Opsens Inc. — Interim / Quarterly Report 2021

Apr 14, 2021

Condensed Consolidated Interim Financial Statements

OpSens Inc.

Six-month periods ended February 28, 2021 and February 29, 2020 (unaudited)

OpSens Inc.

Six-month periods ended February 28, 2021 and February 29, 2020

Table of contents

Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) .................. 1 Condensed Consolidated Interim Statements of Changes in Equity ................................................................. 2-3 Condensed Consolidated Interim Statements of Financial Position ..................................................................... 4 Condensed Consolidated Interim Statements of Cash Flows ............................................................................... 5 Notes to the Condensed Consolidated Interim Financial Statements .............................................................. 6-18

OpSens Inc.

Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)

(amounts are in Canadian dollars) (unaudited)

	Three-month periods ended Six-month periods ended
	February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020
Revenues Sales Other	$ $ $ $ 8,809,968 8,257,751 17,128,877 15,246,652 19,062 - 36,642 -
Cost ofsales	8,829,030 8,257,751 17,165,519 15,246,652 4,260,430 4,009,394 7,924,589 7,088,333
Grossmargin	4,568,600 4,248,357 9,240,930 8,158,319
Operating expenses Administrative Sales and marketing Research and development	1,488,161 1,248,703 2,956,773 2,723,223 1,554,418 2,834,821 3,142,374 5,684,802 1,284,080 1,422,570 2,579,866 2,718,705
Other income Financial expenses	4,326,659 5,506,094 8,679,013 11,126,730 (110,025 ) - (600,304 ) - 292,515 124,285 508,619 284,520
Income (loss) before income taxes	59,451 (1,382,022) 653,602 (3,252,931)
Current income taxes expense	18,704 - 18,704 -
Net income(loss)	40,747 (1,382,022) 634,898 (3,252,931)
Other comprehensive income Items that may be reclassified subsequently to net income (loss) Net changes in unrealized gain on translation of foreign operations (Note 2)	304 - 359 -
Comprehensive income(loss)	41,051 (1,382,022) 635,257 (3,252,931)
Basic and diluted net earnings (loss) per share(Note 6)	0.00 (0.02) 0.01 (0.04)

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

1

OpSens Inc. Condensed Consolidated Interim Statements of Changes in Equity Six-month period ended February 28, 2021

(amounts are in Canadian dollars) (unaudited)

				Accumulated
				other
				comprehensive
				income – Foreign
			Reserve – Stock	operations
	Common shares	Share capital	optionplan	translation	Deficit	Total
	(number)	$	$	$	$	$
Balance as at August 31, 2020	90,280,317	54,768,369	3,823,514	-	(43,245,021 )	15,346,862
Common shares issued in connection with a
public bought deal offering (Note 5a)	15,972,222	26,598,843	-	-	-	26,598,843
Common shares issued pursuant to the stock
option plan (Note 5a)	387,375	579,722	(181,972 )	-	-	397,750
Stock-based compensation costs	-	-	168,267	-	-	168,267
Other comprehensive income – Net changes in
unrealized gain on thanslation of foreign
operations (Note 2)	-	-	-	359	-	359
Net income	-	-	-	-	634,898	634,898
Balance as at February 28, 2021	106,639,914	81,946,934	3,809,809	359	(42,610,123 )	43,146,979

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

2

OpSens Inc. Condensed Consolidated Interim Statements of Changes in Equity Six-month period ended February 29, 2020

(amounts are in Canadian dollars) (unaudited)

	Common shares Total Share capital Reserve – Stock option plan Deficit Total Issued Subscribed
Balance as at August 31, 2019 Impact of adopting IFRS 16 Common shares issued pursuant to the stock option plan (Note 5a) Stock-based compensation costs Net loss and comprehensive loss	(number) (number) (number) $ $ $ $ 90,180,317 51,149 90,231,466 54,709,401 3,409,390 (40,678,055 ) 17,440,736 - - - - - 76,838 76,838 100,000 (51,149 ) 48,851 58,968 (24,171 ) - 34,797 - - - - 263,038 - 263,038 - - - - - (3,252,931) (3,252,931)

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

3

OpSens Inc.

