WAVEFRONT TECHNOLOGY SOLUTIONS INC. Unaudited Condensed Consolidated Interim Financial Statements of
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
Three months ended November 30, 2021 and 2020
TABLE OF CONTENTS
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS | ||
Condensed consolidated interim statements of financial position | 1 | |
Condensed consolidated interim statements of net loss and comprehensive loss | 2 | |
Condensed consolidated interim statements of changes in shareholders' equity | 3 | |
Condensed consolidated interim statements of cash flows | 4 | |
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANICAL STATEMENTS | ||
Note 1 Nature of operations and corporate information | 5 | |
Note 2 Statement of compliance and going concern | 5 | |
Note 3 | Property, plant and equipment | 8 |
Note 4 Right-of-use assets and lease liabilities | 9 | |
Note 5 | Share capital | 10 |
Note 6 | Government assistance | 13 |
Note 7 | Loss per share | 13 |
Note 8 | Financial instruments | 14 |
Note 9 | Segmented information | 17 |
NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS
In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company is disclosing that its auditors have not reviewed the unaudited condensed consolidated interim financial statements for the periods ended November 30, 2021 and 2020.
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
Condensed Consolidated Interim Statements of Financial Position As at November 30, 2021 and August 31, 2021
(Canadian dollars) (Unaudited)
November 30, | August 31, | |||||||
ASSETS | Note | 2021 | 2021 | |||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 1,468,863 | $ | 1,201,893 | ||||
Trade and other receivables | 280,078 | 193,604 | ||||||
Inventories | 52,252 | 52,428 | ||||||
Prepaid expenses and other current assets | 137,616 | 58,855 | ||||||
TOTAL CURRENT ASSETS | 1,938,809 | 1,506,780 | ||||||
NON-CURRENT ASSETS | ||||||||
Deposits | 14,150 | 14,150 | ||||||
Property, plant and equipment | 3 | 414,164 | 439,631 | |||||
Right-of-use assets | 4 | 433,896 | 459,929 | |||||
TOTAL ASSETS | $ | 2,801,019 | $ | 2,420,490 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Unearned revenue | 56,660 | 78,041 | ||||||
Trade accounts payable and accrued liabilities | 718,125 | 490,985 | ||||||
Lease liabilities | 4 | 98,457 | 97,248 | |||||
TOTAL CURRENT LIABILITIES | 873,242 | 666,274 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Other accrued liabilities | 4 | 18,785 | 20,268 | |||||
Lease liabilities | 4 | 373,409 | 398,481 | |||||
TOTAL LIABILITIES | 1,265,436 | 1,085,023 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Share capital | 5 b | 68,383,516 | 67,299,083 | |||||
Warrants | 5 c | 67,737 | 467,716 | |||||
Contributed surplus | 5 e | 9,550,342 | 9,463,336 | |||||
Accumulated other comprehensive income | 567,308 | 565,366 | ||||||
Deficit | (77,033,320) | (76,460,034) | ||||||
1,535,583 | 1,335,467 | |||||||
$ | 2,801,019 | $ | 2,420,490 | |||||
Going concern | 2 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 1 of 18
WAVEFRONT TECHNOLOGY SOLUTIONS INC. Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss
Three month periods ended November 30, 2021 and 2020
(Canadian dollars) (Unaudited)
November 30, | November 30, | ||||||
Note | 2021 | 2020 | |||||
Revenue | $ | 427,631 | $ | 445,760 | |||
Cost of sales | 21,993 | 18,442 | |||||
Gross Profit | 405,638 | 427,318 | |||||
General and administrative | 723,056 | 601,943 | |||||
Sales and marketing | 198,973 | 115,257 | |||||
Amortization and depreciation | 3, 4, 5 | 52,273 | 78,289 | ||||
Research and development | 15,175 | 39,004 | |||||
989,477 | 834,493 | ||||||
OPERATING LOSS | (583,839) | (407,175) | |||||
OTHER INCOME (EXPENSES) | |||||||
Financing costs | (6,482) | (1,458) | |||||
Government grants | 6 | 15,269 | 49,643 | ||||
Financing income | 729 | 9,894 | |||||
Foreign exchange gain | 1,037 | 1,576 | |||||
10,553 | 59,655 | ||||||
NET LOSS | (573,286) | (347,520) | |||||
OTHER COMPREHENSIVE INCOME GAIN (LOSS) | |||||||
Items that may be reclassified subsequently to net loss | |||||||
Translation gain (loss) on foreign operations | 1,942 | (304) | |||||
COMPREHENSIVE LOSS | $ | (571,344) | $ | (347,824) | |||
WEIGHTED AVERAGE NUMBER OF SHARES | |||||||
