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Mobio Technologies Inc. — Interim / Quarterly Report 2021
Nov 25, 2021
44924_rns_2021-11-25_f047bf44-a322-4916-aca7-1d7c232a7fd1.pdf
Interim / Quarterly Report
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Mobio Technologies Inc.
AMENDED AND RESTATED MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED
OCTOBER 31, 2020 AND 2019
Amended and Restated Management’s Discussion and Analysis
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NOTICE TO READER
The Audit Committee, in consultation with management of the Company, has determined that the Company’s previously filed unaudited condensed consolidated interim financial statements and management’s discussion and analysis for the three months ended October 31, 2020 and 2019 needed to be amended to reflect certain adjustments.
Details of the changes are fully described in Note 13 to the Amended and Restated Unaudited Condensed Consolidated Interim Financial Statements as filed on November 25, 2021.
The previously filed unaudited condensed consolidated interim financial statements and management’s discussion and analysis for the financial periods were originally filed by the Company on Sedar on December 23, 2020. Each of the Amended and Restated Unaudited Condensed Consolidated Interim Financial Statements and Revised Management’s Discussion and Analysis (“MD&A”) replaces and supersedes the respective previously filed unaudited condensed consolidated financial statements and related MD&A.
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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TO OUR SHAREHOLDERS
AMENDED AND RESTATED MANAGEMENT’S DISCUSSION AND ANALYSIS
The following is management’s Amended and Restated Management Discussion and Analysis (“MD&A”) of Mobio Technologies Inc.’s (“Mobio” or the “Company”) operating and financial results for the three months ended October 31, 2020 and 2019 as well as information and expectations concerning the Company’s outlook based on currently available information. This report is dated November 25, 2021.
This amended and restated MD&A should be read in conjunction with the Company’s amended and restated condensed consolidated interim financial statements for the three months ended October 31, 2020 and 2019, and the audited annual financial statements for the years ended July 31, 2020 and 2019. Additional information is available at www.sedar.com.
Management is responsible for the preparation and integrity of the financial statements, including the maintenance of appropriate information systems, procedures and internal controls and to ensure that information used internally or disclosed externally, including the amended and restated condensed consolidated interim financial statements and amended and restated MD&A, is complete and reliable. The Company’s Board of Directors follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Board’s audit committee meets with management no less than quarterly to review the financial statements including the amended and restated MD&A and to discuss other financial, operating and internal control matters.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This amended and restated MD&A contains forward-looking information including the Company’s future plans. The use of any of the words “target”, “plans”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Such forward looking information, including but not limited to statements pertaining to Company’s future plans and management’s belief as to the Company’s potential involve known and unknown risks uncertainties, which could be significant, and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements. Forward looking information is based on management’s expectations regarding future growth, results of operations, future capital and other expenditures (including the amount, nature and sources of funding for such expenditures), business prospects and opportunities. These risks related to forward looking information include, but are not limited to: the risks associated with the commercial viability of any technologies the Company is in the process of developing or deploying, delays or changes in plans with respect to any technologies, costs and expenses, the risk of foreign exchange rate fluctuations, risks associated with securing the necessary regulatory approvals and financing to proceed with any planned business venture, product development or deployment, and risks and uncertainties regarding the potential to economically scale and bring to profitability any of the Company’s current or planned endeavors. Although the Company has attempted to take into account important factors that could cause actual costs or results to differ materially, there may be other factors that cause the results of the Company’s business to not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. See the Risk Management section of this amended and restated MD&A for a further description of these risks. The forward-looking information included in this amended and restated MD&A is expressly qualified in its entirety by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking information.
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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1. SUMMARY OF OPERATIONS AND EVENTS
The Company was originally incorporated under the Business Corporations Act (Alberta) on November 19, 1998. On December 6, 2012, the Company changed its name to LX Ventures Inc. and was continued into British Columbia under the Business Corporations Act (British Columbia). On July 7, 2014, the Company again changed its name to Mobio Technologies Inc.
