ParcelPal Logistics Inc.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited - expressed in Canadian Dollars)
|
Notes
|
March 31,
2023
$
|
December 31,
2022
$
| |||||||||
ASSETS
| |||||||||||
Current assets
| |||||||||||
Cash
|
42,953
|
76,661
| |||||||||
Accounts receivable
|
4
|
162,133
|
237,506
| ||||||||
Prepaid expenses
|
31,837
|
31,858
| |||||||||
236,923
|
346,025
| ||||||||||
Customer contract
|
3,6
|
3,457,732
|
3,707,137
| ||||||||
Vehicles and Right-of-use assets
|
5
|
435,448
|
507,669
| ||||||||
Total assets
|
4,130,103
|
4,560,831
| |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
| |||||||||||
Current liabilities
| |||||||||||
Accounts payable and accrued liabilities
|
9
|
2,003,008
|
2,027,939
| ||||||||
Purchase obligation
|
3
|
1,615,043
|
1,616,704
| ||||||||
Convertible Note
|
13
|
1,534,893
|
1,536,139
| ||||||||
Sales tax payable
|
719,087
|
682,200
| |||||||||
Short-term loan payable
|
7
|
325,443
|
396,201
| ||||||||
Lease obligations - current
|
12
|
-
|
58,012
| ||||||||
6,197,474
|
6,317,195
| ||||||||||
Lease obligations
|
12
|
-
|
10,320
| ||||||||
Total liabilities
|
6,197,474
|
6,327,515
| |||||||||
SHAREHOLDERS' (DEFICIT) EQUITY
| |||||||||||
Share capital
|
8
|
19,605,111
|
18,928,057
| ||||||||
Contributed surplus
|
3,674,139
|
3,664,546
| |||||||||
Accumulated other comprehensive income
|
177,966
|
197,980
| |||||||||
Deficit
|
(25,524,587
|
)
|
(24,557,267
|
)
| |||||||
Total shareholders' (deficit) equity
|
(2,067,371
|
)
|
(1,766,684
|
)
| |||||||
Total liabilities and shareholders' (deficit) equity
|
4,130,103
|
4,560,831
|
ParcelPal Logistics Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
Notes
|
2023
$
|
2022
$
| |||||||||
SALES
|
2,965,043
|
2,673,673
| |||||||||
COST OF SALES
|
14
|
(2,607,124
|
)
|
(2,261,119
|
)
| ||||||
GROSS PROFIT
|
357,919
|
412,554
| |||||||||
EXPENSES
| |||||||||||
Amortization of intangible assets
|
6
|
246,267
|
-
| ||||||||
Consulting fees
|
61,066
|
39,775
| |||||||||
Foreign exchange
|
8,397
|
(39,996
|
)
| ||||||||
Marketing and promotion
|
63,158
|
6,939
| |||||||||
Management and director fees
|
9
|
214,356
|
126,846
| ||||||||
Office and miscellaneous
|
175,723
|
464,743
| |||||||||
Professional fees
|
92,083
|
33,240
| |||||||||
Regulatory and filing fees
|
71,006
|
16,259
| |||||||||
Salaries
|
9
|
337,732
|
295,666
| ||||||||
Travel and accommodation
|
-
|
53,760
| |||||||||
(1,269,788
|
)
|
(997,232
|
)
| ||||||||
Loss before other items
|
(911,869
|
)
|
(584,678
|
)
| |||||||
Other expenses:
| |||||||||||
Debt Settlement
|
-
|
65,726
| |||||||||
Derivative liability
|
13
|
-
|
206,726
| ||||||||
Interest expense
|
13
|
(55,451
|
)
|
(223,890
|
)
| ||||||
Write-off of asset
|
5
|
-
|
176,901
| ||||||||
(55,451
|
)
|
225,463
| |||||||||
Net loss for the period
|
(967,320
|
)
|
(359,215
|
)
| |||||||
Foreign currency translation adjustment
|
(20,014
|
)
|
(113,396
|
)
| |||||||
Comprehensive loss for the period
|
(987,334
|
)
|
(472,611
|
)
| |||||||
Basic and diluted loss per share
|
(0.02
|
)
|
(0.00
|
)
| |||||||
Weighted average number of shares outstanding - basic and diluted
|
202,460,442
|
165,817,900
|
ParcelPal Logistics Inc.
