Khan Resources Inc.
Condensed Interim Consolidated Financial Statements
June 30, 2015
In thousands of Canadian dollars (unaudited)
NOTICE OF NO AUDITOR REVIEW OF INTERIM STATEMENTS
The accompanying unaudited interim consolidated financial statements of
the Company have been prepared by management and approved by the
Audit Committee and Board of Directors of the Company. The Company’s
independent auditors have not performed a review of these financial
statements in accordance with the standards established by the Canadian
Institute of Chartered Professional Accountants for a review of interim
financial statements by an entity’s auditors.
Consolidated Statement of Financial Position
June 30 Sep 30
2015 2014
ASSETS Current Assets
Cash and cash equivalents 4 1,717 352
Accounts receivable 11 7
Prepaid expenses and other assets 77 56
Investments 5 417 939
Restricted cash 4 52 52
Total current assets 2,274 1,406 Non-current assets Equipment 6 - -
Total non-current assets - - Total assets 2,274 1,406 LIABILITIES Current liabilities Accounts payable and accrued liabilities 251 155
Provisions 7 - 9
Total current liabilities 251 164
Total liabilities 251 164
Net assets 2,023 1,242 EQUITY Share capital 80,245 77,482 Contributed surplus 12,928 12,509 Accumulated other comprehensive income (loss) 8 32 62
Deficit (91,182) (88,811)
Total equity 2,023 1,242
The accompanying not es are an int egral part of t hese consolidat ed f inancial st at ement s.
The consolidated financial statements w ere approved by the Board of Directors on August 20, 2015 and signed on its behalf by:
Signed: "Raffi Babikian" Signed: "Grant A.Edey"
Director Director
Consolidated Statement of Loss
For the three and nine months ended June 30
Notes 2015 2014 2015 2014
Continuing operations Revenue
Finance income 1 1 2 7
Total Revenue 1 1 2 7
Legal expenses (450) (91) (754) (988)
General corporate (227) (207) (658) (721)
Amortization and impairment loss, property, plant and equipment 6 - - - (1)
Share-based compensation 9 - - (713) (540)
Available-for-sale financial assets, change in fair value 5 - - (217) -
Gain (loss) on sale of investments - - (62) 32
Impairment reversal, property, plant and equipment - - - 8
Gain (loss) on available-for-sale investments recycled from OCI - - - 17
Foreign exchange gain (loss) 35 (3) 38 (21)
Loss before tax (641) (300) (2,364) (2,207) Incom e tax 13 (6) (89) (4) (33)
Net loss from continuing operations (647) (389) (2,368) (2,240) Discontinued operations Income (loss) from discontinued operations, net of tax 12 5 (27) (3) (12)
Net loss (642) (416) (2,371) (2,252) Loss per share Basic loss per share (in Canadian cents) 14 (0.01) (0.01) (0.03) (0.03) Diluted loss per share (in Canadian cents) 14 (0.01) (0.01) (0.03) (0.03) Weighted average number of shares outstanding - Basic 80,014,229 75,816,482 78,103,185 75,630,755 Weighted average number of shares outstanding - Diluted 80,014,229 75,816,482 78,103,185 75,630,755
The accompanying not es f orm part of t hese f inancial st at ement s.Consolidated Statement of Comprehensive Loss For the three and nine months ended June 30 Notes 2015 2014 2015 2014 Net loss (642) (416) (2,371) (2,252) Other com prehensive incom e (loss), net of incom e tax Items that w ill be reclassified subsequently to net earnings Foreign currency translation differences - foreign operations - - - - Net change in fair value of available-for-sale financial assets 5 (47) (667) (34) (233)
Income tax on other comprehensive income 13 6 89 4 31
Other com prehensive incom e (loss), net of incom e tax (41) (578) (30) (202)
Total com prehensive loss (683) (994) (2,401) (2,454)
The accompanying not es f orm part of t hese f inancial st at ement s.
Three m onths Nine m onths
Three m onths Nine m onths
Consolidated Cash Flow Statement For nine months ended June 30, 2015
Notes 2015 2014
Operating Activities
Loss before income tax including discontinued operations (2,367) (2,219) Adjustments for:
Amortization and impairment 6 - 1
Share-based compensation 9 713 540
Unrealized foreign exchange loss (gain) (35) 8
Financial income and expenses (2) (7)
Gain on disposal of equipment - (54)
Loss (gain) on sale of investments 62 (32)
Gain on available-for-sale investments recycled from OCI (17)
Available-for-sale financial assets, change in fair value 5 217 -
Gain on restructuring provision over-estimate 7 (5)
Decrease in cash due to deconsolidation of subsidiary 2 5 -
Changes in: Accounts receivable (4) 3
Prepaid expenses and other assets (21) (13)
Accounts payable and accrued liabilities 96 (281)
Restructuring provision 7 (4) (41)
Cash used in operations (1,345) (2,112) Interest received 1 7
Income tax paid - (2)
Net operating cash flow s (1,344) (2,107) Investing activities Sale of equipment - 54
Decrease in cash due to deconsolidation of subsidiary 2 (5) -
Proceeds from sale of investments 5 209 92
Purchase of equipment - (1)
Net investing cash flow s 204 145
Financing activities Proceeds on issuance of shares 2,469 91
Net financing cash flow s 2,469 91
Net increase (decrease) in cash and cash equivalents 1,329 (1,871) Cash and cash equivalents at the beginning of the period 352 2,231 Effect of foreign currency exchange rate changes on cash and cash equivalents 36 (9)
Cash and cash equivalents at the end of the period 4 1,717 351
The accompanying not es are an int egral part of t hese consolidat ed f inancial st at ement s.
The Company is authorized to issue an unlimited number of common shares, with no par value.
Consolidated Statement of Changes in Equity For the nine months ended June 30, 2015
Accum ulated other
Num ber of Contributed com prehensive Total
Notes shares Am ount surplus incom e (loss) Deficit equity
Balance as at October 1, 2014 76,416,482 77,482 12,509 62 (88,811) 1,242 Total comprehensive income (loss) - - - (30) (2,371) (2,401)
Transactions w ith ow ners: -
Employee share options: -
Share-based compensation 9 713 713
Options exercised 1,875,000 774 (294) 480
Proceeds on issuance 5,000,000 2,000 2,000
Cost of issue (11) (11)
Balance as at June 30, 2015 83,291,482 80,245 12,928 32 (91,182) 2,023
Balance as at October 1, 2013 75,363,148 77,143 12,097 202 (86,382) 3,060
Total comprehensive loss (202) (2,252) (2,454)
Transactions w ith ow ners:
Employee share options:
Share-based compensation 9 540 - - 540
Options exercised 453,334 159 (68) 91
Balance as at June 30, 2014 75,816,482 77,302 12,569 - (88,634) 1,237
The accompanying not es are an int egral part of t hese consolidat ed f inancial stat ement s.