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World Blockchain Corp. — Management Reports 2025
May 30, 2025
46991_rns_2025-05-30_757c3a2e-7322-41d8-a3d0-9a590a9df85a.pdf
Management Reports
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CASCADIA BLOCKCHAIN GROUP CORP.
(the "Company")
MANAGEMENT DISCUSSION AND ANALYSIS
For the Year Ended January 31, 2025
The following Management Discussion and Analysis ("MD&A") has been prepared by management as of May 30, 2025, should be read in conjunction with the audited consolidated financial statements and related notes of the Company for the year ended January 31, 2025 and 2024. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). All amounts are stated in Canadian dollars unless otherwise indicated.
FORWARD LOOKING STATEMENTS
This MD&A contains certain forward-looking information and statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions as at the date of this MD&A. The words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "interprets", "may", "will" and similar expressions identify forward-looking statements. The forward-looking statements reflect the current beliefs of the management of the Company, and are based on currently available information. Readers are cautioned not to place undue reliance on these statements as they are subject to known and unknown risks, uncertainties and other factors, which could cause the actual results, performance, or achievements of the Company to differ materially from those expressed in, or implied by, such forward-looking statements. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
THIS MD&A CONTAINS THE FOLLOWING SECTIONS:
OVERVIEW ... 2
SELECTED ANNUAL FINANCIAL INFORMATION ... 3
DISCUSSION OF OPERATIONS ... 3
SUMMARY OF QUARTERLY RESULTS ... 6
LIQUIDITY AND CAPITAL RESOURCES ... 6
GOING CONCERN ... 6
OFF-BALANCE SHEET ARRANGEMENTS ... 7
RELATED PARTY TRANSACTIONS ... 7
DIRECTORS AND OFFICERS ... 7
OUTSTANDING SHARE DATA AS AT JANUARY 31, 2025 AND MAY 30, 2025 ... 7
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS ... 7
FINANCIAL INSTRUMENTS ... 8
APPROVAL ... 9
ADDITIONAL INFORMATION ... 9
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CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
OVERVIEW
Cascadia Blockchain Group Corp. (the "Company" or "Cascadia") was incorporated on November 10, 2011 under the laws of British Columbia, Canada. Cascadia is a blockchain technology company operating in Vancouver, B.C., Canada. Its registered office is located at #530, 355 Burrard Street, Vancouver, British Columbia V6C 2G8. In September 2013, the Company was approved for listing on the Canadian Securities Exchange ("CSE"). The Company's common shares commenced trading on the CSE at the opening of markets on September 12, 2013 under the symbol "CK".
On December 20, 2017, the Company proposed a fundamental change of business to a blockchain company and a change of its name from Cascadia Consumer Electronics Corp. to Cascadia Blockchain Group Corp. The proposed change of business and change of name were approved by the CSE on September 7, 2018. The corresponding listing statement was filed on both the CSE and SEDAR websites.
Subsidiaries
- Tianjin Bocui Technology Limited
The Company incorporated a Wholly Foreign Owned Enterprise ("WFOE") in China, named "Tianjin Bocui Technology Limited" ("Bocui"), on October 9, 2015. WFOE structures offer foreign companies greater operational control in mainland China and can help streamline business activities compared to partnerships with domestic joint venture entities. Bocui supported Cascadia's initial development of a blockchain-based authentication platform for non-fungible tokens ("NFTs").
- CK Fintech Corp.
"CK Fintech Corp." ("CK Fintech") is a wholly owned subsidiary incorporated on December 22, 2015. CK Fintech owns the intellectual property of a trading platform to provide various transaction capabilities for selected blockchain technology based digital assets, utility tokens, and cryptocurrencies. CK Fintech is currently inactive.
- CK Blockchain Lab Corp.
The Company incorporated a wholly owned subsidiary "CK Blockchain Lab Corp." to research and develop blockchain products on September 28, 2017. CK Fintech is currently inactive.
The detail structure of the Company as at January 31, 2025 is as follows:
| Cascadia Blockchain Group Corp. (Canadian) | ||
|---|---|---|
| 100% | 100% | 100% |
| Bocui (WFOE in China) | CK Fintech (Canadian) | CK BlockChain Lab (Canadian) |
The presentation and functional currency of the Company is the Canadian dollar. The functional currency of its subsidiaries is also the Canadian dollar except for Tianjin Bocui Technology Ltd. ("Bocui") which is the Chinese Renminbi ("RMB").
CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
SELECTED ANNUAL FINANCIAL INFORMATION
Certain of the following financial information of Cascadia has been derived from, and should be read in conjunction with, the audited consolidated financial statements for the years ended January 31, 2025 and 2024, and the related notes.
| Years Ended January 31 | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| $ | $ | $ | |
| Total revenues | — | — | — |
| Loss from continuing operations attributable to owners of the parent | (808,182) | (382,523) | (944,255) |
| Loss per share from continuing operations | (0.011) | (0.005) | (0.013) |
| Loss attributable to owners of the parent | (808,182) | (382,523) | (944,255) |
| Loss per share – basic and diluted | (0.011) | (0.005) | (0.013) |
| Total assets | 54,979 | 37,630 | 143,710 |
| Non-current financial liabilities | — | — | — |
| Cash dividends declared - per share | — | — | — |
DISCUSSION OF OPERATIONS
During the year ended January 31, 2025, Cascadia collaborated with an IT firm to develop a platform designed to provide authentication services for NFTs and to assist NFT issuers in creating corresponding physical collectible cards linked to the digital tokens. The first phase of development was completed during the year. However, amid a notable decline in market enthusiasm for NFTs and a reduction in investor interest in NFT-related technologies, the Company decided to discontinue the project and redirect resources toward other areas with stronger growth potential and strategic alignment.
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CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
REVIEW OF FINANCIAL RESULTS
Three months ended January 31, 2025 compared to three months ended January 31, 2024
| Three Months Ended January 31, | Variance | ||
|---|---|---|---|
| 2025 | 2024 | $ | |
| EXPENSE | |||
| Consulting and professional fees | $ 61,454 | $ 81,825 | (20,371) |
| Salaries and benefits | 19,537 | 25,952 | (6,415) |
| Listing and transfer agent expenses | 5,999 | 6,768 | (769) |
| Bank charges and interest | 1,405 | 1,444 | (39) |
| Office and miscellaneous | 1,489 | 63 | 1,426 |
| Meals and entertainment | 108 | — | 108 |
| OPERATING LOSS | (89,992) | (116,052) | 26,060 |
| OTHER ITEMS | |||
| Other expenses | (12,807) | — | (12,807) |
| Other income | — | 2 | (2) |
| Gain from repayment of government loan | — | 10,000 | (10,000) |
| Foreign exchange gain (loss) | 87 | (50) | 137 |
| NET LOSS | $ (102,712) | $ (106,100) | 3,388 |
During the three months ended January 31, 2025, the Company reported a net loss of $102,712 (2024: $106,100). The operating loss for the three months ended January 31, 2025 decreased by $3,388 compared to the same period last year. The decrease in net loss was mainly due to the combined result of the following:
- Consulting and professional fees decreased by $20,371 compared to the same period last year, primarily due to reduced expenditures on consultants engaged in the development of the Company's authentication platform for non-fungible tokens (NFTs) in the fourth quarter of the prior fiscal year. The first phase of development was completed at the end of the first quarter of fiscal 2025. During the second and third quarters of fiscal 2025, the Company explored opportunities to develop the NFT market through regional partnerships. However, due to a notable decline in market enthusiasm for NFTs, the Company made the decision in the fourth quarter of fiscal 2025 to discontinue the project and conserve working capital for other strategic initiatives.
- Salaries and benefits decreased by $6,415 compared to the same period last year, primarily due to a reduction in the number of employees at Bocui after the completion of the first phase of development of the NFT platform at the end of the first quarter of fiscal 2025;
- Other expenses increased by $12,807 compared to the same period last year, primarily due to a GST payable liability of $12,326 resulting from a Canada Revenue Agency audit, during which certain Input Tax Credits (ITCs) were disallowed;
- Gain from repayment of government loan decreased for $10,000 compared to the same period last year was due to debt forgiveness by the Canadian government in the amount of $10,000 as a result of repayment of $30,000 on January 18, 2024 towards the Canada Emergency Business Account ("CEBA") Program.
