QUIZAM MEDIA CORPORATION CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED February 28, 2022 AND 2021
(Unaudited)
The accompanying unaudited interim financial statements have been prepared by Management of Quizam Media
Corporation and have not been reviewed by the Company's auditors
QUIZAM MEDIA CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian dollars)
(Unaudited - Prepared by Management)
As at | As at | |
February 28, | May 31, | |
2022 | 2021 | |
$ | $ | |
ASSETS | ||
Current | ||
Cash and cash equivalents | 251,633 | 921,534 |
Accounts receivable | 18,709 | 67,761 |
Sales taxes recoverable | 9,357 | 4,724 |
Prepaid expenses and deposits | 80,591 | 84,938 |
Inventory (Note 3) | 235,963 | 120,835 |
Total current assets | 596,253 | 1,199,792 |
Property and equipment (Note 4) | 1,054,316 | 868,226 |
Total assets | 1,650,569 | 2,068,018 |
LIABILITIES | ||
Current | ||
Accounts payable and accrued liabilities | 393,477 | 382,630 |
Deferred revenue | 32,009 | 21,833 |
Due to related parties (Note 10) | 26,767 | 23,606 |
Lease liabilities - Current (Note 16) | 275,640 | 307,244 |
Total current liabilities | 727,893 | 735,313 |
Lease liabilities - Long-term (Note 16) | 666,751 | 455,265 |
Loan payable - Long-term (Note 15) | 60,000 | 60,000 |
Total liabilities | 1,454,644 | 1,250,578 |
EQUITY | ||
Share capital (Note 5) | 25,313,167 | 24,245,652 |
Share subscriptions receivable | - | - |
Contributed surplus | 3,278,463 | 3,173,032 |
Deficit | (28,395,705) | (26,601,244) |
Total equity | 195,925 | 817,440 |
Total liabilities and equity | 1,650,569 | 2,068,018 |
Nature and continuance of operations (Note 1) | ||
Commitment (Note 17) | ||
APPROVED ON BEHALF OF THE BOARD ON APRIL 29, 2021 |
/s/ "Russ Rossi" Russ Rossi, Director
/s/ "Jim Rosevear" Jim Rosevear, Director
QUIZAM MEDIA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Expressed in Canadian dollars)
(Unaudited - Prepared by Management)
Three | Three | Nine | Nine | |
Months | Months | Months | Months | |
Ending | Ending | Ending | Ending | |
February | February | February | February | |
28 | 28 | 28 | 28 | |
2022 | 2021 | 2022 | 2021 | |
$ | $ | $ | $ | |
REVENUES | ||||
Training services and software sales | 147,328 | 113,178 | 324,574 | 240,629 |
Consulting fees | - | - | - | - |
Retail sales | 1,599,709 | 1,192,761 | 4,626,799 | 2,371,095 |
1,747,037 | 1,305,939 | 4,951,373 | 2,611,724 | |
EXPENSES | ||||
Accounting and legal (Note 10) | 39,266 | 13,947 | 208,310 | 158,104 |
Automobile | 13,452 | 14,058 | 30,230 | 32,500 |
Bank charges and finance fees | 23,585 | 13,100 | 66,909 | 42,665 |
Depreciation | 121,166 | 54,468 | 334,661 | 154,797 |
Investor and finance development (Note 10) | 79,168 | 68,317 | 159,479 | 102,789 |
Management fees (Note 10) | 63,200 | 36,500 | 163,700 | 96,500 |
Office and miscellaneous (Note 10 and 17) | 581,808 | 214,152 | 1,089,360 | 395,558 |
On-Track TV development costs (Note 9 and 10) | 27,850 | 45,750 | 80,050 | 64,000 |
Regulatory fees | 3,972 | 23,667 | 13,863 | 37,735 |
Rent | 17,641 | - | 69,170 | 5,995 |
Research and development (Note 10) | 60,494 | 70,835 | 201,200 | 130,510 |
Retail inventory (Note 3) | 992,255 | 729,395 | 2,880,888 | 1,461,820 |
Software development costs (Note 10) | 63,275 | 41,750 | 77,275 | 54,000 |
Share-based compensation (Note 10) | 95,965 | 8,191 | 106,296 | 205,083 |
Subcontractors (Note 10) | 54,125 | 55,480 | 125,027 | 253,595 |
Telephone and internet | 7,323 | 10,266 | 21,819 | 21,608 |
Travel and business development (Note10 and 18) | 59,745 | 31,403 | 385,202 | 124,221 |
Wages and benefits (Note 10) | 247,596 | 163,451 | 676,628 | 369,716 |
