Opsens Inc. — Interim / Quarterly Report 2021

Jul 13, 2021

Condensed Consolidated Interim Financial Statements

OpSens Inc.

Nine-month periods ended May 31, 2021 and 2020 (unaudited)

Nine-month periods ended May 31, 2021 and 2020

OpSens Inc.

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)

(in Canadian dollars) (unaudited)

	Three-month periods ended May 31, Nine-month periods ended May 31,
	2021 2020 2021 2020
Revenues Sales Other	$ $ $ $ 9,213,407 6,630,417 26,342,284 21,877,069 19,486 - 56,128 -
Cost ofsales	9,232,893 6,630,417 26,398,412 21,877,069 3,809,205 2,986,168 11,733,794 10,074,501
Grossmargin	5,423,688 3,644,249 14,664,618 11,802,568
Operating expenses Administrative Sales and marketing Research and development	1,722,170 1,301,629 4,678,943 4,024,852 2,315,852 1,637,025 5,458,226 7,321,827 1,590,244 1,410,817 4,170,110 4,129,522
Other income Financial expenses	5,628,266 4,349,471 14,307,279 15,476,201 (121,097 ) (800,754 ) (721,401 ) (800,754 ) 470,883 43,917 979,502 328,437
Income (loss) before income taxes	(554,364 ) 51,615 99,238 (3,201,316 )
Current income taxes expense	16,110 - 34,814 -
Net income(loss)	(570,474) 51,615 64,424 (3,201,316)
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)	14,018 - 14,377 -
Comprehensive income(loss)	(556,456) 51,615 78,801 (3,201,316)
Basic and diluted net earnings (loss) per share(Note 6)	(0.01) 0.00 0.00 (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 Nine-month period ended May 31, 2021

(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	26,624,000	-	-	-	26,624,000
Common shares issued pursuant to the stock
option plan (Note 5a)	563,000	867,602	(263,739 )	-	-	603,863
Stock-based compensation costs	-	-	329,163	-	-	329,163
Other comprehensive income – Net changes in
unrealized gain on translation of foreign
operations (Note 2)	-	-	-	14,377	-	14,377
Net income	-	-	-	-	64,424	64,424
Balance as at May 31, 2021	106,815,539	82,259,971	3,888,938	14,377	(43,180,597 )	42,982,689

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 Nine-month period ended May 31, 2020

(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 - - - - 359,510 - 359,510 - - - - - (3,201,316) (3,201,316)

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

3

OpSens Inc.

Condensed Consolidated Interim Statements of Financial Position

(in Canadian dollars) (unaudited)

	As at	As at
	May 31,	August 31,
	2021	2020
	$	$
Assets
Current
Cash and cash equivalents (Note 7)	38,778,079	10,884,019
Trade and other receivables	5,364,055	4,041,080
Government assistance receivable	40,000	428,601
Tax credits receivables	60,581	105,677
Inventories	6,162,556	6,505,094
Prepaid expenses	684,300	578,893
	51,089,571	22,543,364
Property, plant and equipment	2,928,569	3,229,787
Intangible assets	1,680,203	1,622,310
Right-of-use assets (Note4)	4,481,132	4,512,978
	60,179,475	31,908,439
Liabilities
Current
Accounts payable and accrued liabilities	4,130,418	3,545,323
Warranty provision (Note 8)	81,732	153,138
Deferred revenues	71,472	48,951
Current income taxes payable	22,948	-
Current portion of long-term debt (Note 3)	2,747,745	1,460,654
Current portionof leaseliabilities (Note4)	513,636	447,169
	7,567,951	5,655,235
Long-term debt (Note 3)	5,305,129	6,607,911
Leaseliabilities (Note4)	4,323,706	4,298,431
	17,196,786	16,561,577
Shareholders’ equity
Share capital (Note 5a)	82,259,971	54,768,369
Reserve – Stock option plan (Note 5b)	3,888,938	3,823,514
Accumulated other comprehensive income (Note 2)	14,377	-
Deficit	(43,180,597)	(43,245,021	)
	42,982,689	15,346,862
	60,179,475	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

