Interim Condensed Consolidated Financial Statements of
Route1 Inc.
September 30,2021 and 2020
NOTICE OF NO AUDITOR REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
These unaudited interim condensed consolidated financial statements, including comparatives, have been prepared in accordance with International Accounting Standards ("IAS") 34 'Interim Financial Reporting' ("IAS 34") using accounting policies consistent with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and Interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").
Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim condensed 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 interim condensed consolidated financial statements of Route1 Inc. (the "Company") have been prepared by and are the responsibility of the Company's management. The unaudited interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in Canada (these statements are prepared under International Financial Reporting Standards (IFRS)) and reflect management's best estimates and judgment based on information currently available. The Company's independent auditor has not performed a review of these interim condensed consolidated financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
TABLE OF CONTENTS
Route1 Inc.
Page | |
Interim Condensed Consolidated Statements of Financial Position | 1 |
Interim Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) | 2 |
Interim Condensed Consolidated Statements of Changes in Equity | 3 |
Interim Condensed Consolidated Statements of Cash Flows | 4 |
Notes to the Interim Condensed Consolidated Financial Statements | 5-28 |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Route1 Inc.
As at September 30, 2021 and December 31, 2020 (stated in Canadian dollars)
Note | September 30, 2021 | December 31, 2020 | |
Unaudited | Audited | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $727,446 | $1,137,474 | |
Accounts receivable | 5,329,702 | 3,310,701 | |
Other receivables | 205,811 | 657,573 | |
Inventory | 3 | 769,786 | 678,801 |
Prepaid expenses | 424,453 | 476,680 | |
Contract costs | 12 | 81,436 | - |
Other current assets | 4,572 | 146,844 | |
Total current assets | 7,543,206 | 6,408,073 | |
Non-current assets | |||
Deferred tax asset | 1,484,000 | 1,484,000 | |
Right-of-use assets | 5 | 1,760,447 | 2,152,444 |
Furniture and equipment | 5 | 1,018,539 | 893,259 |
Intangible assets | 6 | 2,025,132 | 1,268,684 |
Goodwill | 7 | 3,001,590 | 1,969,734 |
Total non-current assets | 9,289,708 | 7,768,121 | |
Total assets | $16,832,914 | $14,176,194 | |
Liabilities | |||
Current liabilities | |||
Bank indebtedness | 11 | 1,593,105 | 777,299 |
Accounts payable and other liabilities | 5,065,761 | 4,063,359 | |
Contract liability | 12 | 3,771,259 | 3,627,223 |
Lease liabilities | 4 | 416,442 | 552,980 |
Notes payable | 13 | 695,519 | 758,044 |
Total current liabilities | 11,542,086 | 9,778,905 | |
Non-current liabilities | |||
Deferred tax liability | 145,744 | 159,736 | |
Contract liability | 12 | 77,303 | 100,051 |
Lease liabilities | 4 | 1,452,915 | 1,740,174 |
Notes payable | 13 | 632,372 | 256,796 |
Total non-current liabilities | 2,308,334 | 2,256,757 | |
Total liabilities | 13,850,420 | 12,035,662 | |
Shareholders' equity | |||
Capital and reserve | |||
Common shares | 14,15 | 23,700,961 | 23,370,074 |
Warrants | 15 | 1,149,704 | 1,683,704 |
Contributed surplus - stock compensation reserve | 15 | 15,789,754 | 15,311,537 |
Accumulated other comprehensive income (loss) | (49,156) | (78,625) | |
Deficit | (37,608,769) | (38,146,158) | |
Total shareholders' equity | 2,982,494 | 2,140,532 | |
Total shareholders' equity and liabilities | $16,832,914 | $14,176,194 | |
Commitments and contingencies | 18 |
The accompanying notes are an integral part of these consolidated financial statements
1
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
Route1 Inc.
For the three and nine months ended September 30, 2021 and 2020 (stated in Canadian dollars)
Note | Three months ended | Nine months ended | |||
September 30 | September 30 | ||||
Unaudited | Unaudited | ||||
2021 | 2020 | 2021 | 2020 | ||
Revenue | |||||
Subscription revenue and services | 21 | $2,296,633 | $2,599,425 | $7,724,873 | $7,046,197 |
Devices and appliance | 21 | 4,960,413 | 6,523,329 | 12,409,886 | 15,401,525 |
Other | 21 | 30,587 | 24,737 | 101,925 | 31,753 |
Total revenue | 7,287,633 | 9,147,491 | 20,236,684 | 22,479,475 | |
Cost of revenue | 3 | 4,696,188 | 6,134,052 | 11,786,508 | 14,319,512 |
Gross profit | 2,591,444 | 3,013,439 | 8,450,176 | 8,159,963 | |
Operating expenses | |||||
General administration | 1,517,909 | 1,456,475 | 4,441,510 | 4,297,480 | |
Research and development | 247,811 | 188,751 | 652,623 | 563,166 | |
Selling and marketing | 671,361 | 916,970 | 2,335,335 | 2,605,645 | |
Total operating expenses before stock-based compensation | 2,437,081 | 2,562,196 | 7,429,468 | 7,466,291 | |
Stock-based compensation | 104,610 | 76,126 | 478,217 | 326,334 | |
Total operating expenses | 2,541,691 | 2,638,322 | 7,907,685 | 7,792,625 | |
Operating profit before other income (expense) | 49,753 | 375,117 | 542,491 | 367,338 | |
Other income (expense) | |||||
Patent litigation | 8 | - | (381,162) | - | (551,774) |
Interest expense | (130,688) | (30,183) | (221,991) | (110,154) | |
Foreign exchange gain (loss) | 64,013 | (43,733) | 51,668 | (32,951) | |
Gain (loss) on asset disposal | - | - | (2,877) | 154 | |
Gain on litigation settlement | - | 218,391 | - | 218,391 | |
Other expense | 20 | (11,020) | (620,392) | 232,720 | (620,392) |
Acquisition expense | 9 | (39,656) | 2,260 | (78,617) | (13,885) |
Total other income (expense) | (117,351) | (854,819) | (19,097) | (1,110,611) | |
Income (loss) before income taxes | (67,598) | (479,702) | 523,394 | (743,273) | |
Income tax recovery (expense) | 6,288 | (48,603) | 13,994 | (27,983) | |
Net income (loss) for the period | (61,310) | (528,305) | 537,388 | (771,256) | |
Other comprehensive income (loss) | |||||
Foreign currency translation | 118,613 | (40,449) | 29,464 | (10,619) | |
Comprehensive income (loss) | $57,303 | ($568,754) | $566,852 | ($781,875) | |
Basic earnings (loss) per share | 17 | ($0.00) | ($0.01) | $0.01 | ($0.02) |
Diluted earnings per share | 17 | N/A | N/A | $0.01 | N/A |
Weighted average number of common shares outstanding | 39,719,246 | 35,297,805 | 39,501,583 | 35,672,992 | |
Diluted average number of shares outstanding | N/A | N/A | 40,586,803 | N/A | |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
2
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Route1 Inc. published this content on 22 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 November 2021 23:18:07 UTC.