BlockMint Technologies Inc. — Interim / Quarterly Report 2021

Aug 31, 2021

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BLOCKMINT TECHNOLOGIES INC.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED JUNE 30, 2021

(EXPRESSED IN UNITED STATES DOLLARS)

(UNAUDITED)

Notice To Reader

The accompanying unaudited condensed consolidated interim financial statements of Blockmint Technologies Inc. have been prepared by and are the responsibility of management. The unaudited condensed consolidated interim financial statements have not been reviewed by the Company's auditors.

Blockmint Technologies Inc. Condensed Interim Consolidated Statements of Financial Position (Expressed in United States Dollars) Unaudited

		As at		As at
		June 30,	December 31,
		2021		2020
ASSETS
Current assets
Cash	$	2,954,443	$	2,600,962
Receivables		11,143		3,455
Prepaid expenses		1,000		1,000
Total assets and current assets		2,966,586		2,605,417
EQUITY AND LIABILITIES
Current liabilities
Accountspayable and accrued liabilities(note 8)	$	71,964	$	61,889
Total current liabilities		71,964		61,889
Equity
Share capital (note 5)		9,661,389		8,884,433
Warrant reserve (note 7)		17,500		17,500
Contributed surplus (note 6)		385,400		30,300
Foreign currency translation reserve		13,495		13,495
Deficit		(7,183,162)		(6,402,200)
Total equity		2,894,622		2,543,528
Total equity and liabilities	$	2,966,586	$	2,605,417

Nature of operations and going concern (note 1)

"Nelson Ijih", Director

"Colin Watt", Director

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

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Blockmint Technologies Inc.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Expressed in United States Dollars) Unaudited

	Three Months	Three Months	Three Months	Three Months		Six Months	Six Months	Six Months
		Ended		Ended		Ended		Ended
		June 30,		June 30,		June 30,		June 30,
		2021		2020		2021		2020
Operating expenses
Business development and promotion	$	63,311	$	4,491	$	123,940	$	8,488
Consulting (note 8)		113,436		87,277		203,137		100,256
Management fees and salaries (note 8)		37,800		24,834		81,300		49,209
Office and miscellaneous		8,902		6,852		13,611		16,783
Professional fees (note 8)		14,241		7,008		20,191		10,758
Salaries and wages		3,955		3,759		10,533		9,038
Share-basedpayments(note 6)		-		-		355,100		-
Total operatingexpenses		241,645		134,221		807,812		194,532
Loss before other items		(241,645)		(134,221)		(807,812)		(194,532)
Foreign exchange (loss) gain		10,056		(3,270)		26,850		1,619
Revaluation of digital currency		-		189		-		227
Net loss for theperiod	$	(231,589)	$	(137,302)	$	(780,962)	$	(192,686)
Other comprehensive income (loss)
Gain on currencytranslation		-		13,074		-		(16,336)
Total comprehensive loss for theperiod	$	(231,589)	$	(124,228)	$	(780,962)	$	(209,022)
Basic and diluted net lossper share (note 9)	$	(0.00)	$	(0.00)	$	(0.02)	$	(0.00)
Weighted average number of common shares
outstanding		48,242,605		44,269,068		47,649,867		44,269,068

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

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Blockmint Technologies Inc. Condensed Interim Consolidated Statements of Cash Flows (Expressed in United States Dollars) Unaudited

		Six Months	Six Months	Six Months
		Ended		Ended
		June 30,		June 30,
		2021		2020
Operating activities
Net loss for the period	$	(780,962)	$	(192,686)
Adjustments for:
Share-based payments (note 6)		355,100		-
Revaluation of digital currency		-		(227)
Changes in non-cash working capital items:
Receivables and prepaid expenses		(7,688)		6,656
Accountspayable and accrued liabilities		10,075		(543)
Net cash used in operating activities		(423,475)		(186,800)
Financing activities
Proceeds from issuance of common shares		782,800		-
Share issue costs		(5,844)		-
Net cashprovided by financing activities		776,956		-
Foreign exchange effect on cash		-		(16,336)
Net change in cash		353,481		(203,136)
Cash, beginning ofperiod		2,600,962		2,957,158
Cash, end ofperiod	$	2,954,443	$	2,754,022

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

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Blockmint Technologies Inc. Condensed Interim Consolidated Statements of Changes in Equity (Expressed in United States Dollars) Unaudited

