lmdcf20210525

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ☐ No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________________.

Pursuant to the requirements of the Securities Exchange Act of 1934 the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunder duly authorized.

The accompanying unaudited condensed consolidated interim financial statements of Lingo Media Corporation have been prepared by and are the responsibility of the Company's management. These unaudited condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") and reflect Management’s best estimates and judgements based on information currently available. The Company's independent auditor has not performed a review of these financial statements in accordance with standards established for a review of interim financial statements by an entity's auditor.

	Notes	March 31, 2021			December 31, 2020
ASSETS
Current Assets
Cash		$	1,672,465		$	1,212,778
Accounts and grants receivable	5		385,956			973,852
Prepaid and other receivables			104,590			168,932
			2,163,011			2,355,562
Non-Current Assets
Property and equipment	6		18,948			23,685
Right- of-use assets	7		-			16,788
TOTAL ASSETS		$	2,181,959		$	2,396,035

EQUITY AND LIABILITIES

Current Liabilities
Accounts payable		$	87,665		$	82,125
Accrued liabilities			133,282			138,715
Contract liability	8		290,460			218,566
Lease obligation	7		-			19,600
			511,407			459,006
Non-Current Liabilities
Loans payable	9		70,000			70,000
TOTAL LIABILITIES		$	581,407		$	529,006

Equity
Share capital	10	$	21,914,722		$	21,914,722
Share-based payment reserve	11		4,073,956			4,072,176
Accumulated other comprehensive income			(201,344	)		(352,764	)
Deficit			(24,186,782	)		(23,767,105	)
TOTAL EQUITY			1,600,552			1,867,029
TOTAL EQUITY AND LIABILITIES		$	2,181,959		$	2,396,035

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

These condensed consolidated interim financial statements are authorized for issue by the Board of Directors on May 28, 2021.

	Notes	2021			2020			2019
Revenue	14,16	$	149,080		$	97,124		$	111,964

Expenses

Selling, general and administrative (recovery)	16		268,323			(356,207	)		277,003
Direct costs			72,282			74,892			44,936
Development costs			52,000			49,998			57,721
Bad debt expense			-			32,386			-
Share-based payments			1,780			4,861			27,758
Depreciation – right-of-use asset			16,788			22,469			-
Depreciation – property and equipment	6		2,505			3,455			4,410
Total Expenses (Recovery)			413,678			(168,146	)		411,828

Income / (Loss) from Operations			(264,598	)		265,270			(299,864	)

Net Finance Charges
Interest (income) expense			2,270			(20,954	)		4,231
Foreign exchange (gain) loss			149,933			49,169			2,867

Profit / (Loss) Before Income Tax			(416,801	)		237,055			(306,962	)
Income tax expense			2,876			3,436			7,560
Net Profit (Loss) for the Period			(419,677	)		233,619			(314,522	)

Other Comprehensive Income

Exchange gain (loss) on translating foreign operations			151,420			165,461			(14,377	)

Total Comprehensive Income (Loss)		$	(268,257	)	$	399,080		$	(328,899	)

Earnings (Loss) per Share
Basic		$	(0.01	)	$	0.01		$	(0.00	)
Diluted		$	(0.01	)	$	0.01		$	(0.00	)
Weighted Average Number of Common Shares Outstanding
Basic			35,529,132			35,529,132			35,529,132
Diluted			39,485,448			35,529,132			35,529,132

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

	Issued Share Capital				Share- Based Reserves		Accumulated Other Comprehensive Income			Deficit			Total Equity
	No. of Shares		Amount
Balance as at January 1, 2020		35,529,192	$	21,914,722	$	4,049,032	$	(319,994	)	$	(24,877,484	)	$	766,276
Loss for the period		-		-		-		-			233,619			233,619
Other comprehensive loss		-		-		-		165,461			-			165,461
Share-based payments charged to operations		-		-		4,861		-			-			4,861
Balance as at March 31, 2020		35,529,192	$	21,914,722	$	4,053,893	$	(154,533	)	$	(24,643,865	)	$	1,170,217
Income for the period		-		-		-		-			876,760			876,760
Other comprehensive loss		-		-		-		(198,231	)		-			(198,231	)
Share-based payments charged to operations		-		-		18,283		-			-			18,283
Balance as at December 31, 2020		35,529,192	$	21,914,722	$	4,072,176	$	(352,764	)	$	(23,767,105	)	$	1,867,029
Income for the period		-		-		-		-			(419,677	)		(419,677	)
Other comprehensive income		-		-		-		151,420			-			151,420
Share-based payments charged to operations		-		-		1,780		-			-			1,780
Balance as at March 31, 2021		35,529,192	$	21,914,722	$	4,073,956	$	(201,344	)	$	(24,186,782	)	$	1,600,552

