Jayden Resources Inc.
Consolidated Financial Statements
For the years ended December 31, 2023 and 2022
Address: | Suite #2250, 1055 West Hastings Street |
Vancouver, British Columbia | |
V6E 2E9 | |
Contact: | Herrick Lau |
Chief Financial Officer | |
Telephone number: | (604) 688-9588 |
Fax number: | (778) 329-9361 |
Email address: | hlau@jaydenresources.com |
Website: | www.jaydenresources.com |
Contents
Page | |
Management's Responsibility | 2 |
Independent Auditor's Report | 3-6 |
Consolidated Statements of Loss | 7 |
Consolidated Statements of Financial Position | 8 |
Consolidated Statements of Changes in Equity | 9 |
Consolidated Statements of Cash Flows | 10 |
Notes to the Consolidated Financial Statements | 11-26 |
1
Management's Responsibility
To the Shareholders of Jayden Resources Inc. (the "Company"):
Management is responsible for the preparation and presentation of the accompanying consolidated financial statements, including responsibility for significant accounting judgments and estimates in accordance with International Financial Reporting Standards and ensuring that all information in the annual report is consistent with the statements. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required.
In discharging its responsibilities for the integrity and fairness of the consolidated financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safe guarded and financial records are properly maintained to provide reliable information for the preparation of financial statements.
The Board of Directors and Audit Committee are composed primarily of Directors who are neither management nor employees of the Company. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and external auditors. The Audit Committee has the responsibility of meeting with management and external auditors to discuss the internal controls over the financial reporting process, auditing matters and financial reporting issues. The Board of Directors is also responsible for recommending the appointment of the Company's external auditors.
MNP LLP is appointed by the shareholders to audit the consolidated financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Audit Committee and management to discuss their audit findings.
April 25, 2024 | |
(signed) | (signed) |
David Eaton | Herrick Lau |
CEO and director | CFO |
2
Independent Auditor's Report
To the Shareholders of Jayden Resources Inc.:
Opinion
We have audited the consolidated financial statements of Jayden Resources Inc. (the "Company"), which comprise the consolidated statements of financial position as at December 31, 2023 and December 31, 2022, and the consolidated statements of loss, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2023 and December 31, 2022, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards.
Basis for Opinion
We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audits of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 (b) in the financial statements, which indicates that during the year ended December 31, 2023, the Company has note generated revenues and has incurred accumulated deficits. As stated in Note 1 (b), these events or conditions along with others stated in Note 1(b), indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the key audit matters to be communicated in our report.
Exploration and Evaluation Assets Impairment Indicator Assessment
Key Audit Matter Description
MNP LLP | |
2150 - 1055 West Hastings St, Vancouver BC, V6E 2E9 | T: 604.685.8408 F: 604.685.8594 |
The net book value of exploration and evaluation assets amounted to $7,261,908 (PY $7,291,096) as at December 31, 2023. At each reporting period, management assesses exploration and evaluation assets to determine whether there are any indicators of impairment. If any such indicators exist, the asset's recoverable amount is estimated. An impairment loss is recognized if the carrying amount of an asset or its cash generating unit exceeds its estimated recoverable amount. Management assesses deferred exploration and evaluation expenditures for impairment based on the following indicators: (i) the period for which the entity has the right to explore in the specific area has expired during the year or will expire in the near future; (ii) substantive expenditure on further exploration for an evaluation of mineral resources in the specific area is neither budgeted nor planned; (iii) sufficient data exists to determine that extracting the resources will not be technically feasible or commercially viable; and (iv) facts and circumstances suggest that the carrying amount exceeds the recoverable amount. No impairment indicators were identified by management as at December 31, 2023.
We considered this a key audit matter due to the significance of the exploration and evaluation assets and the judgments made by management in their assessment of indicators of impairment related to exploration and evaluation assets, and these have resulted in a high degree of subjectivity in performing audit procedures related to these judgments applied by management.
Refer to Note 2 and Note 6 exploration and evaluation assets.
Audit Response
We responded to this matter by performing procedures in relation to the impairment indicator assessment for exploration and evaluation assets. Our audit work in relation to this included, but was not restricted to, the following:
- Assessed the judgments made by management in determining the impairment indicators, which included the following:
- Obtained evidence to support the existence of the right to explore the area and the claim expiration by reference to public government registries;
- Evaluated budget approvals and board minutes to obtain evidence of continuing and planned exploration expenditures and included evaluations of the work completed in the current year; and
- Assessed whether there are any indications that extracting resources will not be technically feasible or commercially viable, or if other facts and circumstances exist that may suggest the carrying amount exceeds the recoverable amount, based on evidence obtained in other areas of the audit.
- Assessed the appropriateness of the related disclosures in Note 2 and Note 6 of the consolidated financial statements.
