AQUILA RESOURCES INC. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in United States Dollars, unless otherwise stated) (Unaudited)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021
Notice of No Auditor Review of Interim Financial Statements
Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim financial statements they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by, and are the responsibility of, the Company's management. The Company's independent auditor has not performed a review of these financial statements.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at June 30, 2021 and December 31, 2020
(Unaudited, expressed in United States Dollars)
June 30, | December 31, | |||
2021 | 2020 | |||
ASSETS | ||||
Current assets | $ | 974,250 | ||
Cash and cash equivalents | $ | 1,813,974 | ||
Accounts receivable | 35,224 | 13,968 | ||
Prepaid expenses | 65,413 | 105,454 | ||
1,074,887 | 1,933,396 | |||
Non-current assets | 24,736,046 | |||
Mineral property costs (Note 5) | 24,698,723 | |||
Security deposits | 26,716 | 26,716 | ||
Capital assets (Note 6) | 1,156,523 | 1,239,096 | ||
25,919,285 | 25,964,535 | |||
TOTAL ASSETS | $ | 26,994,172 | $ | 27,897,931 |
LIABILITIES AND SHAREHOLDERS' DEFICIENCY | ||||
Current liabilities | $ | 2,427,118 | ||
Accounts payable and accrued liabilities | $ | 1,936,618 | ||
Deposit received on non-binding letter of intent (Note 5) | 818,193 | - | ||
Reclamation obligation | 636,548 | 636,548 | ||
Current portion of leases payable | 124,770 | 118,076 | ||
Warrants payable (Note 11 and 13) | - | 5,399 | ||
4,006,629 | 2,696,641 | |||
Deferred revenue (Note 7, 8 &9) | 38,469,790 | 37,543,184 | ||
Contingent consideration (Note 4) | 4,785,500 | 4,703,460 | ||
Long-term portion of leases payable | 265,940 | 322,834 | ||
Deferred share unit liability (Note 12) | 203,748 | 278,498 | ||
Total liabilities | 47,731,607 | 45,544,617 | ||
Shareholders' deficiency | 75,507,135 | |||
Share capital (Note 10a) | 75,448,945 | |||
Contributed surplus (Note 10) | 9,524,859 | 9,441,157 | ||
Deficit | (105,769,429) | (102,536,788) | ||
(20,737,435) | (17,646,686) | |||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY | $ | 26,994,172 | $ | 27,897,931 |
The accompanying notes are an integral part of these interim financial statements.
Nature of operations and going concern (Note 1)
Commitments related to project spending (Note 6)
Approved on behalf of the Board | |||
"Andrew W. Dunn, FCPA, FCA" | Director | "Barry Hildred" | Executive Director |
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET LOSS AND COMPREHENSIVE LOSS For the three and six months ended June 30, 2021 and 2020
(Unaudited, expressed in United States Dollars, except number of shares)
Three months ended | Six months ended | |||||||
June 30, | June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
EXPENSES | $ | 517,623 | $ | 1,037,330 | ||||
Mineral property exploration expenses (Note 17) | $ | (190,654) | $ | 521,506 | ||||
Administrative expenses (Note 15) | 536,979 | 845,826 | 1,245,301 | 1,650,053 | ||||
Loss from operations | $ | 1,054,602 | $ | 655,172 | $ | 2,282,631 | $ | 2,171,559 |
Other expenses (income) | 428,200 | 857,373 | ||||||
Net finance expense (Note 16) | 2,561,415 | 2,732,013 | ||||||
Loss (gain) on foreign exchange | 80,589 | 791,227 | 142,118 | (193,007) | ||||
Loss (gain) on change in value of contingent consideration | 32,074 | 15,692 | (44,051) | 236,605 | ||||
Gain on change in value of warrants | (126) | 117,990 | (5,430) | (45,064) | ||||
Total loss and comprehensive loss | $ | 1,595,339 | $ | 4,141,496 | $ | 3,232,641 | $ | 4,902,106 |
Loss per share | $ | 0.00 | $ | 0.01 | ||||
Basic and diluted | $ | 0.01 | $ | 0.01 | ||||
Weighted average number of shares | 339,176,814 | 338,998,701 | ||||||
outstanding - basic and diluted | 338,556,404 | 338,549,111 |
The accompanying notes are an integral part of these interim financial statements.
