Three months ended December 31

Six months ended December 31

December 2021

December 2020

Inc./(Dec)

December 2021

December 2020

Inc./(Dec)

$

$

$

$

$

$

Revenues

$

367 196

$

386 926

$

(19 730)

$

740 493

$

698 698

$

41 795

Direct expenses

Costs of loyalty rewards, and marketing  in connection with Advantex's merchant based loyalty program

$

74 945

$

122 133

$

(47 188)

$

213 116

$

183 850

$

29 266

Expense for provision against delinquent accounts, credit/collection expense

$

4 457

$

44 015

$

(39 558)

$

5 923

$

72 742

$

(66 819)

Gross profit

$

287 794

$

220 778

$

67 016

$

521 454

$

442 106

$

79 348

Selling and General & Administrative expenses

$

451 144

$

330 348

$

120 796

$

800 650

$

640 210

$

160 440

(Loss) from operations before depreciation, amortization and interest

$

(163 350)

$

(109 570)

$

53 780

$

(279 196)

$

(198 104)

$

81 092

Stated interest expense - loan payable, and 9% non convertible debentures payable

$

323 441

$

225 124

$

98 317

$

567 648

$

471 965

$

95 683

(Loss) from operations before depreciation, amortization, non cash interest and non cash items

$

(486 791)

$

(334 694)

$

152 097

$

(846 844)

$

(670 069)

$

176 775

Interest - Lease

$

1 692

$

3 532

$

(1 840)

$

3 864

$

7 492

$

(3 628)

Interest expense - Accretion charges,  restructuring bonus and amortization of transaction costs related to 9% non convertible debentures payable

$

194 302

$

159 539

$

34 763

$

388 485

$

317 652

$

70 833

Depreciation of right of use asset

$

-

$

11 373

$

(11 373)

$

-

$

22 746

$

(22 746)

Net (loss) and comprehensive (loss)

$

(682 785)

$

(509 138)

$

173 647

$

(1 239 193)

$

(1 017 959)

$

221 234

Fuller details available in the Consolidated Financial Statements and MD&A available under Advantex's profile on www.sedar.com

Note

December 31,
2021

June 30,
2021

$

$

Assets

Current assets

Cash 

$

148 148

$

82 606

Accounts receivable

53 209

93 090

Transaction credits 

5

4 869 486

1 726 663

Prepaid expenses and sundry assets

44 258

43 675

$

5 115 101

$

1 946 034

Total assets

$

5 115 101

$

1 946 034

Liabilities

Current liabilities

Loan payable 

6

$

5 250 429

$

2 387 439

Lease liability

15

49 706

71 910

Loan

16

60 000

60 000

Accounts payable and accrued liabilities

2 627 856

2 731 158

9% non convertible debentures payable

7

5 975 705

-

$

13 963 696

$

5 250 507

Non-current liabilities

9% non convertible debentures payable

7

$

-

$

4 694 885

Lease liability

15

-

12 769

$

-

$

4 707 654

Total liabilities

$

13 963 696

$

9 958 161

Shareholders' deficiency

Share capital 

8

$

24 530 555

$

24 530 555

Contributed surplus

7 767 445

7 364 720

Accumulated other comprehensive loss

(47 383)

(47 383)

Deficit

(41 099 212)

(39 860 019)

Total deficiency

$

(8 848 595)

$

(8 012 127)

Total liabilities and deficiency

$

5 115 101

$

1 946 034

Going concern (note 2) and Commitments and contingencies (note 11)

The accompanying notes are an integral part of these consolidated financial statements

3 months ended December 31

6 months ended December 31

Note

2021

2020

2021

2020

$

$

$

$

Revenues

14

Marketing activities

$

91 599

$

194 122

$

289 067

$

307 080

Interest income 

275 597

192 804

451 426

391 618

$

367 196

$

386 926

$

740 493

$

698 698

Direct expenses

13/14

79 402

166 148

219 039

256 592

287 794

220 778

521 454

442 106

Operating expenses

Selling and marketing

13/14

153 176

109 795

301 074

256 960

General and administrative

13/14

297 968

220 553

499 576

383 250

(Loss) from operations before depreciation, amortization and interest

(163 350)

(109 570)

(279 196)

(198 104)

Stated interest expense - loan payable, and 9% non convertible debentures payable

6/7

323 441

225 124

567 648

471 965

Interest - Lease

15

1 692

3 532

3 864

7 492

Non-cash interest expense - accretion charges, restructuring bonus and amortization of transaction costs related to 9% non convertible debentures payable

7

194 302

159 539

388 485

317 652

Depreciation of right of use asset

15

-

11 373

-

22 746

Net (loss) and comprehensive (loss)

$

(682 785)

$

(509 138)

$

(1 239 193)

$

(1 017 959)

(Loss) per share

Basic and Diluted

12

$

(0.00)

$

(0.00)

$

(0.00)

$

(0.00)

The accompanying notes are an integral part of these consolidated financial statements

Class A
preference
shares

Common
shares

Contributed
surplus

Accumulated
other
comprehen -
sive loss

Deficit

Total

$

$

$

$

$

$

Balance - July 1, 2020

$               3 815

$     24 526 740

$       4 117 170

$           (47 383)

$   (37 768 052)

$     (9 167 710)

Net (loss) and comprehensive (loss)

-

-

-

-

(1 017 959)

(1 017 959)

Balance - December 31, 2020

$               3 815

$     24 526 740

$       4 117 170

$           (47 383)

$   (38 786 011)

$   (10 185 669)

Balance - July 1, 2021

$               3 815

$     24 526 740

$       7 364 720

$           (47 383)

$   (39 860 019)

$     (8 012 127)

Issuance of 9% non convertible debentures payable (note 7)

-

-

402 725

-

-

402 725

Net (loss) and comprehensive (loss)

-

-

-

-

(1 239 193)

(1 239 193)

Balance - December 31, 2021

$               3 815

$     24 526 740

$       7 767 445

$           (47 383)

$   (41 099 212)

$     (8 848 595)