Condensed Consolidated Interim Statements of Financial Position

(amounts are in Canadian dollars) (unaudited)

	As at	As at
	February 28,	August 31,
	2021	2020
	$	$
Assets
Current
Cash and cash equivalents (Note 7)	39,312,688	10,884,019
Trade and other receivables	5,246,281	4,041,080
Government assistance receivable	105,000	428,601
Tax credits receivables	141,783	105,677
Inventories	5,824,693	6,505,094
Prepaid expenses	618,787	578,893
	51,249,232	22,543,364
Property, plant and equipment	2,952,900	3,229,787
Intangible assets	1,706,341	1,622,310
Right-of-use assets (Note4)	4,751,621	4,512,978
	60,660,094	31,908,439
Liabilities
Current
Accounts payable and accrued liabilities	3,566,809	3,545,323
Warranty provision (Note 8)	75,244	153,138
Deferred revenues	76,081	48,951
Current income taxes payable	13,485	-
Current portion of long-term debt (Note 3)	2,857,049	1,460,654
Current portionof leaseliabilities (Note4)	503,503	447,169
	7,092,171	5,655,235
Long-term debt (Note 3)	5,881,192	6,607,911
Leaseliabilities (Note4)	4,539,752	4,298,431
	17,513,115	16,561,577
Shareholders’ equity
Share capital (Note 5a)	81,946,934	54,768,369
Reserve – Stock option plan (Note 5b)	3,809,809	3,823,514
Accumulated other comprehensive income (Note 2)	359	-
Deficit	(42,610,123)	(43,245,021	)
	43,146,979	15,346,862
	60,660,094	31,908,439

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

Approved by the Board

Signed [Jean Lavigueur] , director

Signed [Louis Laflamme] , director

4

OpSens Inc.

Condensed Consolidated Interim Statements of Cash Flows

(amounts are in Canadian dollars) (unaudited)

	Three-month periods ended February 28, 2021 February 29, 2020	Six-month periods ended
		February 28, 2021 February 29, 2020
$ $ Operating activities Net income (loss) for the period 40,747 (1,382,022 ) Adjustments for: Depreciation of property, plant and equipment and right-of-use assets 382,550 385,927 Amortisation of intangible assets 58,498 25,584 Loss on disposal of property, plant and equipment 23,832 57 Stock-based compensation costs 92,988 143,220 Interest expense 158,643 116,243 Unrealized foreign exchange loss (gain) 51,493 (14,132 ) Changesin non-cashoperatingworking capital items (Note7) (497,325 ) (1,316,038 )		$ $ 634,898 (3,252,931 ) 760,797 766,059 110,016 47,737 65,515 2,378 168,267 263,038 289,428 257,242 69,168 (16,387 ) (482,396 ) (719,494)
311,426 (2,041,161)		1,615,693 (2,652,358 )
Investing activities Acquisition of property, plant and equipment (158,592 ) (236,795 ) Additions to intangible assets (94,199 ) (215,858 ) Interestreceived 10,302 55,628		(308,575 ) (551,772 ) (205,427 ) (315,684 ) 20,030 121,342
(242,489 ) (397,025 )		(493,972) (746,114)
Financing activities Increase in long-term debt, net of transaction costs 242,180 - Reimbursement of long-term debt (76,996 ) (95,710 ) Payment of lease liabilities (120,018 ) (108,885 ) Proceeds from issuance of shares (Note 5a) 29,147,750 - Transaction costs attributable to the issuance of common shares (Note 5a) (1,896,283 ) - Interest paid (159,285 ) (156,685 )		842,180 244,206 (192,588 ) (214,670 ) (235,927 ) (213,245 ) 29,147,750 34,797 (1,896,283 ) - (289,375 ) (347,420 )
27,137,348 (361,280 )		27,375,757 (496,332)
Effect of foreign exchange rate changes on cash and cash equivalents (51,189 ) 14,132		(68,809 ) 16,387
Increase (decrease) in cash and cash equivalents 27,155,096 (2,785,334 ) Cashand cashequivalents– Beginning ofperiod 12,157,592 13,762,899		28,428,669 (3,878,417 ) 10,884,019 14,855,982
Cash and cash equivalents – End ofperiod 39,312,688 10,977,565		39,312,688 10,977,565

Additional information on the condensed consolidated interim statements of cash flows is presented in Note 7.

