6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of June 30, 2021

Commission File Number 333-98397

Lingo Media Corporation

(Translation of registrant's name into English)

151 Bloor Street West, Suite 703, Toronto, Ontario Canada M5S 1S4

(Address of principal executive offices)

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-________________.

Exhibit Index

1	Management Discussion and Analysis for the second quarter ended June 30, 2021 to Exhibit 1.
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

SIGNATURE

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.

	LINGO MEDIA CORPORATION
Date: August 26, 2021	By:	/s/ “ Gali Bar-Ziv”
		Gali Bar-Ziv President and CEO

LINGO MEDIA CORPORATION

Condensed Consolidated Interim Financial Statements

For the six-month period ended June 30, 2021

1

LINGO MEDIA CORPORATION

Condensed Consolidated Interim Financial Statements

As at June 30, 2021

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

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.

2

LINGO MEDIA CORPORATION

Condensed Consolidated Interim Financial Statements

As at June 30, 2021

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	8-18

3

LINGO MEDIA CORPORATION

Condensed Consolidated Interim Balance Sheets

As of June 30, 2021 and December 31, 2020

(Unaudited, expressed in Canadian Dollars, unless otherwise stated)

	Notes		June 30, 2021			December 31, 2020
ASSETS
Current Assets
Cash and cash equivalents				1,292,042		$	1,212,778
Accounts and grants receivable		5,13,15		1,188,781			973,852
Prepaid and other receivables				107,184			168,932
				2,588,007			2,355,562
Non-Current Assets
Property and equipment		6		19,156			23,685
Right-of-use asset		7		-			16,788
TOTAL ASSETS			$	2,607,163		$	2,396,035
EQUITY AND LIABILITIES
Current Liabilities
Accounts payable				101,839		$	82,125
Accrued liabilities				111,112			138,715
Contract liability		8		262,072			218,566
Lease obligation		7		-			19,600
				475,023			459,006
Non-current Liabilities
Loans payable		9		80,000			70,000
				80,000			70,000
TOTAL LIABILITIES			$	555,023			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				(457,317	)		(352,764	)
Deficit				(23,479,221	)		(23,767,105	)
TOTAL EQUITY				2,052,140			1,867,029
TOTAL EQUITY AND LIABILITIES			$	2,607,163		$	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 August 26, 2021.

/s/ Gali Bar-Ziv	/s/ Laurent Mareschal
Director	Director

4

LINGO MEDIA CORPORATION

Condensed Consolidated Interim Statements of Comprehensive Income

For the three and six-month ended June 30, 2021 and 2020

(Unaudited, expressed in Canadian Dollars, unless otherwise stated)

	Notes		For the three months ended June 30						For the six months ended June 30
			2021			2020			2021			2020
Revenue		15,17	$	1,030,518		$	977,389		$	1,179,598		$	1,074,513
Expenses
Selling, general and administrative expenses		13,19		249,371			109,596			517,694			(246,611	)
Bad debt				-			-			-			32,386
Direct costs				101,083			44,449			173,365			119,341
Development costs				53,504			48,230			105,504			98,228
Share-based payment		11		-			8,985			1,780			13,846
Depreciation – right-of-use asset		7		-			22,470			16,788			44,939
Depreciation – property and equipment		6		1,019			3,454			3,524			6,909
Total Expenses				404,977			237,184			818,655			69,038
Profit From Operations				625,541			740,205			360,943			1,005,475
Net Finance Charges
Interest and bank charges				3,471			13,033			5,741			(7,921	)
Foreign exchange (gain) / loss				(179,607	)		9,223			(29,674	)		58,392
Profit Before Tax				801,677			717,949			384,876			955,004
Income tax expense		12		94,116			93,620			96,992			97,056
Net Profit / (Loss) for the Period				707,561			624,329			287,884			857,948
Other Comprehensive Income
Exchange differences on translating foreign operations gain / (loss)				(255,973	)		(66,527	)		(104,553	)		98,934
Total Comprehensive Income / (Loss) Net of Tax			$	451,588		$	557,802		$	183,331		$	956,882
Earnings per Share
Basic			$	0.02		$	0.02		$	0.01		$	0.02
Diluted			$	0.02		$	0.02		$	0.01		$	0.02
Weighted Average Number of Common Shares Outstanding
Basic				35,529,132			35,529,132			35,529,132			35,529,132
Diluted				39,769,192			41,465,152			37,082,410			41,465,152

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

5

LINGO MEDIA CORPORATION

Condensed Consolidated Interim Statements of Changes in Equity

For the three and six-month ended June 30, 2021 and 2020

(Unaudited, expressed in Canadian Dollars, unless otherwise stated)

	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
Profit for the period		-		-		-		-			857,948			857,948
Other comprehensive gain		-		-		-		98,934			-			98,934
Share-based payments charged to operations		-		-		13,846		-			-			13,846
Balance as at June 30, 2020		35,529,192	$	21,914,722	$	4,062,878	$	(221,060	)	$	(24,019,536	)	$	1,737,004
Profit for the period		-		-		-		-			252,431			252,431
Other comprehensive loss		-		-		-		(131,704	)		-			(131,704	)
Share-based payments charged to operations		-		-		9,298		-			-			9,298
Balance as at December 31, 2020		35,529,192	$	21,914,722	$	4,072,176	$	(352,764	)	$	(23,767,105	)	$	1,867,029
Profit for the period		-		-		-		-			287,884			287,884
Other comprehensive loss		-		-		-		(104,553	)		-			(104,553	)
Share-based payments charged to operations		-		-		1,780		-			-			1,780
Balance as at June 30, 2021		35,529,192	$	21,914,722	$	4,073,956	$	(457,317	)	$	(23,479,221	)	$	2,052,140

No preference shares were issued at June 30, 2021.

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

6

LINGO MEDIA CORPORATION

Condensed Consolidated Interim Statements of Cash Flows

For the three and six-month ended June 30, 2021 and 2020

(Unaudited, expressed in Canadian Dollars, unless otherwise stated)

	For the three months ended June 30						For the six months ended June 30
	2021			2020			2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Income for the period	$	707,561		$	624,329		$	287,884		$	857,948
Adjustments to Net Profit for Non-Cash Items:
Share-based payment		-			8,985			1,780			13,846
Unrealized foreign exchange gain		(255,974	)		(120,882	)		(101,300	)		44,533
Loan Forgiveness		(10,000	)		-			(10,000	)		-
Bad debt expense		-			32,386			-			32,386
Depreciation- right-of-use		-			22,470			16,788			44,939
Depreciation – property and equipment		1,019			3,454			3,524			6,909
Operating Income before Working Capital Changes		442,606			570,742			198,676			1,000,561
Working Capital Adjustments:
(Increase) in accounts and grants receivable		(802,825	)		(10,108	)		(214,929	)		(144,733	)
(Increase) / decrease in prepaid and other receivables		(2,594	)		(17,352	)		61,748			(10,192	)
Increase / (decrease) in accounts payable		14,174			56,103			19,714			(82,966	)
Increase / (decrease) in accrued liabilities		(22,170	)		(178,130	)		(27,603	)		(48,462	)
(Decrease) / increase in contract liability		(28,388	)		(35,222	)		43,506			(54,459	)
(Decrease) in lease obligation		-						(19,600	)
Cash Generated from (Used in) Operations		(399,197	)		386,033			61,512			659,749
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(1,226	)		-			(2,248	)		-
Net Cash Flows Used in Investing Activities		(1,226	)		-			(2,248	)		-
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) in lease obligation		-			(7,410	)		-			(36,810	)
Interest of lease obligation		-			10,811			-			21,990
Proceeds from loans		20,000			40,000			20,000			40,000
(Repayments) of loans payable		-			-			-			-
Cash Flows Generated from Financing Activities		20,000			43,401			20,000			25,180
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS		(380,423	)		429,434			79,264			684,929
Cash and Cash Equivalents, Beginning of the Period		1,672,465			697,984			1,212,778			442,489
Cash and Cash Equivalents, End of the Period	$	1,292,042		$	1,127,418		$	1,292,042		$	1,127,418

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

7

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

1. CORPORATE INFORMATION

Lingo Media Corporation (“Lingo Media” or the “Company”) is a publicly listed company incorporated in Canada with limited liability under the legislation of the Province of Ontario and its shares are listed on the TSX Venture Exchange under the symbol “LM” and inter-listed on the OTC Markets under the symbol “LMDCF” and Frankfurt Stock Exchange under the symbol “LIMA”. The condensed consolidated interim financial statements of the Company as at and for the period ended June 30, 2021 comprise the Company and its wholly-owned subsidiaries: Lingo Learning Inc., ELL Technologies Ltd. (d/b/a Everybody Loves Languages), Lingo Group Limited, ELL Technologies Limited, Vizualize Technologies Corporation, Speak2Me Inc., and Parlo Corporation (the “Group”).

Lingo Media is an EdTech company that is ‘building a multilingual world’. The Group provides online and print-based solutions through its two distinct business units: ELL Technologies Ltd. (“ELL Technologies”) and Lingo Learning Inc. (“Lingo Learning”). ELL Technologies provides online training and assessment for language learning. Lingo Learning is a print-based publisher of English language learning school programs in China.

The head office, principal address and registered office of the Company is located at 151 Bloor Street West, Suite 609, Toronto, Ontario, Canada, M5S 1S4.

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 June 30, 2021 were approved and authorized by the Board of Directors on August 26, 2021.

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 June 30, 2021. 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.

8

 

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

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 2021yr end f/s

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

4. SUMMARY OF SIGINFICANT ACCOUTING POLICIES

The accounting policies applied by the Company in these Condensed Consolidated Interim Financial Statements are the same as those applied by the Company in its Consolidated Financial Statements for the year ended December 31, 2020.

5. ACCOUNTS AND GRANTS RECEIVABLE

Accounts and grants receivable consist of:

	June 30, 2021		December 31, 2020
Trade receivable	$	1,078,781	$	973,852
Grants receivable		110,000		-
	$	1,188,781	$	973,852

9

 

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

5. ACCOUNTS AND GRANTS RECEIVABLE (Cont’d)

As at June 30, 2021, the Company had accounts receivable of $270,653 (2020 - $169,002) greater than 30 days overdue and not impaired.

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		614			-		614
Cost, June 30, 2020	$	85,442		$	33,180	$	118,862
Additions		2,319			-		2,319
Effect of foreign exchange		(809	)		-		(809	)
Cost, December 31, 2020	$	86,952		$	33,180	$	120,132
Additions		2,248			-		2,248
Disposal		(33,384	)		-		(33,384	)
Effect of foreign exchange		(172	)		-		(172	)
Cost, June 30, 2021	$	55,644		$	33,180	$	88,824
Accumulated depreciation, January 1, 2020	$	59,567		$	23,226	$	82,793
Charge for the period		2,643			4,266		6,909
Effect of foreign exchange		588			-		588
Accumulated depreciation, June 30, 2020	$	62,798		$	27,492	$	90,290
Charge for the period		2,671			4,266		6,937
Effect of foreign exchange		(780	)		-		(780	)
Accumulated depreciation, December 31, 2020	$	64,689		$	31,758	$	96,447
Charge for the period		2,102			1,422		3,524
Disposal		(30,134	)		-		(30,134	)
Effect of foreign exchange		(169	)		-		(169	)
Accumulated depreciation, June 30, 2021	$	36,488		$	33,180	$	69,668
Net book value, December 31, 2020	$	22,263		$	1,422	$	23,685
Net book value, June 30, 2021	$	19,156		$	-	$	19,156

7. RIGHT-OF-USE ASSET

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		-
	$	-

10

 

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

7. RIGHT-OF-USE ASSET (Cont’d)

The Company subleased Suite 609 at 151 Bloor Street West, Toronto Ontario. It also 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 $7,119

The Company’s lease obligation and movements therein during the period ended June 30, 2021:

		Lease Obligation
Lease obligation as of January 1, 2020	$	574,762
Accretion on lease liability		21,990
Lease payment		(58,800	)
Lease obligation at June 30, 2020	$	537,952
Accretion on lease liability		20,492
Lease payment		(58,798	)
Adjustment from lease reassessment		(480,046	)
Lease obligation at December 31, 2020	$	19,600
Lease payment		(19,600	)
Lease obligation at June 30, 2021	$	-

The Company’s right-of-use assets and movements therein during the period ended June 30, 2021:

