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Published: 2021-11-12




		SANGOMA TECHNOLOGIES CORPORATION

Condensed consolidated interim financial statements for
the three month periods ended September 30, 2021 and 2020
			(Unaudited in U.S. Dollars)

				100 Renfrew Drive, Suite 100,
	Markham, Ontario,
	Canada L3R 9R6


Sangoma Technologies Corporation September 30, 2021 and 2020 Table of contents Condensed consolidated interim statements of financial position ................................................................................ 3
Condensed consolidated interim statements of income (loss) and comprehensive income (loss) ......................... 4
Condensed consolidated interim statements of changes in		shareholders’ equity .................................................... 5
Condensed consolidated interim statements of cash flows........................................................................................... 6
Notes to the condensed consolidated interim financial statements ....................................................................... 7-28









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Sangoma Technologies Corporation
Condensed consolidated interim statements of financial positionAs at September 30, 2021 and June 30, 2021
(Unaudited in US dollars)
		September 30,	June 30,	June 30,
					2021	2021	2020
					$					$	$
Assets
Current assets
Cash and cash equivalents (Note 13)		19,128,844		22,095,596				19,995,497
Trade receivables (Note 13)		14,070,530		14,734,417				8,243,720
Inventories (Note 4)		12,686,934		11,820,123				9,277,765
Income tax receivable								1,318,516		662,579		-
Contract assets					831,246		739,966				473,507
Other current assets								4,193,481		3,296,354		1,749,235
		52,229,551		53,349,035				39,739,724
Non-current assets
Property and equipment (Note 5)								7,363,355		7,653,015		2,202,587
Right-of-use assets (Note 17)		13,422,310		13,529,916				11,871,529
Intangible assets (Note 6)		186,323,874		193,978,453				36,840,607
Development costs (Note 7)								1,700,288		1,532,786		1,799,805
Deferred income tax assets (Note 10)								2,237,410		2,052,084		3,879,665
Goodwill (Note 8)		269,397,741		267,397,741				32,295,582
Contract assets								1,273,810		854,101		320,484
		533,948,339		540,347,131				128,949,983
Liabilities
Current liabilities
Accounts payable and accrued liabilities (Note 13)		20,841,326		22,360,494				10,409,258
Provisions (Note 18)					391,143		442,464				486,456
Sales tax payable								1,343,849		1,318,505		592,994
Income tax payable					-		-				1,934,370
Consideration payable (Note 16)								2,354,146		2,335,744		-
Operating facility and loans (Note 9)		14,550,000		14,550,000				12,400,000
Contract liabilities (Note 15)		10,790,421		11,411,621				7,904,975
Derivative liability (Note 9)					294,295		333,315				585,104
Lease obligations on right-of-use assets (Note 17)								2,582,172		2,421,389		2,165,847
		53,147,352		55,173,532				36,479,004
Long term liabilities
Consideration payable (Note 16)								6,994,735		6,766,070		-
Operating facility and loans (Note 9)		56,775,000		60,412,500				24,650,000
Contract liabilities (Note 15)								4,214,634		4,342,110		2,915,123
Non-current lease obligations on right-of-use assets (Note 17)		11,604,797		11,821,289				10,031,680
Deferred income tax liabilities (Note 10)		24,284,189		24,760,637				-
Other non-current liabilities					916,519		917,395				-
		157,937,226		164,193,533				74,075,807
Shareholders’ equity
Share capital		172,461,915		172,461,915				47,423,358
Shares to be issued		192,101,973		192,101,973				-
Contributed surplus								7,512,239		5,392,954		1,788,397
Accumulated other comprehensive loss					(294,295)		(333,315)				(585,104)
Retained earnings								4,229,281		6,530,071		6,247,525
		376,011,113		376,153,598				54,874,176
		533,948,339		540,347,131				128,949,983
Approved by the Board
(Signed)									Al Guarino	Director	(Signed)		Director	Allan Brett

The accompanying notes are an integral part of these condensed consolidated interim financial statements. The comparative periods have been retrospectively adjusted to reflect the change in presentation currency from Canadian dol ars to US dollars (Note 2).

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The accompanying notes are an integral part of these condensed consolidated interim financial statements. The comparative period has been retrospectively adjusted to reflect the change in presentation currency from Canadian dollars to US dollars (Note 2).
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Sangoma Technologies Corporation
Condensed consolidated interim statements of changes in shareholders' equityFor the three month periods ended September 30, 2021 and 2020(Unaudited in US dol ars)
			Number of	Shares	Accumulated other	Total
			common	Share		to be	Contributed	comprehensive			Retained	shareholders'
			shares	capital		issued	surplus			loss	earnings	equity
		$							$	$					$		$	$
Balance, June 30, 2020			10,869,676									47,423,358		-					1,788,397				(585,104)			6,247,525		54,874,176
Net income													-		-							-											-				-			1,579,517		1,579,517
Change in fair value of interest rate swaps,
															net of tax (Note 9)	-		-							-											-			36,117				-		36,117
Common shares issued
															through short form prospectus, net of costs (Note 11(i))	5,000,857						56,295,235		-											-			-				-		56,295,235
Deferred tax benefit on share issuance costs (Note 10)													-							1,082,713	-											-				-			-		1,082,713
Common shares issued
															for options exercised (Note 11(i))	433		1,251							-											(412)			-				-		839
Share-based compensation expense (Note 11(ii))													-		-							-					154,478			-		-		154,478
Balance, September 30, 2020			15,870,966									104,802,557		-					1,942,463				(548,987)			7,827,042		114,023,075
Balance, June 30, 2021			19,021,644									172,461,915						192,101,973		5,392,954						(333,315)			6,530,071		376,153,598
Net loss													-		-							-											-				-			(2,300,790)		(2,300,790)
Change in fair value of interest rate swaps,
															net of tax (Note 9)	-		-							-											-			39,020				-		39,020
Rounding of fractional shares
															after share consolidation (Note 2)	(30)		-							-											-			-				-		-
Share-based compensation expense (Note 11(ii))													-		-							-					2,119,285			-		-		2,119,285
Balance, September 30, 2021			19,021,614									172,461,915						192,101,973		7,512,239						(294,295)			4,229,281		376,011,113


