EnviroMetal Technologies : Interim Financial Statements - 3 and 9 month periods ended September 30, 2021

September 30,

December 31,

Assets

2021

2020

Current assets

Cash

$

1,508,364

$

5,511,314

Trade and other receivables

706,306

232,694

Inventories

4,859,120

800,193

Assets held for sale (Note 5)

478,066

366,966

Prepaid expenses and deposits

282,432

252,704

7,834,288

7,163,871

Non-current assets

Investment in Group 11 (Note 6)

617,446

700,124

Intangible assets (Note 7)

3,859,934

4,372,499

Plant and equipment (Note 7)

3,065,470

4,330,433

7,542,850

9,403,057

Total assets

$

15,377,138

$

16,566,928

Liabilities and equity

Current liabilities

Accounts payable and accrued liabilities (Note 8)

$

4,773,612

$

1,048,974

Due to (from) related parties (Note 8)

62,263

202,682

Deferred revenues

187,500

-

Loan payable (Note 12)

40,000

40,000

Lease liabilities (Note 9)

271,383

247,623

Advance royalty payable (Note 10)

-

45,549

5,334,758

1,584,828

Non-current liabilities

Lease liabilities (Note 9)

22,697

60,955

Advance royalty payable (Note 10)

-

486,842

22,697

547,797

Total liabilities

5,357,455

2,132,625

Equity

Share capital (Note 11)

29,727,484

29,447,944

Reserves (Note 11)

7,690,769

7,745,476

Contributed surplus (Note 11)

750,000

750,000

Accumulated deficit

(29,275,024)

(24,630,185)

Equity attributable to shareholders

8,893,229

13,313,235

Non-controlling interest

1,126,454

1,121,068

Total equity

10,019,683

14,434,303

Total liabilities and shareholders' equity

$

15,377,138

$

16,566,928

Going concern (Note 1) and Commitments (Note 19)

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

Approved by the Board of Directors of EnviroMetal Technologies Inc. on November 22, 2021:

/s/ Duane Nelson

/s/ Court Anderson

Three months ended September 30,

Nine months ended September 30,

2021

2020

2021

2020

Revenues

$

19,540

$

573,572

$

624,708

$

830,749

Expenses

Operating costs

(289,697)

(866,487)

(868,051)

(1,192,987)

Management and Employee costs

(393,338)

(347,417)

(1,096,411)

(1,152,726)

General and administration (Note 13)

(493,645)

(128,250)

(1,335,302)

(902,222)

Share-based payments (Note 11)

(30,213)

-

(30,213)

(985,890)

(1,206,893)

(1,342,154)

(3,329,977)

(4,233,825)

Loss before other items

(1,187,353)

(768,582)

(2,705,269)

(3,403,076)

Other items

Interest income

949

356

3,195

2,686

Interest and financing costs

(10,256)

(53,055)

(421,772)

38,133

Amortization (Note 7)

(449,730)

(448,419)

(1,392,224)

(1,346,030)

Loss on disposal of assets

-

13,572

(47,838)

(84,689)

Write-down of assets

(604,467)

-

(604,467)

-

Unrealised loss on investment in associate (Note 6)

(22,018)

-

(82,678)

-

Gain in settlement of advance royalty payable (Note 10

-

-

629,850

-

Expected credit loss (Note 19)

-

-

(117,104)

-

Foreign exchange

4,166

24,276

(15,439)

(52,828)

(1,081,356)

(463,270)

(2,048,477)

(1,442,728)

Loss and comprehensive loss

(2,268,709)

(1,231,852)

(4,753,746)

(4,845,804)

Loss and comprehensive loss attributable to:

Shareholders

(2,268,709)

(1,019,693)

(4,644,839)

(4,165,999)

Non-controlling interest

-

(212,160)

(108,907)

(679,806)

$

(2,268,709)

$

(1,231,853)

$

(4,753,746)

$

(4,845,805)

Net loss per common share, basic and diluted

(0.024)

(0.017)

(0.051)

(0.066)

Weighted-average number of common shares outstanding,

basic and diluted

93,696,002

74,249,153

93,585,562

73,096,709

Share capital

Reserves

Share-based

Contributed

Accumulated

Non-controlling

Shares #

Amount

payments

Warrants

surplus

deficit

interest

Total Equity

Balance, January 1, 2021

93,046,002

$

29,447,944

$

5,323,802

$

2,421,674

$

750,000

$

(24,630,185)

$

1,121,068

$

14,434,303

Issuance of shares for options

400,000

184,920

(84,920)

-

-

-

-

100,000

Shares issued for debt settlement (Note 10)

250,000

102,927

-

-

-

-

-

102,927

Share issuance costs (Note 11)

-

(8,307)

-

-

-

-

-

(8,307)

Share-based payments

-

-

30,213

-

-

-

-

30,213

Equity contribution from minority shareholder

-

-

-

-

-

-

114,293

114,293

Net loss for the period

-

-

-

-

-

(4,644,839)

(108,907)

(4,753,746)

Balance, September 30, 2021

93,696,002

$

29,727,484

$

5,269,095

$

2,421,674

$

750,000

$

(29,275,024)

$

1,126,454

$

10,019,683

Share capital

Reserves

Share-based

Contributed

Accumulated

Non-controlling

Shares #

Amount

payments

Warrants

surplus

deficit

interest

Total Equity

Balance, January 1, 2020 Restated (Note 4)

70,667,000

$

23,756,237

$

4,551,104

$

-

$

-

$

(18,510,151)

$

1,183,420

$

10,980,610

Private placement of units (Note 11)

3,344,001

1,725,505

-

782,496

-

-

-

2,508,001

Share issuance costs (Note 11)

-

(95,009)

-

12,090

-

-

-

(82,919)

Re-pricing of 2018 warrants

-

(1,301,810)

-

1,301,810

-

-

-

-

Issuance of shares for options

510,000

235,773

(108,273)

-

-

-

-

127,500

Share-based payments

-

-

985,890

-

-

-

-

985,890

Equity contribution from minority shareholder

-

-

-

-

-

-

620,737

620,737

Net loss for the period

-

-

-

-

-

(4,165,999)

(679,806)

(4,845,805)

Balance, September 30, 2020 Restated (Note 4)

74,521,001

$

24,320,696

$

5,428,721

$

2,096,396

$

-

$

(22,676,149)

$

1,124,351

$

10,294,014