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

	2021			2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES

Net Profit (Loss) for the Period	$	(419,677	)	$	233,619		$	(314,522	)

Adjustments to Net Profit (Loss) for Non-Cash Items:

Share-based payment		1,780			4,861			27,758
Lease inducement		-			-			(2,903	)
Unrealized foreign exchange (gain) loss		154,674			183,636			(14,363	)
Depreciation – right-of-use asset		16,788			22,469			-
Depreciation – property and equipment		2,505			3,455			4,410

Operating Profit (Loss) Before Working Capital Changes		(243,930	)		429,819			(299,620	)

Working Capital Adjustments:

Accounts and grants receivable		587,896			(134,625	)		(93,985	)
Prepaid and other receivables		64,342			7,160			14,341
Accounts payable		5,540			(139,069	)		(25,288	)
Accrued liabilities		(5,433	)		129,668			56,164
Contract liability		71,894			(19,237	)		12,916
Lease obligation		(19,600	)		(18,221	)		-

Cash Generated (Used in) from Operations		460,709			273,716			(335,472	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(1,022	)		-			(450	)

Cash Used in investing activities		(1,022	)		-			(450	)

CASH FLOWS FROM FINANCING ACTIVITIES
Payment of principal portion of lease obligation		-			(29,400	)		-
Interest on lease obligation		-			11,179			-
Proceeds from loans payable		-			-			166,612
Repayment of loans payable		-			-			-

Cash Generated (Used in) from Financing Activities		-			(18,221	)		166,612

NET INCREASE (DECREASE) IN CASH		459,687			255,495			(169,310	)

Cash at the Beginning of the Period		1,212,778			442,489			233,843

Cash at the End of the Period	$	1,672,465		$	697,984		$	64,533

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

2.	BASIS OF PREPRATION

2.1

Statement of compliance

These condensed consolidated interim financial statements are unaudited and have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ (“IAS 34”) using accounting policies consistent with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”).

The condensed consolidated interim financial statements for the period ended March 31, 2021 were approved and authorized by the Board of Directors on May 28, 2020.

2.2

Basis of measurement

These condensed consolidated interim financial statements have been prepared on the historical cost basis except as provided in note 4. The comparative figures presented in these consolidated financial statements are in accordance with the same accounting policies.

2.3

Basis of consolidation

The condensed consolidated interim financial statements comprise the financial statements of the Company and its wholly owned subsidiaries controlled by the Company (the “Group”) as at March 31, 2020. Control exists when the Company is exposed to or has the rights to variable returns from its involvement with the entity and has the ability to affect these returns through its power over the entity.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All inter-group balances, transactions, unrealized gains and losses resulting from inter-group transactions and dividends are eliminated in full.

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

2.	BASIS OF PREPRATION (Cont’d)

2.4

Functional and presentation currency

The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Group. These consolidated financial statements are presented in Canadian Dollars, which is the Company’s functional currency. The functional currency of ELL Technologies Limited and Lingo Group Limited are United States Dollar (“USD”). All other subsidiaries’ functional currency is Canadian Dollar (“CAD”).

The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, “The Effects of Changes in Foreign Exchange Rates”.

3.	SIGINFICANT ACCOUTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s condensed consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, reported amounts of assets, liabilities and contingent liabilities, revenues and expenses at the date of the consolidated financial statements and during the reporting period.

Estimates and assumptions are continuously evaluated and are based on management’s historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods.

Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes:

●

Determination of functional currency

●

Determination of expected credit loss

●

Recognition of internally developed intangibles

●

Recognition of government grant and grant receivable

●

Recognition of deferred tax assets

●

Valuation of share-based payments

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the consolidated entity based on known information. This consideration extends to the nature of the products and services offered, customers, staffing and geographic regions in which the consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavorably as at the reporting date or subsequently as a result of the COVID-19 pandemic.

