ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Condensed consolidated interim Statements of Financial Position
(Unaudited - expressed in Canadian Dollars)
|
Notes
|
September 30,
2021
$
|
December 31,
2020
$
| ||||||||||
ASSETS
| ||||||||||||
Current assets
| ||||||||||||
Cash
|
166,258
|
255,668
| ||||||||||
Accounts receivable
|
4 |
354,010
|
363,653
| |||||||||
Prepaid expenses
|
223,323
|
34,344
| ||||||||||
Loan receivable
|
5 |
-
|
1,874
| |||||||||
743,591
|
655,539
| |||||||||||
Customer contract | 3,916,504 | - | ||||||||||
Vehicles and Right-of-use assets
|
6 |
756,115
|
343,699
| |||||||||
Total assets
|
5,416,210
|
999,238
| ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
| ||||||||||||
Current liabilities
| ||||||||||||
Accounts payable and accrued liabilities
|
8 |
947,541
|
1,053,012
| |||||||||
Purchase obligation | 1,476,216 | - | ||||||||||
Convertible Note
|
11 |
1,954,099
|
766,070
| |||||||||
Derivative liability
|
11 |
139,426
|
794,631
| |||||||||
Sales tax payable
|
438,827
|
300,903
| ||||||||||
Short-term loan payable
|
66,306
|
28,051
| ||||||||||
Lease obligations - current
|
10 |
201,785
|
92,736
| |||||||||
5,224,200
|
3,035,403
| |||||||||||
Lease obligations
|
10 |
437,256
|
120,167
| |||||||||
Total liabilities
|
5,661,456
|
3,155,570
| ||||||||||
SHAREHOLDERS' (DEFICIT) EQUITY
| ||||||||||||
Share capital
|
7 |
17,112,987
|
11,408,737
| |||||||||
Contributed surplus
|
3,620,300
|
3,363,593
| ||||||||||
Accumulated other comprehensive income | (20,416 | ) | - | |||||||||
Deficit
|
(20,958,117
|
)
|
(16,928,662
|
)
| ||||||||
Total shareholders' (deficit) equity
|
(245,246
|
)
|
(2,156,332
|
)
| ||||||||
Total liabilities and shareholders' equity
|
5,416,210
|
999,238
|
"Rich Wheeless" Director |
"Brian Storseth" Director
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Condensed consolidated interim Statements of Loss and Comprehensive Loss
For the Three and Nine Months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
Three months Ended
September 30,
|
Nine months Ended
September 30,
| |||||||||||||||||||
Notes
|
2021
$
|
2020
$
|
2021
$
|
2020
$
| ||||||||||||||||
SALES
|
4 |
1,736,770
|
1,466,528
|
4,247,242
|
4,012,441
| |||||||||||||||
COST OF SALES
|
12
|
(1,528,059
|
)
|
(1,427,432
|
)
|
(3,866,936
|
)
|
(3,910,809
|
)
| |||||||||||
GROSS PROFIT
|
208,711
|
39,096
|
380,306
|
101,632
| ||||||||||||||||
EXPENSES
| ||||||||||||||||||||
Consulting fees
|
8 |
35,356
|
39,295
|
91,067
|
446,372
| |||||||||||||||
Marketing and promotion
|
317
|
19,655
|
101,534
|
60,850
| ||||||||||||||||
Management and director fees
|
8 |
1,492,536
|
223,542
|
1,745,195
|
277,542
| |||||||||||||||
Office and miscellaneous
|
208,418
|
369,831
|
563,480
|
942,269
| ||||||||||||||||
Professional fees
|
165,642
|
159,976
|
331,813
|
231,192
| ||||||||||||||||
Regulatory and filing fees
|
32,038
|
502
|
74,741
|
30,598
| ||||||||||||||||
Salaries
|
177,576
|
265,624
|
468,370
|
687,624
| ||||||||||||||||
Share-based compensation
|
7 |
-
|
34,827
|
263,672
|
192,514
| |||||||||||||||
Travel and accommodation
|
