PLAYGON GAMES INC.
Condensed Interim Consolidated Financial Statements
For the three and six months ended June 30, 2022 and 2021
(Unaudited - expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the 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 management.
The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor.
PLAYGON GAMES INC.
Condensed Interim Consolidated Statements of Financial Position (Unaudited - expressed in Canadian Dollars)
June 30, | December 31, | ||
Note | 2022 | 2021 | |
$ | $ | ||
ASSETS | |||
Current assets | |||
Cash | 539,485 | 5,930,003 | |
Amounts receivable | 281,047 | 162,480 | |
Sales tax receivable | 104,227 | 81,365 | |
Prepaids | 219,420 | 333,711 | |
Other assets | 3 | 435,890 | 440,145 |
1,580,069 | 6,947,704 | ||
Property and equipment | 4 | 865,651 | 1,060,567 |
Intangible assets | 5 | 7,269,697 | 8,497,522 |
Right-of-use asset | 6 | 381,050 | 573,670 |
10,096,467 | 17,079,463 | ||
LIABILITIES | |||
Current liabilities | |||
Accounts payable and accrued liabilities | 7, 11 | 2,061,224 | 1,911,411 |
Loans payable | 8 | 1,100,000 | 200,000 |
Purchase obligation payable | 32,338 | 42,881 | |
Current portion of lease liability | 6 | 315,285 | 389,084 |
3,508,847 | 2,543,376 | ||
Long-term debt | 9 | 565,229 | 559,231 |
Long-term portion of lease liability | 6 | 78,740 | 190,346 |
4,152,816 | 3,292,953 | ||
SHAREHOLDERS' DEFICIENCY | |||
Share capital | 10 | 54,533,474 | 54,533,474 |
Reserves | 10 | 4,468,426 | 4,051,237 |
Accumulated other comprehensive loss | 109,515 | 67,655 | |
Accumulated deficit | (53,167,764) | (44,865,856) | |
5,943,651 | 13,786,510 | ||
10,096,467 | 17,079,463 |
Nature and continuance of operations (Note 1)
Subsequent event (Note 15)
Approved on behalf of the Board of Directors on August 26, 2022:
/s/ Darcy Krogh | /s/ Mike Marrandino |
Darcy Krogh | Mike Marrandino |
Director | Director |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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PLAYGON GAMES INC.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited - expressed in Canadian Dollars)
Three months ended June | Six months ended | ||||
30, | June 30, | ||||
Note | 2022 | 2021 | 2022 | 2021 | |
$ | $ | $ | $ | ||
Revenue | 14 | 216,881 | 2,218 | 357,758 | 2,218 |
Operating expenses | |||||
Advertising and promotion | 25,704 | 16,385 | 135,512 | 166,003 | |
Consulting fees | 395,911 | 71,873 | 792,179 | 184,479 | |
Data access fees | 278,373 | 88,830 | 479,040 | 237,581 | |
Depreciation and amortization | 4, 5, 6 | 831,410 | 760,752 | 1,659,583 | 1,507,553 |
Interest and bank charges | 30,220 | 34,548 | 61,441 | 82,457 | |
Management and director's fees | 11 | 212,749 | 233,397 | 413,407 | 417,306 |
Other general and administrative | |||||
expenses | 271,755 | 197,331 | 465,039 | 364,200 | |
Professional fees | 117,699 | 87,934 | 187,648 | 249,298 | |
Regulatory and shareholder services | 3,876 | 21,478 | 23,538 | 64,746 | |
Rent | 6 | 35,530 | 50,268 | 63,729 | 111,816 |
Sales commissions | 40,944 | - | 40,944 | - | |
Salaries and benefits | 2,128,644 | 1,584,824 | 3,828,525 | 2,819,240 | |
Share-based compensation | 10 | 176,612 | 415,658 | 417,189 | 860,700 |
Travel | 30,822 | 23,738 | 52,709 | 35,327 | |
4,580,249 | 3,587,016 | 8,620,483 | 7,100,706 | ||
Loss before other income (expenses) | (4,363,368) | (3,584,798) | (8,262,725) | (7,098,488) | |
Other income (expenses) | |||||
Interest income | 4,986 | 6,963 | 14,235 | 8,347 | |
Foreign exchange gain/(loss) | (43,971) | (12,226) | (53,418) | 13,059 | |
(38,985) | (5,263) | (39,183) | 21,406 | ||
Loss for the period | (4,402,353) | (3,590,061) | (8,301,908) | (7,077,082) | |
Foreign currency translation adjustment | 34,004 | (14,733) | 41,860 | (37,831) | |
Comprehensive loss for the period | (4,368,349) | (3,604,794) | (8,260,048) | (7,114,913) | |
Basic and diluted loss per common share | (0.02) | (0.02) | (0.03) | (0.03) | |
Weighted average number of common | |||||
shares outstanding | |||||
Basic and diluted | 253,331,449 | 213,134,122 | 253,331,449 | 203,245,809 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Page 3
PLAYGON GAMES INC.
Condensed Interim Consolidated Statements of Cash Flows (Unaudited - expressed in Canadian Dollars)
Six months ended | ||
June 30, | ||
2022 | 2021 | |
$ | $ | |
Cash flows used in operating activities | ||
Loss for the period | (8,301,908) | (7,077,082) |
Items not affecting cash: | ||
Accrued interest expense | 31,826 | 41,826 |
Depreciation and amortization | 1,659,583 | 1,507,553 |
Share-based compensation | 417,189 | 860,700 |
Unrealized foreign exchange | (6,288) | 2,004 |
Changes in non-cash working capital: | ||
Amounts receivable | (118,567) | (1,769) |
Sales tax receivable | (22,862) | 13,666 |
Prepaids | 114,291 | 1,408 |
Accounts payable and accrued liabilities | 136,056 | 239,914 |
(6,090,680) | (4,411,780) | |
Cash flows provided by investing activity | ||
Acquisition of property and equipment | (25,325) | (325,439) |
(25,325) | (325,439) | |
Cash flows provided by financing activities | ||
Loan proceeds | 900,000 | 20,000 |
Loan repayments | - | (564,750) |
Interest paid on loans | - | (21,318) |
Repayment of lease liability | (208,632) | (89,410) |
Warrants exercised | - | 7,070,924 |
691,368 | 6,415,446 | |
Effect of foreign exchange on cash | 34,119 | (31,283) |
Change in cash during the period | (5,390,518) | 1,646,944 |
Cash, beginning of period | 5,930,003 | 781,456 |
Cash, end of period | 539,485 | 2,428,400 |
Supplemental disclosure with respect to cash flows (Note 12)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Playgon Games Inc. published this content on 29 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2022 08:13:17 UTC.