Canaf Investments : Consolidated Financial Statements

For the nine months ended July 31st, 2022

Consolidated Financial Statements

(Expressed in U.S. dollars)

(Unaudited - Prepared by Management)

• Consolidated Statements of Financial Position
• Consolidated Statements of Comprehensive Income
• Consolidated Statements of Changes in Equity
• Consolidated Statements of Cash Flows
• Notes to the Consolidated Financial Statements

CANAF INVESTMENTS INC.

Notes to the Consolidated Financial Statements

For the nine months ended July 31, 2022 and October 31, 2021

(Expressed in U.S. Dollars)

NOTICE OF NO AUDITOR REVIEW OF QUARTELY FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection, 4.3 (3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited interim financial statements of Canaf Investments Inc. ("the Company") have been prepared by and are the responsibility of the Company's management. The unaudited interim financial statements are prepared in accordance with International Financial Reporting Standards and reflect management's best estimate and judgements based on information currently available.

The Company's independent auditor has not performed a review of these interim financial statements in accordance with the standards established by the Canadian Institute of Chartered Professional Accountants for a review on interim financial statements by an entity's auditor.

CANAF INVESTMENTS INC.

Consolidated Statements of Financial Position

As at July 31, 2022 and October 31, 2021

(Expressed in U.S. Dollars)

	Note	Jul 31, 2022	Oct 31, 2021
ASSETS		US$	US$
CURRENT		2,598,134
Cash		3,053,337
Trade Receivables	15	2,559,027	1,268,049
Inventories	6	1,088,823	703,894
Deposit held for Property		-	57,513
Prepaid Expense and Deposits		17,088	19,292
NON-CURRENT		6,263,072	5,102,085
	234,777
Investment Property	7	137,599
Property, Plant and Equipment	8	554,864	630,848
Interest Bearing Borrowings	4	1,041,365	1,088,572
Intangible	2(f)	1	1
		1,831,007	1,857,020
		8,094,079	6,959,105
LIABILITIES
CURRENT		2,274,087
Trade and Other Payables	9	1,326,340
Sales Tax Payable		32,132	14,435
Income Taxes Payable		166,131	109,955
Current Portion of Lease Liability	18	13,863	15,303
NON-CURRENT		2,486,213	1,466,033
	41,589
Lease Liability	18	57,387
		41,589	57,387
		2,527,801	1,523,419
SHAREHOLDERS' EQUITY
Share Capital	10	8,079,463	8,079,463
Additional Paid in Capital	4	1,342,549	1,342,549
Accumulated Other Comprehensive Loss -		(2,403,009)
Foreign Currency Translation Reserve		(1,897,294)
Deficit		(1,810,794)	(2,324,770)
Equity Attributable to Canaf Investments Inc. Shareholders		5,208,209	5,199,948
Non-Controlling Interest	4	358,069	235,738
		5,566,279	5,435,686
		8,094,079	6,959,105

Nature of Operations (Note 1)

Economic Dependence (Note 15)

Commitments (Note 16)

Segment Information (Note 17)

The accompanying notes are an integral part of the consolidated financial statements.

Approved on Behalf of the Board:
"Christopher Way"		"Rebecca Williams"
Christopher Way, Director		Rebecca Williams, Director

CANAF INVESTMENTS INC.

Consolidated Statements of Comprehensive Income

As at July 31, 2022 and October 31, 2021

(Expressed in U.S. Dollars)

			9 months ended
		Jul 31, 2022	Jul 31, 2021
		US$	US$
SALES		11,309,650	10,834,358
COST OF SALES	13	(10,156,854)	(9,486,399)
GROSS PROFIT		1,152,796	1,347,959
EXPENSES		(431,535)	(381,822)
General and Administrative	14
Foreign Exchange Gain		(7,821)	6,762
		(439,356)	(375,060)
INCOME BEFORE OTHER ITEM		713,440	972,899
Interest Income		131,089	106,821
Other Income		67,068	32,267
Gain from Sale of Fixed Asset		4,519
INCOME BEFORE INCOME TAXES		916,116	1,111,987
Current Income Tax (Expense)		(247,800)	(298,103)
NET INCOME FOR THE PERIOD		668,316	813,883
Attributable to the Parent		513,976	646,812
Attributable to the Non Controlling Interest		154,340	167,071
		668,316	813,883
Foreign Currency Translation (Loss) Gain		(537,724)	472,969
NET COMPREHENSIVE INCOME FOR THE YEAR		130,592	1,286,852
Attributable to the Parent		8,261	1,105,562
Attributable to the Non Controlling Interest		122,331	181,289
BASIC AND DILUTED EARNINGS PER SHARE		0.014	0.017
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - BASIC AND DILUTED		47,426,195	47,426,195

The accompanying notes are an integral part of the consolidated financial statements

CANAF INVESTMENTS INC.

Consolidated Statements of Change in Equity

As at July 31, 2022 and October 31, 2021

(Expressed in U.S. Dollars)

		Number of			Foreign Currency		Non-	Total
		Common	Share	Additional	Translation		Controlling	Shareholders'
Note	Shares	Capital	Paid in Capital	Reserve	Deficit	Interest	Equity
			US$	US$	US$	US$	US$	US$
Balance, October 31, 2020	47,426,195	8,079,463	1,342,549	(2,149,469)	(3,049,200)	129,672	4,353,015
Dividends Paid						(118,154)	(118,154)
Net Income for the Period	-	-		-	724,430	220,987	945,417
Foreign Currency Translation Gain	-	-		252,175	-	3,233	255,408
Balance, October 31, 2021	47,426,195	8,079,463	1,342,549	(1,897,294)	(2,324,770)	235,738	5,435,686
Balance, October 31, 2021	47,426,195	8,079,463	1,342,549	(1,897,294)	(2,324,770)	235,738	5,435,686
Dividends Paid						-	-
Net Income for the Period	-	-		-	513,976	154,340	668,316
Foreign Currency Translation Gain	-	-		(505,715)	-	(32,009)	(537,724)
Balance, July 31, 2022		47,426,195	8,079,463	1,342,549	(2,403,008)	(1,810,794)	358,069	5,566,279

The accompanying notes are an integral part of the consolidated financial statements.