EX-99.1 2 financialstatementsfy23q2.htm EX-99.1 Document



Lightspeed Commerce Inc.
Condensed Interim Consolidated Financial Statements
(Unaudited)
For the three and six months ended September 30, 2022
(expressed in thousands of US dollars)


Lightspeed Commerce Inc.
Condensed Interim Consolidated Balance Sheets
(Unaudited)
As at September 30 and March 31, 2022
(expressed in thousands of US dollars)
Notes
September 30,
2022		March 31,
2022
Assets
$
$
Current assets
Cash and cash equivalents862,576 953,654 
Trade and other receivables957,119 45,766 
Inventories10,013 7,540 
Other current assets1031,527 35,535 
Total current assets961,235 1,042,495 
Lease right-of-use assets, net
22,937 25,539 
Property and equipment, net
18,769 16,456 
Intangible assets, net
357,180 409,568 
Goodwill112,091,056 2,104,368 
Other long-term assets1226,452 21,400 
Deferred tax assets140 154 
Total assets3,477,769 3,619,980 
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable and accrued liabilities1373,462 78,307 
Lease liabilities6,809 7,633 
Income taxes payable6,672 6,718 
Deferred revenue62,931 65,194 
Total current liabilities149,874 157,852 
Deferred revenue1,598 2,121 
Lease liabilities19,346 23,037 
Long-term debt15— 29,841 
Accrued payroll taxes on share-based compensation924 1,007 
Deferred tax liabilities1,608 6,833 
Total liabilities173,350 220,691 
Shareholders’ equity
Share capital164,255,533 4,199,025 
Additional paid-in capital171,438 123,777 
Accumulated other comprehensive income (loss)17(15,623)2,677 
Accumulated deficit(1,106,929)(926,190)
Total shareholders’ equity3,304,419 3,399,289 
Total liabilities and shareholders’ equity3,477,769 3,619,980 
Commitments and contingencies14


The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
2

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
For the three and six months ended September 30, 2022 and 2021
(expressed in thousands of US dollars, except per share amounts)
Three months ended September 30,Six months ended September 30,
Notes
2022202120222021
$
$$$
Revenues4183,699 133,218 357,581 249,138 
Direct cost of revenues5, 6102,230 68,272 198,587 126,619 
Gross profit81,469 64,946 158,994 122,519 
Operating expenses
General and administrative625,132 23,081 55,371 45,358 
Research and development636,596 30,092 72,232 52,308 
Sales and marketing664,337 51,693 132,982 93,963 
Depreciation of property and equipment1,188 1,020 2,409 1,889 
Depreciation of right-of-use assets2,063 2,008 4,110 3,633 
Foreign exchange loss29 6 472 255 
Acquisition-related compensation12,653 9,032 29,756 11,046 
Amortization of intangible assets25,684 22,797 51,560 39,810 
Restructuring14603 — 1,810 197 
Total operating expenses168,285 139,729 350,702 248,459 
Operating loss(86,816)(74,783)(191,708)(125,940)
Net interest income74,851 719 6,858 945 
Loss before income taxes(81,965)(74,064)(184,850)(124,995)
Income tax expense (recovery)
Current516 95 780 725 
Deferred(2,538)(15,072)(4,891)(17,296)
Total income tax recovery(2,022)(14,977)(4,111)(16,571)
Net loss(79,943)(59,087)(180,739)(108,424)
Other comprehensive loss
Items that may be reclassified to net loss
Foreign currency differences on translation of foreign operations(6,689)(4,429)(15,522)(4,125)
Change in net unrealized loss on cash flow hedging instruments(2,059)(945)(2,778)(945)
Total other comprehensive loss17(8,748)(5,374)(18,300)(5,070)
Total comprehensive loss(88,691)(64,461)(199,039)(113,494)
Net loss per share – basic and diluted8(0.53)(0.43)(1.21)(0.80)



