Inturai Ventures — Annual Report 2019

Jan 28, 2020

P2P INFO INC.

CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 and 2018

(Expressed in Canadian Dollars)

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INDEPENDENT AUDITORS’ REPORT

To the Shareholders and Directors of P2P Info Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of P2P Info Inc. (the “Company”), which comprise the consolidated statements of financial position as at September 30, 2019 and 2018, and the consolidated statements of comprehensive loss, changes in deficiency and cash flows for the years then ended, and the related notes, including a summary of significant accounting policies and other explanatory information. In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at September 30, 2019 and 2018, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Basis for Opinion

We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audits of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 of the accompanying consolidated financial statements, which indicates that the Company has incurred losses since its inception and has an accumulated deficit of $272,748 as at September 30, 2019. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other Information

Management is responsible for the other information, which comprises the information included in the Management’s Discussion and Analysis filed with the relevant Canadian securities commissions.

Our opinion on the financial statements does not cover the other information, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audits.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditors’ report is Raymond Lu.

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CHARTERED PROFESSIONAL ACCOUNTANTS Vancouver, British Columbia January 28, 2020

P2P INFO INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2019 AND 2018

(Expressed in Canadian dollars)

	Notes		2019		2018
ASSETS
Current assets
Cash		$	222	$	2,161
Other receivables	4		882		1,248
Total assets			1,104		3,409
LIABILITIES AND DEFICIENCY
Current liabilities
Accounts payable and accrued liabilities		$	22,914	$	12,775
Shareholder loan	4		37,162		23,805
Total liabilities			60,076		36,580
Deficiency
Share capital	3		213,776		213,776
Deficit			(272,748)		(246,947)
Total deficiency			(58,972)		(33,171)
Total liabilities and deficiency		$	1,104	$	3,409

NATURE OF BUSINESS AND GOING CONCERN (NOTE 1)

The consolidated financial statements were authorized for issue by the board of directors on Jauanary 28, 2020 and were signed on its behalf by:

/s/ "Ying Zhou"

Ying Zhou, Director

/s/ "Yan Zhang"

Yan Zhang, Director

(The accompanying notes are an integral part of these consolidated financial statements.)

P2P INFO INC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in Canadian dollars)

	Notes		2019		2018
Expenses
Interest and bank charges	4	$	2,430	$	904
Listing and transfer agent expenses			6,191		8,901
Office and miscellaneous			102		131
Professional Fees			13,771		11,735
Rent			‐		476
Salaries and benefits	4		3,307		7,631
Net loss and comprehensive loss for theyear		$	(25,801)	$	(29,778)
Net lossper common share, basic and diluted		$	(0.00)	$	(0.00)
Weighted average number of common shares outstanding			30,970,682		30,970,682

(The accompanying notes are an integral part of these consolidated financial statements.)

P2P INFO INC.

CONSOLIDATED STATEMENTS OF CHANGES IN DEFICIENCY FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in Canadian dollars)

				Total
	Number of Shares	Share Capital	Deficit	Deficiency
	(Note 3)	(Note 3)
		$	$	$
Balance, September 30, 2017	30,970,682	213,776	(217,169)	(3,393)
Comprehensive loss for the year	‐	‐	(29,778)	(29,778)
Balance, September 30, 2018	30,970,682	213,776	(246,947)	(33,171)
Comprehensive loss for the year	‐	‐	(25,801)	(25,801)
Balance, September 30, 2019	30,970,682	213,776	(272,748)	(58,972)

(The accompanying notes are an integral part of these consolidated financial statements.)

