Exhibit 99.24

 

GRANDE WEST TRANSPORTATION GROUP INC.

Unaudited Interim Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2020 and 2019

Grande West Transportation Group Inc.

Interim Condensed Consolidated Statements of Financial Position (Unaudited, expressed in Canadian Dollars)

	Note		June 30, 2020			December 31, 2019
				$			$
Current Assets
Cash and cash equivalents				440,804			757,261
Restricted cash				356,616			356,616
Trade and other receivables				7,377,974			9,199,646
Inventory		3		22,470,670			19,303,162
Prepaids and deposits				2,256,432			1,203,744
				32,902,496			30,820,429
Long-term Assets
Intangible assets				1,391,032			1,551,333
Property and equipment				4,392,694			4,532,699
				38,686,222			36,904,461
Current Liabilities
Accounts payable and accrued liabilities				13,264,563			7,889,908
Credit facility		4		793,343			5,849,682
Current portion of deferred revenue		5		4,400,819			1,281,364
Current portion of provision for warranty cost		6		929,362			1,403,792
Current debt facilities		7		2,475,969			1,960,503
Current portion of other long-term liabilities				228,847			226,003
				22,092,903			18,611,252
Long-term Liabilities
Other long-term liabilities				274,364			388,931
Provision for warranty cost		6		215,887			142,833
Deferred revenue		5		1,136,096			1,101,936
				23,719,250			20,244,952
Shareholders’ Equity (Deficiency)
Share capital		8		37,960,415			37,136,584
Contributed surplus		8		2,384,742			2,384,204
Accumulated other comprehensive loss				(8,566	)		(16,389	)
Deficit				(25,369,619	)		(22,844,890	)
				14,966,972			16,659,509
				38,686,222			36,904,461

COMMITMENTS (Note 12)

Approved on behalf of the Board:

/s/“William R. Trainer”	/s/“Christopher Strong”
Director	Director

See accompanying notes to the consolidated financial statements

Grande West Transportation Group Inc.

Interim Condensed Consolidated Statements of Loss
(Unaudited, expressed in Canadian Dollars)

			For the three			For the three			For the six			For the six
			months			months			months			months
			ended June 30,			ended June 30,			ended June 30,			ended June 30,
	Note		2020			2019			2020			2019
			$			$			$			$
Revenue
Bus sales		11		7,953,310			10,972,752			10,667,362			15,553,475
Other		11		748,610			906,109			2,002,541			2,058,420
				8,701,920			11,878,861			12,669,903			17,611,895
Cost of sales		3		(8,204,614	)		(9,536,905	)		(12,080,365	)		(13,929,855	)
Gross margin				497,306			2,341,956			589,538			3,682,040
Expenses
Sales and administration				1,062,249			2,093,219			2,519,493			3,683,542
Stock-based compensation				67,071			224,900			147,613			446,150
Amortization				158,961			154,445			317,408			307,888
Interest and finance costs		4,7		148,677			217,791			334,836			393,822
Foreign exchange (gain) loss				(145,075	)		86,108			(205,083	)		(34,455	)
				1,291,883			2,776,463			3,114,267			4,796,947
Net loss				(794,577	)		(434,507	)		(2,524,729	)		(1,114,907	)
Loss per share
Basic				(0.01	)		(0.01	)		(0.03	)		(0.02	)
Diluted				(0.01	)		(0.01	)		(0.03	)		(0.02	)
Weighted average number of common shares outstanding
Basic				75,756,586			72,636,912			75,756,586			72,636,912
Diluted				75,866,925			72,954,929			75,866,925			73,031,847

See accompanying notes to the consolidated financial statements

Grande West Transportation Group Inc.

Interim Condensed Consolidated Statements of Comprehensive Loss

(Unaudited, expressed in Canadian Dollars)

	For the three			For the three			For the six			For the six
	months			months			months			months
	ended June			ended June			ended June			ended June
	30, 2020			30, 2019			30, 2020			30, 2019
	$									$
Net loss		(794,577	)		(434,507	)		(2,524,729	)		(1,114,907	)
Other comprehensive loss
Items that may be reclassified subsequently to net loss
Exchange differences on translation of foreign operations		(5,971	)		—			7,823			—
Total other comprehensive (loss) income		(5,971	)		—			7,823			—
Total comprehensive loss		(800,548	)		(434,507	)		(2,516,906	)		(1,114,907	)

See accompanying notes to the consolidated financial statements

Grande West Transportation Group Inc.

