Condensed Interim Financial Statements
For the Three and Six Months Ended June 30, 2022 and 2021
Unaudited
Presented in Canadian Dollars
August 12, 2022
MANAGEMENT'S RESPONSIBILITY FOR THE CONDENSED INTERIM FINANCIAL STATEMENTS
The accompanying unaudited condensed interim financial statements of Nighthawk Gold Corp. ("Nighthawk") are the responsibility of the Board of Directors and executive management. The unaudited condensed interim financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. These unaudited condensed interim financial statements do not include all of the disclosures required for annual financial statements and therefore should be read in conjunction with Nighthawk's audited annual consolidated financial statements and notes thereto for the year ended December 31, 2021. These unaudited condensed interim financial statements follow the same significant accounting policies and methods of application as those included in Nighthawk's most recent audited annual consolidated financial statements, except as described in note 3. Management acknowledges responsibility for the preparation and presentation of the financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to Nighthawk's circumstances. In the opinion of management, the unaudited condensed interim financial statements have been prepared within acceptable limits of materiality and are in accordance with International Accounting Standard 34, Interim Financial Reporting using accounting policies consistent with IFRS appropriate in the circumstances.
Management has established processes, which are in place to provide it sufficient knowledge to support management representations that it has exercised reasonable diligence that (i) the unaudited condensed interim financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the unaudited condensed interim financial statements and (ii) the unaudited condensed interim financial statements fairly present in all material respects the financial condition, results of operations and cash flows of Nighthawk, as of the date of, and for the period presented by the unaudited condensed interim financial statements.
The Board of Directors is responsible for reviewing and approving the financial statements and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process, the financial statements and the auditors' report. The Audit Committee also reviews Nighthawk's Management's Discussion and Analysis to ensure that the financial information reported therein is consistent with the information presented in the financial statements. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the financial statements for issuance to the shareholders.
Management recognizes its responsibility for conducting Nighthawk's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.
(Signed) "Keyvan Salehi"
Keyvan Salehi
President & Chief Executive Officer
(Signed) "Michael Leskovec"
Michael Leskovec
Chief Financial Officer
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NIGHTHAWK GOLD CORP.
CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
Presented in Canadian Dollars
June 30, | December 31, | |||
As at | 2022 | 2021 | ||
(Unaudited) | (Audited) | |||
ASSETS | ||||
Current Assets | $ | 31,561,144 | ||
Cash and cash equivalents | $ | 13,827,773 | ||
Amounts receivable | 834,790 | 227,784 | ||
Prepaid expenses and supplies | 1,513,309 | 1,182,964 | ||
33,909,243 | 15,238,521 | |||
Non-current Assets | 4,749,566 | |||
Restricted cash (note 5) | 4,749,566 | |||
Property, plant and equipment (note 6) | 107,107 | - | ||
Exploration and evaluation assets (note 7) | 12,713,519 | 12,306,231 | ||
17,570,192 | 17,055,797 | |||
$ | 51,479,435 | $ | 32,294,318 | |
LIABILITIES | ||||
Current Liabilities | $ | 4,404,966 | ||
Accounts payable and accrued liabilities | $ | 1,012,485 | ||
Non-current Liabilities | 5,145,931 | |||
Flow-through share premium liability | 1,512,854 | |||
Provision for service obligation (note 8) | 3,012,314 | 3,012,314 | ||
Reclamation provision (note 9) | 910,329 | 910,329 | ||
9,068,574 | 5,435,497 | |||
SHAREHOLDERS' EQUITY | 155,056,071 | |||
Share capital (note 10(a)) | 133,839,348 | |||
Warrant reserve (note 10(b)) | 6,119,425 | 4,002,500 | ||
Share-based payment reserve (note 10(c)) | 21,247,616 | 20,834,490 | ||
Accumulated deficit | (144,417,217) | (132,830,002) | ||
38,005,895 | 25,846,336 | |||
$ | 51,479,435 | $ | 32,294,318 |
The accompanying notes are an integral part of the condensed interim financial statements
On behalf of the Board: | ||||
(Signed) "Morris Prychidny" | (Signed) "Brian Howlett" | |||
Director | Director |
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NIGHTHAWK GOLD CORP.
CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
Presented in Canadian Dollars
Unaudited
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Operating Expenses | ||||||||
General and Administrative Expenses | $ | 700,634 | $ | 1,154,530 | ||||
Salaries, director and consulting fees (note 12) | $ | 363,375 | $ | 734,654 | ||||
Shareholder communication and marketing | 81,407 | 65,809 | 233,750 | 158,392 | ||||
Professional fees | 107,342 | 36,761 | 176,263 | 89,888 | ||||
Regulatory | 87,295 | 72,797 | 170,862 | 132,095 | ||||
Office and administration | 81,149 | 83,884 | 156,545 | 145,266 | ||||
Travel | 59,742 | 90 | 106,381 | 669 | ||||
Stock-based compensation (note 10(c)) | 83,615 | 724,956 | 518,842 | 971,923 | ||||
1,201,184 | 1,347,672 | 2,517,173 | 2,232,887 | |||||
Exploration and Evaluation Expenses (note 7) | 9,083,626 | 10,928,203 | 11,284,191 | 13,955,882 | ||||
Operating Loss | 10,284,810 | 12,275,875 | 13,801,364 | 16,188,769 | ||||
Other Income | 1,652,486 | 2,112,209 | ||||||
Flow-through share premium | 2,613,807 | 3,215,083 | ||||||
Interest income | 48,096 | 12,619 | 57,741 | 23,265 | ||||
Other income | 13,128 | - | 22,636 | - | ||||
Gain on debt settlement (note 7) | - | - | 21,563 | 26,000 | ||||
Total Other Income | 1,713,710 | 2,626,426 | 2,214,149 | 3,264,348 | ||||
Net Loss and Comprehensive Loss | $ | (8,571,100) | $ | (9,649,449) | $ | (11,587,215) | $ | (12,924,421) |
Net Loss Per Share (note 11): | ||||||||
Basic and Fully Diluted | $ | (0.08) | $ | (0.16) | $ | (0.12) | $ | (0.23) |
The accompanying notes are an integral part of the condensed interim financial statements
3
NIGHTHAWK GOLD CORP.
CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Presented in Canadian Dollars
Unaudited
Share-based | Accumulated | ||||||||
Share capital | Warrant reserve | payment reserve | deficit | Total equity | |||||
Balance at December 31, 2020 | $ | 104,003,121 | $ | 516,712 | $ | 18,567,340 | $ (103,954,066) | $ | 19,133,107 |
Issuance of shares on April 8, 2021, net of cash share issuance | |||||||||
costs of $745,962 (note 10(a)) | 10,200,538 | - | - | - | 10,200,538 | ||||
Flow-through share premium | (2,148,100) | - | - | - | (2,148,100) | ||||
Fair value of warrants issued | (814,185) | 814,185 | - | - | - | ||||
Issuance of common shares for Kim and Cass Option (note 7) | 374,000 | - | - | - | 374,000 | ||||
Exercise of share units | 69,000 | - | (69,000) | - | - | ||||
Stock-based compensation (note 10(c)) | - | - | 971,923 | - | 971,923 | ||||
Net loss for the period | - | - | - | (12,924,421) | (12,924,421) | ||||
Balance at June 30, 2021 | $ | 111,684,374 | $ | 1,330,897 | $ | 19,470,263 | $ (116,878,487) | $ | 15,607,047 |
Issuance of shares on July 7, 2021, net of cash share issue | |||||||||
costs of $2,010,680 (note 10(a)) | 24,994,503 | - | - | - | 24,994,503 | ||||
Issuance of shares on December 9, 2021, net of cash share | |||||||||
issue costs of $395,724 (note 10(a)) | 5,234,276 | - | - | - | 5,234,276 | ||||
Flow-through share premium | (5,039,240) | - | - | - | (5,039,240) | ||||
Fair value of warrants issued | (3,188,315) | 3,188,315 | - | - | - | ||||
Exercise of share units | 153,750 | - | (153,750) | - | - | ||||
Expiry of warrants | - | (516,712) | 516,712 | - | - | ||||
Stock-based compensation (note 10(c)) | - | - | 975,302 | - | 975,302 | ||||
Stock-based payment for services | - | - | 25,963 | - | 25,963 | ||||
Net loss for the period | - | - | - | (15,951,515) | (15,951,515) | ||||
Balance at December 31, 2021 | $ | 133,839,348 | $ | 4,002,500 | $ | 20,834,490 | $ (132,830,002) | $ | 25,846,336 |
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Nighthawk Gold Corp. published this content on 13 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2022 08:52:01 UTC.