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Current Water Technologies Inc. Interim / Quarterly Report 2025
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Interim / Quarterly Report
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WATER TECHNOLOGIES INC.
WATER TECHNOLOGIES INC.
FIRST QUARTER 2025
UNAUDITED CONDENSED INTERIM
CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
(Expressed in Canadian Dollars)
The auditor of Current Water Technologies Inc. has not performed a review of the unaudited condensed interim statement for the periods ended March 31, 2024 and March 31, 2025.
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
PAGE 1 OF 14
surren WATER TECHNOLOGIES INC.
CONTENTS
Page
NOTICE TO READER...3
CONDENSED STATEMENT OF FINANCIAL POSITION...4
CONDENSED STATEMENT OF CHANGES IN EQUITY...5
CONDENSED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)...6
CONSDENSED STATEMENTS OF CASH FLOWS...7
SUMMARIZED NOTES TO THE CONDENSED FINANCIAL STATEMENTS...8-15
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
PAGE 2 OF 14
current
WATER TECHNOLOGIES INC.
NOTICE TO READER
The Company has compiled the condensed statement of financial position of Current Water Technologies Inc. as at March 31, 2025 and the condensed statements of earnings and comprehensive loss, changes in equity and cash flows for the period then ended.
We have not performed an audit or a review engagement in respect of these financial statements and, accordingly, we express no assurance thereon.
Readers are cautioned that these statements may not be appropriate for their purposes.
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
PAGE 3 OF 14
Surfen WATER TECHNOLOGIES INC.
CONDENSED STATEMENT OF FINANCIAL POSITION
| Expressed in Canadian Dollars | As at
March 31 | As at
December 31 |
| --- | --- | --- |
| | 2025 | 2024 |
| CURRENT ASSETS | | |
| Cash and cash equivalents (note 2) | 166,953 | 79,115 |
| Accounts receivable | 79,697 | 263,764 |
| Inventories | 307,050 | 307,050 |
| Prepaid | (37,584) | 120,729 |
| Current total | 516,116 | 770,658 |
| RIGHT-TO-USE ASSET (note 5) | 640,210 | 692,119 |
| PROPERTY, PLANT AND EQUIPMENT (note 3) | 73,259 | 77,494 |
| INTANGIBLE ASSETS (Patents) (note 4) | 3,119 | 3,261 |
| | 1,232,704 | 1,543,532 |
| CURRENT LIABILITIES | | |
| Current | | |
| Accounts payable and accrued liabilities | 494,595 | 475,385 |
| Deferred revenue | 463,832 | 463,832 |
| Lease Liability (note 5) | 64,864 | 201,426 |
| Bank loans (note 6) | - | - |
| | 1,023,291 | 1,140,643 |
| Long term | | |
| Lease Liability (note 5) | 602,537 | 530,839 |
| | 602,537 | 530,839 |
| SHAREHOLDERS' DEFICIT | | |
| CAPITAL STOCK (note 7) | 21,647,916 | 21,327,916 |
| Shares to be issued | - | 280,000 |
| Warrants (note 7) | 304,628 | 304,628 |
| Contributed surplus | 8,523,975 | 8,523,975 |
| | 30,476,519 | 30,436,520 |
| DEFICIT | (30,869,642) | (30,564,470) |
| | (393,122) | (127,950) |
| | $ 1,232,706 | $1,543,532 |
APPROVED ON BEHALF OF THE BOARD:
"Gene Shelp"
"Alex Kaszuba"
Gene Shelp, Director
Alex Kaszuba, Director
(The accompanying summarized notes form an integral part of these unaudited condensed interim financial statements)
Prepared without audit – see Notice to Reader
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
Surfen WATER TECHNOLOGIES INC.
