LENDIFIED HOLDINGS INC. Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)
Condensed Interim Consolidated Financial Statements
For the three and nine months ended September 30, 2020 and 2019
(Unaudited)
Notice of No Auditors' Review of Condensed Interim Consolidated Financial Statements
The accompanying unaudited condensed interim consolidated financial statements of Lendified Holdings Inc. (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 condensed interim consolidated financial statements in accordance with standards established by Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)
Condensed Interim Consolidated Statements of Financial Position
(Unaudited) (Stated in Canadian Dollars)
As at | September 30, | December 31, | |
Note | 2020 | 2019 | |
Assets | |||
Current | |||
Cash | $1,135,774 | $2,956,595 | |
Cash in-trust | 16 | 548,404 | - |
Current portion restricted cash | 6 (iii)(iv) | 865,109 | 1,532,787 |
Current portion of loans receivable | 2 | 6,596,508 | 11,174,659 |
Accounts receivable | 35,809 | 544,416 | |
Prepaid expenses and deposits | 328,565 | 299,594 | |
Due from shareholder | 15 | 124,582 | 121,619 |
Assets held for sale | 5 | 1,273,033 | - |
Total current assets | 10,907,784 | 16,629,670 | |
Loans receivable | 2 | 2,342,715 | 6,993,961 |
Restricted cash | 6 (iii)(iv) | 198,523 | 561,545 |
Property and equipment | 1,573 | 198,824 | |
Intangible assets | 66,907 | 91,656 | |
Right-of-use assets | 3 | - | 309,678 |
Long term investment | 200,837 | 200,837 | |
Goodwill | - | 326,194 | |
Total assets | $13,718,339 | $25,312,365 | |
Liabilities | |||
Current | |||
Accounts payable and accrued liabilities | 15 | $4,415,622 | $6,134,772 |
Current portion of loans payable | 6 | 18,845,886 | 32,039,787 |
Current portion of lease liabilities | 3 | - | 156,594 |
Puttable Class B shares | 8 | - | 2,037,401 |
Convertible shareholder debt | 7 | 4,000,000 | 7,462,600 |
Deferred revenue | 3,783 | 11,250 | |
Liabilities directly related to the assets held for | 1,605,575 | - | |
sale | 5 | ||
Total current liabilities | 28,870,866 | 47,842,404 | |
Lease liabilities | 3 | - | 325,356 |
Loans payable | 6 | 344,736 | 1,079,451 |
Derivative Liability | 6 | 24,086 | 2,851,286 |
29,239,688 | 52,098,497 | ||
Shareholders' deficiency | |||
Share capital | 4 & 9 | 26,473,865 | 9,449,920 |
Contributed surplus | 6,503,292 | 4,518,555 | |
Deficit | (48,498,506) | (40,754,607) | |
Total shareholders' deficiency | (15,521,349) | (26,786,132) | |
Total liabilities and shareholders' deficiency | $13,718,339 | $25,312,365 | |
Going concern (Note 1) | |||
Subsequent events (Note 19) |
Approved by the Board on November 25, 2020: | |||
Peter Ostapchuk(Signed) | Guy Charette (Signed) | ||
Director, Chair of Audit Committee | Director, Chair of Board of Directors | ||
2 |
Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited) (Stated in Canadian Dollars)
Three Months | Three Months | Nine Months | Nine Months | |
Ended | Ended | Ended | Ended | |
September 30, | September 30, | September 30, | September 30, | |
Note | 2020 | 2019 | 2020 | 2019 |
Finance income
Interest income | |
Financing related expenses | |
Interest and financing costs | 11 |
Provision for credit losses | 2 |
Total financing related expenses | |
Financing margin | |
Other income | |
Operating expenses | |
Advertising and promotion | |
Office and general | |
Professional fees | 15 |
Interest and financing costs for corporate operations | 11 |
Salaries and benefits | 15 |
Technology and development | |
Fair value adjustment on financial instruments | |
Fair value adjustment on restricted stock units | 10 |
Amortization and depreciation | |
Total operating expenses | |
Loss from continued operations | |
Net loss from discontinued operations | 5 |
Listing expenses | 4 |
Non-cash loss on completion of reverse takeover | 4 |
Loss on extinguishment of bridge loan warrants | 6 |
Net loss and comprehensive loss for the period | $ |
Weighted average number of | |