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CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
Year ended January 31, 2025 compared to year ended January 31, 2024
| Years Ended January 31, | Variance | ||
|---|---|---|---|
| 2025 | 2024 | $ | |
| EXPENSE | |||
| Research and development costs | $ 407,162 | $ — | 407,162 |
| Consulting and professional fees | 253,828 | 264,325 | (10,497) |
| Salaries and benefits | 104,884 | 104,914 | (30) |
| Listing and transfer agent expenses | 18,077 | 18,064 | 13 |
| Bank charges and interest | 6,106 | 6,035 | 71 |
| Office and miscellaneous | 4,635 | 2,314 | 2,321 |
| Meals and entertainment | 108 | — | 108 |
| OPERATING LOSS | (794,800) | (395,652) | (399,148) |
| OTHER ITEMS | |||
| Other expenses | (12,807) | — | (12,807) |
| Other income | 972 | 2 | 970 |
| Gain from repayment of government loan | — | 10,000 | (10,000) |
| Foreign exchange (loss) gain | (1,547) | 300 | (1,847) |
| Gain on disposal of cryptocurrency | — | 2,827 | (2,827) |
| NET LOSS | $ (808,182) | $ (382,523) | (425,659) |
During the year ended January 31, 2025, the Company reported a net loss of $808,182 (2024: $382,523). The net loss for the year ended January 31, 2025 increased by $425,659 compared to last year. The increase in net loss is primarily attributed to the combined results of the following,
- Research and development costs increased by $407,162 for the year ended January 31, 2025, compared to $nil in the prior year, as the Company incurred development costs of $407,162 paid to an IT firm for the completion of the first phase of the NFT authentication platform;
- Consulting and professional fees reduced by $10,497 for the year ended of January 31, 2025 compared to last year is due to consultants hired in Bocui for managing the development of the NFTs authentication platform last year;
- Other expenses increased by $12,807 compared to the same period last year, primarily due to a GST payable liability of $12,326 resulting from a Canada Revenue Agency audit, during which certain Input Tax Credits (ITCs) were disallowed;
- Gain from repayment of government loan of $10,000 was due to debt forgiveness by the Canadian government in the amount of $10,000 as a result of repayment of $30,000 on January 18, 2024 towards the Canada Emergency Business Account ("CEBA") Program.
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CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
Cash flows
During the year ended January 31, 2025, the Company used $219,982 in operating activities (year ended January 31, 2024: $127,032). The costs of developing the NFTs authentication platform was paid by cryptocurrency (USDC). Payments of other operating costs such as consulting fees, professional fees and salaries contributed to most of the operating cash outflow for the year ended January 31, 2025.
During year ended January 31, 2025, the Company completed equity financing in the amount of $650,000. The consideration was received in USDC and the Company sold $241,146 worth of USDC for cash.
SUMMARY OF QUARTERLY RESULTS
The following financial information for the Company is derived from the Company's financial statements for the Company's most recent 8 quarters.
| For the Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| Fiscal 2025 | Fiscal 2024 | |||||||
| Jan. 31, 2025 | Oct. 31, 2024 | July 31, 2024 | Apr. 30, 2024 (*) | Jan. 31, 2024 | Oct. 31, 2023 | July 31, 2023 | Apr. 30, 2023 | |
| $ | $ | $ | $ | $ | $ | $ | $ | |
| Income (loss) from continuous operations | (102,712) | (75,912) | (96,357) | (533,201) | (106,100) | (85,643) | (112,336) | (78,444) |
| Earning (loss) | ||||||||
| Per share - basic | (0.001) | (0.001) | (0.001) | (0.006) | (0.001) | (0.001) | (0.002) | (0.001) |
| per share - basic and diluted | (0.001) | (0.001) | (0.001) | (0.006) | (0.001) | (0.001) | (0.002) | (0.001) |
- The significant loss for the three months ended April 30, 2024 was due to developing the NFTs authentication platform.
LIQUIDITY AND CAPITAL RESOURCES
Historically the Company has been successful in raising capital through private placements to finance day-to-day operation and expansion. The Company continually reviews operational results and expenditures to ensure adequate liquidity to support its growth strategy while maintaining the current operation. However, there is no guarantee that the Company will have access to future capital or the ability to generate positive cash flows.
The Company had a working capital deficit of $1,185,308 as at January 31, 2025, compared to the working capital deficit of $1,020,356 as at January 31, 2024.
GOING CONCERN
For the year ended January 31, 2025, the Company incurred a net loss of $808,182 and has an accumulated deficit of $15,424,651 as at January 31, 2025. In May 2025, the Company received a US$50,000 unsecured loan from a director for working capital purpose. The Company's ability to continue as a going concern and to realize assets and discharge its liabilities in the normal course of business is dependent upon its generating profitable operations, obtaining additional financing or maintaining continued support from its shareholders and creditors, and identifying and acquiring other businesses or assets in the future. These factors indicate the existence of material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material.
CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
OFF-BALANCE SHEET ARRANGEMENTS
The Company does not have any off-balance sheet arrangements.
RELATED PARTY TRANSACTIONS
The salaries, consulting fee and benefits compensation of key management personnel of the Company was $252,000 for the year ended January 31, 2025 (2024: $252,000).
Key management includes directors, the Chief Executive Officer ("CEO") and the Chief Financial Officer ("CFO") of the Company.