Basic and diluted | 7 | 88,434,782 | 87,572,573 | ||||
LOSS PER COMMON SHARE | |||||||
Basic and diluted | 7 | $ | (0.006) | $ | (0.004) |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 2 of 18
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity Three month periods ended November 30, 2021 and 2020
(Canadian dollars) (Unaudited)
Accumulated | |||||||||||||||||
Share | other comprehensive | ||||||||||||||||
capital | Warrants | Contributed surplus | (loss) income | Deficit | Total | ||||||||||||
Balance at August 31, 2020 | 67,299,083 | 467,716 | 9,414,471 | 567,152 | (75,085,677) | $ | 2,662,745 | ||||||||||
Net Loss | - | - | - | - | (347,520) | (347,520) | |||||||||||
Translation loss on foreign operations | - | - | - | (304) | - | (304) | |||||||||||
Balance at November 30, 2020 | 67,299,083 | 467,716 | 9,414,471 | 566,848 | (75,433,197) | 2,314,921 | |||||||||||
Net Income | - | - | - | - | (1,026,837) | (1,026,837) | |||||||||||
Translation loss on foreign operations | - | - | - | (1,482) | - | (1,482) | |||||||||||
Recognition of share-based payments | - | - | 48,865 | - | - | 48,865 | |||||||||||
Balance at August 31, 2021 | 67,299,083 | 467,716 | 9,463,336 | 565,366 | (76,460,034) | 1,335,467 | |||||||||||
Net Loss | - | - | - | - | (573,286) | (573,286) | |||||||||||
Translation gain on foreign operations | - | - | - | 1,942 | - | 1,942 | |||||||||||
Exercise of share purchase warrants | 1,054,806 | (370,352) | - | - | - | 684,454 | |||||||||||
Expiry of share purchase warrants | 29,627 | (29,627) | - | - | - | - | |||||||||||
Recognition of share-based payments | - | - | 87,006 | - | - | 87,006 | |||||||||||
Balance at November 30, 2021 | $ | 68,383,516 | $ | 67,737 | $ | 9,550,342 | $ | 567,308 | $ | (77,033,320) | $ | 1,535,583 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 3 of 18
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
Condensed Consolidated Interim Statements of Cash Flows
Three month periods ended November 30, 2021 and 2020
(Canadian dollars) (Unaudited)
Note | November 30, | November 30, | |||||||
2021 | 2020 | ||||||||
OPERATING ACTIVITIES | $ | (573,286) | $ | (347,520) | |||||
Net loss | |||||||||
Changes to net loss not involving cash | 5 d | 87,006 | - | ||||||
Share-based payments | |||||||||
Amortization and depreciation | 3, 4 | 52,273 | 78,289 | ||||||
Loss on disposal of property, plant and equipment | 1,546 | - | |||||||
Impact of foreign translation | (455) | 936 | |||||||
Interest expense | (6,482) | (1,458) | |||||||
Changes to working capital | 225,658 | 102,464 | |||||||
Change in trade and other payables | |||||||||
Interest paid | 6,482 | 1,458 | |||||||
Change in inventory | 176 | 14,330 | |||||||
Change in unearned revenue | (21,381) | 27,584 | |||||||
Change in prepaid expenses | (78,761) | (91,404) | |||||||
Change in trade and other receivables | (86,474) | 124,464 | |||||||
Cash used in operating activities | (393,698) | (90,857) | |||||||
FINANCING ACTIVITIES | 4 | (23,864) | (38,363) | ||||||
Payment for the principal portion of lease liability | |||||||||
Net proceeds from share purchase warrant exercise | 684,454 | - | |||||||
Cash used in financing activities | 660,590 | (38,363) | |||||||
INVESTING ACTIVITIES | (2,026) | (9,721) | |||||||
Purchase of property, plant and equipment | 3 | ||||||||
Cash used in investing activities | (2,026) | (9,721) | |||||||
Foreign exchange gain (loss) on cash held in foreign currency | 2,104 | (1,084) | |||||||
NET DECREASE IN CASH AND CASH | 266,970 | (140,025) | |||||||
EQUIVALENTS | |||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,201,893 | 1,817,671 | |||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 1,468,863 | $ | 1,677,646 | |||||
CASH AND CASH EQUIVALENTS | $ | 1,269,733 | $ | 1,426,871 | |||||
Cash denominated in CDN | |||||||||
Cash denominated in USD | 155,668 | 193,425 | |||||||
Foreign currency translation amount | 43,462 | 57,350 | |||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 1,468,863 | $ | 1,677,646 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 4 of 18
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Wavefront Technology Solutions Inc. published this content on 29 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 January 2022 01:50:02 UTC.
