DGTL HOLDINGS INC. DGTL Holdings Inc.
Condensed Consolidated Interim Financial Statements (Unaudited)
For the Nine Months Ended February 28, 2022 (Expressed in Canadian Dollars)
NOTICE TO READER
Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed consolidated 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 condensed consolidated interim financial statements of DGTL Holdings Inc. (the "Company") have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
DGTL Holdings Inc.
Condensed Consolidated Interim Statements of Financial Position
(Stated in Canadian Dollars) (Unaudited)
February 28, | May 31, | ||||||
ASSETS | 2022 | 2021 | |||||
Current assets | $ | 611,248 | |||||
Cash | $ | 1,111,448 | |||||
Trade receivables (Note 4) | 177,311 | 467,874 | |||||
Other receivables | 176,617 | 139,464 | |||||
Prepaid expenses and deposits | 278,993 | 391,402 | |||||
Accrued revenue | 469,442 | 354,441 | |||||
Total current assets | 1,713,611 | 2,464,629 | |||||
Non-current assets | 5,201 | ||||||
Property and equipment | 6,800 | ||||||
Intangible assets (Note 5) | 3,376,945 | 3,700,871 | |||||
Total non-current assets | 3,382,146 | 3,707,671 | |||||
TOTAL ASSETS | $ | 5,095,757 | $ | 6,172,300 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | $ | 2,064,894 | |||||
Accounts payable and accrued expenses (Note 6) | $ | 1,510,448 | |||||
Due to related parties (Note 11) | 194,440 | 96,566 | |||||
Deferred revenue (Note 7) | 34,285 | 51,910 | |||||
Dividends payable on preferred shares (Note 10) | 238,024 | 158,743 | |||||
Current portion of contingent purchase price (Note 8) | 395,503 | 150,828 | |||||
Current portion of loan payable (Note 9) | - | 67,189 | |||||
Total current liabilities | 2,927,146 | 2,035,684 | |||||
Non-current liabilities | - | ||||||
Loan payable (Note 9) | 104,233 | ||||||
Contingent purchase price (Note 8) | 177,346 | 491,598 | |||||
Deferred tax liability | 279,000 | 438,000 | |||||
Total liabilities | 3,383,492 | 3,069,515 | |||||
Shareholders' Equity | 7,758,321 | ||||||
Share capital (Note 10) | 6,745,875 | ||||||
Preferred shares (Note 10) | 1,963,707 | 2,965,195 | |||||
Reserves (Note 10) | 1,301,219 | 1,311,338 | |||||
Cumulative translation adjustment | 45,908 | 92,601 | |||||
Deficit | (9,356,890) | (8,012,224) | |||||
Total shareholders' equity | 1,712,265 | 3,102,785 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 5,095,757 | $ | 6,172,300 | |||
Nature of operations and going concern (Note 1) | |||||||
Subsequent events (Note 17) | |||||||
Approved on behalf of Board of Directors | |||||||
"John Belfontaine" | "David Beck"_________ | ||||||
Director | Director |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
1
DGTL Holdings Inc.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
(Stated in Canadian Dollars) (Unaudited)
Three Months | Three Months | Nine Months | Nine Months | |||||
Ended | Ended | Ended | Ended | |||||
February 28, | February 28, | February 28, | February 28, | |||||
2022 | 2021 | 2022 | 2021 | |||||
Restated | Restated | |||||||
(Note 16) | (Note 16) | |||||||
Revenues | $ | 593,759 | $ | 851,766 | $ | 1,732,408 | $ | 3,498,114 |
Cost of revenues | 403,276 | 638,509 | 1,189,479 | 2,679,049 | ||||
Gross profit | 190,483 | 213,257 | 542,929 | 819,065 | ||||
Expenses | 59,640 | 185,091 | ||||||
Accounting and audit (Note 11) | 28,496 | 115,971 | ||||||
Advertising and promotion | 119,107 | 283,573 | 328,010 | 615,118 | ||||
Amortization (Note 5) | 199,440 | 271,905 | 518,796 | 532,208 | ||||
Bad debt expense (recovery) | - | (223) | - | 15,739 | ||||
Bank charges and interest | 1,422 | 5,372 | 4,470 | 28,000 | ||||
Consulting (Note 11) | 97,310 | 234,582 | 246,760 | 720,927 | ||||
Filing fees | 9,753 | 30,522 | 51,931 | 71,437 | ||||
Insurance | 8,554 | 16,131 | 32,948 | 33,278 | ||||
Interest expense | 3,531 | 25,215 | 9,193 | 71,845 | ||||
Investigation costs | - | 14,140 | - | 14,140 | ||||
Legal | 24,280 | 16,496 | 130,450 | 67,621 | ||||
Office and administration | 64,513 | 38,822 | 119,934 | 138,610 | ||||
Rent | - | 8,644 | - | 39,982 | ||||
Salaries, fees, and benefits (Note 11) | 189,308 | 391,452 | 639,125 | 1,105,144 | ||||
Share-based compensation | - | 915,745 | - | 915,745 | ||||
Travel | 383 | 20 | 2,284 | 2,829 | ||||
Total expenses | (777,241) | (2,280,892) | (2,268,992) | (4,488,594) | ||||
Operating loss | (586,758) | (2,067,635) | (1,726,063) | (3,669,529) | ||||
Gain on foreign exchange | (4,097) | 18,278 | 17,111 | 86,074 | ||||
Gain on forgiveness of loan (Note 9) | 181,677 | - | 181,677 | - | ||||
Gain on revaluation of contingent purchase | 26,901 | - | 102,890 | - | ||||
price | ||||||||
Net loss before income taxes | (382,277) | (2,049,357) | (1,424,385) | (3,583,455) | ||||
Deferred tax recovery | - | - | 159,000 | - | ||||
Net loss before other comprehensive | (382,277) | (2,049,357) | (1,265,385) | (3,583,455) | ||||
income | 6,560 | (46,693) | ||||||
Translation adjustment | - | - | ||||||
Net loss and comprehensive loss for the | ||||||||
period | $ | (375,717) | $ | (2,049,357) | $ | (1,312,078) | $ | (3,583,455) |
Weighted average number of common | 39,522,171 | 32,049,620 | 38,822,504 | 27,426,044 | ||||
shares outstanding | ||||||||
Basic and diluted loss per common share | $ | (0.01) | $ | (0.06) | $ | (0.03) | $ | (0.13) |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
2
DGTL Holdings Inc.
