Exhibit 99.12

 

Nuran Wireless Inc.

 

Condensed Interim Consolidated

Financial Statements

March 31, 2025 and 2024

 

Condensed Interim Consolidated Financial Statements  
 
Condensed Interim Consolidated Statements of Financial Position 2
 
Condensed Interim Consolidated Statements of Net Loss and Comprehensive Loss 3
 
Condensed Interim Consolidated Statements of Shareholders’ Equity (Deficiency) 4
 
Condensed Interim Consolidated Statements of Cash Flows 5
 
Notes to Condensed Interim Consolidated Financial Statements 6-29

 

The condensed interim consolidated financial statements of Nuran Wireless inc. for the first quarter ended March 31, 2025 as well as the corresponding comparative data were not subject to a review by the Company’s auditor.

 

 

2

Nuran Wireless Inc. 

Condensed Interim Consolidated Statements of Financial Position

As at March 31, 2025 and December 31, 2024 

(Expressed in Canadian dollars)

(Unaudited)

 

 

 

   2025-03-31   2024-12-31 
   $   $ 
ASSETS        
Current assets        
Cash   1,225,990    1,171,558 
Trade and other receivables   4,681,700    3,503,607 
Scientific research and experimental development          
tax credits receivable   142,008    115,800 
Accrued revenues (Note 3)   4,583,370    4,242,683 
Work in progress   645,541    645,541 
Inventories (Note 4)   5,623,532    5,075,950 
Prepaid expenses   117,813    52,898 
Security deposits and deposits on purchase of goods   1,557,769    1,317,304 
Current assets   18,577,723    16,125,341 
Non-current assets          
Property, plant and equipment (Note 5)   242,963    193,704 
Intangible assets (Note 6)   7,389,557    7,332,733 
Right-of-use assets (Note 7)   188,926    226,643 
Non-current assets   7,821,446    7,753,081 
Total assets   26,399,169    23,878,422 
           
LIABILITIES          
Current liabilities          
Trade and other payables   12,623,786    11,336,962 
Deferred revenue   2,879,344    2,520,879 
Loans payable (Note 8)   16,447,235    14,404,484 
Convertible debentures (Note 10A)   4,590,848    5,069,589 
Convertible debentures and derivative liability (Note 10B)   1,910,744    1,706,926 
Current portion of lease liabilities (Note 9)   199,668    189,898 
Current liabilities (Note 9)   38,651,625    35,228,738 
Non-current liabilities          
Lease liabilities (Note 9)   17,369    66,739 
Total liabilities   38,668,994    35,295,477 
           
Shareholders’ deficiency          
Share capital (Note 11)   56,025,337    54,994,088 
Warrants (Note 12)   806,495    761,495 
Contributed surplus (Notes 13)   6,731,440    6,731,440 
Fair value of conversion option (Note 14)   (89,903)   41,846 
Foreign exchange in translation of foreign operations   (1,256,051)   (1,148,311)
Accumulated deficit   (74,487,143)   (72,797,613)
Total shareholders’ deficiency   (12,269,825)   (11,417,055)
Total liabilities and shareholders’ deficiency   26,399,169    23,878,422 

 

 

 

The accompanying notes are an integral part of the amended condensed interim consolidated financial statements.

 

 

3

 

Nuran Wireless Inc. 

Condensed Interim Consolidated Statements of net Loss and Comprehensive Loss

For the periods ended March 31, 2025 and 2024 

(Expressed in Canadian dollars)

(Unaudited)

 

 

 

  

Three months ended

 
     
   2025-03-31   2024-03-31 
   $   $ 

Revenue

  2,209,079   572,727 
Cost of sales   310,699    527,240 
Gross profit (loss)   1,898,380    45,488 
           
Selling expenses
   149,517    190,119 
Administrative expenses   1,297,220    1,169,480 
Financial expenses   1,911,196    1,358,193 
Research and development costs, net of $26,209 in tax credits for the three-month period ended March 31, 2025, ($29,740 for the three-month period ended March 31, 2024)   206,503    93,666 
    3,564,436    2,811,458 
Loss before other elements   (1,666,055)   (2,765,971)
Other elements:          
Gain (Loss) on debt settlement   (23,474)   410,285 
    (23,474)   410,285 
Loss before income taxes   (1,689,530)   (2,355,685)
Income tax expense          
Income Tax        
Net loss for the period   (1,689,530)   (2,355,685)
           
Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods:          
           
Foreign exchange gain (loss) on translation of foreign operations   (107,740)   (202,460)
Total comprehensive income for the period   (1,797,270)   (2,558,145)
           
Net loss per share (Note 15)          
Basic and diluted loss per share   (0.03)   (0.05)
           
Weighted average number of outstanding common shares   62,933,021    47,522,443 

 

 

 

The accompanying notes are an integral part of the amended condensed interim consolidated financial statements.

 

 

4

 

Nuran Wireless Inc. 

Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity (Deficiency)

For the periods ended March 31, 2025 and 2024 

(Expressed in Canadian dollars)

(Unaudited)

 

 

 

                               2025-03-31 
   Share capital   Warrants   Contributed Surplus   Fair Value of the conversion option   Translation reserve   Deficit   Total Equity 
   Number   $   $   $   $   $   $   $ 
Balance as at January 1, 2025  $58,694,132   $54,994,088   $761,495   $6,731,440   $41,846   $(1,148,311)  $(72,797,613)  $(11,417,055)
Issue of shares (Note 11)   3,000,000    1,076,249            (131,749)           944,500 
Net loss for the period                           (1,689,530)   (1,689,530)
Debenture conversion in share capital (Notes 10A)   3,500,000                                    
Foreign exchange in translation of foreign operations                       (107,740)       (107,740)
Issue of warrants (Notes 11 and 12)       (45,000)   45,000                     
Balance as at March 31, 2025   65,194,132    56,025,337    806,495    6,731,440    (89,903)   (1,256,051)   (74,487,143)   (12,269,825)

 

                      2024-03-31 
   Share capital   Contributed Surplus   Contributed Surplus   Fair Value of the
conversion option
   Translation reserve   Deficit   Total Equity 
   Number   $   $   $   $   $   $   $ 
Balance as at January 1, 2024   43,043,579    51,413,683    792,537    6,623,291    21,990    22,567    (64,041,753)   (5,167,684)
Issue of shares (Note 11)   7,735,240    876,815                        876,815 
Net loss for the period                           (2,355,685)   (2,355,685)
Foreign exchange in translation of foreign operations                       (202,460)       (202,460)
Issue of warrants (Notes 11 and 12)      (55,060)   55,060                     
Balance as at March 31, 2024   50,778,819    52,235,438    847,597    6,623,291    21,990    (179,893)   (66,397,438)   (6,849,013)

 

 

 

The accompanying notes are an integral part of the amended condensed interim consolidated financial statements.

 

 

5

Nuran Wireless Inc. 

Amended Condensed Interim Consolidated Statements of Cash Flows

For the periods ended March 31, 2025 and 2024 

(Expressed in Canadian dollars)

(Unaudited)

 

 

 

   2025-03-31   2024-03-31 
   (3 months)   (3 months) 
    $    $ 
OPERATING ACTIVITIES          
Net loss   (1,689,530)   (2,355,685)
Non-cash flow adjustments          
Depreciation of property, plant and equipment   18,736    19,941 
Depreciation of intangible assets   5,539    9,302 
Depreciation of Right-of-use assets   43,598    58,373 
Amortization of OID   237,733    181,406 
Interest on lease liabilities   4,975    11,025 
(Gain) loss on debt settlement   23,474    (410,285)
Accretion of convertible debentures   433,550    237,795 
OID on convertible debenture   (1,705)    
Expected credit loss   (90,536)   (16,209)
Loan payable   31,232    704,148 
Net change in working capital items          
Trade and other receivables   (1,087,558)   (427,200)
Accrued revenues   (340,687)   (134,102)
Scientific research and experimental development          
tax credits receivable   (26,208)   (29,740)
Work in progress       (18,327)
Inventories   (547,582)   6,431 
Prepaid expenses   (64,915)   (27,734)
Security deposits and deposits on purchase of goods   (240,465)   (241,391)
Trade and other payables   1,280,944    965,424 
Deferred revenue   358,465    556,008 
Net cash from operating activities   (1,650,940)   (910,822)
           
INVESTING ACTIVITIES          
Purchase of property, plant and equipment   (67,995)   (11)
Purchase of intangible assets   (62,363)   (64,607)
Purchase of Right-of-use assets       (11,903)
Net cash used in investing activities   (130,358)   (76,521)
           
FINANCING ACTIVITIES          
Lease liabilities   7,879    14,723 
Repayment of lease liabilities   (52,454)   (69,184)
Repayment of loan payable   (600,790)    
Proceeds (repayment of) loan payable   2,588,835     
Issue of common shares       1,287,101 
Net cash used in financing activities   1,943,470    1,232,639 
Net decrease in cash   162,172    245,296 
Cash, beginning of period   1,171,558    172,880 
Foreign exchange in translation of foreign operations   (107,740)   (202,460)
Cash, end of period   1,225,990    215,716 

 

 

 

The accompanying notes are an integral part of the amended condensed interim consolidated financial statements.

 

 

6

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

1.NATURE OF OPERATIONS AND GOING CONCERN

 

Nuran Wireless Inc. (“Nuran” or the “Company”) was incorporated in the province of British Columbia, Canada on September 23, 2014. The Company’s registered office is located at 1000 – 595 Burrard Street, Vancouver BC V7X 1S8 and its place of business is at 2150, Cyrille-Duquet, suite 100, Québec (Québec) G1N 2G3.

 

The Company’s shares are traded on the Canadian Securities Exchange (the “CSE”) under the trading symbol “NUR”.

 

The Company with its subsidiaries (together, the “Company”) operates in the research, development, manufacturing, marketing and operation of digital electronic circuits and wireless telecommunication products and services to the mobile telephony industry.

