Equibles

6-K

MICROMEM TECHNOLOGIES INC (MMTIF)

6-K 2022-06-30 For: 2022-04-30
View Original
Added on April 12, 2026

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 6-K

Report of Foreign Private IssuerPursuant to Rule 13a-16 or 15d-16 ofthe Securities Exchange Act of 1934

April 2022

Commission File Number 0-26005

MICROMEM TECHNOLOGIES INC.

121 Richmond Street West, Suite 304, Toronto, ON M5H 2K1

[Indicate by checkmark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.]

Form 20-F [X]     Form 40-F [  ]

[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 [X]

[If "Yes" is marked, indicate below the file number assigned to the registrant in connection with rule 12g3-2(b):        N/A

This report on Form 6-K is hereby incorporated by reference in the registration statement on Form F-3 (Registration No. 333-134309) of Micromem Technologies Inc. and in the prospectus contained therein, and this report on Form 6-K shall be deemed a part of such registration statement from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished by Micromem Technologies Inc. under the Securities Act of 1933 or the Securities Exchange Act of 1934.

SIGNATURES

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, thereunto duly authorized.

MICROMEM TECHNOLOGIES INC.
**** By:/s/ Joseph Fuda
Date: June 29, 2022 Name: Joseph Fuda
Title:   Chief Executive Officer

Exhibit Index

Exhibit Description
99.1 Unaudited Condensed Interim Consolidated Financial Statements for the period ended April 30, 2022
99.2 Management's Discussion and Analysis for the period ended April 30, 2022
99.3 Form 52-109F2 Certification of Interim Filings Full Certificate - CEO
99.4 Form 52-109F2 Certification of Interim Filings Full Certificate - CFO 
Micromem Technologies Inc.: Exhibit 99.1 - Filed by newsfilecorp.com

Micromem Technologies Inc.

Unaudited Condensed Interim Consolidated Financial Statements For the three and six months ended April 30, 2022 and 2021

(Expressed in United States Dollars) (Unaudited)

Micromem Technologies Inc.

Unaudited Condensed Interim Consolidated Financial Statements

For the three and six months ended April 30, 2022 and 2021

(Expressed in United States Dollars) (Unaudited)

Contents

Notice to Shareholders 1
Unaudited Condensed Interim Consolidated Financial Statements:
Unaudited Condensed Interim Consolidated Statements of Financial Position 2
Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) 3
Unaudited Condensed Interim Consolidated Statements of Changes in Equity 4
Unaudited Condensed Interim Consolidated Statements of Cash Flows 5
Notes to the Unaudited Condensed Interim Consolidated Financial Statements 6

Micromem Technologies Inc.

Unaudited Condensed Interim Consolidated Financial Statements

Notice of no auditor review of the condensed interim consolidated financial statements

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the condensed interim consolidated financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements of Micromem Technologies Inc. (the "Company") have been prepared by and are the responsibility of the Company's management and approved by the Board of Directors.

The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada, for a review of condensed interim consolidated financial statements by an entity's auditor.

June 29, 2022

Micromem Technologies Inc.

Unaudited Condensed Interim Consolidated Statements of Financial Position

As at April 30, 2022 and October 31, 2021

(Expressed in United States dollars) (Unaudited)

As at As at
Notes April 30, 2022 October 31, 2021
Assets
Current
Cash 18 $ 50,044 $ 171,397
Prepaid expenses and other receivables 31,698 24,007
Total current assets 81,742 195,404
Property and equipment 5 11,630 26,012
Patents 6 - 3,877
Total assets $ 93,372 $ 225,293
Liabilities
Current
Trade payables and other liabilities 16(b), 18(c) $ 270,598 $ 384,057
Current lease liability 7 8,758 24,788
Convertible debentures 9,18 3,105,682 2,452,402
Derivative liabilities 9,18 636,065 787,081
Total current liabilities 4,021,103 3,648,328
Long-term loan 8 47,513 48,243
Total liabilities 4,068,616 3,696,571
Shareholders' Deficiency
Share capital 10 87,587,681 86,815,836
Contributed surplus 28,206,575 28,197,382
Equity component of convertible debentures 9 14,004 14,004
Accumulated deficit (119,783,504 ) (118,498,500 )
Total shareholders' deficiency (3,975,244 ) (3,471,278 )
Total liabilities and shareholders' deficiency $ 93,372 $ 225,293
Going concern 2
Contingencies 17
Subsequent events 21

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

Approved on behalf of the Board of Directors:
"Joseph Fuda" "Alex Dey"
Director Director

Micromem Technologies Inc.

Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss)

For the three and six months ended April 30, 2022 and 2021

(Expressed in United States dollars) (Unaudited)

Three months ended April 30, Six months ended April 30,
Notes 2022 2021 2022 2021
Operating expenses
General and administrative 14(a) $ 69,129 $ 48,436 $ 112,130 $ 65,801
Professional, other fees and salaries 14(b) 140,789 119,663 325,815 189,060
Recovery on settlement of AP balances 16(b) - (255,767 ) - (255,767 )
Stock-based compensation 11 - - 952 297,726
Travel and entertainment 8,285 2,531 15,252 6,004
Amortization of property and equipment 5 7,186 6,911 14,372 13,796
Write-down of capital assets - 474 - 474
Amortization of patents 6 1,877 2,000 3,877 4,000
Foreign exchange (gain) loss 18(a) 92,968 (145,058 ) 35,124 (9,607 )
Total operating expenses 320,234 (220,810 ) 507,522 311,487
Other expenses
Accretion expense 9 431,179 301,598 1,254,943 566,655
Interest expense on convertible debt 9 110,160 146,254 226,096 264,840
Other financing costs 7, 9 3,057 46,709 7,032 52,136
Loss (gain) on revaluation of derivative liabilities 9 (1,120,783 ) 2,825,809 (1,089,468 ) 3,108,117
Loss on conversion of convertible debentures 9 130,175 10,911 333,896 28,284
Loss on extinguishment of convertible debentures 9 18,139 44,103 44,983 43,356
Total other expenses (428,073 ) 3,375,384 777,482 4,063,388
Income (loss) before income tax provision 107,839 (3,154,574 ) (1,285,004 ) (4,374,875 )
Income tax provision 13 - - - -
Net income (loss) and comprehensive income (loss) $ 107,839 $ (3,154,574 ) $ (1,285,004 ) $ (4,374,875 )
Net income (loss) attributable to common shareholders
Basic $ 107,839 $ (3,154,574 ) $ (1,285,004 ) $ (4,374,875 )
Diluted $ 181,653 $ (3,154,574 ) $ (1,285,004 ) $ (4,374,875 )
Weighted average number of outstanding shares, basic and diluted 12
Basic 445,480,827 422,480,298 443,733,006 416,366,024
Diluted 498,294,138 422,480,298 443,733,006 416,366,024
Income (loss) per share 12
Basic $ - $ (0.01 ) $ - $ (0.01 )
Diluted $ - $ (0.01 ) $ - $ (0.01 )

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

Micromem Technologies Inc.

Unaudited Condensed Interim Consolidated Statements of Changes in Equity

For the three and six months ended April 30, 2022 and 2021

(Expressed in United States dollars) (Unaudited)

Equity
component of
Number of Share Contributed convertible Accumulated
Notes shares capital surplus debentures deficit Total
Balance at November 1, 2021 435,737,734 $ 86,815,836 $ 28,197,382 $ 14,004 $ (118,498,500 ) $ (3,471,278 )
Private placements of shares for cash 10 3,213,674 143,752 - - - 143,752
Subscription for private placements 10 - 51,473 - - - 51,473
Convertible debentures converted into common shares 9 8,240,025 576,620 - - - 576,620
Expiry of convertible debenture conversion option 9 - - 8,241 (8,241 ) - -
Renewal of convertible debentures 9 - - - 8,241 - 8,241
Issuance of stock options 11 - - 952 - - 952
Net loss - - - - (1,285,004 ) (1,285,004 )
Balance at April 30, 2022 447,191,433 $ 87,587,681 $ 28,206,575 $ 14,004 $ (119,783,504 ) $ (3,975,244 )
Balance at November 1, 2020 402,552,453 $ 85,463,642 $ 27,810,586 $ 23,952 $ (117,485,522 ) $ (4,187,342 )
Private placements of shares for cash 10 12,002,432 531,856 - - - 531,856
Convertible debentures converted into common shares 9 10,808,108 411,511 - - - 411,511
Expiry of convertible debenture conversion option 9 - - 2,801 (2,801 ) - -
Renewal of convertible debentures 9 - - - 2,801 - 2,801
Issuance of stock options 11 - - 297,726 - - 297,726
Net loss - - - - (4,374,875 ) (4,374,875 )
Balance at April 30, 2021 425,362,993 $ 86,407,009 $ 28,111,113 $ 23,952 $ (121,860,397 ) $ (7,318,323 )

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

Micromem Technologies Inc.

Unaudited Condensed Interim Consolidated Statements of Cash Flows

For the six months ended April 30, 2022 and 2021

(Expressed in United States dollars) (Unaudited)

Six months ended April 30,
Notes 2022 2021
Operating activities
Net loss $ (1,285,004 ) $ (4,374,875 )
Items not affecting cash:
Amortization of property and equipment 5 14,372 13,796
Write-down of capital assets - 474
Amortization of patents 6 3,877 4,000
Accretion expense 9,15 1,254,943 566,655
Accrued interest on convertible debentures 15 165,781 212,637
Stock-based compensation 11 952 297,726
Loss on conversion of convertible debentures 9 333,896 28,284
Loss (gain) on revaluation of derivative liabilities 9,15 (1,089,468 ) 3,108,117
Loss (gain) on extinguishment of convertible debentures 9,15 44,983 43,356
Foreign exchange loss (gain) 18 46,270 (3,875 )
(509,398 ) (103,705 )
Net changes in non-cash working capital:
Decrease in prepaid expenses and other receivables (7,691 ) (3,880 )
Decrease in trade payables and other liabilities (113,459 ) (287,679 )
Cash flows used in operating activities (630,548 ) (395,264 )
Investing activity
Purchase of property and equipment 5 - (3,191 )
Cash flows used in investing activity - (3,191 )
Financing activities
Repayment of lease liability 7 (16,030 ) 19,061
Proceeds from long-term loan - 17,747
Private placements of shares for cash 10 143,752 531,856
Subscription for private placement 51,473 -
Proceeds from issuance of convertible debentures 15 345,000 324,000
Repayments of convertible debentures 15 (15,000 ) (507,096 )
Cash flows provided by financing activities 509,195 385,568
Net change in cash (121,353 ) (12,887 )
Cash - beginning of period 171,397 191,479
Cash - end of period $ 50,044 $ 178,592
Supplemental cash flow information
Interest paid (classified in operating activities) 9 $ 60,315 $ 52,203
Carrying amount of convertible debentures converted into
common shares 15 $ 576,620 $ 411,511

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

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

1. Reporting entity and nature of business

Micromem Technologies Inc. ("Micromem" or the "Company") is incorporated under the laws of the Province of Ontario, Canada. Micromem is a publicly traded company with its head office located at 121 Richmond Street West, Suite 304, Toronto, Ontario, Canada. The Company's common shares are currently listed on the Canadian Securities Exchange under the trading symbol "MRM" and on the Over the Counter Venture Market under the trading symbol "MMTIF".

