Kaizen Discovery : Consolidated financial statements as at March 31, 2023

Kaizen Discovery Inc.

Condensed Interim Consolidated Financial Statements

Table of contents

Condensed interim consolidated statements of financial position

1

Condensed interim consolidated statements of income (loss) and comprehensive income (loss)

2

Condensed interim consolidated statements of changes in shareholders' equity

3

Condensed interim consolidated statements of cash flows

4

Notes to the condensed interim consolidated financial statements

5-12

March 31,

December 31,

Notes

2023

2022

Assets

Current assets

Cash

$

919

$

867

Short-term financial assets

88

139

Receivables

20

15

Prepaid expenses and deposits

12

288

282

Total current assets

1,315

1,303

Non-current assets

Other assets

44

44

Property, plant and equipment

59

63

Mineral properties

3

3,416

3,419

Total assets

$

4,834

$

4,829

Liabilities

Current liabilities

Accounts payable and accrued liabilities

12

$

312

$

207

Provision

57

57

Total current liabilities

369

264

Non-current liabilities

Non-current provision

4

-

467

Total liabilities

$

369

$

731

Shareholders' equity

Share capital

5

$

62,980

$

62,916

Share-based payment reserve

10

4,670

4,696

Other reserves

452

452

Share purchase warrants

5

1,291

1,291

Accumulated other comprehensive loss

(523)

(519)

Accumulated deficit

(64,405)

(64,738)

Total shareholders' equity

$

4,465

$

4,098

Total liabilities and shareholders' equity

$

4,834

$

4,829

Description of business and going concern (Note 1)

Subsequent event (Note 13)

Approved and authorized for issue on behalf of the Board on May 4, 2023:

/s/ Terry Krepiakevich

/s/ Eric Finlayson

Terry Krepiakevich, Director

Eric Finlayson, Director

Three months ended March 31,

Notes

2023

2022

Operating expenses

Exploration expenses

7

$

(247)

$

(940)

Administrative expenses

8

(388)

(752)

Loss from operations

(635)

(1,692)

Other income (expenses)

Interest income

8

10

Loss on foreign exchange

(3)

(52)

Interest expense

-

(11)

Depreciation expense

(4)

(3)

Other income

4, 6

967

579

Income (loss) before income taxes

333

(1,169)

Income taxes

-

-

Net income (loss) for the period

$

333

$

(1,169)

Other comprehensive income (loss)

Items that will not be reclassified subsequently to loss:

Change in fair value of marketable securities

-

13

Items that may be reclassified subsequently to loss:

Currency translation adjustment

(4)

(51)

Total other comprehensive loss for the period

$

(4)

$

(38)

Total comprehensive income (loss) for the period

$

329

$

(1,207)

Earnings (loss) per share

9

Basic

$

0.01

$

(0.02)

Diluted

$

0.01

$

(0.02)

Weighted average number of shares outstanding

Basic

65,895,893

65,828,426

Diluted

66,387,559

65,828,426

Accumulated

Share-based

Share

other

Notes

Number of

Share

payment

Other

purchase comprehensive

Accumulated

shares

capital

reserve

reserves

warrants

loss

deficit

Total

Balance at January 1, 2022

65,828,426

62,916

4,103

452

1,291

(744)

(60,167)

7,851

Net loss for the period

-

-

-

-

-

-

(1,169)

(1,169)

Other comprehensive loss

-

-

-

-

-

(38)

-

(38)

Share-based payments

-

-

320

-

-

-

-

320

Balance at March 31, 2022

65,828,426

$

62,916

$

4,423

$

452

$

1,291

$

(782)

$

(61,336)

$

6,964

Balance at January 1, 2023

65,828,426

$

62,916

$

4,696

$

452

$

1,291

$

(519)

$

(64,738)

$

4,098

Net income for the period

-

-

-

-

-

-

333

333

Settlement of restricted share units

10

114,566

64

(67)

-

-

-

-

(3)

Other comprehensive loss

-

-

-

-

-

(4)

-

(4)

Share-based payments

-

-

41

-

-

-

-

41

Balance at March 31, 2023

65,942,992

$

62,980

$

4,670

$

452

$

1,291

$

(523)

$

(64,405)

$

4,465