 

A summary of the Company’s subsidiaries included in these condensed interim financial statements as at March 31, 2025 is as follows:

 

Name of subsidiaries

Country of

incorporation

Percentage

ownership

Functional

currency

Principal activity
         
Innovation Nutaq Inc. Canada 100% CAD Wireless solutions
         
Nuran Wireless (Africa) Holding Mauritius 100% USD Holding company
         
Nuran Wireless DRC SA DRC 100% USD Wireless solutions
         
Nuran Wireless Cameroon Ltd Cameroon 100% XAF Wireless solutions
         
Nuran Wireless Benin S.A.R.L.U Benin 100% XOF Wireless solutions
         
Nuran Wireless Madagascar S.A.R.L.U Madagascar 100% MGA Wireless solutions
         
Nuran Wireless Cote d’Ivoire S.A.R.L.U Ivory Coast 100% XOF Wireless solutions

 

XAF – Central African Franc; XOF – West African Franc; MGA – Malagasy Ariary;

 

 

7

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars) (Unaudited)

 

1.NATURE OF OPERATIONS AND GOING CONCERN (CONTINUED)

 

The Company provides products and services that help Mobile Network Operators (MNOs) profitably serve off-grid markets. The main strategy is to finance, build, sell to a customer and manage rural cellular infrastructure telecommunications sites, monetizing the assets through a Network as a Service (NaaS) business model that has been developed by the Company. It also sells products and services direct to MNOs and others which they build into their own networks.

 

These condensed interim consolidated financial statements have been prepared on a going concern basis of accounting, which assumes that the Company will continue operations for the foreseeable future and be able to realize the carrying value of its assets and discharge its liabilities and commitments in the normal course of business These condensed interim consolidated financial statements should be read in conjunction with the 2024 audited annual financial statements.

 

During the three-month period ended March 31, 2025, the Company incurred a net loss of $1,689,530 ($2,355,685 for the three-month period ended March 31, 2024) and used net cash of $1,650,940 ($910,822 for the three-month period ended March 31, 2024) in operating activities and, as of that date, had an accumulated deficit of $74,487,143 as at March 31, 2025 ($66,397,438 for the three-month period ended March 31, 2024) and a working capital deficiency of $20,073,903 ($14,367,604 for the three-month period ended March 31, 2024)

 

While these conditions indicate the existence of uncertainties that cast a doubt on the Company’s ability to continue as a going concern, they highlight the need for ongoing capital and operational management. The Company has a history of securing sufficient debt and equity funding and continues to actively pursue additional financing to support its operations and growth, and the Company has also realised recent growth in revenue which reduces the need to raise capital at the same level in the future. Management is focused on executing its strategy centered around the Network-as-a-Service (NaaS) model, which includes the deployment of over 5,000 rural mobile sites under contracts signed between 2020 and 2024.

 

The transition to the NaaS model involves significant upfront investment in network infrastructure. However, the Company has made meaningful progress in restructuring and repositioning its operations, including improving revenue generation and the operational performance of existing NaaS sites.

 

 

8

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

1.NATURE OF OPERATIONS AND GOING CONCERN (CONTINUED)

 

Although material uncertainties remain that could impact the Company’s ability to continue as a going concern, no adjustments have been made to the carrying amounts of assets and liabilities in these consolidated financial statements.

 

The condensed interim consolidated financial statements were approved and authorized for issue by the Board of Directors on May 29, 2025.

 

2.SUMMARY OF ACCOUNTING POLICIES

 

Overall considerations

 

The accounting policies are in accordance with those used in the preparation of the 2024 annual financial statements.

 

Significant management judgement in applying accounting policies and estimation uncertainty

 

When preparing the condensed interim financial statements, management makes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgments, estimates and assumptions made by management and will seldom equal the estimated results.

 

The judgments, estimates and assumptions applied in the condensed interim financial statements, including the key sources of estimation uncertainty, were the same as those applied in the Company’s last annual financial statements for the year ended December 31, 2024.

 

3.ACCRUED REVENUES

 

   2025-03-31   2024-12-31 
    $    $ 
Equipments sale   4,957,347    4,583,728 
Services revenues   6,133,083    4,572,793 
Interest Revenues   722,254    664,858 
Sites revenues   (7,229,314)   (5,578,696)
    4,583,370    4,242,683 

 

Accrued revenues represents the cumulative deployment and construction sites revenue recognized under IFRS 15 for which the performance obligation has not been delivered.

 

 

9

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

4.INVENTORY

 

   2025-03-31   2024-12-31 
    $    $ 
Raw materials  1,303,782   1,273,705 
Finished goods   1,375,539    1,107,284 
Work in progress   2,944,211    2,694,961 
    5,623,532    5,075,950 

 

5.PROPERTY, PLANT AND EQUIPMENT

 

The Company’s property, plant and equipment and their carrying amounts are detailed as follows:

 

       March 31, 2025 
         Equipment and           
         furniture,           
         telecommunication           
         system,           
    Leasehold    furniture    Computer      
    improvements    and fixtures    equipment    Total 
    $    $    $    $ 
Gross carrying amount                    
Balance as at December 31, 2024  $8,996   $746,818   $358,758   $1,114,572 
Additions       23,386,056    2,267,265    25,653,321 
Current translation effects       (11,146,078)   (14,439,247)   (25,585,325)
Balance as at March 31, 2025   8,996    12,986,796    (11,813,224)   1,182,568 
                     
Depreciation and impairment                    
Balance as at December 31, 2024   5,383    597,090    318,395    920,868 
Depreciation   450    2,914,145    645,152    3,559,747 
Current translation effects       (2,899,878)   (641,132)   (3,541,010)
Balance as at March 31, 2025   5,833    611,357    322,415    939,605 
Carrying amount as at March 31, 2025   3,163    12,375,439    (12,135,639)   242,963 

 

 

10

NuRAN Wireless Inc.