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
Number of
shares
|
Amount
$
|
Contributed
Surplus
$
|
Deficit
$
|
AOCI
$
|
Total
$
| |||||||||||||||||||
Balance, December 31, 2021
|
155,838,733
|
17,622,777
|
3,620,300
|
(21,031,270
|
)
|
(4,202
|
)
|
207,605
| ||||||||||||||||
Shares issued pursuant to:
| ||||||||||||||||||||||||
Convertible note
|
15,125,000
|
718,125
|
-
|
-
|
-
|
718,125
| ||||||||||||||||||
Net and comprehensive loss for the period
|
-
|
-
|
-
|
(359,215
|
)
|
(113,396
|
)
|
(472,611
|
)
| |||||||||||||||
Balance, March 31, 2022
|
171,463,733
|
18,340,901
|
3,620,300
|
(21,390,485
|
)
|
(117,598
|
)
|
453,119
| ||||||||||||||||
Balance, December 31, 2022
|
196,374,591
|
18,928,057
|
3,664,546
|
(24,557,267
|
)
|
197,980
|
(1,766,684
|
)
| ||||||||||||||||
Shares issued pursuant to:
| ||||||||||||||||||||||||
Private placement
|
25,218,144
|
406,000
|
-
|
-
|
-
|
406,000
| ||||||||||||||||||
Issue costs
|
-
|
(9,853
|
)
|
-
|
-
|
-
|
(9,853
|
)
| ||||||||||||||||
Broker warrants
|
-
|
(9,593
|
)
|
9,593
|
-
|
-
|
-
| |||||||||||||||||
Bonus shares
|
6,500,000
|
227,500
|
-
|
-
|
-
|
227,500
| ||||||||||||||||||
Consulting shares
|
1,800,000
|
63,000
|
-
|
-
|
-
|
63,000
| ||||||||||||||||||
Net and comprehensive loss for the period
|
-
|
-
|
-
|
(967,320
|
)
|
(20,014
|
)
|
(987,334
|
)
| |||||||||||||||
Balance, March 31, 2023
|
229,892,735
|
19,605,111
|
3,674,139
|
(25,524,587
|
)
|
177,966
|
(2,067,371
|
)
|
ParcelPal Logistics Inc.
Condensed Interim Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
2023
$
|
2022
$
| |||||||
Operating activities
| ||||||||
Loss for the period
|
(967,320
|
)
|
(359,215
|
)
| ||||
Add non-cash items:
| ||||||||
Amortization
|
259,456
|
61,103
| ||||||
Accrued interest
|
-
|
220,755
| ||||||
Shares issued in lieu of consulting fees
|
290,500
|
-
| ||||||
(Gain) / Loss on debt settlement
|
-
|
(65,726
|
)
| |||||
Unrealized foreign exchange loss (gain)
|
(1,246
|
)
|
(42,774
|
)
| ||||
Fair value of derivative
|
-
|
(206,726
|
)
| |||||
Changes in non-cash working capital items
| ||||||||
Sales tax payable
|
36,887
|
50,742
| ||||||
Prepaid expenses
|
21
|
(17,626
|
)
| |||||
Accounts receivable
|
75,373
|
(62,837
|
)
| |||||
Accounts payable and accrued liabilities
|
(24,931
|
)
|
122,295
| |||||
Net cash flows used in operating activities
|
(331,260
|
)
|
(300,009
|
)
| ||||
Investing activity
| ||||||||
Sale of vehicles
|
-
|
144,500
| ||||||
Purchase of vehicles
|
-
|
(37,150
|
)
| |||||
Net cash flows provided (used) by investing activity
|
-
|
107,350
| ||||||
Financing activities
| ||||||||
Private placement
|
406,000
|
-
| ||||||
Issue costs
|
(9,853
|
)
|
-
| |||||
Loan repayments
|
(86,681
|
)
|
-
| |||||
Lease payments
|
(5,184
|
)
|
(73,214
|
)
| ||||
Net cash flows provided (used) by financing activities
|
304,282
|
(73,214
|
)
