CanaQuest Medical : Financial Statements (unaudited) - March 31, 2022

CanaQuest Medical Corporation

Annual (unaudited)

Consolidated Financial Statements

March 31, 2022

CanaQuest Medical Corporation Consolidated Balance Sheets Stated in Canadian Dollars (Unaudited)

			March 31, 2022		March 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	20,682		$	1,894
Accounts receivable, net			2,272			9,391
Prepaid manufacturing costs			26,549			-
Prepaid expenses			12,459			2,201
Total current assets			61,962			13,486
Equipment and leasehold improvements, net			25,231			15,661
Total assets		$	87,193		$	29,147
Liabilities and Stockholders' Deficiency
Current liabilities:
Accounts payable and accrued liabilities	$	329,628		$	334,614
Advances related parties			40,474			58,565
Term loans			431,976			152,440
Convertible notes - net of unamortized discount of $NIL and $Nil at March 31,	-
2022 and March 31, 2021, respectively					100,000
Warrant derivative liabilities			142,888			200,841
Total current liabilities			944,966			846,460
Going Concern
Commitments and Contingencies
Stockholders' Deficiency:
Common stock; no par value; unlimited shares authorized; 20,656,377	shares
issued and outstanding at March 31, 2022 and (March 31, 2021 - 20,136,377),	5,898,908
respectively					5,768,908
Additional paid-in capital			3,460,088			2,864,627
Equity to be issued			299,933			317,119
Accumulated deficiency			(10,516,702)		(9,767,967)
Total stockholders' deficiency			(857,773	)		(817,313	)
Total liabilities and stockholders' deficiency		$	87,193		$	29,147

See accompanying notes

F-1

CanaQuest Medical Corporation

Annual Consolidated Statements of Operations

Stated in Canadian Dollars

(Unaudited)

		For the Year Ended March 31,
		2022				2021
Revenue	$	-		$	1,293
Operating costs:
Application and membership fees			9,074			9,819
Business development			12,219			4,908
Deferred share units issued for compensation			491,044			1,928
Depreciation			6,593			5,569
Exchange			8,018			3,634
Interest			2,266			3,993
Management fee			39,933			21,095
Occupancy			24,111			14,206
Office			12,664			9,243
Professional fees			10,739			71,975
Research and development			22,990			5,728
Stock-based compensation			104,417			103,276
Telephone and internet			22,980			20,784
Travel			16,287			7,789
Total operating expenses			783,335			283,947
Loss from operations			(783,335)		(282,654)

Other income (expense):

Change in fair value of warrant derivative liability Interest expense

Total other income (expense)

57,953		29,097
(23,353)	(13,713)
34,600		15,384

Net loss	$	(748,735)	$	(267,270)
Net loss per share - basic and diluted	$	(0.04)	$	(0.01)
Weighted average number of common shares outstanding - basic and diluted		20,656,377		20,136,377
See accompanying notes
F-2

CanaQuest Medical Corporation

Consolidated Statement of Stockholders' Deficiency

Stated in Canadian Dollars

(Unaudited)

						Additional								Total
	Common		Common		Paid-in	Equity to	Accumulated	Stockholders'
	Shares		Stock		Capital	be Issued		Deficit		Deficiency
Balance, March 31, 2020	20,136,377		$	5,768,908		$	2,759,423		$	254,986	$	(9,500,697)		$	(717,380)
Deferred share units issued for compensation	-			-		-		-			-		-
Stock-based compensation	-		-		103,276		-		-		103,276
Equity to be issued	-			-			-			62,133			-		62,133
Deferred share units issued	-		-		1,928		-			-		1,928
Net loss for the year	-			-		-		-			(267,270)		(267,270)
Balance, March 31, 2021	20,136,377			5,768,908			2,864,627			317,119			(9,767,967)			(817,313)
Stock-based compensation	-			-		104,417		-			-		104,417
Equity to be issued	-			-			-			10,000			-		10,000
Equity issued	520,000			130,000		-		-			-		130,000
Equity to be issued cancellation				-		-		(27,186)		-		(27,186)
Deferred share units issued for compensation	-			-		491,044		-			-		491,044
Net Loss for the year	-			-		-		-			(748,735)		(748,735)
Balance, March 31, 2022	20,656,377		$	5,898,908		$	3,460,088		$	299,933		$	(10,516,702	)	$	(857,773	)

See accompanying notes

F-3

CanaQuest Medical Corporation Consolidated Statements of Cash Flows Stated in Canadian Dollars (Unaudited)

		Year ended March 31,
		2022			2021
Cash Flows from Operating Activities:
Net loss for the year	$	(748,735)	$	(267,270)
Adjustments to reconcile net loss to net cash used in operating activities
Non-cash interest			(23,353)		(13,713)
Depreciation			6,593			5,569
Stock-based compensation			104,417			103,276
Deferred share units issued for compensation			491,044			1,928
Change in fair value of warrant derivative liability			(57,953)		(29,097)
Change in operating assets and liabilities:
Prepaid expenses			(3,068)		(4,995)
Prepaid manufacturing costs			(26,549)		-
Accounts receivable			(71)		41,491
Accounts payable and accrued expenses			18,367			8,781
Net cash used in operating activities			(239,308	)		(154,030	)
Investing Activities
Purchase of equipment			(16,163)		(1,900)
Cash Flows from Financing Activities:
Advances from related parties			149,044			71,115
Repayment to related parties			(167,135)		(76,464)
Conversion of convertible note			(100,000)		-
Shares issued and to be issued			140,000			62,133
Shares to be issued cancelled			(27,186)		-
Term Loan - Government of Canada			20,000			40,000
Term Loan - Vital Link Financial Services, LLC			-			34,510
Term Loan - Vital Link Financial Services, LLC			-			25,930
Term Loan - Vital Link Financial Services, LLC			78,616			-
Term Loan - Vital Link Financial Services, LLC			75,115			-
Term Loan - Vital Link Financial Services, LLC			75,805			-
Term Loan - J. Montalvo			30,000			-
Net cash provided (used in) by financing activities			274,259			157,224
Net change in cash and cash equivalents			18,788			1,294
Cash and cash equivalents, beginning of year			1,894			600
Cash and cash equivalents, end of year		$	20,682		$	1,894
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest paid	$	2,266		$	3,993
Income taxes paid	$	-		$	-
NON-CASH FINANCING ACTIVITIES
Common stock to be cancelled	$	-		$	-
Common stock issued to settle equity to be issued	$	130,000		$	-
Common stock issued for settlement of convertible notes and interest	$	-		$	-

See accompanying notes

F-4