AnalytixInsight Inc. — Interim / Quarterly Report 2021

May 26, 2021

AnalytixInsight Inc.

Condensed Consolidated Interim Financial Statements (Expressed in Canadian dollars)

For the three months ended March 31, 2021 and 2020

AnalytixInsight Inc.

Condensed consolidated interim statements of financial position (Expressed in Canadian dollars) (unaudited)

	Notes	March 31, 2021	December 31, 2020
ASSETS
Current
Cash		$ 1,824,970	$ 1,669,621
Restricted deposits		56,876	57,586
Accounts and other receivables	3	292,600	349,788
Prepaid expenses		112,841	146,418
Total current assets		2,287,287	2,223,413
Equipment	4	157,356	188,307
Intangible assets	5	-	107,276
Goodwill	5	678,643	687,116
Investment in associate	6	2,188,637	2,315,666
Other investment	9	60,000	60,000
Total assets		$ 5,371,923	$ 5,581,778
LIABILITIES
Current
Accounts payable and accrued liabilities	10	$ 338,174	$ 337,530
Lease liability	13	109,583	106,716
Deferred revenue		41,948	64,967
Loanpayable	14	199,445	-
Total current liabilities		689,150	509,213
Lease liability	13	51,892	80,457
Loan payable	14	40,000	40,000
Total liabilities		781,042	629,670
SHAREHOLDERS' EQUITY
Share capital	7	21,885,044	21,444,232
Reserves	8	2,014,315	2,108,862
Deficit		(19,518,651)	(18,830,172)
Currencytranslation reserve		210,173	229,186
Total shareholders' equity		4,590,881	4,952,108
Total liabilities and shareholders' equity		$ 5,371,923	$ 5,581,778
Nature of operations and going concern	1
Commitments and contingencies	11

Approved by the Board of Directors on May 26, 2021.

“Prakash Hariharan” “Chaith Kondragunta” Prakash Hariharan – Director Chaith Kondragunta – Director

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

3

AnalytixInsight Inc.

Condensed consolidated interim statements of loss and comprehensive loss (Expressed in Canadian dollars) (unaudited)

		Three months ended	Three months ended
	Notes	March 31,
		2021	2020
REVENUE
Services	12	**$953,328 ** $	645,346
TOTAL REVENUE		953,328	645,346
Cost of sales		622,749	544,964
Amortization	5	**106,878 **	124,734
Gross profit		**223,701 **	(24,352)
EXPENSES
Consulting and compensation	10	454,182	334,301
Professional fees		58,644	39,672
General and administration		101,460	58,121
Selling and marketing		50,941	48,370
Travel		27,471	112,526
Depreciation	4	30,858	11,276
Share-based compensation	8	109,714	-
TOTAL EXPENSES		833,270	604,266
Loss before other items		(609,569)	(628,618)
OTHER ITEMS
Interest expense		(3,323)	(4,999)
Other income		27,726	-
Share of (loss) income from investment in associate	6	(127,029)	122,716
Foreignexchange gain		**129 **	16,376
Net loss for the period		(712,066)	(494,525)
Other comprehensive (loss) gain
Foreign currency translation		(19,013)	181,374
Loss and comprehensive loss for theperiod		$(731,079) $	(313,151)
Weighted average number of shares outstanding – basic and diluted		81,617,636 77,755,206
Basic and diluted lossper share		$(0.01) $	(0.01)

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

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AnalytixInsight Inc.

Condensed consolidated interim statements of cash flows (Expressed in Canadian dollars) (unaudited)

		Three months ended	Three months ended	Three months ended
	Notes	March	31,
		2021		2020
Cash provided by (used in):
Operations:
Net loss for the period		$ (712,066)	$	(494,525)
Items not involving cash:
Depreciation	4	30,858		11,276
Amortization of intangible assets	5	106,878		124,734
Loss (income) from investment in associate	6	127,029		(122,716)
Share-based compensation	8	109,714		-
Net cash from operating activities before changes in working capital		(337,587)		(481,231)
Change in non-cash operating working capital		87,437		(123,873)
Net cash flows from operating activities		(250,150)		(605,104)
Investing:
Additions to equipment	4	-		(19,319)
Net cash flows from investing activities		-		(19,319)
Financing:
Payment of principal portion of lease liability	13	(25,698)		(24,113)
Exercise of stock options	7, 8	245,025		-
Exercise of warrants	7, 8	15,113		62,225
Net cash flows from financing activities		433,885		38,112
Effect of exchange rate change on cash		(28,386)		32,870
Change in cash for the period		183,735		(586,311)
Cash, beginning of the period		1,669,621		1,354,612
Cash, end of the period		$ 1,824,970	$	801,171
Supplementary information:
Right-of-use asset	4	$-	$	314,253

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

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AnalytixInsight Inc.

