Quantum eMotion : Interim FS as of June 30th 2022

QUANTUM eMOTION CORP.

(formerly Quantum Numbers Corp.)

Interim Condensed Financial Statements June 30, 2022 and 2021

(Unaudited, in Canadian dollars)

Index	Page
Condensed Statements of Financial Position	1
Condensed Statements of Loss and Comprehensive Loss	2
Condensed Statements of Changes in Shareholders' Equity	3
Condensed Statements of Cash Flows	4
Notes to Interim Condensed Financial Statements	5 -

QUANTUM eMOTION CORP. (formerly Quantum Numbers Corp.)

Condensed Statements of Financial Position As at June 30, 2022 and December 31, 2021 (Unaudited, in Canadian dollars)

	June 30,	December 31,
Notes	2022	2021
	$	$

Assets

Current assets:

Cash			2,832,781		1,021,552
Taxes receivable			91,890		57,030
Prepaid expenses and other			67,735		50,188
Investments	3		1,386,549		1,014,919
			4,378,955		2,143,689
Non-current assets:
Intellectual property	4		953,825		957,161
Total assets			5,332,780		3,100,850
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities			219,323		333,818
Non-current liabilities:
Deferred government grant			1,028		2,041
Loan payable			56,695		53,572
Total liabilities			277,046		389,431
Shareholders' Equity
Share capital	5		13,397,705		10,173,156
Contributed surplus	5		859,218		506,603
Deficit			(9,201,189)		(7,968,340)
			5,055,734		2,711,419
Total liabilities and Shareholders'			5,332,780		3,100,850
equity

See accompanying Notes to Interim Condensed Financial Statements.

Approved on behalf of the Board:
	"Francis Bellido"
	Francis Bellido	CEO
	"Marc Rousseau"
	Marc Rousseau	CFO

1

QUANTUM eMOTION CORP. (formerly Quantum Numbers Corp.)

Condensed Statements of Loss and Comprehensive Loss Periods ended June 30, 2022 and 2021

(Unaudited, in Canadian dollars)

				Three months ended			Six months ended
								June 30						June 30
	Notes		2022				2021		2022			2021
Expenses
Share-based payments	5,6	$		43,422		$	141,231	$		375,824		$	315,231
Management fees	6			111,438				67,162			266,938			133,689
Information technology				52,763				-			119,374			-
Professional fees				58,677				61,478			77,141			124,810
Investor relations								51,274						51,274
			18,062						57,266
Office				42,839				16,483			56,254			23,417
Research and development				27,000				-			52,960			-
Salaries				23,269				-			42,135			5,787
Travel				5,042				-			27,677			-
Filing and listing fees				17,380				36,176			23,293			48,974
Consulting fees				16,120				27,585			21,880			106,476
Financial expenses				5,220				1,613			11,793			3,498
Amortization	4			5,561				5,561			11,061			11,061
Insurance				9,618				3,678			9,618			7,229
Other				-				-			3,689			-
Promotion expenses				-				-			-			19,187
		$		436,411		$	412,241	$		1,156,903		$	850,633
Other items
Loss on fair value
remeasurement of
investments				(123,017)				-			(99,657)			-
Government grant				509				508			1,013			776
Financial income				18,375				-			23,970			-
Foreign currency loss				(504)				-			(1,272)			-
		$		(104,637)		$	508	$		(75,946)		$	776
Net loss and
	$		541,048		$	411,733	$		1,232,849		$	849,857
comprehensive loss
Basic and diluted loss per		$		0.004			$	0.004	$		0.009		$	0.009
share
Weighted average number
of common shares				135,355,012				102,111,354			133,457,368			97,833,390
outstanding

See accompanying Notes to Interim Condensed Financial Statements.

2

QUANTUM eMOTION CORP. (formerly Quantum Numbers Corp.)

Condensed Statements of Changes in Shareholders' Equity Periods ended June 30, 2022 and 2021

(Unaudited, in Canadian dollars)

		Number of	Number of	Share	Units to be	Contributed		Total
	Notes	shares to	Deficit
	shares	capital	issued	surplus	equity
		be issued
				$	$	$	$	$
Balance as of		114,012,838	-	10,173,156	-	506,603	(7,968,340)	2,711,419
December 31, 2021
Share-based payments	5	-	-	-	-	375,824	-	375,824
Share issue costs	5	-	-	340	-	-	-	340
Exercise of options	5	150,000	-	38,209	-	(23,209)	-	15,000
Exercise of warrants	5	21,240,000	-	3,186,000	-	-	-	3,186,000
Net loss		-	-	-	-	-	(1,232,849)	(1,232,849)
Balance as of		135,402,838	-	13,397,705	-	859,218	(9,201,189)	5,055,734
June 30, 2022
Balance as of		60,527,838	250,000	6,334,571	12,500	280,404	(6,405,692)	221,783
December 31, 2020
Share-based payments	5	-	-	-	-	315,231	-	315,231
Units issued for private placement	5	40,000,000	(250,000)	2,000,000	(12,500)	-	-	1,987,500
Share issue costs	5	-	-	(37,950)	-	-	-	(37,950)
Exercise of options	5	1,400,000	-	98,000	-	(28,000)	-	70,000
Exercise of warrants	5	1,850,000	-	277,500	-	-		277,500
Net loss		-	-	-	-	-	(849,857)	(849,857)
Balance as of		103,777,838	-	8,672,121	-	567,635	(7,255,549)	1,984,207
June 30, 2021

See accompanying Notes to Interim Condensed Financial Statements.

3

QUANTUM eMOTION CORP. (formerly Quantum numbers Corp.)

Condensed Statements of Cash Flows Periods ended June 30, 2022 and 2021 (Unaudited, in Canadian dollars)

			Three months ended		Six months ended
					June 30				June 30
	Notes	2022		2021	2022		2021
		$	$	$	$
Operating Activities
Net loss			(541,048)		(411,733)		(1,232,849)		(849,857)
Adjustments to net loss for non-cash
items
Share-based payments	5		43,422		141,231		375,824		315,231
Amortization	4				5,561				11,061
	5,561			11,061
Accretion expense			1,584		1,411		3,123		2,574
Government grant			(509)		(508)		(1,013)		(776)
Change in fair value of investments	3		123,017		-		99,657		-
Net changes in non-cash working capital
items
Taxes receivable			(49,501)		(30,544)		(34,860)		(81,272)
Prepaid expenses and other			(1,141)		(13,034)		(17,547)		(11,160)
Accounts payable and accrued			(19,250)		11,065		(114,495)		(335,028)
liabilities
			(437,865)		(296,551)		(911,099)		(949,227)
Investing Activities
Additions to intellectual property	4		-		-		(7,725)		-
Acquisition of investments	3		(140,605)		-		(1,148,583)		-
Proceeds from sale of investments	3		136,539		-		677,296		-
			(4,066)		-		(479,012)		-
			-
Financing Activities			-
Proceeds from loan payable			-		-		-		20,000
Proceeds from issuance of units	5		-		-		-		1,987,500
Share issuance costs			-		-		340		(37,950)
Exercise of options	5		-		-		15,000		70,000
Exercise of warrants	5		-		277,500		3,186,000		277,500
			-		277,500		3,201,340		2,317,050
			-
Increase (decrease) in cash			(441,931)		(19,051)		1,811,229		1,367,823
Cash, beginning of period			3,274,712		1,406,964		1,021,552		20,090
			-
Cash, end of period			2,832,781		1,387,913		2,832,781		1,387,913

See accompanying notes to condensed financial statements.

4