Notes to Condensed Interim Consolidated Financial

Statements 

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

5.PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

 

       December 31, 2024 
   Leasehold improvements  

Equipment and furniture, telecommunication system,

furniture

and fixtures

  

Computer

equipment

   Total 
    $    $    $    $ 
Gross carrying amount Balance as at December 31, 2023  7,727   763,928   354,258   1,125,913 
Additions   1,269    1,498,500    1,501,050    3,000,819 
Disposal                
Write- off       (37,435)        (37,435)
Current translation effects       (1,478,175)   (1,496,550)   (2,974,725)
Balance as at December 31, 2024   8,996    746,818    358,758    1,114,572 
                     
Depreciation and impairment Balance as at December 31, 2023   3,773    549,011    298,267    851,051 
Depreciation   1,610    8,987,906    1,868,879    10,858,394 
Disposal                
Write- off       (15,161)       (15,161)
Current translation effects       (8,924,665)   (1,848,751)   (10,773,416)
Balance as at December 31, 2024   5,383    597,090    318,395    920,868 
Carrying amount as at December 31, 2024   3,613    149,728    40,363    193,704 

 

 

11

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

6.INTANGIBLE ASSETS

 

The Company’s intangible assets and their carrying amounts are detailed as follows:

 

   March 31, 2025 
   Software   Trademarks   Total 
    $    $    $ 
Gross carrying amount               
Balance as at December 31, 2024  8,160,650   44,244   8,204,894 
Additions               
Under development   61,353        61,353 
Acquired   1,012        1,012 
Balance as at March 31, 2025   8,223,015    44,244    8,267,259 
                
Depreciation and impairment               
Balance as at December 31, 2024   872,162        872,162 
Amortization   5,539        5,539 
Balance as at March 31, 2025   877,701         877,701 
Carrying amount as at March 31, 2025   7,345,313    44,244    7,389,557 

 

   December 31, 2024 
   Software   Trademarks   Total 
    $    $    $ 
Gross carrying               
amount               
Balance as at December 31, 2023  7,803,221   44,244   7,847,465 
Additions               
Under development   364,479        364,479 
Acquired   (7,050)       (7,050)
Balance as at December 31, 2024   8,160,650    44,244    8,204,894 
Depreciation and impairment               
Balance as at December 31, 2023   847,917        847,917 
Amortization   24,245        24,245 
Balance as at December 31, 2024   872,162         872,162 
Carrying amount as at December 31, 2024   7,288,489    44,244    7,332,733 

 

 

12

 

NuRAN Wireless Inc.

Notes to Condensed Interim Consolidated Financial

Statements 

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

7.RIGHT-OF-USE ASSETS

 

The Company’s right-of-use assets and their carrying amounts are detailed as follows:

 

   2025-03-31   2024-12-31 
   $   $ 
Gross carrying amount        
Balance as at December 31, 2024  815,051   1,038,642 
Addition   5,881    17,240 
Impairment       (180,103)
Current translation effects       (60,728)
Balance as at March 31, 2025   820,932    815,051 
           
Depreciation and impairment          
Balance as at December 31, 2024   588,408    551,364 
Amortization   43,598    197,785 
Impairment       (127,280)
Current translation effects       (33,461)
Balance as at March 31, 2025   632,006    588,408 
Carrying amount as March 31, 2025   188,926    226,643 

 

 

13

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

8.LOANS PAYABLES

 

   2025-03-31   2024-12-31 
    $    $ 
Loan from non-related company (a)  373,134   226,910 
Loan from non-related company (b)   2,394,359    2,839,102 
Loan from non-related company (c)   7,582,223    7,003,329 
Loan from non-related company (d)   311,876    355,645 
Loan from non-related company (e)   359,435    150,000 
Loan from non-related company (f)   5,426,208    3,829,499 
    16,447,235    14,404,484 

 

Given their short-term maturity, the carrying amount of loans receivable is considered a reasonable approximation of their fair value.

 

a)The loan from a non-related company is secured by a chattel mortgage on the universality of the Company’s assets.

 

On March 25, 2025, the Company amended the terms of the agreement to increase the maximum amount available on the facility to $462,500 and reduce interest to 5%.

 

b)The loan from a non-related company is a secured promissory note.

 

On June 24, 2024 the Company further extended the loan facility until December 31, 2025. As consideration, the Company agreed to increase the principal amount of the loan by US $230,117 as an extension fee, increased the interest rate to the default rate of 24% per annum and agreed to a repayment schedule to commence following the first drawdown under the Facility for Energy Inclusion (FEI) loan facility and monthly thereafter starting October 31, 2024. The lender also agreed to subordinate the loan to the FEI. A lending fee of US$50,000, accrued interest of US$259,190, compounded interest of US$83,164 and an extension fee of US$230,117 were added to the principal amount. The repayment requirement was not met.

 

During the three-month period ended March 31, 2025, the Company repaid US$ 337,581 for a remaining balance of US$1,665,525.

 

 

14

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

8.LOANS PAYABLE (CONTINUED)

 

c)The loan from a non-related company relates to a factoring agreement with a factoring company.

 

On April 2nd, 2024, the Company further amended the terms of the agreement by selling receivables valued at $1.911 million for proceeds of $1,000,000 consisting of a cash payment that has been received by the Company. $19,11 million was added to the factoring loan, $1,000,000 was recorded in factoring receivable and $1,910,763 was recoded in factoring reserve.

