Common use of Independent Auditor’s Report Clause in Contracts

Independent Auditor’s Report. To the Directors of Intermeccanica International Inc. We have audited the accompanying financial statements of Intermeccanica International Inc. which comprise the statement of financial position as at March 31, 2017 and 2016, and the statements of comprehensive income (loss), shareholders' equity and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion, the financial statements present fairly, in all material respects, the financial position of Intermeccanica International Inc. as at March 31, 2017 and 2016, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Vancouver, Canada October XX, 2017 Intermeccanica International Inc. Statements of Financial Position (Expressed in Canadian dollars) Cash $ 72,846 $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses and deposits 16,952 16,606 Plant and equipment 6 38,394 51,853 Bank indebtedness 7 $ - $ 159,637 Trade payables and accrued liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes payable 17,251 - Current portion of long-term debt 9 4,153 4,153 Long-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 Retained earnings (deficit) 72,605 (100,319) TOTAL EQUITY 72,705 (100,219) Commitments (Note 10) Subsequent events (Note 16) On behalf of the Board of Directors. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Comprehensive Income (Loss) (Expressed in Canadian dollars) Revenue 11 $ 1,262,657 $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Changes in Equity (Expressed in Canadian dollars) Common shares/U> Preferred shares Earnings Balance at March 31, 2015 13 910 $ 9 9,100 $ 91 $ (45,159) $ (45,059) Comprehensive loss for the year - - - - (55,160) (56,160) Balance at March 31, 2016 13 910 9 9,100 91 (100,319) (100,219) Comprehensive income for the year 172,923 172,923 Balance at March 31, 2017 13 910 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Cash Flows (Expressed in Canadian dollars) Income (loss) for the year $ 172,923 $ (55,160) Adjustments for: Amortization 13,459 10,925 Changes in non-cash working capital items: Receivables (41,630) 16,517 Inventory (66,797) 43,750 Prepaid expenses and deposits (346) 5,459 Trades payable and accrued liabilities (4,138) (64,348) Customer deposits 41,740 63,866 Income taxes payable 17,251 - Net cash flows used in operating activities 132,463 21,009 Expenditures on plant and equipment - (24,280) Net cash flows used in investing activities - (24,280) Payment of bank indebtedness (159,637) (13,963) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) Net cash flows used in financing activities (79,603) (7,237) Increase (decrease) in cash 52,860 (10,508) Cash, beginning 19,986 30,494 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Notes to the Financial Statements (Expressed in Canadian dollars) For the years ended March 31, 2017 and 2016

Independent Auditor’s Report. To the Board of Directors of Intermeccanica International Inc. San Xxxx Clinic We have audited the accompanying financial statements of Intermeccanica International Inc. San Xxxx Clinic (the Clinic), a nonprofit organization, which comprise the statement of financial position as at March of December 31, 2017 and 20162019, and the related statements of comprehensive income (loss)activities and changes in net assets, shareholders' equity functional expenses and cash flows for the years then ended, ended and a summary of significant accounting policies and other explanatory informationthe related notes to the financial statements. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standardsaccounting principles generally accepted in the United States of America; this includes the design, implementation, and for such maintenance of internal control as management determines is necessary relevant to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our auditaudits. We conducted our audit audits in accordance with Canadian auditing standards generally accepted auditing standardsin the United States of America. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entityClinic's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entityClinic's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. In our opinion, the financial statements present fairly, in all material respects, the financial position of Intermeccanica International Inc. as at March 31, 2017 and 2016, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Vancouver, Canada October XX, 2017 Intermeccanica International Inc. Statements of Financial Position (Expressed in Canadian dollars) Cash $ 72,846 $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses and deposits 16,952 16,606 Plant and equipment 6 38,394 51,853 Bank indebtedness 7 $ - $ 159,637 Trade payables and accrued liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes payable 17,251 - Current portion of long-term debt 9 4,153 4,153 Long-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 Retained earnings (deficit) 72,605 (100,319) TOTAL EQUITY 72,705 (100,219) Commitments (Note 10) Subsequent events (Note 16) On behalf of the Board of Directors. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Comprehensive Income (Loss) (Expressed in Canadian dollars) Revenue 11 $ 1,262,657 $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Changes in Equity (Expressed in Canadian dollars) Common shares/U> Preferred shares Earnings Balance at March 31, 2015 13 910 $ 9 9,100 $ 91 $ (45,159) $ (45,059) Comprehensive loss for the year - - - - (55,160) (56,160) Balance at March 31, 2016 13 910 9 9,100 91 (100,319) (100,219) Comprehensive income for the year 172,923 172,923 Balance at March 31, 2017 13 910 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Cash Flows (Expressed in Canadian dollars) Income (loss) for the year $ 172,923 $ (55,160) Adjustments for: Amortization 13,459 10,925 Changes in non-cash working capital items: Receivables (41,630) 16,517 Inventory (66,797) 43,750 Prepaid expenses and deposits (346) 5,459 Trades payable and accrued liabilities (4,138) (64,348) Customer deposits 41,740 63,866 Income taxes payable 17,251 - Net cash flows used in operating activities 132,463 21,009 Expenditures on plant and equipment - (24,280) Net cash flows used in investing activities - (24,280) Payment of bank indebtedness (159,637) (13,963) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) Net cash flows used in financing activities (79,603) (7,237) Increase (decrease) in cash 52,860 (10,508) Cash, beginning 19,986 30,494 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Notes to the Financial Statements (Expressed in Canadian dollars) For the years ended March 31, 2017 and 2016.

