SHIFTCARBON INC. TraceSafe Inc.
Unaudited Condensed Consolidated Interim Financial Statements
For the nine months ended September 30, 2021 and 2020 (Expressed in United States dollars unless otherwise stated)
NOTICE TO READER
Under National Instrument 51-102, if an auditor has not performed a review of the interim 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 financial statements have been prepared by management and were not reviewed by the Company's independent auditor.
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TraceSafe Inc.
Condensed Consolidated Balance Sheets (Expressed in US Dollars - unaudited)
September 30 | September 30 | |||
2021 | 2020 | |||
Assets | ||||
Current assets | ||||
Cash | $ | 1,557,251 | $ | 394,560 |
Receivables | 1,325,592 | 1,171,511 | ||
Prepaid expenses | 90,892 | 891,756 | ||
2,973,735 | 2,457,827 | |||
Fixed assets | 34,746 | - | ||
Research & Development (Note 5) | - | 489,024 | ||
Investments | 4,070,233 | 1,182,000 | ||
Goodwill | 3,650,355 | - | ||
$ | 10,729,069 | $ | 4,128,851 | |
Liabilities | ||||
Current liabilities | ||||
Payables | $ | 1,963,925 | $ | 726,919 |
Accrued expenses | 641,910 | - | ||
Deferred revenue | 354,273 | 30,000 | ||
Accounts receivable factoring (Note 7) | 937,226 | - | ||
Notes Payable (Note 9) | 347,825 | - | ||
4,245,159 | 756,919 | |||
Shareholders' equity | ||||
Share capital (Note 3) | 19,421,094 | 13,943,068 | ||
Warrant and option reserve | 1,286,206 | 3,740,056 | ||
Equity attributable to non-controlling interest | 3,514,415 | - | ||
Contributed surplus | 820,690 | - | ||
Accumulated other comprehensive earnings | (31,828) | (34,797) | ||
Retained earnings | (18,526,666) | (14,276,395) | ||
6,483,910 | 3,371,932 | |||
$ | 10,731,206 | $ | 4,128,851 |
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TraceSafe Inc.
Condensed Consolidated Statements of Earnings and Comprehensive Loss (Expressed in US Dollars - unaudited)
July 1 to September 30 | January 1 to September 30 | |||
2021 | 2020 | 2021 | 2020 | |
Revenue | ||||
Product sale | $ 5,385,642 | $ 1,085,291 | $ 9,075,578 | $ 1,601,565 |
Service income | 578,981 | - | 1,575,529 | - |
Cost of revenue | 5,964,623 | 1,085,291 | 10,651,107 | - |
3,441,996 | 637,034 | 7,592,089 | 959,135 | |
Operating expenses | 2,522,627 | 448,257 | 3,059,018 | 642,430 |
Bad debt expense | 1,460 | - | 6,460 | - |
Bank charges | 8,856 | 3,188 | 16,223 | 6,289 |
Depreciation | 2,206 | - | 4,646 | - |
Development | 521,692 | (281,551) | 1,466,730 | 45,504 |
General and administration (Note 6) | 186,896 | 93,917 | 569,138 | 148,683 |
Marketing | 44,411 | - | 168,286 | - |
Personnel, payroll, and consultants | 926,426 | 278,920 | 2,824,865 | 199,673 |
Professional fees (Recovery) (Note 10) | (438,750) | 549,302 | 93,731 | 1,331,870 |
Regulatory and transfer agent fees | 2,756 | 7,120 | 25,830 | 28,886 |
Stock-based compensation | 127,980 | 227,347 | 2,254,266 | 892,985 |
1,383,933 | 878,243 | 7,430,176 | 2,689,042 | |
Operating Income (Loss) | 1,138,694 | (429,986) | (4,371,158) | (2,046,612) |
Other items | ||||
Other income | - | - | (11,891) | - |
Interest (Note 11) | 164,575 | 86,863 | 408,291 | 255,426 |
Tax | (20,980) | - | 39,308 | - |
Foreign exchange | (10,623) | (5,508) | 12,069 | (2,456) |
Net income (Loss) | $1,061,630 | $(511,341) | $ (4,763,027) | $ (2,299,582) |
Net income (Loss) attributed to parent | 1,224,836 | (940,397) | (2,053,199) | (2,229,582) |
Net income (Loss) attributed to non- | ||||
controlling interest | (219,113) | (2,765,735) | - | |
Total comprehensive income (Loss) | $ 1,061,630 | $ (511,341) | $ (4,763,027) | $ (2,229,582) |
Earnings (Loss) per share attributed to | ||||
owners of the parent. Basic and diluted | $ 0.03 | $ (0.02) | $ (0.05) | $ (0.08) |
Weighted average number of shares | ||||
outstanding. Basic and diluted | 44,911,641 | 33,767,168 | 42,040,252 | 28,741,435 |
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TraceSafe Inc.
