HELLO PAL INTERNATIONAL INC. HELLO PAL INTERNATIONAL INC.
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED NOVEMBER 30, 2021 AND 2020
(Unaudited - Expressed in Canadian Dollars)
NOTICE TO READER
Under National Instrument 51-102, Part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, 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 have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
HELLO PAL INTERNATIONAL INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited - Expressed in Canadian Dollars)
November 30, | February 28, | ||
2021 | 2021 | ||
Note | $ | $ | |
ASSETS | |||
Current assets | |||
Cash and cash equivalents | 1,776,313 | 1,415,013 | |
Receivables | 337,218 | 1,675,126 | |
Prepaid expenses | 917,091 | 506,306 | |
Due from related parties | 8 | 363,862 | - |
3,394,484 | 3,596,445 | ||
Cryptocurrency | 3 | 753,566 | - |
Property and equipment | 4 | 1,163,776 | 168,068 |
Investment in associate | 7 | 233,102 | - |
Mining assets | 5 | 9,928,422 | - |
Software application | 6 | 2,261,149 | 2,615,708 |
Total assets | 17,734,499 | 6,380,221 | |
LIABILITIES | |||
Current liabilities | |||
Accounts payable and accrued liabilities | 15 | 469,736 | 817,458 |
Due to related parties | 8 | 258,568 | 773,727 |
Lease obligations - short-term | 10 | 20,174 | 43,626 |
Loan payable | 11 | - | 10,000 |
748,478 | 1,644,811 | ||
Lease obligations | 10 | - | 8,864 |
Convertible notes - liability component | 12 | 88,798 | 143,082 |
837,276 | 1,796,757 | ||
SHAREHOLDERS' EQUITY | |||
Share capital | 13 | 28,174,252 | 18,883,542 |
Subscription receivable | 13 | (300,000) | (300,000) |
Shares to be issued | 14 | 2,025,000 | 2,025,000 |
Contributed surplus | 13 | 4,662,474 | 2,566,359 |
Convertible notes - equity component | 12 | 10,152 | 16,912 |
Accumulated other comprehensive (loss) income | (230,044) | 50,425 | |
Deficit | (21,949,613) | (18,658,774) | |
Total equity attributable to shareholders of the Company | 12,392,221 | 4,583,464 | |
Attributable to non-controlling interest | 4,505,002 | - | |
16,897,223 | 4,583,464 | ||
Total liabilities and shareholders' equity | 17,734,499 | 6,380,221 |
Nature of operations and going concern (Note 1)
Approved and authorized on behalf of the Board of Directors on January 25, 2022
"Gunther Roehlig" | Director | "Kean Li Wong" | Director |
3
The accompanying notes are an integral part of these condensed interim consolidated financial statements
HELLO PAL INTERNATIONAL INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
For the three and nine months ended November 30, 2021 and 2020
(Unaudited - Expressed in Canadian Dollars)
For the three months ended | For the nine months | ||||
November 30, | ended November 30, | ||||
2021 | 2020 | 2021 | 2020 | ||
Note | $ | $ | $ | $ | |
COMMISSION REVENUE | 4,390,538 | 4,449,799 | 17,596,813 | 8,740,211 | |
DIRECT COSTS | 3,725,732 | 3,936,828 | 15,892,908 | 8,041,825 | |
GROSS PROFIT | 664,806 | 512,971 | 1,703,905 | 698,386 | |
CRYPTOCURRENCY MINING REVENUE | 420,510 | - | 1,869,865 | - | |
ADMINISTRATIVE EXPENSES | |||||
Accounting and audit | 15,764 | 17,100 | 59,893 | 50,993 | |
Accretion | 12 | 682 | 1,471 | 3,435 | 13,289 |
Bitcoin revaluation loss | 8 | 28,065 | 18,584 | 28,065 | 26,204 |