Condensed consolidated interim statement of changes in shareholders’ equity (Expressed in Canadian dollars) (unaudited)

	Number of shares	Share capital	Reserves	Deficit	Currency translation reserve Shareholders’ equity
Balance, December 31, 2019	77,751,787	$ 19,993,820	$ 1,687,466 $ (16,890,938)		$ 232,066 $ 5,022,414
Warrant exercise	311,125	97,835	(35,610)	-	- 62,225
Other comprehensive gain for the period	-	-	-	-	181,374 181,374
Net loss for theperiod	-	-	-	(494,525)	-(494,525)
Balance, March 31, 2020	78,062,912	$ 20,091,655	$ 1,651,856$ (17,385,463)		$ 413,440$ 4,771,488
Balance, December 31, 2020	81,122,549	$ 21,444,232	$ 2,108,862$ (18,830,172)		$ 229,186$ 4,952,108
Warrant exercise	22,550	18,423	(3,310)	-	- 15,113
Option expiry	-	-	(23,587)	23,587	- -
Option exercise	865,000	422,389	(177,364)	-	- 245,025
Option grant	-	-	109,714	-	- 109,714
Other comprehensive loss for the period	-	-	-	-	(19,013) (19,013)
Net loss for theperiod	-	-	-	(712,066)	-(712,066)
Balance, March 31, 2021	82,010,099	$ 21,885,044	$ 2,014,315$ (19,518,651)		$ 210,173$ 4,590,881

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

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AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

1. Nature of operations and going concern

AnalytixInsight Inc. (the “Company”) was continued as a corporation under the Ontario Business Corporations Act on August 18, 2014 . The Company’s registered and head office address is located at 100-2 Toronto Street, Toronto, ON, M5C 2B5, Canada. The Company’s shares are listed on the TSX Venture Exchange (“TSX.V”) under the symbol “ALY”. The Company has a wholly owned subsidiary in the United States named Euclides Technologies, Inc. (“Euclides”, formerly named CapitalCube Corp.) and a 49% interest in an Italian company named Marketwall SRL (“Marketwall”).

The Company provides financial research and content for investors, information providers, finance portals and media through its online portal www.capitalcube.com and through its institutional partner Connect platform (collectively referred to as the big data and artificial intelligence business segment). It also provides system integration services for the WorkForce Management (“WFM”) industry through its Euclides Technologies, Inc. subsidiary (referred to as the professional services business). Marketwall focuses on mobile opportunities especially in the business to business and business to business to consumer spaces.

The Company has a history of operating losses and expects to incur further losses in the development of its businesses. As at March 31, 2021, the Company has a working capital of $1,598,137 (December 31, 2020 – $1,714,200). If the Company is unable to achieve profitable operations, other sources of funding will be required, and if not available, it is possible that the Company will be unable to continue as a going concern.

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. These condensed consolidated interim financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material.

2. Significant accounting policies

a) Basis of preparation

The Company prepares its unaudited condensed consolidated interim financial statements in accordance with IFRS as issued by the IASB applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting (“IAS 34”). These statements are condensed and do not include all information required for full annual financial statements and should be read in conjunction with the annual consolidated financial statements as at and for the year ended December 31, 2020.

These condensed consolidated interim financial statements were approved by the Board of Directors on May 26, 2021.

These condensed consolidated interim financial statements have been prepared on a historical cost basis except for financial instruments classified as Fair Value Through Profit or Loss (“FVPL”), which are stated at their fair value. In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

The condensed consolidated interim financial statements are presented in Canadian dollars and include the accounts of the Company, having a Canadian dollar functional currency, and its wholly-owned subsidiary, Euclides, having a US dollar functional currency. The functional currency was determined through an analysis of factors outlined in IAS 21. In the event that there are changes impacting the factors used to determine the functional currency, the Company re-evaluates its functional currency. No such evaluation was necessary during the reporting periods presented.

b) Basis of presentation

The condensed consolidated interim financial statements consolidate the accounts of AnalytixInsight Inc. and its subsidiary, Euclides Technologies Inc. All intercompany transactions, balances and unrealized gains and losses from intercompany transactions are eliminated on consolidation.