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
As at June 30, 2021 and 2020
(Unaudited, expressed in United States Dollars)
Share Capital | Contributed | |||||||||||
Number | $ | Surplus | Warrants | Deficit | Total | |||||||
Balance, December 31, 2019 | 338,473,904 | $ | 75,409,506 | $ | 9,325,832 | $ | - | $ | (94,289,232) | $ | (9,553,894) | |
Shares issued on settlement of RSUs | 82,500 | - | - | - | - | - | ||||||
Fair value on settlement of RSUs | - | 15,925 | (15,925) | - | - | - | ||||||
Share-based compensation expense | - | - | 86,922 | - | - | 86,922 | ||||||
Net loss for the period | - | - | - | - | (4,902,106) | (4,902,106) | ||||||
Balance, June 30, 2020 | 338,556,404 | $ | 75,425,431 | $ | 9,396,829 | $ | - | $ | (99,191,338) | $ | (14,369,078) | |
Shares issued on settlement of RSUs | 82,048 | - | - | - | - | - | ||||||
Fair value on settlement of RSUs | - | 10,136 | (10,136) | - | - | - | ||||||
Shares issued on settlement of DSUs | 149,417 | - | - | - | - | - | ||||||
Fair value on settlement of DSUs | - | 13,378 | - | - | - | 13,378 | ||||||
Share-based compensation expense | - | - | 54,464 | - | - | 54,464 | ||||||
Net loss for the period | - | - | - | - | (3,345,450) | (3,345,450) | ||||||
Balance, December 31, 2020 | 338,787,869 | $ | 75,448,945 | $ | 9,441,157 | $ | - | $ | (102,536,788) | $ | (17,646,686) | |
Shares issued on settlement of RSUs | 39,963 | - | - | - | - | - | ||||||
Fair value on settlement of RSUs | - | 7,715 | (7,715) | - | - | - | ||||||
Shares issued on settlement of DSUs | 107,253 | - | - | - | - | - | ||||||
Fair value on settlement of DSUs | - | 7,314 | - | - | - | 7,314 | ||||||
Settlement of accounts payable in shares | 606,991 | 43,161 | - | - | - | 43,161 | ||||||
Share-based compensation expense | - | - | 91,417 | - | - | 91,417 | ||||||
Net loss for the period | - | - | - | - | (3,232,641) | (3,232,641) | ||||||
Balance, June 30, 2021 | 339,542,076 | $ | 75,507,135 | $ | 9,524,859 | $ | - | $ | (105,769,429) | $ | (20,737,435) |
The accompanying notes are an integral part of these interim financial statements.
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASHFLOWS
For the six months ended June 30, 2021 and 2020
(Unaudited, expressed in United States Dollars)
Six months ended | ||||
June 30 | ||||
2021 | 2020 | |||
Cash generated from (used in) | ||||
Operating activities | $ | (3,232,641) | ||
Net loss for the period | $ | (4,902,106) | ||
Items not affecting cash: | (5,430) | |||
Gain on change in fair value of warrants | (45,064) | |||
Loss (gain) on change in fair value of contingent consideration | (44,051) | 236,605 | ||
Unrealized foreign exchange loss (gain) | 133,135 | (236,338) | ||
Share-based compensation | 21,359 | 70,627 | ||
Non-cash interest on financing component of deferred revenue | 839,201 | 2,757,805 | ||
Finance expense (Note 16) | 15,882 | 5,855 | ||
Amortization | 82,573 | 40,105 | ||
$ | (2,189,972) | $ | (2,072,511) | |
Net change in non-cash working capital | (21,256) | |||
Accounts receivable | 237,734 | |||
Prepaid expenses | 40,041 | 52,450 | ||
Accounts payable and accrued liabilities | 533,661 | (573,140) | ||
Deposit received on non-binding letter of intent (Note 5) | 818,193 | - | ||
Net cash generated used in operating activities | $ | (819,333) | $ | (2,355,467) |
Investing activities | - | |||
Acquisition of equipment | (1,096) | |||
Increase in mineral properties | (37,323) | (30,223) | ||
Net cash used in investing activities | $ | (37,323) | $ | (31,319) |
Financing activities | ||||
Receipt of gold stream, net of costs | 87,405 | 2,370,948 | ||
Repayment of lease liabilities | (70,915) | (27,645) | ||
Net cash generated from financing activities | $ | 16,490 | $ | 2,343,303 |
Decrease in cash | (840,166) | (43,483) | ||
Effect of foreign exchange on cash | 442 | (1,721) | ||
Cash, beginning of period | 1,813,974 | 4,010,838 | ||
Cash, end of period | $ | 974,250 | $ | 3,965,634 |
The accompanying notes are an integral part of these interim financial statements.
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Aquila Resources Inc. published this content on 12 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2021 15:02:01 UTC.
