YANGAROO Inc.

Condensed Interim Financial Statements

For the Three and Six Months Ended June 30, 2022 and 2021

(Expressed in US Dollars)

(Unaudited)

YANGAROO Inc.

Condensed Interim Statements of Financial Position (Unaudited) (Expressed in US dollars)

As at

June 30

December 31

2022

2021

(see Note 3)

Assets

Current

$

607,289

Cash

$

768,251

Accounts receivable

1,611,016

1,737,028

Prepaid and sundry assets

535,978

427,720

Contract assets

98,390

90,730

Non-current

2,852,673

3,023,729

528,561

Property and equipment (note 6)

682,066

Intangible assets (note 7)

1,541,930

1,403,582

Goodwill (note 8)

3,845,576

3,845,576

$

8,768,740

$

8,954,953

Liabilities

Current

$

945,363

Trade and other payables (note 9)

$

851,026

Contract liabilities

105,407

68,000

Line of Credit (note 11)

931,819

-

Current portion of lease obligations (note 10)

224,138

275,522

Current portion of term loan facility (note 11)

2,163,836

420,215

Current portion of contingent consideration (note 5)

-

497,108

4,370,562

2,111,871

Non-current

151,376

Lease obligations (note 10)

255,063

Term loan facility (note 11)

-

2,004,037

Contingent consideration (note 5)

-

1,616,780

4,521,938

5,987,751

Equity

27,811,885

Share capital (note 12)

27,554,260

Share based payment reserve

5,979,670

6,149,388

Currency translation reserve

1,157,622

1,157,622

Deficit

(30,702,376)

(31,894,068)

4,246,801

2,967,202

$

8,678,740

$

8,954,953

Commitments and contingencies (note 18)

Subsequent event (note 19)

Approved by the Board of Directors

"Anthony Miller"

"Phil Benson"

Director

Director

See accompanying notes, which are an integral part of these condensed interim financial statements

1

YANGAROO Inc.

Condensed Interim Statements of Net (Loss) Income and Comprehensive (Loss) Income (Unaudited) Six Months Ended June 30, 2022 and 2021

(Expressed in US dollars)

Three Months Ended June 30

Six Months Ended June 30

2022

2021 (see

2022

2021 (see

Note 3)

Note 3)

Revenue (note 15)

$

1,915,307

$

1,759,691

$

3,904,350

$

2,992,006

Expenses

1,507,823

3,304,361

Salaries and consulting (notes 13, 16 & 17)

986,100

1,754,389

Marketing and promotion

57,869

24,740

134,872

30,958

General and administrative

223,069

144,709

427,962

192,639

Technology development

173,121

80,242

382,100

139,076

Depreciation and amortization of long-term

203,740

408,563

assets (note 6 & 7)

114,823

166,395

Acquisition fees (note 5)

-

309,362

-

309,362

Restructuring expense

93,564

-

93,564

-

2,259,186

1,659,976

4,751,422

2,592,819

(Loss) income from operations

(343,879)

99,715

(847,072)

399,187

Other (expenses) income

18

41

Interest income

34

617

Interest expense

(54,161)

(25,937)

(106,760)

(28,095)

Foreign exchange gain (loss)

73,401

(122,081)

31,596

(153,395)

Fair value gain on contingent consideration

2,113,887

2,113,887

(note 5)

-

-

2,133,145

(147,984)

2,038,764

(180,873)

Net (loss) income before income tax

1,789,266

(48,269)

1,191,692

218,314

Income tax expense

-

-

-

-

Total net and comprehensive (loss)

income

$

1,789,266

$

(48,269)

$

1,191,692

$

218,314

Basic income per share (note 14)

$

0.03

$

(0.00)

$

0.02

$

0.00

Diluted income per share (note 14)

$

0.03

$

(0.00)

$

0.02

$

0.00

See accompanying notes, which are an integral part of these condensed interim financial statements

2

YANGAROO Inc.

Condensed Interim Statements of Changes in Equity (Unaudited) Six months ended June 30, 2022 and 2021

(Expressed in US dollars)

Share-based

Foreign

Number of

Share

Currency

Deficit

Total

payments

Shares

Capital

Translation

reserve

Reserve

Balance at December 31,

60,472,140

$27,520,839

$5,982,586

$

-

$(31,840,138)

$1,663,287

2020 (see Note 3)

Share-based payments (note

-

-

11,167

-

-

11,167

13)

-

Exercise of options (note 12)

27,000

5,665

(2,600)

-

3,065

Net income for the period

-

-

-

-

218,314

218,314

Balance at June 30, 2021

60,499,140

$27,526,504

$5,991,153

$

-

$(31,621,824)

$1,895,833

Balance at December 31,

60,697,140

$27,554,260

$6,149,388

$

1,157,622

$(31,894,068)

$2,967,202

2021

Share-based payments (note

-

-

42,318

-

-

42,318

13)

Exercise of options (note 12)

580,000

74,423

(28,834)

-

-

45,589

Exercise of RSUs (note 12)

1,010,000

183,202

(183,202)

-

-

Net income for the period

-

-

-

-

1,191,692

1,191,692

Balance at June 30, 2022

62,287,140

$27,811,885

$5,979,670

$

1,157,622

$(30,702,376)

$4,246,801

See accompanying notes, which are an integral part of these condensed interim financial statements

3

YANGAROO Inc.

Condensed Interim Statements of Cash Flows (Unaudited) Six months ended June 30, 2022 and 2021 (Expressed in US dollars)

Six Months Ended June 30

2022

2021

(see Note 3)

Cash flow from (used in) operating activities

$

1,191,692

Net income for the period

$

218,314

Items not affecting cash:

Depreciation of property and equipment and amortization of

408,563

d intangible assets (note 6 and 7)

166,395

Amortization of deferred financing costs

39,982

7,821

Expected credit loss (recovery) expense and write-off of account

(6,891)

(40,793)

xxreceivables

Accrued severance payable

-

(206,173)

Share-based payments (note 13)

42,345

11,239

Fair value gain on contingent consideration (note 5)

(2,113,888)

-

Changes in non-cash operating working capital:

132,903

Accounts receivable

194,117

Prepaid and sundry assets

(108,258)

(93,874)

Contract assets

(7,660)

1,589

Trade and other payables

94,337

139,816

Contract liabilities

37,407

113,855

Net cash from (used in) operating activities

(289,468)

512,306

Cash flow used in investing activities

(64,757)

Acquisition of property and equipment (note 6)

(83,942)

Additions to product development assets (note 7)

(328,632)

(332,343)

Acquisition of Digital Media Services (note 5)

-

(3,105,048)

Net cash used in investing activities

(393,389)

(3,521,333)

Cash flow from financing activities

(165,197)

Payment of lease obligations (note 10)

(55,906)

Proceeds from (repayment of) term loan

(233,531)

2,488,249

Exercise of options (note 12)

45,587

3,009

Proceeds from line of credit (note 11)

931,819

-

Net cash from financing activities

578,678

2,435,352

Net (decrease) in cash

(104,179)

(573,675)

Effect of foreign exchange on cash

(56,783)

148,205

Cash and cash equivalents, beginning of period

768,251

1,461,870

Cash and cash equivalents, end of period

$

607,289

$

1,036,400

Cash interest paid

$

107,239

$

27,722

See accompanying notes, which are an integral part of these condensed interim financial statements

4

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Yangaroo Inc. published this content on 30 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2022 14:09:07 UTC.