Interim Condensed Consolidated Statements of Changes in Equity
(Unaudited, expressed in Canadian Dollars)

										Accumulated
										Other
			Number of				Contributed			Comprehensive						Total Shareholders’
	Note		Shares		Share Capital		Surplus			Income			Deficit			Equity (Deficiency)
						$		$			$			$			$
Balance, December 31, 2018				73,760,409		35,981,664		2,773,865			—			(17,859,481	)		20,896,048
Issuance of shares stock options exercised		8.2 (c)		250,000		177,919		(52,919	)		—			—			125,000
Issuance of shares RSU vested		8.2 (d)		460,000		933,800		(933,800	)		—						—
Stock-based compensation		8.4-8.5		—		—		446,150			—			—			446,150
Net loss				—		—		—			—			(1,114,907	)		(1,114,907	))
Balance, June 30, 2019				74,470,409		37,093,383		2,233,296			—			(18,974,388	)		20,352,291
Balance, January 1, 2020				74,530,409		37,136,584		2,384,204			(16,389	)		(22,844,890	)		16,659,509
Issuance of shares convertible debt exercised		8.2 (a)		1,837,736		751,831		(144,400	)		—			—			607,431
Issuance of shares RSU vested		8.2 (b)		100,000		72,000		(72,000	)		—			—			—
Warrants		8.3		—		—		69,326			—			—			69,326
Stock-based compensation		8.4-8.5		—		—		147,612			—			—			147,612
Other comprehensive income				—		—		—			7,823			—			7,823
Net loss				—		—		—			—			(2,524,729	)		(2,524,729	)
Balance, June 30, 2020				76,468,145		37,960,415		2,384,742			(8,566	)		(25,369,619	)		14,966,972

See accompanying notes to the consolidated financial statements

Grande West Transportation Group Inc.

Interim Condensed Consolidated Statements of Cash Flows
(Unaudited, expressed in Canadian Dollars)

			Six months ended			Six months ended
	Note		June 30, 2020			June 30, 2019
				$			$
OPERATING ACTIVITIES
Net loss for the year				(2,524,729	)		(1,114,907	)
Items not involving cash:
Amortization				491,348			505,351
Foreign exchange (gain) loss				(53,277	)		93,744
Interest and finance costs				334,836			393,822
Stock-based compensation		8		147,613			446,150
				(1,604,209	)		324,160
Changes in non-cash items:
Trade and other receivables				1,714,870			3,713,986
Inventory		3		(3,030,074	)		3,324,910
Prepaids and deposits				(1,052,687	)		(275,129	)
Accounts payable and accrued liabilities				5,345,804			(1,981,175	)
Deferred revenue		5		3,100,193			—
Warranty provision		6		(405,909	)		(414,503	)
Cash from operating activities before interest paid				4,067,988			4,692,249
Interest paid				(221,669	)		(206,447	)
Cash from operating activities				3,846,319			4,485,802
INVESTING ACTIVITIES
Intangible assets				—			(68,519	)
Purchase of property and equipment				(179,713	)		(36,707	)
Restricted cash				—			(1,383	)
Cash (used in) investing activities				(179,713	)		(106,609	)
FINANCING ACTIVITIES
Proceeds from issuance of common shares		8		—			125,000
Repayments of credit facility		4		(5,056,339	)		(2,641,632	)
Proceeds from current debt facilities		7		1,219,000			121,607
Repayment of current debt facilities		7		(51,866	)		(115,547	)
Repayment of convertible debt		7		(24,178	)		—
Repayment of long-term loans				(122,201	)		(86,480	)
Cash (used in) from financing activities				(4,035,584	)		(2,597,052	)
Effect of foreign exchange rate on cash				52,521			(93,744	)
(Decrease) increase in cash and cash equivalents				(316,457	)		1,688,397
Cash and cash equivalents, beginning				757,261			2,732,437
Cash and cash equivalents, ending				440,804			4,420,834
Supplemental cashflow information
Non-monetary transaction		11

See accompanying notes to the consolidated financial statements

Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

1. NATURE OF OPERATIONS

During the three months ended March 31, 2020, the coronavirus known as COVID-19 was announced as a global pandemic. As a result of global volatility, the Company has put in place business continuity plans to adapt to evolving market conditions. The Company is currently working with its financial institution to ensure credit lines remain active with sufficient access to capital. Even after taking into consideration the negative effects of the current COVID-19 pandemic on our delivery schedule, the Company has determined that there is no change in the Company’s conclusion about its ability to continue as a going concern. However, the duration and impact of COVID-19 is unknown at this time and it is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company in future periods. The Canadian Government has implemented policies giving aid to businesses due to COVID-19, as a result the Company has received $546,604 in aid during the six months ended June 30, 2020 which was recognized as a decrease in salary expenses.

