LENDIFIED HOLDINGS INC. Lendified Holdings Inc.
Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2020 and 2019
(Unaudited)
Notice of No Auditors' Review of Condensed Interim Consolidated Financial Statements
The accompanying unaudited condensed interim consolidated financial statements of Lendified 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 condensed interim consolidated 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.
Lendified Holdings Inc.
Condensed Interim Consolidated Statements of Financial Position (Unaudited) (Stated in Canadian Dollars)
March 31, | December 31, | |||
Consolidated Statement of Financial Position | Note | 2020 | 2019 | |
Assets | ||||
Current | ||||
Cash | $1,263,906 | $2,956,595 | ||
Current portion restricted cash | 6 | 1,201,027 | 1,532,787 | |
Current portion of loans receivable | 2 | 11,540,881 | 11,174,659 | |
Accounts receivable | 588,972 | 544,416 | ||
Prepaid expenses and deposits | 512,121 | 299,594 | ||
Due from shareholder | 122,607 | 121,619 | ||
Total current assets | $15,229,514 | $16,629,670 | ||
Loans receivable | 2 | 6,443,217 | 6,993,961 | |
Restricted cash | 6 | 811,614 | 561,545 | |
Property and equipment | 3 | 172,784 | 198,824 | |
Intangible assets | 4 | 76,362 | 91,656 | |
Right-of-use assets | 5 | 277,935 | 309,678 | |
Long term investment | 200,837 | 200,837 | ||
Goodwill | 326,194 | 326,194 | ||
Total assets | $23,538,457 | $25,312,365 | ||
Liabilities and Shareholders' Deficiency | ||||
Current | ||||
Accounts payable and accrued liabilities | $3,277,930 | $6,134,772 | ||
Current portion of loans payable | 6 | 30,562,732 | 32,039,787 | |
Current portion of lease liabilities | 5 | 164,037 | 156,594 | |
Puttable Class B shares | 8 | 0 | 2,037,401 | |
Convertible shareholder debt | 7 | 4,000,000 | 7,462,600 | |
Deferred revenue | 24,167 | 11,250 | ||
Total current liabilities | $38,028,866 | $47,842,404 | ||
Lease liabilities | 5 | $281,298 | $325,356 | |
Loans payable | 6 | 304,145 | 1,079,451 | |
Derivative Liability | 6 | 918,878 | 2,851,286 | |
$39,533,187 | $52,098,497 | |||
Shareholders' deficiency | ||||
Share capital | 9 | 23,417,644 | 9,449,920 | |
Contributed surplus | 4,517,809 | 4,518,555 | ||
Deficit | $(43,930,183) | $(40,754,607) | ||
Total shareholders' deficiency | (15,994,730) | (26,786,132) | ||
Total liabilities and shareholders' deficiency | $23,538,457 | $25,312,365 | ||
Going concern (Note 1) | ||||
Subsequent events (Note 19) | ||||
Approved by the Board on September 27, 2020: | ||||
Troy Wright (signed) | Perry Dellelce (signed) | |||
Director | Director |
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Lendified Holdings Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited) (Stated in Canadian Dollars)
Three month period | March 31, | March 31, | |||
Note | 2020 | 2019 | |||
Finance income | |||||
Interest income | $ 1,658,583 | $ 1,473,501 | |||
Financing related expenses | |||||
Interest and financing costs | 11 | 770,222 | 691,758 | ||
Provision for credit losses | 2 | 1,118,991 | 631,974 | ||
Total financing related expenses | 1,889,213 | 1,323,732 | |||
Financing margin | (230,630) | 149,769 | |||
Revenue | |||||
Platform access and transaction fees | 178,610 | 98,756 | |||
Other income | 294 | 70,472 | |||
Total revenue | 178,904 | 169,228 | |||
Operating expenses | |||||
Advertising and promotion | 65,727 | 100,494 | |||
Office and general | 110,374 | 150,098 | |||
Professional fees | 55,626 | 167,677 | |||
Interest and financing costs for corporate operations | 11 | 1,216,995 | 735,071 | ||
Salaries and benefits | 15 | 1,302,772 | 1,140,523 | ||
Technology and development | 217,427 | 195,051 | |||
Fair value adjustment on derivative liabilities | 74,852 | - | |||
Amortization and depreciation | 3,4 & 5 | 80,077 | 107,120 | ||
Total operating expenses | |||||
3,123,849 | 2,596,034 | ||||
Loss from operations | (3,175,576) | (2,277,037) | |||
Net loss and comprehensive loss for the year | $ | (3,175,576) | $ | (2,277,037) | |
Weighted average number of | |||||
shares outstanding | |||||
Basic | 6,115,862 | 5,449,715 | |||
Diluted | 6,115,862 | 5,449,715 | |||
Basic and diluted loss per | 12 | $ | (0.52) | $ | (0.42) |
share |
3
Lendified Holdings Inc.