| |||||
Foreign exchange on cash
|
(6,730
|
)
|
(23,017
|
)
| ||||
Change in cash during the period
|
(33,708
|
)
|
(288,890
|
)
| ||||
Cash - beginning of the period
|
76,661
|
551,961
| ||||||
Cash - end of the period
|
42,953
|
263,071
| ||||||
Supplemental cash flow information:
| ||||||||
Income taxes paid
|
-
|
- | ||||||
Interest paid
|
51,136
|
8,914
| ||||||
Non-Cash Items:
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
1. |
NATURE OF OPERATIONS AND GOING CONCERN
|
2. |
BASIS OF PRESENTATION
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
3. |
ASSET ACQUISITION
|
Purchase price consideration
| $ | |||
Consideration - cash
|
868,129
| |||
Consideration - shares
|
269,467
| |||
Fair value of consideration
|
1,137,596
| |||
Vehicles
|
452,343
| |||
Customer contract
|
685,253
| |||
Total net assets acquired
|
1,137,596
|
4. |
ACCOUNTS RECEIVABLE
|
March 31, 2023
$
|
December 31, 2022
$
| |||||||
Accounts receivable
|
162,133
|
237,506
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
5. |
VEHICLES AND RIGHT-OF-USE ASSETS
|
Vehicles
$
|
ROU Assets
$
|
Total
$
| ||||||||||
Cost
| ||||||||||||
Balance, December 31, 2021
|
198,745
|
839,699
|
1,038,444
| |||||||||
Additions
|
452,323
|
-
|
452,323
| |||||||||
Disposal
|
(198,745
|
)
|
(633,671
|
)
|
(832,416
|
)
| ||||||
Foreign exchange
|
23,097
|
-
|
23,097
| |||||||||
Balance, December 31, 2022
|
475,420
|
206,028
|
681,448
| |||||||||
Disposal
|
-
|
(206,028
|
)
|
(206,028
|
)
| |||||||
Foreign exchange
|
(386
|
)
|
-
|
(386
|
)
| |||||||
Balance, March 31, 2023
|
475,034
|
-
|
475,034
| |||||||||
Accumulated amortization
| ||||||||||||
Balance, December 31, 2021
|
93,217
|
292,874
|
386,091
| |||||||||
Amortization
|
25,817
|
158,253
|
184,070
| |||||||||
Disposal
|
(93,217
|
)
|
(303,759
|
)
|
(396,976
|
)
| ||||||
Foreign exchange
|
594
|
-
|
594
| |||||||||
Balance, December 31, 2022
|
26,411
|
147,368
|
173,779
| |||||||||
Amortization
|
13,189
|
-
|
13,189
| |||||||||
Disposal
|
-
|
(147,368
|
)
|
(147,368
|
)
| |||||||
Foreign exchange
|
(14
|
)
|
-
|
(14
|
)
| |||||||
Balance, March 31, 2023
|
39,586
|
-
|
39,586
| |||||||||
Balance, December 31, 2021
|
105,528
|
546,825
|
652,353
| |||||||||
Balance, December 31, 2022
|
449,009
|
58,660
|
507,669
| |||||||||
Balance, March 31, 2023
|
435,448
|
-
|
435,448
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
6. |
CUSTOMER CONTRACTS
|
$ | ||||
Balance, December 31, 2020
|
-
| |||
Additions
|
3,901,442
| |||
Foreign exchange
|
31,686
| |||
Balance, December 31, 2021
|
3,933,128
| |||
Additions
|
685,253
| |||
Amortization
|
(1,126,818
|
)
| ||
Foreign exchange
|
215,573
| |||
Balance, December 31, 2022
|
3,707,137
| |||
Amortization
|
(246,267
|
)
| ||
Foreign exchange
|
(3,138
|
)
| ||
Balance, March 31, 2023
|
3,457,732
|
7. |
LOAN PAYABLE
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