The Company develops, based upon proprietary technology, customized sensor applications for companies (referred to as "Development Partners") operating internationally in various industry segments. The Company has not generated commercial revenues through April 30, 2022 and is devoting substantially all its efforts to securing commercial revenue opportunities.

2. Going concern

These unaudited condensed interim consolidated financial statements have been prepared with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.

There are material uncertainties related to conditions and events that cast significant doubt about the Company's ability to continue as a going concern and ultimately on the appropriateness of the use of the accounting principles applicable to a going concern. During the six months ended April 30, 2022, the Company reported a net loss and comprehensive loss of $1,285,004 (2021 - $4,374,875) and negative cash flow from operations of $630,548 (2021 - $395,264). The Company's working capital deficiency as at April 30, 2022 was $3,939,361 (October 31, 2021 - $3,452,924).

The Company's success depends on the profitable commercialization of its proprietary sensor technology. There is no assurance that the Company will be successful in the profitable commercialization of its technology. Based upon its current operating and financial plans, management of the Company believes that it will have sufficient access to financial resources to fund the Company's planned operations through fiscal 2022; however, the ability of the Company to continue as a going concern is dependent upon its ability to secure additional financing and/or to profitably commercialize its technology. These unaudited condensed interim consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

The COVID-19 pandemic creates additional risk for the Company if there is a prolonged industry slowdown in those sectors where the Company currently operates including the oil and gas sectors in particular. To date, the impact of the pandemic has resulted in the layoff of Company staff as of March 27, 2020. The Company has encountered delays in the commercial plans for its technology with its primary target customers. It secured a government backed loan of $60,000 CDN ($47,513 USD) (October 31, 2021 - $60,000 CDN, $48,243 USD) which matures in December 2025 (Note 8). During the six months ended April 30, 2022, the Company received government wage subsidies of $nil CDN ($nil USD) (April 30, 2021 - $73,976 CDN, $58,188 USD) (Note 14(b)(i)).

If the going concern assumption was not appropriate for these unaudited condensed interim consolidated financial statements then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses and the statement of financial position classifications used; in such cases, these adjustments would be material.

3. Basis of presentation

These unaudited condensed interim consolidated financial statements for the three and six months ended April 30, 2022 and 2021 have been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting. The accounting policies and methods of computation adopted in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those followed in the preparation of the Company's audited annual consolidated financial statements for the year ended October 31, 2021. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

These unaudited condensed interim consolidated financial statements were authorized for issuance and release by the Company's Board of Directors on June 29, 2022.

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

3. Basis of presentation (continued)

(a) Basis of consolidation

These unaudited condensed interim consolidated financial statements include the accounts of Micromem Technologies Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. The Company applies the acquisition method to account for business combinations. Acquisition-related costs are expensed as incurred.

The Company's wholly-owned subsidiaries include:

(i) Micromem Applied Sensors Technology Inc. ("MAST") which was incorporated in November 2007 and is domiciled in Delaware, United States. MAST has previously had the primary responsibility for the exploitation of the Company's technologies in conjunction with various strategic partners and customers; MAST has been inactive since October 31, 2018.

(ii) 7070179 Canada Inc. which was incorporated in October 2008 under the Canada Business Corporations Act in Ontario, Canada. The Company has assigned to this entity its rights, title and interests in certain patents, which it previously held, directly, in exchange for common shares of this entity.

(iii) Inactive subsidiaries Domiciled in
Memtech International Inc. Bahamas
Memtech International (USA) Inc., Pageant Technologies (USA) Inc. United States
Pageant Technologies Inc., Micromem Holdings (Barbados) Inc. Barbados

(b) Basis of measurement

These unaudited condensed interim consolidated financial statements have been prepared on the historical cost basis, except for financial instruments designated at fair value through profit and loss which are measured at their fair value.

(c) Functional and presentation currency

These unaudited condensed interim consolidated financial statements are presented in United States dollars ("USD"), which is the functional currency of the Company and all of its subsidiaries.

(d) Use of estimates and judgments

The preparation of these unaudited condensed interim consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed interim consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are reviewed periodically and adjustments are made as appropriate in the reporting period they become known. Items for which actual results may differ materially from these estimates are described as below;

(i) Fair value of options and conversion features

The Company makes estimates and utilizes assumptions in determining the fair value for stock options and derivative liabilities based on the application of the Black-Scholes option pricing model or the binomial option pricing model, depending on the circumstances. These pricing models require management to make various assumptions and estimates that are susceptible to uncertainty, including the volatility of the share price, expected dividend yield, expected term, expected risk-free interest rate, and exercise price in the binomial option pricing model.

(ii) Useful lives and recoverability of long-lived assets

Long-lived assets consist of property and equipment and patents. Amortization is dependent upon estimates of useful lives and impairment is dependent upon estimates of recoverable amounts. These are determined through the exercise of judgment and are dependent upon estimates that take into account factors such as economic and market conditions, frequency of use, anticipated changes in laws, and technological improvements.

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

3. Basis of presentation (continued)

(d) Use of estimates and judgments (continued)

(iii) Income taxes

Income taxes and tax exposures recognized in the unaudited condensed interim consolidated financial statements reflect management's best estimate of the outcome based on facts known at the reporting date. When the Company anticipates a future income tax payment based on its estimates, it recognizes a liability. The difference between the expected amount and the final tax outcome has an impact on current and deferred taxes when the Company becomes aware of this difference.

When the Company incurs losses for income tax purposes, it assesses the probability of taxable income being available in the future, based on budgeted forecasts. These forecasts are adjusted for certain non-taxable income and expenses and specific rules on the use of unused credits and tax losses. When the forecasts indicate that sufficient future taxable income will be available to deduct the temporary differences, a deferred tax asset is recognized for all deductible temporary differences.

(iv) Going concern assumption

The Company applies judgment in assessing whether material uncertainties exist that would cause doubt as to the whether the Company could continue as a going concern.

4. New and revised standards and interpretations issued but not yet effective

Certain pronouncements were issued by the IASB or the IFRIC that are mandatory for accounting periods commencing on or after January 1, 2022. These pronouncements are not applicable or do not have a significant impact to the Company and have been excluded.

5. Property and equipment

As at As at
November 1, Adjustments/ April 30,
2021 Additions Disposals 2022
Cost
Computers $ 18,570 $ - $ (10 ) $ 18,560
Right-of-use assets 74,307 - - 74,307
92,877 - (10 ) 92,867
Accumulated amortization
Computers 12,824 861 - 13,685
Right-of-use assets 54,041 13,511 - 67,552
66,865 14,372 - 81,237
Net book value 26,012 (14,372 ) (10 ) 11,630
As at As at
--- --- --- --- --- --- --- --- --- --- ---
November 1, Adjustments/ April 30,
2020 Additions Disposals 2021
Cost
Computers $ 32,040 $ 3,191 $ (18,741 ) $ 16,490
Right-of-use assets 74,307 - - 74,307
106,347 3,191 (18,741 ) 90,797
Accumulated amortization
Computers 30,077 286 (18,267 ) 12,096
Right-of-use assets 27,021 13,510 - 40,531
57,098 13,796 (18,267 ) 52,627
Net book value $ 49,249 $ (10,605 ) $ (474 ) $ 38,170
Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)
---

6. Patents

As at As at
November 1, Adjustments/ April 30,
2021 Additions Disposals 2022
Cost $ 681,288 $ - $ - $ 681,288
Accumulated amortization 677,411 3,877 - 681,288
Net book value $ 3,877 $ (3,877 ) $ - $ -
As at As at
November 1, Adjustments/ April 30,
2020 Additions Disposals 2021
Cost $ 681,288 $ - $ - $ 681,288
Accumulated amortization 669,411 4,000 - 673,411
Net book value $ 11,877 $ (4,000 ) $ - $ 7,877

7. Leases

(a) Maturity analysis of lease obligations

The following represents a maturity analysis of the Company's undiscounted contractual lease obligations as at April 30, 2022.

CDN
Less than one year $ 12,015

(b) Supplemental disclosure

For the three and six months ended April 30, 2022, the Company recognized $858 and $2,192 (April 30, 2021, $2,603 and $5,582) respectively of interest expense on lease obligations in the unaudited condensed interim consolidated statements of operations and comprehensive loss. The Company further recognized total cash outflow of $18,222 relating to leases in the six months ended April 30, 2022 (2021 - $19,061).

8. Long-term loan

As at April 30, 2022 the Company has obtained a $60,000 CDN ($47,513 USD) (October 31, 2021 - $60,000 CDN, $48,243 USD) interest-free loan from the Government of Canada under the Canada Emergency Business Account ("CEBA") program to cover its operating costs. The term loan matures on December 31, 2025. Repaying the balance of the loan on or before December 31, 2023 will result in a loan forgiveness of $20,000 CDN ($15,838 USD). Effective January 1, 2024, any outstanding balance on the term loan shall bear interest at a rate of 5% per annum. As the Company does not yet know whether they will be able to meet the terms of forgiveness, no amount has been recognized to income.