Development of the Company’s Business
On February 22, 2019, the Company completed a plan of arrangement whereby the shares of one of the Company’s subsidiaries, Plank Ventures Ltd. (“Plank”), was distributed to the shareholders of the Company and Plank ceased to be a subsidiary of the Company. Pursuant to the plan of arrangement, all of the Company’s portfolio investments were transferred to Plank. In accordance with IFRS 10, as the Company had a variable interest in Plank through an intercompany receivable and has the same directors and shareholders as Plank, the Company met the criteria for having control over Plank and, therefore, the consolidated financial statements include the assets, liabilities, revenues and expenses of Plank and its subsidiaries. The portion of equity attributable to the shareholders of Plank was included as a separate component of equity in the consolidated statements of financial position. On August 20, 2020, the Company forgave the intercompany receivable from Plank of $6,543,410. Effective August 20, 2020, the Company is no longer exposed to variable returns in Plank and therefore no longer controls Plank.
Over the past several years, Mobio has completed a series of acquisitions that give it a footprint in the social media space. The Company is now focused primarily on one of these acquired assets, Strutta.com Media Inc. (“Strutta”). Strutta is a social promotions platform that allows brands to run contests and sweepstakes across multiple social web channels
Financing Activities
On April 6, 2020, the Company received a loan in the amount of $100,000 from a company controlled by an officer. The loan is unsecured, due on demand and bears interest at 10% per annum. During the three months ended October 31, 2020, the Company recorded $2,521 (period ended October 31, 2019 - Nil) in interest on the loan. The balance of the loan at October 31, 2020 is $105,726.
On January 30, 2020, the Company received a loan in the amount of $50,000 from a company controlled by an officer. The loan is unsecured, due on demand and bears interest at 10% per annum. During the three months ended October 31, 2020, the Company recorded $1,260 (period ended October 31, 2019 - Nil) in interest on the loan. The balance of the loan at October 31, 2020 is $53,781.
On November 20, 2019, the Company received a loan in the amount of $50,000 from a company controlled by an officer. The loan is unsecured, due on demand and bears interest at 10% per annum. During the three months ended October 31, 2020, the Company recorded $1,260 (period ended October 31, 2019 - Nil) in interest on the loan. The balance of the loan at October 31, 2020 is $54,753.
On August 29, 2019, the Company received a loan in the amount of $100,000 from a company controlled by a significant shareholder. The loan is unsecured, due on demand and bears interest at 10% per annum. During the three months ended October 31, 2020, the Company recorded $2,521 (period ended October 31, 2019 - $1,754) in interest on the loan. The balance of the loan at October 31, 2020 is $111,781.
On August 14, 2019, the Company received a loan in the amount of $25,000 from a company controlled by an officer. The loan is unsecured, due on demand and bears interest at 10% per annum. During the three months ended October 31, 2020, the Company recorded $630 (period ended October 31, 2019 - $541) in interest on the loan. The balance of the loan at October 31, 2020 is $28,048.
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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2. EARNINGS AND EXPENSES
Following is a discussion of the Company’s financial results for the amended and restated three months ended October 31, 2020 and 2019. The amended and restated condensed consolidated interim financial statements of the Company for the three months ended October 31, 2020 and 2019 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). All inter-company balances and transactions have been eliminated upon consolidation.
Amended and Restated Three Months Ended October 31, 2020 and 2019
Revenue
The Company’s revenues primarily consist of software licensing fees and usage fees generated by Strutta.
The Company’s revenues for the three-month period ended October 31, 2020, were $Nil compared to $1,954 for the three months ended October 31, 2019, a decrease of $1,954 related to the decrease in Strutta revenue.
Expenses
The Company’s expenses for the three-month period ended October 31, 2020, were $81,917 compared to $156,051 for the three-month period ended October 31, 2019, a decrease of $74,134. The major differences are described below:
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A decrease of $33,194 in hosting and computing services related to the decrease in Strutta revenue
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A decrease of $46,774 in personnel costs related to a reduction of outsourcing staff and fee paid to director
Other items for the three months ended October 31, 2020 were $1,218,622 compared to $2,295 for the three months ended October 31, 2019. The increase of $1,216,327 is largely related to the deconsolidation of Plank on August 20, 2020.
3. LIQUIDITY AND CAPITAL RESOURCES
At October 31, 2020, the Company had a working capital deficit of $322,395, compared to working capital of $443,570 at July 31, 2020. Management has been actively engaged in securing the resources necessary from internal and external sources to fulfill all of the Company’s planned activities.
On August 14, 2019, the Company received a loan in the amount of $25,000 from a company controlled by an officer. The balance of the loan at October 31, 2020 is $28,048.
