Enhanced Investments - Financial Portal

Published: 2022-11-10

Exhibit 99.1
		Page
			Interim Condensed Consolidated Statements of Financial Position as at September 30, 2022 and December 31, 2021	F-2
			Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and 2021
	F-3
			Interim Condensed Consolidated Statements of Changes in Equity (Deficit) for the three and nine months ended September 30, 2022 and 2021
	F-4
			Interim Condensed Consolidated Statements of Cash Flows for the three and nine months ended September 30, 2022 and 2021
	F-6
			Notes to the Interim Condensed Consolidated Financial Statements	F-7

	Mogo Inc.
Interim Condensed Consolidated Statements of Financial Position
	(Unaudited)
		(Expressed in thousands of Canadian Dollars)
			September 30,	December 31,
			2022	2021
					Assets
					Cash and cash equivalent	35,344	69,208
					Digital assets		747	1,718
					Loans receivable, net		58,410	55,832
					Prepaid expenses, and other receivables and assets	14,650	10,302
					Investment portfolio		13,792	18,088
					Investment accounted for using the equity method		56,131	103,821
					Property and equipment		1,259	1,186
					Right-of-use assets	2,898	3,430
					Intangible assets		48,772	52,304
					Derivative financial assets		—	7,866
					Goodwill	70,112	70,112
					Total assets	302,115	393,867
					Liabilities
					Accounts payable, accruals and other	21,382	20,783
					Lease liabilities	3,423	3,948
					Credit facility		47,790	44,983
					Debentures		39,692	39,794
					Derivative financial liabilities		1,798	12,688
					Deferred tax liability	1,584	1,894
					Total liabilities	115,669	124,090
					Equity
					Share capital		391,809	392,628
					Contributed surplus	32,295	24,486
					Revaluation reserve	5		—	468
					1,342		458
					Deficit	(239,000)	(148,263)
					Total equity	186,446	269,777
					Total equity and liabilities	302,115	393,867
					Approved on Behalf of the Board
					Signed by “Greg Feller” , Director
					Signed by “Christopher Payne” , Director
					The accompanying notes are an integral part of these interim condensed consolidated financial statements.
F-2

	Mogo Inc.
		Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
	(Unaudited)
(Expressed in thousands of Canadian Dollars, except per share amounts) Three months endedNine months ended
September 30,					September 30,		September 30,	September 30,
			2022		2021	2022	2021
								RevenueSubscription and services
				10,405		9,487	31,398	23,707
								6,852		5,952	20,405	16,817
									17,257		15,439	51,803	40,524
								Cost of revenueProvision for loan losses, net of recoveries
			4,418		2,143	11,506	4,452
								2,004		1,118	5,800	2,327
								6,422		3,261	17,306	6,779
								10,835		12,178	34,497	33,745
								Operating expensesTechnology and development
				3,186		2,082	9,834	7,786
								2,061		4,735	10,173	11,400
								3,446		4,043	11,050	9,626
								4,941		4,756	15,916	12,392
								Stock-based compensation	1,691		2,877	7,877	7,765
								Depreciation and amortization	3,144		3,665	9,470	9,054
								Total operating expenses	18,469		22,158	64,320	58,023
								(7,634)		(9,980)	(29,823)	(24,278)
								Other expenses (income)Credit facility interest expense
			1,305		1,028	3,277	3,028
								Debenture and other financing expense	789		1,005	2,446	2,827
								Accretion related to debentures and convertible debentures
			9	313		314	934							935
								Share of loss in investment accounted for using the equity method
			6,612		2,495	20,941	5,354
								Revaluation loss (gain)	2,146		(5,376)	4,395	(35,488)
								Impairment of investment accounted for using the equity method
			15	—		—	26,749							—
								Other non-operating expense	1,287		357	2,421	2,623
								12,452		(177)	61,163	(20,721)
								(20,086)		(9,803)	(90,986)	(3,557)
								Income tax (recovery) expense	(90)		10	(249)			28
								(19,996)		(9,813)	(90,737)	(3,585)
								Other comprehensive income:Items that will not be reclassified subsequently to profit or loss:Unrealized revaluation gain (loss) on digital assets
			5	—		371	(468)							397
								Items that are or may be reclassified subsequently to profit or loss:Foreign currency transaction reserve gain (loss)
				106		(29)	884							331
								Other comprehensive income	106		342	416			728
								(19,890)		(9,471)	(90,321)	(2,857)
								Net loss per shareBasic loss per share
				(0.26)		(0.14)	(1.19)	(0.06)
								(0.26)		(0.14)	(1.19)	(0.06)
								Weighted average number of basic common shares (in 000s)
				75,953		69,898	76,463	59,905
								Weighted average number of fully diluted common shares (in 000s)
				75,953		69,898	76,463	59,905
								The accompanying notes are an integral part of these interim condensed consolidated financial statements.
F-3

	Mogo Inc.
Interim Condensed Consolidated Statements of Changes in Equity (Deficit)
	(Unaudited)
		(Expressed in thousands of Canadian Dollars, except share amounts)
			Number of			Foreign
			shares, net			currency
			of treasury	Share	Contributed				Revaluation	translation
			shares (000s)	capital	surplus		reserve	reserve	Deficit	Total
							Balance, December 31, 2021	76,391	392,628	24,486		468	458	(148,263)	269,777
							Net loss		—	—	—			—	—	(90,737)	(90,737)
							Purchase of common shares for cancellation (Note 19a)
									(800)	(955)	—			—	—	—	(955)
							Forfeiture of common shares		(3)	—	—			—	—	—				—
							Foreign currency translation reserve		—	—	—			—	884	—	884
							Revaluation reserve (Note 5)		—	—	—			(468)	—	—	(468)
							Stock-based compensation (Note 19c)		—	—	7,877			—	—	—	7,877
							Options and restricted share units (“RSUs”) exercised or converted
									62	136	(68)			—	—	—				68
							Balance, September 30, 2022	75,650	391,809	32,295		—	1,342	(239,000)	186,446
			Number of			Foreign
			shares, net of			currency
			treasury	Share	Contributed				Revaluation	translation
			shares (000s)	capital	surplus		reserve	reserve	Deficit	Total
							Balance, June 30, 2022	75,650	391,809	30,604		—	1,236	(219,004)	204,645
							Net loss		—	—							—	—	—	(19,996)	(19,996)
							Foreign currency translation reserve		—	—							—	—	106	—	106
							Stock-based compensation (Note 19c)		—	—	1,691			—	—	—	1,691
							Balance, September 30, 2022	75,650	391,809	32,295		—	1,342	(239,000)	186,446
							The accompanying notes are an integral part of these interim condensed consolidated financial statements.
F-4

