TOKI reports six months net loss of US$3.80 million

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:

    • 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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