		Office Lease
Right-of-use assets at January 1, 2020	$	514,181
Depreciation on right-of-use assets		(44,939	)
Right-of-use assets at June 30, 2020		469,242
Adjustment from lease reassessment		(480,047	)
Depreciation on right-of-use assets		27,593
Right-of-use assets at December 31, 2020	$	16,788
Depreciation on right-of-use assets		(16,788	)
Right-of-use assets at June 30, 2021	$	-

8. CONTRACT LIABILITIES

The following table presents changes in the contract liabilities balance:

Balance, January 1, 2020	$	192,958
Amounts invoices and revenue deferred as at June 30, 2020		63,367
Recognition of deferred revenue included in the period		(117,826	)
Balance, June 30, 2020		138,499
Amounts invoices and revenue deferred as at December 31, 2020		203,860
Recognition of deferred revenue included in the period		(123,793	)
Balance, December 31, 2020	$	218,566
Amounts invoices and revenue deferred as at June 30, 2021		224,195
Recognition of deferred revenue included in period		(180,689	)
Balance, June 30, 2021	$	262,072

11

 

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

9. LOAN PAYABLE

In 2020, the Company received loans of $100,000 through Canadian Emergency Business Account Program (“CEBA Loan”), which provides financial relief for Canadian small business during the COVID-19 pandemic. The CEBA loan has an initial term date on December 31, 2021 (the “Initial Term Date”) and may be extended to December 31, 2025. The CEBA Loan is non-revolving, with an interest rate being 0% per annum prior to the initial Term Date. Repayment of principal is not required before December 31, 2022. The loan payments can be made at any time without fees or penalties. Repaying the balance of the CEBA loan on or before December 31, 2022 will result in a loan forgiveness of $30,000. During the period, the Company received $20,000 additional CEBA loan and loan forgiveness $10,000 has been recorded as a reduction of general and administrative expense.

10. SHARE CAPITAL

Authorized

Unlimited number of preference shares with no par value

Unlimited number of common shares with no par value

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, director, 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.

12

 

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

11. SHARE-BASED PAYMENTS (Cont’d)

The following summarizes the options outstanding:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contract Life (Yrs)
Outstanding as at January 1, 2020		6,642,000		$	0.13		1.52
Granted		450,000			0.05		-
Forfeited		(122,000	)		0.18		-
Outstanding as at June 30, 2020		6,970,000		$	0.12		1.13
Granted		-			-
Expired		(2,730,000	)		0.20		-
Forfeited		-			-		-
Outstanding as at December 31, 2020		4,240,000		$	0.07		1.08
Outstanding as at June 30, 2021		4,240,000		$	0.07		0.58

Options exercisable as at June 30, 2020	6,662,505	$	0.13
Options exercisable as at December 31, 2020	4,127,500	$	0.07
Options exercisable as at June 30, 2021	4,240,000	$	0.07

The weighted average remaining contractual life for the stock options outstanding as at June 30, 2021 was 0.58 years (2020 - 1.133 years, 2019 - 2.03 years). The range of exercise prices for the stock options outstanding as at June 30, 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, director, and consultants in February 2020 was estimated at $0.0355 (2019 - $0.0453) using the Black-Scholes option-pricing model.

The pricing model assumes the weighted average risk free interest rates of 1.37% in February 2020 (2019 - 2.19%) weighted average expected dividend yields of nil (2019 - nil), the weighted average expected common stock price volatility (based on historical trading) of 123% (2019 - 105%), a forfeiture rate of 0% (2019 - 0%), a weighted average stock price of $0.05 (2019 - $0.07), a weighted average exercise price of $0.05 (2019 - $0.07), and a weighted average expected life of 3 years (2019 - 3 years), which were estimated based on past experience with options and option contract specifics.

12. TAX EXPENSE

Income tax expense is accrued upon recognition of revenue and is withheld at source on remittances from China.

13. GOVERNMENT GRANTS AND SUBSIDY

Government Grants

Included as a reduction of selling, general and administrative expenses are government grants of $113,721 (2020 - $223,326), relating to the Company's publishing and software projects. At the end of the period, $110,000 (2020 - $ Nil) is included in accounts and grants receivable.

13

 

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

13. GOVERNMENT GRANTS AND SUBSIDY (Contd’)

One government grant for the print-based ELL segment is repayable in the event that the segment’s annual net income for each of the previous two years exceeds 15% of revenue. During the year, the conditions for the repayment of grants did not arise and no liability was recorded.

Canada Emergency Wage Subsidy

The Canada Emergency Wage Subsidiy (“CEWS”) was announced on March 27, 2020. Effective April 11, 2020, the CEWS came into force providng a wage subsidy to eligible Canadian employers to enable them to continue to pay their Canadian employees through their own payroll. Due to the negative impact of COVID-19, the Company applied CEWS and recorded $6,145 as receivable during the period to reduce General and Administrative Expense.

Technation Canada – Career Ready Program

Career Ready Program is part of the Government of Canada’s Student Work Placement Program. It supports businesses by financing their decision to hire a student for a work-term placement. This in turn creates a rewarding opportunity for the student to apply their learning in real-world setting and puts them on a path to a bright career. During the period, the Company receive $7,500 from the program. It has been recorded as a reduction of General and Administrative Expense.

14. 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:

a. 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.

14

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

14. FINANCIAL INSTRUMENTS (Cont’d)

a. Foreign currency risk (Cont’d)

A 10% strengthening of the US Dollar against the Canadian Dollar would have increased the net equity approximately by $117,624 (2020 ‑ $76,990) due to reduction in the value of net liability balance. A 10% of weakening of the US Dollar against the Canadian Dollar at June 30, 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 June 30, 2021 are as follows:

	US Denominated
	USD
Cash		894,125
Accounts receivable		851,842
Accounts payable		29,091

b. 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 June 30, 2021, the Company had cash of $1,292,042, accounts and grants receivable of $1,188,781 and prepaid and other receivables of $107,184 to settle current liabilities of $475,021.

c. 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 June 30, 2021 the Company has outstanding receivables of $1,188,781 (2020 - $983,235). 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.

15. MAJOR CUSTOMER

The Company had sales to a major customer in the period ended in June 30, 2021 and June 30, 2020, a government agency of the People’s Republic of China. The total percentage of sales to this customer during the period was 77% (2020 – 83%) and the total percentage of accounts receivable at June 30, 2021 was 98% (2020 – 95%).

16. CAPITAL MANAGEMENT

The Company’s primary objectives when managing capital are to (a) safeguard the Company’s ability to develop, market, distribute and sell English language learning products, and (b) provide a sound capital structure for raising capital at a reasonable cost for the funding of ongoing development of its products and new growth initiatives. The Board of Directors does not establish quantitative capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business.

15

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

16. CAPITAL MANAGEMENT (Cont’d)

The Company includes equity, comprised of issued share capital, warrants, share-based payments reserve and deficit, in the definition of capital. The Company is dependent on cash flow from co-publishing royalties and software licensing agreements and external financing to fund its activities. In order to carry out planned development of its products and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There has been no change to the Company’s capital management from the approach used in 2021 or 2020.

17. SEGMENTED INFORMATION

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 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)

June 30, 2021	Online English Language Learning		Print-Based English Language Learning		Head Office			Total
Segmented assets	$	238,209	$	2,318,681	$	50,273		$	2,607,163
Segmented liabilities		360,107		116,186		78,730			555,023
Segmented revenue - online		274,823		-		-			274,823
Segmented revenue - royalties		-		904,775		-			904,775
Segmented direct costs		55,922		117,443		-			173,365
Segmented selling, general & administrative		84,044		178,235		255,415			517,694
Segmented profit / (loss)		28,867		492,453		(255,589	)		265,731

June 30, 2020	Online English Language Learning			Print-Based English Language Learning		Head Office			Total
Segmented assets	$	242,498		$	2,442,338	$	55,186		$	2,740,022
Segmented liabilities		194,497			674,104		134,417			1,003,018
Segmented revenue - online		171,603			-		-			171,603
Segmented revenue - royalties		5,998			896,912		-			902,910
Segmented direct costs		59,322			60,019		-			119,341
Segmented selling, general & administrative		(576,562	)		32,948		297,003			(246,611	)
Segmented profit / (loss)		562,808			656,749		(297,292	)		922,265

16

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

17. SEGMENTED INFORMATION (Cont'd)

June 30, 2019	Online English Language Learning			Print-Based English Language Learning		Head Office			Total
Segmented assets	$	117,687		$	1,576,836	$	1,755		$	1,736,275
Segmented liabilities		218,457			475,622		337,603			1,031,682
Segmented revenue - online		145,380			-		-			145,380
Segmented revenue -royalties		3,802			857,988		-			861,790
Segmented direct costs		30,215			44,206		-			74,422
Segmented selling, general & administrative		78,762			90,778		261,377			430,917
Segmented profit / (loss)		(80,930	)		547,423		(261,734	)		204,759

Other Financial Items	2021			2020			2019
Online English Language Learning segmented income (loss)	$	28,867		$	562,808		$	(80,930	)
Print-Based English Language Learning segmented income (loss)		492,453			656,749			547,423
Head office		(255,589	)		(297,292	)		(261,734	)
Foreign exchange gain (loss)		29,674			(58,392	)		(7,324	)
Interest income (expense)		(5,741	)		7,921			(24,547	)
Share-based payment		(1,780	)		(13,846	)		(56,759	)
Other comprehensive income (loss)		(104,553	)		98,934			(26,886	)
Total Comprehensive Income (Loss)	$	183,331		$	956,882		$	89,243

Revenue by Geographic Region

	2021		2020		2019
Latin America	$	253,853	$	194,053	$	87,370
China		911,694		861,747		894,643
Other		14,051		18,713		25,156
	$	1,179,598	$	1,074,513	$	1,007,169

Identifiable Non-Current Assets by Geographic Region

	2021		2020		2019
Canada	$	18,748	$	497,065	$	394,501
China		408		510		604
	$	19,156	$	497,575	$	395,105

17

LINGO MEDIA CORPORATION

Notes to Condensed Consolidated Interim Financial Statements

For the period ended June 30, 2021

(Unaudited - See Notice to Reader)

18. SUPPLEMENTAL CASH FLOW INFORMATION

	2021		2020		2019
Income taxes and other taxes paid	$	104,553	$	97,056	$	97,442
Interest paid		6,582		27,564		24,547
Interest received		841		35,485		-

19. 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) For the six-month period ended June 30, 2021, the Company charged $3,400 (2020 - $7,500) to the corporations with director or officer in common for rent, administration, office charges and telecommunications.

(b) During the period ended June 30, 2021, the company paid $2,400 director fees to independent directors.

(c) Key management compensation for the six-month period ended June 30, 2021 was $159,000 (2020 – $159,000) and is reflected as consulting fees paid to corporations owned by a director and officers of the Company, of which $Nil (2020 - $ Nil) is unpaid and included accrued liabilities.

20. COVID-19

Since December 31, 20219, 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. In addition, the company is eligible and has applied for certain government subsidies, additional grants and interest-free loans, which are already reflected in these financial statements.

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 meets the challenges schools and universities are facing by providing online language learning solutions. In addition, the Company has designed a number of programs to ensure its clients can easily deploy its suite of products that are well suited for a quarantined environment.

EX-1

Exhibit 1

Trading Symbols (TSX-V: LM; OTC: LMDCF; FSE: LIMA)   151 Bloor St West Suite 609 Toronto, Ontario Canada M5S 1S4 Tel: 416.927.7000 Fax: 416.927.1222 www.lingomedia.com

Lingo Media Corporation

Form 51 – 102 F1

Management Discussion & Analysis

Second Quarter Ended June 30, 2021

August 26, 2021

MANAGEMENT DISCUSSION & ANALYSIS

FOR THE PERIOD ENDED JUNE 30, 2021

Notice to Reader

The following Management Discussion & Analysis ("MD&A") of Lingo Media Corporation’s (the "Company" or "Lingo Media") financial condition and results of operations, prepared as of August 26, 2021, should be read in conjunction with the Company's Condensed Consolidated Interim Financial Statements and accompanying Notes for the period ended June 30, 2021 and 2020, which have been prepared in accordance with International Financial Reporting Standards are incorporated by reference herein and form an integral part of this MD&A.  All dollar amounts are in Canadian Dollars unless stated otherwise. These documents can be found on the SEDAR website www.sedar.com.

