PERPETUAL INDUSTRIES INC.
CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 30, 2022
1
Table of Contents
Page | ||
PART I | ||
Item 1 | Unaudited Consolidated Financial Statements | 3 |
Item 2 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 27 |
Item 3 | Quantitative and Qualitative Disclosures about Market Risk | 37 |
Item 4 | Controls and Procedures | 37 |
PART II | ||
Item 5 | Other Information | 37 |
Item 6 | Exhibits | 38 |
2
ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Perpetual Industries, Inc. and a Subsidiary
Financial Statements
Condensed Consolidated Balance Sheets at June 30, 2022 (Unaudited) December 31, 2021 | F-1 | |
Condensed Consolidated Statements of Operations (Unaudited) for the six months ended June 30, 2022 and 2021 | F-2 | |
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) for the three and six months ended June 30, 2022 | F-3 | |
and 2021 | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2022 and 2021 | F-4 | |
Notes to Unaudited Condensed Consolidated Financial Statements | F-5 |
3
PERPETUAL INDUSTRIES, INC. AND SUBSIDIARY | ||||||||||
CONSOLIDATED BALANCE SHEETS | June 30, | December 31, | ||||||||
2022 | 2021 | |||||||||
ASSETS | (Unaudited) | (Audited) | ||||||||
Current assets | ||||||||||
Cash | $ | 183,847 | $ | 1,048,547 | ||||||
Accounts receivable | 58,235 | 96,020 | ||||||||
Inventory | 18,030 | 13,660 | ||||||||
Deposits and prepaids | 70,521 | 56,202 | ||||||||
Total current assets | 330,633 | 1,214,429 | ||||||||
Fixed assets, net of accumulated depreciation | 1,214,510 | 645,850 | ||||||||
Intangible assets - net | 5,141,219 | 901,905 | ||||||||
Indefinite life asset | 44,108 | 59,715 | ||||||||
Right of use asset | 780,421 | 880,019 | ||||||||
Goodwill | 3,243,049 | 7,813,049 | ||||||||
Total assets | $ | 10,753,940 | $ | 11,514,967 | ||||||
LIABILITIES | ||||||||||
Current liabilities: | ||||||||||
Accounts payable and accrued expenses | $ | 918,736 | $ | 864,913 | ||||||
Accounts payable and accrued expenses - related party | 280,252 | 256,041 | ||||||||
Notes payable - related party | 700,000 | 700,000 | ||||||||
Lease liability | 208,307 | 202,153 | ||||||||
Economic Injury Disaster Loan Program (EIDL) loan, current | ||||||||||
maturities | 3,036 | 3,036 | ||||||||
Total current liabilities | 2,110,331 | 2,026,143 | ||||||||
Lease liability, long term | 572,187 | 677,906 | ||||||||
Payroll protection program loan | 124,772 | 124,772 | ||||||||
Economic Injury Disaster Loan Program (EIDL) loan, long-term | 148,932 | 145,964 | ||||||||
Total liabilities | 2,956,222 | 2,974,785 | ||||||||
Commitments and contingencies (Note 19) | ||||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; | ||||||||||
Series A: 160 shares authorized; 2 and 0 shares issued and outstanding at | ||||||||||
June 30, 2022 and December 31, 2021, respectively | - | - | ||||||||
Series B: 2,000,000 shares authorized; 2,000,000 and 0 shares issued and | ||||||||||
outstanding at June 30, 2022 and December 31, 2021, respectively | 200 | 200 | ||||||||
Common stock, $0.001 par value; 500,000,000 shares authorized; | ||||||||||
81,341,500 and 78,137,800 issued and outstanding at June 30, 2022 and | ||||||||||
December 31, 2021 respectively | 81,341 | 78,138 | ||||||||
Common stock to be issued | 212,070 | 217,070 | ||||||||
Unearned compensation | (421,151) | - | ||||||||
Additional paid in capital | 21,453,921 | 20,437,326 | ||||||||
Other accumulated comprehensive loss | (11,086) | (10,078) | ||||||||
Accumulated deficit | (13,517,577) | (12,182,474) | ||||||||
Total stockholders' equity | 7,797,718 | 8,540,182 | ||||||||
Total liabilities and stockholders' equity | $ | 10,753,940 | $ | 11,514,967 | ||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements.