 

On June 25, 2024, the Company further amended the terms of the agreement to allow for the drawdown of an additional US$ 2,000,000 by selling additional receivables as required by the Company.

 

On December 23, 2024, the Company further amended the terms of the agreement to increase the maximum amount available on the facility to $25.5 million and reduce interest for 2024 to 5%. In addition, the lender has agreed to cap conversions so that no more than 30,000,0000 units form the previous 80,000,000 units which are eligible to be issued. Each unit included three quarters of one warrant to purchase a common share at $0.25 till August 28, 2028. As consideration to the lender, the Company agreed to reduce the price per unit to be $0.20 and extend the expiry of the warrants that have been issued or are to be issued to August 28, 2028. $3,100,000 was added to the factoring loan and $7,600,000 was recoded in factoring reserve (see note 19).

 

During the year ended December 31, 2024, the lender requested the conversion of debt under the agreement totaling a value of $1,459,709, including interest, in common shares of the Company. Taking into account the book value of the debt converted the carrying value recorded for these shares was $1,518,206.

 

During the three-month period ended March 31, 2025, the lender requested the conversion of debt under the agreement totaling a value of $221,026, in common shares of the Company. Taking into account the book value of the debt converted the carrying value recorded for these shares was $224,500.

 

d)This loan from bear interest at 11% and is payable over 24 months from December 5, 2023. During the three-months period ended March 31, 2025, the Company repaid US$ 43,264 for a remaining balance of US$216,942.

 

 

15

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements 

March 31, 2025 and 2024

(Expressed In Canadian dollars)

(Unaudited)

 

8.LOANS PAYABLE (CONTINUED)

 

e)This loan bears interest at 15% per annum and was repayable on February 6, 2025, but was not repaid on that date.

 

On January 22, 2025, the Company issued a promissory note of $63,405. The loan bear interest at 15% and is payable on March 8, 2025, but was not repaid on that date.

 

On February 4, 2025, the Company issued a promissory note of $146,030. The loan bear interest at 15% and is payable on March 14, 2025, but was not repaid on that date.

 

f)The loan is pursuant to a two-year term loan facility of US$5,000,000 dated July 5, 2024 with FEI to NuRAN Wireless (Africa) Holding. The loan is secured on the business and assets of NuRAN Wireless Cameroon Ltd and NuRAN Wireless DRC SA under general security agreement and bears interest at the Secured Overnight Financing Rate plus 8.5% per annum. Interest accrues but is not payable until maturity.

 

On March 10, 2025, the Company received of drawdown of US1,050,000.

 

9.LEASE LIABILITIES

 

The Company’s lease liabilities and their carrying amounts are detailed as follows:

 

   2025-03-31   2024-12-31 
    $    $ 
Gross carrying amount          
Balance as at December 31, 2024  256,637   527,588 
Additions   7,879    14,678 
Lease payments   (52,454)   (248,892)
Lease interest   4,975    34,225 
Waive off       (70,962)
Balance as at March 31, 2025   217,037    256,637 
           
Current   199,668    189,898 
Non-current   17,369    66,739 
    217,037    256,637 

 

 

16

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

10A. CONVERTIBLE DEBENTURES

 

As at March 31, 2025, the convertible debentures and derivative liability consists of:

 

       Unsecured     
   Convertible   Convertible     
   debentures   debentures   Total 
    $    $    $ 
Balance at December 31, 2023  2,191,884   1,954,034   4,145,918 
Extension (a)   1,935,682        1,935,682 
Effect of the modification (b)   (1,833,749)       (1,833,749)
Accretion of OID   43,590    362,811    406,401 
Conversion (c)   (225,000)       (225,000)
Accretion   311,681    328,657    640,338 
Balance at December 31, 2024   2,424,088    2,645,502    5,069,589 
                
Accretion of OID   130,770        130,770 
Conversion (d)   (700,000)       (700,000)
Accretion   90,488        90,488 
Closing balance, as at March 31, 2025   1,945,346    2,645,502    4,590,848 

 

(b)As at December 20, 2023, the Company extended the maturity date of the Convertible Debentures entered into in July 2022. The maturity date of the Convertible Debentures was extended to July 12, 2024 along with other terms of the original debenture which were amended. The original debenture had an original issuance discount of 10% and this was increased to 16% leading to a maturity value of CA$ 2,645,502. In addition, the principal amount is convertible into common shares of the Company at a fixed price of $0.40 at the option of the debenture holder during the term of the Convertible Debenture. Under the terms of the Convertible Debenture the principal amount is due one year from the date of closing and does not bear interest until the maturity date or an event of default occurs. The number and terms of warrants issued in conjunction with the original debenture, as well as all other terms of the debenture did not change.

 

The debenture value determined using the current value method was $2,273,353.

 

The fair value of the conversion option on December 20, 2023 was estimated at $nil, which was derived using a Black-Scholes option pricing model.

