TOKI reports nine months net loss of US$3.90 million

December 18, 2020

In United States dollars (except where it is indicated otherwise)

Tree of Knowledge International Corp (TOKI) reported revenues for the nine months ended September 30, 2020 of $5.95 million, an increase of 43% when compared with the $4.16 million booked last year. Revenues for the third quarter decreased 16% to $1.11 million (2019: $1.33 million). It was noted, “Revenue was lower in the current quarter (16% decrease), due to constraints resulting from the Covid-19 pandemic.”

Cost of sales amounted to a total of $4.08 million relative to the $2.51 million reported for the same period last year, a 63% increase year over year.

As such, gross profit increased 13% to a total of $1.87 million relative to the $1.66 million for the nine months ended September 30, 2019. Gross profit for the quarter closed at $366,341 (2019: $536,953).

Total expenses declined 25% to $5.07 million (2019: $6.77 million) for the nine months.  Of this:

    • Depreciation / Amortization amounted to $519,790 (2019: $958,153).
    • Interest Expense totalled $144,806 (2019: $144,266)
    • Office and General expenses amounted to $247,132 (2019: $1 million)
    • Professional fees amounted to $255,217 (2019: $693,710)
    • Research & Development amounted to $64,618 (2019: $nil)
    • Salaries, benefits, commissions and consulting amounted to $2.76 million (2019: $1.07 million).
    • Share based compensation amounted to $924,746 (2019: $2.65 million).
    • Travel and promotion amounted to $159,506 (2019: $256,002).

This led to an operating loss of $3.20 million in 2020 from a loss of $5.11 million in 2019. Loss from operations for the quarter closed at $398,253 relative to a loss of $1.92 million recorded for the same quarter of 2019.

Notably, TOKI reported $5,073 in foreign exchange gains for the nine months relative to foreign exchange loss of $3,881 while ‘interest income’ amounted to $617  (2019: $20,686).

Consequently, net loss for the nine months totalled $3.90 million relative to a net loss of $5.10 million in 2019. For the third quarter, net loss was $366,559 (2019: $1.92 million)

Total comprehensive loss for the nine months totalled $3.75 million relative to $5.03 million in 2019. For the quarter, total comprehensive loss amounted to $364,919 relative to $1.85 million in 2019.

Loss per share (LPS) for the nine months period amounted $0.02 compared to a similar LPS of $0.02 recorded in 2019. For the quarter, LPS totalled $0.002 (2019 LPS: $0.009). The number of shares used in the calculations is 220,198,372.

Balance Sheet at a glance:

As at September 30, 2020, total assets amounted to $18.66 million. This mainly constituted ‘Intangible assets’ which amounted to $7.30 million and ‘Inventory’ which totalled $5.09 million.

Shareholders’ Equity totalled $3.87 million resulting in a book value per share of $0.018.


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