P2P INFO INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in Canadian dollars)

	Notes		2019		2018
Cash flows used in operating activities
Net loss for the year		$	(25,801)	$	(29,778)
Item not involving cash:
Interest expense			2,357		805
Changes in non‐cash working capital items:
Decrease / (increase) in other receivable			366		(45)
Increase / (decrease) in accounts payable and accued liabilities			10,139		(8,630)
Net cash used in operating activities			(12,939)		(37,648)
Cash flows from financing activities
Shareholder loan			11,000		23,000
Net cash received from financing activities			11,000		23,000
Decrease in cash and equivalents			(1,939)		(14,648)
Cash, beginning of the year			2,161		16,809
Cash, end of theyear		$	222	$	2,161

SUPPLEMENTAL CASH FLOW INFORMATION (NOTE 5)

(The accompanying notes are an integral part of these consolidated financial statements.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THESE CONSOLIDATED FINANCIAL STATEMENTS CONTAIN THE FOLLOWING NOTES:

1.	NATURE OF BUSINESS AND GOING CONCERN ......................................................................................... 10
2.	SIGNIFICANT ACCOUNTING POLICIES ........................................................................................................ 10
3.	SHARE CAPITAL ............................................................................................................................................. 15
4.	RELATED PARTY TRANSACTIONS AND BALANCES .................................................................................. 16
5.	SUPPLEMENTAL CASH FLOW INFORMATION ............................................................................................ 16
6.	INCOME TAX ................................................................................................................................................... 17
7.	FINANCIAL INSTRUMENTS ............................................................................................................................ 17
8.	CAPITAL MANAGEMENT ................................................................................................................................ 19

P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in Canadian dollars)

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1. NATURE OF BUSINESS AND GOING CONCERN

P2P Info Inc. (the “Company” or “P2P”) was incorporated on September 29, 2014 under the laws of British Columbia, Canada. Its registered office is located at 900 – 885 West Georgia Street, Vancouver, British Columbia V6C 3H1. The Company was incorporated as a wholly-owned subsidiary of Cascadia Blockchain Group Corp. (“Cascadia”) for the purposes of a re-organization of Cascadia pursuant to a plan of arrangement (“Plan of Arrangement”) under the Business Corporation Act of British Columbia. The Plan of Arrangement became effective on November 28, 2014. The Company became a reporting issuer in British Columbia, Alberta and Ontario on November 28, 2014. The principal business of the Company is the identification, evaluation and acquisition of a business.

The Company is currently in the process of developing and finalizing its intended business operations.

These consolidated financial statements are prepared on a going concern basis, which assumes that the Company will continue its operations for a reasonable period. The Company has incurred losses since its inception and has an accumulated deficit of $272,748 as at September 30, 2019. The Company’s ability to continue its operations and to realize assets at their carrying values is dependent upon obtaining additional financing or maintaining continued support from its shareholders and creditors, identifying and acquiring businesses or assets, and generating profitable operations in the future, which raises significant doubt about the Company’s ability to continue as a going concern. These consolidate financial statements do not include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

2. SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by International Accounting Standards Board (“IASB”).

Basis of consolidation

These consolidated financial statements incorporate the financial statements of the Company and its wholly-owned subsidiary, 1026195 B.C. Ltd. until January 21, 2019, the dissolved date of the subsidiary. All inter-company transactions, balances, income and expenses have been eliminated.

Basis of measurement

These consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

Functional and presentation currency

The presentation and functional currency of the Company and its subsidiary is the Canadian dollar.

Use of estimates and judgements

The preparation of these consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses for the periods reported. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Significant area requiring the use of management estimates is amount to be recognized on deferred income taxes and liabilities. Actual results could differ from these estimates.

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in Canadian dollars)

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Use of estimates and judgments (continued)

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods.

Critical accounting judgements are accounting policies that have been identified as being complex or involve subjective judgments or assessments with a significant risk of material adjustment in the next fiscal year. The more significant area where management judgement has been applies is the ability of the Company to continue as a going concern.

Financial instruments

(i) Financial assets - Classification

The Company classifies its financial assets in the following categories:

• Those to be measured subsequently at fair value (either through Other Comprehensive Income (“FVOCI”), or through profit or loss (“FVTPL”), and

• Those to be measured at amortized cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses are either recorded in profit or loss or other comprehensive income.