Included in accounts payable and accrued liabilities were salaries, consulting fee and benefits payable of $987,511 (January 31, 2024 - $814,511), and interest payable of $8,329 (January 31, 2024: $3,329) from a related party loan.
In May 2025, the Company received an unsecured loan from a director of the Company of US$50,000 (C$69,258 equivalent as of the day). The loan is due on demand and bears interest of 10% per annum.
These transactions are in the normal course of operations and are measured at the exchange amount established and agreed to by the related parties.
DIRECTORS AND OFFICERS
Di Deng
Chairman of the Board of Directors, President and Chief Executive Officer
Hanxuan Wu
Director and Chairwoman of Audit Committee
Shanshan Zhu
Director
Eason Chen
Interim Chief Financial Officer (appointed on October 7, 2020)
OUTSTANDING SHARE DATA AS AT JANUARY 31, 2025 AND MAY 30, 2025
As of January 31, 2025 and May 30, 2025, the Company has 95,043,359 outstanding common shares and no outstanding stock option and warrants.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of these consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses for the periods reported. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods.
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CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
Judgements are choices in accounting policies and disclosures which management believes are supported by facts and circumstances existing at the date of the consolidated financial statements.
Critical accounting judgements are accounting policies that have been identified as being complex or involve subjective judgments or assessments with a significant risk of material adjustment.
Significant judgement areas include:
- The ability of the Company to continue as a going concern.
FINANCIAL INSTRUMENTS
The Company classifies its cash and cash equivalents and investment in EBFG as financial asset measured at FVTPL, accounts receivable and other receivables (excluding GST recoverable) as financial assets measured at amortized cost, its accounts payable and accrued liabilities, and loans payable as financial liabilities measured at amortized cost. The carrying amount of financial assets and liabilities carried at amortized cost is a reasonable approximation of their fair value due to the relatively short period to maturity of these financial instruments.
Fair value
The following table summarizes the carrying values of the Company's financial instruments:
| January 31, 2025 | January 31, 2024 | |
|---|---|---|
| $ | $ | |
| Financial assets at fair value through profit or loss (i) | 54,467 | 33,303 |
| Financial assets measured at amortized cost (ii) | 512 | 2,489 |
| Financial liabilities measured at amortized cost (iii) | 1,240,287 | 1,057,986 |
(i) Cash and cash equivalents
(ii) Accounts receivable and other receivables - excluding GST recoverable
(iii) Accounts payable and accrued liabilities, and related party loan
Financial instruments measured at fair value on a recurring basis are classified into one of three levels in the fair value hierarchy based on the degree to which the inputs used to determine the fair value are observable. The three levels of the fair value hierarchy are:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Cash and cash equivalents are classified as Level 1. There were no transfers into or out of Level 2 or Level 3 during the years ended January 31, 2025 and 2024.
Financial risk management
The Company's financial risks arising from its financial instruments are market risk, credit risk, liquidity risk and interest rate risk. The Company's exposure to these risks and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure appropriate measures are implemented in a timely and effective manner.
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CASCADIA BLOCKCHAIN GROUP CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED JANUARY 31, 2025 AND 2024
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk consists of currency risk, which is the risk that exposes the Company to financial risk related to the fluctuation in exchange rates.
The Company has minimal currency risk as neither the Company nor its subsidiaries have any financial instruments denominated in currencies other than their functional currency as at January 31, 2025.
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. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company's credit risk with respect to its cash is minimal as it is held with a large financial institution. The Company's maximum exposure to credit risk for the components of the consolidated statement of financial position at January 31, 2025 and 2024 is the carrying value of each class of financial assets disclosed in the consolidated financial statements.
Liquidity risk
Liquidity risk is the risk that the Company will not meet its obligations associated with its financial liabilities as they fall due. The Company manages liquidity risk through the management of its capital structure and financial leverage. Management closely monitors the liquidity position and expects to have adequate sources of funding to finance the Company's projects and operations. As at January 31, 2025, the Company had a working capital deficit of $1,185,308 (January 31, 2024: deficit $1,020,356). All of the Company's financial liabilities are classified as current.
Interest rate risk
The Company has no interest-bearing debt. The Company has not entered into any derivative instruments to manage interest rate fluctuations. The Company is not exposed to significant interest rate risk.
APPROVAL
The Board of Directors of Cascadia Blockchain Group Corp. has approved the contents of this management discussion and analysis on May 30, 2025.
ADDITIONAL INFORMATION
Additional information concerning the Company and its operations is available on SEDAR at www.sedarplus.ca.
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