Nubeva Technologies : Annual Financial Statements - Year Ended April 30, 2020

Nubeva Technologies Ltd.

Consolidated Financial Statements

For the Years Ended April 30, 2020 and 2019

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of Nubeva Technologies Ltd.

Opinion

We have audited the consolidated financial statements of Nubeva Technologies Ltd. (the "Company"), which comprise the consolidated statements of financial position as at April 30, 2020 and 2019, and the consolidated statements of comprehensive loss, changes in shareholders' equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the "financial statements").

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at April 30, 2020 and 2019, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 to the financial statements, which describes events or conditions that indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other Information

Management is responsible for the other information. The other information comprises the information included in Management's Discussion and Analysis.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
  Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the
  Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor's report is Barry Hartley.

DALE MATHESON CARR-HILTON LABONTE LLP

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, BC

August 18, 2020

Nubeva Technologies Ltd.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at April 30

(Expressed in United States Dollars)

			2020		2019
Assets
Current assets:
Cash and money market instruments (note 6)	$	1,873,375	$	4,776,664
Accounts receivable (note 7)			44,389		54,743
Tax credit receivable (notes 3 and 8)			242,858		513,261
Digital currency (note 9)			28,354		17,522
Prepaid expenses and deposits (note 10)			96,000		135,821
Total current assets			2,284,976		5,498,011
Total Assets		$	2,284,976	$	5,498,011
Liabilities
Current liabilities:
Accounts payable and accrued liabilities (notes 11 and 12)	$	603,545	$	536,759
Current portion of term loans payable (note 13)		234,228		-
Total current liabilities			837,773		536,759
Term loans payable (note 13)			102,413		-
Total Liabilities			940,186		536,759
Shareholders' Equity
Common share capital (note 14)			13,730,668		13,597,652
Reserves (note 14)			704,628		628,841
Deficit			(12,960,121)		(9,176,892)
Accumulated other comprehensive loss			(130,385)		(88,349)
Total Equity			1,344,790		4,961,252
Total Liabilities and Shareholders' Equity		$	2,284,976	$	5,498,011
Subsequent events - note 22
Approved by the directors:
"Randy Chou"	"Greig Bannister"

The accompanying notes are an integral part of these consolidated financial statements 3

Nubeva Technologies Ltd.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

For the Years Ended April 30,

(Expressed in United States Dollars)

		2020		2019
Revenue (note 17)	$	157,710	$	846,378
Operating expenses:
General and administrative (notes 12 and 16)		756,014		855,726
Research and development (notes 12 and 16)		1,635,613		1,042,891
Sales and marketing (notes 12 and 16)		1,426,744		1,235,233
Share-based compensation (notes 12 and 14)		207,429		443,235
Total expenses		4,025,800		3,577,085
Other Items
Interest income		52,628		51,691
Fair value gain (loss) on digital currencies (note 19)		10,832		(1,323,336)
Foreign exchange gain (loss)		(23,738)		21,481
Bad debt		-		(77,090)
Government assistance		29,411		-
Other income		15,446		-
Net loss from continuing operations		(3,783,511)		(4,057,961)
Loss from discontinued operations (note 18)		-		(356,619)
Gain on wind up of discontinued operations (note 18)		-		881,801
Net loss	$	(3,783,511)	$	(3,532,779)
Other comprehensive loss, items that will be recycled through profit
and loss
Foreign currency translation adjustment		(42,036)		(49,877)
Total comprehensive loss	$	(3,825,547)	$	(3,582,656)
Earnings per share - basic and diluted, discontinued operations	$	(0.00)	$	0.01
Loss per share - basic and diluted, continuing operations	$	(0.07)	$	(0.07)
Weighted average number of common shares outstanding		55,895,594		54,576,127

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

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