Our MD&A is intended to enable readers to gain an understanding of Lingo Media’s current results and financial position. To do so, we provide information and analysis comparing the results of operations and financial position for the current period to those of the preceding comparable three-month period. We also provide analysis and commentary that we believe is required to assess the Company's future prospects. Accordingly, certain sections of this report contain forward-looking statements that are based on current plans and expectations. These forward-looking statements are affected by risks and uncertainties that are discussed in this document and that could have a material impact on future prospects. Readers are cautioned that actual results could vary.

Cautions Regarding Forward-Looking Statements

This MD&A contains certain forward-looking statements, which reflect management’s expectations regarding the Company’s results of operations, performance, growth, and business prospects and opportunities.

Statements about the Company’s future plans and intentions, results, levels of activity, performance, goals or achievements or other future events constitute forward-looking statements. Wherever possible, words such as "may," "will," "should," "could," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties, and assumptions. Many factors could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this MD&A are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this MD&A, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including general economic and market segment conditions, competitor activity, product capability and acceptance, international risk and currency exchange rates and technology changes. More detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the "Quantitative and Qualitative Disclosures of Market Risk" section of this MD&A.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

2

Summary Description of Lingo Media

Lingo Media (“Lingo Media,” the “Company,” “we” or “us”) is a global EdTech company that is ‘Building a multilingual world’, developing and marketing products for learners of new languages through various life stages, from classroom to boardroom. By integrating education and technology, the company empowers language educators to easily transition from traditional teaching methods to digital learning. The Company provides both online and print-based solutions through two distinct business units: ELL Technologies Ltd., d/b/a Everybody Loves Languages and Lingo Learning. Everybody Loves Languages provides online training and assessment for language learning, while Lingo Learning is a print-based publisher of English language learning programs in China. Through its two distinct business units, Lingo Media develops, markets, and supports a suite of language learning solutions consisting of web-based software licensing subscriptions, online and professional services, audio practice tools and multi-platform applications. The Company continues to operate its textbook publishing business from which it collects recurring royalty revenues.

Lingo Media’s two distinct business units include Everybody Loves Languages (“ELL Technologies”) and Lingo Learning. ELL Technologies is an online educational technology (“EdTech”) language learning training and assessment company that creates innovative software-as-a-service el-earning solutions. ELL Technologies market consists of educational institutions (such as schools, high schools, vocation schools, universities, etc.) and corporations. ELL Technologies sells and markets its online language learning solutions in Latin America, Asia, Europe, and the U.S. Lingo Learning is a print-based publisher of English language learning textbook programs in China. The Company has formed successful relationships with key government and industry organizations, establishing a strong presence in China’s education market.

The Company continues to invest in its underlying technology, including features and scalability, as well as language content and leverages its industry expertise to expand into more scalable education technology. Recent product initiatives have allowed us to expand the breadth of our language learning product offerings. The Company’s web-based EdTech learning segment continues to present a significant opportunity for long-term growth.

Lingo Media’s strategy is to focus on sales channels and relationships while continuously developing its content and technology offerings.

Q2 2021 Operational Highlights

● Online English Language Learning:

✔ Launched Ola App, allowing students to access hundreds of additional hours of speaking and pronunciation practice with their smartphones with Speak2Me and Studio features.

✔	Redesigned and refreshed product design for English, Portuguese, Spanish, French, Mandarin, and Business courses.
✔	Added Assessment Test security features including:

o Browser Locking full screen lock, one login per device, and student declaration and selfie picture to verify identity.

✔ ELL Technologies rebranded as Everybody Love Languages, including redesign of logo, website and platform.

✔ Conducted three webinars as part of ELL teacher development series

●  Print-Based English Language Learning:

✔ expanded existing market for PEP Primary English program into one additional province in China

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

3

Online English Language Learning

ELL Technologies has developed and is marketing one of the largest libraries of online language learning resources in the world. The library has more than 3,000 hours of interactive learning through a number of product offerings that include Winnie’s World, English Academy, Campus, English for Success, Master and Business in addition to courses to learn French, Mandarin, Spanish, and Portuguese languages. ELL Technologies is primarily marketed in Latin America, Asia, Europe, and now the U.S. through a network of distributors and earns its revenues from online and offline licensing fees from its suite of web-based language learning products and applications.

ELL Technologies’ high-tech, easy to implement eLearning Software-as-a-Service solutions have positioned the Company to provide learners of all ages and levels of English proficiency with a platform to further their language learning development.

All products have been designed by our proprietary tools enabling ELL Technologies to market and sell to academic institutions and governments. Educators who license the platform are able to easily assign, and arrange lessons and courses as they see fit, including personalizing the learning to a particular individual’s needs and progress.

Formative assessments and data gathering functionality allows us to adapt and improve content. Based on that data, we are able to program iterations to address specific problem areas and to make learning more accessible, efficient and measurable. Built for learners, by learners, we empower educators and allow them to easily transition from pure classroom paper-based teaching to the online world.

Summary of Q2 2021 product development achievements:

● Launched Ola App - a iOS and Android native app that provides learners with hundreds of hours of speaking and pronunciation exercises. Added Assessment Test security features including:

- browser locking full screen lock, one login per device, and student declaration and selfie picture to verify identity.

- this allows ELL Technologies to sell the Assessment Test as a stand-alone solution.

● Advanced teacher development course with expected completion in Q3.

Print-Based English Language Learning

The Company continues to maintain its legacy textbook publishing business through Lingo Learning, a print-based publisher of English language learning programs in China since 2001. Lingo Learning has an established presence in China’s education market of over 300 million students. To date, it has co-published more than 763 million units from its library of program titles.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

4

Overall Performance

During the quarter ended June 30, 2021, Lingo Media recorded revenues of $1,030,518 as compared to $977,389 in 2020. Net income was $707,561 as compared to $624,329 in 2020 resulting in a $0.02 earnings per share as compared to earnings per share of $0.02 in 2020. Total comprehensive income was $451,588 as compared to $557,802 in 2020. The Company recorded selling general and administrative costs of $249,371 compared to $109,596 in 2020. Share-based payments of $nil was recorded in 2021 as compared to $8,985 in 2020. In addition, cash used in operations was $399,197 as compared $386,032 generated from operation in 2020. The increased selling general and administrative costs in Q2 2021 was primarily due to the Company receiving government grants, Canada Book Fund (“CBF”) in the amount of $168,326 and government subsidy Canada Emergency Wage Subsidy (“CEWS”) in the amount of $78,287 in 2020 as compared to $55,300 of CBF, $6,145 of CEWS, and $7,500 from Government of Canada’s Student Work Placement Program in 2021. In absence of government grants and subsidy, Lingo Media’s income from operations of $740,205 for Q2 2020 would have been an adjusted income from operation of $493,594. The Company’s income from operations of $625,541 for Q2 2021 would have been an adjusted income from operation of $556,596 for Q2 2021, which represents an 13% increase.

Online English Language Learning

ELL Technologies earned revenue from its portfolio of products of $152,572 for the three months period, compared to $106,550 in 2020.

Print-Based English Language Learning

Lingo Media earned royalty revenue of $877,946 in 2021 compared to $870,839 in 2020 from People’s Education Press (“PEP”) and People’s Education & Audio Visual Press (“PEP AV”). This revenue consists of royalties generated through licensing sales from provincial distributors as a result of Lingo Media and PEP and PEP AV’s local marketing and training initiatives. Although royalty revenue in the second quarter of 2020 is consistent with that of prior year in RMB, the increase is due to fluctuation in foreign exchange rates.

Market Trends and Business Uncertainties

Lingo Media believes that the global market trends in English language learning are strong and will continue to grow. Developing countries around the world, specifically in Latin America and Asia are expanding their mandates for the teaching of English amongst students, young professionals and adults.

HolonIQ in its 2020 Global Education Outlook study estimates that Education technology will grow at 11% annual rate to $341 billion by 2025. Population growth is going to be a key challenge for education with projected 2.7 billion students by 2035. This would require countries to scale education. The British Council suggests that there are 1.6 Billion people learning English globally. English language learning products and services are currently a US$56.3 Billion global market notes Ambient Insight.

GlobalEnglish forecasts the global eLearning market to grow to $37.6 Billion by end of 2021, while experiencing exponential growth to reach $325 Billion worldwide by 2025.

Markets and Markets forecasts the global EdTech market to grow from US$43.27 Billion in 2015 to US$93.76 Billion by end of 2021, or at a CAGR or 16.72%.

Latin American Region

The Inter-American Dialogue recently noted that while English language training programs exist in various forms throughout Latin American region, there are three key factors that these programs must address to be successful: ensuring continuity, developing a strong monitoring and evaluation framework that informs adaptation, and addressing the lack of sufficient quality teachers. Students attending English language training (“ELT”) classes in Latin America accounted for approximately 14 per cent of worldwide revenues, or US$321 million in 2020. Growth has been very rapid in the Latin American region and represents a particularly strong opportunity moving forward relative to other geographic regions.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

5

Asia-Pacific Region

Technavio forecasts the English language training (ELT) market in China to be worth $75 Billion by 2022, growing at a CAGR of 22%. The growth of the ELT market in China is driven by more people desiring to learn English, the adaptation of smartphones, increasing levels of disposable income, and the inherent advantages of online education. Technavio also notes that 49% of the growth in the global digital English language learning market will come from the Asia-Pacific region.

Lingo Media is positioned to take advantage of the market opportunity for English language training in Latin America and Asia, with its scalable digital language learning technology and solutions. Although the market outlook remains positive, there can be no assurance that this trend will continue or that the Company will benefit from this trend.

General Financial Condition

As at June 30, 2021, Lingo Media had working capital of $2,112,984 compared to $1,779,076 as at June 30, 2020. Total comprehensive income for the three-month period ended June 30, 2021 was $451,588 compared to comprehensive income of $557,802 for the period ended June 30, 2020.

Financial Highlights – for the Second Quarter Ended June 30, 2021

	2021			2020		2019
Revenue
Print-Based English Language Learning	$	877,946		$	870,839	$	826,526
Online English Language Learning		152,572			106,550		68,679
		1,030,518			977,389		895,205
Net Profit for the Period		707,561			624,329		430,651
Total Comprehensive Income		451,588			557,802		418,142
Earnings per Share	$	0.02		$	0.02	$	0.01
Total Assets		2,607,163			2,740,022		1,736,278
Working Capital		2,112,984			1,779,076		648,345
Cash Provided (Used) – Operations		(399,197	)		386,052		390,970

The Company had cash on hand as at June 30, 2021 of $ 1,292,042 (2020 - $1,127,418) and continues to rely on its revenues from its recurring royalty stream, its online English language learning services, and future debt and/or equity financings, if and as required to fund its operations.

Results of Operations

Revenues

During the quarter, Lingo Media earned $152,572 in online licensing sales revenue as compared to $106,550 in 2020. Revenues from print-based English language learning for the quarter were $877,946 compared to $870,839 in 2020. Direct costs associated with publishing revenue are relatively modest and have been consistent throughout the years. The Company continues to maintain its relationship with PEP and PEP AV and is investing in the development of its existing and new programs and marketing activities to maintain and increase its royalty revenues.

During the period, Lingo Media recorded revenues of $1,030,518 as compared to $977,389 in 2020. Net profit was $707,561 compared to $624,329 in 2020 resulting in a $0.02 earnings per share as compared to $0.02 earnings per share in 2020.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

6

Selling, General and Administrative

Selling, general and administrative expenses were $249,371 compared to $109,596 in 2020. The increased selling, general and administrative costs in Q2 2021 was primarily due to the Company receiving a government grant, Canada Book Funds (“CBF”), in the amount of $168,326 and government subsidy, Canada Emergency Wage Subsidy (“CEWS”) in the amount of $78,287 in 2020 as compared to $55,300 of CBF, $6,145 of CEWS, and $7,500 from Government of Canada’s Student Work Placement Program in 2021. In absence of government grant and subsidy, selling, general and administrative expenses for Q2 2020 would have been $356,209 and Q2 2021 would be $318,316, which represents a 12% decrease.

Included as a reduction of selling, general and administrative expenses are government grant of $55,330 (2020 - $168,326), relating to the Company's publishing and software projects.