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

9. Convertible debentures

The Company issues three types of convertible debentures: USD denominated convertible debentures with an equity component, Canadian dollar ("CDN") denominated convertible debentures with an embedded derivative due to variable consideration payable upon conversion caused by foreign exchange, and USD denominated convertible debentures with an embedded derivative caused by variable conversion prices.

During the three and six months ended April 30, 2022, the Company incurred $nil financing costs. During the three and six months ended April 30, 2021, the Company incurred $41,582 of financing costs which primarily consisted of early repayment and administrative fees, all of which were settled in cash. All loan principal amounts and conversion prices are expressed in original currency and all remaining dollar amounts are expressed in USD.

(a) Current period information presented in the unaudited condensed interim consolidated financial statements

Convertible debentures outstanding as at April 30, 2022:
CDN
(equity (embedded (embedded
component) derivative) derivative) Total
Loan principal outstanding $ 1,116,458 2,024,888 570,500
Terms of loan
Annual stated interest rate 12% - 24% 12% - 24% 2% - 10%
Effective annual interest rate 24% 48% - 1875001% 24% - 6408%
Conversion price to common shares 0.03 - 0.07 0.05 - 0.08 (i) - (ii)
Remaining life (in months) 0 - 6 0 - 6 0 - 11
Unaudited condensed interim consolidated statement of financial position
Carrying value of loan principal $ 1,114,749 1,040,779 156,301 2,311,829
Interest payable 438,835 329,443 25,575 793,853
Convertible debentures $ 1,553,584 1,370,222 181,876 3,105,682
Derivative liabilities $ - 303,199 332,866 636,065
Equity component of convertible debentures $ 14,004 - - 14,004

All values are in US Dollars.

For the six months ended April 30, 2022:
CDN
(equity (embedded (embedded
component) derivative) derivative) Total
Unaudited condensed interim consolidated statement of operations and comprehensive loss
Accretion expense $ 13,953 1,236,016 $ 4,974 $ 1,254,943
Interest expense $ 114,857 111,851 $ (612 $ 226,096
(Gain) loss on revaluation of derivative liabilities $ - (1,092,959 ) $ 3,491 $ (1,089,468 )
Loss on conversion of convertible debentures $ - - $ 333,896 $ 333,896
(Gain) loss on extinguishment of convertible debentures $ - 53,483 $ (8,500 $ 44,983
Unaudited condensed interim consolidated statement of changes in equity
Amount of principal converted to common shares $ - - $ 297,600
Amount of interest converted to common shares $ - - $ 5,780
Number of common shares issued on conversion of convertible debentures - - 8,240,025 8,240,025
Unaudited condensed interim consolidated statement of cash flows
Amount of principal repaid in cash $ - - $ 15,000 $ 15,000
Amount of interest repaid in cash $ 8,628 51,687 $ - $ 60,315

All values are in US Dollars.

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

9. Convertible debentures (continued)

For the three months ended April 30, 2022:

CDN
(equity (embedded
component) derivative) Total
Unaudited condensed interim consolidated statement of operations and comprehensive loss
Accretion expense $ 7,087 420,635 $ 431,179
Interest expense (prepayment) $ 59,239 56,622 $ 110,160
Gain on revaluation of derivative liabilities $ - (1,008,840 ) $ (1,120,783 )
Loss on conversion of convertible debentures $ - - $ 130,175
Gain on extinguishment of convertible debentures $ - 26,639 $ 18,139

All values are in US Dollars.

(i) Conversion price defined as 75% multiplied by the average of the lowest 3 closing stock prices for the 10 trading days prior to conversion date.

(ii) Conversion price defined as 75% multiplied by the lowest stock price for the 20 trading days prior to conversion date.

(b) Comparative information presented in the unaudited condensed interim consolidated financial statements

Convertible debentures outstanding as at October 31, 2021:

CDN
(equity (embedded (embedded
component) derivative) derivative) Total
Loan principal outstanding $ 1,037,782 1,989,187 468,600
Terms of loan
Annual stated interest rate 12% - 24% 12% - 24% 2% - 10%
Effective annual interest rate 24.00% 13% - 28735624% 0% - 5525%
Conversion price to common shares 0.03 - 0.07 0.05 - 0.08 (i) - (ii)
Remaining life (in months) 0 - 6 0 - 6 0 - 10
Unaudited condensed interim consolidated statement of financial position
Carrying value of loan principal $ 1,036,124 609,924 172,166 1,818,214
Interest payable 332,605 269,455 32,128 634,188
Convertible debentures $ 1,368,729 879,379 204,294 2,452,402
Derivative liabilities $ - 557,322 229,759 787,081
Equity component of convertible debentures $ 14,004 - - 14,004

All values are in US Dollars.

(i) Conversion price defined as 75% multiplied by the average of the lowest 3 closing stock prices for the 10 trading days prior to conversion date.

(ii) Conversion price defined as 75% multiplied by the lowest stock price for the 20 trading days prior to conversion date.

(b) Comparative information presented in the unaudited condensed interim consolidated financial statements (continued)

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

9. Convertible debentures (continued)

For the six months ended April 30, 2021:

CDN
(equity (embedded (embedded
component) derivative) derivative) Total
Unaudited condensed interim consolidated statement of operations and comprehensive loss
Accretion expense $ 13,947 419,135 $ 133,573 566,655
Interest expense $ 132,197 114,335 $ 18,308 264,840
Loss on revaluation of derivative liabilities $ - 2,862,083 $ 246,034 3,108,117
(Gain) loss on conversion of convertible debentures $ - (5,753 ) $ 34,037 28,284
Loss (gain) on extinguishment of convertible debentures $ 55,100 (11,744 ) $ - 43,356
Unaudited condensed interim consolidated statement of changes in equity
Amount of principal converted to common shares $ - 50,000 $ 110,000
Amount of interest converted to common shares $ 30,200 159,942 $ 2,580
Number of common shares issued on conversion of<br>convertible debentures 1,118,519 7,119,774 2,569,815 10,808,108
Unaudited condensed interim consolidated statement of cash flows
Amount of principal repaid in cash $ 205,100 31,090 $ 218,770 454,960
Amount of interest repaid in cash $ 16,443 19,590 $ 16,170 52,203

All values are in US Dollars.

(b) Comparative information presented in the unaudited condensed interim consolidated financial statements (continued)

For the three months ended April 30, 2021:

CDN
(equity (embedded (embedded
component) derivative) derivative) Total
Unaudited condensed interim consolidated statement of operations and comprehensive loss
Accretion expense $ 7,050 249,624 $ 44,924 301,598
Interest expense $ 81,848 56,734 $ 7,672 146,254
Loss on revaluation of derivative liabilities $ - 2,562,259 $ 263,550 2,825,809
(Gain) loss on conversion of convertible debentures $ - (11,083 ) $ 21,994 10,911
Loss (gain) on extinguishment of convertible debentures $ 55,100 (10,997 ) $ - 44,103

All values are in US Dollars.

(c) Fair value of derivative liabilities outstanding

The fair value of the derivative liabilities is determined in accordance with the Black-Scholes or binomial option-pricing models, depending on the circumstances. The underlying assumptions are as follows:

As at As at
April 30, October 31,
2022 2021
Share price $0.04 $0.05
Exercise price $0.03 - $0.07 $0.03 - $0.07
Volatility factor (based on historical volatility) 89% - 129% 32% - 133%
Risk free interest rate 1.41% - 2.44% 0.17% - 0.55%
Expected life of conversion features (in months) 0 - 11 0 - 10
Expected dividend yield 0% 0%
CDN to USD exchange rate (as applicable) 0.7919 0.8041
Call value $0.00 - $0.04 $0.01 - $0.04

Volatility was estimated using the historical volatility of the Company's stock prices for common shares.

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

10. Share capital

(a) Authorized and outstanding shares

The Company has two classes of shares as follows:

(i) Special redeemable voting preference shares - 2,000,000 authorized, nil issued and outstanding.

(ii) Common shares without par value - an unlimited number authorized. The holders of the common shares are entitled to receive dividends which may be declared from time to time, and are entitled to one vote per share at shareholder meetings of the Company. All common shares are ranked equally with regards to the Company's residual assets.

(b) Private placements

During the six months ended April 30, 2022, the Company completed 4 private placements (2021 - 24 private placements), pursuant to prospectus and registration exemptions set forth in applicable securities law. The Company received net proceeds of $143,752 (2021 - $531,856) and issued a total of 3,213,674 (2021 - 12,002,432) common shares. The Company also received subscriptions for private placements totalling $51,473, in which shares were issued subsequent to April 30, 2022.

11. Stock options

(a) Stock option plan

Until September 8, 2020, under the Company's fixed stock option plan (the "Plan"), the Company could grant up to 18,840,000 shares of common stock to directors, officers, employees or consultants of the Company and its subsidiaries. The exercise price of each option is equal to or greater than the market price of the Company's shares on the date of grant unless otherwise permitted by applicable securities regulations. An option's maximum term under the Plan is 10 years. Stock options are fully vested upon issuance by the Company unless the Board of Directors stipulates otherwise by Directors' resolution.

The Company held its Annual General Meeting of Shareholders on September 8, 2020. The authorized limit for stock options in the Company's plan was increased from 18.84 million options to 27.5 million options at the meeting.

(b) Summary of changes

Number of Weighted average
options exercise price
Outstanding at November 1, 2021 11,700,000 $ 0.06
Granted 25,000 0.09
Expired (1,000,000 ) 0.07
Outstanding at April 30, 2022 10,725,000 $ 0.06
Outstanding at November 1, 2020 2,200,000 $ 0.10
Granted 6,500,000 0.05
Outstanding at April 30, 2021 8,700,000 $ 0.06

(c) Stock options outstanding at April 30, 2022

Weighted average
Remaining
Number of contractual life
Date of issue Expiry date options Exercise price (years)
June 29, 2018 June 29, 2023 2,200,000 0.10 1.2
November 13, 2020 November 13, 2025 6,500,000 0.05 3.5
October 8, 2021 October 8, 2026 1,000,000 0.07 4.4
October 8, 2021 October 8, 2022 1,000,000 0.07 0.4
December 15, 2021 December 15, 2023 25,000 0.09 1.6
Outstanding and exercisable at April 30, 2022 10,725,000 $ 0.06 2.8

(d) Fair value of options issued

The fair value of the stock options issued has been determined in accordance with the Black Scholes option-pricing model. The underlying assumptions are as follows:

Share price at grant date $0.05
Exercise price $0.05
Volatility factor 173%
Risk free interest rate 0.09% - 1.12
Expected life of options in years 2
Expected divided yield 0%
Forfeiture rate 0%
Weighted average Black Scholes value at grant date $0.04

Volatility was estimated using the historical volatility of the Company's stock prices for its common shares.

