LQWD TECHNOLOGIES CORP.
Condensed Consolidated Interim Financial Statements Second Quarter ended August 31, 2025
Unaudited
(Expressed in Canadian dollars except as otherwise stated)
Liabilities and Equity | ||
Current: Accounts payable and accrued liabilities | $ 210,136 | $ 181,897 |
210,136 | 181,897 | |
Shareholders' equity Capital stock (Note 6(b)) | 78,236,462 | 63,928,852 |
Contributed surplus (Note 6(g)) | 12,097,605 | 9,554,393 |
Accumulated other comprehensive income | 10,927,011 | 7,511,581 |
Deficit | (63,123,222) | (59,634,448) |
38,137,856 | 21,360,378 | |
$ 38,347,992 | $ 21,542,275 | |
LQWD TECHNOLOGIES CORP. Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian Dollars except as otherwise stated) | ||
August 31, 2025 | February 28, 2025 | |
Assets | ||
Current: | ||
Cash and cash equivalents | $ 2,730,376 | $ 1,571,705 |
Digital currencies (Note 7) | 35,441,199 | 19,800,292 |
Prepaid expenses | 114,083 | 105,993 |
38,285,658 | 21,477,990 | |
Non-Current: | ||
Property and equipment (Note 5) 2,246 | 2,955 |
Restricted cash 60,088 | 61,330 |
$ 38,347,992 | $ 21,542,275 |
Nature of operations and going concern (Note 1) Subsequent events (12)
See accompanying notes.
These financial statements are authorized for issue by the Board of Directors on October 30, 2025.
"Giuseppe (Pino) Perone"
… Director
Giuseppe (Pino) Perone
"Ashley Garnot"
… Director
Ashley Garnot
LQWD TECHNOLOGIES CORP.Condensed Consolidated Interim Statements of Comprehensive Loss (Expressed in Canadian Dollars except as otherwise stated)
Three Months Ended August 31, Six Months Ended August 31,2025 | 2024 | 2025 | 2024 | |
Revenue | $ 8,394 | $ 909 | $ 11,379 | $ 1,269 |
General and administrative expenses | ||||
Amortization of intangible assets | - | 34,359 | - | 105,545 |
Amortization of property and equipment | 354 | 404 | 709 | 1,094 |
Audit and accounting | 44,100 | 44,225 | 58,950 | 55,725 |
Bank charges | 1,556 | 521 | 2,181 | 1,050 |
Consulting fees | 50,400 | 45,083 | 131,850 | 73,328 |
Legal | 16,225 | 4,315 | 27,405 | 5,421 |
Marketing | 53,036 | 48,672 | 106,038 | 100,066 |
Office and administration | 45,291 | 13,428 | 70,399 | 29,787 |
Office rent | 4,702 | 3,150 | 8,615 | 6,300 |
Research and development | 113,725 | 71,596 | 239,741 | 133,626 |
Salaries and benefits | 50,126 | 50,139 | 100,252 | 100,278 |
Stock-based compensation | 2,465,110 | 63,235 | 2,543,212 | 135,267 |
Shareholder relations | 48,248 | - | 57,803 | 8,221 |
Transfer and filing fees | 26,725 | 7,749 | 32,445 | 24,587 |
Travel and entertainment | 48,430 | 1,969 | 87,940 | 12,797 |
(2,968,028) | (388,845) | (3,467,540) | (793,092) | |
Other items | ||||
Foreign exchange | 11,209 | (2,536) | (32,873) | (880) |
Interest and accretion income | (310) | 1,098 | 260 | 1,886 |
10,899 | (1,438) | (32,613) | 1,006 | |
Net loss for the period | (2,948,735) | (389,374) | (3,488,774) | (790,817) |
Other comprehensive income | ||||
Change in revaluation reserve (Note 7) | 132,352 | (1,559,351) | 3,415,430 | (539,235) |
Comprehensive loss for the period | (2,816,383) | (1,948,725) | (73,344) | (1,330,052) |
Net loss per share, basic and diluted | $ (0.11) | $ (0.03) | $ (0.15) | $ (0.06) |
Weighted average number of common shares outstanding | 25,645,216 | 13,033,591 | 23,563,206 | 13,130,809 |
See accompanying notes.