	Mogo Inc.
Interim Condensed Consolidated Statements of Changes in Equity (Deficit)
	(Unaudited)
		(Expressed in thousands of Canadian Dollars, except share amounts)
			Number of			Foreign
			shares, net			currency
			of treasury	Share	Contributed					Revaluation	translation
			shares (000s)	capital	surplus			reserve	reserve	Deficit	Total
								Balance, December 31, 2020	32,731	106,730	13,560				—	—	(115,054)	5,236
								Net loss		—	—		—				—	—	(3,585)	(3,585)
								Treasury shares reserve (Note 19b)		(304)	(2,364)	—				—	—	—	(2,364)
								Foreign currency translation reserve		—	—		—				—	331	—	331
								Revaluation reserve (Note 5)		—	—		—				397	—	—	397
								Stock-based compensation (Note 19c & Note 19e)
										—	—		7,765				—	—	—	7,765
								Options and RSUs exercised or converted		796	2,676	(1,141)				—	—	—	1,535
								Shares issued – ATM arrangement, net	1,525	16,955	—				—	—	—	16,955
								Shares issued – Bought deal financing	5,347	47,122	47,122
								Shares issued on acquisition of Carta	10,000	54,800	—				—	—	—	54,800
								Shares issued on acquisition of Moka	4,634	47,207	—				—	—	—	47,207
								Shares issued – Replacement awards		366	—		—				—	—	—		—
								Shares issued on acquisition of Fortification		75	396		—				—	—	—	396
								Shares issued on investment accounted for using the equity method
			8,267	77,779	—							—	—	77,779
							—
								Shares issued – Convertible debentures	3,179	8,783	—				—	—	—	8,783
								Equity settled share-based payment		17	164		—				—	—	—	164
								Warrants issued for broker services (Note 19e)
										—	—		1,410				—	—	—	1,410
								Warrants exercised (Note 19e)	3,605	8,145	(1,795)				—	—	—	6,350
								Balance, September 30, 2021	70,238	368,393	19,799				397	331	(118,639)	270,281
			Number of			Foreign
			shares, net			currency
			of treasury	Share	Contributed					Revaluation	translation
			shares (000s)	capital	surplus			reserve	reserve	Deficit	Total
								Balance, June 30, 2021	68,803	355,994	30,928				26	360	(108,826)	278,482
								Net loss		—	—		—				—	—	(9,813)	(9,813)
								Treasury shares reserve (Note 19b)		(304)	(2,364)	—				—	—	—	(2,364)
								Foreign currency translation reserve		—	—		—				—	(29)	—		(29)
								Revaluation reserve (Note 5)		—	—		—				371	—	—	371
								Stock-based compensation (Note 19c & Note 19e)
										—	—		2,877				—	—	—	2,877
								Options and RSUs exercised or converted		30	52		(20)				—	—	—		32
								Shares issued – ATM arrangement, net		—	109		—				—	—	—	109
								Shares issued on acquisition of Fortification		75	396		—				—	—	—	396
								Shares issued on investment accounted for using the equity method
			1,526	13,901	(13,901)							—	—	—	—
								Equity settled share-based payment		—	—		—				—	—	—		—
								Warrants exercised (Note 19e)		108	305		(85)				—	—	—	220
								Balance, September 30, 2021	70,238	368,393	19,799				397	331	(118,639)	270,281
								The accompanying notes are an integral part of these interim condensed consolidated financial statements.
F-5

	Mogo Inc.
		Interim Condensed Consolidated Statements of Cash Flows
	(Unaudited)
			(Expressed in thousands of Canadian Dollars)
Three months endedNine months ended
September 30,							September 30,	September 30,	September 30,
					Cash provided by (used in) the following activities:	Note	2022	2021	2022	2021
					Operating activitiesNet loss
		(19,996)	(9,813)	(90,737)	(3,585)
					Items not affecting cash:Depreciation and amortization
						6,7	3,144	3,665	9,470	9,054
					Provision for loan losses	4	4,570	2,357	12,001	5,179
					Credit facility interest expense	8	1,305	1,028	3,277	3,028
					Debenture and other financing expense	9,20	789	1,004	2,446	2,828
					Accretion related to debentures and convertible debentures
						9	313	314						934	935
					Share of loss in investment using the equity method	15	6,612	2,495	20,941	5,354
					Stock-based compensation expense	19c	1,691	2,877	7,877	7,765
					Revaluation loss (gain)	14	2,146	(5,376)	4,395	(35,488)
					Impairment of investment using the equity method	15					—	—	26,749						—
					Other non-operating expense	1,100										—	1,177			490
					Income tax (recovery) expense	(90)										—	(249)			—
		1,584	(1,449)	(1,719)	(4,440)
					Changes in:Net issuance of loans receivable
		(4,148)	(6,564)	(14,579)	(10,619)
					Prepaid expenses, and other receivables and assets						61	(532)	(4,261)	(1,112)
					Accounts payable, accruals and other	(1,034)	1,499						298	307
					Cash used in operating activities	(3,537)	(7,046)	(20,261)	(15,864)
					Interest paid	(1,847)	(1,863)	(5,470)	(5,670)
					Income taxes paid	(13)										—	(60)	—
					Net cash used in operating activities	(5,397)	(8,909)	(25,791)	(21,534)
					Investing activitiesCash (invested) acquired upon acquisition of subsidiary
											—	(1,131)						—	689
					Proceeds from sale of investment						—	253						—	4,878
					Cash invested in investment portfolio	17					—	(1,263)	(1,837)	(3,057)
					Cash invested in investment using the equity method						—	—	—	(32,396)
					Purchases of property and equipment	6	(64)	(217)	(406)	(390)
					Investment in digital assets	5					—	—	—	(1,250)
					Investment in intangible assets	7	(1,814)	(2,884)	(6,251)	(5,106)
					Net cash used in investing activities	(1,878)	(5,242)	(8,494)	(36,632)
					Financing activitiesLease liabilities – principal payments
		(180)	(155)	(525)	(494)
					Repayments on debentures	9	(532)	(516)	(1,503)	(1,527)
					Advances on credit facility	8					—	4,359	2,548	4,190
					Proceeds from issuance of common shares, net						—	109						—	80,925
					Repurchase of common shares	19a					—	—	(955)						—
					Proceeds from exercise of warrants						—	220						—	6,350
					Proceeds from exercise of options						—	32	74	1,535
					Net cash (used in) provided by financing activities	(712)	4,049	(361)	90,979
					Effect of exchange rate fluctuations on cash and cash equivalents
		(232)	274						782	646
					Net (decrease) increase in cash and cash equivalent	(8,219)	(9,828)	(33,864)	33,459
					Cash and cash equivalent, beginning of period	43,563	55,406	69,208	12,119
					Cash and cash equivalent, end of period	35,344	45,578	35,344	45,578
					The accompanying notes are an integral part of these interim condensed consolidated financial statements.
F-6