Subsidiaries consist of entities over which the Company is exposed to, or has rights to, variable returns as well as the ability to affect those returns through the power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date control is transferred to the Company and are de-consolidated from the date control ceases. The condensed consolidated interim financial statements include all the assets, liabilities, revenues, expenses and cash flows of the Company and its subsidiary after eliminating inter-entity balances and transactions.

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AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

2. Significant accounting policies (continued)

c) Accounting changes

The unaudited condensed consolidated interim financial statements were prepared using the same accounting policies and methods as those used in the Company’s consolidated financial statements for the year ended December 31, 2020.

Certain pronouncements were issued by the IASB or the IFRIC that are mandatory for accounting periods commencing on or after January 1, 2022. Many are not applicable or do not have a significant impact to the Company and have been excluded. The following have not yet been adopted and are being evaluated to determine their impact on the Company.

IAS 1 – Presentation of Financial Statements (“IAS 1”) was amended in January 2020 to provide a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments clarify that the classification of liabilities as current or noncurrent is based solely on a company’s right to defer settlement at the reporting date. The right needs to be unconditional and must have substance. The amendments also clarify that the transfer of a company’s own equity instruments is regarded as settlement of a liability, unless it results from the exercise of a conversion option meeting the definition of an equity instrument. The amendments are effective for annual periods beginning on January 1, 2023.

IAS 37 – Provisions, Contingent Liabilities, and Contingent Assets (“IAS 37”) was amended. The amendments clarify that when assessing if a contract is onerous, the cost of fulfilling the contract includes all costs that relate directly to the contract – i.e. a full-cost approach. Such costs include both the incremental costs of the contract (i.e. costs a company would avoid if it did not have the contract) and an allocation of other direct costs incurred on activities required to fulfill the contract – e.g. contract management and supervision, or depreciation of equipment used in fulfilling the contract. The amendments are effective for annual periods beginning on January 1, 2022.

IAS 16 – Property, Plant and Equipment (“IAS 16”) was amended. The amendments introduce new guidance, such that the proceeds from selling items before the related property, plant and equipment is available for its intended use can no longer be deducted from the cost. Instead, such proceeds are to be recognized in profit or loss, together with the costs of producing those items. The amendments are effective for annual periods beginning on January 1, 2022.

IFRS 10 – Consolidated Financial Statements (“IFRS 10”) and IAS 28 – Investments in Associates and Joint Ventures (“IAS 28”) were amended in September 2014 to address a conflict between the requirements of IAS 28 and IFRS 10 and clarify that in a transaction involving an associate or joint venture, the extent of gain or loss recognition depends on whether the assets sold or contributed constitute a business. The effective date of these amendments is yet to be determined, however early adoption is permitted.

3. Accounts and other receivables

		March 31,	December 31,
		2021	2020
Trade receivables	$	235,687	$ 313,494
Other receivables		56,913	36,294
	$	292,600	$ 349,788

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AnalytixInsight Inc.

Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

4. Equipment

	Right-of-use asset	Right-of-use asset		Furniture & Fixtures		Computer hardware		Total
Cost:
Balance, December 31, 2019	$	7,279	$	-	$	54,732	$	62,011
Additions		278,100		11,646		-		289,746
Disposals		-		(11,646)		-		(11,646)
Effect of foreign currencyexchange difference		-		-		(1,079)		(1,079)
Balance, December 31, 2020	$	285,379	$	-	$	53,653	$	339,032
Effect of foreign currencyexchange difference		-		-		(661)		(661)
Balance, March 31, 2021	$	285,379	$	-	$	52,992	$	338,371
Depreciation:
Balance, December 31, 2019	$	-	$	-	$	27,664	$	27,664
Depreciation charge for the period		107,199		3,639		12,887		123,725
Disposals		-		(3,639)		-		(3,639)
Effect of foreign currencyexchange difference		-		-		2,975		2,975
Balance, December 31, 2020	$	107,199	$	-	$	43,526	$	150,725
Depreciation charge for the period		27,164		-		3,694		30,858
Effect of foreign currencyexchange difference		-		-		(568)		(568)
Balance, March 31, 2021	$	134,363	$	-	$	46,652	$	181,015
Net book value, December 31, 2020	$	178,180	$	-	$	10,127	$	188,307
Net book value, March 31, 2021	$	151,016	$	-	$	6,340	$	157,356

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AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