During the three and six months ended April 30, 2022, the Company recorded an expense of $nil and $952 respectively to the issuance of these stock options (2021 - $nil and $297,726)

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

12. Income (loss) per share

Basic and diluted income (loss) per share are calculated using the following numerators and denominators:

Three months ended April 30, Six months ended April 30,
Numerator 2022 2021 2022 2021
Net income (loss) attributable to common shareholders and used in computation of basic income (loss) per share $ 107,839 $ (3,154,574 ) $ (1,285,004 ) $ (4,374,875 )
Add: adjustments for dilutive effects 73,814 - - -
Net income (loss) attributable to common shareholders and used in computation of diluted income (loss) per share $ 181,653 $ (3,154,574 ) $ (1,285,004 ) $ (4,374,875 )
Denominator
Weighted average number of common shares for computation of basic income (loss) per share 445,480,827 422,480,298 443,733,006 416,366,024
Dilutive effects of convertible features (Note 9) and stock options (Note 11) 52,813,311 - - -
Weighted average number of common shares for computation of diluted income (loss) per share 498,294,138 422,480,298 443,733,006 416,366,024

Basic income (loss) per share amounts are calculated by dividing the net income (loss) attributable to common shareholders for the periods by the weighted average number of common shares outstanding during the periods.

13. Income taxes

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes.

As at April 30, 2022 and October 31, 2021, the Company assessed that it is not probable that sufficient taxable income will be available to use deferred income tax assets based on operating losses in prior years; therefore, there are no balances recognized in the unaudited condensed interim consolidated statements of financial position for such assets.

14. Operating expenses

(a) General and administration

The components of general and administration expenses are as follows:

Three months ended April 30, Six months ended April 30,
2022 2021 2022 2021
General and administration $ 17,226 $ 30,144 $ 28,293 $ 34,023
Rent and occupancy 15,715 477 31,293 2,513
Office insurance 358 - 727
Investor relations, listing and filing fees 34,112 16,497 48,173 26,751
Telephone 1,718 1,318 3,644 2,514
$ 69,129 $ 48,436 $ 112,130 $ 65,801

(b) Professional, other fees and salaries

The components of professional, other fees and salaries expenses are as follows:

Three months ended April 30, Six months ended April 30,
2022 2021 2022 2021
Professional fees $ 30,857 $ 38,461 $ 57,721 $ 74,505
Consulting fees 55,503 30,380 98,003 48,900
Salaries and benefits 54,429 50,822 170,091 65,655
$ 140,789 $ 119,663 $ 325,815 $ 189,060

(i) Wage subsidy

The Canada Emergency Wage Subsidy (CEWS) was announced by the Government of Canada on March 27, 2020. For the three and six months ended April 30, 2022, the Company recognized $nil CDN ($nil USD) and $nil CDN ($nil USD). The subsidies received have been recorded as a reduction of salaries expenses in the unaudited condensed interim consolidated statements of operations and comprehensive income (loss) (2021 - $40,656 CDN ($32,292 USD) and $73,976 CDN ($58,188 USD)).

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

15. Supplemental cash flow information

The following provides a reconciliation of the cash flows from convertible debentures and derivative liabilities :

Six months ended April 30,
2022 2021
Balance - beginning of period $ 3,239,483 $ 3,677,923
Cash flows from financing activities:
Proceeds from issuance of convertible debentures 345,000 324,000
Repayments of convertible debentures (15,000 ) (507,096 )
Non-cash changes:
Accretion expense 1,254,943 566,655
Accrued interest on convertible debentures 165,781 212,637
Loss (gain) on revaluation of derivative liabilities (1,089,468 ) 3,108,117
Loss (gain) on extinguishment of debt 44,983 43,356
Convertible debentures converted into common shares (242,724 ) (383,227 )
Renewal of convertible debentures (8,241 ) (2,801 )
Foreign exchange loss 46,990 (35,017 )
Balance - end of period $ 3,741,747 $ 7,004,547

16. Key management compensation and related party transactions

The Company reports the following related party transactions:

(a) Key management compensation

Key management personnel are persons responsible for planning, directing and controlling activities of the Company, including officers and directors. Compensation paid or payable to these individuals (or companies controlled by such individuals) are summarized as follows:

Three months ended April 30, Six months ended April 30,
2022 2021 2022 2021
Professional, other fees, and salaries $ 33,102 $ 15,298 $ 63,990 $ 26,590
Stock-based compensation - - - 137,400
$ 33,102 $ 15,298 $ 63,990 $ 163,990

During the three and six months ended April 30, 2022, key management were not awarded any options. During the three and six months ended April 30, 2021, the Company awarded 3 million stock options to key management as part of the total 6.5 million stock options issued.

(b) Trade payables and other liabilities

In 2021, the Company reversed certain amounts totalling $422,982 due to the payables being statute barred. These balances carried forward from prior years and the Company eliminated these balances in full year 2021.

(c) Convertible debentures

In January 2018, the CEO of the Company provided for a convertible debenture of $150,000 CDN ($114,086 USD). As at April 30, 2022, $9,483 CDN ($7,413 USD)(October 31, 2021 - $9,483 CDN, $7,657 USD) in loan principal remains outstanding.

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

17. Contingencies

(a) The Company has agreed to indemnify its directors and officers and certain of its employees in accordance with the Company's by-laws. The Company maintains insurance policies that may provide coverage against certain claims.

(b) The Company has previously reported on the lawsuit filed by Mr. Steven Van Fleet against Micromem, the Company's response to the lawsuit and its counterclaims against Mr. Van Fleet.

On April 29, 2021 the matter was resolved in Micromem's favor when the Court dismissed Mr. Van Fleet's claims and ruled that he was liable to the Company and to MAST on their counterclaims. On June 16th, the Court ruled that Micromem and MAST had established damages totaling $765,579 representing the full amount that had been requested; furthermore, the Court awarded costs and statutory prejudgment interest from May 9, 2017. On June 29, 2021 the Court entered a judgement in favor of Micromem and MAST for a total amount of $1,051,739.

With respect to the Company's efforts to collect on that Judgement, a settlement ("Settlement") was reached during October 2021. Pursuant to the Settlement, the Company received an initial one-time payment and is entitled to additional monthly payments over a period of up to six years. The Company will record those payments as and when they are received. The total amount to be received by the Company if Mr. Van Fleet makes all the required payments under the terms of the Settlement will be less than the amount of the Judgement obtained by the Company, but if Mr. Van Fleet does not comply with the terms of the Settlement, it also provides the Company a means of enforcing a larger judgement against Mr. Van Fleet that is substantially in line with the Judgement. Mr. Van Fleet has made the prescribed monthly payments each month since October 2021.

As at October 31, 2021, the Company has recorded recovery of $40,000 received in the period as a reduction of legal expenses. In the six month period ended April 30, 2022 the Company has recorded a recovery of $4,800 received in the period as a reduction of legal expenses (six months ended April 30, 2020 - $nil).

Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)

18. Financial risk management

(a) Currency risk

Currency risk is the risk that the fair value of, or future cash flows from, the Company's financial instruments will significantly fluctuate due to changes in foreign exchange rates. The Company is exposed to currency risk to the extent that it incurs expenses and issues convertible debentures denominated in Canadian dollars (CDN). The Company manages currency risk by monitoring the Canadian position of these monetary financial instruments on a periodic basis throughout the course of the reporting period.

As at April 30, 2022, and October 31, 2021, balances that are denominated in CDN are as follows:

As at As at
April 30, December 31,
2022 2021
CDN CDN
Cash $ 24,211 $ 55,950
Prepaid expenses and other receivables $ 40,028 $ 29,857
Trade payables and other liabilities $ 341,712 $ 17,366
Convertible debentures $ 1,730,316 $ 1,093,684
Derivative liabilities $ 382,880 $ 693,143
Long-term loan $ 60,000 $ 60,000

A 10% strengthening of the US dollar against the CDN would decrease accumulated deficit by $176,424 as at April 30, 2022 (October 31, 2021 - decrease accumulated deficit by $129,992). A 10% weakening of the USD against the CDN would have the opposite effect of the same magnitude.

(b) Interest rate risk

Interest rate risk is the risk that the fair value of, or future cash flows from, the Company's financial instruments will significantly fluctuate due to changes in market interest rates. The Company is exposed to interest rate risk on its interest-bearing convertible debentures. This exposure is limited due to the short-term nature of the convertible debentures.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's policy is to review liquidity resources and ensure that sufficient funds are available to meet financial obligations as they become due. Further, the Company's management is responsible for ensuring funds exist and are readily accessible to support business opportunities as they arise. With the exception of the long-term loan, all financial liabilities are due within 1 year as at April 30, 2022.

(i) Trade payables

The following represents an analysis of the maturity of trade payables:

As at As at
April 30, October 31,
2022 2021
Less than 30 days past billing date $ 270,598 $ 384,057
31 to 90 days past billing date - -
Over 90 days past billing date - -
$ 270,598 $ 384,057

(ii) Convertible debentures and derivative liabilities

The following represents an analysis of the maturity of the convertible debentures and derivative liabilities:

As at April 30, As at October 31,
2022 2021
Convertible Derivative Convertible Derivative
debentures liabilities debentures liabilities
Less than three months $ 2,145,775 $ 153,420 $ 1,609,762 $ 238,802
Three to six months 959,606 230,213 842,451 414,602
Six to twelve months 301 252,432 189 133,677
$ 3,105,682 $ 636,065 $ 2,452,402 $ 787,081
Micromem Technologies Inc.<br><br> <br>Notes to Unaudited Condensed Interim Consolidated Financial Statements<br><br> <br>For the three and six months ended April 30, 2022 and 2021<br><br> <br>(Expressed in United States dollars, unless otherwise noted) (Unaudited)
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18. Financial risk management (continued)

(d) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's cash, development costs receivable, and other receivables. The maximum exposure to credit risk is the carrying value of these financial assets, which amounted to $69,257 as at April 30, 2022 (October 31, 2021 - $189,407). The Company reduces its credit risk by assessing the credit quality of counterparties, taking into account their financial position, past experience and other factors.

