Northern Graphite : 2021 Q1 Financial Statements

Northern Graphite Corporation

Condensed Interim Financial Statements

For the Three Month Periods Ended March 31, 2021 and 2020

(expressed in Canadian dollars)

NOTICE

The Company's independent auditors have not performed a review of these condensed interim financial statements.

Northern Graphite Corporation

Unaudited Condensed Interim Statements of Financial Position

(expressed in Canadian dollars)

	As at	As at
	March 31,	December 31,
	2021	2020
	$	$
Assets
Current
Cash and cash equivalents	4,871,161	1,211,575
HST receivable	39,836	15,496
Prepaid expenses and deposits	105,953	89,185
Marketable securities (note 4)	609,500	182,708
	5,626,450	1,498,964
Marketable securities (note 4)	-	153,607
Reclamation deposit (note 12)	845,895	845,145
Property and equipment	93,246	101,120
Exploration and evaluation assets (note 5)	12,675,607	12,623,846
Total assets	19,241,198	15,222,682
Liabilities
Current
Accounts payable and accrued liabilities	172,025	207,739
Reclamation and close down provision (note 12)	347,650	345,925
Total liabilities	519,675	553,664
Shareholders' equity
Share capital (note 6)	28,482,620	25,098,662
Warrants (note 6)	1,563,619	945,813
Contributed surplus (note 6)	2,411,966	2,405,345
Accumulated deficit	(13,736,682)	(13,780,802)
Total shareholders' equity	18,721,523	14,669,018
Total liabilities and shareholders' equity	19,241,198	15,222,682

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

Approved by the Board of Directors and authorized for issue on May 25, 2021

(signed) Gregory Bowes	(signed) Donald Christie
Director	Director

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Northern Graphite Corporation

Unaudited Condensed Interim Statements of Income (Loss) and

Comprehensive Income (Loss)

(expressed in Canadian dollars)

	Three months ended
		March 31,
	2021	2020
	$	$
General and administrative expenses
Legal and audit	8,952	7,831
Office, management and director fees (note 10)	142,463	88,969
Promotion and investor relations	47,484	35,257
Regulatory and transfer agent	17,719	10,291
Share-based payments (notes 6 and 10)	6,621	-
Depreciation	7,874	8,769
	231,113	151,117
Loss from operations	(231,113)	(151,117)
Interest income	2,048	7,342
Gain on marketable securities (note 4)	273,185	-
Income (loss) and comprehensive income (loss)
for the period	44,120	(143,775)
Income (loss) per share - basic and diluted	0.00	(0.00)
Weighted average number of shares - basic and diluted	71,361,952	65,112,756

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

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Northern Graphite Corporation

Unaudited Condensed Interim Statements of Changes in Shareholders' Equity

(expressed in Canadian dollars)

	Number of			Contributed	Accumulated
	shares	Share capital	Warrants	surplus	deficit	Total
		$	$	$	$	$
Balance, December 31, 2020	65,112,756	25,098,662	945,813	2,362,599	(13,072,050)	15,335,024
Issuance of common shares and warrants (note 6)	10,688,000	1,816,890	1,175,750	-	-	2,992,640
Share issue costs	-	(198,876)	-	-	-	(198,876)
Exercise of warrants (note 6)	3,020,000	1,639,035	(431,035)	-	-	1,208,000
Expiry of warrants (note 6)	-	126,909	(126,909)	-	-	-
Share-based payment expense (note 6)	-	-	-	6,621	-	6,621
Income and comprehensive income for the period	-	-	-	-	44,120	44,120
Balance, March 31, 2021	78,820,756	28,482,620	1,563,619	2,411,966	(13,736,682)	18,721,523
Balance, December 31, 2019	65,112,756	25,098,662	945,813	2,362,599	(13,072,050)	15,335,024
Expiry of stock options (note 6)	-	-	-	(153,676)	153,676	-
Loss and comprehensive loss for the period	-	-	-	-	(143,775)	(143,775)
Balance, March 31, 2020	65,112,756	25,098,662	945,813	2,208,923	(13,062,149)	15,191,249

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

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Northern Graphite Corporation

Unaudited Condensed Interim Statements of Cash Flows

(expressed in Canadian dollars)

Three months ended

March 31,

	2021	2020
	$	$
Cash provided by (used in)
Operating activities
Income (loss) for the period	44,120	(143,775)
Items not affecting cash:
Accretion of asset retirement obligation (note 12)	975	(1,562)
Unrealized gain on marketable securities (note 4)	273,185	-
Depreciation	7,874	8,769
Share-based payments (note 6)	6,621	-
Change in non-cash working capital items:
HST receivable	(24,340)	6,396
Prepaid expenses and deposits	(16,768)	(41,606)
Accounts payable and accrued liabilities	(52,604)	(30,808)
Net cash used in operating activities	(307,307)	(202,586)
Investing activities
Exploration and evaluation costs (note 5)	(34,871)	(21,046)
Net cash used in investing activities	(34,871)	(21,046)
Financing activities
Issuance of common shares and warrants (note 6)	2,992,640	-
Share issue costs	(198,876)	-
Proceeds from exercise of warrants (note 6)	1,208,000	-
Net cash provided by financing activities	4,001,764	-
Net increase (decrease) in cash and cash equivalents	3,659,586	(223,632)
Cash and cash equivalents, beginning of period	1,211,575	1,384,798
Cash and cash equivalents, end of period	4,871,161	1,161,166

Supplemental cash flow information (note 8)

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

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