BOREAL PRODUCTIONS INC.

CIK:0001413909|SEC Filings

Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenue	$ 1,016,037	$ 1,174,878	$ 1,315,485	$ 1,919,129
Cost of revenue	395,285	814,882	545,377	1,301,839
Gross profit	620,752	359,996	770,108	617,290
Operating expenses
Compensation expense	321,644	1,211,309	684,562	1,667,263
General and administration expense	755,452	566,176	1,665,851	1,244,665
Research and development		36,750		36,750
Bad debt expense			104,124	12,482
Inventory write-down	64,680		64,680
Depreciation and amortization expense	2,779	3,093	5,770	6,230
Total operating expenses	1,144,555	1,817,328	2,524,987	2,967,390
Loss from operations	(523,803)	(1,457,332)	(1,754,879)	(2,350,100)
Other income (expense)
Foreign currency exchange	(2,401)	1,721	(6,225)	(26,712)
Loss on sale of lease receivable		(3,923)		(3,923)
Gain on lease modification			6,932
Gain on extinguishment of debt				10,240
Gain on disposal				3,960
Redemption premium on preferred shares				(3,062)
Finance costs	(551,389)	(527,937)	(1,093,473)	(1,084,549)
Total other income (expense)	(553,790)	(530,139)	(1,092,766)	(1,104,046)
Net loss	$ (1,077,593)	$ (1,987,471)	$ (2,847,645)	$ (3,454,146)
Net loss per share
Basic	$ (0.01)	$ (0.02)	$ (0.02)	$ (0.03)
Diluted	$ (0.01)	$ (0.02)	$ (0.02)	$ (0.03)
Weighted average number of shares used in computing basic and diluted net income (loss) per share:
Basic	153,344,790	131,515,955	154,413,610	130,622,598
Diluted	153,344,790	131,515,955	154,413,610	130,622,598

Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Cash Flows [Abstract]
Net loss	$ (2,847,645)	$ (3,454,146)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	5,771	70,189
Change in ROU assets	42,646
Accretion of discounts on debt		315,065
Loss on sale of lease receivable		3,923
Gain on lease modification	(6,932)
Bad debt expense	104,124	12,482
Accretion on lease liability		27,224
Gain on extinguishment of debt		(10,240)
Preferred shares issued for services		777,000
Shares and warrants issued for services		76,276
Unrealized foreign exchange loss	101	2,997
Gain on asset disposal		(3,960)
Changes in non-cash working capital:
Trade receivables, net	255,942	(177,714)
Inventories	274,748	110,467
Prepaid expense and deposits	(253,251)	183,783
Lease receivable	(698)	(21,641)
Trade payables and accruals	1,516,003	1,629,447
Deferred revenue	30,847	213,458
Lease liabilities	(21,581)	(101,051)
Interest on mandatorily redeemable preferred shares		3,062
Net cash used in operating activities	(835,245)	(343,399)
Cash flows from investing activities
Purchase of equipment		(8,892)
Disposal of property and equipment		10,225
Net cash provided by investing activities		1,333
Cash flows from financing activities
Proceeds from issuing preferred shares, and shares to be issued	612,000	250,000
Proceeds from related party loans payable	71,570
Proceeds from loans payable	159,986	500,000
Proceeds from sale of lease receivable		863,527
Payments on related party loans payable	(14,236)
Payments on loans payable	(26,307)	(20,411)
Net cash provided by financing activities	803,013	1,593,116
Effect of exchange rate changes on cash	(2,001)	50,285
Net increase (decrease) in cash	(34,233)	1,301,335
Cash at beginning of period	53,779	275,383
Cash at the end of the period	$ 19,546	$ 1,576,718

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash	$ 19,546	$ 53,779
Trade receivables, net	353,381	711,028
Lease receivable	3,772	3,627
Inventories	865,149	1,204,577
Prepaid expenses and deposits	443,135	189,884
TOTAL CURRENT ASSETS	1,684,983	2,162,895
Lease receivable	14,052	15,918
Fixed assets, net	18,534	25,546
Right-of-use assets, net	266,144	29,561
Intangible assets, net	9,761	10,376
TOTAL ASSETS	1,993,474	2,244,296
CURRENT LIABILITIES
Trade and other payables	4,872,259	3,356,256
Deferred revenue	512,321	481,474
Lease liability	86,350	35,670
Loans payable	2,550,370	2,416,692
Convertible notes payable	2,719,488	2,719,514
TOTAL CURRENT LIABILITIES	10,796,122	9,009,606
Lease liability	203,289	4,982
Loans payable	150,000	150,000
TOTAL LIABILITIES	11,149,411	9,164,588
Contingencies (Note 16)
MEZZANINE EQUITY
Redeemable preferred stock, $0.001 par value, 24,010,000 shares authorized (2022 – 24,010,000), 52,451 issued and outstanding, 1,118 to be issued (2022 – 52,023 issued and outstanding, 860 to be issued)	3,157,555	2,635,345
STOCKHOLDERS’ DEFICIT
Preferred stock, $0.001 par value, 3,010,000 shares authorized (2022 – 3,010,000), 200,750 issued and outstanding (2022 – 200,780 issued and outstanding)	2,874,180	3,087,180
Common stock, $0.001 par value, 1,000,000,000 shares authorized, (2022 – 350,000,000); 154,413,610 issued and outstanding (2022 – 145,429,993)	154,414	145,430
Additional paid in capital, common stock	51,209,956	50,916,150
Discounts on common stock	(69,838)	(69,838)
Obligation to issue warrants	261,934	261,934
Accumulated other comprehensive income	1,345,593	1,345,593
Accumulated deficit	(68,089,731)	(65,242,086)
TOTAL STOCKHOLDERS’ DEFICIT	(12,313,492)	(9,555,637)
TOTAL LIABILITIES MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT	1,993,474	2,244,296
Related Party [Member]
CURRENT LIABILITIES
Due to related party	$ 55,334