The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
3

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statement of Cash Flows
(Unaudited)
For the six months ended September 30, 2022 and 2021
(expressed in thousands of US dollars)
Six months ended September 30,
20222021
Cash flows from (used in) operating activities
$
$
Net loss(180,739)(108,424)
Items not affecting cash and cash equivalents
Share-based acquisition-related compensation26,740 8,972 
Amortization of intangible assets51,560 39,810 
Depreciation of property and equipment and lease right-of-use assets6,519 5,522 
Deferred income taxes(4,891)(17,296)
Share-based compensation expense73,589 37,043 
Unrealized foreign exchange loss290 429 
(Increase)/decrease in operating assets and increase/(decrease) in operating liabilities
Trade and other receivables(10,434)(321)
Inventories(2,473)(1,353)
Other assets368 (3,858)
Accounts payable and accrued liabilities(8,029)9,286 
Income taxes payable(46)283 
Deferred revenue(2,786)1,841 
Accrued payroll taxes on share-based compensation(83)1,371 
Net interest income(6,858)(945)
Total operating activities(57,273)(27,640)
Cash flows from (used in) investing activities
Additions to property and equipment(5,206)(3,532)
Additions to intangible assets(1,498)— 
Acquisition of businesses, net of cash acquired— (398,567)
Purchase of investments(820)— 
Movement in restricted term deposits— 344 
Interest income 7,185 2,281 
Total investing activities(339)(399,474)
Cash flows from (used in) financing activities
Proceeds from exercise of stock options4,033 14,823 
Proceeds from issuance of share capital— 823,515 
Share issuance costs(193)(33,659)
Repayment of long-term debt(30,000)— 
Payment of lease liabilities net of incentives and movement in restricted lease deposits(4,106)(3,049)
Financing costs(373)(788)
Total financing activities(30,639)800,842 
Effect of foreign exchange rate changes on cash and cash equivalents
(2,827)(704)
Net increase (decrease) in cash and cash equivalents during the period(91,078)373,024 

Cash and cash equivalents – Beginning of period953,654 807,150 
Cash and cash equivalents – End of period862,576 1,180,174 
Interest paid373 480 
Income taxes paid768 635 
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
4

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
For the six months ended September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares)
Issued and
Outstanding Shares
Notes
Number
of shares
Amount
Additional
paid-in
capital		Accumulated other comprehensive income (loss)Accumulated
deficit		Total
$$$$$
Balance as at March 31, 2022148,661,312 4,199,025 123,777 2,677 (926,190)3,399,289 
Net loss— — — — (180,739)(180,739)
Share issuance costs— (193)— — — (193)
Exercise of stock options and settlement of share awards1,431,737 29,961 (25,928)— — 4,033 
Share-based compensation— — 73,589 — — 73,589 
Share-based acquisition-related compensation
222,715 26,740 — — — 26,740 
Other comprehensive loss17— — — (18,300)— (18,300)
Balance as at September 30, 2022150,315,764 4,255,533 171,438 (15,623)(1,106,929)3,304,419 
Balance as at March 31, 2021128,528,515 2,526,448 35,877 9,715 (637,757)1,934,283 
Net loss— — — — (108,424)(108,424)
Issuance of shares upon public offering8,855,000 823,515 — — — 823,515 
Share issuance costs— (33,752)— — — (33,752)
Exercise of stock options and settlement of share awards879,677 23,052 (8,229)— — 14,823 
Share-based compensation— — 37,043 — — 37,043 
Share-based acquisition-related compensation25,099 8,972 — — — 8,972 
Shares issued in connection with business combination4,835,670 360,474 — — — 360,474 
Other comprehensive loss17— — — (5,070)— (5,070)
Balance as at September 30, 2021143,123,961 3,708,709 64,691 4,645 (746,181)3,031,864 




The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
5
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares and per share amounts)

