BLOCKCHAINK2 : Interim Consolidated Financial Statements For the three months ended December 31, 2021 and 2020 (Expressed in Canadian dollars)

BLOCKCHAINK2 CORP.

Interim Consolidated Financial Statements

For the three months ended December 31, 2021 and 2020

(Expressed in Canadian dollars)

BLOCKCHAINK2 CORP.

February 28, 2022

Management's Report to the Shareholders

Management is responsible for the reliability and integrity of these financial statements. The accompanying interim consolidated financial statements have been prepared by management in accordance with International Accounting Standards ("IAS") 34 - Interim Financial Reporting and are in accordance with International Financial Reporting Standards ("IFRS"). The interim consolidated financial statements are presented in Canadian Dollars.

The accompanying interim consolidated financial statements have been prepared using policies and procedures established by management and reflect fairly the Corporation's financial position, results of operations and changes in financial position, within reasonable limits of materiality and within the framework of the accounting policies outlined in the notes to the financial statements. Management has established and maintains a system of internal controls which is designed to provide reasonable assurance that assets are safeguarded from loss or unauthorized use and financial information is reliable and accurate.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control. The Board is assisted in exercising its responsibilities through the Audit Committee of the Board, which is composed of a majority of non-management directors. The Audit Committee meets periodically with management and the auditors to satisfy itself that management's responsibilities are properly discharged.

The following interim consolidated financial statements are unaudited and have not been reviewed by the Corporation's auditor.

BLOCKCHAINK2 CORP.

Interim Consolidated Statements of Financial Position As at December 31, 2021 and September 30, 2021 (Expressed in Canadian dollars)

		December 31,		September 30,
		2021		2021
		(Unaudited)		(Audited)
Assets
Current assets:
Cash	$	348,462	$	573,813
Receivables		16,032		11,576
Inventory		13,091		7,773
Prepaid expenses (note 5)		5,000		13,739
		382,585		606,901
Non-current assets:
Note receivable (note 6)		27,470		41,264
Investment in Envexergy Inc. (note 7)		1,223,136		1,223,136
Intangible assets (note 8)		21,000		-
		1,271,606		1,264,400
	$	1,654,191	$	1,871,301
Liabilities and Shareholders' Equity
Current liabilities:
Trade payables (note 12)	$	368,803	$	276,660
Loans payable - short term (notes 9 and 12)		114,418		19,785
		483,221		296,445
Non-current liabilities:
Loans payable (note 9)		68,357		65,802
		551,578		362,247
Shareholders' Equity
Share capital (note 10)		47,263,590		47,263,590
Contributed surplus (note 10)		13,034,684		13,034,684
Accumulated foreign currency translation (note 10)		1,450,031		1,451,235
Deficit		(60,653,184)		(60,287,001)
Non-controlling interest (note 14)		7,492		46,546
		1,102,613		1,509,054
	$	1,654,191	$	1,871,301

Going concern (note 2)

Subsequent event (note 19)

See accompanying notes to the interim consolidated financial statements.

Approved for issuance by the Board of Directors on February 28, 2022

Signed "D Lindsay Wu"

D Lindsay Wu, Director

Signed "Sergei Stetsenko"

Sergei Stetsenko, Director

BLOCKCHAINK2 CORP.

Consolidated Statements of Comprehensive Loss

For the three months ended December 31, 2021 and 2020 (Unaudited - Expressed in Canadian dollars)

		2021		2020
Sales (note 15)	$	11,200	$	77,676
Cost of sales		(7,364)		(52,148)
Gross profit		3,836		25,528
Expenses
Advertising and promotion		35,676		1,927
Consulting fees (note 12)		112,938		31,633
Directors' fees (note 12)		75,647		79,008
Filing and listing fees		17,656		2,806
Foreign exchange gain (loss)		1,582		(796)
General and administrative		17,002		13,748
Investor relations		-		2,153
Professional fees (note 12)		90,750		21,071
Salaries (note 12)		68,806		21,734
Travel		4,760		1,513
		424,817		174,797
Other items
Accretion (note 9)		(2,995)		(6,015)
Change in fair value of note receivable (note 6)		19,199		-
		16,204		(6,015)
Net loss for the period		(404,777)		(155,284)
Other comprehensive loss
Item that will be recognized in profit or loss:
Exchange loss on translation		(1,204)		(6,787)
Comprehensive loss for the period	$	(405,981)	$	(162,071)
Net loss for the period attributable to:
Common shareholders of the Corporation	$	(366,183)	$	(147,492)
Non-controlling interest (note 14)		(38,594)		(7,792)
	$	(404,777)	$	(155,284)
Comprehensive loss for the period attributable to:
Common shareholders of the Corporation	$	(366,927)	$	(147,951)
Non-controlling interest (note 14)		(39,054)		(14,120)
	$	(405,981)	$	(162,071)
Loss per share for the period:
Basic and diluted (note 11)	$	(0.02)	$	(0.01)

See accompanying notes to the interim consolidated financial statements.

BLOCKCHAINK2 CORP.

Interim Consolidated Statements of Shareholders' Equity For the three months ended December 31, 2021 and 2020 (Unaudited - Expressed in Canadian dollars)

		2021		2020
Share capital
Balance, beginning of period	$	47,263,590	$	47,039,893
Balance, end of period		47,263,590		47,039,893
Contributed surplus
Balance, beginning of period		13,034,684		12,207,252
Balance, end of period		13,034,684		12,207,252
Accumulated foreign currency translation
Balance, beginning of period		1,451,235		1,456,192
Loss on translation		(1,204)		(6,787)
Balance, end of period		1,450,031		1,449,405
Deficit
Balance, beginning of period		(60,287,001)		(58,081,407)
Net loss for the period		(366,183)		(147,492)
Balance, end of period		(60,653,184)		(58,228,899)
Non-controlling interest
Balance, beginning of period		46,546		65,041
Net loss for the period		(38,594)		(7,792)
Loss on translation		(460)		(4,556)
Balance, end of period		7,492		52,693
Shareholders' equity	$	1,102,613	$	2,520,344

See accompanying notes to the interim consolidated financial statements.