RADIO FUELS ENERGY CORP.
(formerly Mainstream Minerals Corporation)
Condensed Interim Consolidated Financial Statements
For the three and six months ended May 31, 2022 and 2021
(in Canadian dollars, unless otherwise stated)
(unaudited)
Notice of No Auditor Review of Condensed Interim Consolidated Financial Statements
Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the 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 interim consolidated financial statements of the Company have been prepared by management and approved by the Audit Committee and Board of Directors of the Company. The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
RADIO FUELS ENERGY CORP.
(formerly Mainstream Minerals Corporation)
Condensed Interim Consolidated Statements of Financial Position (unaudited)
(in Canadian dollars)
May 31, | November 30, | ||||||
2022 | 2021 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 3,922,594 | $ | 175,363 | |||
Marketable securities (Note 5) | 18,293,587 | 549,416 | |||||
Other receivables (Note 6) | 17,264 | 35,436 | |||||
Prepaid expenses | 155,921 | 333,151 | |||||
Restricted cash (Note 9) | - | 25,482,792 | |||||
22,389,366 | 26,576,158 | ||||||
Exploration and evaluation assets (Note 7) | 20,435,404 | - | |||||
Total assets | $ | 42,824,770 | $ | 26,576,158 | |||
Liabilities | |||||||
Current liabilities | |||||||
Trade payables and accrued liabilities (Note 8) | $ | 89,632 | $ | 504,984 | |||
Subscription receipts (Note 9) | - | 25,462,307 | |||||
Total liabilities | 89,632 | 25,967,291 | |||||
Equity | |||||||
Share capital (Note 9) | 46,110,625 | 10,627,319 | |||||
Contributed surplus (Note 10) | 12,958,173 | - | |||||
Deficit | (16,333,660) | (10,018,452) | |||||
Total equity | 42,735,138 | 608,867 | |||||
Total liabilities and equity | $ | 42,824,770 | $ | 26,576,158 | |||
Nature of operations (Note 1) | |||||||
Approved on behalf of the board: | |||||||
Director | "Denis Laviolette" (signed) | ||||||
Director | "Jack Campbell" (signed) |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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RADIO FUELS ENERGY CORP.
(formerly Mainstream Minerals Corporation)
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (unaudited)
(in Canadian dollars)
Three months ended May 31, | Six months ended May 31 | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Expenses: | ||||||||
Consulting fees (Note 11) | $ | 120,500 | $ | 30,000 | $ | 799,197 | $ | 60,000 |
Professional fees | 27,908 | 34,638 | 67,928 | 53,972 | ||||
Investor relations, regulatory and filing fees | 152,159 | 1,018 | 314,225 | 5,914 | ||||
Office and general | 4,504 | 312 | 7,325 | 370 | ||||
Stock-based compensation | 3,147,970 | - | 3,147,970 | - | ||||
Exploration and evaluation expenditures | - | - | 4,105 | - | ||||
(3,453,041) | (65,968) | (4,340,750) | (120,256) | |||||
Unrealized loss on marketable securities | (1,650,830) | (358,797) | (880,177) | (991,974) | ||||
Realized loss on disposition of marketable securities | (1,193,944) | - | (1,193,944) | - | ||||
Foreign exchange gain | 12,998 | - | 12,998 | - | ||||
Other income | 67,338 | - | 86,665 | - | ||||
Net loss and comprehensive loss for the period | $(6,217,479) | $ | (424,765) | $(6,315,208) | $(1,112,230) | |||
Basic and diluted loss per share (Note 9 (c)) | $ | (0.04) | $ | (0.02) | $ | (0.05) | $ | (0.08) |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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RADIO FUELS ENERGY CORP.
(formerly Mainstream Minerals Corporation)
Condensed Interim Consolidated Statements of Changes in Equity (unaudited)
For the six months ended May 31, 2022 and 2021
Number of common | Contributed | ||||||||
shares | Share capital | Surplus | Accumulated Deficit | Total | |||||
Balance at December 1, 2021 | 17,319,233 | $ | 10,627,319 | $ | - | $ | (10,018,452) | $ | 608,867 |
Shares issued on private placements (Note 9(b)) | 63,707,024 | 25,482,810 | - | - | 25,482,810 | ||||
Shares issued on acquisiotn opf Radio Fuels Resources Corp. (Note 9(b)) | 58,823,529 | 20,000,000 | - | - | 20,000,000 | ||||
Shaers issued on acquisition of exploration and evaluation asset (Note 9(b)) | 2,000,000 | 680,000 | - | - | 680,000 | ||||
Cost of issuance - cash | - | (909,301) | - | - | (909,301) | ||||
Cost of issuance - units | 100,000 | 24,861 | 15,139 | 40,000 | |||||
Cost of issuance - broker warrants | - | (150,642) | 150,642 | - | - | ||||
FMV of warrants issued | - | (9,644,422) | 9,644,422 | - | - | ||||
FMV of stock options granted | - | - | 3,147,970 | - | 3,147,970 | ||||
Comprehensive loss for the period | - | - | - | (6,315,208) | (6,315,208) | ||||
Balance at May 31, 2022 | 141,949,786 | $ | 46,110,625 | $ | 12,958,173 | $ | (16,333,660) | $ | 42,735,138 |
Number of common | Contributed | ||||||||
shares | Share capital | Surplus | Accumulated Deficit | Total | |||||
Balance at December 1, 2020 | 10,342,042 | $ | 8,255,074 | $ | - | $ | (8,505,663) | $ | (250,589) |
Shares issued on private placement (Note 9(b)) | 1,764,773 | 600,023 | - | - | 600,023 | ||||
Shares issued pursuant to Share Exchange Agreements (Note 9(b)) | 5,212,418 | 1,772,222 | - | - | 1,772,222 | ||||
Comprehensive loss for the period | - | - | - | (1,112,230) | (1,112,230) | ||||
Balance at May 31, 2021 | 17,319,233 | $ | 10,627,319 | $ | - | $ | (9,617,893) | $ | 1,009,426 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
3
RADIO FUELS ENERGY CORP.
(formerly Mainstream Minerals Corporation)
Condensed Interim Consolidated Statements of Cash Flows (unaudited)
For the six months ended May 31, 2022 and 2021
2022 | 2021 | |||
Operating activities | ||||
Comprehensive loss for the period | $ | (6,315,208) | $ | (1,112,230) |
Adjustment for: | ||||
Unrealized loss on marketable securities | 880,177 | 991,974 | ||
Realized loss on sale of marketable securities | 1,193,944 | - | ||
Stock-based compensation | 3,147,970 | - | ||
Change in non-cash operating working capital | ||||
Other receivables | 18,172 | 1,426 | ||
Prepaid expenses | 177,230 | 683 | ||
Trade payables and accrued liabilities | (395,084) | 122,946 | ||
(1,292,799) | 4,799 | |||
Investing activities | ||||
Cash acquired from Radio Fuels Resources Corp. | 284,812 | - | ||
Purchase of marketable securities | (20,494,924) | - | ||
Proceeds from disposition of marketable securities | 676,633 | - | ||
(19,533,479) | - | |||
Financing activities | ||||
Proceeds from share issuance, net of issuance costs | 24,573,509 | 600,023 | ||
24,573,509 | 600,023 | |||
Increase in cash and cash equivalents | 3,747,231 | 604,822 | ||
Cash and cash equivalents, beginning of period | 175,363 | 841 | ||
Cash and cash equivalents, end of period | $ | 3,922,594 | $ | 605,663 |
Supplementary information:
The Company did not pay any income taxes during the above reporting periods.
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Radio Fuels Energy Corporation published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 15:03:02 UTC.