 

 

17

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

10A. CONVERTIBLE DEBENTURES (CONTINUED)

 

The Black-Scholes pricing model used for the conversion options used the following assumptions:

 

Share price  $0.11 
Exercise price  $0.40 
Time to maturity   6 months 
Risk-free rate   3.91%
Expected volatility   26.80%
Dividend yield   Nil 
Dilution factor   41.06%

 

(a), (b) On December 23, 2024, the Company extended the convertible secured debentures issued in August 2023. The debenture holders have agreed to extend the maturity for a further 28 months to December 31, 2026 and reduce the interest rate to 10% to December 2026. As consideration to these debenture holders, the Company agreed to increase the principal amount owing of $2,256,419 to include interest accrued to date of $882,034, a one-time extension fee of 15% and a prepayment of interest for 2025 as an increase in the principal amount. In addition, the Company agreed to reduce the price per Unit to $0.20 and to extend the expiry of the warrants that have been issued or are to be issued upon conversion to August 28, 2028. The new principal amount of $4,184,604 includes an Original Issuance Discount (“OID”) of 25% of $1,046,151 (a). The OID is amortized over two years and it recorded in the consolidated statement of financial position as convertible debenture and in profit and loss as financial expenses

 

The debenture value determined using the current value method was $3,397,006.

 

The principal amount is convertible, at the option of the debenture holder, into common shares of NuRAN at any time before the maturity date at a price of $0.20 per common share.

 

 

18

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

10A. CONVERTIBLE DEBENTURES (CONTINUED)

 

The fair value of the conversion option on December 23, 2024 was estimated at $41,846 (a), which was derived using a Black-Scholes option pricing model:

 

Share price  $0.09 
Exercise price  $0.20 
Time to maturity   2 years 
Risk-free rate   3.03%
Expected volatility   60.18%
Dividend yield   Nil 
Dilution factor   38.43%

 

(c)During the year ended December 31, 2024, the debenture holders requested the conversion of debentures totalling a value of $225,000 in common shares of the Company. Taking into account the book value of the debentures converted, as well as the value of the conversion option, the carrying value recorded for these shares was $227,000 (Note 11).

 

(d)During the three-month period ended March 31, 2025, the debenture holders requested the conversion of debentures totalling a value of $700,000 in common shares of the Company. Taking into account the book value of the debentures converted, as well as the value of the conversion option, the carrying value recorded for these shares was $831,749 (Note 11).

 

 

19

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

10B. CONVERTIBLE DEBENTURES AND DERIVATIVES LIABILITIES

 

As at March 31, 2025, the unsecured convertible debentures and derivative liability consist of the following:

 

   Unsecured         
   Convertible   Derivative     
   debentures   liability   Total 
    $    $    $ 
Balance at December 31, 2023             
Issuance  3,008,309      3,008,309 
Original issuance discount (OID)   (1,637,698)       (1,637,698)
Fair value adjustment       53,482    53,482 
Accretion of OID   138,389        138,389 
Accretion   121,759        121,759 
Fair value adjustment       (53,482)   (53,482)
Effect of foreign exchange   76,166        76,166 
Closing balance, as at December 31, 2024   1,706,926        1,706,926 
                
Accretion of OID   106,962        106,962 
Accretion   98,562        98,562 
Effect of foreign exchange   (1,705)        (1,705)
Closing balance, as at March 31, 2025   1,910,744         1,910,744 

 

On August 16, 2024, the Company issued unsecured convertible debentures in the principal amount of US$2,194,772 with an original issue discount equal to 25% of the purchase price. The debenture matures on August 16, 2026. Interest is accrued until the maturity date, at a rate of 15% per annum. The debenture value determined using the current value method was $1,594,729. The principal amount is convertible, at the option of the debenture holder, into common shares of NuRAN at any time before the maturity date at a price of $0.225 per common share.

 

 

20

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

10B. CONVERTIBLE DEBENTURES AND DERIVATIVES LIABILITIES (CONTINUED)

 

The fair value of derivative liability on August 16, 2024 was estimated at $53,482, which was derived using a Black-Scholes option pricing model:

 

Share price  $0.12 
Exercise price  $0.225 
Time to maturity   2 years 
Risk-free rate   3.31%
Expected volatility   57.08%
Dividend yield   Nil 
Dilution factor   38.86%

 

The fair value at December 31, 2024 was estimated at $nil, which was derived using a Black-Scholes option pricing model:

 

Share price  $0.08 
Exercise price  $0.225 
Time to maturity   1.58 years 
Risk-free rate   2.93%
Expected volatility   55.18%
Dividend yield   Nil 
Dilution factor   38.04%

 

The Company measured the conversion feature of convertible debentures at FVTPL and the conversion feature was classified as a derivative financial liability for the loan, which was denominated in a currency other than the Company’s functional currency (and therefore its exercise price is not fixed in the Company’s functional currency) and is convertible into a variable number of both common shares and warrants. The embedded derivative did not qualify as an equity instrument due to not meeting the “fixed for fixed” criteria of IAS 32 Financial instruments: Presentation. Therefore, the Company separated the embedded derivative from the host contract and accounted for each element separately. The embedded derivative was initially recognized at its fair value. The amount of change in the fair value of the derivative is presented in profit or loss.

 

 

21

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

11. SHARE CAPITAL

 

NuRAN’s share capital consists only of fully paid shares of each of the following categories, each of an unlimited amount and without nominal value:

 

Common shares, voting and participating

 

Preferred shares

 

    2025-03-31   2024-12-31  
    Number    $    Number    $ 
Balance as at December 31, 2024   58,694,132    54,994,088    43,043,579    51413683 
Issue of share capital   3,000,000    1,076,249    14,650,553    1842306 
Convertible Debenture               1588204 
Debenture conversion in share capital   3,500,000        1,000,000    227000 
Issue of Warrants       (45,000)       (77,106)
Balance as at March 31, 2025   65,194,132    56,025,337    58,694,132    54,994,088 

 

During the three-month period ended March 31, 2025, the Company had the following share transactions:

 

(a)From January 2, 2025, to February 12, 2025, the Company issued 3,000,000 shares as of loan conversion with shares price between $0.078 and $0.085, resulting in the recognition of $244,500 as share capital and $23,474 as loss on debt settlement in the profit and loss.