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

5

OpSens Inc. Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

1. Incorporation and Description of Business

OpSens Inc. (OpSens or the Company) is incorporated under the Business Corporations Act (Quebec). OpSens focuses mainly on physiological measurement such as Fractional Flow Reserve (FFR) and dPR in the coronary artery stenosis market and also supplies a wide range of miniature optical sensors to measure pressure and temperature to be used in a wide range of applications that can be integrated in other medical devices. OpSens offers an advanced optical-based pressure guidewire (OptoWire) that aims at improving the clinical outcome of patients with coronary artery stenosis. OpSens is also involved in industrial activities through its wholly-owned subsidiary OpSens Solutions Inc. (Solutions). Solutions develops, manufactures and installs innovative fibre optic sensing solutions for critical and demanding industrial applications. The Company’s head office is located at 750, du Parc-Technologique Blvd., Quebec City, Quebec, Canada, G1P 4S3.

2. Basis of Preparation

Statement of Compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB) applicable to the preparation of interim financial statements, including International Accounting Standards (IAS) 34, Interim Financial Reporting and using the same accounting policies and methods of computation as the most recent annual financial statements, except for the changes in accounting policies described below. These condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended August 31, 2020, which have been prepared in accordance with IFRS as issued by the IASB.

Assessment of COVID-19 Impact

Because of the economic and business uncertainties caused by the spread of COVID-19 virus, the Company reviewed all the critical accounting estimates, assumptions and judgements that are made by management during the preparation of the condensed consolidated interim financial statements. No significant change is necessary following this review for these condensed consolidated interim financial statements in comparison with the consolidated financial statements for the year ended August 31, 2020. However, because of the uncertain and evolving situation associated with the spread of COVID-19, new information could emerge after the approval date of the condensed consolidated interim financial statements. This could lead to the necessity for the Company to review the critical accounting estimates, assumptions and judgements prospectively over the next periods. Management continues to monitor and evaluate the situation and its impact on the Company’s activities.

Thus far, the Company has had no manufacturing, supply chain, or distribution disruptions caused by the spread of COVID-19 virus. However, it is not possible to reliably estimate the length, severity and long-term impact the global pandemic may have on the Company's financial results, business conditions and cash flows because of the uncertainties about future developments.

Changes in Accounting Policies

The accounting policies and basis of measurement applied in these condensed consolidated interim financial statements are the same as those applied by the Company in its consolidated financial statements for the year ended August 31, 2020, except as disclosed below.

6

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

OpSens Inc.

(amounts are in Canadian dollars) (unaudited)

2. Basis of Preparation (continued)

Changes in Accounting Policies (continued)

Basis of Consolidation

The condensed consolidated interim financial statements include the accounts of the Company and those of its wholly-owned subsidiaries. All intra-group transactions, balances, revenues and expenses are fully eliminated upon consolidation until they are realized with a third party.

Foreign Operations

Each subsidiary determines its own functional currency. The items included in its financial statements are therefore measured in this functional currency. For entities that have a functional currency that differs from the Company, their financial statements are translated in Canadian dollar as follows: assets and liabilities are translated at the end-of-period exchange rate and revenues and expenses are translated at the monthly average exchange rates in effect during the period. If exchange rates fluctuate significantly, revenues and expenses are instead translated using the exchange rates at the dates of the transactions. All resulting exchange differences are recognised in other comprehensive income as Net changes in unrealized gain on translation of foreign operations .