41,813
|
13,846
|
84,992
|
24,902
| ||||||||||||||||
(2,153,696
|
)
|
(1,127,098
|
)
|
(3,724,864
|
)
|
(2,893,863
|
)
| |||||||||||||
Loss before other items
|
(1,944,985
|
)
|
(1,088,002
|
)
|
(3,344,558
|
)
|
(2,792,231
|
)
| ||||||||||||
Other items:
| ||||||||||||||||||||
Derivative liability
|
39,986
|
-
|
94,779
|
-
| ||||||||||||||||
Foreign exchange
|
42,336
|
(19,840
|
)
|
29,853
|
(18,461
|
)
| ||||||||||||||
Interest expense
|
10, 11
|
155,110
|
27,242
|
550,862
|
43,940
| |||||||||||||||
Write-off of asset
|
-
|
-
|
9,403
|
-
| ||||||||||||||||
Loss and comprehensive loss for the period
|
(2,182,417
|
)
|
(1,095,404
|
)
|
(4,029,455
|
)
|
(2,817,710
|
)
| ||||||||||||
Basic and diluted loss per share
|
(0.02
|
)
|
(0.01
|
)
|
(0.03
|
)
|
(0.03
|
)
| ||||||||||||
Weighted average number of shares outstanding - basic and diluted
|
121,824,560
|
93,850,887
|
115,947,094
|
90,598,903
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Condensed consolidated interim Statements of Changes in Shareholders' Equity
For the Nine Months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
Number of
shares
|
Amount
$
|
Contributed
Surplus
$
|
Subscriptions
received in
advance
$
|
Deficit
$
|
Total
$
| |||||||||||||||||||
Balance, December 31, 2019
|
86,944,353
|
9,367,691
|
3,020,617
|
100,240
|
(12,054,580
|
)
|
433,968
| |||||||||||||||||
Shares issued pursuant to:
| ||||||||||||||||||||||||
Option exercises
|
1,000,000
|
162,218
|
(72,218
|
)
|
(90,000
|
)
|
-
|
-
| ||||||||||||||||
Convertible note
|
1,633,333
|
162,500
|
(110,119
|
)
|
(52,391
|
)
| ||||||||||||||||||
Debt settlement
|
416,667
|
50,000
|
-
|
-
|
-
|
50,000
| ||||||||||||||||||
In lieu of consulting fees
|
4,875,556
|
428,000
|
-
|
-
|
-
|
428,800
| ||||||||||||||||||
Share based compensation
|
-
|
-
|
192,514
|
-
|
-
|
192,514
| ||||||||||||||||||
Net and comprehensive loss for the period
|
-
|
-
|
-
|
-
|
(2,817,710
|
)
|
(2,817,710
|
)
| ||||||||||||||||
Balance, September 30, 2020 |
94,869,909
|
10,170,409
|
3,030,794
|
10,240
|
(14,872,290
|
)
|
(1,660,847
|
)
| ||||||||||||||||
Shares issued pursuant to:
| ||||||||||||||||||||||||
Option exercises
|
1,000,000
|
147,909
|
(57,909
|
)
|
-
|
-
|
90,000
| |||||||||||||||||
Warrant exercises
|
200,000
|
30,000
|
-
|
-
|
-
|
30,000
| ||||||||||||||||||
Convertible note
|
4,521,564
|
594,419
|
110,119
|
-
|
-
|
704,538
| ||||||||||||||||||
Debt settlement
|
2,370,000
|
384,000
|
-
|
-
|
-
|
384,000
| ||||||||||||||||||
In lieu of consulting fees
|
(7,500
|
)
|
82,000
|
-
|
-
|
-
|
82,000
| |||||||||||||||||
Write-off subscriptions receivable
|
-
|
-
|
-
|
(10,240
|
)
|
-
|
(10,240
|
)
| ||||||||||||||||
Share-based compensation
|
-
|
-
|
280,589
|
-
|
-
|
280,589
| ||||||||||||||||||
Net and comprehensive loss for the period
|
-
|
-
|
-
|
-
|
(2,056,372
|
)
|
(2,056,372
|
)
| ||||||||||||||||
Balance, December 31, 2020 |
102,953,973
|
11,408,737
|
3,363,593
|
-
|
(16,928,662
|
)
|
(2,156,332
|
)
| ||||||||||||||||
Shares issued pursuant to:
| ||||||||||||||||||||||||
Convertible note
|
17,565,497
|
2,457,047
|
-
|
-
|
-
|
