Wishpond Technologies : Q2 2022 Financial Statements

Wishpond Technologies Ltd.

Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2022

Expressed in Canadian Dollars

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsubsection 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 financial statements have not been reviewed by an auditor.

The accompanying condensed interim consolidated financial statements of Wishpond Technologies Ltd. have been prepared by and are the responsibility of the Company's management.

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

Vancouver, British Columbia

August 22, 2022

Wishpond Technologies Ltd.

Consolidated Statements of Loss and Comprehensive Loss

(Expressed in Canadian Dollars except shares amounts or stated otherwise, unaudited)

	For the three months ended	For the six months ended
	June 30,	June 30,	June 30,	June 30,
	2022	2021	2022	2021
	$	$	$	$
Revenue (Note 6)	5,007,343	3,226,877	9,085,660	6,117,457
Cost of sales	1,646,628	988,734	3,188,750	2,082,378
Gross profit	3,360,715	2,238,143	5,896,910	4,035,079
Operating expenses
General and administrative expenses (Note 7)	2,660,315	1,912,696	5,007,866	3,487,685
Depreciation and amortization	328,673	199,919	595,970	359,020
Sales and marketing	892,596	645,474	1,521,759	1,186,200
Stock-based compensation (Note 13 & 14)	137,843	573,610	494,288	1,135,553
Total operating expenses	4,019,427	3,331,699	7,619,883	6,168,458
Operating loss	(658,712)	(1,093,556)	(1,722,973)	(2,133,379)
Interest income	(730)	-	(3,456)	-
Interest expense	-	2,520	-	6,104
Earn-out remuneration	-	52,266	-	52,266
Remeasurement of contingent consideration	73,423	234,933	8,515	234,933
liability
Other expenses (Note 8)	123,660	134,483	275,762	285,845
Loss before income taxes	(855,065)	(1,517,758)	(2,003,794)	(2,712,527)
Income tax recovery	(15,607)	-	(31,214)	-
Net loss for the period	(839,458)	(1,517,758)	(1,972,580)	(2,712,527)
Other comprehensive loss
Exchange difference on translation of foreign	161,182	-	110,980	-
operations
Total comprehensive loss for the period	(1,000,640)	(1,517,758)	(2,083,560)	(2,712,527)
Weighted average number of common
shares outstanding
Basic and diluted	52,034,168	51,784,302	51,901,426	50,482,009
Loss per share - Basic and diluted	$(0.02)	$(0.03)	$(0.04)	$(0.05)

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

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Wishpond Technologies Ltd.

Consolidated Statements of Financial Position

(Expressed in Canadian Dollars except shares amounts or stated otherwise, unaudited)

		As at June 30,	As at December 31,
		2022	2021
		$	$
Assets
Current
Cash	2,484,878	6,242,453
Short-term investments	170,000	170,000
Accounts and other receivables (Note 9)	296,297	169,662
Prepaid expenses	328,487	358,870
Investment tax credit recoverable	-	209,372
Total current assets	3,279,662	7,150,357
Property and equipment (Note 11)	38,258	29,993
Intangible assets (Note 12)	8,703,035	6,768,543
Goodwill (Note 12)	3,916,669	2,797,004
Other assets	-	47,589
Total assets	15,937,624	16,793,486
Liabilities and shareholders' equity
Liabilities
Current
Accounts payable and accrued liabilities (Note 10)	2,022,158	1,232,444
Deferred revenue	2,392,298	2,841,894
Contingent consideration liability (Note 4)	2,366,629	2,529,186
Total current liabilities	6,781,085	6,603,524
Income taxes payable	133,746	133,746
Deferred tax liability (Note 4)	352,991	384,205
Other liabilities	9,376	-
Total liabilities	7,277,198	7,121,475
Shareholders' equity
Share capital (Note 13)	19,980,874	19,250,845
Contributed surplus	3,360,615	2,866,510
Accumulated other comprehensive loss	(110,980)	-
Accumulated deficit	(14,570,083)	(12,445,344)
Total shareholders' equity	8,660,426	9,672,011
Total shareholders' equity and liabilities		15,937,624	16,793,486

Nature of operations and going concern (Note 1)

Events after the reporting period (Note 19)

Approved by the Directors:

"Ali Tajskandar"	"Olivier Vincent"
Director	Director

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

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Wishpond Technologies Ltd.

Consolidated Statements of Changes in Shareholders' Equity

(Expressed in Canadian Dollars except shares amounts or stated otherwise, unaudited)

		Number of	Share capital	Accumulated	Accumulated	Contributed	Total
		shares		other	deficit	surplus	Shareholders'
			comprehensive			equity
				loss
		#	$	$	$	$	$
Balance at January 1, 2021	46,169,150	11,062,775	-	(7,404,719)	400,752	4,058,808
Stock-based compensation	-	-	-	-	1,135,553	1,135,553
Common shares issued for bought deal financing,
net of issuance costs (Note 13)	4,600,000	6,913,336	-	-	268,526	7,181,862
Common shares issued for acquisition of PersistIQ	663,388	1,001,821	-	-	-	1,001,821
Common shares issued from exercise of warrants	318,391	238,044	-	-	-	238,044
Common shares issued from exercise of options	56,870	27,906	-	-	(1,464)	26,442
Net loss and comprehensive loss for the period	-	-	-	(2,712,527)	-	(2,712,527)
Balance at June 30, 2021		51,807,799	19,243,882	- (10,117,246)	1,803,367	10,930,003
Balance at January 1, 2022	51,766,291	19,250,845	-	(12,445,344)	2,866,510	9,672,011
Stock-based compensation	-	-	-	-	494,288	494,288
Common shares issued from exercise of options	12,800	823	-	-	(183)	640
Common shares purchased and cancelled (Note 13)	(130,100)	(5,104)	-	(152,159)	-	(157,263)
Foreign currency translations of subsidiaries	-	-	(110,980)	-	-	(110,980)
Common shares issued from earn-out payments	617,341	734,310	-	-	-	734,310
Net loss for the period	-	-	-	(1,972,580)	-	(1,972,580)
Balance at June 30, 2022	52,266,332	19,980,874	(110,980)	(14,570,083)	3,360,615	8,660,426

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

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