7

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

3. Long-term Debt

Long-term Debt
	As at	As at
	February 28,	August 31,
	2021	2020
	$	$
Contributions repayable to Canada Economic Development (CED), without
interest (effective rate of 13.50%), repayable in 20 equal and consecutive
quarterly instalments of $15,000, maturing in April 2021 without payment
from April to December 2020 inclusive due to a nine-month moratorium.
Debt balance	15,000	30,000
Imputedinterest	(51 )	(400 )
	14,949	29,600
Contributions repayable to Canada Economic Development (CED), without
interest (effective rate of 12.00%), repayable in 59 equal and consecutive
monthly instalments of $3,333 and a final payment of $3,353, maturing in
July 2024 without payment from April to December 2020 inclusive due to
a nine-month moratorium.
Debt balance	136,673	143,339
Imputedinterest	(15,837 )	(20,513 )
	120,836	122,826
Term loan, bearing interest at prime rate plus 0.25%, secured by a movable
hypothec on the universality of the Company’s present and future
property, plant and equipment and intangible assets, payable in 48
monthly instalments of $18,750, maturing in November 2020 without
principal payment from March to August 2020 inclusive due to a six-month
moratorium. Amountsreceived arenet oftransactioncosts of$9,000.	-	56,236
Term loan, bearing interest at prime rate plus 0.25%, secured by a movable
hypothec on the universality of the Company’s present and future
property, plant and equipment and intangible assets, payable in 48
monthly instalments of $4,500, maturing in August 2022 without principal
payment from March to August 2020 inclusive due to a six-month
moratorium. Amountsreceived arenet oftransactioncosts of$2,160.	**85,284 **	107,624
Amounts to be carried forward	221,069	316,286

8

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

3. Long-term Debt (continued)

	As at	As at
	February 28,	August 31,
	2021	2020
	$	$
Amounts carried over	221,069	316,286
Term loan, bearing interest at prime rate plus 2.00%, secured by a movable
hypothec on the universality of the Company’s present and future
property, plant and equipment and intangible assets, maturing in
February 2024 without principal payment for a 24-month period following
the signature of an agreement in March 2019. The principal is payable in
36 monthly instalments of $194,444. Amounts received are net of
transactioncosts of$87,468.	6,959,639	6,947,412
Term loan, bearing interest at prime rate plus 0.25%, secured by a movable
hypothec on the universality of the Company’s present and future
property, plant and equipment and intangible assets, maturing in June
2024 without principal payment for a 12-month period following the receipt
of the first tranche of the loan in October 2019. The second and last
tranche of the loan for $242,180 has been received in January 2021. The
principal is payable in 44 monthly instalments of $10,938 and a final
payment of $10,386. Amounts received are net of transaction costs of
$5,250.	445,385	245,704
Term loan bearing interest at 6.66% payable in 111 monthly instalments of
$8,070,maturinginSeptember 2025.	512,148	559,163
Term loan, bearing interest at prime rate plus 1.00%, secured by a movable
hypothec on the universality of the Company’s present and future
property, plant and equipment and intangible assets, maturing in
February 2024 without principal payment for a 12-month period following
the signature of an agreement in March 2020. The principal is payable in
36 monthly instalments of $16,668.	600,000	-
	8,738,241	8,068,565
Current portion	2,857,049	1,460,654
	5,881,192	6,607,911

4. Leases

During the three-month period ended February 28, 2021, the Company signed an amendment to a lease for a building to extend the lease term by three years. At the remeasurement date of the lease liability, the Company used the present value of the remaining lease payments on a discounted basis, using its incremental borrowing rate, which was 3.45%. The amount of the remeasurement of the lease liability of $533,583 has been recognised as an adjustment to the right-of-use asset.

9

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

OpSens Inc.

(amounts are in Canadian dollars) (unaudited)

5. Shareholders’ equity

a) Share Capital

On February 25, 2021, the Company completed a public bought deal offering for aggregate gross proceeds of $28,750,000. In connection with the offering, the Company issued a total of 15,972,222 common shares at a price of $1.80 per common share.

Transaction costs of the offering include underwriting fees of $1,725,000 and other professional fees and miscellaneous fees of $426,157 for total transactions costs of $2,151,157 of which $1,896,283 have been paid and $254,874 are included in Accounts payable and accrued liabilities .