(ii) Financial assets - Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss. Financial assets are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Subsequent measurement of financial assets depends on their classification. There are three measurement categories under which the Company classifies its financial instruments:

• Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included as finance income using the effective interest rate method. The Company has classified its other receivable - excluding GST recoverable as amortized cost.

• FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through other comprehensive income (“OCI”), except for the recognition of impairment gains and losses, interest revenue, and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other gains (losses). Interest income from these financial assets is included as finance income using the effective interest method. The Company has not designated any financial assets at FVOCI.

• FVTPL: Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on an investment that is subsequently measured at FVTPL is recognized in profit or loss and presented net as revenue in the Statement of Loss and Comprehensive Loss in the period in which it arises. The Company has classified its cash as FVTPL.

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in Canadian dollars)

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Financial instruments (continued)

(iii) Financial liabilities

The Company classifies its financial liabilities into the following categories:

• FVTPL; and

• Amortized cost.

A financial liability is classified as at FVTPL if it is classified as held-for-trading or is designated as such on initial recognition. Directly attributable transaction costs are recognized in profit or loss as incurred. The fair value changes to financial liabilities at FVTPL are presented as follows:

• the amount of change in the fair value that is attributable to changes in the credit risk of the liability is presented in OCI; and

• the remaining amount of the change in the fair value is presented in profit or loss.

The Company has not designated any financial liabilities at FVTPL.

Other non-derivative financial liabilities are initially measured at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest method. The Company has classified its accounts payable and shareholder loan as amortized cost.

Impairment

(i) Non-financial assets

The carrying amounts of the Company’s non-financial assets, other than deferred income tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets’ recoverable amount is estimated.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or group of assets (the “cash-generating unit”).

An impairment loss is recognized if the carrying amount of a cash-generating unit exceeds its estimated recoverable amount. The recoverable amount of an asset or a cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cost flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the assets. Impairment losses are recognized in net income (loss).

Impairment losses recognized in prior years are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss has been recognized.

(ii) Financial assets

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in Canadian dollars)

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Impairment (continued)

The Company recognizes loss allowances for expected credit losses (“ECLs”) on its financial assets measured at amortized cost. Due to the nature of its financial assets, the Company measures loss allowances at an amount equal to expected lifetime ECLs. Lifetime ECLs are the anticipated ECLs that result from all possible default events over the expected life of a financial asset. ECLs are a probability ‐ weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the related financial asset. The Company does not have any financial assets that contain a financing component.

Provisions

Provisions are recorded when a present legal or constructive obligation exists as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the consolidated statement of financial position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all the economic benefits required to settle, a provision is expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount receivable can be measured reliably.

Share capital

The Company records proceeds from the issuance of its common shares as equity. Incremental costs directly attributable to the issue of new common shares are shown in equity as a deduction, net of tax, from the proceeds. Common shares issued for consideration other than cash are valued based on their market value at the date that the shares are issued.

The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the most easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component.

Financing costs

Professional, consulting, regulatory and other costs directly attributable to financing transactions are recorded as deferred financing costs until the financing transactions are completed, if the completion of the transaction is considered likely; otherwise they are expensed as incurred. Share issue costs are charged to share capital when the related shares are issued. Deferred financing costs related to financing transactions that are not completed are charged to earnings.

Loss per share

The Company presents basic and diluted loss per share data for its common shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted loss per share does not adjust the loss attributable to common shareholders or the weighted average number of common shares outstanding when the effect is antidilutive.

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in Canadian dollars)

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Income taxes

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the consolidated statement of financial position date, and includes any adjustment to tax payable or receivable in respect of previous years.

Deferred taxes are recorded using the liability method whereby deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted at the end of each reporting period. Deferred tax is not recognized for temporary differences which arise on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affect neither accounting nor taxable profit nor loss.