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			1.	Nature of operations
				Mogo Inc. (“Mogo” or the "Company") was continued under the Business Corporations Act (British Columbia) on June 21, 2019 in connection with the combination with Mogo Finance Technology Inc. The address of the Company's registered office is Suite 1700, Park Place, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8. The Company’s common shares (the “Common Shares”) are listed on the Toronto Stock Exchange (“TSX”) and the Nasdaq Capital Market under the symbol “MOGO”.
				Mogo, one of Canada’s leading financial technology companies, is empowering its 2 million members with simple digital solutions to help them get in control of their financial health while also making a positive impact with their money. Through the free Mogo app, consumers can access a digital spending account with the Mogo Visa* Platinum Prepaid Card featuring automatic carbon offsetting, get free monthly credit-score monitoring and ID fraud protection, and access personal loans and mortgages. Mogo’s new MogoTrade app offers commission-free stock trading that helps users make a positive impact with every investment and together with Moka, Mogo’s wholly-owned subsidiary, is bringing automated, fully-managed flat-fee investing to Canadians, forms the heart of Mogo’s digital wealth platform. Mogo’s wholly-owned subsidiary, Carta Worldwide, offers a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe, North America and APAC. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).
			2.	Basis of presentation
				Statement of compliance
				These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standards ("IAS") 34, Interim Financial Reporting. The policies applied in these interim condensed consolidated financial statements were based on IFRS issued and outstanding at September 30, 2022.
				The Company presents its interim condensed consolidated statements of financial position on a non-classified basis in order of liquidity.
				These interim condensed consolidated financial statements were authorized by the Board of Directors (the “Board”) to be issued on November 10, 2022.
				These interim condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the payment of liabilities in the ordinary course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due in the normal course.
				Management routinely plans future activities which includes forecasting future cash flows. Management has reviewed their plan and has collectively formed a judgment that the Company has adequate resources to continue as a going concern for the foreseeable future, which management has defined as being at least the next 12 months. In arriving at this judgment, management has considered the following: (i) cash flow projections of the Company, which incorporates a rolling forecast and detailed cash flow modeling through the next 12 months from the date of these interim condensed consolidated financial statements, and (ii) the base of investors and debt lenders historically available to the Company. The expected cash flows have been modeled based on anticipated revenue and profit streams with debt programmed into the model. Refer to Notes 8, 9, and 18 for details on amounts that may come due in the next 12 months.
				For these reasons, the Company continues to adopt a going concern basis in preparing the interim condensed consolidated financial statements.
		F-7

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			2.	Basis of presentation (Continued from previous page)
				Functional and presentation currency
				These interim condensed consolidated financial statements are presented in Canadian dollars. The functional currency of each subsidiary is determined based on the currency of the primary economic environment in which that subsidiary operates. The functional currency of each subsidiary that is not in Canadian dollars is as follows: Carta Financial Services Ltd. (GBP), Carta Solutions Processing Services (Cyprus) Ltd. (EUR), Carta Solutions Processing Services Corp. (MAD), Carta Solutions Singapore PTE. Ltd. (SGD), Carta Americas Inc. (USD), Moka Financial Technologies Europe (EUR), Tactex Asset Management Inc. (EUR), and Tactex Advisors Inc. (USD).
			3.	Significant accounting policies
				The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2021.
				Significant accounting judgements, estimates and assumptions
				The preparation of the interim condensed consolidated financial statements requires management to make estimates, assumptions and judgments that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amount of revenues and expenses during the period. The critical accounting estimates and judgments have been set out in the notes to the Company’s consolidated financial statements for the year ended December 31, 2021.
				COVID-19 Pandemic
				The overall impact of the pandemic continues to be uncertain and is dependent on actions taken by the Canadian government, businesses, and individuals to limit spread of the COVID-19 virus, as well as governmental economic response and support efforts. The Company has taken into consideration the economic impact of the COVID-19 pandemic and the significant economic volatility and uncertainty it has created when making estimates and assumptions in preparation of the interim condensed consolidated financial statements. Other than the impact on measurement of allowance for loan losses and fair valuation of our investment portfolio, there are no material accounting impacts from uncertainties surrounding the COVID-19 pandemic. For information on the Company’s allowance for loan losses and measurement of fair value, refer to Note 4 and Note 17, respectively.
				New and amended standards and interpretations
				Certain new or amended standards and interpretations became effective on January 1, 2022, but do not have an impact on the interim condensed consolidated financial statements of the Company. The Company has not adopted any standards or interpretations that have been issued but are not yet effective.
		F-8

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			4.	Loans receivable
				Loans receivable represent unsecured installment loans and lines of credit advanced to customers in the normal course of business. Current loans are defined as loans to customers with terms of one year or less, while non-current loans are those with terms exceeding one year. The breakdown of the Company’s gross loans receivable as at September 30, 2022 and December 31, 2021 are as follows:
					As at
						September 30,	December 31,
					2022	2021
				Current (terms of one year or less)			71,310	65,397
				Non-current (terms exceeding one year)	257			248
							71,567	65,645
				The following table provides a breakdown of gross loans receivable and allowance for loan losses by aging bucket, which represents our assessment of credit risk exposure and by their IFRS 9 – Financial Instruments expected credit loss measurement stage. The entire loan balance of a customer is aged in the same category as its oldest individual past due payment, to align with the stage groupings used in calculating the allowance for loan losses under IFRS 9. Stage 3 gross loans receivable include net balances outstanding and still anticipated to be collected for loans previously charged off and these are carried in gross receivables at the net expected collectable amount with no associated allowance.
							As at September 30, 2022
				Risk Category					Days past due	Stage 1	Stage 2	Stage 3	Total
				Strong					Not past due	56,375	—	—	56,375
				Lower risk					1-30 days past due	3,084	—	—	3,084
				Medium risk					31-60 days past due		—	1,416	—	1,416
				Higher risk					61-90 days past due		—	1,172	—	1,172
				Non-performing					91+ days past due or bankrupt		—	—	9,520	9,520
									Gross loans receivable	59,459	2,588	9,520	71,567
									Allowance for loan losses	(5,876)	(1,457)	(5,824)	(13,157)
									Loans receivable, net	53,583	1,131	3,696	58,410
		F-9

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			4.	Loans receivable (Continued from previous page)
					As at December 31, 2021
				Risk Category		Days past due	Stage 1	Stage 2	Stage 3	Total
				Strong		Not past due	54,067		—	—	54,067
				Lower risk		1-30 days past due	2,797		—	—	2,797
				Medium risk		31-60 days past due					—	1,284		—	1,284
				Higher risk		61-90 days past due					—	798		—		798
				Non-performing		91+ days past due or bankrupt					—	—	6,699	6,699
						Gross loans receivable	56,864	2,082		6,699	65,645
						Allowance for loan losses	(5,291)	(1,119)	(3,403)	(9,813)
						Loans receivable, net	51,573	963		3,296	55,832
				In determination of the Company’s allowance for loan losses, internally developed models are used to factor in credit risk related metrics, including the probability of defaults, the loss given default and other relevant risk factors. Management also considered the impact of key macroeconomic factors and determined that historic loan losses are most correlated with unemployment rate, inflation rate, bank prime rate and GDP growth. These macroeconomic factors were used to generate various forward-looking scenarios used in the calculation of allowance for loan losses. If management were to assign 100% probability to a pessimistic scenario forecast, the allowance for credit losses would have been $1,406 higher than the reported allowance for credit losses as at September 30, 2022 (December 31, 2021 – $705 higher).
				Allowance for loan losses	Three months ended				Nine months ended
	September 30,						September 30,		September 30,	September 30,
		2022						2021	2022	2021
				Balance, beginning of period	12,048						8,239	9,813	8,886
				Provision for loan losses Originations
		541						715	1,832	1,617
				Repayments	(220)						(238)	(703)					(445)
				Re-measurement	4,249						1,880	10,872	4,007
				Charge offs	(3,461)						(2,002)	(8,657)	(5,471)
				Balance, end of period	13,157						8,594	13,157	8,594
				The provision for loan losses in the interim condensed consolidated statements of operations and comprehensive income (loss) is recorded net of recoveries for the three and nine months ended September 30, 2022 of $152 and $495, respectively (September 30, 2021 – $214 and $727, respectively).
		F-10