F-1
4
PERPETUAL INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues | |||||||||||||||
Service revenues | $ | 707,114 | $ | 527,745 | $ | 2,192,509 | $ | 1,249,875 | |||||||
Product sales | 25,000 | 1,408,305 | 28,500 | 1,408,305 | |||||||||||
Cryptocurrency mining revenue | 40,162 | 9,897 | 86,742 | 20,181 | |||||||||||
Total revenues | 772,276 | 1,945,947 | 2,307,751 | 2,678,361 | |||||||||||
Cost of sales | 260,228 | 1,374,131 | 1,025,965 | 1,575,539 | |||||||||||
Gross profit | 512,048 | 571,816 | 1,281,786 | 1,102,822 | |||||||||||
Operating expenses | |||||||||||||||
General and administrative expenses | 653,778 | 239,921 | 1,314,554 | 395,658 | |||||||||||
Depreciation and amortization | 135,668 | 33,643 | 676,887 | 40,882 | |||||||||||
Outsource consulting fees | 131,470 | 489,256 | 258,096 | 760,543 | |||||||||||
General and administrative expenses, related party | 80,665 | 10,023 | 178,550 | 39,320 | |||||||||||
Management service, related party | 47,974 | 63,323 | 94,863 | 114,586 | |||||||||||
Research and development | 1,562 | 20,931 | 2,873 | 33,566 | |||||||||||
Stock-based compensation | - | 301,614 | - | 327,086 | |||||||||||
Total operating expenses | 1,051,117 | 1,158,711 | 2,525,823 | 1,711,641 | |||||||||||
Net operating loss | (539,069) | (586,895) | (1,244,037) | (608,819) | |||||||||||
Other income (expense) | |||||||||||||||
Interest expense | (22,307) | (33,404) | (41,596) | (54,265) | |||||||||||
Interest expense, related party | 2,275 | - | 2,275 | - | |||||||||||
Interest income - related party | - | 2,992 | - | 2,992 | |||||||||||
Other income | 1,432 | 359 | 3,310 | 668 | |||||||||||
Loss on settlement of debt | - | (30,962) | - | (30,962) | |||||||||||
Loss on impairment of digital currencies | (34,841) | - | (48,827) | - | |||||||||||
Loss on sale of digital currencies | (2,634) | - | (2,634) | - | |||||||||||
Loss on sale of disposal of assets | (3,350) | - | (3,350) | - | |||||||||||
Gain on settlement of debt | - | 15,000 | - | 15,000 | |||||||||||
Foreign currency transaction adjustments | (206) | (231) | (244) | (2,889) | |||||||||||
Total other income (expense) | (59,631) | (46,246) | (91,066) | (69,456) | |||||||||||
Net loss | (598,700) | (633,141) | (1,335,103) | (678,275) | |||||||||||
Unrealized translation gain (loss) | (331) | (149) | (1,008) | 1,597 | |||||||||||
Other comprehensive loss | $ | (599,031) | $ | (633,290) | $ | (1,336,111) | $ | (676,678) | |||||||
Basic and loss per share | $ | (0.01) | $ | (0.01) | $ | (0.02) | $ | (0.01) | |||||||
Basis and diluted weighted average common shares | |||||||||||||||
outstanding | 78,222,744 | 70,916,568 | 78,222,744 | 70,916,568 | |||||||||||
The accompanying notes are an integral part of these unaudited consolidated financial statements.
F-2
5
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Perpetual Industries Inc. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 21:03:20 UTC.