THE INX DIGITAL COMPANY, INC. | |
(FORMERLY - VALDY INVESTMENTS LTD.) | |
FINANCIAL STATEMENTS | |
AS OF DECEMBER 31, 2021 | |
(IN CANADIAN DOLLARS) | |
INDEX | |
Page | |
Independent Auditors' Report | 2-4 |
Annual Financial Statements: | |
Statements of Financial Position | 5 |
Statements of Comprehensive Loss | 6 |
Statements of Changes in Equity | 7 |
Statements of Cash Flows | 8 |
Notes to Financial Statements | 9-17 |
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Kost Forer Gabbay & Kasierer | Tel: +972-3-6232525 |
144A Menachem Begin Road | Fax: +972-3-5622555 |
Tel-Aviv 6492102, Israel | ey.com |
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Directors of
THE INX DIGITAL COMPANY INC (FORMERLY - VALDY INVESTMENTS LTD.)
Opinion
We have audited the financial statements of The INX Digital Company Inc. (Formerly - Valdy Investments Ltd.) ("the Company"), which comprise the statements of financial position as of December 31, 2021, and the statements of comprehensive loss, statements of changes in equity and statements of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and its financial performance and its cash flows for the year 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 Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company 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 Matter
The financial statements of the Company as of December 31, 2020, and for the year then ended were audited by another auditor who expressed an unmodified opinion on those financial statements on February 4, 2021.
Other Information
Management is responsible for the other information. The other information comprises Management's Discussion and Analysis.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
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Kost Forer Gabbay & Kasierer | Tel: +972-3-6232525 |
144A Menachem Begin Road | Fax: +972-3-5622555 |
Tel-Aviv 6492102, Israel | ey.com |
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If,
based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 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 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 Company'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 Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
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Kost Forer Gabbay & Kasierer | Tel: +972-3-6232525 |
144A Menachem Begin Road | Fax: +972-3-5622555 |
Tel-Aviv 6492102, Israel | ey.com |
Auditor's 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 auditor's 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 these 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:
- 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 Company'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 Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's 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 auditor's report. However, future events or conditions may cause the Company 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.
We 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.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to 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 independent auditors' report is Mr. Eli Barda.
"Kost Forer Gabbay & Kasierer" | |
Tel-Aviv, Israel | KOST FORER GABBAY & KASIERER |
May 2, 2022 | A Member of Ernst & Young Global |
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THE INX DIGITAL COMPANY, INC.
STATEMENTS OF FINANCIAL POSITION Canadian dollars
Note | December 31, | ||||||
2021 | 2020 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | 637,967 | 425,298 | |||||
Total assets | 637,967 | 425,298 | |||||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued liabilities | 219,309 | 22,648 | |||||
Total current liabilities | 219,309 | 22,648 | |||||
EQUITY: | |||||||
Share capital | 3 | 1,055,579 | 548,120 | ||||
Equity reserves | 3 | - | 75,846 | ||||
Accumulated deficit | (636,921) | (221,316) | |||||
Total equity | 418,658 | 402,650 | |||||
Total liabilities and equity | 637,967 | 425,298 | |||||
The accompanying notes are an integral part of the financial statements.
May 2, 2022 | "David Weild" | "Shy Datika" | "Gadi Levin" | |||
Date of approval of the | David Weild | Shy Datika | Gadi Levin | |||
financial statements | Chairman of the Board | Chief Executive Officer | Chief Finance Officer |
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Valdy Investments Ltd. published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2022 13:51:04 UTC.