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			5.	Digital assets
				Digital assets represent investments in cryptocurrencies which the company expects to hold for the foreseeable future. The following table summarizes the Company’s digital assets as at September 30, 2022:
Cumulative
	Average						Fair	Total fair	Historical	revaluation
	cost per	value per						value	cost	gain (loss)
					Quantities	unit	unit	($000s)	($000s)	($000s)
				Bitcoin (BTC)						17.82 $ 42,079 $ 26,875 $	479 $	750 $	(271)
				Ethereum (ETH)	145.99	3,425					1,837			268	500	(232)
											747	1,250	(503)
				During the three and nine months ended September 30, 2022, the Company recorded a revaluation loss on digital assets in other comprehensive income of $nil and $468, respectively (September 30, 2021 – gain of $371 and $397, respectively).
				During the three and nine months ended September 30, 2022, the Company recorded a revaluation gain on digital assets of $116 and loss on digital assets $503, respectively, in net loss (September 30, 2021 – $nil and loss of $92, respectively).
				As at September 30, 2022, the carrying value of the Company’s digital assets held was $747 (December 31, 2021 – $1,718).
			6.	Property and equipment
		Computer						Furniture	Leasehold
		equipment						and fixtures	improvements				Total
				CostBalance, December 31, 2020
							2,083				1,180	2,055	5,318
				Additions			462		2			—	464
				Additions through business combinations			298				31	—	329
				Effects of movement in exchange rate			(20)				(1)	—	(21)
				Balance, December 31, 2021			2,823				1,212	2,055	6,090
				Additions			440				—	—	440
				Effects of movement in exchange rate			(18)				—	—	(18)
				Balance, September 30, 2022			3,245				1,212	2,055	6,512
				Accumulated depreciationBalance, December 31, 2020
							1,547				824	2,055	4,426
				Depreciation			400				78	—	478
				Balance, December 31, 2021			1,947				902	2,055	4,904
				Depreciation			297				52	—	349
				Balance, September 30, 2022			2,244				954	2,055	5,253
				Net book valueBalance, December 31, 2021
							876				310	—	1,186
				Balance, September 30, 2022			1,001				258	—	1,259
				Depreciation of $122 and $349 for the three and nine months ended September 30, 2022, respectively (September 30, 2021 – $136 and $350, respectively) for property and equipment is included in depreciation and amortization.

		F-11

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			7.	Intangible assets
					Internally	Internally			Acquired
					generated–	generated–in progress	Software		technology	Customer		Regulatory
					completed	licenses		assets	relationships	Brand	licenses	Total
			CostBalance, December 31, 2020
					39,504	1,529	3,356		—					—	—	—	44,389
			Additions		1,200	6,303	—		—					—	—	—							7,503
			Additions through a business combination
										—	—	628				21,000	8,900 1,000	6,800	38,328
			Impairment							—	(898)	—				—				—	—	—		(898)
			Transfers		3,936	(3,936)	—		—					—	—	—							—
			Effects of movement in exchange rate
										—	—	(8)				—				—	—	—		(8)
			Balance, December 31, 2021		44,640	2,998	3,976		21,000	8,900 1,000		6,800	89,314
			Additions		195	6,066	—		—					—	—	—							6,261
			Impairment		(3,064)	—	—		—					—	—	—	(3,064)
			Transfers		3,360	(3,360)	—		—					—	—	—							—
			Effects of movement in exchange rate
										—	—	(27)				—				—	—	—		(27)
			Balance, September 30, 2022		45,131	5,704	3,949		21,000	8,900 1,000		6,800	92,484
			Accumulated amortizationBalance, December 31, 2020
					22,231	—	3,246		—					—	—	—	25,477
			Amortization		7,279	—	218		1,722	1,427	—					887	11,533
			Balance, December 31, 2021		29,510	—	3,464		1,722	1,427	—					887	37,010
			Amortization		5,155	—	118		1,575	799	—	1,020	8,667
			Impairment		(1,965)	—	—		—					—	—	—	(1,965)
			Balance, September 30, 2022		32,700	—	3,582		3,297	2,226	—	1,907	43,712
			Net book valueBalance, December 31, 2021
					15,130	2,998	512		19,278	7,473 1,000		5,913	52,304
			Balance, September 30, 2022		12,431	5,704	367		17,703	6,674 1,000		4,893	48,772
				Amortization of intangible assets of $2,899 and $8,667 for the three and nine months ended September 30, 2022, respectively (September 30, 2021 – $3,319 and $8,152, respectively) is included in depreciation and amortization.
				An impairment charge of $1,099 was recognized in other non-operating expense for the three and nine months ended September 30, 2022 related to MogoCrypto intangible assets.
		F-12

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			8.	Credit facility
				The credit facility consists of a $60,000 senior secured credit facility maturing on July 2, 2025. The credit facility is subject to variable interest rates that reference to 1 month USD LIBOR, or under certain conditions, the Federal Funds Rate in effect. Interest on advance is payable at 1 month USD LIBOR plus 8% with no LIBOR floor. There is a 0.33% fee on the available but undrawn portion of the $60,000 facility. The principal and interest balance outstanding for the credit facility as at September 30, 2022 was $47,790 (December 31, 2021 – $44,983).
				The credit facility is subject to certain covenants and events of default. As at September 30, 2022, the Company was in compliance with these covenants. Interest expense on the credit facility is included in credit facility interest expense in the interim condensed consolidated statements of operations and comprehensive income (loss).
				The Company has provided its senior lenders with a general security interest in all present and after acquired personal property of the Company, including certain pledged financial instruments, cash and cash equivalents.
			9.	Debentures
				On September 30, 2020, the Company and its debenture holders approved certain amendments to the terms of
				the debentures, with an effective date of July 1, 2020. Among other things, the amendments include:
				i)	a reduction in the weighted average coupon interest rate, from approximately 14% to approximately 7% and the extension of the maturity date for 50% of the principal balance to January 31, 2023, and the remainder to January 31, 2024;
				ii)	replacement of the former monthly interest payable by a new quarterly payment (the “Quarterly
					Payment”), the amount of which is fixed at 12% per annum (3% per quarter) of the principal balance of
					the debentures as at September 29, 2020. Debenture holders received an election to either receive the
					Quarterly Payment as a) an interest payment of 8% per annum (2% per quarter) with the remainder of the
					payment going towards reducing the principal balance of the debenture, or b) a reduction of the principal
					balance of the debenture equal to the amount of the Quarterly Payment;
				iii) settlement of the new Quarterly Payment on the first business day following the end of a calendar quarter
					at the Company’s option either in cash or Common Shares; and
				iv)	an option for all debenture holders to receive a lump-sum payout of their previously unpaid interest for the
					period from March 1, 2020 to June 30, 2020, at a reduced interest rate of 10%. Those who elected this
					option were paid in Common Shares in October 2020 subsequent to the end of the quarter.
				On October 7, 2020, Mogo issued 4,479,392 warrants (the “Debenture Warrants”) to its debenture holders in
				connection with the debenture amendments approved on September 30, 2020, at an exercise price of $2.03 per
				Common Share. The Debenture Warrants are exercisable at any time until December 31, 2022. As at September
				30, 2022, 3,295,377 Debenture Warrants have been exercised and converted into Common Shares for cash
				proceeds of $6,686. As at September 30, 2022, 1,184,015 Debenture Warrants remain outstanding and
				exercisable.
		F-13