Independent Auditor’s Report. To the Board of Directors of Intermeccanica International Inc. Progress Financial Corporation Huntsville, Alabama We have audited the accompanying consolidated financial statements of Intermeccanica International Inc. Progress Financial Corporation and Subsidiary, which comprise the statement consolidated balance sheets as of financial position as at March December 31, 2017 2016 and 20162015, and the related consolidated statements of income, comprehensive income (loss)income, shareholders' equity stockholders’ equity, and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory informationthe related notes to the financial statements. Management's ’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standardsaccounting principles generally accepted in the United States of America; this includes the design, implementation, and for such maintenance of internal control as management determines is necessary relevant to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our auditaudits. We conducted our audit audits in accordance with Canadian auditing standards generally accepted auditing standardsin the United States of America. Those standards require that we comply with ethical requirements and plan and perform the audit audits to obtain reasonable assurance about whether the consolidated financial statements are free from of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's ’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's ’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's ’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Intermeccanica International Inc. Progress Financial Corporation and Subsidiary as at March of December 31, 2017 2016 and 20162015, and its financial performance the results of their operations and its their cash flows for the year years then ended ended, in accordance with International Financial Reporting Standardsaccounting principles generally accepted in the United States of America. VancouverBirmingham, Canada October XXAlabama March 8, 2017 Intermeccanica International Inc. Statements of Financial Position PROGRESS FINANCIAL CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2016 AND 2015 (Expressed Dollars in Canadian dollarsthousands, except per share amounts) Assets Cash and due from banks $ 72,846 20,311 $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses 12,256 Interest-bearing deposits in banks 1,066 2,768 Federal funds sold 49,959 9,371 Cash and deposits 16,952 16,606 Plant cash equivalents 71,336 24,395 Securities available for sale 73,699 81,307 Restricted equity securities 1,422 1,585 Loans held for sale 6,002 7,692 Loans 543,958 490,052 Less allowance for loan losses 4,432 4,535 Loans, net 539,526 485,517 Premises and equipment 6 38,394 51,853 5,337 5,687 Bank indebtedness 7 owned life insurance 16,554 15,623 Foreclosed assets 9 4,449 Other assets 15,569 9,002 Total assets $ - 729,454 $ 159,637 Trade payables 635,257 Liabilities and accrued Stockholders' Equity Liabilities: Deposits Noninterest-bearing $ 82,849 $ 76,533 Interest-bearing 540,369 463,591 Total deposits 623,218 540,124 Repurchase agreements 5,047 5,432 Other borrowings 20,000 25,000 Other liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes payable 17,251 - Current portion of long-term debt 9 4,153 4,153 Long-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 1,499 1,601 Total liabilities 649,764 572,157 Commitments and contingencies Stockholders' equity: Common stock, $1 par value, 10,000,000 shares authorized; 7,696,969 and 6,666,305 shares issued; 7,567,319 and 7,697 6,666 6,532,055 shares outstanding, respectively Capital surplus 58,044 46,797 Retained earnings 16,684 11,172 Accumulated other comprehensive income (deficitloss) 72,605 (100,3191,114) TOTAL 143 Treasury stock, at cost (1,621) (1,678) Total stockholders' equity 79,690 63,100 Total liabilities and stockholders' equity $ 729,454 $ 635,257 See Notes to Consolidated Financial Statements. PROGRESS FINANCIAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME YEARS ENDED DECEMBER 31, 2016 AND 2015 (Dollars in thousands, except per share amounts) Interest income: Loans, including fees $ 22,334 $ 19,575 Taxable securities 734 789 Nontaxable securities 914 884 Other interest income 231 124 Total interest income 24,213 21,372 Interest expense: Deposits 3,357 3,148 Other borrowings and repurchase agreements 208 164 Total interest expense 3,565 3,312 Net interest income 20,648 18,060 Provision for loan losses 100 255 Net interest income after provision for loan losses 20,548 17,805 Other income: Service charges on deposit accounts 297 386 Mortgage division income 2,396 2,175 Investment and insurance services 3,113 3,212 Bank owned life insurance 431 428 Net gain on sale of securities available for sale 226 129 Other operating income 377 353 Total other income 6,840 6,683 Other expenses: Salaries and employee benefits 12,850 12,129 Equipment and occupancy expenses 2,100 2,045 Foreclosed asset losses and expenses 516 350 Other operating expenses 3,743 3,432 Total other expenses 19,209 17,956 Income before income tax expense 8,179 6,532 Income tax expense 2,667 2,055 Net income $ 5,512 $ 4,477 Basic earnings per share $ 0.83 $ 0.69 Diluted earnings per share $ 0.77 $ 0.65 See Notes to Consolidated Financial Statements. 2016 2015 PROGRESS FINANCIAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2016 AND 2015 (Dollars in thousands, except per share amounts) Net income $ 5,512 $ 4,477 Other comprehensive income (loss): Unrealized holding gains (losses) on securities available for sale arising during the period, net of tax (benefit) of ($685) and $244, respectively (1,117) 366 Reclassification adjustment for gains realized in net income, net of tax of $86 and $65, respectively (140) (63) Other comprehensive income (loss) (1,257) 303 Comprehensive income $ 4,255 $ 4,780 See Notes to Consolidated Financial Statements. PROGRESS FINANCIAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 72,705 YEARS ENDED DECEMBER 31, 2016 AND 2015 (100,219Dollars in thousands, except per share amounts) Commitments Shares Par Value Shares Cost Balance, December 31, 2014 6,656,455 $ 6,657 $ 46,412 $ 6,695 $ (Note 10160) Subsequent events 122,890 $ (Note 161,536) On behalf $ 58,068 Net income - - - 4,477 - - - 4,477 Exercise of the Board stock options 9,850 9 87 - - - - 96 Stock-based compensation - - 298 - - - - 298 Purchase of Directorstreasury stock - - - - - 11,360 (142) (142) Other comprehensive income - - - - 303 - - 303 Balance, December 31, 2015 6,666,305 6,666 46,797 11,172 143 134,250 (1,678) 63,100 Net income - - - 5,512 - - - 5,512 Exercise of stock options and warrants 412,835 413 2,358 - - - - 2,771 Issuance of common stock 617,829 618 8,619 9,237 Stock-based compensation - - 258 - - - - 258 Sale of treasury stock - - 12 - - (4,600) 57 69 Other comprehensive loss - - - - (1,257) - - (1,257) Balance, December 31, 2016 7,696,969 $ 7,697 $ 58,044 $ 16,684 $ (1,114) 129,650 $ (1,621) $ 79,690 See Notes to Consolidated Financial Statements. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Common Stock Retained Earnings Other Comprehensive Income (Loss) (Expressed in Canadian dollars) Revenue 11 $ 1,262,657 $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Changes in Total Stockholders' Accumulated Equity (Expressed in Canadian dollars) Common shares/U> Preferred shares Earnings Balance at March 31, 2015 13 910 $ 9 9,100 $ 91 $ (45,159) $ (45,059) Comprehensive loss for the year - - - - (55,160) (56,160) Balance at March Capital Surplus PROGRESS FINANCIAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2016 13 910 9 9,100 91 AND 2015 (100,319Dollars in thousands, except per share amounts) OPERATING ACTIVITIES Net income $ 5,512 $ 4,477 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and software amortization 531 536 Accretion and amortization on securities 903 842 Provision for loan losses 100 255 Amortization of tax credit investments 66 - Deferred income taxes 559 (31) Gain on sale of securities available for sale, net (226) (100,219) Comprehensive income for the year 172,923 172,923 Balance at March 31, 2017 13 910 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Cash Flows (Expressed in Canadian dollars) Income (loss) for the year $ 172,923 $ (55,160) Adjustments for: Amortization 13,459 10,925 Changes in non-cash working capital items: Receivables (41,630) 16,517 Inventory (66,797) 43,750 Prepaid expenses and deposits (346) 5,459 Trades payable and accrued liabilities (4,138129) (64,348Gain) Customer deposits 41,740 63,866 Income taxes payable 17,251 - loss on sale of foreclosed assets 52 (14) Write-down of foreclosed assets 417 298 Stock-based compensation 258 298 Net cash flows used decrease in operating activities 132,463 21,009 Expenditures on plant and equipment - loans held for sale 1,690 1,856 Increase in interest receivable (24,280) Net cash flows used in investing activities - (24,280) Payment of bank indebtedness (159,63763) (13,963) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) Net cash flows used in financing activities (79,603) (7,237141) Increase (decrease) in interest payable 30 (42) Income from bank owned life insurance (431) (428) Decrease in advance compensation agreements 319 313 Net other operating activities (22) 171 Net cash 52,860 provided by operating activities 9,695 8,261 INVESTING ACTIVITIES Purchase of securities available for sale (10,50888,138) Cash(116,487) Proceeds from sales of securities available for sale 37,555 38,247 Proceeds from maturities and calls of securities available for sale 55,486 91,120 Purchase of bank owned life insurance (500) - Net redemptions (purchases) of restricted equity securities 163 (433) Net increase in loans (54,525) (65,514) Proceeds from sale of foreclosed assets 3,029 453 Purchase of tax credit investments (5,437) (1,521) Purchase of premises, equipment and software (173) (393) Net cash used in investing activities (52,540) (54,528) FINANCING ACTIVITIES Net increase in deposits 83,094 41,820 Decrease in repurchase agreements (385) (1,553) Advances from other borrowings 10,000 25,000 Repayment of other borrowings (15,000) (15,000) Proceeds from the exercise of stock options and warrants 2,771 96 Proceeds from common stock offering 9,237 - Sale (purchase) of treasury stock 69 (142) Net cash provided by financing activities 89,786 50,221 Net increase in cash and cash equivalents 46,941 3,954 Cash and cash equivalents at beginning 19,986 30,494 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. year 24,395 20,441 Cash and cash equivalents at end of year $ 71,336 $ 24,395 SUPPLEMENTAL DISCLOSURE Cash paid during the year for: Interest $ 3,535 $ 3,354 Income taxes $ 1,939 $ 1,992 NONCASH TRANSACTIONS Transfer of loans into foreclosed assets $ 416 $ 71 Receivable from sale of foreclosed assets $ 1,358 $ - See Notes to the Consolidated Financial Statements (Expressed in Canadian dollars) For the years ended March 31, 2017 and 2016Statements.

Independent Auditor’s Report. To the Board of Directors of Intermeccanica International First State Bancorp, Inc. and Subsidiary: We have audited the accompanying consolidated financial statements of Intermeccanica International First State Bancorp, Inc. and Subsidiary which comprise the statement consolidated balance sheets as of financial position as at March December 31, 2017 2015 and 20162014, and the related consolidated statements of comprehensive income (loss)income, shareholders' equity ’ equity, and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standardsaccounting principles generally accepted in the United States of America; this includes the design, implementation, and for such maintenance of internal control as management determines is necessary relevant to enable the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these consolidated financial statements based on our auditaudits. We conducted our audit audits in accordance with Canadian auditing standards generally accepted auditing standardsin the United States of America. Those standards require that we comply with ethical requirements and plan and perform the audit audits to obtain reasonable assurance about whether the financial statements are free from of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's ’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's ’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose purposes of expressing an opinion on the effectiveness of the entity's ’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Intermeccanica International First State Bancorp, Inc. and Subsidiary as at March of December 31, 2017 2015 and 20162014, and the results of its financial performance operations and its cash flows for the year years then ended in accordance with International Financial Reporting Standardsaccounting principles generally accepted in the United States of America. VancouverCincinnati, Canada October XXOhio February 11, 2017 Intermeccanica International Inc. Statements 0000 xxx.xxxxx.xxx p. 513.241.3111 f. 513.241.1212 cincinnati | cleveland | columbus | miami valley | northern kentucky | springfield | toledo 2015 2014 Assets Cash and due from banks: Cash and cash items $ 1,702,352 2,194,070 Due from banks 17,226,295 4,981,968 Federal funds sold 604,000 81,790 19,532,647 7,257,828 Securities available for sale 113,806,454 98,183,532 Federal Home Loan Bank of Financial Position (Expressed in Canadian dollars) Cash Cincinnati stock, at cost 556,900 556,900 Loans, net 220,450,942 205,838,655 Loans held for sale 112,000 478,000 Accrued interest receivable 1,482,049 1,428,118 Premises and equipment, net 6,945,328 5,603,141 Other real estate owned 389,025 108,900 Bank owned life insurance 3,194,458 3,121,097 Intangible assets, net 1,019,742 1,519,624 Xxxxxxxx, net 439,619 492,907 Other assets 1,893,342 1,935,142 Total assets $ 72,846 369,822,506 326,523,844 Liabilities and Shareholders' Equity Deposits: Demand $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses 42,793,849 36,137,181 Savings and interest checking 168,131,335 139,887,165 Time deposits 16,952 16,606 Plant and equipment 6 38,394 51,853 117,345,101 112,358,756 Total 328,270,285 288,383,102 Repurchase agreements 1,054,708 560,621 Federal Home Loan Bank indebtedness 7 $ - $ 159,637 Trade payables and accrued liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes advances 12,341 30,060 Accrued interest payable 17,251 - Current portion of long-term debt 9 4,153 4,153 Long-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 Retained earnings (deficit) 72,605 (100,319) TOTAL EQUITY 72,705 (100,219) Commitments (Note 10) Subsequent events (Note 16) On behalf of the Board of Directors. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Comprehensive Income (Loss) (Expressed in Canadian dollars) Revenue 11 $ 1,262,657 $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property 144,394 124,627 Accrued taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Changes in Equity (Expressed in Canadian dollars) Common shares/U> Preferred other liabilities 1,509,175 1,413,287 Total liabilities 330,990,903 290,511,697 Shareholders' equity: Capital stock, no par value, 2,000,000 shares Earnings Balance authorized at March December 31, 2015 13 910 and 2014, respectively, 792,000 issued and outstanding at December 31, 2015 and 2014, respectively 5,178,533 5,178,533 Additional paid in capital 1,800,000 1,800,000 Retained earnings 31,206,989 28,134,762 Accumulated other comprehensive income 646,081 898,852 Total shareholders' equity 38,831,603 36,012,147 Total liabilities and shareholders' equity $ 9 9,100 369,822,506 326,523,844 2015 2014 Interest income: Interest and fees on loans $ 91 10,645,621 9,899,257 Interest on investment securities: Taxable 813,009 978,702 Exempt from income taxes 1,638,322 1,425,255 Interest on federal funds sold and deposits in banks 36,927 27,910 13,133,879 12,331,124 Interest expense: Savings and interest checking 247,280 192,619 Other time deposits 1,340,699 1,350,106 Federal funds purchased and FHLB advances 3,586 4,182 1,591,565 1,546,907 Net interest income 11,542,314 10,784,217 Provision for loan losses 338,005 812,064 Net interest income after provision for loan losses 11,204,309 9,972,153 Other income: Net gain on sale of investments 713,874 1,109,891 Net gain on sale of loans and other assets 155,194 79,527 Service charges on deposit accounts 1,023,801 1,066,917 Other service charges and fees 1,139,628 1,037,989 3,032,497 3,294,324 Other expenses: Salaries, directors' fees and employee benefits 4,865,050 4,433,713 Equipment expenses 736,128 763,555 Supplies and postage expenses 210,098 230,186 Taxes other than federal income taxes 299,921 292,205 Occupancy expenses 483,889 472,800 FDIC insurance premiums and assessments 177,000 158,900 Professional fees 236,427 243,324 Telephone and data expenses 156,257 139,635 Marketing expenses 243,591 265,806 ATM expenses 372,219 308,640 Amortization of intangibles 528,726 432,665 Other operating expenses 859,310 817,826 9,168,616 8,559,255 Income before federal income taxes 5,068,190 4,707,222 Federal income taxes 1,140,603 1,095,004 Net income 3,927,587 3,612,218 Net income per share of common stock $ 4.96 4.93 2015 2014 Net income $ 3,927,587 3,612,218 Other comprehensive income (45,159loss): Unrealized holding gains (losses) during the period on securities available for sale, net of deferred taxes of $246,135 and $106,057 (723,928) 311,931 Reclassification adjustment for gains included in net income on securities available for sale, net of deferred taxes of $242,717 and $377,363 471,157 732,528 Comprehensive income $ 3,674,816 4,656,677 Balance, December 31, 2013 Net income Issuance of common stock Unrealized holding gains during the period on securities available for sale, net of deferred taxes of $106,057 Reclassification adjustment for gains included in net income on securities available for sale, net of tax expense of $377,363 Purchased 2,312 shares of treasury stock Proceeds from sale of 2,312 shares of treasury stock Cash dividends declared (45,059$1.00 per share) Balance, December 31, 2014 Net income Issuance of common stock Unrealized holding gains during the period on securities available for sale, net of deferred taxes of $246,135 Reclassification adjustment for gains included in net income on securities available for sale, net of tax expense of $242,717 Purchased 1,302 shares of treasury stock Proceeds from sale of 1,302 shares of treasury stock Cash dividends declared ($1.08 per share) Balance, December 31, 2015 First State Bancorp, Inc. and Subsidiary Consolidated Statements of Shareholders' Equity Years Ended December 31, 2015 and 2014 Capital Stock Additional Paid In Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive loss for the year Income Total $ 1,800,000 1,800,000 - 25,260,544 (145,607) 28,714,937 - - - 3,612,218 - 3,612,218 3,378,533 - - - - (55,160) (56,160) Balance at March 31, 2016 13 910 9 9,100 91 (100,319) (100,219) Comprehensive income for the year 172,923 172,923 Balance at March 31, 2017 13 910 3,378,533 - - - - 311,931 311,931 - - - - 732,528 732,528 - - 208,080 - - 208,080 5,178,533 1,800,000 - 28,134,762 898,852 36,012,147 - - - 3,927,587 - 3,927,587 - - 65,300 - - 65,300 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. 5,178,533 1,800,000 - 31,206,989 646,081 38,831,603 Consolidated Statements of Cash Flows Years Ended December 31, 2015 and 2014 2015 2014 Operating activities: Net income $ 3,927,587 3,612,218 Adjustments to reconcile net income to net cash provided by operating activities: Net amortization of premiums and discounts on securities 1,579,341 1,273,795 Gain on sale of investments and other assets (Expressed 714,301) (1,059,837) Change in Canadian dollarsloans held for sale 366,000 (236,800) Income Gain on sale of mortgage loans (loss154,767) (129,581) Proceeds from sale of mortgage loans 9,319,172 4,108,331 Loans disbursed for sale in the year $ 172,923 $ secondary market (55,1609,473,939) Adjustments for: (4,237,912) Provision for loan losses 338,005 812,064 Depreciation expense 500,597 426,992 Earnings on bank owned life insurance (73,361) (76,691) Amortization 13,459 10,925 of intangible assets, goodwill and other assets 624,733 620,983 Deferred federal income tax provision (benefit) 150,200 (94,100) Changes in non-cash working capital itemsassets and liabilities: Receivables Accrued interest receivable (41,630) 16,517 Inventory (66,797) 43,750 Prepaid expenses and deposits (346) 5,459 Trades payable and accrued liabilities (4,13853,931) (64,348226,708) Customer deposits 41,740 63,866 Income Other assets (179,963) 34,670 Accrued interest payable 19,767 34,278 Accrued taxes payable 17,251 - and other liabilities 227,208 549,879 Net cash flows used in provided by operating activities 132,463 21,009 Expenditures on plant 6,402,348 5,411,581 Investing activities: Repayment of mortgage-backed securities 13,150,235 6,434,075 Proceeds from sale, call and equipment maturities of securities available for sale 29,080,155 31,515,569 Purchases of securities available for sale (59,102,870) (60,728,672) Purchase of FHLB stock - (24,28024,500) Net increase in loans (15,054,983) (35,638,379) Proceeds from sale of other real estate owned 134,775 210,030 Capital expenditures (1,843,032) (845,690) Intangible assets obtained in branch acquisition - (1,109,795) Net cash flows used in by investing activities - (24,280) Payment of bank indebtedness (159,63733,635,720) (13,96360,187,362) Financing activities: Net increase in deposits 39,887,183 52,335,662 Net change in repurchase agreements 494,087 (320,956) Net repayments of FHLB advances (17,719) (18,703) Dividends paid (855,360) (738,000) Net proceeds from issuance of capital stock - 3,378,533 Purchase of treasury stock (65,300) (208,080) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) sale of treasury stock 65,300 208,080 Net cash flows used in provided by financing activities (79,603) (7,237) Increase (decrease) 39,508,191 54,636,536 Decrease in cash 52,860 and due from banks 12,274,819 (10,508139,245) CashCash and due from banks, beginning 19,986 30,494 The of year 7,257,828 7,397,073 Cash and due from banks, end of year $ 19,532,647 7,257,828 Supplemental disclosures of cash flow information: Non-cash change in unrealized (gain) loss on securities $ (384,091) 1,583,476 Real estate owned acquired through foreclosure $ 414,225 295,645 Xxxx paid during the year for: Federal income taxes $ 931,033 860,041 Interest $ 1,571,798 1,512,629 See accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Notes to the Financial Statements (Expressed in Canadian dollars) For the years ended March 31, 2017 and 2016consolidated financial statements