Loss from termination of leases | 66,039 | 0 | 66,039 | 0 |
2,617,925 | 1,594,730 | 6,756,106 | 3,711,196 | |
LOSS BEFORE OTHER ITEMS | (870,888) | (288,791) | (1,804,733) | (1,099,472) |
OTHER ITEMS | ||||
Other income | - | - | 10,272 | - |
NET LOSS AND COMPREHENSIVE LOSS | (870,888) | (288,791) | (1,794,461) | (1,099,472) |
LOSS PER SHARE BASIC AND DILUTED | (0.04) | (0.02) | (0.09) | (0.09) |
WEIGHTED AVERAGE NUMBER OF SHARES | ||||
OUTSTANDING | 21,907,904 | 15,544,148 | 19,854,357 | 12,848,546 |
QUIZAM MEDIA CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in Canadian dollars)
(Unaudited - Prepared by Management)
Nine Months | Nine Months | |
Ending | Ending | |
February 28, | February 28, | |
2022 | 2021 | |
$ | $ | |
OPERATING ACTIVITIES | ||
Net loss | (1,794,461) | (1,099,472) |
Add back non-cash items: | ||
Depreciation | 334,661 | 154,797 |
Share-based compensation | 88,256 | 205,083 |
Lease interest expenses | 62,810 | - |
Loss from termination of leases | 66,039 | - |
(1,224,668) | (739,591) | |
Changes in non-cash working capital items: | ||
Accounts receivable | 49,052 | (59,990) |
Prepaid expenses and deposits | 4,347 | (65,083) |
Sales taxes recoverable | (633) | 6,210 |
Inventory | (115,128) | (99,938) |
Accounts payable and accrued liabilities | 89,847 | (343,912) |
Due to related parties | 3,161 | (260,607) |
Deferred revenue | 10,176 | 19,583 |
CASH USED IN OPERATING ACTIVITIES | (1,183,846) | (1,543,329) |
FINANCING ACTIVITIES | ||
Repayment of principal portion of lease liability | (285,570) | (125,361) |
Issuance of common shares, net | 903,650 | 2,029,000 |
CASH PROVIDED BY FINANCING ACTIVITIES | 618,080 | 1,903,639 |
INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (104,135) | (65,972) |
Loan repayments | - | (10,000) |
CASH USED IN INVESTING ACTIVITIES | (104,135) | (75,972) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (669,901) | 284,338 |
CASH AND CASH EQUIVALENTS - BEGINNING | 921,534 | 6,435 |
CASH AND CASH EQUIVALENTS - ENDING | 251,663 | 290,773 |
SUPPLEMENTAL INFORMATION | ||
Interest paid | - | - |
Income tax paid | - | - |
The Accompanying Notes are an Integral Part of the Consolidated Financial Statements
4
QUIZAM MEDIA CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED FEBRUARY 28, 2022 AND 2021 (Expressed in Canadian dollars)
(Unaudited - Prepared by Management)
Number of
Common | Contributed | ||||
Shares | Amount | Surplus | Deficit | ||
$ | $ | $ | |||
May 31, 2020 | 5,947,704 | 21,083,180 | 2,750,976 | (24,665,937) | (831,781) |
Units issued for cash | 9,610,000 | 1,999,000 | - | - | 1,999,000 |
Share issuance costs | - | (147,014) | 147,014 | - | - |
Shares issued for exercise of warrants | 100,000 | 30,000 | - | - | 30,000 |
Share-based compensation | - | - | 205,083 | - | 205,703 |
Net loss for the period | - | - | - | (1,099,472) | (1,099,472) |
As at February 28, 2021 | 15,657,704 | 22,965,166 | 3,103,073 | (25,765,409) | 302,830 |
As at May 31, 2021 | 18,213,971 | 24,245,652 | 3,173,032 | (26,601,244) | 817,440 |
Units issued for cash | 6,000,000 | 800,000 | - | - | 800,000 |
Share issued for exercise of warrants | 337,500 | 101,250 | - | - | 101,250 |
Share issued for exercise of options | 6,000 | 3,265 | (865) | - | 2,400 |
Share issued for debt | 677,783 | 163,000 | - | - | 163,000 |
Share-based compensation | - | - | 106,296 | - | 106,296 |
Net loss for the period | - | - | - | (1,794,461) | (1,794,461) |
As at February 28, 2022 | 25,277,678 | 25,313,167 | 3,278,463 | (28,395,705) | 195,925 |
Total $
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