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			9.	Debentures (Continued from previous page)
				The Company’s debentures balance includes the following:
					As at
						September 30,	December 31,
					2022		2021
				Principal balance				40,277	41,375
				Discount				(1,319)	(2,323)
								38,958	39,052
				Interest payable	734		742
								39,692	39,794
				The debenture principal repayments will be made according to the following schedule and are payable in either cash or Common Shares at Mogo’s option:
									Principal
									component of
									quarterly	Principal due on
									payment	maturity	Total
				2022					565	—		565
				2023					3,333	16,911	20,244
				2024					952	18,516	19,468
									4,850	35,427	40,277
			10.	Derivative financial liabilities
				On February 24, 2021, in connection with a registered direct offering, the Company issued stock warrants to investors to purchase up to an aggregate of 2,673,268 Common Shares at an exercise price of US$11.00 at any time prior to three and a half years following the date of issuance.
				On December 13, 2021, as part of a registered direct offering, the Company issued stock warrants to investors to purchase up to an aggregate of 3,055,556 Common Shares at an exercise price of US$4.70 at any time prior to three and a half years following the date of issuance.
				The stock warrants are classified as a liability under IFRS by the sole virtue of their exercise price being denominated in USD. As such, the warrants are subject to revaluation under the Black Scholes model at each reporting date, with gains and losses recognized to the interim condensed consolidated statements of operations and comprehensive income (loss). The stock warrants are classified as a derivative liability, and not equity, due to the exercise price being denominated in USD, which is different than the Company's functional currency.
		F-14

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			10.	Derivative financial liabilities (Continued from previous page)
				In the event that these warrants are fully exercised, the Company would receive cash proceeds of US$43,767, with the balance of the liability reclassified to equity at that time. If the warrants were to expire unexercised, then the liability would be extinguished through a gain in the interim condensed consolidated statements of operations and comprehensive income (loss).
					As at
						September 30,	December 31,
					2022		2021
				Balance, beginning of period				12,688	—
				Stock warrants issued	—	23,986
				Change in fair value due to revaluation of derivative financial liabilities				(11,196)	(11,276)
				Change in fair value due to foreign exchange	306		(22)
				Balance, end of period	1,798	12,688
				The change in fair value due to revaluation of derivative financial liabilities for the three and nine months ended September 30, 2022 was a gain of $90 and $11,196, respectively (September 30, 2021 – gain of $7,133 and $8,953, respectively). Change in fair value due to foreign exchange for the three and nine months ended September 30, 2022 was a loss of $145 and $306, respectively (September 30, 2021 – loss of $271 and $14, respectively).
				Details of the derivative financial liabilities as at September 30, 2022 are as follows:
						Warrants
						outstanding and	Weighted
						exercisable	average
					(000s)	exercise price $
				Balance, December 31, 2021	5,729		9.69
				Warrants issued	—		—
				Balance, September 30, 2022	5,729		9.69
				The 5,728,824 warrants outstanding noted above have expiry dates of August 2024 and June 2025.
				The fair value of the warrants outstanding was estimated using the Black-Scholes option pricing model with the following assumptions:
					As at
						September 30,	December 31,
					2022		2021
				Risk-free interest rate		4.22 - 4.25%	0.97%
				Expected life		1.9 - 2.7 years	2.7 - 3.5 years
				Expected volatility in market price of shares		109 - 116%	102 - 109%
				Expected dividend yield	0%		0%
				Expected forfeiture rate	0%		0%
		F-15

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			11.	Geographic information
				(a)	Revenue
				Revenue presented below has been based on the geographic location of customers.
		Three months ended				Nine months ended
	September 30,						September 30,		September 30,	September 30,
		2022						2021	2022				2021
				Canada	15,550						13,067	46,318	34,974
				Europe	1,521						2,080	4,942	5,094
				Other	186						292	543		456
				Total	17,257						15,439	51,803	40,524
				(b)	Non-current assets
				Non-current assets presented below has been based on geographic location of the assets.
											As at
									September 30,	December 31,
						2022				2021
				Canada		191,580	255,315
				Europe		449				609
				Other		935				883
				Total		192,964	256,807
			12.	Expense by nature and function
				The following table summarizes the Company’s operating expenses by nature:
		Three months ended				Nine months ended
	September 30,						September 30,		September 30,	September 30,
		2022						2021	2022				2021
				Personnel expense	6,688						6,792	22,868	18,993
				Marketing	1,886						2,703	9,478	7,065
				Depreciation and amortization	3,144						4,381	9,470	10,471
				Stock-based compensation	1,691						3,665	7,877	9,054
				Hosting and software licenses	1,737						1,190	4,895	2,820
				Professional services	752						579	2,605	1,635
				Insurance and licenses	858						1,009	2,319	2,936
				Credit verification costs	541						329	1,363		756
				Premises	323						642	898	1,710
				Others	849						868	2,547	2,583
				Total	18,469						22,158	64,320	58,023
		F-16

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			12.	Expense by nature and function (Continued from previous page)
				The following table summarizes the Company’s operating expenses by function including stock-based compensation and depreciation and amortization:
		Three months ended			Nine months ended
	September 30,					September 30,		September 30,	September 30,
		2022					2021	2022	2021
				Technology and development	6,819					5,986	21,251	17,463
				Marketing	2,101					4,936	10,377	12,168
				Customer service and operations	3,858					4,798	12,775	11,351
				General and administration	5,691					6,438	19,917	17,041
				Total	18,469					22,158	64,320	58,023
			13.	Revaluation losses (gains)
		Three months ended			Nine months ended
	September 30,					September 30,		September 30,	September 30,
		2022					2021	2022				2021
				Change in fair value due to revaluation of derivative financial asset
		894					982	7,866	(23,826)
				Change in fair value due to revaluation of derivative financial liabilities
		(90)					(7,133)	(11,196)	(8,953)
				Realized gain on investment portfolio	—					(170)			—	(2,630)
				Unrealized loss (gain) on investment portfolio
		1,853					1,085	6,780	(339)
				Unrealized (gain) loss on digital assets	(116)					—	503				92
				Unrealized exchange (gain) loss	(395)					(140)	442				168
					2,146					(5,376)	4,395	(35,488)
			14.	Other non-operating expenses
		Three months ended			Nine months ended
	September 30,					September 30,		September 30,	September 30,
		2022					2021	2022				2021
				Credit facility prepayment and related expenses
		—					—			—	(5)
				Government grants	(1)					(129)	(92)	(1,337)
				Direct offering transaction costs allocated to derivative financial liabilities
		—					—			—	1,466
				Acquisition costs, restructuring and other
		1,288					486	2,513	2,499
					1,287					357	2,421	2,623
		F-17

