McCoy Global : 2023 First Quarter Financial Statements

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

March 31, 2023

(unaudited)

Notice to Reader:

As required by National Instrument 51-102, Part 4, subsection 4.3(3)(a), readers are advised that the Company's

independent auditors have not performed a review of the March 31, 2022 condensed consolidated interim financial

statements.

Q1 2023

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(Stated in thousands of Canadian dollars) (unaudited)

As at	Note	March 31, 2023	December 31, 2022
		$	$
Assets
Current assets
Cash and cash equivalents		19,087	21,469
Restricted cash	7b	846	846
Trade and other receivables		8,273	12,976
Inventories	4	23,479	22,029
Prepaid expenses and deposits			1,139
	1,016
		52,701	58,459
Other receivables		39	39
Deferred tax assets		1,203	1,082
Property, plant and equipment	5	7,351	7,335
Intangible assets	6	6,748	7,175
Goodwill		3,700	3,703
Total assets		71,742	77,793
Liabilities
Current liabilities
Trade and other payables		8,811	10,862
Income taxes payable		318	94
Customer deposits		4,520	4,572
Provisions		523	493
Current lease liabilities		1,140	1,113
Borrowings	7	-	2,265
		15,312	19,399
Lease liabilities			4,428
	4,113
Borrowings	7	-	2,252
Total liabilities		19,425	26,079
Shareholders' equity
Share capital		60,265	60,135
Contributed surplus		5,710	5,758
Accumulated other comprehensive income		9,870	9,877
Accumulated deficit		(23,528)	(24,056)
Total shareholders' equity		52,317	51,714
Total liabilities and shareholders' equity		71,742	77,793

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

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Q1 2023

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME

(LOSS)

(Stated in thousands of Canadian dollars, except per share amounts) (unaudited)

For the three months ended March 31		2023	2022
		$	$
Revenue		16,864	8,891
Cost of sales		12,036	6,199
Gross profit		4,828	2,692
General and administration		2,336	1,595
Sales and marketing		461	352
Product development and support		903	596
Finance charges, net	7	355	176
Other losses (gains), net		44	(201)
		4,099	2,518
Earnings before income taxes		729	174
Income tax expense (recovery)
Current		325	-
Deferred			-
	(124)
		201	-
Net earnings		528	174
Other comprehensive loss
Translation loss from foreign operations		(7)	(570)
Comprehensive income (loss)		521	(396)
Net earnings per share
Basic from net earnings		0.02	0.01
Diluted from net earnings		0.02	0.01

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

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Q1 2023

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(Stated in thousands of Canadian dollars, except per share amounts) (unaudited)

	Issued capital
					Accumulated
					other
	Number of		Contributed		comprehensive		Accumulated
	shares	Share capital	surplus		income		deficit	Total equity
	#	$	$	$	$	$
January 1, 2022	28,224,989	59,993	5,682	7,154	(32,819)	40,010
Net earnings	-	-	-	-	174	174
Translation loss on
foreign operations	-	-	-	(570)	-	(570)
Employee share-based
compensation	-	-	1	-	-	1
Issuance of common shares
under stock option plan	20,000	22	(9)	-	-	13
Issuance of common shares
under restricted share plan	7,500	5	-	-	-	5
March 31, 2022	28,252,489	60,020	5,674	6,584	(32,645)	39,633
January 1, 2023	28,391,789	60,135	5,758	9,877		(24,056)	51,714
Net earnings	-	-	-	-		528	528
Translation loss on
foreign operations	-	-	-	(7)		-	(7)
Employee share-based
compensation	-	-	4	-		-	4
Issuance of common shares
under stock option plan	120,000	130	(52)	-		-	78
March 31, 2023	28,511,789	60,265	5,710	9,870		(23,528)	52,317

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

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Q1 2023

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(Stated in thousands of Canadian dollars) (unaudited)

For the three months ended March 31		2023	2022
Cash generated from (used in)		$	$
Operating activities
Net earnings		528	174
Adjustments for:
Depreciation of property, plant and equipment		450	596
Amortization of intangible assets	6	420	200
Finance charges, net		355	176
Share-based compensation expense		427	254
Income tax expense		201	-
Changes in non-cash working capital balances	8	998	(1,530)
Finance costs paid		(393)	(165)
Income taxes paid		(98)	-
Changes in restructuring and facility remediation provisions		(7)	(9)
Gain on disposal of property, plant and equipment		-	(269)
Net cash generated from (used in) operating activities		2,881	(573)
Investing activities
Purchases of property, plant and equipment	5	(471)	(259)
Proceeds from sale of property, plant and equipment		-	351
Additions to intangible assets	6	-	(358)
Net cash used in investing activities		(471)	(266)
Financing activities
Repayments of borrowings	7	(4,553)	-
Principal elements of lease payments		(284)	(105)
Proceeds from issuance of common shares under stock option plan		78	13
Proceeds from issuance of common shares under restricted share plan		-	5
Changes in restricted cash	7	-	110
Net cash (used in) generated from financing activities		(4,759)	23
Effect of exchange rate changes on cash and cash equivalents		(33)	(143)
Decrease in cash and cash equivalents		(2,382)	(959)
Cash and cash equivalents - beginning of the period		21,469	11,139
Cash and cash equivalents - end of the period		19,087	10,180

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

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