The Canada Emergency Wage Subsidy (“CEWS”) was announced on March 27, 2020. Effective April 11, 2020, the CEWS came into force providing a wage subsidy to eligible Canadian employers to enable them to continue to pay their Canadian employees through their own payroll. During the quarter, the Company applied to the CEWS and received a subsidy subsequent to the end of the quarter. The amount of $6,145 CEWS was recorded during the period as a reduction of general and administrative expense.

The Company participated Career Ready Program in January 2021. It is part of the Government of Canada’s Student Work Placement Program. It supports businesses by financing their decision to hire a student for a work-term placement. This in turn creates a rewarding opportunity for the student to apply their learning in real-world setting and puts them on a path to a bright career. During the period, the Company receive $7,500 from the program. It has been recorded as a reduction of General and Administrative Expense.

Selling, general and administrative expenses for the three segments are segregated below.

(i) Print-Based English Language Learning

Selling, general and administrative expenses for print-based publishing was $85,134 compared to the recovery of $58,154 in 2020. The increase of the expenses is primarily due to the Company receiving greater amount of CEWS last year and increased sales and marketing efforts in Q2 2021. The following is a breakdown of selling, general and administrative costs directly related to print-based English language learning:

For the Quarter Ended June 30th	2021			2020
Sales, marketing & administration	$	26,256		$	7,729
Consulting fees and salaries		110,589			140,279
General & admin expenses		(1,800	)		(5,363	)
Travel		3,833			-
Premises		5,416			15,929
Professional fees		2,285			2,296
Less: Grants		(55,300	)		(168,326	)
Wage subsidy		(6,145	)		(58,154	)
	$	85,134		$	7,729

(ii) Online English Language Learning

Selling, general and administrative costs related to online English language learning was $33,057 for the period compared to $27,339 in Q2 2020. Selling, general and administrative costs for this operating unit increased in Q2 2021 primarily due to increased remuneration paid to consultants. The company participated in the Career Ready Program, a part of the Government of Canada’s Student Work Placement Program. It supports businesses by financing their decision to hire a student for a work-term placement. This in turn creates a rewarding opportunity for the student to apply their learning in real-world setting and puts them on a path to a bright career. During the period, the Company received $7,500 from the program. It has been recorded as a reduction of general and administrative expenses.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

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The following is a breakdown of selling, general and administrative costs directly related to online-based English language learning:

For the Quarter Ended June 30th	2021			2020
Sales, marketing & administration	$	27,425		$	33,816
Consulting fees and salaries		20,236			8,743
Travel		-			369
Premises		400			12,000
Professional fees		2,496			-
Less: Grants		(17,500	)		(27,589	)
	$	33,057		$	27,339

(ii) Head Office

Selling, general and administrative costs related to head office was $131,180 for the period compared to $140,410 in 2020. Selling, general and administrative costs for this reporting unit decreased in 2021 as compared to 2020, which is primarily due to the reduced expenditure in shareholder services.

For the Period Ended June 30th	2021		2020
Sales, marketing & administration	$	17,682	$	15,503
Consulting fees & salaries		79,500		79,499
Travel		959		-
Shareholder services		16,308		27,374
Professional fees		16,731		18,034
		131,180		140,410
Total Selling and Administrative Expenses	$	249,371	$	109,596

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

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Net Income

Net income for the Company was $762,392 for the period ended June 30, 2021 as compared to $624,329 in 2020. Net income can be attributed to the two operating segments and head office as a reporting segment as shown below:

Online ELL	2021			2020
Revenue	$	152,572		$	106,550
Expenses:
Direct costs		26,040			20,044
General & administrative		33,058			27,340
Amortization		270			256
Development cost		53,504			48,230
Income taxes and other taxes		-			266
		112,872			96,136
Segmented Profit - Online ELL	$	39,700		$	10,414
Print-Based ELL
Revenue	$	877,946		$	870,839
Expenses:
Direct costs		75,043			24,405
General & administrative recovery		85,134			(58,154	)
Amortization		676			25,524
Income taxes and other taxes		94,116			93,354
		254,969			85,129
Segmented Profit – Print-Based ELL	$	622,977		$	785,710
Head Office
Expenses:
General & administrative		131,179			140,410
Amortization of property & equipment		73			144
		131,252			140,554
Total Segmented Profit	$	531,425		$	665,570
Other
Foreign exchange gain (loss)		179,607			(9,223	)
Interest and other financial expenses		(3,471	)		(13,033	)
Share based payment		-			(8,985	)
Other comprehensive income		(255,973	)		(66,527	)
		(79,837	)		(97,768	)
Total Comprehensive Income	$	451,588		$	557,802

Foreign Exchange

The Company recorded foreign exchange gain of $179, 607 as compared to a foreign exchange loss of $9,223 in 2020, relating to the Company's currency risk through its activities denominated in foreign currencies as the Company is exposed to foreign exchange risk as a significant portion of its revenue and expenses are denominated in Chinese Renminbi and US Dollars.

Share-Based Payments

The Company amortizes share-based payments with a corresponding increase to the contributed surplus account. During the period, the Company recorded an expense of $nil compared to $8,985 in Q2 2020.

Net Profit for the Period

The Company reported a net profit of $707,561 for the period as compared to $624,329 in Q2 2020. The earnings per share for the period is $0.02 compared to $0.02 in Q2 2020.

Total Comprehensive Income

The total comprehensive income is calculated after the application of exchange differences on translating foreign operations gain/(loss). The Company reported a total comprehensive income of $451,588 for the quarter ended June 30, 2021 as compared to $557,802 in Q2 2020.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

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Summary of Quarterly Results

	Q3-20			Q4 – 20		Q1 –21			Q2 - 21
Revenue	$	68,775		$	958,766	$	149,080			1,030,518
Income / (Loss) Before Taxes and Other Comprehensive Income		(356,241	)		695,059		(416,801	)		801,677
Total Comprehensive Income / (Loss)		(400,723	)		511,450		(268,257	)		451,588
Income / (Loss) per Basic and Diluted Share	$	(0.01	)	$	0.01	$	(0.01	)	$	0.02

	Q3 – 19			Q4 – 19		Q1 – 20		Q2 - 20
Revenue	$	117,545		$	831,508		97,124		977,389
Income / (Loss) Before Taxes and Other Comprehensive Income		(300,438	)		432,701		237,055		717,949
Total Comprehensive Income (Loss)		(320,519	)		345,093		399,080		557,802
Income / (Loss) per Basic and Diluted Share	$	(0.01	)	$	0.01	$	0.01	$	0.02

Liquidity and Capital Resources

As at June 30, 2021, the Company had cash of $1,292,042 compared to $1,127,418 in 2020. Accounts and grants receivable of $1,188,781 were outstanding at the end of the period compared to $983,235 in 2020. With 98% of the receivables from PEP and the balance due from ELL Technologies customers with a 90 - 180 days collection cycle, the Company does not anticipate an effect on its liquidity. Total current assets amounted to $2,588,007 (2020 - $2,242,448) with current liabilities of $475,022 (2020 - $463,372) resulting in working capital of $2,112,984 (2020 - $1,779,076).

Lingo Learning receives government grants based on certain eligibility criteria for publishing industry development in Canada and for international marketing support. These government grants are recorded as a reduction of general and administrative expenses to offset direct expenditure funded by the grant. The Company receives these grants throughout the year. The grant is applied based on Lingo Learning meeting certain eligibility requirements. The Company has relied on obtaining these grants for its operations and has been successful at securing them in the past, but it cannot be assured of obtaining these government grants in the future.

Lingo Media has access to working capital through equity financings or debt financings, if required to finance its growth plans and expansion into new international markets. The Company has been successful in raising sufficient working capital in the past.

Off-Balance Sheet Arrangements

The Company has not entered into any off-balance sheet finance arrangements.

Transactions with Related Parties

The Company’s key management includes Michael Kraft, Chairman, Gali Bar-Ziv, President & CEO, Khurram Qureshi, CFO in addition to Board Directors and the Secretary of the Board.

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.

Key management compensation for the quarter was $79,500 (2020 – $79,500) and is reflected as consulting fees paid to corporations owned by a director and officers of the Company.

During the 3-month period ended June 30, 2021, the company paid $1,200 director fees to independent directors.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

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Additional Disclosure

Property and Equipment

	Computer and Office Equipment			Leasehold Improvements		Total
Cost, January 1, 2020	$	84,828		$	33,180	$	118,008
Effect of foreign exchange		614			-		614
Cost, June 30, 2020	$	85,442		$	33,180	$	118,622
Additions		2,319			-		2,319
Effect of foreign exchange		(809	)		-		(809	)
Cost, December 31, 2020	$	86,952		$	33,180	$	120,132
Additions		2,248			-		2,248
Disposal		(33,384	)		-		(33,384	)
Effect of foreign exchange		(172	)		-		(172	)
Cost, June 30, 2021	$	55,644		$	33,180	$	88,824
Accumulated depreciation, January 1, 2020	$	59,567		$	23,226	$	82,793
Charge for the period		2,643			4,266		6,909
Effect of foreign exchange		588			-		588
Accumulated depreciation, June 30, 2020	$	62,798		$	27,492	$	90,290
Charge for the period		2,671			4,266		6,937
Effect of foreign exchange		(780	)		-		(780	)
Accumulated depreciation, December 31, 2020	$	64,689		$	31,758	$	96,447
Charge for the period		2,102			1,422		3,524
Disposal		(30,134	)		-		(30,134	)
Effect of foreign exchange		(169	)		-		(169	)
Accumulated depreciation, June 30, 2021	$	36,488		$	33,180	$	69,668
Net book value, December 31, 2020	$	22,263		$	1,422	$	23,685
Net book value, June 30, 2021	$	19,156		$	-	$	19,156

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 and the lease expired on February 28, 2021.

Non-cancellable lease rentals are payable as follows:

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

The Company subleased Suite 609 at 151 Bloor Street West, Toronto Ontario. It also has equipment lease 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 $7,119.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

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The Company’s lease obligation and movements during the period ended June 30, 2021:

		Lease Obligation
Lease obligation as of January 1, 2020	$	574,762
Accretion on lease liability		21,990
Lease payment		(58,800	)
Lease obligation at June 30, 2020	$	537,952
Accretion on lease liability		20,492
Lease payment		(58,798	)
Adjustment from lease reassessment		(480,046	)
Lease obligation at December 31, 2020	$	19,600
Lease payment		(19,600	)
Lease obligation at June 30, 2021	$	-

The Company’s right-of-use assets and movements therein during the period ended June 30, 2021:

	Office Lease
Right-of-use assets at January 1, 2020	$	514,181
Depreciation on right-of-use assets		(44,939	)
Right-of-use assets at June 30, 2020		469,242
Adjustment from lease reassessment		(480,047	)
Depreciation on right-of-use assets		27,593
Right-of-use assets at December 31, 2020	$	16,788
Depreciation on right-of-use assets		(16,788	)
Right-of-use assets at June 30, 2021	$	-

COVID-19

Since December 31, 2029, 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. In addition, the company is eligible and has applied for certain government subsidies, additional grants and interest-free loans, which are already reflected in these financial statements.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

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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 meets the challenges schools and universities are facing by providing online language learning solutions. In addition, the Company has designed a number of programs to ensure its clients can easily deploy its suite of products that are well suited for a quarantined environment.

Risk Factors

Business Risk and Uncertainties

We are subject to a number of risks and uncertainties that can significantly affect our business, financial condition and future financial performance, as described below. In particular, there remain significant uncertainties in capital markets impacting the availability of equity financing. While these uncertainties in capital markets do not have a direct impact on our ability to carry out our business, the Company may be impacted should it become more difficult to gain access to capital when and if needed. These risks and uncertainties are not necessarily the only risks the Company faces. Additional risks and uncertainties that are presently unknown to the Company may adversely affect our business.

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.

A 10% strengthening of the US Dollar against the Canadian Dollar would have increased the net equity approximately by $117,624 (2020 ‑ $76,990) due to reduction in the value of net liability balance. A 10% of weakening of the US Dollar against the Canadian Dollar on June 30, 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 June 30, 2021, are as follows:

	June 30, 2021
	USD
Cash		894,125
Accounts receivable		851,842
Accounts payable		29,091

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 June 30, 2021, the Company had cash of $1,292,042, accounts and grants receivable of $1,188,781 and prepaid and other receivables of $107,184 to settle current liabilities of $475,023.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

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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 of June 30, 2021, the Company has outstanding receivables of $1,188,781 (2020 - $983,235). 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.

