Jayden Resources Inc.
Unaudited Interim Condensed
Consolidated Financial Statements
For the nine months ended September
30, 2024 and 2023
Address: | Suite #2250, 1055 West Hastings Street |
Vancouver, British Columbia | |
V6E 2E9 | |
Contact: | Herrick Lau |
Chief Financial Officer | |
Telephone number: | (604) 688-9588 |
Fax number: | (778) 329-9361 |
Email address: | hlau@jaydenresources.com |
Website: | www.jaydenresources.com |
Contents
Page | |
Management's Responsibility | 2 |
Interim Condensed Consolidated Statements of Profit and Loss | 3 |
Interim Condensed Consolidated Statements of Financial Position | 4 |
Interim Condensed Consolidated Statements of Changes in Equity | 5 |
Interim Condensed Consolidated Statements of Cash Flows | 6 |
Notes to the Interim Condensed Consolidated Financial Statements | 7-17 |
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NOTICE OF NO AUDITOR REVIEW OF
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying unaudited interim condensed consolidated financial statements of Jayden Resources Inc. for the nine months ended September 30, 2024 have been prepared by the management of the Company and approved by the Company's Audit Committee and the Company's Board of Directors.
Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the interim condensed consolidated financial statements, they must be accompanied by a notice indication that an auditor has not reviewed the interim condensed consolidated interim financial statements.
The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these interim condensed consolidated financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of the interim condensed consolidated financial statements by an entity's auditor.
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Jayden Resources Inc.
Interim Condensed Consolidated Statements of Loss For the nine months ended September 30, 2024 and 2023 (Unaudited - Expressed in Canadian dollars)
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
Notes | 2024 | 2023 | 2024 | 2023 | ||||||
Expenses | ||||||||||
Administrative expenses | 4 | $ | (123,643) | $ | (185,796) | $ | (417,005) | $ | (484,891) | |
Operating loss for the period | (123,643) | (185,796) | (417,005) | (484,891) | ||||||
Other income (loss) | ||||||||||
Interest income | 925 | 1,894 | 8,680 | 1,894 | ||||||
Realized loss on disposal of marketable securities | 5 | - | - | (17,685) | - | |||||
Unrealized gain on marketable securities | 5 | - | (30,375) | - | (22,875) | |||||
Other income (loss) for the period | 925 | (28,481) | (9,005) | (20,981) | ||||||
Loss from continuing operations | $ | (122,718) | $ | (214,277) | $ | (426,010) | $ | (505,872) | ||
Other loss | 9 | - | - | - | (544,000) | |||||
Net loss | $ | (122,718) | $ | (214,277) | $ | (426,010) | $ | (1,049,872) | ||
Loss per share | ||||||||||
- Basic and diluted | $ | (0.00) | $ | (0.00) | $ | (0.01) | $ | (0.02) | ||
Weighted average number of common shares outstanding | ||||||||||
- Basic and diluted | 58,517,849 | 58,517,849 | 58,517,849 | 58,517,849 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
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Jayden Resources Inc.
Interim Condensed Consolidated Statements of Financial Position As at September 30, 2024 and December 31, 2023
(Unaudited - Expressed in Canadian dollars)
September 30, | December 31, | ||
Notes | 2024 | 2023 | |
$ | $ | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | 45,560 | 392,502 | |
Other receivables | 8,549 | 12,810 | |
Prepaid expenses | 16,054 | 11,637 | |
Marketable securities | 5 | - | 40,000 |
70,163 | 456,949 | ||
Non-current assets | |||
Exploration and evaluation assets | 6 | 7,319,277 | 7,261,908 |
7,319,277 | 7,261,908 | ||
Total Assets | 7,389,440 | 7,718,857 | |
Liabilities and Shareholders' Equity | |||
Current liabilities | |||
Account payable and accrued liabilities | 8 | 346,678 | 250,085 |
Total Liabilities | 346,678 | 250,085 | |
Shareholders' Equity | |||
Share capital | 7 | 56,531,433 | 56,531,433 |
Reserves | 2,315,132 | 2,315,132 | |
Accumulated deficit | (51,803,803) | (51,377,793) | |
Total equity | 7,042,762 | 7,468,772 | |
Total Liabilities and Shareholders' Equity | 7,389,440 | 7,718,857 | |
(Nature of operations and going concern - Note 1) |
Approved on Behalf of the Board
"Denise Lok" Director
Denise Lok
"Queenie Kuang" Director
Queenie Kuang
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
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Jayden Resources Inc.
