
Interest expense		2,472		37,482
Property, equipment, and right-of-use assets written off		-		5,906
Share-based payments		175,597		-
Changes in non-cash working capital items:
Accounts and other receivables		(68,443)		32,325
Prepaid expenses		7,082		26,990
Deferred revenue		-		(14,500)
Accounts payable and accrued liabilities		(294,894)		54,212
		(797,917)		177,311
Cash Flows provided by Financing Activities
Payment towards lease liabilities		(26,924)		(44,251)
Repayment of convertible notes		-		(11,667)
Repayment of loans payable		(12,735)		(5,766)
		(39,659)		(61,684)
Effect of foreign exchange on cash		842		100
Change in cash during the period		(836,734)		115,727
Cash - beginning of period		2,903,056		94,543
Cash - end of period	$	2,066,322	$	210,270
Supplemental Cash Flow Information (see note 16)

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

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