Enhanced Investments - Financial Portal

Published: 2022-08-11

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

	Mogo Inc.
Interim Condensed Consolidated Statement of Financial Position
	(Unaudited)
		(Expressed in thousands of Canadian Dollars)
			June 30,	December 31,

			Note		2022	2021
				Assets
				Cash and cash equivalent			43,563	69,208
				Digital assets	5				631	1,718
				Loans receivable, net	4		58,833	55,832
				Prepaid expenses, and other receivables and assets			14,699	10,302
				Investment portfolio	17		15,085	18,088
				Investment accounted for using the equity method	15		62,743			103,821
				Property and equipment	6		1,300	1,186
				Right-of-use assets			3,025	3,430
				Intangible assets	7		50,970	52,304
				Derivative financial assets	16				894	7,866
				Goodwill			70,112			70,112
				Total assets			321,855	393,867

				Liabilities
				Accounts payable, accruals and other			23,103	20,783
				Lease liabilities			3,604	3,948
				Credit facility	8		47,531	44,983
				Debentures	9		39,542	39,794
				Derivative financial liabilities	10		1,743	12,688
				Deferred tax liability			1,688	1,894
				Total liabilities			117,211	124,090

				Equity
				Share capital	19a		391,809	392,628
				Contributed surplus			30,603	24,486
				Revaluation reserve	5				—	468
				Foreign currency translation reserve			1,236			458
				Deficit			(219,004)	(148,263)
				Total equity			204,644	269,777
				Total equity and liabilities			321,855	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 Statement of Operations and Comprehensive Income (Loss)
	(Unaudited)
(Expressed in thousands of Canadian Dollars, except per share amounts)
				Three months ended						Six months ended
					June 30,	June 30,	June 30,	June 30,
			Note			2022	2021		2022					2021
								Revenue
								Subscription and services								10,334	8,218	20,993	14,220
								Interest revenue								6,956	5,447	13,553	10,865
										11a						17,290	13,665	34,546	25,085
								Cost of revenue
								Provision for loan losses, net of recoveries		4						4,191	774	7,088	2,309
								Transaction costs								1,758	797	3,796	1,209
																5,949	1,571	10,884	3,518
								Gross profit								11,341	12,094	23,662	21,567
								Operating expenses
								Technology and development								3,301	3,486	6,648	5,704
								Marketing								3,436	3,897	8,112	6,664
								Customer service and operations								3,583	3,420	7,604	5,583
								General and administration								5,155	4,253	10,975	7,636
								Stock-based compensation		19c						2,574	4,062	6,185	4,888
								Depreciation and amortization		6,7						3,146	2,971	6,325	5,389
								Total operating expenses		12						21,195	22,089	45,849	35,864
								Loss from operations								(9,854)	(9,995)	(22,187)	(14,297)
								Other expenses (income)
								Credit facility interest expense		8						1,039	1,005	1,972	2,001
								Debenture and other financing expense		9,20						846	871	1,657	1,823
								Accretion related to debentures and convertible debentures
			9								311	312	620	621
								Share of loss in investment accounted for using the equity method
			15								8,766	2,860	14,329		2,860
								Revaluation loss (gain)		13						3,397	(24,850)	2,249	(30,112)
								Impairment of investment accounted for using the equity method
			15								26,749	—	26,749	—
								Other non-operating expense		14						993	752	1,137	2,264
																42,101	(19,050)	48,713	(20,543)
								Net (loss) income before tax								(51,955)	9,055	(70,900)	6,246
								Income tax (recovery) expense												(84)	10	(159)	18
								Net (loss) income								(51,871)	9,045	(70,741)	6,228
								Other comprehensive income:
								Items that will not be reclassified subsequently to profit or loss:

								Unrealized revaluation (loss) gain on digital assets		5						(370)	(550)	(468)	26
								Items that are or may be reclassified subsequently to profit or loss:

								Foreign currency transaction reserve gain								388	72	778	360
								Other comprehensive income (loss)												18	(478)	310	386
								Total comprehensive (loss) income								(51,853)	8,567	(70,431)	6,614
								Net (loss) income per share
								Basic (loss) income per share								(0.68)	0.14	(0.92)	0.11
								Diluted (loss) income per share								(0.68)	0.13	(0.92)	0.10
								Weighted average number of basic common shares (in 000s)
											76,743	63,597	76,719	55,368
								Weighted average number of fully diluted common shares (in 000s)
											76,743	67,352	76,719	60,195