The accompanying notes are an integral part of these condensed consolidated interim financial statements. The comparative periods have been retrospectively adjusted to reflect the change in presentation currency from Canadian dollars to US dollars (Note 2) .
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The accompanying notes are an integral part of these condensed consolidated interim financial statements. The comparative period has been retrospectively adjusted to reflect the change in presentation currency from Canadian dollars to US dollars (Note 2).
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Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


1.		General information
		Founded in 1984, Sangoma Technologies Corporation (“Sangoma” or the “Company”) is publicly traded on the Toronto Stock Exchange (TSX: STC). The
			Company’s shares were traded on the TSX Venture
		Exchange under the symbol STC until November 1, 2021, at which point the Company’s shares commenced trading on the TSX.
				In conjunction with listing on the TSX, the Company’s shares were
		delisted from the TSX Venture Exchange. The Company was incorporated in Canada, its legal name is Sangoma Technologies Corporation and its primary operating subsidiaries for fiscal 202 1 are Sangoma Technologies Inc., Sangoma US Inc., VoIP Supply LLC, Digium Inc., VoIP Innovations LLC and Star2Star Communications LLC.
		Sangoma is a leading provider of hardware and software components that enable or enhance Internet Protocol Communications Systems for both telecom and datacom applications. Enterprises, small to medium sized busines
					ses (“SMBs”) and telecom operators in over 150 countries rely on Sangoma’s
		technology as part of their mission critical infrastructures. The product line includes data and telecom boards for media and signal processing, as well as gateway appliances and so ftware.
		The Company is domiciled in Ontario, Canada. The address of the Company’s registered office is 100 Renfrew Dr., Suite 100, Markham, Ontario, L3R 9R6 and the Company operates in multiple jurisdictions.
2.		Significant accounting policies
		Statement of compliance and basis of presentation

		The accompanying condensed consolidated interim financial statements have been prepared in
		accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting. The condensed consolidated interim financial statements do not include al l the information required for annual consolidated financial statements and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2021.
		These condensed consolidated interim financial statemen ts were, at the recommendation of the audit
		committee, approved and authorized for issuance by the Company’s Board of Directors on November 12, 2021.
		These condensed consolidated interim financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as those of the audited consolidated financial statements for the year ended June 30, 202 1, except for the change in presentation currency of the Company from Canadian dollar to US dollar described below:
		Change in presentation currency of the Company
		Effective July 1, 2021, the Company elected to change the presentation currency in its condensed consolidated interim financial statements from Canadian dollar to US dollar, which was applied on a retrospective basis.
		Since July 1, 2020, the Company and all of its wholly-owned operating subsidiaries are measured in US dollar as its the functional currency. The US dol ar translated amounts of nonmonetary assets and liabilities as at July 1, 2020 became the historical accounting basis for those assets and liabilities at July 1, 2020. Transactions in non-USD currencies are initially recorded in the US dollar by applying the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in other than US dollar are revaluated at the foreign exchange rate at the reporting date. Foreign exchange differences arising on translation are recognized in the income statement. As both its functional currency and presentation currency are US dollar, there is no further need to translate for its presentation.

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Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


2.		Significant accounting policies (continued)
		Change in presentation currency of the Company (continued)
		A change in presentation currency represents a change in an accounting policy in terms of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The Company has retrospectively applied the change to its comparative information for the three month period ended September 30, 2020 and for the fiscal year ended June 30, 2021 by removing the translation adjustments applied in prior year’s statements and reverting to present the amounts and balances in their US dollar functional currency.
		It should be noted that the	functional currencies of the Company’s primary economic environments in
		which underlying businesses operate remain unchanged and that foreign exchange exposures wil therefore be unaffected by the change, albeit that the effects of such exposures will be presented in US dollar. All other accounting policies remain consistent with those adopted in the audited consolidated financial statements for the year ended June 30, 2021.
		Share consolidation (reverse stock split) On November 2, 2021, the Company implemented a consolidation (
				the “reverse stock split”) of its
		outstanding Common Shares on the basis of one new Common Share for every seven currently outstanding Common Shares (t
			he “Consolidation Ratio”). At the special meeting of the Company’s
		shareholders held on September 23, 2021, the Company’s shareholders granted the Company’s Board of Directors discretionary authority to implement a consolidation of the issued and outstanding common shares of the Company on the basis of a consolidation ratio of up to 20 pre -consolidation common shares for one post-consolidation common share. The Board of Directors selected a share consolidation ratio of seven pre-consolidation common shares for one post-
					consolidation common share. The Company’s
		common shares began trading on the TSX on a post-			consolidation basis under the Company’s existing
		trade symbol "STC" on November 8, 2021. In accordance with International Financial Reporting Standards (“IFRS”), the change has been applied retrospectively. The reverse stock split did not cause an adjustment to the par value or the authorized shares of the common stock. As a result of the reverse stock split, the Company further adjusted the share amounts and exercise prices under its option plans and outstanding options. IAS 33 Earnings per Share (paragraph 64) requires retrospective restatement of earnings per share for a reverse stock split that occurs subsequent to the balance sheet date but before the date of authorization of the statements. As a result, all disclosures of common shares, per common share data and data related to options in the accompanying condensed consolidated interim financial statements and related notes reflect this reverse stock split for all periods presented.
3.		Significant accounting judgments, estimates and uncertainties
		Except for the change in the Company’s presentation currency, these unaudited condensed consolidated interim financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as those of the audited consolidated financial statements for the year ended June 30, 2021 and which are available at www.sedar.com. They were prepared using the same critical estimates and judgments in applying the accounting policies as those of the audited consolidated financial statements for the year ended June 30, 2021.