2,457,047
| ||||||||||||||||||
In lieu of consulting fees
|
13,833,333
|
1,521,667
|
-
|
-
|
-
|
1,521,667
| ||||||||||||||||||
Warrant exercises
|
657,000
|
98,550
|
-
|
-
|
-
|
98,550
| ||||||||||||||||||
Option exercises
|
100,000
|
15,965
|
(6,965
|
)
|
-
|
-
|
9,000
| |||||||||||||||||
Share-based compensation
|
-
|
-
|
263,672
|
-
|
-
|
263,672
| ||||||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
-
|
(4,029,455
|
)
|
(4,029,455
|
)
| ||||||||||||||||
Balance, September 30, 2021 |
148,887,581
|
17,112,987
|
3,620,300
|
-
|
(20,958,117
|
)
|
(245,246
|
)
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Condensed consolidated interim Statements of Cash Flows
For the Nine Months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
2021
$
|
2020
$
| |||||||
Operating activities
| ||||||||
Loss for the period
|
(4,029,455
|
)
|
(2,817,710
|
)
| ||||
Add non-cash items:
| ||||||||
Amortization
|
242,770
|
290,925
| ||||||
Share-based compensation
|
263,672
|
192,514
| ||||||
Accrued interest
|
526,348
|
18,489
| ||||||
Shares issued in lieu of consulting fees
|
1,521,667
|
428,000
| ||||||
Unrealized foreign exchange gain
|
21,915
|
-
| ||||||
Impairment of asset
|
9,404
|
-
| ||||||
Fair value of derivative
|
94,779
|
-
| ||||||
Changes in non-cash working capital items
| ||||||||
Sales tax payable
|
139,736
|
128,568
| ||||||
Prepaid expenses
|
(214,921
|
)
|
(16,776
|
)
| ||||
Accounts receivable
|
9,643
|
351,729
| ||||||
Accounts payable and accrued liabilities
|
(162,608
|
)
|
373,452
| |||||
Net cash flows used in operating activities
|
(1,577,050
|
)
|
(1,050,809
|
)
| ||||
Investing activity
| ||||||||
Acquisition of Trucking
|
(882,569
|
)
|
-
| |||||
Cash acquired on business combination | 149,386 | - | ||||||
Purchase of vehicles | (43,038 | ) | - | |||||
Net cash flows provided by investing activity
|
(776,221
|
)
|
-
| |||||
Financing activities
| ||||||||
Convertible note
|
2,346,829
|
982,280
| ||||||
Exercise of options
|
9,000
|
-
| ||||||
Exercise of warrants
|
98,550
|
-
| ||||||
Lease payments
|
(195,352
|
)
|
(266,443
|
)
| ||||
Advances of loans receivable
|
(28,051
|
)
|
-
| |||||
Subscriptions received
|
-
|
58,650
| ||||||
Net cash flows provided by financing activities
|
2,230,976
|
774,487
| ||||||
Foreign exchange on cash | 32,885 | - | ||||||
Change in cash during the period
|
(89,410
|
)
|
(276,322
|
)
| ||||
Cash - beginning of the period
|
255,668
|
295,593
| ||||||
Cash - end of the period
|
166,258
|
19,271
| ||||||
Supplemental cash flow information: | ||||||||
Income taxes paid |
- |
- | ||||||
Interest paid
|
25,598
|
25,451
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
1. |
NATURE OF OPERATIONS AND GOING CONCERN
|
2. |
BASIS OF PRESENTATION
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value at the acquisition date. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with IAS 39, Financial Instruments: Recognition and Measurement or IAS 37, Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being recognized in profit or loss.
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
3.