On August 29, 2019, the Company received a loan in the amount of $100,000 from a company controlled by a significant shareholder. The balance of the loan at October 31, 2020 is $111,781.
On November 20, 2019, the Company received a loan in the amount of $50,000 from a company controlled by an officer. The balance of the loan at October 31, 2020 is $54,753.
On January 30, 2020, the Company received a loan in the amount of $50,000 from a company controlled by an officer. The balance of the loan at October 31, 2020 is $53,781.
On April 6, 2020, the Company received a loan in the amount of $100,000 from a company controlled by an officer. The balance of the loan at October 31, 2020 is $105,726.
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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4. SELECTED QUARTERLY INFORMATION
The following table provides a brief summary of the Company’s financial results for each of the eight most recent quarters. For additional information pertaining to the Company’s quarterly results, please refer to the Company’s audited annual consolidated financial statements for the years ended July 31, 2020, and 2019, to the Company’s condensed consolidated interim financial statements for corresponding periods, and to the MD&A for each period presented, which are available at www.sedar.com.
SUMMARY OF QUARTERLY RESULTS
| Oct. 31 | Jul. 31 | Apr. 30 | Jan. 31 Oct. 31 Jul. 31 |
Apr. 30 | Jan. 31 | |
|---|---|---|---|---|---|---|
| Quarter ended | 2020 | 2020 | 2020 | 2020 2019 2019 |
2019 | 2019 |
| Revenue (1) |
$ - | $ - | $ 683 | $ 2,071 $ 1,954 $ 5,206 | $ 8,880 | $ 13,210 |
| Expenses(1) | 81,917 | 76,231 | 98,282 | 141,874 156,051 154,541 | 173,577 | 219,011 |
| Net comprehensive | ||||||
| income(loss) (1) |
(1,300,539) | 635,601 | (192,886) | (392,505) (273,460) (333,487) | (176,938) | (105,654) |
| Net loss from continuing | ||||||
| operations (1) |
(1,300,539) | 157,358 | (100,791) | (143,882) (156,392) (69,531) | (163,281) | (309,279) |
| Net income (loss) from | ||||||
| discontinued operations(1) | - | 508,645 | (92,095) | (248,623) (117,068) (263,956) | (13,657) | 203,625 |
| Loss per share, basic and diluted - continuing operations |
(0.03) | 0.00 | (0.00) | (0.00) (0.00) (0.00) |
(0.00) | (0.01) |
(1) Results from discontinued operations have been reclassified.
5. RELATED PARTY TRANSACTIONS
Payments to key management and directors, for the amended and restated periods ended October 31, 2020 and 2019 were as follows:
| Period Ended October 31, | 2020 | 2019 |
|---|---|---|
| Fees paid to current and former directors and/or officers, or to | ||
| companies controlled by directors and/or officers | $ 12,250 | $ 51,458 |
| Share-basedpayments to directors and officers | - | 79 |
| Total compensation | $ 12,250 | $ 51,537 |
Fees paid to directors and officers are included in the line item “Personnel” in the Company’s amended and restated condensed consolidated interim statements of comprehensive loss.
Interest and accretion recorded on related party loans for the periods ended October 31, 2020 and 2019 were as follows:
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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Period Ended October 31, 2020 2019
Interest and accretion accrued on loans payable to companies with
a common director and officer or to companies controlled by
directors and/or officers or by significant shareholders $ 8,192 $ 55,018
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Included in accrued liabilities at October 31, 2020 is $90,000 (July 31, 2020 - $30,000, July 31, 2019 - $60,000) owing to an officer of the Company.
6. FINANCIAL INSTRUMENTS
The Company’s financial instruments consist of cash, restricted cash, accounts receivable, related party loans payable and trade payables. As at October 31, 2020 there were no significant differences between the carrying amounts of these items and their estimated fair values. The carrying value of these items approximates their fair value.
Fair Value
The Board of Directors approves and monitors the risk management processes. The Company has exposure to the following risks from its use of financial instruments:
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Interest rate risk
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Credit risk
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Liquidity risk
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Market risk
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Currency risk
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company manages its financial instruments with the objective of minimizing potential interest rate risk, which generally means avoiding interest-bearing obligations other than in unusual circumstances. The Company is not exposed to significant interest rate risk.
