Borealis Exploration : Quarterly Report for the Three-Month Period Ended 31 December 2021

BOREALIS EXPLORATION LIMITED COMPANY

Unaudited Financial Statements

for the three months ending 31 December 2021 the first fiscal quarter of Fiscal Year 2022

BOREALIS EXPLORATION LIMITED COMPANY

Registered No (Gibraltar) 66632

PROFIT AND LOSS ACCOUNT

for the three months ended 31 December 2021

	Notes	31 December 2021	31 December 2020
		$	$
Income
Interest - Borealis Holdings Ltd	1	199,763	269,113
Expenditure
Administration expenses incurred		(314)	(1,173)
Net Expenditure		199,449	267,940
Finance gain (loss) Directors loan		28,289	1,321
Gain on foreign exchange		-	365
		227,738	269,626
Profit on disposal of shares in subsidiary companies
Loss on cancellation of shares	1	-	(100,820)
		$227,738	$168,806

BOREALIS EXPLORATION LIMITED COMPANY

Registered No (Gibraltar) 66632

BALANCE SHEET at 31 December 2021

		31 December 2021	31 December 2020
		$	$
Current Assets
Accounts receivable
Borealis Holdings Limited	See note below	40,277,843	40,273,451
Roche Bay plc		1,697,769	1,697,769
Faraway plc		2,399,863	2,399,863
Other		1,000	1,000
Total accounts receiveable		44,376,475	44,372,083
Cash at bank		8,117	40,632
Total Assets		$44,384,592	$44,412,715

Capital and Reserves
Called up Share Capital	38,365	39,087
Share Premium Account	18,599,961	18,950,158
Profit and Loss Account	(10,309,456)	(10,685,229)
	8,328,870	8,304,016
Non Current Liabilities
Loan from directors	128,238	196,904
Current Liabilities
Accounts payable
Borealis Technical Limited	35,188,274	35,157,674
WheelTug plc	739,210	754,121
Total Current Liabilities	35,927,484	35,911,795
Net Equity	$44,384,592	$44,412,715

BOREALIS EXPLORATION LIMITED COMPANY

Registered No (Gibraltar) 66632

STATEMENT OF CHANGES IN EQUITY three months ended 31 December 2021

	Called up Share	Share Premium
Notes	Capital	Account	Earnings/Losses	Total Equity
	$	$	$	$
Balance at 1 October 2021	38,365	18,599,961	(10,537,294)	8,101,032
Shares returned and cancelled	-	-	-	-
Earnings	-	-	227,838	227,838
Balance at 31 December 2021	$38,365	$18,599,961	($10,309,456)	$8,328,870
CASH FLOW STATEMENT		Notes	31 December 2021	31 December 2020
three months ended 31 December 2021			$	$
Profit for the period			227,838	269,626
Less non cash flow items
Interest accrued - Borealis Holdings Ltd		1	(199,762)	(269,113)
Finance loss (gain) Directors loan			(28,389)	(1,321)
Gain on foreign exchange			-	(365)
Net cash flow from operations			(313)	(1,173)
Adjustments to equity not affecting the flow of cash			-	73,399
Cash related changes in working capital
Decrease (Increase) in Accounts Receivable			-	(73,033)
Increase (Decrease) in Accounts Payable			(988)	(23,738)
Repurchase of shares due to directors			(16,770)	-
Net increase cash resources			(18,071)	(24,545)
Cash at beginning of period			26,188	65,177
Cash at end of period			$8,117	$40,632

Note

On October 1 2019, Borealis Exploration sold all its shares in its subsidiary companies to Borealis Holdings Limited for $50 million. Borealis Exploration shareholders can return their shares for an equal number of shares in Borealis Holdings Limited. All shares returned are set off at $10 each against the $50 million due by Borealis Holdings Limited, and the balance due at each month end accrues interest at an annual rate of 2%