$ | ||||
Balance, December 31, 2021
|
-
| |||
Additions
|
677,200
| |||
Interest
|
105,706
| |||
Payments
|
(357,323
|
)
| ||
Foreign exchange
|
(29,382
|
)
| ||
Balance, December 31, 2023
|
396,201
| |||
Interest
|
51,136
| |||
Payments
|
(137,817
|
)
| ||
Foreign exchange
|
15,923
| |||
Balance, March 31, 2023
|
325,443
|
8. |
SHARE CAPITAL
|
a) |
On March 14, 2023, the Company issued 20,944,640 units, consisting of one common share of the Company and one share purchase warrants, at a price of $0.017 per Unit for gross proceeds of $356,000. The Company also issued 4,273,503 units consisting of one common share of the Company and one-half share purchase warrant, at a price of $0.012 for gross proceeds of $50,000. The warrants expire on March 14, 2025 and are exercisable at $0.05 per warrant. The warrants were fair valued at $nil. The Company incurred cash issue costs of $18,593 and issued 579,600 broker warrants on the same terms as the warrants contained in the units. The broker warrants were fair valued at $9,593 using the Black-Scholes Option Pricing Model using the following assumptions: Risk free rate - 3.5%, expected volatility - 128%, expected forfeiture rate - nil, expected dividends - nil, expected life - 2 years.
|
b) |
On March 16, 2023, the Company issued 1,800,000 common shares, valued at $63,000, for advertising and promotion expense.
|
c) |
On March 22, 2023, the Company issued 6,500,000 bonus shares to the officers and directors of the Company. The shares were fair valued at $227,500.
|
a) |
On January 1, 2022, the Company issued 2,500,000 common shares pursuant to the settlement of US$100,000 convertible debt, the shares were fair valued at $125,000.
|
b) |
On January 20, 2022, the Company issued 5,000,000 common shares pursuant to the settlement of US$200,000 convertible debt, the shares were fair valued at $250,000.
|
c) |
On February 15, 2022, the Company issued 7,625,000 common shares pursuant to the settlement of US$305,000 convertible debt, the shares were fair valued at $343,125.
|
d) |
On May 4, 2022, the Company issued 337,500 common shares pursuant to the settlement of US$13,500 convertible debt, the shares were fair valued at $11,813.
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
e) |
On May 9, 2022, the Company issued 9,850,000 common shares pursuant to the settlement of US$394,000 convertible debt, the shares were fair valued at $270,875.
|
f) |
On May 13, 2022, the Company issued 1,000,000 common shares in lieu of consulting fees, the shares were fair valued at $30,000.
|
g) |
On June 30, 2022, the Company issued 250,000 common shares in lieu of consulting fees, the shares were fair valued at $5,000.
|
h) |
On June 30, 2022, the Company issued 13,473,358 common shares pursuant to the Asset Acquisition, the shares were fair valued at $269,467.