    1. Organization and nature of operations
Lightspeed Commerce Inc. ("Lightspeed" or the "Company") was incorporated on March 21, 2005 under the Canada Business Corporations Act. Its head office is located at Gare Viger, 700 Saint-Antoine St. East, Suite 300, Montréal, Quebec, Canada. Lightspeed’s one-stop commerce platform provides its customers with the critical functionalities they need to engage with consumers, manage their operations, accept payments, and grow their business. Lightspeed has customers globally in over 100 countries, empowering single- and multi-location small and medium-sized businesses to compete in an omni-channel market environment by engaging with consumers across online, mobile, social, and physical channels.
The Company’s shares are listed on both the Toronto Stock Exchange ("TSX") and the New York Stock Exchange ("NYSE") under the stock symbol "LSPD".
    2. Basis of presentation and consolidation
These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to the preparation of interim financial statements, including International Accounting Standard ("IAS") 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). Certain information and disclosures have been omitted or condensed. These unaudited condensed interim consolidated financial statements should be read together with the Company’s annual audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2022. Certain comparative figures have been reclassified in order to conform to the current period presentation.
These unaudited condensed interim consolidated financial statements were approved for issue by the Board of Directors of the Company on November 2, 2022.
Seasonality of interim operations
The operations of the Company are seasonal, and the results of operations for any interim period are not necessarily indicative of operations for the full fiscal year or any future period.
Estimates, judgments and assumptions
The preparation of the unaudited condensed interim consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses during the period. These estimates and assumptions are based on historical experience, expectations of the future, and other relevant factors and are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future period affected. Actual results may differ from these estimates.
In preparing these unaudited condensed interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of uncertainty are the same as those applied and described in the Company’s annual audited consolidated financial statements for the fiscal year ended March 31, 2022.
    3. Significant accounting policies
The same accounting policies and methods of computation were followed in the preparation of these unaudited condensed interim consolidated financial statements as were followed in the preparation of the most recent annual audited consolidated financial statements.
6
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares and per share amounts)
    4. Revenues
Three months ended September 30,Six months ended September 30,
20222021

20222021
$
$

$$

Subscription revenue74,494 59,374 148,054 109,299 
Transaction-based revenue101,304 65,023 192,828 121,476 
Hardware and other revenue7,901 8,821 16,699 18,363 
Total revenues183,699 133,218 357,581 249,138 
    5. Direct cost of revenues

Three months ended September 30,

Six months ended September 30,
2022202120222021
$
$

$$
Subscription cost of revenue20,657 17,754 41,080 32,371 
Transaction-based cost of revenue70,011 39,472 132,912 71,661 
Hardware and other cost of revenue11,562 11,046 24,595 22,587 
Total direct cost of revenues102,230 68,272 198,587 126,619 
    6. Employee compensation
The total employee compensation comprising salaries and benefits, excluding government assistance, for the three and six months ended September 30, 2022, was $96,912 and $199,123 (September 30, 2021 – $85,046 and $151,048, respectively).
Share-based compensation and related costs were included in the following expenses:
Three months ended September 30,Six months ended September 30,
2022202120222021
$$$$
Direct cost of revenues2,212 1,799 4,458 2,994 
General and administrative8,626 6,805 18,711 10,174 
Research and development9,984 7,956 20,869 12,160 
Sales and marketing14,106 12,238 29,192 20,145 
Total share-based compensation and related costs34,928 28,798 73,230 45,473 
As at September 30, 2022, the Company had 11,277,494 options, 4,638,239 restricted share units, 47,980 deferred share units, and 619,640 performance share units which include non-market performance conditions outstanding (September 30, 2021 - 7,912,551, 1,508,256, 18,753 and 75,182, respectively).
7
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares and per share amounts)
    7. Finance income and costs
Three months ended September 30,Six months ended September 30,
20222021

20222021
$
$

$$

Interest income5,388 1,406 8,104 2,401 
Interest expense(537)(687)(1,246)(1,456)
Net interest income4,851 719 6,858 945 
    8. Loss per share
The Company has stock options and share awards as potentially dilutive securities. Diluted net loss per share excludes all potentially-dilutive shares if their effect is anti-dilutive. As a result of net losses incurred, all potentially-dilutive securities have been excluded from the calculation of diluted net loss per share because including them would be anti-dilutive. Therefore, basic and diluted number of shares is the same for the three and six months ended September 30, 2022 and 2021. All outstanding potentially dilutive securities could potentially dilute loss per share in the future.

