Three months ended March 31

Nine months ended March 31

March 2022

March 2021

Inc./(Dec)

March 2022

March 2021

Inc./(Dec)

$

$

$

$

$

$

Revenues

$        452,103

$        240,651

$        211,452

$    1,192,596

$        939,349

$        253,247

Direct expenses

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

$          83,286

$          55,284

$          28,002

$        296,402

$        239,134

$         57,268

Expense for provision against delinquent accounts, credit/collection expense

$               652

$            1,978

$           (1,326)

$            6,575

$          74,720

$        (68,145)

Gross profit

$        368,165

$        183,389

$        184,776

$        889,619

$        625,495

$       264,124

Selling and General & Administrative expenses

$        419,553

$        498,872

$         (79,319)

$     1,330,324

$     1,391,583

$        (61,259)

Federal Covid wage and rent subsidies

$         (29,632)

$       (132,585)

$       (102,953)

$       (139,753)

$       (385,086)

$      (245,333)

(Loss) from operations before depreciation, amortization and interest

$         (21,756)

$       (182,898)

$       (161,142)

$       (300,952)

$       (381,002)

$        (80,050)

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

$        338,629

$        205,250

$        133,379

$        906,277

$        677,215

$       229,062

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

$       (360,385)

$       (388,148)

$         (27,763)

$    (1,207,229)

$    (1,058,217)

$       149,012

Interest - Lease

$            1,201

$            3,090

$           (1,889)

$            5,065

$          10,582

$          (5,517)

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

$        199,920

$        132,141

$          67,779

$        588,405

$        449,793

$       138,612

Depreciation of right of use asset

$                    -

$          11,372

$         (11,372)

$                    -

$          34,118

$        (34,118)

Net (loss) and comprehensive (loss)

$       (561,507)

$      (534,751)

$          26,756

$   (1,800,699)

$   (1,552,710)

$       247,989

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

Note

March 31,
2022

June 30,
2021

$

$

Assets

Current assets

Cash 

$                  93,593

$                   82,606

Accounts receivable

49,955

93,090

Transaction credits 

5

4,492,442

1,726,663

Prepaid expenses and sundry assets

41,590

43,675

$             4,677,580

$             1,946,034

Total assets

$             4,677,580

$             1,946,034

Liabilities

Current liabilities

Loan payable 

6

$             4,833,893

$             2,387,439

Lease liability

15

31,489

71,910

Loan

16

60,000

60,000

Accounts payable and accrued liabilities

2,645,760

2,731,158

9% non convertible debentures payable

7

6,472,274

-

$           14,043,416

$             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

$           14,043,416

$             9,958,161

Shareholders' deficiency

Share capital 

8

$           24,530,555

$           24,530,555

Contributed surplus

7,811,710

7,364,720

Accumulated other comprehensive loss

(47,383)

(47,383)

Deficit

(41,660,718)

(39,860,019)

Total deficiency

$            (9,365,836)

$            (8,012,127)

Total liabilities and deficiency

$             4,677,580

$             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

Approved by the Board

Director: Signed "Marc Lavine"

Director: Signed "Kelly Ambrose"

                             Marc Lavine

                              Kelly Ambrose

Note

2022

2021

2022

2021

$

$

$

$

Revenues

14

Marketing activities

$                 114,953

$                   90,013

$                 404,020

$                 397,093

Interest income 

337,150

150,638

788,576

542,256

$                 452,103

$                 240,651

$             1,192,596

$                 939,349

Direct expenses

13/14

83,938

57,262

302,977

313,854

368,165

183,389

889,619

625,495

Operating expenses

Selling and marketing

13/14

182,396

166,728

483,470

423,688

General and administrative

13/14

207,525

199,559

707,101

582,809

(Loss) from operations before depreciation, amortization
and interest

(21,756)

(182,898)

(300,952)

(381,002)

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

6/7

338,629

205,250

906,277

677,215

Interest - Lease

15

1,201

3,090

5,065

10,582

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

7

199,920

132,141

588,405

449,793

Depreciation of right of use asset

15

-

11,372

-

34,118

Net (loss) and comprehensive (loss)

$               (561,507)

$               (534,751)

$            (1,800,699)

$            (1,552,710)

(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)

Recording of contributed surplus - 9% Non convertible debentures payable

-

-

3,033,105

-

-

3,033,105

Net (loss) and comprehensive (loss)

-

-

-

-

(1,552,710)

(1,552,710)

Balance - March 31, 2021

$              3,815

$    24,526,740

$       7,150,275

$           (47,383)

$   (39,320,762)

$     (7,687,315)

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)

-

-

446,990

-

-

446,990

Net (loss) and comprehensive (loss)

-

-

-

-

(1,800,699)

(1,800,699)

Balance - March 31, 2022

$              3,815

$    24,526,740

$       7,811,710

$           (47,383)

$   (41,660,718)

$     (9,365,836)

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

Note

2022

2021

$

$

Operational activities

Net (loss) for the period

$            (1,800,699)

$            (1,552,710)

Adjustments for:

Accrued and unpaid 9% non convertible debentures payable interest 

7

571,590

394,243

Interest - Lease

15

5,065

10,582

Depreciation of right of use asset

15

-

34,118

Accretion charge - 9% non convertible debentures payable

7

524,215

248,797

Restructuring bonus - 9% non convertible debentures payable

7

53,759

187,689

Amortization of transaction costs - 9% non convertible debentures payable

7

10,431

13,307

(635,639)

(663,974)

Changes in items of working capital

Accounts receivable

43,135

40,347

Transaction credits 

(2,765,779)

1,831,135

Prepaid expenses and sundry assets

2,085

12,410

Accounts payable and accrued liabilities

(85,398)

218,063

(2,805,957)

2,101,955

Net cash (used)/generated - operating activities

$            (3,441,596)

$             1,437,981

Financing activities

Gross proceeds - 9% non convertible debentures payable

7

$             1,150,000

$                 250,000

Transaction costs - 9%  non convertible debentures payable

7

(85,616)

(62,925)

Proceeds from loan - Canada Emergency Business Account 

-

20,000

Payment for lease

(58,255)

(58,253)

Increase/(Decrease) of loan payable

6

2,446,454

(1,649,224)

Net cash generated/(used) - financing activities

$             3,452,583

$            (1,500,402)

Increase/(Decrease) in cash during the period

$                   10,987

$                 (62,421)

Cash at beginning of the period

82,606

166,601

Cash at end of the period

$                   93,593

$                 104,180

Additional information

Interest paid 

$                 334,687

$                 282,972

Cash 

$                   93,593

$                 104,180

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