LQWD TECHNOLOGIES CORP.Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian Dollars except as otherwise stated)
For the six months ended August 31, | 2025 | 2024 |
Operating activities | ||
Net loss for the period | $ (3,488,774) | $ (790,817) |
Items not involving cash: | ||
Amortization of intangible assets | - | 105,545 |
Amortization of property and equipment | 709 | 1,094 |
Interest and accretion | 1,242 | 1,140 |
Stock-based compensation | 2,543,212 | 135,267 |
(943,611) | (547,771) | |
Changes non-cash working capital: | ||
Prepaid expenses | (8,090) | 13,045 |
Accounts payable and accrued liabilities | 35,102 | (163,087) |
27,012 | (150,042) | |
Cash used in operating activities | (916,599) | (697,813) |
Financing activities | ||
Proceeds from share issuance | 12,299,996 | - |
Share issue costs | (992,698) | - |
Options exercised | 151,949 | - |
Warrants exercised | 2,848,363 | - |
Cash provided by financing activities | 14,307,610 | - |
Investing activities | ||
Purchase of digital currencies | (12,232,340) | - |
Purchase of equipment | - | (4,255) |
Cash used in investing activities | (12,232,340) | (4,255) |
Net inflow (outflow) of cash and cash equivalents | 1,158,671 | (702,068) |
Cash and cash equivalents, beginning of period | 1,571,705 | 1,353,065 |
Cash and cash equivalents, end of period | $ 2,730,376 | $ 650,997 |
Supplementary disclosures: | ||
Interest received | $ 1,503 | $ 3,026 |
Cash | $ 2,730,376 | $ 632,816 |
Short-term deposits | - | 18,181 |
$ 2,730,376 | $ 650,997 | |
See accompanying notes. |
LQWD TECHNOLOGIES CORP.
Condensed Consolidated Interim Statements of Changes in Equity (Expressed in Canadian Dollars except as otherwise stated)
Common Shares
Other ComprehensiveNumber | Amount | Contributed Surplus | Deficit | Income (Note 7) | Total | |||
Balance, March 1, 2025 | 21,442,718 | $ 63,928,852 | $ | 9,554,393 | $ (59,634,448) | $ 7,511,581 | $ | 21,360,378 |
Net loss for period | - | - | - | (3,488,774) | - | (3,488,774) | ||
Options exercised | 191,666 | 151,949 | - | - | - | 151,949 | ||
Private placement | 2,999,999 | 12,299,996 | 12,299,996 | |||||
Revaluation of digital currency | - | - | - | - | 3,415,430 | 3,415,430 | ||
Share issue costs | - | (992,698) | - | - | - | (992,698) | ||
Stock-based payments | - | - | 2,543,212 | - | - | 2,543,212 | ||
Warrants exercised | 2,937,358 | 2,848,363 | - | - | - | 2,848,363 | ||
Balance, August 31, 2025 | 27,571,741 | $ 78,236,462 | $12,097,605 | $ (63,123,222) | $ 10,927,011 | $ | 38,137,856 | |
Balance, March 1, 2024 | 13,228,026 | $ 57,683,004 | $ | 8,842,882 | $ (57,870,813) | $ 2,747,746 | $ | 11,402,819 |
Cancelled shares (Note7(b)) | (208,000) | (740,000) | - | 740,000 | - | - | ||
Revaluation of digital currency | - | - | - | - | (539,235) | (539,235) | ||
Stock-based payments | - | - | 135,267 | - | - | 135,267 | ||
Net loss for period | - | - | - | (790,817) | - | (790,817) | ||
Balance, August 31, 2024 | 13,020,026 | $ 56,943,004 | $ | 8,978,149 | $ (57,921,630) | $ 2,208,511 | $ | 10,208,034 |
See accompanying notes. | ||||||||