Three months ended September 30,

Six months ended September 30,
2022202120222021
Issued Common Shares
150,315,764 143,123,961 150,315,764 143,123,961 
Weighted average number of Common Shares – basic and diluted149,688,692 138,796,551 149,332,947 134,839,363 
Net loss per share – basic and diluted$(0.53)$(0.43)($1.21)($0.80)
The weighted average number of potentially dilutive securities that are not included in the diluted per share calculations because they would be anti-dilutive was 17,300,048 and 17,349,949 stock options and share awards for the three and six months ended September 30, 2022 (September 30, 2021 - 9,624,133 and 8,894,627).
    9. Trade and other receivables
September 30,
2022		March 31,
2022
$
$
Trade receivables26,361 22,894 
Allowance for expected credit losses(3,285)(3,043)

Trade receivables, net23,076 19,851 
Research and development tax credits receivable6,475 4,195 
Sales tax receivable6,116 6,323 
Merchant cash advances12,641 6,300 
Indemnification receivables8,811 9,097 
Total trade and other receivables57,119 45,766 
The indemnification receivables are for indemnities on certain income tax payables and other liabilities assumed through our acquisitions.
8
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares and per share amounts)
    10. Other current assets
September 30,
2022		March 31,
2022
$
$
Restricted cash and restricted deposits1,305 1,531 
Prepaid expenses and deposits13,074 20,478 
Commission asset10,701 8,959 
Contract asset and other6,447 4,567 
Total other current assets31,527 35,535 
    11. Goodwill
Impairment analysis
During the six months ended September 30, 2022, the Company's share price and therefore its market capitalization decreased. The carrying amount of the Company's net assets exceeded the Company's market capitalization as at September 30, 2022. This triggered an impairment test to be performed for the Company's operating segment (the "Segment") which is the level at which management monitors goodwill. Impairment, if any, is determined by assessing the recoverable amount of the Segment. The Segment's recoverable amount is the higher of the Segment's fair value less costs of disposal and its value in use.
The Company completed an impairment test of goodwill as at September 30, 2022 using a fair value less costs of disposal model which demonstrated no impairment of goodwill as at September 30, 2022. Fair value less costs of disposal is a Level 3 measurement (see note 19). Fair value less costs of disposal is based on a discounted cash flow model involving several key assumptions that were used in the test for goodwill impairment. Adjusted EBITDA was determined as a valuation basis, using a five-year projection based on the Company's actual performance and management’s best estimates. A terminal value was calculated based on revenues, with a weighted average cost of capital reflecting the current market assessment being used. The costs to sell were assumed to be 2.5% of the fair value amount. The carrying value of the Segment was compared with the fair value less costs of disposal to test for impairment.
Goodwill is more susceptible to impairment risk if business operating results or economic conditions deteriorate and actual results do not meet the Company's forecasts. A reduction in the terminal value multiple, an increase in the pre-tax discount rate or a decrease in the revenue growth rate could cause impairment in the future. The determination of the recoverable amount involves the use of estimates by management and can have a material impact on the respective value and ultimately the amount of any impairment.
The following table indicates the values by which key assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount:
Key AssumptionsValue Used in Impairment ModelValue For Carrying Amount to Equal Recoverable Amount
Discount Rate (%)30 %34 %
Terminal Value Multiple3.42.8
Revenue Growth Rate (%)32 %28 %
9
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares and per share amounts)
    12. Other long-term assets
September 30,
2022		March 31,
2022
$
$

Restricted cash136 260 
Prepaid expenses and deposits4,024 5,945 
Commission asset12,505 9,604 
Contract asset8,235 5,591 
Investments1,552 — 
Total other long-term assets26,452 21,400 
    13. Accounts payable and accrued liabilities
September 30,
2022		March 31,
2022
$$