CONDENSED STATEMENT OF CHANGES IN EQUITY
| Common shares | Shares to be Issued | Warrants | Contributed Surplus | Deficit | Total | ||
|---|---|---|---|---|---|---|---|
| Number | Amount | ||||||
| Balance – January 1, 2024 | 212,275,038 | $ 20,827,916 | $ - | $ 985,520 | $7,829,338 | $ (29,546,183) | $ 96,591 |
| Net loss/income | 97,345 | 97,345 | |||||
| Share-based payments | 7,422 | 7,422 | |||||
| Expiration of warrants | - | (680,891) | 680,891 | - | |||
| Balance – March 31, 2024 | 212,275,038 | 20,827,916 | - | 304,629 | 8,517,651 | (29,448,838) | 201,358 |
| Net loss/income | (1,115,632) | (1,115,632) | |||||
| Share-based payments | 6,324 | 6,324 | |||||
| Share to be issued | 280,000 | 280,000 | |||||
| Share issue cost | - | ||||||
| Private Placement | 16,666,666 | 500,000 | 500,000 | ||||
| Warrants exercised | - | ||||||
| Balance – December 31, 2024 | 228,941,704 | 21,327,916 | 280,000 | 304,629 | 8,523,975 | (30,564,470) | (127,950) |
| Balance – January 1, 2025 | 228,941,704 | 21,327,916 | 280,000 | 304,629 | 8,523,975 | (30,564,470) | (127,950) |
| Net loss/income | (305,172) | (305,172) | |||||
| Share-based payments | - | - | |||||
| Shares to be issued | (280,000) | (280,000) | |||||
| Private Placement | 10,666,666 | 320,000 | 320,000 | ||||
| Expiration of warrants | - | ||||||
| Balance – March 31, 2025 | 239,608,370 | 21,647,916 | - | 304,629 | 8,523,975 | (30,869,642) | (393,122) |
The accompanying summarized notes form an integral part of these unaudited condensed interim financial statements) Prepared without audit - see Notice to Reader
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
surren WATER TECHNOLOGIES INC.
CONDENSED statements of INCOME (LOSS) and comprehensive INCOME (loss)
| | Three months ended
31-Mar | |
| --- | --- | --- |
| Expressed in Canadian Dollars | 2025 | 2024 |
| REVENUE - sales | $ 285,152 | $ 868,578 |
| EXPENSES | | |
| Direct operating expenses | $ 387,368 | $ 528,955 |
| General and administrative
expenses | 130,325 | 162,193 |
| Interest expense - long term | 16,347 | 15,126 |
| Depreciation and amortization | 56,286 | 57,539 |
| Share-based payments | - | 7,421 |
| | $ 590,325 | $ 771,233 |
| NET EARNINGS
(COMPREHENSIVE LOSS) FOR
THE PERIOD | $ (305,172) | $ 97,345 |
| Basic and diluted earnings (loss)
per share | (0.001) | 0.000 |
| Weighted average number of
shares outstanding – basic and
diluted | 222,229,376 | 214,725,765 |
(The accompanying summarized notes form an integral part of these unaudited condensed interim financial statements)
Prepared without audit – see Notice to Reader
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
PAGE 6 OF 14
surren WATER TECHNOLOGIES INC.
CONDENSED STATEMENTS OF CASH FLOWS
| | Three months ended
March 31 | |
| --- | --- | --- |
| Expressed in Canadian dollars | 2025 | 2024 |
| Operating activities | | |
| Net earnings (loss) for the period | $ (305,172) | $ 97,345 |
| Add: Items not involving an outlay of cash | | |
| Depreciation and amortization | 56,286 | 57,539 |
| Share-based payments | - | 7,421 |
| | $ (248,887) | $ 162,306 |
| Changes in non-cash working capital | | |
| Decrease (Increase) in accounts receivable | 184,066 | 264,307 |
| Decrease (Increase) in inventories | - | 2,005 |
| Decrease (Increase) in prepaid expenses | 158,312 | 36,459 |
| Increase (Decrease) in accounts payable and accrued liabilities | 19,210 | 123,700 |
| Increase (Decrease) in deferred revenue | - | (469,831) |
| Cash flow from operating activities | $ 112,701 | $ 118,946 |
| Financing activities | | |
| Common Shares issued for cash (net share issue costs) | 40,000 | - |
| Proceeds from shares to be issued | | - |
| Repayment of loans payable | - | (120,000) |
| Reduction in lease liability | (64,863) | |
| Cash flow from financing activities | $ (24,863) | $ (120,000) |
| Net change in cash and cash equivalents during the period | 87,839 | $ (1,053) |
| Cash and cash equivalents, beginning of period | 79,115 | $ 113,140 |
| Cash and cash equivalents, end of period | $ 166,953 | $ 112,087 |
| Non-cash investing and financing activities | | |
| Interest paid in cash | $ 18,241 | $ 16,835 |
(The accompanying summarized notes form an integral part of these unaudited condensed interim financial statements)
Prepared without audit – see Notice to Reader
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
PAGE 7 OF 14
SUTTEN WATER TECHNOLOGIES INC.
