LQwD FinTech : Financial Statement | Period ended May 31, 2022

LQWD FINTECH CORP.

Condensed Consolidated Interim Financial Statements

First Quarter ended May 31, 2022

Unaudited

(Expressed in Canadian dollars)

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LQWD FINTECH CORP.

Condensed Consolidated Interim Statements of Financial Position

(Expressed in Canadian Dollars)

		May 31,		February 28,
		2022		2022
Assets
Current:
Cash and cash equivalents	$	962,854)	$	871,449)
Amounts receivable		35,293)		39,696)
Digital currencies (Note 8)		5,658,989)		8,295,599)
Prepaid expenses		21,273)		47,636)
		6,678,409)		9,254,380)
Non-Current:
Intangible assets (Note 5)		4,961,817)		5,649,733)
Goodwill		2,838,279)		2,838,279)
Property and equipment (Note 6)		159,498)		178,250)
Restricted cash		65,148)		65,135)
	$	14,703,151)	$	17,985,777)
Liabilities and Equity
Current:				)
Accounts payable and accrued liabilities	$	449,953)	$	400,775)
Current portion of lease liability		52,394)		51,992)
		502,347)		452,767)
Non-Current:
Long term portion of lease liability		65,982)		77,362)
		568,329)		530,129)
Shareholders' equity
Capital stock (Note 7(b))		55,853,279)		55,823,279)
Contributed surplus (Note 7(d))		8,225,131)		7,802,520)
Deficit		(49,943,588)		(46,170,151)
		14,134,822)		17,455,648)
	$	14,703,151)	$	17,985,777)

Nature of operations and going concern (Note 1)

Subsequent events (13)

See accompanying notes.

These financial statements are authorized for issue by the Board of Directors on August 2, 2022.

"Giuseppe (Pino) Perone"

…………………………………………………Director

Giuseppe (Pino) Perone

"Ashley Garnot"

…………………………………………………Director

Ashley Garnot

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LQWD FINTECH CORP.

Condensed Consolidated Interim Statements of Comprehensive Loss

(Expressed in Canadian Dollars)

For the three months ended May 31,		2022		2021
Revenue	$	4,878)	$	35,210)
General and administrative expenses
Amortization of intangible assets		687,916)		46,001)
Amortization of property and equipment		14,895)		194)
Audit and accounting		12,500)		5,000)
Bank charges		1,287)		1,260)
Consulting fees		118,816)		23,000)
Insurance		296)		-)
Legal		985)		174,436)
Marketing		98,225)		75,906)
Office and administration		13,302)		3,130)
Office rent		7,171)		548)
Platform administration		17,499)		26,856)
Research and development		111,704)		3,545)
Salaries and benefits		88,900)		27,605)
Share-based compensation		422,611)		55,264)
Shareholder relations		8,935)		4,375)
Transfer and filing fees		1,723)		67,578)
Travel and entertainment		2,067)		398)
		(1,608,832)		(515,096)
Other items
Foreign exchange		(19,083)		(15,698)
Interest and accretion income		428)		233)
Loss on revaluation (Note 8)		(2,146,971)		-)
Write-off of property and equipment (Note 6)		(3,857)		-)
		(2,169,483)		(15,465)
Net loss for the period		(3,773,437)		(495,351)
Other comprehensive income
Change in revaluation reserve (Note 8)		-)		(89,533)
Comprehensive loss for the period	$	(3,773,437)	$	(584,884)
Loss per share, basic and diluted	$	(0.04)	$	(0.02)
Weighted average number of common shares outstanding		97,709,329)		31,027,572)
See accompanying notes.

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LQWD FINTECH CORP.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Canadian Dollars)

For the three months ended May 31,		2022		2021
Operating activities
Net loss for the period	$	(3,773,437)	$	(495,351)
Items not involving cash:
Amortization of intangible assets		687,916)		46,001)
Amortization of property and equipment		14,895)		194)
Interest and accretion		(13)		(40)
Lease liability		(10,978)		-)
Loss on revaluation		2,146,971)		-)
Share-based compensation		422,611)		55,264)
Write-off property and equipment		3,857)		-)
		(508,178)		(393,932)
Changes non-cash working capital:
Amounts receivable		4,403)		7,573
Prepaid expenses		26,363)		(841)
Accounts payable and accrued liabilities		49,178)		(43,172)
		79,944)		(36,440)
Cash used in operating activities		(428,234)		(430,372)
Financing activities
Shares subscribed		-))		3,937,990)
Warrants exercised		30,000)		116,666)
Cash provided by financing activities		30,000)		4,054,656)
Investing activity
Sale of digital currencies		486,398)		-)
Cash provided by investing activity		486,398)		-)
Net inflow of cash and cash equivalents		91,405(		3,624,284(
Cash and cash equivalents, beginning of period		871,449)		1,836,827)
Cash and cash equivalents, end of period	$	962,854)	$	5,461,111)
Supplementary disclosures:
Interest received	$	415)	$	193)
Cash	$	945,712)	$	194,857)
Short-term deposits		17,142)		266,254)
Restricted cash		-)		5,000,000)
	$	962,854)	$	5,461,111)

See accompanying notes.

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LQWD FINTECH CORP.

Condensed Consolidated Interim Statements of Changes in Equity

(Expressed in Canadian Dollars)

	Common Shares
						Revaluation
					Shares		Reserve	Contributed
	Number		Amount	Subscribed		(Note 6)		Surplus		Deficit		Total
Balance, March 1, 2022	97,627,807	$	55,823,279)	$	-)	$	-)	$	7,802,520)	$	(46,170,151)	$	17,455,648)
Share-based payments	-		-)		-)		-)		422,611)		-)		422,611)
Net loss for year	-		-)		-)		-)		-)		(3,773,437)		(3,773,437)
Warrants exercised	150,000		30,000		-		-		-		-		30,000)
Balance, May 31, 2022	97,777,807	$	55,853,279	$	-)	$	-)	$	8,225,131	$	(49,943,588)	$	14,134,822)
Balance, March 1, 2021	30,683,189	$	23,005,991)	$	1,062,010)	$	92,083)	$	1,900,648)	$	(23,210,200)	$	2,850,532)
Share-based payments	-)		-		-		-)		55,264		-)		55,264(
Shares subscribed	-)		-		3,937,990		-)		-		-)		3,937,990)
Net loss for period	-)		-		-		-)		-		(495,351)		(495,351)
Revaluation of digital currency	-)		-		-		(89,533)		-		-)		(89,533)
Warrants exercised	583,332)		116,666		-		-)		-		-)		116,666)
Balance, May 31, 2021	31,266,521)	$	23,122,657	$	5,000,000	$	2,550)	$	1,955,912	$	(23,705,551)	$	6,375,568)

See accompanying notes.

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