SX:CC - Audited Financial Statements: March 31 2022 Results
(TheNewswire)
Montréal – TheNewswire - September 29, 2022 – St-Georges Eco-Mining Corp. (CSE:SX)(OTC:SXOOF) (FSE:85G1) would like to inform itsshareholders that it has posted its Audited Financials Statements forthe 15-month period ended March 31, 2022, and the prior year endedDecember 31, 2020, and the corresponding Management Discussion &Analysis on SEDAR.
St-Georges is also providing an update to itspreviously disclosed Management Cease Trade Order (“ MCTO ”), initiallyannounced on August 3, 2022, in respect of the interim FinancialStatements and corresponding Management’s Discussion and Analysisfor the period ended June 30, 2022, including the related ChiefExecutive Officer and Chief Financial Officer certifications(collectively, the “ Financial Documents ”) that were not filed bythe filing deadline of August 29, 2022.
The Corporation has applied to the applicablesecurities regulatory authorities and received a Management CeaseTrade Order (“ MCTO ”) imposed against the Chief ExecutiveOfficer (CEO) and the Chief Financial Officer (CFO) of theCorporation, precluding them from trading securities of theCorporation. The MCTO will be in effect until all the FinancialDocuments are filed.
St-Georges management aims to release the InterimFinancial Documents pertaining to the 1 st Quarter of its2022 financial year, covering the period of April 1, 2022, to June 30,2022, within the next five days.
The consolidated financial statements comprise theaccounts of the Company and its controlled subsidiaries. Allintercompany transactions, balances, and unrealized gains and lossesfrom intercompany transactions are eliminated on consolidation. ZeUTechnologies, Inc. (“ZeU”) is consolidated due to the fact thatcommon directors of St-Georges control the operations of ZeU.
FINANCIAL RESULTS OVERVIEW
Summary of the Results ofOperation
For the fifteen months ended March 31, 2022, theCompany recorded a net loss of $23,277,671 (December 31, 2020 -$14,096,033), had a cumulative deficit of $39,486,653 (December 31,2020 – $28,030,430), and deficit non-controlling interest of$13,180,900 (December 31, 2020 - $6,190,442). The Company had nosource of operating revenues or any related operating expenditures.
The following table provides a summary of theCompany’s financial operations for the prior two fiscal years.
| Fifteen months ended March 31, 2022 $ |
| Year ended December 31, 2020 $ |
| Revenues |
| - |
| - |
| Operating expenses |
| (12,657,689) |
| (4,243,923) |
| Net loss and comprehensive loss for the period |
| (23,277,671) |
| (14,096,033) |
| Basic and diluted loss per share |
| (0.11) |
| (0.10) |
| Fifteen months ended March 31, 2022 $ |
| Year ended December 31, 2020 $ |
| Cash and cash equivalents |
| 3,937,083 |
| 325,619 |
| Digital assets |
| - |
| - |
| Working capital deficiency |
| (1,483,012) |
| (5,016,989) |
| Exploration and evaluation assets |
| 15,655,582 |
| 3,300,938 |
| Total assets |
| 21,418,348 |
| 4,621,822 |
| Shareholders’ equity (deficiency) |
| 8,586,837 |
| (6,170,114) |
For the fifteen months ended March31, 2022, the Company had no revenues.
The Company incurred a net loss and comprehensive lossfor the period of $23,277,671 for the period ended March 31, 2022,compared to $14,096,033 for the year ended December 31, 2020. Theincrease in the loss is primarily due to an impairment of goodwill of$13,320,813 (December 31, 2020 - ), and operating expensesincreased to $12,657,689 (December 31, 2020 - $4,243,923).
For the year ended December 31, 2020,the Company had no revenues.
The Company incurred a net loss and comprehensive lossfor the year of $14,096,033 for the year ended December 31, 2020,compared to $2,892,869 for the year ended December 31, 2019. Theincrease in the loss is primarily due to increases in stock-basedcompensation payments of $1,187,352 (2019 - ), unrealized loss ondigital assets of $6,881,396 (2019 - $392,865 gain), impaired equityaccounted investment of $402,451 (2019 - ), and write-off$2,238,797 (2019 - ) on receivable loan.
Summary of the QuarterlyResults
The following table outlines selected unauditedfinancial information of the Company for the last eightquarters.
