December 18, 2020
In United States dollars (except where it is indicated otherwise)
Tree of Knowledge International Corp (TOKI) reported revenues for the six months ended June 30, 2020 of $4.84 million, an increase of 83% when compared with the $2.65 million booked last year. Revenues for the third quarter increased 189% to $3.73 million (2019: $1.29 million). It was noted, “Revenue was significantly higher in the current quarter (289% increase), which is primarily attributed to the sale of Personal Protective Equipment (PPE). In response to the demand for PPE from various medical sectors struggling as a result of the Covid-19 pandemic, Mr. Michael Caridi, in his capacity as President of Tree of Knowledge International Corp.’s US subsidiary, Tree of Knowledge, Inc., sourced and provided PPE to a number of parties, however, the cost of providing the PPE has almost completely off-set the increase in revenue attributable to the sale of PPE.”
Cost of sales amounted to a total of $3.33 million relative to the $1.72 million reported for the same period last year, a 94% increase year over year.
As such, gross profit increased 61% to a total of $1.51 million relative to the $935,334 for the six months ended June 30, 2019. Gross profit for the quarter closed at $1.05 million (2019: $514,325).
Total expenses rose 6% to $4.31 million (2019: $4.06 million) for the six months. Of this:
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- Depreciation /Amortization amounted to $343,706 (2019: $617,651).
- Interest Expense totalled $99,861 (2019: $93,134).
- Office and General expenses amounted to $236,300 (2019: $674,582).
- Professional fees amounted to $132,962 (2019: $534,507)
- Research & Development amounted to $32,049 (2019: $nil)
- Salaries, benefits, commissions and consulting amounted to $2.59 million (2019: $627,203).
- Share based compensation amounted to $741,564 (2019: $1.32 million).
- Travel and promotion amounted to $133,861 (2019: $188,220).
This led to an operating loss of $2.80 million in 2020 relative to a loss of $3.12 million in 2019. Loss from operations for the quarter closed at $2.01 million relative to a loss of $1.12 million recorded for the same quarter of 2019.
Notably, TOKI reported $5,615 in foreign exchange gains for the six months relative to foreign exchange loss of 2,341 while ‘interest income’ amounted to $489 (2019: $18,352).
Consequently, net loss for the six months totalled $3.80 million relative to a net loss of $3.11 million in 2019. For the third quarter, net loss was $3.01 million (2019: $1.12 million).
Total comprehensive loss for the six months totalled $3.64 million relative to $3.08 million in 2019. For the quarter, total comprehensive loss amounted to $3.43 million relative to $597,238 in 2019.
Loss per share (LPS) for the six months period amounted $0.017 compared to a similar LPS of $0.014 recorded in 2019. For the quarter, LPS totalled $0.014 (2019 LPS: $0.005). The number of shares used in the calculations is 220,198,372.
Balance Sheet at a glance:
As at June 30, 2020, total assets amounted to $19.37 million. This mainly constituted ‘Intangible assets’ which amounted to $7.26 million and ‘Inventory’ which totalled $5.07 million.
Shareholders’ Equity totalled $3.78 million resulting in a book value per share of $0.017.
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