The Company’s overall performance for the fiscal year ended
Covid-19 had an initial impact on the Company in the six months ended
The overall effect of the pandemic on the Company’s actual and forecasted revenues led to the additional expense of
FINANCIAL HIGHLIGHTS FOR THE FISCAL YEAR ENDED
- Total assets of
$4,334,466 as ofJune 30, 2020 (June 30, 2019 :$8,560,452 ), a decrease of$4,225,986 , primarily driven by a write-down in goodwill of$2,067,246 , a write-down of amortizable licenses (under intangible assets) of$1,154,267 , a decrease in cash and cash equivalents of$680,081 and a decrease in inventory of$432,929 . This was counterbalanced by increases in receivables of$217,588 . - Total liabilities on
June 30, 2020 were$4,278,944 (June 30, 2019 :$3,512,144 ), an increase of$766,800 . This is primarily due to increases of bank of advances of$237,373 , accounts payable and accrued liabilities of$819,579 , a loan from an officer of$74,954 and short-term debt of$1,880,614 . This was counterbalanced by decreases in loan payable of$154,525 , warrant liability of$117,715 and long-term debt of$1,973,480 - Shareholders’ equity was
$55,522 onJune 30, 2020 (June 30, 2019 :$5,048,308 ), a decrease of$4,992,786 . This is primarily due to an increase in the deficit of$6,934,532 . This was counterbalanced by an increase of share capital of$694,176 and share purchase warrants of$1,651,490 , which occurred as a result of private placements closed during the Reporting Period, as previously described. - The Company reported
$2,974,161 in revenues (June 30, 2019 :$3,628,60 ), representing a decrease of$654,489 over revenues generated in the fiscal year endedJune 30, 2019 . In the latter half of the Company’s fiscal year, the COVID-19 pandemic had the effect of reducing online sales of the Company’s products. In addition to the effect of the pandemic, the competitive environment also became more intense at that time. - Cost of goods sold were
$1,780,006 or 59.8% as compared to revenues ($1,862,094 for 2019 or 51% as compared to revenues). This resulted in a gross profit of$1,194,155 for the fiscal year endedJune 30, 2020 (June 30, 2019 :$1,766,556 ), representing a decrease of$572,401 . Gross profit accounted for 40% of sales in the year endedJune 30, 2020 (June 30, 2019 : 49%). - Total expenses for fiscal year ended
June 30, 2020 , not including non-cash impairments of goodwill and intangibles, were$4,904,270 (June 30, 2019 :$5,493,498 ). - Total non-cash impairment of
$1,154,267 of intangibles and$2,067,246 in goodwill resulted in total expenses for the reporting period of$8,125,783 , an increase of$2,632,285 . - Most of the expense categories had decreases, including particularly administration fees (decrease of
$309,113 ), general and administrative expenses (decrease of$243,642 ), professional fees (decrease of$57,633 ) and selling and marketing expenses (decrease of$383,697 ). - The net comprehensive loss for the year ended
June 30, 2020 was$6,934,532 (June 30, 2019 : loss of$3,750,536 ), a difference of$3,183,996 .
FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER ENDED
- Revenues in the fourth quarter of fiscal year 2020 were
$302,486 (Fourth quarter of 2019:$598,631 ), a decrease of$296,145 . - The net loss and comprehensive loss for the three-month period ended
June 30, 2020 was$5,693,210 (June 30, 2019 :$1,136,950 ), an increase of$4,556,260 primarily due to two write-downs of goodwill and intangible assets, as described above, which increased significantly the net loss and comprehensive loss for this quarter. - In order to comply with changes in accounting standards from IFRS 15, the Company restated its 2019 results, with the result being a decrease of
$424,967 in both revenues and selling and marketing expenses; this amount was charged against Q4 2019 results. Similar adjustments for the Reporting Period endingJune 30, 2020 were also recorded in Q4 2020, which had the effect of reducing revenues in that quarter.
OUTLOOK
The most significant challenge for the Company, in terms of its ability to execute on strategy, is its ability to secure financing and to navigate the ongoing challenges, as well as opportunities, posed by the current global pandemic. The Company remains focused on existing opportunities in the Personal Protective Equipment (“PPE”) market as well as its proprietary disinfectant line.
About
Neither the
Cautionary Note Regarding Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, including the timing and completion of the proposed acquisitions, are forward-looking statements and contain forward-looking information. Generally, forward- looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including the assumptions that the Company will be able to apply for and ultimately obtain an ACMPR licence, the proposed business of Biocannabix will develop as anticipated, that the Company will raise sufficient funds to develop the Biocannabix business, and that the Company will obtain all requisite regulatory approvals. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, the risk that the proposed business developments may not occur as planned; the timing and receipt of requisite approvals and failure to raise sufficient funds.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, 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 and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
On Behalf of the Board of Directors
President and CEO
For more information about this press release: Tel: +1.888.528.8687
Email: investors@releviumcorp.com
Website: www.releviumtechnologies.com
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