|
Number of
Options
#
|
Weighted Average
Exercise Price
$
| |||||||
Balance, December 31, 2021
|
11,175,000
|
0.15
| ||||||
Granted
|
1,500,000
|
0.05
| ||||||
Expired
|
(700,000
|
)
|
0.18
| |||||
Balance, December 31, 2022
|
11,975,000
|
0.13
| ||||||
Forfeited
|
(5,950,000
|
)
|
0.13
| |||||
Expired
|
(450,000
|
)
|
0.32
| |||||
Balance, March 31, 2023
|
5,575,000
|
0.13
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
Expiry
Date
|
Exercise price
$
|
Remaining
life (years)
|
Options
outstanding
| |||||||||
August 15, 2023
|
0.21
|
0.38
|
300,000
| |||||||||
November 22, 2023
|
0.26
|
0.42
|
100,000
| |||||||||
May 2, 2024
|
0.27
|
1.09
|
150,000
| |||||||||
May 17, 2024
|
0.245
|
1.16
|
200,000
| |||||||||
June 17, 2024
|
0.245
|
1.22
|
300,000
| |||||||||
May 6, 2025
|
0.09
|
2.10
|
1,675,000
| |||||||||
July 22, 2025
|
0.09
|
2.31
|
100,000
| |||||||||
November 12, 2025
|
0.075
|
2.62
|
1,300,000
| |||||||||
January 22, 2026
|
0.145
|
2.82
|
1,250,000
| |||||||||
June 2, 2026
|
0.12
|
3.18
|
200,000
| |||||||||
5,575,000
|
Number of
Options
#
|
Weighted Average
Exercise Price
$
| |||||||
Balance, December 31, 2022
|
-
|
-
| ||||||
Issued
|
23,660,992
|
0.05
| ||||||
Balance, March 31, 2023
|
23,660,992
|
0.05
|
9. |
RELATED PARTY TRANSACTIONS
|
2023
$
|
2022
$
| |||||||
Management fees
|
214,356
|
126,846
| ||||||
Salaries and wages
|
-
|
18,750
| ||||||
214,356
|
145,596
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
10. |
SEGMENTED INFORMATION
|
Three months ended March 31,
| ||||||||
2023
|
2022
| |||||||
$ | $ | |||||||
Net gain (loss)
| ||||||||
Canada
|
(903,350
|
)
|
(471,994
|
)
| ||||
USA
|
(63,970
|
)
|
112,779
| |||||
(967,320
|
)
|
(359,215
|
)
|
March 31, 2023
|
December 31, 2022
| |||||||
$ | $ | |||||||
Assets
| ||||||||
Canada
|
145,908
|
291,183
| ||||||
USA
|
3,984,195
|
4,269,648
| ||||||
4,130,103
|
4,560,831
|
11. |
FINANCIAL INSTRUMENTS
|
• |
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;
|
• |
Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
|
• |
Level 3 - Inputs that are not based on observable market data.
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
12. |
LEASE OBLIGATIONS
|
$ | ||||
Balance, December 31, 2021
|
563,330
| |||
Interest expense
|
40,792
| |||
Lease termination
|
(342,936
|
)
| ||
Payments
|
(192,854
|
)
| ||
Balance, December 31, 2022
|
68,332
| |||
Payments
|
(5,182
|
)
| ||
Lease termination
|
(63,150
|
)
| ||
Balance, March 31, 2023
|
-
|
13. |
CONVERTIBLE PROMISSORY NOTE
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
Convertible Debt
$
|
Derivative Liability $ | |||||||
Balance, December 31, 2021
|
2,429,227
|
206,726
| ||||||
Interest expense
|
88,778
|
-
| ||||||
Accretion
|
200,497
|
-
| ||||||
Change in fair value of derivative liability
|
-
|
(206,726
|
)
| |||||
Conversion of convertible debt
|
(1,274,060
|
)
|
-
| |||||
Foreign exchange on loan
|
91,697
|
-
| ||||||
Balance, December 31, 2022
|
1,536,139
|
-
| ||||||
Foreign exchange on loan
|
(1,246
|
)
|
-
| |||||
Balance, March 31, 2023
|
1,534,893
|
-
|
ParcelPal Logistics Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the Three Months Ended March 31, 2023 and 2022
(Unaudited - expressed in Canadian Dollars)
|
14. |
COST OF SALES
|
2023
$
|
2022
$
| |||||||
Amortization of vehicles
|
13,189
|
61,103
| ||||||
Fuel
|
58,849
|
2,280
| ||||||
Short term vehicle rentals
|
284,438
|
200,334
| ||||||
Salaries and wages
|
2,250,648
|
1,997,402
| ||||||
2,607,124
|
2,261,119
|
15. |
SUBSEQUENT EVENTS
|
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Disclaimer
ParcelPal Logistics Inc. published this content on 30 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2023 00:18:22 UTC.