Blue Earth Resources : Interim Financial Statements for the Period Ended May 31, 2022

Interim Financial Statements

For the Period Ended May 31, 2022

TABLE OF CONTENTS

Interim Balance Sheets	1
Interim Statements of Operations	2
Interim Statements of Changes in Stockholders' Equity (Deficit)	3
Interim Statements of Cash Flows	4
Notes to the Interim Financial Statements	5-18

BLUE EARTH RESOURCES, INC.

INTERIM BALANCE SHEETS

		May 31,		February 28,
		2022		2022
		(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	209,842	$	59,513
Restricted cash		400,000		400,000
Accounts receivable		1,737,197		2,004,706
Prepaid expenses and other current assets		54,490		71,030
Total current assets		2,401,529		2,535,249
OTHER ASSETS
Intangibles, net		44,166		68,583
Total assets	$	2,445,695	$	2,603,832
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	2,012,590	$	2,024,945
Payroll related liabilities		48,736		40,975
Accrued expenses, related party		51,847		1,847
Total current and total liabilities		2,113,173		2,067,767
STOCKHOLDERS' EQUITY
Series B Convertible Preferred Stock, 10,000,000 shares
authorized, 1,000 shares outstanding as of May 31, 2022
and February 28, 2022		4		4
Series C Convertible Preferred stock, 17,000,000 shares
authorized, 9,364,150 shares outstanding as of May 31, 2022
and February 28, 2022		37,457		37,457
Series D Convertible Preferred Stock, 17,000,000 shares
authorized, 9,614,150 shares outstanding as of May 31, 2022
and February 28, 2022		38,456		38,456
Common stock, $0.004 par, 200,000,000 shares authorized,
77,000,902 and 76,788,402 shares outstanding as of
May 31, 2022 and February 28, 2022, respectively		308,003		307,153
Additional paid-in capital		12,118,328		12,075,450
Accumulated deficit		(12,169,726)		(11,922,455)
Total stockholders' equity		332,522		536,065
Total liabilities and stockholders' equity	$	2,445,695	$	2,603,832

See accompanying notes to the interim financial statements.

1

BLUE EARTH RESOURCES, INC.

INTERIM STATEMENTS OF OPERATIONS

(Unaudited)

		For the Three Months Ended
		May 31,
		2022		2021
REVENUE
Sales, net	$	21,692,134	$	5,395,011
Direct cost of sales		21,507,615		5,272,700
Gross margin		184,519		122,311
OPERATING EXPENSES:
Selling		163,135		151,910
General and administrative		293,655		117,111
Total operating expenses		456,790		269,021
OPERATING LOSS		(272,271)		(146,710)
OTHER INCOME:
Gain on settlement		25,000		-
Total other income		25,000		-
NET LOSS	$	(247,271)	$	(146,710)
NET LOSS PER COMMON SHARE
Basic and diluted	$	(0.00)	$	(0.00)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic and diluted		76,845,142		47,911,959

See accompanying notes to the interim financial statements.

2

Balances at February 28, 2022

Net loss

Issuance of shares for services Stock-based compensation

Balances at May 31, 2022

BLUE EARTH RESOURCES, INC.

INTERIM STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)

(Unaudited)

Three Months Ended May 31, 2022

Series B Convertible	Series C Convertible	Series D Convertible					Additional		Common				Total
Preferred Stock		Preferred Stock	Preferred Stock	Common Stock		Paid-In		Stock	Accumulated	Stockholders'
Shares	Amount	Shares	Amount	Shares	Amount	Shares		Amount		Capital	Subscribed		Deficit		Equity
1,000	$	4	9,364,150	$	37,457	9,614,150	$	38,456	76,788,402	$	307,153	$	12,075,450	$	-	$	(11,922,455)	$	536,065
																	(247,271)		(247,271)
									212,500		850		9,150						10,000
													33,728						33,728
1,000	$	4	9,364,150	$	37,457	9,614,150	$	38,456	77,000,902	$	308,003	$	12,118,328	$	-	$	(12,169,726)	$	332,522

Balances at February 28, 2021

Net loss

Issuance of shares for cash Issuance of shares for services Common stock subscriptions,

net of receivable Stock-based compensation

Balances at May 31, 2021

Three Months Ended May 31, 2021

Series B Convertible	Series C Convertible	Series D Convertible					Additional	Preferred				Total
Preferred Stock		Preferred Stock	Preferred Stock	Common Stock		Paid-In		Stock	Accumulated	Stockholders'
Shares	Amount	Shares	Amount	Shares	Amount	Shares		Amount		Capital	Subscribed		Deficit		Deficit
1,000	$	4	9,364,150	$	37,457	9,614,150	$	38,456	47,189,252	$	188,756	$	10,143,606	$	-	$	(10,648,463)	$	(240,184)
																	(146,710)		(146,710)
									3,900,000		15,600		194,400						210,000
									550,000		2,200		55,300						57,500
															50,000				50,000
													16,315						16,315
1,000	$	4	9,364,150	$	37,457	9,614,150	$	38,456	51,639,252	$	206,556	$	10,409,621	$	50,000	$	(10,795,173)	$	(53,079)

See accompanying notes to the interim financial statements.

3