Alterego Ventures 24 Corp. — Interim / Quarterly Report 2024

Aug 27, 2024

Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.)

(A Capital Pool Company)

Condensed Interim Financial Statements

For the Three and Six Months Ended June 30, 2024

(Expressed in Canadian dollars)

Unaudited Prepared by Management

Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.)

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The accompanying unaudited condensed interim financial statements of Alterego Ventures 24 Corp. for the three and six months ended June 30, 2024 have been prepared by management, reviewed by the Audit Committee and approved by the Board of Directors of the Company.

In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that these unaudited condensed interim financial statements have not been reviewed by its auditor.

Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.) Condensed Interim Statements of Financial Position

(Unaudited)

(Expressed in Canadian dollars)

As at June 30, 2024 December 31, 2023	As at June 30, 2024 December 31, 2023	As at June 30, 2024 December 31, 2023
ASSETS Current assets Cash $ 128,316 $ 176,035
128,316 176,035
Total assets $ 128,316 $ 176,035
Current liabilities Accounts payable and accrued liabilities $ 1,466 $ 20,281
Total current liabilities 1,466 20,281
Capital stock (note 4) 402,621 402,621 Share-based payments reserve 106,706 106,706 Deficit (382,477) (353,573)
		126,850 155,754
$ 128,316 $ 176,035

Nature of Business and Going Concern (Note 1)

On behalf of the Board:

Rita Alter	Director
Hillar Lilles	Director

The accompanying notes are an integral part of these unaudited condensed interim financial statements

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Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.) Condensed Interim Statements of Loss and Comprehensive Loss For the Three and Six Months Ended June 30

(Unaudited)

(Expressed in Canadian dollars)

	Three months ended	Three months ended	Six months ended	Six months ended
	June 30,		June 30,
	2024	2023	2024	2023
Expenses
Audit and accounting	1.278	3,087	4,985	6,174
Legal	2,536	11,232	13,114	11,232
Operating	332	5,166	10,805	11,388
Total expenses	4,146	19,475	28,904	28,794
Net loss and comprehensive loss for the period	$ 4,146	$19,475	$ 28,904	$ 28,794
Basic and diluted loss per share	$ 0.001	$ 0.007	$ 0.010	$ 0.010
Weighted average number of common shares	2,850,000	2,750,000	2,850,000	2,750,000
outstanding (Note 4)

The accompanying notes are an integral part of these unaudited condensed interim financial statements

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Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.) Condensed Interim Statements For the Six Months Ended June 30

(Unaudited) (Expressed in Canadian dollars)

	Capital	stock
	Shares	Amount	Reserves	Deficit	Total
		$	$	$	$
Balance, December 31, 2023	6,751,281	402,621	106,706	(353,573)	155,754
Net loss for theperiod	-	-	-	(28,904)	(28,904)
Balance, June 30, 2024	6,751,281	402,621	106,706	(382,477)	126,850

Balance, December 31, 2022	6,651,281	397,621	106,706	(304,913)	199,414
Net loss for theperiod	-	-	-	(28,794)	(28,794)
Balance, June 30, 2023	6,651,281	397,621	106,706	(333,707)	170,620

The accompanying notes are an integral part of these unaudited condensed interim financial statements

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Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.) Condensed Interim Statements of Cash Flows For the Six Months Ended June 30

(Unaudited)

(Expressed in Canadian dollars)

		Six months ended	Six months ended	June 30,
		2024		2023
Cash flows from operating activities:
Loss for the period	$	(28,904)	$	(28,794)
Change in non-cash working capital items:
Accounts payable and accrued liabilities		(18,815)		(2,852)
Net cash used in operating activities		(47,719)		(31,646)
Cash flows provided by (used in) financing activities:
Private placement of units		-		-
Share issuance costs		-		-
Net cash provided by financing activities		-		-
Increase (decrease) in during the period		(47,719)		(31,646)
Cash, beginning of period		176,035		218,336
Cash, end of period	$	128,316	$	186,689

The accompanying notes are an integral part of these unaudited condensed interim financial statements

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Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.) Notes to the Condensed Interim Financial Statements For the Three and Six Months Ended June 30, 2024

(Unaudited) (Expressed in Canadian dollars)

1. NATURE OF BUSINESS AND GOING CONCERN

A-Labs Capital V Corp. (the "Company") was incorporated by a Certificate of Incorporation issued pursuant to the provisions of the Canada Business Corporations Act on November 29, 2018. The registered office is located at 2482 Yonge Street, Unit 23, Toronto, Ontario M4P 2H5. On March 4, 2024 the Company announced that shareholders had approved a resolution to change the name of the Company to Alterego Ventures 24 Corp.

The Company is classified as a Capital Pool Company ("CPC") as defined in Policy 2.4 of the TSX Venture Exchange (the "Exchange"). The principal business of the Company is to identify and evaluate assets or businesses with a view to potentially acquire them or an interest therein by completing a purchase transaction, by exercising of an option or by any concomitant transaction. The purpose of such an acquisition is to satisfy the related conditions of a Qualifying Transaction (as defined below) under the Exchange rules.

As at June 30, 2024, the Company has issued 6,751,281 common shares for net proceeds of $402,621.

