CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED
SEPTEMBER 30, 2022 AND 2021
(Expressed in Canadian Dollars)
INDEPENDENT AUDITOR'S REPORT | January 31, 2023 |
Edmonton, Alberta |
To the Shareholders of Cypherpunk Holdings Inc.
Opinion
We have audited the consolidated financial statements of Cypherpunk Holdings Inc. (the company), which comprise the consolidated statements of financial position as at September 30, 2022, and the consolidated statements of comprehensive income, changes in shareholders' equity and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at September 30, 2022, and the consolidated financial performance and consolidated 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 Consolidated Financial Statements section of our report. We are independent of the Company in accordance with ethical requirements that are relevant to our audit of the consolidated 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 consolidated financial statements for the year ended September 30, 2021 were audited by another auditor who expressed an unmodified opinion on those financial statements on January 30, 2022.
Other Information
Management is responsible for the other information. The other information comprises the information, other than the consolidated financial statements and our auditor's report thereon, which includes 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.
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.
(continues)
Independent Auditor's Report to the Shareholders of Cypherpunk Holdings Inc. (continued)
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated 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.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated 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 consolidated 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 consolidated 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 consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
(continues)
Independent Auditor's Report to the Shareholders of Cypherpunk Holdings Inc. (continued)
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.
The engagement partner on the audit resulting in this independent auditor's report is Jane Davidson, CPA, CA.
Kingston Ross Pasnak LLP
Chartered Professional Accountants
CYPHERPUNK HOLDINGS INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (EXPRESSED IN CANADIAN DOLLARS)
Years ended September 30 | 2022 | 2021 | ||||
Assets | ||||||
Current Assets | ||||||
Cash and cash equivalents (note 4) | $ | 18,537,221 | $ | 876,757 | ||
Receivables and prepaid expenses (note 5) | 147,610 | 242,129 | ||||
Convertible loan receivable (note 6) | - | 256,112 | ||||
Treasury management investments (note 7) | 60,037 | - | ||||
Bitcoin loan receivable (note 8) | - | 11,019 | ||||
18,744,868 | 1,386,017 | |||||
Cryptocurrencies (note 9) | 3,035 | 20,334,429 | ||||
Cryptocurrencies pledged as collateral (note 9 and 13) | - | 4,021,203 | ||||
Investments (note 10) | 3,859,808 | 4,620,462 | ||||
Other assets (net of accumlated amortization) (note 11) | 769,494 | 868,750 | ||||
Deferred tax asset (note 21) | 514,850 | - | ||||
$ | 23,892,055 | $ | 31,230,861 | |||
Liabilities | ||||||
Current Liabilities | ||||||
Accounts payable and accrued liabilities (note 12 and 17) | $ | 308,292 | $ | 321,514 | ||
Loan payable (note 13) | - | 1,185,806 | ||||
308,292 | 1,507,320 | |||||
Deferred tax liability (note 21) | - | 1,882,000 | ||||
308,292 | 3,389,320 | |||||
Shareholders' Equity | ||||||
Capital stock (note 14) | 18,572,547 | 18,559,920 | ||||
Reserves | 17,238,101 | 15,895,629 | ||||
Accumlated other comprehensive income | - | 7,803,853 | ||||
Retained deficit | (12,226,885) | (14,417,861) | ||||
23,583,763 | 27,841,541 | |||||
$ | 23,892,055 | $ | 31,230,861 | |||
Nature of operations and going concern (note 1) | ||||||
Subsequent events (note 23) | ||||||
SIGNED ON BEHALF OF THE BOARD | ||||||
(Signed) "Rubsun Ho" | (Signed) "Peter Tutlys" | |||||
Director | Director |
Page 4
The accompanying notes are an integral part of these consolidated financial statements.
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Cypherpunk Holdings Inc. published this content on 15 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2023 19:21:08 UTC.