Other Information
Management is responsible for the other information. The other information comprises Management's Discussion and Analysis.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
2150 - 1055 West Hastings St, Vancouver, British Columbia, V6E 2E9 T: 604.685.8408 F: 604.685.8594 MNP.ca
In connection with our audits of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audits or otherwise appears to be materially misstated. We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
2150 - 1055 West Hastings St, Vancouver, British Columbia, V6E 2E9 T: 604.685.8408 F: 604.685.8594 MNP.ca
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits and significant audit findings, including any significant deficiencies in internal control that we identify during our audits.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor's report is Jenny Lee.
Vancouver, British Columbia | Chartered Professional Accountants |
April 25, 2024 |
2150 - 1055 West Hastings St, Vancouver, British Columbia, V6E 2E9 T: 604.685.8408 F: 604.685.8594 MNP.ca
Jayden Resources Inc.
Consolidated Statements of Loss
For the years ended December 31, 2023 and 2022 (Expressed in Canadian dollars)
Years Ended December 31,
Notes2023 2022
Expenses | |||||
Administrative expenses | 4 | $ | (585,979) | $ | (740,300) |
Operating loss for the year | (585,979) | (740,300) | |||
Other income (loss) | |||||
Interest income | 1,894 | 8,582 | |||
Gain on debt settlement | 8 | - | 300,000 | ||
Realized loss on disposal of marketable securities | 5 | (19,865) | - | ||
Unrealized loss on marketable securities | 5 | (15,385) | (225,000) | ||
Other income (loss) for the year | (33,356) | 83,582 | |||
Loss from continuing operations | $ | (619,335) | $ | (656,718) | |
Other loss | 9 | (544,000) | - | ||
Loss for the year | $ | (1,163,335) | $ | (656,718) | |
Loss per share | |||||
- Basic and diluted | $ | (0.02) | $ | (0.01) | |
Weighted average number of common shares outstanding | |||||
- Basic and diluted | 58,517,849 | 51,713,920 |
The accompanying notes are an integral part of these consolidated financial statements.
7
Jayden Resources Inc.
Consolidated Statements of Financial Position As at December 31, 2023 and 2022 (Expressed in Canadian dollars)
December 31, | December 31, | |
Notes | 2023 | 2022 |
$ | $ |
ASSETS | |||
Current assets | |||
Cash and cash equivalents | 392,502 | 271,180 | |
GST and QST receivables | 12,810 | 364,644 | |
Tax credit receivables | - | 899,835 | |
Prepaid expenses | 11,637 | 11,374 | |
Marketable securities | 5 | 40,000 | 135,000 |
456,949 | 1,682,033 | ||
Non-current assets | |||
Exploration and evaluation assets | 6 | 7,261,908 | 7,291,096 |
7,261,908 | 7,291,096 | ||
Total Assets | 7,718,857 | 8,973,129 | |
Liabilities and Shareholders' Equity | |||
Current liabilities | |||
Account payable and accrued liabilities | 8 | 250,085 | 341,022 |
Total Liabilities | 250,085 | 341,022 | |
Shareholders' Equity | |||
Share capital | 7 | 56,531,433 | 56,531,433 |
Contributed surlpus | 2,315,132 | 2,315,132 | |
Accumulated deficit | (51,377,793) | (50,214,458) | |
Total equity | 7,468,772 | 8,632,107 | |
Total Liabilities and Shareholders' Equity | 7,718,857 | 8,973,129 | |
(Nature of operations and going concern - Note 1) | |||
(Subsequent events - Note 14) |
Approved on Behalf of the Board
"Denise Lok" Director
Denise Lok
"Queenie Kuang" Director
Queenie Kuang
The accompanying notes are an integral part of these consolidated financial statements.
8
Jayden Resources Inc.
Consolidated Statements of Changes in Equity For the years ended December 31, 2023 and 2022 (Expressed in Canadian dollars, except per share values)
Number of | |||||
issued | Share | Contributed | Accumulated | ||
shares | capital | surplus | deficit | Total | |
$ | $ | $ | $ | ||
Balances, January 1, 2022 | 48,560,402 | 54,685,816 | 2,315,132 | (49,557,740) | 7,443,208 |
Shares issued for property acquisition (Note 7(a)) | 9,957,447 | 1,845,617 | - | - | 1,845,617 |
Loss for the year | - | - | - | (656,718) | (656,718) |
Balances, December 31, 2022 | 58,517,849 | 56,531,433 | 2,315,132 | (50,214,458) | 8,632,107 |
Balances, January 1, 2023 | 58,517,849 | 56,531,433 | 2,315,132 | (50,214,458) | 8,632,107 |
Loss for the year | - | - | - | (1,163,335) | (1,163,335) |
Balances, December 31, 2023 | 58,517,849 | 56,531,433 | 2,315,132 | (51,377,793) | 7,468,772 |
The accompanying notes are an integral part of these consolidated financial statements.
9
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Jayden Resources Inc. published this content on 21 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2024 20:57:21 UTC.