Trade payables37,013 39,245 
Accrued compensation and benefits20,003 25,238 
Accrued payroll taxes on share-based compensation2,929 3,594 
Acquisition-related payables6,403 5,527 
Sales tax payable3,441 3,861 
Other3,673 842 
Total accounts payable and accrued liabilities73,462 78,307 
    14. Contingencies, Provisions and Commitments
Contingencies
Beginning in October 2021, the Company and certain of the Company's officers and directors were named as defendants to an application for authorization to bring a securities class action filed before the Superior Court of Quebec, and the Company and certain of the Company's officers and directors were named as defendants in a securities class action brought in U.S. district court for the Eastern District of New York (a separate action brought in the Southern District of New York was voluntarily dismissed after a lead plaintiff was appointed in the Eastern District of New York action). The application and action are sought on behalf of purchasers of the Company's Common Shares, and are based upon allegations that the defendants made false and/or misleading statements to the public and seek unspecified damages. On June 27, 2022, the Company filed a motion to dismiss the securities class action brought in the U.S. district court for the Eastern District of New York. Plaintiffs to the securities class action brought in the U.S. district court for the Eastern District of New York filed an opposition to the Company's motion to dismiss, and the Company filed a reply. The Company and management intend to vigorously defend against each of these proceedings.
On October 22, 2021, CloudofChange, LLC, a non-practising entity, filed a patent infringement lawsuit against the Company in the Western District of Texas. The patents at issue in the suit include U.S. Patents Nos. 9,400,640, 10,083,012 and 11,226,793. These patents generally relate to web-based point of sale builder systems. The Company and management intend to vigorously defend against the action.
10
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares and per share amounts)
The Company has not provisioned for the above-mentioned matters as the outcome is not determinable nor the amount of loss, if any, reasonably estimable given the present stage of the proceedings in each case.
Provisions
The Company is involved in litigation and claims in the normal course of business. Management is of the opinion that any resulting provisions and ultimate settlements would not materially affect the financial position and operating results of the Company.
Restructuring
During the six months ended September 30, 2022, the Company implemented a restructuring plan for its operations. The restructuring expense consists entirely of costs related to terminations of employment for a total of $603 and $1,810 for the three and six months ended September 30, 2022, respectively (September 30, 2021 - nil and $197).
Commitments
During the six months ended September 30, 2022, the Company increased its commitments from those disclosed in its annual audited consolidated financial statements for the fiscal year ended March 31, 2022. The Company renegotiated certain contracts with service providers which include additional commitments of $18,940 over the next four fiscal years.
    15. Credit facility
The Company had credit facilities with the Canadian Imperial Bank of Commerce ("CIBC"), which included a $25,000 demand revolving operating credit facility (the "Revolver") and a $50,000 stand-by acquisition term loan, $20,000 of which was uncommitted (the "Acquisition Facility", and together with the Revolver, the "Credit Facilities"). The Acquisition Facility was drawn for $30,000 in January 2020 for the acquisition of Lightspeed POS Germany GmbH (formerly Gastrofix GmbH) and was set to mature 60 months thereafter. On July 6, 2022, the Company repaid in full the balance outstanding under the Acquisition Facility, including all accrued and unpaid interest and the Acquisition Facility was terminated. Prior to the repayment, excluding unamortized financing costs, the balance drawn on the Acquisition Facility was $30,000.
The Revolver is subject to certain general and financial covenants, including the delivery of annual audited consolidated financial statements to the holders. The Revolver is secured by all material assets of the Company. The Company was in compliance with covenants as at September 30, 2022.
On October 28, 2022, the Company amended the Revolver to, among other things, reduce the size of the Revolver to $5,000 and facilitate greater operating flexibility (the "Amended Revolver"). The Amended Revolver will be available for letters of credit or letters of guarantee for general corporate and working capital purposes. The Amended Revolver is subject to certain general covenants, including making available annual audited consolidated financial statements, and is secured by material assets of the Company.
    16. Share capital