Depreciation and amortization | 4, 5, 6 | 67,217 | 134,015 | 926,697 | 386,879 |
Foreign exchange (gain) loss | (7,842) | 438 | (1,988) | 1,159 | |
Interest expense | 8, 9, 12 | 5,783 | 12,158 | 18,335 | 69,736 |
Management and consulting fees | 15 | 25,184 | 55,836 | 115,671 | 153,200 |
Marketing | 905,215 | 16,610 | 1,910,160 | 178,632 | |
Legal | 19,664 | 11,907 | 70,680 | 29,763 | |
Office and miscellaneous | 94,160 | 42,780 | 352,576 | 103,318 | |
Transfer agent and filing fees | 15,167 | 16,486 | 60,642 | 29,665 | |
Salaries and benefits | 230,911 | 168,087 | 724,426 | 329,155 | |
Share-based payments | 13, 14, 15 | - | 841,932 | 1,595,751 | 909,432 |
Shareholder communications | 218,092 | 3,127 | 321,644 | 4,916 | |
Software application costs | 1,006 | 1,035 | 4,901 | 4,185 | |
Total Expenses | (1,619,068) | (1,341,566) | (6,190,888) | (2,290,526) | |
LOSS BEFORE OTHER INCOME (EXPENSE) | (533,752) | (828,595) | (2,617,118) | (1,592,140) | |
OTHER INCOME (EXPENSE) | |||||
Gain on disposal of mining assets | 342,955 | - | 342,955 | - | |
Share of loss in equity accounted investee | (66,898) | - | (66,898) | - | |
NET LOSS FOR THE PERIOD | (257,695) | (828,595) | (2,341,061) | (1,592,140) | |
OTHER COMPREHENSIVE INCOME | |||||
Digital currency revaluation | (127,509) | - | (600,321) | - | |
Exchange differences on translation of | |||||
foreign operations | 25,502 | 9,639 | 25,695 | 28,081 | |
COMPREHENSIVE LOSS FOR THE PERIOD | (359,702) | (818,956) | (2,915,687) | (1,564,059) | |
(LOSS) INCOME ATTRIBUTABLE TO: | |||||
Shareholders of the Company | (459,184) | (828,595) | (3,290,839) | (1,592,140) | |
Non-controlling interest | 201,489 | - | 949,778 | - | |
(257,695) | (828,595) | (2,341,061) | (1,592,140) | ||
COMPREHENSIVE (LOSS) INCOME | |||||
ATTRIBUTABLE TO: | |||||
Shareholders of the Company | (496,166) | (818,956) | (3,571,308) | (1,564,059) | |
Non-controlling interest | 136,464 | - | 655,621 | - | |
(359,702) | (818,956) | (2,915,687) | (1,564,059) | ||
NET LOSS PER SHARE - BASIC AND DILUTED | (0.00) | (0.01) | (0.01) | (0.02) | |
WEIGHTED AVERAGE NUMBER OF SHARES | |||||
OUTSTANDING | 165,845,381 | 118,634,833 | 162,677,576 | 97,619,607 | |
4 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements
HELLO PAL INTERNATIONAL INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIENCY)
(Unaudited - Expressed in Canadian dollars, except for share figures)
Convertible | ||||||||||
Notes - | ||||||||||
Number of | Share | Shares to | Subscriptions | Contributed | Equity | |||||
Shares | Capital | be issued | Received | Surplus | Component | AOCI | Deficit | NCI | Total | |
# | $ | $ | $ | $ | $ | $ | $ | $ | $ | |
Balance, February 29, 2020 | 72,985,091 | 9,407,317 | 2,078,700 | - | 2,580,192 | 95,513 | 10,842 | (15,058,858) | - | (886,294) |
Issuance of common shares pursuant to private | ||||||||||
placement (Note 13) | 9,993,099 | 599,586 | - | - | - | - | - | - | - | 599,586 |
Share issue costs | - | (14,563) | - | - | - | - | - | - | - | (14,563) |
Issuance of common shares pursuant to debt | ||||||||||
settlement (Note 13) | 17,130,438 | 1,027,822 | - | - | - | - | - | - | - | 1,027,822 |
Issuance of common shares pursuant to conversion of | ||||||||||
convertible notes (Note 12) | 14,843,128 | 890,588 | - | - | - | (73,900) | - | - | - | 816,688 |