(in Canadian dollars) (unaudited)

	Three-month periods ended May 31, 2021 2020	Nine-month periods ended May 31,
		2021 2020
$ $ Operating activities Net income (loss) for the period (570,474 ) 51,615 Adjustments for: Depreciation of property, plant and equipment and right-of-use assets 396,794 395,526 Amortisation of intangible assets 59,561 48,026 Loss on disposal of property, plant and equipment 80,868 12,188 Stock-based compensation costs 160,896 96,472 Interest expense 164,485 172,962 Unrealized foreign exchange loss (gain) 118,216 (36,307 ) Changesin non-cashoperatingworking capital items (Note7) 426,095 (1,022,851)		$ $ 64,424 (3,201,316 ) 1,157,591 1,161,585 169,577 95,763 146,383 14,566 329,163 359,510 453,913 430,204 187,384 (52,694 ) (56,301 ) (1,742,345 )
836,441 (282,369 )		2,452,134 (2,934,727)
Investing activities Acquisition of property, plant and equipment (281,173 ) (154,597 ) Additions to intangible assets (14,202 ) (209,352 ) Interestreceived 32,361 13,246		(589,748 ) (706,369 ) (219,629 ) (525,036 ) 52,391 134,588
(263,014) (350,703 )		(756,986 ) (1,096,817)
Financing activities Increase in long-term debt, net of transaction costs - - Reimbursement of long-term debt (694,293 ) (133,510 ) Payment of lease liabilities (98,729 ) (102,255 ) Proceeds from issuance of shares (Note 5a) 206,113 - Transaction costs attributable to the issuance of common shares (Note 5a) (229,717 ) - Interest paid (187,921) (174,451)		842,180 244,206 (886,881 ) (348,180 ) (334,656 ) (315,500 ) 29,353,863 34,797 (2,126,000 ) - (477,296 ) (521,871)
(1,004,547) (410,216 )		26,371,210 (906,548 )
Effect of foreign exchange rate changes on cash and cash equivalents (103,489 ) 36,307		(172,298 ) 52,694
Increase (decrease) in cash and cash equivalents (534,609 ) (1,006,981 ) Cashand cashequivalents– Beginning ofperiod 39,312,688 10,977,565		27,894,060 (4,885,398 ) 10,884,019 14,855,982
Cash and cash equivalents – End ofperiod 38,778,079 9,970,584		38,778,079 9,970,584

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 Nine-month periods ended May 31, 2021 and 2020

(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 Diastolic Pressure Ratio (dPR) in the coronary artery disease 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 disease. 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

OpSens Inc. Notes to the Condensed Consolidated Interim Financial Statements Nine-month periods ended May 31, 2021 and 2020

(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 Nine-month periods ended May 31, 2021 and 2020

(in Canadian dollars) (unaudited)

3. Long-term Debt

Long-term Debt
	As at	As at
	May 31,	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	-	30,000
Imputedinterest	-	(400 )
	-	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	126,674	143,339
Imputedinterest	(13,654 )	(20,513 )
	113,020	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.	67,348	107,624
Amounts to be carried forward	180,368	316,286

8

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Nine-month periods ended May 31, 2021 and 2020

(in Canadian dollars) (unaudited)

3. Long-term Debt (continued)

	As at	As at
	May 31,	August 31,
	2021	2020
	$	$
Amounts carried over	180,368	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.	6,382,468	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.	**401,991 **	245,704
Term loan bearing interest at 6.66% payable in 111 monthly instalments of
$8,070,maturinginSeptember 2025.	488,047	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 October
2024 without principal payment for a 9-month period following the receipt
of the loan in February 2021. The principal is payable in 36 monthly
instalments of $16,667.	600,000	-
	8,052,874	8,068,565
Current portion	2,747,745	1,460,654
	5,305,129	6,607,911

4. Leases

On February 15, 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 assets. Moreover, during the three-month period ended May 31, 2021, the carrying amount of the lease liabilities and the right-of-use assets has been decreased by an amount of $107,183 due to the remeasurement of the lease liabilities.