| Mar.31, 2022 |
| Dec.31, 2021 |
| Sept.30, 2021 |
| Jun.30, 2021 |
| Total assets |
| 21,418,348 |
| 35,867,510 |
| 31,696,856 |
| 32,454,999 |
| Working capital (deficiency) |
| (1,483,012) |
| (668,073) |
| 540,624 |
| 6,316,222 |
| Shareholders’ equity (deficiency) |
| 8,586,837 |
| 20,225,331 |
| 14,418,804 |
| 16,607,385 |
| Revenue |
| - |
| - |
| - |
| - |
| Net income (loss) |
| (11,830,131) |
| (4,788,683) |
| (2,180,060) |
| (3,525,866) |
| Net income (loss) per share |
| (0.05) |
| (0.02) |
| (0.01) |
| (0.02) |
| Mar.31, 2021 |
| Dec.31, 2020 |
| Sept.30, 2020 |
| Jun.30, 2020 |
| Total assets |
| 32,597,114 |
| 4,621,822 |
| 12,212,235 |
| 12,087,874 |
| Working capital (deficiency) |
| 10,332,023 |
| (5,016,989) |
| (481,076) |
| (938,794) |
| Shareholders’ equity (deficiency) |
| 18,543,583 |
| (6,170,114) |
| 3,946,984 |
| 3,981,105 |
| Revenue |
| - |
| - |
| - |
| - |
| Net income (loss) |
| (952,931) |
| 3,817,969 |
| (569,452) |
| (15,837,606) |
| Net income (loss) per share |
| (0.01) |
| 0.02 |
| (0.00) |
| (0.11) |
The Company currently runs two operating segments: theacquisition and exploration of mining properties and the developmentof novel metallurgical processes. All of the Company’s activitiesare conducted in Canada and Iceland.
The assets, liabilities, and operating expenses as thegeographic segment information. The primary indicators are asfollows:
| March 31, 2022 |
| Canada |
| Iceland |
| Total |
| $ |
| $ |
| $ |
| Assets |
| 19,412,663 |
| 2,005,685 |
| 21,418,348 |
| Liabilities |
| 10,063,964 |
| 2,767,547 |
| 12,831,511 |
| Operating expenses |
| (12,116,176) |
| (541,513) |
| (12,657,689) |
| December 31, 2020 |
| Canada |
| Iceland |
| Total |
| $ |
| $ |
| $ |
| Assets |
| 3,589,894 |
| 1,031,928 |
| 4,621,822 |
| Liabilities |
| 9,539,613 |
| 1,252,323 |
| 10,791,936 |
| Operating expenses |
| (3,934,897) |
| (309,026) |
| (4,243,923) |
Key decision makers review assets, liabilities andoperating expenses as the primary indicators of segment information.The primary indicators are as follows:
| March 31, 2022 |
| Exploration of mining properties |
| Blockchain technology development |
| Total |
| $ |
| $ |
| $ |
| Assets |
| 20,833,524 |
| 584,824 |
| 21,418,348 |
| Liabilities |
| 150,652 |
| 12,680,859 |
| 12,831,511 |
| Operating expenses |
| (6,867,494) |
| (5,790,195) |
| (12,657,689) |
| December 31, 2020 |
| Exploration of miningproperties |
| Blockchain technologydevelopment |
| Total |
| $ |
| $ |
| $ |
| Assets |
| 4,604,878 |
| 16,944 |
| 4,621,822 |
| Liabilities |
| 1,355,261 |
| 9,436,675 |
| 10,791,936 |
| Operating expenses |
| (1,850,808) |
| (2,393,115) |
| (4,243,923) |
On April 13, 2022, the Company announced that its boardof directors voted unanimously to authorize its subsidiary, EVSX Corp.(“EVSX”), to move forward with its plan to recycle batteries andproduce nickel ingots in Baie-Comeau, Québec, in 2022. Companymanagement visited land identified in Baie-Comeau’s new industrialand innovation park and conducted meetings with city representatives.This visit resulted in an offer to acquire three (3) contiguous lots,totaling approximately 50,000 square meters. The offer was accepted,and a contract was executed. The Company will pay a total of $400,000($100,001 was paid at closing in May 2022, with the balance of$300,000 to be paid within 730 days) and will have to startconstruction of the installations which will host Phase II of theindustrial battery operations deployment within 24 months. Thefacility is in a zone allowing the Company to qualify for a completesuite of governmental advantages and incentives.
EVSX also made a formal offer to buy a building to hostits Phase I deployment. EVSX closed the acquisition with $258,694 inJuly 2022 and started generating revenues in July 2022 from thecommercial rent in the building.
In July 2022, EVSX commissioned and disbursed theinitial payment for manufacturing three identical battery processingindustrial units. These units will be in three separate locations; oneis to be in Baie-Comeau, QC, and the remaining two locations are indiscussions.
_____________________________________________________________________________________
ON BEHALF OF THE BOARD OF DIRECTORS
“Frank Dumas”
FRANK DUMAS
Chief Operating Officer & Director
About St-Georges Eco-Mining Corp.
St-Georges develops new technologies to solve some ofthe most common environmental problems in the mining sector, includingmaximizing metal recovery and full circle EV battery recycling. TheCompany explores for nickel & PGEs on the Julie Nickel Project andthe Manicougan Palladium Project on Quebec’s North Shore and hasmultiple exploration projects in Iceland, including the Thor GoldProject. Headquartered in Montreal, St-Georges’ stock is listed onthe CSE under the symbol SX and trades on the Frankfurt Stock Exchangeunder the symbol 85G1 and on the OTCQB Venture Market for early stageand developing U.S. and international companies. Companies are current in their reporting and undergo an annualverification and management certification process. Investors can findReal-Time quotes and market information for the company on www.otcmarkets.com
The Canadian Securities Exchange(CSE) has not reviewed and does not accept responsibility for theadequacy or the accuracy of the contents of this release.
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