Condensed Interim Consolidated Statements of Changes in Shareholders' Deficiency
(Unaudited) (Stated in Canadian Dollars)
Class A | Class B | Class C | Contributed | Deficit | Total | ||
Shares | Shares | Shares | Surplus | ||||
December 31, 2018 | $ | - | $ 3,207,685 | $ 5,040,045 | $ 1,764,856 | $ (25,855,979) | $ (15,843,393) |
Shares issued | - | 794,279 | - | - | - | 794,279 | |
Share issuance cost | - | (74,873) | - | - | - | (74,873) | |
Share-based payments (options) | - | - | - | - | - | - | |
Net loss and comprehensive loss for the | (2,277,037) | (2,277,037) | |||||
period | - | - | - | - | |||
March 31, 2019 | $ | - | $ 3,927,091 | $ 5,040,045 | $ 1,764,856 | $ (28,133,016) | $ (17,401,024) |
December 31, 2019
Share exchange
Conversion of convertible debenture Share issuance cost Share-based payments (options)
Net loss and comprehensive loss for the period
$ | - | $ 4,409,875 | $ 5,040,045 | $ 4,518,555 | $ (40,754,607) | $ (26,786,132) |
11,487,321 | (4,409,875) | (5,040,045) | - | - | 2,037,401 | |
11,980,323 | - | - | - | - | 11,980,323 | |
(50,000) | - | - | - | - | (50,000) | |
- | - | - | (746) | - | (746) | |
- | - | - | - | (3,175,576) | (3,175,576) |
March 31, 2020 | $23,417,644 | $ | - | $ | - | $ 4,517,809 | $ (43,930,183) | $ (15,994,730) |
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Lendified Holdings Inc.
Condensed Interim Consolidated Statements of Cash Flows (Unaudited)
(Stated in Canadian Dollars)
March 31, | March 31, | ||||
Note | 2020 | 2019 | |||
Cash flows from operating activities | |||||
Net loss and comprehensive loss for the year | $ | (3,175,576) | $ | (2,277,037) | |
Adjustments to reconcile net loss to net cash provided by | |||||
operating activities: | |||||
Amortization and depreciation | 3, 4 & 5 | 80,077 | 107,120 | ||
Share-based payments | (746) | - | |||
Provision for credit losses | 2 | 373,273 | 631,974 | ||
Fair value adjustment on on derivative liabilities | 74,852 | - | |||
Financing fees paid | (138,344) | (281,071) | |||
Amortization of financing fees | 109,529 | 265,606 | |||
Accretion on convertible shareholder debt | 249,373 | 30,712 | |||
Restricted cash | 81,691 | 1,076,619 | |||
Loans receivable | 2 | (188,751) | (2,095,810) | ||
Accounts receivable | (44,556) | 68,811 | |||
Prepaid expenses and deposits | (212,527) | 90,700 | |||
Accounts payables and accrued liabilities | 1,330,881 | (842,711) | |||
Loans payable | 6 | (1,975,978) | 1,228,571 | ||
Deferred revenue | 12,917 | (70,000) | |||
(3,423,886) | (2,066,516) | ||||
Cash flows from investing activities | |||||
Purchase of property and equipment | 3 | - | 106,872 | ||
Additions to intangible assets | 4 | (7,000) | 54,451 | ||
Repayment from (advances to) shareholder | (988) | (988) | |||
(7,988) | 160,335 | ||||
Cash flows from financing activities | |||||
Proceeds from issuance of share capital | - | 719,406 | |||
Issuance of debt | 1,538,301 | 2,768,554 | |||
Principal repaid on lease liabilities | 5 | (36,615) | (27,290) | ||
Issuance of derivative liabilites | 6 | 237,499 | 231,446 | ||
1,739,185 | 3,692,116 | ||||
Increase (decrease) in cash during the year | (1,692,689) | 1,785,935 | |||
Cash, beginning of year | 2,956,595 | 1,995,690 | |||
Cash, end of year | $1,263,906 | $3,781,625 | |||
Supplementary cash flow information (Note 17) |
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Lendified Holdings Inc. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 11:25:02 UTC.