2. BASIS OF PRESENTATION

i) Intercompany balances and transactions, and any unrealized gains arising from intercompany transactions, were eliminated in preparing the consolidated financial statements.

a) Statement of compliance

These unaudited interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, certain information and footnote disclosure normally included in annual financial statements prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, have been omitted or condensed. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019.

The consolidated financial statements were authorized for issue by the Board of Directors on August 21, 2020.

b) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments carried at fair value.

c) Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with IFRS requires the use of judgments and/or estimates that affect the amounts reported and disclosed in the consolidated financial statements and related notes. These judgments and estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to previous experience, but actual results may differ materially from the amounts included in the consolidated financial statements. For significant estimates and judgements refer to Note 6 as well as the audited consolidated financial statements for the year ended December 31, 2019.

3. INVENTORY

	June 30,2020		December 31, 2019
		$		$
Finished goods		18,929,776		14,336,356
Works in progress - buses		1,127,516		2,486,988
Parts for resale		2,413,378		2,479,818
Total Inventory		22,470,670		19,303,162

As at June 30, 2020 and December 31, 2019, finished goods inventory consisted of the costs of fully assembled buses, as well as freight and other costs incurred directly by the Company in compiling inventory. All inventory is part of the general security agreement to secure the credit facility described in Note 4.

During the six months ended June 30, 2020, the Company recognized $9,752,190 as the cost of inventory for direct materials included as an expense in cost of sales (June 30, 2019 - $11,000,351).

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Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

4. CREDIT FACILITY

During the year ended December 31, 2017, the Company entered into a revolving credit facility agreement with a financial institution for a maximum amount of $20 million. The terms of the agreement were amended during the three months ended March 31, 2019, to reduce the interest rate and extend the term to October of 2020. The credit facility bears interest of 0.75% plus Royal Bank Prime rate on Canadian loans and US Prime rate plus 0.75% on US loans. The facility is secured by way of a general security agreement over all assets of the Company.

As at June 30, 2020, the Company had drawn $793,343 on this facility, comprising $793,343 in Canadian funds and $nil in US funds.

Per the terms of the credit facility, the Company must maintain a consolidated 12 month rolling fixed charge coverage ratio. The financial institution has waived the covenant until July 31, 2020.

5. DEFERRED REVENUE

		June 30, 2020		December 31, 2019
			$		$
Sales deposits	(a)		3,100,193		—
Future delivery of buses	(b)		2,436,722		2,383,300
Less: current portion			4,400,819		1,281,364
Long-term portion of deferred revenue			1,136,096		1,101,936

a) The Company has received sales deposits from a customer for future deliveries.

b) The Company has recognized deferred revenue and an intangible asset in relation to an agreement with a customer to provide future delivery of eight buses. During the six months ended June 30, 2020, the Company recognized $53,422 in interest expense related to the deferred revenue.

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Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

6. PROVISION FOR WARRANTY COST

The Company provides bumper to bumper warranties coverage for the first two years on specified components, with the exception of normal wear and tear.

During the six months ended June 30, 2020, the Company recorded warranty expense of $371,323 (June 30, 2019 - $402,500) as part of its cost of sales in connection with sales completed during the six months. During the six months ended June 30, 2020, $377,787 (June 30, 2019 - $721,120) of warranty costs have been incurred against the provision. Change in estimate of the warranty provision relates to re-assessment of the warranty provision compared to the actual warranty claims applied.

	$
Balance at December 31, 2018	2,373,982
Additions	527,500
Warranty claims applied	(1,418,037	)
Change in estimate of warranty provision	63,180
Balance at December 31, 2019	1,546,625
Additions	371,323
Warranty claims applied	(377,787	)
Change in estimate of warranty provision	(399,613	)
Foreign exchange change in estimate	4,701
Balance at June 30, 2020	1,145,249
Less: Current portion	929,362
Long-term portion of warranty provision	215,887

7. CURRENT DEBT FACILITIES

		June 30, 2020		December 31, 2019
			$		$
Unsecured debentures	(a)		1,665,969		—
Private loan	(b)		810,000		1,300,000
Convertible debt	(c)		—		608,637
Property and Commercial Insurance Loan	(d)		—		51,866
			2,475,969		1,960,503

a) On March 20, 2020, the Company issued $1,750,000 in unsecured debentures with a maturity 12 months from the date of issue. The debentures were issued at a discount of 2% and include 10% annual interest paid at maturity; the Company incurred borrowing costs of $110,326 and the debt has an effective interest rate of 16%. During the six months ended June 30, 2020, the Company incurred $75,199 in interest expense on this loan, of which $48,904 is included in accounts payable and accrued liabilities at June 30, 2020.