(i) Cash

The Company held cash of $50,044 at April 30, 2022 (October 31, 2021 - $171,397). The cash is held with central banks and financial institution counterparties that are highly rated. The Company has assessed no significant change in credit risk and an insignificant loss allowance.

19. Fair value hierarchy

Assets and liabilities recorded at fair value in the unaudited condensed interim consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1 - valuation based on quoted prices (unadjusted) in active markets for identical assets and liabilities. There are no assets or liabilities in this category in these unaudited condensed interim consolidated financial statements.

Level 2 - valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. In these unaudited condensed interim consolidated financial statements, derivative liabilities are included in this category.

Level 3 - valuation techniques using the inputs for the asset or liability that are not based on observable market data. There are no assets or liabilities in this category in these unaudited condensed interim consolidated financial statements.

The Company's policy for determining when transfers between levels of fair value hierarchy occur is based on the date of the event or changes in circumstances that caused the transfer. During the three and six months ended April 30, 2022 and 2021, there were no transfers between levels.

20. Capital risk management

The Company's objectives when managing capital are to (i) maintain its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, (ii) ensure it has sufficient cash resources to further develop and market its technologies and (iii) maintain its ongoing operations. The Company defines its capital as its net assets, i.e. total assets less total liabilities. In order to secure the additional capital necessary to pursue these objectives, the Company may attempt to raise additional funds through the issuance of equity or convertible debentures or by securing strategic partners. The Company is not subject to externally imposed capital requirements and there has been no change with respect to the overall capital risk management strategy during the three and six months ended April 30, 2022.

21. Subsequent events

Subsequent to April 30, 2022:

(a) The Company signed a new three year lease on May 26, 2022 for its Toronto office, effective August 1, 2022. The monthly rent under the new lease agreement will be $4,455 CDN ($3,475 USD)

Micromem Technologies Inc.: Exhibit 99.2 - Filed by newsfilecorp.com
MICROMEM TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br><br> <br>PREPARED AS OF JUNE 29, 2022

NOTICE TO READER

The Management's Discussion and Analysis ("MD&A") report for Micromem Technologies Inc. for the three months ending April 30, 2022, as attached, is dated as of June 29, 2022, consistent with the date of the Independent Registered Public Accounting Firm report and with the original 52-109 CEO and CFO certification filings related thereto.

/s/ Dan Amadori /s/ Joseph Fuda
Dan Amadori, CFO Joseph Fuda, CEO
June 29, 2022 June 29, 2022
MICROMEM TECHNOLOGIES INC.
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MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br>PREPARED AS OF JUNE 29, 2022

INTRODUCTION

The following sets out the Management's Discussion and Analysis ("MD&A") of the financial position and result of operations for the three months ending April 30, 2022, of Micromem Technologies Inc. (the "Company", "Micromem", or "we"). The MD&A should be read in conjunction with the Company's audited consolidated financial statements and accompanying notes for the fiscal years ending October 31, 2021, and 2020 which are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. Additional information regarding the Company is available on the SEDAR website at www.sedar.com.

The Company's shares are traded on the OTCQB under the symbol MMTIF and on the Canadian Securities Exchange ("CSE") under the symbol MRM. Micromem has  several  wholly-owned  subsidiaries including Micromem Applied  Sensor Technologies Inc ("MAST").  MAST was  active  until August 2018  and  has  been inactive  since  then. All of the Company's other subsidiaries  have  been inactive since  inception.

Certain information provided by the Company in this MD&A and in other documents publicly filed throughout the year that are not recitation of historical facts may constitute forward-looking statements. The words "may", "would", "could", "will", "likely", "estimate", "believe", "expect", "forecast" and similar expressions are intended to identify forward-looking statements.

Readers are cautioned that such statements are only predictions, and the actual events or results may differ materially. In evaluating such forward-looking statements, readers should specifically consider the various factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements.

FORWARD LOOKING STATEMENTS

This MD&A contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation ("forward looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as "believes", "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", or "intends" or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken or achieved) are not statements of historical fact, but are "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or developments in the Company's business or in its industry, to differ materially from the anticipated results, performance, achievements, or developments expressed or implied by such forward-looking statements. Forward-looking statements include disclosure regarding possible events, conditions or results of operations that are based on assumptions about future conditions, courses of action and consequences. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions, or circumstances. The Company cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, the successful commercialization of our technology, comments about potential future revenues, joint development agreements and expectations of signed contracts with customers, etc. A number of inherent risks, uncertainties and factors affect the operations, performance and results of the Company and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. Some of these risks and uncertainties include the risk of not securing required capital in future, the risks of not successfully concluding agreements with potential partners on a timely basis and the risks associated with commercializing and bringing to market our technology. These risks are affected by certain factors that are beyond the Company's control: the existence of present and possible future government regulation, competition that exists in the Company's business, uncertainty of revenues, markets and profitability, as well as those other factors discussed in this MD&A report. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements and reference should also be made to the Company's Annual Information Form (prepared and filed in the form of a Form 20-F Annual Report pursuant to The Securities Exchange Act of 1934) for a description of risk factors.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities law.

**********

MICROMEM TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br>PREPARED AS OF JUNE 29, 2022

TABLE OF CONTENTS:

1. OVERVIEW 5
2.  FINANCING 5
3.  BUSINESS DEVELOPMENTS, QUARTER ENDED  APRIL 30, 2022 6
4.  COMMENTARY ON CONVERTIBLE DEBENTURES 9
5.  DISCUSSION OF OPERATING RESULTS 12
6.  RISKS AND UNCERTAINTIES 17
7.  GOING CONCERN 19
8.  OTHER MATTERS 20
9.  SUBSEQUENT EVENTS 23
MICROMEM TECHNOLOGIES INC.
---
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br><br> <br>PREPARED AS OF JUNE 29, 2022

1. OVERVIEW

Micromem is a company that develops customized, proprietary sensor-based solutions for large multinational corporations. Until August 2018, MAST was  traditionally responsible for the development of market opportunities, maintaining customer relationships and the project management of the independent engineering subcontractors that it engaged once a client project was initiated.

In 2021 and in the six months ended April 30, 2022, the Company has had positive new developments in its business initiatives.  It has also experienced client driven delays due to the Covid-19 pandemic in terms of its commercialization strategies for the technology applications that it has been  pursuing. It continued to deal with  very tight working capital constraints and has    been successful in raising additional capital  through to the date of this report.

Our litigation  with  Steve  Van Fleet, who resigned  as  an officer  and  director of  the  Company  on  August  17, 2018 was resolved  in our  favor  in 2021 ;  claims  against  the  Company  were  dismissed  and  the  Company  was  awarded  damages  of $1.058 million in the  settlement  of this  litigation. Since October 2021, we have been receiving monthly payments from Mr. Van Fleet as part of the settlement agreement that we executed with him.

2. FINANCING

In Q2 2022 the Company secured $19,867 of financing from private placements (Q2 2021: $434,472) and received proceeds of $156,000 (Q2 2021: $281,000) from the issuance of convertible debentures (referred to interchangeably as "debentures" or "convertible loans" or "loans" throughout this document). The Company issued 3,646,545 common shares relating to the conversion by debenture holders of their debentures totaling $217,133 during Q2 2022 (Q2 2021: issued 1,289,506 common shares relating to conversion of debentures totaling $97,901).

The Company's convertible debt structure is complex with 3 broad categories of such debt: (i) $CDN denominated debt with fixed conversion prices; (ii) $US denominated debt with fixed conversion prices, and (iii) $US denominated debt with variable conversion prices.  The term of the debt in each instance is typically between 4 months and 12 months.  To  date , the Company has repaid certain convertible loans at maturity when due as requested by the debenture holder or converted the debenture into common shares at the request of the debenture holder or extended the term of the debenture through negotiations with the debenture holder - in this latter case, certain terms of the loan - interest rate and/or conversion price - have, in some instances, been adjusted as part of the extension.

Under IFRS reporting, such loans require quarterly remeasurements.  The application of the remeasurement methodology is very specific. This is more fully discussed in Section 2; in summary, there are several non-cash related income and expense charges that arise from such remeasurements.  We recorded the following non-cash charges in the period ending April 30, 2022 and 2021 none of which impact the Company's cash flows:

For the 6 months ended April 30 2022 2021 Change
Accretion expense $ 1,254,943 $ 566,655 $ 688,288
Loss on conversion of convertible debentures 333,896 28,284 305,612
Loss on revaluation of derivative liabilities (1,089,468 ) 3,108,117 (4,197,585 )
Loss (gain)on extinguishment of convertible debentures 44,983 43,356 1,627
Net expense $ 544,354 $ 3,746,412 $ (3,202,058 )

3. BUSINESS DEVELOPMENTS IN 2022:

(a) Chevron:

As previously reported, successful field testing of the interwall tracer device was conducted on-site at a California-based Chevron well site in 2019.  Sample testing was conducted for a 12-month period thereafter through March 2020.

We attended the Houston- based OTC oil and gas conferences in August 2021 and in May 2022 and  have maintained a current dialogue with Chevron and with other industry participants since then.

While Chevron has curtailed further development activity on this project after the onset of the COVID-19 pandemic, it continues to have interest in our interwell tracer technology. The Company awaits Chevron's commercialization plans for this technology and we anticipate new  developments  in the  2022 fiscal year.

Senior management at Chevron have, to date, been very supportive of Micromem's engagement with Romgaz.

(b) Romgaz:

The COVID-19 pandemic has to  date resulted in delays in the execution of our commercial activity with Romgaz .

We  have previously referenced in our  periodic MD&A commentaries  that we were awaiting initial purchase orders for the interwell tracer technology application. These discussions have been very  active  during the  quarter ended  April 30, 2022  and  through to  the  date  of  this report.  The key go-forward points in these discussions, at the current date, are as follows:

(i) We are anticipating an initial purchase order for up to 10 interwell tracer devices, similar to the technology that Chevron deployed in the California field trials referenced above.

