SEDAR Interim Financial Statements

[
  {
    "companyName": "IMPERIAL EQUITIES INC.",
    "reportingPeriodEnd": "2025-12-31",
    "reportStatus": "Unaudited",
    "auditorName": null,
    "auditorKeyMatters": [],
    "balanceSheet": {
      "investmentProperties": 227147077,
      "rightOfUseAssets": 54851,
      "mortgagesAndLoansReceivable": 5837131,
      "totalNonCurrentAssets": 233039059,
      "currentPortionOfMortgagesAndLoansReceivable": 5442617,
      "receivables": 70229,
      "prepaidExpensesAndDeposits": 130271,
      "cash": 702755,
      "totalCurrentAssets": 6345872,
      "totalAssets": 239384931,
      "mortgages": 8101871,
      "securityDeposits": 830040,
      "termLoan": 199479,
      "leaseLiabilities": 8031,
      "deferredTaxes": 16096337,
      "totalNonCurrentLiabilities": 25235758,
      "incomeTaxesPayable": 123474,
      "currentPortionOfLeaseLiabilities": 52045,
      "currentPortionOfMortgages": 77884929,
      "currentPortionOfTermLoan": 58267,
      "bankOperatingFacilities": 22755861,
      "payablesAndAccruals": 1212574,
      "totalCurrentLiabilities": 102087150,
      "totalLiabilities": 127322908,
      "issuedShareCapital": 5947346,
      "contributedSurplus": 501200,
      "retainedEarnings": 105613477,
      "totalEquity": 112062023,
      "totalEquityAndLiabilities": 239384931,
      "cashPerShare": 0.0744,
      "workingCapitalPerShare": -10.1299
    },
    "incomeStatement": {
      "rentalRevenue": 4788428,
      "propertyOperatingExpenses": 1578533,
      "incomeFromOperations": 3209895,
      "financeCosts": 1282022,
      "administrationExpenses": 402874,
      "financeIncome": -172313,
      "amortizationOfDeferredLeasing": 98737,
      "amortizationOfRightOfUseAsset": 44177,
      "lossOnTheSaleOfInvestmentProperty": 0,
      "valuationLossGainOnInvestmentPropertiesNet": 640700,
      "incomeBeforeIncomeTax": 913698,
      "incomeTaxExpense": 184458,
      "netIncomeAndComprehensiveIncome": 729240,
      "weightedAverageNumberOfSharesOutstandingBasicDiluted": 9451242,
      "earningsLossPerShareBasicAndDiluted": 0.08
    },
    "cashFlowStatement": {
      "netIncomeFromOperations": 729240,
      "financeCosts": 1282022,
      "financeIncome": -172313,
      "leasingCommissions": -516279,
      "amortizationOfRightOfUseAsset": 44177,
      "amortizationOfTenantInducements": 31714,
      "amortizationOfDeferredLeasingCommissions": 98737,
      "lossOnSaleOfInvestmentProperties": 0,
      "valuationLossGainOnInvestmentProperties": 640700,
      "straightLineRentalRevenue": 77110,
      "deferredIncomeTaxes": 234756,
      "netChangeInOperatingWorkingCapital": 559489,
      "cashProvidedByOperatingActivities": 3009353,
      "proceedsOnSaleOfInvestmentProperties": 0,
      "additionsRecoveriesToInvestmentProperties": -449673,
      "advancesOnLoansAndMortgagesReceivable": 0,
      "principalReceivedOnMortgagesAndLoansReceivable": 77930,
      "interestReceivedOnMortgagesAndLoansReceivable": 149771,
      "cashProvidedByUsedInInvestingActivities": -221972,
      "proceedsFromNewMortgages": 1050000,
      "repaymentOfMortgages": -1380109,
      "feesAssociatedWithNewOrRenewedMortgages": -16003,
      "repaymentOfTermLoan": -14049,
      "financeCostsPaid": -1244549,
      "principalRepaymentsOnLeaseLiability": -51416,
      "dividendsPaid": -189025,
      "netAdvancesFromBankOperatingFacilities": -509595,
      "cashUsedInFinancingActivities": -2354746,
      "decreaseInCashAndCashEquivalents": 432635,
      "cashAndCashEquivalentsBeginningOfPeriod": 270120,
      "cashAndCashEquivalentsEndOfPeriod": 702755
    },
    "investmentsAndOtherAssets": [
      {
        "type": "Mortgage Receivable",
        "description": "Mortgage receivable, bearing interest at 8.00% per annum, repayable in monthly blended payments of principal and interest of $10,303, due on demand. Secured by a first mortgage charge against land and building.",
        "ownershipPercentage": null,
        "value": 1325626,
        "notes": "During the quarter ended December 31, 2025, the maturity date was extended to December 31, 2025. Subsequent to December 31, 2025, the mortgage receivable became due on demand. The mortgage receivable can be prepaid in whole or in part without penalty and is carried at fair value."