5. Intangible assets and goodwill

		Software	Customer relationships	Customer relationships		Total
Cost:
Balance, December 31, 2019	$	1,575,077	$	1,058,308	$	2,633,385
Effect of foreign currencyexchange difference		(31,046)		(20,862)		(51,908)
Balance, December 31, 2020	$	1,544,031	$	1,037,446	$	2,581,477
Effect of foreign currencyexchange difference		(19,040)		(12,792)		(31,832)
Balance, March 31, 2021	$	1,524,991	$	1,024,654	$	2,549,645
Amortization:
Balance, December 31, 2019	$	1,303,513	$	738,610	$	2,042,123
Charge for the period		224,361		273,234		497,595
Effect of foreign currencyexchange difference		(37,085)		(28,432)		(65,517)
Balance, December 31, 2020	$	1,490,789	$	983,412	$	2,474,201
Charge for the period		53,045		53,833		106,878
Effect of foreign currencyexchange difference		(18,843)		(12,591)		(31,434)
Balance, March 31, 2021	$	1,524,991	$	1,024,654	$	2,549,645
Net book value:
As at December 31, 2020	$	53,242	$	54,034	$	107,276
As at March 31, 2021	$	-	$	-	$	-
Goodwill
						Goodwill
Balance, December 31, 2019					$	700,931
Effect of foreign currencyexchange difference						(13,815)
Balance, December 31, 2020						687,116
Effect of foreign currencyexchange difference						(8,473)
Balance, March 31, 2021					$	678,643

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AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

6. Investment in associate

In January 2014, the Company registered a wholly owned subsidiary, Marketwall, which was based in Milan, Italy. Marketwall focused on mobile opportunities especially in the business to business and business to business to consumer spaces. On April 8, 2016, the Company and Grupo Intesa Sanpaolo (“Intesa Sanpaolo”) executed a definitive agreement pursuant to which Intesa Sanpaolo agreed to exercise their option to acquire a 33% share in the Company’s mobile subsidiary, Marketwall, for EUR 212,691 ($315,230). The Company consolidated Marketwall from the date of incorporation to October 11, 2016, when the Company’s ownership was further diluted to 49%. The Company’s ownership of Marketwall during the three months ended March 31, 2021 and year ended December 31, 2020 was 49%.

A continuity of the investment in Marketwall as an associate is as follows:

Balance, December 31, 2019	$ 1,876,511
Share of income for theperiod	439,155
Balance, December 31, 2020	$ 2,315,666
Share of loss for theperiod	(127,029)
Balance, March 31, 2021	$ 2,188,637

Summarized financial information for Marketwall as at March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and 2020 is as follows:

As at		March 31, 2021	December 31, 2020
Current and total assets	$	7,226,018	$ 6,542,133
Current and total liabilities		3,501,462	2,337,851
Total shareholders' equity		3,724,556	4,204,282
Three months ended		March 31, 2021	March 31, 2020
Revenue	$	974,641	$ 1,318,267
Operating expenses		(1,233,884)	(1,067,825)
Net(loss)income and comprehensive(loss)income		(259,243)	250,442

Included in Marketwall’s consolidated financial information are the results of its wholly owned subsidiary, InvestoPro. Summarized financial information for InvestoPro as at March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and 2020 is as follows:

As at	March 31, 2021 December 31, 2020	March 31, 2021 December 31, 2020
Current and total assets	$ 1,537,355 $	1,819,798
Current and total liabilities	99,982	258,799
Total shareholders' equity	1,437,373	1,560,999
Three months ended	March 31, 2021	March 31, 2020
Revenue	$ - $ -
Operating expenses	(40,020)	-
Net loss and comprehensive loss	(40,020)	-

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AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

7. Share capital

	Number of shares	Stated value
Balance, December 31, 2019	77,751,787	$ 19,993,820
Warrant exercise (Note 8)	311,125	97,835
Private placement	3,059,637	1,464,832
Cost of issue	-	(112,255)
Balance, December 31, 2020	81,122,549	$ 21,444,232
Warrant exercise (Note 8)	22,550	18,423
Option exercise (Note 8)	865,000	422,389
Balance, March 31, 2021	82,010,099	$ 21,885,044

On October 16, 2020, the Company closed a non-brokered private placement financing of 3,059,637 units at a price of $0.55 per unit for gross proceeds of $1,682,801. Each unit comprised one common share of the Company and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of $0.75 for a period of two years from the date of issue. The Company paid finder’s fees of $65,015 in relation to this private placement and issued 118,209 non-transferrable finder’s warrants. Each finder’s warrant entitles the holder to purchase one common share of the Company at a price of $0.75 for a period of two years from the date of issue.