(ii) Micromem will be commissioned to conduct/lead a development program to enhance and expand the analytics capabilities of the existing technology with the end goal of delivering a comprehensive analytics solution to Romgaz for its specific performance requirements in its gas  and  oil wells.

(iii) Micromem and Romgaz are pursuing discussions whereby the technology application developed in (ii)  above will be manufactured on a commercial scale in Romania.  It is expected that the technology that will be manufactured in Romania will be suitable for both oil and gas well applications.

(iv) A joint venture agreement between Micromem and Romgaz is contemplated. The working relationship between Micromem and Romgaz is expected to expand to include the development of other technology applications where Micromem has been active over the past five years.  We expect to finalize these working arrangements and move forward with these initiatives in 2022.  It is expected that Romgaz will provide the initial capital to launch this expanded working relationship.

To this  end, Micromem has  now  completed a comprehensive  business strategy  and  go  forward  plan  which  it  is  sharing with  Romgaz for implementation  in 2022.

In anticipation of these developments with Romgaz in 2022, Micromem has  planned  for its business activity to include the following components:

(i) Continuance of its working relationship with the developer of the ARTRA 171 technology which Chevron has successfully tested in onsite testing of operating oil wells and for which we anticipate Romgaz purchase orders in 2022.

(ii) We  maintain  our  dialogue  with Chevron  and  may pursue  certain licensing  opportunities    relating  to  their  proprietary  technology  in our  continued  work  with Romgaz.

(iii) In mid 2021, we  established  a Toronto - based  engineering/product development  team    in  cooperation with  an established  manufacturing  and  engineering group  whom  we  expect  to have a significant role in future  as a strategic partner to Micromem.

(iv) In  June  2021, Micromem  hired two  engineering  staff persons  through the University  of Toronto  coop  program , each  for  a  16 month  term . The  engineering  staff  are responsible  for  supporting  all of  Micromem's current  initiatives  with  Chevron, Romgaz  and  other  potential customers.

(v) We will plan to add additional senior management to the Micromem team  in  the project management ,engineering  and financial reporting areas of discipline .We will also look to recruit  additional corporate  directors to our Board.

( c ) Repsol S.A. ("Repsol"):

With  our additional engineering  staff resources  in Toronto, we have  begun to  reconfigure  the  RT Lube  Analyzer technology  in  which  Repsol  has  previously  expressed interest  and  for  which  we  negotiated  a  letter  of  intent  with Repsol in 2019.  While we have not had any  interaction with  Repsol since  the onset of  the  Covid -19  pandemic, we  intend  to resume  discussions  with Repsol in 2022.

(d) Covid 19 update:

The impact on the Company's  internal operations of the COVID-19 pandemic through to the  date  of  this  report  is discussed below; we believe have taken the appropriate steps to maintain our business and to protect our  staff to ensure their well-being:

(i) We closed the office in mid-March 2020, and it remains closed as of the date of this report.  Our staff is working remotely from their homes.

(ii) We utilized the Canada Employment Wage Subsidy program from the Canadian Federal Government to support our payroll obligations from April 2020 through  October  2021 and  received  total subsidies  of CDN $167,388 ( $133,699 USD) under this  program. This  program  has since  been  cancelled  by the Federal Government .

(iii) We  utilized the Canadian Federal Government Small Business loan program and have secured term  loans totaling CDN $60,000 ($48,243 USD) which is as described in our consolidated financial statements. These term loans are interest free until December 31, 2023 and mature on December 31, 2025.  Repaying the balance of the loan on or before December 31, 2023 will result in a forgiveness of $20,000 CDN ($15,838 USD).

(iv) We utilized the  Canadian Emergency  Bank  Account Loan program ****** to  support  our  office  rental expense  obligations  between  June  2020  and  September  2021 and  received  total subsidies  of CDN $38,440 ($30,703 USD) under this  program. This program has since been cancelled by the Federal Government.

(v) Business related  travel  has  been  significantly  reduced  after  March 2020.

(vi) Micromem's senior  management team have, since  2019 and  through to the  date  of  this report,  continued  at  reduced  remuneration  levels.

There remains  uncertainty as to the duration of the pandemic.  If the pandemic continues for an extended period of time in 2022 and  beyond, there will  be additional repercussions to the Company's ongoing business which could be significant.

******************

MICROMEM TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br><br> <br>PREPARED AS OF JUNE 29, 2022

4.  COMMENTARY ON CONVERTIBLE DEBENTURES:

This section of the report is intended to provide readers with additional information as to the nature of the reporting requirements, procedures, and impact of the convertible debt financings    that the Company has completed. The objective is to facilitate the reader's understanding of this complex aspect of the Company's financial statements.

(1) Overview: convertible debenture reporting

(a) We are required under IFRS reporting standards to measure the components of our convertible debt including the debt, the derivative liability, and the equity component of the face value of the debt, as appropriate, upon execution of the loan agreement with the lender.

(b) The measurement methodology that we employ is in accordance with prescribed guidelines under IFRS and International Accounting Guidelines. This methodology is either a Black Scholes pricing model or a binomial distribution measurement model, depending on which model is more suitable in each case. That determination is based on a subjective assessment by the Company.

(c) When we secure a convertible debenture from an investor, the terms which are finalized through negotiation with the investor will vary on a case-by-case basis in terms of the following aspects:

(i) Term (typically 2 months to 12 months).

(ii) Interest rate (typically 1 to 2% per month but, in some cases, between 5% - 10% per annum; in yet  one  other case,  the interest  rate  is  2%  per annum).

(iii) Conversion price which may be fixed at initiation date or fixed after 6 months based on a formulaic calculation, denominated in Canadian dollars or U.S. Dollars, the latter being the functional currency of the Company and its subsidiaries.

(iv) The option for the Company to prepay the loan during the entire term of the loan or within an initial period of the term of the loan (typically up to 6 months).

(d) At the maturity date of the debenture, the debenture holder may agree to extend the term of the loan for an additional period of time, either on the same basic terms as already exist or on renegotiated terms.

(2) Accounting measurements and periodic reporting of convertible debentures:

(a) To the extent that there is a derivative liability that arises in the initial measurement (1(b) above), we are required to revalue the derivative liability at each quarter end using prescribed Black Scholes or binomial methodology. Then, on a quarterly basis, we are required to report this gain or loss on the revaluation in our quarterly consolidated statements of income.

(b) To the extent that the face value of the loan - which is due at the maturity date - is greater than the amount that is assigned to the loan component of the total amount at inception of the loan (1(a) above), then this difference must be accreted over the term of the loan.  Typically, the loan term is from 2 months to 12 months.  Thus, over the term of the loan, we are required to report this accretion amount as an expense in our quarterly consolidated statements of income.

(c) To the extent that a loan is converted into common shares by the debenture holder, we will close out the loan at that point, record remaining accretion expense up to the date of conversion, remeasure the derivative liability to nil and calculate a net gain or loss on conversion of the loan.  The net gain or loss is reported in our consolidated statements of income.

(3) Impact on financial reporting:

The realities and complexities of these prescribed accounting treatments give rise to complicated disclosures in our financial statements and footnotes:

(a) We report substantial accretion expense in our periodic  financial statements.

(b) Over time, barring significant volatility in the share price, we generally report a gain on the settlement of the derivative liabilities. However, the  quarterly revaluations  of the derivative liabilities  can  result  in significant  quarterly  fluctuations.

(c) The calculated effective interest rate on debt can be substantial. To illustrate,(for example) if the reported  fair value of the debt is a small fraction of the face value at inception and it must be accreted to face value over the term (for example 2 months) then the effective rate of interest will be as high (in these reported financials) as 6,408% or higher, representing the rate that would be required  to step up the  reported value to the face value in the short period of the term of the loan.

It is essential, when reviewing our periodic consolidated financial statements, to bear in mind the following:

a) Accretion expense is a non- cash item.

b) Gain or loss  on revaluation of derivatives in a non -cash item.

c) Gain or loss  on extinguishment of debentures  is a non -cash item.

d) Gain or loss  on conversion of debentures to common shares is a non -cash item.

The total non-cash expense (income) relating to items (a) - (d) above reported in the quarter ended April 30, 2022 was $(541,290); quarter ended April 30, 2021: $3,182,421.

(4) Additional Comments:

The Company notes the following:

a) We have had to resort to convertible debentures financing as a primary means of securing financing over the past several years in order to continue our operations.

b) The actual interest expense on our convertible debentures which is interest paid to the debenture holders, is at a coupon rate ranging between 1% and 2% per month (in one  case  at  a rate  of 2% per annum). The effective rate referenced above is an accounting measurement metric, not a payable obligation.

c) The use of convertible debentures has served to increase our outstanding number of shares over the past few years. In the quarter ended April 30, 2022, the Company issued 3,646,545 common shares in settlement of $217,113 of debentures which were converted to common shares by the debenture holders (year  ended  October  31, 2021; 15,611,852 shares  issued  to  settle $511,630; quarter ended  April 30, 2021: 1,289,506 shares issued  to settle $97,901).

d) The total actual amount that the Company reports as outstanding for debentures at April 30, 2022 is $3,105,682 consisting of $2,311,829 of principal and $793,853 of accrued  interest.

e) At April 30, 2022 we report a total of 447,191,433 common shares outstanding (October 31, 2021: 435,737,734 common shares; April 30, 2021: 425,362,993 common shares).

The Company plans to deemphasize or eliminate this complex and expensive source of financing in future as it develops and grows its business and is better able to secure more conventional, lower cost financing.

******************

MICROMEM TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL THREE MONTHS ENDED APRIL 30, 2022<br><br> <br>PREPARED AS OF JUNE 29, 2022

5.  DISCUSSION OF OPERATING RESULTS:

(a)  Financial Position as at April 30, 2022:

April 30, 2022 October 31, 2021
(US 000) (US 000)
Assets:
Cash 50 171
Prepaid expenses and other receivables 32 24
82 195
Property and equipment, net 12 26
Patents, net - 4
94 225
Liabilities:
Accounts payable and accrued liabilities 271 384
Current lease liability 9 25
Convertible debentures 3,106 2,452
Derivative liability 636 787
4,022 3,648
Long-term lease liability 47 -
Long-term lease loan - 49
4,069 3,697
Shareholders' Equity:
Share capital 87,588 86,816
Contributed surplus 28,207 28,197
Equity component of bridge loans 14 14
Deficit (119,784 (118,499
(3,975 (3,472
94 225

All values are in US Dollars.