These financial statements have been prepared in accordance with International Financial Reporting Standards assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation. The financial statements do not include adjustments to amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations.

As a CPC, the Company's principal business is the identification and evaluation of assets, properties or businesses with a view to acquisition or participation therein subject, in certain cases, to shareholder approval and acceptance by the Exchange. Where an acquisition or participation is warranted (the "Qualifying Transaction"), additional funding may be required. The ability of the Company to fund its potential future operations and commitments is dependent upon the ability of the Company to obtain additional financing.

During the six months ended June 30, 2024 the Company incurred a loss in the amount of $28,904 (2023 - $28,794) and has a cumulative deficit of $382,477 (December 31, 2023 - $353,573). These conditions, along with the other matters described above, cast a material uncertainty on the Company's ability to continue as a going concern. Should the Company be unable to continue as a going concern, the adjustments may be material.

2. BASIS OF PREPARATION

Statement of compliance

IAS 34, Interim Financial Reporting using accounting policies consistent with International Financial Reporting IFRS Interpretations Committee.

The preparation of these unaudited condensed interim financial statements requires management to make judgements, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and exp necessary for a fair presentation have been included in these unaudited condensed interim financial statements. Interim results are not necessarily indicative of the results expected for the financial year. Actual annual results may differ from interim estimates. The significant judgements made by management applied in the preparation of these unaudited condensed interim financial statements are consistent with those applied and disclosed in the Comp December 31, 2023. For a description of the statements and related notes for the year ended December 31, 2023.

These unaudited condensed interim financial statements were authorized by the Board of Directors on August 26, 2024.

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Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.) Notes to the Condensed Interim Financial Statements For the Three and Six Months Ended June 30, 2024

(Unaudited) (Expressed in Canadian dollars)

2. BASIS OF PREPARATION (Continued)

Significant accounting estimates and judgments

The policies applied in these condensed interim financial statements follow the same accounting policies and methods of application as our most recent annual financial statements. Accordingly, they should be read in conjunction with our audited financial statements for the year ended December 31, 2023

judgments, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes may differ from these estimates. The significant judgments made by management in applying to the financial statements as at and for the year ended December 31, 2023.

Functional and presentation currency

functional currency. All

financial information is expressed in Canadian dollars unless otherwise stated and have been rounded to the nearest dollar.

3. CASH RESTRICTION

The proceeds raised from the issuance of share capital may only be used to identify and evaluate assets or businesses for future investment, with the exception that not more than $3,000 per month may be used for general and administrative expenses of the Company. These restrictions may apply until completion of the Qualifying Transaction by the Company as pursuant to the policies of the Exchange.

4. CAPITAL STOCK

Authorized

Unlimited number of common voting shares without nominal or par value.

Issued Common Shares

Issued Common Shares
Issued share capital is as follows:
Shares issued for cash	6,751,281
Balance,December 31,2023 and June 30,2024	6,751,281

The 3,901,281 shares issued during the seed financing and the subsequent non-brokered private placement are subject to escrow conditions pursuant to the policies of the TSX-V. The Company has entered into a new escrow agreement dated June 11, 2021 with TSX Trust Company and its shareholders in connection with the IPO. These shares are considered contingently issuable under IFRS until the Company completes a Qualifying Transaction and will not be considered outstanding for purpose of the earnings per share calculation.

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Alterego Ventures 24 Corp. (formerly A-Labs Capital V Corp.) Notes to the Condensed Interim Financial Statements For the Three and Six Months Ended June 30, 2024

(Unaudited) (Expressed in Canadian dollars)

4. CAPITAL STOCK (Continued)

Options

During the year ended December 31, 2021, the corporation granted 665,128 options to its officers and directors.

The following summarizes the stock option activities under the plan:

						Number	Ave Ex Price
Outstanding and exercisable, December	31,	2023	and June	30,	2024	665,128	$0.088

The Company had the following stock options outstanding at June 30, 2024 and December 31, 2023:

Expiry Date	2024	2023	Exercise
			Price
June 11, 2031	156,052	156,052	$ 0.05
August 24, 2031	509,076	509,076	0.10
	665,128	665,128

Warrants

The company issued 275,000 warrants in connection with the financing completed during 2021. The warrants are exercisable at $0.10 and expire on August 24, 2026.

Loss Per Share

The calculation of basic and diluted loss per share for the six months ended June 30, 2024 was based on the loss attributable to common shareholders of $28,904 (2023 - $28,794) and the weighted average number of shares outstanding of 2,750,000 (2023 - 2,750,000).

5. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Capital Management

The Company's objective when managing capital is to maintain its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders. The Company defines capital as

The Company's primary objective with respect to its capital management is to ensure that it has sufficient cash resources to fund the identification and evaluation of potential acquisitions. To secure the additional capital necessary to pursue these plans, the Company may attempt to raise additional funds through the issuance of equity or by securing strategic partners.

The Company is not subject to externally imposed capital requirements other than the cash restriction disclosed in Note 3.

Risk Disclosures and Fair Values

The Company's financial instruments, consisting of accrued liabilities, approximate fair values due to the relatively Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

As at June 30, 2024, the Company had accounts payable and accrued liabilities of $1,466 and had cash of $128,316 to meet its current obligations. As a result, the Company has minimal liquidity risk.

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