8. Reserves

	No. of options Weighted average exercise price	Value of options vested	No. of warrants Weighted average exercise price	Value of warrants vested Total value
Balance, December 31, 2019	4,665,000 $ 0.38	$ 1,368,251	2,491,125 $ 0.59	$ 319,215 $ 1,687,466
Expired	(200,000) 0.35	(40,963)	- -	- (40,963)
Granted	650,000 0.57	248,260	1,648,027 0.75	249,709 497,969
Exercised (Note 7)	- -	-	(311,125) 0.20	(35,610) (35,610)
Balance, December 31, 2020	5,115,000 $ 0.40	$ 1,575,548	3,828,027 $ 0.59	$ 533,314 $ 2,108,862
Expired	(150,000) 0.19	(23,587)	- -	- (23,587)
Granted	400,000 0.68	109,714	- -	- 109,714
Exercised (Note 7)	(865,000) 0.28	(177,364)	(22,550) 0.15	(3,310) (180,674)
Balance, March 31, 2021	4,500,000 $ 0.46	$ 1,484,311	3,805,477 $ 0.69	$ 530,004 $ 2,014,315

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AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

8. Reserves (continued)

Stock option plan

The Company has an incentive stock option plan (the "Option Plan") which provides that the Board of Directors of the Company may from time to time, at its discretion, and in accordance with TSX.V requirements, grant to directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares. Included in the Option Plan are provisions that provide that the number of common shares reserved for issuance will not exceed 10% of the issued and outstanding common shares of the Company at the grant date. Vesting terms are determined at the time of grant by the Board of Directors.

The following options and warrants were outstanding as at March 31, 2021:

Stock options

								Grant date	Grant date
Number of options outstanding	Number of options exercisable	**Grant date **	Expiration date	Exercise price		Estimated grant date fair value vested		Expected volatility	Expected life (years)	Expected dividend yield	Risk-free interest rate		Share price
640,000	640,000	20-Dec-13	20-Dec-23	$	0.75	$	456,580	121%	10.00	0.00%	2.67%	$	0.85
520,000	520,000	26-Aug-16	26-Aug-21	$	0.22	$	81,626	98%	5.00	0.00%	0.72%	$	0.22
500,000	500,000	16-Mar-17	16-Mar-22	$	0.24	$	78,624	83%	5.00	0.00%	0.81%	$	0.24
630,000	630,000	14-Nov-17	14-Nov-22	$	0.47	$	183,121	99%	5.00	0.00%	1.67%	$	0.46
150,000	150,000	11-Dec-17	11-Dec-22	$	0.53	$	58,124	97%	5.00	0.00%	1.67%	$	0.54
75,000	75,000	6-Feb-18	6-Feb-23	$	0.49	$	32,622	140%	5.00	0.00%	2.04%	$	0.49
425,000	425,000	10-Oct-18	10-Oct-23	$	0.31	$	104,882	114%	5.00	0.00%	2.33%	$	0.31
575,000	575,000	31-Oct-19	31-Oct-24	$	0.36	$	155,584	103%	5.00	0.00%	1.56%	$	0.37
585,000	585,000	31-Aug-20	31-Aug-25	$	0.57	$	223,434	87%	5.00	0.00%	0.40%	$	0.57
400,000	100,000	16-Oct-20	16-Oct-23	$	0.68	$	109,714	85%	3.00	0.00%	0.34%	$	0.68
4,500,000	4,200,000			$	0.46	$	1,484,311		5.53

Expected volatility is based on the Company’s historical volatility.

The weighted average remaining life of the outstanding options at March 31, 2021 is 2.18 years (December 31, 2020 – 2.34 years).

Subsequent to March 31, 2021, 265,000 options were exercised at an average exercise price of $0.42. The market price of the shares on the date of exercise was $0.92.

Warrants

Number of warrants outstanding	Number of warrants exercisable	**Grant date **	Expiration date	Exercise price	Exercise price	Estimated grant date fair value vested	Expected volatility Expected life (years) Grant date	Expected volatility Expected life (years) Grant date	Expected dividend yield	Risk-free interest rate		Share price
2,000,000	2,000,000	25-Jun-19	25-Jun-22	$	0.65	257,155 $	83%	3.00	0.00%	1.42%	$	0.35
162,000	162,000	25-Jun-19	25-Jun-22	$	0.65	23,810 $	83%	3.00	0.00%	1.42%	$	0.35
1,529,818	1,529,818	16-Oct-20	15-Oct-22	$	0.75	217,969 $	79%	2.00	0.00%	0.23%	$	0.68
113,659	113,659	16-Oct-20	15-Oct-22	$	0.75	31,070 $	79%	2.00	0.00%	0.23%	$	0.68
3,805,477	3,805,477			$	0.69	530,004 $		2.57

Expected volatility is based on the Company’s historical volatility.