Commentary:

  1. The Company's working capital deficiency is $3,939,361 on April 30, 2022 (at October 31,2021: deficiency of $3,452,924).

2 In 2019, the Company evaluated its patent portfolio and its go forward strategy for its intellectual property portfolio. It decided that it would suspend its provisional patent filings in jurisdictions outside the United States where it has been issued several patents.

For financial reporting purposes the Company reflects an amortized value of $nil as its patent assets at April 30, 2022. The Company believes that its patents remain as an asset to be exploited in future through the pursuit of licensing agreements with potential strategic partners.

  1. The Company continued to secure additional financing in 2022 through convertible bridge loans. Given the terms of the debentures, the Company has measured, as appropriate, the prescribed accounting treatment for these loans and the related derivatives.  These loans were typically of a short-term nature and, in many cases, renewed on multiple occasions; the related financial reporting has become progressively more complex .Refer to Section 4 of this report for additional commentary.

The balance reported as convertible loans at April 30, 2022, is $3,105,682 (at October 31, 2021: $2,452,402) and the related derivative liability balance is $636,065 (at October 31,2021: $787,081).

The Company reports  the  following  charges  to the  consolidated  statements of income:

a) accretion expense on these debentures of $431,179 for the quarter ended April 30, 2022 (quarter ended April 30, 2021: $301,598).

b) a loss on the conversion of bridge loans to share capital of $130,175 for the quarter ended April 30, 2022 (for the quarter ended April 30, 2021: loss of $10,911).

c) a (gain) on the revaluation of the derivative liabilities of $(1,120,783) for the quarter ended April 30, 2022 (a loss on revaluation of $2,825,809 for the quarter ended April 30, 2021).

d) a loss on extinguishment of convertible debentures of $18,139 for the quarter ended April 30, 2022 (a loss of $44,103 for the quarter ended April 30, 2021).

Management generally employs a Black Scholes valuation model although, for certain of the loan transactions contracted for, it uses a binomial measurement model.

Management acknowledges that the cost of financing to the Company is significant; interest on the convertible  debentures  is substantial. We reported interest expense of $110,160 for the quarter ended April 30, 2022; interest expense  of $146,254 for  the quarter ended  April 30, 2022.

  1. The Company secured funding from various sources, the significant components include:
3months ended 12months ended 3months ended
April 30, 2022 October 31, 2021 April 30, 2021
Private placements $ 19,867 $ 840,567 $ 434,476
Bridge loan financing 156,000 510,000 281,150
Bridge loan settlements for shares 217,113 511,630 97,901
$ 392,980 $ 1,862,197 $ 813,527

5. Operating Results:

The following table summarizes the Company's operating results for the three months ended  April 30, 2022, and 2021:

Discussion of operating Results

Quarter ended April 30,
2022(000) 2021(000)
Administration 69 48
Professional fees and salaries 141 120
Stock-based compensation - -
Travel and entertainment 8 3
Recovery on settlement of AP balances - (256
Amortization of property and equipment 7 7
Amortization of patents 2 2
Foreign exchange (gain) loss 94 (145
Accretion expense 431 302
Interest expense convertible debt 110 146
Other financing costs 3 47
Loss (gain) on revaluation of derivatives liabilities (1,121 2,825
Loss on conversion of convertible debentures 130 11
Loss on extinguishment of convertible debentures 18 44
Net expenses (income) (108 3,154
Net comprehensive (income) loss (108 3,154
Income (loss per share) - (0.01

All values are in US Dollars.

Quarter ended April 30, 2022 compared to Quarter ended April 30, 2021

a) Administration costs were $69,126 versus $48,436 in 2021.  These costs include rent and occupancy cost, investor relations, listings and filing fees and other general and administrative expenses.

b) Professional and other fees and salaries costs were $140,789 in 2022 versus $119,663 in 2021. The components of these total costs include legal and audit related expenses of $30,857 (2021: $38,461), consulting fees of $55,503 (2021: $30,380), staff salaries and benefits of $54,429 (2021: $50,822; in 2021 the Company received wage subsidies  from the  Federal  Government  which  were  eliminated  in 2022; additionally, the  Company  hired  2  engineering  coop  students  commencing  in June , 2021).

The CFO has received $9,449 of management fees in 2022 (2021: $7,149). The CEO of the Company has received $24,039 of cash compensation in 2022 (2021: $26,590).

c) Travel and entertainment expenses were $8,285 in Q2 2022 (2021: $2,531). We reduced travel expenses in 2021 as part of  a  broader  effort to reduce the Company's operating expenses and  due  to Covid-related travel restrictions  imposed  since  March 2020.

d) Interest expense was $110,160 in Q2 2022 versus $146,254 in Q2 2021. This represents the actual interest expense obligations incurred by the Company based on the stated interest rates on the convertible debenture notes.

e) Amortization expense was $9,063 in Q2 2022 (consisting of $1,877 relating to patents and $7,186 relating to Capital Assets) versus $8,911 in Q2 2021(consisting of $2,000 relating to patents and $6,911 relating to Capital Assets).

f) Financing costs were $3,057 in Q2 2022 versus $46,709 in Q2 2021.  These expenses relate to costs associated with the convertible debenture financings which the Company completed in 2022 and 2021.

g) The loss on foreign exchange reported in Q2 2022 was $92,968 versus a gain of $145,058 in Q2 2021.  This included the exchange relating to the translation of $CDN denominated transactions during the year and to Canadian denominated assets and liabilities at fiscal quarter and year ends.  It also included the foreign exchange relating to the initiation, renewal, conversion, and repayment of convertible debentures transactions during the fiscal years.  The Canadian dollar, relative to the US dollar was $0.7921 at April 30, 2022, $0.7956 at October 31,2021, $0.7810 at April 30, 2021.

h) The other expenses reported relate to the convertible debentures. These expenses are all non-cash expenses and compare as follows:

For the 3 months ended April 30 2022 2021 Change
Accretion expense $ 431,179 $ 301,598 $ 129,581
Loss on conversion of convertible debentures 130,175 10,911 119,264
Loss on revaluation of derivative liabilities (1,120,783 ) 2,825,809 (3,946,592 )
Loss (gain) on extinguishment of convertible debentures 18,139 44,103 (25,964 )
Net expense $ (541,290 ) $ 3,182,421 $ (3,723,711 )

C. Unaudited Quarterly Financial Information - Summary

Three months ended<br>(unaudited) Revenues<br>$ Expenses Income(loss) inperiod Loss<br>per<br>share<br>$
July 31, 2020 - 234,946 (234,946 -
October 31, 2020 - 356,170 (356,170
January 31,2021 - 1,220,301 (1,220,301 -
April 30,2021 - 3,154,574 (3,154,574 -
July 31,2021 - (2,102,701 2,102,701
October 31,2021 - (1,259,196 1,259,196 -
January 31,2022 - 1,392,843 (1,392,843 -
April 30, 2022 - (107,839 107,839 -

All values are in US Dollars.

Three months ended<br>(unaudited) Working capital<br>(deficiency) Capital assets<br>at NBV Other Assets Total Assets Shareholders'<br>equity (deficit)
July 31, 2020 (3,994,076 ) 56,187 13,877 108,438 (3,974,641 )
October 31, 2020 (4,202,571 ) 49,249 11,877 278,026 (4,187,342 )
January 31, 2021 (4,694,513 ) 42,364 9,877 124,318 (4,698,923 )
April 30, 2021 (7,214,669 ) 38,170 7,877 253,940 (7,318,323 )
July 31, 2021 (4,876,595 ) 31,283 5,877 223,528 (4,887,324 )
October 31, 2021 (3,452,924 ) 26,012 3,877 225,293 (3,471,278 )
January 31, 2022 (4,341,708 ) 18,816 1,877 148,789 (4,368,574 )
April 30, 2022 (3,939,361 ) 11,630 - 93,372 (3,790,399 )

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MICROMEM TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br><br> <br>PREPARED AS OF JUNE 29, 2022

6.  RISKS AND UNCERTAINTIES

There are a number of risks which may individually or in the aggregate affect the long-term commercial success of the Company, both known and unknown. An investment in the Company should be considered speculative due to the nature of the Company's activities and its current stage of development.

Stage of Development of Technology:

The Company has made strides in advancing its technology and in developing a product portfolio and in engaging customers in joint development projects. There remains the risk that the Company must successfully complete development work on these products to have available commercially viable products which can be licensed or sold.

Customers' Willingness to Purchase:

We have previously  entered into joint development agreements whereby our prototype products are being subjected to rigorous testing by our partners. We expect to be successful in commercializing  our product portfolio. If we are successful in doing so, our partners will then have to decide the extent to which they will adopt our technology for future use for their applications. The future revenue streams for the Company are dependent upon the rate of adoption by our customers and their willingness to do so.

Patent Portfolio:

The Company has previously  committed  time and effort and incurred significant costs with respect to the maintenance and development of our intellectual property portfolio. Commencing  in  2019, it decided to abandon certain provisional patent filings in international jurisdictions which it believes does not impact on the core patent technology that the Company maintains.  Given the nature of IP development, the Company is subject to continuing risks that our patents could be successfully challenged and that our patent pending files may not ultimately be granted full patent status. The Company does not have extensive in-house resources so as to manage its IP portfolio in this environment and has traditionally relied heavily on its patent attorneys for these services.

Financing:

The Company has successfully raised funding on  a quarterly  basis  to continue to support its development initiatives and fund the Company's corporate structure and overheads. The Company must continue to source financing in order to continue to support its business initiatives.

Competitors:

The Company is subject to competition from other entities that may have greater financial resources and more in-house technical expertise.

Management Structure:

The Company is highly dependent on the services of a small number of senior management team members. If one of these individuals were unavailable, the Company would encounter a difficult transition process.

Foreign Currency Exposure:

The Company expects to sell its products and license technologies in the United States, in Canada and abroad. It has raised financing in both $CDN and $USD. The Company has not hedged its foreign currency exposure.  Foreign currency fluctuations present an ongoing risk to the business.

