This quarterly report and other reports filed by Cannabis Suisse Corp. (Formerly
Geant Corp.) ("we," "us," "our," or the "Company"), from time to time contain or
may contain forward-looking statements and information that are based upon
beliefs of, and information currently available to, the Company's management as
well as estimates and assumptions made by Company's management. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
are only predictions and speak only as of the date hereof. When used in the
filings, the words "anticipate", "believe", "estimate", "expect", "future",
"intend", "plan" or the negative of these terms and similar expressions as they
relate to the Company or the Company's management identify forward-looking
statements. Such statements reflect the current view of the Company with respect
to future events and are subject to risks, uncertainties, assumptions, and other
factors. Should one or more of these risks or uncertainties materialize, or
should the underlying assumptions prove incorrect, actual results may differ
significantly from those anticipated, believed, estimated, expected, intended,
or planned.
Our financial statements are prepared in accordance with accounting principles
generally accepted in the United States ("GAAP"). These accounting principles
require us to make certain estimates, judgments, and assumptions. We believe
that the estimates, judgments, and assumptions upon which we rely are reasonable
based upon information available to us at the time that these estimates,
judgments, and assumptions are made. These estimates, judgments, and assumptions
can affect the reported amounts of assets and liabilities as of the date of the
financial statements as well as the reported amounts of revenues and expenses
during the periods presented. Our financial statements would be affected to the
extent there are material differences between these estimates.
In General
Cannabis Suisse Corp. utilizes Swiss4Life as its retail brand for online
selling. At this stage, Cannabis Suisse Corp. offers the following products:
1) Flavored Broad-Spectrum CBD Oils. The products come in one fluid ounce (30ml)
bottles available in two flavors: Crème de Menthe and Cherry Vanilla.
Available CBD concentrations are 1500 mg, 2500 mg and 3500 mg.
2) CBD Isolate Tinctures with no THC. The products come in one fluid ounce (30ml)
bottles with 1000 mg CBD concentrations per bottle and 33.33 mg CBD per
serving. CBD Tinctures are designed to have therapeutic effects.
Cannabis Suisse Corp. has initiated development of a new IT product called
Cannabis Life. It is a mobile application based on an AI-chatbot that will have
access to the most up-to-date information and find out data about companies and
brands that sell seeds, cannabis types, etc.
Cannabis Life is an innovative way of searching and learning any cannabis
related data. Using the most relevant sources of today, the app will keep its
users up with the trends and tendencies of the cannabis industry. Communicating
with the chatbot will be as smooth as it would be with a real human being thus
giving users additional immersion into the learning process.
Research and Development Expenditures
We have not incurred any research expenditures since our incorporation.
Bankruptcy or Similar Proceedings
There has been no bankruptcy, receivership or similar proceeding.
Employees; Identification of Certain Significant Employees
Other than our officers and directors, we currently do not have any employees.
Results of Operations for the three and nine months ended February 28, 2022 and
2021:
Revenue and Cost of Goods Sold
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For the three months ended February 28, 2022 and 2021, the Company has not
generated any revenue.
For the nine months ended February 28, 2021, the Company generated total revenue
of $50,850 from selling products to the customer. The cost of goods sold for the
nine months ended February 28, 2021, was $102,648.
For the nine months ended February 28, 2022, the Company generated total revenue
of $7,770 from selling products to the customers. The cost of goods sold for the
nine months ended February 28, 2022 was $1,734.
The decrease in revenues and cost of goods sold is a result of the separation of
Cannabis Suisse LLC in November 2020.
Operating expenses
Total operating expenses for the three months ended February 28, 2021 were
$58,494. The operating expenses for the three months ended February 28, 2021,
included professional fees of $4,405; depreciation expense of $679; and general
and administrative expenses of $53,410.
Total operating expenses for the three months ended February 28,
2022, were $41,124. The operating expenses for the three
months ended February 28, 2022, included professional fees of $3,918;
depreciation expense of $543 and general and administrative expenses of $36,663.
Total operating expenses for the nine months ended February 28, 2021 were
$264,715. The operating expenses for the nine months ended February 28, 2021,
included professional fees of $34,566; depreciation expense of $9,003; and
general and administrative expenses of $221,146.
Total operating expenses for the nine months ended February 28, 2022, were
$140,425. The operating expenses for the nine months ended February 28, 2022,
included professional fees of $22,304; depreciation expense of $1,706; software
development costs of $6,487 and general and administrative expenses of $109,928.
The decrease in operating expenses is related to the decrease of general and
administrative expenses, and depreciation expense and professional fees due to
the separation of Cannabis Suisse LLC in November 2020.