shares outstanding | |
Basic | |
Diluted | |
Basic and diluted loss per share | |
Continuing operations | $ |
Discontinued operations | $ |
$ 1,145,811 | $ 1,711,416 | $ 4,399,882 | $ 4,807,578 | |||
393,628 | 872,113 | 1,630,944 | 2,362,070 | |||
(595,488) | 2,223,203 | 2,481,123 | 3,449,475 | |||
(201,860) | 3,095,316 | 4,112,067 | 5,811,545 | |||
1,347,671 | (1,383,900) | 287,815 | (1,003,967) | |||
- | 1,204 | 20,222 | 3,456 | |||
13,135 | 122,535 | 123,611 | 336,872 | |||
9,135 | 122,984 | 192,950 | 288,542 | |||
714,146 | 80,346 | 1,506,117 | 307,960 | |||
364,138 | 1,340,315 | 2,326,201 | 2,979,536 | |||
328,422 | 1,153,808 | 1,352,133 | 2,115,546 | |||
63,259 | 215,767 | 304,376 | 348,707 | |||
68,487 | - | (1,210,874) | - | |||
- | 229,877 | - | 229,877 | |||
8,310 | 105,803 | 64,848 | 224,956 | |||
1,569,032 | 3,371,435 | 4,659,362 | 6,831,996 | |||
(221,361) | (4,754,131) | (4,351,325) | (7,832,507) | |||
(285,262) | (952,124) | (1,185,975) | (2,994,730) | |||
- | - | (565,131) | - | |||
- | - | (964,255) | - | |||
- | - | (677,213) | - | |||
(506,623) | $ | (5,706,255) | $ | (7,743,899) | $ | (10,827,237) |
118,017,142 | 29,565,464 | 79,568,831 | 29,334,629 | |||
118,017,142 | 29,565,464 | 79,568,831 | 29,334,629 | |||
(0.00) | $ | (0.16) | $ | (0.08) | $ | (0.27) |
(0.00) | $ | (0.03) | $ | (0.01) | $ | (0.10) |
3
Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)
Condensed Interim Consolidated Statements of Changes in Shareholders' Deficiency
(Unaudited) (Stated in Canadian Dollars)
Common | Class A | Class B | Class C | Contributed Subscription | Deficit | Total | |||||||
Shares | Shares | Shares | Shares | Surplus | Receipts | ||||||||
December 31, 2018 | $ | - | $ | - | $ | 3,207,685 | $ | 5,040,045 | $ 1,764,856 | $ | - | $ (25,855,979) | $ (15,843,393) |
Shares issued | - | - | 1,350,100 | - | - | - | - | 1,350,100 | |||||
Share issuance cost | - | - | (271,200) | - | (9,390) | - | - | (280,590) | |||||
Share-based payments (options) | - | - | - | - | 375,746 | - | - | 375,746 | |||||
Modification of RSUs | - | - | 1,198,272 | - | - | 1,198,272 | |||||||
Net loss and comprehensive loss for the period | - | - | - | - | - | - | (10,827,237) | (10,827,237) | |||||
September 30, 2019 | $ | - | $ | - | $ | 4,286,585 | $ | 5,040,045 | $ 3,329,484 | $ | - | $ (36,683,216) | $ (24,027,102) |
December 31, 2019 | $ | - | $ | - | $ | 4,409,875 | $ | 5,040,045 | $ 4,518,555 | $ | - | $ (40,754,607) | $ (26,786,132) |
Exchange of shares | - | 10,462,520 | (4,409,875) | (5,040,045) | - | - | - | 1,012,600 | |||||
Conversion of convertible debenture (Note 9 (iv)) | - | 11,980,323 | - | - | - | - | - | 11,980,323 | |||||
Transfer of contributed suplus on conversion of | - | 204,674 | - | - | (204,674) | - | - | - | |||||
convertible debenture | |||||||||||||
Shares exchanged under Qualifying Transaction | 22,597,517 | (22,597,517) | - | - | - | - | - | - | |||||
(Note 9(i)(ii)(iii)) | |||||||||||||
Shares and warrants deemed issued related to | 1,767,072 | - | - | - | 123,598 | - | - | 1,890,670 | |||||
reverse takeover transaction (Note 4) | |||||||||||||
Private placement (Note 4 & 9) | 2,508,000 | - | - | - | 492,000 | - | - | 3,000,000 | |||||
Private placement (Note 9(ix)) | 689,646 | 266,425 | 956,071 | ||||||||||
Broker shares issued | 768,413 | - | - | - | - | - | - | 768,413 | |||||
Share issuance cost (Note 9(vii) and 10 ) | (1,881,782) | (50,000) | - | - | 89,934 | - | - | (1,841,849) | |||||
Share-based payments (options) | - | - | - | - | (746) | - | - | (746) | |||||
Equity component of warrants (Note 6(i)) | - | - | - | - | 1,218,200 | - | - | 1,218,200 | |||||
Subscription receipts | - | - | - | - | - | 25,000 | - | 25,000 | |||||
Net loss and comprehensive loss for the period | - | - | - | - | - | - | (7,743,899) | (7,743,899) | |||||
September 30, 2020 | $ | 26,448,866 | $ | - | $ | - | $ | - | $ 6,503,292 | $ | 25,000 | $ (48,498,506) | $ (15,521,349) |
4
Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.)