Issuance of common shares pursuant to Vortex | ||||||||||
agreement (Note 14) | 23,940,000 | 3,351,600 | (2,078,700) | - | (1,050,300) | - | - | - | - | 222,600 |
Subscriptions received | - | - | - | 18,000 | - | - | - | - | - | 18,000 |
Share-based payments (Notes 13, 14) | - | - | - | - | 1,139,507 | - | - | - | - | 1,139,507 |
Net and comprehensive loss for the period | - | - | - | - | - | - | 28,081 | (1,592,140) | - | (1,564,059) |
Balance, November 30, 2020 | 138,891,756 | 15,262,350 | - | 18,000 | 2,669,399 | 21,613 | 38,923 | (16,650,998) | - | 1,359,287 |
Issuance of common shares pursuant to private | ||||||||||
placement (Note 13) | 13,333,332 | 3,000,000 | - | - | - | - | - | - | - | 3,000,000 |
Share issue costs | - | (5,545) | - | - | - | - | - | - | - | (5,545) |
Issuance of common shares pursuant to conversion of | ||||||||||
convertible notes (Note 12) | 535,714 | 153,602 | - | - | - | (4,701) | - | - | - | 148,901 |
Issuance of common shares pursuant to Vortex | ||||||||||
agreement (Note 14) | - | 239,400 | - | - | - | - | - | - | - | 239,400 |
Subscription receivable (Note 13) | - | (300,000) | - | (18,000) | - | - | - | - | - | (318,000) |
Issuance of common shares for exercise of options | 693,500 | 195,235 | - | - | (103,040) | - | - | - | - | 92,195 |
Issuance of common shares for exercise of warrants | 334,782 | 38,500 | - | - | - | - | - | - | - | 38,500 |
Contingent share consideration (Note 14) | - | - | 2,025,000 | - | - | - | - | - | - | 2,025,000 |
Net and comprehensive loss for the period | - | - | - | - | - | - | 11,502 | (2,007,776) | - | (1,996,274) |
Balance, February 28, 2021 | 153,789,084 | 18,583,542 | 2,025,000 | - | 2,566,359 | 16,912 | 50,425 | (18,658,774) | - | 4,583,464 |
Issuance of common shares pursuant to Offering (Note | ||||||||||
13) | 5,880,000 | 7,234,000 | - | - | 116,000 | - | - | - | - | 7,350,000 |
Share issue costs | - | (1,418,562) | - | - | 379,898 | - | - | - | - | (1,038,664) |
Issuance of common shares pursuant to conversion of | ||||||||||
convertible notes (Note 12) | 442,364 | 64,479 | - | - | - | (6,760) | - | - | - | 57,719 |
Issuance of common shares pursuant to acquisition of | ||||||||||
Crypto Pal (Note 5) | 1,800,000 | 2,214,000 | - | - | 36,000 | - | - | - | 3,849,381 | 6,099,381 |
Issuance of shares for services | 200,000 | 134,000 | - | - | - | - | - | - | - | 134,000 |
Issuance of common shares for exercise of options | 366,150 | 68,149 | - | - | (31,534) | - | - | - | - | 36,615 |
Issuance of common shares for exercise of warrants | 4,176,025 | 994,644 | - | - | - | - | - | - | - | 994,644 |
Share-based payments (Notes 13, 14) | - | - | - | - | 1,595,751 | - | - | - | - | 1,595,751 |
Net and comprehensive loss for the period | - | - | - | - | - | - | (280,469) | (3,290,839) | 655,621 | (2,915,687) |
Balance, November 30, 2021 | 166,653,623 | 27,874,252 | 2,025,000 | - | 4,662,474 | 10,152 | (230,044) | (21,949,613) | 4,505,002 | 16,897,223 |
5
The accompanying notes are an integral part of these condensed interim consolidated financial statements
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Hello Pal International Inc. published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 20:21:05 UTC.