Interim Condensed Consolidated Statements of Changes in Equity For the nine months ended September 30, 2024 and 2023 (Unaudited - Expressed in Canadian dollars, except per share values)
Number of | Share-based | ||||
issued | Share | payments | Accumulated | ||
shares | capital | reserve | deficit | Total | |
$ | $ | $ | $ | ||
Balances, January 1, 2023 | 58,517,849 | 56,531,433 | 2,315,132 | (50,214,458) | 8,632,107 |
Loss for the period | - | - | - | (1,049,872) | (1,049,872) |
Balances, September 30, 2023 | 58,517,849 | 56,531,433 | 2,315,132 | (51,264,330) | 7,582,235 |
Balances, January 1, 2024 | 58,517,849 | 56,531,433 | 2,315,132 | (51,377,793) | 7,468,772 |
Loss for the period | - | - | - | (426,010) | (426,010) |
Balances, September 30, 2024 | 58,517,849 | 56,531,433 | 2,315,132 | (51,803,803) | 7,042,762 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
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Jayden Resources Inc.
Interim Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2024 and 2023 (Unaudited - Expressed in Canadian dollars)
Nine Months Ended September 30, | |||
2024 | 2023 | ||
$ | $ | ||
Cash flows from operating activities | |||
Net loss for the period | (426,010) | (1,049,872) | |
Adjustments for: | |||
Interest income | - | 50 | |
Loss on disposal of marketable securities | 17,685 | - | |
Unrealised gain on marketable securities | - | 22,875 | |
Operating loss before working capital changes | (408,325) | (1,026,947) | |
Decrease in other receivables | 4,261 | 349,133 | |
Decrease in tax credit receivables | - | 899,785 | |
Increase in prepaid expenses | (4,417) | (8,684) | |
Increase (decrease) in accounts payables and accrued liabilities | 96,593 | (103,006) | |
Net cash provided by (used in) operating activities | (311,888) | 110,281 | |
Cash flows from investing activities | |||
Proceeds from disposal of marketable securities | 22,315 | - | |
Expenditures of exploration and evaluation assets | (27,369) | 70,421 | |
Acquisition of exploration and evaluation assets | (30,000) | - | |
Net cash provided by (used in) investing activities | (35,054) | 70,421 | |
Cash flows from financing activities | |||
Net cash provided by financing activities | - | - | |
Net (decrease) increase in cash | (346,942) | 180,702 | |
Cash and cash equivalents, beginning of the period | 392,502 | 271,180 | |
Cash and cash equivalents, end of the period | 45,560 | 451,882 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
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Jayden Resources Inc.
Notes to the Interim Condensed Consolidated Financial Statements For the nine months ended September 30, 2024 and 2023 (Unaudited - Expressed in Canadian Dollars)
1. Nature of operations and going concern
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Nature of operations
Jayden Resources Inc. (the "Company") was incorporated under the laws of the Province of British Columbia.
On October 15, 2015, the Company's common shares ceased trading on the TSE and began trading on the
TSX Venture Exchange under the symbol JDN. On August 8, 2012, the Company changed its place of jurisdiction and was registered in the Cayman Islands as an exempted company with limited liability by way of continuation. Its subsidiary, Jayden Resources (Canada) Inc. ("Jayden Canada") was disposed of during the year ended December 31, 2018, as such the financial statements have been deconsolidated in 2018. On September 2, 2021, the Company completed the continuation from the Companies Law (2021 Revision) of the Cayman Islands into the jurisdiction of British Columbia under the Business Corporations Act (British Columbia) with the intention to increase flexibility, and to reduce administrative costs. On December 17, 2021, the Company incorporated a wholly owned subsidiary, Jayden Resources (Quebec) Ltd. under the laws of the Province of Quebec.
The Company is principally engaged in the business of acquiring, exploring and developing interests in mining projects. To date, the Company has not generated revenues from its principal activities and is considered to be in the exploration stage.
The head office and principal address of the Company are located at Suite 2250, 1055 West Hastings Street, Vancouver, British Columbia, V6E 2E9. The registered and records office are located at 1500 Royal Centre P.O. Box 11117, 1055 West Georgia Street, Vancouver, BC, V6E 4N7. - Going concern
These unaudited interim condensed consolidated financial statements have been prepared on the basis of accounting principles applicable to a "going concern", which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operation, and do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying interim condensed consolidated financial statements.