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

6.	PROPERTY AND EQUIPMENT

	Computer and Office Equipment			Leasehold Improvements		Total
Cost, January 1, 2020	$	84,828		$	33,180	$	118,008
Effect of foreign exchange		1,083			-		1,083
Cost, March 31, 2020	$	85,911		$	33,180	$	119,091
Additions		2,319			-		2,319
Effect of foreign exchange		(1,278	)		-		(1,278	)
Cost, December 31, 2020	$	86,952		$	33,180	$	120,132
Additions		1,022			-		-
Disposal		(33,384	)		-		-
Effect of foreign exchange		(173	)		-		-
Cost, March 31, 2021	$	54,417		$	33,180	$	117,236

Accumulated depreciation, January 1, 2020	$	59,567		$	23,226	$	82,793
Charge for the period		1,322			2,133		3,455
Effect of foreign exchange		1,037			-		1,037
Accumulated depreciation, March 31, 2020	$	61,926		$	25,359	$	87,285
Charge for the period		3,992			6,399		10,391
Effect of foreign exchange		(1,229	)		-		(1,229	)
Accumulated depreciation, December 31, 2020	$	64,689		$	31,758	$	96,447
Charge for the period		1,083			1,422		2,505
Disposal		(30,134	)		-		(30,524	)
Effect of foreign exchange		(169	)		-		221
Accumulated depreciation, March 31, 2021	$	35,469		$	33,180	$	68,649
Net book value, January 1, 2020	$	25,261		$	9,954	$	35,215
Net book value, March 31, 2020	$	23,985		$	7,821	$	31,806
Net book value, December 31, 2020	$	22,263		$	1,422	$	23,685
Net book value, March 31, 2021	$	18,948		$	-	$	18,949

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

7.	RIGHT-OF-USE ASSET AND LEASE OBLIGATION

The Company has one office facility under lease. The lease term is 5 years from 2016, with an option to renew the lease for another 5 year term after that date. The Company did not renew the lease on expiry and the lease was expired on February 28, 2021.

Non-cancellable lease rentals are payable as follows:

Less than 1 year	$	-
Between 1 and 5 years		-
	$	-

The Company has equipment leases and office lease in Beijing which it has determined are not recognized as right of use assets or lease liabilities as they are short-term lease and low dollar value. The Beijing office lease expense for the period is $3,603.

The Company’s lease obligation and movements therein during the period ended March 31, 2021:

	Lease Obligation
Lease obligation as of January 1, 2020	$	574,762
Accretion on lease liability		11,178
Lease payment		(29,399	)
Lease obligation at March 31, 2020		556,541
Accretion on lease liability		31,304
Lease payment		(88,199	)
Adjustment from lease reassessment		(480,046	)
Lease obligation at December 31, 2020	$	19,600
Lease payment		(19,600	)
Lease obligation at March 31, 2021	$	-

The Company’s right-of-use assets and movements therein during the period ended March 31, 2020:

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

7.	RIGHT-OF-USE ASSET AND LEASE OBLIGATION (Cont’d)

	Office Lease
Right-of-use assets at January 1, 2020	$	514,181
Depreciation on right-of-use assets		(22,469	)
Right-of-use assets at March 31, 2020		491,712
Adjustment from lease reassessment		(480,047	)
Depreciation on right-of-use assets		5,123
Right-of-use assets at December 31, 2020	$	16,788
Depreciation on right-of-use assets		(16,788	)
Right-of-use assets at March 31, 2021	$	-

11.

SHARE-BASED PAYMENTS

In December 2017, the Company amended its stock option plan (the “2017 Plan”). The 2017 Plan was established to provide an incentive to management (officers), employees, directors and consultants of the Company and its subsidiaries. The maximum number of shares which may be reserved for issuance under the 2017 Plan is limited to 7,105,838 common shares less the number of shares reserved for issuance pursuant to options granted under the 1996 Plan, the 2000 Plan, the 2005 Plan, the 2009 Plan and the 2011 Pan, provided that the Board of Directors of the Company has the right, from time to time, to increase such number subject to the approval of the relevant exchange on which the shares are listed and the approval of the shareholders of the Company.