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Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


4.		Inventories
		Inventories recognized in the consolidated statements of financial position are comprised of:
			September 30,	June 30,
					2021	2021
					$	$
		Finished goods	8,269,412		8,422,594
		Parts	4,895,934		3,902,439
			13,165,346		12,325,033
		Provision for obsolescence			(478,412)		(504,910)
		Net inventory carrying value	12,686,934		11,820,123

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Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


5.			Property and equipment

	Office furniture					Stockroom and
	and computer				Software and	production	Tradeshow	Leasehold
				equipment	books	equipment	equipment	improvements	Total
Cost					$	$	$		$	$	$
Balance at June 30, 2020				1,989,536									412,766			1,290,759			47,210			321,787				4,062,058
Additions through business combinations (Note 20)														473,123	-			4,861,810					5,334,933
Additions														867,227			3,990			235,053		-				26,676			1,132,946
Disposals												(132,789)			(132,789)
Balance at June 30, 2021				3,329,886									416,756			6,254,833			47,210			348,463				10,397,148
Additions														106,113			40,602			39,900	-				10,275			196,890
Disposals														(3,241)	-			(40,663)					(43,904)
Balance at September 30, 2021				3,432,758									457,358			6,254,070			47,210			358,738				10,550,134
Accumulated depreciation
Balance at June 30, 2020														995,761			223,697			491,742				39,063			109,208			1,859,471
Depreciation expense														375,727			90,498			380,338		1,806				36,293			884,662
Balance at June 30, 2021				1,371,488									314,195			872,080			40,869			145,501				2,744,133
Depreciation expense														157,384			21,847			253,364		312		9,739			442,646
Balance at September 30, 2021				1,528,872									336,042			1,125,444			41,181			155,240				3,186,779
Net book value as at:Balance at June 30, 2021
				1,958,398									102,561			5,382,753	6,341			202,962				7,653,015
Balance at September 30, 2021				1,903,886									121,316			5,128,626	6,029			203,498				7,363,355

For the three month period ended September 30, 2021, depreciation expense of $248,392 (three month period ended September 30, 2020 - $153,368) was recorded in general and administration expense in the condensed consolidated interim statements of income (loss) and comprehensive income (loss). Depreciation expense in the amount of $194,254 was included in cost of sales for the three month period ended September 30, 2021 (three month period ended September 30, 2020 - $nil).
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Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


			6.	Intangible assets
					Other
	Copyright					Purchased	Customer	purchased
	to software					technology			Website	relationships			Brand	intangibles*	Total
											$	$	$	$	$	$	$
			CostBalance at June 30, 2020
																2,163,532		8,523,164		173,690		29,855,518		6,787,317		2,748,066			50,251,287
			Business combinations (Note 20)								-						86,800,000		-		82,400,000				-		-			169,200,000
			Balance at June 30, 2021													2,163,532		95,323,164		173,690		112,255,518		6,787,317		2,748,066			219,451,287
			Balance at September 30, 2021													2,163,532		95,323,164		173,690		112,255,518		6,787,317		2,748,066			219,451,287
			Accumulated amortizationBalance at June 30, 2020
																2,163,532		3,034,665		173,690		5,436,705		1,449,052		1,153,036			13,410,680
			Amortization expense								-						4,774,716		-		5,898,778		686,021		702,639			12,062,154
			Balance at June 30, 2021													2,163,532		7,809,381		173,690		11,335,483		2,135,073		1,855,675			25,472,834
			Amortization expense								-						3,903,319		-		3,405,873		170,569		174,818			7,654,579
			Balance at September 30, 2021													2,163,532		11,712,700		173,690		14,741,356		2,305,642		2,030,493			33,127,413
			Net book value as at:Balance at June 30, 2021
											-						87,513,783		-		100,920,035		4,652,244		892,391			193,978,453
			Balance at September 30, 2021								-						83,610,464		-		97,514,162		4,481,675		717,573			186,323,874

			* Other purchased intangibles include non-compete agreements and backlog.
			Amortization expense is included in general and administration expense in the consolidated statements of income (loss) and comprehensive income (loss). For the three month period ended September 30, 2021, amortization expenses were $7,654,579 (three month period ended September 30, 2020 - $1,464,607).
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Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


7.		Development costs

		Each period, additions to development costs are recognized net of investment tax credits accrued. In addition to the above amortization, the Company has recognized $8,184,579 of engineering expenditures as an expense during the three month period ended September 30, 2021 (three month period ended September 30, 2020 - $4,140,728).

8.		Goodwill
		The carrying amount and movements of goodwil was as follows:
	$
		Balance at June 30, 2020	32,295,582
		Addition through business combinations (Note 20)	235,102,159
		Balance at June 30, 2021	267,397,741
		Addition through business combinations (Note 20)	2,000,000
		Balance at September 30, 2021	269,397,741

		For the three month period ended September 30, 2021, the addition to goodwill was from the acquisition of M2 on July 16, 2021 (Note 20). The addition to goodwill for the year ended June 30, 2 021 was from the acquisition of StarBlue Inc. on March 31, 2021(Note 20).