Retention or Maintenance of Key Personnel

Although Lingo Media’s management has made efforts to align the interests of key employees with the Company by, among other things, granting stock options to its operations personnel with vesting schedules tied to continued employment, there is no assurance that Lingo Media can attract or retain key personnel in a timely manner as the need arises. Failure to have adequate personnel may materially compromise the ability of the Company to operate its business.

Disclosure of Outstanding Share Data

As of August 26, 2021, the followings are outstanding:

Common Shares – 35,529,192

Warrants – Nil

Stock Options – 4,240,000

Approval

The Directors of Lingo Media have approved the disclosure contained in this MD&A.

Additional Information

Additional information relating to the Company can be found on SEDAR at www.sedar.com.

Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) Management Discussion & Analysis

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XML

Document And Entity Information	6 Months Ended
	Jun. 30, 2021
Document Information [Line Items]
Entity Central Index Key	0001177167
Entity Registrant Name	LINGO MEDIA CORP
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Document Type	6-K
Document Period End Date	Jun. 30, 2021
Entity File Number	333-98397
Entity Address, Address Line One	151 Bloor Street West, Suite 703
Entity Address, City or Town	Toronto
Entity Address, State or Province	ON
Entity Address, Country	CA
Entity Address, Postal Zip Code	M5S 1S4

XML

Condensed Consolidated Interim Balance Sheets (Current Period Unaudited) - CAD ($)	Jun. 30, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 1,292,042	$ 1,212,778
Accounts and grants receivable	1,188,781	973,852
Prepaid and other receivables	107,184	168,932
Total current assets	2,588,007	2,355,562
Non-Current Assets
Property and equipment	19,156	23,685
Right-of-use asset	0	16,788
TOTAL ASSETS	2,607,163	2,396,035
Current Liabilities
Accounts payable	101,839	82,125
Accrued liabilities	111,112	138,715
Contract liability	262,072	218,566
Lease obligation	0	19,600
Total current liabilities	475,023	459,006
Non-current Liabilities
Loans payable	80,000	70,000
Total non-current liabilities	80,000	70,000
TOTAL LIABILITIES	555,023	529,006
Equity
Share capital	21,914,722	21,914,722
Share-based payment reserve	4,073,956	4,072,176
Accumulated other comprehensive income	(457,317)	(352,764)
Deficit	(23,479,221)	(23,767,105)
TOTAL EQUITY	2,052,140	1,867,029
TOTAL EQUITY AND LIABILITIES	$ 2,607,163	$ 2,396,035

XML

Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) - CAD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement Line Items [Line Items]
Revenue	$ 1,030,518	$ 977,389	$ 1,179,598	$ 1,074,513
Expenses
Selling, general and administrative expenses	249,371	109,596	517,694	(246,611)
Bad debt	0	0	0	32,386
Direct costs	101,083	44,449	173,365	119,341
Development costs	53,504	48,230	105,504	98,228
Share-based payment	0	8,985	1,780	13,846
Depreciation – right-of-use asset	0	22,470	16,788	44,939
Depreciation – property and equipment	1,019	3,454	3,524	6,909
Total Expenses	404,977	237,184	818,655	69,038
Profit From Operations	625,541	740,205	360,943	1,005,475
Net Finance Charges
Interest and bank charges	3,471	13,033	5,741	(7,921)
Foreign exchange (gain) / loss	(179,607)	9,223	(29,674)	58,392
Profit Before Tax	801,677	717,949	384,876	955,004
Income tax expense	94,116	93,620	96,992	97,056
Net Profit / (Loss) for the Period	707,561	624,329	287,884	857,948
Other Comprehensive Income
Exchange differences on translating foreign operations gain / (loss)	(255,973)	(66,527)	(104,553)	98,934
Total Comprehensive Income / (Loss) Net of Tax	$ 451,588	$ 557,802	$ 183,331	$ 956,882
Earnings per Share
Basic (in CAD per share)	$ 0.02	$ 0.02	$ 0.01	$ 0.02
Diluted (in CAD per share)	$ 0.02	$ 0.02	$ 0.01	$ 0.02
Weighted Average Number of Common Shares Outstanding
Basic (in shares)	35,529,132	35,529,132	35,529,132	35,529,132
Diluted (in shares)	39,769,192	41,465,152	37,082,410	41,465,152

XML

Condensed Consolidated Interim Statements of Changes in Equity (Unaudited) - CAD ($)	Issued capital [member]	Reserve of share-based payments [member]	Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal groups held for sale [member]	Retained earnings [member]	Total
Balance (in shares) at Dec. 31, 2019	35,529,192
Balance at Dec. 31, 2019	$ 21,914,722	$ 4,049,032	$ (319,994)	$ (24,877,484)	$ 766,276
Statement Line Items [Line Items]
Profit for the period	0	0	0	857,948	857,948
Other comprehensive income (loss)	0	0	98,934	0	98,934
Share-based payments charged to operations	$ 0	13,846	0	0	13,846
Balance (in shares) at Jun. 30, 2020	35,529,192
Balance at Jun. 30, 2020	$ 21,914,722	4,062,878	(221,060)	(24,019,536)	1,737,004
Statement Line Items [Line Items]
Profit for the period	0	0	0	252,431	252,431
Other comprehensive income (loss)	0	0	(131,704)	0	(131,704)
Share-based payments charged to operations	$ 0	9,298	0	0	9,298
Balance (in shares) at Dec. 31, 2020	35,529,192
Balance at Dec. 31, 2020	$ 21,914,722	4,072,176	(352,764)	(23,767,105)	1,867,029
Statement Line Items [Line Items]
Profit for the period	0	0	0	287,884	287,884
Other comprehensive income (loss)	0	0	(104,553)	0	(104,553)
Share-based payments charged to operations	$ 0	1,780	0	0	1,780
Balance (in shares) at Jun. 30, 2021	35,529,192
Balance at Jun. 30, 2021	$ 21,914,722	$ 4,073,956	$ (457,317)	$ (23,479,221)	$ 2,052,140

XML

Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - CAD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Income for the period	$ 707,561	$ 624,329	$ 287,884	$ 857,948
Adjustments to Net Profit for Non-Cash Items:
Share-based payment	0	8,985	1,780	13,846
Unrealized foreign exchange gain	(255,974)	(120,882)	(101,300)	44,533
Loan Forgiveness	(10,000)	0	(10,000)	0
Bad debt expense	0	32,386	0	32,386
Depreciation- right-of-use	0	22,470	16,788	44,939
Depreciation – property and equipment	1,019	3,454	3,524	6,909
Operating Income before Working Capital Changes	442,606	570,742	198,676	1,000,561
Working Capital Adjustments:
(Increase) in accounts and grants receivable	(802,825)	(10,108)	(214,929)	(144,733)
(Increase) / decrease in prepaid and other receivables	(2,594)	(17,352)	61,748	(10,192)
Increase / (decrease) in accounts payable	14,174	56,103	19,714	(82,966)
Increase / (decrease) in accrued liabilities	(22,170)	(178,130)	(27,603)	(48,462)
(Decrease) / increase in contract liability	(28,388)	(35,222)	43,506	(54,459)
(Decrease) in lease obligation	0		(19,600)
Cash Generated from (Used in) Operations	(399,197)	386,033	61,512	659,749
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(1,226)	0	(2,248)	0
Net Cash Flows Used in Investing Activities	(1,226)	0	(2,248)	0
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) in lease obligation	0	(7,410)	0	(36,810)
Interest of lease obligation	0	10,811	0	21,990
Proceeds from loans	20,000	40,000	20,000	40,000
(Repayments) of loans payable	0	0	0	0
Cash Flows Generated from Financing Activities	20,000	43,401	20,000	25,180
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS	(380,423)	429,434	79,264	684,929
Cash and Cash Equivalents, Beginning of the Period	1,672,465	697,984	1,212,778	442,489
Cash and Cash Equivalents, End of the Period	$ 1,292,042	$ 1,127,418	$ 1,292,042	$ 1,127,418

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Note 1 - Corporate Information

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of basis of consolidation [text block]

1. CORPORATE INFORMATION

Lingo Media Corporation (“Lingo Media” or the “Company”) is a publicly listed company incorporated in Canada with limited liability under the legislation of the Province of Ontario and its shares are listed on the TSX Venture Exchange under the symbol “LM” and inter-listed on the OTC Markets under the symbol “LMDCF” and Frankfurt Stock Exchange under the symbol “LIMA”. The condensed consolidated interim financial statements of the Company as at and for the period ended June 30, 2021 comprise the Company and its wholly-owned subsidiaries: Lingo Learning Inc., ELL Technologies Ltd. (d/b/a Everybody Loves Languages), Lingo Group Limited, ELL Technologies Limited, Vizualize Technologies Corporation, Speak2Me Inc., and Parlo Corporation (the “Group”).

Lingo Media is an EdTech company that is ‘building a multilingual world’. The Group provides online and print-based solutions through its two distinct business units: ELL Technologies Ltd. (“ELL Technologies”) and Lingo Learning Inc. (“Lingo Learning”). ELL Technologies provides online training and assessment for language learning. Lingo Learning is a print-based publisher of English language learning school programs in China.

The head office, principal address and registered office of the Company is located at 151 Bloor Street West, Suite 609, Toronto, Ontario, Canada, M5S 1S4.

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Note 2 - Basis of Preparation

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of basis of preparation of financial statements [text block]

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 June 30, 2021 were approved and authorized by the Board of Directors on August 26, 2021.

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 June 30, 2021. 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.

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”.

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Note 3 - Significant Accounting Judgements, Estimates and Assumptions

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of accounting judgements and estimates [text block]

3. SIGINFICANT ACCOUTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS 2021yr end f/s

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

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Note 4 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of significant accounting policies [text block]

4. SUMMARY OF SIGINFICANT ACCOUTING POLICIES

The accounting policies applied by the Company in these Condensed Consolidated Interim Financial Statements are the same as those applied by the Company in its Consolidated Financial Statements for the year ended December 31, 2020.

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Note 5 - Accounts and Grants Receivable

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of trade and other receivables [text block]

5. ACCOUNTS AND GRANTS RECEIVABLE

Accounts and grants receivable consist of:

	June 30, 2021		December 31, 2020
Trade receivable	$	1,078,781	$	973,852
Grants receivable		110,000		-
	$	1,188,781	$	973,852

As at June 30, 2021, the Company had accounts receivable of $270,653 (2020 - $169,002) greater than 30 days overdue and not impaired.