							Foreign currency	Foreign currency	Foreign currency
								translation
		Share		Warrant	Contributed			reserve
		capital		reserve		Surplus		income		Deficit	Total
Balance, December 31, 2019	$	8,884,433	$	17,500	$	30,300	$	6,485	**$ **	(5,976,367) $	2,962,351
Currency translation		-		-		-		(16,336)		-	(16,336)
Net loss for theperiod		-		-		-		-		(192,686)	(192,686)
Balance, June 30, 2020	$	8,884,433	$	17,500	$	30,300	$	**(9,851) **	**$ **	(6,169,053) $	2,753,329
Balance, December 31, 2020	$	8,884,433	$	17,500	$	30,300	$	13,495	**$ **	(6,402,200) $	2,543,528
Private placement		782,800		-		-		-		-	782,800
Share issue costs		(5,844)		-		-		-		-	(5,844)
Share-based compensation		-		-		355,100		-		-	355,100
Net loss for theperiod		-		-		-		-		(780,962)	(780,962)
Balance, June 30, 2021	$	9,661,389	$	17,500	$	385,400	$	13,495	**$ **	(7,183,162) $	2,894,622

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

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Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2021 (Expressed in United States Dollars) Unaudited

Blockmint Technologies Inc.

1. Nature of operations and going concern

Blockmint Technologies Inc. (the "Company") is a publicly traded company whose shares are listed on the TSX-V under the trading symbol BKMT. BlockMint (Canada) Technologies Inc. ("BlockMint-Canada"), a wholly owned subsidiary of the Company, was incorporated on December 22, 2017 pursuant to the British Columbia Business Corporations Act. BlockMint-Canada and its subsidiary, BlockMint (USA) Technologies Inc. ("BlockMint-USA") are in the business of developing distributed systems and networks that enable a more decentralized deployment of blockchain based applications such as cryptocurrency mining. BlockMint-USA was incorporated under the laws of the State of Delaware on March 6, 2018.

The Company's registered office address is located at 29[th] Floor, 595 Burrard Street, Vancouver, British Columbia, V7X 1J5.

Going concern

The Company does not generate revenue from operations. The Company incurred a net loss for the six months ended June 30, 2021 of $780,962 (six months ended June 30, 2020 - $192,686) and had an accumulated deficit of $7,183,162 at June 30, 2021 (December 31, 2020 - $6,402,200). These conditions indicate a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. As at June 30, 2021, the Company had a working capital balance of $2,894,622 (December 31, 2020 - $2,543,528).

During the first quarter of 2020, there was a global outbreak of a novel coronavirus identified as “COVID-19”. On March 2020, the World Health Organization declared a global pandemic. In order to combat the spread of COVID-19, governments worldwide have enacted emergency measures including travel bans, legally enforced or self-imposed quarantine periods, social distancing and business and organization closures. These measures have caused material disruptions to businesses, governments and other organizations resulting in an economic slowdown and increased volatility in national and global equity and commodity markets.

Central banks and governments, including Canadian federal and provincial governments, have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of any interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company and its operations in future periods. However, currently COVID-19 did not have a significant impact on the Company's operations and access to financial markets.

These unaudited condensed consolidated interim financial statements have been prepared on a going concern basis, which presumes realization of assets and discharge of liabilities in the normal course of business for the foreseeable future. Accordingly they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those presented in these unaudited condensed consolidated interim financial statements.

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Blockmint Technologies Inc.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2021 (Expressed in United States Dollars) Unaudited

2. Basis of presentation

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by IASB and interpretations issued by IFRIC.

The policies applied in these unaudited condensed consolidated interim financial statements are based on IFRS's issued and outstanding as of August 30, 2021, the date the Board of Directors approved the statements. Except as disclosed in note 3, the same accounting policies and methods of computation are followed in these unaudited condensed consolidated interim financial statements as compared with the most recent annual financial statements as at and for the year ended December 31, 2020. Any subsequent changes to IFRS that are given effect in the Company’s annual financial statements for the period ending December 31, 2021 could result in restatement of these unaudited condensed consolidated interim financial statements.

3. Significant accounting policies

Changes in accounting policies

New accounting policy adopted

Certain pronouncements were issued by the IASB or the IFRIC that are mandatory for accounting periods commencing on or after January 1, 2021. Many are not applicable or do not have a significant impact to the Company and have been excluded.