The maximum number of common shares that may be reserved for issuance to any one person under the 2017 Plan is 5% of the common shares outstanding at the time of the grant (calculated on a non-diluted basis) less the number of shares reserved for issuance to such person under any option to purchase common shares of the Company granted as a compensation or incentive mechanism.

The exercise price of each option cannot be less than the market price of the shares on the day immediately preceding the day of the grant less any permitted discount. The exercise period of the options granted cannot exceed 10 years. Options granted under the 2017 Plan do not have any required vesting provisions. However, the Board of Directors of the Company may, from time to time, amend or revise the terms of the 2017 Plan or may terminate it at any time.

The following summarizes the options outstanding:

	Number of Options			Weighted Average Exercise Price			Warrant Remaining Contract Life (Yrs)
Outstanding as at January 01, 2020		6,642,000		$	0.13			2.26
Granted		450,000		$	0.05			2.85
Forfeited		(2,000	)	$	0.23			-
Outstanding as at March 31, 2020		7,090,000		$	0.12			1.37
Granted		-		$	-			(0.75	)
Expired		(2,730,000	)	$	0.20
Forfeited		(120,000	)	$	(0.05	)		-
Outstanding as at December 31, 2020		4,240,000		$	0.07			1.08
Outstanding as at March 31, 2021		4,240,000		$	. 0.07			0.83

Options exercisable as at March 31, 2020	6,590,000	$	0.13
Options exercisable as at December 31, 2020	4,127,500	$	0.07
Options exercisable as at March 31, 2021	4,240,000	$	0.07

The weighted average remaining contractual life for the stock options outstanding as at March 31, 2021 was 0.83 years (2020 - 1.37 years, 2019 - 2.17 years). The range of exercise prices for the stock options outstanding as at March 31, 2021 was $0.05 - $0.13 (2020 - $0.05 - $0.23 , 2019 - $0.07 - $0.23). The weighted average grant-date fair value of options granted to management, employees, directors and consultants during the period has been estimated at nil (2020 - $0.0355, 2019 - $0.0453) using the Black-Scholes option-pricing model.

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

11.

SHARE-BASED PAYMENTS (Cont’d)

The pricing model assumes the weighted average risk free interest rates of Nil (2020 - 1.37%, 2019 - 2.19%, weighted average expected dividend yields of nil (2020 - nil, 2019 - nil), the weighted average expected common stock price volatility (based on historical trading) of nil (2020 - 123%, 2019 - 105%), a forfeiture rate of 0% (2020 - 0%, 2019 - 0%), a weighted average stock price of $0.08 (2020 - $0.07 , 2019 - $0.20), a weighted average exercise price of $0.07 (2020 - $0.05, 2019 - $0.07), and a weighted average expected life of 0.83 (2020 - 2.85 years, 2019 - 2.85 years ), which were estimated based on past experience with options and option contract specifics.

13.

FINANCIAL INSTRUMENTS

Fair values

The carrying value of cash and accounts and grants receivable, approximates their fair value due to the liquidity of these instruments. The carrying values of accounts payables and accrued liabilities and loans payables approximate their fair value due to the requirement to extinguish the liabilities on demand or payable within a year.

Financial risk management objectives and policies

The financial risk arising from the Company’s operations are currency risk, liquidity risk and credit risk. These risks arise from the normal course of operations and all transactions undertaken are to support the Group’s ability to continue as a going concern. The risks associated with these financial instruments and the policies on how to mitigate these risks are as follows:

(i)

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s monetary assets and liabilities denominated in currencies other than the Canadian Dollar and the Company’s net investments in foreign subsidiaries.

The Company operates internationally and is exposed to foreign exchange risk as certain expenditures are denominated in non-Canadian Dollar currencies.

The Company has been exposed to this fluctuation and has not implemented a program against these foreign exchange fluctuations.

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

13.