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Note 6 - Property and Equipment

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of property, plant and equipment [text block]

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		614			-		614
Cost, June 30, 2020	$	85,442		$	33,180	$	118,862
Additions		2,319			-		2,319
Effect of foreign exchange		(809	)		-		(809	)
Cost, December 31, 2020	$	86,952		$	33,180	$	120,132
Additions		2,248			-		2,248
Disposal		(33,384	)		-		(33,384	)
Effect of foreign exchange		(172	)		-		(172	)
Cost, June 30, 2021	$	55,644		$	33,180	$	88,824
Accumulated depreciation, January 1, 2020	$	59,567		$	23,226	$	82,793
Charge for the period		2,643			4,266		6,909
Effect of foreign exchange		588			-		588
Accumulated depreciation, June 30, 2020	$	62,798		$	27,492	$	90,290
Charge for the period		2,671			4,266		6,937
Effect of foreign exchange		(780	)		-		(780	)
Accumulated depreciation, December 31, 2020	$	64,689		$	31,758	$	96,447
Charge for the period		2,102			1,422		3,524
Disposal		(30,134	)		-		(30,134	)
Effect of foreign exchange		(169	)		-		(169	)
Accumulated depreciation, June 30, 2021	$	36,488		$	33,180	$	69,668
Net book value, December 31, 2020	$	22,263		$	1,422	$	23,685
Net book value, June 30, 2021	$	19,156		$	-	$	19,156

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Note 7 - Right-of-use Asset

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of leases [text block]

7. RIGHT-OF-USE ASSET

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 subleased Suite 609 at 151 Bloor Street West, Toronto Ontario. It also 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 $7,119

The Company’s lease obligation and movements therein during the period ended June 30, 2021:

		Lease Obligation
Lease obligation as of January 1, 2020	$	574,762
Accretion on lease liability		21,990
Lease payment		(58,800	)
Lease obligation at June 30, 2020	$	537,952
Accretion on lease liability		20,492
Lease payment		(58,798	)
Adjustment from lease reassessment		(480,046	)
Lease obligation at December 31, 2020	$	19,600
Lease payment		(19,600	)
Lease obligation at June 30, 2021	$	-

The Company’s right-of-use assets and movements therein during the period ended June 30, 2021:

		Office Lease
Right-of-use assets at January 1, 2020	$	514,181
Depreciation on right-of-use assets		(44,939	)
Right-of-use assets at June 30, 2020		469,242
Adjustment from lease reassessment		(480,047	)
Depreciation on right-of-use assets		27,593
Right-of-use assets at December 31, 2020	$	16,788
Depreciation on right-of-use assets		(16,788	)
Right-of-use assets at June 30, 2021	$	-

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Note 8 - Contract Liabilities

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of revenue from contracts with customers [text block]

8. CONTRACT LIABILITIES

The following table presents changes in the contract liabilities balance:

Balance, January 1, 2020	$	192,958
Amounts invoices and revenue deferred as at June 30, 2020		63,367
Recognition of deferred revenue included in the period		(117,826	)
Balance, June 30, 2020		138,499
Amounts invoices and revenue deferred as at December 31, 2020		203,860
Recognition of deferred revenue included in the period		(123,793	)
Balance, December 31, 2020	$	218,566
Amounts invoices and revenue deferred as at June 30, 2021		224,195
Recognition of deferred revenue included in period		(180,689	)
Balance, June 30, 2021	$	262,072

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Note 9 - Loan Payable

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of borrowings [text block]

9. LOAN PAYABLE

In 2020, the Company received loans of $100,000 through Canadian Emergency Business Account Program (“CEBA Loan”), which provides financial relief for Canadian small business during the COVID-19 pandemic. The CEBA loan has an initial term date on December 31, 2021 (the “Initial Term Date”) and may be extended to December 31, 2025. The CEBA Loan is non-revolving, with an interest rate being 0% per annum prior to the initial Term Date. Repayment of principal is not required before December 31, 2022. The loan payments can be made at any time without fees or penalties. Repaying the balance of the CEBA loan on or before December 31, 2022 will result in a loan forgiveness of $30,000. During the period, the Company received $20,000 additional CEBA loan and loan forgiveness $10,000 has been recorded as a reduction of general and administrative expense.

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Note 10 - Share Capital

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of share capital, reserves and other equity interest [text block]

10. SHARE CAPITAL

Authorized

Unlimited number of preference shares with no par value

Unlimited number of common shares with no par value

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Note 11 - Share-based Payments

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of share-based payment arrangements [text block]

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, director, 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		Weighted Average Remaining Contract Life (Yrs)
Outstanding as at January 1, 2020		6,642,000		$	0.13		1.52
Granted		450,000			0.05		-
Forfeited		(122,000	)		0.18		-
Outstanding as at June 30, 2020		6,970,000		$	0.12		1.13
Granted		-			-
Expired		(2,730,000	)		0.20		-
Forfeited		-			-		-
Outstanding as at December 31, 2020		4,240,000		$	0.07		1.08
Outstanding as at June 30, 2021		4,240,000		$	0.07		0.58

Options exercisable as at June 30, 2020	6,662,505	$	0.13
Options exercisable as at December 31, 2020	4,127,500	$	0.07
Options exercisable as at June 30, 2021	4,240,000	$	0.07

The weighted average remaining contractual life for the stock options outstanding as at June 30, 2021 was 0.58 years (2020 - 1.133 years, 2019 - 2.03 years). The range of exercise prices for the stock options outstanding as at June 30, 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, director, and consultants in February 2020 was estimated at $0.0355 (2019 - $0.0453) using the Black-Scholes option-pricing model.

The pricing model assumes the weighted average risk free interest rates of 1.37% in February 2020 (2019 - 2.19%) weighted average expected dividend yields of nil (2019 - nil), the weighted average expected common stock price volatility (based on historical trading) of 123% (2019 - 105%), a forfeiture rate of 0% (2019 - 0%), a weighted average stock price of $0.05 (2019 - $0.07), a weighted average exercise price of $0.05 (2019 - $0.07), and a weighted average expected life of 3 years (2019 - 3 years), which were estimated based on past experience with options and option contract specifics.

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Note 12 - Tax Expense

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of income tax [text block]

12. TAX EXPENSE

Income tax expense is accrued upon recognition of revenue and is withheld at source on remittances from China.

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Note 13 - Government Grants and Subsidy

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of government grants [text block]

13. GOVERNMENT GRANTS AND SUBSIDY

Government Grants

Included as a reduction of selling, general and administrative expenses are government grants of $113,721 (2020 - $223,326), relating to the Company's publishing and software projects. At the end of the period, $110,000 (2020 - $ Nil) is included in accounts and grants receivable.

One government grant for the print-based ELL segment is repayable in the event that the segment’s annual net income for each of the previous two years exceeds 15% of revenue. During the year, the conditions for the repayment of grants did not arise and no liability was recorded.

Canada Emergency Wage Subsidy

The Canada Emergency Wage Subsidiy (“CEWS”) was announced on March 27, 2020. Effective April 11, 2020, the CEWS came into force providng a wage subsidy to eligible Canadian employers to enable them to continue to pay their Canadian employees through their own payroll. Due to the negative impact of COVID-19, the Company applied CEWS and recorded $6,145 as receivable during the period to reduce General and Administrative Expense.

Technation Canada – Career Ready Program

Career Ready Program is part of the Government of Canada’s Student Work Placement Program. It supports businesses by financing their decision to hire a student for a work-term placement. This in turn creates a rewarding opportunity for the student to apply their learning in real-world setting and puts them on a path to a bright career. During the period, the Company receive $7,500 from the program. It has been recorded as a reduction of General and Administrative Expense.

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Note 14 - Financial Instruments

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of financial instruments [text block]

14. 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:

a. 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.

A 10% strengthening of the US Dollar against the Canadian Dollar would have increased the net equity approximately by $117,624 (2020 ‑ $76,990) due to reduction in the value of net liability balance. A 10% of weakening of the US Dollar against the Canadian Dollar at June 30, 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 June 30, 2021 are as follows:

	US Denominated
	USD
Cash		894,125
Accounts receivable		851,842
Accounts payable		29,091

b. 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 June 30, 2021, the Company had cash of $1,292,042, accounts and grants receivable of $1,188,781 and prepaid and other receivables of $107,184 to settle current liabilities of $475,021.

c. 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 June 30, 2021 the Company has outstanding receivables of $1,188,781 (2020 - $983,235). 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.

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Note 15 - Major Customer

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of major customers [text block]

15. MAJOR CUSTOMER

The Company had sales to a major customer in the period ended in June 30, 2021 and June 30, 2020, a government agency of the People’s Republic of China. The total percentage of sales to this customer during the period was 77% (2020 – 83%) and the total percentage of accounts receivable at June 30, 2021 was 98% (2020 – 95%).

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Note 16 - Capital Management

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of objectives, policies and processes for managing capital [text block]

16. CAPITAL MANAGEMENT

The Company’s primary objectives when managing capital are to (a) safeguard the Company’s ability to develop, market, distribute and sell English language learning products, and (b) provide a sound capital structure for raising capital at a reasonable cost for the funding of ongoing development of its products and new growth initiatives. The Board of Directors does not establish quantitative capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business.

The Company includes equity, comprised of issued share capital, warrants, share-based payments reserve and deficit, in the definition of capital. The Company is dependent on cash flow from co-publishing royalties and software licensing agreements and external financing to fund its activities. In order to carry out planned development of its products and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There has been no change to the Company’s capital management from the approach used in 2021 or 2020.

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Note 17 - Segmented Information

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of entity's operating segments [text block]

17. SEGMENTED INFORMATION

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 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)

June 30, 2021	Online English Language Learning		Print-Based English Language Learning		Head Office			Total
Segmented assets	$	238,209	$	2,318,681	$	50,273		$	2,607,163
Segmented liabilities		360,107		116,186		78,730			555,023
Segmented revenue - online		274,823		-		-			274,823
Segmented revenue - royalties		-		904,775		-			904,775
Segmented direct costs		55,922		117,443		-			173,365
Segmented selling, general & administrative		84,044		178,235		255,415			517,694
Segmented profit / (loss)		28,867		492,453		(255,589	)		265,731

June 30, 2020	Online English Language Learning			Print-Based English Language Learning		Head Office			Total
Segmented assets	$	242,498		$	2,442,338	$	55,186		$	2,740,022
Segmented liabilities		194,497			674,104		134,417			1,003,018
Segmented revenue - online		171,603			-		-			171,603
Segmented revenue - royalties		5,998			896,912		-			902,910
Segmented direct costs		59,322			60,019		-			119,341
Segmented selling, general & administrative		(576,562	)		32,948		297,003			(246,611	)
Segmented profit / (loss)		562,808			656,749		(297,292	)		922,265

June 30, 2019	Online English Language Learning			Print-Based English Language Learning		Head Office			Total
Segmented assets	$	117,687		$	1,576,836	$	1,755		$	1,736,275
Segmented liabilities		218,457			475,622		337,603			1,031,682
Segmented revenue - online		145,380			-		-			145,380
Segmented revenue -royalties		3,802			857,988		-			861,790
Segmented direct costs		30,215			44,206		-			74,422
Segmented selling, general & administrative		78,762			90,778		261,377			430,917
Segmented profit / (loss)		(80,930	)		547,423		(261,734	)		204,759

Other Financial Items	2021			2020			2019
Online English Language Learning segmented income (loss)	$	28,867		$	562,808		$	(80,930	)
Print-Based English Language Learning segmented income (loss)		492,453			656,749			547,423
Head office		(255,589	)		(297,292	)		(261,734	)
Foreign exchange gain (loss)		29,674			(58,392	)		(7,324	)
Interest income (expense)		(5,741	)		7,921			(24,547	)
Share-based payment		(1,780	)		(13,846	)		(56,759	)
Other comprehensive income (loss)		(104,553	)		98,934			(26,886	)
Total Comprehensive Income (Loss)	$	183,331		$	956,882		$	89,243

Revenue by Geographic Region

	2021		2020		2019
Latin America	$	253,853	$	194,053	$	87,370
China		911,694		861,747		894,643
Other		14,051		18,713		25,156
	$	1,179,598	$	1,074,513	$	1,007,169

Identifiable Non-Current Assets by Geographic Region

	2021		2020		2019
Canada	$	18,748	$	497,065	$	394,501
China		408		510		604
	$	19,156	$	497,575	$	395,105

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Note 18 - Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of supplemental cash flow information [text block]

18. SUPPLEMENTAL CASH FLOW INFORMATION

	2021		2020		2019
Income taxes and other taxes paid	$	104,553	$	97,056	$	97,442
Interest paid		6,582		27,564		24,547
Interest received		841		35,485		-

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Note 19 - Related Party Balances and Transactions

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of transactions between related parties [text block]

19. 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) For the six-month period ended June 30, 2021, the Company charged $3,400 (2020 - $7,500) to the corporations with director or officer in common for rent, administration, office charges and telecommunications.

(b) During the period ended June 30, 2021, the company paid $2,400 director fees to independent directors.

(c) Key management compensation for the six-month period ended June 30, 2021 was $159,000 (2020 – $159,000) and is reflected as consulting fees paid to corporations owned by a director and officers of the Company, of which $Nil (2020 - $ Nil) is unpaid and included accrued liabilities.

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Note 20 - COVID-19

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of events after reporting period [text block]

20. COVID-19

Since December 31, 20219, 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. In addition, the company is eligible and has applied for certain government subsidies, additional grants and interest-free loans, which are already reflected in these financial statements.

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 meets the challenges schools and universities are facing by providing online language learning solutions. In addition, the Company has designed a number of programs to ensure its clients can easily deploy its suite of products that are well suited for a quarantined environment.

