Luxxfolio : Quarterly Report - Amended

LUXXFOLIO HOLDINGS INC.

Amended Interim Condensed Consolidated Financial Statements For the three and nine months ended May 31, 2022 and 2021 (Expressed in US Dollars)

(Unaudited)

Dated: August 11, 2022

NOTICE OF NO AUDITOR REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Under National Instrument 51‐102, Part 4, subsection 4.3(3)(a) continuous disclosure requirement, if any auditor has not performed a review of the interim condensed consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited interim condensed consolidated financial statements 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 interim condensed consolidated financial statements.

LUXXFOLIO HOLDINGS INC.

Interim Condensed Consolidated Statements of Financial Position (unaudited) (Expressed in US Dollars)

As at		May 31, 2022		August 31, 2021
Assets
Current assets
Cash	$	191,381	$	313,604
Accounts receivable and GST receivable		134,968		64,508
Prepaid expenses		2,515		248,288
Digital Assets - Held in Custody (note 5)		1,667,593		1,281,962
		1,996,457		1,908,362
Non‐current assets
Investment in private company		10,000		10,000
Deposits on equipment (note 6)		7,713,378		8,758,725
Plant and equipment - net (note 7)		14,519,242		3,229,102
Goodwill (note 11)		4,438,142		4,622,303
		26,680,762		16,620,130
Total assets	$	28,677,219	$	18,528,492
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities (note 8)	$	850,774	$	541,919
Deferred income		152,752		‐
Short‐term debt		11,970		‐
Current portion of the long‐term debt		7,436,784		4,215,043
		8,452,280		4,756,962
Non‐current liabilities
Long‐term debt (note 9)		4,948,976		4,742,497
		13,401,256		9,499,459
Shareholders' equity
Common shares (note 10)		19,336,719		8,763,996
Special warrants (note 10)		‐		2,187,866
Contributed surplus (note 10)		805,393		214,805
Warrant reserves (note 10)		1,361,998		1,477,963
Accumulated deficit		(6,228,147)		(3,626,177)
Accumulated other comprehensive income		‐		10,580
		15,275,963		9,029,033
Total liabilities and shareholders' equity	$	28,677,219	$	18,528,492

Going Concern - Note 2. The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Approved on behalf of the Board:
Signed: "Kelly Klatik"	Signed: "Brad Farquhar"
____________________________	______________________________
Kelly Klatik, Director	Brad Farquhar, Director

LUXXFOLIO HOLDINGS INC.

Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) (Expressed in US Dollars)

		For the three		For the three		For the nine		For the nine
		months ended		months ended		months ended		months ended
		May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Revenue
Bitcoin mining	$	2,746,473	$	‐	$	8,913,587	$	‐
Hosting revenue		152,752		‐		458,542		‐
Total revenues		2,899,225		‐		9,372,129		‐
Operating expenses
Advertising		‐		‐		27,454		‐
Consulting (note 8)		75,169		141,171		685,788		151,295
Depreciation (note 7)		1,869,693		‐		4,011,751		‐
Electricity		626,206		‐		1,537,422		‐
General and administration		125,201		152,747		555,869		160,072
Interest (note 9)		495,824		34,816		1,366,016		54,812
Insurance (note 8)		59,927		‐		119,577		‐
Compensation		269,487		‐		643,042		‐
Management fees (note 8)		33,381		60,000		132,240		64,500
Professional fees		20,517		1,009		318,588		5,445
Rent (note 8)		15,288		8,000		49,533		11,000
Supplies and maintenance		49,502		‐		201,892		‐
Total operating expenses		3,640,195		397,743		9,649,172		447,124
Other expenses
Share‐based payments (note 10)		249,789		186,228		925,547		206,464
Amortization of financing fees		30,902		3,375		88,496		6,749
Realized loss on digital assets		421,670		‐		661,950		‐
Unrealized loss on digital assets		738,660		‐		765,346		‐
Total other expenses		1,441,021		189,603		2,441,339		213,213
Net income (loss)	$	(2,181,991)	$	(587,346)	$	(2,718,382)	$	(660,337)
Basic and diluted net loss per share	$	(0.03)	$	(0.02)	$	(0.04)	$	(0.03)
Weighted average number of shares outstanding:
Basic and diluted		74,217,944		32,696,471		68,389,153		24,453,690

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

LUXXFOLIO HOLDINGS INC.

Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (unaudited)

(Expressed in US Dollars)

		Number of						Contri‐						Accumu
		common		Common		Special		buted		Warrant				‐lated
	Note	shares		shares		warrants		surplus		reserves		Deficit		OCI		Total
Balance, August 31, 2020		17,647,415	$	1,636,540	$	122,626	$	‐	$	51,894	$	(1,735,868)	$	693	$	75,885
Issuance of common shares		9,772,060		1,577,411		‐		‐		‐		‐		‐		1,577,411
Issuance of special warrants		‐		‐		65,561		‐		‐		‐		‐		65,561
Issuance of share purchase warrants		‐		‐		‐		‐		59,560		‐		‐		59,560
Share‐based compensation		‐		‐		‐		111,467		‐		‐		‐		111,467
Exercise of special warrants		5,000,000		189,995		(189,995)				‐		‐		‐		‐
Exercise of share purchase warrants		526,000		134,675		‐		‐		(51,296)		‐		‐		83,379
Expired share purchase warrants		‐		‐		‐		‐		(2,345)		2,345		‐		‐
Currency translation adjustment		‐		225,907		1,808		‐		1,747		(162,483)		‐		66,979
Net income (loss)		‐		‐		‐		‐		‐		(527,341)		‐		(527,341)
Balance, May 31, 2021		32,945,475		3,764,528	$	‐	$	111,467	$	59,560	$	(2,423,347)	$	693	$	1,512,901
Issuance of special warrants		‐		‐		2,187,866		‐		64,349		‐		‐		2,252,215
Issuance of units		470,000		126,655		‐		‐		3,725		‐		‐		130,380
Issuance of share purchase warrants		‐		‐		‐		‐		665,073		‐		‐		665,073
Finder's fees		‐		(40,787)		‐		‐		‐		‐		‐		(40,787)
Acquisition of WestBlock		16,000,000		5,073,299		‐		‐		685,258		‐		‐		5,758,557
Share‐based compensation		‐		‐		‐		103,338		‐		‐		‐		103,338
Currency translation adjustment		‐		(159,699)		‐		‐		(2)		97,911		(178,623)		(240,413)
Revaluation of cryptocurrencies		‐		‐		‐		‐		‐		‐		188,510		188,510
Net income (loss)		‐		‐		‐		‐		‐		(1,300,741)		‐		(1,300,741)
Balance, August 31, 2021		49,415,475	$	8,763,996	$	2,187,866	$	214,805	$	1,477,963	$	(3,626,177)	$	10,580	$	9,029,033
Issuance of units	10	13,600,000		6,824,023		‐		‐		265,965		‐		‐		7,089,988
Issuance of compensation options	10	‐		‐		‐		‐		311,373		‐		‐		311,373
Conversion of special warrants	10	8,118,912		2,187,866		(2,187,866)		‐		‐		‐		‐		‐
Exercise of share purchase warrants	10	2,583,554		1,416,754		‐		‐		(603,532)		‐		‐		813,222
Expired share purchase warrants	10	‐		‐		‐		‐		(89,676)		89,676		‐		‐
Asset purchase of Blackcloud	10	500,003		327,366		‐		‐		‐		‐		‐		327,366
Share‐based compensation	10	‐		‐		‐		590,504		‐		(22,360)		‐		568,144
Currency translation adjustment		‐		(183,286)		‐		84		(95)		49,096		(10,580)		(144,781)
Net income (loss)		‐		‐		‐		‐		‐		(2,718,382)		‐		(2,718,382)
Balance, May 31, 2022		74,217,944	$	19,336,719	$	‐	$	805,393	$	1,361,998	$	(6,228,147)	$	‐	$	15,275,963

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