9

OpSens Inc. Notes to the Condensed Consolidated Interim Financial Statements Nine-month periods ended May 31, 2021 and 2020

(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 $401,000 for total transactions costs of $2,126,000.

During the nine-month period ended May 31, 2021, following the exercise of stock options, the Company issued 563,000 common shares (48,851 common shares for the nine-month period ended May 31, 2020) for a cash consideration of $603,863 ($34,797 for the nine-month period ended May 31, 2020). As a result, an amount of $263,739 was reallocated from Reserve – Stock option plan to Share capital in shareholders’ equity ($24,171 for the nine-month period ended May 31, 2020). Also, no subscribed common shares have been issued (51,149 subscribed common shares for the nine-month period ended May 31, 2020).

b) Stock Options

The changes in the number of stock options granted by the Company and their weighted-average exercise prices, for the nine-month periods ended May 31, 2021 and 2020, are as follows:

	Nine-month period ended May 31, 2021 Weighted average exercise price Number of options	Nine-month period ended May 31, 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 1,582,500 1.42 (563,000 ) 1.07 (299,375 ) 1.20 (345,375 ) **0.99 **	$ 7,004,000 1.04 1,175,000 0.75 (100,000 ) 0.72 (242,875 ) 0.80 (1,150,375 ) 0.93
Balance – End ofperiod	6,971,125 1.09	6,685,750 1.02

10

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Nine-month periods ended May 31, 2021 and 2020

(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	Nine-month period ended May 31, 2021 Nine-month period ended May 31, 2020 Between 0.17% and 0.76% Between 0.45% and 1.67% Between 55.81% and 71.82% Between 46.43% and 64.05% Nil Nil 0 to 5 years 0 to 5 years $1.42 $0.75 $0.61 $0.27

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 Nine-month periods ended May 31, 2021 and 2020 (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 May 31, 2021 2020	Nine-month periods ended May 31,
		2021 2020
Net income (loss) attributable to shareholders Basic and diluted	$ $ (570,474 ) 51,615	$ $ 64,424 (3,201,316
Number of shares Basic weighted average number of shares outstanding Diluted weighted average number of shares outstanding	106,707,339 90,280,317 106,707,339 90,326,453	96,056,488 90,275,572 97,997,192 90,275,572
Amount per share Basic and diluted net earnings (loss) per share	(0.01) 0.00	0.00 (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 May 31, 2021 2020	Nine-month periods ended May 31,
		2021 2020
Stock options	- 6,233,875	1,884,750 5,708,252

For the three-month period ended May 31, 2021, 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. For the three-month period ended May 31, 2020, the dilutive effect is about 46,136 units for stock options for which their exercise price is lesser than the average market price of common shares.

For the nine-month period ended May 31, 2021, the dilutive effect is about 1,940,704 units for stock options for which their exercise price is lesser than the average market price of common shares. For the nine-month period ended May 31, 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 Nine-month periods ended May 31, 2021 and 2020

(in Canadian dollars) (unaudited)

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

	Three-month periods ended May 31, 2021 2020	Nine-month periods ended May 31,
		2021 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	$ $ (117,774 ) 776,186 65,000 (800,754 ) 81,202 292,024 (337,863 ) (1,456,481 ) (65,513 ) 9,286 789,701 208,759 6,488 (32,014 ) (4,609 ) (19,857 ) 9,463 -	$ $ (1,322,975 ) 819,659 388,601 (800,754 ) 45,096 207,866 342,538 (1,058,552 ) (105,407 ) (270,592 ) 621,783 (612,161 ) (71,406 ) (27,811 ) 22,521 - 22,948 -
	426,095 (1,022,851)	(56,301) (1,742,345)
Supplementary information Unpaid acquisition of property, plant and equipment Unpaid additions to intangible assets	38,976 18,951 37,308 52,304	38,976 18,951 37,308 52,304
		As at May 31, 2021 As at August 31, 2020
Cash and cash equivalents Cash Short-term investments	$ $ 2,960,500 3,251,374 35,817,579 7,632,645
	38,778,079 10,884,019

13

OpSens Inc. Notes to the Condensed Consolidated Interim Financial Statements Nine-month periods ended May 31, 2021 and 2020

