Certive Solutions Inc.
Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
As at and for the six-month period ended November 30, 2021
Page | |
CONSOLIDATED FINANCIAL STATEMENTS | |
Condensed Consolidated Interim Statements of Financial Position | 4 |
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss | 5 |
Condensed Consolidated Interim Statements of Cash Flows | 6 |
Condensed Consolidated Interim Statements of Changes in Equity | 7 |
Notes to the Condensed Consolidated Interim Financial Statements | 8 - 25 |
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No Auditor Review of the Condensed Consolidated Interim Financial Statements
The accompanying unaudited condensed consolidated interim financial statements of Certive Solutions Inc. (the "Company") as at and for the six-month period ended November 30, 2021 have been prepared by management and have not been the subject of a review by the Company's external independent auditors.
Certive Solutions Inc.
Vancouver, British Columbia
January 31, 2022
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Certive Solutions Inc.
Condensed consolidated interim statements of financial position as at: (Unaudited - Expressed in U.S. Dollars)
Note | November 30, 2021 | May 31, 2021 | |||
s | |||||
ASSETS | |||||
Current assets | |||||
Cash | $ | 4,936 | $ | 1,935 | |
Marketable securities | 4 | 17,412 | 36,785 | ||
Receivables | 5 | 353,816 | 404,091 | ||
Prepayments and other | 57,964 | 40,532 | |||
Total current assets | 434,128 | 483,343 | |||
Non-current assets | |||||
Receivable from sale of KCA | 6 | 91,052 | 95,801 | ||
Software development | 7 | 91,709 | 130,848 | ||
Total assets | $ | 616,889 | $ | 709,992 | |
LIABILITIES | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 8 | $ | 2,941,854 | $ | 2,618,380 |
Convertible debt | 11 | 4,914,156 | 4,237,090 | ||
Short term loans | 10 | 709,856 | 915,891 | ||
Note payable - current portion | 11 | 300,000 | 300,000 | ||
Derivative liability | 13 | 0 | 230,574 | ||
Total current liabilities | 8,865,866 | 8,301,935 | |||
Non-current liabilities | |||||
Note payable - long term portion | 11 | 150,000 | 150,000 | ||
Total liabilities | 9,015,866 | 8,451,935 | |||
Shareholders' deficit | |||||
Share capital | 12 | 24,311,081 | 24,311,081 | ||
Reserve - Transaction costs | (655,877) | (655,877) | |||
Reserve - Share options | 1,885,357 | 1,880,841 | |||
Reserve - Share warrants | 728,387 | 728,387 | |||
Contributed surplus | 766,829 | 766,829 | |||
Equity portion of convertible debt | 880,728 | 618,876 | |||
Deficit | (36,315,482) | (35,392,080) | |||
Total shareholders' deficit | (8,398,977) | (7,741,943) | |||
Total shareholders' deficit and liabilities | $ | 616,889 | $ | 709,992 | |
Nature of operations and going concern (Note 1) | |||||
Subsequent events (Note 19) |
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Certive Solutions Inc.
Condensed consolidated interim statements of loss and comprehensive loss for three and six-months ended: (Unaudited - Expressed in U.S. Dollars)
Notes | Three-months | Three-months | Six-months | Six-months | |||||
ended | ended | ended | ended | ||||||
November 30, | November 30, | November 30, | November 30, | ||||||
2021 | 2020 | 2021 | 2020 | ||||||
REVENUE | |||||||||
Lost charge recovery revenue | $ | 356,353 | $ | 419,005 | $ | 620,189 | $ | 841,902 | |
OPERATING COSTS | |||||||||
Commissions | 6,578 | 5,670 | 16,336 | 13,285 | |||||
Contractors and consulting fees | 12,000 | 13,000 | 24,450 | 25,580 | |||||
Direct payroll and employee benefits | 355,918 | 360,459 | 718,631 | 670,565 | |||||
License fees | - | - | 70 | 150 | |||||
Total operating costs | (374,496) | (379,129) | 759,487 | (709,580) | |||||
GROSS PROFIT | (18,143) | 39,876 | (139,298) | 132,322 | |||||
EXPENSES - SG&A | |||||||||
Amortization | 7 | 19,569 | 27,081 | 39,139 | 39,138 | ||||
Depreciation | - | - | - | 5,452 | |||||
Bad debt expense | 5 | 8,490 | 65,483 | 33,723 | 22,710 | ||||
Bank charges and interest | 219,623 | 197,595 | 419,295 | 383,706 | |||||
Consulting fees | 34,000 | 22,500 | 34,000 | 45,000 | |||||
Foreign exchange | (50,515) | 30,219 | (188,760) | 146,528 | |||||
General and administrative | 60,863 | 47,726 | 121,847 | 97,096 | |||||
Professional fees | 2,466 | 2,200 | 19,992 | 3,070 | |||||
Rent | 7,902 | 7,499 | 15,804 | 11,249 | |||||
Salaries and wages | 14 | 225,841 | 236,053 | 446,907 | 478,686 | ||||
Sales and marketing | 3,109 | 8,224 | 12,794 | 16,189 | |||||
Share-based compensation | 12 | 2,788 | 2,259 | 4,516 | 4,519 | ||||
Transfer agent and filing fees | 17,935 | 10,779 | 37,413 | 17,789 | |||||
Travel and promotion | 629 | 1,117 | 629 | 1,863 | |||||
Total expenses - SG&A | (552,700) | (658,735) | (997,297) | (1,272,995) | |||||
Loss from operations | (570,843) | (618,859) | (1,136,595) | (1,140,673) | |||||
Derivative (expense) recovery | 13 | 184,619 | (478) | 230,574 | (20,180) | ||||
Unrealized gain (loss) on marketable | |||||||||
securities | 4 | (13,557) | (859) | (21,829) | (1,167) | ||||
PPP loan forgiveness | - | 370,702 | - | 373,910 | |||||
Recovery of accounts payable | - | 11,835 | 4,448 | 18,335 | |||||
Recovery of rent expense | - | - | - | 1,552 | |||||
Other income, net | 171,062 | 381,200 | 213,193 | 372,450 | |||||
Net loss and comprehensive loss for | |||||||||
the period | $ | (399,781) | $ | (237,659) | $ | (923,402) | $ | (768,223) | |
Basic and diluted loss per common | |||||||||
share | $ | (0.00) | $ | (0.00) | $ | (0.01) | $ | (0.01) | |
Weighted average number of common | |||||||||
shares outstanding | 144,404,692 | 139,552,114 | 144,404,692 | 139,167,422 |
The accompanying notes are an integral part of these condensed consolidated interim financial statement. 5
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