Independent Auditor’s Report. To the Directors Members of Intermeccanica International Inc. Spark The Energy Credit Union Limited We have audited the accompanying financial statements of Intermeccanica International Inc. Spark The Energy Credit Union Limited, (the "Credit Union"), which comprise the statement of financial position as at March October 31, 2017 and 2016, 2020 and the statements of loss and comprehensive income (loss), shareholderschanges in members' equity and cash flows for the years year then ended, and notes to the financial statements, including a summary of significant accounting policies policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Credit Union as at October 31, 2020, and other explanatory information. Management's Responsibility its financial performance and its cash flows for the Consolidated year then ended in accordance with International Financial Reporting Standards. We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Credit Union in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the preparation and fair presentation of these the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Credit Union's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Credit Union or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Credit Union's financial reporting process. Our responsibility objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to express an opinion influence the economic decisions of users taken on the basis of these financial statements based on our auditstatements. We conducted our As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. Those standards require that we comply with ethical requirements We also: • Identify and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. In making those The risk assessmentsof not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the auditor considers override of internal control. • Obtain an understanding of internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entityCredit Union's internal control. An audit also includes evaluating • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Credit Union's ability to continue as well a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Credit Union to cease to continue as evaluating a going concern. • Evaluate the overall presentation presentation, structure and content of the financial statements. We believe that , including the audit evidence we have obtained is sufficient disclosures, and appropriate to provide a basis for our audit opinion. In our opinion, whether the financial statements present fairlyrepresent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, in all material respectsamong other matters, the financial position planned scope and timing of Intermeccanica International Inc. as at March 31the audit and significant audit findings, 2017 and 2016including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants January 28, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Vancouver2021 Edmonton, Canada October XX, 2017 Intermeccanica International Inc. Statements Alberta Statement of Financial Position October 31, 2020 October 31, 2020 October 31, 2019 Assets Income taxes receivable 91,058 169,280 Investments (Expressed in Canadian dollarsNote 6) Cash $ 72,846 $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses and deposits 16,952 16,606 Plant 48,953,294 43,119,156 Other assets (Note 9) 238,829 199,734 Loans to members (Note 8) 181,407,470 201,401,511 Derivative financial assets (Note 7) 33,566 --- Deferred income taxes (Note 14) 475,308 237,654 Property and equipment 6 38,394 51,853 Bank indebtedness 7 (Note 10) 297,753 387,323 Intangible assets (Note 11) 184,330 73,327 Member deposits (Note 13) $ - 224,985,466 $ 159,637 Trade payables 230,957,741 Accounts payable and accrued liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes payable 17,251 - Current portion of long181,022 371,172 Right-term debt 9 4,153 4,153 Longof-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 use lease liabilities (Note 22) 399,590 --- Derivative financial liabilities (Note 7) 33,566 --- 225,599,644 231,328,913 Dividends distributable (Note 15) --- 166,203 Common shares (Note 15) 5,445,673 5,554,401 Retained earnings (deficit) 72,605 (100,319) TOTAL EQUITY 72,705 (100,219) Commitments 8,242,109 8,854,191 13,687,782 14,574,795 $ 239,287,426 $ 245,903,708 Contingent liabilities and commitments (Note 1018) Subsequent events (Note 1624) On Approved on behalf of the Board Xxx Xxxx, Board Chair Xxxxxxx Xxxxxx, Director Statement of Directors. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Loss and Comprehensive Loss For the Year Ended October 31, 2020 2020 2019 Financial income Interest on member loans $ 6,253,284 $ 7,003,972 Investment (Note 20) 778,043 846,258 7,031,327 7,850,230 Interest on member deposits 4,145,127 4,315,615 Interest on lease liability 16,125 --- Interest on borrowings 243 1,693 4,161,495 4,317,308 Financial margin 2,869,832 3,532,922 Provisions for credit impairment (Note 6 and Note 8) 125,804 1,051,149 Net interest income after provision for credit impairment 2,744,028 2,481,773 Service charges, commissions and other 560,356 657,735 Income before operating expenses 3,304,384 3,139,508 Operating expenses (LossSchedule 1) 4,154,121 4,693,156 Loss before income taxes (849,737) (Expressed in Canadian dollars1,553,648) Revenue 11 Income tax recovery Current income taxes recovery --- (111,342) Deferred income taxes recovery (237,655) (244,075) (237,655) (355,417) Net loss and comprehensive loss $ 1,262,657 (612,082) $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss1,198,231) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements Statement of Changes in Members’ Equity (Expressed in Canadian dollars) Common shares/U> Preferred shares Earnings Balance at March For the Year Ended October 31, 2015 13 910 2020 Dividends Common Retained Total Distributable Shares Earnings Equity As at November 1, 2018 $ 174,448 $ 5,856,407 $ 10,400,458 $ 16,431,313 Adjustment for initial application of IFRS 9 9,100 $ 91 $ --- --- (45,159226,148) $ (45,059226,148) Comprehensive Restated balance at November 1, 2018 174,448 5,856,407 