iFabric : Earnings Document

(IFA)   Report
IFABRIC CORP. CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2022 AND 2021 (EXPRESSED IN CANADIAN DOLLARS) CONTENTS AUDITORS' REPORT 1-3 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statements of Financial Position 4 Consolidated Statements of Earnings (Loss) and Comprehensive Earnings 5 Consolidated Statements of Changes in Equity 6 Consolidated Statements of Cash Flows 7 Notes to Consolidated Financial Statements 8 - 27 Tel: 416 865 0200 BDO Canada LLP Fax: 416 865 0882 222 Bay Street URL Suite 2200, P.O. Box 131 Toronto, ON M5K1H1 Canada Independent Auditor's Report To the Shareholders of iFabric Corp. Opinion We have audited the consolidated financial statements of iFabric Corp. and its subsidiaries (the "Company"), which comprise the consolidated statements of financial position as at September 30, 2022 and 2021, and the consolidated statements of earnings (loss) and comprehensive earnings (loss), changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at September 30, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards ("IFRS"). Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Revenue Recognition Description of the key audit matter The Company's revenues consists of intimate apparel for women and innovative products and treatments for application to textiles and other surfaces. The Company entered into an arrangement with a supplier whose related party also acted as a distributor, requiring a determination of whether revenue should be recognized on a principal or agent basis. Due to the significance of the revenue to the overall operating results of the Company and judgement in the assessment of principal and agent, revenue recognition was determined to be a key audit matter requiring special audit consideration. Please refer to Note 3 (c) to the consolidated financial statements for the Company's revenue recognition policy and Note 16 that includes revenue information by operating segments. How the key audit matter was addressed in the audit Our audit procedures included but is not limited to a review of new revenue contracts and exclusive license agreements in effect during the fiscal year, including any modifications or amendments, for recognition and measurement in accordance with IFRS 15, including the assessment as principal or agent. Other Information Management is responsible for the other information. The other information comprises the information included in Management's Discussion and Analysis filed with the relevant Canadian Securities Commissions. Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We obtained the Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we will perform on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact to those charged with governance. We have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process. Auditor's Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditor's report is Michael Crolla. Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario December 28, 2022 IFABRIC CORP. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian Dollars) September 30, September 30, As at 2022 2021 ASSETS Current assets Cash 944,725 8,901,718 Accounts receivable (note 4) 7,017,329 6,452,896 Inventories (note 5) 9,353,200 3,015,010 Income taxes recoverable 39,780 90,521 Prepaid expenses and deposits (note 6) 5,338,748 4,734,352 Total current assets 22,693,782 23,194,497 Non-current assets Due from related parties (note 7) 87,248 131,404 Property, plant and equipment (note 8) 3,110,330 2,942,104 Right-of-use assets (note 9) 52,548 54,168 Deferred development costs (note 10) 204,838 231,658 Deferred income taxes (note 11) 1,165,700 1,020,984 Goodwill 55,050 55,050 Total non-current assets 4,675,714 4,435,368 Total assets 27,369,496 27,629,865 LIABILITIES Current liabilities Accounts payable and accrued liabilities (note 13) 2,520,095 2,941,445 Customer deposits 85,326 151,315 Income taxes payable 195,097 256,426 Deferred revenue 13,090 25,609 Current portion of contract liability - 180,509 Current portion of lease liability 19,208 30,613 Current portion due to related parties (note 14) 4,559 - Current portion of car loan payable 12,792 - Current portion of bank loan payable (note 15) 1,138,704 1,215,464 Total current liabilities 3,988,871 4,801,381 Non-current liabilities Non-current portion of lease liability 33,340 20,855 Non-current portion of car loan payable 33,948 - Due to related parties (note 14) 547,372 530,422 Total non-current liabilities 614,660 551,277 Total liabilities 4,603,531 5,352,658 Commitments (note 22) EQUITY Equity attributable to iFabric Corp. shareholders Capital stock (note 21) 13,660,614 13,585,774 Reserves 3,675,458 3,264,746 Retained earnings 5,157,927 5,612,925 Accumulated other comprehensive earnings 259,111 (196,551) Total equity attributable to iFabric Corp. shareholders 22,753,110 22,266,894 Non-controlling interest 12,855 10,313 Total equity 22,765,965 22,277,207 Total liabilities and equity 27,369,496 27,629,865 Approved on behalf of the Board of Directors on December 28, 2022: "Hylton Karon" "Hilton Price" Director Director The accompanying notes are an integral part of these consolidated financial statements This is an excerpt of the original content. 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Disclaimer iFabric Corp. published this content on 29 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 December 2022 14:53:06 UTC.

Sales 2021 19,8 M 14,5 M 14,5 M Net income 2021 2,37 M 1,74 M 1,74 M Net cash 2021 7,10 M 5,23 M 5,23 M P/E ratio 2021 40,1x Yield 2021 - Capitalization 21,8 M 16,0 M 16,0 M EV / Sales 2020 9,48x EV / Sales 2021 4,51x Nbr of Employees - Free-Float 34,3%
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