SOUTHERN ARC MINERALS INC. CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED
MARCH 31, 2021 AND 2020
(Unaudited - Expressed in Canadian dollars)
NOTICE TO READER
CONDENSED INTERIM FINANCIAL STATEMENTS
The accompanying unaudited condensed interim financial statements of Southern Arc Minerals Inc. (the
"Company") for the three and nine months ended March 31, 2021, have been prepared by management and are the responsibility of the Company's management and have not been reviewed by an auditor.
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SOUTHERN ARC MINERALS INC.
STATEMENTS OF FINANCIAL POSITION
(Unaudited - Expressed in Canadian dollars)
As at | March 31, 2021 | June 30, 2020 | ||
Assets | ||||
Current | ||||
Cash | $ | 919,659 | $ | 349,773 |
Receivables | 22,354 | 61,358 | ||
Prepaid expenses and other deposits | 14,275 | 29,130 | ||
Investments (Note 4) | 700,744 | 1,122,690 | ||
1,657,032 | 1,562,951 | |||
Investments (Note 4) | 1,920,149 | 6,111,198 | ||
Investments in associates (Note 3, 4) | - | 7,628,221 | ||
Property and equipment (Note 5) | 5,491 | 6,713 | ||
Right-of-use asset (Note 6) | - | 19,087 | ||
Total assets | $ | 3,582,672 | $ | 15,328,170 |
Liabilities | ||||
Current | ||||
Accounts payable and accrued liabilities | $ | 43,036 | $ | 143,882 |
Lease liabilities (Note 6) | - | 25,633 | ||
Total liabilities | 43,036 | 169,515 | ||
Shareholders' equity | ||||
Capital stock (Note 7) | 78,334,815 | 77,171,731 | ||
Treasury stock (Note 7) | (1,170,000) | (1,170,000) | ||
Equity reserve (Note 7) | 12,447,338 | 12,447,338 | ||
Accumulated other comprehensive loss | 5,429 | (1,715,892) | ||
Deficit | (86,077,946) | (71,574,522) | ||
Total shareholders' equity | 3,539,636 | 15,158,655 | ||
Total liabilities and shareholders' equity | $ | 3,582,672 | $ | 15,328,170 |
Nature of operations and going concern (Note 1) | ||||
Subsequent events (Notes 4c and 11) |
Approved by the Board of Directors and authorized for issuance on May 28, 2021:
On behalf of the Board of Directors
"John Proust" | Director | "Morris Klid" | Director |
The accompanying notes are an integral part of these condensed interim financial statements.
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SOUTHERN ARC MINERALS INC. STATEMENTS OF NET INCOME (LOSS) (Unaudited - Expressed in Canadian dollars)
Three months ended | Three months ended | Nine months ended | Nine months ended | |||||
March 31, 2021 | March 31, 2020 | March 31, 2021 | March 31, 2020 | |||||
Expenses | ||||||||
Depreciation | $ | 2,092 | $ | 43,955 | $ | 25,158 | $ | 131,861 |
Office and miscellaneous | 23,288 | 19,149 | 91,835 | 74,681 | ||||
Management fees (Note 8) | 60,000 | 105,000 | 220,000 | 340,000 | ||||
Foreign exchange loss (gain) | 1,354 | (12,099) | 10,300 | (13,622) | ||||
Investor relations | 611 | 1,661 | 4,183 | 3,933 | ||||
Professional fees | 62,343 | 34,035 | 283,985 | 129,765 | ||||
Interest expense | - | 3,327 | - | 5,423 | ||||
Transfer agent and filing fees | 9,335 | 13,023 | 64,366 | 29,168 | ||||
Travel | - | - | - | 449 | ||||
Loss before other items | (159,023) | (208,051) | (699,827) | (701,658) | ||||
Other income (expense) | 993 | 82,351 | 28,048 | 148,530 | ||||
Interest and other income | ||||||||
Realized and unrealized gain (loss) on | ||||||||
investments (Note 3, 4) | (370) | (347,949) | 161,973 | (590,069) | ||||
Equity loss from investment in associate (Note | ||||||||
3) | - | (273,432) | (239,690) | (891,467) | ||||
Gain on fair value adjustment on derivative | ||||||||
liability | - | 43,088 | - | 1,538,727 | ||||
Gain on dilution of investment in associate | - | - | - | 603,940 | ||||
Gain on retun of capital transaction | - | - | 6,698,969 | - | ||||
623 | (495,942) | 6,649,300 | 809,661 | |||||
Net income for the period | $ | (158,400) | $ | (703,993) | $ | 5,949,473 | $ | 108,003 |
Basic income per share | $ | (0.01) | $ | (0.04) | $ | 0.30 | $ | 0.01 |
Diluted income per share | $ | (0.01) | $ | (0.04) | $ | 0.30 | $ | 0.01 |
Weighted average shares outstanding | 22,768,283 | 16,549,562 | 19,544,736 | 16,650,598 | ||||
Diluted weighted average shares outstanding | 22,768,283 | 16,549,562 | 19,544,736 | 17,125,120 |
The accompanying notes are an integral part of these condensed interim financial statements.
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SOUTHERN ARC MINERALS INC.
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited - Expressed in Canadian dollars)
Three months ended, | Three months ended, | Nine months ended, | Nine months ended, | ||
March 31, 2021 | March 31, 2020 | March 31, 2021 | March 31, 2020 | ||
Net income (loss) for the period | (158,400) | 5,209,720 | 5,949,473 | $ | 108,003 |
Other comprehensive income (loss) | |||||
Items that may not be subsequently reclassified to profit/loss: | |||||
Change in fair value of investments | 117,549 | 5,905,791 | 1,721,321 | (5,179,353) |
Items that may be subsequently reclassified to profit/loss:
Net income tax expense related to | |||||
available for saleinvestmebt | - | (708,015) | - | - | |
Cumulative foreign currency | |||||
translation adjustment | - | (432,394) | - | - | |
117,549 | 4,765,382 | 1,721,321 | (5,179,353) | ||
Total comprehensive income (loss) for | |||||
the period | (40,851) | 9,975,102 | 7,670,794 | $ | (5,071,350) |
Comprehensive income (loss) attributable to: | |||||
Shareholders of Southern Arc | |||||
Minerals Inc. | (40,851) | 9,975,102 | 7,670,794 | $ | (5,071,350) |
(40,851) | 9,975,102 | 7,670,794 | $ | (5,071,350) | |
The accompanying notes are an integral part of these condensed interim financial statements.
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Southern Arc Minerals Inc. published this content on 28 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2021 22:59:02 UTC.