A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Changes in accounting policies including initial adoption

Certain new standards, interpretations and amendments to existing standards have been issued by the IASB that are mandatory for future accounting periods. Some updates that are not applicable or are not consequential to the Company may have been excluded from the list below:

Standards effective for annual periods beginning on or after January 1, 2018

The Company adopted these standards on October 1, 2018.

IFRS 9 - Financial Instruments - In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: recognition and measurement and all previous versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, with early application permitted. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions.

The following table shows the original classification under IAS 39 and the new classification under IFRS 9:

	Original classification IAS
Financialassets/liabilities	39	Newclassification IFRS 9
Financial assets:
Cash	FVTPL	FVTPL
Other receivable - excluding	Loans and receivables	Amortized cost
GST recoverable
Financial liabilities:
Accounts payable	Other financial liabilities	Amortized cost
Shareholder loan	Other financial liabilities	Amortized cost

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in Canadian dollars)

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2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Changes in accounting policies including initial adoption (continued)

IFRS 15 – Revenue from Contracts with Customers – IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It has replaced IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. The new standard establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The Company adopted the above standards in its financial statements for the annual period beginning on October 1, 2018 with no resulting adjustments.

Standard effective for annual periods beginning on or after January 1, 2019

IFRS 16 - Leases – On January 13, 2016 the IASB issued IFRS 16, “Leases”. This standard introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. This standard substantially carries forward the lessor accounting requirements of IAS 17, while requiring enhanced disclosures to be provided by lessors. Other areas of the lease accounting model have been impacted, including the definition of a lease.

Based on current expectations, the Company does not expect this standard to have a significant impact on the financial statements.

3. SHARE CAPITAL

Authorized:

The Company has authorized an unlimited number of common and preferred shares with no par value.

Issued and outstanding:

There was no change in share capital for the years ended September 30, 2019 and 2018.

Escrow Shares

As at September 30, 2019, the Company has 1,065,300 shares held in escrow. The release of the securities will be determined when the Company becomes a listed issuer.

Stock options

The Company did not have a stock option plan in place as at September 30, 2019. .

Share purchase warrants

During the years presented, there was no share purchase warrants activity.

As at September 30, 2019 and 2018, there were no share purchase warrants outstanding.

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in Canadian dollars)

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4. RELATED PARTY TRANSACTIONS AND BALANCES

Key management personnel compensation

The Company incurred the following compensation to key management personnel of the Company:

			2019		2018
Salaries and benefits	Directors	$	3,307	$	7,631

Key management includes directors, the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”) of the Company. Salaries and benefits incurred are presented gross of any reimbursements from the Company.

Shareholder loans received

	2019	2018
Balance, beginning of year	$ 23,805	$ -
Advances	11,000	23,000
Accrued interest	2,357	805
Balance, end of the year	$ 37,162	$ 23,805

During the year ended September 30, 2019, the Company received $11,000 from a shareholder (2018 - $23,000).

The shareholder loans are secured by promissory notes totaling $34,000. The loans are interest bearing at 8% per annum and are due on demand. These loans may be converted into common shares at the option of the Company at any time without penalty at a price equal to the price and conditions of the latest approved financing completed by the Company.

Interest incurred on these loans for the year ended September 30, 2019 was $2,357 (2018 - $805).

Other receivables from related parties

As at September 30, 2018, included in other receivable was $479 due to the Company controlled by the CEO of the Company.

Other payables to related parties

As at September 30, 2019, included in accounts payable and accrued liabilities was $11,184 (2018 - $6,996) due to the CFO of the Company. The amount outstanding is non-interest bearing, unsecured and with no fixed repayment terms.