10,174,310 16,205,165 Net loss for the year - - - - --- --- (55,1601,198,231) (56,1601,198,231) Balance Share capital issued and redeemed for cash, net --- (476,454) --- (476,454) Shares issued to settle allocation distributable (174,448) 174,448 --- --- Dividends declared, net of tax recovery of $44,315 (Note 15) 166,203 --- (121,888) 44,315 As at March October 31, 2016 13 910 9 9,100 91 (100,319) (100,219) Comprehensive income 2019 $ 166,203 $ 5,554,401 $ 8,854,191 $ 14,574,795 As at November 1, 2019 $ 166,203 $ 5,554,401 $ 8,854,191 $ 14,574,795 Net loss for the year 172,923 172,923 Balance at March 31--- --- (612,082) (612,082) Share capital issued and redeemed for cash, 2017 13 910 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements net --- (274,931) --- (274,931) Shares issued to settle allocation distributable (166,203) 166,203 --- --- Statement of Cash Flows For the Year Ended October 31, 2020 2020 2019 Cash flows (Expressed in Canadian dollarsused in) Income (loss) for the year $ 172,923 from operating activities: Net loss $ (55,160612,082) $ (1,198,231) Adjustments for: Net interest income (2,869,832) (3,532,922) Provisions for credit impairment 125,804 1,051,149 Provisions for deferred income taxes recovery (237,655) (244,075) Interest paid for leased liabilities (Note 22) (16,125) --- Depreciation of property and equipment (Note 10) 131,555 123,963 Amortization 13,459 10,925 of intangible assets (Note 11) 55,440 43,561 (3,422,895) (3,756,555) Changes in non-cash working capital items: Receivables other assets (41,63039,095) 16,517 Inventory (66,79777,655) 43,750 Prepaid expenses and deposits (346) 5,459 Trades Changes in accounts payable and accrued liabilities (4,138190,150) 11,481 Changes in income taxes receivable 78,221 5,130 (151,024) (64,34861,044) Customer Changes in member activities (net): Changes in member loans 19,994,041 14,259,922 Changes in member deposits 41,740 63,866 Income taxes payable 17,251 - Net cash (5,972,275) (6,317,910) 14,021,766 7,942,012 Cash flows used in operating activities 132,463 21,009 Expenditures related to interest: Interest received 7,031,327 7,896,957 Interest paid (4,145,370) (4,198,683) 2,885,957 3,698,274 13,333,804 7,822,687 Issuance of common shares 24,275 31,938 Redemption of common shares (299,206) (508,392) Tax recovery on plant investment share dividends --- 44,315 (274,931) (432,139) Purchase of investments (9,336,160) (9,431,742) Proceeds on redemption of investments 3,381,750 1,313,977 Additions to intangible assets (Note 11) (166,443) (43,625) Additions to property and equipment - (24,280Note 10) (41,984) (73,900) (6,162,837) (8,235,290) Net cash flows used in investing activities - (24,280) Payment of bank indebtedness (159,637) (13,963) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) Net cash flows used in financing activities (79,603) (7,237) Increase (decrease) increase in cash 52,860 and cash equivalents 6,896,036 (10,508844,742) CashCash and cash equivalents, beginning 19,986 30,494 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Notes to the Financial Statements (Expressed in Canadian dollars) For the years ended March 31year 315,723 1,160,465 Cash and cash equivalents, 2017 and 2016end of year $ 7,211,759 $ 315,723

Independent Auditor’s Report. To the Directors Board of Intermeccanica International Inc. Trustees Palomar Community College District San Marcos, California We have audited the accompanying financial statements of Intermeccanica International Inc. which comprise the statement business-type activities and the aggregate remaining fund information of financial position Palomar Community College District (the District) as at March 31of and for the year ended June 30, 2017 and 2016, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the Table of comprehensive income (loss), shareholders' equity and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory informationContents. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standardsaccounting principles generally accepted in the United States of America; this includes the design, implementation, and for such maintenance of internal control as management determines is necessary relevant to enable the preparation and fair presentation of financial statements that are free from material misstatementmisstatements, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian auditing standards generally accepted auditing standardsin the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the 2015-2016 Contracted District Audit Manual, issued by the California Community Colleges Chancellor's Office. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entityDistrict's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entityDistrict's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion, the financial statements present fairly, in all material respects, the financial position of Intermeccanica International Inc. as at March 31, 2017 and 2016, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Vancouver, Canada October XX, 2017 Intermeccanica International Inc. Statements of Financial Position (Expressed in Canadian dollars) Cash $ 72,846 $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses and deposits 16,952 16,606 Plant and equipment 6 38,394 51,853 Bank indebtedness 7 $ - $ 159,637 Trade payables and accrued liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes payable 17,251 - Current portion of long-term debt 9 4,153 4,153 Long-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 Retained earnings (deficit) 72,605 (100,319) TOTAL EQUITY 72,705 (100,219) Commitments (Note 10) Subsequent events (Note 16) On behalf of the Board of Directors. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Comprehensive Income (Loss) (Expressed in Canadian dollars) Revenue 11 $ 1,262,657 $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Changes in Equity (Expressed in Canadian dollars) Common shares/U> Preferred shares Earnings Balance at March 31, 2015 13 910 $ 9 9,100 $ 91 $ (45,159) $ (45,059) Comprehensive loss for the year - - - - (55,160) (56,160) Balance at March 31, 2016 13 910 9 9,100 91 (100,319) (100,219) Comprehensive income for the year 172,923 172,923 Balance at March 31, 2017 13 910 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Cash Flows (Expressed in Canadian dollars) Income (loss) for the year $ 172,923 $ (55,160) Adjustments for: Amortization 13,459 10,925 Changes in non-cash working capital items: Receivables (41,630) 16,517 Inventory (66,797) 43,750 Prepaid expenses and deposits (346) 5,459 Trades payable and accrued liabilities (4,138) (64,348) Customer deposits 41,740 63,866 Income taxes payable 17,251 - Net cash flows used in operating activities 132,463 21,009 Expenditures on plant and equipment - (24,280) Net cash flows used in investing activities - (24,280) Payment of bank indebtedness (159,637) (13,963) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) Net cash flows used in financing activities (79,603) (7,237) Increase (decrease) in cash 52,860 (10,508) Cash, beginning 19,986 30,494 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Notes to the Financial Statements (Expressed in Canadian dollars) For the years ended March 31, 2017 and 2016.