								The accompanying notes are an integral part of these interim condensed consolidated financial statements.
F-3

	Mogo Inc.
Interim Condensed Consolidated Statement 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					—	—		—				—	—	(70,741)	(70,741)
			Purchase of common shares for cancellation (Note 19a)
								(800)	(955)		—				—	—	—	(955)

			Forfeiture of common shares					(3)	—		—				—	—	—		—
			Foreign currency translation reserve					—	—		—				—	778	—		778
			Revaluation reserve (Note 5)					—	—		—				(468)	—	—	(468)
			Stock-based compensation (Note 19c)					—	—		6,185				—	—	—	6,185
			Options and restricted share units (“RSUs”) exercised or converted
								62	136		(68)				—	—	—		68

			Balance, June 30, 2022					75,650	391,809	30,603				—	1,236	(219,004)	204,644


				Number of			Foreign
				shares, net			currency
				of treasury	Share	Contributed					Revaluation	translation
					shares (000s)	capital	surplus			reserve	reserve	Deficit	Total
			Balance, March 31, 2022					76,451 $	392,674 $	28,031 $				370 $	848 $ (167,133) $	254,790
			Net loss					—	—		—				—	—	(51,871)	(51,871)
			Purchase of common shares for cancellation (Note 19a)
								(800)	(955)		—				—	—	—	(955)

			Forfeiture of common shares					(3)	—		—				—	—	—		—
			Foreign currency translation reserve					—	—		—				—	388	—		388
			Revaluation reserve (Note 5)					—	—		—				(370)	—	—	(370)
			Stock-based compensation (Note 19c)					—	—		2,574				—	—	—	2,574
			Options and RSUs exercised or converted
								2	90		(2)				—	—	—		88

			Balance, June 30, 2022					75,650	391,809	30,603				—	1,236	(219,004)	204,644

			The accompanying notes are an integral part of these interim condensed consolidated financial statements.
F-4

	Mogo Inc.
Interim Condensed Consolidated Statement 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 income					—	—		—								—	—	6,228	6,228
			Foreign currency translation reserve					—	—		—								—	360	—	360
			Revaluation reserve (Note 5)					—	—		—								26	—	—		26
			Stock-based compensation (Note 19c & Note 19e)
								—	—		4,888								—	—	—	4,888

			Options and RSUs exercised or converted
								766	2,624	(1,121)								—	—	—	1,503

			Shares issued – ATM arrangement, net					1,525	16,846	—								—	—	—	16,846
			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 investment accounted for using the equity method
								6,741	63,878	13,901								—	—		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)					3,497	7,840	(1,710)								—	—	—	6,130
			Balance, June 30, 2021					68,803	355,994	30,928								26	360	(108,826)	278,482


				Number of			Foreign
				shares, net			currency
				of treasury	Share	Contributed					Revaluation	translation
					shares (000s)	capital	surplus							reserve	reserve	Deficit	Total
			Balance, March 31, 2021					56,664 $	243,899 $	13,365 $								576 $	288 $ (117,871) $	140,257
			Net income					—	—		—								—	—	9,045	9,045
			Foreign currency translation reserve					—	—		—								—	72	—		72
			Revaluation reserve (Note 5)					—	—		—								(550)	—	—	(550)
			Stock-based compensation (Note 19c & Note 19e)
								—	—		4,062								—	—	—	4,062

			Options and RSUs exercised or converted
								259	973		(305)								—	—	—		668

			Shares issued – ATM arrangement, net					—	(469)		—								—	—	—	(469)
			Shares issued on acquisition of Moka					4,634	47,207	—								—	—	—	47,207
			Shares issued – Replacement awards					366	—		—								—	—	—		—
			Shares issued on investment accounted for using the equity method
								6,741	63,878	13,901								—	—	—	77,779

			Equity settled share-based payment					17	164		—								—	—	—		164
			Warrants exercised (Note 19e)					122	342		(95)								—	—	—		247
			Balance, June 30, 2021					68,803	355,994	30,928								26	360	(108,826)	278,482

			The accompanying notes are an integral part of these interim condensed consolidated financial statements.
F-5