New standards not yet adopted and interpretations issued but not yet effective

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.

IFRS 3, Business Combinations ("IFRS 3")

Amendments to IFRS 3 “Business Combinations” were issued in May 2020, and are effective on or after January 1, 2022, with earlier application permitted. The amendments update references within IFRS 3 to the 2018 Conceptual Framework and require that the principles in IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” be used to identify liabilities and contingent assets arising from a business combination. Adoption of these amendments is not expected to have a significant impact on the Company’s unaudited condensed consolidated interim financial statements.

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Blockmint Technologies Inc.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2021 (Expressed in United States Dollars) Unaudited

4. Intangible assets

			As at				As at				As at
		December 31,				December		31,		June 30,
			2019		Write-off		2020		Write-off		2021
Patentpending (note	7)	$	17,500	$	(17,500)	$	-	$	-	$	-
		$	17,500	$	-	$	-	$	-	$	-

The patent application was not approved, as a result, the patent was fully impaired during the year ended December 31, 2020.

5. Share capital

a) Authorized share capital

The Company is authorized to issue an unlimited number of common shares with no par value. The holders of common shares are entitled to receive dividends which may be declared from time to time, and are entitled to one vote per share at meetings of the Company. All shares are ranked equally with regards to the Company's residual assets.

b) Common shares issued

	Number of
	common
	shares	Amount
Balance, December 31, 2019 and June 30, 2020	44,269,068 $	8,884,433
Balance, December 31, 2020	44,269,068 $	8,884,433
Private placement (i)	3,846,154	782,800
Shares issued as fees (i)	127,383	-
Share issue costs(i)	-	(5,844)
Balance, June 30, 2021	48,242,605 $	9,661,389

(i) On January 26, 2021, the Company closed a non-brokered private placement and issued an aggregate of 3,846,154 common shares at a price of CDN$0.26 per common share to raise aggregate gross proceeds of CDN$1,000,000 ($782,800). In connection with the offering, the Company issued an aggregate of 127,383 finder’s shares to certain brokerage firms and paid $5,844 in legal and other fees.

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Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2021 (Expressed in United States Dollars) Unaudited

Blockmint Technologies Inc.

6. Share-based payments

In February 2019, the Directors adopted a new 20% fixed stock option plan (the “Plan”) to replace the former “10% rolling” stock option plan. Under the terms of the Plan, the Board may from time to time, in its discretion, and in accordance with TSXV requirements, grant to the Company’s directors, officers, employees and consultants, nontransferable options to purchase common shares of the Company, provided that the number of shares reserved for issuance will not exceed 8,853,814 common shares., inclusive of all common shares which may be issued pursuant to the performance warrants issued. (note 7)

	Number of		Fair
	stock options		value
Balance, December 31, 2019, June 30, 2020 and December 31, 2020	-	$	-
Issued(i)	1,250,000		355,100
Balance, June 30, 2021	1,250,000	$	355,100

The weighted average grant date fair value of options granted during the three and six months ended June 30, 2021 was $0.28.

(i) On February 11, 2021, the Company granted stock options to certain of its directors, officers and consultants to purchase up to an aggregate of 1,250,000 common shares in the capital of the Company, exercisable over five years at a price of CDN$0.40 per share. The options vested immediately. The estimated fair value of the options at the grant date was $355,100 using the Black-Scholes option pricing model. The estimated fair value of the options has been charged to the unaudited condensed consolidated interim statements of loss and comprehensive loss and credited to share-based payments in the shareholders' equity. The underlying weighted average assumptions used in the estimation of fair value in the Black-Scholes valuation model are as follows: dividend yield 0%, expected volatility of 152%, risk free rate of return of 0.48% and an expected life of 5 years. For the three and six months ended June 30, 2021 $355,100 was expensed.