SUMMARIZED NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDING MARCH 31, 2025
(CANADIAN DOLLARS, EXCEPT PER SHARE AMOUNTS)
1. DESCRIPTION OF BUSINESS
CORPORATE INFORMATION
Current Water Technologies Inc. (the 'Company'), is incorporated under the Ontario Business Corporations Act and is a publicly traded company whose common shares are listed under the symbol "WATR" on the TSX Venture Exchange. Previously the Company's name was Enpar Technologies Inc. under the symbol "ENP" on the TSX Venture Exchange and changed its name effective January 2, 2018. The Company is engaged in the development of innovative electrochemical water treatment and environmental technologies. The Company currently markets its products throughout the world and in this regard the Company has signed a number of marketing and distribution agreements with various parties granting exclusive rights to these parties for the sale of the Company's various technologies in specific geographic regions. The Company's corporate head office and principal place of business is located at 70 Southgate Drive, Unit 4, Guelph, Ontario, Canada N1G 4P5.
BASIS OF PRESENTATION AND STATEMENT OF COMPLIANCE
These condensed consolidated interim financial statements ("interim financial statements") of Current Water Technologies Inc. were approved for issuance by the Board of Directors on May 30, 2024. The interim financial statements were prepared in accordance with IAS 34 Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"). These interim financial statements do not include all disclosures normally provided in consolidated annual financial statements and should be read in conjunction with the audited annual financial statements for the year ended December 31, 2024.
The policies applied in these interim consolidated financial statements are based on IFRS's issued and outstanding as of September 30, 2019. Any subsequent changes to IFRS, which may give effect to the Company's annual financial statements for the year ending December 31, 2024, could result in restatement of these interim financial statements.
These financial statements have been prepared under the assumption that the Company is a going concern. This assumption, among other things, contemplates that the Company will be able to realize on its assets and discharge its liabilities in the normal course of operations. The Company had net loss during the three months period in the amount of $305,172 (2024: $97,345), resulting in an accumulated deficit of $30,869,642 (2024: deficit of $29,448,838) and generated a cash flow from operations in the amount of $112,701 (2024: $118,946). The Company has been able to fund these operating losses mainly by raising equity; however, there can be no assurance that the Company will be able to do so in the future. Should the going concern assumption be proven to be invalid the carrying amounts of certain assets may have to be restated. Management has estimated that the Company will have adequate funds from existing working capital to meet its corporate, administrative, and other obligations for the coming year.
These interim financial statements are presented in Canadian dollars, which is our presentation and functional currency. These interim financial statements have been prepared using the historical cost basis except for certain financial instruments that have been evaluated at fair value. Recognizing that the Company is responsible for both the integrity and objectivity of the financial statements, management is satisfied that these financial statements have been fairly presented.
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
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SURREN WATER TECHNOLOGIES INC.
These condensed interim consolidated financial statements incorporate the financial statements of Current Water Technologies Inc. and its subsidiary, Pumptonics Incorporated over which Current Water Technologies Inc. has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and can affect those returns through its power over the investee. The Company owns 100% of Pumptonics.
2. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies used in the preparation of these condensed interim financial statements are consistent with those described in the notes to the Company's annual financial statements for the year ended December 21, 2024.
(a) KEY ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates are used when accounting for items such as share-based payments and warrants, impairment of long-lived assets, percentage of completion on contracts, onerous contracts, collectability of receivables, inventory obsolescence and business combinations. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed by management on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
(b) CASH AND CASH EQUIVALENTS:
Cash and cash equivalents consist of cash, demand deposits, and short-term investments which are highly liquid and having an initial term of less than 90 days. The cash and cash equivalents balance of $166,953 has been invested in bank deposits.