In connection with the issuance, the Company also issued 1,050,000 warrants to purchase common shares at an exercise price of $0.38 per share, the value of these warrants was incorporated in the transaction costs of $110,326 referenced above. The warrants expire 12 months from the date of issue. In the event of default, the debt holder holds the right to convert into common shares at $0.38 per share.

b) The loans bear annual interest at a rate of 10%. During the six months ended June 30, 2020, the Company incurred $50,914 (June 30, 2019 - $138,985) in interest expense on this loan, of which $6,639 (June 30, 2019 - $nil) is included in accounts payable and accrued liabilities at June 30, 2020. During the six months ended June 30, 2020, the Company repaid $490,000 of this debt.

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Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

7. CURRENT DEBT FACILITIES (Continued)

c) On March 12, 2020, the Company issued 1,818,181 shares on the conversion of $600,000 in principal of the outstanding convertible debt. Principal of $24,178 was repaid at June 30, 2020.

d) On June 1, 2019, the Company renewed an insurance loan for a value of $121,607. The loan bears annual interest of 7.4% with monthly principal payments of $10,584.

8. SHARE CAPITAL

8.1 Authorized: Unlimited number of common shares without par value

8.2 Issued and Outstanding Common Shares:

The details for the common share issuances during the six months ended June 30, 2020 are as follows:

a. During the six months ended June 30, 2020, 1,837,736 shares were issued on settlement of the convertible debt of $607,431.

b. During the six months ended June 30, 2020, 100,000 RSU’s were exercised for gross proceeds of $nil.

The details for the common share issuances during the six months ended June 30, 2019 were as follows:

c. During the six months ended June 30, 2019, 250,000 stock options were exercised by employees of the Company at an average exercise price of $0.50 for gross proceeds of $125,000.

d. During the six months ended June 30, 2019, 460,000 RSU’s were exercised for gross proceeds of $nil.

8.3 Share Purchase Warrants

A summary of the Company’s share purchase warrants are as follows:

	Number of		Weighted Average
	Warrants		Exercise Price
				$
Outstanding, December 31, 2018		—		—
Issued		—		—
Forfeited		—		—
Exercised		—		—
Outstanding, December 31, 2019		—		—
Issued		1,050,000		0.38
Forfeited		—		—
Exercised		—		—
Outstanding, June 30, 2020		1,050,000		0.38

During the six months ended June 30, 2020, the Company issued 1,050,000 warrants as part of a debt agreement (Note 7) with an exercise price of $0.38. The warrants expire 12 months from the date of issue.

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Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

8. SHARE CAPITAL (Continued)

8.4 Directors, Consultants, and Employee stock options

The Company has adopted a stock option plan for which options to acquire up to 10% of the issued share capital, at the award date, may be granted to eligible optionees from time to time. Generally, stock options granted have a maximum term of five years, and a vesting period and exercise price determined by the directors.

A summary of the Company’s directors, consultants, and employee stock options are as follows:

	Number of			Weighted Average
	Options			Exercise Price
					$
Outstanding, December 31, 2018		3,290,000			1.35
Issued		2,100,000			0.61
Forfeited		(1,500,000	)		1.85
Exercised		(250,000	)		0.50
Outstanding, December 31, 2019		3,640,000			0.78
Issued		250,000			0.40
Forfeited		(500,000	)		0.55
Exercised		—			—
Outstanding, June 30, 2020		3,390,000			0.78

On May 4, 2020, the Company granted 100,000 stock options to an executive and a director to purchase common shares of the Company with an exercise price of $0.40 per common share and expiring on May 3, 2025. These stock options vest over one year.

On May 12, 2020, the Company granted 50,000 stock options to an executive to purchase common shares of the Company with an exercise price of $0.40 per common share and expiring on May 11, 2025. These stock options vest over one year.

On May 26, 2020, the Company granted 100,000 stock options to an executive to purchase common shares of the Company with an exercise price of $0.40 per common share and expiring on May 25, 2025. These stock options vest over three years.