5. SUPPLEMENTAL CASH FLOW INFORMATION

			2019		2018
Cash paid for income taxes during the year		$	-	$	-
Cashpaid for interest duringtheyear		$	-	$	-

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in Canadian dollars)

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6. INCOME TAXES

The following table reconciles the amount of income tax recoverable on application of the combined statutory Canadian federal and provincial income tax rates:

		2019		2018
Combined statutory rate		27%		26.75%
Expected income tax recovery	$	(8,000)	$	(7,965)
Increase in income tax rate		-		965
Deferred taxassetsnotrecognized		8,000		7,000
Balance,end ofyear	$	-	$	-

Significant components of the Company’s deferred income tax assets not recognized are as follows:

		2019		2018
Non-capital losses	$	75,000	$	67,000
Shareissuance costs		1,000		1,000
Balance,end ofyear	$	76,000	$	68,000

As at September 30, 2019, the Company has available non-capital losses of approximately $276,000 for deduction against future taxable income. The non-capital losses, if not utilized, will expire as follows:

2035 2036 2037 2038 2039	$ 134,000 52,000 33,000 30,000 27,000
	$ 276,000

7. FINANCIAL INSTRUMENTS

Classification and fair value

The Company’s financial instruments consist of cash, other receivables – excluding GST recoverable, accounts payable and shareholder loan. Financial instruments are classified into one of the following categories: FVTPL, FVTOC, or amortized cost. The carrying values of the Company’s financial instruments are classified into the following categories:

The following table summarized the carrying values of the Company’s financial instruments:

	2019	2018
	$	$
Financial assets at fair value through profit or loss (i)	222	2,161
Financial assets measured at amortized cost (ii)	-	479
Financial liabilities measured at amortized cost(iii)	60,076	36,580

(i) Cash and cash equivalents

(ii) Accounts receivable and other receivables - excluding GST recoverable

(iii) Accounts payable and shareholder loan

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in Canadian dollars)

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7. FINANCIAL INSTRUMENTS (continued)

Classification and fair value (continued)

Financial instruments measured at fair value on a recurring basis are classified into one of three levels in the fair value hierarchy based on the degree to which the inputs used to determine the fair value are observable. The three levels of the fair value hierarchy are:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable input).

Cash of $222 is classified as Level 1. There were no transfers into or out of Level 2 or 3 during the year ended September 30, 2019.

The fair value of other receivables – excluding GST recoverable, accounts payable and shareholder loan approximate their book values because of the short-term nature of these instruments.

Financial risk management

The Company’s financial risks arising from its financial instruments are credit risk, liquidity risk, and interest rate risk. The Company’s exposure to these risks and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure appropriate measures are implemented in a timely and effective manner.

Currency risk

The Company’s expenses are denominated in Canadian dollars. The Company’s corporate office is based in Canada and its current exposure to exchange rate fluctuations is minimal. The Company does not have any foreign currency denominated monetary assets or liabilities.

Credit risk

Credit risk is the risk of potential loss to the Company if the counter party to a financial instrument fails to meet its contractual obligations. The Company does not have any significant credit risk.

Liquidity risk

Liquidity risk is the risk that the Company will not meet its obligations associated with its financial liabilities as they fall due. The Company manages liquidity risk through the management of its capital structure and financial leverage. Management closely monitors the liquidity position and expects to have adequate sources of funding to finance the Company’s projects and operations. As at September 30, 2019, the Company had a working capital deficit of $58,972 (2018 - $33,171). All the Company’s financial liabilities are classified as current.

Interest rate risk

The Company has no interest-bearing debt. The Company has not entered into any derivative instruments to manage interest rate fluctuations. The Company does not have significant interest rate risk.

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P2P INFO INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR YEARS ENDED SEPTEMBER 30, 2019 AND 2018 (Expressed in Canadian dollars)

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8. CAPITAL MANAGEMENT

The Company’s objective when managing capital is to safeguard its ability to continue as a going concern, so that it can continue to provide returns to shareholders and benefits for other stakeholders. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. The capital of the Company includes all the accounts in the shareholders’ deficiency.

The Company’s objective is met by retaining adequate equity to provide for the possibility that cash flows from assets will not be sufficient to meet future cash flow requirements. The Board of Directors does not establish quantitative return on capital criteria for management. Currently, the Company is relying on private placements and advances from the directors and officers to continue its operations. The Company is not subject to any externally imposed capital requirements.

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