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 credit risk of the Company is associated with cash, restricted cash, and accounts receivable. Management believes that the credit risk with respect to cash and restricted cash is minimal as balances are held with a high-credit quality financial institution. Accounts receivable have historically been subject to very few bad debts.
Liquidity Risk
The Company’s exposure to liquidity risk is dependent on the collection of accounts receivable, purchasing commitments and obligations or raising funds to sustain operations. The Company controls liquidity risk by management of working capital and cash flows. The Company’s ability to meet its future obligations may depend in significant part on the extent to which the Company can raise sufficient funds or implement successfully its business growth and cost reduction strategies. The Company cannot provide any assurance that it will be able to implement its strategy fully or that the anticipated results of its strategy will be realized.
Market Risk
The Company’s exposure to financial market risk is limited, as it presently does not have any investments where value fluctuates as a result of changes in prices quoted in open markets.
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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Currency risk
Currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The Company’s reporting currency is Canadian dollars and has not entered into any derivative instruments to manage foreign exchange fluctuations.
7. RISK MANAGEMENT
Early stage technology companies face many risks. While management is unable to eliminate risks, the Company is intent on identifying and mitigating such risks as much as is reasonably possible.
In evaluating an investment in Mobio, in addition to other information contained in this MD&A, investors should consider the following risk factors associated with Mobio’s business of investing in startup companies. These risk factors are not a definitive list of all risk factors associated with the Company and its business.
Risk of Loss of Entire Investment
Investing in startup companies involves a high level of risk. Startup companies may fail completely or Mobio may be unable to resell the shares it owns in the startup or collect upon the debt instrument that the Company has purchased from the startup. In these situations, Mobio may lose the entire amount of the investment.
Return on Investment is Not Guaranteed
The amount of return on investment, if any, is highly variable and not guaranteed. Some startups may be successful and generate significant returns, but many will not be successful and will only generate small returns, if any at all. Investment returns that the Company may receive will be variable in amount, frequency, and timing.
Delay in Return on Investment
Any returns generated by startup companies may take several years to materialize. Most startups take five to seven years to generate any investment return, if at all.
Liquidity Risk
It may be difficult to resell the investment in a startup. Startup investments are privately held companies and are not traded on a public stock exchange. Also, there is currently no readily available secondary market for private buyers to purchase securities of startups. Furthermore, there may be restrictions on the resale of the shares of the startup and the ability to transfer those shares.
Dilution Risk of the Investment
Startup companies may need to raise additional capital in the future through the issue of additional shares. This will dilute the percentage ownership that Mobio has in the company.
Risk of Inaccurate Valuation of the Investment
Unlike publicly traded companies that are valued through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess. The issuer will set the share price of the investment and there is a risk of overpaying for that investment.
Risk of Failure of the Startup
Investments in startups are speculative and these companies often fail. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup often relies on the development of a new product or service that may or may not find a market.
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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Risk of Profitability of Startup Companies
A startup company is still in an early phase and may be just beginning to implement its business plan. There can be no assurance that it will ever operate profitably. The likelihood of achieving profitability should be considered in light of the problems, expenses, difficulties, complications and delays usually encountered by companies in their early stages of development. The startup company may not be successful in attaining the objectives necessary for it to overcome these risks and uncertainties.
Funding risk
A startup company may require funds in excess of its existing cash resources to fund operating expenses, develop new products, expand its marketing capabilities, and finance general and administrative activities. Due to market conditions at the time the startup company needs additional funding, it is possible that the company will be unable to obtain additional funding when it needs it, or the terms of any available funding may be unfavorable. If the company is unable to obtain additional funding, it may not be able to repay debts when they are due, or the new funding may excessively dilute existing investors. If the company is unable to obtain additional funding as and when needed, it could be forced to delay its development, marketing and expansion efforts and, if it continues to experience losses, potentially cease operations.
Disclosure risks
The startup company is at an early stage and may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long trading history. The company is also only obligated to provide limited information regarding its business and financial affairs to investors.
Personnel risks
An investment in a startup is also an investment in the management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. The startup company’s management may not have the necessary expertise and experience to deliver on the company’s business plan.