On January 16, 2019, the Company granted 150,000 stock options to employees to purchase common shares of the Company with an exercise price of $0.78 per common share and expiring on January 16, 2024. These stock options vest after meeting certain performance criteria, they are expected to vest in 2019.

On January 17, 2019, the Company granted 500,000 stock options to two directors to purchase common shares of the Company with an exercise price of $0.80 per common share and expiring on January 17, 2024. These stock options vest over three years.

During the six months ended June 30, 2020, the Company recognized $121,622 (2019 - $309,737) on the grant and vesting of options to directors, consultants and employees. The grant date fair value per option was calculated using the Black-Scholes model with the following weighted average assumptions:

	June 30, 2020			Dec 31, 2019
Fair value at grant date	$	0.10		$	0.29
Risk-free interest rate		0.35	%		1.64	%
Expected life of options		5 years			5 years
Annual dividend rate		0	%		0	%
Annualized volatility		71	%		67	%
Forfeiture rate		13	%		8	%

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Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

8. SHARE CAPITAL (Continued)

The following tables summarize information about the Company’s stock options outstanding at June 30, 2020:

							Remaining
	Options		Options		Exercise		Contractual
	Outstanding		Exercisable		Price		Life (Years)		Expiry Date
					$
July 14, 2015		290,000		290,000		0.66		0.04	July 14, 2020
October 13, 2015		250,000		250,000		0.70		0.29	October 13, 2020
June 16, 2016		250,000		250,000		0.58		0.96	June 16, 2021
September 6, 2016		95,000		95,000		0.50		1.19	September 6, 2021
November 21,2016		130,000		130,000		1.44		1.39	November 21, 2021
March 14, 2017		25,000		25,000		2.50		1.70	March 14, 2022
April 26, 2018		250,000		166,667		1.45		2.82	April 26, 2023
May 29, 2018		250,000		166,667		1.45		2.91	May 29, 2023
January 16, 2019		150,000		150,000		0.78		3.55	January 16, 2024
January 17, 2019		500,000		166,667		0.80		3.55	January 17, 2024
April 26, 2019		100,000		33,333		0.56		3.82	April 26, 2024
November 15, 2019		700,000		116,667		0.50		4.38	November 15, 2024
November 28, 2019		150,000		150,000		0.52		4.42	November 28, 2024
May 4, 2020		100,000		—		0.40		4.84	May 3, 2025
May 12, 2020		50,000		—		0.40		4.87	May 11, 2025
May 26, 2020		100,000		16,666		0.40		4.90	May 25, 2025
Total		3,390,000		2,006,667

8.5 Restricted Share Units

Pursuant to the Company’s Restricted Share Unit (“RSU”) Incentive Plan approved by the board of directors of the Company on June 8, 2015, restricted share units to acquire common shares of the Company may be granted to specified service providers of the Company in accordance with the terms and conditions of the plan.

Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares.

A summary of the Company’s RSUs are as follows:

	Number of RSUs
Outstanding, December 31, 2018		460,000
Issued		290,000
Forfeited		(130,000	)
Vested		(520,000	)
Outstanding, December 31, 2019		100,000
Issued		—
Forfeited		—
Vested		(100,000	)
Outstanding, June 30, 2020		—

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Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

8. SHARE CAPITAL (Continued)

On January 16, 2019 the Company issued 290,000 RSU’s to directors and officers of the Company that vest after meeting certain performance criteria. At June 30, 2020, there were nil RSUs outstanding (June 30, 2019 290,000). During the six months ended June 30, 2020, the Company recorded $nil (June 30, 2019 - $123,483) as stock-based compensation for the fair value of the RSUs issued.

8.6 Deferred Share Units

Pursuant to the Company’s Deferred Share Unit (“DSU”) Incentive Plan approved by the board of directors of the Company on July 8, 2018, deferred share units to acquire common shares of the Company may be granted to specified board members of the Company in accordance with the terms and conditions of the plan.

Each DSU entitles the participant to receive one common share upon vesting, the DSUs vest on the board members separation date from the board of directors. DSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such DSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the DSU vests and the DSU participant receives common shares.

A summary of the Company’s DSUs are as follows:

	Number of DSUs
Outstanding, December 31, 2018	—
Issued	69,802
Outstanding, December 31, 2019	69,802
Issued	40,537
Outstanding, June 30, 2020	110,339

On January 1, 2020 the Company issued 40,537 DSUs to board members of the Company that vest upon the board members separation date from the board of directors.

On April 1, 2019 the Company issued 17,959 DSUs to board members of the Company that vest upon the board members separation date from the board of directors.

