Hapbee Technologies, Inc. — Interim / Quarterly Report 2022

Dec 9, 2022

Condensed Consolidated Interim Financial Statements of

HAPBEE TECHNOLOGIES, INC.

For the 3- and 9-Month periods ended September 30, 2022

Comparative periods include the 3- and 9-Month periods ended September 30, 2021 and the year-ended December 31, 2021

(Expressed in U.S. dollars)

(Unaudited)

HAPBEE TECHNOLOGIES, INC.

• Condensed Consolidated Interim Financial Statements 3- and 9-Month Periods Ended September 30, 2022

NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The accompanying unaudited condensed consolidated interim financial statements of Hapbee Technologies, Inc. for the 3- and 9-Month periods ended September 30, 2022 have been prepared by the management of the Company and

Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the condensed consolidated interim financial statements, they must be accompanied by a notice indication that an auditor has not reviewed the condensed consolidated interim financial statements.

The accompanying unaudited condensed consolidated interim financial statements of the Company have been se condensed consolidated interim financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review

Hapbee Technologies, Inc. Condensed Consolidated Interim Statements of Financial Position As at September 30, 2022 and December 31, 2021

Expressed in U.S. dollars Assets Current assets Cash Receivables Inventory Prepaid expenses Intangible assets Total assets Liabilities Current liabilities Accounts payable and accrued liabilities Product warranty liability Unearned revenue Total current liabilities Warrant liability Total liabilities Equity Share capital Reserves Accumulated other comprehensive income Accumulated deficit Total quity Nature of operations and going concern Basis of presentation Commitments and contingencies Subsequent events	September 30, 2022 (Unaudited) December 31, 2021 (Audited) $ $ 279,368 3,630,119 36,529 91,926 323,945 283,596 40,245 -
	680,087 4,005,641 2,123,987 2,283,235
	2,804,074 6,288,876
	1,559,537 945,867 57,786 52,805 438,223 579,352
	2,055,546 1,578,024 350,029 3,102,566
	2,405,575 4,680,590 13,487,353 13,341,355 6,299,483 5,702,819 494,271 33,171 (19,882,608) (17,469,059)
	398,499 1,608,286
	2,804,074 6,288,876

Approved on behalf of the Board of Directors on December 8, 2022.

Michael Matysik Director	Robert Dzisiak
	Director

Hapbee Technologies, Inc. Condensed Consolidated Interim Statements of Financial Position As at September 30, 2022 and December 31, 2021

Expressed in U.S. dollars Revenues Sales on products Cost of goods sold Royalty fees Other income Advertising and other income Expenses Amortization of intangible assets Consulting General and administrative Payroll and staff benefits Product development costs Professional fees Royalty fees Share-based compensation (note 10) Total operating expenses Operating loss before other item Other item: Change in fair value of warrant liability (note 13) Net loss for the period Other comprehensive income / (loss) Net loss and comprehensive loss for the period Loss per share basic and diluted (note 12) Weighted-average number of shares outstanding - basic and diluted	. Three months Ended September 30, 2022 (Unaudited) Three months Ended September 30, 2021 (Unaudited) Nine months Ended September 30, 2022 (Unaudited) Nine months Ended September 30, 2021 (Unaudited) $ $ $ $ 326,604 437,835 993,407 1,147,311 (159,502) (205,959) (732,178) (576,782) (26,827) - - -
	140,275 231,876 261,229 570,529 - 105 - 6,855 52,999 53,124 159,248 158,997 491,372 828,590 2,816,392 1,911,579 214,972 492,982 1,642,740 1,486,080 64,996 85,726 157,425 157,425 54,293 45,000 729,508 244,510 25,629 71,875 99,866 151,583 - 72,000 133,988 223,805 231,975 321,886 703,090 1,380,797
	(1,136,236) (1,971,183) (6,442,257) (5,714,776)
	(995,961) (1,739,202) (5,889,615) (5,137,392) - 125,679 3,471,306 405,685
	(995,961) (1,613,523) (2,418,309) (4,731,707) - (12,357) 497,812 855
	(995,961) (1,625,880) (1,920,497) (4,730,852) ($0.05) ($0.03) ($0.10) ($0.10)
	48,860,028 48,860,028 48,529,927 48,529,927

Hapbee Technologies, Inc. Condensed Consolidated Interim Statements of Changes in Cash Flows For the nine months ended September 30, 2022 and 2021

Expressed in U.S. dollars Operating activities Net loss for the year Item not involving cash: Amortization of Intangible Assets Share-based compensation Change in FV of warrant liability Changes in non-cash working capital balances: Decrease / (Increase) in receivable Decrease / (Increase) in inventory Decrease / (Increase) in prepaid expenses Warranty Liaiblity Decrease in accounts payable and accrued liabilities Decrease in unearned revenue Net cash used in operating activities Investing activities License fees Development costs incurred Net cash used in investing activities Financing activities Proceeds from subordinated voting shares issuances (private placement) Share issuance cost Exercise of RSUs Net cash provided by financing activities Effect of foreign exchange Increase (decrease) in cash during the period Cash, beginning of the period Cash, end of the period	Three months ended September 30, 2022 (Unaudited) Three months ended June 30, 2022 (Unaudited) $ $ (995,961) (1,422,348) 52,999 106,249 231,975 471,115 - (3,471,305) 55,398 70,856 (40,349) (89,389) (40,245) (48,155) 4,981 4,981 613,670 215,286 (141,129) (94,479)
	(258,661) (4,257,190)
	- - - -
	- -
	- 1,273,253 (26,348) (26,348) - -
	(26,348) 1,246,905
	(39,203) (17,254) (323,212) (3,027,539)
	602,580 3,630,119
	279,368 602,580