Changes in Fair Value of Derivatives
The changes in fair value of derivatives for the three months ended February 28,
2022 and 2021, was $(938) and $10,981, respectively.
The changes in fair value of derivatives for the nine months ended February 28,
2022 and 2021, was $902 and $10,981, respectively.
Other expenses
Total other expenses for the three months ended February 28, 2022 and 2021, were
$792 and $33,131. The other expenses for the three months ended February 28,
2022, included interest expense of $792 ($33,131 as of February 28, 2021).
Total other expenses for the nine months ended February 28, 2022 and 2021, were
$112,195 and $33,131. The other expenses for the nine months ended February 28,
2022, included interest expense of $63,579 ($33,131 as of February 28, 2021) and
net loss on extinguishment of debt of $48,616 ($0 as of February 28, 2021).
The increase in other expenses is related to the issuance of convertible notes
in 2021.
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Net Loss
The net loss for the three months ended February 28, 2022 and 2021, was $42,854
and $80,644, respectively.
The net loss for the nine months ended February 28, 2022 and 2021, was $245,682
and $338,663, respectively.
Comprehensive Loss
The comprehensive loss for the three months ended February 28, 2022 and 2021 was
$0 and $0, respectively.
The comprehensive loss for the nine months ended February 28, 2022 and 2021 was
$0 and $8,478, respectively.
The decrease in comprehensive loss is related to decrease in foreign currency
translation adjustment after the separation of Cannabis Suisse LLC in November
2020.
Liquidity and Capital Resources and Cash Requirements
As of February 28, 2022, the Company had cash of $0. Furthermore, the Company
had a working capital deficit of $309,165.
During the nine months ended February 28, 2022 and 2021, the Company used
$32,734 and $89,933 of cash in operating activities respectively. The change in
cash used in operating activities is related to the decrease in net loss,
depreciation, accounts receivable, accrued wages, and advances from customers
and the reduction in accounts payable, accrued expenses, and VAT tax receivable.
During the nine months ended February 28, 2022 and 2021, the Company had $0 of
cash in investing activities.
During the nine months ended February 28, 2022 and 2021, the Company was
provided $32,734 and $89,928 of cash in financing activities respectively, which
came from advances from related, convertible debt, bank indebtedness and issue
of shares.
In its audited consolidated financial statements as of May 31, 2021, the Company
was issued a "going concern" opinion, meaning that there is substantial doubt we
can continue as an on-going business for the next twelve months unless we obtain
additional capital. Our only sources for cash at this time are investments by
others, selling our products and loans from our director. We must raise cash to
implement our plan and stay in business.
Management believes that current trends toward lower capital investment in
start-up companies pose the most significant challenge to the Company's success
over the next year and in future years. Additionally, the Company will have to
meet all the financial disclosure and reporting requirements associated with
being a public reporting company. The Company's management will have to spend
additional time on policies and procedures to make sure it is compliant with
various regulatory requirements, especially that of Section 404 of the
Sarbanes-Oxley Act of 2002. This additional corporate governance time required
of management could limit the amount of time management has to implement is
business plan and impede the speed of its operations.
Limited operating history; need for additional capital
There is no historical financial information about us upon which to base an
evaluation of our performance. We are in a start-up stage of operations and have
generated limited revenues since inception. We cannot guarantee that we will be
successful in our business operations. Our business is subject to risks inherent
in the establishment of a new business enterprise, including limited capital
resources and possible cost overruns due to price and cost increases in services
and products.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on the Company's financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources.
21
Related Party Transactions
There are two signed loan agreements between Cannabis Suisse Corp. and the
President/CEO and a Director of the Company, Suneetha Nandana Silva Sudusinghe.
The CEO agreed to loan the Loan Amount to the Company in the event of not
raising a sufficient amount of funds from the offering in accordance to the Form
S-1 registration statement of the Company; the director agreed to loan the Loan
Amount to the Company on demand of the Company; the Company will conduct the
repayments of all amounts of the Director's loan accordingly to the sequence of
loans; the director will be repaid from revenues of the Company, when it starts
to earn significant revenues; advanced Loan funds are non-interest bearing,
secured and payable upon demand.
Critical Accounting Policies
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. A change in managements' estimates or assumptions
could have a material impact on our financial condition and results of
operations during the period in which such changes occurred. Actual results
could differ from those estimates. Our financial statements reflect all
adjustments that management believes are necessary for the fair presentation of
their financial condition and results of operations for the periods presented.
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CANNABIS SUISSE CORP. 