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Note 5 - Accounts and Grants Receivable (Tables)

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Schedule of accounts and grants receivable [text block]

	June 30, 2021		December 31, 2020
Trade receivable	$	1,078,781	$	973,852
Grants receivable		110,000		-
	$	1,188,781	$	973,852

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Note 6 - Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of detailed information about property, plant and equipment [text block]

	Computer and Office Equipment			Leasehold Improvements		Total
Cost, January 1, 2020	$	84,828		$	33,180	$	118,008
Effect of foreign exchange		614			-		614
Cost, June 30, 2020	$	85,442		$	33,180	$	118,862
Additions		2,319			-		2,319
Effect of foreign exchange		(809	)		-		(809	)
Cost, December 31, 2020	$	86,952		$	33,180	$	120,132
Additions		2,248			-		2,248
Disposal		(33,384	)		-		(33,384	)
Effect of foreign exchange		(172	)		-		(172	)
Cost, June 30, 2021	$	55,644		$	33,180	$	88,824
Accumulated depreciation, January 1, 2020	$	59,567		$	23,226	$	82,793
Charge for the period		2,643			4,266		6,909
Effect of foreign exchange		588			-		588
Accumulated depreciation, June 30, 2020	$	62,798		$	27,492	$	90,290
Charge for the period		2,671			4,266		6,937
Effect of foreign exchange		(780	)		-		(780	)
Accumulated depreciation, December 31, 2020	$	64,689		$	31,758	$	96,447
Charge for the period		2,102			1,422		3,524
Disposal		(30,134	)		-		(30,134	)
Effect of foreign exchange		(169	)		-		(169	)
Accumulated depreciation, June 30, 2021	$	36,488		$	33,180	$	69,668
Net book value, December 31, 2020	$	22,263		$	1,422	$	23,685
Net book value, June 30, 2021	$	19,156		$	-	$	19,156

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Note 7 - Right-of-use Asset (Tables)

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of maturity analysis of operating lease payments [text block]

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

Disclosure of lease liabilities [text block]

		Lease Obligation
Lease obligation as of January 1, 2020	$	574,762
Accretion on lease liability		21,990
Lease payment		(58,800	)
Lease obligation at June 30, 2020	$	537,952
Accretion on lease liability		20,492
Lease payment		(58,798	)
Adjustment from lease reassessment		(480,046	)
Lease obligation at December 31, 2020	$	19,600
Lease payment		(19,600	)
Lease obligation at June 30, 2021	$	-

Disclosure of quantitative information about right-of-use assets [text block]

		Office Lease
Right-of-use assets at January 1, 2020	$	514,181
Depreciation on right-of-use assets		(44,939	)
Right-of-use assets at June 30, 2020		469,242
Adjustment from lease reassessment		(480,047	)
Depreciation on right-of-use assets		27,593
Right-of-use assets at December 31, 2020	$	16,788
Depreciation on right-of-use assets		(16,788	)
Right-of-use assets at June 30, 2021	$	-

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Note 8 - Contract Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Explanation of significant changes in contract assets and contract liabilities [text block]

Balance, January 1, 2020	$	192,958
Amounts invoices and revenue deferred as at June 30, 2020		63,367
Recognition of deferred revenue included in the period		(117,826	)
Balance, June 30, 2020		138,499
Amounts invoices and revenue deferred as at December 31, 2020		203,860
Recognition of deferred revenue included in the period		(123,793	)
Balance, December 31, 2020	$	218,566
Amounts invoices and revenue deferred as at June 30, 2021		224,195
Recognition of deferred revenue included in period		(180,689	)
Balance, June 30, 2021	$	262,072

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Note 11 - Share-based Payments (Tables)

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of number and weighted average exercise prices of share options [text block]

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contract Life (Yrs)
Outstanding as at January 1, 2020		6,642,000		$	0.13		1.52
Granted		450,000			0.05		-
Forfeited		(122,000	)		0.18		-
Outstanding as at June 30, 2020		6,970,000		$	0.12		1.13
Granted		-			-
Expired		(2,730,000	)		0.20		-
Forfeited		-			-		-
Outstanding as at December 31, 2020		4,240,000		$	0.07		1.08
Outstanding as at June 30, 2021		4,240,000		$	0.07		0.58

Options exercisable as at June 30, 2020	6,662,505	$	0.13
Options exercisable as at December 31, 2020	4,127,500	$	0.07
Options exercisable as at June 30, 2021	4,240,000	$	0.07

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Note 14 - Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of detailed information about financial instruments [text block]

	US Denominated
	USD
Cash		894,125
Accounts receivable		851,842
Accounts payable		29,091

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Note 17 - Segmented Information (Tables)

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of operating segments [text block]

June 30, 2021	Online English Language Learning		Print-Based English Language Learning		Head Office			Total
Segmented assets	$	238,209	$	2,318,681	$	50,273		$	2,607,163
Segmented liabilities		360,107		116,186		78,730			555,023
Segmented revenue - online		274,823		-		-			274,823
Segmented revenue - royalties		-		904,775		-			904,775
Segmented direct costs		55,922		117,443		-			173,365
Segmented selling, general & administrative		84,044		178,235		255,415			517,694
Segmented profit / (loss)		28,867		492,453		(255,589	)		265,731

June 30, 2020	Online English Language Learning			Print-Based English Language Learning		Head Office			Total
Segmented assets	$	242,498		$	2,442,338	$	55,186		$	2,740,022
Segmented liabilities		194,497			674,104		134,417			1,003,018
Segmented revenue - online		171,603			-		-			171,603
Segmented revenue - royalties		5,998			896,912		-			902,910
Segmented direct costs		59,322			60,019		-			119,341
Segmented selling, general & administrative		(576,562	)		32,948		297,003			(246,611	)
Segmented profit / (loss)		562,808			656,749		(297,292	)		922,265

June 30, 2019	Online English Language Learning			Print-Based English Language Learning		Head Office			Total
Segmented assets	$	117,687		$	1,576,836	$	1,755		$	1,736,275
Segmented liabilities		218,457			475,622		337,603			1,031,682
Segmented revenue - online		145,380			-		-			145,380
Segmented revenue -royalties		3,802			857,988		-			861,790
Segmented direct costs		30,215			44,206		-			74,422
Segmented selling, general & administrative		78,762			90,778		261,377			430,917
Segmented profit / (loss)		(80,930	)		547,423		(261,734	)		204,759

Other Financial Items	2021			2020			2019
Online English Language Learning segmented income (loss)	$	28,867		$	562,808		$	(80,930	)
Print-Based English Language Learning segmented income (loss)		492,453			656,749			547,423
Head office		(255,589	)		(297,292	)		(261,734	)
Foreign exchange gain (loss)		29,674			(58,392	)		(7,324	)
Interest income (expense)		(5,741	)		7,921			(24,547	)
Share-based payment		(1,780	)		(13,846	)		(56,759	)
Other comprehensive income (loss)		(104,553	)		98,934			(26,886	)
Total Comprehensive Income (Loss)	$	183,331		$	956,882		$	89,243

Disclosure of geographical areas [text block]

	2021		2020		2019
Latin America	$	253,853	$	194,053	$	87,370
China		911,694		861,747		894,643
Other		14,051		18,713		25,156
	$	1,179,598	$	1,074,513	$	1,007,169

	2021		2020		2019
Canada	$	18,748	$	497,065	$	394,501
China		408		510		604
	$	19,156	$	497,575	$	395,105

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Note 18 - Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2021

Statement Line Items [Line Items]

Disclosure of supplemental cash flows schedule [text block]

	2021		2020		2019
Income taxes and other taxes paid	$	104,553	$	97,056	$	97,442
Interest paid		6,582		27,564		24,547
Interest received		841		35,485		-

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Note 1 - Corporate Information (Details Textual)	6 Months Ended
	Jun. 30, 2021
Statement Line Items [Line Items]
Number of reportable segments	2

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Note 5 - Accounts and Grants Receivable (Details Textual) - CAD ($)	Jun. 30, 2021	Jun. 30, 2020
Later than one month [member]
Statement Line Items [Line Items]
Trade receivables	$ 270,653	$ 169,002

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Note 5 - Accounts and Grants Receivable - Schedule of Receivables (Details) - CAD ($)	Jun. 30, 2021	Dec. 31, 2020
Statement Line Items [Line Items]
Trade receivable	$ 1,078,781	$ 973,852
Grants receivable	110,000	0
Current Trade and Grants Receivable	$ 1,188,781	$ 973,852

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Note 6 - Property and Equipment - Schedule of Property and Equipment (Details) - CAD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Statement Line Items [Line Items]
Cost, balance	$ 23,685
Cost, balance	19,156	$ 23,685
Computer and office equipment [member]
Statement Line Items [Line Items]
Cost, balance	22,263
Cost, balance	19,156	22,263
Leasehold improvements [member]
Statement Line Items [Line Items]
Cost, balance	1,422
Cost, balance	0	1,422
Gross carrying amount [member]
Statement Line Items [Line Items]
Cost, balance	120,132	118,862	$ 118,008
Effect of foreign exchange	(172)	(809)	614
Additions	2,248	2,319
Effect of foreign exchange	(172)	(809)	614
Disposal	(33,384)
Cost, balance	88,824	120,132	118,862
Disposal	33,384
Gross carrying amount [member] | Computer and office equipment [member]
Statement Line Items [Line Items]
Cost, balance	86,952	85,442	84,828
Effect of foreign exchange	(172)	(809)	614
Additions	2,248	2,319
Effect of foreign exchange	(172)	(809)	614
Disposal	(33,384)
Cost, balance	55,644	86,952	85,442
Disposal	33,384
Gross carrying amount [member] | Leasehold improvements [member]
Statement Line Items [Line Items]
Cost, balance	33,180	33,180	33,180
Effect of foreign exchange	0	0	0
Additions	0	0
Effect of foreign exchange	0	0	0
Disposal	0
Cost, balance	33,180	33,180	33,180
Disposal	(0)
Accumulated depreciation, amortisation and impairment [member]
Statement Line Items [Line Items]
Effect of foreign exchange	(169)	(780)	588
Effect of foreign exchange	(169)	(780)	588
Disposal	30,134
Accumulated depreciation	96,447	90,290	82,793
Charge for the period	3,524	6,937	6,909
Disposal	(30,134)
Accumulated depreciation	69,668	96,447	90,290
Accumulated depreciation, amortisation and impairment [member] | Computer and office equipment [member]
Statement Line Items [Line Items]
Effect of foreign exchange	(169)	(780)	588
Effect of foreign exchange	(169)	(780)	588
Disposal	30,134
Accumulated depreciation	64,689	62,798	59,567
Charge for the period	2,102	2,671	2,643
Disposal	(30,134)
Accumulated depreciation	36,488	64,689	62,798
Accumulated depreciation, amortisation and impairment [member] | Leasehold improvements [member]
Statement Line Items [Line Items]
Effect of foreign exchange	0	0	0
Effect of foreign exchange	0	0	0
Disposal	0
Accumulated depreciation	31,758	27,492	23,226
Charge for the period	1,422	4,266	4,266
Disposal	0
Accumulated depreciation	$ 33,180	$ 31,758	$ 27,492

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Note 7 - Right-of-use Asset (Details Textual)	6 Months Ended
	Jun. 30, 2021 CAD ($)
Statement Line Items [Line Items]
Operating lease, term (Year)	5 years
Operating lease, renewal term (Year)	5 years
Lease expense	$ 7,119

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Note 7 - Right-of-use Asset - Non-cancellable Lease Rentals Payable (Details)	Jun. 30, 2021 CAD ($)
Not later than one year [member]
Statement Line Items [Line Items]
Non-cancellable lease rentals	$ 0
Later than one year and not later than five years [member]
Statement Line Items [Line Items]
Non-cancellable lease rentals	$ 0

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Note 7 - Right-of-use Asset - Lease Obligation (Details) - CAD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Statement Line Items [Line Items]
Lease obligation	$ 19,600	$ 537,952	$ 574,762
Accretion on lease liability		20,492	21,990
Lease payment	(19,600)	(58,798)	(58,800)
Lease obligation	$ 0	19,600	$ 537,952
Adjustment from lease reassessment		$ (480,046)

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Note 7 - Right-of-use Asset - Right-of-use Assets (Details) - CAD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Statement Line Items [Line Items]
Right-of-use assets	$ 16,788
Right-of-use assets	0	$ 16,788
Gross carrying amount [member]
Statement Line Items [Line Items]
Right-of-use assets	16,788	469,242	$ 514,181
Depreciation on right-of-use assets	(16,788)	(27,593)	(44,939)
Adjustment from lease reassessment		(480,047)
Depreciation on right-of-use assets	16,788	27,593	44,939
Right-of-use assets	$ 0	$ 16,788	$ 469,242