3. PROPERTY, PLANT AND EQUIPMENT
| Cost January 1, 2025 | Accumulated Amortization January 1, 2025 | Additions (disposal) | Depreciation | Impairment loss | Net March 31, 2025 | |
|---|---|---|---|---|---|---|
| Office furniture and fixtures | $ 72,118 | $ 68,215 | $ - | $ 195 | $ - | $ 3,708 |
| Equipment | 205,822 | 160,655 | - | 2,258 | - | 42,909 |
| Computer hardware | 143,689 | 129,272 | - | 1,081 | - | 13,336 |
| Automotive | 85,849 | 71,841 | - | 700 | - | 13,308 |
| Leasehold improvements | 313,298 | 313,298 | - | - | - | - |
| Demonstration units | 50,872 | 50,872 | - | - | - | - |
| $ 871,649 | $ 794,153 | $ - | $ 4,235 | $ - | $ 73,260 |
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
SUTTEN WATER TECHNOLOGIES INC.
| Cost January 1, 2024 | Accumulated Amortization January 1, 2024 | Additions (disposal) | Depreciation | Impairment loss | Net December 31, 2024 | |
|---|---|---|---|---|---|---|
| Office furniture and fixtures | $ 72,118 | $ 67,239 | $ - | $ 976 | $ - | $ 3,903 |
| Equipment | 205,822 | 149,364 | - | $ 11,292 | - | $ 45,166 |
| Computer hardware | 143,689 | 123,093 | - | $ 6,179 | - | $ 14,417 |
| Automotive | 85,849 | 68,339 | - | $ 3,502 | - | $ 14,008 |
| Leasehold improvements | 313,298 | 313,298 | - | - | - | - |
| Demonstration units | 50,872 | 50,872 | - | - | - | - |
| $ 871,649 | $ 772,205 | $ - | $ 21,948 | $ - | $ 77,494 |
4. INTANGIBLE ASSETS
| Cost January 1, 2025 | Accumulated Amortization January 1, 2025 | Additions Disposals | Amortization | Impairment Loss | Net March 31, 2025 | |
|---|---|---|---|---|---|---|
| Patents | $ 548,692 | $ 547,337 | $ - | $ 113 | $ - | $ 1,241 |
| Right to technology | 10,000 | 8,093 | - | 29 | - | 1,878 |
| $ 558,692 | $ 555,431 | $ - | $ 142 | $ - | $ 3,120 | |
| Cost January 1, 2024 | Accumulated Amortization January 1, 2024 | Additions Disposals | Amortization | Impairment Loss | Net December 31, 2024 | |
| --- | --- | --- | --- | --- | --- | --- |
| Patents | $ 548,692 | $ 546,885 | $ - | $ 452 | $ - | $ 1,354 |
| Right to technology | 10,000 | 7,972 | - | 121 | - | 1,907 |
| $ 558,692 | $ 554,858 | $ - | $ 573 | $ - | $ 3,261 |
5. RIGHT OF USE ASSET
Right of use ("ROU") assets
ROU assets are initially recorded at cost, which comprises the initial amount of the lease liability and any initial direct costs incurred less any lease payments made at or before the initial recognition date. ROU assets are depreciated on a straight-line basis over the estimated useful life of the asset if the Corporation expects to take ownership of the asset at the end of the lease term, or over the lease term if the Corporation does not expect to take ownership of the asset at the end of the lease term. The lease term includes periods covered by an option to extend if the Corporation's intention is to exercise that option. ROU assets are periodically reduced by impairment losses, if any, and adjusted for re-measurements of the lease obligation.
Lease liabilities
The lease liability is measured at the present value of the expected lease payments over the lease term, discounted at the implicit rate in the lease; if the rate cannot be determined, the incremental borrowing rate of the asset or asset grouping is used. The lease liability is increased for the passage of time and payments on the lease are offset against the lease liability.
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
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Surren WATER TECHNOLOGIES INC.