FINANCIAL INSTRUMENTS (Cont’d)

Financial risk management objectives and policies (Cont’d)

(i)

Foreign currency risk (Cont’d)

A 10% strengthening of the US Dollar against the Canadian Dollar would have increased the net equity approximately by $115,087 (2020 ‑ $54,727) due to reduction in the value of net liability balance. A 10% of weakening of the US Dollar against the Canadian Dollar at March 31, 2021 would have had the equal but opposite effect. The significant financial instruments of the Company, their carrying values and the exposure to other denominated monetary assets and liabilities, as of March 31, 2021 are as follows:

	March 31, 2021		March 31, 2020
	USD		USD
Cash		1,162,097		132,784
Accounts receivable		245,206		639,087
Accounts payable		28,442		45,794

(ii)

Liquidity risk

The Company manages its liquidity risk by preparing and monitoring forecasts of cash expenditures to ensure that it will have sufficient liquidity to meet liabilities when due. The Company’s accounts payable and accrued liabilities generally have maturities of less than 90 days. At March 31, 2021, the Company had cash of $1,672,465 accounts and grants receivable of $385,956 and prepaid and other receivables of $104,590 to settle current liabilities of $511,407.

(iii)

Credit risk

Credit risk refers to the risk that one party to a financial instrument will cause a financial loss for the counterparty by failing to discharge an obligation. The Company is primarily exposed to credit risk through accounts receivable. The maximum credit risk exposure is limited to the reported amounts of these financial assets. Credit risk is managed by ongoing review of the amount and aging of accounts receivable balances. As at March 31, 2021, the Company has outstanding receivables of $330,956 (2020 - $973,127). New impairment requirements use an 'expected credit loss' ('ECL') model to recognize an allowance. Impairment is measured using a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. For receivables, a simplified approach to measuring expected credit losses using a lifetime expected loss allowance is available. The Company deposits its cash with high credit quality financial institutions, with the majority deposited within Canadian Tier 1 Banks.

16.

SEGMENTED INFORMATION AND REVENUE

The Company operates two distinct reportable business segments as follows:

License of intellectual property: Lingo Learning is a print-based publisher of English language learning textbook programs in China. It earns significantly higher royalties from Licensing Sales compared to Finished Product Sales.

Online and Offline Language Learning: ELL Technologies is a global web-based educational technology (“EdTech”) language learning, training, and assessment company. The Company provides the right to access to hosted software over a contract term without the customer taking possession of the software. The Company also provides offline licenses for the right to use perpetual language-learning.

Transactions between operating segments and reporting segment are recorded at the exchange amount and eliminated upon consolidation.

Segmented Information (Before Other Financial Items Below)

March 31, 2021	Online English Language Learning			Print-Based English Language Learning			Head Office			Total
Segmented assets	$	240,769		$	1,907,372		$	33,818		$	2,181,959
Segmented liabilities		375,781			101,011			104,615			581,407
Segmented revenue		122,250			26,830			-			149,080
Segmented direct costs		29,882			42,400			-			72,282
Segmented selling, general & administrative expense		50,986			93,101			124,236			268,323
Segmented other expense		218			24,300			901			25,419
Segmented profit (loss)		(10,836	)		(130,524	)		(124,336	)		(265,697	)

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

16.

SEGMENTED INFORMATION AND REVENUE (Cont’d)

March 31, 2020	Online English Language Learning			Print-Based English Language Learning			Head Office			Total
Segmented assets	$	483,281		$	1,758,244		$	67,547		$	2,309,072
Segmented liabilities		368,896			625,325			144,634			1,138,855
Segmented revenue		71,051			26,073			-			91,124
Segmented direct costs		39,278			35,614			-			74,892
Segmented selling, general & administrative expense		(603,902	)		91,102			156,593			(356,207	)
Segmented other expense		897			28,319			144			29,360
Segmented profit (loss)		552,394			(128,961	)		(156,738	)		266,695

March 31, 2019	Online English Language Learning			Print-Based English Language Learning			Head Office			Total
Segmented assets	$	166,183		$	991,858		$	50,322		$	1,208,363
Segmented liabilities		326,088			176,976			447,846			950,910
Segmented revenue		80,503			31,461			-			111,964
Segmented direct costs		23,005			21,931			-			44,936
Segmented selling, general & administrative expense		58,525			99,964			118,515			277,003
Segmented other expense		2,843			8,948			179			11,970
Segmented loss		(61,589	)		(99,383	)		(118,694	)		(279,666	)

Other Financial Items	2021			2020			2019
Online English Language Learning segmented income (loss)	$	(10,833	)	$	552,394		$	(61,589	)
Print-Based English Language Learning segmented income (loss)		(130,522	)		(128,961	)		(99,383	)
Head office		(124,336	)		(156,738	)		(118,694	)
Foreign exchange		(149,933	)		(49,169	)		(2,867	)
Interest income (expense)		(2,270	)		20,954			(4,231	)
Share-based payment		(1,780	)		(4,861	)		(27,758	)
Other comprehensive income (loss)		151,420			165,461			(14,377	)
Total Comprehensive Income (Loss)	$	(268,257	)	$	399,080		$	(328,899	)

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

16.