The following table reflects the actual stock options issued and outstanding as of June 30, 2021:

		Weighted average		Number of
		remaining	Number of	options
	Exercise	contractual	options	vested
Expiry date	price	life(years)	outstanding	(exercisable)
February11,2026	CDN 0.40	4.62	1,250,000	1,250,000

7. Warrant reserve

7. Warrant reserve
			Weighted
	Number of		average
	warrants	exercise price
Balance, December 31, 2019, June 30, 2020, December 31, 2020
and June 30, 2021	6,650,000	$	0.03

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Blockmint Technologies Inc.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2021 (Expressed in United States Dollars) Unaudited

7. Warrants reserve (continued)

The following table reflects the warrants issued and outstanding as of June 30, 2021:

	Number of	Grant date	Exercise
Expiry date	warrants	fair value	price
February1,2023(1)	6,650,000	17,500	CDN 0.05

• 1) These are 6,650,000 bonus warrants to a current officer and a past officer. 3,325,000 of the bonus warrants are eligible for exercise provided at any time during the term the Company achieves at least cumulative gross revenue of $4,000,000. The balance of 3,325,000 warrants will be eligible for exercise when a further $4,000,000 of gross revenue is achieved by the Company (i.e. cumulative gross revenue of $8,000,000 from the date of issuance of the warrants)

8. Related party transactions

Key management personnel includes the Board of Directors of the Company, officers, and close family members and enterprises which are controlled by these individuals, as well as certain persons performing similar functions.

(a) The Company entered into the following transactions with related parties:

			Three Months	Three Months	Three Months		Six Months Ended	Six Months Ended
			June 30,				June 30,
			2021		2020		2021	2020
Owen Bird Law Corporation	(i)	$	4,815	$	1,376	$	12,714 $	1,376
Bayswater Consulting Ltd.	(ii)		2,440		2,176		4,797	4,384
Marrelli Support Services Inc.	(iii)		8,867		8,638		17,593	17,364

(i) For the three and six months ended June 30, 2021, the Company expensed professional fees of $4,815 and $12,714, respectively (three and six months ended June 30, 2020 - $1,376 and $1,376, respectively) for legal services of which $5,844 was reflected as share issue costs, to Owen Bird Law Corporation, a legal firm of which Jeff Lightfoot is a shareholder. As at June 30, 2021, $2,642 (December 31, 2020 - $1,472) was payable to this party and the amount is included in accounts payable and accrued liabilities.

(ii) For the three and six months ended June 30, 2021, the Company expensed consulting fees of $2,440 and $4,797, respectively (three and six months ended June 30, 2020 - $2,176 and $4,384, respectively) to a private company controlled by Erin Walmesley, the Company’s corporate secretary, for corporate services.

(iii) For the three and six months ended June 30, 2021, the Company expensed consulting fees of $8,867 and $17,593, respectively (three and six months ended June 30, 2020 - $8,638 and $17,364, respectively) to Marrelli Support Services Inc. ("Marrelli") for: Victor Hugo to act as the Chief Financial Officer of the Company; and for bookkeeping services. Victor Hugo is an employee of Marrelli. These services were incurred in the normal course of operations for general accounting and financial reporting matters. As at June 30, 2021, Marrelli was owed $4,514 (December 31, 2020 - $9,722), and the amount is included in accounts payable and accrued liabilities.

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Blockmint Technologies Inc.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2021 (Expressed in United States Dollars) Unaudited

8. Related party transactions (continued)

(b) Remuneration of key management personnel, which includes the directors and officers of the Company, other than consulting fees, was as follows:

		Three Months	Three Months	Three Months		Six Months Ended	Six Months Ended
		June 30,				June 30,
		2021		2020		2021	2020
Management salaries	$	30,000	$	18,000	$	66,000 $	36,000
Share-based payment		-		-		170,448	-
Directors fees		7,800		6,834		15,300	13,209
	$	37,800	$	24,834	$	251,748 $	49,209

As at June 30, 2021, directors of the Company were owed $43,575 (December 31, 2020 - $28,275), relating to fees and the amount is included in accounts payable and accrued liabilities. Subsequent to June 30, 2021, the amount has been settled.

9. Loss per share

The calculation of basic and diluted loss per share for the three and six months ended June 30, 2021, was based on the loss attributable to common shareholders of $231,589 and $780,962, respectively (three and six months ended June 30, 2020 - $137,302 and $192,686, respectively) and the weighted average number of common shares outstanding of 48,242,605 and 47,649,867, respectively (three and six months ended June 30, 2020 - 44,269,068 and 44,269,068, respectively). Diluted loss per share did not include the effect of 1,250,000 options outstanding and 6,650,000 warrants for the three and six months ended June 30, 2021 (three and six months ended June 30, 2020 - nil and 6,650,000, respectively) as their effect is anti-dilutive.

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