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AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

9. Financial instruments

Fair value of financial instruments

The Company's financial assets and financial liabilities as at March 31, 2021 and December 31, 2020 were as follows:

	Amortized cost	Amortized cost		FVPL		Total
December 31, 2020
Cash	$	1,669,621	$	-	$	1,669,621
Restricted deposits		57,586		-		57,586
Accounts and other receivables		349,788		-		349,788
Other investment		-		60,000		60,000
Accounts payable and accrued liabilities		(337,530)		-		(337,530)
Loan payable		(40,000)		-		(40,000)
March 31, 2021
Cash	$	1,824,970	$	-	$	1,824,970
Restricted deposits		56,876		-		56,876
Accounts and other receivables		292,600		-		292,600
Other investment		-		60,000		60,000
Accounts payable and accrued liabilities		(338,174)		-		(338,174)
Loan payable		(239,445)		-		(239,445)

The risk associated with any significant concentration of credit risk at March 31, 2021 and December 31, 2020 is mitigated by the quality of the receivables and customers. All receivables owing from these customers as at March 31, 2021 were received subsequent to the end of the reporting period. The carrying amount reflected above represents the Company’s maximum exposure to credit risk for such receivables.

The fair values of these financial instruments approximate their carrying values because of their short-term nature and/or the existence of market related interest rate on the instruments.

Level 3 hierarchy

Other investment relates to shares received as debt settlement in the amount of $60,000 during the year ended December 31, 2016. The other investment is classified as a Level 3 financial instrument within the hierarchy of the Company's financial instruments, measured at FVPL in the consolidated statements of financial position as at March 31, 2021 and December 31, 2020.

Within Level 3, the Company includes private company investments which were not quoted on an exchange. The key assumptions used in the valuation of these instruments included (but were not limited to) the value at which a recent financing was done by the investee, company-specific information, trends in general market conditions and the share performance of comparable publicly traded companies. Information from a recent financing was used to determine the value of the assets at $60,000 as at March 31, 2021 (December 31, 2020 - $60,000).

The unrealized gain (loss) recognized for these assets for the three months ended March 31, 2021 was $nil (2020 - $nil).

Valuations of investments for which market quotations are not readily available, are inherently uncertain, may fluctuate within short periods of time and are based on estimates, and determination of fair value may differ materially from the values that would have resulted if a ready market existed for the investments. Given the size of the private investment portfolio, such changes may have a significant impact on the Company’s financial condition or operating results.

14

AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

9. Financial instruments (continued)

Level 3 hierarchy (continued)

For those investments valued based on a recent financing or transaction price, management has determined that there are no reasonably possible alternative assumptions that would change the fair value significantly as at March 31, 2021. A +/25% change in the fair value of these Level 3 investments as at March 31, 2021 will result in a corresponding +/- $15,000 (2020 - $15,000). The sensitivity analysis is intended to reflect the significant uncertainty inherent in the valuation of private investments under current market conditions, and that results cannot be extrapolated due to non-linear effects that changes in valuation assumptions may have on the estimated fair value of these investments. The analysis does not indicate a probability of changes occurring and it does not necessarily represent the Company’s view of expected future changes in the fair value of these investments. Any management actions that may be taken to mitigate inherent risks are not reflected in this analysis.

Financial risk factors

The Company is exposed to a variety of financial instrument related risks:

Credit risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. At March 31, 2021, 98% (December 31, 2020 – 88% due from two customers) of the accounts receivable were due from two customers with strong credit ratings. All receivables owing from these customers as at March 31, 2021 and December 31, 2020 were received subsequent to period end.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulties in meeting its financial liability obligations. The Company manages its liquidity risk through cash and debt management. The Company’s objective in managing liquidity risk is to increase revenue, minimize operational costs and to maintain sufficient liquidity in order to meet these operational requirements at any point in time. As at March 31, 2021, the Company has a cash balance of $1,824,970 (December 31, 2020 – $1,669,621) current liabilities of $689,150 (December 31, 2020 - $509,213) and a working capital of $1,598,137 (December 31, 2020 - $1,714,200). The Company’s ability to meet its financial liability obligations and continue to operate as a going concern may include raising capital through a share issuance to obtain sufficient funding. There is no certainty of the Company’s ability to raise additional financing through this method.