|
TRUCKING ACQUISITION
|
• |
USD $700,000 on closing (paid)
|
• |
USD $640,000 will be advanced 45 days from the closing date (paid subsequent to September 30, 2021) |
• |
USD $520,000 will be advanced 90 days from the closing date
|
• |
USD $325,000 will be advanced upon mutual agreement by the Company and noteholder at 120 days from the closing date, together with the prorated 5% OID
|
Purchase price consideration
|
US $
| |||
Consideration - cash
|
1,860,000
| |||
Consideration - shares
|
1,240,000
| |||
Fair value of consideration
|
3,100,000
| |||
Cash
|
117,321
| |||
Prepaid expenses
|
20,440
| |||
Loans payable
|
(52,042
|
)
| ||
Accounts payable and accrued liabilities
|
(59,657
|
)
| ||
Customer contract
|
3,073,938
| |||
Total net assets acquired and liabilities assumed
|
3,100,000
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
4. |
ACCOUNTS RECEIVABLE
|
September 30, 2021
$
|
December 31, 2020
$
| |||||||
Accounts receivable
|
354,010
|
363,653
|
5. |
LOAN RECEIVABLE
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
6. |
RIGHT-OF-USE ASSETS
|
Vehicles
$
|
ROU Assets
$
|
Total
$
| ||||||||||
Cost
| ||||||||||||
Balance, December 31, 2019
|
-
|
894,046
|
894,046
| |||||||||
Additions
|
166,501
|
358,423
|
524,924
| |||||||||
Disposal
|
-
|
(881,676
|
)
|
(881,676
|
)
| |||||||
Balance, December 31, 2020 |
166,501
|
370,793
|
537,294
| |||||||||
Additions
|
58,352
|
619,678
|
678,030
| |||||||||
Disposal
|
(26,108
|
)
|
(150,772
|
)
|
(176,880
|
)
| ||||||
Balance, September 30, 2021 |
198,745
|
839,699
|
1,038,444
| |||||||||
Accumulated amortization
| ||||||||||||
Balance, December 31, 2019
|
-
|
683,789
|
683,789
| |||||||||
Amortization
|
16,559
|
372,300
|
388,859
| |||||||||
Disposal
|
-
|
(879,053
|
)
|
(879,053
|
)
| |||||||
Balance, December 31, 2020 |
16,559
|
177,036
|
193,595
| |||||||||
Amortization
|
57,510
|
185,259
|
242,769
| |||||||||
Disposal
|
(3,264
|
)
|
(150,771
|
)
|
(154,035
|
)
| ||||||
Balance, September 30, 2021 |
70,805
|
211,524
|
282,329
| |||||||||
Net Book Value
| ||||||||||||
Balance, December 31, 2020 |
149,942
|
193,757
|
343,699
| |||||||||
Balance, September 30, 2021 |
127,940
|
628,175
|
756,115
|
7.
|
SHARE CAPITAL
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
a)
|
On January 7, 2021, the Company issued 1,975,822 common shares pursuant to the settlement of US$118,549 convertible debt, the shares were fair valued at $316,133.
|
b)
|
On January 13, 2021, the Company issued 2,756,250 common shares pursuant to the settlement of US$220,500 convertible debt, the shares were fair valued at $468,563.
|
c)
|
On January 15, 2021, Company issued 175,000 incentive shares pursuant to the issuance of a convertible note of US$175,000.
|
d)
|
On February 2, 2021, the Company issued 2,756,250 common shares pursuant to the settlement of US$165,375 convertible debt, the shares were fair valued at $385,875.
|
e)
|
On February 17, 2021, the Company issued 1,378,125 common shares pursuant to the settlement of US$82,688 convertible debt, the shares were fair valued at $323,859.
|
f)
|
On March 15, 2021, the Company issued 300,000 incentive shares pursuant to the issuance of a convertible note of US$367,500.
|
g)
|
On May 20, 2021, the Company issued 5,053,125 common shares pursuant to the settlement of US$303,188 convertible debt, the shares were fair valued at $682,172.
|
h)
|
On June 2, 2021, the Company issued 833,333 common shares in lieu of fees to a consultant of the Company. The share were fair valued at $91,667.
|
i)
|
On September 15, 2021, the Company issued 13,777,778 common shares as part of the Trucking Acquisition, the shares were fair valued at $1,611,020. The Company also issued 500,000 incentive shares pursuant to the issuance of a convertible note.
|
j)
|
On September 22, 2021, the Company issued 2,670,925 common shares pursuant to the settlement of US $184,000 convertible debt, the shares were fair valued at $280,447.
|
k)
|
On September 30, 2021, the Company issued 13,000,000 common shares in lieu of fees to directors and officers of the Company, the shares were fair valued at $1,430,000.
|
l)
|
The Company issued 657,000 shares pursuant to the exercise of 657,000 warrants for gross proceeds of $98,550.
|
m)
|
The Company issued 100,000 shares pursuant to the exercise of 100,000 stock options for gross proceeds of $9,000.