The liability is subsequently re-measured when there is a change in the lease agreement, such as a change in future lease payments or if the Corporation decides to purchase, extend or terminate the lease option. When the lease liability is re-measured, an adjustment is applied to the carrying value of the ROU asset.
| Right to Use Asset | Cost
January 1, 2025 | Accumulated
Amortization
January 1, 2025 | Additions
Disposals | Amortization | Impairment
Loss | Net
March 31, 2025 |
| --- | --- | --- | --- | --- | --- | --- |
| | $ 1,038,179 | $ 346,060 | | $ 51,909 | | $ 640,210 |
| Right to Use Asset | Cost
January 1, 2024 | Accumulated
Amortization
January 1, 2024 | Additions
Disposals | Amortization | Impairment
Loss | Net
December 31,
2024 |
| | $ 1,038,179 | $ 138,424 | $ - | $ 207,636 | $ - | $ 692,119 |
6. BANK LOANS
During the prior years, there was a global outbreak of COVID-19 (coronavirus), which had a significant impact on businesses through the restrictions put in place by the Canadian, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. The outbreak of coronavirus impacted the company's business resulting in reduction of sales revenue for the current year. As a result of the outbreak the Company obtained bank loans financing totaling $120,000 under the terms of the Canada Emergency Business Account ("CEBA"). The loans were government guaranteed, non-interest bearing loans until December 31, 2022 (subsequently extended to December 31, 2023). If 75% of the loan was repaid by December 31, 2022 (subsequently extended to December 31, 2023) the remaining 25% balance would be forgiven. If the loans were not repaid by December 31, 2022 (subsequently extended to December 31, 2023) the loans would bear interest at an annual rate of 5% per annum and would be due in full by December 31, 2025. On January 12, 2024 the Company repaid 75% of the bank loans and earned the 25% portion in forgiven loans for a total of $40,000.
7. CAPITAL STOCK
(a) Capital stock consists of 212,275,038 common shares outstanding as at March 31, 2024. An unlimited number of common shares and an unlimited number of preferred shares are authorized. To date the Company has not issued any preferred shares. The following are share issuances and cancellations for the most recently completed quarter.
i) On February 12, 2025, the Company closed a non-brokered private placement to accredited investors for 10,666,666 units at a price of $0.03 per unit for gross proceeds of $320,000. Each Unit consists of one common share. This Private Placement did not include Share Purchase Warrants and Finder's Fees were not paid.
ii) Basic income (loss) per share was calculated on the basis of the weighted average number of common shares outstanding for the year. Fully dilutive income (loss) per share has not been disclosed as the exercise of the common share purchase options and warrants outstanding as at March 31, 2025 and 2024 would have anti-dilutive effect.
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
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SUTTEN WATER TECHNOLOGIES INC.
(b) Stock incentive plan
Approved by the shareholders on September 25, 2000, and amended on June 5, 2008, November 29, 2013, November 28, 2014, November 27, 2015, December 17, 2021, and December 23, 2022, December 20, 2024, and pursuant to Policy 4.4 of the TSX Venture Exchange, the Company maintains a Stock Incentive Plan for designated officers, directors, consultants and employees. Each stock option entitles the holder to one common share. Under the terms of the plan the term of the options shall not exceed five years. The Option price of any shares in respect of which an option may be granted under the Plan shall be not less than the closing price of the Company's common shares on the TSX Venture Exchange on the last day of trading immediately preceding the date of the grant less any applicable discount, provided that where the common shares have not traded for a period of twenty days (20) preceding the date of grant, the Option price shall be determined based upon the average between the closing bid and asked prices for the five days (5) immediately preceding the date of grant. A summary of the status of the outstanding and exercisable stock options under the Stock Incentive Plan is presented below:
The following table summarizes information about the options outstanding at March 31, 2025:
| Options | Weighted average exercise price | |
|---|---|---|
| Outstanding December 31, 2024 | 22,050,000 | $0.06 |
| Outstanding December 31, 2025 | 22,050,000 | $0.06 |
The following table summarizes information about the options outstanding at March 31, 2025:
| Options outstanding | Remaining contractual life in years | Weighted average exercise price | |
|---|---|---|---|
| $0.05 | 2,000,000 | 7.90 | |
| $0.05 | 6,225,000 | 6.79 | |
| $0.05 | 9,000,000 | 5.12 | |
| $0.05 | 1,000,000 | 6.52 | |
| $0.06 | 500,000 | 6.14 | |
| $0.10 | 3,325,000 | 2.06 | |
| 22,050,000 | 5.47 | $0.06 |
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
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surrent WATER TECHNOLOGIES INC.
