Inter Rock Minerals : Financial Statements 2022 Q2

Condensed Consolidated Interim Financial Statements

Unaudited

Expressed in United States dollars

For the six months ended June 30, 2022

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 condensed consolidated 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 the Company have been prepared by, and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these financial statements.

INTER-ROCK MINERALS INC.

August 23, 2022

1

Inter-Rock Minerals Inc.

Condensed Consolidated Interim Balance Sheets (Expressed in thousands of United States Dollars)

		June 30,	December 31,
UNAUDITED	Note	2022	2021
		$	$
ASSETS
Current assets
Cash		4,929	2,266
Accounts receivable		10,129	5,161
Inventories	7	2,382	1,624
Prepaid expenses and other assets		692	1,110
Assets held for sale		-	6,595
Total Current Assets		18,132	16,756
Non-current assets
Deferred tax asset		-	262
Properties, plant and equipment	8	2,395	2,354
Intangible assets	9	1,207	1,368
Goodwill	9	1,808	1,808
Total Assets		23,542	22,548
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities		9,916	4,345
Current portion of long term debt	10	682	1,316
Current portion of lease obligations	11	269	330
Liabilities held for sale		-	3,837
Total Current Liabilities		10,867	9,828
Non-current liabilities
Long term debt	10	6	280
Lease obligations	11	321	422
Deferred tax liability		672	-
Asset retirement obligation	12	26	26
Series A preferred shares	13	3,417	3,417
Total Liabilities		15,309	13,973
Equity
Share capital	14	5,791	5,791
Contributed surplus		315	315
Retained earnings		2,127	2,469
Total Equity		8,233	8,575
Total Liabilities and Equity		23,542	22,548

Financial Commitments (Note 20)

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

2

Inter-Rock Minerals Inc.

Condensed Consolidated Interim Statements of Net and Comprehensive Income

(Expressed in thousands of United States Dollars except for outstanding shares and per share amounts)

		For the three months ended	For the six months ended
		June 30,	June 30,	June 30,	June 30,
		2022	2021	2022	2021
UNAUDITED	Note		(restated)		(restated)
		$	$	$	$
REVENUE	6,18	24,173	16,878	41,726	33,749
COST OF SALES
Operating costs	6	21,422	14,665	36,764	29,526
GROSS PROFIT		2,751	2,213	4,962	4,223
OPERATING EXPENSES
Gain on sale of asset	5	220	-	(393)	-
Selling, general and administrative	6	1,566	1,455	3,222	2,670
Amortization and depletion	8	155	136	295	269
Amortization of intangible assets	9	80	82	161	164
INCOME BEFORE FINANCING COSTS		730	540	1,677	1,120
FINANCING COSTS
Gain on debt forgiveness		-	(318)	-	(318)
Interest on Series A preferred shares	13	34	28	34	28
Interest on debt and lease obligations	10,11	20	44	52	88
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES		676	786	1,591	1,322
INCOME TAXES
Current		307	73	382	103
		307	73	382	103
NET INCOME AND COMPREHENSIVE INCOME
FROM CONTINUING OPERATIONS		369	713	1,209	1,219
NET (LOSS) AND COMPREHENSIVE (LOSS)
FROM DISCONTINUED OPERATIONS	5	-	(45)	-	(145)
NET INCOME AND COMPREHENSIVE INCOME		369	668	1,209	1,074
Basic income per share	15	0.02	0.03	0.05	0.05
Diluted income per share	15	0.01	0.02	0.03	0.03
Weighted average number of shares outstanding
Basic		22,303,311	22,312,811	22,303,311	22,312,811
Diluted		39,440,291	39,449,811	39,440,291	39,449,811

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

3

Inter-Rock Minerals Inc.

Condensed Consolidated Interim Statements of Changes in Equity

(Expressed in thousands of United States Dollars)

	Share
	Capital	Contributed	Retained
	(Note 14)	Surplus	Earnings	Total
	$	$	$	$
Balance, December 31, 2020	5,794	315	1,168	7,277
Net income and comprehensive income	(2)	-	-	(2)
Shares purchased for cancellation		-	406	406
Balance, June 30, 2021	5,792	315	1,574	7,681
Balance, December 31, 2021	5,791	315	2,469	8,575
Prior year cumulative subsidiary losses	-	-	(1,551)	(1,551)
Net income and comprehensive income	-	-	1,209	1,209
Balance, June 30, 2022	5,791	315	2,127	8,233

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

4