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
Number of
Options
#
|
Weighted Average Exercise Price
$
| |||||||
Balance, December 31, 2019
|
10,374,000
|
0.22
| ||||||
Granted
|
6,725,000
|
0.09
| ||||||
Exercised
|
(2,000,000
|
)
|
0.09
| |||||
Expired
|
(200,000
|
)
|
0.17
| |||||
Forfeited
|
(5,099,000
|
)
|
0.20
| |||||
Balance, December 31, 2020
|
9,800,000
|
0.15
| ||||||
Granted
|
2,500,000
|
0.14
| ||||||
Exercised
|
(100,000
|
)
|
0.09
| |||||
Cancelled
|
(1,025,000
|
)
|
0.16
| |||||
Balance, September 30, 2021
|
11,175,000
|
0.15
|
September 30,
2021 |
December 31, 2020
| |||||||
Weighted average fair value of options granted
|
$
|
0.11
|
$
|
0.06
| ||||
Risk-free interest rate
|
0.44 - 0.90
|
%
|
0.44 - 1.51
|
%
| ||||
Estimated life
|
5 years |
1 - 5 years
| ||||||
Expected volatility
|
102% - 107
|
%
|
106% - 119
|
%
| ||||
Expected dividend yield
|
0.00
|
%
|
0.00
|
%
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
Expiry
Date
|
Exercise price
$
|
Remaining life (years)
|
Options outstanding
| |||||||||
November 17, 2022 |
0.16
|
1.13
|
150,000
| |||||||||
November 28, 2022 |
0.18
|
1.16
|
550,000
| |||||||||
January 21, 2023 |
0.32
|
1.31
|
450,000
| |||||||||
May 1, 2023 |
0.24
|
1.58
|
500,000
| |||||||||
August 15, 2023 |
0.21
|
1.87
|
300,000
| |||||||||
August 31, 2023 |
0.27
|
1.92
|
200,000
| |||||||||
November 22, 2023 |
0.26
|
2.15
|
100,000
| |||||||||
December 13, 2023 |
0.25
|
2.20
|
750,000
| |||||||||
May 2, 2024 |
0.27
|
2.59
|
150,000
| |||||||||
May 17, 2024 |
0.245
|
2.66
|
200,000
| |||||||||
June 17, 2024 |
0.245
|
2.72
|
300,000
| |||||||||
May 6, 2025 |
0.09
|
3.60
|
2,475,000
| |||||||||
June 1, 2025 |
0.14
|
3.67
|
250,000
| |||||||||
July 22, 2025 |
0.09
|
3.81
|
400,000
| |||||||||
November 12, 2025 |
0.075
|
4.12
|
2,100,000
| |||||||||
January 22, 2026 |
0.145
|
4.32
|
2,000,000
| |||||||||
June 2, 2026 |
0.12
|
4.67
|
500,000
| |||||||||
3.31
|
11,175,000
|
Number of
Options
#
|
Weighted Average Exercise Price
$
| |||||||
Balance, December 31, 2019
|
12,112,313
|
0.23
| ||||||
Exercised
|
(200,000
|
)
|
0.15
| |||||
Expired
|
(10,027,836
|
)
|
0.29
| |||||
Balance, December 31, 2020
|
1,884,477
|
0.15
| ||||||
Exercised
|
(657,000
|
)
|
0.15
| |||||
Balance, September 30, 2021
|
1,227,477
|
0.15
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
Expiry Date
|
Number
Outstanding
|
Exercise Price
$
| ||||||
November 22, 2021 |
1,227,477
|
0.15
| ||||||
1,227,477
|
0.15
|
8. |
RELATED PARTY TRANSACTIONS
|
Three months ended
September 30,
|
Nine months ended
September 30,
| |||||||||||||||
2021
$
|
2020
$
|
2021
$
|
2020
$
| |||||||||||||
Consulting fees
|
-
|
-
|
-
|
67,840
| ||||||||||||
Management fees
|
1,492,536
|
223,542
|
1,745,195
|
277,542
| ||||||||||||
Salaries and wages
|
19,688
| - |
59,063
| - | ||||||||||||
Software development
|
-
|
-
|
-
|
28,272
| ||||||||||||
Share-based compensation
|
-
|
-
|
231,016
|
96,000
| ||||||||||||
1,512,224
|
223,542
|
2,035,274
|
469,654
|
9. |
FINANCIAL INSTRUMENTS
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
• |
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;
|
• |
Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
|
• |
Level 3 - Inputs that are not based on observable market data.