Growth risk
For a startup to succeed, it will need to expand significantly. There can be no assurance that it will achieve this expansion. Expansion may place a significant strain on the company’s management, operational and financial resources. To manage growth, the company will be required to implement operational and financial systems, procedures and controls. It also will be required to expand its finance, administrative and operations staff. There can be no assurance that the company’s current and planned personnel, systems, procedures and controls will be adequate to support its future operations. The company’s failure to manage growth effectively could have a material adverse effect on its business, results of operations, and financial condition.
Competition risk
The startup may face competition from other companies, some of which might have received more funding than the startup has. One or more of the company’s competitors could offer services similar to those offered by the company at significantly lower prices, which would cause downward pressure on the prices the company would be able to charge for its services. If the company is not able to charge the prices it anticipates charging for its services, there may be a material adverse effect on the company’s results of operations and financial condition.
Market demand risk
While a startup company believes that there will be customer demand for its products, there is no assurance that there will be broad market acceptance of the company’s offerings. There also may not be broad market
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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acceptance of the company’s offerings if its competitors offer products which are preferred by prospective customers. In such event, there may be a material adverse effect on the company’s results of operations and financial condition, and the company may not be able to achieve its goals.
Control risks
Because the company’s founders, directors and executive officers may be among the company’s largest stockholders, they can exert significant control over the company’s business and affairs and have actual or potential interests that may depart from Mobio’s. The company’s founders, directors and executive officers may own or control a significant percentage of the startup company. In addition to their board seats, such persons will have significant influence over corporate actions requiring stockholder approval, irrespective of how the company’s other shareholders, including Mobio, may vote.
COVID-19
Since March 2020, several measures have been implemented in Canada and the rest of the world in response to the increased impact from novel coronavirus (“COVID-19”). The Company continues to operate its business at this time. While the impact of COVID-19 is expected to be temporary, the current circumstances are dynamic and the impacts of COVID-19 on business operations, cannot be reasonably estimated at this time. The Company anticipates this could have an adverse impact on its business, results of operations, financial position and cash flows in future periods.
8. ACCOUNTING POLICIES & USE OF CRITICAL ESTIMATES
The preparation of the amended and restated condensed consolidated interim financial statements in conformity with IFRS 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. An area subject to significant estimates is the impairment of financial and non-financial assets. Actual results could differ from those estimates.
The preparation of these amended and restated condensed consolidated interim financial statements required the use of judgment with respect to assessing whether certain acquisitions meet the definition of “ ” a business as defined in IFRS 3, Business Combinations. Those acquisitions which meet the definition of a business are accounted for as a business combination using the purchase method and require the purchase price to be allocated to the fair values of the net assets acquired, including any intangible assets that may have arisen as a result of the acquisition, with the remainder of the purchase price allocated to goodwill. Those acquisitions which did not meet the definition of a business are accounted for as a purchase of assets. The judgment applied to making this determination includes assessing whether the acquisition contains inputs, processes, and outputs as described in IFRS 3.
The Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may lead to asset impairment. The recoverable amount of an asset or a cash generating unit (“CGU”) is determined using the greater of fair value less costs to sell and value in use which requires the use of various judgments, estimates, and assumptions. The Company identifies CGUs as identifiable groups of assets that are largely independent of the cash inflows from other assets or groups of assets. Value in use calculations require estimations of discount rates and future cash flows derived from revenue growth, gross margin and operating costs. Fair value less costs to sell calculations require the Company to estimate fair value of an asset or a CGU using market values of similar assets as well as estimations of the related costs to sell.
Management has applied judgments in the assessment of the Company’s ability to continue as a going concern when preparing its amended and restated condensed consolidated interim financial statements for
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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the period ended October 31, 2020. Management prepares the amended and restated condensed consolidated interim financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. Management considered a wide range of factors relating to current and expected profitability, current working capital levels, and potential sources of replacement financing.
As a result of the assessment, management concluded the going concern basis of accounting is appropriate based on its profit and cash flow forecast and expectations with respect to access to financing for the next twelve months.
Estimates and assumptions are reviewed 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.
9. OUTSTANDING SHARE DATA
As of October 31, 2020, 38,147,546 common shares were issued and outstanding.