	Mogo Inc.
		Interim Condensed Consolidated Statement of Cash Flows
	(Unaudited)
			(Expressed in thousands of Canadian Dollars)
						Three months ended			Six months ended
		June 30,	June 30,	June 30,	June 30,
						Cash provided by (used in) the following activities:	Note			2022	2021	2022	2021
						Operating activities
						Net (loss) income			(51,871)										9,045	(70,741)	6,228
						Items not affecting cash:
						Depreciation and amortization											3,146		2,971	6,325	5,389
						Provision for loan losses		4									4,342	961	7,431	2,822
						Credit facility interest expense		8									1,039		1,005	1,972	2,001
						Debenture and other financing expense		9,20								846	871	1,657	1,822
						Accretion related to debentures and convertible debentures		9									311	312	620	621
						Share of loss in investment using the equity method		15									8,766		2,860	14,329	2,860
						Stock-based compensation expense		19c									2,574		4,062	6,185	4,888
						Revaluation loss (gain)		14									3,397	(24,850)				2,249	(30,112)
						Impairment of investment using the equity method		15	26,749				—	26,749	—
						Other non-operating expense											77	164	77	490
						Income tax recovery on deferred tax liability											(84)	—	(160)	—
																	(708)	(2,599)				(3,307)	(2,991)
						Changes in:
						Net issuance of loans receivable			(6,250)	(3,035)				(10,431)	(4,055)
						Prepaid expenses, and other receivables and assets			(1,291)				(284)	(4,322)	(580)
						Accounts payable, accruals and other											1,154	(1,054)				1,332	(1,197)
						Cash used in operating activities			(7,095)	(6,972)				(16,728)	(8,823)
						Interest paid			(1,892)	(1,875)				(3,623)	(3,807)
						Income taxes paid											(20)	—	(47)	—
						Net cash used in operating activities			(9,007)	(8,847)				(20,398)	(12,630)

						Investing activities
						Cash acquired upon acquisition of subsidiary											—	(281)	—	1,820
						Proceeds from sale of investment											—		4,625	—	4,625
						Cash invested in investment portfolio		17									(63)	(1,700)				(1,837)	(1,794)
						Cash invested in investment using the equity method											—	(32,396)				—	(32,396)
						Purchases of property and equipment		6									(65)	(73)	(342)	(171)
						Investment in digital assets		5									—	(500)	—	(1,250)
						Investment in intangible assets		7	(2,053)	(1,038)				(4,437)	(2,221)
						Net cash used in investing activities			(2,181)	(31,363)				(6,616)	(31,387)

						Financing activities
						Lease liabilities – principal payments											(176)	(197)	(345)	(339)
						Repayments on debentures		9									(454)	(509)	(971)	(1,011)
						Advances (repayments) on credit facility		8									1,557	—	2,548	(168)
						Proceeds from issuance of common shares, net											—	(469)	—	80,816
						Repurchase of common shares		19a									(955)	—	(955)	—
						Proceeds from exercise of warrants											—	247	—	6,130
						Proceeds from exercise of options											74		1,223	74	1,504
						Net cash provided by financing activities											46	295	351	86,932

						Effect of exchange rate fluctuations											841	(146)	1,018	372
						Net (decrease) increase in cash and cash equivalent			(10,301)	(40,061)				(25,645)	43,287
						Cash and cash equivalent, beginning of period			53,864	95,467				69,208	12,119
						Cash and cash equivalent, end of period			43,563	55,406				43,563	55,406

						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 six months ended June 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 2.0 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, easily buy and sell bitcoin, 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 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 June 30, 2022.
				The Company presents its interim condensed consolidated statement 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 August 11, 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 have 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 six months ended June 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 six months ended June 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 June 30, 2022 and December 31, 2021 are as follows:

					As at
							June 30,		December 31,
					2022	2021
				Current (terms of one year or less)			70,577	65,397
				Non-current (terms exceeding one year)	304	248
							70,881	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 (“ECL”) 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 June 30, 2022
				Risk Category					Days past due						Stage 1	Stage 2	Stage 3	Total
				Strong					Not past due						55,730	—	—	55,730
				Lower risk					1-30 days past due						3,875	—	—	3,875
				Medium risk					31-60 days past due							—	1,543	—	1,543
				Higher risk					61-90 days past due							—	990	—	990
									91+ days past due or bankrupt
				Non-performing												—	—	8,743	8,743

									Gross loans receivable						59,605	2,533	8,743	70,881
									Allowance for loan losses	(5,552)	(1,312)	(5,184)	(12,048)
									Loans receivable, net						54,053	1,221	3,559	58,833