Interest rate risk

The Company has cash balances and all amounts are held with accredited banks. As of March 31, 2021, and December 31, 2020, the Company did not have any investment in investment grade short term deposit certificates. Interest exposure with respect to its cash balances is minimal.

Currency risk

The Company generates revenue and incurs expenses and expenditures in Canada and the United States. As a result, fluctuations in the rate of exchange between U.S. dollars, Canadian dollars and other currencies can have an effect on the Company’s reported results. The Company has not utilized any financial instruments or cash management policies to mitigate the risks arising from changes in foreign currency rates. The net Canadian dollar equivalent of the total of its cost of sales, selling and administrative, and sales denominated in US dollars was approximately $277,111 for the three months ended March 31, 2021. Accordingly, a 10% increase or decrease in the exchange rate between U.S. and Canadian dollars would result in an increase or decrease of approximately $27,711 in net loss for the period.

The Canadian dollar equivalent of net assets denominated in US dollars as at March 31, 2021 was approximately $1,483,239. Accordingly, a 10% increase or decrease in the exchange rate between U.S. and Canadian dollars would impact net loss by approximately $148,324.

15

AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

9. Financial instruments (continued)

Capital management

The Company defines capital that it manages as being composed of share capital, reserves, deficit and cash. Its objective when managing capital is to ensure that the Company will continue as a going concern, so that it can provide products and services to its customers and returns to its shareholders.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue debt, acquire or dispose of assets or adjust the amount of cash and cash equivalents and investments. The Company requires capital to maintain its operating businesses, sustain corporate operations and repay existing obligations. The Company may seek additional financing by means of issuing share capital, the sale of assets or debt financing. There can be no certainty of the Company’s ability to raise any additional financing from any of these sources.

In order to facilitate the management of its capital requirements, the Company prepares annual expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. The annual and updated budgets are approved by the Board of Directors. The Company is currently not subject to externally imposed capital requirements.

The Company's capital management objectives, policies and processes have not changed during the three months ended March 31, 2021.

The Company is not subject to any capital requirements imposed by a lending institution or regulatory body, other than of the TSX.V which requires adequate working capital or financial resources of the greater of (i) $50,000 and (ii) an amount required in order to maintain operations and cover general and administrative expenses for a period of 6 months. As of March 31, 2021, the Company believes it is compliant with the policies of the TSX.V.

10. Related party transactions

Unless otherwise specified, the period end balances of receivables/payables referred to are non-interest bearing, unsecured, receivable or payable on demand, and have arisen from the provision of services and expense reimbursements. There were no amounts owed to key management personnel not disclosed elsewhere in these condensed consolidated interim financial statements.

Compensation of key management personnel

In accordance with IAS 24, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any directors (executive and nonexecutive) of the Company.

The remuneration of directors and other members of key management personnel (officers) during the periods presented were as follows:

	Three months ended	Three months ended
	March	31,
	2021	2020
Short-term benefits	152,250 $	95,250 $

At March 31, 2021, the Company had $nil (December 31, 2020 – $nil) in accounts payables owing to related parties. These amounts are unsecured, non-interest bearing and due on demand.

See also Note 11.

16

AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

11. Commitments and contingencies

The Company is party to certain management contracts. These contracts require payments of $1,065,700 upon the occurrence of a change in control of the Company, as defined by each officer’s respective consulting agreement. The Company is also committed to payments upon termination of $51,250 pursuant to the terms of these contracts. As a triggering event has not taken place, the contingent payments have not been reflected in these financial statements.

The Company is subject to various claims, lawsuits and other complaints arising in the ordinary course of business. The Company records provisions for losses when claims become probable and the amounts are estimable. Although the outcome of such matters cannot be determined, it is the opinion of management that the final resolution of these matters will not have a material adverse effect on the Company’s financial condition, operations or liquidity.

Novel Coronavirus

The Company’s operations could be significantly adversely affected by the effects of a widespread global outbreak of a contagious disease, including the recent outbreak of respiratory illness caused by COVID-19. The Company cannot accurately predict the impact COVID-19 will have on its operations and the ability of others to meet their obligations with the Company, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect the Company’s operations and ability to finance its operations. To date the Company has experienced limited contract delays with proposed new contracts with new customers resulting from the global pandemic. Despite these delays, the Company’s operations have been relatively stable. The Company has ongoing, long-term contracts with several quality customers that have not been impacted by the pandemic and has allowed the Company to continue operations with little impact.