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Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


9.		Operating facility and loan and derivative liability
		(a) Operating facility and loan

		(i)	The Company entered into a new loan facility with two banks and drew down the first tranche of $34,800,000 ($45,699,360 CAD) on October 18, 2019. This loan facility was used to pay down and close all existing loans and to fund part of the purchase of VoIP Innovations LLC. Th is term facility is repayable over six years on a straight-line basis. The interest rates charged are based on Prime rate, US Base rate, London Inter -Bank Offered Rate (LIBOR) or Canadian Dollar Offered Rate (CDOR) plus the applicable margin. Under the terms of these term facilities, the Company may convert the loans from variable to a fixed loan. The Company is required to lock in the interest rate on one half of the term loan within three months of each draw down. On January 21, 2020, the Company converted its US Base Rate loan to a one-month LIBOR loan plus the credit spread based on the syndicated loan agreement entered on October 18, 2019. Separately, as required under the agreement, the Company locked in half of the original loan amount by entering a 5-year interest rate credit swap with the two banks for $8,700,000 each. The swaps together with protection against the 0% LIBOR floor have effectively converted one half of the variable LIBOR rate to a fixed loan of approximately 4.2% for five years of the six-year remaining balance on the loan. The repayment schedule for the loan has not been impacted by either of these changes. The balance outstanding against this term loan facility as of September 30, 2021 is $23,200,000 (June 30, 2021
				– $24,650,000). As at
			Septem ber 30, 2021, term loan facility balance of $5,800,000 (June 30, 2021 - $5,800,000) is classified as current and $17,400,000 (June 30, 2021 - $18,850,000) as long-term in the condensed consolidated interim statements of financial position.
		(ii)	The Company also had revolving credit facilities which included a committed revolving credit facility for up to CAD $8,000,000 and a committed swingline credit facility for up to CAD $2,000,000 both of which may be used for general business purposes. On April 3, 2020, the Company drew down $1,300,000 ($1,838,460 CAD) on the swingline credit facility available under the Credit Agreement. On April 17, 2020, the Company drew down $5,300,000 ($7,439,610 CAD) from the revolving credit facility. During August 2020, the Company paid back in full the outstanding amounts on the swingline credit facility and the revolving credit facility. Both facilities remain fully available to the Company.
		(iii)	On March 31, 2021, the Company amended its term loan facility with its lenders and drew down an additional $52,500,000 to fund part of the acquisition of StarBlue Inc. At the time of the draw down of the additional amounts, the following amendments were made to the agreement:

			• The provision for additional funding related to VoIP Innovations under the original
					agreement was no longer necessary and has been cancelled.
			• The swingline facility was converted from CAD $2,000,000 to USD $1,500,000. • The revolver facility was converted from CAD $8,000,000 to USD $6,000,000.
			• The debt to equity ratio calculation now allows the Company to offset up to US
					$10,000,000 of unrestrained funds against the outstanding amount of the debt.

			The interest rates charged continue to be based on Prime rate, US Base rate, London Inter-Bank Offered Rate (LIBOR) or Canadian Dollar Offered Rate (CDOR) plus the applicable margin. The incremental draw is repayable, on a straight-line basis, through quarterly payments of $2,187,500 and is due to mature on October 18, 2024. As at September 30, 2021, $8,750,000 (June 30, 2021 - $8,750,000) of the incremental facility is classified as current and $39,375,000 (June 30, 2021 – $41,562,500) is classified as long-term in the condensed consolidated interim statements of financial position.

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Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


9.		Operating facility and loan and derivative liability (continued)
		For the three month period ended September 30, 2021, the Company incurred interest costs to service the borrowing facilities in the amount of $536,249 (for the three month period ended September 30, 2020 - $307,338). During the three month period ended September 30, 2021, the Company borrowed $nil (three month period ended September 30, 2020 - $nil) in operating facility and loans and repaid $3,637,500 (three month period ended September 30, 2020 - $8,050,000).

		Under its credit agreements with its lenders, the Company must satisfy certain financial covenants, principally in respect of total funded d
			ebt to earnings before interest, taxes and amortization (“EBITDA”),
		and debt service coverage ratio. As at September 30, 2021 and June 30, 2021, the Company was in compliance with all covenants related to its credit agreements. (b) Derivative liability The Company uses derivative financial instruments to hedge its exposure to interest rate risks. All derivative financial instruments are recognized as either assets or liabilities at fair value on the condensed consolidated interim statements of financial position. Upon entering into a hedging arrangement with an intent to apply hedge accounting, the Company formal y documents the hedge relationship and designates the instrument for financial reporting purposes as a fair value hedge, a cash fl ow hedge, or a net investment hedge. When the Company determines that a derivative financial instrument qualifies as a cash flow hedge and is effective, the changes in fair value of the instrument are recorded in accumulated other comprehensive income (loss), net of tax in the condensed consolidated interim statements of financial position and will be reclassified to earnings when the hedged item affects earnings. On January 21, 2020, the Company converted its US Base Rate loan to a one -month LIBOR loan plus the credit spread based on the syndicated loan agreement entered into on October 18, 2019. Separately, as required under the agreement, the Company locked in half of the original loan amount by entering into a 5-year interest rate credit swap with the two banks for $8,700,000 each to manage its exposure to changes in LIBOR-based interest rates. The interest rate swap hedges the variable cash flows associated with the borrowings under the loan facility, effectively providing a fixed rate of interest for five years of the six-year loan term. The interest rate swap arrangement with two banks became effective on January 31, 2020, with a maturity date of December 31, 2024. The notional amount of the swap agreement at inception was $17 ,400,000 and decreases in line with the term of the loan facility. As of September 30, 2021, the notional amount of the interest rate swap was $12,104,348 (June 30, 2021
				– $12,860,870). The interest rate swap has a
		weighted average fixed rate of 1.65% (June 30, 2021		– 1.65%) and has been designated as an effective
		cash flow hedge and therefore qualifies for hedge accounting. As at September 30, 2021, the fair value of the interest rate swap liability was valued at $294,295 (June 30, 2021 - $333,315) and was recorded as derivative liability in the condensed consolidated interim statements of financial position. For the three month period ended September 30, 2021, the change in fair value of the interest rate swaps, net of tax, was a gain of $39,020 (three month period ended September 30, 2020
					– gain of $36,117) was recorded
		in other comprehensive income (loss) in the condensed consolidated interim statements of income (loss) and comprehensive income (loss). The fair value of interest rate swap is determined based on the market conditions and the terms of the interest rate swap agreement using the discounted cash flow methodology. Any differences between the hedged LIBOR rate and the fixed rate are recorded as interest expense on the same period that the related interest is recorded for the loan facility based on the LIBOR rate.