		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 six months ended June 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
					91+ days past due or bankrupt
				Non-performing											—	—	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. As part of the process, these macroeconomic factors were used to generate various forward-looking scenarios. If management were to assign 100% probability to a pessimistic scenario forecast, the allowance for credit losses would have been $842 higher than the reported allowance for credit losses as at June 30, 2022 (December 31, 2021 – $705 higher).
				Allowance for loan losses		Three months ended								Six months ended
		June 30,						June 30,	June 30,	June 30,
										2022	2021		2022	2021

				Balance, beginning of period		10,502						9,182	9,813	8,886
				Provision for loan losses
				Originations						660	651	1,254	1,169
				Repayments						(215)	(318)		(470)	(678)
				Re-measurement		3,897						628	6,647	2,331
				Charge offs		(2,796)						(1,904)	(5,196)	(3,469)
				Balance, end of period		12,048						8,239	12,048	8,239

				The provision for loan losses in the interim condensed consolidated statement of operations and comprehensive income (loss) is recorded net of recoveries for the three and six months ended June 30, 2022 of $151 and $343, respectively (June 30, 2021 – $187 and $513, 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 six months ended June 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 June 30, 2022:

						Total	Cumulative
		Average			Fair	fair	Historical	revaluation
		cost per			value	value	cost	gain (loss)
	Quantities	unit				per unit	($000s)	($000s)	($000s)

				Bitcoin (BTC)		17.82 $ 42,079 $ 24,155 $					430 $			750 $	(320)
				Ethereum (ETH)		145.99	3,425								1,374	201	500	(299)
											631	1,250	(619)
				During the three and six months ended June 30, 2022, the Company recorded a revaluation loss on digital assets in other comprehensive income of $370 and $468, respectively (June 30, 2021 – loss of $550 and gain of $26, respectively).
				During the three and six months ended June 30, 2022, the Company recorded a revaluation loss on digital assets in net loss of $619 (June 30, 2021 – loss of $92).
				As at June 30, 2022, the carrying value of the Company’s digital assets held was $631 (December 31, 2021 – $1,718).
			6.	Property and equipment

		Computer								Furniture	Leasehold
		equipment								and fixtures		improvements		Total
			Cost
			Balance, 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		357				—			—	357
			Effects of movement in exchange rate					(16 )	—			—	(16 )
			Balance, June 30, 2022		3,164				1,212	2,055	6,431

			Accumulated depreciation
			Balance, 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		193				34			—	227
			Balance, June 30, 2022		2,140				936	2,055	5,131

			Net book value
			Balance, December 31, 2021		876				310			—	1,186
			Balance, June 30, 2022		1,024				276			—	1,300

				Depreciation of $128 and $227 for the three and six months ended June 30, 2022, respectively (June 30, 2021 – $127 and $212, 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 six months ended June 30, 2022 and 2021
			7.	Intangible assets
				Internally
					Internally	generated–					Acquired
					generated–	in	Software				technology	Customer	Regulatory
						completed	progress	licenses				assets	relationships Brand	licenses	Total
			Cost
			Balance, 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	4,266	—										—	—	—	—	4,461
			Transfers						2,344	(2,344 )	—										—	—	—	—			—
			Effects of movement in exchange rate
									—	—	(27 )										—	—	—	—			(27 )

			Balance, June 30, 2022			47,179	4,920	3,949				21,000	8,900 1,000						6,800	93,748

			Accumulated depreciation
			Balance, 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						3,419	—	86				1,050				533	—					680	5,768
			Balance, June 30, 2022			32,929	—	3,550				2,772	1,960	—					1,567	42,778

			Net book value
			Balance, December 31, 2021			15,130	2,998	512				19,278	7,473 1,000						5,913	52,304
			Balance, June 30, 2022			14,250	4,920	399				18,228	6,940 1,000						5,233	50,970

				Amortization of intangible assets of $2,886 and $5,768 for the three and six months ended June 30, 2022, respectively (June 30, 2021 – $2,379 and $4,533, respectively) is included in depreciation and amortization.
		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 six months ended June 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 June 30, 2022 was $47,531 (December 31, 2021 – $44,983).
				The credit facility is subject to certain covenants and events of default. As at June 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 statement 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 June 30, 2022, 3,295,377 Debenture Warrants have been exercised and converted into Common Shares for cash proceeds of $6,686. As at June 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 six months ended June 30, 2022 and 2021
			9.	Debentures (Continued from previous page)
				The Company’s debentures balance includes the following:

						As at
								June 30,		December 31,
						2022	2021
				Principal balance				40,431	41,375
				Discount				(1,632)	(2,323)
								38,799	39,052
				Interest payable		743	742
								39,542	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	Principal

									of quarterly	due on
					payment	maturity	Total
				2022						2,187	—	2,187
				2023						3,301	16,215	19,516
				2024						943	17,785	18,728
										6,431	34,000	40,431

			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 statement 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 six months ended June 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 statement of operations and comprehensive income (loss).

						As at
								June 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				(11,106)	(11,276)
				Change in fair value due to foreign exchange		161	(22)
				Balance, end of period		1,743	12,688

				The change in fair value due to revaluation of derivative financial liabilities for the three and six months ended June 30, 2022 was a gain of $8,917 and $11,106, respectively (June 30, 2021 – gain of $2,108 and $1,820, respectively). Change in fair value due to foreign exchange for the three and six months ended June 30, 2022 was a loss of $246 and $161, respectively (June 30, 2021 – gain of $303 and $257, respectively).
				Details of the derivative financial liabilities as at June 30, 2022 are as follows:

								Warrants
					outstanding	Weighted
						and	average
								exercisable	exercise

						(000s)	price $
				Balance, December 31, 2021		5,729	9.69
				Warrants issued		—	—
				Balance, June 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
								June 30,	December 31,

						2022	2021
				Risk-free interest rate		2.92 - 2.99%	0.97%
				Expected life		2.2 - 3.0 years	2.7 - 3.5 years
				Expected volatility in market price of shares		114%	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 six months ended June 30, 2022 and 2021
			11.	Geographic information
				(a)	Revenue
				Revenue presented below has been based on the geographic location of customers.
					Three months ended
						Six months ended
								June 30,	June 30,	June 30,	June 30,

								2022	2021	2022	2021
				Canada							15,631		11,653		30,769	21,906
				Europe							1,601		1,869		3,420	3,014
				Other									58		143		357	165
				Total							17,290		13,665		34,546	25,085

				(b)	Non-current assets
				Non-current assets presented below has been based on geographic location of the assets.


						As at
											June 30,		December 31,

						2022	2021
				Canada							202,631	255,315
				Europe						508	609
				Other						990	883
				Total							204,129	256,807

			12.	Expense by nature and function
				The following table summarizes the Company’s operating expenses by nature:
					Three months ended
						Six months ended
					June 30,								June 30,	June 30,		June 30,
								2022	2021	2022	2021
				Personnel expense							7,629	7,442	16,180	12,201
				Marketing							3,146	3,609	7,591	6,090
				Depreciation and amortization							3,146	3,805	6,325	4,362
				Stock-based compensation							2,574	2,971	6,185	5,389
				Hosting and software licenses							1,750	983	3,158	1,630
				Professional services							613	999	1,853	1,928
				Insurance and licenses							796	601	1,461	1,068
				Credit verification costs							311	532	822	1,057
				Premises							293	221	575	427
				Others							937	926	1,699	1,712
				Total							21,195	22,089	45,849	35,864

		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 six months ended June 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		Six months ended
						June 30,				June 30,	June 30,	June 30,
										2022	2021	2022	2021
				Technology and development					7,110				6,969	14,432	11,477
				Marketing					3,500				4,192	8,276	7,232
				Customer service and operations					4,111				4,378	8,917	6,553
				General and administration					6,474				6,550	14,224	10,602
				Total					21,195				22,089	45,849	35,864

			13.	Revaluation losses (gains)
					Three months ended
								Six months ended
					June 30,								June 30,	June 30,	June 30,
						2022				2021	2022	2021
				Change in fair value due to revaluation of derivative financial asset
							6,980				(24,808)	6,972	(24,808)
				Change in fair value due to revaluation of derivative financial liabilities
							(8,917)				(2,107)	(11,106)	(1,820)
				Unrealized loss (gain) on investment portfolio					4,566				1,901	4,927	(3,884)
				Unrealized loss on digital assets										619	92	619	92
				Unrealized exchange loss										149	72	837	308
									3,397				(24,850)	2,249	(30,112)
			14.	Other non-operating expenses
					Three months ended
								Six months ended
					June 30,								June 30,	June 30,	June 30,
						2022				2021	2022	2021
				Credit facility prepayment and related expenses										—	—	—	(5)
				Government grants										(56)	(602)	(92)	(1,208)
				Direct offering transaction costs allocated to derivative financial liabilities
											—	—	—	1,466
				Acquisition costs, restructuring and other					1,049				1,355	1,229	2,011
														993	752	1,137	2,264