 

(b)Nil in 2025

 

(c)From January 20, 2025, to February 19, 2025, the Company issued 3,500,000 shares upon the conversion of debenture at a share price of $0.20 (Note 10A).

 

(d)From January 2, 2025, to February 19, 2025, the Company issued 6,000,000 warrants for loan and debenture exercise. The fair value of the warrants was $45,000.

 

 

22

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

11. SHARES CAPITAL (CONTINUED)

 

During the year ended December 31, 2024, the Company had the following share transactions:

 

(e)From January 10, 2024 to December 31, 2024, the Company issued 371,100 shares as of shares for services with shares price between $0.105 and $0.13, resulting in the recognition of $45,200 as administrative expenses in the profit and loss.

 

From January 31, 2024 to November 7, 2024, the Company issued 11,879,453 shares as of loan conversion with shares price between $0.10 and $0.166, resulting in the recognition of $1,543,106 as share capital and $1,127,771 as loss on debt settlement in the profit and loss.

 

On January 2, 2024, 1,900,000 shares were issued as bonus shares resulting in the recognition of $45,000 as a loss on debt settlement in the profit and loss.

 

On December 16, 2024, the Company issued 500,000 shares were issued as interest payment on debenture, resulting in the recognition of $209,000 as administrative expenses in the profit and loss.

 

From February 21, 2023 to December 31, 2023, $1,534,722 was recognized for the fair value on debentures

 

(f)On August 16, 2024, $822,461 was recognized for the fair value on debentures. On December 23, 2024, $765,742 was recognized for the fair value on debentures.

 

(g)On April 2025, the Company issued 1,000,000 shares upon the conversion of debenture at a share price of $0.225 (Note 17).

 

(h)From January 31, 2024 to November 7, 2024, the Company issued 9,659,582 warrants for loan and debenture exercise. The fair value of the warrants was $77,106.

 

 

23

NuRAN Wireless Inc.

Notes to Condensed Interim Consolidated Financial

Statements 

March 31, 2025 and 2024

(Expressed In Canadian dollars)

(Unaudited)

 

12. WARRANTS

 

The following is a summary of the activity of warrants:

 

   2025-03-15   2024-12-31 
    $    $ 
Balance as at December 31, 2024  761,495   792,537 
Issue of Warrants   45,000    77,106 
Warrants expired       (108,148)
Balance as at March 31, 2025   806,495    761,495 

 

   Three months ended March 31, 2025 
   Number of warrants   Weighted average exercise price 
       $ 
Opening balance  18,539,206   0.38 
Granted during the period   6,000,000    0.22 
Closing balance, as at March 31, 2025   24,539,206    0.24 
           
Closing balance of exercisable warrants, as at March 31, 2025   24,539,206    0.24 

 

  

Twelve months ended December 31,

2024

 
   Number of 
warrants
  

Weighted

average
exercise price

 
Opening
        $ 
balance  11,911,105   1.20 
Granted during the period   9,659,582    0.25 
Expired during the period   (3,031,481)   0.98 
Closing balance, as at December 31, 2024   18,539,206    0.38 
Closing balance of exercisable warrants, as at December 31, 2024   18,539,206    0.38 

 

 

24

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements 

March 31, 2025 and 2024

(Expressed In Canadian dollars)

(Unaudited)

 

12. WARRANTS (CONTINUED)

 

The following is a summary of warrants outstanding and exercisable, as at March 31, 2025:

 

        Warrants       Warrants 
        outstanding       exercisable 
        Weighted       Weighted 
        average       average 
        contractual       contractual 
    Number   life (years)   Number   life (years) 
March 31, 2025                 
Exercise price                 
$0.20    3,375,000    3.41    3,375,000    3.41 
$0.25    13,114,207    1.41    13,114,207    1.41 
$0.25    5,000,000    0.67    5,000,000    0.67 
$0.40    150,000    1.41    150,000    1.41 
$1.10    2,899,999    0.39    2,899,999    0.39 
      24,539,206         24,539,206      

 

        Warrants      Warrants 
        outstanding      exercisable 
        Weighted      Weighted 
        average      average 
December 31, 2024       contractual      contractual 
Exercise price   Number   life (years)  Number   life (years) 
$0.25    10,489,207   1.66   10,489,207    1.66 
$0.25    5,000,000   0.92   5,000,000    0.92 
$0.40    150,000   1.66   150,000    1.66 
$1.10    2,899,999   0.63   2,899,999    0.63 
      18,539,206       18,539,206      

 

 

25

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

12.WARRANTS (CONTINUED)

 

During the year ended December 31, 2024, the Company issued 9,659,582 warrants. The value totaling $71,856 was obtained using the Black-Scholes option pricing model using the following assumptions: risk-free interest rate between 2.93% and 4.35%; expected volatility between 55.93% and 62.68%; expected dividend yield of 0%; expected life between one and two years and exercise price of $0.25. Expected volatility was based on the historical volatility of other comparable listed companies. The share price upon issuance was between $0.10 and $0.17.

