McCoy Global : 2021 First Quarter Financial Statements

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

March 31, 2021

(unaudited)

Notice to Reader:

As required by National Instrument 51-102, Part 4, subsection 4.3(3)(a), readers are advised that the Company's independent auditors have not performed a review of these condensed consolidated interim financial statements.

Q1 2021

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(Stated in thousands of Canadian dollars) (unaudited)

As at	Note	March 31, 2021	December 31, 2020
		$	$
Assets
Current assets
Cash and cash equivalents		14,625	12,136
Restricted cash		500	500
Trade and other receivables		4,312	3,610
Inventories	4	15,748	15,925
Prepaid expenses and deposits		550	679
		35,735	32,850
Other receivables		39	39
Property, plant and equipment	5	9,872	10,466
Intangible assets	6	5,900	5,822
Goodwill		3,438	3,481
Total assets		54,984	52,658
Liabilities
Current liabilities
Trade and other payables		3,425	3,633
Customer deposits		1,253	1,233
Provisions		785	956
Current lease liabilities		386	384
Borrowings	7	1,208	1,223
		7,057	7,429
Lease liabilities		3,506	3,644
Borrowings	7	9,418	6,081
Total liabilities		19,981	17,154
Shareholders' equity
Share capital		59,716	59,712
Contributed surplus		5,615	5,560
Accumulated other comprehensive income		6,727	7,129
Accumulated deficit		(37,055)	(36,897)
Total shareholders' equity		35,003	35,504
Total liabilities and shareholders' equity		54,984	52,658

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

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Q1 2021

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE EARNINGS (LOSS)

(Stated in thousands of Canadian dollars, except per share amounts) (unaudited)

For the three months ended March 31		2021	2020
		$	$
Revenue		7,374	11,323
Cost of sales		5,162	8,026
Gross profit		2,212	3,297
General and administration		1,567	1,716
Sales and marketing		346	437
Research and development		428	853
Finance charges, net		205	233
Other (gains) losses, net	8	(176)	145
		2,370	3,384
Loss before income taxes		(158)	(87)
Income tax expense		-	-
Net loss		(158)	(87)
Other comprehensive (loss) gain
Translation (loss) gain from foreign operations		(402)	3,409
Comprehensive (loss) earnings		(560)	3,322
Net loss per share
Basic from net loss		(0.01)	(0.00)
Diluted from net loss		(0.01)	(0.00)

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

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Q1 2021

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(Stated in thousands of Canadian dollars, except per share amounts) (unaudited)

	Issued capital
				Accumulated
				other
	Number of		Contributed	comprehensive	Accumulated
	shares	Share capital	surplus	income	deficit	Total equity
	#	$	$	$	$	$
January 1, 2020	27,630,989	59,636	5,384	7,552	(34,722)	37,850
Net loss	-	-	-	-	(87)	(87)
Translation gain on
foreign operations	-	-	-	3,409	-	3,409
Employee share-based
compensation	-	-	76	-	-	76
March 31, 2020	27,630,989	59,636	5,460	10,961	(34,809)	41,248
January 1, 2021	27,802,489	59,712	5,560	7,129	(36,897)	35,504
Net loss	-	-	-	-	(158)	(158)
Translation loss on
foreign operations	-	-	-	(402)	-	(402)
Employee share-based
compensation	-	-	55	-	-	55
Issuance of common shares
Under restricted share plan	7,500	4	-	-	-	4
March 31, 2021	27,809,989	59,716	5,615	6,727	(37,055)	35,003

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

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Q1 2021

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(Stated in thousands of Canadian dollars) (unaudited)

For the three months ended March 31		2021	2020
Cash (used in) generated from		$	$
Operating activities
Net loss		(158)	(87)
Adjustments for:
Depreciation of property, plant and equipment		502	717
Amortization of intangible assets		200	215
Finance charges, net		205	233
Share-based compensation expense		185	6
Changes in non-cash working capital balances	9	(1,027)	776
Changes in restructuring and facility remediation provisions		(56)	(397)
Finance costs paid, net		(197)	(235)
Gain on disposal of property, plant and equipment		(97)	-
Net cash (used in) generated from operating activities		(443)	1,228
Investing activities
Purchases of property, plant and equipment		(35)	(717)
Proceeds from sale of property, plant and equipment		108	-
Additions to intangible assets	6	(351)	(160)
Net cash used in investing activities		(278)	(877)
Financing activities
Repayments of borrowings		(316)	(680)
Proceeds of borrowings	7	1,269	-
Proceeds of borrowings under US Paycheck Protection Program	7	2,468	-
Proceeds from issuance of common shares under restricted share plan		4	-
Principal elements of lease payments		(94)	(278)
Net cash generated from (used in) financing activities		3,331	(958)
Effect of exchange rate changes on cash and cash equivalents		(121)	833
Increase in cash and cash equivalents		2,489	226
Cash and cash equivalents - beginning of the period		12,136	8,382
Cash and cash equivalents - end of the period		14,625	8,608

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

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