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			15.	Investment accounted for using the equity method
				During the year ended December 31, 2021, the Company completed its strategic investment in Coinsquare Ltd. (“Coinsquare”), one of Canada’s leading digital asset trading platforms, pursuant to which Mogo acquired 12,518,473 Coinsquare common shares, representing an approximately 38% ownership interest in Coinsquare.
				Share of loss in investment accounted for using the equity method was $6,612 and $20,941 for the three and nine months ended September 30, 2022 (September 30, 2021 – $2,495 and 5,354, respectively).
				As at June 30, 2022, the Company identified indicators of impairment related to the Company’s investment in Coinsquare, which has been accounted for using the equity method. Coinsquare experienced lower trading volumes amidst the recent broader cryptocurrency and equity market declines in the period. The Company assessed the carrying value of the investment against the estimated recoverable amount that was determined using a market approach. The estimated recoverable amount of the investment in Coinsquare was $62,743 as at June 30, 2022. As a result of this assessment, as at June 30, 2022, the Company recognized an impairment on its equity method investment in the amount of $26,749 (September 30, 2021 – $nil). No additional impairment related to the Company's investment in Coinsquare was recognized as at September 30, 2022.
				Subsequent to quarter-end, Coinsquare Capital Markets Ltd. (“CCML”), a wholly-owned subsidiary of Coinsquare, became an IIROC Dealer Member. MogoTrade Inc. (“MTI”), a wholly-owned subsidiary of Mogo, is also an IIROC Dealer Member. Pursuant to IIROC Rule 2206, MTI and CCML are related companies because Mogo has an ownership interest of at least 20% in each of them and each is responsible for and must guarantee the other’s obligations to its clients in an amount equal to Mogo’s ownership percentage multiplied by its regulatory capital. This guarantee would only be triggered in the event of an insolvency of the related IIROC Dealer Member. As such, in the event of CCML’s insolvency, MTI would be responsible for guaranteeing CCML’s obligations to its clients up to the amount of MTI’s regulatory capital. As at September 30, 2022, MTI had regulatory capital of $4,173.
			16.	Derivative financial assets
				As part of the Company’s investment in Coinsquare, the Company obtained warrants to acquire 7,240,665 additional Coinsquare common shares (the “Coinsquare Warrant”) through treasury at an exercise price of $8.29 per share, subject to certain conditions and payable by Mogo at least 50% in cash and the remainder in Common Shares.
				The Coinsquare Warrant was classified as a derivative financial asset on the statements of financial position, fair valued using the Black-Scholes valuation model at initial recognition, and subsequently remeasured to fair value as at each reporting date. Any change in the fair value of these derivative financial assets is recognized to revaluation gains (losses) in the interim condensed consolidated statements of operations and comprehensive income (loss).
				The Coinsquare Warrant expired unexercised on October 16, 2022.
					As at
						September 30,	December 31,
					2022		2021
				Balance, beginning of period	7,866		—
				Additions	—	11,591
				Change in fair value due to revaluation of derivative financial assets				(7,866)	1,788
				Exercised	—	(5,513)
				Balance, end of period	—	7,866
		F-18

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			17.	Fair value of financial instruments
				The fair value of a financial instrument is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants which takes place in the principal (or most advantageous) market at the measurement date. The fair value of a liability reflects its non-performing risk. Assets and liabilities recorded at fair value in the interim condensed consolidated statements of financial position are measured and classified in a hierarchy consisting of three levels for disclosure purposes. The three levels are based on the priority of the inputs to the respective valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An asset or liability's classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are defined as follows:
					Level 1: Unadjusted quoted prices in an active market for identical assets and liabilities.
					Level 2: Quoted prices in markets that are not active or inputs that are derived from quoted prices of similar (but not identical) assets or liabilities in active markets.
					Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the estimated fair value of the assets or liabilities.
				(a)	Valuation process
				The Company maximizes the use of quoted prices from active markets, when available. A market is regarded as active if transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Where independent quoted market prices are not available, the Company uses quoted market prices for similar instruments, other third-party evidence or valuation techniques.
				The fair value of financial instruments determined using valuation techniques include the use of recent arm’s length transactions and discounted cash flow analysis for investments in unquoted securities, discounted cash flow analysis for derivatives, third-party pricing models or other valuation techniques commonly used by market participants and utilize independent observable market inputs to the maximum extent possible.
				The use of valuation techniques to determine the fair value of a financial instrument requires management to make assumptions such as the amount and timing of future cash flows and discount rates and incorporate the Company’s estimate of assumptions that a market participant would make when valuing the instruments.
		F-19

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			17.	Fair value of financial instruments (Continued from previous page)
				(b)	Accounting classifications and fair values
				The following table shows the carrying amount and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. During the three months ended September 30, 2022, there have not been any transfers between fair value hierarchy levels.
		Carrying amount				Fair value
		Financial
		asset at							Other
								amortized	financial
			As at September 30, 2022				Note FVTPL	cost							liabilities	Total	Level 1	Level 2				Level 3	Total
			Financial assets measured at fair valueInvestment portfolio
	13,792	—							—	13,792	751	—	13,041	13,792
				13,792	—							—	13,792
			Financial assets not measured at fair valueCash and cash equivalent
	—	35,344							—	35,344	35,344	—	—	35,344
			Loans receivable – current				4	—	71,310							—	71,310	—	71,310	—	71,310
			Loans receivable – non-current				4	—	257							—	257	—	—	257				257
			Other receivables	—	11,727							—	11,727	—	11,727	—	11,727
				—	118,638							—	118,638
			Financial liabilities measured at fair valueDerivative financial liabilities
							10	1,798	—							—	1,798	—	1,798	—				1,798
	1,798	—							—	1,798
			Financial liabilities not measured at fair valueAccounts payable, accruals and other
	—	—							21,382	21,382	—	21,382	—	21,382
			Credit facility				8	—	—							47,790	47,790	—	47,790	—	47,790
			Debentures				9	—	—							39,692	39,692	—	37,441	—	37,441
				—	—							108,864	108,864
		F-20

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			17.	Fair value of financial instruments (Continued from previous page)
		Carrying amount			Fair value
		Financial
		asset at						Other
							amortized	financial
			As at December 31, 2021			Note FVTPL	cost						liabilities	Total	Level 1	Level 2				Level 3	Total
			Financial assets measured at fair valueInvestment portfolio
	18,088	—						—	18,088	1,785	—	16,303	18,088
			Derivative financial assets			16	7,866	—						—	7,866	—	—	7,866	7,866
				25,954	—						—	25,954
			Financial assets not measured at fair valueCash and cash equivalent
	—	69,208						—	69,208	69,208	—	—	69,208
			Loans receivable – current			4	—	65,397						—	65,397	—	65,397	—	65,397
			Loans receivable – non-current			4	—	248						—	248	—	—	248				248
			Other receivables	—	8,259						—	8,259	—	8,259	—	8,259
				—	143,112						—	143,112
			Financial liabilities measured at fair valueDerivative financial liabilities
						10	12,688	—						—	12,688	—	12,688	—	12,688
	12,688	—						—	12,688
			Financial liabilities not measured at fair valueAccounts payable, accruals and other
	—	—						20,783	20,783	—	20,783	—	20,783
			Credit facility			8	—	—						44,983	44,983	—	44,983	—	44,983
			Debentures			9	—	—						39,794	39,794	—	39,794	—	39,794
				—	—						105,560	105,560
				(c)									Measurement of fair values:
				(i)									Valuation techniques and significant unobservable inputs
				The Company has been closely monitoring developments related to COVID-19, including the existing and potential impact on its investment portfolio. As a result of the ongoing and developing COVID-19 pandemic and its resulting impact on the global economy, the Company believes that there is increased uncertainty to input factors on fair value of our Level 3 investments, including revenue multiples, time to exit events and increased equity volatility.
		F-21