On July 1, 2019 the Company issued 24,163 DSUs to board members of the Company that vest upon the board members separation date from the board of directors.

On October 1, 2019 the Company issued 27,680 DSUs to board members of the Company that vest upon the board members separation date from the board of directors.

At June 30, 2020, there were 110,339 DSUs outstanding (June 30, 2019 17,959). During the six months ended June 30, 2020, the Company recorded $19,458 (June 30, 2019 - $12,930) as stock-based compensation for the fair value of the DSUs issued.

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Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

9. RELATED PARTY BALANCES AND TRANSACTIONS

Key Management includes personnel having the authority and responsibility for planning, directing and controlling the Company and includes the directors and executive officers.

Expenses incurred to Key Management are:

	Six months ended		Six months ended
	June 30, 2020		June 30, 2019
	$		$
Salaries and benefits		500,422		831,613
Directors’ fees		45,801		52,322
Rent (a)		109,252		—
Share-based compensation		134,498		416,315
		789,973		1,300,250

a) During the six months ended June 30, 2020 the Company paid $106,500 in rent to a company owned by a director. $109,252 was recognized as depreciation and interest expense on the lease.

During the six months ended June 30, 2019 rent in the amount $nil has been paid by the Company to a company with a common director and recognized as rent expense.

Balances with key management and other related parties are:

As at June 30, 2020, included in accounts payable are balances owing to a director and/or officer and/or companies controlled by officers of the Company in the amount of $66,003 (June 30, 2019 - $52,322).

All related party balances are non-interest bearing, unsecured and have no fixed terms of repayment and have been classified as current.

10. FINANCIAL INSTRUMENTS

Fair values

The Company’s financial instruments include cash and cash equivalents, restricted cash, trade and other receivables, accounts payable and accrued liabilities, credit facility, debt facilities and other long-term liabilities. The carrying amounts of these financial instruments are a reasonable estimate of their fair values because of their current nature and current market rates for similar financial instruments.

The following table summarizes the carrying values of the Company’s financial instruments:

	June 30, 2020		December 31, 2019
	$		$
Assets:
Measured at amortized cost (i)		8,175,394		10,313,523
Liabilities:
Amortized cost (ii)		17,037,086		15,706,390

(i) Cash, restricted cash and trade and other receivables

(ii) Accounts payable and accrued liabilities, credit facility, debt facilities and other long-term liabilities

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Grande West Transportation Group Inc.

Notes to the Interim Condensed Consolidated Financial Statements
Three and six months ended June 30, 2020 and June 30, 2019
(Unaudited, expressed in Canadian Dollars)

11. REVENUE

The Company’s revenue is summarized as follows:

	Six months ended		Six months ended
	June 30, 2020		June 30, 2019
	$		$
Bus sales (a)		10,667,362		15,553,475
Other revenue:
Spare part sales		1,786,541		1,663,753
Operating lease revenue (b)		216,000		394,667
Total revenue		12,669,903		17,611,895

a) During the three months ended June 30, 2020, the Company received eight used buses as a trade-in for a sale to a customer. As a result of the non-monetary portion of this transaction, the Company recorded the eight used buses received at a fair value of $800,000 as revenue and inventory.

b) During the year ended December 31, 2018, the Company entered into an operating lease agreement with a customer for seven buses. Revenue of $216,000 (June 30, 2019 - $394,667) has been recognized in profit and loss during the six months ended June 30, 2020 related to this lease agreement.

12. COMMITMENTS

The Company entered into a production agreement with its manufacturer in China whereby the parties have agreed to a specified production volume. Future minimum payments to the manufacturer as at June 30, 2020 are as follows:

	$
Not later than one year		27,640,991
Later than one year and no later than five years		—
		27,640,991

13. SEGMENT INFORMATION

Allocation of revenue to geographic areas is as follows:

	Six months ended		Six months ended
	June 30, 2020		June 30, 2019
	$		$
Canada
Bus sales		8,421,947		11,962,149
Spare part sales		1,695,609		1,554,146
Operating lease revenue		216,000		394,667
United States
Bus sales		2,245,415		3,591,326
Spare part sales		90,932		109,607
Total		12,669,903		17,611,895

During the six months ended June 30, 2020, the Company had bus sales of $5,953,309 and $2,245,415 to two customers representing 47% and 18% of total sales, respectively. During the six months ended June 30, 2019, the Company had bus sales of $5,353,989 and $3,591,326 to two customers representing 30% and 20% of total sales, respectively.

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