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; and
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.
The engagement partner on the audit resulting in this independent auditor’s report is Maxime Grenier-Guilbault.
Montréal, Quebec April 29, 2020
1 CPA auditor, CA, public accountancy permit No. A128042 /s/PricewaterhouseCoopers LLP1
2
Ressources X-Terra Inc. X-Terra Resources Inc.
États consolidés de la situation financière Consolidated Statements of Financial Position
Aux 31 décembre 2019 et 2018 As at December 31, 2019 and 2018
(présentés en dollars canadiens) (expressed in Canadian dollars)
Notes 2019
$ 2018
$
Actifs Assets
Actifs courants Current assets
Trésorerie 6 1 428 403 270 461 Cash
Débiteurs 7 64 611 48 443 Accounts receivable
Crédits d’impôt à recevoir 7 33 919 252 554 Tax credits receivable
Frais payée d’avance 2 453 2 447 Prepaid expenses
1 529 386 573 905
Actifs non courants Non-current assets
Immobilisations corporelles 1 349 1 785 Property, plant and equipment
Frais d’exploration payée d’avance 24 055 32 768 Prepaid deferred exploration expenses Propriétés minières, pétrolières et
gazières 8 337 915 47 693 Mining and oil and gas properties
Frais d’exploration reportés 9 752 233 259 679 Deferred exploration expenses
1 115 552 341 925
Total des actifs 2 644 938 915 830 Total assets
Passifs Liabilities
Passifs courants Current liabilities
Créditeurs et frais courus 111 513 204 724 Accounts payable and accrued liabilities Autre passif sur actions accréditives 85 035 - Other liabilities from flow through
shares
Total des passifs 196 548 204 724 Total liabilities
Capitaux propres attribuables aux actionnaires de Ressources X-Terra Inc.
Equity attributable to X-Terra Resources Inc.
shareholders
Capital-actions 10 6 850 694 4 851 816 Share capital
Bons de souscription 10 469 243 483 428 Warrants
Surplus d’apport 11 30 608 685 30 130 584 Contributed surplus
Déficit (35 480 232) (34 754 722) Deficit
Total des capitaux propres 2 448 390 711 106 Total equity Total des passifs et des capitaux
propres 2 644 938 915 830 Total liabilities and equity
Continuité de l’exploitation / Going concern (Note 1) Événements subséquents / Subsequent events (Note 17)
Les notes annexes font partie intégrante des présents états financiers consolidés. / The accompanying notes are an integral part of these consolidated financial statements.
Approuvé par le conseil d’administration (S) Michael Ferreira
Michael Ferreira
Président et chef de la direction / President and Chief Executive Officer
Approved by the Board of Directors (S) Sylvain Champagne
Sylvain Champagne
Chef de la direction financière / Chief Financial Officer