COVID-19 Pandemic:

The impact on the Company of the COVID-19 pandemic, during the 2021 and 2022 fiscal years has been outlined earlier in this report, including the steps that management has taken in an attempt to maintain our operations.  There remains uncertainty as to the duration of the pandemic.  If the pandemic continues for an extended period of time in 2022 and beyond, there will be repercussions to the Company's ongoing business which could be significant.

***************************

MICROMEM TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br><br> <br>PREPARED AS OF JUNE 29, 2022

7.  GOING CONCERN

The consolidated financial statements have been prepared on the "going concern" basis, which presumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.

There are material uncertainties related to conditions and events that cast significant doubt about the Company's ability to continue as a going concern for a reasonable period of time in future.  During the three months ended April 30, 2022, the Company reported a net income and comprehensive income of $107,839 (Q2 2021: loss of $3,154,574) and negative cash flow from operations of $630,548 (Q2 2021: $395,264).  The Company's working capital deficiency as at April 30, 2022 is $3,939,361 (October 31,2021: $3,452,924).

The Company's future success depends on the profitable commercialization of its proprietary  sensor technology. There is no assurance that the Company will be successful in the profitable commercialization of its technology. Based upon its current operating and financial plans, management of the Company believes that it will have sufficient access to financial resources to fund the Company's planned operations through fiscal 2022 and beyond; however, the ability of the Company to continue as a going concern is dependent on its ability to secure additional financing and/or to profitably commercialize its technology. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

The COVID 19 pandemic has had a significant impact of the Company's operations since  March,  2020 as discussed in the body of this MD&A document.  There remains uncertainty at this date as to the duration of the pandemic.  If the pandemic continues for an extended period of time in 2022 and beyond, there will be additional repercussions to the Company's ongoing business which could be significant.

If the "going concern" assumption was not appropriate for these consolidated financial statements, then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used; in such cases, these adjustments would be material.

**********

MICROMEM TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br><br> <br>PREPARED AS OF JUNE 29, 2022

8.  OTHER MATTERS

(a) Critical Accounting Policies

The accounting policies the Company believes are critical to the financial reporting process include foreign currency translation, financial instruments, compound and hybrid financial instruments, derivative liabilities, conversion features of bridge loans, patents, impairment of long-lived  assets, patents, deferred development costs, revenue recognition, stock-based compensation, and income taxes.  These critical accounting policies are set forth in Note 4 to our audited consolidated financial statements as of October 31, 2021; there have been no changes to our critical  accounting policies on a year to date basis through April 30, 2022.

(b) Legal  matters: lawsuit vs Steven Van Fleet

We have previously reported on the litigation matter relating to Mr. Van Fleet, the former President of  MAST, which  commenced  in 2018. Ultimately, after all legal and court proceedings, on June  16^t^^h^, 2021 the  court  ordered  that  Micromem  and  MAST  had  established  damages of $765,579.35, the  full amount that  had  been requested . Additionally , the court awarded  costs  and  statutory  prejudgement  interest  from May 9, 2017. On June  29^th^ , the court  entered  a  judgement ("Judgement") in  favor  of  Micromem  and  MAST and  against  Mr  Van Fleet  in the  amount of $1,051,739.83.

With respect to the Company's efforts to collect on that Judgement, a settlement ("Settlement") was reached during October 2021. Pursuant to the Settlement, the Company received an initial one-time payment and is entitled to additional monthly payments over a period of up to six years. The Company will record those payments as and when they are received. The total amount to be received by the Company if Mr. Van Fleet makes all the required payments under the terms of the Settlement will be less than the amount of the Judgement obtained by the Company, but if Mr. Van Fleet does not comply with the terms of the Settlement, it also provides the Company a means of enforcing a larger judgement against Mr. Van Fleet that is substantially in line with the Judgement. Mr. Van Fleet has made the prescribed monthly payments each month since October 2021.

(c) Contingencies and Commitments

The Company may be subject to litigation, claims and governmental and regulatory proceedings arising in the ordinary course of business.  In such cases, the Company accrues a loss contingency for these matters when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. There are no such accruals reflected in the Company's accounts at April 30, 2022.

The Company currently has its lease for premises through July 2022.  The lease stipulates base monthly rental expenses of $4,005 CDN.  Lease commitments are as follows - commitments less than one year of $12,015 CDN ($9,372 USD). (See section 9 - Subsequent Events).

**(d)**Off-Balance Sheet Arrangements

At April 30, 2022, the Company has no off-balance sheet financial commitments and does not anticipate entering into any contracts of such nature other than the addition of new operating leases for equipment and premises as may be required in the normal course of business.

(e) Share Capital ****

At April 30, 2022, the Company reports 447,191,433 common shares outstanding (October 31, 2021: 435,737,734; April 30, 2021: 425,362,993). Additionally, the Company has 10,725,000 stock options outstanding with a weighted average exercise price of $0.06 per share (October 31, 2021: 11,700,000 options outstanding with  a weighted  average exercise  price  of $0.06 per share; April 30, 2021: 8,700,000 options outstanding with a weighted average exercise price of $0.06 per share).

(f)  Management and Board of Directors ****

At our most recent Annual Meeting of Shareholders held on September 8, 2020, Joseph Fuda, Oliver Nepomuceno, and Alex Dey were re-elected to serve on our Board of Directors. Joseph Fuda and Dan Amadori continue to serve as officers of the Company.

Our management team and directors, along with their Q2 quarterly remuneration, is presented as below:

2022 remuneration
Individual Position Cash Options Total
Joseph Fuda President, Director 23,653 - 23,653
Oliver Nepomuceno Director - - -
Alex Dey Director - - -
Dan Amadori CFO 9,449 - 9,449
Total 33,102 - 33,102
2021 remuneration
--- --- --- --- ---
Individual Position Cash Options Total
Joseph Fuda President, Director 11,292 - 11,292
Oliver Nepomuceno Director - - -
Alex Dey Director - - -
Dan Amadori CFO 4,006 - 4,006
Total 15,298 - 15,298

(g)  Transactions with Related Parties ****

The Company reports the following related party transactions:

Key management compensation:

Key management personnel are persons responsible for planning, directing, and controlling activities of the Company, including officers and directors. Quarterly compensation paid or payable to these individuals  is summarized as above.

Trade payables and other liabilities:

As at April 30, 2022, there were no balances reported as trade payables and other liabilities due to related  parties.  As at April 30, 2021, the Company included $167,215 in trade payables owing to a company whose major shareholder was a director of the Company from February 2014 through September 2020 and who has also previously served as its Chief Technology Officer. At October 31, 2021, the Company reversed this statute barred balance previously reported as an account payable.

Convertible debentures:

In January 2018, an officer of the Company provided a convertible debenture of $150,000 CDN ($114,138 USD). At April 30, 2022 $9,483 CDN ($7,800 USD) remains outstanding (October 31, 2021: $9,483 CDN ($7,657 USD); April 30, 2021: $10,001 CDN ($7,825 USD).

**(h)**Liquidity and Capital Resources

Liquidity:

We currently report negative cash flow from operations. This result will only change once we are generating sufficient revenue from either license fees, royalties or the sale of products utilizing our technology. In 2021 and through to the  date  of this  report, the Company has  continued to raise additional financing.

We currently have no lines of credit in place. We must continue to obtain financing from investors or from clients in support of our development projects.

We have granted to our directors, officers, and employee's options to purchase shares at prices that are at or above market price on the date of grant. At April 30, 2022, there are 10,725,000 stock options outstanding at an average exercise price of $0.06 per share.

Capital Resources: We have no commitments for capital expenditures as of April 30, 2022.

************************

MICROMEM TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED APRIL 30, 2022<br><br> <br>PREPARED AS OF JUNE 29, 2022

9. SUBSEQUENT EVENTS

`

Subsequent to April 30, 2022:

a) The Company extended convertible debentures that were within 3 months of maturity date from April 30, 2022 for an additional six (6) months.

b) The Company secured $124,000 USD in convertible debentures with a 12 month term and conversion features which become effective six months after initiation date.

c) The Company converted $80,000 USD of convertible debentures through the issuance of 2,041,667 common shares.

d) The Company signed a new three (3) year lease on May 26, 2022 for its Toronto office, effective August 1^st^, 2022.  The monthly rent under the new lease will be $4,455 CDN ($3,475 USD).

***********************

Micromem Technologies Inc.: Exhibit 99.3 - Filed by newsfilecorp.com

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Joseph Fuda, President and Chief Executive Officer of Micromem Technologies Inc., certify the following:

  1. Review:  I have reviewed the interim financial report and interim MD&A (together the "interim filings") of Micromem Technologies Inc., (the Issuer) for the interim period ended April 30, 2022.

  2. No misrepresentations:  Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

  3. Fair presentation:  Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

  4. Responsibility:  The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

  5. Design:  Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) Designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) Material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii) Information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) Designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 Control of framework:  The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Committee of Sponsoring Organizations of the Treadway Commission or "COSO".  The Company is utilizing the guidance for smaller public companies published by COSO.

5.2 not applicable

5.3 not applicable

  1. Reporting changes in ICFR:  The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on November 1, 2021 to April 30, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date:  June 29, 2022

/s/ Joseph Fuda

___________________________________________

Joseph Fuda

President and Chief Executive Officer

Micromem Technologies Inc.: Exhibit 99.4 - Filed by newsfilecorp.com

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Dan Amadori, Chief Financial Officer of Micromem Technologies Inc., certify the following:

  1. Review:  I have reviewed the interim financial report and interim MD&A (together the "interim filings") of Micromem Technologies Inc., (the issuer) for the interim period ended April 30, 2022.

  2. No misrepresentations:  Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

  3. Fair presentation:  Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

  4. Responsibility:  The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

  5. Design:  Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) Designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) Material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii) Information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) Designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 Control of framework:  The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Committee of Sponsoring Organizations of the Treadway Commission or "COSO".  The Company is utilizing the guidance for smaller public companies published by COSO.

5.2 not applicable

5.3 not applicable

  1. Reporting changes in ICFR:  The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on November 1, 2021 to April 30, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date:  June 29, 2022

/s/ Dan Amadori

___________________________________________

Dan Amadori

Chief Financial Officer

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