During the six-month period ended February 28, 2021, following the exercise of stock options, the Company issued 387,375 common shares (48,851 common shares for the six-month period ended February 29, 2020) for a cash consideration of $397,750 ($34,797 for the six-month period ended February 29, 2020). As a result, an amount of $181,972 was reallocated from Reserve – Stock option plan to Share capital in shareholders’ equity ($24,171 for the six-month period ended February 29, 2020). Also, no subscribed common shares have been issued (51,149 subscribed common shares for the six-month period ended February 29, 2020).

b) Stock Options

The changes in the number of stock options granted by the Company and their weighted-average exercise prices, for the six-month periods ended February 28, 2021 and February 29, 2020, are as follows:

	Six-month period ended February 28, 2021 Weighted average exercise price Number of options	Six-month period ended February 29, 2020
		Weighted average exercise price Number of options
Balance – Beginning of year Options granted Options exercised Options expired Options cancelled	$ 6,596,375 1.01 936,250 1.23 (387,375 ) 1.03 (298,125 ) 1.20 (149,750 ) **0.89 **	$ 7,004,000 1.04 722,500 0.87 (100,000 ) 0.72 (176,250 ) 0.76 (238,375 ) 0.91
Balance – End ofperiod	6,697,375 1.03	7,211,875 1.04

10

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

5. Shareholders’ equity (continued)

b) Stock Options (continued)

The fair value of the options granted issued was estimated using the Black-Scholes option pricing model using the following assumptions:

Risk-free interest rate Volatility Dividend yield on shares Expected life Weighted share price Weighted fair value per option at the grant date	Six-month period ended February 28, 2021 Six-month period ended February 29, 2020 Between 0.17% and 0.39% Between 1.55% and 1.67% Between 55.81% and 67.11% Between 46.43% and 50.02% Nil Nil 0 to 5 years 0 to 5 years $1.19 $0.87 $0.50 $0.29

In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Any changes in the subjective input assumptions can affect the fair value estimate.

11

OpSens Inc. Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020 (amounts are in Canadian dollars) (unaudited)

6. Net Earnings (Loss) per Share

The table below presents a reconciliation between the basic net earnings (loss) and the diluted net earnings (loss) per share:

	Three-month periods ended February 28, 2021 February 29, 2020	Six-month periods ended
		February 28, 2021 February 29, 2020
Net income (loss) attributable to shareholders Basic and diluted	$ $ 40,747 (1,382,022 )	$ $ 634,898 (3,252,931
Number of shares Basic weighted average number of shares outstanding Diluted weighted average number of shares outstanding	91,009,302 90,280,317 93,411,997 90,280,317	90,642,796 90,273,174 91,992,041 90,273,174
Amount per share Basic and diluted net earnings (loss) per share	0.00 (0.02)	0.01 (0.04

Stock options are excluded from the calculation of the diluted weighted average number of shares outstanding when their exercise price is greater than the average market price of common shares or when their effect is antidilutive. The number of stock options excluded from the calculation because their exercise price is greater than the average market price of common shares is presented below:

	Three-month periods ended February 28, 2021 February 29, 2020	Six-month periods ended
		February 28, 2021 February 29, 2020
Stockoptions	782,250 4,769,565	2,061,250 4,328,080

For the three-month period ended February 28, 2021, the dilutive effect is about 2,402,695 units for stock options for which their exercise price is lesser than the average market price of common shares. For the six-month period ended February 28, 2021, the dilutive effect is about 1,349,245 units for stock options for which their exercise price is lesser than the average market price of common shares. For the three-month and the six-month periods ended February 29, 2020, the diluted amount per share was the same amount as the basic amount per share, since the dilutive effect of stock options was not included in the calculation; otherwise, the effect would have been antidilutive. Accordingly, the diluted amount per share for these periods was calculated using the basic weighted average number of shares outstanding.