(c) Warrants
The following table summarizes information about common share purchase warrants outstanding at March 31, 2025:
| Warrants outstanding | Weighted average exercise price | Weighted average remaining contractual life in years | |
|---|---|---|---|
| Outstanding January 1, 2024 | 57,150,500 | 0.06 | 0.61 |
| Expired March 5, 2024 | (26,325,000) | ||
| Expired March 10, 2024 | (8,765,500) | ||
| Outstanding December 31, 2024 | 22,060,000 | 0.05 | 0.28 |
| Outstanding January 1, 2025 | 22,060,000 | 0.05 | 0.28 |
| Expired March 24, 2025 | (11,000,000) | ||
| Outstanding March 31, 2025 | 11,060,000.00 | 0.05 | 0.09 |
- GEOGRAPHIC INFORMATION
All of the Company's operations and assets are located in Canada.
On January 8, 2018, the Company acquired Pumptonics Inc. to realize operational efficiencies and as a result, the Company now has two operating segments. Key measures used by the CODM in assessing performance and in making resource allocation decisions include revenues, gross profit and net loss.
The Company's operating results are divided into two reportable operating segments. The two reportable operating segments are Current Water and Pumptonics. Included in Current Water is corporate activity.
Current Water segment, ("Current Water") operates in treating water and engineering, manufacturing and sales of advanced water systems.
Pumptonics segment, ("Pumptonics") engages in developing hydraulic fluid systems to move water and other liquids.
- FINANCIAL INSTRUMENTS
Credit Risk
The Company's financial assets include cash and cash equivalents, and accounts receivable. The Company's maximum exposure to credit risk as at March 31, 2025, is the carrying value of its financial assets. The Company manages credit risk by maintaining bank and broker accounts with reputable banks and financial institutions.
Liquidity Risk
The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at March 31, 2025, the Company had cash and cash equivalent balances of $166,953 (2024: $112,087) to settle
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025
surren WATER TECHNOLOGIES INC.
current liabilities of $602,537 (2024: $872,898). Of the current liabilities outstanding, $494,595 (2024: $627,654) of the Company's financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms.
Interest rate risk
In the fiscal year ended 2020 the Company obtained bank loans financing totaling $120,000 under the terms of the Canada Emergency Business Account. These loans were government guaranteed, non-interest bearing up to December 31, 2023. If 75% of the loans were repaid by December 31, 2023 the remaining 25% balance would be forgiven. If still outstanding on December 31, 2023 the loans would bear interest at an annual rate of 5% and would be due in full by December 31, 2025. On January 12, 2024 the Company repaid 75% of the bank loans and earned the 25% portion in forgiven loans for a total of $40,000. The company therefore has limited exposure to interest rate risk.
Foreign currency rate risk
The Company has bank balances, accounts receivable, and accounts payable that are in US dollars and therefore subject to foreign currency rate risk.
Fair value of financial instruments and Hierarchy
The book value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, other liabilities, and loans payable all approximate their fair values as at March 31, 2025. The Company did not hold any FVTPL financial instruments during the current year.
For disclosure purposes, the Company categorizes its financial assets and liabilities measured at the fair value into one of three different levels depending on the observation of the inputs used in the measurement.
The three levels are defined as follows:
Level 1: Fair value is based on unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2: Fair value is based on inputs other than quoted prices included within Level 1 that are not observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3: Fair value is based on valuation techniques that require one or more significant unobservable inputs.
As at March 31, 2025 the Company's financial instruments are cash and cash equivalents, considered to be Level 1 as the market value is readily available.
The company does not have any financial assets or liabilities recorded at fair value or reoccurring basis.
11. CAPITAL MANAGEMENT
The Company manages its capital (debt, including accounts payable and loans payable and equity, including capital stock and contributed surplus) to ensure that the Company will be able to continue as a going concern while attempting to maximize the return to shareholders through the optimization of a reasonable equity balance commensurate with current operating requirements. The strategy remains unchanged from 2024. The Company raises capital, as necessary, to meet its needs and to take advantage of perceived opportunities and therefore, does not have a numeric target for its capital structure. There were no changes to the Company's approach to capital management during the period ended March 31, 2024 compared to the year ended December 31, 2024. The Company does not have any covenants respecting its capital ratios.
CURRENT WATER TECHNOLOGIES INC.
FIRST QUARTER FINANCIAL STATEMENTS AND NOTES 2025