      },
      {
        "type": "Mortgage Receivable",
        "description": "Mortgage receivable, bearing interest at 5.0% per annum, with monthly blended payments of principal and interest of $34,315, and a maturity date of May 28, 2027. Secured by a first mortgage charge against land.",
        "ownershipPercentage": null,
        "value": 5636055,
        "notes": "Subsequent to December 31, 2025, the Company became aware that the mortgagor had defaulted on certain terms of the mortgage. The Company has entered into discussions with the mortgagor regarding remedying the defaults and is monitoring the situation. The security on the mortgage was assessed to have a value in excess of the outstanding debt, and as such no impairment has been recognized on this balance at December 31, 2025."
      },
      {
        "type": "Mortgage Receivable",
        "description": "Mortgage receivable, bearing interest at 5.00% per annum, with monthly blended payments of principal and interest of $23,519, and a maturity date of Sep 1, 2026, at which time any outstanding balance is repayable in full. Secured by a first mortgage charge against land and building.",
        "ownershipPercentage": null,
        "value": 4023165,
        "notes": null
      },
      {
        "type": "Loan Receivable",
        "description": "Loan receivable from a tenant, bearing interest at 5.5% per annum, repayable in equal monthly payments of principal and interest of $496, with a maturity date of May 1, 2028.",
        "ownershipPercentage": null,
        "value": 40344,
        "notes": null
      },
      {
        "type": "Loan Receivable",
        "description": "Loan receivable from a tenant, bearing interest at 8.5% per annum, repayable in equal monthly payments of principal and interest of $3,358, with payments commencing January 1, 2025 and a maturity date of December 31, 2034.",
        "ownershipPercentage": null,
        "value": 254558,
        "notes": null
      }
    ],
    "shareStructure": {
      "authorizedShares": null,
      "issuedShares": 9451242,
      "classesOfShares": ["Common shares"],
      "warrants": [],
      "options": [
        {
          "number": 400000,
          "exercisePrice": 3.93,
          "expiryDate": null
        }
      ],
      "rightsConvertibleInstruments": null
    },
    "managementCompensation": {
      "currency": "CAD",
      "periods": {
        "threeMonthsEndedDecember312025": {
          "salariesAndWages": 130000,
          "shortTermEmployeeBenefits": 4105,
          "total": 134105
        },
        "threeMonthsEndedDecember312024": {
          "salariesAndWages": 130000,
          "shortTermEmployeeBenefits": 3798,
          "total": 133798
        }
      },
      "namedIndividuals": [],
      "otherRelatedPartyTransactions": [
        {
          "counterparty": "Sable Realty & Management Ltd.",
          "description": "Property management and maintenance fees",
          "amount": 352402,
          "period": "Three months ended December 31, 2025"
        },
        {
          "counterparty": "North American Realty Corp.",
          "description": "Leasing fees",
          "amount": 169345,
          "period": "Three months ended December 31, 2025"
        },
        {
          "counterparty": "North American Mortgage and Leasing Corp.",
          "description": "Vehicle lease payments",
          "amount": 2250,
          "period": "Three months ended December 31, 2025"
        },
        {
          "counterparty": "Sable Realty & Management Ltd.",
          "description": "Leased office space and parking (net)",
          "amount": 19367,
          "period": "Three months ended December 31, 2025"
        },
        {
          "counterparty": "Directors",
          "description": "Directors' meeting fees",
          "amount": 10000,
          "period": "Three months ended December 31, 2025"
        }
      ]
    },
    "subsequentEvents": [
      {
        "eventDate": "2026-01-05",
        "description": "Declared a quarterly dividend of $0.02 per share totalling $189,025, paid on February 6, 2026 to shareholders of record effective January 23, 2026.",
        "impactValue": -189025
      }
    ]
  }
]