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Note 8 - Contract Liabilities - Changes in Contract Liability (Details) - CAD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Statement Line Items [Line Items]
Balance	$ 218,566	$ 138,499	$ 192,958
Amounts invoices and revenue deferred	224,195	203,860	63,367
Recognition of deferred revenue included in the period	(180,689)	(123,793)	(117,826)
Balance	$ 262,072	$ 218,566	$ 138,499

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Note 9 - Loan Payable (Details Textual) - CAD ($) Pure in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Apr. 15, 2020
Statement Line Items [Line Items]
Proceeds from borrowings	$ 20,000	$ 40,000	$ 20,000	$ 40,000
Adjustments for loan forgiveness	$ (10,000)	$ 0	(10,000)	0
CEBA loan [member]
Statement Line Items [Line Items]
Proceeds from borrowings			20,000	100,000
Borrowings, interest rate					0.00%
Adjustments for loan forgiveness			$ 10,000	$ 30,000

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Note 10 - Share Capital (Details Textual) $ / shares in Thousands	Jun. 30, 2021 $ / shares
Preference shares [member]
Statement Line Items [Line Items]
Par value per share (in CAD per share)	$ 0
Ordinary shares [member]
Statement Line Items [Line Items]
Par value per share (in CAD per share)	$ 0

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Note 11 - Share-based Payments (Details Textual)	1 Months Ended	3 Months Ended	6 Months Ended				12 Months Ended
	Feb. 29, 2020 CAD ($) $ / shares	Mar. 31, 2019	Jun. 30, 2021 $ / shares	Dec. 31, 2020	Jun. 30, 2020 CAD ($) $ / shares	Jun. 30, 2019 CAD ($) $ / shares	Dec. 31, 2019	Dec. 31, 2017 shares
Statement Line Items [Line Items]
Option life, share options granted	3					3
Weighted average remaining contractual life of outstanding share options (Year)			6 months 29 days	1 year 29 days	1 year 1 month 17 days	2 years 10 days	1 year 6 months 7 days
Risk free interest rate, share options granted	1.37%					2.19%
Expected dividend, share options granted | $	$ 0					$ 0
Expected volatility, share options granted	123.00%					105.00%
Forfeiture rate, share options granted	0.00%	0.00%
Weighted average share price, share options granted (in CAD per share)	$ 0.05					$ 0.07
Exercise price, share options granted (in CAD per share)	$ 0.05					$ 0.07
Management, employees, directors and consultants [member]
Statement Line Items [Line Items]
Weighted average fair value at measurement date, share options granted | $					$ 0.0355	$ 0.0453
Top of range [member]
Statement Line Items [Line Items]
Exercise price of outstanding share options (in CAD per share)			$ 0.13		$ 0.23	$ 0.23
Bottom of range [member]
Statement Line Items [Line Items]
Exercise price of outstanding share options (in CAD per share)			$ 0.05		$ 0.05	$ 0.07
The 2017 Stock Option Plan [member]
Statement Line Items [Line Items]
Number of shares reserved for issue under options and contracts for sale of shares (in shares) | shares								7,105,838
Share reservation limitations, maximum percentage of allowed reserved shares								5.00%
The 2017 Stock Option Plan [member] | Top of range [member]
Statement Line Items [Line Items]
Option life, share options granted								10

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Note 11 - Share-based Payments - Options Outstanding (Details)	6 Months Ended				12 Months Ended
	Jun. 30, 2021 $ / shares	Dec. 31, 2020 $ / shares	Jun. 30, 2020 $ / shares	Jun. 30, 2019	Dec. 31, 2019 $ / shares
Statement Line Items [Line Items]
Balance, number of options	4,240,000	6,970,000	6,642,000
Outstanding, weighted average exercise price (in CAD per share)	$ 0.07	$ 0.12	$ 0.13
Balance, weighted average remaining contract life (Year)	6 months 29 days	1 year 29 days	1 year 1 month 17 days	2 years 10 days	1 year 6 months 7 days
Granted, number of options		0	450,000
Granted, weighted average exercise price (in CAD per share)		$ 0	$ 0.05
Forfeited, number of options		0	(122,000)
Forfeited, weighted average exercise price (in CAD per share)			$ 0.18
Expired, number of options		(2,730,000)
Expired, weighted average exercise price (in CAD per share)		$ 0.20
Forfeited, weighted average exercise price (in CAD per share)		$ 0	$ (0.05)
Balance, number of options	4,240,000	4,240,000	6,970,000		6,642,000
Outstanding, weighted average exercise price (in CAD per share)	$ 0.07	$ 0.07	$ 0.12		$ 0.13
Options exercisable	4,240,000	4,127,500	6,662,505
Options exercisable, per share (in CAD per share)	$ 0.07	$ 0.07	$ 0.13

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Note 13 - Government Grants and Subsidy (Details Textual) - CAD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Statement Line Items [Line Items]
Government grants	$ 113,721	$ 223,326
Government grants receivable	110,000	$ 0
Proceeds from canada emergency wage subsidy	6,145
Proceeds from Canada emergency rent subsidy	$ 7,500
Print-based English language learning segment [member]
Statement Line Items [Line Items]
Minimum threshold for the revenue of a period of three years for a grant liability to occur	15.00%

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Note 14 - Financial Instruments (Details Textual) - CAD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Statement Line Items [Line Items]
Total cash and cash equivalents	$ 1,292,042	$ 1,127,418	$ 1,672,465	$ 1,212,778	$ 697,984	$ 442,489
Current Trade and Grants Receivable	1,188,781			973,852
Current prepayments and other receivable	107,184			168,932
Total current liabilities	475,023			$ 459,006
Currency risk [member]
Statement Line Items [Line Items]
Possible effect of 10% change in exchange rate regarding the USD to the net income (loss)	117,624	76,990
Total cash and cash equivalents	1,292,042
Current Trade and Grants Receivable	1,188,781
Current prepayments and other receivable	107,184
Total current liabilities	475,021
Liquidity risk [member]
Statement Line Items [Line Items]
Current Trade and Grants Receivable	$ 1,188,781	$ 983,235

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Note 14 - Financial Instruments - Denominated Monetary Assets and Liabilities (Details) - Currency risk [member]	Jun. 30, 2021 USD ($)
Financial liabilities at amortised cost, category [member] | Trade and other payables [member]
Statement Line Items [Line Items]
Financial liabilities	$ 29,091
Financial assets at fair value through profit or loss, category [member] | Cash and cash equivalents [member]
Statement Line Items [Line Items]
Financial assets	894,125
Loans and receivables, category [member] | Trade receivables [member]
Statement Line Items [Line Items]
Financial assets	$ 851,842

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Note 15 - Major Customer (Details Textual) - People’s Republic of China government agency [member]	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Statement Line Items [Line Items]
Percentage of entity's revenue	77.00%	83.00%
Percentage of entity's receivables	98.00%	95.00%

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Note 17 - Segmented Information (Details Textual)	6 Months Ended
	Jun. 30, 2021
Statement Line Items [Line Items]
Number of reportable segments	2

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Note 17 - Segmented Information - Segment Earnings (Details) - CAD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Jun. 30, 2019
Statement Line Items [Line Items]
Segmented assets	$ 2,607,163		$ 2,607,163	$ 2,396,035
Segmented liabilities	555,023		555,023	529,006
Segmented revenue	1,030,518	$ 977,389	1,179,598		$ 1,074,513	$ 1,007,169
Segmented direct costs	101,083	44,449	173,365		119,341
Segmented selling, general & administrative	249,371	109,596	517,694		(246,611)
Segmented profit / (loss)	707,561	624,329	287,884	252,431	857,948
Foreign exchange gain (loss)	179,607	(9,223)	29,674		(58,392)	(7,324)
Interest income (expense)	(3,471)	(13,033)	(5,741)		7,921	(24,547)
Share-based payment	0	(8,985)	(1,780)		(13,846)	(56,759)
Other comprehensive income (loss)			(104,553)	$ (131,704)	98,934	(26,886)
Total Comprehensive Income (Loss)	451,588	557,802	183,331		956,882	89,243
Online English language learning segment [member]
Statement Line Items [Line Items]
Segmented assets	238,209	242,498	238,209		242,498	117,687
Segmented liabilities	360,107	194,497	360,107		194,497	218,457
Segmented direct costs			55,922		59,322	30,215
Segmented selling, general & administrative			84,044		(576,562)	78,762
Segmented profit / (loss)			28,867		562,808	(80,930)
Online English language learning segment [member] | Online [member]
Statement Line Items [Line Items]
Segmented revenue			274,823		171,603	145,380
Online English language learning segment [member] | Royalty [member]
Statement Line Items [Line Items]
Segmented revenue			0		5,998	3,802
Print-based English language learning segment [member]
Statement Line Items [Line Items]
Segmented assets	2,318,681	2,442,338	2,318,681		2,442,338	1,576,836
Segmented liabilities	116,186	674,104	116,186		674,104	475,622
Segmented direct costs			117,443		60,019	44,206
Segmented selling, general & administrative			178,235		32,948	90,778
Segmented profit / (loss)			492,453		656,749	547,423
Print-based English language learning segment [member] | Online [member]
Statement Line Items [Line Items]
Segmented revenue			0		0	0
Print-based English language learning segment [member] | Royalty [member]
Statement Line Items [Line Items]
Segmented revenue			904,775		896,912	857,988
Head office [member]
Statement Line Items [Line Items]
Segmented assets	50,273	55,186	50,273		55,186	1,755
Segmented liabilities	78,730	134,417	78,730		134,417	337,603
Segmented direct costs			0		0	0
Segmented selling, general & administrative			255,415		297,003	261,377
Segmented profit / (loss)			(255,589)		(297,292)	(261,734)
Head office [member] | Online [member]
Statement Line Items [Line Items]
Segmented revenue			0		0	0
Head office [member] | Royalty [member]
Statement Line Items [Line Items]
Segmented revenue			0		0	0
Total operating segments [member]
Statement Line Items [Line Items]
Segmented assets	2,607,163	2,740,022	2,607,163		2,740,022	1,736,275
Segmented liabilities	$ 555,023	$ 1,003,018	555,023		1,003,018	1,031,682
Segmented direct costs			173,365		119,341	74,422
Segmented selling, general & administrative			517,694		(246,611)	430,917
Segmented profit / (loss)			265,731		922,265	204,759
Total operating segments [member] | Online [member]
Statement Line Items [Line Items]
Segmented revenue			274,823		171,603	145,380
Total operating segments [member] | Royalty [member]
Statement Line Items [Line Items]
Segmented revenue			$ 904,775		$ 902,910	$ 861,790

XML

Note 17 - Segmented Information - Geographical Information (Details) - CAD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Statement Line Items [Line Items]
Segmented revenue	$ 1,030,518	$ 977,389	$ 1,179,598	$ 1,074,513	$ 1,007,169
Identifiable non-current assets	19,156	497,575	19,156	497,575	395,105
Latin America [member]
Statement Line Items [Line Items]
Segmented revenue			253,853	194,053	87,370
Country of domicile [member]
Statement Line Items [Line Items]
Identifiable non-current assets	18,748	497,065	18,748	497,065	394,501
CHINA
Statement Line Items [Line Items]
Segmented revenue			911,694	861,747	894,643
Identifiable non-current assets	$ 408	$ 510	408	510	604
Other [member]
Statement Line Items [Line Items]
Segmented revenue			$ 14,051	$ 18,713	$ 25,156

XML

Note 18 - Supplemental Cash Flow Information - Schedule of Income Taxes and Interest Paid (Details) - CAD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Statement Line Items [Line Items]
Income taxes and other taxes paid	$ 104,553	$ 97,056	$ 97,442
Interest paid	6,582	27,564	24,547
Interest received	$ 841	$ 35,485	$ 0

XML

Note 19 - Related Party Balances and Transactions (Details Textual) - CAD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Statement Line Items [Line Items]
Key management personnel compensation	$ 159,000	$ 159,000
Corporations controlled by directors and officers of the entity [member]
Statement Line Items [Line Items]
Amounts receivable, related party transactions	3,400	7,500
Independent directors [member]
Statement Line Items [Line Items]
Payments for director fees	2,400
Key management personnel of entity or parent [member]
Statement Line Items [Line Items]
Amounts payable, related party transactions	$ 0	$ 0