Current and Past Operations
December 31, 2015 compared to December 31, 2014
Revenues
We did not generate any revenues during the year ended December 31, 2015 or 2014. We are pursuing numerous sales opportunities.
Expenses
During the year ended December 31, 2015 we incurred total expenses of $8,964,960, including $4,804,831 in salaries and compensation, $76,457 in depreciation, $1,483,909 in professional fees, $230,165 in selling and marketing expenses, $948,607 in interest and financing costs, $97,890 gain in change in fair value on derivative liabilities, $355,508 in fixed asset impairment and $1,163,373 as other expenses. Our professional fees consist of legal, consulting, accounting and auditing fees.
During the year ended December 31, 2014 we incurred total expenses of $4,209,038.
The increase in our expenses for the year ended December 31, 2015 was primarily due to an increase in salaries and compensation of $3,532,151 including stock-based compensation of $3,701,600 issued to management and employees, an increase in professional fees of $751,046, an increase in interest and financing costs of $902,729, an increase in other expenses of $92,450, a decrease in selling and marketing expenses of $15,962 and a decrease in the impairment charge of $509,492. The increases are due to the increased hiring of full time employees and the consulting services to develop the work streams and project plan to execute on a major project as well as the financing charges to fund the business. The increase in professional fees is mainly due to the cost of consulting services for both development of the project plan and financing requirements.
Net Loss
During the year ended December 31, 2015 we incurred a net loss of $8,964,960 compared to a net loss of $4,209,038 in 2014.
Future forward-looking statements
On December 24, 2015, we received a purchase request from Chrispod Limited in response to a proposal we submitted to Chrispod Limited on December 1, 2015, for medical equipment for the Ministry of Health in Ghana for regional hospital use. Chrispod Limited was awarded the contract on December 27 th , 2012 and it was recently reapproved by the Minister of Health for delivery in 2016. Chrispod Limited has subcontracted Kallo for the delivery of the equipment as stated in our proposal and is currently awaiting final approval for the financing offer that was presented to the Minister of Finance. The full contract is approved for $60,058,000 US dollars, of which the Kallo proposed component will be $21,753,801 US dollars. The contract is in the final approval stage with the Minister of Finance. Under this contract, Kallo will supply medical equipment and accessories and other essential hospital equipment. Installation of the medical equipment is not included in the project scope. There is no assurance any equipment will be sold to Chirspod Limited.