		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 six months ended June 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 $8,766 and $14,329 for the three and six months ended June 30, 2022 (June 30, 2021 – $2,860)
				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 has 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 a result of this assessment, the Company recognized an impairment on its equity method investment in the amount of $26,749 (June 30, 2021 – $nil).
			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 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”).
				The Company determined that the Coinsquare Warrant is classified as derivative financial assets on the statement 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 statement of operations and comprehensive income (loss).

					As at
							June 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			(6,972)	1,788
				Exercised	—	(5,513)
				Balance, end of period	894	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 six months ended June 30, 2022 and 2021
			16.	Derivative financial assets (Continued from previous page)
				The fair value of the Coinsquare Warrant was estimated using the Black-Scholes option pricing model with the following assumptions:

					As at
						June 30,	December 31,

					2022		2021
				Risk-free interest rate		2.09%	0.38%
				Expected life		0.3 years	0.5 years
				Expected volatility in market price of shares	74%		71%
				Expected dividend yield	0%		0%
				Expected forfeiture rate	0%		0%
			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 statement 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 six months ended June 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 June 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 June 30, 2022			Note FVTPL	cost		liabilities Total Level 1 Level 2 Level 3 Total
			Financial assets measured at fair value

			Investment portfolio			15,085				—	— 15,085			1,192	— 13,893 15,085
			Derivative financial assets			16					894	—	—			894			—	—	894				894
						15,979				—	— 15,979
			Financial assets not measured at fair value

			Cash and cash equivalent								—	43,563	— 43,563 43,563				—	— 43,563
			Loans receivable – current			4					—	70,577	— 70,577						— 70,577	— 70,577
			Loans receivable – non-current
						4					—	304	—			304			—	—	304				304
			Other receivables								—	11,520	— 11,520						— 11,520	— 11,520
											— 125,964	— 125,964
			Financial liabilities measured at fair value

			Derivative financial liabilities
						10 1,743				—	—									1,743	—	1,743	—	1,743
						1,743				—	—									1,743
			Financial liabilities not measured at fair value

			Accounts payable, accruals and other
											—	—	23,103 23,103						— 23,103	— 23,103
			Credit facility			8					—	—	47,531 47,531						— 47,531	— 47,531
			Debentures			9					—	—	39,542 39,542						— 39,542	— 39,542
											—	— 110,176 110,176

		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 six months ended June 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 value

			Investment 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 value

			Cash 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 value

			Derivative financial liabilities
					10 12,688				—	— 12,688						— 12,688	— 12,688
					12,688				—	— 12,688
			Financial liabilities not measured at fair value

			Accounts 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 six months ended June 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 statement 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	• Third-party transactions • Revenue multiples • Balance sheets and last	• Increases in revenue
					in the investee company	multiples increases fair value
					• Implied multiples from
						• Increases in equity volatility
					recent transactions of the underlying investee companies
						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
		• Equity volatility • Time to exit events
						• Increases in estimated time
					companies
					• Revenue multiples derived
						to exit event can increase or decrease fair value depending on class of shares held in the investee company
					from comparable public companies and transactions
					• Option pricing model


				Partnership interest and others	• Adjusted net book value	• Net asset value per unit • Change in market pricing of	• 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
		comparable companies of the underlying investments made by the partnership

				Loan receivable non-current	• Discounted cash flows:	• Expected timing and amount	• Changes to the expected
					Considering expected prepayments and using management’s best estimate of average market interest rates with similar remaining terms.	of cash flows	amount and timing of cash flow changes fair value
		• Discount rate 12%
						• Increases to the discount rate
						can decrease fair value
						• Increase in equity stock price
		• Equity stock price and
				Derivative financial assets		and volatility will increase fair value
					• Option pricing model
		volatility
		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 six months ended June 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 June 30, 2022 and December 31, 2021 and classified as Level 3:

					As at
							June 30,		December 31,

					2022	2021
				Balance of Level 3 investments, opening			16,303	18,291
				Additions	1,814	3,555
				Disposal	—	(9,272)
				Unrealized exchange gain (loss)	112	(90)
				Realized gain on investment portfolio	—	4,120
				Unrealized loss on investment portfolio			(4,336)	(301)
				Balance of level 3 investments, end of period			13,893	16,303

				Unrealized exchange gain (loss) for the three and six months ended June 30, 2022 was a gain of $292 and $112, respectively (June 30, 2021 – loss of $130 and $377, respectively).
				Unrealized gain (loss) on investment portfolio for the three and six months ended June 30, 2022 was a loss of $4,348 and a $4,336, respectively (June 30, 2021 – loss of $4,273 and gain of $1,424, 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:
				June 30, 2022					Adjusted market multiple (5% movement)	687	(687)

				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 six months ended June 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 six months ended June 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 facilities and debentures are described below. Management’s intention is to continue to refinance any outstanding amounts owing under the credit facilities and debentures, in each case as they become due and payable. The debentures are subordinated to the credit facilities which has the effect of extending the maturity date of the debentures to the later of contractual maturity or the maturity date of credit facilities. See Note 8 and 9 for further details.

		2022	2023			2024	2025	2026 Thereafter
				Commitments - operational
				Lease payments		662	1,297			1,206	1,240	1,255	1,472
				Accounts payable		5,342							—	—	—	—		—
				Accruals and other	17,761							—	—	—	—		—
				Interest – Credit facility (Note 8)		2,298	4,596			4,596	2,298	—		—
				Interest – Debentures (Note 9)		1,461	1,502			—	—	—		—
				Purchase obligations		263							—	—	—	—		—
					27,787	7,395			5,802	3,538	1,255	1,472
				Commitments – principal repayments

				Credit facility (Note 8)										—	—	— 47,531		—	—
				Debentures (Note 9)		2,187 19,516 18,728					—	—		—
						2,187 19,516 18,728 47,531						—		—
				Total contractual obligations	29,974 26,911 24,530 51,069						1,255	1,472

		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 six months ended June 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.
				For the six months ended June 30, 2022, the Company repurchased 800,000 Common Shares for cancellation under the share repurchase program at an average price of CAD$1.19 per share, for a total repurchase cost of $955.
				As at June 30, 2022, there are 75,952,490 (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 June 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 June 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 six months ended June 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)	—	1.77	—	—
				Forfeited										(653)	—	6.24	—	—
				Balance, December 31, 2021		8,924					—	4.64	3,036			3.93
				Options issued		1,439				1.66		2.40		—	—
				Exercised		(48)			1.22		1.26		—	—
				Forfeited										(386)	3.19			3.35	—	—
				Balance, June 30, 2022		9,929					—	3.59	3,788			4.06

				The above noted options have expiry dates ranging from July 2022 to June 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:

							Six months ended
							June 30,	June 30,


							2022			2021
				Risk-free interest rate					1.73 - 2.58%	0.58%
				Expected life			5 years	5 years
				Expected volatility in market price of shares			87 - 90%			84%
				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 six months ended June 30, 2022 was $2,542 and $6,095 respectively (June 30, 2021 – $3,805 and $4,362, 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 six months ended June 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.
				Details of outstanding RSUs as at June 30, 2022 are as follows:

Number of

RSUs (000s)
				Balance, December 31, 2020	77
				Converted	(30)
				Expired	(5)
				Balance, December 31, 2021	42
				Converted	(14)
				Expired	—
				Balance, June 30, 2022	28

			(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, June 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 June 30, 2022 (December 31, 2021 – 1,184,015). During the three and six months ended June 30, 2022, no Debenture Warrants were exercised into Common Shares (June 30, 2021 – 121,556 and 2,184,183, respectively) resulting in no cash proceeds (June 30, 2021 – $247 and $4,434, respectively).
		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 six months ended June 30, 2022 and 2021
			19.	Equity (Continued from previous page)
			(e)	Warrants (Continued from previous page)
				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 June 30, 2022 for cash proceeds of $1,696. 233,333 warrants remain outstanding as at June 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.
				During the year ended December 31, 2021, the Company also issued 572,883 warrants 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 June 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 six months ended June 30, 2022, include transactions with debenture holders that incur interest. The related party debentures balance as at June 30, 2022, totaled $314 (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 six months ended June 30, 2022, totalling $6 and $13, respectively (June 30, 2021 – $5 and $12, 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