	14

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


10.		Income tax
		The Company income tax expense is determined as follows:

		The following table summarizes the components of deferred tax assets (liabilities):
			September 30,	June 30,
					2021	2021
					$	$
		Deferred income tax assets and liabilities
		Non-deductible reserves - Canadian			436,418		316,605
		Non-deductible reserves - USA	4,694,257		4,711,599
		SR&ED investment tax credits, net of 12(1)(x)	1,457,391		1,457,466
		Property and equipment - Canadian			(194,857)		(211,565)
		Property and equipment - USA	(1,493,645)		(1,492,571)
		Deferred development costs			(608,339)		(608,370)
		Intangible assets including goodwill - Canadian			(83,726)		(81,574)
		Intangible assets including goodwill - USA	(40,303,287)		(41,967,482)
		Non-capital losses carried forward - USA	3,716,864		5,159,051
		Non-capital losses carried forward - Canadian			128,427		-
		Capital losses carried forward and other - Canadian			3,529		3,528
		Right of use assets net of obligations - Canadian			28,747		29,988
		Right of use assets net of obligations - USA			161,032		148,445
		Share issuance costs - Canadian	1,069,819		1,146,005
		Acquisition costs & other - USA			401,733		420,608
		Stock options - USA	8,538,858		8,259,714
		Net deferred income tax liabilities	(22,046,779)		(22,708,553)


	15

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


10.		Income tax (continued)
		Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. The following table shows the movement in net deferred tax assets (liabilities):

		Unrecognized deferred tax assets
		Deferred taxes are provided as a result of temporary differences that arise due to the differences between the income tax values and the carrying amount of assets and liabilities. Deferred tax assets have not been recognized in respect of the following deductible temporary differences:
			September 30,	June 30,
					2021	2021
	$
		Capital losses carried forward and other - Canadian			40,635		40,637
		Capital losses carried forward - USA	12,884,540		12,884,540

		The net capital loss carry forward may be carried forward indefinitely but can only be used to reduce capital gains. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the group can utilize the benefits therefrom. The Company has deducted available SR&ED for federal and provincial purposes and unutilized SR&ED tax credits. These condensed consolidated interim financial statements take into account an income tax benefit resulting from tax credits available to the Com pany to reduce its net income for federal and provincial income tax purposes in future years as follows:
		Year of					Federal tax credits	Ontario tax credits
		expiration						carry forward	carry forward
					$	$
		2034	211,910					-
		2035	233,033					-
		2036	269,957					-
		2037	242,364					-
		2038	183,636					-
		2039	262,957					-
		2040	243,520					34,645
		2041	332,760					49,122
			1,980,137					83,767

	16

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


10.			Income tax (continued)
			The income tax benefit of eligible SR&ED costs incurred in prior years but not utilized have been taken into account in these condensed consolidated interim financial statements.
11.			Shareholders’ equity
			(i)	Share capital
			The Company’s authorized share capital consists of an unlimited number of common shares without par value. As at September 30, 2021 and 2020, the
					Company’s issued and outstanding common shares
			consist of the following:

			On March 31, 2021, the Company acquired StarBlue Inc. and issued 3,018,685 common shares valued in the amount of $66,873,399 as part of the consideration, and 18,456 common shares valued in the amount of $330,460 as part of the acquisition costs (Note 20). Under the terms of the agreement, a further 12,695,600 common shares valued in the amount of $192,101,973 will be issued in instalments over fourteen quarters commencing on April 1, 2022 which would bring the total common shares to 31,717,214. The $192,101,973 discounted value of the 12,695,600 common shares not yet issued is recorded as shares to be issued in the condensed consolidated interim
						statements of changes in shareholders’ equity.
			On July 30, 2020, the Company closed its short-form prospectus offering with 5,000,857 common shares being issued at a price of CAD$16.10 per common share including 652,285 common shares issued upon the exercise in full of the over-allotment option grant to the Underwriter for aggregate gross proceeds of CAD $80,513,800 and net proceeds of CAD $75,283,264 ($56,295,235).
			During the three month period ended September 30, 2021, no options were exercised. During the three month period ended September 30, 2020
	– 433 options were exercised for cash consideration of $839,
			and the Company recorded a charge of $412 from contributed surplus to share capital.

		17

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


11.		Shareholders’ equity (continued)
		(ii)	Stock options
		During the year ended June 30, 2020, the shareholders of the Company amended the stock option plan
		(the “plan”) for officers, employees and consultants of the Company. The number of common shares that may be set aside for issuance under the plan (and under all other management stock option and employee stock option plans) is limited to 10% of the outstanding common shares of the corporation provided that the Company complies with the provisions of policies, rules and regulations of applicable securities legislation. The maximum number of common shares that may be reserved for issuance to any one person under the plan is 5% of the common shares outstanding at the time of grant (calculated on a non -diluted basis) less the number of common shares reserved for issuance to such person under any stock option to purchase common shares granted as a compensation or incentive mechanism. Any common shares subject to a stock option, which for any reason are terminated, cancelled, exercised, expired, or surrendered will be available for a subsequent grant under the plan, subject to regulatory requirements.
		The stock option price of any common shares cannot be less than the closing price or the minimum price
		as determined by applicable regulatory authorities of the relevant class or series of shares, on the day immediately preceding the day on which the stock option is granted. Stock options granted under the plan may be exercised during a period not exceeding five years from the date of grant, subject to earl ier
		termination on the termination of the optionee’s employment, on the optionee’s ceasing to be an employee, officer or director of the Company or any of its subsidiaries, as applicable, or on the
				optionee’s retiring,
		becoming permanently disabled or dying, subject to certain grace periods to allow the optionee or his or her personal representative time to exercise such stock options. The stock options are non -transferable. The plan contains provisions for adjustment in the number of common shares issuable thereunder in the event of the subdivision, consolidation, reclassification or change of the common shares, a merger, or other relevant changes in the Company’s capitalization. The board of directors may, from time to time, amend or revise the terms of the plan or may terminate the plan at any time.