(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:
	Nine-monthperiods ended May 31,
	2021 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 56,801 23,500 (46,515 ) - (81,150 ) (51,311 ) (542) -
Balance – End ofperiod	81,732 106,649

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 Nine-month periods ended May 31, 2021 and 2020

(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 disease 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 (income) 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 May 31, 2021 Medical Industrial Total	Three-month period ended May31,2020 Medical Industrial Total $ $ $ 6,124,237 506,180 6,630,417 - 13,643 13,643 3,398,525 245,724 3,644,249 328,139 67,387 395,526 46,127 1,899 48,026 657,094 143,660 800,754 (30,592 ) 74,509 43,917 - - - 103,030 (51,415 ) 51,615 160,733 - 160,733 200,616 27,120 227,736 29,318,370 2,206,203 31,524,573 16,332,401 481,607 16,814,008
	$ $ $ 8,520,376 712,517 9,232,893 36,042 91,726 127,768 4,906,684 517,004 5,423,688 342,323 54,471 396,794 56,371 3,190 59,561 - 121,097 121,097 351,012 119,871 470,883 16,110 - 16,110 (566,769 ) (3,705 ) (570,474 ) 250,720 40,014 290,734 33,423 - 33,423 57,409,323 2,770,152 60,179,475 16,099,694 1,097,092 17,196,786

15

OpSens Inc.

Notes to the Condensed Consolidated Interim Financial Statements Nine-month periods ended May 31, 2021 and 2020

(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	Nine-month period ended May 31, 2021 Medical Industrial Total	Nine-month period ended May31,2020 Medical Industrial Total $ $ $ 19,935,575 1,941,494 21,877,069 - 57,388 57,388 10,638,622 1,163,946 11,802,568 968,052 193,533 1,161,585 86,676 9,087 95,763 657,094 143,660 800,754 94,873 233,564 328,437 - - - (3,110,584 ) (90,732 ) (3,201,316 ) 645,686 28,748 674,434 536,977 35,895 572,872 29,318,370 2,206,203 31,524,573 16,332,401 481,607 16,814,008
	$ $ $ 23,706,840 2,691,572 26,398,412 108,132 179,595 287,727 12,749,308 1,915,310 14,664,618 1,030,331 127,260 1,157,591 161,122 8,455 169,577 445,506 275,895 721,401 653,782 325,720 979,502 34,814 - 34,814 (581,622 ) 646,046 64,424 504,172 41,047 545,219 207,685 19,785 227,470 57,409,323 2,770,152 60,179,475 16,099,694 1,097,092 17,196,786

16

OpSens Inc. Notes to the Condensed Consolidated Interim Financial Statements Nine-month periods ended May 31, 2021 and 2020

(in Canadian dollars) (unaudited)

9. Segmented Information (continued)

Information by geographic segment

	Three-month periods ended May 31, 2021 2020	Nine-month periods ended May 31,
		2021 2020
Revenue by geographic segment United States Japan Canada Other*	$ $ 3,552,305 2,260,691 1,638,755 1,934,165 857,260 559,732 3,184,573 1,875,829	$ $ 9,706,591 8,409,666 5,745,345 5,048,412 2,447,747 1,917,404 8,498,729 6,501,587
	9,232,893 6,630,417	26,398,412 21,877,069

• 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 May 31, 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. 20% and 18% (29% and 22% for the three-month period ended May 31, 2020).

During the nine-month period ended May 31, 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. 22% and 19% (24% and 23% for the nine-month period ended May 31, 2020).

17

OpSens Inc. Notes to the Condensed Consolidated Interim Financial Statements Nine-month periods ended May 31, 2021 and 2020

(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 nine-month periods ended May 31, 2021 and 2020 were as follows:

	Three-month periods ended May 31, 2021 2020	Nine-month periods ended May 31,
		2021 2020
$ $ Short-term salaries and other benefits 320,048 258,416 Option-based awards 65,306 29,736		$ $ 900,897 792,990 108,026 130,844
385,354 288,152		1,008,923 923,834

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 July 12, 2021.

18