The Company has not generated any revenues and has incurred accumulated deficits of $51,803,803 (2023: $51,377,793) since inception. The Company has a net loss for the period ended September 30, 2024 of $426,010 (2023: $1,049,872). The Company is not expected to generate cash inflow from its operation during the next twelve months and therefore must rely on securing additional funds from either debt or equity financings for cash consideration.
The Company's continuing operations are entirely dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of its mineral property interests, and on future profitable production or proceeds from the disposition of the mineral property interests. These matters and conditions, primarily as a result of the conditions described above, indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as going concern. If the going concern assumption is not appropriate, material adjustments to the interim condensed consolidated financial statements could be required.
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Jayden Resources Inc.
Notes to the Interim Condensed Consolidated Financial Statements For the nine months ended September 30, 2024 and 2023 (Unaudited - Expressed in Canadian Dollars)
2. Basis of presentation
(a) Statement of compliance
These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Boards ("IASB"), and interpretations of the International Financial Reporting Interpretations Committee. These unaudited interim condensed consolidated financial statements were approved by the board of directors for issue on November 21, 2024.
The accounting policies applied in these interim condensed consolidated financial statements are consistent with those applied and disclosed in the Company's audited consolidated financial statements for the year ended December 31, 2023 except those disclosed in note 3. The Company's interim results are not necessarily indicative of its results for a full year.
(b) Basis of measurement
These unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, under the historical cost basis except for the financial instruments that are recorded at fair value. In addition, these interim condensed consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.
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Critical accounting judgements, estimates and assumptions
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations as of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
Impairment of E&E assets
The Company reviews and assesses the carrying amount of exploration and evaluation assets for indicators of impairment when facts or circumstances suggest that the carrying amount is not recoverable. If impairment is indicated, the amount by which the carrying value of the assets exceeds the estimated fair value is charged to the statement of loss.
Critical judgments in applying the Company's accounting policies
The following is the critical judgment, apart from those involving estimations that management have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognized in the interim condensed consolidated financial statements.
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Jayden Resources Inc.
Notes to the Interim Condensed Consolidated Financial Statements For the nine months ended September 30, 2024 and 2023 (Unaudited - Expressed in Canadian Dollars)
-
Basis of presentation (continued)
Going concern
Management has applied judgments in the assessment of the Company's ability to continue as a going concern when preparing its interim condensed consolidated financial statements for the period ended September 30, 2024. Management prepares the interim condensed consolidated financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. Management considered a wide range of factors relating to current and expected profitability, debt repayment schedules and potential sources of replacement financing. As a result of the assessment, management concluded the ultimate appropriateness of the use of accounting principles applicable to a going concern. - Significant accounting policies
- Recent accounting pronouncements and future changes in accounting standards
There were no other new accounting standards or amendments to standards that were applicable to the Company for the period ended September 30, 2024 nor does the Company expect any that have not yet become effective to have a significant impact on its financial statements.
4. Administrative expenses
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
$ | $ | $ | $ | |
Consulting fees | 48,000 | 48,000 | 144,000 | 159,000 |
Corporate administration | 51,373 | 71,281 | 161,315 | 191,941 |
Investor relations and marketing | - | - | 824 | - |
Net foreign exchange gain loss | 12 | 50 | (38) | 50 |
Professional fees | 1,524 | 41,129 | 68,742 | 89,445 |
Regulatory and shareholder services | 22,734 | 25,336 | 42,162 | 44,455 |
123,643 | 185,796 | 417,005 | 484,891 |
5. Marketable securities
On September 12, 2023, Blackwolf Copper and Gold Ltd. ("Blackwolf") acquired all the issued and outstanding shares of Optimum Ventures Ltd. ("Optimum"), and, in exchange, shareholders of Optimum received 0.65 of a common share of Blackwolf for each Optimum share held. After the acquisition, the Company holds 487,500 common shares of Blackwolf.
During the year ended December 31, 2023, the Company sold shares with a carrying amount of $79,615 and received proceeds of $59,750 and a loss of $19,865 has been recorded.
For the period ended September 30, 2024, the Company sold shares with a carrying amount of $40,000 and received proceeds of $22,315 and a loss of $17,685 has been recorded.
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