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
10. |
LEASE OBLIGATIONS
|
$ | ||||
Balance, December 31, 2019
|
202,798
| |||
Lease additions
|
358,423
| |||
Lease termination
|
(2,623
|
)
| ||
Interest expense
|
28,671
| |||
Payments
|
(374,366
|
)
| ||
Balance, December 31, 2020
|
212,903
| |||
Lease additions
|
619,678
| |||
Lease credit
|
(4,385
|
)
| ||
Interest expense
|
23,778
| |||
Payments
|
(212,933
|
)
| ||
Balance, September 30, 2021
|
639,041
|
September 30, 2021
$
|
December 31, 2020
$
| |||||||
Less than 1 year
|
249,381
|
104,745
| ||||||
1-5 years
|
508,930
|
134,784
| ||||||
5 + years
|
-
|
-
| ||||||
Total minimum lease payments
|
758,311
|
239,529
| ||||||
Less: Imputed Interest
|
(119,270
|
)
|
(26,626
|
)
| ||||
Total lease obligations
|
639,041
|
212,903
| ||||||
Current portion of lease obligations
|
(201,785
|
)
|
(92,736
|
)
| ||||
Non-current portion of lease obligations
|
437,256
|
120,167
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
11. |
CONVERTIBLE PROMISSORY NOTE
|
September 30,
2021 |
December 31,
2020 | |||||||
Risk-free interest rate
|
0.12 |
%
|
0.10 - 0.34
|
%
| ||||
Estimated life
|
0.5 - 0.75 years
|
0.5 - 0.75 years
| ||||||
Expected volatility
|
97%-140
|
%
|
60% - 101
|
%
| ||||
Expected dividend yield
|
0.00 |
%
|
0.00 |
%
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
Convertible Debt
$
|
Derivative Liability
$
| |||||||
Balance, December 31, 2019
|
-
|
-
| ||||||
Additions
|
890,663
|
302,035
| ||||||
Interest expense
|
77,640
|
-
| ||||||
Accretion
|
246,291
|
-
| ||||||
Change in fair value of derivative liability
|
-
|
866,238
| ||||||
Conversion of convertible debt
|
(384,820
|
)
|
(373,642
|
)
| ||||
Foreign exchange on loan
|
(63,704
|
)
|
-
| |||||
Balance, December 31, 2020 |
766,070
|
794,631
| ||||||
Additions
|
1,983,349
|
363,480
| ||||||
Interest expense
|
95,679
|
-
| ||||||
Accretion
|
430,670
|
-
| ||||||
Change in fair value of derivative liability
|
-
|
51,618
| ||||||
Conversion of convertible debt
|
(1,343,582
|
)
|
(1,070,303
|
)
| ||||
Foreign exchange on loan
|
21,915
|
-
| ||||||
Balance, September 30, 2021 |
1,954,101 |
139,427 |
ParcelPal Logistics Inc.
(Formerly ParcelPal Technology Inc.)
Notes to the Condensed consolidated interim Financial Statements
For the Nine months Ended September 30, 2021 and 2020
(Unaudited - expressed in Canadian Dollars)
|
12. |
COST OF SALES
|
Three months ended
September 30,
|
Nine months ended
September 30,
| |||||||||||||||
2021
$
|
2020
$
|
2021
$
|
2020
$
| |||||||||||||
Amortization
|
89,100
|
129,407
|
242,770
|
279,923
| ||||||||||||
Driver expenses
|
-
|
43,741
|
-
|
78,608
| ||||||||||||
Fuel
|
134
|
123,075
|
112,091
|
279,623
| ||||||||||||
Salaries and wages
|
1,438,825
|
1,131,209
|
3,512,075
|
3,272,655
| ||||||||||||
1,528,059
|
1,427,432
|
3,866,936
|
3,910,809
|
13. |
SUBSEQUENT EVENTS
|
1) |
The Company signed a letter of an intent to acquire another United States delivery service company (the "Acquiree"). The total purchase price (the "Purchase Price") is expected to be one time actual revenue of the Acquiree's first 12 months of operations (expected to be USD $1,400,000), based on an earn-out schedule to be set forth in the definitive agreement, which will be payable in cash (60%) and in shares of ParcelPal's common stock (40%), the stock portion of which shall be priced at-market based on the closing price of the common stock following the closing of the transaction. Under the terms of the proposed transaction, this will be an asset sale and ParcelPal will acquire 100% of the Acquiree's outstanding assets and revenues generated from this delivery service location, which is located in the western region of the United States.
|
2) |
The Company announced that it has changed its auditor from Dale Matheson Carr-Hilton LaBonte LLP ("DMCL") to BF Borgers CPA, PC ("BF Borgers") as its independent registered public accounting firm. The Board of Directors of the Company approved the appointment of BF Borgers as the Company's independent registered public accounting firm for the fiscal year ended December 31, 2021, effective October 14, 2021.
|
3) |
The Company issued 1,922,707 of common shares pursuant to the conversion of USD $100,000 in convertible notes. |
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Disclaimer
ParcelPal Logistics Inc. published this content on 29 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 November 2021 12:10:05 UTC.