Audited Financial Statements of
ISOENERGY LTD.
For the years ended December 31, 2021 and 2020
1
KPMG LLP | Telephone | (604) 691-3000 |
Chartered Professional Accountants | Fax | (604) 691-3031 |
PO Box 10426 777 Dunsmuir Street | Internet | www.kpmg.ca |
Vancouver BC V7Y 1K3
Canada
INDEPENDENT AUDITORS' REPORT
To the Shareholders of IsoEnergy Ltd.
Opinion
We have audited the financial statements of IsoEnergy Ltd. (the Entity), which comprise:
- the statements of financial position as at December 31, 2021 and 2020
- the statements of loss and comprehensive income (loss) for the years then ended
- the statements of changes in equity for the years then ended
- the statements of cash flows for the years then ended
- and notes to the financial statements, including a summary of significant accounting policies (Hereinafter referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS).
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the "Auditors' Responsibilities for the Audit of the Financial Statements" section of our auditors' report.
We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
Management is responsible for the other information. Other information comprises:
- the information included in Management's Discussion and Analysis filed with the relevant Canadian Securities Commissions.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
IsoEnergy Ltd.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit and remain alert for indications that the other information appears to be materially misstated.
We obtained the information included in Management's Discussion and Analysis filed with the relevant Canadian Securities Commissions as at the date of this auditors' report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in the auditors' report.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards (IFRS), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity's financial reporting process.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
IsoEnergy Ltd.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Entity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
- Provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
The engagement partner on the audit resulting in this auditors' report is Andrew James. Vancouver, Canada
February 17, 2022
ISOENERGY LTD.
STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian Dollars)
As at December 31
Note | 2021 | 2020 | |||||
ASSETS | |||||||
Current | |||||||
Cash | $ | 13,617,066 | $ | 14,034,565 | |||
Accounts receivable | 129,079 | 67,967 | |||||
Prepaid expenses | 107,253 | 197,419 | |||||
Marketable securities | 6 | 9,314,985 | - | ||||
23,168,383 | 14,299,951 | ||||||
Non-Current | |||||||
Deposit | - | 9,274 | |||||
Property and equipment | 7 | 66,549 | 182,439 | ||||
Exploration and evaluation assets | 8 | 60,955,590 | 53,731,796 | ||||
TOTAL ASSETS | $ | 84,190,522 | $ | 68,223,460 | |||
LIABILITIES | |||||||
Current | |||||||
Accounts payable and accrued liabilities | $ | 640,971 | $ | 238,650 | |||
Current portion of lease liability | 9 | - | 66,745 | ||||
640,971 | 305,395 | ||||||
Non-Current | |||||||
Convertible debentures | 10 | 25,101,132 | 14,033,992 | ||||
Long-term lease liability | 9 | - | 84,895 | ||||
Deferred income tax liability | 11 | 2,534,750 | 711,587 | ||||
TOTAL LIABILITIES | 28,276,853 | 15,135,869 | |||||
EQUITY | |||||||
Share capital | 12 | 78,901,944 | 67,491,167 | ||||
Share option and warrant reserve | 12 | 6,469,143 | 4,235,150 | ||||
Accumulated deficit | (34,346,954) | (18,566,260) | |||||
Other comprehensive income (loss) | 4,889,536 | (72,466) | |||||
TOTAL EQUITY | 55,913,669 | 53,087,591 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 84,190,522 | $ | 68,223,460 |
Nature of operations (Note 2)
Commitments (Notes 9 and 10)
Subsequent event (Note 18)
The accompanying notes are an integral part of the financial statements
These financial statements were authorized for issue by the Board of Directors on February 17, 2021
"Tim Gabruch" | "Trevor Thiele" | |
Tim Gabruch, CEO, Director | Trevor Thiele, Director |
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Isoenergy Ltd. published this content on 18 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 February 2022 00:50:02 UTC.