Condensed Consolidated Statements of Changes in Shareholders' Equity (Expressed in US Dollars - unaudited)
July 1 to September 30 | January 1 to September 30 | |||
2021 | 2020 | 2021 | 2020 | |
Share Capital | ||||
Balance - beginning of period | $ 21,616,364 | $ 12,355,667 | $16,540,138 | $ 11,137,327 |
Issuance of shares by warrants | - | - | 2,750,788 | 246,454 |
Issuance of shares by options | - | 1,587,401 | 212,095 | 1,567,397 |
Issuance of shares for performance | - | - | 2,113,343 | 665,638 |
Issuance of shares for service | 87,900 | - | 87,900 | - |
Repurchase of common shares | - | - | - | - |
Balance - end of period | $ 21,704,264 | $ 13,943,068 | $21,704,264 | $ 13,943,068 |
Retained Earnings | ||||
Balance - beginning of period | $ (21,741,314) | $ (13,750,593) | $ (15,916,656) | $ (11,976,813) |
Net income (Loss) | 1,005,722 | (525,802) | (4,818,935) | (2,299,582) |
Balance - end of period | (20,735,591) | (14,276,395) | (20,735,591) | (14,276,395) |
Adjustment for non-controlling | ||||
interest | (6,665,482) | - | (6,665,482) | - |
Net retained earnings for owners of | ||||
parent company | $ (27,401,074) | $ (14,276,395) | $ (27,401,074) | $ (14,276,395) |
Number of Shares Outstanding | ||||
Balance - beginning of period | 44,716,888 | 31,287,421 | 35,765,784 | 22,238,031 |
Issuance of shares by warrants | - | - | 5,828,850 | 1,097,213 |
Issuance of shares by options | - | 4,153,850 | 572,254 | 10,426,027 |
Issuance of shares for performance | - | - | 2,550,000 | 1,700,000 |
Issuance of shares for service | 194,753 | - | 194,753 | - |
Repurchase of common shares | - | - | - | - |
Balance - end of period | 44,911,641 | 35,441,271 | 44,911,641 | 35,441,271 |
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TraceSafe Inc.
Condensed Consolidated Statements of Cash Flows (Expressed in US Dollars - unaudited)
July 1 to September 30 | January 1 to September 30 | |||
2021 | 2020 | 2021 | 2020 | |
Operating activities | ||||
Net income (Loss) | $ 1,005,722 | $ (525,801) | $ (4,818,965) | $ (2,299,582) |
Changes in working capital | ||||
Accounts Receivable | 1,509,923 | (705,541) | 518,679 | (1,170,315) |
Prepaid | 80,049 | (835,388) | 731,988 | (868,689) |
Depreciation | 2,201 | - | 75,774 | - |
Accounts Payable | (104,339) | (244,344) | 836,110 | 581,558 |
A/R Factoring Payable | 151,635 | - | (530,559) | - |
Accrued Liabilities | 492,065 | - | 408,068 | - |
Loan Payable | - | - | 110,000 | - |
Deferred Revenue | (2,470,555) | 30,000 | 300,355 | 30,000 |
Share based compensation | - | 892,985 | - | 892,985 |
666,701 | (1,388,089) | (2,368,551) | (2,834,043) | |
Financing activities | ||||
Common Stock | 87,900 | 2,017,339 | 5,164,127 | 3,235,679.00 |
Stock Options | - | - | (2,151,831) | - |
Convertible Debenture | - | - | - | 781,229 |
Notes Payable | 146,230 | - | 347,825 | - |
234,131 | 2,017,339 | 3,360,121 | 4,016,908 | |
Investing activities | ||||
Acquisition of TraceSafe Technology | - | - | - | (300,000) |
Fixed Assets | (8,302) | (489,024) | (39,746) | (489,024) |
(8,302) | (489,024) | (39,746) | (789,024) | |
Change in cash | 892,531 | 140,226 | 951,825 | 393,841 |
Cash - beginning of period | 664,720 | 254,334 | 605,426 | 719 |
Cash - end of period | $ 1,557,251 | $ 394,560 | $ 1,557,251 | $ 394,560 |
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TraceSafe Inc. published this content on 09 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2021 12:33:04 UTC.