		The following table shows the movement in the stock option plan:


		The Company uses the fair value method to account for all share -based awards granted to employees, officers, and directors. The estimated fair value of stock options granted is determined using the Black-Scholes option pricing model and is recorded as a charge to income over the vesting period of the stock options, with a corresponding increase to contributed su rplus. Stock options are granted at a price equal to or above the fair value of the common shares on the day immediately preceding the date of the grant. The consideration received on the exercise of stock options is added to stated capital at the time of exercise.
	18

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


11.		Shareholders’ equity (continued)
		(ii)	Stock options (continued)
		On September 30, 2021, the Company granted 285,714 stock options to employees, officers, and directors at a strike price of $18.62 vesting over a period of four years.


		The following table summarizes information about the stock options outstanding and exercisable at the end of each period:

		For the three month period ended September 30, 2021, the Company recognized share-based compensation expense in the amount of $2,119,285 (three month period ended September 30, 2020 - $154,478).

		(iii)	Earnings per share
		Both the basic and diluted earnings per share have been calculated using the net income attributable to the shareholders of the Company as the numerator.

	19

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


11.		Shareholders’ equity (continued)
		(iii)	Earnings per share (continued)

		Under the terms of the StarBlue Inc. share purchase agreement, a further 12,695,600 shares will be issued in instalments over the fourteen quarters commencing on April 1, 2022.
12.		Related parties
		The Company’s related parties include key management personnel and directors. Unless otherwise stated, none of the transactions incorporated special terms and conditions and no guarantees were given or received. Outstanding balances payable are usually settled in cash and relate to director fees.
		The Company had incurred no related party transactions during the three month period ended September 30, 2021 (three month ended September 30, 2020 - $nil) and had no outstanding balance with related parties as at September 30, 2021 (June 30, 2021 - $nil).
13.		Financial instruments
		The fair values of the cash and cash equivalents, trade receivables, contract assets, other current assets, accounts payable and accrued liabilities, consideration payable and derivative liability approximate their carrying values due to the relatively short-term nature of these financial instruments or as these financial instruments are fair valued at each reporting period. The fair values of operating facility and loans approximate their carrying values due to variable interest loans or fixed rate loan, w hich represent market rate.

		Cash and cash equivalents are comprised of:
				September 30,	June 30,
						2021	2021
						$	$
		Cash at bank and on hand		19,128,844		22,095,596

		Cash includes demand deposits with financial institutions and cash equivalents consist of short -term, highly liquid investments purchased with original maturities of three months or less. As at September 30, 2021 and June 30, 2021, the Company had no cash equivalents.

	20

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


13.		Financial instruments (continued)
		Total interest income and interest expense for financial assets or financial liabilities that are not at fair value through profit or loss can be summarized as follows:
					Three month periods
					ended September 30,
					2021	2020
					$	$
		Interest income			(275)			(1,180)
		Interest expense (Notes 9, 17)			655,855			389,465
		Net interest expense			655,580			388,285

		The Company examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, foreign currency risk, interest rate risk and market risk.
		Credit risk
		Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its obligations. Where possible, the Company uses an insurance policy with Export Development Canada (
			“EDC”) for its trade receivables to manage this risk and minimize any exposure.
		The Company		’s maximum exposure to credit risk for its trade receivables is summarized as follows with
		some of the over 90-day receivable not being covered by EDC:

					September	June 30,
								2021	2021
								$	$
		Trade receivables aging:
		0-30 days			10,599,134					11,691,613
		31-90 days			2,730,534		2,786,708
		Greater than 90 days			1,784,544		1,350,796
					15,114,212					15,829,117
		Expected credit loss provision			(1,043,682)					(1,094,700)
					14,070,530					14,734,417


		The movement in the provision for expected credit losses can be reconciled as follows:





	21

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


13.			Financial instruments (continued)
			The Company applies the simplified approach to provide for expected credit losses as prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables and contract assets. The expected credit loss provision is based on the Company’s historical collections and loss experience and incorporates forward-looking factors, where appropriate. The provision matrix below shows the expected credit loss rate for each aging category of trade receivables.
											September 30, 2021
						Over 30
				Up to 30 days			Over 90 days
	Total					days past
					past due		past due
						due
			Default rates		1.38%	11.09%		33.34%
			Trade receivables						$	15,114,212		$	10,599,134	$	2,730,534	$	1,784,544
			Expected credit loss provision						$	1,043,682		$	145,824	$	302,834	$	595,024
							June 30, 2021
						Over 30
				Up to 30 days			Over 90 days
	Total					days past
					past due			past due
						due
			Default rates		1.80%	16.81%		30.76%
			Trade receivables						$	15,829,117		$	11,691,613	$	2,786,708	$	1,350,796
			Expected credit loss provision						$	1,094,700		$	210,648	$	468,484	$	415,568
			Substantially all of the Company’s cash and cash equivalents are held with major Canadian or US financial institutions and thus the exposure to credit risk is considered insignificant. Management actively monitors the Company’s exposure to credit risk under its financial instruments, including with respect to trade receivables.
			Liquidity risk
			Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities. The Company has a planning and budgeting process in place by which it anticipates and determines the funds required to support its normal operating requirements. The Company coordinates this planning and budgeting process with its financing activities through its capital management process.
			The Company holds sufficient cash and cash equivalents and working capital, maintained through stringent cash flow management, to ensure sufficient liquidity is maintained. The following are the undiscounted contractual maturities of significant financial liabilities of the Company as at September 30, 2021:




		22

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


13.			Financial instruments (continued)
			Foreign currency risk A p
			ortion of the Company’s transactions occur in a foreign currency (Canadian dollars (CAD), Euros
			(EUR), and Great British Pounds (GBP)) and, therefore, the Company is exposed to foreign currency risk at the end of the reporting period through its foreign denominated cash, trade receivables, contract assets, accounts payable and accrued liabilities, and operating facility and loans. As at September 30, 2021, a 10% depreciation or appreciation of the CAD, EUR, and GBP against the U.S. dollar would have resulted in an approximate $21,768 (September 30, 2020 - $110,303) increase or decrease, respectively, in total comprehensive income (loss).
			Interest rate risk
			The Company’s exposure to interest rate fluctuations is with its credit facility (Note 9) which bears interest at a floating rate. As at September 30, 2021, a change in the interest rate of 1% per annum would have an impact of approximately $597,250 (September 30, 2020 - $145,000) per annum in finance costs. The Company also entered an interest rate swap arrangement for its loan facility (Note 9) to manage the exposure to changes in LIBOR-rate based interest rate. The fair value of the interest rate swaps was estimated based on the present value of projected future cash flows using the LIBOR forward rate curve. The model used to value the interest rate swaps included inputs of readily observable market data, a Level 2 input. As described in detail in Note 9, the fair value of the interest rate swaps was a liability of $294,295 on September 30, 2021 (June 30, 2021
	– $333,315).
14.			Capital management
			The Company’s objectives in managing capital are to safeguard the Company’s assets, to ensure sufficient liquidity to sustain the future development of the business via advancement of its significant research and development efforts, to conservatively mana ge financial risk and to maximize investor, creditor,
				and market confidence. The Company considers its capital structure to include its shareholders’
			equity and operating facilities and loans. Working capital is optimized via stringent cash flow policies surrounding disbursement, foreign currency exchange and investment decision -making. There have been no changes in the Company’s approach to capital management during the period and apart from the financial covenants as discussed in Note 9, the Company is not subject to any other capital requirements imposed by external parties.
15.			Contract liabilities
			Contract liabilities, which includes deferred revenues, represent the future performance obligations to customers in respect of services or customer activation fees for which consideration has been received upfront and is recognized over the expected term of the customer relationship. Contract liabilities
					as at September 30, 2021 and June 30, 2021 are below:
		$
			Opening balance, June 30, 2020			10,820,098
			Revenue deferred during the year			19,775,691
			Deferred revenue amortized into income during the year			(20,374,484)
			Additions through business combination (Note 20)			5,532,426
			Ending balance, June 30, 2021			15,753,731
			Revenue deferred during the period			9,826,402
			Deferred revenue amortized into income during the period			(10,575,078)
			Ending balance,September 30, 2021			15,005,055
			Contract liabilities - Current			10,790,421
			Contract liabilities - Non-current			4,214,634
						15,005,055


		23

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


16.		Consideration payable
		As described in Note 20, consideration in the amount of $13,269,000 was payable as part of the acquisition of Star2Star. The fair value of consideration payable as of September 30, 2021 was determined using an effective tax rate of 24.56% and a discount rate of 4.9%. Th e fair value of the consideration payable is
		dependent upon the Company’s share price, foreign exchange rates and Company’s ability to utilize the underlying tax losses as they become available in each reporting period. The Company recognized a loss on change in fair value of consideration payable in the amount of $247,067 for the three month period ended September 30, 2021 (three month period ended September 30, 2020 - $nil). The balance of consideration payable as at September 30, 2021 is summarized belo w:
	$
		Opening balance, June 30, 2020	-
		Additions through business combination (Note 20)			13,269,000
		Gain on change in fair value			(4,167,186)
		Ending balance, June 30, 2021			9,101,814
		Loss on change in fair value			247,067
		Ending balance, September 30, 2021			9,348,881
		Consideration payable - Current			2,354,146
		Consideration payable - Non-current			6,994,7359,348,881

17.		Leases: Right-of-use assets and lease obligations
		The Company’s lease obligations and right-of-use assets are presented below:
				Right-of-use assets
	$
		Present value of leasesOpening IFRS 16 value as at July 1, 2020
					14,353,099
		Additions			1,904,906
		Addition through business combination (Note 20)			2,584,109
		Terminations			(886,786)
		Balance at June 30, 2021			17,955,328
		Additions			622,583
		Balance at September 30, 2021			18,577,911
		Accumulated depreciation and repaymentsOpening IFRS 16 value as at July 1, 2020
					2,481,570
		Depreciation expense			2,513,417
		Terminations			(569,575)
		Balance at June 30, 2021			4,425,412
		Depreciation expense			730,189
		Balance at September 30, 2021			5,155,601
		Net book value as at:June 30, 2021
					13,529,916
		September 30, 2021			13,422,310


	24

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


17.		Leases: Right-of-use assets and lease obligations (continued)
				Lease Obligations
	$
		Present value of leases
		Opening IFRS 16 value as at July 1, 2020
					12,197,527
		Additions			1,904,906
		Addition through business combination (Note 20)			2,662,967
		Repayments			(2,605,217)
		Interest expense			374,154
		Terminations			(291,660)
		Balance at June 30, 2021			14,242,677
		Additions			622,583
		Repayments			(797,898)
		Interest expense			119,607
		Balance at September 30, 2021			14,186,969
		Lease Obligations - Current			2,582,172
		Lease Obligations - Non-current			11,604,797
					14,186,969
		(1) Includes the impact of recognition exemptions including those for short-term and low-dollar value leases; includes the impact of judgment applied with regard to renewal options in the lease terms in which the Company is a lessee.
		(2) Right-of-use assets opening balance includes the impact of estimated restoration costs.
		(3) Addition through business combination represents the right-of-use asset and leased obligation of the leased office building of Star2Star Communications LLC, which was acquired on March 31, 2021.


18.		Provisions

		The provision for warranty obligations represents the Company’s best estimate of repair and/or replacement costs to correct product failures. The sales returns and allowances provision represent the
		Company’s best estimate of the value of the products sold in the current financial period that may be returned in a future period
			. The stock rotation provision represents the Company’s best estimate of the
		value of the products sold in the current financial period that may be exchanged for alternative products in a future period. The Company accrues for product warranties, stock rotation, and sales returns and allowances at the time the product is delivered.

