PeakBirch Commerce : Financial Statement for period ending April 30th, 2022

Condensed Interim Consolidated Financial Statements

PeakBirch Commerce Inc.

(formerly PeakBirch Logic Inc.)

For the three and six months ended April 30, 2022 and 2021

(Unaudited - Expressed in US Dollars)

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements have been prepared by and are the responsibility of the management and have been approved by the board of directors.

The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

PeakBirch Commerce Inc. (formerly PeakBirch Logic Inc.)

Condensed Interim Consolidated Statements of Financial Position

As at

(Expressed in US Dollars)

				April 30,		October 31,
				2022		2021
		Note		(unaudited)		(audited)
Assets
Current assets
Cash		$	77,932	$	131,696
Sales tax recoverable and other receivables	4		345,875		192,392
Loan receivable	9		-		207,632
Prepaid assets			20,780		24,227
Inventory	12		51,347		59,113
Total current assets			495,934		615,060
Non-current assets
Equipment	5		3,694		5,197
Intangible assets	6		747,281		144,650
Right-of-use assets	12,14		61,090		84,909
Total assets		$	1,307,999	$	849,816
Liabilities
Current liabilities
Accounts payable	9	$	1,081,211	$	1,006,022
Accrued liability	7,9		121,854		220,265
Promissory notes	7		728,886		709,442
Loans payable	8		35,177		44,096
Lease liability	12,14		33,639		36,586
Total current liabilities			2,000,767		2,016,411
Non-current liabilities
Loans payable	8		76,998		127,702
Lease liability	12,14		27,705		48,569
Total liabilities			2,105,470		2,192,682
Shareholders' deficiency
Share capital	10		33,977,192		32,188,714
Contributed surplus	10		1,312,289		1,422,517
Warrant reserve	10		826,398		826,398
Foreign exchange translation reserve	10		(68,350)		86,448
Deficit			(36,845,000)		(35,866,943)
Total shareholders' deficiency			(797,471)		(1,342,866)
Total liabilities and shareholders' deficiency		$	1,307,999	$	849,816
Nature of operations and going concern (Note 2)
Subsequent event (Note 19)
Approved and authorized by the Board on June 29, 2022.
(signed) "Marc Mulvaney"	(signed) "Usama Chaudhry"
Marc Mulvaney		Usama Chaudhry
Director	Director

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

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PeakBirch Commerce Inc. (formerly PeakBirch Logic Inc.)

Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) For the three and six months ended April 30,

(Unaudited) (Expressed in US Dollars)

			Three months	Three months		Six months		Six months
			ended		ended		ended		ended
			April 30,		April 30,		April 30,		April 30,
	Note		2022		2021		2022		2021
Revenue	17	$	88,173	$	871,858	$	618,716	$	2,243,365
Cost of sales			93,440		643,714		314,730		1,776,730
			(5,267)		228,144		303,986		466,635
Expenses
Selling			19,583		133,643		80,114		278,105
Advertising and promotion			208,735		-		208,735		-
Accounting and audit fees (recovery)			71,098		41,283		93,977		67,651
Amortization	6,7		20,784		75,690		41,713		150,672
Consulting	10		365,715		70,398		431,220		206,737
General and administrative			27,641		9,592		62,369		16,788
Insurance expense			1,412		52,358		5,481		82,609
Legal fees			168		16,922		17,297		29,793
Salaries	10		12,103		28,835		47,335		55,148
Share-based compensation	10,13		277,532		217,030		277,532		217,030
Transfer agent			592		3,073		8,383		6,886
			1,005,363		648,824		1,274,156		1,111,419
Other items
Other income	4		-		-		-		59
Gain on change in fair value of
derivative liability	8		-		(30,586)		-		3,162
Write-off of payable			6,462		-		6,462		-
Foreign exchange gain (loss)			(466)		(143,074)		29,579		(194,729)
Interest and accretion expense	8,9		(14,846)		(115,352)		(43,928)		(219,556)
Indemnification provision for flow-			-		805		-		11,213
through shares
Net loss		$	(1,019,480)	$	(708,887)	$	(978,057)	$	(1,044,635)
Translation adjustment			(137,742)		89,463		(154,798)		167,022
Comprehensive loss			(1,288,452)		(619,424)		(1,132.855)		(877,613)
Net loss per share
Basic and diluted		$	(0.01)	$	(0.02)	$	(0.02)	$	(0.04)
Weighted average number of
Basic and diluted			71,434,300		30,015,337		54,629,758		29,222,350

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

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PeakBirch Commerce Inc. (formerly PeakBirch Logic Inc.)

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Deficiency)

For the six months ended April 30, 2022 and 2021

(Unaudited) (Expressed in US Dollars)

						Foreign
		Number of				Exchange
		Common	Share	Contributed	Warrant	Translation
	Notes	Shares	Capital	Surplus	Reserve	Reserve	Deficit	Total
			$	$	$	$	$	$
Balance as at October 31, 2020		28,455,221	30,819,074	973,822	701,666	(26,376)	(32,077,169)	391,017
Shares issued for conversion of convertible notes	8,11	1,300,121	294,321	-	-	-	-	294,321
Shares issued from private placement	11	3,148,888	373,136	-	124,732	-	-	497,868
Share-based compensation	11	-	-	217,030	-	-	-	217,030
Net loss and comprehensive loss		-	-	-	-	167,022	(1,044,635)	(877,613)
Balance as at April 30, 2021		32,904,230	31,486,531	1,190,852	826,398	140,646	(33,121,804)	522,623
Balance as at October 31, 2021		38,373,189	32,188,714	1,422,517	826,398	86,448	(35,866,943)	(1,342,866)
Shares issued from private placement	11	5,000,000	194,825	-	-	-	-	194,825
Shares issued for acquisition of subsidiary	11	27,272,727	1,062,684	-	-	-	-	1,062,684
Shares issued for debt settlement	11	11,877,950	461,398	-	-	-	-	330,168
Shares issued from RSU conversion	11,13	729,687	69,571	(69,571)	-	-	-	-
Share-based compensation		-	-	90,573	-	-	-	90,573
Net loss and comprehensive loss		-	-	-	-	(154,798)	(978,057)	(1,132,855)
Balance as at April 30, 2022		83,253,553	33,977,192	1,443,519	826,398	(68,350)	(36,845,000)	(797,471)

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

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