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			17.	Fair value of financial instruments (Continued from previous page)
				The following tables show the valuation techniques used in measuring Level 3 fair values for financial instruments in the interim condensed consolidated statements of financial position, as well as the significant unobservable inputs used.
						Inter-relationship between significant unobservable inputs and fair value
		Significant unobservable inputs
				Type	Valuation technique
				Investment portfolio: Equities Unlisted	• Price of recent investments in the investee company	• Third-party transactions	• Increases in revenue multiples increases fair value
		• Revenue multiples
					• Implied multiples from	• Increases in equity volatility
					recent transactions of the underlying investee companies	• Balance sheets and last	can increase or decrease fair value depending on class of shares held in the investee company
		twelve-month revenues for certain of the investee companies
					• Offers received by investee
						• Increases in estimated time
					companies	• Equity volatility
						to exit event can increase or decrease fair value depending on class of shares held in the investee company
					• Revenue multiples derived
		• Time to exit events
					from comparable public companies and transactions
					• Option pricing model
				Partnership interest and others	• Adjusted net book value • Net asset value per unit	• Increases in net asset value per unit or change in market pricing of comparable companies of the underlying investment made by the partnership can increase fair value
		• Change in market pricing of
		comparable companies of the underlying investments made by the partnership
				Loans receivable non-current	• Discounted cash flows: Considering expected prepayments and using management’s best estimate of average market interest rates with similar remaining terms.	• Expected timing and amount of cash flows	• Changes to the expected amount and timing of cash flow changes fair value
		• Discount rate 12%
						• Increases to the discount rate
						can decrease fair value
				Derivative financial assets	• Option pricing model	• Equity stock price and volatility	• Increase in equity stock price and volatility will increase fair value
		F-22

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			17.	Fair value of financial instruments (Continued from previous page)
				The following table presents the changes in fair value measurements of the Company’s investment portfolio recognized at fair value at September 30, 2022 and December 31, 2021 and classified as Level 3:
					As at
						September 30,	December 31,
					2022	2021
				Balance of Level 3 investments, opening			16,303	18,291
				Additions	1,814	3,555
				Disposal	—	(9,272)
				Transfer to Level 1 investments	(500)			—
				Unrealized exchange gain (loss)	672			(90)
				Realized gain on investment portfolio	—	4,120
				Unrealized loss on investment portfolio	(5,248)			(301)
				Balance of Level 3 investments, end of period			13,041	16,303
				Unrealized exchange gain (loss) for the three and nine months ended September 30, 2022 was a gain of $560 and $672, respectively (September 30, 2021 – gain of $295 and loss of $82, respectively).
				Unrealized gain (loss) on investment portfolio for the three and nine months ended September 30, 2022 was a loss of $912 and $5,248, respectively (September 30, 2021 – loss of $1,085 and gain of $628, respectively).
				(ii)					Sensitivity analysis
				For the fair value of equity securities, reasonably possible changes at the reporting date to one of the significant unobservable inputs, holding other inputs constant, would have the following effects.
					Profit or loss
						Increase	Decrease
				Investment portfolio:September 30, 2022 Adjusted market multiple (5% movement)
					690			(690)
				December 31, 2021
										Adjusted market multiple (5% movement)	920	(920)
		F-23

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			18.	Nature and extent of risk arising from financial instruments
				Risk management policy
				In the normal course of business, the Company is exposed to financial risk that arises from a number of sources. Management’s involvement in operations helps identify risks and variations from expectations. As a part of the overall operation of the Company, Management takes steps to avoid undue concentrations of risk. The Company manages these risks as follows:
				Credit risk
				Credit risk is the risk of financial loss to the Company if a customer or counter-party to a financial instrument fails to meet its contractual obligations and arises primarily from the Company’s loans receivable. The maximum amount of credit risk exposure is limited to the gross carrying amount of the loans receivable disclosed in these financial statements.
				The Company acts as a lender of unsecured consumer loans and lines of credit and has little concentration of credit risk with any particular individual, company or other entity, relating to these services. However, the credit risk relates to the possibility of default of payment on the Company’s loans receivable. The Company performs on-going credit evaluations, monitors aging of the loan portfolio, monitors payment history of individual loans, and maintains an allowance for loan loss to mitigate this risk.
				The credit risk decisions on the Company’s loans receivable are made in accordance with the Company’s credit policies and lending practices, which are overseen by the Company’s senior management. Credit quality of the customer is assessed based on a credit rating scorecard and individual credit limits are defined in accordance with this assessment. The consumer loans receivable is unsecured. The Company develops underwriting models based on the historical performance of groups of customer loans which guide its lending decisions. To the extent that such historical data used to develop its underwriting models is not representative or predictive of current loan book performance, the Company could suffer increased loan losses.
				The Company cannot guarantee that delinquency and loss levels will correspond with the historical levels experienced and there is a risk that delinquency and loss rates could increase significantly.
		F-24

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			18.	Nature and extent of risk arising from financial instruments (Continued from previous page)
				The Company’s accounts payable and accruals are substantially due within 12 months. The maturity schedule of the Company’s credit facility and debentures are described below. Management’s intention is to continue to refinance any outstanding amounts owing under the credit facility and debentures, in each case as they become due and payable. The debentures are subordinated to the credit facility which has the effect of extending the maturity date of the debentures to the later of contractual maturity or the maturity date of credit facility. See Note 8 and 9 for further details.
	2022				2023	2024	2025	2026 Thereafter
				Commitments - operationalLease payments
	333	1,297				1,206	1,240	1,255	1,472
				Accounts payable	4,346				—	—	—	—	—
				Accruals and other	17,036				—	—	—	—	—
				Interest – Credit facility (Note 8)	1,363	5,453				5,453	2,726	—	—
				Interest – Debentures (Note 9)	727	1,502				—	—	—	—
				Purchase obligations	263				—	—	—	—	—
					24,068	8,252				6,659	3,966	1,255	1,472
				Commitments – principal repaymentsCredit facility (Note 8)
										—	—	—	47,790	—	—
				Debentures (Note 9) (1)	565	20,244				19,468	—	—	—
					565	20,244				19,468	47,790	—	—
				Total contractual obligations	24,633	28,496				26,127	51,756	1,255	1,472
				(1)	The debenture principal repayments are payable in either cash or Common Shares at Mogo’s option.
		F-25