12

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

7. Additional Information on the Condensed Consolidated Interim Statements of Cash Flows

	Three-monthperiods ended February 28, 2021 February 29, 2020	Six-monthperiods ended
		February 28, 2021 February 29, 2020
Changes in non-cash operating working capital items Trade and other receivables Government assistance receivable Tax credits receivable Inventories Prepaid expenses Accounts payable and accrued liabilities Warranty provision Deferred revenues Current income taxespayable	$ $ (1,468,980 ) (1,121,474 ) 335,481 - (24,501 ) (59,292 ) 1,164,164 665,017 101,710 (468,444 ) (545,339 ) (342,867 ) (62,471 ) 600 (10,874 ) 10,422 13,485 -	$ $ (1,205,201 ) 43,473 323,601 - (36,106 ) (84,158 ) 680,401 397,929 (39,894 ) (279,878 ) (167,918 ) (820,920 ) (77,894 ) 4,203 27,130 19,857 13,485 -
	(497,325) (1,316,038)	(482,396) (719,494)
Supplementary information Unpaid acquisition of property, plant and equipment Unpaid additions to intangible assets Unpaid transaction costs attributable to the issuance of common shares	29,415 12,815 18,087 33,920 254,874 -	29,415 12,815 18,087 33,920 254,874 -
	As at February 28, 2021 As at August 31, 2020
Cash and cash equivalents Cash Short-term investments	$ $ 30,421,473 3,251,374 8,891,215 7,632,645
	39,312,688 10,884,019

13

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

8. Warranty provision

During the normal course of business, the Company replaces defective parts under warranty provision offered at the sale of the products. The term of the warranty is generally 12 months. The following table summarizes changes in warranty provision:

changes in warranty provision:
	Six-monthperiods ended
	February 28, 2021 February 29, 2020
Balance – Beginning of year Additional provision recognized Unused amount reversed during the period Amount used during the period Effect of foreignexchange differences	$ $ 153,138 134,460 18,943 46,500 (46,515 ) - (50,053 ) (42,297 ) (269 ) -
Balance – End ofperiod	75,244 138,663

This provision estimate is based on past experience. The actual costs that the Company may incur, as well as the moment when the parts should be replaced, can differ from the estimated amount.

14

OpSens Inc. Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

9. Segmented Information

Segmented Information

The Company is organized into two segments: Medical and Industrial.

Medical segment: in this segment, OpSens focuses mainly on physiological measurement such as FFR and dPR in the coronary artery stenosis market and also supplies a wide range of miniature optical sensors to measure pressure and temperature to be used in a wide range of applications that can be integrated in other medical devices. This also includes other revenues related to its optical sensor technology.

Industrial segment: in this segment, OpSens develops, manufactures and installs innovative fibre optic sensing solutions for critical and demanding industrial applications.

The principal factors employed in the identification of the two segments reflected in this note include the Company’s organizational structure, the nature of the reporting lines to the President and Chief Executive Officer and the structure of internal reporting documentation such as management accounts and budgets.

The same accounting policies are used for both reportable segments. Operations are carried out in the normal course of business and are measured at the exchange amount, which approximates prevailing prices in the markets.

External sales Internal sales Gross margin Depreciation of property, plant and equipment and right-of-use assets Amortisation of intangible assets Other income Financial expenses Current income taxes expense Net income (loss) Acquisition of property, plant and equipment Additions to intangible assets Segment assets Segment liabilities	Three-month period ended February 28, 2021 Medical Industrial Total	Three-month period ended February29,2020 Medical Industrial Total $ $ $ 7,350,170 907,581 8,257,751 - 21,656 21,656 3,599,469 648,888 4,248,357 324,349 61,578 385,927 22,373 3,211 25,584 - - - 49,317 74,968 124,285 - - - (1,542,300 ) 160,278 (1,382,022 ) 192,640 4,657 197,297 192,410 8,775 201,185 29,183,336 2,235,750 31,419,086 16,319,764 536,844 16,856,608
	$ $ $ 7,850,048 978,982 8,829,030 38,617 54,802 93,419 3,838,756 729,844 4,568,600 344,356 38,194 382,550 55,756 2,742 58,498 5,025 105,000 110,025 181,171 111,344 292,515 18,704 - 18,704 (364,354 ) 405,101 40,747 159,982 1,033 161,015 68,063 14,856 82,919 57,058,635 3,601,459 60,660,094 16,550,481 962,634 17,513,115