 

During the three-month period ended March 31, 2025, the Company issued 6,000,000 warrants. The value totaling $45,000 was obtained using the Black-Scholes option pricing model using the following assumptions: risk-free interest rate between 2.54% and 3.07%; expected volatility between 74.52% and 76.77%; expected dividend yield of 0%; expected life between 3.33 and 3.58 years and exercise price of $0.25. Expected volatility was based on the historical volatility of other comparable listed companies. The share price upon issuance was between $0.078 and $0.085.

 

13.CONTRIBUTED SURPLUS

 

The Company has a stock option plan for its employees, officers, directors and consultants for up to 10% of the issued and outstanding shares at the grant date.

 

The following is a summary of the activity of stock options and warrants:

 

   2025-03-15   2024-12-31 
    $    $ 
Balance as at December 31, 2024  6,731,440   6,623,292 
Warrants expired       108,148 
Balance as at March 31, 2025   6,731,440    6,731,440 

 

(a)Nil warrants expired and nil forfeited during the three-month period ended March 31, 2025 (3,041,481 expired in 2024)

 

 

26

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements 

March 31, 2025 and 2024

(Expressed In Canadian dollars)

(Unaudited)

 

13. CONTRIBUTED SURPLUS (CONTINUED)

 

  

Three months ended March 31,

2025

 
       Weighted 
   Number of   average 
   options   exercise price 
         $ 
Opening balance  2,870,000   1.34 
Closing balance, as at March 31, 2025   2,870,000    1.34 
Closing balance of exercisable options, as at March 31, 2025   2,870,000    1.34 

 

  

Twelve months ended December 31,

2024

 
   Number of 
options
   Weighted average
exercise price
 
       $ 
Opening balance
  3,305,000  1.54 
Forfeited during the period   (435,000)   1.82 
Closing balance, as at December 31, 2024   2,870,000    1.34 
Closing balance of exercisable options, as at December 31, 2024   2,870,000    1.34 

 

 

27

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements

March 31, 2025 and 2024 

(Expressed In Canadian dollars) (Unaudited)

 

13. CONTRIBUTED SURPLUS (CONTINUED)

 

The following is a summary of stock options outstanding and exercisable as at March 31, 2025:

 

        Options       Options 
        outstanding       exercisable 
        Weighted       Weighted 
        average       average 
        contractual       contractual 
    Number   life (years)   Number   life (years) 
March 31, 2024                 
Exercise price                 
$0.43    1,250,000    1.01    1,250,000    1.01 
$1,34    250,000    1.83    250,000    1.83 
$1,67    100,000    1.57    100,000    1.57 
$1,70    250,000    1.56    250,000    1.56 
$2,35    1,020,000    0.86    1,020,000    0.86 
      2,870,000         2,870,000      

 

December 31,                 
2024                 
Exercise price                 
$0.43    1,250,000    1.26    1,250,000    1.26 
$1,34    250,000    2.07    250,000    2.07 
$1,67    100,000    1.82    100,000    1.82 
$1,70    250,000    1.80    250,000    1.80 
$2,35    1,020,000    1.11    1,020,000    1.11 
     2,870,000      2,870,000     

 

 

28

NuRAN Wireless Inc.

Notes to Condensed Interim Consolidated Financial

Statements 

March 31, 2025 and 2024

(Expressed In Canadian dollars)

(Unaudited)

 

14. FAIR VALUE OF CONVERSION OPTION

 

   2025-03-31   2024-12-31 
    $    $ 
Balance as at December 31, 2024   41,846    21,990 
Debenture issued (a)       41,846 
Conversion of debentures   (131,749)   (2,000)
Restructuring of the debentures       (19,990)
Balance as at March 31, 2025   (89,903)   41,846 

 

15.LOSS PER SHARE

 

(a)Basic

 

Basic income (loss) per share is calculated by dividing income (loss) by weighted average number of common shares in issue for the year

 

   2025-03-31   2024-12-31 
   $   $ 
Net loss for the period   (1,689,530)   (8,755,860)
Weighted average number of outstanding common shares
   62,933,021    53,832,351 
Loss per share   (0.03)   (0.16)

 

(b)Diluted

 

Diluted income (loss) per common share is equal to the loss per common share for the three-month period ended March 31, 2025 and the year 2024 as all of the shares options and warrants outstanding are anti-dilutive.

 

 

29

 

NuRAN Wireless Inc. 

Notes to Condensed Interim Consolidated Financial

Statements 

March 31, 2025 and 2024 

(Expressed In Canadian dollars)

(Unaudited)

 

16. RELATED PARTY TRANSACTIONS

 

The Company’s related parties include companies under common control as well as key management personnel.

 

Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were given or received.

 

17. SUBSEQUENT EVENTS

 

On May 8, 2025, NuRAN Wireless DRC SA entered into an amendment of its agreement with Orange RDC SA (Orange) signed in February 2021 (the Amendment) in which, amongst things, the parties agreed that the ownership of the NaaS sites and equipment will not be transferred to Orange at the end of the contractual period. The Company is in consultation with its auditors concerning the proper treatment of revenue recognition resulting from the Amendment but expects that it will no longer be governed by IFRS 15. It is expected this will take effect starting the period ending June 30, 2025.