As of October 31, 2020, the Company had the following share purchase warrants issued and outstanding:
| Number of | Exercise | Expiry | |
|---|---|---|---|
| Warrants | Price | Date | |
| 5,483,334 | $ | 0.10 |
January 25, 2021 |
| 2,383,332 | $ | 0.10 |
January 30, 2021 |
| 1,666,670 | $ | 0.30 |
March 26, 2021 |
| 4,068,750 | $ | 0.30 | August 24,2021 |
| 13,602,086 |
As of October 31, 2020, the Company had the following stock options issued and exercisable:
| Outstanding | Exercisable | Exercise | Expiry |
|---|---|---|---|
| (#) | (#) | Price ($) | Date |
| 362,500 | 362,500 | 0.22 | Jan. 19, 2028 |
10. AMENDMENT
Subsequent to the issuance of the Company’s management discussion and analysis for the three months ended October 31, 2020 and 2019, management had determined that management discussion and analysis needed to be amended to reflected certain adjustments. The amendments and restatements include an adjustment to reverse the amount of debt cancellation and forgiveness previously recognized of $6,543,410 along with the loss on disposal of investment of $536,521 and to recognize a loss on deconsolidation of Plank Ventures Ltd. of $1,209,217. Disclosures in Notes 1, 2 and 9 of the amended and restated condensed consolidated interim financial statements have been updated to reflect these changes. Furthermore, we amended the presentation of the equity section in the Statement of Financial Position to align the July 31, 2020 comparative period with the audited July 31, 2020 results.
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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Unaudited Interim Consolidated Statements of Financial Position
| As Previously | ||||
|---|---|---|---|---|
| As Amended | Reported | |||
| As at | July 31 2020 | July 31 2020 | ||
| Equity | ||||
| Accumulated other comprehensive loss | $ | - |
$ | (30,402) |
| Equity attributable to the shareholders of the Company | 956,754 | 926,352 | ||
| Interest of shareholders of Plank Ventures Ltd. | - | (71,995) | ||
| Non-controllingshareholders' interest | $ | 1,143,029 |
$ | 1,245,426 |
Unaudited Interim Consolidated Statements of Comprehensive Loss
| As Amended | As Previously Reported | |||
|---|---|---|---|---|
| Three months ended | Three months ended | |||
| October 31, 2020 | October 31, 2020 | |||
| Other items | ||||
| Debt cancellation and foregiveness | $ | - |
$ | 6,543,410 |
| Loss on disposal of investment | - | 536,521 | ||
| Loss on deconsolidation of Plank Ventures Ltd. | 1,209,217 | - | ||
| Total other items | 1,218,622 | 7,089,336 | ||
| Net loss from continuing operations | (1,300,539) | (7,171,253) | ||
| Net loss and comprehensive loss for the period | (1,300,539) | (7,171,253) | ||
| Basic and diluted lossper share | $ | (0.03) |
$ | (0.19) |
Unaudited Interim Consolidated Statements of Changes in Equity
| As Previously | As Previously | |||||||
|---|---|---|---|---|---|---|---|---|
| As Amended Deficit | Reported Deficit | As Amended Total | Reported Total | |||||
| **October 31, 2020 ** | October 31, 2020 | **October 31, 2020 ** | October 31, 2020 | |||||
| Deconsolidation of equity attributable to Plank Ventures Ltd. | $ | 178,615 |
$ | 6,049,329 |
$ | (1,143,029) |
$ | 4,727,685 |
| Loss for theperiod | $ | (1,300,539) |
$ | (7,171,253) |
$ | (1,300,539) |
$ | (7,171,253) |
Three Months Ended October 31, 2020 and 2019
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Amended and Restated Management’s Discussion and Analysis
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Unaudited Interim Consolidated Statements of Cash Flows
| As Previously | ||||
|---|---|---|---|---|
| As Amended | Reported | |||
| Three months | Three months | |||
| ended | ended | |||
| **October 31, 2020 ** | October 31, 2020 | |||
| Operating activities | ||||
| Net loss from continuting operations | $ | (1,300,539) |
$ | (7,171,253) |
| Debt cancellation and forgiveness | - | 6,543,410 | ||
| Loss on disposal of Plank Ventures Ltd. | 1,209,217 | - | ||
| Net cash used in operating activities of continuing operations | (103,187) | (639,708) | ||
| Investing activities | ||||
| Loss on disposal of investment | - | 536,521 | ||
| Net cashprovided byinvestingactivities | $ | 211,427 |
$ | 747,948 |
Three Months Ended October 31, 2020 and 2019
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