15

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

9. Segmented Information (continued)

External sales Internal sales Gross margin Depreciation of property, plant and equipment and right-of-use assets Amortisation of intangible assets Other income Financial expenses Current income taxes expense Net income (loss) Acquisition of property, plant and equipment Additions to intangible assets Segment assets Segment liabilities	Six-month period ended February 28, 2021 Medical Industrial Total	Six-month period ended February29,2020 Medical Industrial Total $ $ $ 13,811,338 1,435,314 15,246,652 - 43,745 43,745 7,240,097 918,222 8,158,319 639,913 126,146 766,059 40,549 7,188 47,737 - - - 125,465 159,055 284,520 - - - (3,213,614 ) (39,317 ) (3,252,931 ) 484,953 28,748 513,701 336,361 8,775 345,136 29,183,336 2,235,750 31,419,086 16,319,764 536,844 16,856,608
	$ $ $ 15,186,464 1,979,055 17,165,519 72,090 87,869 159,959 7,842,624 1,398,306 9,240,930 688,008 72,789 760,797 104,751 5,265 110,016 445,506 154,798 600,304 302,770 205,849 508,619 18,704 - 18,704 (14,853 ) 649,751 634,898 253,452 1,033 254,485 174,262 19,785 194,047 57,058,635 3,601,459 60,660,094 16,550,481 962,634 17,513,115

16

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

9. Segmented Information (continued)

Information by geographic segment

	Three-month periods ended February 28, 2021 February 29, 2020	Six-month periods ended
		February 28, 2021 February 29, 2020
Revenue by geographic segment United States Japan Canada Other*	$ $ 2,954,743 3,149,684 2,386,871 1,820,513 886,421 707,722 2,600,995 2,579,832	$ $ 6,154,286 6,148,975 4,106,590 3,114,247 1,590,487 1,357,672 5,314,156 4,625,758
	8,829,030 8,257,751	17,165,519 15,246,652

• Comprised of revenues generated in countries for which amounts are individually not significant.

Revenues are attributed to the geographic segment based on the clients’ location. Non-current assets, which include property, plant and equipment, intangible assets and right-of-use assets, are mainly located in Canada. Non-current assets located in other countries are not significant.

During the three-month period ended February 28, 2021, revenues from two clients from the Medical’s reportable segment represented individually more than 10% of the total revenues of the Company, i.e. 27% and 17% (23% and 22% for the three-month period ended February 29, 2020).

During the six-month period ended February 28, 2021, revenues from two clients from the Medical’s reportable segment represented individually more than 10% of the total revenues of the Company, i.e. 24% and 19% (24% and 20% for the six-month period ended February 29, 2020).

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OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Six-month periods ended February 28, 2021 and February 29, 2020

(amounts are in Canadian dollars) (unaudited)

10. Related Party Transactions

Key management personnel, having authority and responsibility for planning, directing and controlling the activities of the Company, comprise the Executive Chairman, the Chief Executive Officer, the Chief Financial Officer and the President of OpSens Solutions Inc. Compensation of key management personnel and directors during the three-month and the six-month periods ended February 28, 2021 and February 29, 2020 were as follows:

	Three-month periods ended February 28, 2021 February 29, 2020	Six-month periods ended
		February 28, 2021 February 29, 2020
$ $ Short-term salaries and other benefits 295,140 267,089 Option-based awards 21,144 65,440		$ $ 580,849 534,574 42,720 101,108
316,284 332,529		623,569 635,682

The compensation of key executives is determined by the Human Resources and Compensation Committee, taking into consideration individual performance and market trends.

11. Approval of Condensed Consolidated Interim Financial Statements

The condensed consolidated interim financial statements were approved by the Board of Directors and authorized for issue on April 13, 2021.

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