Condensed Consolidated Interim Statements of Changes in Equity
(Stated in Canadian Dollars) (Unaudited)
Share Capital | Preferred shares | Shares to be Issued | Reserves | |||||||||||||||
Cumulative | ||||||||||||||||||
Number of | Number of | Number of | Share-based | Translation | ||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | compensation | Adjustment | Deficit | Total | |||||||||
Balance at May 31, 2020 | 22,063,000 | $ 1,347,521 | 5,804,688 | $ | 2,728,203 | 6,302,534 | $ 2,509,620 | $ | 233,044 | $ | - | $(1,028,551) | $ | 5,789,837 | ||||
Issue of common shares | 11,758,438 | 4,320,000 | - | - | (3,771,428) | (1,320,000) | - | - | - | 3,000,000 | ||||||||
Issue of preferred shares | - | - | 2,531,106 | 1,189,620 | (2,531,106) | (1,189,620) | - | - | - | - | ||||||||
Conversion of preferred | 1,147,800 | 539,466 | (1,147,800) | (539,466) | - | - | - | - | - | - | ||||||||
shares | ||||||||||||||||||
Share issuance costs | - | (118,042) | - | - | - | - | - | - | - | (118,042) | ||||||||
Exercise of options | 750,000 | 75,000 | - | - | - | - | - | - | - | 75,000 | ||||||||
Transfer to share capital on | - | 55,539 | - | - | - | - | (55,539) | - | - | - | ||||||||
exercise of options | ||||||||||||||||||
Exercise of agent's options | 691,665 | 69,167 | - | - | - | - | - | - | - | 69,167 | ||||||||
Transfer to share capital on | - | 44,062 | - | - | - | - | (44,062) | - | - | - | ||||||||
exercise of agent's options | ||||||||||||||||||
Share-based compensation | - | - | - | - | - | - | 915,745 | - | - | 915,745 | ||||||||
Net loss and | ||||||||||||||||||
comprehensive loss | - | - | - | - | - | - | - | - | (3,583,455) | (3,583,455) | ||||||||
for the period | ||||||||||||||||||
Balance at February 28, | 36,410,903 | $ 6,332,713 | 7,187,994 | $ | 3,378,357 | - | $ | - | $ | 1,049,188 | $ | - | $(4,612,006) | $ | 6,148,252 | |||
2021 | ||||||||||||||||||
Balance at May 31, 2021 | 37,287,973 | $ 6,745,875 | 6,308,926 | $ | 2,965,195 | - | $ | - | $ | 1,311,338 | $ | 92,601 | $(8,012,224) | $ | 3,102,785 | |||
Conversion of preferred | 2,130,826 | 1,001,488 | (2,130,826) | (1,001,488) | - | - | - | - | - | - | ||||||||
shares | ||||||||||||||||||
Dividend payable | - | - | - | - | - | - | - | - | (79,281) | (79,281) | ||||||||
Cancellation of common | (34,091) | (15,000) | - | - | - | - | - | - | - | (15,000) | ||||||||
shares | ||||||||||||||||||
Exercise of agent's options | 158,385 | 25,958 | - | - | - | - | (10,119) | - | - | 15,839 | ||||||||
Translation adjustment | - | - | - | - | - | - | - | (46,693) | - | (46,693) | ||||||||
Net loss and | ||||||||||||||||||
comprehensive loss | - | - | - | - | - | - | - | - | (1,265,385) | (1,265,385) | ||||||||
for the period | ||||||||||||||||||
Balance at February 28, | ||||||||||||||||||
2022 | 39,543,093 | $ 7,758,321 | 4,178,100 | $ | 1,963,707 | - | $ | - | $ | 1,301,219 | $ | 45,908 | $(9,356,890) | $ | 1,712,265 | |||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
2
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Conscience Capital Inc. published this content on 08 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2022 12:41:03 UTC.
