B C D E G H M N P Q R S T U V RETRO PRODUCTIONS LIMITED Statement of Changes in Equity Year Ended December 31, 2021 $ Common Shares Retained Earnings 500,000 $ 100,000 Total Equity 1,239,275 $ 1,739,275 0 3.856.250 3,856,250 600,000 $ -120,000 4,975,525 $ 5,575,525 RETRO P_R_O_D_U_C_TIO Solvency We have experienced significant changes in our solvency compared to the previous year but remain competitive in comparison to our competitors. The results are summarized b 2020 Furniscape Lumia 1.28 36.48 Debt to total assets ratio Times Interest Earned Free Cash Flow 2021 1.98 58.06 $675,781 $688,840 0.35 27.00 $675,781 0.42 44.00 $688,840 Retro Soul V. Vibes 0.23 0.45 28.00 $688,694 Couchella Industry 29.00 $725,411 0.68 34.00 $757,590 0.43 32.40 $566,054 Balance, January 1 Shares issued Net income Dividends declared Balance, December 31 RETRO PRODUCTIONS LIMITED Statement of Financial Position December 31, 2021 Assets Current assets Cash 2020 Change (2021 2020) 2019 Horizontal % Vertical%2021 Vertical%2020 Accounts receivable Inventory Supplies Prepaid rent Total current assets Below are three column charts. One depicting our debt to total assets for 2021, 2020 and in comparison to our competitors and industry. Another depicting our times interest earn Property, plant and equipment (net) competitors and industry. The final chart is depicting free cash flow for 2021, 2020 and in comparison to our competitors and industry. 190,100 $ 7,288,000 2,594,000 Total assets 39,000 14,000 10,125,100 1,145,625 $11,270,725 412,244 $ 4.650.688 1,743,584 37,870 14,000 6,858,386 1,375,746 $8,234,132 180,104 ($222,144) 3,680,050 $2.637.312 %% 5% 57% 65% 56% 1,928,513 28,240 14,000 $850,416 $1,130 $0 49% 23% 21% 0% 0% 0% 0% 5,830,907 $3,266,714 1,954,899 ($230,121) $7,785,806 $3,036,593 48% 90% -17% 37% 17% 100% Liabilities and Shareholders' Equity Current Liabilities RETRO PRODUCTIONS LIMITED Statement of Income Year Ended December 31, Sales 2021 $ Cost of goods sold 22,670,200 $ 12,600,000 15,669,416 Gross profit Operating expenses 10,070,200 2020 Change $7,000,784 7,051,237 $5,548,763 8,618,179 $1,452,021 Horizontal % Vertical % 2021 45% 79% 100.0% Vertical % 2020 100.0% 55.6% 45.0% Shareholders' equity 17% 44.4% Accounts payable Salaries payable Income tax payable Interest payable Deferred revenue Total current liabilities Bank loan payable Total Liabilities Common shares s 4,101,000 s 140,000 112,000 6,200 3,815,678 $ 3,750,083 136,730 125,383 8,200 96,000 4,455,200 1,240,000 5,695,200 109,570 4,195,561 2,249,296 $285,322 127,187 $3,270 132,859 ($13,383) 7,200 ($2,000) 100,305 7% 36% 46% 2% 1% 2% 11% 1% 2% -24% 0% 0% -12% 1% 1% 4,117,634 $259,639 2,478,533 ($1,009,296) 6,596,167 ($749,657) 6% 40% 51% -45% 11% 27% -12% 51% 78% 55.0% Retained earnings Total shareholders' equity 600,000 4,975,525 5,575,525 Total liabilities and shareholders' equity $11,270,725 550,000 1,239,275 1,789,275 $8,234,132 Salaries expense 3,701,000 Freight out 980,000 Advertising expense 437,000 3,915,419 1,063,689 ($83,689) 402.877 $34.123 ($214,419) -5% 16.3% 25.0% 400,000 $50,000 789,639 $3,736,250 1,189,639 $3,786,250 $7,785,806 $3,036,593 9% 5% 301% 44% 15% 212% 49% 22% 37% 100% 100% 100% -8% 4.3% 6.8% 8% 1.9% 2.6% RETRO PRODUCTIONS LIMITED Depreciation expense 168,750 Rent expense 168,000 166,977 $1,773 167,879 1% 0.7% 1.1% $121 0% 0.7% 1.1% Office expense 78,000 81,027 ($3,027) -4% 0.3% 0.5% Utilities expense 67,000 67,771 ($771) -1% 0.3% 0.4% $2,480 6% Travel expense 46.000 43.520 0.2% 0.3% ($263,409) -4% Total operating expenses 5,645,750 5,909,159 24.9% 37.7% Income from operations 4,424,450 2,709,020 $1,715,430 63% 19.5% 17.3% Other expenses Interest expense 76,200 Income before income tax 4,348,250 74,254 2,634,766 Income tax expense Net income 492,000 3,856,250 $1,946 $1,713,484 263,477 $228,523 2,371,289 $1,484,961 3% 0.3% 0.5% 65% 19.2% 16.8% Salaries Payable Income tax payable Interest payable 87% 2.2% 1.7% 63% 17.0% 15.1% Our debt to total asset changes were primarily due to: Our times interest earned changes were primarily due to: Our free cash flow changes were primarily due to: Overall these results delete this define debt to total assets and provide a reasonable explanation of the change delete this define times interest earned and provide a reasonable explanation of the change delete this define free cash flow and provide a reasonable explanation of the change delete this and provide an overall conclusion on the solvency for the period Statement of Cash Flow December 31, Operating Activities Net Income 3,856,250 $ 2,371,289 Changes in Non-Cash working capital accounts Accounts receivable -2,637,312 -970,638 Inventory -850,416 184,929 Supplies -1,130 Accounts payable 285,322 65,595 3,270 9,543 -13,383 -7,476 -2,000 1,000 Deferred revenue -13,570 9,265 Depreciation expense 168,750 166,977 Cash flow used/provided by operating activities 795,781 1,820,854 Investing Activities Purchase/Sale of PP&E 61,371 Cash flow used/provided by investing activities 61,371 -377,463 (377,463) Financing Activities Issuance of Common Shares Dividends paid Payment/Proceeeds of Bank Loan 50,000 -120,000 -1,009,296 150,000 -1,132,014 -229,237 Cash flow used/provided by financing activities (1,079,296) (1,211,251) Net Change in Cash -222,144 232,140 Cash, beginning balance 412,244 180,104 Cash, ending balance $ 190,100 $ 412,244 2021 2020 -9,630