	25

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


19.		Segment disclosures
		The Company operates in one operating segment; development, manufacturing, distribution and support of voice and data connectivity components for software -based communication applications. The majority of the Company’s assets are located in Canada and the United States of America (“USA”). The Company sells into three major geographic centers: USA, Canada and other foreign countries. The Company has determined that it has a single reportable segment as the Company’s decision makers review information on a consolidated basis.
		Revenues for group of similar products and services can be su mmarized for the three month periods ended September 30, 2021 and 2020 as follows:
			Three month periods
			ended September 30,
			2021	2020
			$	$
		Products		15,640,351	11,428,424
		Services		36,838,380	14,794,524
		Total revenues		52,478,731	26,222,948

		The sales, in US dollars, in each of these geographic locations fo r the three month periods ended September 30, 2021 and 2020 as follows:
			Three month periods
			ended September 30,
			2021	2020
			$	$
		USA		47,050,785	21,497,886
		Canada		1,341,055	1,029,589
		All other countries		4,086,891	3,695,473
		Total revenues		52,478,731	26,222,948

		The non-current assets, in US dollars, in each of the geographic locations as at September 30, 2021 and June 30, 2021 are below:





	26

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


20.		Business combinations
		a) On March 31, 2021, the Company acquired all of the shares of StarBlue Inc. (dba Star2Star
			Communications, herein “Star2Star”). The Company paid an aggregate purchase price of $381,636,405, which comprised of $109,392,033 cash consideration (adjusted from $105,000,000 as a result of initial closing adjustments), 15,714,285 common shares at a discounted value of $258,975,372, and an additional consideration payable for future tax benefit in the amount of $13,269,000. The Company issued 3,018,685 common shares (3,142,857 common shares less 124,172 shares representing a holdback for indemnification purposes) on closing of the acquisition, with the remaining 12,571,428 common shares to be issued and distributed in fourteen quarterly installments commencing on April 1, 2022. The fair value of the share consideration is determined using a put option pricing model with a share price of $22.99 ($28.91 CAD), volatility of 56.58%, risk free rate of 0.221% - 0.855%, time to maturity of 0.003
				– 4.25 years. The fair value of $13,269,000
			of consideration payable is related to estimated tax losses to be utilized in future years, and is determined using an effective tax rate of 24.56% and a discount rate of 4.9%. The Company acquired Star2Star to expand and broaden the suite of service offerings, add k ey customers and realize synergies by removing redundancies. The following table summarizes the fair value of consideration paid on the acquisition date and the allocation of the purchase price to the assets and liabilities acquired.
			Consideration		USD
			Cash consideration on closing			101,110,566
			Net working capital adjustment		446,834
			Cash paid relating to debt		2,581,193
			Cash held in escrow for working capital		1,000,000
			Cash held in escrow for PPP loan forgiveness		4,253,440
			Additional consideration for tax			13,269,000
			Common shares issued on closing			66,873,399
			Common shares reserved in escrow for indemnification		2,129,067
			Common shares reserved for future issuance			189,972,906
						381,636,405


			Purchase price allocation		USD
			Cash		3,830,067
			Accounts receivable		5,562,064
			Inventory		1,448,237
			Property and equipment		5,334,933
			Right-of-use assets		2,584,109
			Other current assets		1,496,235
			Accounts payable and accrued liabilities			(8,324,491)
			Contract liabilities			(5,532,426)
			Other liabilities		(925,334)
			Lease obligations on right-of-use assets			(2,662,967)
			Intangible assets			169,200,000
			Deferred tax liability on intangible			(25,476,181)
			Goodwill			235,102,159
						381,636,405

	27

Sangoma Technologies Corporation Notes to the condensed consolidated interim financial statements For the three month periods ended September 30, 2021 and 2020 (Unaudited in US dollars)


20.		Business combinations (continued)
			The Company incurred estimated transaction costs in the amount of $3,887,238 which were expensed and included in the condensed consolidated interim statements of income (loss) and comprehensive income (loss) for the year ended June 30, 2021. These costs were including 18,456 common shares valued at $330,460, which were issued at closing to an advisor. The acquisition has been accounted for using the acquisition method under IFRS 3, Business Combinations.
		b) On July 16, 2021, the Company purchased certain assets of M2 Telecom LLC. M2 was a channel
			partner for the Company’s wholesale Trunking as a Service “TaaS” business and the Company has taken over the sales team. The Company paid an aggregate purchase price of $2.0 million ($2.5 million CAD) which was allocated as goodwil (Note 8).
21.		Government assistance
		The outbreak of the novel strain of coronavirus, specifically identified as “COVID -19”, has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. Government Canada and the Bank of Canada have responded with significant monetary and fiscal interventions designed to stabilize economic conditions as temporary measures and one of them is the Canada Emergency Wage Subsidy (CEWS). The CEWS program offers assistance in the form of wage subsidy for qualifying businesses faced with specified levels of revenue decline , and the subsidy is targeted to either retain workforce on payroll or to re-hire furloughed employees. The CEWS program is applicable from March 15 to December 19, 2020 for eligible entities that experienced a reduction in gross revenue for the period as determined by the program. The Company received $nil under the CEWS for the three month period ended September 30, 2021 (three month period ended September 30, 2020
				– $106,899 which was recorded as an offset against
		salaries and wages in operating expenses in the condensed consolidated interim statements of income (loss) and comprehensive income (loss)).


22.		Subsequent events
		On November 1, 2021 the Company graduated from the TSX Venture Exchange to the Toronto Stock Exchange. On November 2, 2021 as previously authorized by its shareholders, the Company implemented a consolidation (reverse stock split) of its outstanding common shares on the basis of one new common share for every seven previously outstanding common shares. Common Shares commenced trading on the Toronto Stock Exchange on a post-consolidation basis beginning at the open of markets on November 8, 2021.
23.		Authorization of the condensed consolidated interim financial statements
		The condensed consolidated interim financial statements were authorized for issuance by the Board of Directors on November 12, 2021.
	28