Carl Data : Q2 Financial Statements for Period Ended December 31, 2021

CARL DATA SOLUTIONS INC.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2021

(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

						December 31,		June 30,
As at				2021		2021
ASSETS
Current Assets
Cash			$	1,553,457	$	2,903,056
Accounts and other receivables (note 4)		670,486		704,903
Digital currencies (note 5)				1,568		1,568
Prepaid expenses				32,766		57,198
Non-Current Assets				2,258,277		3,666,725
Property, equipment, and right-of-use assets (note 6)		249,269		321,054
Intangible assets (note 7)				40,251		80,503
Goodwill				118,775		118,775
Total Assets			$	2,666,572	$	4,187,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities (note 8)	$	418,449	$	807,978
Current portion of lease liabilities (note 9)		44,137		94,741
Current portion of loans payable (note 10)		42,781		41,735
Convertible notes (note 11)				226,800		198,702
						732,167		1,143,156
Loans payable (note 10)				241,439		263,140
Total Liabilities				973,606		1,406,296
Shareholders' Equity
Share capital (note 12)				24,837,032		24,837,032
Reserves (notes 11 and 14)				3,102,623		2,888,060
Equity conversion feature on convertible note (note 11)		70,191		70,191
Foreign currency translation reserve				32,156		27,323
Deficit				(26,349,036)		(25,041,845)
						1,692,966		2,780,761
Total Liabilities and Shareholders' Equity	$	2,666,572	$	4,187,057
Description of Business and Going Concern (note 1)
AUTHORIZED FOR ISSUE ON BEHALF OF THE BOARD ON MARCH 1, 2022
"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

Three months	Three months	Six months	Six months
ended	ended	ended	ended
December 31,	December 31,	December 31,	December 31,
2021	2020	2021	2020

Revenue
Data services (note 17)	$	283,083	$	634,294	$	632,982	$	1,385,851
Social referral software (note 17)		26,551		31,399		51,500		70,049
Custom programming service contracts		53,246		8,155		59,368		31,822
		362,880		673,848		743,850		1,487,722
Expenses
Accretion of convertible note (note 11)		14,513		22,050		28,098		82,501
Amortization of intangible assets (note 7)		20,126		91,390		40,252		211,017
Bad debts recovery (notes 4 and 18)		(4,531)		(73)		(5,682)		(578)
Computer hosting costs		69,094		197,934		133,014		255,046
Consulting (note 17)		302,412		386,670		627,267		555,897
Depreciation of property, equipment, and right-of-use
assets (note 6)		35,894		48,133		71,785		130,400
Energy costs		-		-		-		16,069
Filing and transfer agent		13,143		8,446		18,857		12,421
Foreign exchange loss (gain)		6,368		(12,890)		8,124		(15,257)
Interest and penalties (notes 10 and 11)		3,596		43,848		7,190		83,860
Investor relations		46,696		3,900		48,940		216,400
Marketing		18,745		930		52,422		5,555
Office and miscellaneous (note 17)		57,652		35,639		112,030		63,707
Professional fees		107,179		105,408		156,345		137,972
Share-based payments (notes 14 and 17)		38,966		50,324		214,563		50,324
Salaries and wages		201,198		171,270		465,712		404,013
Travel		46,443		13,307		68,880		16,270
		977,494		1,166,286		2,047,797		2,225,617
Operating loss		(614,614)		(492,438)		(1,303,947)		(737,895)
Other items
Accretion on lease liabilities (note 9)		(1,307)		(3,712)		(3,244)		(32,105)
Gain on termination of lease liabilities (note 9)		-		-		-		52,942
Property, equipment, and right-of-use assets written
off (note 6)		-		-		-		(5,906)
Revaluation of Digital Currency		-		1,049		-		1,049
Recovery on write-off of accounts payable		-		-		-		23,914
Loss for the period		(615,921)		(495,101)		(1,307,191)		(698,001)
Other comprehensive income
Foreign exchange gain (loss) on translation of
subsidiary		715		(12,236)		4,833		(19,552)
Comprehensive loss for the period	$	(615,206)	$	(507,337)	$	(1,302,358)	$	(717,553)
Weighted Average Number of Common Shares
Outstanding
Basic and Diluted		126,424,783		87,003,929		126,424,783		87,015,672
Loss Per Share
Basic and Diluted	$	(0.00)	$	(0.01)	$	(0.01)	$	(0.01)

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

		December 31,		December 31,
For the six months ended		2021		2020
Cash Flows used in Operating Activities
Loss for the period	$	(1,307,191)	$	(1,952,238)
Non-cash items
Amortization of intangible assets		40,252		363,584
Accretion on convertible notes		28,098		83,978
Accretion on lease liabilities		3,244		33,703
Depreciation of property, equipment, and right-of-use assets		71,785		169,464
Gain on settlement of debt		-		(7,250)
Gain on termination of lease liabilities		-		(5,759)
Interest expense		4,815		52,624
Revaluation of Digital currency		-		332
Share-based payments		214,563		70,419
Changes in non-cash working capital items:
Accounts and other receivables		40,933		(55,396)
Prepaid expenses		24,435		299,512
Deferred revenue		-		60,167
Accounts payable and accrued liabilities		(392,091)		11,793
		(1,271,157)		(875,067)
Cash Flows (used in) provided by Financing Activities
Acquisition of i4C Innovation Centre Inc.		-		6,410
		-		6,410
Cash Flows provided by Financing Activities
Net proceeds from private placements		-		736,000
Proceeds from warrant exercises		-		264
Repurchase of common shares		-		(21,807)
Proceeds from convertible note		-		300,000
Payment towards lease liabilities		(53,848)		(66,888)
Repayment of convertible note		-		(62,667)
Proceeds from loans payable		-		30,000
Repayment of loans payable		(25,470)		-
		(79,318)		914,902
Effect of foreign exchange on cash		876		(3,167)
Change in cash during the period		(1,349,599)		43,078
Cash - beginning of period		2,903,056		30,829
Cash - end of period	$	1,553,457	$	73,907
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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