12. Segmented information

IFRS 8 requires operating segments to be determined based on the Company’s internal reporting to the Chief Operating Decision Maker (“CODM”). The CODM has been determined to be the Company’s Chief Executive Officer as he is primarily responsible for the allocation of resources and the assessment of performance. The CODM uses net income, as reviewed at periodic business review meetings, as the key measure of the Company’s results as it reflects the Company’s underlying performance for the period under evaluation.

The CODM’s primary focus for review and resource allocation is the Company as a whole and not any component part of the business. Having considered these factors, management has judged that the Company’s operations comprise two operating segments under IFRS 8 – Big Data and WorkForce Management.

Information about the Company’s revenues based on the type of services provided is as follows:

	Three months ended	Three months ended
	March 31,
	2021	2020
Big data	$ 32,735$	33,008
WorkForce Management	920,593	612,338
	$ 953,328$	645,346

17

AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

12. Segmented information (continued)

Information about the Company’s expenses based on the type of services provided is as follows:

	Three months ended	Three months ended
	March 31,
	2021	2020
Big data	$ 530,606$	262,808
WorkForce Management	302,664	341,458
	$ 833,270$	604,266

The Company’s revenues are substantially derived from customers in the United States during the three months ended March 31, 2021 and 2020. All of the Company’s revenues recognized as services are rendered throughout the term of the contract for the three months ended March 31, 2021 and 2020.

Assets of the Company are segmented based on the type of services provided and were as follows:

		Current assets	Property and equipment	Property and equipment		Intangible assets and goodwill	Other non- current assets	Other non- current assets		Total assets
Balance, December 31, 2020
Big data	$	1,337,158	$	178,180	$	53,241	$	2,375,666	$	3,944,245
WorkForceManagement		886,255		10,127		741,151		-		1,637,533
	$	2,223,413	$	188,307	$	794,392	$	2,375,666	$	5,581,778
Balance, March 31, 2021
Big data	$	1,185,066	$	151,016	$	-	$	2,248,637	$	3,584,719
WorkForceManagement		1,102,221		6,340		678,643		-		1,787,204
	$	2,287,287	$	157,356	$	678,643	$	2,248,637	$	5,371,923

Significant customers

In each respective year, revenues from customers that amounted to more than 10% of the Company’s revenues accounted for the following percentage of the Company’s total revenues and accounts receivable, as follows:

		% of revenues for the three months ended March 31, 2021	% of accounts receivable at March 31, 2021	% of revenues for the three months ended March 31, 2020	% of accounts receivable at December 31, 2020
Customer	1	41%	64%	55%	78%
Customer	2	53%	15%	41%	10%

18

AnalytixInsight Inc. Notes to condensed consolidated interim financial statements For the three months ended March 31, 2021 and 2020 (Expressed in Canadian dollars)

13. Lease liability

In December 2019, the Company entered into a lease for office equipment. The monthly lease payment is $388 a quarter for a fixed term of five years, commencing on December 20, 2019. In January 2020, the Company entered into a lease for office space with a monthly payment of $18,852 until August 1, 2022. The Company used a discount rate of 7.5% in determining the present value of the lease payments.

Lease liability, December 31, 2019	$	7,279
Lease addition		278,100
Interest expense		17,234
Lease payments		(115,440)
Lease liability, December 31, 2020	$	187,173
Interest expense		3,146
Lease payments		(28,844)
Lease liability, March 31, 2021	$	161,475

		March 31, 2021
Current lease liability	$	109,583
Non-current lease liability		51,892
	$	161,475

Future undiscounted minimum lease payments for these lease agreements are as follows:

Within one year	$	117,892
After one year but not more than five years		52,910
More than five years		-
	$	170,802

14. Loan payable

In January 2021, the Company received a Paycheck Protection Program (“PPP”) loan in the amount of $199,445 (US$142,700). Providing certain employee retention criteria are met, the Company can apply for loan forgiveness of the full amount of this loan. If forgiveness criteria are not met, the loan will have a maturity of five years, with repayments starting 10 months after the end of the covered period of 24 weeks for the Company’s loan forgiveness passes and will bear interest at 1%.

In 2020, the Company received a $40,000 Canadian Emergency Business Account (“CEBA”) loan. The CEBA loan is from the Government of Canada and is interest free through December 31, 2022, after which any unpaid balance is converted to a five-year interest-bearing term loan. Repaying the loan balance in full on or before December 31, 2022 will result in loan forgiveness of up to CAD$10,000.

19