Independent Auditor’s Report. To the Directors To: Ministry of Intermeccanica International Inc. Education and Community Development - Republic of Suriname Executing Agency Second Basic Education Improvement Program We have audited the accompanying financial statements of Intermeccanica International Inc. statements, which comprise the statement Statement of financial position as at March 31Cash Flows, 2017 and 2016, and the statements Statement of comprehensive income (loss), shareholders' equity and cash flows for the years then endedCumulative Investments, and a summary of significant accounting policies and other explanatory information. Management's Responsibility information for the Consolidated Financial Statements Management Second Basic Education Improvement Program, executed by the Ministry of Education and Community Development (Executing Agency), and financed with funds from the Inter-American Development Bank (IDB) Loan Agreement No. 2742/OC-SU as at and for the year then ended December 31, 2013. The Project management of the Second Basic Education Improvement Program is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting StandardsCash Basis Accounting and specific requirements of the IDB, and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these the accompanying financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standardsInternational Standards on Auditing, and specific requirements of the IDB. Those standards require that we comply with ethical requirements requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's ’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's agency’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's agency’s internal control. An audit also includes evaluating assessing the appropriateness of accounting policies used and the reasonableness of accounting significant estimates made by Project management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. As described in Note 2, the Statement of Cash Flows and the Statement of Cumulative Investments were prepared in accordance with Cash Basis Accounting. Cash Basis Accounting recognizes transactions and acts only when cash (and/or cash equivalent) is received or disbursed by the Program, and not when they give rise to accrue or originate rights or obligations although there was no cash movement. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Intermeccanica International Inc. cash flows and cumulative investments Second Basic Education Improvement Program as at March 31, 2017 and 2016, and its financial performance and its cash flows for the year then ended December 31, 2013, in accordance with International Financial Reporting Standards. Vancouver, Canada October XX, 2017 Intermeccanica International Inc. Statements the basis of Financial Position (Expressed accounting described in Canadian dollars) Cash $ 72,846 $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses the paragraph above and deposits 16,952 16,606 Plant and equipment 6 38,394 51,853 Bank indebtedness 7 $ - $ 159,637 Trade payables and accrued liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes payable 17,251 - Current portion of long-term debt 9 4,153 4,153 Long-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 Retained earnings (deficit) 72,605 (100,319) TOTAL EQUITY 72,705 (100,219) Commitments (the accounting policies described in Note 10) Subsequent events (Note 16) On behalf of the Board of Directors. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Comprehensive Income (Loss) (Expressed in Canadian dollars) Revenue 11 $ 1,262,657 $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Changes in Equity (Expressed in Canadian dollars) Common shares/U> Preferred shares Earnings Balance at March 31, 2015 13 910 $ 9 9,100 $ 91 $ (45,159) $ (45,059) Comprehensive loss for the year - - - - (55,160) (56,160) Balance at March 31, 2016 13 910 9 9,100 91 (100,319) (100,219) Comprehensive income for the year 172,923 172,923 Balance at March 31, 2017 13 910 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Cash Flows (Expressed in Canadian dollars) Income (loss) for the year $ 172,923 $ (55,160) Adjustments for: Amortization 13,459 10,925 Changes in non-cash working capital items: Receivables (41,630) 16,517 Inventory (66,797) 43,750 Prepaid expenses and deposits (346) 5,459 Trades payable and accrued liabilities (4,138) (64,348) Customer deposits 41,740 63,866 Income taxes payable 17,251 - Net cash flows used in operating activities 132,463 21,009 Expenditures on plant and equipment - (24,280) Net cash flows used in investing activities - (24,280) Payment of bank indebtedness (159,637) (13,963) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) Net cash flows used in financing activities (79,603) (7,237) Increase (decrease) in cash 52,860 (10,508) Cash, beginning 19,986 30,494 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Notes to the Financial Statements (Expressed in Canadian dollars) For the years ended March 31, 2017 and 20162.