SEGMENTED INFORMATION AND REVENUE (Cont’d)

Identifiable Non-Current Assets by Geographic Region

	2021		2020		2019
Canada	$	18,451	$	522,979	$	48,585
China		497		538		604
	$	18,948	$	523,518	$	49,189

Revenue by Geographic Region

	2021		2020		2019
Latin America	$	106,686	$	58,296	$	66,118
China		30,213		27,221		34,162
Other		12,181		11,607		11,684
	$	149,080	$	97,124	$	111,964

18.

RELATED PARTY BALANCES AND TRANSACTIONS

During the period, the Company had the following transactions with related parties, made in the normal course of operations, and accounted for at an amount of consideration established and agreed to by the Company and related parties.

(a)

The Company charged $3,700 (2020 - $5,100, 2019 - $84,442) to the corporations with director or officer in common for rent, administration, office charges and telecommunications.

(b)

During the period ended March 31, 2021, the company paid $1,200 director fees to independent directors.

(c)

Key management compensation was $73,500 (2020 - $132,266, 2019 - $78,000) and is reflected as consulting fees paid to corporations owned by a director and officers of the Company, of which $nil (2020 - $30,766) of the management compensation is included in accrued liabilities.

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the three-month period ended March 31, 2021

(Unaudited - See Notice to Reader)

(Expressed in Canadian Dollars, unless otherwise stated)

19.

COVID-19

Since December 31, 2019, the outbreak of the novel strain of coronavirus, specifically identified as “COVID-19,” has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The extent to which COVID-19 and any other pandemic or public health crisis impacts the Company’s business, affairs, operations, financial condition, liquidity, availability of credit and results of operations will depend on future developments that are highly uncertain and cannot be predicted with any meaningful precision, including new information which may emerge concerning the severity of the COVID-19 virus and the actions required to contain the COVID-19 virus or remedy its impact, among others.

The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions. 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 and its operating subsidiaries in future periods.

Lingo Media has taken measures to protect its management, employees and contractors and has advised them to work from home and maintain a safe environment to ensure they are healthy and have minimal exposure to the risk of infection.

The Company has contacted all the parties it is working with to ensure they are all working in a safe environment. A number of such parties have had an impact on their operations and ability to collaborate, while, a large number have identified multiple new business opportunities due to COVID-19 and the stay at home order of students in many countries. Lingo Media is offering e-learning solutions which fit the challenges schools and universities are facing by providing an online language learning solutions. In addition, the Company has designed a number of promotions to ensure its clients can easily deploy its suite of products that are well suited for a quarantined environment.

	LINGO MEDIA CORPORATION

Date: May 28, 2021	By:	/s/ Gali Bar-Ziv
		Gali Bar-Ziv President and CEO

Contents

Condensed Consolidated Interim Financial Statements	Page

Balance Sheets	4
Statements of Comprehensive Income	5
Statements of Changes in Equity	6
Statements of Cash Flows	7
Notes to the Financial Statements	8-19

	March 31, 2021		December 31, 2020
Trade receivable	$	330,956	$	973,852
Government grants receivable (Note 14)		55,000		-
	$	385,956	$	973,852

Balance, December 31, 2019	$	192,958
Amounts invoices and revenue deferred as at March 31, 2020		37,569
Recognition of deferred revenue included in period		(56,806	)
Balance, March 31, 2020	$	173,721
Amounts invoices and revenue deferred as at December 31, 2020		229,658
Recognition of deferred revenue included in the adjusted balance at the beginning of the period		(184,813	)
Balance, December 31, 2020	$	218,566
Amounts invoices and revenue deferred as at March 31, 2021		135,523
Recognition of deferred revenue included in period		(63,628	)
Balance, March 31, 2021	$	290,460

/s/ Gali Bar-Ziv		/s/ Jerry Grafstein
Director		Director