The Company’s authorized share capital consists of (i) an unlimited number of Subordinate Voting Shares and (ii) an unlimited number of preferred shares, issuable in series. All references to Common Shares refer to Subordinate Voting Shares in the Capital of Lightspeed.
11
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares and per share amounts)
    17. Accumulated other comprehensive income (loss)
Foreign currency differences on translation of foreign operations
Hedging reserve
Total accumulated other comprehensive income (loss)
202220212022202120222021
$$$$$$
Balance as at March 31,2,654 9,715 23 — 2,677 9,715 
Other comprehensive loss(15,522)(4,125)(2,778)(945)(18,300)(5,070)
Balance as at September 30,(12,868)5,590 (2,755)(945)(15,623)4,645 
Foreign exchange forward contracts
The Company designates certain foreign exchange forward contracts as cash flow hedges when all the requirements in IFRS 9, Financial Instruments are met. The Company's currency pair used for cash flow hedges is US dollar / Canadian dollar. The notional principal of the foreign exchange contracts was $54,625 CAD as at September 30, 2022 (March 31, 2022 - $26,000 CAD).
    18. Related party transactions
Key management personnel includes the C-Level executives, and other Executive Vice-Presidents. Other related parties include close family members of the key management personnel and entities controlled by the key management personnel.
The executive compensation expense to the top five key management personnel is as follows:
Three months ended September 30,Six months ended
September 30,
2022202120222021
$$$$

Short-term employee benefits685 620 1,414 1,206 
Share-based payments6,314 8,728 13,325 10,345 
Total compensation paid to key management personnel6,999 9,348 14,739 11,551 
    19. Financial instruments
Fair value
The Company measures the fair value of its financial assets and financial liabilities using a fair value hierarchy. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value. The different levels of the fair value hierarchy are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Other techniques for which inputs are based on quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation techniques for
12
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2022 and 2021
(expressed in thousands of US dollars, except number of shares and per share amounts)
which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the asset or liability;
Level 3: Techniques which use inputs that have a significant effect on the recognized fair value that require the Company to use its own assumptions about market participant assumptions.
The Company estimated the fair value of its financial instruments as described below.
The fair value of cash and cash equivalents, restricted cash and restricted deposits, trade receivables, trade accounts payable, accrued compensation and benefits, and other accruals is considered to be equal to their respective carrying values due to their short-term maturities.
The fair value of accrued payroll taxes on share-based compensation approximates its carrying value as at September 30 and March 31, 2022.
Recurring fair value measurements
The fair value of foreign exchange forward contracts was determined based on Level 2 inputs, which included period-end mid-market quotations for each underlying contract as calculated by the financial institution with which the Company has transacted. The quotations are based on bid/ask quotations and represent the discounted future settlement amounts based on current market rates.
The fair value of merchant cash advances was determined based on Level 3 inputs by calculating the present value of the future estimated cash flows based on the terms of the agreements. The fair value of investments was determined based on Level 3 inputs using the prices for financial instruments stemming from private investments that the Company participated in.
As at September 30 and March 31, 2022, financial instruments measured at fair value in the unaudited condensed interim consolidated balance sheets were as follows:
September 30, 2022March 31, 2022
Fair
value
hierarchy
Carrying
amount
Fair
value
Fair
value
hierarchy
Carrying
amount
Fair
value
$
$

$$

Assets:
Cash and cash equivalents
Level 1862,576 862,576 Level 1953,654 953,654 
Restricted cash and restricted depositsLevel 11,441 1,441 Level 11,791 1,791 
Merchant cash advancesLevel 312,641 12,641 Level 36,300 6,300 
Foreign exchange forward contractsLevel 200Level 22323
InvestmentsLevel 31,552 1,552 — — — 
Liabilities:
Foreign exchange forward contractsLevel 22,755 2,755 Level 200
13