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:
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- 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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