Condensed Interim Consolidated Statements of Cash Flows (Unaudited)
(Stated in Canadian Dollars)
September 30, | September 30, | |||
Note | 2020 | 2019 | ||
Cash flows from operating activities | ||||
Net loss and comprehensive loss for the period from continuing | $ | (6,557,924) | $ (7,832,507) | |
operations | ||||
Adjustments to reconcile net loss to net cash provided by operating | ||||
activities: | ||||
Amortization and depreciation | 64,848 | 224,956 | ||
Share-based payments | (746) | 375,746 | ||
Provision for credit losses | 2 | 2,481,123 | 3,449,475 | |
Fair value adjustment on RSUs | - | 229,877 | ||
Fair value adjustment on derivative liabilities | (1,210,874) | - | ||
Loss on extinguishment of bridge loan warrants | 677,213 | - | ||
Financing fees paid | (102,026) | (689,777) | ||
Amortization of financing fees | 178,710 | 697,185 | ||
Non-cash loss on completion of reverse takeover | 4 | 964,255 | - | |
Accretion on convertible shareholder debt | 603,945 | 258,965 | ||
Changes in non-cash working capital balances: | ||||
Restricted cash | 6 | 1,030,700 | 466,085 | |
Cash in-trust | (548,404) | - | ||
Loans receivable | 2 | 6,748,274 | (5,664,798) | |
Accounts receivable | (27,716) | (13,668) | ||
Prepaid expenses and deposits | (101,320) | 32,525 | ||
Accounts payables and accrued liabilities | 3,036,603 | 1,593,639 | ||
Loans payable | 6 | (11,666,953) | 10,482,006 | |
Deferred revenue | 3,783 | (55,000) | ||
Cashflows from operating activities - continuing operations | (4,426,509) | 3,554,709 | ||
Cashflows from discontinued operations | (1,156,090) | (2,833,650) | ||
Net cash (used) in operating activities | (5,582,599) | 721,059 | ||
Cash flows from investing activities | ||||
Purchase of property and equipment | - | (39,464) | ||
Repayment from (advances to) shareholder | (2,963) | (2,963) | ||
Cashflows from investing activities - continuing operations | (2,963) | (42,427) | ||
Cashflows from discontinued operations | (7,000) | (7,000) | ||
Net cash (used) in investing activities | (9,963) | (49,427) | ||
Cash flows from financing activities | ||||
Proceeds from issuance of share capital, net of issuance costs | 4 & 9 | 2,957,636 | 1,350,100 | |
Cash obtained from reverse takeover transaction | 926,415 | - | ||
Principal repaid on lease liabilities | 3 | (43,970) | (56,310) | |
Issuance of derivative liabilities | 6 | 237,499 | - | |
Cashflows from financing activities - continuing operations | 4,077,580 | 1,293,790 | ||
Cashflows from discontinued operations | (47,374) | (39,677) | ||
Net cash (used) in financing activities | 4,030,206 | 1,254,113 | ||
Increase (decrease) in cash during the period | (1,562,356) | 1,925,745 | ||
Cash, beginning of year | 2,956,595 | 1,995,690 | ||
Cash, end of the period - assets held for sale | 258,466 | 171,463 | ||
Cash, end of period | 1,135,774 | 3,749,972 | ||
Supplementary cash flow information (Note 17) |
5
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Lendified Holdings Inc. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 11:25:04 UTC.