Independent Auditor’s Report. To the Directors Board of Intermeccanica International Inc. Trustees Palomar Community College District San Marcos, California We have audited the accompanying financial statements of Intermeccanica International Inc. which comprise the statement business-type activities and the aggregate remaining fund information of financial position Palomar Community College District (the District) as at March 31of and for the year ended June 30, 2017 and 20162015, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the Table of comprehensive income (loss), shareholders' equity and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory informationContents. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standardsaccounting principles generally accepted in the United States of America; this includes the design, implementation, and for such maintenance of internal control as management determines is necessary relevant to enable the preparation and fair presentation of financial statements that are free from material misstatementmisstatements, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian auditing standards generally accepted auditing standardsin the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entityDistrict's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entityDistrict's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion, the financial statements present fairly, in all material respects, the financial position of Intermeccanica International Inc. as at March 31, 2017 and 2016, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Vancouver, Canada October XX, 2017 Intermeccanica International Inc. Statements of Financial Position (Expressed in Canadian dollars) Cash $ 72,846 $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses and deposits 16,952 16,606 Plant and equipment 6 38,394 51,853 Bank indebtedness 7 $ - $ 159,637 Trade payables and accrued liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes payable 17,251 - Current portion of long-term debt 9 4,153 4,153 Long-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 Retained earnings (deficit) 72,605 (100,319) TOTAL EQUITY 72,705 (100,219) Commitments (Note 10) Subsequent events (Note 16) On behalf of the Board of Directors. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Comprehensive Income (Loss) (Expressed in Canadian dollars) Revenue 11 $ 1,262,657 $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Changes in Equity (Expressed in Canadian dollars) Common shares/U> Preferred shares Earnings Balance at March 31, 2015 13 910 $ 9 9,100 $ 91 $ (45,159) $ (45,059) Comprehensive loss for the year - - - - (55,160) (56,160) Balance at March 31, 2016 13 910 9 9,100 91 (100,319) (100,219) Comprehensive income for the year 172,923 172,923 Balance at March 31, 2017 13 910 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Cash Flows (Expressed in Canadian dollars) Income (loss) for the year $ 172,923 $ (55,160) Adjustments for: Amortization 13,459 10,925 Changes in non-cash working capital items: Receivables (41,630) 16,517 Inventory (66,797) 43,750 Prepaid expenses and deposits (346) 5,459 Trades payable and accrued liabilities (4,138) (64,348) Customer deposits 41,740 63,866 Income taxes payable 17,251 - Net cash flows used in operating activities 132,463 21,009 Expenditures on plant and equipment - (24,280) Net cash flows used in investing activities - (24,280) Payment of bank indebtedness (159,637) (13,963) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) Net cash flows used in financing activities (79,603) (7,237) Increase (decrease) in cash 52,860 (10,508) Cash, beginning 19,986 30,494 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Notes to the Financial Statements (Expressed in Canadian dollars) For the years ended March 31, 2017 and 2016.

Independent Auditor’s Report. To the Board of Directors of Intermeccanica International Inc. San Xxxx Clinic We have audited the accompanying financial statements of Intermeccanica International Inc. San Xxxx Clinic (the Clinic), a nonprofit organization, which comprise the statement of financial position as at March of December 31, 2017 and 20162020, and the related statements of comprehensive income (loss)activities and changes in net assets, shareholders' equity functional expenses and cash flows for the years then ended, ended and a summary of significant accounting policies and other explanatory informationthe related notes to the financial statements. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standardsaccounting principles generally accepted in the United States of America; this includes the design, implementation, and for such maintenance of internal control as management determines is necessary relevant to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our auditaudits. We conducted our audit audits in accordance with Canadian auditing standards generally accepted auditing standardsin the United States of America. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entityClinic's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entityClinic's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. In our opinion, the financial statements present fairly, in all material respects, the financial position of Intermeccanica International Inc. as We did not observe inventory (stated at March $2,687,252) taken on December 31, 2017 2019. The Clinic’s accounting records do not permit us to extend our auditing procedures to obtain sufficient appropriate evidence for beginning balance of inventory amounts noted in the accompanying statement of financial position. Consequently, we were unable to determine whether any adjustments were necessary in the statements of activities and 2016net assets, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. Vancouver, Canada October XX, 2017 Intermeccanica International Inc. Statements statement of Financial Position (Expressed in Canadian dollars) Cash $ 72,846 $ 19,986 Receivables 109,918 68,288 Inventory 4 422,670 355,873 Taxes recoverable 5 8,216 8,216 Prepaid expenses and deposits 16,952 16,606 Plant and equipment 6 38,394 51,853 Bank indebtedness 7 $ - $ 159,637 Trade payables and accrued liabilities 8 80,103 84,241 Customer deposits 317,928 276,188 Income taxes payable 17,251 - Current portion of long-term debt 9 4,153 4,153 Long-term debt 9 9,344 13,498 Shareholder loans 14 167,512 83,324 Share capital 13 100 100 Retained earnings (deficit) 72,605 (100,319) TOTAL EQUITY 72,705 (100,219) Commitments (Note 10) Subsequent events (Note 16) On behalf of the Board of Directors. ___________________________ Director ___________________________ Director The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Comprehensive Income (Loss) (Expressed in Canadian dollars) Revenue 11 $ 1,262,657 $ 1,001,549 Cost of sales 700,000 681,399 Gross profit 562,657 320,150 Advertising and promotion 20,038 24,747 Amortization of equipment 13,459 10,925 Bad debts 1,511 1,262 Bank charges & interest 9,998 12,526 Computer expenses 1,044 1,363 Insurance 15,394 13,522 Office expenses 5,655 4,156 Professional fees 8,059 8,799 Rent, property taxes and licenses 77,727 76,384 Research and development expenses - 38,585 Salaries and benefits 145,976 127,687 Shop supplies 27,752 21,678 Telephone and utilities 24,015 23,252 Travel 21,855 11,924 372,482 376,810 Profit (loss) before tax 190,175 (56,660) Provision for income tax 12 17,251 (1,500) The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Changes in Equity (Expressed in Canadian dollars) Common shares/U> Preferred shares Earnings Balance at March 31, 2015 13 910 $ 9 9,100 $ 91 $ (45,159) $ (45,059) Comprehensive loss for the year - - - - (55,160) (56,160) Balance at March 31, 2016 13 910 9 9,100 91 (100,319) (100,219) Comprehensive income for the year 172,923 172,923 Balance at March 31, 2017 13 910 $ 9 9,100 $ 91 $ 72,605 $ 72,705 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Statements of Cash Flows (Expressed in Canadian dollars) Income (loss) for the year $ 172,923 $ (55,160) Adjustments for: Amortization 13,459 10,925 Changes in non-cash working capital items: Receivables (41,630) 16,517 Inventory (66,797) 43,750 Prepaid expenses and deposits (346) 5,459 Trades payable and accrued liabilities (4,138) (64,348) Customer deposits 41,740 63,866 Income taxes payable 17,251 - Net cash flows used in operating activities 132,463 21,009 Expenditures on plant and equipment - (24,280) Net cash flows used in investing activities - (24,280) Payment of bank indebtedness (159,637) (13,963) Proceeds from (repayment of) loan (4,154) 17,651 Proceeds from (repayment of) shareholder loans 84,188 (10,925) Net cash flows used in financing activities (79,603) (7,237) Increase (decrease) in cash 52,860 (10,508) Cash, beginning 19,986 30,494 The accompanying notes are an integral part of these financial statements Intermeccanica International Inc. Notes to the Financial Statements (Expressed in Canadian dollars) For the years ended March 31, 2017 and 2016cashflows.