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			19.	Equity
				(a)	Share capital
				The Company’s authorized share capital is comprised of an unlimited number of Common Shares with no par value and an unlimited number of preferred shares issuable in one or more series. The Board is authorized to determine the rights and privileges and number of shares of each series of preferred shares.
				For the nine months ended September 30, 2022, the Company repurchased 800,000 Common Shares for cancellation under its share repurchase program at an average price of CAD$1.19 per share, for a total repurchase cost of $955.
				As at September 30, 2022, there are 75,953,490 (December 31, 2021 – 76,693,859) Common Shares and no preferred shares issued and outstanding.
				(b)	Treasury share reserve
				The treasury share reserve comprises the cost of the shares held by the Company. As at September 30, 2022, the Company held 303,816 of Common Shares (December 31, 2021 – 303,816).
				(c)	Options
				The Company has a stock option plan (the “Plan”) that provides for the granting of options to directors, officers, employees and consultants. The exercise price of an option is set at the time that such option is granted under the Plan. The maximum number of Common Shares reserved for issuance under the Plan is the greater of i) 15% of the number of Common Shares issued and outstanding and ii) 3,800,000. As a result of a business combination with Mogo Finance Technology Inc. completed on June 21, 2019, there were additional options issued, which were granted pursuant to the Company’s prior stock option plan (the “Prior Plan”). As at September 30, 2022, there are 97,000 of these options outstanding that do not contribute towards the maximum number of Common Shares reserved for issuance under the Plan as described above.
				Each option converts into one Common Share upon exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither right to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of expiry. Options issued under the Plan have a maximum contractual term of eight years and options issued under the Prior Plan have a maximum contractual term of ten years.
		F-26

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			19.	Equity (Continued from previous page)
				(c)	Options (Continued from previous page)
				A summary of the status of the stock options and changes in the period is as follows:
						Weighted	Weighted	Weighted
	Options					average	average	Options	average
	outstanding	grant date					exercise	exercisable	exercise
	(000s)	fair value $					price $	(000s)	price $
				Balance, December 31, 2020	4,977								—	3.07	2,965		3.47
				Options issued	5,410					4.76	7.47	—		—
				Exercised	(810)					1.70	1.77	—		—
				Forfeited	(653)					6.19	6.24	—		—
				Balance, December 31, 2021	8,924								—	4.64	3,036		3.93
				Options issued	1,780					1.51	2.18	—		—
				Exercised							(48)	1.22	1.26	—		—
				Forfeited	(683)					2.78	2.87	—		—
				Balance, September 30, 2022	9,973								—	3.55	4,064		4.02
				The above noted options have expiry dates ranging from October 2022 to September 2030.
				With the exception of performance-based stock options, the fair value of each option granted was estimated using the Black-Scholes option pricing model with the following assumptions:
								Nine months ended
												September 30,	September 30,
								2022		2021
				Risk-free interest rate								1.73 - 3.40%	0.58 - 1.11%
				Expected life				5 years	5 years
				Expected volatility in market price of shares				87 - 91%	84 - 87%
				Expected dividend yield				0%		0%
				Expected forfeiture rate								0% - 15%	0% - 15%
				These options generally vest either immediately or monthly over a three-to-four-year period.
				On September 30, 2021, the Company granted performance-based stock options that vest monthly over a two-year period starting on January 1, 2022. Vesting of these options is dependent on certain performance criteria being met.
				Total stock-based compensation costs related to options and RSUs for the three and nine months ended September 30, 2022 was $1,677 and $7,771 respectively (September 30, 2021 – $2,703 and $7,065, respectively).
		F-27

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			19.	Equity (Continued from previous page)
				(d)	RSUs
				RSUs are granted to executives and other key employees. The fair value of an RSU at the grant date is equal to the market value of one Common Share. Executives and other key employees are granted a specific number of RSUs for a given performance period based on their position and level of contribution. RSUs vest fully after three years of continuous employment from the date of grant and, in certain cases, if performance objectives are met as determined by the Board. The maximum number of Common Shares which may be made subject to issuance under RSUs awarded under the RSU Plan is 500,000.
				As at September 30, 2022, the balance of RSUs outstanding is 28,000 (December 31, 2021 – 42,000)
				(e)	Warrants
							Weighted	Weighted
						Warrants	average	Warrants	average
						outstanding	exercise	exercisable	exercise
						(000s)	price $	(000s)	price $
				Balance, December 31, 2020		5,035	1.80	4,386	1.88
				Warrants issued						573	11.25				—	—
				Warrants exercised		(3,618)	1.76				—	—
				Balance, December 31, 2021		1,990	4.60	1,757	5.04
				Warrants issued						—		—	—	—
				Warrants exercised						—		—	—	—
				Balance, September 30, 2022		1,990	4.60	1,874	4.80
				The 1,990,231 warrants outstanding noted above have expiry dates ranging from December 2022 to June 2025, and do not include the stock warrants accounted for as a derivative financial liability discussed in Note 10.
				On October 7, 2020, Mogo issued 4,479,392 Debenture Warrants to its debenture holders in connection with the debenture amendments approved on September 30, 2020, at an exercise price of $2.03 per Common Share. The Debenture Warrants are exercisable at any time until December 31, 2022. There were 1,184,015 Debenture Warrants outstanding as at September 30, 2022 (December 31, 2021 – 1,184,015). During the three and nine months ended September 30, 2022, no Debenture Warrants were exercised into Common Shares (September 30, 2021 – 108,467 and 2,292,650, respectively) resulting in no cash proceeds (September 30, 2021 – $220 and $4,654, respectively).
				In connection with a marketing collaboration agreement with Postmedia Network Inc. (“Postmedia”) dated January 25, 2016 and amended on January 1, 2018 and January 1, 2020 effective until December 31, 2022, Mogo issued Postmedia a total of 1,546,120 warrants, of which 1,312,787 have been exercised by September 30, 2022 for cash proceeds of $1,696. 233,333 warrants remain outstanding as at September 30, 2022 with 116,667 having vested and the remaining 116,667 vesting on February 24, 2023. The warrants remain exercisable until August 24, 2023 subject to an earlier liquidation event. Subsequent to an amendment entered into on June 3, 2020, the exercise price of the warrants was reduced to $1.292. Under the marketing collaboration agreement, Postmedia also receives a quarterly payment of $263.
		F-28

Mogo Inc.
	Notes to the Interim Condensed Consolidated Financial Statements
(Unaudited)
	(Expressed in thousands of Canadian dollars, except per share amounts)
	For the three and nine months ended September 30, 2022 and 2021
			19.	Equity (Continued from previous page)
				(e)	Warrants (Continued from previous page)
				During the year ended December 31, 2021, the Company also issued 572,883 warrants to purchase Common Shares with exercise prices ranging from USD $5.63 to USD $12.63 per warrant in connection with broker services rendered on offerings during the period. As at September 30, 2022, these warrants remain outstanding and exercisable.
				Warrants issued to investors are denominated in a currency other than the functional currency of the Company therefore do not meet the definition of an equity instrument and are classified as derivative financial liabilities. Refer to Note 10 for more details.
			20.	Related party transactions
				Related party transactions during the three and nine months ended September 30, 2022, include transactions with debenture holders that incur interest. The related party debentures balance as at September 30, 2022, totaled $310 (December 31, 2021 – $322). The debentures bear annual coupon interest of 8.0% (December 31, 2021 – 8.0%) with interest expense for the three and nine months ended September 30, 2022, totaling $6 and $19, respectively (September 30, 2021 – $5 and $17, respectively). The related parties involved in such transactions include shareholders, officers, directors, and management, close members of their families, or entities which are directly or indirectly controlled by close members of their families. The debentures are ongoing contractual obligations that are used to fund our corporate and operational activities.
		F-29