4 Financials

iCREATE LIMITED NOTESTOTHE FINANCIAL STATEMENTS FORTHEYEAR ENDED DECEMBER31, 2020

22. OPERATION

The Company, which is still in a developmental phase, reported a loss for the year ended December 31, 2020 of $29,064,713 (2019, a loss of($45,950,076) and had an accumulated deficit of$89,862,844 (2019: $60,798,131). Further as at December 31, 2020, the Company had net current liabilities of$22,983,209 (2019: $33,543,299). The Company has not to date been able to realise its projected revenues.

Additionally, the ongoing COVID-19 pandemic has placed an added burden on the Company's growth trajectory with revenue fall out due to the nature ofits business.

The above factors indicate a possible material uncertainty that may cast doubt on the Company's ability to continue as a going concern and that the Company may be unable to realise its assets and discharge its liabilities in the normal course ofbusiness.

The Company has embarked on the following strategies to achieve sustainability and minimize the fall-out from the ongoing COVID-19 pandemic:

CostReduction

•A complete shutdown ofits Montego Bay office with the migration ofclasses online

• Reduction in staffcount at its Kingston's office

• Reduction of other operational costs

Revenue Growth inresponseto COVID-19Pandemic

• Migrate majority ofclasses online - especially from the Montego Bay office

• Introduce new income streams through revenue diversification

Based on the plans and strategies being pursued and implemented, the directors and management believe that the Company will generate adequate cash flows and profitability which would allow it to continue in operational existence for the foreseeable future. On this basis, the directors have maintained the going concern assumption in the preparation ofthese financial statements. This basis ofpreparation presumes that the Company will be able to realize its assets and discharge its liabilities in the ordinary course ofbusiness.